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Recent Accounting Pronouncements | 3 Months Ended
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Mar. 31, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting for Hedging Activities In August 2017, the Financial Accounting Standards Board (the "FASB") issued ASU 2017-12, Derivatives and Hedging (Topic 815), intending to improve the transparency of information included in the financial statements by aligning cash flow and fair value hedge accounting with its risk management activities. The ASU eliminates the requirement to separately measure and report hedge ineffectiveness for cash flow hedges and net investment hedges, and generally requires the entire change in the fair value of a hedging instrument to be presented in the same income statement line as the hedged item. The ASU also simplifies certain documentation and assessment requirements, and will incorporate new disclosure requirements and amendments to existing disclosures. This ASU is effective for the Company beginning the first quarter of 2019 and allows for early adoption. The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements. Measurement of Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU introduces a new forward-looking approach, based on expected losses, to estimate credit losses on certain types of financial instruments, including trade receivables. The estimate of expected credit losses will require considerations of historical information, current information and reasonable and supportable forecasts. This ASU also expands the disclosure requirements to enable users of financial statements to understand the assumptions, models and methods for estimating expected credit losses. This ASU is effective for the Company beginning in the first quarter of 2020 and allows for early adoption beginning in the first quarter of 2019. The Company is currently evaluating the impact the ASU will have on its Consolidated Financial Statements. Accounting for Leases In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by long-term leases and to disclose additional quantitative and qualitative information about leasing arrangements. This ASU is effective for the Company beginning in the first quarter of 2019 and allows for early adoption. Although the Company is currently evaluating the provisions of the ASU to determine how it will be affected, the primary impact to the Company of the new ASU will be to record assets and liabilities for current operating leases, which are principally related to the Company's real estate portfolio. Revenue Recognition On January 1, 2018, the Company adopted Topic 606 and utilized the full retrospective method. For additional details, see Note 1 (Description of Business and Summary of Significant Accounting Policies). For the three months ended March 31, 2017, the adoption of Topic 606 impacted the Company's results as follows:
|  | March 31, 2017
(in millions) (except per share amounts) |  | As Reported |  | New Revenue Standard Adjustment |  | As Adjusted
Net sales |  | $ | 3,324.7 |  |  | $ | (68.7 | ) |  | $ | 3,256.0 |
Gross profit |  | 552.6 |  |  | 0.9 |  |  | 553.5 |
Gross profit margin |  | 16.6 | % |  | 40 bps |  |  | 17.0 | %
Income from operations |  | 169.8 |  |  | 0.9 |  |  | 170.7 |
Income tax expense |  | (16.0 | ) |  | (0.3 | ) |  | (16.3 | )
Net income |  | $ | 57.6 |  |  | $ | 0.6 |  |  | $ | 58.2 |
Net income per common share |  |  |  |  |  |
Basic |  | $ | 0.36 |  |  | $ | — |  |  | $ | 0.36 |
Diluted |  | $ | 0.35 |  |  | $ | 0.01 |  |  | $ | 0.36 |
The adoption of Topic 606 impacted the Company's Consolidated Balance Sheet as of December 31, 2017 as follows:
|  | December 31, 2017
(in millions) |  | As Reported |  | New Revenue Standard Adjustment |  | As Adjusted(1)
Accounts receivable |  | $ | 2,320.5 |  |  | $ | 8.8 |  |  | $ | 2,329.3 |
Merchandise inventory |  | 449.5 |  |  | (38.0 | ) |  | 411.5 |
Miscellaneous receivables |  | 336.5 |  |  | 6.5 |  |  | 343.0 |
Prepaid expenses and other |  | 127.4 |  |  | 40.9 |  |  | 168.3 |
Total current assets |  | 3,378.1 |  |  | 18.2 |  |  | 3,396.3 |
Other assets |  | 40.8 |  |  | (8.1 | ) |  | 32.7 |
Total assets |  | 6,956.6 |  |  | 10.1 |  |  | 6,966.7 |
Contract liabilities |  | 194.0 |  |  | (35.2 | ) |  | 158.8 |
Income tax payable |  | 15.1 |  |  | 1.1 |  |  | 16.2 |
Other accrued expenses |  | 180.2 |  |  | 41.6 |  |  | 221.8 |
Total current liabilities |  | 2,514.6 |  |  | 7.5 |  |  | 2,522.1 |
Total liabilities |  | 5,973.7 |  |  | 7.5 |  |  | 5,981.1 |
Total stockholders’ equity |  | $ | 982.9 |  |  | $ | 2.7 |  |  | $ | 985.6 |
(1) | Amounts may not cross-foot due to rounding.

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- Definition The entire disclosure of changes in accounting principles, including adoption of new accounting pronouncements, that describes the new methods, amount and effects on financial statement line items. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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