Table of Contents Consolidated Balance Sheets In August 2016, the FASB issued Accounting Standards Board Update No. 2016-15:  Statement of Cash Flows (Topic 230)  (“ASU 2016-15”) as part of the FASB simplification initiative. ASU 2016-15 provides guidance on treatment in the statement of cash flows for eight specific cash flow topics, with the objective of reducing existing diversity in practice. Of the eight cash flow topics addressed in the new guidance, the topics which could have an impact on the Company include debt prepayment or debt extinguishment costs, accounts receivable factoring, proceeds from the settlement of insurance claims and distributions received from equity method investees. The guidance is effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted ASU 2016-15 as of January 1, 2018 and adoption of this standard had an immaterial impact on the Company’s financial statements. In November 2016, the FASB issued Accounting Standards Board Update No. 2016-18:  Statement of Cash Flows (Topic 230) Restricted Cash  (“ASU 2016-18”) as part of the FASB simplification initiative. ASU 2016-18 requires that amounts generally described as restricted cash and restricted cash equivalents should be included with cash and cash equivalents when reconciling the beginning-of-period and end-of period total amounts shown on the statement of cash flows. ASU 2016-18 also requires supplemental disclosure regarding the nature of restrictions on a company’s cash and cash equivalents, such as the purpose and terms of the restriction, expected duration of the restriction and the amount of cash subject to restriction. The guidance was effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted ASU 2016-18 as of January 1, 2018. As a result of adopting ASU 2016-18, the beginning and ending cash balances with the Consolidated Statements of Cash Flows now include restricted cash as of December 31, 2018 and 2017. The impact of the adoption of this standard on the Company’s Consolidated Statements of Cash Flows is disclosed above in the cash and cash equivalents section of this footnote. In January 2017, the FASB issued Accounting Standards Board Update No. 2017-01:  Clarifying the Definition of a Business (Topic 805)  (“ASU 2017- 01”). ASU 2017-01 clarifies the definition of a business with the objective of adding guidance to assist entities with evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The definition of a business affects many areas of accounting including acquisitions, disposals, goodwill, and consolidation. The guidance was effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted ASU 2017-01 as of January 1, 2018 and the adoption of this standard had no impact on the Company’s financial statements. In March 2017, the FASB issued Accounting Standards Board Update No. 2017-07:  Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost  (“ASU 2017-07”). ASU 2017-07 requires that an employer report the service cost component of its net periodic pension and postretirement benefit costs (“net benefit cost”) in the same line item or items as other compensation costs arising from services rendered by employees during the period. Additionally, ASU 2017-07 only allows the service cost component of net benefit cost to be eligible for capitalization into inventory. All other components of net benefit cost, which primarily include interest cost, expected return on assets and the annual mark-to-market liability remeasurement, are required to be presented in the income statement separately from the service cost component and outside of income from operations. The guidance was effective for annual periods beginning after December 15, 2017, including interim periods within that reporting period. The Company adopted ASU 2017-07 as of January 1, 2018. The components of the net (benefit) cost are shown in Note 11. The impact of these pension and OPEB accounting policy changes were applied through retrospective adoption of the new ASU 2017-07 to all periods resented. Accordingly, all relevant information for the year ended December 31, 2018 and all prior periods has been adjusted to reflect the application of the changes. Consolidated Statements of Operations for the year ended December 31, 2017: Balance at December 31, 2018 Assets As reported Balances without Adoption of ASC 606 Effect of change higher/(lower) Inventory $ 138 $ 142 $ (4 ) Other current assets 30 25 5 Deficit Accumulated deficit (461 ) (462 ) 1 Previous Accounting Method Effect of Accounting Change As Reported Cost of sales $ 1,736 $ (2 ) $ 1,734 Gross profit 275 2 277 Operating income 57 2 59 Other non-operating (income) expense, net 97 2 99 145