CW 2020 Annual Report

Note 4: Earnings Per Share Earnings (Loss) per Share ("EPS") is calculated by dividing the Net earnings or loss attributable to shareholders by the weighted average shares outstanding. As the Company was in a loss position for the years ended December 31, 2020 and 2018, the Company has determined all potentially dilutive shares would be anti-dilutive in these periods and therefore are excluded from the calculation of diluted weighted average shares outstanding. This results in the calculation of weighted average shares outstanding to be the same for basic and diluted EPS. Potentially dilutive securities of approximately 2.1 million and 12.2 million for the years ended December 31, 2020 and 2018, respectively, were not included in the computation of diluted EPS because their effect would have been anti-dilutive. The following is a calculation of EPS (in millions, except per share amounts): Year Ended December 31, 2020 2019 2018 Basic EPS Net income (loss) attributable to shareholders $ (220.5) $ 0.2 $ (185.8) Weighted average shares outstanding for basic earnings (loss) per share 220.8 217.7 171.2 Basic earnings (loss) per common share attributable to shareholders $ (1.00) $ 0.00 $ (1.09) Diluted EPS Net income (loss) attributable to shareholders $ (220.5) $ 0.2 $ (185.8) Weighted average shares outstanding for basic earnings (loss) per share: 220.8 217.7 171.2 Dilutive effect of restricted stock units — 5.3 — Dilutive effect of stock options — 1.5 — Weighted average shares outstanding for diluted earnings (loss) per share 220.8 224.5 171.2 Diluted earnings (loss) per common share attributable to shareholders $ (1.00) $ 0.00 $ (1.09) Note 5: Revenue On January 1, 2018, the Company adopted and applied Topic 606 and all the related amendments to all contracts using the modified retrospective method. The Company recognized the cumulative effect on the consolidated balance sheet of applying the new revenue standard as an adjustment to the opening balance of Accumulated deficit of $35.9 million as of January 1, 2018. Contract Balances The Company receives payments from customers based upon contractual billing schedules; accounts receivable are recorded when the right to consideration becomes unconditional. Contract assets include amounts related to the contractual right to consideration for completed performance not yet invoiced or able to be invoiced. Contract liabilities are recorded when cash payments are received in advance of performance, including amounts which are refundable. The Company had no material asset impairment charges related to contract assets in the periods presented. As of December 31, 2020 and December 31, 2019, we had contract assets of $247.6 million and $313.4 million, respectively, and $38.2 million and $26.7 million, respectively, which were recorded in Short-term contract assets and Other non-current assets, respectively, in the Consolidated Balance Sheets. As of December 31, 2020 and December 31, 2019, we had contract liabilities of $42.8 million and $54.4 million, respectively, of which were recorded in Accounts payable and accrued expenses in the Consolidated Balance Sheets. Contract liabilities as of December 31, 2020 and December 31, 2019 were reduced by $608.3 million and $465.4 million, respectively, due to revenue recognition criteria being satisfied.

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