Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 12, 2020 | Jun. 30, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Period End Date | --12-31 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Entity File Number | 1-2958 | ||
Entity Registrant Name | HUBBELL INC | ||
Entity Tax Identification Number | 06-0397030 | ||
Entity Address, Address Line One | 40 Waterview Drive | ||
Entity Address, City or Town | Shelton | ||
Entity Address, State or Province | CT | ||
City Area Code | (475) | ||
Local Phone Number | 882-4000 | ||
Entity Address, Postal Zip Code | 06484 | ||
Entity Incorporation, State or Country Code | CT | ||
Title of 12(b) Security | Common Stock — par value $0.01 per share | ||
Trading Symbol | HUBB | ||
Security Exchange Name | NYSE | ||
Entity Shell Company | false | ||
Entity Public Float | $ 7,036,079,255 | ||
Entity Common Stock, Shares Outstanding (shares) | 54,434,310 | ||
Entity Central Index Key | 0000048898 | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Small Business | false | ||
Entity Emerging Growth | false | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement for the annual meeting of shareholders scheduled to be held on May 5, 2020 , to be filed with the Securities and Exchange Commission (the “SEC”), are incorporated by reference in answer to Part III of this Form 10-K. *Calculated by excluding all shares held by Executive Officers and Directors of registrant without conceding that all such persons or entities are “affiliates” of registrant for purpose of the Federal Securities Laws. |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Net sales | $ 4,591 | $ 4,481.7 | $ 3,668.8 |
Cost of goods sold | 3,238.3 | 3,181.3 | 2,513.7 |
Gross profit | 1,352.7 | 1,300.4 | 1,155.1 |
Selling & administrative expenses | 756.1 | 743.5 | 636.3 |
Operating income | 596.6 | 556.9 | 518.8 |
Gain on disposition of business | 21.7 | 0 | 0 |
Multi-employer pension charge | (8.5) | 0 | 0 |
Interest expense | (69.4) | (72.4) | (44.9) |
Investment income | 1.5 | 0.1 | 0.9 |
Loss on extinguishment of debt | 0 | 0 | (10.1) |
Other expense, net | (21.4) | (17.6) | (21.6) |
Total other expense | (76.1) | (89.9) | (75.7) |
Income before income taxes | 520.5 | 467 | 443.1 |
Provision for income taxes | 113.1 | 100.9 | 193.2 |
Net income | 407.4 | 366.1 | 249.9 |
Less: Net income attributable to noncontrolling interest | 6.5 | 5.9 | 6.8 |
NET INCOME ATTRIBUTABLE TO HUBBELL | $ 400.9 | $ 360.2 | $ 243.1 |
Earnings per share | |||
Basic (USD per share) | $ 7.35 | $ 6.57 | $ 4.42 |
Diluted (USD per share) | $ 7.31 | $ 6.54 | $ 4.39 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 407.4 | $ 366.1 | $ 249.9 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 3.7 | (33.9) | 28.9 |
Reclassification of currency translation gains included in net income | (7.7) | 0 | 0 |
Defined benefit pension and post-retirement plans, net of taxes of $5.3, ($6.3) and ($1.0) | (14.5) | 17.8 | 4 |
Unrealized gain (loss) on investments, net of taxes of ($0.2), $0.4 and ($0.2) | 2.6 | (1.4) | 0.6 |
Unrealized gains (losses) on cash flow hedges, net of taxes of $0.5, ($0.5) and $0.4 | (1.3) | 1.6 | (0.8) |
Other comprehensive income (loss) | (17.2) | (15.9) | 32.7 |
Comprehensive income | 390.2 | 350.2 | 282.6 |
Less: Comprehensive income attributable to noncontrolling interest | 6.5 | 5.9 | 6.8 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO HUBBELL | $ 383.7 | $ 344.3 | $ 275.8 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | |||
Pension and post retirement benefit plans' service costs and net actuarial (losses) gains tax impact | $ 5.3 | $ (6.3) | $ (1) |
Unrealized gain (loss) on investment tax impact | (0.2) | 0.4 | (0.2) |
Unrealized gain or loss on cash flow hedge tax impact | $ 0.5 | $ (0.5) | $ 0.4 |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Current Assets | ||
Cash and cash equivalents | $ 182 | $ 189 |
Short-term investments | 14.2 | 9.2 |
Accounts receivable, net | 683 | 725.4 |
Inventories, net | 633 | 651 |
Other current assets | 62 | 69.1 |
Total Current Assets | 1,574.2 | 1,643.7 |
Property, Plant, and Equipment, net | 505.2 | 502.1 |
Other Assets | ||
Investments | 55.7 | 56.3 |
Goodwill | 1,811.8 | 1,784.4 |
Intangible assets, net | 781.5 | 819.5 |
Other long-term assets | 174.6 | 66.1 |
TOTAL ASSETS | 4,903 | 4,872.1 |
Current Liabilities | ||
Short-term debt and current portion of long-term debt | 65.4 | 56.1 |
Accounts payable | 347.7 | 393.7 |
Accrued salaries, wages and employee benefits | 101.5 | 101.6 |
Accrued insurance | 68.1 | 61.3 |
Other accrued liabilities | 262.2 | 226.6 |
Total Current Liabilities | 844.9 | 839.3 |
Long-term Debt | 1,506 | 1,737.1 |
Other Non-Current Liabilities | 591.6 | 496.8 |
TOTAL LIABILITIES | 2,942.5 | 3,073.2 |
Commitments and Contingencies (see Note 15) | ||
Hubbell Shareholders’ Equity | ||
Common Stock - par value $.01, Authorized 200,000,000 shares, outstanding 54,514,172 and 54,715,188 shares | 0.6 | 0.6 |
