Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 29, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Amendment Flag | false | |
Entity Registrant Name | HUBBELL INCORPORATED | |
Entity Central Index Key | 0000048898 | |
Entity Current Reporting Status | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Common Stock Shares Outstanding | 54,508,892 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 1,087.3 | $ 991.2 |
Cost of goods sold | 780 | 708.3 |
Gross profit | 307.3 | 282.9 |
Selling & administrative expenses | 186.4 | 183.3 |
Operating income | 120.9 | 99.6 |
Interest expense, net | (17.5) | (17.3) |
Other expense, net | (5.4) | (6.5) |
Total other expense | (22.9) | (23.8) |
Income before income taxes | 98 | 75.8 |
Provision for income taxes | 24.2 | 16 |
Net income | 73.8 | 59.8 |
Less: Net income attributable to noncontrolling interest | 1.5 | 1.5 |
Net income attributable to Hubbell | $ 72.3 | $ 58.3 |
Earnings per share | ||
Basic (USD per share) | $ 1.32 | $ 1.06 |
Diluted (USD per share) | 1.32 | 1.05 |
Cash dividends per common share (USD per share) | $ 0.84 | $ 0.77 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 73.8 | $ 59.8 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | 7.1 | 9.8 |
Defined benefit pension and post-retirement plans, net of taxes of ($0.5) and ($0.6) | 1.5 | 2 |
Unrealized gain (loss) on investments, net of taxes of ($0.1) and $0.0 | 0.3 | (0.3) |
Unrealized gain (loss) on cash flow hedges, net of taxes of $0.2 and ($0.2) | (0.6) | 0.6 |
Other comprehensive income | 8.3 | 12.1 |
Total comprehensive income | 82.1 | 71.9 |
Less: Comprehensive income attributable to noncontrolling interest | 1.5 | 1.5 |
Comprehensive income attributable to Hubbell | $ 80.6 | $ 70.4 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Pension and post-retirement benefit plans’ prior service costs and net actuarial gains, tax | $ (0.5) | $ (0.6) |
Unrealized gain or (loss) on investment, tax | (0.1) | 0 |
Unrealized gain (loss) on cash flow hedges, tax | $ 0.2 | $ (0.2) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 205.3 | $ 189 |
Short-term investments | 9.5 | 9.2 |
Accounts receivable, net | 716.2 | 725.4 |
Inventories, net | 663 | 651 |
Other current assets | 56.6 | 69.1 |
Total Current Assets | 1,650.6 | 1,643.7 |
Property, Plant, and Equipment, net | 504.5 | 502.1 |
Other Assets | ||
Investments | 57.5 | 56.3 |
Goodwill | 1,786.8 | 1,784.4 |
Intangible assets, net | 802.1 | 819.5 |
Other long-term assets | 174.6 | 66.1 |
TOTAL ASSETS | 4,976.1 | 4,872.1 |
Current Liabilities | ||
Short-term debt and current portion of long-term debt | 77.3 | 56.1 |
Accounts payable | 403.7 | 393.7 |
Accrued salaries, wages and employee benefits | 68.6 | 101.6 |
Accrued insurance | 70 | 61.3 |
Other accrued liabilities | 228.3 | 226.6 |
Total Current Liabilities | 847.9 | 839.3 |
Long-Term Debt | 1,731.5 | 1,737.1 |
Other Non-Current Liabilities | 569.8 | 496.8 |
TOTAL LIABILITIES | 3,149.2 | 3,073.2 |
Total Hubbell Shareholders’ Equity | 1,808.1 | 1,780.6 |
Noncontrolling interest | 18.8 | 18.3 |
Total Equity | 1,826.9 | 1,798.9 |
TOTAL LIABILITIES AND EQUITY | $ 4,976.1 | $ 4,872.1 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 73.8 | $ 59.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 36.6 | 39.3 |
Deferred income taxes | 3 | (1.4) |
Stock-based compensation | 4.1 | 5.1 |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
Decrease (increase) in accounts receivable, net | 10.1 | (46.9) |
Increase in inventories, net | (10.7) | (19.1) |
Increase (decrease) in accounts payable | 12.6 | (0.7) |
Decrease in current liabilities | (61.1) | (35.7) |
Changes in other assets and liabilities, net | 9.2 | (0.5) |
Contribution to qualified defined benefit pension plans | (0.1) | (0.5) |
Other, net | 0.6 | 0.2 |
Net cash (used) provided by operating activities | 78.1 | (0.4) |
Cash Flows from Investing Activities | ||
Capital expenditures | (23.3) | (22) |
Acquisition of businesses, net of cash acquired | 0 | (1,119.4) |
Purchases of available-for-sale investments | (1) | (5) |
Proceeds from available-for-sale investments | 2.7 | 5.7 |
Other, net | 1.5 | 0.9 |
Net cash used in investing activities | (20.1) | (1,139.8) |
Cash Flows from Financing Activities | ||
Long-term debt borrowings, net | (6.3) | 947.5 |
Short-term debt borrowings, net | 21.2 | 84.5 |
Payment of dividends | (45.8) | (42.2) |
Payment of dividends to noncontrolling interest | (1) | (1.1) |
Repurchase of common shares | (10) | 0 |
Debt issuance costs | 0 | (7.6) |
Other, net | (1.8) | (6.1) |
Net cash (used) provided by financing activities | (43.7) | 975 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 2 | 6.5 |
Increase (decrease) in cash and cash equivalents | 16.3 | (158.7) |
Cash and cash equivalents | ||
Beginning of period | 189 | 375 |
End of period | $ 205.3 | $ 216.3 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2019 | |
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 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 United States of America (“U.S.”) GAAP for audited 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 three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The balance sheet at December 31, 2018 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, 2018 . Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update (ASU 2016-02) related to the accounting and financial statement presentation for leases. This new guidance requires a lessee to recognize right-of-use ("ROU") assets and lease liabilities on the balance sheet, with an election to exempt leases with a term of twelve months or less. For those leases classified as operating leases, the lessee will recognize a straight-line lease expense, and for those leases classified as financing leases, the lessee will recognize interest expense and amortize the ROU asset. The Company adopted the requirements of the new standard as of January 1, 2019 and applied the modified retrospective approach, whereby the cumulative effect of adoption is recognized as of the date of adoption and comparative prior periods are not retrospectively adjusted. As a result, upon adoption, we have recognized ROU assets of $109.3 million and lease liabilities of $109.3 million associated with our operating leases. The standard had no material impact to retained earnings or on our Condensed Consolidated Statements of Income or Condensed Consolidated Statements of Cash Flows. We determine if an arrangement is a lease at inception. Operating leases are included as ROU assets within other long-term assets, other accrued liabilities, and other non-current liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other accrued liabilities, and other non-current liabilities. The Company's finance leases are immaterial. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. For leases existing as of January 1, 2019 we have elected to use the remaining lease term as of the adoption date in determining the incremental borrowing rate. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for our vehicle leases, we apply a portfolio approach regarding the assumed lease term. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carryforward the historical lease classification. We also elected a practical expedient to determine the reasonably certain lease term. Recent Accounting Pronouncements In February 2018, the FASB issued an Accounting Standards Update (ASU 2018-02) providing guidance on reclassifying certain tax effects in Accumulated Other Comprehensive Income (“AOCI”) following the enactment of the Tax Cuts and Job Act of 2017 ("TCJA") and a reduction of the corporate income tax rate from 35% to 21%. Specifically, the guidance permits a reclassification to retained earnings of the stranded tax effects in AOCI resulting from a revaluation of deferred taxes to the lower tax rate. The guidance is effective for fiscal years beginning after December 15, 2018 including interim periods within those annual periods. The stranded tax effects relate primarily to pension and other employee benefit plans and absent the ASU, the Company’s policy is to release stranded tax effects upon plan termination. The Company elected to reclassify these stranded tax effects in the first quarter of 2019, with the effect of decreasing AOCI and increasing retained earnings by approximately $30.0 million . In January 2017, the FASB issued an Accounting Standards Update (ASU 2017-04) “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019, although early adoption is permitted. The Company elected to early adopt this standard in the first quarter of 2019. The adoption of this standard had no material impact on our consolidated financial statements. In August 2017, The FASB issued an Accounting Standards Update (ASU 2017-12), "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". The standard requires certain changes in the presentation of hedge accounting in the financial statements and some new or modified disclosures. ASU 2017-12 is effective for periods beginning after December 15, 2018. The Company adopted the standard during the first quarter of 2019, with no material impact to the consolidated financial statements. In August 2018, the FASB issued an Accounting Standards Update (ASU 2018-15) "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", which clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective in the first quarter of fiscal 2020, and early adoption is permitted. The Company is currently assessing the impact of adopting this standard on its consolidated financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions in the Power segment recognized upon delivery of the product at the destination. Revenue from service contracts and post-shipment performance obligations are less than four percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the Power segment. Revenue from service contracts and post-shipment performance obligations is recognized when or as those obligations are satisfied. The Company primarily offers assurance-type standard warranties that do not represent separate performance obligations and on occasion will separately offer and price extended warranties that are separate performance obligations for which the associated revenue is recognized over-time based on the extended warranty period. The Company records amounts billed to customers for reimbursement of shipping and handling costs within revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold. Sales taxes and other usage-based taxes are excluded from revenue. Within the Electrical segment, certain businesses require a portion of the transaction price to be paid in advance of transfer of control. Advance payments are not considered a significant financing component as they are received less than one year before the related performance obligations are satisfied. In addition, in the Power segment, certain businesses offer annual maintenance service contracts that require payment at the beginning of the contract period. These payments are treated as a contract liability and are classified in Other accrued liabilities in the Condensed Consolidated Balance Sheet. