We adopted ASC 606 and all related amendments on October 1, 2018 using the modified retrospective method. We recorded the transition adjustment to the opening balance of retained earnings to account for the cumulative effect of adopting ASC 606. Since we used the modified retrospective method, we have not restated comparative information, which continues to be reported under the accounting standard in effect for those periods.

We manufacture certain customized products that have no alternative use to us (since they are made to specific customer orders), and we believe that for certain customers we have a legally enforceable right to payment for performance completed to date on these products, including a reasonable profit. For manufactured products that meet these two criteria, we now recognize revenue “over time”. This results in revenue recognition prior to the date of shipment or title transfer for these products and increases the contract asset (unbilled receivables) balance with a corresponding reduction in finished goods inventory on our balance sheet. Due to the recurring nature of our sales of these customized products, the impact of ASC 606 is not expected to have a material impact on our condensed consolidated financial statements in future periods.

The transition adjustment resulted in revenue acceleration of $183.7 million with a corresponding acceleration of cost of $133.4 million. The net increase to the opening balance of retained earnings was $43.5 million (net of tax expense of $6.8 million) as of October 1, 2018 due to the cumulative impact of adopting the new revenue standard. The adoption of ASC 606 had the following impact on our condensed consolidated financial statements:

	Three Months Ended June 30, 2019
(In millions)	As Reported			Balances Without Adoption of ASC 606			Impact of Adoption Increase/(Decrease)

Net sales	$	4,690.0		$	4,690.1		$	(0.1	)
Cost of goods sold	$	3,701.1		$	3,702.1		$	(1.0	)
Income tax expense	$	(77.6	)	$	(77.3	)	$	(0.3	)
Consolidated net income	$	253.8		$	253.2		$	0.6

	Nine Months Ended June 30, 2019
(In millions)	As Reported			Balances Without Adoption of ASC 606			Impact of Adoption Increase/(Decrease)

Net sales	$	13,637.4		$	13,640.2		$	(2.8	)
Cost of goods sold	$	10,967.1		$	10,972.2		$	(5.1	)
Income tax expense	$	(187.5	)	$	(186.9	)	$	(0.6	)
Consolidated net income	$	555.5		$	553.8		$	1.7

	June 30, 2019
(In millions)	As Reported		Balances Without Adoption of ASC 606		Impact of Adoption Increase/(Decrease)

Inventories	$	2,074.2	$	2,214.3	$	(140.1	)
Other current assets	$	515.7	$	321.8	$	193.9
Other current liabilities	$	676.8	$	676.2	$	0.6
Retained earnings	$	1,805.1	$	1,759.9	$	45.2

	Nine Months Ended June 30, 2019
(In millions)	As Reported			Balances Without Adoption of ASC 606			Impact of Adoption Increase/(Decrease)

Consolidated net income	$	555.5		$	553.8		$	1.7
Other assets	$	(171.7	)	$	(174.5	)	$	2.8
Inventories	$	(39.5	)	$	(34.4	)	$	(5.1	)
Income taxes	$	(29.5	)	$	(30.1	)	$	0.6

ASC 606 requires that we disaggregate revenue from contracts with customers into categories that depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. The tables below disaggregate our revenue by geographical market and product type (segment).

	Three Months Ended June 30, 2019
(In millions)	Corrugated Packaging		Consumer Packaging		Land and Development		Intersegment Sales			Total

Primary Geographical Markets
North America	$	2,954.6	$	1,306.0	$	8.6	$	(41.3	)	$	4,227.9
South America		102.8		14.8		—		—			117.6
Europe		0.7		259.3		—		(0.1	)		259.9
Asia Pacific		14.7		70.0		—		(0.1	)		84.6
Total ⁽¹⁾	$	3,072.8	$	1,650.1	$	8.6	$	(41.5	)	$	4,690.0

	Nine Months Ended June 30, 2019
(In millions)	Corrugated Packaging		Consumer Packaging		Land and Development		Intersegment Sales			Total

Primary Geographical Markets
North America	$	8,426.3	$	3,870.7	$	23.3	$	(119.0	)	$	12,201.3
South America		321.2		52.2		—		—			373.4
Europe		0.7		789.4		—		(0.1	)		790.0
Asia Pacific		49.1		224.9		—		(1.3	)		272.7
Total ⁽¹⁾	$	8,797.3	$	4,937.2	$	23.3	$	(120.4	)	$	13,637.4

Contract assets are rights to consideration in exchange for goods that we have transferred to a customer when that right is conditional on something other than the passage of time. Contract assets are reduced when title and risk of loss passes to the customer. Contract liabilities represent obligations to transfer goods or services to a customer for which we have received consideration. Contract liabilities are reduced once control of the goods is transferred to the customer.

The opening and closing balances of our contract assets and contract liabilities are as follows. Contract assets and contract liabilities are aggregated within Other current assets and Other current liabilities, respectively, on the condensed consolidated balance sheet.

(In millions)	Contract Assets (Short-Term)			Contract Liabilities (Short-Term)

Beginning balance - October 1, 2018	$	183.7		$	7.9
Impact of acquisition		13.0			—
Ending balance - June 30, 2019		193.9			11.4
(Decrease) / increase	$	(2.8	)	$	3.5

We primarily derive revenue from fixed consideration. Certain contracts may also include variable consideration, typically in the form of cash discounts and volume rebates. If a contract with a customer includes variable consideration, we estimate the expected cash discounts and other customer refunds based on historical experience. We concluded this method is consistent with the most likely amount method under ASC 606 and allows us to make the best estimate of the consideration we will be entitled to from customers.

Contracts or purchase orders with customers could include a single type of product or multiple types and grades of products. Regardless, the contract price with the customer is agreed to at the individual product level outlined in the customer contracts or purchase orders. Management has concluded that the prices negotiated with each individual customer are representative of the stand-alone selling price of the product.

As permitted by ASC 606, we elected to use certain practical expedients in connection with our implementation of ASC 606. We treat shipping and handling activities as fulfillment activities. We treat costs associated with obtaining new contracts as expenses when incurred if the amortization period of the asset we would recognize is one year or less. We do not record interest income when the difference in timing of control transfer and customer payment is one year or less. The election of these practical expedients results in accounting treatments that we believe are consistent with our historical accounting policies and, therefore, these elections of practical expedients do not have a material impact on comparability of our financial statements.