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Revenue Recognition (Tables)
 9 Months Ended
Sep. 30, 2024
Sales And Revenue Recognition [Abstract]  
Schedule of Impact Due to Contract Adjustments

Net contract adjustments impacted the Company’s results as follows (in millions, except per share amounts):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net sales

 

$

(1.1

)

 

$

2.2

 

 

$

(14.3

)

 

$

(8.5

)

Operating income

 

 

(7.6

)

 

 

2.5

 

 

 

(30.4

)

 

 

(23.6

)

Net income

 

 

(5.8

)

 

 

1.9

 

 

 

(23.2

)

 

 

(18.1

)

Diluted earnings per share

 

$

(0.09

)

 

$

0.03

 

 

$

(0.35

)

 

$

(0.28

)
Schedule of Deferred Contract Costs

Deferred contract costs, the majority of which are related to the NGDV contract, consisted of the following (in millions):

 

 

September 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Costs for anticipated contracts

 

$

6.7

 

 

$

6.2

 

Engineering costs

 

 

502.7

 

 

 

439.6

 

Factory setup costs

 

 

52.5

 

 

 

44.4

 

Customer-owned tooling

 

 

266.2

 

 

 

220.5

 

Deferred contract costs

 

$

828.1

 

 

$

710.7

 
Disaggregation of Revenue

Consolidated net sales disaggregated by segment and timing of revenue recognition are as follows (in millions):

 

 

Three Months Ended September 30, 2024

 

 

 

Access

 

 

Vocational

 

 

Defense

 

 

Corporate and Other

 

 

Total

 

Point in time

 

$

1,347.0

 

 

$

597.2

 

 

$

6.5

 

 

$

(0.9

)

 

$

1,949.8

 

Over time

 

 

16.3

 

 

 

217.0

 

 

 

533.9

 

 

 

24.4

 

 

 

791.6

 

 

$

1,363.3

 

 

$

814.2

 

 

$

540.4

 

 

$

23.5

 

 

$

2,741.4

 

 

 

 

Three Months Ended September 30, 2023

 

 

 

Access

 

 

Vocational

 

 

Defense (a)

 

 

Corporate and Other (a)

 

 

Total

 

Point in time

 

$

1,303.8

 

 

$

533.1

 

 

$

4.2

 

 

$

(1.0

)

 

$

1,840.1

 

Over time

 

 

14.4

 

 

 

159.5

 

 

 

470.4

 

 

 

25.5

 

 

 

669.8

 

 

$

1,318.2

 

 

$

692.6

 

 

$

474.6

 

 

$

24.5

 

 

$

2,509.9

 

 

 

 

Nine Months Ended September 30, 2024

 

 

 

Access

 

 

Vocational

 

 

Defense

 

 

Corporate and Other

 

 

Total

 

Point in time

 

$

3,956.9

 

 

$

1,777.2

 

 

$

11.7

 

 

$

(2.7

)

 

$

5,743.1

 

Over time

 

 

50.8

 

 

 

652.5

 

 

 

1,609.7

 

 

 

76.0

 

 

 

2,389.0

 

 

$

4,007.7

 

 

$

2,429.7

 

 

$

1,621.4

 

 

$

73.3

 

 

$

8,132.1

 

 

 

 

Nine Months Ended September 30, 2023

 

 

 

Access

 

 

Vocational

 

 

Defense (a)

 

 

Corporate and Other (a)

 

 

Total

 

Point in time

 

$

3,799.6

 

 

$

1,462.0

 

 

$

10.4

 

 

$

(2.7

)

 

$

5,269.3

 

Over time

 

 

40.1

 

 

 

380.8

 

 

 

1,430.5

 

 

 

70.4

 

 

 

1,921.8

 

 

$

3,839.7

 

 

$

1,842.8

 

 

$

1,440.9

 

 

$

67.7

 

 

$

7,191.1

 
(a)
Results have been reclassified to reflect the change in responsibility for Pratt Miller.
Schedule of Contract Liabilities and Revenue Recognized Contract liabilities consisted of the following (in millions):

 

 

September 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Customer advances

 

$

672.1

 

 

$

706.9

 

Other current liabilities

 

 

102.8

 

 

 

96.2

 

Non-current customer advances

 

 

1,158.4

 

 

 

1,190.7

 

Other non-current liabilities

 

 

72.8

 

 

 

68.5

 

Total contract liabilities

 

$

2,006.1

 

 

$

2,062.3

 

Revenue recognized during the period from beginning contract liabilities was as follows (in millions):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Beginning liabilities recognized in revenue

 

$

130.9

 

 

$

130.9

 

 

$

490.2

 

 

$

478.5

 

 
Schedule of Changes in Warranty Liabilities and Unearned Extended Warranty Premiums Changes in the Company’s service-type warranties were as follows (in millions):

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

Balance at beginning of period

 

$

85.4

 

 

$

76.1

 

Deferred revenue for new service warranties

 

 

31.9

 

 

 

27.7

 

Amortization of deferred revenue

 

 

(22.9

)

 

 

(19.8

)

Other adjustments

 

 

2.2

 

 

 

—

 

Foreign currency translation

 

 

(0.1

)

 

 

—

 

Balance at end of period

 

$

96.5

 

 

$

84.0

 

Changes in the Company’s assurance-type warranty liabilities were as follows (in millions):

 

 

Nine Months Ended
September 30,

 

 

 

2024

 

 

2023

 

Balance at beginning of period

 

$

64.2

 

 

$

58.8

 

Warranty provisions

 

 

52.7

 

 

 

41.6

 

Settlements made

 

 

(43.5

)

 

 

(37.3

)

Changes in liability for pre-existing warranties, net

 

 

(3.3

)

 

 

(1.4

)

Foreign currency translation

 

 

0.1

 

 

 

(0.1

)

Disposition of businesses

 

 

—

 

 

 

(0.5

)

Acquisition of businesses

 

 

0.6

 

 

 

4.9

 

Balance at end of period

 

$

70.8

 

 

$

66.0

 
Schedule of Classification of Service-type Warranties in Condensed Consolidated Balance Sheets

Classification of service-type warranties in the Condensed Consolidated Balance Sheets consisted of the following (in millions):

 

 

September 30,

 

 

December 31,

 

 

 

2024

 

 

2023

 

Other current liabilities

 

$

37.0

 

 

$

30.9

 

Other non-current liabilities

 

 

59.5

 

 

 

54.5

 

 

$

96.5

 

 

$

85.4