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Impact Of Recently Enacted Accounting Standards | 9 Months Ended
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Sep. 30, 2018
New Accounting Pronouncements And Changes In Accounting Principles [Abstract] |
Impact of Recently Enacted Accounting Standards | Note 2 – New Accounting Pronouncements Adopted in 2018 In May 2017, the Financial Accounting Standards Board (FASB) issued a new accounting standards update that provides guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. The Company adopted the new guidance effective January 1, 2018. The impact of adoption on the Company's consolidated financial statements is depe ndent on future changes to stock-based compen sation awards. In August 2016, the FASB issued a new accounting standards update, which seeks to reduce the existing diversity in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. The Company adopted this new update effective January 1, 2018. The adoption of this guidance had no impact on the consolidated financial statements of the Company. In May 2014, the FASB issued a new standard (commonly referred to as ASC 606), which change d the way the Company recognizes r evenue and significantly expanded the disclosure requirements for revenue arrangements. The Company adopted ASC 606 with a date of the initial application of January 1, 2018. As a result, the Company has changed its account ing policy for revenue recognition as detailed below. The Company applied ASC 606 using the full retrospective transition method. The Company elected the ASC 606 practical expedient and does not disclose the information about remaining performance obligat ions that have original expected durations of one year or less. Amounts prior to January 1, 2018 that have been adjusted in accordance with ASC 606 as described herein are noted “as adjusted”. Previously, the Company recognized revenue from the sale of ma nufactured products built to customer specifications and excess inventory when t itle and risk of ownership passed, the price to the buyer wa s fixed or d eterminable and recoverability wa s reasonably assured, which was generally when the goods were shipped. Under ASC 606, the Company recognizes revenue as the customer takes control of the products. Under the majority of the Company’s manufacturing contracts with customers, the customer controls all of the work-in-progress as products are being built. Revenues under these contracts are recognized progressively based on the cost-to-cost method. Accordingly, the Company will recognize revenue under these contracts earlier than under the previous accounting rules. Under other manufacturing contracts, the customer does not take control of the product until it is completed. Under these contracts, the Company continues to recognize re venue upon transfer of control of product to the customer. Revenue from design, development and engineering services also continues to b e recognized over time as the services are performed. The Company’s performance obligations generally have an expected duration of one year or less. The Company applies the practical expedients and does not disclose information about remaining performance obligations that have original expected durations of one year or less or any significant financing components in the contracts. The Company recognizes the incremental costs, if any, of obtaining contracts as an expense when incurred since the amortization period of the assets that the Company otherwise would have recognized is one year less. The following table s summarize the impacts of ASC 606 adoption on the Company’s 2017 consolidated financial statements.
Condensed Consolidated Balance Sheet
December 31, 2017
|  |  |  |  | Impact of changes in accounting policies
|  |  |  |  | As previously |  |  |  |  |
(in thousands) |  | reported |  | Adjustments |  | As adjusted
| Contract assets | $ | — |  | $ | 146,496 |  | $ | 146,496
| Inventories |  | 397,181 |  |  | (128,264) |  |  | 268,917
| Prepaid expenses and other assets |  | 42,263 |  |  | (6,245) |  |  | 36,018
| Total assets | $ | 2,097,317 |  | $ | 11,987 |  | $ | 2,109,304
| Income taxes payable | $ | 11,662 |  | $ | 1 |  | $ | 11,663
| Deferred income taxes |  | 7,027 |  |  | 1,667 |  |  | 8,694
| Total liabilities |  | 768,498 |  |  | 1,668 |  |  | 770,166
| Retained earnings |  | 697,862 |  |  | 10,319 |  |  | 708,181
| Total shareholders’ equity |  | 1,328,819 |  |  | 10,319 |  |  | 1,339,138
| Total liabilities and shareholders’ equity | $ | 2,097,317 |  | $ | 11,987 |  | $ | 2,109,304
Condensed Consolidated Statement of Income
Three Months Ended September 30, 2017
|  | Impact of changes in accounting policies
|  | As previously |  |  |  |  |
(in thousands, except per share data) |  | reported |  | Adjustments |  | As adjusted
Sales | $ | 603,550 |  | $ | 7,379 |  | $ | 610,929
Cost of sales | $ | 545,395 |  | $ | 7,291 |  | $ | 552,686
Income tax expense | $ | 1,919 |  | $ | (231) |  | $ | 1,688
Net income | $ | 17,512 |  | $ | 319 |  | $ | 17,831
Earnings per share: |  |  |  |  |  |  |  |
| Basic | $ | 0.35 |  | $ | 0.01 |  | $ | 0.36
| Diluted | $ | 0.35 |  | $ | — |  | $ | 0.35
Weighted-average number of shares outstanding: |  |  |  |  |  |  |  |
| Basic |  | 49,865 |  |  | 49,865 |  |  | 49,865
