Basis of Presentation and Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018

Contract with Customer, Asset and Liability

Contract assets and liabilities consisted of the following:



	December 31
In millions	2018		2017		$ Change			% Change
Contract assets	$	36.5	$	51.5	$	(15.0	)	(29.1	)%
Contract liabilities	32.8		29.2		3.6			12.3	%
Net contract assets	$	3.7	$	22.3	$	(18.6	)	(83.4	)%

Disaggregation of Revenue

Geographic net sales information for continuing operations, based on geographic destination of the sale, was as follows:



	Years ended December 31
In millions	2018		2017		2016
U.S.	$	1,858.1	$	1,752.7	$	1,690.0
Western Europe	402.7		381.9		377.7
Developing ⁽¹⁾	476.5		478.2		492.0
Other Developed ⁽²⁾	227.8		232.9		220.9
Consolidated net sales ⁽³⁾	$	2,965.1	$	2,845.7	$	2,780.6
⁽¹⁾Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia.
⁽²⁾Other Developed includes Australia, Canada and Japan.
⁽³⁾ Net sales held in Ireland, for each of the years presented, were not material.

Vertical net sales information was as follows:



	Years ended December 31
In millions	2018		2017		2016
Residential	$	1,665.9	$	1,579.0	$	1,498.7
Commercial	630.7		604.4		586.5
Industrial	668.5		662.3		695.4
Consolidated net sales	$	2,965.1	$	2,845.7	$	2,780.6

Property, Plant and Equipment

Property, plant and equipment, net

Property, plant and equipment is stated at historical cost. We compute depreciation by the straight-line method based on the following estimated useful lives:



	Years
Land improvements	5 to 20
Buildings and leasehold improvements	5 to 50
Machinery and equipment	3 to 15

Long-lived Assets by Geographic Areas

The following table presents geographic Property, plant and equipment, net by region as of December 31:



In millions	2018		2017
U.S.	$	156.9	$	151.9
Western Europe	76.6		82.8
Developing ⁽¹⁾	28.8		33.0
Other Developed ⁽²⁾	10.3		12.1
Consolidated ⁽³⁾	$	272.6	$	279.8
⁽¹⁾Developing includes China, Eastern Europe, Latin America, the Middle East and Southeast Asia.
⁽²⁾Other Developed includes Australia, Canada and Japan.
⁽³⁾ Property, plant and equipment, net held in Ireland, for each of the years presented, were not material.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

The cumulative effect of the changes made to our January 1, 2018 Consolidated Balance Sheet from the modified retrospective adoption of ASU 2016-16 and ASU 2014-09 was as follows:



Consolidated Balance Sheets
In millions	Balance at December 31, 2017		Adjustments due to ASU 2016-16			Adjustments due to ASU 2014-09			Balance at January 1, 2018
Assets
Accounts and notes receivable, net	$	483.1	$	—		$	2.7		$	485.8
Inventories	356.9		—			(1.6		)	355.3
Other current assets	114.5		—			1.6			116.1
Current assets held for sale	708.0		—			3.8			711.8
Other non-current assets	180.9		(44.9		)	—			136.0
Non-current assets held for sale	3,989.6		(201.6		)	—			3,788.0
Liabilities
Other current liabilities	401.3		—			2.7			404.0
Deferred tax liabilities	108.6		(3.7		)	0.1			105.0
Non-current liabilities held for sale	537.0		(27.0		)	0.4			510.4
Equity
Retained Earnings	2,481.7		(215.8		)	1.8			2,267.7