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 September 30, 2018
Statement of Earnings (In thousands)	As Reported			Adjustments Increase/(Decrease)			Balances Without Adoption of ASC 606
Product sales	$	495,197		$	(1,139	)	$	494,058
Cost of product sales	312,702			1,284			313,986
Provision for income taxes	(18,458		)	510			(17,948		)
Net Income	$	74,483		$	(1,913	)	$	72,570



	Nine Months Ended September 30, 2018
Statement of Earnings (In thousands)	As Reported			Adjustments Increase/(Decrease)			Balances Without Adoption of ASC 606
Product sales	$	1,451,560		$	(8,650	)	$	1,442,910
Cost of product sales	936,197			(2,443		)	933,754
Provision for income taxes	(57,485		)	1,496			(55,989		)
Net Income	$	192,914		$	(4,711	)	$	188,203



	As of September 30, 2018
Balance Sheet (In thousands)	As Reported		Adjustments Increase/(Decrease)			Balances Without Adoption of ASC 606
Receivables, net	$	615,398	$	(26,968	)	$	588,430
Inventories, net	429,267		25,579			454,846
Other assets	20,178		(879		)	19,299
Income taxes payable	5,787		(1,488		)	4,299
Deferred revenue	223,686		1,657			225,343
Retained earnings	2,115,166		(2,437		)	2,112,729

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 nine months ended September 30, 2017, was as follows:



	Three Months Ended September 30, 2017
Statement of Earnings (In thousands)	Previously Reported		Adjustments Increase/(Decrease)		As Revised
Cost of product sales	$	292,215	$	2,692	$	294,907
Cost of service sales	64,903		595		65,498
Research and development expenses	14,575		251		14,826
Selling expenses	28,818		434		29,252
General and administrative expenses	70,840		164		71,004
Other income, net	321		4,136		4,457



	Nine Months Ended September 30, 2017
Statement of Earnings (In thousands)	Previously Reported		Adjustments Increase/(Decrease)			As Revised
Cost of product sales	$	878,446	$	8,865		$	887,311
Cost of service sales	200,371		2,022			202,393
Research and development expenses	45,374		831			46,205
Selling expenses	86,331		1,434			87,765
General and administrative expenses	217,575		(1,942		)	215,633
Other income, net	823		11,210			12,033

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.