Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2018

Revenue Recognition [Abstract]

Impact of Adopting ASC 606

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.

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

	September 30, 2018 As Reported		Adjustments			September 30, 2018 without Adoption of ASC 606
Contract assets	$	51.0	$	(51.0	)	$	—
Inventories	196.2		31.3			227.5
Total current assets	673.0		(19.7		)	653.3
Deferred tax assets, net	42.2		3.3			45.5
Total assets	$	1,426.0	$	(16.4	)	$	1,409.6
Other accrued liabilities	37.0		(2.7		)	34.3
Total current liabilities	192.5		(2.7		)	189.8
Total liabilities	$	663.5	$	(2.7	)	$	660.8
Retained earnings	135.6		(13.7		)	121.9
Total stockholders’ equity	762.5		(13.7		)	748.8
Total liabilities and stockholders’ equity	$	1,426.0	$	(16.4	)	$	1,409.6

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

	Quarter Ended September 30, 2018									Nine Months Ended September 30, 2018
	As Reported			Adjustments			Without Adoption of ASC 606			As Reported			Adjustments			Without Adoption of ASC 606
Net sales	$	393.1		$	1.6		$	394.7		$	1,196.5		$	4.8		$	1,201.3
Cost of products sold, excluding depreciation and amortization and other items1	323.3			1.9			325.2			983.4			9.5			992.9
Operating income	34.9			(0.3		)	34.6			106.7			(4.7		)	102.0
Income before income taxes	29.9			(0.3		)	29.6			90.0			(4.7		)	85.3
Income tax provision	(8.2		)	0.1			(8.1		)	(21.9		)	1.1			(20.8		)
Net income	$	21.7		$	(0.2	)	$	21.5		$	68.1		$	(3.6	)	$	64.5
Net income per common share:
Basic	$	1.31		$	(0.01	)	$	1.30		$	4.09		$	(0.21	)	$	3.88
Diluted	$	1.29		$	(0.01	)	$	1.28		$	4.03		$	(0.21	)	$	3.82

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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 each period presented (in millions of dollars):

	Quarter Ended September 30, 2018							Nine Months Ended September 30, 2018
	As Reported		Adjustments			Without Adoption of ASC 606		As Reported		Adjustments			Without Adoption of ASC 606
Net income	$	21.7	$	(0.2	)	$	21.5	$	68.1	$	(3.6	)	$	64.5
Comprehensive income	$	20.9	$	(0.2	)	$	20.7	$	65.4	$	(3.6	)	$	61.8

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):

	Nine Months Ended September 30, 2018 As Reported			Adjustments			Nine Months Ended September 30, 2018 without Adoption of ASC 606
Net income	$	68.1		$	(3.6	)	$	64.5
Changes in operating assets and liabilities:
Contract assets	4.6			(4.6		)	—
Inventories	(25.6		)	9.4			(16.2		)
Accrued liabilities	(1.0		)	(1.2		)	(2.2		)
Net cash provided by operating activities	$	112.5		$	—		$	112.5