Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 15, 2015 | |
Class Of Stock [Line Items] | ||
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Entity Registrant Name | HUBBELL INCORPORATED | |
Entity Central Index Key | 48,898 | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Class A Common Stock | ||
Class Of Stock [Line Items] | ||
Entity Common Stock Shares Outstanding | 7,167,506 | |
Class B Common Stock | ||
Class Of Stock [Line Items] | ||
Entity Common Stock Shares Outstanding | 50,703,910 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | ||||
Net sales | $ 874 | $ 855.8 | $ 1,683.7 | $ 1,615.3 |
Cost of goods sold | 589.9 | 563.3 | 1,146.9 | 1,077.8 |
Gross profit | 284.1 | 292.5 | 536.8 | 537.5 |
Selling & administrative expenses | 157.4 | 148.8 | 305.1 | 289 |
Operating income | 126.7 | 143.7 | 231.7 | 248.5 |
Interest expense, net | (7.4) | (7) | (15.1) | (14.5) |
Other (expense) income, net | (1.3) | (0.3) | (3.8) | (1.5) |
Total other expense | (8.7) | (7.3) | (18.9) | (16) |
Income before income taxes | 118 | 136.4 | 212.8 | 232.5 |
Provision for income taxes | 36.7 | 45.6 | 68.1 | 76.4 |
Net income | 81.3 | 90.8 | 144.7 | 156.1 |
Less: Net income attributable to noncontrolling interest | 1.2 | 0.6 | 2.2 | 1.7 |
Net income attributable to Hubbell | $ 80.1 | $ 90.2 | $ 142.5 | $ 154.4 |
Earnings per share | ||||
Basic (USD per share) | $ 1.39 | $ 1.53 | $ 2.46 | $ 2.61 |
Diluted (USD per share) | 1.37 | 1.51 | 2.44 | 2.59 |
Cash dividends per common share (USD per share) | $ 0.56 | $ 0.50 | $ 1.12 | $ 1 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 81.3 | $ 90.8 | $ 144.7 | $ 156.1 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | 13.6 | 10 | (10.2) | 12.7 |
Pension and post retirement benefit plans’ prior service costs and net actuarial gains, net of taxes of ($0.9) and ($0.2) | 1.8 | 0.4 | 3.5 | 0.9 |
Unrealized loss on investments, net of taxes of $0.0 and $0.0 | (0.1) | 0.1 | (0.1) | 0 |
Unrealized gain (loss) on cash flow hedges, net of taxes of $0.1 and $0.3 | (0.7) | (0.6) | 0 | (0.4) |
Other comprehensive income (loss) | 14.6 | 9.9 | (6.8) | 13.2 |
Total comprehensive income | 95.9 | 100.7 | 137.9 | 169.3 |
Less: Comprehensive income attributable to noncontrolling interest | 1.2 | 0.6 | 2.2 | 1.7 |
Comprehensive income attributable to Hubbell | $ 94.7 | $ 100.1 | $ 135.7 | $ 167.6 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income (parenthetical) [Abstract] | ||||
Adjustment to pension and other benefit plans tax impact | $ (0.9) | $ (0.2) | $ (1.9) | $ (0.5) |
Unrealized gain or loss on investment, tax impact | 0 | 0 | 0 | 0 |
Unrealized gain or loss on cash flow hedge tax impact | $ 0.1 | $ 0.3 | $ 0.3 | $ 0.2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 444.3 | $ 653.9 |
Short-term investments | 10.4 | 7.8 |
Accounts receivable, net | 512.5 | 469.8 |
Inventories, net | 511.9 | 441.8 |
Deferred taxes and other | 57.7 | 56.1 |
Total Current Assets | 1,536.8 | 1,629.4 |
Property, Plant, and Equipment, net | 409 | 401.2 |
Other Assets | ||
Investments | 43.1 | 44.1 |
Goodwill | 920.2 | 874.7 |
Intangible assets, net | 368.1 | 322.8 |
Other long-term assets | 52.9 | 50.6 |
TOTAL ASSETS | 3,330.1 | 3,322.8 |
Current Liabilities | ||
Short-term debt | 0.2 | 1.4 |
Accounts payable | 279.8 | 244 |
Accrued salaries, wages and employee benefits | 54.6 | 76 |
Accrued insurance | 54.2 | 47.8 |
Other accrued liabilities | 127.5 | 130 |
Total Current Liabilities | 516.3 | 499.2 |
Long-Term Debt | 597.8 | 597.6 |
Other Non-Current Liabilities | 279.5 | 290.3 |
TOTAL LIABILITIES | 1,393.6 | 1,387.1 |
Total Hubbell Shareholders’ Equity | 1,927.4 | 1,927.1 |
Noncontrolling interest | 9.1 | 8.6 |
Total Equity | 1,936.5 | 1,935.7 |
TOTAL LIABILITIES AND EQUITY | $ 3,330.1 | $ 3,322.8 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows from Operating Activities | ||
Net income | $ 144.7 | $ 156.1 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 42.9 | 38.9 |
Deferred income taxes | (2) | 6.1 |
Stock-based compensation | 7.3 | 6.7 |
Tax benefit on stock-based awards | (1.8) | (6.2) |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
Increase in accounts receivable, net | (37.4) | (47.1) |
Increase in inventories, net | (51.3) | (31.2) |
Increase in current liabilities | 18.8 | (9.4) |
Changes in other assets and liabilities, net | (3.1) | (8.6) |
Contribution to qualified defined benefit pension plans | (21.7) | (2.8) |
Other, net | 2.3 | (1.3) |
Net Cash Provided by (Used in) Operating Activities | 98.7 | 101.2 |
Cash Flows from Investing Activities | ||
Capital expenditures | (34.5) | (27.1) |
Acquisition of businesses, net of cash acquired | (127) | (147.3) |
Purchases of available-for-sale investments | (5.6) | (6) |
Proceeds from available-for-sale investments | 4.1 | 4.7 |
Other, net | 1.5 | 1.4 |
Net cash used in investing activities | (161.5) | (174.3) |
Cash Flows from Financing Activities | ||
Short-term debt borrowings | 0.2 | 0.7 |
Payments of short-term debt | (1.4) | 0 |
Payment of dividends | (64.9) | (59.1) |
Payment of dividends to noncontrolling interest | (1.7) | (1.3) |
Repurchase of common shares | (76) | (23.3) |
Proceeds from exercise of stock options | 0 | 0.7 |
Tax benefit on stock-based awards | 1.8 | 6.2 |
Other, net | 0 | 0.1 |
Net cash used in financing activities | (142) | (76) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (4.8) | 5.8 |
Decrease in cash and cash equivalents | (209.6) | (143.3) |
Cash and cash equivalents | ||
Beginning of period | 653.9 | 740.7 |
End of period | $ 444.3 | $ 597.4 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references shall include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2014 . Recent Accounting Pronouncements In April of 2015, the Financial Accounting Standards Board ("FASB") updated the guidance related to the presentation of debt issuance costs. The new standard requires debt issuance costs, related to a recognized debt liability, be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. The update requires the guidance to be applied retrospectively. The update is effective for fiscal years beginning after December 15, 2015 and the Company does not expect adoption of this guidance will have a material impact on its financial statements. In February 2015, the FASB amended the current consolidation guidance. The new guidance will impact the determination of whether an entity is a variable interest entity ("VIE") and when a company holds a variable interest in a VIE by introducing specific amendments relating to limited partnerships, outsourced decision makers and service providers, and related parties. The guidance is effective for annual and interim periods beginning after December 2015. The Company does not expect adoption of this guidance will have a material impact on its financial statements. In January 2015, the FASB issued new guidance to eliminate the concept of extraordinary items as part of its initiative to reduce complexity in accounting standards. The guidance is effective for annual and interim periods beginning after December 2015 and may be applied prospectively or retrospectively. The Company does not expect adoption of this standard will have a material impact on its financial statements. In August 2014, the FASB issued new guidance requiring an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and if those conditions exist, the required disclosures. The guidance is effective for annual periods ending after December 15, 2015, and for annual and interim periods thereafter. The Company does not expect adoption of this standard will have a material impact on its financial statements. In June 2014, the FASB issued new guidance to resolve diverse accounting treatment for share based awards in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015 and may be applied prospectively or retrospectively. The Company does not expect adoption of this standard will have a material impact on its financial statements. In May 2014, the FASB issued new revenue recognition guidance that supersedes the existing revenue recognition guidance and most industry-specific guidance applicable to revenue recognition. According to the new guidance an entity will apply a principles-based five step model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The guidance was proposed to be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not permitted. On July 9, 2015, the FASB deferred the effective date of the new revenue recognition standard by one year. This means it is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently assessing the impact of adopting this standard on its financial statements. In April 2014, the FASB issued new guidance changing the criteria for determining which disposals of components of an entity can be presented as discontinued operations and modifying the related disclosure requirements. The guidance applies prospectively to new disposals and new classifications of assets as held for sale after the effective date and is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. This amendment was adopted by the Company effective January 1, 2015 and had no impact on its financial statements. |
