Revenues from Contracts (Tables)

12 Months Ended

Dec. 31, 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 and our group of other operating 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 year ended December 31, 2018:



	Year Ended December 31, 2018
Reportable Segments and All Other	HVAC		Detection and Measurement		Engineered Solutions		All Other		Total

Major product lines
Cooling	$	281.7	$	—	$	—	$	—	$	281.7
Boilers, comfort heating, and ventilation	300.4		—		—		—		300.4
Underground locators and inspection and rehabilitation equipment	—		159.1		—		—		159.1
Signal monitoring, obstruction lighting, and bus fare collection systems	—		161.8		—		—		161.8
Power transformers	—		—		373.8		—		373.8
Process cooling equipment, services, and heat exchangers	—		—		163.2		49.5		212.7
South African projects	—		—		—		49.1		49.1
	$	582.1	$	320.9	$	537.0	$	98.6	$	1,538.6

Timing of Revenue Recognition
Revenues recognized at a point in time	$	582.1	$	307.3	$	61.5	$	5.1	$	956.0
Revenues recognized over time	—		13.6		475.5		93.5		582.6
	$	582.1	$	320.9	$	537.0	$	98.6	$	1,538.6

Contract with Customer, Asset and Liability

Our contract balances consisted of the following as of December 31, 2018 and January 1, 2018:



Contract Balances	December 31, 2018			January 1, 2018 ⁽¹⁾			Change
Contract Accounts Receivable ⁽²⁾	$	263.9		$	222.9		$	41.0
Contract Assets	91.2			70.7			20.5
Contract Liabilities - current	(79.5		)	(86.9		)	7.4
Contract Liabilities - non-current ⁽³⁾	(2.1		)	—			(2.1		)
Net contract balance	$	273.5		$	206.7		$	66.8

_____________________

⁽¹⁾ See Note 3 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 consolidated balance sheet.

⁽³⁾ Included in “Other long-term liabilities” within the accompanying consolidated balance sheet.

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Summarized below is the impact of the initial application of ASC 606 on our 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	)

Summarized below is a comparison of our consolidated statement of operations and comprehensive income for the year ended December 31, 2018 and consolidated balance sheet as of December 31, 2018 as prepared under the provisions of ASC 606 to a presentation of these financial statements under the prior revenue recognition guidance. As previously discussed, the most significant impact of adopting ASC 606 relates to our power transformer business where, under ASC 606, revenues for power transformers are now being recorded over time versus at a point in time under the prior revenue recognition guidance. The initial transition to ASC 606 resulted in a reduction of inventory and deferred revenue (previously presented within “Accrued expenses”) and an increase to contract assets, as indicated in Note 3. Contract assets and contract liabilities are now separately presented within our consolidated balance sheet (previously included in “Accounts receivable, net” and “Accrued expenses”, respectively). Additionally, and as noted below, the difference in revenue and earnings under prior revenue recognition guidance during the year ended December 31, 2018 is due primarily to the timing of power transformer deliveries.



	Year ended December 31, 2018
Consolidated statement of operations and comprehensive income	Reported			Effect of ASC 606 Adoption			Under Prior Revenue Recognition Guidance
Revenues	$	1,538.6		$	(14.2	)	$	1,524.4
Cost of products sold	1,127.9			(11.6		)	1,116.3
Selling, general and administrative	292.6			(0.6		)	292.0
Operating income	107.6			(2.0		)	105.6
Income from continuing operations before income taxes	79.6			(2.0		)	77.6
Income tax provision	(1.4		)	0.5			(0.9		)
Income from continuing operations	78.2			(1.5		)	76.7
Net income	$	81.2		$	(1.5	)	$	79.7

Comprehensive income	$	76.0		$	(0.5	)	$	75.5

Basic income per share of common stock:
Income from continuing operations	$	1.82		$	(0.04	)	$	1.78
Net income per share	$	1.89		$	(0.04	)	$	1.85

Diluted income per share of common stock:
Income from continuing operations	$	1.75		$	(0.03	)	$	1.72
Net income per share	$	1.82		$	(0.03	)	$	1.79



	As of December 31, 2018
Consolidated balance sheet	Reported			Effect of ASC 606 Adoption			Under Prior Revenue Recognition Guidance
Accounts receivable, net	$	269.1		$	33.2		$	302.3
Contract assets	91.2			(91.2		)	—
Inventories, net	128.8			52.1			180.9
Other current assets	40.5			4.1			44.6
Total current assets	598.4			(1.8		)	596.6
Deferred income taxes	24.4			1.4			25.8
TOTAL ASSETS	$	2,057.5		$	(0.4	)	$	2,057.1
Contract liabilities	$	79.5		$	(79.5	)	$	—
Accrued expenses	183.7			82.0			265.7
Total current liabilities	470.2			2.5			472.7
Other long-term liabilities	817.3			1.6			818.9
Total long-term liabilities	1,172.4			1.6			1,174.0

Retained deficit	(650.1		)	(5.5		)	(655.6		)
Accumulated other comprehensive income	244.9			1.0			245.9
Total equity	414.9			(4.5		)	410.4
TOTAL LIABILITIES AND EQUITY	$	2,057.5		$	(0.4	)	$	2,057.1