| Diluted |  | 50,330 |  |  | 50,330 |  |  | 50,330
Condensed Consolidated Statement of Income
Nine Months Ended September 30, 2017
|  | Impact of changes in accounting policies
|  | As previously |  |  |  |  |
(in thousands, except per share data) |  | reported |  | Adjustments |  | As adjusted
Sales | $ | 1,786,955 |  | $ | 1,488 |  | $ | 1,788,443
Cost of sales | $ | 1,621,153 |  | $ | 2,031 |  | $ | 1,623,184
Income tax expense | $ | 6,539 |  | $ | (628) |  | $ | 5,911
Net income | $ | 44,375 |  | $ | 85 |  | $ | 44,460
Earnings per share: |  |  |  |  |  |  |  |
| Basic | $ | 0.89 |  | $ | — |  | $ | 0.89
| Diluted | $ | 0.88 |  | $ | — |  | $ | 0.88
Weighted-average number of shares outstanding: |  |  |  |  |  |  |  |
| Basic |  | 49,716 |  |  | 49,716 |  |  | 49,716
| Diluted |  | 50,292 |  |  | 50,292 |  |  | 50,292
Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 2017
|  |  |  |  | Impact of changes in accounting policies
|  |  |  |  | As previously |  |  |  |  |
(in thousands) |  | reported |  | Adjustments |  | As adjusted
| Net income | $ | 44,375 |  | $ | 85 |  | $ | 44,460
| Adjustments to reconcile net income to net cash provided |  |  |  |  |  |  |  |
|  | by operating activities: |  |  |  |  |  |  |  |
|  |  | Depreciation |  | 27,452 |  |  | — |  |  | 27,452
|  |  | Amortization |  | 9,139 |  |  | — |  |  | 9,139
|  |  | Provision for doubtful accounts |  | 1,697 |  |  | — |  |  | 1,697
|  |  | Deferred income taxes |  | 1,505 |  |  | (924) |  |  | 581
|  |  | Gain on the sale of property, plant and equipment |  | (194) |  |  | — |  |  | (194)
|  |  | Asset impairments |  | 42 |  |  | — |  |  | 42
|  |  | Stock-based compensation expense |  | 6,819 |  |  | — |  |  | 6,819
| Changes in operating assets and liabilities: |  |  |  |  |  |  |  |
|  |  | Accounts receivable |  | 29,229 |  |  | — |  |  | 29,229
|  |  | Contract assets |  | — |  |  | (5,373) |  |  | (5,373)
|  |  | Inventories |  | (38,778) |  |  | 2,031 |  |  | (36,747)
|  |  | Prepaid expenses and other assets |  | (12,066) |  |  | 3,885 |  |  | (8,181)
|  |  | Accounts payable |  | 3,922 |  |  | — |  |  | 3,922
|  |  | Accrued liabilities |  | 15,637 |  |  | — |  |  | 15,637
|  |  | Income taxes |  | 1,111 |  |  | 296 |  |  | 1,407
|  |  |  | Net cash provided by operations |  | 89,890 |  |  | — |  |  | 89,890
|  |  |  | Net cash used in investing activities |  | (37,372) |  |  | — |  |  | (37,372)
|  |  |  | Net cash used in financing activities |  | (6,163) |  |  | — |  |  | (6,163)
| Effect of exchange rate changes |  | 2,358 |  |  | — |  |  | 2,358
| Net increase in cash and cash equivalents |  | 48,713 |  |  | — |  |  | 48,713
| Cash and cash equivalents at beginning of year |  | 681,433 |  |  | — |  |  | 681,433
| Cash and cash equivalents at end of period | $ | 730,146 |  | $ | — |  | $ | 730,146
Not Yet Adopted In February 2018, the FASB i ssued optional new accounting guidance that allows the reclassification of certain tax effects from accumulated other comprehensive income to retained earnings. This guidance is effective January 1, 2019, with early adoption permitted. The Company is evaluating whether it will adopt this new guidance along with any impacts on the Company’s financial position, results of operations and cash flows, none of which are expected to be material. In June 2016, the FASB issue d a new accounting standards update, which replaces the current incurred loss impairment methodology with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform c redit loss estimates. This update is effective for annual reporting periods beginning after December 15, 2019. The Company does not expect the implementation of this update to have a material impact on its consolidated financial position, results of operat ions or cash flows; and will adopt this update effective January 1, 2020. In February 2016, the FASB issued a new accounting standards update changing the accounting for leases, including a requirement to record all leases on the consolidated balance shee ts as assets (right-of-use) and liabilities (for reasonably certain lease payments). This update is effective for fiscal years beginning after December 15, 2018. The Company will adopt this update effective January 1, 2019, which will impact its consolidat ed balance sheet. Originally, entities were required to adopt this update using a modified retrospective approach, which required prior periods to be presented under this new standard with various practical expedients allowed. However, in July 2018, the FA SB issued additional guidance which allows entities the option of recognizing the cumulative effect of applying the new standard as an adjustment to the opening balance of retained earnings in the year of adoption (January 1, 2019). The Company is currentl y evaluating the impact this standard will have on its consolidated financial statements and which transition approach will be used upon adoption. The Company has determined that other recently issued accounting standards will either have no material impact on its consolidated financial pos ition, results of operations or cash flows, or will not apply to its operat ions.

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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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