Significant Accounting Policies Update (Tables)

6 Months Ended

Jun. 29, 2018

Effects and Impacts of New Accounting Pronouncements

The following tables summarize the impacts of the adoption of ASU 2017-07 on the Company's Condensed Statement of Operations and segment operating income.



	For the Three Months Ended
	June 30, 2017
	As previously reported			Adjustments			As adjusted
In thousands
Cost of sales	$	314,043		$	470		$	314,513
Gross profit	134,963			(470		)	134,493
Selling, general and administrative expenses	107,556			396			107,952
Operating income	27,392			(866		)	26,526
Non-service pension and post retirement benefit cost (income)	—			(866		)	(866		)

Segment operating income
Distribution	$	15,934		$	(277	)	$	15,657
Aerospace	26,270			(558		)	25,712
Corporate expenses	(14,797		)	(31		)	(14,828		)



	For the Six Months Ended
	June 30, 2017
	As previously reported			Adjustments			As adjusted
In thousands
Cost of sales	$	625,168		$	940		$	626,108
Gross profit	259,779			(940		)	258,839
Selling, general and administrative expenses	218,184			645			218,829
Operating income	41,600			(1,585		)	40,015
Non-service pension and post retirement benefit cost (income)	—			(1,585		)	(1,585		)

Segment operating income
Distribution	$	27,628		$	(555	)	$	27,073
Aerospace	42,859			(1,117		)	41,742
Corporate expenses	(28,892		)	87			(28,805		)

The cumulative effect of the changes made to the Company's Consolidated Balance Sheets as of January 1, 2018 as a result of the adoption of ASC 606 was as follows:



	Balance at					Balance at
in thousands	December 31, 2017		Adjustments due to ASC 606			January 1, 2018
Assets
Accounts receivable, net	$	313,451	$	(29,242	)	$	284,209
Contract assets	—		82,699			82,699
Contract costs, current portion	—		3,022			3,022
Inventories	367,437		(73,674		)	293,763
Other current assets	27,188		33			27,221
Deferred income taxes	27,603		4,170			31,773
Contract costs, noncurrent portion	—		7,852			7,852

Liabilities
Accounts payable - trade	$	127,591	$	1,068		$	128,659
Contract liabilities, current portion	—		10,705			10,705
Advances on contracts	8,527		(8,527		)	—
Other current liabilities	52,812		(1,016		)	51,796
Income taxes payable	1,517		1,525			3,042
Contract liabilities, noncurrent portion	—		689			689

Equity
Retained earnings	$	587,877	$	(9,584	)	$	578,293

The following tables summarize the impacts of ASC 606 on the Company's condensed consolidated financial statements.



	June 29, 2018
	As reported		Adjustments			Balances without adoption of ASC 606
In thousands
Assets
Accounts receivable, net	$	250,293	$	19,355		$	269,648
Contract assets	125,204		(125,204		)	—
Contract costs, current portion	3,487		(3,487		)	—
Inventories	291,058		121,351			412,409
Income tax refunds receivable	3,692		4,722			8,414
Other current assets	32,173		(183		)	31,990
Deferred income taxes	22,998		(4,254		)	18,744
Contract costs, noncurrent portion	12,847		(12,847		)	—

Liabilities
Accounts payable - trade	$	136,140	$	(980	)	$	135,160
Contract liabilities, current portion	9,928		(9,928		)	—
Advances on contracts, current portion	—		9,919			9,919
Other current liabilities	54,462		572			55,034
Deferred income taxes	7,738		(3		)	7,735
Contract liabilities, noncurrent portion	76,330		(76,330		)	—
Advances on contracts, noncurrent portion	—		76,330			76,330

Equity
Retained earnings	$	596,270	$	(127	)	$	596,143

For the six-month fiscal period ended June 29, 2018, the Company realized changes of asset and liability accounts as described above, with no impact to the Company's cash flows from operating activities.

3. SIGNIFICANT ACCOUNTING POLICIES UPDATE (CONTINUED)

Revenue Recognition - continued



	For the Three Months Ended
	June 29, 2018
	As reported			Adjustments			Balances without adoption of ASC 606
In thousands
Net sales	$	468,129		$	(18,473	)	$	449,656
Cost of sales	332,486			(13,370		)	319,116
Gross profit	135,643			(5,103		)	130,540
Selling, general and administrative expenses	114,339			(1,944		)	112,395
Restructuring costs	1,954			—			1,954
Net gain on sale of assets	(1,525		)	—			(1,525		)
Operating income	20,875			(3,159		)	17,716
Interest expense, net	5,002			—			5,002
Non-service pension and post retirement benefit cost (income)	(3,039		)	—			(3,039		)
Other expense (income), net	361			—			361
Earnings before income taxes	18,551			(3,159		)	15,392
Income tax expense	3,457			(813		)	2,644
Net earnings	$	15,094		$	(2,346	)	$	12,748



	For the Six Months Ended
	June 29, 2018
	As reported			Adjustments			Balances without adoption of ASC 606
In thousands
Net sales	$	931,456		$	(61,974	)	$	869,482
Cost of sales	661,706			(46,628		)	615,078
Gross profit	269,750			(15,346		)	254,404
Selling, general and administrative expenses	226,092			(2,521		)	223,571
Restructuring costs	3,647			—			3,647
Net gain on sale of assets	(1,588		)	—			(1,588		)
Operating income	41,599			(12,825		)	28,774
Interest expense, net	10,354			—			10,354
Non-service pension and post retirement benefit cost (income)	(6,068		)	—			(6,068		)
Other expense (income), net	19			—			19
Earnings before income taxes	37,294			(12,825		)	24,469
Income tax expense	8,134			(3,114		)	5,020
Net earnings	$	29,160		$	(9,711	)	$	19,449

For the three-month and six-month fiscal periods ended June 29, 2018, the only adjustments to comprehensive income when comparing the balances with ASC 606 and the balances without ASC 606 included the adjustments to net earnings presented above.