Business Acquisitions
Business Acquisitions | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions In the first quarter of 2015, the Company acquired the majority of the net assets of the Acme Electric business division of Power Products,LLC and all of the outstanding common stock of Acme Electric de Mexico S. de R.L. de C.V. and Acme Electric Manufacturing de Mexico S. de R.L. de C.V. (collectively "Acme"). Acme was purchased for $67.6 million , net of cash received, and has been added to the Electrical segment, resulting in the recognition of intangible assets of $30.8 million and goodwill of $21.1 million . The $30.8 million of intangible assets consists primarily of customer relationships and tradenames and will be amortized over a weighted average period of approximately 20 years. The majority of the goodwill is expected to be deductible for tax purposes. In the first quarter of 2015, the Company acquired the majority of net assets of the Turner Electric business division of Power Products, LLC ("Turner") constituting the transmission and substation switching business. Turner was purchased for $37.6 million , net of cash received, and has been added to the Power segment, resulting in the recognition of intangible assets of $22.0 million and goodwill of $11.8 million . The $22.0 million of intangible assets consists primarily of customer relationships and tradenames and will be amortized over a weighted average period of approximately 19 years. All of the goodwill associated with the Turner acquisition is expected to be deductible for tax purposes. In the first quarter of 2015, the Company acquired all of the membership interests of the Electric Controller and Manufacturing Company, LLC ("EC&M"). EC&M was purchased for $21.6 million , net of cash received, and has been added to the Electrical segment, resulting in the recognition of intangible assets of $8.5 million and goodwill of $7.8 million . The $8.5 million of intangible assets consists primarily of customer relationships and tradenames and will be amortized over a weighted average period of approximately 16 years. All of the goodwill associated with the EC&M acquisition is expected to be deductible for tax purposes. All of these business acquisitions have been accounted for as business combinations and have resulted in the recognition of goodwill. The goodwill relates to a number of factors built into the purchase price, including the future earnings and cash flow potential of the businesses as well as the complementary strategic fit and resulting synergies they bring to the Company’s existing operations. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition related to these transactions (in millions): Tangible assets acquired $ 34.4 Intangible assets 61.3 Goodwill 40.7 Other liabilities assumed (9.6 ) TOTAL CASH CONSIDERATION, NET $ 126.8 Cash used for the acquisition of businesses, net of cash acquired as reported in the Condensed Consolidated Statement of Cash Flows for the six months ended June 30, 2015 is $ 127.0 million and includes an approximately $ 0.2 million payment in 2015 to settle the net working capital adjustment relating to an acquisition completed in the fourth quarter of 2014. The Condensed Consolidated Financial Statements include the results of operations of Acme, Turner and EC&M from the date of acquisition. Net sales and earnings related to these acquisitions for the three and six months ended June 30, 2015 were not significant to the consolidated results. Pro forma information related to these acquisitions has not been included because the impact to the Company’s consolidated results of operations was not material |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s reporting segments consist of the Electrical segment and the Power segment. The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2015 2014 2015 2014 2015 2014 Three Months Ended June 30, Electrical $ 615.0 $ 612.4 $ 74.5 $ 95.5 12.1 % 15.6 % Power 259.0 243.4 52.2 48.2 20.2 % 19.8 % TOTAL $ 874.0 $ 855.8 $ 126.7 $ 143.7 14.5 % 16.8 % Six Months Ended June 30, Electrical $ 1,184.8 $ 1,151.2 $ 137.8 $ 163.6 11.6 % 14.2 % Power 498.9 464.1 93.9 84.9 18.8 % 18.3 % TOTAL $ 1,683.7 $ 1,615.3 $ 231.7 $ 248.5 13.8 % 15.4 % |
Inventories, Net
Inventories, Net | 6 Months Ended |
Jun. 30, 2015 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories, net | Inventories, net Inventories, net are comprised of the following (in millions): June 30, 2015 December 31, 2014 Raw material $ 176.7 $ 153.8 Work-in-process 103.3 94.8 Finished goods 316.1 277.6 596.1 526.2 Excess of FIFO over LIFO cost basis (84.2 ) (84.4 ) TOTAL $ 511.9 $ 441.8 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | Goodwill and Intangible Assets, net Changes in the carrying values of goodwill for the six months ended June 30, 2015 , by segment, were as follows (in millions): Segment Electrical Power Total BALANCE DECEMBER 31, 2014 $ 568.9 $ 305.8 $ 874.7 Current year acquisitions 28.9 11.8 40.7 Foreign currency translation and prior year acquisitions 3.6 1.2 4.8 BALANCE JUNE 30, 2015 $ 601.4 $ 318.8 $ 920.2 In 2015, the Company closed the acquisitions of Acme, Turner, and EC&M. The Acme and EC&M acquisitions were added to the Electrical segment, while the Turner acquisition was added to the Power segment. These acquisitions have been accounted for as business combinations and have resulted in the recognition of $40.7 million of goodwill. See also Note 2 – Business Acquisitions. The Company performs its goodwill impairment testing as of April 1st of each year, unless circumstances dictate the need for more frequent assessments. The Company has elected to utilize the two step goodwill impairment testing process as permitted in the accounting guidance. Step 1 compares the fair value of the Company’s reporting units to their carrying values. If the fair value of the reporting unit exceeds its carrying value, no further analysis is necessary. If the carrying value of the reporting unit exceeds its fair value, Step 2 must be completed to quantify the amount of impairment. Goodwill impairment testing requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. The Company uses internal discounted cash flow estimates to determine fair value. These cash flow estimates are derived from historical experience and future long-term business plans and the application of an appropriate discount rate. The Company used market-based multiples of select industrial competitors to validate the reasonableness of our internal discounted cash flow estimates of fair value. Changes in these estimates and assumptions could affect the determination of fair value and/or goodwill impairment for each reporting unit. The Company’s estimated aggregate fair value of its reporting units are reasonable when compared to the Company’s market capitalization on the valuation date. As of April 1, 2015, the impairment testing resulted in implied fair values for each reporting unit that exceeded the reporting unit’s carrying value, including goodwill. The Company did not have any reporting units at risk of failing Step 1 of the impairment test as the excess of the estimated fair value over carrying value (expressed as a percentage of carrying value) ranged from approximately 100% to approximately 300% . Additionally, the Company did not have any reporting units with zero or negative carrying amounts. The carrying value of other intangible assets included in Intangible assets, net in the Condensed Consolidated Balance Sheet is as follows (in millions): June 30, 2015 December 31, 2014 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 133.7 $ (35.4 ) $ 125.1 $ (32.5 ) Customer/agent relationships and other 313.8 (98.5 ) 263.0 (87.8 ) Total 447.5 (133.9 ) 388.1 (120.3 ) Indefinite-lived: Tradenames and other 54.5 — 55.0 — TOTAL $ 502.0 $ (133.9 ) $ 443.1 $ (120.3 ) Amortization expense associated with these definite-lived intangible assets was $14.2 million and $11.7 million for the six months ended June 30, 2015 and 2014 , respectively. Future amortization expense associated with these intangible assets is expected to be $14.5 million for the remainder of 2015 , $27.1 million in 2016 , $26.6 million in 2017 , $24.7 million in 2018 , $22.3 million in 2019 , and $21.2 million in 2020 . |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities are comprised of the following (in millions): June 30, 2015 December 31, 2014 Customer program incentives $ 28.2 $ 40.5 Accrued income taxes 5.2 5.8 Deferred revenue 16.1 18.2 Other 78.0 65.5 TOTAL $ 127.5 $ 130.0 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities are comprised of the following (in millions): June 30, 2015 December 31, 2014 Pensions $ 115.6 $ 137.1 Other postretirement benefits 24.3 24.3 Deferred tax liabilities 79.8 74.5 Other 59.8 54.4 TOTAL $ 279.5 $ 290.3 |
Total Equity
