*In the interest of comparability during the transition year to ASC 606, the company has provided its Summary Consolidated Statements of Income for the three and six months ended June 30, 2018 in accordance with both ASC 606 and previous accounting literature, ASC 605. The tables above also show the adjustments made to reconcile the ASC 605 presentation to ASC 606. The company believes this additional information is vital during the transition year to allow readers of its financial statements to compare financial results from the preceding financial year given the absence of restatement of the prior period. The ASC 605 information should be considered in addition to, not as a substitute for, nor superior to or in isolation from, the financial information prepared in accordance with ASC 606.
SUMMARY CONSOLIDATED CASH FLOWS
(dollars in thousands)
(unaudited)
| For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||
| 2018 | 2017 | 2018 | 2017 | ||||||||||||
| Income before income taxes | $ | 10,833 | $ | 78,618 | $ | 34,647 | $ | 109,772 | |||||||
| Taxes paid | (2,746 | ) | (11,120 | ) | (10,799 | ) | (14,110 | ) | |||||||
| Non-cash expenses | 19,901 | 21,645 | 38,796 | 44,691 | |||||||||||
| Change in deferred revenue | 18,125 | (74,039 | ) | (27,167 | ) | 32,040 | |||||||||
| Increase (decrease) in operating working capital, deferred charges and other | (39,286 | ) | 4,343 | (29,245 | ) | (178,801 | ) | ||||||||
| Capital spending and capitalized patent costs | (7,615 | ) | (9,321 | ) | (16,049 | ) | (17,376 | ) | |||||||
| FREE CASH FLOW | (788 | ) | 10,126 | (9,817 | ) | (23,784 | ) | ||||||||
| Long-term investments | (2,000 | ) | (200 | ) | (6,250 | ) | (701 | ) | |||||||
| Dividends paid | (12,164 | ) | (10,402 | ) | (24,319 | ) | (20,694 | ) | |||||||
| Acquisition of patents | (2,250 | ) | — | (2,250 | ) | — | |||||||||
| Taxes withheld upon vesting of restricted stock units | (111 | ) | (235 | ) | (8,388 | ) | (22,190 | ) | |||||||
| Share repurchases | (3,148 | ) | — | (9,172 | ) | — | |||||||||
| Net proceeds from exercise of stock options | 3,930 | — | 3,930 | 82 | |||||||||||
| Unrealized gain (loss) on short-term investments | 475 | (42 | ) | (1,168 | ) | (87 | ) | ||||||||
| NET DECREASE IN CASH AND SHORT-TERM INVESTMENTS | $ | (16,056 | ) | $ | (753 | ) | $ | (57,434 | ) | $ | (67,374 | ) | |||