Additional paid-in capital | 0 | 1.3 |
Retained earnings | 2,279.4 | 2,064.4 |
Accumulated other comprehensive loss | (332.9) | (285.7) |
Total Hubbell Shareholders’ Equity | 1,947.1 | 1,780.6 |
Noncontrolling interest | 13.4 | 18.3 |
TOTAL EQUITY | 1,960.5 | 1,798.9 |
TOTAL LIABILITIES AND EQUITY | $ 4,903 | $ 4,872.1 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares, outstanding (shares) | 54,514,172 | 54,715,188 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities | |||
Net income | $ 407.4 | $ 366.1 | $ 249.9 |
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions: | |||
Depreciation and amortization | 151 | 148.4 | 98.2 |
Deferred income taxes | 6.1 | 49 | (14.3) |
Stock-based compensation | 16.4 | 24.2 | 22.3 |
Gain on disposition of business | (21.7) | 0 | 0 |
Multi-employer pension charge | 8.5 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | 10.1 |
Gain on sale of assets | (0.4) | (4) | (11.6) |
Changes in assets and liabilities, net of acquisitions: | |||
Decrease (increase) in accounts receivable | 46.2 | (75.4) | 3.9 |
Decrease (increase) in inventories | 12.2 | 34.2 | (90.3) |
(Decrease) increase in current liabilities | (36.2) | 15.6 | 57.4 |
Changes in other assets and liabilities, net | 0.9 | (20.4) | 50.7 |
Contributions to qualified defined benefit pension plans | (10.4) | (27.9) | (1.7) |
Other, net | 11.6 | 7.3 | 4.4 |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 591.6 | 517.1 | 379 |
Cash Flows from Investing Activities | |||
Capital expenditures | (93.9) | (96.2) | (79.7) |
Acquisitions, net of cash acquired | (70.8) | (1,118) | (184.1) |
Proceeds from disposal of business, net of cash | 33.4 | 0 | 0 |
Purchases of available-for-sale investments | (14.1) | (16.6) | (20.9) |
Proceeds from sales of available-for-sale investments | 12.5 | 20.5 | 17.4 |
Proceeds from disposition of assets | 3.1 | 6.8 | 18.4 |
Other, net | 0.9 | 2.1 | 3.3 |
NET CASH USED IN INVESTING ACTIVITIES | (128.9) | (1,201.4) | (245.6) |
Cash Flows from Financing Activities | |||
Issuance of long-term debt | 0 | 947.5 | 297.6 |
Payment of long-term debt | (225) | (168.8) | (300) |
Issuance of short-term debt | 0.7 | 0.8 | 66.3 |
Payment of short-term debt | (0.8) | (38) | (1.7) |
Make whole payment for extinguishment of long-term debt | 0 | 0 | (9.9) |
Debt issuance cost | 0 | (7.6) | (3) |
Payment of dividends | (186.6) | (172.3) | (157.6) |
Payment of dividends to noncontrolling interest | (11.3) | (3.9) | (3.5) |
Acquisition of common shares | (35) | (40) | (92.5) |
Other | (13) | (11.2) | (10) |
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES | (471) | 506.5 | (214.3) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | 1.3 | (8.2) | 18.3 |
Increase (Decrease) in cash and cash equivalents | (7) | (186) | (62.6) |
Cash and cash equivalents, beginning of year | 189 | 375 | 437.6 |
Cash and cash equivalents, end of year | $ 182 | $ 189 | $ 375 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Hubbell Shareholders' Equity | Non- controlling interest |
Beginning of period at Dec. 31, 2016 | $ 0.6 | $ 15.4 | $ 1,879.3 | $ (302.5) | $ 1,592.8 | $ 10.4 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | $ 249.9 | 243.1 | 243.1 | 6.8 | |||
Other comprehensive (loss) income | 32.7 | 32.7 | 32.7 | ||||
Stock-based compensation | 22.3 | 22.3 | |||||
Acquisition/surrender of common shares | (27.2) | (72.1) | (99.3) | ||||
Cash dividends declared | (157.9) | (157.9) | |||||
Dividends to noncontrolling interest | (3.5) | ||||||
Directors deferred compensation | 0.5 | 0.5 | |||||
End of period at Dec. 31, 2017 | 0.6 | 11 | 1,892.4 | (269.8) | 1,634.2 | 13.7 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 366.1 | 360.2 | 360.2 | 5.9 | |||
Other comprehensive (loss) income | (15.9) | (15.9) | (15.9) | ||||
Stock-based compensation | 24.2 | 24.2 | |||||
Acquisition/surrender of common shares | (34.5) | (16) | (50.5) | ||||
Cash dividends declared | (172.8) | (172.8) | |||||
Dividends to noncontrolling interest | (3.9) | ||||||
Aclara noncontrolling interest | 2.6 | ||||||
Directors deferred compensation | 0.6 | 0.6 | |||||
End of period at Dec. 31, 2018 | 1,798.9 | 0.6 | 1.3 | 2,064.4 | (285.7) | 1,780.6 | 18.3 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 407.4 | 400.9 | 400.9 | 6.5 | |||
Other comprehensive (loss) income | (17.2) | (17.2) | (17.2) | ||||
Stock-based compensation | 16.4 | 16.4 | |||||
Reclassification of stranded tax effects | (30) | 30 | (30) | ||||
Acquisition/surrender of common shares | (18.3) | (28.9) | (47.2) | ||||
Cash dividends declared | (187) | (187) | |||||
Dividends to noncontrolling interest | (11.4) | ||||||
Directors deferred compensation | 0.6 | 0.6 | |||||