Total Equity | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Total Equity | Total Equity Total equity is comprised of the following (in millions, except per share amounts): June 30, 2015 December 31, 2014 Common stock, $.01 par value: Class A - authorized 50.0 shares; issued and outstanding 7.2 and 7.2 shares $ 0.1 $ 0.1 Class B - authorized 150.0 shares; issued and outstanding 50.7 and 51.3 shares 0.5 0.5 Additional paid-in-capital 76.3 146.7 Retained earnings 2,021.6 1,944.1 Accumulated other comprehensive loss: Pension and post retirement benefit plan adjustment, net of tax (121.2 ) (124.7 ) Cumulative translation adjustment (50.1 ) (39.9 ) Unrealized gain on investment, net of tax 0.2 0.3 Cash flow hedge gain, net of tax — — Total Accumulated other comprehensive loss (171.1 ) (164.3 ) Hubbell shareholders’ equity 1,927.4 1,927.1 Noncontrolling interest 9.1 8.6 TOTAL EQUITY $ 1,936.5 $ 1,935.7 A summary of the changes in equity for the six months ended June 30, 2015 and 2014 is provided below (in millions): Six Months Ended June 30, 2015 2014 Hubbell Shareholders’ Equity Noncontrolling interest Total Equity Hubbell Shareholders’ Equity Noncontrolling interest Total Equity EQUITY, JANUARY 1 $ 1,927.1 $ 8.6 $ 1,935.7 $ 1,906.4 $ 8.4 $ 1,914.8 Total comprehensive income 135.7 2.2 137.9 167.6 1.7 169.3 Stock-based compensation 7.0 — 7.0 6.3 — 6.3 Exercise of stock options — — — 0.7 — 0.7 Income tax windfall from stock-based awards, net 1.6 — 1.6 6.2 — 6.2 Repurchase/surrender of common shares (79.3 ) — (79.3 ) (31.1 ) — (31.1 ) Issuance of shares related to directors’ deferred compensation 0.2 — 0.2 0.5 — 0.5 Dividends to noncontrolling interest — (1.7 ) (1.7 ) — (1.3 ) (1.3 ) Cash dividends declared (64.9 ) — (64.9 ) (59.2 ) — (59.2 ) EQUITY, JUNE 30 $ 1,927.4 $ 9.1 $ 1,936.5 $ 1,997.4 $ 8.8 $ 2,006.2 The detailed components of total comprehensive income are presented in the Condensed Consolidated Statement of Comprehensive Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss A summary of the changes in Accumulated other comprehensive loss (net of tax) for the six months ended June 30, 2015 is provided below (in millions): (debit) credit Cash flow hedge (loss) gain Unrealized gain (loss) on available-for- sale securities Pension and post retirement benefit plan adjustment Cumulative translation adjustment Total BALANCE AT DECEMBER 31, 2014 $ — $ 0.3 $ (124.7 ) $ (39.9 ) $ (164.3 ) Other comprehensive income (loss) before reclassifications 0.8 (0.1 ) — (10.2 ) (9.5 ) Amounts reclassified from accumulated other comprehensive loss (0.8 ) — 3.5 — 2.7 Current period other comprehensive income (loss) — (0.1 ) 3.5 (10.2 ) (6.8 ) BALANCE AT JUNE 30, 2015 $ — $ 0.2 $ (121.2 ) $ (50.1 ) $ (171.1 ) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2015 and 2014 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.4 $ 0.2 Cost of goods sold 0.4 0.2 Total before tax (0.1 ) (0.1 ) Tax (expense) benefit $ 0.3 $ 0.1 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.3 $ 0.2 (a) Actuarial gains/(losses) (3.0 ) (0.8 ) (a) (2.7 ) (0.6 ) Total before tax 0.9 0.2 Tax benefit (expense) $ (1.8 ) $ (0.4 ) (Loss) gain net of tax Losses reclassified into earnings $ (1.5 ) $ (0.3 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 - Pension and Other Benefits for additional details). Details about Accumulated Other Comprehensive Loss Components Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 1.1 $ 0.6 Cost of goods sold 1.1 0.6 Total before tax (0.3 ) (0.2 ) Tax (expense) benefit $ 0.8 $ 0.4 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.5 $ 0.3 (a) Actuarial gains/(losses) (5.9 ) (1.7 ) (a) (5.4 ) (1.4 ) Total before tax 1.9 0.5 Tax benefit (expense) $ (3.5 ) $ (0.9 ) (Loss) gain net of tax Losses reclassified into earnings $ (2.7 ) $ (0.5 ) (Loss) gain net of tax |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Service-based and performance-based restricted stock granted by the Company is considered a participating security as these awards contain a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three and six months ended June 30, 2015 and 2014 (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income attributable to Hubbell $ 80.1 $ 90.2 $ 142.5 $ 154.4 Less: Earnings allocated to participating securities 0.2 0.3 0.4 0.5 Net income available to common shareholders $ 79.9 $ 89.9 $ 142.1 $ 153.9 Denominator: Average number of common shares outstanding 57.7 59.0 57.9 59.0 Potential dilutive common shares 0.3 0.4 0.3 0.5 Average number of diluted shares outstanding 58.0 59.4 58.2 59.5 Earnings per share: Basic $ 1.39 $ 1.53 $ 2.46 $ 2.61 Diluted $ 1.37 $ 1.51 $ 2.44 $ 2.59 The Company did not have any significant anti-dilutive securities during the three and six months ended June 30, 2015 and 2014 . The calculation of diluted earnings per share for the three and six months ended June 30, 2015 excludes 28,096 and 28,403 , respectively, of performance shares granted in December 2014 that are subject to a performance condition. Those shares are excluded from the calculation of diluted earnings per share for the three and six months ended June 30, 2015 because all necessary performance conditions were not satisfied at the end of those reporting periods. |
Pension and Other Benefits
Pension and Other Benefits | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension And Other Benefits | Pension and Other Benefits The following table sets forth the components of net pension and other benefit costs for the three and six months ended June 30, 2015 and 2014 (in millions): Pension Benefits Other Benefits 2015 2014 2015 2014 Three Months Ended June 30, Service cost $ 4.5 $ 3.8 $ — $ — Interest cost 10.1 10.2 0.3 0.4 Expected return on plan assets (13.4 ) (11.3 ) — — Amortization of prior service cost — — (0.3 ) (0.2 ) Amortization of actuarial losses/(gains) 3.0 0.9 — (0.1 ) NET PERIODIC BENEFIT COST $ 4.2 $ 3.6 $ — $ 0.1 Six Months Ended June 30, Service cost $ 9.0 $ 7.5 $ — $ — Interest cost 20.2 20.4 0.6 0.6 Expected return on plan assets (26.6 ) (22.6 ) — — Amortization of prior service cost — 0.1 (0.5 ) (0.4 ) Amortization of actuarial losses/(gains) 5.9 1.8 — (0.1 ) NET PERIODIC BENEFIT COST $ 8.5 $ 7.2 $ 0.1 $ 0.1 Employer Contributions Although the Company is not required under the Pension Protection Act of 2006 to make any contributions to its qualified domestic benefit pension plans during 2015 , the Company made a voluntary contribution to its qualified domestic defined benefit pension plan of $ 20 million in January 2015. We do not anticipate further contributions to the qualified domestic defined benefit pension plan in 2015. The Company anticipates making required contributions of approximately $2.8 million to its foreign pension plans during 2015 , of which $ 1.7 million has been contributed through June 30, 2015 . |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2015 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees in the Condensed Consolidated Balance Sheet in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of June 30, 2015 and December 31, 2014 , the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product defect warranties on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known or as historical experience indicates. Changes in the accrual for product warranties during the six months ended June 30, 2015 are set forth below (in millions): BALANCE AT DECEMBER 31, 2014 $ 13.7 Provision 5.3 Expenditures/other (5.0 ) BALANCE AT JUNE 30, 2015 $ 14.0 |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions. The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at June 30, 2015 and December 31, 2014 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Total June 30, 2015 Money market funds (a) $ 217.8 $ — $ 217.8 Available for sale investments — 43.6 43.6 Trading securities 9.9 — 9.9 Deferred compensation plan liabilities (9.9 ) — (9.9 ) Derivatives: Forward exchange contracts — 0.6 0.6 Total $ 217.8 $ 44.2 $ 262.0 Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Total December 31, 2014 Money market funds (a) $ 365.9 $ — $ 365.9 Available for sale investments — 43.0 43.0 Trading securities 8.9 — 8.9 Deferred compensation plan liabilities (8.9 ) — (8.9 ) Derivatives: Forward exchange contracts — 0.7 0.7 Total $ 365.9 $ 43.7 $ 409.6 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheet. The methods and assumptions used to estimate the Level 2 fair values were as follows: Forward exchange contracts – The fair value of forward exchange contracts were based on quoted forward foreign exchange prices at the reporting date. Municipal bonds – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. During the three and six months ended June 30, 2015 there were no transfers of financial assets or liabilities in or out of Level 1 or Level 2 of the fair value hierarchy. During the six months ended June 30, 2015 and as of December 31, 2014 , the Company did not have any financial assets or liabilities that fell within Level 3 of the hierarchy. Investments At June 30, 2015 and December 31, 2014 , the Company had $43.6 million and $43.0 million , respectively, of municipal bonds classified as available-for-sale securities. The Company also had $9.9 million and $8.9 million of trading securities at June 30, 2015 and December 31, 2014 , respectively. These investments are carried on the balance sheet at fair value. Unrealized gains and losses associated with available-for-sale securities are reflected in Accumulated other comprehensive loss, net of tax, while unrealized gains and losses associated with trading securities are reflected in the results of operations. Deferred compensation plans The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. During the six months ended June 30, 2015 and 2014 , the Company purchased $1.0 million and $1.2 million , respectively, of trading securities related to these deferred compensation plans. As a result of participant distributions, the Company sold $0.2 million of these trading securities during the six months ended June 30, 2015 and June 30, 2014 . The unrealized gains and losses associated with these trading securities are directly offset by the changes in the fair value of the underlying deferred compensation plan obligation. Derivatives In order to limit financial risk in the management of its assets, liabilities and debt, the Company may use derivative financial instruments such as foreign currency hedges, commodity hedges, interest rate hedges and interest rate swaps. All derivative financial instruments are matched with an existing Company asset, liability or forecasted transaction. Market value gains or losses on the derivative financial instrument are recognized in income when the effects of the related price changes of the underlying asset, liability or forecasted transaction are recognized in income. Derivative assets and derivative liabilities are not offset in the Condensed Consolidated Balance Sheet. The fair values of derivative instruments in the Condensed Consolidated Balance Sheet are as follows (in millions): Asset/(Liability) Derivatives Fair Value Derivatives designated as hedges Balance Sheet Location June 30, 2015 December 31, 2014 Forward exchange contracts designated as cash flow hedges Deferred taxes and other $ 0.6 $ 0.7 Forward exchange contracts In 2015 and 2014 , the Company entered into a series of forward exchange contracts to purchase U.S. dollars in order to hedge its exposure to fluctuating rates of exchange on anticipated inventory purchases by one of its Canadian subsidiaries. As of June 30, 2015 , the Company had 18 individual forward exchange contracts for a notional $1.0 million each, which have various expiration dates through June 2016. These contracts have been designated as cash flow hedges in accordance with the accounting guidance for derivatives. Interest rate locks Prior to the issuance of long-term notes in 2010 and 2008, the Company entered into forward interest rate locks to hedge its exposure to fluctuations in treasury rates. The 2010 interest rate lock resulted in a pre-tax $1.6 million loss while the 2008 interest rate lock resulted in a pre-tax $1.2 million gain. These amounts were recorded in Accumulated other comprehensive loss, net of tax, and are being amortized over the life of the respective notes. The amortization associated with these interest rate locks is reclassified from Accumulated other comprehensive loss to Interest expense, net in the Condensed Consolidated Statement of Income. The amortization reclassification for the three and six months ended June 30, 2015 and 2014 was not material. As of both June 30, 2015 and December 31, 2014 there was $0.4 million of net unamortized losses reflected in Accumulated other comprehensive loss. The following table summarizes the results of cash flow hedging relationships for the three months ended June 30, 2015 and 2014 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings (Effective Portion) Derivative Instrument 2015 2014 (Effective Portion) 2015 2014 Forward exchange contract $ (0.7 ) $ (0.5 ) Cost of goods sold $ 0.3 $ 0.2 The following table summarizes the results of cash flow hedging relationships for the six months ended June 30, 2015 and 2014 , (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings (Effective Portion) Derivative Instrument 2015 2014 (Effective Portion) 2015 2014 Forward exchange contract $ 0.8 $ — Cost of goods sold $ 0.8 $ 0.6 There was no hedge ineffectiveness with respect to the forward exchange cash flow hedges during the three and six months ended June 30, 2015 and 2014 . Long-term Debt The total carrying value of long-term debt as of June 30, 2015 and December 31, 2014 was $597.8 million and $597.6 million , respectively, net of unamortized discount. As of June 30, 2015 and December 31, 2014 , the estimated fair value of the long-term debt was $638.6 million and $645.1 million , respectively, using quoted market prices in active markets for similar liabilities (Level 2). |
Commitment and Contingencies
Commitment and Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies The Company is subject to various legal proceedings arising in the normal course of its business. These proceedings include claims for damages arising out of use of the Company’s products, intellectual property, workers’ compensation and environmental matters. The Company is self-insured up to specified limits for certain types of claims, including product liability and workers’ compensation, and is fully self-insured for certain other types of claims, including environmental and intellectual property matters. The Company recognizes a liability for any contingency that in management’s judgment is probable of occurrence and can be reasonably estimated. We continually reassess the likelihood of adverse judgments and outcomes in these matters, as well as estimated ranges of possible losses based upon an analysis of each matter which includes consideration of outside legal counsel and, if applicable, other experts. |
Restructuring Costs
Restructuring Costs | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs In the first six months of 2015, we incurred costs for restructuring actions initiated in 2015 as well as costs involving restructuring actions initiated in the prior year. Our restructuring actions are associated with cost reduction efforts that include the consolidation of manufacturing and distribution facilities as well as workforce reductions. Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2015 is as follows (in millions): Three Months Ended June 30, 2015 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 5.4 $ 3.0 $ 8.4 Power Segment — 0.5 0.5 Total Pre Tax Restructuring Costs $ 5.4 $ 3.5 $ 8.9 Six Months Ended June 30, 2015 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 7.3 $ 3.1 $ 10.4 Power Segment 0.7 0.5 1.2 Total Pre Tax Restructuring Costs $ 8.0 $ 3.6 $ 11.6 The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Restructuring Balance 1/1/15 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 6/30/15 Current Year Restructuring Actions Severance $ — $ 6.2 $ (1.8 ) $ 4.4 Asset write-downs — 0.9 (0.9 ) — Facility closure and other costs — 0.3 (0.3 ) — Total Current Year Restructuring Actions $ — $ 7.4 $ (3.0 ) $ 4.4 Prior Year Restructuring Actions Severance $ 2.8 $ (0.1 ) $ (2.2 ) $ 0.5 Asset write-downs — 0.2 (0.2 ) — Facility closure and other costs 0.9 4.1 (4.3 ) 0.7 Total Prior Year Restructuring Actions $ 3.7 $ 4.2 $ (6.7 ) $ 1.2 Total Restructuring Actions $ 3.7 $ 11.6 $ (9.7 ) $ 5.6 The actual and expected costs for our restructuring actions are as follows (in millions): Expected Costs Costs incurred in the fourth quarter of 2014 Costs incurred in first six months of 2015 Remaining costs at 6/30/15 Current Year Restructuring Actions Electrical Segment $ 8.7 $ — $ 6.2 $ 2.5 Power Segment 1.9 — 1.2 0.7 Total Current Year Restructuring Actions 10.6 — 7.4 3.2 Prior Year Restructuring Actions Electrical Segment 9.8 5.5 4.2 0.1 Power Segment — — — — Total Prior Year Restructuring Actions 9.8 5.5 4.2 0.1 Total Restructuring Actions $ 20.4 $ 5.5 $ 11.6 $ 3.3 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references shall include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the six months ended June 30, 2015 are not necessarily indicative of the results that may be expected for the year ending December 31, 2015 . The balance sheet at December 31, 2014 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2014 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In April of 2015, the Financial Accounting Standards Board ("FASB") updated the guidance related to the presentation of debt issuance costs. The new standard requires debt issuance costs, related to a recognized debt liability, be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability instead of being presented as an asset. The update requires the guidance to be applied retrospectively. The update is effective for fiscal years beginning after December 15, 2015 and the Company does not expect adoption of this guidance will have a material impact on its financial statements. In February 2015, the FASB amended the current consolidation guidance. The new guidance will impact the determination of whether an entity is a variable interest entity ("VIE") and when a company holds a variable interest in a VIE by introducing specific amendments relating to limited