Revenue Recognition (Tables)

3 Months Ended

Mar. 31, 2018

Revenue Recognition Opening Balance Sheet

The following table presents the impact on our opening Consolidated Balance Sheet as of January 1, 2018 of adopting ASC 606 (in millions of dollars):



	December 31, 2017 As Reported		Cumulative-effect Adjustments¹			January 1, 2018 As Adjusted
Contract assets	$	—	$	55.6		$	55.6
Inventories	207.9		(40.7		)	167.2
Total current assets	656.6		14.9			671.5
Deferred tax assets, net	72.0		(3.3		)	68.7
Total assets	$	1,385.2	$	11.6		$	1,396.8
Other accrued liabilities	40.5		1.5			42.0
Total current liabilities	173.1		1.5			174.6
Total liabilities	$	638.9	$	1.5		$	640.4
Retained earnings	85.5		10.1			95.6
Total stockholders’ equity	746.3		10.1			756.4
Total liabilities and stockholders’ equity	$	1,385.2	$	11.6		$	1,396.8

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¹	Included in the cumulative-effect adjustment was a charge of $5.0 million as a result of decrementing higher cost prior LIFO layers.

Consolidated Balance Sheet

The following table presents the impact of adopting ASC 606 on our Consolidated Balance Sheet for the period presented (in millions of dollars):



	March 31, 2018 As Reported		Adjustments			March 31, 2018 without Adoption of ASC 606
Contract assets	$	57.5	$	(57.5	)	$	—
Inventories	176.8		36.1			212.9
Total current assets	682.3		(21.4		)	660.9
Deferred tax assets, net	63.7		3.3			67.0
Total assets	$	1,405.4	$	(18.1	)	$	1,387.3
Other accrued liabilities	35.6		(3.5		)	32.1
Total current liabilities	184.5		(3.5		)	181.0
Total liabilities	$	651.8	$	(3.5	)	$	648.3
Retained earnings	111.7		(14.6		)	97.1
Total stockholders’ equity	753.6		(14.6		)	739.0
Total liabilities and stockholders’ equity	$	1,405.4	$	(18.1	)	$	1,387.3

Consolidated Income Statement

The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Income for the period presented (in millions of dollars, except per share amounts):



	Quarter Ended March 31, 2018 As Reported			Adjustments			Quarter Ended March 31, 2018 without Adoption of ASC 606
Net sales	$	388.0		$	(1.7	)	$	386.3
Cost of products sold, excluding depreciation and amortization and other items¹	316.7			4.2			320.9
Operating income	37.1			(5.9		)	31.2
Income before income taxes	31.6			(5.9		)	25.7
Income tax provision	(5.9		)	1.4			(4.5		)
Net income	$	25.7		$	(4.5	)	$	21.2

Net income per common share:
Basic	$	1.54		$	(0.27	)	$	1.27
Diluted	$	1.51		$	(0.26	)	$	1.25

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¹	Included in the "as reported" amounts was the benefit of having decremented higher cost prior LIFO layers as part of the cumulative-effect adjustment of adopting ASC 606, as discussed in the opening balance sheet table above.

The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Comprehensive Income for the period presented (in millions of dollars):



	Quarter Ended March 31, 2018 As Reported		Adjustments			Quarter Ended March 31, 2018 without Adoption of ASC 606
Net income	$	25.7	$	(4.5	)	$	21.2
Comprehensive income (loss)	$	17.4	$	(4.5	)	$	12.9

Consolidated Statement of Cash Flows

The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Cash Flows for the period presented (in millions of dollars):



	Quarter Ended March 31, 2018 As Reported			Adjustments			Quarter Ended March 31, 2018 without Adoption of ASC 606
Net income	$	25.7		$	(4.5	)	$	21.2
Changes in operating assets and liabilities:
Contract assets	(1.9		)	1.9			—
Inventories	(9.6		)	4.6			(5.0		)
Accrued liabilities	(7.3		)	(2.0		)	(9.3		)
Net cash provided by operating activities	$	26.1		$	—		$	26.1