Revenue

The Company generates revenue from the development, design, manufacturing, marketing and distribution of copper, aluminum, and fiber optic wire and cable products. The Company recognizes revenue when it satisfies a performance obligation by transferring control over a product or service to a customer. An asset is transferred when (or as) the customer obtains control of that asset and is measured based on considerations specified in contracts with a customer.

Performance obligations

At contract inception, the Company assesses the goods and services promised in its contracts with customers and identifies a performance obligation for each promise to transfer to the customer a good or service (or bundle of goods or services) that is distinct. The Company's customer contracts state the final terms of the sale, including the description, quantity, and price of each product or service purchased. To identify the performance obligations, the Company considers all of the goods or services promised in the contract regardless of whether they are explicitly stated or are implied by customary business practices. Shipping and handling amounts billed to a customer in a sales transaction are classified as revenue. The Company applies the transition practical expedient in ASC 606-10-25-18B and shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as a fulfillment cost and are in included in the Cost of sales caption of the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

Transaction price

Revenue is measured based on considerations specified in contracts with a customer. A provision for payment discounts, warranty and customer rebates is estimated based upon historical experience and other relevant factors and is recorded within the same period that the revenue is recognized.

Nature of revenue

Revenue disaggregated by product categories and geographical markets for the Company's reportable segments for the three fiscal months ended March 30, 2018 is as follows (in millions):



	Three Fiscal Months Ended March 30, 2018
	North America		Europe		Latin America		Africa/Asia Pacific		Total
Major product lines:
Electric utility	$	187.7	$	129.8	$	36.6	$	—	$	354.1
Electrical infrastructure	191.6		43.8		30.6		0.2		266.2
Construction	89.5		45.2		89.7		1.4		225.8
Communications	81.3		45.8		0.8		—		127.9
Rod mill products	36.0		—		10.5		—		46.5
Total	$	586.1	$	264.6	$	168.2	$	1.6	$	1,020.5
Primary geographical markets:
United States	$	487.4	$	12.5	$	—	$	—	$	499.9
Canada	88.2		0.6		—		—		88.8
France	0.2		85.0		—		—		85.2
Spain	—		52.3		—		—		52.3
Brazil	—		—		45.9		—		45.9
Others	10.3		114.2		122.3		1.6		248.4
Total	$	586.1	$	264.6	$	168.2	$	1.6	$	1,020.5

Timing of revenue recognition

An asset is transferred when (or as) the customer obtains control of that asset. Revenue may be recognized when control passes to the customer either over a period of time or at a point in time. The Company determines, at contract inception, whether control of a good transfers to a customer over time or at a point in time. The Company enters into contracts in which the Company's performance creates an asset with no alternative use to the Company and the Company has an enforceable right to payment for performance completed to date. For these contracts, the Company recognizes revenue over time. Therefore, for such contracts, revenue is recognized progressively based on the cost-to-cost method using reasonably reliable estimates of total revenue, total cost, and the extent of progress toward completion. The Company reviews contract price and cost estimates periodically as the work progresses and reflects adjustments proportionate to the percentage-of-completion to income in the period when those estimates are revised. For these contracts, if a current estimate of total contract cost indicates a loss on a contract, the projected loss is recognized in full in the period when determined. If an entity does not satisfy a performance obligation over a period of time, the performance obligation is satisfied at a point in time. Revenue disaggregated by the timing of revenue recognition for the Company's reportable segments for the three fiscal months ended March 30, 2018 is as follows (in millions):



	Three Fiscal Months Ended March 30, 2018
	North America		Europe		Latin America		Africa/Asia Pacific		Total
Timing of revenue recognition:
Transferred at a point in time	$	409.1	$	181.0	$	168.2	$	1.6	$	759.9
Transferred over time	177.0		83.6		—		—		260.6
Total	$	586.1	$	264.6	$	168.2	$	1.6	$	1,020.5

Contract balances

The opening and closing balances of the Company’s receivables, contract assets and contract liabilities are as follows (in millions):



	March 30, 2018		January 1, 2018		Increase (Decrease)
Contract assets	$	140.3	$	89.2	$	51.1
Current contract liabilities	50.7		75.6		(24.9		)
Non-current contract liabilities	0.6		0.6		—

Contract assets, current contract liabilities and non-current contract liabilities are included in the Receivables, net of allowances, Accrued liabilities and Other liabilities captions, respectively, on the Company's Condensed Consolidated Balance Sheets. Contract assets primarily relate to the Company's rights to consideration for work completed but not yet billed. Contract liabilities primarily relate to the advance consideration received from customers for which transfer of control has not yet occurred. The difference between the opening and closing balances of the Company’s contract assets and contract liabilities primarily results from timing differences between the Company’s performance and customer payments. The Company recognized revenue of approximately $41.3 million that was included in the current contract liabilities balance at the beginning of the period.