partnerships, outsourced decision makers and service providers, and related parties. The guidance is effective for annual and interim periods beginning after December 2015. The Company does not expect adoption of this guidance will have a material impact on its financial statements. In January 2015, the FASB issued new guidance to eliminate the concept of extraordinary items as part of its initiative to reduce complexity in accounting standards. The guidance is effective for annual and interim periods beginning after December 2015 and may be applied prospectively or retrospectively. The Company does not expect adoption of this standard will have a material impact on its financial statements. In August 2014, the FASB issued new guidance requiring an entity’s management to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the entity’s ability to continue as a going concern and if those conditions exist, the required disclosures. The guidance is effective for annual periods ending after December 15, 2015, and for annual and interim periods thereafter. The Company does not expect adoption of this standard will have a material impact on its financial statements. In June 2014, the FASB issued new guidance to resolve diverse accounting treatment for share based awards in which the terms of the award provide that a performance target that affects vesting could be achieved after the requisite service period. The guidance is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015 and may be applied prospectively or retrospectively. The Company does not expect adoption of this standard will have a material impact on its financial statements. In May 2014, the FASB issued new revenue recognition guidance that supersedes the existing revenue recognition guidance and most industry-specific guidance applicable to revenue recognition. According to the new guidance an entity will apply a principles-based five step model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The guidance was proposed to be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not permitted. On July 9, 2015, the FASB deferred the effective date of the new revenue recognition standard by one year. This means it is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. The Company is currently assessing the impact of adopting this standard on its financial statements. In April 2014, the FASB issued new guidance changing the criteria for determining which disposals of components of an entity can be presented as discontinued operations and modifying the related disclosure requirements. The guidance applies prospectively to new disposals and new classifications of assets as held for sale after the effective date and is effective for annual and interim periods beginning after December 15, 2014, with early adoption permitted. This amendment was adopted by the Company effective January 1, 2015 and had no impact on its financial statements. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Business Combinations [Abstract] | |
Summary of the Preliminary Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition related to these transactions (in millions): Tangible assets acquired $ 34.4 Intangible assets 61.3 Goodwill 40.7 Other liabilities assumed (9.6 ) TOTAL CASH CONSIDERATION, NET $ 126.8 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The Company’s reporting segments consist of the Electrical segment and the Power segment. The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2015 2014 2015 2014 2015 2014 Three Months Ended June 30, Electrical $ 615.0 $ 612.4 $ 74.5 $ 95.5 12.1 % 15.6 % Power 259.0 243.4 52.2 48.2 20.2 % 19.8 % TOTAL $ 874.0 $ 855.8 $ 126.7 $ 143.7 14.5 % 16.8 % Six Months Ended June 30, Electrical $ 1,184.8 $ 1,151.2 $ 137.8 $ 163.6 11.6 % 14.2 % Power 498.9 464.1 93.9 84.9 18.8 % 18.3 % TOTAL $ 1,683.7 $ 1,615.3 $ 231.7 $ 248.5 13.8 % 15.4 % |
Inventories, Net (Tables)
Inventories, Net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Schedule of Inventory | Inventories, net are comprised of the following (in millions): June 30, 2015 December 31, 2014 Raw material $ 176.7 $ 153.8 Work-in-process 103.3 94.8 Finished goods 316.1 277.6 596.1 526.2 Excess of FIFO over LIFO cost basis (84.2 ) (84.4 ) TOTAL $ 511.9 $ 441.8 |
Goodwill and Intangible Asset26
Goodwill and Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Goodwill | Changes in the carrying values of goodwill for the six months ended June 30, 2015 , by segment, were as follows (in millions): Segment Electrical Power Total BALANCE DECEMBER 31, 2014 $ 568.9 $ 305.8 $ 874.7 Current year acquisitions 28.9 11.8 40.7 Foreign currency translation and prior year acquisitions 3.6 1.2 4.8 BALANCE JUNE 30, 2015 $ 601.4 $ 318.8 $ 920.2 |
Schedule of Intangible Assets | The carrying value of other intangible assets included in Intangible assets, net in the Condensed Consolidated Balance Sheet is as follows (in millions): June 30, 2015 December 31, 2014 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 133.7 $ (35.4 ) $ 125.1 $ (32.5 ) Customer/agent relationships and other 313.8 (98.5 ) 263.0 (87.8 ) Total 447.5 (133.9 ) 388.1 (120.3 ) Indefinite-lived: Tradenames and other 54.5 — 55.0 — TOTAL $ 502.0 $ (133.9 ) $ 443.1 $ (120.3 ) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accrued Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities are comprised of the following (in millions): June 30, 2015 December 31, 2014 Customer program incentives $ 28.2 $ 40.5 Accrued income taxes 5.2 5.8 Deferred revenue 16.1 18.2 Other 78.0 65.5 TOTAL $ 127.5 $ 130.0 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Summary of Other Non-Current Liabilities | Other non-current liabilities are comprised of the following (in millions): June 30, 2015 December 31, 2014 Pensions $ 115.6 $ 137.1 Other postretirement benefits 24.3 24.3 Deferred tax liabilities 79.8 74.5 Other 59.8 54.4 TOTAL $ 279.5 $ 290.3 |
Total Equity(Tables)
Total Equity(Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | Total equity is comprised of the following (in millions, except per share amounts): June 30, 2015 December 31, 2014 Common stock, $.01 par value: Class A - authorized 50.0 shares; issued and outstanding 7.2 and 7.2 shares $ 0.1 $ 0.1 Class B - authorized 150.0 shares; issued and outstanding 50.7 and 51.3 shares 0.5 0.5 Additional paid-in-capital 76.3 146.7 Retained earnings 2,021.6 1,944.1 Accumulated other comprehensive loss: Pension and post retirement benefit plan adjustment, net of tax (121.2 ) (124.7 ) Cumulative translation adjustment (50.1 ) (39.9 ) Unrealized gain on investment, net of tax 0.2 0.3 Cash flow hedge gain, net of tax — — Total Accumulated other comprehensive loss (171.1 ) (164.3 ) Hubbell shareholders’ equity 1,927.4 1,927.1 Noncontrolling interest 9.1 8.6 TOTAL EQUITY $ 1,936.5 $ 1,935.7 A summary of the changes in equity for the six months ended June 30, 2015 and 2014 is provided below (in millions): Six Months Ended June 30, 2015 2014 Hubbell Shareholders’ Equity Noncontrolling interest Total Equity Hubbell Shareholders’ Equity Noncontrolling interest Total Equity EQUITY, JANUARY 1 $ 1,927.1 $ 8.6 $ 1,935.7 $ 1,906.4 $ 8.4 $ 1,914.8 Total comprehensive income 135.7 2.2 137.9 167.6 1.7 169.3 Stock-based compensation 7.0 — 7.0 6.3 — 6.3 Exercise of stock options — — — 0.7 — 0.7 Income tax windfall from stock-based awards, net 1.6 — 1.6 6.2 — 6.2 Repurchase/surrender of common shares (79.3 ) — (79.3 ) (31.1 ) — (31.1 ) Issuance of shares related to directors’ deferred compensation 0.2 — 0.2 0.5 — 0.5 Dividends to noncontrolling interest — (1.7 ) (1.7 ) — (1.3 ) (1.3 ) Cash dividends declared (64.9 ) — (64.9 ) (59.2 ) — (59.2 ) EQUITY, JUNE 30 $ 1,927.4 $ 9.1 $ 1,936.5 $ 1,997.4 $ 8.8 $ 2,006.2 |
Accumulated Other Comprehensi30
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Income Loss | A summary of the changes in Accumulated other comprehensive loss (net of tax) for the six months ended June 30, 2015 is provided below (in millions): (debit) credit Cash flow hedge (loss) gain Unrealized gain (loss) on available-for- sale securities Pension and post retirement benefit plan adjustment Cumulative translation adjustment Total BALANCE AT DECEMBER 31, 2014 $ — $ 0.3 $ (124.7 ) $ (39.9 ) $ (164.3 ) Other comprehensive income (loss) before reclassifications 0.8 (0.1 ) — (10.2 ) (9.5 ) Amounts reclassified from accumulated other comprehensive loss (0.8 ) — 3.5 — 2.7 Current period other comprehensive income (loss) — (0.1 ) 3.5 (10.2 ) (6.8 ) BALANCE AT JUNE 30, 2015 $ — $ 0.2 $ (121.2 ) $ (50.1 ) $ (171.1 ) |