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Condensed Consolidated Statement of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statement of Income on a straight-line basis over the expected term of the contract. The following table presents disaggregated revenue by business group: Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 in millions Electrical Power Total Net sales Hubbell Commercial and Industrial $ 221.3 $ 215.5 $ — $ — $ 221.3 $ 215.5 Hubbell Construction and Energy 188.4 186.4 — — 188.4 186.4 Hubbell Lighting 220.5 216.2 — — 220.5 216.2 Hubbell Power Systems — — 457.1 373.1 457.1 373.1 Total net sales $ 630.2 $ 618.1 $ 457.1 $ 373.1 $ 1,087.3 $ 991.2 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 in millions Electrical Power Total Net sales United States $ 565.7 $ 546.7 $ 431.2 $ 348.4 $ 996.9 $ 895.1 International 64.5 71.4 25.9 24.7 90.4 96.1 Total net sales $ 630.2 $ 618.1 $ 457.1 $ 373.1 $ 1,087.3 $ 991.2 Contract Balances Our contract liabilities consist of advance payments for products as well as deferred revenue on service obligations and extended warranties. The current portion of deferred revenue is included in Other accrued liabilities and the non-current portion of deferred revenue is included in Other non-current liabilities in the Condensed Consolidated Balance Sheet. Contract liabilities were $ 32.2 million as of March 31, 2019 compared to $ 27.7 million as of December 31, 2018. The $4.5 million increase in our contract liabilities balance was primarily due to timing of advance payments on certain orders, partially offset by the recognition of $7.3 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2019. The Company has an immaterial amount of contract assets relating to performance obligations satisfied prior to payment that is recorded in Other long-term assets in the Condensed Consolidated Balance Sheet. Impairment losses recognized on our receivables and contract assets were immaterial in the first quarter of 2019 . Unsatisfied Performance Obligations As of March 31, 2019 , the Company had approximately $500 million of unsatisfied performance obligations for contracts with an original expected length of greater than one year, primarily relating to long-term contracts of the Power segment to deliver and install meters. The Company expects that a majority of the unsatisfied performance obligations will be completed and recognized over the next 3 years. |
Business Acquisitions
Business Acquisitions | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions On February 2, 2018, the Company completed the acquisition of Meter Readings Holding Group, LLC ("Aclara Technologies" or "Aclara") for approximately $1.1 billion . Aclara is a leading global provider of smart infrastructure solutions for electric, gas, and water utilities with advanced metering solutions and grid monitoring sensor technology, as well as leading software enabled installation services. The acquisition was structured as a merger in which Aclara became a wholly owned indirect subsidiary of the Company. Aclara's businesses have been added to the Power segment. The acquisition extends the Power segment's capabilities into smart automation technologies, accelerates ongoing innovation efforts to address utility customer demand for data and integrated solutions, and expands the segment's reach to a broader set of utility customers. The Company financed the acquisition and related transactions with net proceeds from borrowings under a new unsecured term loan facility in the aggregate principal amount of $500 million , the issuance of 3.50% Senior Notes due 2028 in the aggregate principal amount of $450 million and issuances of commercial paper. Supplemental Pro-Forma Data Aclara’s results of operations have been included in the Company's financial statements for the period subsequent to the completion of the acquisition on February 2, 2018. Aclara contributed sales of approximately $90.4 million and an operating loss of approximately $4.9 million for the period from the completion of the acquisition through March 31, 2018. The following unaudited supplemental pro-forma information presents consolidated results as if the acquisition had been completed on January 1, 2017. The pro-forma results were calculated by combining the results of the Company with the stand-alone results of Aclara for the pre-acquisition periods. The unaudited supplemental pro-forma financial information does not reflect the actual performance of Aclara in the periods presented and does not reflect the potential realization of cost savings relating to the integration of the two companies. Further, the pro-forma data should not be considered indicative of the results that would have occurred if the acquisition and related financing had been consummated on January 1, 2017, nor are they indicative of future results. Pro-forma Three Months Ended March 31, 2018 Net sales $ 1,037.9 Net income attributable to Hubbell $ 67.7 Earnings Per Share: Basic $ 1.23 Diluted $ 1.22 |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's reporting segments consist of the Electrical segment and the Power segment. The Electrical segment comprises businesses that sell stock and custom products including standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, components and assemblies for the natural gas distribution market and other electrical equipment. The products are typically used in and around industrial, commercial and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies. In addition, certain businesses design and manufacture a variety of high voltage test and measurement equipment, industrial controls and communication systems used in the non-residential and industrial markets. Many of these products are designed such that they can also be used in harsh and hazardous locations where a potential for fire and explosion exists due to the presence of flammable gasses and vapors. Harsh and hazardous products are primarily used in the oil and gas (onshore and offshore) and mining industries. There are also a variety of lighting fixtures, wiring devices and electrical products that have residential and utility applications, including residential products with Internet-of-Things ("IoT") enabled technologies. These products are primarily sold through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms and residential product oriented internet sites. Special application products are primarily sold through wholesale distributors to contractors, industrial customers and OEMs. High voltage products are also sold direct to customers through our sales engineers. The Electrical segment comprises three business groups, which have been aggregated as they have similar long-term economic characteristics, customers and distribution channels, among other factors. The Power segment consists of operations that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical utility industry. In addition, certain of these products are used in the civil construction, water utility, and transportation industries. Products are sold to distributors and directly to users such as utilities, telecommunication companies, pipeline and mining operations, industrial firms, construction and engineering firms. The 2018 acquisition of Aclara expanded offerings, to include advanced metering infrastructure, meter and edge devices, software and infrastructure services, which are primarily sold to the electrical, water, and gas utility industries. The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2019 2018 2019 2018 2019 2018 Three Months Ended March 31, Electrical $ 630.2 $ 618.1 $ 68.6 $ 61.2 10.9 % 9.9 % Power 457.1 373.1 52.3 38.4 11.4 % 10.3 % TOTAL $ 1,087.3 $ 991.2 $ 120.9 $ 99.6 11.1 % 10.0 % |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2019 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories, net | Inventories, net Inventories, net are composed of the following (in millions): March 31, 2019 December 31, 2018 Raw material $ 228.0 $ 220.2 Work-in-process 115.8 110.3 Finished goods 401.4 402.3 745.2 732.8 Excess of FIFO over LIFO cost basis (82.2 ) (81.8 ) TOTAL $ 663.0 $ 651.0 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 , were as follows (in millions): Segment Electrical Power Total BALANCE DECEMBER 31, 2018 $ 714.1 $ 1,070.3 $ 1,784.4 Foreign currency translation 1.7 0.7 2.4 BALANCE MARCH 31, 2019 $ 715.8 $ 1,071.0 $ 1,786.8 The carrying value of other intangible assets included in Intangible assets, net in the Condensed Consolidated Balance Sheet is as follows (in millions): March 31, 2019 December 31, 2018 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 201.9 $ (58.2 ) $ 204.4 $ (58.6 ) Customer/agent relationships and other 834.2 (229.3 ) 833.0 (212.6 ) Total $ 1,036.1 $ (287.5 ) $ 1,037.4 $ (271.2 ) Indefinite-lived: Tradenames and other 53.5 — 53.3 — TOTAL $ 1,089.6 $ (287.5 ) $ 1,090.7 $ (271.2 ) Amortization expense associated with definite-lived intangible assets was $18.2 million and $15.4 million for the three months ended March 31, 2019 and 2018 , respectively. Future amortization expense associated with these intangible assets is expected to be $53.2 million for the remainder of 2019 , $70.7 million in 2020 , $69.0 million in 2021 , $63.6 million in 2022 , $58.9 million in 2023 , and $53.9 million in 2024 . |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities are composed of the following (in millions): March 31, 2019 December 31, 2018 Customer program incentives $ 29.6 $ 52.4 Accrued income taxes 5.5 3.4 Contract liabilities - deferred revenue 32.2 27.7 Customer refund liability 14.6 15.3 Accrued warranties 31.0 33.5 Other (a) 115.4 94.3 TOTAL $ 228.3 $ 226.6 (a) Other accrued liabilities as of March 31, 2019 includes $31.4 million of current operating lease liabilities related to the adoption of ASU 2016-02. Refer to Note 1 - Basis of Presentation, in the Notes to Condensed Consolidated Financial Statements for additional information. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 3 Months Ended |
