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New Accounting Pronouncements | 9 Months Ended
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Sep. 30, 2018
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] |
New Accounting Pronouncements | New Accounting Pronouncements New Accounting Standards Adopted In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, Revenue from Contracts with Customers ("ASU 2014-09"). ASU 2014-09 outlines a single, comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance issued by the FASB, including industry specific guidance. ASU 2014-09 provides accounting guidance for all revenue arising from contracts with customers and affects all entities that enter into contracts with customers to provide goods and services. On January 1, 2018, the Company adopted ASU 2014-09 and all the related amendments ("ASC 606") to all uncompleted contracts using the modified retrospective method. The Company recognized the cumulative effect of initially applying ASC 606 as an adjustment to the opening balance of retained earnings totaling $6.5 million. The comparative information has not been adjusted and continues to be reported under the accounting standards in effect for those periods. The Company expects the impact of the adoption of ASC 606 to be immaterial to its reported revenue on an ongoing basis. A majority of the Company's revenues continue to be recognized when products are shipped from its manufacturing facilities or delivered to the customer, depending on shipping terms. For certain highly customized product contracts in the Carlisle Interconnect Technologies segment, revenue was previously recognized as billed, at the point products were shipped and title and associated risk and rewards of ownership passed to the customer. In accordance with ASC 606, the Company now recognizes revenue over time, for those highly customized products, using the input method as products are manufactured. A summary of the effects of adopting ASC 606 on the Condensed Consolidated Financial Statements follows:
|  | Three Months Ended September 30, 2018 |  |  |  |
(in millions) |  | As Reported |  | Balances Without Adoption of ASC 606 |  | Effect of Change Higher/(Lower)
Condensed Consolidated Statement of Income |  |  |  |  |  |
Revenues |  | $ | 1,181.4 |  | $ | 1,175.1 |  | $ | 6.3
Cost of goods sold |  | 867.1 |  | 862.3 |  | 4.8
Operating income |  | 140.0 |  | 138.5 |  | 1.5
Provision for income taxes |  | 25.0 |  | 24.7 |  | 0.3
Income from continuing operations |  | 96.9 |  | 95.7 |  | 1.2
Net income |  | 99.7 |  | 98.5 |  | 1.2
|  | Nine Months Ended September 30, 2018 |  |  |  |
(in millions) |  | As Reported |  | Balances Without Adoption of ASC 606 |  | Effect of Change Higher/(Lower)
Condensed Consolidated Statement of Income |  |  |  |  |  |
Revenues |  | $ | 3,402.2 |  | $ | 3,375.9 |  | $ | 26.3
Cost of goods sold |  | 2,506.3 |  | 2,487.6 |  | 18.7
Operating income |  | 394.4 |  | 386.8 |  | 7.6
Provision for income taxes |  | 76.9 |  | 75.1 |  | 1.8
Income from continuing operations |  | 269.5 |  | 263.7 |  | 5.8
Net income |  | 523.0 |  | 517.2 |  | 5.8
|  | September 30, 2018 |  |  |  |
(in millions) |  | As Reported |  | Balances Without Adoption of ASC 606 |  | Effect of Change Higher/(Lower)
Condensed Consolidated Balance Sheet |  |  |  |  |  |
Receivables |  | $ | 850.5 |  | $ | 802.0 |  | $ | 48.5
Inventories, net |  | 489.1 |  | 522.5 |  | (33.4)
Other current assets |  | 56.9 |  | 56.0 |  | 0.9
Accrued expenses |  | 280.3 |  | 278.5 |  | 1.8
Other long-term liabilities |  | 269.0 |  | 267.0 |  | 2.0
Retained earnings |  | 3,287.1 |  | 3,280.6 |  | 6.5
In March 2017, the FASB issued ASU 2017-07, Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost ("ASU 2017-07"), which requires employers to include only the service cost component of net periodic pension cost and net periodic postretirement benefit cost in operating income, if such measure is presented. The other components of net benefit cost, including amortization of prior service cost/credit, and settlement and curtailment effects, are to be included in non-operating income. ASU 2017-07 also stipulates that only the service cost component of net benefit cost is eligible for capitalization into inventory or other tangible assets. On January 1, 2018, the Company adopted ASU 2017-07 using a retrospective approach for the presentation in the Condensed Consolidated Statement of Income to include only the service cost component of net periodic pension costs and net periodic postretirement benefit cost in operating income. The Company elected to use, as a practical expedient, the amounts disclosed in its defined benefit plan note for the prior comparative period as the estimation basis for applying the retrospective presentation requirements. As a result of adopting ASU 2017-07, net periodic benefit income for the non-service cost components of $(0.6) million and $(1.8) million was reclassified from other operating (income) expense, net to other non-operating (income) expense, net for the three and nine months ended September 30, 2017. In February 2018, the FASB issued ASU 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("ASU 2018-02") which allows entities to reclassify from accumulated other comprehensive income to retained earnings for stranded tax effects related to the change in federal tax rate for all items accounted for in other comprehensive income. Entities can also elect to reclassify other stranded tax effects that relate to the Tax Cuts and Jobs Act, but do not directly relate to the change in the federal tax rate, including state taxes and changing from a worldwide tax system to a territorial system. Tax effects that are stranded in other comprehensive income for other reasons may not be reclassified. Effective January 1, 2018, the Company early adopted ASU 2018-02 using a modified retrospective approach for the presentation in the Condensed Consolidated Balance Sheets to reclassify $6.5 million related to the change in federal tax rate from accumulated other comprehensive loss to retained earnings. New Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) ("ASU 2016-02") which requires lessees to recognize a lease liability for the obligation to make lease payments, measured at the present value on a discounted basis, and a right-of-use ("ROU") asset for the right to use the underlying asset for the duration of the lease term, measured as the lease liability amount adjusted for lease prepayments, lease incentives received, and initial direct costs. The lease liability and ROU asset are recognized in the balance sheet at the commencement of the lease. For income statement purposes, the FASB retained a dual model, requiring leases to be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. Classification will be based on criteria that are largely similar to those applied in current lease accounting. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842): Targeted Improvements, which amended the new leasing standard to give entities another option for transition. This transition option allows entities to not apply the new standard in the comparative periods they present in their financial statements in the year of adoption. ASU 2016-02, and its amendments, are effective for the Company beginning January 1, 2019, and requires the use of a modified retrospective approach for leases that exist at, or are entered into after the beginning of the year of adoption under the new transition guidance. Early application of the ASU is permitted; however, the Company plans to adopt on January 1, 2019 and expects to elect this new transition method. The Company continues its evaluation of adopting the standard, and currently expects the standard to have an impact of approximately $50.0 million to $60.0 million on its assets and liabilities for the addition of ROU assets and lease liabilities. The Company does not expect the standard to have a material impact on its results of operations or liquidity.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 250 -URI http://asc.fasb.org/topic&trid=2122394 + Details
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