Reclassification out of Accumulated Other Comprehensive Income | A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2015 and 2014 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components Three Months Ended June 30, 2015 Three Months Ended June 30, 2014 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.4 $ 0.2 Cost of goods sold 0.4 0.2 Total before tax (0.1 ) (0.1 ) Tax (expense) benefit $ 0.3 $ 0.1 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.3 $ 0.2 (a) Actuarial gains/(losses) (3.0 ) (0.8 ) (a) (2.7 ) (0.6 ) Total before tax 0.9 0.2 Tax benefit (expense) $ (1.8 ) $ (0.4 ) (Loss) gain net of tax Losses reclassified into earnings $ (1.5 ) $ (0.3 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 - Pension and Other Benefits for additional details). Details about Accumulated Other Comprehensive Loss Components Six Months Ended June 30, 2015 Six Months Ended June 30, 2014 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 1.1 $ 0.6 Cost of goods sold 1.1 0.6 Total before tax (0.3 ) (0.2 ) Tax (expense) benefit $ 0.8 $ 0.4 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.5 $ 0.3 (a) Actuarial gains/(losses) (5.9 ) (1.7 ) (a) (5.4 ) (1.4 ) Total before tax 1.9 0.5 Tax benefit (expense) $ (3.5 ) $ (0.9 ) (Loss) gain net of tax Losses reclassified into earnings $ (2.7 ) $ (0.5 ) (Loss) gain net of tax |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |
Summary of the Computation of Earnings Per Share | The following table sets forth the computation of earnings per share for the three and six months ended June 30, 2015 and 2014 (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2015 2014 2015 2014 Numerator: Net income attributable to Hubbell $ 80.1 $ 90.2 $ 142.5 $ 154.4 Less: Earnings allocated to participating securities 0.2 0.3 0.4 0.5 Net income available to common shareholders $ 79.9 $ 89.9 $ 142.1 $ 153.9 Denominator: Average number of common shares outstanding 57.7 59.0 57.9 59.0 Potential dilutive common shares 0.3 0.4 0.3 0.5 Average number of diluted shares outstanding 58.0 59.4 58.2 59.5 Earnings per share: Basic $ 1.39 $ 1.53 $ 2.46 $ 2.61 Diluted $ 1.37 $ 1.51 $ 2.44 $ 2.59 |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Pension and Other Benefit Costs | The following table sets forth the components of net pension and other benefit costs for the three and six months ended June 30, 2015 and 2014 (in millions): Pension Benefits Other Benefits 2015 2014 2015 2014 Three Months Ended June 30, Service cost $ 4.5 $ 3.8 $ — $ — Interest cost 10.1 10.2 0.3 0.4 Expected return on plan assets (13.4 ) (11.3 ) — — Amortization of prior service cost — — (0.3 ) (0.2 ) Amortization of actuarial losses/(gains) 3.0 0.9 — (0.1 ) NET PERIODIC BENEFIT COST $ 4.2 $ 3.6 $ — $ 0.1 Six Months Ended June 30, Service cost $ 9.0 $ 7.5 $ — $ — Interest cost 20.2 20.4 0.6 0.6 Expected return on plan assets (26.6 ) (22.6 ) — — Amortization of prior service cost — 0.1 (0.5 ) (0.4 ) Amortization of actuarial losses/(gains) 5.9 1.8 — (0.1 ) NET PERIODIC BENEFIT COST $ 8.5 $ 7.2 $ 0.1 $ 0.1 |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Standard Product Warranty Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Changes in the accrual for product warranties during the six months ended June 30, 2015 are set forth below (in millions): BALANCE AT DECEMBER 31, 2014 $ 13.7 Provision 5.3 Expenditures/other (5.0 ) BALANCE AT JUNE 30, 2015 $ 14.0 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liability by Fair Value Hierarchy Level | The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at June 30, 2015 and December 31, 2014 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Total June 30, 2015 Money market funds (a) $ 217.8 $ — $ 217.8 Available for sale investments — 43.6 43.6 Trading securities 9.9 — 9.9 Deferred compensation plan liabilities (9.9 ) — (9.9 ) Derivatives: Forward exchange contracts — 0.6 0.6 Total $ 217.8 $ 44.2 $ 262.0 Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Total December 31, 2014 Money market funds (a) $ 365.9 $ — $ 365.9 Available for sale investments — 43.0 43.0 Trading securities 8.9 — 8.9 Deferred compensation plan liabilities (8.9 ) — (8.9 ) Derivatives: Forward exchange contracts — 0.7 0.7 Total $ 365.9 $ 43.7 $ 409.6 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheet. |
Summary of Fair Value of Derivative Instruments in the Consolidated Balance Sheet | The fair values of derivative instruments in the Condensed Consolidated Balance Sheet are as follows (in millions): Asset/(Liability) Derivatives Fair Value Derivatives designated as hedges Balance Sheet Location June 30, 2015 December 31, 2014 Forward exchange contracts designated as cash flow hedges Deferred taxes and other $ 0.6 $ 0.7 |
Summary of the Results of Cash Flow Hedging Relationships | The following table summarizes the results of cash flow hedging relationships for the three months ended June 30, 2015 and 2014 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings (Effective Portion) Derivative Instrument 2015 2014 (Effective Portion) 2015 2014 Forward exchange contract $ (0.7 ) $ (0.5 ) Cost of goods sold $ 0.3 $ 0.2 The following table summarizes the results of cash flow hedging relationships for the six months ended June 30, 2015 and 2014 , (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings (Effective Portion) Derivative Instrument 2015 2014 (Effective Portion) 2015 2014 Forward exchange contract $ 0.8 $ — Cost of goods sold $ 0.8 $ 0.6 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Costs | The actual and expected costs for our restructuring actions are as follows (in millions): Expected Costs Costs incurred in the fourth quarter of 2014 Costs incurred in first six months of 2015 Remaining costs at 6/30/15 Current Year Restructuring Actions Electrical Segment $ 8.7 $ — $ 6.2 $ 2.5 Power Segment 1.9 — 1.2 0.7 Total Current Year Restructuring Actions 10.6 — 7.4 3.2 Prior Year Restructuring Actions Electrical Segment 9.8 5.5 4.2 0.1 Power Segment — — — — Total Prior Year Restructuring Actions 9.8 5.5 4.2 0.1 Total Restructuring Actions $ 20.4 $ 5.5 $ 11.6 $ 3.3 Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Condensed Consolidated Statement of Income for the three and six months ended June 30, 2015 is as follows (in millions): Three Months Ended June 30, 2015 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 5.4 $ 3.0 $ 8.4 Power Segment — 0.5 0.5 Total Pre Tax Restructuring Costs $ 5.4 $ 3.5 $ 8.9 Six Months Ended June 30, 2015 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 7.3 $ 3.1 $ 10.4 Power Segment 0.7 0.5 1.2 Total Pre Tax Restructuring Costs $ 8.0 $ 3.6 $ 11.6 |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Restructuring Balance 1/1/15 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 6/30/15 Current Year Restructuring Actions Severance $ — $ 6.2 $ (1.8 ) $ 4.4 Asset write-downs — 0.9 (0.9 ) — Facility closure and other costs — 0.3 (0.3 ) — Total Current Year Restructuring Actions $ — $ 7.4 $ (3.0 ) $ 4.4 Prior Year Restructuring Actions Severance $ 2.8 $ (0.1 ) $ (2.2 ) $ 0.5 Asset write-downs — 0.2 (0.2 ) — Facility closure and other costs 0.9 4.1 (4.3 ) 0.7 Total Prior Year Restructuring Actions $ 3.7 $ 4.2 $ (6.7 ) $ 1.2 Total Restructuring Actions $ 3.7 $ 11.6 $ (9.7 ) $ 5.6 |
Business Acquisitions Narrative
Business Acquisitions Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition [Line Items] | |||
Acquisition of businesses, net of cash acquired | $ 127 | $ 147.3 | |
Goodwill recognized through acquisitions | 40.7 | ||
Goodwill, purchase accounting adjustments | $ 0.2 | ||
Acme | |||
Business Acquisition [Line Items] | |||
Acquisition of businesses, net of cash acquired | $ 67.6 | ||
Intangible assets | 30.8 | ||
Goodwill recognized through acquisitions | $ 21.1 | ||
Weighted average useful life | 20 years | ||
Turner | |||
Business Acquisition [Line Items] | |||
Acquisition of businesses, net of cash acquired | $ 37.6 | ||
Intangible assets | 22 | ||
Goodwill recognized through acquisitions | $ 11.8 | ||
Weighted average useful life | 19 years | ||
EC&M | |||
Business Acquisition [Line Items] | |||
Acquisition of businesses, net of cash acquired | $ 21.6 | ||
Intangible assets | 8.5 | ||
Goodwill recognized through acquisitions | $ 7.8 | ||
Weighted average useful life | 16 years |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $ 920.2 | $ 874.7 | |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Tangible assets acquired | $ 34.4 | ||
Intangible assets | 61.3 | ||
Goodwill | 40.7 | ||
Other liabilities assumed | (9.6) | ||
TOTAL CASH CONSIDERATION, NET | $ 126.8 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 874 | $ 855.8 | $ 1,683.7 | $ 1,615.3 |
Operating Income | $ 126.7 | $ 143.7 | $ 231.7 | $ 248.5 |
Operating Income as a % of Net Sales | 14.50% | 16.80% | 13.80% | 15.40% |
Operating Segments | Electrical | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 615 | $ 612.4 | $ 1,184.8 | $ 1,151.2 |
Operating Income | $ 74.5 | $ 95.5 | $ 137.8 | $ 163.6 |
Operating Income as a % of Net Sales | 12.10% | 15.60% | 11.60% | 14.20% |
Operating Segments | Power | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 259 | $ 243.4 | $ 498.9 | $ 464.1 |
Operating Income | $ 52.2 | $ 48.2 | $ 93.9 | $ 84.9 |
Operating Income as a % of Net Sales | 20.20% | 19.80% | 18.80% | 18.30% |
Inventories, Net (Details)
Inventories, Net (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw material | $ 176.7 | $ 153.8 |
Work-in-process | 103.3 | 94.8 |
Finished goods | 316.1 | 277.6 |
Inventory, gross | 596.1 | 526.2 |
Excess of FIFO over LIFO cost basis | (84.2) | (84.4) |
TOTAL | $ 511.9 | $ 441.8 |
Goodwill and Intangible Asset40
