August 31, 2019
As reported
Balance without the adoption of ASU 2014-09
Assets
Contract assets (1)
$911,940
$—
Inventories, net (1)
$3,023,003
$3,761,591
Prepaid expenses and other current assets(1)(2)
$501,573
$514,769
Deferred income taxes(1)
$198,827
$202,791
Liabilities
Contract liabilities(2)(3)
$511,329
$—
Deferred income(2)(3)(4)
$—
$521,035
Other accrued expenses(3)(4)
$1,877,908
$1,868,201
Deferred income taxes(1)
$115,818
$111,304
Equity
Retained earnings(1)(2)
$2,037,037
$1,885,360

text: 18. Revenue
text: Effective September 1, 2018, the Company adopted ASU 2014-09, Revenue Recognition (Topic 606). The new standard is a comprehensive new revenue recognition model that requires the Company to recognize revenue in a manner which depicts the transfer of goods or services to its customers at an amount that reflects the consideration the Company expects to receive in exchange for those goods or services.
text: Prior to the adoption of the new standard, the Company recognized substantially all of its revenue from contracts with customers at a point in time, which was generally when the goods were shipped to or received by the customer, title and risk of ownership had passed, the price to the buyer was fixed or determinable and collectability was reasonably assured (net of estimated returns). Under the new standard, the Company recognizes revenue over time for the majority of its contracts with customers which results in revenue for those customers being recognized earlier than under the previous guidance. Revenue for all other contracts with customers continues to be recognized at a point in time, similar to recognition prior to the adoption of the standard.
text: Additionally, the new standard impacts the Company’s accounting for certain fulfillment costs, which include upfront costs to prepare for manufacturing activities that are expected to be recovered. Under the new standard, such upfront costs are recognized as an asset and amortized on a systematic basis consistent with the pattern of the transfer of control of the products or services to which to the asset relates.
text: The following table presents the effect of the adoption of the new revenue guidance on the Consolidated Balance Sheets as of August 31, 2019 (in thousands):
text: (1) Differences primarily relate to the timing of revenue recognition for over time customers and certain balance sheet reclassifications.
text: (2) Differences primarily relate to the timing of recognition and recovery of fulfillment costs and certain balance sheet reclassifications.
text: (3) Included within accrued expenses on the Consolidated Balance Sheets.
text: (4) Differences included in contract liabilities as of September 1, 2018.

Questions:
question: What do the differences in contract assets primarily relate to?
answer: the timing of revenue recognition for over time customers and certain balance sheet reclassifications.
question: What were the net inventories as reported?
answer: $3,023,003
scale: thousand
question: What were the contract liabilities as reported?
answer: $511,329
scale: thousand
question: What was the change in Inventories, net due to adoption of ASU 2014-09?
answer: -738588
derivation: 3,023,003-3,761,591
scale: thousand
question: What was the change in Prepaid expenses and other current assets due to the adoption of ASU 2014-09?
answer: -13196
derivation: 501,573-514,769
scale: thousand
question: How many segments as reported exceed $2,000,000 thousand?
answer: 2
derivation: Inventories, net##Retained earnings