Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2018

Revenue from Contract with Customer [Abstract]

In the following table, revenue is disaggregated by type of good or service and primary geographical market. The table also includes a reconciliation of the disaggregated revenue with the reportable segments.



	Three Months Ended				Nine Months Ended
in millions	September 30, 2018				September 30, 2018
Type of Good or Service	FoodTech		AeroTech		FoodTech		AeroTech
Recurring ⁽¹⁾	$	129.4	$	45.7	$	387.6	$	135.1
Non-recurring ⁽¹⁾	203.1		103.8		610.1		249.5
Total	$	332.5	$	149.5	$	997.7	$	384.6

Geographical Region ⁽²⁾	FoodTech		AeroTech		FoodTech		AeroTech
North America	$	174.7	$	105.2	$	501.5	$	298.2
Europe, Middle East and Africa	101.7		32.8		308.1		58.4
Asia Pacific	27.7		9.2		126.9		25.2
Latin America	28.4		2.3		61.2		2.8
Total	$	332.5	$	149.5	$	997.7	$	384.6

(1) Aftermarket parts and services and revenue from leasing contracts are considered recurring revenue. Non-recurring revenue includes new equipment and installation.

(2) Geographical region represents the region in which the end customer resides.

Contract with Customer, Asset and Liability

Our contract asset and liability balances for the period were as follows:



	Balances as of
in millions	January 1, 2018		September 30, 2018
Contract Assets	$	18.2	$	87.7
Contract Liabilities	$	222.8	$	149.1

Schedule of New Accounting Pronouncements and Changes in Accounting Principles



	As Reported					As Restated
	December 31, 2017		Adjustments due to ASC 606			January 1, 2018
Trade receivables, net of allowance	$	316.4	$	(31.3	)	$	285.1
Inventories	190.2		103.6			293.8
Other current assets	48.0		0.4			48.4
Deferred income taxes	$	13.1	6.7			$	19.8
Total Assets	$	1,391.4	$	79.4		$	1,470.8

Advance and progress payments	127.6		113.1			240.7
Other current liabilities	96.4		(2.3		)	94.1
Other long-term liabilities	49.5		(1.2		)	48.3
Retained earnings	333.7		(30.2		)	303.5
Total Liabilities and Stockholders' Equity	$	1,391.4	$	79.4		$	1,470.8

The following tables summarize the impacts of adopting ASC 606 on the Company's financial statements. These tables provide visibility into our financial statement presentation had we not adopted ASC 606. They do not necessarily reflect values of future earnings or expected balances.

Consolidated Statements of Income:



	As reported		Adjustments			Nine Months Ended
	Nine Months Ended		due to			September 30, 2018
in millions	September 30, 2018		ASC 606			Without Adoption
Revenue	$	1,382.4	$	(99.9	)	$	1,282.5
Cost of sales	1,003.4		(75.4		)	928.0
Gross profit	379.0		(24.5		)	354.5
Income from continuing operations before income taxes	73.6		(24.5		)	49.1
Income tax provision (benefit)	12.1		(6.3		)	5.8
Net income	61.2		(18.2		)	43.0



	As reported		Adjustments			Three Months Ended
	Three Months Ended		due to			September 30, 2018
in millions	September 30, 2018		ASC 606			Without Adoption
Revenue	$	481.9	$	(17.8	)	$	464.1
Cost of sales	346.8		(13.7		)	333.1
Gross profit	135.1		(4.1		)	131.0
Income from continuing operations before income taxes	33.2		(4.1		)	29.1
Income tax provision (benefit)	6.8		(1.1		)	5.7
Net income	26.4		(3.0		)	23.4

Consolidated Balance Sheets:



			Adjustments
	As reported		due to			Balances without
in millions	September 30, 2018		ASC 606			Adoption
Trade receivables, net of allowance	$	334.0	$	13.6		$	347.6
Inventories	256.6		(23.7		)	232.9
Other current assets	57.6		(1.0		)	56.6
Total current assets	686.7		(11.1		)	675.6
Deferred income taxes	14.4		(1.5		)	12.9
Total Assets	1,521.2		(12.6		)	1,508.6

Accounts payable, trade and other	174.1		0.7			174.8
Advance and progress payments	173.3		(27.4		)	145.9
Other current liabilities	148.9		0.8			149.7
Total current liabilities	496.4		(25.9		)	470.5
Other liabilities	43.8		1.4			45.2
Retained earnings	354.7		11.9			366.6
Total Liabilities and stockholders' equity	1,521.2		(12.6		)	1,508.6