Goodwill and Intangible Assets, net (Details) - USD ($) $ in Millions | 6 Months Ended |
Jun. 30, 2015 | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2014 | $ 874.7 |
Current year acquisitions | 40.7 |
Foreign currency translation and prior year acquisitions | 4.8 |
BALANCE JUNE 30, 2015 | 920.2 |
Electrical | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2014 | 568.9 |
Current year acquisitions | 28.9 |
Foreign currency translation and prior year acquisitions | 3.6 |
BALANCE JUNE 30, 2015 | 601.4 |
Power | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2014 | 305.8 |
Current year acquisitions | 11.8 |
Foreign currency translation and prior year acquisitions | 1.2 |
BALANCE JUNE 30, 2015 | $ 318.8 |
Goodwill and Intangible Asset41
Goodwill and Intangible Assets, net Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Apr. 01, 2015 | |
Goodwill [Line Items] | |||
Goodwill recognized through acquisitions | $ 40.7 | ||
Amortization expense | 14.2 | $ 11.7 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
2,015 | 14.5 | ||
2,016 | 27.1 | ||
2,017 | 26.6 | ||
2,018 | 24.7 | ||
2,019 | 22.3 | ||
2,020 | $ 21.2 | ||
Minimum | |||
Goodwill [Line Items] | |||
Percentage of fair value in excess of carrying amount | 100.00% | ||
Maximum | |||
Goodwill [Line Items] | |||
Percentage of fair value in excess of carrying amount | 300.00% |
Goodwill and Intangible Asset42
Goodwill and Intangible Assets, net Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Other Intangible Assets [Line Items] | ||
Gross Amount | $ 447.5 | $ 388.1 |
Accumulated Amortization | (133.9) | (120.3) |
TOTAL | 502 | 443.1 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Gross Amount | 133.7 | 125.1 |
Accumulated Amortization | (35.4) | (32.5) |
Customer/agent relationships and other | ||
Other Intangible Assets [Line Items] | ||
Gross Amount | 313.8 | 263 |
Accumulated Amortization | (98.5) | (87.8) |
Tradenames and other | ||
Other Intangible Assets [Line Items] | ||
Tradenames and other | $ 54.5 | $ 55 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 28.2 | $ 40.5 |
Accrued income taxes | 5.2 | 5.8 |
Deferred revenue | 16.1 | 18.2 |
Other | 78 | 65.5 |
TOTAL | $ 127.5 | $ 130 |
Other Non-Current Liabilities44
Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | ||
Pensions | $ 115.6 | $ 137.1 |
Other postretirement benefits | 24.3 | 24.3 |
Deferred tax liabilities | 79.8 | 74.5 |
Other | 59.8 | 54.4 |
TOTAL | $ 279.5 | $ 290.3 |
Total Equity Equity I (Details)
Total Equity Equity I (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2014 | Dec. 31, 2013 |
Equity [Line Items] | ||||
Additional paid-in-capital | $ 76.3 | $ 146.7 | ||
Retained earnings | 2,021.6 | 1,944.1 | ||
Accumulated other comprehensive loss: | ||||
Pension and post retirement benefit plan adjustment, net of tax | (121.2) | (124.7) | ||
Cumulative translation adjustment | (50.1) | (39.9) | ||
Cumulative translation adjustment | 0.2 | 0.3 | ||
Cash flow hedge gain, net of tax | 0 | 0 | ||
Total Accumulated other comprehensive loss | (171.1) | (164.3) | ||
Hubbell shareholders’ equity | 1,927.4 | 1,927.1 | ||
Noncontrolling interest | 9.1 | 8.6 | ||
Total Equity | 1,936.5 | 1,935.7 | $ 2,006.2 | $ 1,914.8 |
Class A Common Stock | ||||
Equity [Line Items] | ||||
Common stock par value | 0.1 | 0.1 | ||
Class B Common Stock | ||||
Equity [Line Items] | ||||
Common stock par value | $ 0.5 | $ 0.5 |
Total Equity Equity II (Details
Total Equity Equity II (Details) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Class Of Stock [Line Items] | ||
Common stock par value per share (USD per share) | $ 0.01 | $ 0.01 |
Class A Common Stock | ||
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares, issued | 7,200,000 | 7,200,000 |
Common stock, shares outstanding | 7,200,000 | 7,200,000 |
Class B Common Stock | ||
Class Of Stock [Line Items] | ||
Common stock, shares authorized | 150,000,000 | 150,000,000 |
Common stock, shares, issued | 50,700,000 | 51,300,000 |
Common stock, shares outstanding | 50,700,000 | 51,300,000 |
Total Equity Equity III (Detail
Total Equity Equity III (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | $ 1,935.7 | $ 1,914.8 | ||
Total comprehensive income | $ 95.9 | $ 100.7 | 137.9 | 169.3 |
Stock-based compensation | 7 | 6.3 | ||
Exercise of stock options | 0.7 | |||
Income tax windfall from stock-based awards, net | 1.6 | 6.2 | ||
Repurchase/surrender of common shares | (79.3) | (31.1) | ||
Issuance of shares related to directors’ deferred compensation | 0.2 | 0.5 | ||
Dividends to noncontrolling interest | (1.7) | (1.3) | ||
Cash dividends declared | (64.9) | (59.2) | ||
EQUITY, JUNE 30 | 1,936.5 | 2,006.2 | 1,936.5 | 2,006.2 |
Hubbell Shareholders’ Equity | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | 1,927.1 | 1,906.4 | ||
Total comprehensive income | 135.7 | 167.6 | ||
Stock-based compensation | 7 | 6.3 | ||
Exercise of stock options | 0.7 | |||
Income tax windfall from stock-based awards, net | 1.6 | 6.2 | ||
Repurchase/surrender of common shares | (79.3) | (31.1) | ||
Issuance of shares related to directors’ deferred compensation | 0.2 | 0.5 | ||
Cash dividends declared | (64.9) | (59.2) | ||
EQUITY, JUNE 30 | 1,927.4 | 1,997.4 | 1,927.4 | 1,997.4 |
Noncontrolling interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | 8.6 | 8.4 | ||
Total comprehensive income | 2.2 | 1.7 | ||
Dividends to noncontrolling interest | (1.7) | (1.3) | ||
EQUITY, JUNE 30 | $ 9.1 | $ 8.8 | $ 9.1 | $ 8.8 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Loss Changes in Accumulated Other Comprehensive Loss (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
BALANCE AT DECEMBER 31, 2014 | $ (164.3) |
Other comprehensive income (loss) before reclassifications | (9.5) |
Amounts reclassified from accumulated other comprehensive loss | 2.7 |
Current period other comprehensive income (loss) | (6.8) |
BALANCE AT JUNE 30, 2015 | (171.1) |
Cash flow hedge (loss) gain | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
BALANCE AT DECEMBER 31, 2014 | 0 |
Other comprehensive income (loss) before reclassifications | 0.8 |
Amounts reclassified from accumulated other comprehensive loss | (0.8) |
Current period other comprehensive income (loss) | 0 |
BALANCE AT JUNE 30, 2015 | 0 |
Unrealized gain (loss) on available-for- sale securities | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
BALANCE AT DECEMBER 31, 2014 | 0.3 |
Other comprehensive income (loss) before reclassifications | (0.1) |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Current period other comprehensive income (loss) | (0.1) |
BALANCE AT JUNE 30, 2015 | 0.2 |
Pension and post retirement benefit plan adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
BALANCE AT DECEMBER 31, 2014 | (124.7) |
Other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive loss | 3.5 |
Current period other comprehensive income (loss) | 3.5 |
BALANCE AT JUNE 30, 2015 | (121.2) |
Cumulative translation adjustment | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
BALANCE AT DECEMBER 31, 2014 | (39.9) |
Other comprehensive income (loss) before reclassifications | (10.2) |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Current period other comprehensive income (loss) | (10.2) |
BALANCE AT JUNE 30, 2015 | $ (50.1) |
Accumulated Other Comprehensi49
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
Cost of goods sold | $ 589.9 | $ 563.3 | $ 1,146.9 | $ 1,077.8 |
Income before income taxes | 118 | 136.4 | 212.8 | 232.5 |
Tax (expense) benefit | (36.7) | (45.6) | (68.1) | (76.4) |
(Loss) gain net of tax | (2.7) | |||
Cash flow hedge (loss) gain | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
Cost of goods sold | 0.4 | 0.2 | 1.1 | 0.6 |
Income before income taxes | 0.4 | 0.2 | 1.1 | 0.6 |
Tax (expense) benefit | (0.1) | (0.1) | (0.3) | (0.2) |
(Loss) gain net of tax | 0.3 | 0.1 | 0.8 | 0.4 |
Pension and post retirement benefit plan adjustment | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
Prior-service costs | 0.3 | 0.2 | 0.5 | 0.3 |
Actuarial gains/(losses) | (3) | (0.8) | (5.9) | (1.7) |
Income before income taxes | (2.7) | (0.6) | (5.4) | (1.4) |
Tax (expense) benefit | 0.9 | 0.2 | 1.9 | 0.5 |
(Loss) gain net of tax | (1.8) | (0.4) | (3.5) | (0.9) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
(Loss) gain net of tax | $ (1.5) | $ (0.3) | (2.7) | $ (0.5) |
Cash flow hedge (loss) gain | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
(Loss) gain net of tax | 0.8 | |||
Pension and post retirement benefit plan adjustment | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
(Loss) gain net of tax | $ (3.5) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Numerator: | ||||
Net income attributable to Hubbell | $ 80.1 | $ 90.2 | $ 142.5 | $ 154.4 |
Less: Earnings allocated to participating securities | 0.2 | 0.3 | 0.4 | 0.5 |
Net income available to common shareholders | $ 79.9 | $ 89.9 | $ 142.1 | $ 153.9 |
Denominator [Abstract] | ||||
Average number of common shares outstanding | 57.7 | 59 | 57.9 | 59 |
Potential dilutive common shares | 0.3 | 0.4 | 0.3 | 0.5 |
Average number of diluted shares outstanding | 58 | 59.4 | 58.2 | 59.5 |
