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Present and Prospective Accounting Pronouncements (Notes) | 9 Months Ended
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Sep. 30, 2018
Accounting Policies [Abstract] |
New Accounting Pronouncements, Policy [Policy Text Block] | NOTE 2 - NEW ACCOUNTING STANDARDS AND CERTAIN RECLASSIFICATIONS On January 1, 2018, we adopted ASU 2014-09, "Revenue from Contracts with Customers" (ASC 606), and all the related amendments to all contracts using the modified retrospective method. We recognized the cumulative effect of initially applying the new revenue standard as an adjustment to the opening balance of retained earnings. The comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. We expect the impact of the adoption of the new revenue standard to be immaterial to our net income on an ongoing basis. Recognition of a portion of our sales revenue has been delayed due to the timing of satisfying the performance obligations. The new revenue standard also provided additional clarity that resulted in reclassifications to or from net sales and selling, general and administrative expenses. On January 1, 2018, we adopted ASU 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” The guidance allows us to reclassify the stranded tax effects within Accumulated other comprehensive income to Retained earnings in each period in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act (the Tax Act) is recorded. The cumulative effect of the changes made to our Consolidated Balance Sheet as of January 1, 2018 for the adoption of ASU 2014-09 and ASU 2018-02 is as follows:
Dollar amounts in millions | Balance at December 31, 2017 |  | ASU 2014-09 |  | ASU 2018-02 |  | Balance at January 1, 2018
Receivables, net of allowance for doubtful accounts | $ | 142.5 |  |  | $ | (21.7 | ) |  | $ | — |  |  | $ | 120.8 |
Inventories | 259.1 |  |  | 15.8 |  |  | — |  |  | 274.9 |
Deferred tax asset | 2.5 |  |  | 1.5 |  |  | — |  |  | 4.0 |
Retained earnings | 1,280.1 |  |  | (4.4 | ) |  | 16.7 |  |  | 1,292.4 |
Accumulated comprehensive loss | (122.1 | ) |  | — |  |  | (16.7 | ) |  | (138.8 | )
In accordance with the new revenue standard requirements, the disclosure of the impact on our Consolidated Statement of Income and Consolidated Balance Sheet is as follows:
| Quarter Ended September 30, 2018 |  | Nine Months Ended September 30, 2018
Dollar amounts in millions | As reported |  | Balances without adoption of ASC 606 |  | Effect of Change Higher (Lower) |  | As reported |  | Balances without adoption of ASC 606 |  | Effect of Change Higher (Lower)
Consolidated Statement of Income |  |  |  |  |  |  |  |  |  |  |
Net sales | $ | 736.8 |  |  | $ | 725.1 |  |  | 11.7 |  |  | $ | 2,238.9 |  |  | $ | 2,245.9 |  |  | $ | (7.0 | )
Cost of sales | 524.0 |  |  | 517.6 |  |  | 6.4 |  |  | 1,588.7 |  |  | 1,592.6 |  |  | (3.9 | )
Selling, general and administrative expenses | 51.2 |  |  | 52.4 |  |  | (1.2 | ) |  | 151.9 |  |  | 155.0 |  |  | (3.1 | )
Provision for income taxes | 41.8 |  |  | 40.2 |  |  | 1.6 |  |  | 122.7 |  |  | 122.7 |  |  | — |
Net income | 124.0 |  |  | 119.1 |  |  | 4.9 |  |  | 377.6 |  |  | 377.6 |  |  | — |
Consolidated Balance Sheet | September 30, 2018 |  |  |  |  |  |
Receivables, net of allowance for doubtful accounts | $ | 143.5 |  |  | $ | 169.1 |  |  | $ | (25.6 | ) |  |  |  |  |  |
Inventory | 284.4 |  |  | 264.7 |  |  | 19.7 |  |  |  |  |  |  |
Income taxes payable | 11.6 |  |  | 10.1 |  |  | 1.5 |  |  |  |  |  |  |
Retained earnings | 1,613.9 |  |  | 1,618.3 |  |  | (4.4 | ) |  |  |  |  |  |
On January 1, 2018, we adopted ASU 2017-07, "Retirement Benefits - Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" (an amendment to ASC 715), to improve the presentation of net periodic pension and postretirement benefit costs. We retrospectively adopted the presentation of service cost separate from the other components of net periodic costs. The interest cost, expected return on assets, amortization of prior service costs, amortization of net actuarial losses and settlement costs have been reclassified from Cost of sales, Selling, general and administrative expenses and Other operating credits and charges to Non-operating income (expense). We elected to apply the practical expedient