Mar. 31, 2019 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities are composed of the following (in millions): March 31, 2019 December 31, 2018 Pensions $ 177.3 $ 177.0 Other post-retirement benefits 23.7 23.7 Deferred tax liabilities 124.2 120.0 Accrued warranties long-term 53.2 59.2 Other (a) 191.4 116.9 TOTAL $ 569.8 $ 496.8 (a) Other non-current liabilities as of March 31, 2019 includes $74.2 million of non-current operating lease liabilities related to the adoption of ASU 2016-02. Refer to Note 1 - Basis of Presentation, in the Notes to Condensed Consolidated Financial Statements for additional information. |
Total Equity
Total Equity | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Total Equity | Total Equity The following table shows the changes in stockholders' equity for the three months ended March 31, 2019 : (in millions, except per share amounts) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Hubbell Shareholders' Equity Non- controlling interest BALANCE AT DECEMBER 31, 2018 $ 0.6 $ 1.3 $ 2,064.4 $ (285.7 ) $ 1,780.6 $ 18.3 Net income 72.3 72.3 1.5 Other comprehensive (loss) income 8.3 8.3 Stock-based compensation 4.1 4.1 Reclassification of stranded tax effects 30.0 (30.0 ) — Acquisition/surrender of common shares (1) (5.3 ) (6.3 ) (11.6 ) Cash dividends declared ($0.84 per share) (45.7 ) (45.7 ) Dividends to noncontrolling interest — (1.0 ) Director's deferred compensation 0.1 0.1 BALANCE AT MARCH 31, 2019 $ 0.6 $ 0.2 $ 2,114.7 $ (307.4 ) $ 1,808.1 $ 18.8 The following table shows the changes in stockholders' equity for the three months ended March 31, 2018 : (in millions, except per share amounts) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Hubbell Shareholders' Equity Non- controlling interest BALANCE AT DECEMBER 31, 2017 $ 0.6 $ 11.0 $ 1,892.4 $ (269.8 ) $ 1,634.2 $ 13.7 Net income 58.3 58.3 1.5 Other comprehensive (loss) income 12.1 12.1 Stock-based compensation 5.1 5.1 ASC 606 adoption to retained earnings 0.6 0.6 Acquisition/surrender of common shares (1) (6.1 ) — (6.1 ) Cash dividends declared ($0.77 per share) (42.3 ) (42.3 ) Dividends to noncontrolling interest — (1.1 ) Aclara noncontrolling interest — 2.4 Director's deferred compensation 0.1 0.1 BALANCE AT March 31, 2018 $ 0.6 $ 10.1 $ 1,909.0 $ (257.7 ) $ 1,662.0 $ 16.5 (1) For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against Common Stock par value, Additional paid-in capital, to the extent available, and Retained earnings. The change in Retained earnings of $6.3 million , and zero in 2019, and 2018, respectively, reflects this accounting treatment. The detailed components of total comprehensive income are presented in the Condensed Consolidated Statement of Comprehensive Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 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, 2018 $ 0.8 $ (2.0 ) $ (158.7 ) $ (125.8 ) $ (285.7 ) Other comprehensive income (loss) before reclassifications (0.3 ) 0.3 — 7.1 7.1 Amounts reclassified from accumulated other comprehensive loss (0.3 ) — 1.5 — 1.2 Current period other comprehensive income (loss) (0.6 ) 0.3 1.5 7.1 8.3 Reclassification of stranded tax effects — — (30.0 ) — (30.0 ) BALANCE AT MARCH 31, 2019 $ 0.2 $ (1.7 ) $ (187.2 ) $ (118.7 ) $ (307.4 ) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.2 $ — Net sales 0.3 (0.2 ) Cost of goods sold 0.5 (0.2 ) Total before tax (0.2 ) — Tax benefit (expense) $ 0.3 $ (0.2 ) Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.2 $ 0.2 (a) Actuarial gains/(losses) (2.2 ) (2.8 ) (a) (2.0 ) (2.6 ) Total before tax 0.5 0.6 Tax benefit (expense) $ (1.5 ) $ (2.0 ) Gain (loss) net of tax Losses reclassified into earnings $ (1.2 ) $ (2.2 ) Gain (loss) net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12 – Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2019 | |
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 awards granted by the Company are considered participating securities as these awards contain a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three months ended March 31, 2019 and 2018 (in millions, except per share amounts): Three Months Ended March 31, 2019 2018 Numerator: Net income attributable to Hubbell $ 72.3 $ 58.3 Less: Earnings allocated to participating securities (0.3 ) (0.2 ) Net income available to common shareholders $ 72.0 $ 58.1 Denominator: Average number of common shares outstanding 54.4 54.7 Potential dilutive common shares 0.2 0.4 Average number of diluted shares outstanding 54.6 55.1 Earnings per share: Basic $ 1.32 $ 1.06 Diluted $ 1.32 $ 1.05 The Company did not have outstanding any significant anti-dilutive securities during the three months ended March 31, 2019 and 2018 . |
Pension and Other Benefits
Pension and Other Benefits | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 (in millions): Pension Benefits Other Benefits 2019 2018 2019 2018 Three Months Ended March 31, Service cost $ 0.5 $ 1.1 $ — $ — Interest cost 8.7 8.6 0.3 0.2 Expected return on plan assets (7.6 ) (8.5 ) — — Amortization of prior service cost — — (0.2 ) (0.2 ) Amortization of actuarial losses 2.2 2.8 — — NET PERIODIC BENEFIT COST $ 3.8 $ 4.0 $ 0.1 $ — Employer Contributions Although not required by ERISA and the Internal Revenue Code, the Company may elect to make a voluntary contribution to its qualified domestic defined benefit pension plan in 2019. The Company anticipates making required contributions of approximately $0.5 million to its foreign pension plans during 2019 , of which $ 0.1 million has been contributed through March 31, 2019 . |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2019 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees 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 March 31, 2019 and December 31, 2018 , the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product warranties that cover defects 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 three months ended March 31, 2019 and 2018 are set forth below (in millions): 2019 2018 BALANCE AT JANUARY 1, $ 92.7 $ 14.0 Provision (a) 3.5 3.2 Expenditures/other (12.0 ) (4.5 ) Acquisitions (b) — 44.4 BALANCE AT MARCH 31, $ 84.2 $ 57.1 (a) Refer to Note 7 – Other Accrued Liabilities and Note 8 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. (b) The acquisition amount disclosed relates to the Aclara acquisition. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Investments At March 31, 2019 and December 31, 2018 , the Company had $49.8 million and $51.2 million , respectively, of available-for-sale securities, consisting of municipal bonds classified in Level 2 of the fair value hierarchy and an investment in the redeemable preferred stock of a privately-held electrical utility substation security provider classified in Level 3 of the fair value hierarchy. The Company also had $17.2 million of trading securities at March 31, 2019 and $14.3 million at December 31, 2018 that 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. Fair value measurements 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 March 31, 2019 and December 31, 2018 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total March 31, 2019 Money market funds (a) $ 24.8 $ — $ — $ 24.8 Time Deposits (a) — 21.3 — 21.3 Available for sale investments — 47.3 2.5 49.8 Trading securities 17.2 — — 17.2 Deferred compensation plan liabilities (17.2 ) — — (17.2 ) Derivatives: Forward exchange contracts-Assets (b) — 0.8 — 0.8 Forward exchange contracts-(Liabilities) (c) — (0.1 ) — (0.1 ) TOTAL $ 24.8 $ 69.3 $ 2.5 $ 96.6 Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total December 31, 2018 Money market funds (a) $ 15.1 $ — $ — $ 15.1 Time Deposits (a) — 20.9 — 20.9 Available for sale investments — 48.9 2.3 51.2 Trading securities 14.3 — — 14.3 Deferred compensation plan liabilities (14.3 ) — — (14.3 ) Derivatives: Forward exchange contracts-Assets (b) — 1.6 — 1.6 Forward exchange contracts-(Liabilities) (c) — — — — TOTAL $ 15.1 $ 71.4 $ 2.3 $ 88.8 (a) Money market funds and time deposits are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheet. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheet. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheet. The methods and assumptions used to estimate the Level 2 and Level 3 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. Available-for-sale municipal bonds classified in Level 2 – 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. Available-for-sale redeemable preferred stock classified in Level 3 – The fair value of the available-for-sale investment in redeemable preferred stock is valued based on a discounted cash flow model, using significant unobservable inputs, including expected cash flows and the discount rate. 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. The Company purchased $2.2 million and $1.6 million of trading securities related to these deferred compensation plans during the three months ended March 31, 2019 and 2018 . As a result of participant distributions, the Company sold $0.6 million of these trading securities during the three months ended March 31, 2019 and $0.4 million during the three months ended March 31, 2018 . 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. In 2019 and 2018 , the Company entered into a series of forward exchange contracts to purchase U.S. dollars in order to hedge exposure to fluctuating rates of exchange for both anticipated inventory purchases and forecasted sales by its subsidiaries that transact business in Canada. As of March 31, 2019 , the Company had 35 individual forward exchange contracts for an aggregate notional amount of $38.4 million , having various expiration dates through March 2020. These contracts have been designated as cash flow hedges in accordance with the accounting guidance for derivatives. The following table summarizes the results of cash flow hedging relationships for the three months ended March 31, 2019 and 2018 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Income (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) Derivative Instrument 2019 2018 (Effective Portion) 2019 2018 Forward exchange contract $ (0.3 ) $ 0.4 Net sales $ 0.1 $ — Cost of goods sold $ 0.2 $ (0.2 ) Long Term Debt As of March 31, 2019 and December 31, 2018 , the carrying value of the long-term debt including the $25.0 million current portion of the Term Loan was $1,756.5 million and $1,762.1 million , respectively. The estimated fair value of the long-term debt as of March 31, 2019 and December 31, 2018 was $1,732.8 million and $1,688.1 million , respectively, using quoted market prices in active markets for similar liabilities (Level 2). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2019 | |
