Immaterial Error Correction

9 Months Ended

Sep. 30, 2022

Accounting Changes and Error Corrections [Abstract]

During the first quarter of 2022, the Company identified errors in its previously issued financial statements related to an overstatement of work-in-process inventory that mainly accumulated over the periods from 2018 through 2021 thereby understating "Cost of sales" in those periods and an overstatement of "Net sales" and "Cost of sales" as well as impacts to certain consolidated balance sheet financial statement line items as a result of over-time revenue recognition calculation errors at one of the Company's sites which impacted the second, third and fourth quarters of 2021.

The Company assessed the materiality of these misstatements both quantitatively and qualitatively and determined the correction of these errors to be immaterial to the prior period consolidated financial statements taken as a whole. To reflect the correction of the above errors, the Company is revising the previously issued consolidated financial statements for the three and nine months ended September 30, 2021 in this Form 10-Q. The Company is also disclosing the impact of the revisions on the previously filed audited Consolidated Balance Sheet as of December 31, 2021 and the opening balance sheet equity impact for December 31, 2020. As a result, the Company has corrected the misstatements as disclosed in the following tables for all impacted financial statement line items in prior periods.

Balance Sheet


	December 31, 2021
(in millions)	As Previously Reported		Adjustment		As Revised
Trade receivables and contract assets, net	$	144.1	$	(2.4)	$	141.7
Inventories	303.0		(4.3)		298.7
Prepaid and refundable income taxes	19.5		1.0		20.5
Total current assets	641.7		(5.7)		636.0
Deferred income tax assets	16.0		0.2		16.2
Total assets	911.3		(5.5)		905.8
Accounts payable	83.5		(1.3)		82.2
Other current liabilities	42.9		(0.7)		42.2
Total current liabilities	225.3		(2.0)		223.3
Total liabilities	256.5		(2.0)		254.5

Retained earnings	552.8		(3.5)		549.3
Shareholders' equity	654.3		(3.5)		650.8
Total equity	654.8		(3.5)		651.3
Total liabilities and equity	911.3		(5.5)		905.8

Statement of Operations


	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
(in millions)	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised

Net sales	$	267.0	$	(0.1)	$	266.9	$	829.4	$	(0.5)	$	828.9
Cost of sales	204.7		0.3		205.0		631.6		1.1		632.7
Gross profit	62.3		(0.4)		61.9		197.8		(1.6)		196.2
Income from operations	6.7		(0.4)		6.3		27.7		(1.6)		26.1
Income from operations before income taxes	6.5		(0.4)		6.1		27.4		(1.6)		25.8
Income tax provision (benefit)	(2.8)		(0.1)		(2.9)		0.4		(0.4)		—
Net income	9.3		(0.3)		9.0		27.0		(1.2)		25.8
Net income attributable to controlling interest	9.3		(0.3)		9.0		27.0		(1.2)		25.8
Per share data:
Earnings per common share - Basic	0.41		(0.01)		0.40		1.19		(0.05)		1.14
Earnings per common share - Diluted	0.41		(0.02)		0.39		1.18		(0.05)		1.13

Statements of Comprehensive Income


	Three Months Ended September 30, 2021						Nine Months Ended September 30, 2021
(in millions)	As Previously Reported		Adjustment		As Revised		As Previously Reported		Adjustment		As Revised

Net income	$	9.3	$	(0.3)	$	9.0	$	27.0	$	(1.2)	$	25.8


Comprehensive (loss) income	4.8		(0.3)		4.5		25.8		(1.2)		24.6
Comprehensive (loss) income attributable to controlling interest	4.9		(0.3)		4.6		25.9		(1.2)		24.7

Statement of Cash Flow


	Nine Months Ended September 30, 2021
(in millions)	As Previously Reported		Adjustment		As Revised

Net income	$	27.0	$	(1.2)	$	25.8

Receivables and other contract assets	(31.3)		1.1		(30.2)
Inventories	(33.4)		1.1		(32.3)

Other accrued liabilities	10.3		(0.6)		9.7
Income taxes payable/prepaid	(5.7)		(0.4)		(6.1)

Statement of Equity


(in millions)	As Previously Reported		Adjustment		As Revised





Balance, December 31, 2020

Retained Earnings	$	545.2	$	(1.5)	$	543.7
Total Equity	643.0		(1.5)		641.5

Balance, March 31, 2021

Retained Earnings	551.4		(1.7)		549.7
Total Equity	647.0		(1.7)		645.3

Balance, June 30, 2021

Retained Earnings	557.9		(2.4)		555.5
Total Equity	659.3		(2.4)		656.9

Balance, September 30, 2021

Retained Earnings	564.7		(2.7)		562.0
Total Equity	663.1		(2.7)		660.4

Balance, December 31, 2021

Retained Earnings	552.8		(3.5)		549.3
Total Equity	654.8		(3.5)		651.3