Transaction price allocated to the remaining performance obligations

For contracts that are greater than one year, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) as of March 30, 2018 is approximately $244.0 million, $115.8 million and $0.2 million in the twelve month periods ending March 29, 2019, April 3, 2020 and April 2, 2021, respectively.

The Company applies the transition practical expedient in ASC 606-10-50-14 and does not disclose information about remaining performance obligations that have original expected durations of one year or less.

The Company applies the transition practical expedient in ASC 606-10-65-1(f)(3) and does not disclose the amount of the transaction price allocated to the remaining performance obligations at December 31, 2017 or an explanation of when the Company expects to recognize that amount as revenue.

Changes in accounting policies

The Company adopted ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)” on January 1, 2018 using the modified retrospective (cumulative effect) transition method. The details of the significant changes and quantitative impacts of the changes are disclosed below.

In accordance with Topic 606, when the Company’s performance does not create an asset with an alternative use to the Company and the Company has an enforceable right to payment for performance completed to date, transfer of control is deemed to take place over time. Therefore, for such contracts, revenue is recognized progressively based on the cost-to-cost method if there are reasonably reliable estimates of total revenue, total cost, and the extent of progress toward completion. The Company reviews contract price and cost estimates periodically as the work progresses and reflects adjustments proportionate to the percentage-of-completion to income in the period when those estimates are revised. For these contracts, if a current estimate of total contract cost indicates a loss on a contract, the projected loss is recognized in full in the period when determined. With the exception of certain long-term product installation contracts, the Company previously recognized revenue for no alternative use inventory when the inventory was shipped to the customer, title and risk of loss had transferred, pricing was fixed and determinable and collectability was reasonably assured. The adoption of Topic 606 resulted in a net reduction for revenue recognition for no alternative use inventory of approximately $3.7 million in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for three fiscal months ended March 30, 2018.

In accordance with Topic 606, the Company recognizes revenue when a customer obtains control of the inventory. Under the Company’s consignment contracts, the Company generally has the present right to payment, title remains with the Company, the customer has physical possession of the inventory, the customer bears the risk of loss and the customer is deemed to have accepted the inventory. Accordingly, control is considered to have transferred to the customer and therefore, for such contracts, revenue is recognized when the inventory is delivered to the consignment location. The Company previously recognized revenue for consignment inventory when the inventory was removed from the consignment stock by the customer, title and risk of loss had transferred, pricing was fixed and determinable and collectability was reasonably assured. The adoption of Topic 606 resulted in additional net revenue recognition for consignment arrangements of approximately $2.3 million in the Company’s Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) for three fiscal months ended March 30, 2018.

The impacts of adopting Topic 606 on the Company’s Condensed Consolidated Statement of Operations and Comprehensive Income (Loss) for the three fiscal months ended March 30, 2018 are as follows (in millions):



	Three Fiscal Months Ended March 30, 2018
	As reported			Balances without adoption of Topic 606			Effect of change increase / (decrease)
Net sales	$	1,020.5		$	1,021.9		$	(1.4	)
Cost of sales	914.8			914.7			0.1
Income tax (provision) benefit	(4.6		)	(4.8		)	0.2

The impacts of adopting Topic 606 on the Company’s Condensed Consolidated Balance Sheet for the three fiscal months ended March 30, 2018 are as follows (in millions).



	March 30, 2018
	As reported			Balances without adoption of Topic 606			Effect of change increase / (decrease)
Assets
Receivables, net of allowances	$	811.9		$	750.5		$	61.4
Inventories	728.7			778.8			(50.1		)
Liabilities and Total Equity
Accrued liabilities	254.5			255.7			(1.2		)
Deferred income taxes	114.4			111.6			2.8
Retained earnings (deficit)	(197.7		)	(207.4		)	9.7