Adoption of Revenue Recognition Guidance

12 Months Ended

Dec. 31, 2020

Revenue from Contract with Customer [Abstract]

Adoption of Revenue Recognition Guidance

Adoption of Revenue Recognition Guidance

The Company adopted the new revenue recognition guidance effective January 1, 2018, using the modified retrospective method, with the cumulative effect recognized as of January 1, 2018. The primary impact of the new guidance was a change in the timing of revenue recognition on certain long-term contracts in the Company’s Aerospace and Defense segment. The adoption of the new revenue recognition guidance did not impact revenue recognized within the Company's Real Estate segment. The new guidance does not change the total sales or operating income on the related customer contracts, only the timing of when sales and operating income are recognized. Under this new guidance, the Company discontinued the use of the unit-of-delivery revenue recognition method on certain customer contracts and re-measured the performance obligations using the cost-to-cost method. The cumulative favorable impact of the adoption was $37.6 million of net income which was recorded to stockholders' equity.

The following tables summarize the effect of adoption of the new revenue recognition standard on the Company’s consolidated financial statements for 2018.

Condensed Consolidated Statement of Operations

	Year Ended December 31, 2018
	As Reported		Effect of Adoption		Amounts Excluding Effect of Adoption
	(In millions, except per share amounts)
Net sales	$	1,895.9	$	14.1	$	1,910.0
Operating costs and expenses:
Cost of sales (exclusive of items shown separately below)	1,549.4		27.2		1,576.6
Selling, general and administrative expense	43.8		—		43.8
Depreciation and amortization	72.3		—		72.3
Other income, net	(40.2)		—		(40.2)
Total operating costs and expenses	1,625.3		27.2		1,652.5
Operating income	270.6		(13.1)		257.5
Total non-operating expense, net	82.0		—		82.0
Income before income taxes	188.6		(13.1)		175.5
Income tax provision	51.3		(3.5)		47.8
Net income	$	137.3	$	(9.6)	$	127.7
Earnings per share of common stock
Basic earnings per share	$	1.80	$	(0.13)	$	1.67
Diluted earnings per share	$	1.75	$	(0.12)	$	1.63
Weighted average shares of common stock outstanding, basic	74.8		—		74.8
Weighted average shares of common stock outstanding, diluted	76.8		—		76.8

Condensed Consolidated Statement of Comprehensive Income

	Year Ended December 31, 2018
	As Reported		Effect of Adoption		Amounts Excluding Effect of Adoption
	(In millions)
Net income	$	137.3	$	(9.6)	$	127.7
Other comprehensive income:
Actuarial losses and amortization of actuarial losses, net of income taxes	33.2		—		33.2
Comprehensive income	$	170.5	$	(9.6)	$	160.9

Condensed Consolidated Statement of Cash Flows

	Year Ended December 31, 2018
	As Reported		Effect of Adoption		Amounts Excluding Effect of Adoption
	(In millions)
Operating Activities
Net income	$	137.3	$	(9.6)	$	127.7
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	72.3		—		72.3
Amortization of debt discount and deferred financing costs	8.9		—		8.9
Stock-based compensation	20.5		—		20.5
Retirement benefits, net	15.9		—		15.9
Other, net	(2.2)		—		(2.2)
Changes in assets and liabilities:
Accounts receivable, net	(47.3)		57.1		9.8
Contract assets	10.5		1.2		11.7
Other current assets, net	21.5		(8.1)		13.4
Recoverable environmental remediation costs	(20.0)		—		(20.0)
Other noncurrent assets	5.8		—		5.8
Accounts payable	(39.4)		—		(39.4)
Contract liabilities	29.2		(42.2)		(13.0)
Other current liabilities	40.9		(31.8)		9.1
Deferred income taxes	4.7		33.4		38.1
Reserves for environmental remediation costs	(13.5)		—		(13.5)
Other noncurrent liabilities and other	7.6		—		7.6
Net Cash Provided by Operating Activities	252.7		—		252.7
Investing Activities
Net Cash Used in Investing Activities	(20.9)		—		(20.9)
Financing Activities
Net Cash Used in Financing Activities	(26.5)		—		(26.5)
Net Increase in Cash, Cash Equivalents and Restricted Cash	205.3		—		205.3
Cash, Cash Equivalents and Restricted Cash at Beginning of Year	535.0		—		535.0
Cash, Cash Equivalents and Restricted Cash at End of Year	$	740.3	$	—	$	740.3