Revision of Previously Issued Financial Statements

3 Months Ended

Mar. 31, 2022

Accounting Changes and Error Corrections [Abstract]

Revision of Previously Issued Financial Statements

Revision of Previously Issued Financial Statements

As disclosed in Note 1, during the three months ended March 31, 2022, the Company identified an immaterial error in its accounting for income taxes associated with its 2¼% Notes. Upon issuance of the 2¼% Notes in 2016, the Company did not record the applicable deferred tax liability associated with the conversion option that had been recorded in other capital, which resulted in an overstatement of other capital, an overstatement of deferred income taxes, an overstatement of other current assets, net and an error in income tax expense in subsequent periods. The Company evaluated the errors and concluded that the errors were not material, either individually or in aggregate, to its current or previously issued consolidated financial statements.

Due to the immaterial error related to the accounting for income taxes associated with the 2¼% Notes, the opening other capital balance as of January 1, 2019, 2020, and 2021 was overstated by $20.9 million. Additionally, the opening retained earnings balance as of January 1, 2019 and 2020, was understated by $7.9 million and $8.0 million, respectively, and the opening accumulated deficit as of January 1, 2021, was overstated by $7.8 million. During 2021 income tax expense was overstated by $2.9 million resulting in a cumulative understatement of retained earnings of $10.7 million as of December 31, 2021.

There were no changes to the unaudited condensed consolidated statement of operations and condensed consolidated statement of comprehensive income for the three months ended March 31, 2021. The revision to the accompanying unaudited condensed consolidated balance sheet, condensed consolidated statement of stockholders’ equity, and condensed consolidated statement of cash flows are as follows.

Condensed Consolidated Balance Sheet

	As of December 31, 2021
	As Reported		Adjustments		As Revised
	(In millions)
ASSETS
Current Assets
Cash and cash equivalents	$	700.4	$	—	$	700.4
Restricted cash	3.0		—		3.0
Marketable securities	10.6		—		10.6
Accounts receivable, net	60.6		—		60.6
Contract assets	354.2		—		354.2
Other current assets, net	107.8		(8.3)		99.5
Total Current Assets	1,236.6		(8.3)		1,228.3
Noncurrent Assets
Right-of-use assets	52.6		—		52.6
Property, plant and equipment, net	421.1		—		421.1
Recoverable environmental remediation costs	226.2		—		226.2
Deferred income taxes	57.5		(1.9)		55.6
Goodwill	161.4		—		161.4
Intangible assets	34.9		—		34.9
Other noncurrent assets, net	243.3		—		243.3
Total Noncurrent Assets	1,197.0		(1.9)		1,195.1
Total Assets	$	2,433.6	$	(10.2)	$	2,423.4
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current Liabilities
Current portion of long-term debt	$	166.7	$	—	$	166.7
Accounts payable	132.2		—		132.2
Reserves for environmental remediation costs	37.7		—		37.7
Contract liabilities	366.5		—		366.5
Other current liabilities	172.7		—		172.7
Total Current Liabilities	875.8		—		875.8
Noncurrent Liabilities
Long-term debt	294.6		—		294.6
Reserves for environmental remediation costs	258.7		—		258.7
Pension benefits	255.9		—		255.9
Operating lease liabilities	41.3		—		41.3
Other noncurrent liabilities	173.8		—		173.8
Total Noncurrent Liabilities	1,024.3		—		1,024.3
Total Liabilities	1,900.1		—		1,900.1
Commitments and contingencies (Note 8)
Stockholders’ Equity
Common stock	8.0		—		8.0
Other capital	599.0		(20.9)		578.1
Treasury stock at cost	(64.4)		—		(64.4)
Retained earnings	91.9		10.7		102.6
Accumulated other comprehensive loss, net of income taxes	(101.0)		—		(101.0)
Total Stockholders’ Equity	533.5		(10.2)		523.3
Total Liabilities and Stockholders’ Equity	$	2,433.6	$	(10.2)	$	2,423.4

Condensed Consolidated Statements of Stockholders’ Equity

	Three Months Ended March 31, 2021
	As Reported		Adjustments		As Revised
	(In millions)
Common stock	$	8.0	$	—	$	8.0
Other capital	583.3		(20.9)		562.4
Treasury stock	(64.4)		—		(64.4)
Accumulated deficit	(33.8)		7.8		(26.0)
Accumulated other comprehensive loss	(216.1)		—		(216.1)
Total stockholders' equity	$	277.0	$	(13.1)	$	263.9

Condensed Consolidated Statement of Cash Flows

	Three Months Ended March 31, 2021
	As Reported		Adjustments		As Revised
	(In millions)
Operating Activities
Net income	$	18.1	$	—	$	18.1
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	15.2		—		15.2
Amortization of debt discount and deferred financing costs	1.5		—		1.5
Stock-based compensation	2.8		—		2.8
Retirement benefits, net	(2.5)		—		(2.5)
Loss on debt	9.1		—		9.1
Other, net	(0.3)		—		(0.3)
Changes in assets and liabilities:
Accounts receivable, net	(130.7)		—		(130.7)
Contract assets	(11.9)		—		(11.9)
Other current assets, net	11.1		3.0		14.1
Recoverable environmental remediation costs	3.9		—		3.9
Other noncurrent assets	2.3		—		2.3
Accounts payable	(27.4)		—		(27.4)
Contract liabilities	29.9		—		29.9
Other current liabilities	14.6		—		14.6
Deferred income taxes	—		(3.0)		(3.0)
Reserves for environmental remediation costs	(5.3)		—		(5.3)
Other noncurrent liabilities and other	0.2				0.2
Net Cash Used in Operating Activities	(69.4)		—		(69.4)
Investing Activities
Net Cash Used in Investing Activities	(5.7)		—		(5.7)
Financing Activities
Net Cash Used in Financing Activities	(570.7)		—		(570.7)
Net Decrease in Cash, Cash Equivalents and Restricted Cash	(645.8)		—		(645.8)
Cash, Cash Equivalents and Restricted Cash at Beginning of Year	1,152.5		—		1,152.5
Cash, Cash Equivalents and Restricted Cash at End of Year	$	506.7	$	—	$	506.7