| Summary of Impact on Balance Sheet and Statement of Income due to Adoption of Topic 606 |
Revenue Recognition
As a result of applying Topic 606, the impact to the Company’s condensed consolidated balance sheet as of June 30, 2018 was as follows:
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June 30, 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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Receivables, net of allowance for doubtful accounts
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$
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100.0
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$
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5.1
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$
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105.1
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Inventories
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315.1
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(0.9
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)
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314.2
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Total assets
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2,421.5
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4.2
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2,425.7
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Liabilities:
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Royalty overrides
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255.7
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2.4
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258.1
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Total liabilities
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3,200.9
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2.4
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3,203.3
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Shareholders’ deficit:
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Accumulated deficit
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(646.4
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)
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1.8
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(644.6
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)
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Total shareholders’ deficit
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(779.4
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)
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1.8
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(777.6
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)
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Total liabilities and shareholders’ deficit
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2,421.5
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4.2
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2,425.7
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As a result of applying Topic 606, the impact to the Company’s condensed consolidated statement of income for the three months ended June 30, 2018 was as follows:
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Three Months Ended
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June 30, 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
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$
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1,285.5
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$
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(5.1
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)
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$
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1,280.4
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Cost of sales
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235.4
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0.1
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235.5
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Gross profit
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1,050.1
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(5.2
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)
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1,044.9
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Royalty overrides
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349.8
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0.2
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350.0
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Selling, general, and administrative expenses
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510.2
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(5.5
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)
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504.7
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Other operating income
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(1.7
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)
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—
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(1.7
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)
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Operating income
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191.8
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0.1
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191.9
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Interest expense, net
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44.3
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—
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44.3
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Other expense, net
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4.7
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—
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4.7
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Income before income taxes
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142.8
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0.1
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|
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142.9
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Income taxes
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48.4
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0.1
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|
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48.5
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Net income
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$
|
94.4
|
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|
$
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—
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$
|
94.4
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As a result of applying Topic 606, the impact to the Company’s condensed consolidated statement of income for the six months ended June 30, 2018 was as follows:
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Six Months Ended
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June 30, 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
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$
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2,462.4
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$
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(13.1
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)
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|
$
|
2,449.3
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Cost of sales
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475.3
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(0.4
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)
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474.9
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Gross profit
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1,987.1
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(12.7
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)
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1,974.4
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Royalty overrides
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687.1
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(1.0
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)
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686.1
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Selling, general, and administrative expenses
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970.3
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(11.1
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)
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959.2
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Other operating income
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(17.9
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)
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—
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(17.9
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)
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Operating income
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347.6
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(0.6
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)
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347.0
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Interest expense, net
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84.2
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—
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84.2
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Other expense, net
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29.1
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—
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29.1
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Income before income taxes
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234.3
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(0.6
|
)
|
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233.7
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Income taxes
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57.8
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|
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—
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57.8
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Net income
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$
|
176.5
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$
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(0.6
|
)
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$
|
175.9
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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 condensed consolidated balance sheets that sum to the total of the same such amounts shown in the Company’s condensed consolidated statements of cash flows:
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June 30,
2018
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|
December 31,
2017
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(in millions)
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Cash and cash equivalents
|
|
$
|
839.4
|
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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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3.5
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|
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4.0
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Restricted cash included in Other assets
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12.2
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12.7
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|
Total cash, cash equivalents, and restricted cash shown
in the statement of cash flows
|
|
$
|
855.1
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|
$
|
1,295.5
|
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|