which allows us to reclassify amounts disclosed previously in the retirement benefits note as the basis for applying retrospective presentation for comparative periods as it is impracticable to determine the disaggregation of the cost components for amounts capitalized and amortized in those periods. On a prospective basis, the other components of net periodic benefit costs (excluding service cost) will not be included in amounts capitalized in inventory or property, plant, and equipment. In addition to the effects of ASU 2017-07, we have reclassified depreciation and amortization into the financial statement caption that reflects the category of the expense to be more comparable with our peers. The effect of the retrospective presentation change related to the net periodic cost of our defined benefit pension and reclassification of depreciation and amortization on our Consolidated Statement of Income for the quarter and nine months ended September 30, 2017 is as follows:
| Quarter Ended September 30, 2017
Dollar amounts in millions | As reported |  | ASU 2017-07 |  | Reclassi- fications |  | As adjusted
Consolidated Statement of Income |  |  |  |  |  |  |
Cost of sales (exclusive of depreciation and amortization shown separately below) | $ | 478.3 |  |  | $ | (1.0 | ) |  | $ | 30.4 |  |  | $ | 507.7 |
Depreciation and amortization | 31.1 |  |  | — |  |  | (31.1 | ) |  | — |
Selling, general and administrative expenses | 49.2 |  |  | (0.6 | ) |  | 0.7 |  |  | 49.3 |
Income from operations | 159.9 |  |  | 1.6 |  |  | — |  |  | 161.5 |
Total non-operating income (expense) | (2.6 | ) |  | (1.6 | ) |  | — |  |  | (4.2 | )
| Nine Months Ended September 30, 2017
Dollar amounts in millions | As reported |  | ASU 2017-07 |  | Reclassi- fications |  | As adjusted
Consolidated Statement of Income |  |  |  |  |  |  |
Cost of sales (exclusive of depreciation and amortization shown separately below) | $ | 1,416.3 |  |  | $ | (3.1 | ) |  | 89.1 |  |  | $ | 1,502.3 |
Depreciation and amortization | 91.3 |  |  | — |  |  | (91.3 | ) |  | — |
Selling, general and administrative expenses | 144.8 |  |  | (1.7 | ) |  | 2.2 |  |  | 145.3 |
Income from operations | 368.2 |  |  | 4.8 |  |  | — |  |  | 373.0 |
Total non-operating income (expense) | (10.0 | ) |  | (4.8 | ) |  | — |  |  | (14.8 | )
On January 1, 2018, we adopted ASU 2016-18, "Statement of Cash Flows (Topic 230): Restricted Cash." The adoption of this standard requires the inclusion of the change in amounts described as restricted cash or restricted cash equivalents to be included as part of our Consolidated Statement of Cash Flows. In accordance with disclosure requirements of this new accounting standard, the impact of adoption on our Consolidated Statement of Cash Flows for the quarter and nine months ended September 30, 2017 is as follows:
| Quarter Ended September 30, 2017
Dollar amounts in millions | As reported |  | ASU 2016-18 |  | As adjusted
Consolidated Statement of Cash Flows |  |  |  |  |
Net cash provided by (used in) investing activities | $ | (34.8 | ) |  | $ | — |  |  | $ | (34.8 | )
Effect of exchange rate on cash, cash equivalents and restricted cash | 1.8 |  |  | — |  |  | 1.8 |
Net increase in cash, cash equivalents and restricted cash | 108.7 |  |  | — |  |  | 108.7 |
Cash, cash equivalents and restricted cash at beginning of period | 740.0 |  |  | 13.2 |  |  | 753.2 |
Cash, cash equivalents and restricted cash at end of period | 848.7 |  |  | 13.2 |  |  | 861.9 |
| Nine Months Ended September 30, 2017
Dollar amounts in millions | As reported |  | ASU 2016-18 |  | As adjusted
Consolidated Statement of Cash Flows |  |  |  |  |
Net cash provided by (used in) investing activities | $ | (109.3 | ) |  | $ | 0.2 |  |  | $ | (109.1 | )
Effect of exchange rate on cash, cash equivalents and restricted cash | 1.9 |  |  | (0.2 | ) |  | 1.7 |
Net increase in cash, cash equivalents and restricted cash | 189.4 |  |  | — |  |  | 189.4 |
Cash, cash equivalents and restricted cash at beginning of period | 659.3 |  |  | 13.2 |  |  | 672.5 |
Cash, cash equivalents and restricted cash at end of period | 848.7 |  |  | 13.2 |  |  | 861.9 |
