Quarterly report pursuant to Section 13 or 15(d)

Significant Accounting Policies (Tables)

v3.10.0.1
Significant Accounting Policies (Tables)
9 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
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 September 30, 2018 was as follows:

 

 

 

September 30, 2018

 

 

 

As reported

 

 

Impact due to ASC 606

 

 

Without adoption

 

 

 

(in millions)

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

Receivables, net of allowance for doubtful accounts

 

$

99.4

 

 

$

5.8

 

 

$

105.2

 

Inventories

 

 

347.5

 

 

 

(1.1

)

 

 

346.4

 

Total assets

 

 

2,734.8

 

 

 

4.7

 

 

 

2,739.5

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

Royalty overrides

 

 

275.9

 

 

 

2.8

 

 

 

278.7

 

Total liabilities

 

 

3,495.9

 

 

 

2.8

 

 

 

3,498.7

 

Shareholders’ deficit:

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated deficit

 

 

(575.2

)

 

 

1.9

 

 

 

(573.3

)

Total shareholders’ deficit

 

 

(761.1

)

 

 

1.9

 

 

 

(759.2

)

Total liabilities and shareholders’ deficit

 

 

2,734.8

 

 

 

4.7

 

 

 

2,739.5

 

 

As a result of applying Topic 606, the impact to the Company’s condensed consolidated statement of income for the three months ended September 30, 2018 was as follows:

 

 

 

Three Months Ended

 

 

 

September 30, 2018

 

 

 

As reported

 

 

Impact due to ASC 606

 

 

Without adoption

 

 

 

(in millions)

 

Net sales

 

$

1,242.8

 

 

$

(5.6

)

 

$

1,237.2

 

Cost of sales

 

 

218.1

 

 

 

0.2

 

 

 

218.3

 

Gross profit

 

 

1,024.7

 

 

 

(5.8

)

 

 

1,018.9

 

Royalty overrides

 

 

344.0

 

 

 

0.3

 

 

 

344.3

 

Selling, general, and administrative expenses

 

 

499.4

 

 

 

(6.3

)

 

 

493.1

 

Other operating income

 

 

(6.0

)

 

 

 

 

 

(6.0

)

Operating income

 

 

187.3

 

 

 

0.2

 

 

 

187.5

 

Interest expense, net

 

 

39.9

 

 

 

 

 

 

39.9

 

Other expense, net

 

 

30.9

 

 

 

 

 

 

30.9

 

Income before income taxes

 

 

116.5

 

 

 

0.2

 

 

 

116.7

 

Income taxes

 

 

45.3

 

 

 

(0.1

)

 

 

45.2

 

Net income

 

$

71.2

 

 

$

0.3

 

 

$

71.5

 

 

As a result of applying Topic 606, the impact to the Company’s condensed consolidated statement of income for the nine months ended September 30, 2018 was as follows:

 

 

 

Nine Months Ended

 

 

 

September 30, 2018

 

 

 

As reported

 

 

Impact due to ASC 606

 

 

Without adoption

 

 

 

(in millions)

 

Net sales

 

$

3,705.2

 

 

$

(18.7

)

 

$

3,686.5

 

Cost of sales

 

 

693.4

 

 

 

(0.2

)

 

 

693.2

 

Gross profit

 

 

3,011.8

 

 

 

(18.5

)

 

 

2,993.3

 

Royalty overrides

 

 

1,031.1

 

 

 

(0.7

)

 

 

1,030.4

 

Selling, general, and administrative expenses

 

 

1,469.7

 

 

 

(17.4

)

 

 

1,452.3

 

Other operating income

 

 

(23.9

)

 

 

 

 

 

(23.9

)

Operating income

 

 

534.9

 

 

 

(0.4

)

 

 

534.5

 

Interest expense, net

 

 

124.1

 

 

 

 

 

 

124.1

 

Other expense, net

 

 

60.0

 

 

 

 

 

 

60.0

 

Income before income taxes

 

 

350.8

 

 

 

(0.4

)

 

 

350.4

 

Income taxes

 

 

103.1

 

 

 

(0.1

)

 

 

103.0

 

Net income

 

$

247.7

 

 

$

(0.3

)

 

$

247.4

 

 

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:

 

 

 

September 30,

2018

 

 

December 31,

2017

 

 

 

(in millions)

 

Cash and cash equivalents

 

$

1,110.5

 

 

$

1,278.8

 

Restricted cash included in Prepaid expenses and

    other current assets

 

 

3.2

 

 

 

4.0

 

Restricted cash included in Other assets

 

 

12.6

 

 

 

12.7

 

Total cash, cash equivalents, and restricted cash shown

    in the statement of cash flows

 

$

1,126.3

 

 

$

1,295.5