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REVENUES FROM CONTRACTS (Tables) | 9 Months Ended
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Sep. 29, 2018
Revenue from Contract with Customer [Abstract] |
Disaggregation of Revenue | We disaggregate revenue from contracts with customers by major product line and based on the timing of recognition for each of our reportable segments, as we believe such disaggregation best depicts how the nature, amount, timing, and uncertainty of our revenues and cash flows are effected by economic factors, with such disaggregation presented below for the three and nine months ended September 29, 2018:
|  | Three Months Ended September 29, 2018
Reportable Segments |  | HVAC |  | Detection and Measurement |  | Engineered Solutions |  | Total
Major product lines |  |  |  |  |  |  |  |
Cooling |  | $ | 65.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 65.1 |
Boilers, comfort heating, and ventilation |  | 66.9 |  |  | — |  |  | — |  |  | 66.9 |
Underground locators and inspection and rehabilitation equipment |  | — |  |  | 49.8 |  |  | — |  |  | 49.8 |
Signal monitoring, obstruction lighting, and bus fare collection systems |  | — |  |  | 34.5 |  |  | — |  |  | 34.5 |
Power transformers |  | — |  |  | — |  |  | 89.4 |  |  | 89.4 |
Process cooling equipment and services, and heat exchangers |  | — |  |  | — |  |  | 47.0 |  |  | 47.0 |
South African projects |  | — |  |  | — |  |  | 9.8 |  |  | 9.8 |
|  | $ | 132.0 |  |  | $ | 84.3 |  |  | $ | 146.2 |  |  | $ | 362.5 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |
Revenues recognized at a point in time |  | $ | 132.0 |  |  | $ | 79.5 |  |  | $ | 17.1 |  |  | $ | 228.6 |
Revenues recognized over time |  | — |  |  | 4.8 |  |  | 129.1 |  |  | 133.9 |
|  | $ | 132.0 |  |  | $ | 84.3 |  |  | $ | 146.2 |  |  | $ | 362.5 |
|  | Nine Months Ended September 29, 2018
Reportable Segments |  | HVAC |  | Detection and Measurement |  | Engineered Solutions |  | Total
Major product lines |  |  |  |  |  |  |  |
Cooling |  | $ | 201.6 |  |  | $ | — |  |  | $ | — |  |  | $ | 201.6 |
Boilers, comfort heating, and ventilation |  | 197.8 |  |  | — |  |  | — |  |  | 197.8 |
Underground locators and inspection and rehabilitation equipment |  | — |  |  | 110.7 |  |  | — |  |  | 110.7 |
Signal monitoring, obstruction lighting, and bus fare collection systems |  | — |  |  | 113.8 |  |  | — |  |  | 113.8 |
Power transformers |  | — |  |  | — |  |  | 274.9 |  |  | 274.9 |
Process cooling equipment and services, and heat exchangers |  | — |  |  | — |  |  | 156.0 |  |  | 156.0 |
South African projects |  | — |  |  | — |  |  | 38.8 |  |  | 38.8 |
|  | $ | 399.4 |  |  | $ | 224.5 |  |  | $ | 469.7 |  |  | $ | 1,093.6 |
Timing of Revenue Recognition |  |  |  |  |  |  |  |
Revenues recognized at a point in time |  | $ | 399.4 |  |  | $ | 215.6 |  |  | $ | 48.1 |  |  | $ | 663.1 |
Revenues recognized over time |  | — |  |  | 8.9 |  |  | 421.6 |  |  | 430.5 |
|  | $ | 399.4 |  |  | $ | 224.5 |  |  | $ | 469.7 |  |  | $ | 1,093.6 |
Contract with Customer, Asset and Liability | Our contract balances consisted of the following as of September 29, 2018 and January 1, 2018:
Contract Balances | September 29, 2018 |  | January 1, 2018 (1) |  | Change
Contract Accounts Receivable (2) | $ | 249.0 |  |  | $ | 222.9 |  |  | $ | 26.1 |
Contract Assets | 90.2 |  |  | 70.7 |  |  | 19.5 |
Contract Liabilities - current | (75.3 | ) |  | (86.9 | ) |  | 11.6 |
Contract Liabilities - non-current (3) | (2.0 | ) |  | — |  |  | (2.0 | )
Net contract balance | $ | 261.9 |  |  | $ | 206.7 |  |  | $ | 55.2 |
_____________________ (1) See Note 2 for the impact of the change at January 1, 2018 as a result of the adoption of ASC 606. (2) Included in “Accounts receivable, net” within the accompanying condensed consolidated balance sheet. (3) Included in “Other long-term liabilities” within the accompanying condensed consolidated balance sheet.
Cumulative Effect on Balance Sheet | Summarized below is the impact of the initial application of ASC 606 on our January 1, 2018 condensed consolidated balance sheet:
| December 31, 2017 |  | Impact of Adoption of ASC 606 |  | January 1, 2018
Assets |  |  |  |  |
Accounts receivable, net | $ | 267.5 |  |  | $ | (36.0 | ) |  | $ | 231.5 |
Inventories, net | 143.0 |  |  | (40.2 | ) |  | 102.8 |
Contract assets | — |  |  | 70.7 |  |  | 70.7 |
Other current assets | 97.7 |  |  | (3.6 | ) |  | 94.1 |
Deferred income taxes | 50.9 |  |  | (0.9 | ) |  | 50.0 |
Liabilities |  |  |  |  |
Contract liabilities | — |  |  | 86.9 |  |  | 86.9 |
Accrued expenses | 292.6 |  |  | (99.0 | ) |  | 193.6 |
Other long-term liabilities | 885.8 |  |  | (1.6 | ) |  | 884.2 |
Equity |  |  |  |  |
Accumulated other comprehensive income | 250.1 |  |  | (0.3 | ) |  | 249.8 |
Retained deficit | $ | (742.3 | ) |  | $ | 4.0 |  |  | $ | (738.3 | )
Additionally, and as noted below, the difference in revenue and earnings under prior revenue recognition guidance during the three and nine months ended September 29, 2018 is due primarily to the timing of power transformer deliveries.