End of period at Dec. 31, 2019 | $ 1,960.5 | $ 0.6 | $ 0 | $ 2,279.4 | $ (332.9) | $ 1,947.1 | $ 13.4 |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, dividends declared (USD per share) | $ 3.43 | $ 3.15 | $ 2.87 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Principles of Consolidation The Consolidated Financial Statements include all wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The Company participates in three joint ventures, one of which is accounted for using the equity method, the others have been consolidated in accordance with the consolidation accounting guidance. An analysis is performed to determine which reporting entity, if any, has a controlling financial interest in a variable interest entity (“VIE”) with a primarily qualitative analysis. The qualitative analysis is based on identifying the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance (the “power criterion”) and the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE (the “losses/benefit criterion”). The party that meets both these criteria is deemed to have a controlling financial interest. The party with the controlling financial interest is considered to be the primary beneficiary and as a result is required to consolidate the VIE. The Company has a 50% interest in a joint venture in Hong Kong, established as Hubbell Asia Limited (“HAL”). The principal objective of HAL is to manage the operations of its wholly-owned manufacturing company in China. Under the accounting guidance, the Company is the primary beneficiary of HAL and as a result consolidates HAL. This determination is based on the fact that HAL’s sole business purpose is to manufacture product exclusively for the Company (the power criterion) and the Company is financially responsible for ensuring HAL maintains a fixed operating margin (the losses/benefit criterion). The consolidation of HAL is not material to the Company’s consolidated financial statements. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements. Actual results could differ from the estimates that are used. Revenue Recognition 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 contractually specified destination. Revenue from service contracts and post-shipment performance obligations is approximately three 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 Consolidated Balance Sheet. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Consolidated Statement of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Consolidated Statement of Income on a straight line basis over the expected term of the contract. The Company has certain arrangements that require us to estimate at the time of sale the amounts of variable consideration that should not be recorded as revenue as certain amounts are not expected to be collected from customers, as well as an estimate of the value of the product to be returned. The Company principally relies on historical experience, specific customer agreements and anticipated future trends to estimate these amounts at the time of shipment and to reduce the transaction price. These arrangements include sales discounts and allowances based on sales volumes, specific programs and special pricing allowances, and returned goods, as are customary in the electrical products industry. Customer returns have historically ranged from 1% - 2% of gross sales. Shipping and Handling Costs The Company records shipping and handling costs as part of Cost of goods sold in the Consolidated Statement of Income. Foreign Currency Translation The assets and liabilities of international subsidiaries are translated to U.S. dollars at exchange rates in effect at the end of the year, and income and expense items are translated at average exchange rates in effect during the year. The effects of exchange rate fluctuations on the translated amounts of foreign currency assets and liabilities are included as translation adjustments in Accumulated other comprehensive loss within Hubbell shareholders’ equity. Gains and losses from foreign currency transactions are included in results of operations. Cash and Cash Equivalents The carrying value of cash equivalents approximates fair value. Cash equivalents consist of highly liquid investments with original maturities to the Company of three months or less. Investments Investments in debt and equity securities are classified by individual security as available-for-sale, held-to-maturity or trading securities. Our available-for-sale securities, consisting of municipal bonds and the redeemable preferred stock of a privately held company, are carried on the balance sheet at fair value with current period adjustments to carrying value recorded in Accumulated other comprehensive loss within Hubbell shareholders’ equity, net of tax. Realized gains and losses are recorded in income in the period of sale. The Company’s trading securities are carried on the balance sheet at fair value and consist primarily of debt and equity mutual funds. Gains and losses associated with these trading securities are reflected in the results of operations. The