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 advice of outside legal counsel and, if applicable, other experts. As previously reported, in the fourth quarter of 2016, the Company recorded a charge of $12.5 million in Cost of goods sold representing the estimated withdrawal liability from one of the multi-employer pension plans in which it participated. Depending on actions of third parties, including bankruptcy or withdrawals from the multi-employer plan of the remaining participants under terms customary to multi-employer plans, it is possible that the Company could in the future be subject to certain additional liabilities associated with its participation and withdraw from the multi-employer pension plan, which the Company estimated could be up to an additional $23 million as of March 31, 2019. In connection therewith, on October 4, 2018, the trustees of the plan demanded an additional payment of $23.3 million . The Company disputes the trustees' demand and on October 4, 2018, the Company commenced an arbitration proceeding with respect thereto. In March 2019, the remaining employer in the multi-employer pension plan filed for protection under Chapter 11 of the United States Bankruptcy Code inducing a stay of the arbitration. The Company intends to continue to pursue arbitration pending the outcome of the bankruptcy proceedings. |
Restructuring Costs and Other
Restructuring Costs and Other | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs and Other | Restructuring Costs and Other In the three months ended March 31, 2019 , we incurred costs for restructuring actions initiated in 2019 as well as costs for 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 and the sale or exit of business units we determine to be non-strategic. Restructuring costs include severance and employee benefits, asset impairments, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. These costs are predominantly settled in cash from our operating activities and are generally settled within one year, with the exception of asset impairments, which are non-cash, and the liability associated with our withdrawal from a multi-employer pension plan, which may be settled either in periodic payments over approximately 19 years, or in a lump sum, subject to negotiation. Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statement of Income for the three months ended March 31, 2019 and 2018 is as follows (in millions): Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 0.2 $ 0.8 $ 1.0 $ (0.1 ) $ 1.2 $ 0.7 Power Segment 0.5 — 1.3 — 1.8 — Total Pre-Tax Restructuring Costs $ 0.7 $ 0.8 $ 2.3 $ (0.1 ) $ 3.0 $ 0.7 The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Restructuring Balance 1/1/19 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 3/31/2019 2019 Restructuring Actions Severance $ — $ 1.8 $ (0.5 ) $ 1.3 Asset write-downs — — — — Facility closure and other costs — 0.7 (0.6 ) 0.1 Total 2019 Restructuring Actions $ — $ 2.5 $ (1.1 ) $ 1.4 2018 and Prior Restructuring Actions Severance $ 7.7 $ 0.1 $ (2.5 ) $ 5.3 Asset write-downs — — — — Facility closure and other costs (a) 13.3 0.4 (0.8 ) 12.9 Total 2018 and Prior Restructuring Actions $ 21.0 $ 0.5 $ (3.3 ) $ 18.2 Total Restructuring Actions $ 21.0 $ 3.0 $ (4.4 ) $ 19.6 (a) The beginning and ending accrual of Facility closure and other costs includes the balance of accrued liability associated with the withdrawal from a multi-employer pension plan as a result of a restructuring action in 2016 that is settled over multiple years. The actual costs incurred and total expected cost of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2018 Costs incurred during first three months of 2019 Remaining costs at 3/31/2019 2019 Restructuring Actions Electrical Segment $ 1.2 $ — $ 1.1 $ 0.1 Power Segment 1.4 — 1.4 — Total 2019 Restructuring Actions $ 2.6 $ — $ 2.5 $ 0.1 2018 and Prior Restructuring Actions Electrical Segment $ 14.3 $ 8.3 $ 0.1 $ 5.9 Power Segment 5.1 3.7 0.4 1.0 Total 2018 and Prior Restructuring Actions (a) $ 19.4 $ 12.0 $ 0.5 $ 6.9 Total Restructuring Actions $ 22.0 $ 12.0 $ 3.0 $ 7.0 (a) Remaining costs at 3/31/2019 associated with 2018 and prior restructuring actions do not include any potential future liability associated with the withdrawal from a multi-employer pension plan, refer to Note 15 — Commitments and Contingencies. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases We have operating leases for office space, certain manufacturing facilities, office and manufacturing equipment, and vehicles. Our finance leases are not material. The term of these leases is generally 10 years or less, in some cases with options to extend the term for up to 5 years, or options to terminate after one year without penalty. In general, our vehicle lease payments contain a monthly base rent payment which is adjusted based on changes to the LIBOR rate over the lease term. Certain other lease agreements contain variable payments related to a consumer price index or similar metric. Any change in payment amounts as a result of a change in a rate or index are considered variable lease payments and recognized as profit or loss when incurred. Rent expense for operating leases in the Condensed Consolidated Statement of Income for the three months ended March 31, 2019 is $9.6 million . Cash paid for operating leases during the three months ended March 31, 2019 was $8.5 million and reported as cash outflows from operating activities in the Condensed Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations during the three months ended March 31, 2019 was $2.2 million . Amounts recognized for operating leases in the Condensed Consolidated Balance Sheet is as follows: (in millions) March 31, 2019 Operating lease right-of-use assets $ 102.1 TOTAL ASSETS $ 102.1 Other accrued liabilities $ 31.4 Other Non-Current Liabilities 74.2 TOTAL LIABILITIES $ 105.6 The weighted average remaining lease term as of March 31, 2019 for operating leases was 5 years . The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 3.8% as of March 31, 2019 . Future maturities of our operating lease liabilities are as follows: 2019 2020 2021 2022 2023 Thereafter Total Payments Imputed Interest Total Operating Leases 26.0 27.8 19.1 11.8 11.0 20.9 116.6 (11.0 ) $ 105.6 |
Leases | Leases We have operating leases for office space, certain manufacturing facilities, office and manufacturing equipment, and vehicles. Our finance leases are not material. The term of these leases is generally 10 years or less, in some cases with options to extend the term for up to 5 years, or options to terminate after one year without penalty. In general, our vehicle lease payments contain a monthly base rent payment which is adjusted based on changes to the LIBOR rate over the lease term. Certain other lease agreements contain variable payments related to a consumer price index or similar metric. Any change in payment amounts as a result of a change in a rate or index are considered variable lease payments and recognized as profit or loss when incurred. Rent expense for operating leases in the Condensed Consolidated Statement of Income for the three months ended March 31, 2019 is $9.6 million . Cash paid for operating leases during the three months ended March 31, 2019 was $8.5 million and reported as cash outflows from operating activities in the Condensed Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations during the three months ended March 31, 2019 was $2.2 million . Amounts recognized for operating leases in the Condensed Consolidated Balance Sheet is as follows: (in millions) March 31, 2019 Operating lease right-of-use assets $ 102.1 TOTAL ASSETS $ 102.1 Other accrued liabilities $ 31.4 Other Non-Current Liabilities 74.2 TOTAL LIABILITIES $ 105.6 The weighted average remaining lease term as of March 31, 2019 for operating leases was 5 years . The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 3.8% as of March 31, 2019 . Future maturities of our operating lease liabilities are as follows: 2019 2020 2021 2022 2023 Thereafter Total Payments Imputed Interest Total Operating Leases 26.0 27.8 19.1 11.8 11.0 20.9 116.6 (11.0 ) $ 105.6 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited condensed consolidated financial statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references 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 United States of America (“U.S.”) GAAP for audited 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 three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019 . The balance sheet at December 31, 2018 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, 2018 . |