| Three months ended September 29, 2018
Condensed consolidated statement of operations and comprehensive income | Reported |  | Effect of ASC 606 Adoption |  | Under Prior Revenue Recognition Guidance
Revenues | $ | 362.5 |  |  | $ | (0.6 | ) |  | $ | 361.9 |
Cost of products sold | 274.8 |  |  | 0.6 |  |  | 275.4 |
Selling, general and administrative | 71.6 |  |  | 0.1 |  |  | 71.7 |
Operating income | 13.4 |  |  | (1.3 | ) |  | 12.1 |
Income from continuing operations before income taxes | 8.5 |  |  | (1.3 | ) |  | 7.2 |
Income tax provision | (1.7 | ) |  | 0.4 |  |  | (1.3 | )
Income from continuing operations | 6.8 |  |  | (0.9 | ) |  | 5.9 |
Net income | $ | 6.6 |  |  | $ | (0.9 | ) |  | $ | 5.7 |
Comprehensive income | $ | 5.6 |  |  | $ | (0.3 | ) |  | $ | 5.3 |
Basic income per share of common stock: |  |  |  |  |
Income from continuing operations | $ | 0.16 |  |  | $ | (0.02 | ) |  | $ | 0.14 |
Net income per share | $ | 0.15 |  |  | $ | (0.02 | ) |  | $ | 0.13 |
Diluted income per share of common stock: |  |  |  |  |
Income from continuing operations | $ | 0.15 |  |  | $ | (0.02 | ) |  | $ | 0.13 |
Net income per share | $ | 0.15 |  |  | $ | (0.02 | ) |  | $ | 0.13 |
| Nine months ended September 29, 2018
Condensed consolidated statement of operations and comprehensive income | Reported |  | Effect of ASC 606 Adoption |  | Under Prior Revenue Recognition Guidance
Revenues | $ | 1,093.6 |  |  | $ | (20.2 | ) |  | $ | 1,073.4 |
Cost of products sold | 818.1 |  |  | (15.9 | ) |  | 802.2 |
Selling, general and administrative | 212.8 |  |  | (0.5 | ) |  | 212.3 |
Operating income | 55.4 |  |  | (3.8 | ) |  | 51.6 |
Income from continuing operations before income taxes | 45.1 |  |  | (3.8 | ) |  | 41.3 |
Income tax provision | (6.2 | ) |  | 1.0 |  |  | (5.2 | )
Income from continuing operations | 38.9 |  |  | (2.8 | ) |  | 36.1 |
Net income | $ | 42.0 |  |  | $ | (2.8 | ) |  | $ | 39.2 |
Comprehensive income | $ | 42.4 |  |  | $ | (1.5 | ) |  | $ | 40.9 |
Basic income per share of common stock: |  |  |  |  |
Income from continuing operations | $ | 0.91 |  |  | $ | (0.07 | ) |  | $ | 0.84 |
Net income per share | $ | 0.98 |  |  | $ | (0.07 | ) |  | $ | 0.91 |
Diluted income per share of common stock: |  |  |  |  |
Income from continuing operations | $ | 0.87 |  |  | $ | (0.06 | ) |  | $ | 0.81 |
Net income per share | $ | 0.94 |  |  | $ | (0.06 | ) |  | $ | 0.88 |
| As of September 29, 2018
Condensed consolidated balance sheet | Reported |  | Effect of ASC 606 Adoption |  | Under Prior Revenue Recognition Guidance
Accounts receivable, net | $ | 256.2 |  |  | $ | 34.2 |  |  | $ | 290.4 |
Contract assets | 90.2 |  |  | (90.2 | ) |  | — |
Inventories, net | 143.5 |  |  | 56.6 |  |  | 200.1 |
Other current assets | 71.3 |  |  | 4.1 |  |  | 75.4 |
Total current assets | 623.1 |  |  | 4.7 |  |  | 627.8 |
Deferred income taxes | 32.9 |  |  | 1.9 |  |  | 34.8 |
TOTAL ASSETS | $ | 2,106.4 |  |  | $ | 6.6 |  |  | $ | 2,113.0 |
Contract liabilities | $ | 75.3 |  |  | $ | (75.3 | ) |  | $ | — |
Accrued expenses | 186.4 |  |  | 85.9 |  |  | 272.3 |
Total current liabilities | 527.0 |  |  | 10.6 |  |  | 537.6 |
Other long-term liabilities | 835.7 |  |  | 1.5 |  |  | 837.2 |
Total long-term liabilities | 1,209.7 |  |  | 1.5 |  |  | 1,211.2 |
Retained deficit | (701.3 | ) |  | (6.8 | ) |  | (708.1 | )
Accumulated other comprehensive income | 250.5 |  |  | 1.3 |  |  | 251.8 |
Total equity | 369.7 |  |  | (5.5 | ) |  | 364.2 |
TOTAL LIABILITIES AND EQUITY | $ | 2,106.4 |  |  | $ | 6.6 |  |  | $ | 2,113.0 |

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