Table:
|  | Balance at September 29, 2018 | Impacts due to adoption of Topic<br>606 | Balance at September 30, 2018 |
| --- | --- | --- | --- |
| ASSETS |  |  |  |
| Contract assets | $— | $76,417 | $76,417 |
| Inventories | 794,346 | (68,959) | 725,387 |
| LIABILITIES AND SHAREHOLDERS' EQUITY |  |  |  |
| Other accrued liabilities | $68,163 | $(357) | $67,806 |
| Retained earnings | 1,062,246 | 7,815 | 1,070,061 |
Paragraphs:
15. Revenue from Contracts with Customers
Impact of Adopting Topic 606
The Company adopted Topic 606 at the beginning of fiscal 2019 using the modified retrospective method. The new standard resulted in a change to the timing of revenue recognition for a significant portion of the Company's revenue, whereby revenue is recognized over time, as products are produced, as opposed to at a point in time based upon shipping terms. As a result of the adoption of Topic 606, the following adjustments were made to the opening balances of the Company's Consolidated Balance Sheets (in thousands):
The cumulative effect of applying the new guidance in Topic 606 resulted in the Company increasing its fiscal 2019 opening Retained earnings balance by$ 7.8 million due to certain customer contracts requiring revenue recognition over time. Contract assets in the amount of$ 76.4 million were recognized due to the recognition of revenue on an over time basis for some customers rather than at a specific point in time. Inventory declined $69.0 million primarily due to earlier recognition of costs related to the contracts for which revenue was recognized on an over time basis. The decline in other accrued liabilities is primarily due to the reclassification of deferred revenue to contract assets for prepayments associated with revenue recognized over time, partially offset by an increase in taxes payable associated with the increase in revenue recognized over time.
Question:
How did the company adopt Topic 606 at the beginning of Fiscal 2019?
Answer: using the modified retrospective method