Leases | Leases In February 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update (ASU 2016-02) related to the accounting and financial statement presentation for leases. This new guidance requires a lessee to recognize right-of-use ("ROU") assets and lease liabilities on the balance sheet, with an election to exempt leases with a term of twelve months or less. For those leases classified as operating leases, the lessee will recognize a straight-line lease expense, and for those leases classified as financing leases, the lessee will recognize interest expense and amortize the ROU asset. The Company adopted the requirements of the new standard as of January 1, 2019 and applied the modified retrospective approach, whereby the cumulative effect of adoption is recognized as of the date of adoption and comparative prior periods are not retrospectively adjusted. As a result, upon adoption, we have recognized ROU assets of $109.3 million and lease liabilities of $109.3 million associated with our operating leases. The standard had no material impact to retained earnings or on our Condensed Consolidated Statements of Income or Condensed Consolidated Statements of Cash Flows. We determine if an arrangement is a lease at inception. Operating leases are included as ROU assets within other long-term assets, other accrued liabilities, and other non-current liabilities in our consolidated balance sheets. Finance leases are included in property and equipment, other accrued liabilities, and other non-current liabilities. The Company's finance leases are immaterial. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use the implicit rate when readily determinable. For leases existing as of January 1, 2019 we have elected to use the remaining lease term as of the adoption date in determining the incremental borrowing rate. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for our vehicle leases, we apply a portfolio approach regarding the assumed lease term. We have elected the package of practical expedients permitted under the transition guidance within the new standard, which among other things, allows us to carryforward the historical lease classification. We also elected a practical expedient to determine the reasonably certain lease term. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In February 2018, the FASB issued an Accounting Standards Update (ASU 2018-02) providing guidance on reclassifying certain tax effects in Accumulated Other Comprehensive Income (“AOCI”) following the enactment of the Tax Cuts and Job Act of 2017 ("TCJA") and a reduction of the corporate income tax rate from 35% to 21%. Specifically, the guidance permits a reclassification to retained earnings of the stranded tax effects in AOCI resulting from a revaluation of deferred taxes to the lower tax rate. The guidance is effective for fiscal years beginning after December 15, 2018 including interim periods within those annual periods. The stranded tax effects relate primarily to pension and other employee benefit plans and absent the ASU, the Company’s policy is to release stranded tax effects upon plan termination. The Company elected to reclassify these stranded tax effects in the first quarter of 2019, with the effect of decreasing AOCI and increasing retained earnings by approximately $30.0 million . In January 2017, the FASB issued an Accounting Standards Update (ASU 2017-04) “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. ASU 2017-04 is effective for annual or interim goodwill impairment tests performed in fiscal years beginning after December 15, 2019, although early adoption is permitted. The Company elected to early adopt this standard in the first quarter of 2019. The adoption of this standard had no material impact on our consolidated financial statements. In August 2017, The FASB issued an Accounting Standards Update (ASU 2017-12), "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities". The standard requires certain changes in the presentation of hedge accounting in the financial statements and some new or modified disclosures. ASU 2017-12 is effective for periods beginning after December 15, 2018. The Company adopted the standard during the first quarter of 2019, with no material impact to the consolidated financial statements. In August 2018, the FASB issued an Accounting Standards Update (ASU 2018-15) "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", which clarifies the accounting for implementation costs in cloud computing arrangements. ASU 2018-15 is effective in the first quarter of fiscal 2020, and early adoption is permitted. The Company is currently assessing the impact of adopting this standard on its consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue by business group | The following table presents disaggregated revenue by business group: Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 in millions Electrical Power Total Net sales Hubbell Commercial and Industrial $ 221.3 $ 215.5 $ — $ — $ 221.3 $ 215.5 Hubbell Construction and Energy 188.4 186.4 — — 188.4 186.4 Hubbell Lighting 220.5 216.2 — — 220.5 216.2 Hubbell Power Systems — — 457.1 373.1 457.1 373.1 Total net sales $ 630.2 $ 618.1 $ 457.1 $ 373.1 $ 1,087.3 $ 991.2 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 in millions Electrical Power Total Net sales United States $ 565.7 $ 546.7 $ 431.2 $ 348.4 $ 996.9 $ 895.1 International 64.5 71.4 25.9 24.7 90.4 96.1 Total net sales $ 630.2 $ 618.1 $ 457.1 $ 373.1 $ 1,087.3 $ 991.2 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of pro forma information | The following unaudited supplemental pro-forma information presents consolidated results as if the acquisition had been completed on January 1, 2017. The pro-forma results were calculated by combining the results of the Company with the stand-alone results of Aclara for the pre-acquisition periods. The unaudited supplemental pro-forma financial information does not reflect the actual performance of Aclara in the periods presented and does not reflect the potential realization of cost savings relating to the integration of the two companies. Further, the pro-forma data should not be considered indicative of the results that would have occurred if the acquisition and related financing had been consummated on January 1, 2017, nor are they indicative of future results. Pro-forma Three Months Ended March 31, 2018 Net sales $ 1,037.9 Net income attributable to Hubbell $ 67.7 Earnings Per Share: Basic $ 1.23 Diluted $ 1.22 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of segment information | The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2019 2018 2019 2018 2019 2018 Three Months Ended March 31, Electrical $ 630.2 $ 618.1 $ 68.6 $ 61.2 10.9 % 9.9 % Power 457.1 373.1 52.3 38.4 11.4 % 10.3 % TOTAL $ 1,087.3 $ 991.2 $ 120.9 $ 99.6 11.1 % 10.0 % |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Schedule of inventories, net | Inventories, net are composed of the following (in millions): March 31, 2019 December 31, 2018 Raw material $ 228.0 $ 220.2 Work-in-process 115.8 110.3 Finished goods 401.4 402.3 745.2 732.8 Excess of FIFO over LIFO cost basis (82.2 ) (81.8 ) TOTAL $ 663.0 $ 651.0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | Changes in the carrying values of goodwill for the three months ended March 31, 2019 , were as follows (in millions): Segment Electrical Power Total BALANCE DECEMBER 31, 2018 $ 714.1 $ 1,070.3 $ 1,784.4 Foreign currency translation 1.7 0.7 2.4 BALANCE MARCH 31, 2019 $ 715.8 $ 1,071.0 $ 1,786.8 |
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): March 31, 2019 December 31, 2018 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 201.9 $ (58.2 ) $ 204.4 $ (58.6 ) Customer/agent relationships and other 834.2 (229.3 ) 833.0 (212.6 ) Total $ 1,036.1 $ (287.5 ) $ 1,037.4 $ (271.2 ) Indefinite-lived: Tradenames and other 53.5 — 53.3 — TOTAL $ 1,089.6 $ (287.5 ) $ 1,090.7 $ (271.2 ) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Schedule of other accrued liabilities | Other accrued liabilities are composed of the following (in millions): March 31, 2019 December 31, 2018 Customer program incentives $ 29.6 $ 52.4 Accrued income taxes 5.5 3.4 Contract liabilities - deferred revenue 32.2 27.7 Customer refund liability 14.6 15.3 Accrued warranties 31.0 33.5 Other (a) 115.4 94.3 TOTAL $ 228.3 $ 226.6 (a) Other accrued liabilities as of March 31, 2019 includes $31.4 million of current operating lease liabilities related to the adoption of ASU 2016-02. Refer to Note 1 - Basis of Presentation, in the Notes to Condensed Consolidated Financial Statements for additional information. |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Summary of other non-current liabilities | Other non-current liabilities are composed of the following (in millions): March 31, 2019 December 31, 2018 Pensions $ 177.3 $ 177.0 Other post-retirement benefits 23.7 23.7 Deferred tax liabilities 124.2 120.0 Accrued warranties long-term 53.2 59.2 Other (a) 191.4 116.9 TOTAL $ 569.8 $ 496.8 (a) Other non-current liabilities as of March 31, 2019 includes $74.2 million of non-current operating lease liabilities related to the adoption of ASU 2016-02. Refer to Note 1 - Basis of Presentation, in the Notes to Condensed Consolidated Financial Statements for additional information. |
Total Equity (Tables)
Total Equity (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stockholders equity | The following table shows the changes in stockholders' equity for the three months ended March 31, 2019 : (in millions, except per share amounts) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Hubbell Shareholders' Equity Non- controlling interest BALANCE AT DECEMBER 31, 2018 $ 0.6 $ 1.3 $ 2,064.4 $ (285.7 ) $ 1,780.6 $ 18.3 Net income 72.3 72.3 1.5 Other comprehensive (loss) income 8.3 8.3 Stock-based compensation 4.1 4.1 Reclassification of stranded tax effects 30.0 (30.0 ) — Acquisition/surrender of common shares (1) (5.3 ) (6.3 ) (11.6 ) Cash dividends declared ($0.84 per share) (45.7 ) (45.7 ) Dividends to noncontrolling interest — (1.0 ) Director's deferred compensation 0.1 0.1 BALANCE AT MARCH 31, 2019 $ 0.6 $ 0.2 $ 2,114.7 $ (307.4 ) $ 1,808.1 $ 18.8 The following table shows the changes in stockholders' equity for the three months ended March 31, 2018 : (in millions, except per share amounts) Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Hubbell Shareholders' Equity Non- controlling interest BALANCE AT DECEMBER 31, 2017 $ 0.6 $ 11.0 $ 1,892.4 $ (269.8 ) $ 1,634.2 $ 13.7 Net income 58.3 58.3 1.5 Other comprehensive (loss) income 12.1 12.1 Stock-based compensation 5.1 5.1 ASC 606 adoption to retained earnings 0.6 0.6 Acquisition/surrender of common shares (1) (6.1 ) — (6.1 ) Cash dividends declared ($0.77 per share) (42.3 ) (42.3 ) Dividends to noncontrolling interest — (1.1 ) Aclara noncontrolling interest — 2.4 Director's deferred compensation 0.1 0.1 BALANCE AT March 31, 2018 $ 0.6 $ 10.1 $ 1,909.0 $ (257.7 ) $ 1,662.0 $ 16.5 (1) For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against Common Stock par value, Additional paid-in capital, to the extent available, and Retained earnings. The change in Retained earnings of $6.3 million , and zero in 2019, and 2018, respectively, reflects this accounting treatment. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 three months ended March 31, 2019 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, 2018 $ 0.8 $ (2.0 ) $ (158.7 ) $ (125.8 ) $ (285.7 ) Other comprehensive income (loss) before reclassifications (0.3 ) 0.3 — 7.1 7.1 Amounts reclassified from accumulated other comprehensive loss (0.3 ) — 1.5 — 1.2 Current period other comprehensive income (loss) (0.6 ) 0.3 1.5 7.1 8.3 Reclassification of stranded tax effects — — (30.0 ) — (30.0 ) BALANCE AT MARCH 31, 2019 $ 0.2 $ (1.7 ) $ (187.2 ) $ (118.7 ) $ (307.4 ) |