In March 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-02, "Leases (Topic 842)", which supersedes the lease accounting requirements in ASC Topic 840, "Leases". The new standard requires entities to recognize, separately from each other, an asset for its right to use (ROU) the underlying asset equal to the liability for its finance and operating lease obligations. Further, the entity is required to present separately the current and non-current portion of the ROU asset and corresponding lease liability. In July 2018, the FASB issued ASU 2018-10, "Codification Improvements to Topic 842, Leases", which clarifies certain aspects of the new lease standard. The amendments in this ASU address the rate implicit in the lease, impairment of the net investment in the lease, lessee reassessment of lease classification, lessor reassessment of lease term and purchase options, variable payments that depend on an index or rate and certain transition adjustments, among other things. In July 2018, the FASB issued ASU 2018-11, "Leases (Topic 842)" Targeted Improvements, which provides an additional (and optional) transition method whereby the new lease standard is applied at the adoption date and recognized as an adjustment to retained earnings. The amendments have the same effective date and transition requirements as the new lease standard. We will adopt the standard on January 1, 2019 using this optional transition method. The adoption of the new standard will result in a significant increase to our balance sheet for lease liabilities and right-of-use assets. The extent of the increase to assets and liabilities associated with these amounts remains to be determined pending our completion of the review of existing lease contracts. We are in the process of implementing a new system, collecting data and designing processes and controls to account for our leases in accordance with the new standard. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement: Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement", which amends the fair value measurement disclosure requirements of ASC 820. The amended guidance modifies the disclosure requirements of assets and liabilities measured at fair value by removing and adding certain disclosures for these measurements. The eliminated disclosures include the valuation processes for Level 3 fair value measurements. Additional disclosures include the range and weighted average used to develop significant unobservable inputs for Level 3 fair value measurements. The new standard is effective for fiscal years beginning after December 15, 2019, including interim periods therein. Early adoption is permitted. The adoption of this guidance will modify our disclosures but will not have a material effect on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans", which amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The amended guidance modifies the disclosure requirements for employers that sponsor defined benefit pension or other post-retirement plans by removing and adding certain disclosures for these plans. The eliminated disclosures include (a) the amounts in accumulated Other Comprehensive Income (OCI) expected to be recognized in net periodic benefit costs over the next fiscal year, and (b) the effects of a one percentage point change in assumed health care cost trend rates on the net periodic benefit costs and the benefit obligation for post-retirement health care benefits. Additional disclosures include descriptions of significant gains and losses affecting the benefit obligation for the period. The amended guidance is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The adoption of this guidance will modify our disclosures but will not have a material effect on our consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That is a Service Contract", which provides additional guidance on the accounting for costs of implementation activities performed in a cloud computing arrangement that is a service contract. The amendments require an entity in such arrangements to account for implementation costs in the same manner as internal-use software as outlined in ASC 350. The amended guidance is effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. We are currently evaluating the impact, that the adoption of this guidance will have on our financial statements and related disclosures.

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