REVENUES FROM CONTRACTS (Tables)

9 Months Ended

Sep. 29, 2018

Revenue from Contract with Customer [Abstract]

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