Reclassifications out of accumulated other comprehensive income | A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components Three Months Ended March 31, 2019 Three Months Ended March 31, 2018 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.2 $ — Net sales 0.3 (0.2 ) Cost of goods sold 0.5 (0.2 ) Total before tax (0.2 ) — Tax benefit (expense) $ 0.3 $ (0.2 ) Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.2 $ 0.2 (a) Actuarial gains/(losses) (2.2 ) (2.8 ) (a) (2.0 ) (2.6 ) Total before tax 0.5 0.6 Tax benefit (expense) $ (1.5 ) $ (2.0 ) Gain (loss) net of tax Losses reclassified into earnings $ (1.2 ) $ (2.2 ) Gain (loss) net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12 – Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 (in millions, except per share amounts): Three Months Ended March 31, 2019 2018 Numerator: Net income attributable to Hubbell $ 72.3 $ 58.3 Less: Earnings allocated to participating securities (0.3 ) (0.2 ) Net income available to common shareholders $ 72.0 $ 58.1 Denominator: Average number of common shares outstanding 54.4 54.7 Potential dilutive common shares 0.2 0.4 Average number of diluted shares outstanding 54.6 55.1 Earnings per share: Basic $ 1.32 $ 1.06 Diluted $ 1.32 $ 1.05 |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 months ended March 31, 2019 and 2018 (in millions): Pension Benefits Other Benefits 2019 2018 2019 2018 Three Months Ended March 31, Service cost $ 0.5 $ 1.1 $ — $ — Interest cost 8.7 8.6 0.3 0.2 Expected return on plan assets (7.6 ) (8.5 ) — — Amortization of prior service cost — — (0.2 ) (0.2 ) Amortization of actuarial losses 2.2 2.8 — — NET PERIODIC BENEFIT COST $ 3.8 $ 4.0 $ 0.1 $ — |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Standard Product Warranty Disclosure [Abstract] | |
Schedule of product warranty liability | Changes in the accrual for product warranties during the three months ended March 31, 2019 and 2018 are set forth below (in millions): 2019 2018 BALANCE AT JANUARY 1, $ 92.7 $ 14.0 Provision (a) 3.5 3.2 Expenditures/other (12.0 ) (4.5 ) Acquisitions (b) — 44.4 BALANCE AT MARCH 31, $ 84.2 $ 57.1 (a) Refer to Note 7 – Other Accrued Liabilities and Note 8 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. (b) The acquisition amount disclosed relates to the Aclara acquisition. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 and December 31, 2018 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total March 31, 2019 Money market funds (a) $ 24.8 $ — $ — $ 24.8 Time Deposits (a) — 21.3 — 21.3 Available for sale investments — 47.3 2.5 49.8 Trading securities 17.2 — — 17.2 Deferred compensation plan liabilities (17.2 ) — — (17.2 ) Derivatives: Forward exchange contracts-Assets (b) — 0.8 — 0.8 Forward exchange contracts-(Liabilities) (c) — (0.1 ) — (0.1 ) TOTAL $ 24.8 $ 69.3 $ 2.5 $ 96.6 Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total December 31, 2018 Money market funds (a) $ 15.1 $ — $ — $ 15.1 Time Deposits (a) — 20.9 — 20.9 Available for sale investments — 48.9 2.3 51.2 Trading securities 14.3 — — 14.3 Deferred compensation plan liabilities (14.3 ) — — (14.3 ) Derivatives: Forward exchange contracts-Assets (b) — 1.6 — 1.6 Forward exchange contracts-(Liabilities) (c) — — — — TOTAL $ 15.1 $ 71.4 $ 2.3 $ 88.8 (a) Money market funds and time deposits are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheet. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheet. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheet. |
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 March 31, 2019 and 2018 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Income (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) Derivative Instrument 2019 2018 (Effective Portion) 2019 2018 Forward exchange contract $ (0.3 ) $ 0.4 Net sales $ 0.1 $ — Cost of goods sold $ 0.2 $ (0.2 ) |
Restructuring Costs and Other (
Restructuring Costs and Other (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring costs | The actual costs incurred and total expected cost of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2018 Costs incurred during first three months of 2019 Remaining costs at 3/31/2019 2019 Restructuring Actions Electrical Segment $ 1.2 $ — $ 1.1 $ 0.1 Power Segment 1.4 — 1.4 — Total 2019 Restructuring Actions $ 2.6 $ — $ 2.5 $ 0.1 2018 and Prior Restructuring Actions Electrical Segment $ 14.3 $ 8.3 $ 0.1 $ 5.9 Power Segment 5.1 3.7 0.4 1.0 Total 2018 and Prior Restructuring Actions (a) $ 19.4 $ 12.0 $ 0.5 $ 6.9 Total Restructuring Actions $ 22.0 $ 12.0 $ 3.0 $ 7.0 (a) Remaining costs at 3/31/2019 associated with 2018 and prior restructuring actions do not include any potential future liability associated with the withdrawal from a multi-employer pension plan, refer to Note 15 — Commitments and Contingencies. Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statement of Income for the three months ended March 31, 2019 and 2018 is as follows (in millions): Three Months Ended March 31, 2019 2018 2019 2018 2019 2018 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 0.2 $ 0.8 $ 1.0 $ (0.1 ) $ 1.2 $ 0.7 Power Segment 0.5 — 1.3 — 1.8 — Total Pre-Tax Restructuring Costs $ 0.7 $ 0.8 $ 2.3 $ (0.1 ) $ 3.0 $ 0.7 |
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 1/1/19 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 3/31/2019 2019 Restructuring Actions Severance $ — $ 1.8 $ (0.5 ) $ 1.3 Asset write-downs — — — — Facility closure and other costs — 0.7 (0.6 ) 0.1 Total 2019 Restructuring Actions $ — $ 2.5 $ (1.1 ) $ 1.4 2018 and Prior Restructuring Actions Severance $ 7.7 $ 0.1 $ (2.5 ) $ 5.3 Asset write-downs — — — — Facility closure and other costs (a) 13.3 0.4 (0.8 ) 12.9 Total 2018 and Prior Restructuring Actions $ 21.0 $ 0.5 $ (3.3 ) $ 18.2 Total Restructuring Actions $ 21.0 $ 3.0 $ (4.4 ) $ 19.6 (a) The beginning and ending accrual of Facility closure and other costs includes the balance of accrued liability associated with the withdrawal from a multi-employer pension plan as a result of a restructuring action in 2016 that is settled over multiple years. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Components of lease expense | Amounts recognized for operating leases in the Condensed Consolidated Balance Sheet is as follows: (in millions) March 31, 2019 Operating lease right-of-use assets $ 102.1 TOTAL ASSETS $ 102.1 Other accrued liabilities $ 31.4 Other Non-Current Liabilities 74.2 TOTAL LIABILITIES $ 105.6 |
Maturities of lease liabilities | Future maturities of our operating lease liabilities are as follows: 2019 2020 2021 2022 2023 Thereafter Total Payments Imputed Interest Total Operating Leases 26.0 27.8 19.1 11.8 11.0 20.9 116.6 (11.0 ) $ 105.6 |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Business Acquisition [Line Items] | |
Operating lease right-of-use assets | $ 102.1 |
Lease liabilities | 105.6 |
Increase to retained earnings | 30 |
Accounting Standards Update 2016-02 | |
Business Acquisition [Line Items] | |
Operating lease right-of-use assets | 109.3 |
Lease liabilities | $ 109.3 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 1,087.3 | $ 991.2 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 996.9 | 895.1 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 90.4 | 96.1 |
Hubbell Commercial and Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 221.3 | 215.5 |
Hubbell Construction and Energy | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 188.4 | 186.4 |
Hubbell Lighting | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 220.5 | 216.2 |
Hubbell Power Systems | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 457.1 | 373.1 |
Electrical | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 630.2 | 618.1 |
Electrical | United States | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 565.7 | 546.7 |
Electrical | International | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 64.5 | 71.4 |
Electrical | Hubbell Commercial and Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 221.3 | 215.5 |
Electrical | Hubbell Construction and Energy | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 188.4 | 186.4 |
Electrical | Hubbell Lighting | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 220.5 | 216.2 |
Electrical | Hubbell Power Systems | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 0 | 0 |
Power | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 457.1 | 373.1 |
Power | United States | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 431.2 | 348.4 |
Power | International | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 25.9 | 24.7 |
Power | Hubbell Commercial and Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 0 | 0 |
Power | Hubbell Construction and Energy | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 0 | 0 |
Power | Hubbell Lighting | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | 0 | 0 |
Power | Hubbell Power Systems | ||
Disaggregation of Revenue [Line Items] | ||
Total net sales | $ 457.1 | $ 373.1 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue from service contracts and post-shipment obligations (less than) | 4.00% | |
