Revenue Recognition (Tables)

6 Months Ended

Jun. 30, 2018

Revenue Recognition Opening Balance Sheet

The following table presents the impact on our opening Consolidated Balance Sheet as of January 1, 2018 of adopting ASC 606 (in millions of dollars):



	December 31, 2017 As Reported		Cumulative-effect Adjustments¹			January 1, 2018 As Adjusted
Contract assets	$	—	$	55.6		$	55.6
Inventories	207.9		(40.7		)	167.2
Total current assets	656.6		14.9			671.5
Deferred tax assets, net	72.0		(3.3		)	68.7
Total assets	$	1,385.2	$	11.6		$	1,396.8
Other accrued liabilities	40.5		1.5			42.0
Total current liabilities	173.1		1.5			174.6
Total liabilities	$	638.9	$	1.5		$	640.4
Retained earnings	85.5		10.1			95.6
Total stockholders’ equity	746.3		10.1			756.4
Total liabilities and stockholders’ equity	$	1,385.2	$	11.6		$	1,396.8

____________________


¹	Included in the cumulative-effect adjustment was a charge of $5.0 million as a result of decrementing higher cost prior LIFO layers.

Consolidated Balance Sheet

The following table presents the impact of adopting ASC 606 on our Consolidated Balance Sheet for the period presented (in millions of dollars):



	June 30, 2018 As Reported		Adjustments			June 30, 2018 without Adoption of ASC 606
Contract assets	$	52.6	$	(52.6	)	$	—
Inventories	177.2		32.7			209.9
Total current assets	704.8		(19.9		)	684.9
Deferred tax assets, net	51.5		3.3			54.8
Total assets	$	1,423.8	$	(16.6	)	$	1,407.2
Other accrued liabilities	29.9		(3.1		)	26.8
Total current liabilities	194.1		(3.1		)	191.0
Total liabilities	$	662.8	$	(3.1	)	$	659.7
Retained earnings	123.1		(13.5		)	109.6
Total stockholders’ equity	761.0		(13.5		)	747.5
Total liabilities and stockholders’ equity	$	1,423.8	$	(16.6	)	$	1,407.2

Consolidated Income Statement

The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Income for the period presented (in millions of dollars, except per share amounts):



	Quarter Ended June 30, 2018									Six Months Ended June 30, 2018
	As Reported			Adjustments			Without Adoption of ASC 606			As Reported			Adjustments			Without Adoption of ASC 606
Net sales	$	415.4		$	4.9		$	420.3		$	803.4		$	3.2		$	806.6
Cost of products sold, excluding depreciation and amortization and other items¹	343.4			3.4			346.8			660.1			7.6			667.7
Operating income	34.7			1.5			36.2			71.8			(4.4		)	67.4
Income before income taxes	28.5			1.5			30.0			60.1			(4.4		)	55.7
Income tax provision	(7.8		)	(0.4		)	(8.2		)	(13.7		)	1.0			(12.7		)
Net income	$	20.7		$	1.1		$	21.8		$	46.4		$	(3.4	)	$	43.0

Net income per common share:
Basic	$	1.24		$	0.07		$	1.31		$	2.78		$	(0.20	)	$	2.58
Diluted	$	1.22		$	0.06		$	1.28		$	2.74		$	(0.20	)	$	2.54

____________________


¹	Included in the "as reported" amounts was the benefit of having decremented higher cost prior LIFO layers as part of the cumulative-effect adjustment of adopting ASC 606, as discussed in the opening balance sheet table above.

The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Comprehensive Income for the period presented (in millions of dollars):



	Quarter Ended June 30, 2018						Six Months Ended June 30, 2018
	As Reported		Adjustments		Without Adoption of ASC 606		As Reported		Adjustments			Without Adoption of ASC 606
Net income	$	20.7	$	1.1	$	21.8	$	46.4	$	(3.4	)	$	43.0
Comprehensive income	$	27.1	$	1.1	$	28.2	$	44.5	$	(3.4	)	$	41.1

Consolidated Statement of Cash Flows

The following table presents the impact of adopting ASC 606 on our Statements of Consolidated Cash Flows for the period presented (in millions of dollars):



	Six Months Ended June 30, 2018 As Reported			Adjustments			Six Months Ended June 30, 2018 without Adoption of ASC 606
Net income	$	46.4		$	(3.4	)	$	43.0
Changes in operating assets and liabilities:
Contract assets	3.0			(3.0		)	—
Inventories	(10.0		)	8.0			(2.0		)
Accrued liabilities	(10.8		)	(1.6		)	(12.4		)
Net cash provided by operating activities	$	84.0		$	—		$	84.0