Basis of Presentation (Tables)
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12 Months Ended |
Dec. 31, 2018 |
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| Accounting Policies [Abstract] |
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| Net Property, Plant and Equipment |
As of December 31, 2018 and 2017, the Company’s net property, plant and, equipment consisted of the following:
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December 31,
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|
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2018
|
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2017
|
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|
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(in millions)
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Property, plant, and equipment, at cost:
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|
|
|
|
|
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Land and buildings
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$
|
51.1
|
|
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$
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51.0
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|
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Furniture and fixtures
|
|
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26.1
|
|
|
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26.7
|
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Equipment
|
|
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849.4
|
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803.5
|
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Building and leasehold improvements
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|
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198.5
|
|
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199.0
|
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Total property, plant, and equipment, at cost
|
|
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1,125.1
|
|
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1,080.2
|
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Less: accumulated depreciation and amortization
|
|
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(765.1
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)
|
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(702.7
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)
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Property, plant, and equipment, at cost, net of accumulated depreciation and amortization
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$
|
360.0
|
|
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$
|
377.5
|
|
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| Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash for Balance Sheets and Cash Flows |
The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company’s consolidated balance sheets that sum to the total of the same such amounts shown in the Company’s consolidated statements of cash flows:
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December 31,
|
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|
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2018
|
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2017
|
|
|
|
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(in millions)
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|
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Cash and cash equivalents
|
|
$
|
1,198.9
|
|
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$
|
1,278.8
|
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Restricted cash included in Prepaid expenses and other current assets
|
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3.3
|
|
|
|
4.0
|
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Restricted cash included in Other assets
|
|
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12.8
|
|
|
|
12.7
|
|
|
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows
|
|
$
|
1,215.0
|
|
|
$
|
1,295.5
|
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| Computation of Basic and Diluted Earnings Per Share |
The following are the common share amounts used to compute the basic and diluted earnings per share for each period:
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Year Ended December 31,
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2018
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2017
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2016
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|
|
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(in millions)
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Weighted-average shares used in basic computations
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140.2
|
|
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158.5
|
|
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166.1
|
|
|
Dilutive effect of exercise of equity grants outstanding
|
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6.3
|
|
|
|
7.2
|
|
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6.1
|
|
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Dilutive effect of 2019 Convertible Notes
|
|
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3.0
|
|
|
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—
|
|
|
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—
|
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Weighted-average shares used in diluted computations
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|
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149.5
|
|
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165.7
|
|
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172.2
|
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| Summary of Impact on Balance Sheet and Statement of Income due to Adoption of Topic 606 |
Revenue Recognition
As a result of applying ASC 606, the impact to the Company’s consolidated balance sheet as of December 31, 2018 was as follows:
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December 31, 2018
|
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As reported
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Impact due to ASC 606
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Without adoption
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(in millions)
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Assets:
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|
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Receivables, net of allowance for doubtful accounts
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$
|
70.5
|
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$
|
5.4
|
|
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$
|
75.9
|
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Inventories
|
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381.8
|
|
|
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(1.0
|
)
|
|
|
380.8
|
|
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Total assets
|
|
|
2,789.8
|
|
|
|
4.4
|
|
|
|
2,794.2
|
|
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Liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
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Royalty overrides
|
|
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281.4
|
|
|
|
2.5
|
|
|
|
283.9
|
|
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Total liabilities
|
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3,513.2
|
|
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2.5
|
|
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|
3,515.7
|
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Shareholders’ deficit:
|
|
|
|
|
|
|
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|
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Accumulated deficit
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|
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(526.3
|
)
|
|
|
1.9
|
|
|
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(524.4
|
)
|
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Total shareholders’ deficit
|
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(723.4
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)
|
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1.9
|
|
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(721.5
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)
|
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Total liabilities and shareholders’ deficit
|
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|
2,789.8
|
|
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|
4.4
|
|
|
|
2,794.2
|
|
As a result of applying ASC 606, the impact to the Company’s consolidated statement of income for the year ended December 31, 2018 was as follows:
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Year Ended December 31,
|
|
|
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2018
|
|
|
|
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As reported
|
|
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Impact due to ASC 606
|
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Without adoption
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(in millions)
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Net sales
|
|
$
|
4,891.8
|
|
|
$
|
(25.1
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)
|
|
$
|
4,866.7
|
|
|
Cost of sales
|
|
|
919.3
|
|
|
|
(0.4
|
)
|
|
|
918.9
|
|
|
Gross profit
|
|
|
3,972.5
|
|
|
|
(24.7
|
)
|
|
|
3,947.8
|
|
|
Royalty overrides
|
|
|
1,364.0
|
|
|
|
(1.0
|
)
|
|
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1,363.0
|
|
|
Selling, general, and administrative expenses
|
|
|
1,955.2
|
|
|
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(23.2
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)
|
|
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1,932.0
|
|
|
Other operating income
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|
|
(29.8
|
)
|
|
|
—
|
|
|
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(29.8
|
)
|
|
Operating income
|
|
|
683.1
|
|
|
|
(0.5
|
)
|
|
|
682.6
|
|
|
Interest expense
|
|
|
181.0
|
|
|
|
—
|
|
|
|
181.0
|
|
|
Interest income
|
|
|
19.4
|
|
|
|
—
|
|
|
|
19.4
|
|
|
Other expense, net
|
|
|
57.3
|
|
|
|
—
|
|
|
|
57.3
|
|
|
Income before income taxes
|
|
|
464.2
|
|
|
|
(0.5
|
)
|
|
|
463.7
|
|
|
Income taxes
|
|
|
167.6
|
|
|
|
(0.2
|
)
|
|
|
167.4
|
|
|
Net income
|
|
$
|
296.6
|
|
|
$
|
(0.3
|
)
|
|
$
|
296.3
|
|
|