Contract liability | $ 32.2 | $ 27.7 |
Increase (decrease) in net contract liabilities | 4.5 | |
Revenue recognized | 7.3 | |
Unsatisfied performance obligation | $ 500 | |
Minimum | ||
Disaggregation of Revenue [Line Items] | ||
Unsatisfied performance obligation, period of recognition | 3 years |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | |
Feb. 28, 2018 | Mar. 31, 2018 | Feb. 02, 2018 | |
Line of Credit | Term Loan Agreement | |||
Business Acquisition [Line Items] | |||
Line of credit, maximum borrowing capacity | $ 500,000,000 | ||
Senior Notes | Notes 2028 Term | |||
Business Acquisition [Line Items] | |||
Interest rate, stated percentage | 3.50% | ||
Face amount | $ 450,000,000 | ||
Aclara | |||
Business Acquisition [Line Items] | |||
Consideration transferred to acquire business | $ 1,100,000,000 | ||
Net sales | $ 90,400,000 | ||
Operating loss of acquiree since acquisition | $ 4,900,000 |
Business Acquisitions - Summary
Business Acquisitions - Summary of Pro Forma Information (Details) - Aclara $ / shares in Units, $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net sales | $ | $ 1,037.9 |
Net income attributable to Hubbell | $ | $ 67.7 |
Earnings Per Share: | |
Basic (USD per share) | $ / shares | $ 1.23 |
Diluted (USD per share) | $ / shares | $ 1.22 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2019USD ($)group | Mar. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Operating Income | $ 120.9 | $ 99.6 |
Operating Income as a % of Net Sales | 11.10% | 10.00% |
Total net sales | $ 1,087.3 | $ 991.2 |
Electrical | ||
Segment Reporting Information [Line Items] | ||
Number of business groups (in groups) | group | 3 | |
Operating Income | $ 68.6 | $ 61.2 |
Operating Income as a % of Net Sales | 10.90% | 9.90% |
Total net sales | $ 630.2 | $ 618.1 |
Power | ||
Segment Reporting Information [Line Items] | ||
Operating Income | $ 52.3 | $ 38.4 |
Operating Income as a % of Net Sales | 11.40% | 10.30% |
Total net sales | $ 457.1 | $ 373.1 |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw material | $ 228 | $ 220.2 |
Work-in-process | 115.8 | 110.3 |
Finished goods | 401.4 | 402.3 |
Inventory, gross | 745.2 | 732.8 |
Excess of FIFO over LIFO cost basis | (82.2) | (81.8) |
TOTAL | $ 663 | $ 651 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, net - Changes in Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2018 | $ 1,784.4 |
Foreign currency translation | 2.4 |
BALANCE MARCH 31, 2019 | 1,786.8 |
Electrical | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2018 | 714.1 |
Foreign currency translation | 1.7 |
BALANCE MARCH 31, 2019 | 715.8 |
Power | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2018 | 1,070.3 |
Foreign currency translation | 0.7 |
BALANCE MARCH 31, 2019 | $ 1,071 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 18.2 | $ 15.4 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of 2019 | 53.2 | |
2020 | 70.7 | |
2021 | 69 | |
2022 | 63.6 | |
2023 | 58.9 | |
2024 | $ 53.9 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, net - Other Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,036.1 | $ 1,037.4 |
Accumulated Amortization | (287.5) | (271.2) |
Indefinite-lived intangible assets (excluding goodwill) | 53.5 | 53.3 |
Total intangible assets | 1,089.6 | 1,090.7 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 201.9 | 204.4 |
Accumulated Amortization | (58.2) | (58.6) |
Customer/agent relationships and other | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 834.2 | 833 |
Accumulated Amortization | $ (229.3) | $ (212.6) |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 29.6 | $ 52.4 |
Accrued income taxes | 5.5 | 3.4 |
Contract liabilities - deferred revenue | 32.2 | 27.7 |
Customer refund liability | 14.6 | 15.3 |
Accrued warranties | 31 | 33.5 |
Other(a) | 115.4 | 94.3 |
TOTAL | 228.3 | $ 226.6 |
Other accrued liabilities | $ 31.4 |
Other Non-Current Liabilities_2
Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | ||
Pensions | $ 177.3 | $ 177 |
Other post-retirement benefits | 23.7 | 23.7 |
Deferred tax liabilities | 124.2 | 120 |
Accrued warranties long-term | 53.2 | 59.2 |
Other(a) | 191.4 | 116.9 |
TOTAL | 569.8 | $ 496.8 |
Other Non-Current Liabilities | $ 74.2 |
Total Equity Total Equity - Cha
Total Equity Total Equity - Changes in Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | $ 1,798.9 | |
Net income | 73.8 | $ 59.8 |
Other comprehensive (loss) income | $ 8.3 | |
Cash dividends per common share (USD per share) | $ 0.84 | $ 0.77 |
Ending equity | $ 1,826.9 | |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | 0.6 | $ 0.6 |
Ending equity | 0.6 | 0.6 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | 1.3 | 11 |
Stock-based compensation | 4.1 | 5.1 |
Acquisition/surrender of common shares | (5.3) | (6.1) |
Director's deferred compensation | 0.1 | 0.1 |
Ending equity | 0.2 | 10.1 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | 2,064.4 | 1,892.4 |
Net income | 72.3 | 58.3 |
Reclassification of stranded tax effects | 30 | 0.6 |
Acquisition/surrender of common shares | (6.3) | 0 |
Cash dividends declared | (45.7) | (42.3) |
Ending equity | 2,114.7 | 1,909 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | (285.7) | (269.8) |
Other comprehensive (loss) income | 8.3 | 12.1 |
Reclassification of stranded tax effects | (30) | |
Ending equity | (307.4) | (257.7) |
Total Hubbell Shareholders' Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | 1,780.6 | 1,634.2 |
Net income | 72.3 | 58.3 |
Other comprehensive (loss) income | 8.3 | 12.1 |
Stock-based compensation | 4.1 | 5.1 |
Reclassification of stranded tax effects | 0.6 | |
Acquisition/surrender of common shares | (11.6) | (6.1) |
Cash dividends declared | (45.7) | (42.3) |
Director's deferred compensation | 0.1 | 0.1 |
Ending equity | 1,808.1 | 1,662 |
Non- controlling interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | 18.3 | 13.7 |
Net income | 1.5 | 1.5 |
Dividends to noncontrolling interest | (1) | (1.1) |
Aclara noncontrolling interest | 2.4 | |
Ending equity | $ 18.8 | $ 16.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning equity | $ 1,798.9 |
Other comprehensive income (loss) before reclassifications | 7.1 |
Amounts reclassified from accumulated other comprehensive loss | 1.2 |
Current period other comprehensive income (loss) | 8.3 |
Reclassification of stranded tax effects | (30) |
Ending equity | 1,826.9 |
Cash flow hedge (loss) gain | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning equity | 0.8 |
Other comprehensive income (loss) before reclassifications | (0.3) |
Amounts reclassified from accumulated other comprehensive loss | (0.3) |
Current period other comprehensive income (loss) | (0.6) |
Reclassification of stranded tax effects | 0 |
Ending equity | 0.2 |
Unrealized gain (loss) on available-for- sale securities | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning equity | (2) |
Other comprehensive income (loss) before reclassifications | 0.3 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Current period other comprehensive income (loss) | 0.3 |
Reclassification of stranded tax effects | 0 |
Ending equity | (1.7) |
Pension and post retirement benefit plan adjustment | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning equity | (158.7) |
Other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified from accumulated other comprehensive loss | 1.5 |
Current period other comprehensive income (loss) | 1.5 |
Reclassification of stranded tax effects | (30) |
Ending equity | (187.2) |
Cumulative translation adjustment | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning equity | (125.8) |
Other comprehensive income (loss) before reclassifications | 7.1 |
Amounts reclassified from accumulated other comprehensive loss | 0 |
Current period other comprehensive income (loss) | 7.1 |
Reclassification of stranded tax effects | 0 |
Ending equity | (118.7) |
AOCI Including Portion Attributable to Noncontrolling Interest | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |
Beginning equity | (285.7) |
Ending equity | $ (307.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||
Total net sales | $ 1,087.3 | $ 991.2 |
Cost of goods sold | (780) | (708.3) |
Income before income taxes | 98 | 75.8 |
Tax benefit (expense) | (24.2) | (16) |
Gain (loss) net of tax | (1.2) | |
Cash flow hedge (loss) gain | ||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||
Gain (loss) net of tax | 0.3 | |
Prior-service costs | ||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||
Amortization of defined benefit pension and post retirement benefit items | 0.2 | 0.2 |
Actuarial gains/(losses) | ||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||
Amortization of defined benefit pension and post retirement benefit items | (2.2) | (2.8) |
Amortization of defined benefit pension and post retirement benefit items | ||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||
Amortization of defined benefit pension and post retirement benefit items | (2) | (2.6) |
Tax benefit (expense) | 0.5 | 0.6 |
Gain (loss) net of tax | (1.5) | (2) |
Accumulated Other Comprehensive Income (Loss) | ||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||
Gain (loss) net of tax | (1.2) | (2.2) |
Forward Contracts | Cash flow hedge (loss) gain | Reclassification out of Accumulated Other Comprehensive Income | ||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||
Total net sales | 0.2 | 0 |
Cost of goods sold | 0.3 | (0.2) |
Income before income taxes | 0.5 | (0.2) |
Tax benefit (expense) | (0.2) | 0 |
Gain (loss) net of tax | $ 0.3 | $ (0.2) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Numerator: | ||
Net income attributable to Hubbell | $ 72.3 | $ 58.3 |
Less: Earnings allocated to participating securities | (0.3) | (0.2) |
Net income available to common shareholders | $ 72 | $ 58.1 |
Denominator [Abstract] | ||
Average number of common shares outstanding (in shares) | 54.4 | 54.7 |
Potential dilutive common shares (in shares) | 0.2 | 0.4 |
Average number of diluted shares outstanding (in shares) | 54.6 | 55.1 |
Basic (USD per share) | $ 1.32 | $ 1.06 |
Diluted (USD per share) | $ 1.32 | $ 1.05 |
Pension and Other Benefits - Ne
Pension and Other Benefits - Net Pension and Other Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.5 | $ 1.1 |
