Recent accounting pronouncements adopted

ASU 2014-09 - Revenue from Contracts with Customers - On January 1, 2018, the Corporation adopted ASC 606, Revenue from Contracts with Customers, and the related amendments (“new revenue standard”) using the modified retrospective method. The Corporation recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the retained earnings balance as of January 1, 2018. Comparative information for prior periods has not been restated and continues to be reported under the accounting standard in effect for those respective periods.

The cumulative effect from the adoption of the new revenue standard as of January 1, 2018 was as follows:



Balance Sheet (In thousands)	As of December 31, 2017		Adjustments due to ASU 2014-09			As of January 1, 2018
Receivables, net	$	494,923	$	18,363		$	513,286
Inventories, net	378,866		(23,555		)	355,311
Other assets	18,229		878			19,107
Deferred revenue	214,891		(2,040		)	212,851
Retained earnings	1,944,324		(2,274		)	1,942,050

The impact of adoption on the Corporation's Condensed Consolidated Statement of Earnings and Condensed Consolidated Balance Sheet was as follows:



	Three Months Ended June 30, 2018
Statement of Earnings (In thousands)	As Reported			Adjustments Increase/(Decrease)			Balances Without Adoption of ASC 606
Product sales	$	511,676		$	(5,477	)	$	506,199
Cost of product sales	324,184			(4,095		)	320,089
Provision for income taxes	(21,693		)	371			(21,322		)
Net Income	$	74,788		$	(1,011	)	$	73,777



	Six Months Ended June 30, 2018
Statement of Earnings (In thousands)	As Reported			Adjustments Increase/(Decrease)			Balances Without Adoption of ASC 606
Product sales	$	956,363		$	(7,511	)	$	948,852
Cost of product sales	623,495			(3,727		)	619,768
Provision for income taxes	(39,027		)	986			(38,041		)
Net Income	$	118,431		$	(2,798	)	$	115,633



	As of June 30, 2018
Balance Sheet (In thousands)	As Reported		Adjustments Increase/(Decrease)			Balances Without Adoption of ASC 606
Receivables, net	$	575,142	$	(26,158	)	$	548,984
Inventories, net	436,250		27,557			463,807
Other assets	18,292		(879		)	17,413
Income taxes payable	4,957		(983		)	3,974
Deferred revenue	231,187		2,029			233,216
Retained earnings	2,047,250		(526		)	2,046,724

ASU 2017-07, Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost - On January 1, 2018, the Corporation adopted the amendments to ASC 715 that improve the presentation of net periodic pension and postretirement benefit costs. The Corporation retrospectively adopted the presentation of service cost separate from the other components of net periodic costs and included it as a component of employee compensation cost in operating income. The interest cost, expected return on assets, amortization of prior service costs, and net actuarial gain/loss components of net periodic benefit costs have been reclassified from operating income to other income, net. Additionally, the Corporation elected to apply the practical expedient which allows it to reclassify amounts disclosed previously in Note 15 of the Corporation's 2017 Annual Report on Form 10-K as the basis for applying retrospective presentation for comparative periods.

The effect of the retrospective change on the Corporation's Condensed Consolidated Statement of Earnings for the three and six months ended June 30, 2017, was as follows:



	Three Months Ended June 30, 2017
Statement of Earnings (In thousands)	Previously Reported		Adjustments Increase/(Decrease)			As Revised
Cost of product sales	$	299,739	$	3,055		$	302,794
Cost of service sales	69,144		705			69,849
Research and development expenses	15,501		287			15,788
Selling expenses	28,560		495			29,055
General and administrative expenses	71,438		(1,003		)	70,435
Other income, net	190		3,539			3,729



	Six Months Ended June 30, 2017
Statement of Earnings (In thousands)	Previously Reported		Adjustments Increase/(Decrease)			As Revised
Cost of product sales	$	586,231	$	6,173		$	592,404
Cost of service sales	135,468		1,427			136,895
Research and development expenses	30,799		580			31,379
Selling expenses	57,513		1,000			58,513
General and administrative expenses	146,735		(2,106		)	144,629
Other income, net	502		7,074			7,576

ASU 2017-01, Business Combinations - Clarifying the Definition of a Business - On January 1, 2018, the Corporation adopted the amendments to ASC 805 which clarify the definition of a business. The standard introduces a screen for determining when assets acquired are not a business and clarifies that a business must include, at a minimum, an input and a substantive process that contribute to an output. The adoption of this standard did not have a material impact on the Condensed Consolidated Financial Statements.