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Summary of Significant Accounting Policies | 3 Months Ended
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Mar. 31, 2020
Summary of Significant Accounting Policies |
Summary of Significant Accounting Standards and Policies | 2. Summary of Significant Accounting Standards and Policies ​ For detailed information about the Company’s significant accounting standards, please refer to Note 2 of the Notes to the Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Except for the matters discussed below, there have been no other material changes to the Company’s significant accounting policies for the three months ended March 31, 2020. ​ Recently Adopted Accounting Standards ​ ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350) ​ In January 2017, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This Update simplifies the subsequent measurement of goodwill as the Update eliminates Step 2 from the goodwill impairment test. Under the Update, an entity will continue to perform its annual, or interim, goodwill impairment test to determine if the fair value of a reporting unit is greater than its carrying amount. An entity should then recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value using the results of its Step 1 assessment, with the loss recognized not to exceed the total amount of goodwill allocated to that reporting unit. This Update is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2017-04 at the beginning of its 2020 fiscal year and the Update did not have a material impact on the Company’s Condensed Consolidated Financial Statements upon adoption. ​ ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) ​ In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires the Company to measure and recognize expected credit losses for financial assets held and not accounted for at fair value through net income. This Update is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company adopted ASU 2016-13 at the beginning of its 2020 fiscal year and the Update did not have a material impact on the Company’s Condensed Consolidated Financial Statements upon adoption. ​ Net Sales Presentation Change ​ During the three months ended December 31, 2019, the Company changed its presentation of shipping and handling costs. These costs were previously included as a reduction to Net sales in the Condensed Consolidated Statements of Income. The Company is now presenting these expenses within Cost of sales in the Condensed Consolidated Statements of Income. The change in presentation was applied retrospectively to all periods presented in the Condensed Consolidated Statements of Income. The change in presentation had no effect on Gross profit, Operating income, Net income, or Earnings per share. The Condensed Consolidated Balance Sheets, Condensed Consolidated Statements of Comprehensive (Loss) Income, Condensed Consolidated Statements of Equity and Redeemable Equity, and Condensed Consolidated Statements of Cash Flows are not affected by this change in presentation. ​ The effect of the adjustment is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended March 31, 2019 | ​
(in millions) | ​ | As Reported | ​ | As Adjusted | ​
Consolidated Statements of Income: | ​ | ​ | ​ | ​ | ​ | ​ | ​
Net sales before shipping and handling costs | ​ | $ | 1,536 | ​ | $ | — | ​
Less: shipping and handling costs | ​ | ​ | 116 | ​ | ​ | — | ​
Net sales | ​ | ​ | 1,420 | ​ | ​ | 1,536 | ​
Cost of sales | ​ | ​ | 1,104 | ​ | ​ | 1,220 | ​
Gross profit | ​ | $ | 316 | ​ | $ | 316 | ​
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended March 31, 2019 | ​
(in millions) | ​ | As Reported | ​ | As Adjusted | ​
Net sales to unaffiliated customers: | ​ | ​ | ​ | ​ | ​ | ​ | ​
North America | ​ | $ | 860 | ​ | $ | 951 | ​
South America | ​ | ​ | 218 | ​ | ​ | 228 | ​
Asia-Pacific | ​ | ​ | 194 | ​ | ​ | 203 | ​
EMEA | ​ | ​ | 148 | ​ | ​ | 154 | ​
Total | ​ | $ | 1,420 | ​ | $ | 1,536 | ​
​

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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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