Interest cost | 8.7 | 8.6 |
Expected return on plan assets | (7.6) | (8.5) |
Amortization of prior service cost | 0 | 0 |
Amortization of actuarial losses | 2.2 | 2.8 |
NET PERIODIC BENEFIT COST | 3.8 | 4 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0.3 | 0.2 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | (0.2) | (0.2) |
Amortization of actuarial losses | 0 | 0 |
NET PERIODIC BENEFIT COST | $ 0.1 | $ 0 |
Pension and Other Benefits - Na
Pension and Other Benefits - Narrative (Details) - Foreign Plan $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined benefit plan estimated total employer contributions in current fiscal year | $ 0.5 |
Contributions by employer | $ 0.1 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
BALANCE AT JANUARY 1, | $ 92.7 | $ 14 |
Provision | 3.5 | 3.2 |
Expenditures/other | (12) | (4.5) |
Acquisitions | 0 | 44.4 |
BALANCE AT MARCH 31, | $ 84.2 | $ 57.1 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2019USD ($)contract | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments | $ 49.8 | $ 51.2 | |
Trading securities | 17.2 | 14.3 | |
Purchase of trading securities related to deferred compensation plans | 2.2 | $ 1.6 | |
Proceeds from securities sold | $ 0.6 | $ 0.4 | |
Number of foreign exchange contracts held (in contracts) | contract | 35 | ||
Long-Term Debt | $ 1,731.5 | 1,737.1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments | 0 | 0 | |
Trading securities | 17.2 | 14.3 | |
Forward exchange contract | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, notional amount | 38.4 | ||
Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Current portion of long-term debt | 25 | 25 | |
Long-Term Debt | 1,756.5 | 1,762.1 | |
Long-term debt, fair value | $ 1,732.8 | $ 1,688.1 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities by Hierarchy Level (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments | $ 49.8 | $ 51.2 | |
Trading securities | 17.2 | 14.3 | |
Deferred compensation plan liabilities | (17.2) | (14.3) | |
Derivatives: | |||
Forward exchange contracts-Assets | [1] | 0.8 | 1.6 |
Forward exchange contracts-(Liabilities) | [2] | (0.1) | 0 |
TOTAL | 96.6 | 88.8 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments | 0 | 0 | |
Trading securities | 17.2 | 14.3 | |
Deferred compensation plan liabilities | (17.2) | (14.3) | |
Derivatives: | |||
Forward exchange contracts-Assets | [1] | 0 | 0 |
Forward exchange contracts-(Liabilities) | [2] | 0 | 0 |
TOTAL | 24.8 | 15.1 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments | 47.3 | 48.9 | |
Trading securities | 0 | 0 | |
Deferred compensation plan liabilities | 0 | 0 | |
Derivatives: | |||
Forward exchange contracts-Assets | [1] | 0.8 | 1.6 |
Forward exchange contracts-(Liabilities) | [2] | (0.1) | 0 |
TOTAL | 69.3 | 71.4 | |
Unobservable inputs for which little or no market data exists (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments | 2.5 | 2.3 | |
Trading securities | 0 | 0 | |
Deferred compensation plan liabilities | 0 | 0 | |
Derivatives: | |||
Forward exchange contracts-Assets | [1] | 0 | 0 |
Forward exchange contracts-(Liabilities) | [2] | 0 | 0 |
TOTAL | 2.5 | 2.3 | |
Money market funds | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [3] | 24.8 | 15.1 |
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [3] | 24.8 | 15.1 |
Money market funds | Quoted Prices in Active Markets for Similar Assets (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [3] | 0 | 0 |
Money market funds | Unobservable inputs for which little or no market data exists (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [3] | 0 | 0 |
Time Deposits | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [3] | 21.3 | 20.9 |
Time Deposits | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [3] | 0 | 0 |
Time Deposits | Quoted Prices in Active Markets for Similar Assets (Level 2) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [3] | 21.3 | 20.9 |
Time Deposits | Unobservable inputs for which little or no market data exists (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | [3] | $ 0 | $ 0 |
[1] | Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheet. | ||
[2] | Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheet. | ||
[3] | Money market funds and time deposits are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheet. |
Fair Value Measurement - Cash F
Fair Value Measurement - Cash Flow Hedging Relationships (Details) - Forward exchange contract - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Income (net of tax) | $ (0.3) | $ 0.4 |
Net sales | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) | 0.1 | 0 |
Cost of goods sold | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) | $ 0.2 | $ (0.2) |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2016 | Oct. 04, 2018 | |
Loss Contingencies [Line Items] | ||||
Restructuring charges | $ 3 | $ 0.7 | ||
Expected costs remaining | 7 | |||
Arbitration Proceeding - Multiemployer Defined Benefit Plan Withdrawal | ||||
Loss Contingencies [Line Items] | ||||
Additional payment | $ 23.3 | |||
Withdrawal from Multiemployer Defined Benefit Plan | ||||
Loss Contingencies [Line Items] | ||||
Restructuring charges | $ 12.5 | |||
Expected costs remaining | $ 23 |
Restructuring Costs and Other -
Restructuring Costs and Other - By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 3 | $ 0.7 |
Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.7 | 0.8 |
Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2.3 | (0.1) |
Electrical Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.2 | 0.7 |
Electrical Segment | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.2 | 0.8 |
Electrical Segment | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1 | (0.1) |
Power Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.8 | 0 |
Power Segment | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.5 | 0 |
Power Segment | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 1.3 | $ 0 |
Restructuring Costs and Other_2
Restructuring Costs and Other - Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/19 | $ 21 | |
Pre-tax Restructuring Costs | 3 | $ 0.7 |
Utilization and Foreign Exchange | (4.4) | |
Ending Accrued Restructuring Balance 3/31/2019 | 19.6 | |
2019 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/19 | 0 | |
Pre-tax Restructuring Costs | 2.5 | |
Utilization and Foreign Exchange | (1.1) | |
Ending Accrued Restructuring Balance 3/31/2019 | 1.4 | |
2019 Restructuring Actions | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/19 | 0 | |
Pre-tax Restructuring Costs | 1.8 | |
Utilization and Foreign Exchange | (0.5) | |
Ending Accrued Restructuring Balance 3/31/2019 | 1.3 | |
2019 Restructuring Actions | Asset write-downs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/19 | 0 | |
Pre-tax Restructuring Costs | 0 | |
Utilization and Foreign Exchange | 0 | |
Ending Accrued Restructuring Balance 3/31/2019 | 0 | |
2019 Restructuring Actions | Facility closure and other costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/19 | 0 | |
Pre-tax Restructuring Costs | 0.7 | |
Utilization and Foreign Exchange | (0.6) | |
Ending Accrued Restructuring Balance 3/31/2019 | 0.1 | |
2018 and Prior Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/19 | 21 | |
Pre-tax Restructuring Costs | 0.5 | |
Utilization and Foreign Exchange | (3.3) | |
Ending Accrued Restructuring Balance 3/31/2019 | 18.2 | |
2018 and Prior Restructuring Actions | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/19 | 7.7 | |
Pre-tax Restructuring Costs | 0.1 | |
Utilization and Foreign Exchange | (2.5) | |
Ending Accrued Restructuring Balance 3/31/2019 | 5.3 | |
2018 and Prior Restructuring Actions | Asset write-downs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/19 | 0 | |
Pre-tax Restructuring Costs | 0 | |
Utilization and Foreign Exchange | 0 | |
Ending Accrued Restructuring Balance 3/31/2019 | 0 | |
2018 and Prior Restructuring Actions | Facility closure and other costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/19 | 13.3 | |
Pre-tax Restructuring Costs | 0.4 | |
Utilization and Foreign Exchange | (0.8) | |
Ending Accrued Restructuring Balance 3/31/2019 | $ 12.9 |
Restructuring Costs and Other_3
Restructuring Costs and Other - Summary of Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | $ 22 | |
Costs incurred | 3 | $ 12 |
Remaining costs at 3/31/2019 | 7 | |
2019 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 2.6 | |
Costs incurred | 2.5 | 0 |
Remaining costs at 3/31/2019 | 0.1 | |
2019 Restructuring Actions | Electrical Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 1.2 | |
Costs incurred | 1.1 | 0 |
Remaining costs at 3/31/2019 | 0.1 | |
2019 Restructuring Actions | Power Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 1.4 | |
Costs incurred | 1.4 | 0 |
Remaining costs at 3/31/2019 | 0 | |
2018 and Prior Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 19.4 | |
Costs incurred | 0.5 | 12 |
Remaining costs at 3/31/2019 | 6.9 | |
2018 and Prior Restructuring Actions | Electrical Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 14.3 | |
Costs incurred | 0.1 | 8.3 |
Remaining costs at 3/31/2019 | 5.9 | |
2018 and Prior Restructuring Actions | Power Segment | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 5.1 | |
Costs incurred | 0.4 | $ 3.7 |
Remaining costs at 3/31/2019 | $ 1 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Rent expense for operating leases | $ 9.6 |
Operating cash flows from operating leases | 8.5 |
Operating leases | $ 2.2 |
Operating lease, weighted average remaining lease term | 5 years |
Operating lease, weighted average discount rate | 3.80% |
Leases - Amounts Recognized for
Leases - Amounts Recognized for Leases (Details) $ in Millions | Mar. 31, 2019USD ($) |
Leases, Operating [Abstract] | |
Operating lease right-of-use assets | $ 102.1 |
Other accrued liabilities | 31.4 |
Other Non-Current Liabilities | 74.2 |
TOTAL LIABILITIES | $ 105.6 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Mar. 31, 2019USD ($) |
Operating Leases | |
2019 | $ 26 |
2020 | 27.8 |
2021 | 19.1 |
2022 | 11.8 |
2023 | 11 |
Thereafter | 20.9 |
Total Payments | 116.6 |
Imputed Interest | (11) |
Total | $ 105.6 |