Basic (USD per share) | $ 1.39 | $ 1.53 | $ 2.46 | $ 2.61 |
Diluted (USD per share) | $ 1.37 | $ 1.51 | $ 2.44 | $ 2.59 |
Earnings Per Share Narrative (D
Earnings Per Share Narrative (Details) - Jun. 30, 2015 - shares | Total | Total |
Performance Shares | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares excluded from the calculation of diluted earnings per share | 28,096 | 28,403 |
Pension and Other Benefits (Det
Pension and Other Benefits (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Jan. 31, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Pension Benefits | |||||
Components of net periodic benefit cost [Line Items] | |||||
Service cost | $ 4,500,000 | $ 3,800,000 | $ 9,000,000 | $ 7,500,000 | |
Interest cost | 10,100,000 | 10,200,000 | 20,200,000 | 20,400,000 | |
Expected return on plan assets | (13,400,000) | (11,300,000) | (26,600,000) | (22,600,000) | |
Amortization of prior service cost | 0 | 0 | 0 | 100,000 | |
Amortization of actuarial losses/(gains) | 3,000,000 | 900,000 | 5,900,000 | 1,800,000 | |
NET PERIODIC BENEFIT COST | 4,200,000 | 3,600,000 | 8,500,000 | 7,200,000 | |
Other Benefits | |||||
Components of net periodic benefit cost [Line Items] | |||||
Service cost | 0 | 0 | 0 | 0 | |
Interest cost | 300,000 | 400,000 | 600,000 | 600,000 | |
Expected return on plan assets | 0 | 0 | 0 | 0 | |
Amortization of prior service cost | (300,000) | (200,000) | (500,000) | (400,000) | |
Amortization of actuarial losses/(gains) | 0 | (100,000) | 0 | (100,000) | |
NET PERIODIC BENEFIT COST | $ 0 | $ 100,000 | 100,000 | $ 100,000 | |
Domestic Plan | |||||
Components of net periodic benefit cost [Line Items] | |||||
Contribution to defined benefit pension plans | $ 20,000,000 | 0 | |||
Foreign Plan | |||||
Components of net periodic benefit cost [Line Items] | |||||
Contribution to defined benefit pension plans | 1,700,000 | ||||
Defined benefit plan estimated total employer contributions in current fiscal year | $ 2,800,000 |
Guarantees (Details)
Guarantees (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Movement in Standard Product Warranty Accrual [Roll Forward] | |
BALANCE AT DECEMBER 31, 2014 | $ 13.7 |
Provision | 5.3 |
Expenditures/other | (5) |
BALANCE AT JUNE 30, 2015 | $ 14 |
Fair Value Measurement Financia
Fair Value Measurement Financial Assets and Liabilities by Hierarchy Level (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 217.8 | $ 365.9 |
Available for sale investments | 43.6 | 43 |
Trading securities | 9.9 | 8.9 |
Deferred compensation plan liabilities | (9.9) | (8.9) |
Derivatives: [Abstract] | ||
Forward exchange contracts | 0.6 | 0.7 |
Fair value, net asset (liability) | 262 | 409.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 217.8 | 365.9 |
Available for sale investments | 0 | 0 |
Trading securities | 9.9 | 8.9 |
Deferred compensation plan liabilities | (9.9) | (8.9) |
Derivatives: [Abstract] | ||
Forward exchange contracts | 0 | 0 |
Fair value, net asset (liability) | 217.8 | 365.9 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Available for sale investments | 43.6 | 43 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: [Abstract] | ||
Forward exchange contracts | 0.6 | 0.7 |
Fair value, net asset (liability) | $ 44.2 | $ 43.7 |
Fair Value Measurement Narrativ
Fair Value Measurement Narrative (Details) $ in Millions | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2015USD ($)forward_exchange_contrtact | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2010USD ($) | Dec. 31, 2008USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available for sale investments | $ 43.6 | $ 43 | |||
Trading securities | 9.9 | 8.9 | |||
Purchase of trading securities related to deferred compensation plans | 1 | $ 1.2 | |||
Proceeds from securities sold | $ 0.2 | $ 0.2 | |||
Number of foreign exchange contracts held | forward_exchange_contrtact | 18 | ||||
Derivative, notional amount | $ 1 | ||||
Unrealized gain (loss) on interest rate lock, recorded in accumulated other comprehensive loss | (0.4) | (0.4) | |||
Long-Term Debt | 597.8 | 597.6 | |||
Long-term debt, fair value | $ 638.6 | $ 645.1 | |||
Interest Rate Lock 2010 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss) on interest rate lock, recorded in accumulated other comprehensive loss | $ (1.6) | ||||
Interest Rate Lock 2008 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Unrealized gain (loss) on interest rate lock, recorded in accumulated other comprehensive loss | $ 1.2 |
Fair Value Measurement Derivati
Fair Value Measurement Derivative Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Dec. 31, 2014 |
Deferred taxes and other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward exchange contracts designated as cash flow hedges | $ 0.6 | $ 0.7 |
Fair Value Measurement Cash Flo
Fair Value Measurement Cash Flow Hedging Relationships (Details) - Forward exchange contract - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) | $ (0.7) | $ (0.5) | $ 0.8 | $ 0 |
Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain/(Loss) Reclassified into Earnings (Effective Portion) | $ 0.3 | $ 0.2 | $ 0.8 | $ 0.6 |
Restructuring Costs - By Segmen
Restructuring Costs - By Segment (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | $ 8.9 | $ 11.6 |
Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 5.4 | 8 |
Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 3.5 | 3.6 |
Electrical | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 8.4 | 10.4 |
Electrical | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 5.4 | 7.3 |
Electrical | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 3 | 3.1 |
Power | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 0.5 | 1.2 |
Power | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 0 | 0.7 |
Power | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | $ 0.5 | $ 0.5 |
Restructuring Costs - Reserve (
Restructuring Costs - Reserve (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total | Total |
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | $ 3.7 | |
Pre-tax Restructuring Costs | $ 8.9 | 11.6 |
Utilization and Foreign Exchange | (9.7) | |
Ending Accrued Restructuring Balance 6/30/15 | 5.6 | 5.6 |
Current Year Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 7.4 | |
Utilization and Foreign Exchange | (3) | |
Ending Accrued Restructuring Balance 6/30/15 | 4.4 | 4.4 |
Current Year Restructuring Actions | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 6.2 | |
Utilization and Foreign Exchange | (1.8) | |
Ending Accrued Restructuring Balance 6/30/15 | 4.4 | 4.4 |
Current Year Restructuring Actions | Asset write-downs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 0.9 | |
Utilization and Foreign Exchange | (0.9) | |
Ending Accrued Restructuring Balance 6/30/15 | 0 | 0 |
Current Year Restructuring Actions | Facility closure and other costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 0.3 | |
Utilization and Foreign Exchange | (0.3) | |
Ending Accrued Restructuring Balance 6/30/15 | 0 | 0 |
Prior Year Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 3.7 | |
Pre-tax Restructuring Costs | 4.2 | |
Utilization and Foreign Exchange | (6.7) | |
Ending Accrued Restructuring Balance 6/30/15 | 1.2 | 1.2 |
Prior Year Restructuring Actions | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 2.8 | |
Pre-tax Restructuring Costs | (0.1) | |
Utilization and Foreign Exchange | (2.2) | |
Ending Accrued Restructuring Balance 6/30/15 | 0.5 | 0.5 |
Prior Year Restructuring Actions | Asset write-downs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 0.2 | |
Utilization and Foreign Exchange | (0.2) | |
Ending Accrued Restructuring Balance 6/30/15 | 0 | 0 |
Prior Year Restructuring Actions | Facility closure and other costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0.9 | |
Pre-tax Restructuring Costs | 4.1 | |
Utilization and Foreign Exchange | (4.3) | |
Ending Accrued Restructuring Balance 6/30/15 | $ 0.7 | $ 0.7 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Costs (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | $ 20.4 | |
Costs incurred | 11.6 | $ 5.5 |
Remaining costs at 6/30/15 | 3.3 | |
Current Year Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 10.6 | |
Costs incurred | 7.4 | 0 |
Remaining costs at 6/30/15 | 3.2 | |
Current Year Restructuring Actions | Electrical | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 8.7 | |
Costs incurred | 6.2 | 0 |
Remaining costs at 6/30/15 | 2.5 | |
Current Year Restructuring Actions | Power | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 1.9 | |
Costs incurred | 1.2 | 0 |
Remaining costs at 6/30/15 | 0.7 | |
Prior Year Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 9.8 | |
Costs incurred | 4.2 | 5.5 |
Remaining costs at 6/30/15 | 0.1 | |
Prior Year Restructuring Actions | Electrical | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 9.8 | |
Costs incurred | 4.2 | 5.5 |
Remaining costs at 6/30/15 | 0.1 | |
Prior Year Restructuring Actions | Power | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 0 | |
Costs incurred | 0 | $ 0 |
Remaining costs at 6/30/15 | $ 0 |