Company did not have any investments classified as held-to-maturity as of December 31, 2019 and 2018 . Accounts Receivable and Allowances Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. The allowance for doubtful accounts is based on an estimated amount of probable credit losses in existing accounts receivable. The allowance is calculated based upon a combination of historical write-off experience, fixed percentages applied to aging categories and specific identification based upon a review of past due balances and problem accounts. Account balances are charged off against the allowance when it is determined that internal collection efforts should no longer be pursued. The Company also maintains a reserve for credit memos and cash discounts which are principally calculated based upon historical experience, specific customer agreements, as well as anticipated future trends. Inventories Inventories are stated at the lower of cost or market value. Approximately 61% of total net inventory value is determined utilizing the last-in, first-out (LIFO) method of inventory accounting. The cost of foreign inventories and certain domestic inventories is determined utilizing average cost or first-in, first-out (FIFO) methods of inventory accounting. Reserves for excess and obsolete inventory are provided based on current assessments about future demand compared to on-hand quantities. Property, Plant, and Equipment Property, plant, and equipment values are stated at cost less accumulated depreciation. Maintenance and repair expenditures that do not significantly increase the life of an asset are charged to expense when incurred. Property, plant, and equipment placed in service prior to January 1, 1999 are depreciated over their estimated useful lives, principally, using accelerated methods. Assets placed in service subsequent to January 1, 1999 are depreciated over their estimated useful lives, using straight-line methods. Leasehold improvements are amortized over the shorter of their economic lives or the lease term. Gains and losses arising on the disposal of property, plant and equipment are included in Operating income in the Consolidated Statement of Income. Capitalized Computer Software Costs Capitalized computer software costs, net of amortization, were $ 22.5 million and $20.2 million at December 31, 2019 and 2018 , respectively. This balance is reflected in Other long-term assets in the Consolidated Balance Sheet. Capitalized computer software is for internal use and costs primarily consist of purchased materials, external services and salary costs for personnel dedicated to the projects. Software is amortized on a straight-line basis over appropriate periods, generally between three and five years . The Company recorded amortization expense of $ 9.0 million in 2019 , $6.4 million in 2018 and $ 5.6 million in 2017 relating to capitalized computer software. Goodwill and Other Intangible Assets Goodwill represents purchase price in excess of fair values of the underlying net assets of acquired companies. Indefinite-lived intangible assets and goodwill are subject to annual impairment testing using the specific guidance and criteria described in the accounting guidance. The Company performs its goodwill impairment testing as of April 1st of each year, unless circumstances dictate the need for more frequent assessments. The accounting guidance provides entities an option of performing a qualitative assessment (a "step-zero" test) before performing a quantitative analysis. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the goodwill is not impaired, the entity would not need to proceed to quantitative goodwill impairment testing process as prescribed in the guidance. The Company applied the "step-zero" test to four of its seven reporting units. Based on that qualitative assessment, the Company concluded it was more-likely-than-not that the fair value of these reporting units exceeded their carrying value and therefore, further quantitative analysis was not required. For the other three reporting units the Company has elected to utilize the quantitative goodwill impairment testing process as permitted in the accounting guidance, by comparing the fair value of the Company's reporting units to their carrying values. If the fair value of the reporting unit exceeds its carrying value, no impairment exists. Goodwill impairment testing requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. We use internal discounted cash flow estimates to determine fair value. These cash flow estimates are derived from historical experience and future long-term business plans and include assumptions on future sales growth, gross margin, operating margin, terminal growth rate, and the application of an appropriate discount rate. Changes in these estimates and assumptions could affect the determination of fair value and/or goodwill impairment for each reporting