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Change in Accounting Principle
 6 Months Ended
Jun. 30, 2025
Accounting Standards Update and Change in Accounting Principle [Abstract]  
Change in Accounting Principle

14. Change in Accounting Principle

Effective January 1, 2025, we changed our inventory valuation methodology for finished products, work-in-process, and raw material inventories from LIFO to WAC. All prior periods presented have been adjusted to apply the new method retrospectively.

Certain financial statement line items in our Statements of Consolidated Income for the quarter and six months ended June 30, 2024, our Statements of Consolidated Cash Flows for the six months ended June 30, 2024, and our Consolidated Balance Sheets and Consolidated Stockholders’ Equity as of June 30, 2024 and December 31, 2024, were adjusted as follows (in millions of dollars, except per share amounts):

 

 

As Previously Reported

 

Effect of WAC Change

 

As Adjusted

 

Statements of Consolidated Income (Loss) for the quarter ended June 30, 2024

 

 

 

 

 

 

 

Cost of products sold, excluding depreciation and amortization

 

$

690.5

 

$

(20.7

)

$

669.8

 

Operating income

 

 

15.5

 

 

20.7

 

 

36.2

 

Income tax provision

 

 

(0.8

)

 

(4.9

)

 

(5.7

)

Net income

 

 

3.1

 

 

15.8

 

 

18.9

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

 

$

0.19

 

$

0.99

 

$

1.18

 

Diluted

 

$

0.19

 

$

0.96

 

$

1.15

 

 

 

 

 

 

 

 

 

Statements of Consolidated Income (Loss) for the six months ended June 30, 2024

 

 

 

 

 

 

 

Cost of products sold, excluding depreciation and amortization

 

$

1,333.4

 

$

(12.3

)

$

1,321.1

 

Operating income

 

 

48.2

 

 

12.3

 

 

60.5

 

Income tax provision

 

 

(8.3

)

 

(2.9

)

 

(11.2

)

Net income

 

 

27.7

 

 

9.4

 

 

37.1

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

 

$

1.72

 

$

0.59

 

$

2.31

 

Diluted

 

$

1.69

 

$

0.58

 

$

2.27

 

 

 

 

 

 

 

 

Statements of Consolidated Cash Flows for the six months ended June 30, 2024

 

 

 

 

 

 

 

Net income

 

$

27.7

 

$

9.4

 

$

37.1

 

Deferred income taxes

 

 

6.4

 

 

2.9

 

 

9.3

 

LIFO valuation inventory expense

 

 

4.5

 

 

(4.5

)

 

—

 

Inventories

 

 

22.6

 

 

(7.8

)

 

14.8

 

Net cash provided by operating activities

 

 

89.6

 

 

—

 

 

89.6

 

 

 

 

 

 

 

 

Consolidated Balance Sheet as of June 30, 2024

 

 

 

 

 

 

 

Receivables, other

 

$

13.4

 

$

0.1

 

$

13.5

 

Inventories

 

 

446.9

 

 

85.8

 

 

532.7

 

Deferred tax assets, net

 

 

6.0

 

 

(2.8

)

 

3.2

 

Deferred tax liabilities

 

 

20.6

 

 

17.5

 

 

38.1

 

Retained earnings

 

 

12.5

 

 

65.6

 

 

78.1

 

 

 

 

 

 

 

 

Consolidated Balance Sheet as of December 31, 2024

 

 

 

 

 

 

 

Receivables, other

 

$

22.0

 

$

0.2

 

$

22.2

 

Inventories

 

 

503.9

 

 

98.0

 

 

601.9

 

Deferred tax assets, net

 

 

7.2

 

 

(3.2

)

 

4.0

 

Other accrued liabilities

 

 

79.4

 

 

(0.1

)

 

79.3

 

Deferred tax liabilities

 

 

24.1

 

 

20.0

 

 

44.1

 

Retained earnings

 

 

6.2

 

 

75.1

 

 

81.3

 

 

The following table compares the amounts that would have been reported under LIFO with amounts reported under WAC in the current period Interim Consolidated Financial Statements (in millions of dollars, except per share amounts):

 

As Computed (using LIFO)

 

Effect of Change

 

As Reported (using WAC)

 

Statements of Consolidated Income (Loss) for the quarter ended June 30, 2025

 

 

 

 

 

 

 

Cost of products sold, excluding depreciation and amortization

 

$

745.5

 

$

(22.7

)

$

722.8

 

Operating income

 

 

15.3

 

 

22.7

 

 

38.0

 

Income tax provision

 

 

(2.2

)

 

(4.5

)

 

(6.7

)

Net income

 

 

5.0

 

 

18.2

 

 

23.2

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

 

$

0.31

 

$

1.13

 

$

1.44

 

Diluted

 

$

0.30

 

$

1.11

 

$

1.41

 

 

 

 

 

 

 

 

 

Statements of Consolidated Income (Loss) for the six months ended June 30, 2025

 

 

 

 

 

 

 

Cost of products sold, excluding depreciation and amortization

 

$

1,452.1

 

$

(55.9

)

$

1,396.2

 

Operating income

 

 

23.5

 

 

55.9

 

 

79.4

 

Income tax provision

 

 

(1.5

)

 

(12.4

)

 

(13.9

)

Net income

 

 

1.3

 

 

43.5

 

 

44.8

 

 

 

 

 

 

 

 

 

Net income per common share:

 

 

 

 

 

 

 

Basic

 

$

0.08

 

$

2.69

 

$

2.77

 

Diluted

 

$

0.08

 

$

2.64

 

$

2.72

 

 

 

 

 

 

 

 

Statements of Consolidated Cash Flows for the six months ended June 30, 2025

 

 

 

 

 

 

 

Net income

 

$

1.3

 

$

43.5

 

$

44.8

 

Deferred income taxes

 

 

(0.1

)

 

11.3

 

 

11.2

 

Inventories

 

 

62.2

 

 

(55.9

)

 

6.3

 

Accrued liabilities

 

 

(27.1

)

 

1.1

 

 

(26.0

)

Net cash provided by operating activities

 

 

72.9

 

 

—

 

 

72.9

 

 

 

 

 

 

 

 

 

Consolidated Balance Sheet as of June 30, 2025

 

 

 

 

 

 

 

Receivables, other

 

$

38.9

 

$

0.2

 

$

39.1

 

Inventories

 

 

441.7

 

 

153.9

 

 

595.6

 

Deferred tax assets, net

 

 

7.4

 

 

(4.8

)

 

2.6

 

Other accrued liabilities

 

 

54.1

 

 

1.0

 

 

55.1

 

Deferred tax liabilities

 

 

26.2

 

 

29.7

 

 

55.9

 

Retained (deficit) earnings

 

 

(18.2

)

 

118.6

 

 

100.4