The adoption of ASU 2016-09 did not have a material impact on our financial statements but did impact the following: | | | • | All excess tax benefits and tax deficiencies are recognized as income tax expense or benefit in the income statement prospectively. | • | The tax effects of exercised or vested awards are treated as discrete items in the reporting period in which they occur, and we recognize excess tax benefits regardless of whether the benefit reduces taxes payable in the current period. | • | We also adopted a new accounting policy in which we account for award forfeitures as they occur. We no longer estimate the total number of awards for which the requisite service period will not be rendered. | • | Cash paid by us when directly withholding shares for tax-withholding purposes is classified as a financing activity and excess tax benefits are classified along with other income tax cash flows as an operating activity in the consolidated statement of cash flows. |
The effects of the adoption under ASC Topic 606 are outlined in the table below:
| | | | | | | | | | | | | | (In thousands) | | Year Ended December 31, 2017 | | Impact | | January 1, 2018 | Receivables (unbilled) | | $ | 121,601 |
| | $ | 10,457 |
| | $ | 132,058 |
| Costs incurred in excess of billings | | $ | 12,751 |
| | $ | (12,751 | ) | | $ | — |
| Billings in excess of costs | | $ | 3,766 |
| | $ | (3,766 | ) | | $ | — |
| Impact to contract liabilities | | $ | — |
| | $ | 1,621 |
| | $ | 1,621 |
| Retained earnings | | $ | 117,415 |
| | $ | (98 | ) | | $ | 117,317 |
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