unit. The Company believes that its estimated aggregate fair value of its reporting units is reasonable when compared to the Company's market capitalization on the valuation date. As of April 1, 2019 , the impairment testing resulted in implied fair values for each reporting unit that substantially exceeded the reporting unit's carrying value, including goodwill. The Company did not have any reporting units at risk of failing the quantitative impairment test as the excess of the implied fair value significantly exceeded the carrying value of the reporting units. Additionally, the Company did not have any reporting units with zero or negative carrying amounts. The Company has not recorded any goodwill impairments since the initial adoption of the accounting guidance in 2002. The Company’s intangible assets consist primarily of customer relationships, tradenames, developed technology and patents. Intangible assets with definite lives are amortized over periods generally ranging from 5 - 30 years . The Company amortizes intangible assets with definite lives using either an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets' useful life, or using a straight line method. Approximately 75% of the gross value of definite-lived intangible assets follow an accelerated amortization method. These definite lived intangibles are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The Company did not record any material impairments related to its definite lived intangible assets in 2019 , 2018 or 2017 . The Company also has some tradenames that are considered to be indefinite-lived intangible assets. These indefinite-lived intangible assets are not amortized and are tested for impairment annually, unless circumstances dictate the need for more frequent assessment. The accounting guidance related to testing indefinite-lived intangible assets for impairment provides entities an option of performing a qualitative assessment before calculating the fair value of the asset. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the asset is not impaired, the entity would not need to calculate the fair value of the asset. The Company performed the qualitative assessment which resulted in no impairment in 2019 , 2018 and 2017 . Other Long-Lived Assets The Company reviews depreciable long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such a change in circumstances occurs, the related estimated future undiscounted cash flows expected to result from the use of the asset group and its eventual disposition is compared to the carrying amount. If the sum of the expected cash flows is less than the carrying amount, an impairment charge is recorded. The impairment charge is measured as the amount by which the carrying amount exceeds the fair value of the asset. The fair value of impaired assets is determined using expected cash flow estimates, quoted market prices when available and appraisals as appropriate. The Company did not record any material impairment charges in 2019 , 2018 or 2017 . Accrued Insurance The Company retains a significant portion of the risks associated with workers’ compensation, medical, automobile and general liability insurance. The Company estimates self-insurance liabilities using a number of factors, including historical claims experience, demographic factors, and other actuarial assumptions. The accrued liabilities associated with these programs are based on the Company’s estimate of the ultimate costs to settle known claims as well as claims incurred but not reported as of the balance sheet date. The Company periodically reviews the assumptions with a third party actuary to determine the adequacy of these self-insurance reserves. Accrued Warranty The Company offers product warranties which 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. In 2018, the Company assumed warranty obligations with an estimated fair value of $89.4 million in connection with the acquisition of Aclara. Income Taxes The Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The IRS and other tax authorities routinely examine the Company’s tax returns. These audits can involve complex issues which may require an extended period of time to resolve. The Company makes adequate provisions for best estimates of exposures on previously filed tax returns. Deferred income taxes are recognized for the tax consequence of differences between financial statement carrying amounts and the tax basis of assets and liabilities by applying the currently enacted statutory tax rates in accordance with the accounting guidance for income taxes. The effect of a change in statutory tax rates is recognized in the period that includes the enactment date. Additionally, deferred tax assets are required to be reduced by a valuation allowance if it is more-likely-than-not that a portion or all of the deferred tax asset will not be realized. The Company uses factors to assess the likelihood of realization of deferred tax assets such as the forecast of future taxable income and available tax planning that could be implemented to realize the deferred tax assets. In addition, the accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of the tax position taken or expected to be taken in a tax return. For any amount of benefit to be recognized, it must be determined that it is more-likely-than-not that a tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The amount of benefit to be recognized is based on the Company’s assertion of the most likely outcome resulting from an examination, including resolution of any related appeals or litigation processes. Companies are required to reflect only those tax positions that are more-likely-than-not to be sustained. See Note 13 — Income Taxes for additional information. Research and Development Research and development expenditures represent costs to discover and/or apply new knowledge in developing a new product, process, or in bringing about a significant improvement to an existing product or process. Research and development expenses are recorded as a component of Cost of goods sold. Expenses for research and development were approximately 3% of Cost of goods sold in each of 2019 , 2018 and in 2017 . Retirement Benefits The Company maintains various defined benefit pension plans for some of its U.S. and foreign employees. The accounting guidance for retirement benefits requires the Company to recognize the funded status of its defined benefit pension and postretirement plans as an asset or liability in the Consolidated Balance Sheet. Gains or losses, prior service costs or credits, and transition assets or obligations that have not yet been included in net periodic benefit cost as of the end of the year are recognized as components of Accumulated other comprehensive loss, net of tax, within Hubbell shareholders’ equity. The Company’s policy is to fund pension costs within the ranges prescribed by applicable regulations. In addition to providing defined benefit pension benefits, the Company provides health care and life insurance benefits for some of its active and retired employees. The Company’s policy is to fund these benefits through insurance premiums or as actual expenditures are made. See also Note 11 — Retirement Benefits. Earnings Per Share Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. As a result, the earnings per share accounting guidance requires the Company to use the two-class method for calculating earnings per share. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities. Basic earnings per share is calculated as net income available to common shareholders divided by the weighted average number of shares of common stock outstanding. Earnings per diluted share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding of common stock plus the incremental shares outstanding assuming the exercise of dilutive stock options, stock appreciation rights and performance shares. See also Note 18 — Earnings Per Share. Stock-Based Compensation The Company recognizes the grant-date fair value of all stock-based awards on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period). A stock-based award is considered vested for expense attribution purposes when the retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company generally recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The expense is recorded in Cost of goods sold and S&A expense in the Consolidated Statement of Income based on the recipients’ respective functions within the organization. The Company records deferred tax assets for awards that will result in deductions on its tax returns, based upon the amount of compensation cost recognized and the statutory tax rate in the jurisdiction in which it will receive a deduction. See also Note 17 — Stock-Based Compensation. 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, interest rate hedges and interest rate swaps. All derivative financial instruments are matched with an existing Company asset, liability or proposed transaction. The Company does not speculate or use leverage when trading a derivative product. 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 or liability are recognized in income. See Note 14 — Financial Instruments and Fair Value Measurement for more information regarding our derivative instruments. Recent Accounting Pronouncements 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 12 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 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 Consolidated Statements of Income or 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, plant, and equipment, net, 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 an 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. In June 2016, the FASB issued an Accounting Standards Update (ASU 2016-13), "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for periods beginning after December 15, 2019, with early adoption permitted. The standard requires that any impact of adoption is to be recognized as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company does not expect the adoption will have a material impact on results of operations. 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 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 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 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 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 does not expect the adoption will have a material impact on results of operations. In December 2019, the FASB issued an Accounting Standards Update (ASU 2019-12) "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently assessing the impact of adopting this standard on its financial statements. |
Revenue Revenue
Revenue Revenue | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Approximately two-thirds of the Company's net sales are to distributors who then sell directly into the residential, non-residential, industrial, electrical transmission and distribution, and oil and gas end markets. Within the Power segment, our businesses sell to distributors, with the majority of sales to the utility end markets. Our businesses within the Power segment also sell directly into transmission and distribution utility markets. The following table presents disaggregated revenue by business group (in millions) for the twelve months ended December 31, 2019 , 2018 and 2017: Twelve Months Ended December 31, 2019 2018 2017 Net sales Hubbell Commercial and Industrial $ 902.1 $ 910.8 $ 864.5 Hubbell Construction and Energy 808.7 799.7 732.6 Hubbell Lighting 914.9 950.1 935.7 Hubbell Power Systems 1,965.3 1,821.1 1,136.0 Total net sales $ 4,591.0 $ 4,481.7 $ 3,668.8 The following table presents disaggregated third-party net sales by geographic location (in millions) for the twelve months ended December 31, 2019 , 2018 and 2017 (on a geographic basis, the Company defines "international" in the following table as businesses based outside of the United States and its possessions): Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 Electrical Power Total Electrical Power Total Electrical Power Total Net sales United States $ 2,358.2 $ 1,832.3 $ 4,190.5 $ 2,365.4 $ 1,675.2 $ 4,040.6 $ 2,229.3 $ 1,051.6 $ 3,280.9 International 267.5 133.0 400.5 295.2 145.9 441.1 303.5 84.4 387.9 Total net sales $ 2,625.7 $ 1,965.3 $ 4,591.0 $ 2,660.6 $ 1,821.1 $ 4,481.7 $ 2,532.8 $ 1,136.0 $ 3,668.8 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 Consolidated Balance Sheet. Contract liabilities were $ 31.0 million as of December 31, 2019 compared to $ 27.7 million as of December 31, 2018 . The $3.3 million increase in our contract liabilities balance was primarily due to a $22.4 million net increase in current year deferrals primarily due to timing of advance payments on certain orders, partially offset by the recognition of $14.3 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2019 and a $4.8 million decline in contract liabilities relating to the disposition of the Haefely business.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 Consolidated Balance Sheet. Impairment losses recognized on our receivables and contract assets were immaterial in the twelve months ended December 31, 2019 . See Note 1 – Basis of Presentation and Note 3 – Business Acquisitions and Dispositions in the Notes to Consolidated Financial Statements for additional information. Unsatisfied Performance Obligations The Company has elected the practical expedient to disclose only the value of unsatisfied performance obligations for contracts with an original expected length greater than one year. Prior to the acquisition of Aclara, the majority of Hubbell's revenues resulted from sales of inventoried products with short periods of manufacture and delivery and thus are excluded from this disclosure. As of December 31, 2019 , the Company had approximately $395 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 Aclara business (within the Power segment) to deliver and install meters, metering communications and grid monitoring sensor technology. The Company expects that a majority of the unsatisfied performance obligations will be completed and recognized over the next 3 years. |
Business Acquisitions and Dispo
Business Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Acquisitions and Dispositions | Business Acquisitions and Dispositions 2019 Acquisitions In the fourth quarter of 2019, the Company acquired all of the issued and outstanding shares of Cantega Technologies Inc., including its wholly owned subsidiary Greenjacket Inc., and all of the issued and outstanding shares of Reliaguard Inc. (collectively “Cantega”) for $36.3 million , net of cash acquired. Cantega is a provider of innovative asset protection solutions and services for electrical utilities that complements the Company's existing power systems business. Cantega is reported in the Power segment. We have recognized intangible assets of $20.4 million and goodwill of $14.2 million as a result of this acquisition. The $20.4 million of intangible assets consists primarily of customer relationships and technology and will be amortized over a weighted average period of approximately 12 years using an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets' useful life. The goodwill is not deductible for tax purposes. In the fourth quarter of 2019, the Company also acquired substantially all the assets of Connector Products, Incorporated (“CPI”) for $28.0 million . CPI is a manufacturer of electrical connectors and accessories for power utilities and mass transit systems. CPI is reported in the Electrical segment. We have recognized intangible assets of $12.8 million and goodwill of $10.5 million as a result of this acquisition. The $12.8 million of intangible assets consists primarily of customer relationships and a tradename and will be amortized over a weighted average period of approximately 18 years using an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets' useful life. All of the goodwill is expected to be deductible for tax purposes. In 2019 the Company also completed a $5.0 million asset acquisition, and recognized $4.7 million of goodwill as a result. All of the goodwill is expected to be deductible for tax purposes. These business acquisitions have been accounted for as business combinations and have resulted in the recognition of goodwill. The goodwill relates to a number of factors implied in the purchase price, including the future earnings and cash flow potential of the businesses as well as the complementary strategic fit and resulting synergies they bring to the Company’s existing operations. Preliminary Allocation of Consideration Transferred to Net Assets Acquired The following table presents the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed from the Company's 2019 acquisitions. The final determination of the fair value of certain assets and liabilities will be completed within the one year measurement period as required by the FASB ASC Topic 805, “Business Combinations.” As the Company finalizes the fair value of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company's results of operations. The finalization of the purchase accounting assessment may result in a change in the valuation of assets acquired and liabilities assumed and may have a material impact on the Company's results of operations and financial position. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition related to all transactions (in millions): Tangible assets acquired $ 21.7 Intangible assets 33.2 Goodwill 29.4 Net deferred taxes (5.7 ) Other liabilities assumed (9.3 ) Total Estimate of Consideration Transferred, Net of Cash Acquired $ 69.3 The Consolidated Financial Statements include the results of operations of the acquired businesses from their respective dates of acquisition. Net sales and earnings related to these acquisitions for the year ended December 31, 2019 were not significant to the consolidated results. Pro forma information related to these acquisitions has not been included because the impact to the Company’s consolidated results of operations was not material. Cash used for the acquisition of businesses, net of cash acquired as reported in the Consolidated Statement of Cash Flows for the year ended December 31, 2019 is $70.8 million and includes approximately $1.5 million of deferred purchase price relating to an acquisition completed in a previous year. 2018 Acquisition On February 2, 2018, the Company completed the acquisition of 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 an unsecured term loan facility in an aggregate principal amount of $500 million , the issuance of 3.50% Senior Notes due 2028 in an aggregate principal amount of $450 million and commercial paper borrowings. Allocation of Consideration Transferred to Net Assets Acquired The following table presents the determination of the fair value of identifiable assets acquired and liabilities assumed from the Company's acquisition of Aclara. Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company's results of operations. The following are the assets acquired and the liabilities assumed by the Company in the Aclara acquisition, reconciled to the acquisition consideration (in millions): Accounts receivable $ 118.1 Inventories 73.5 Other current assets 8.5 Property, plant and equipment 30.9 Intangible assets 434.0 Accounts payable (51.8 ) Other accrued liabilities (93.3 ) Deferred tax liabilities, net (42.1 ) Other non-current liabilities (67.7 ) Noncontrolling interest (2.5 ) Goodwill 708.7 Total Estimate of Consideration Transferred, Net of Cash Acquired $ 1,116.3 Cash used for the acquisition of businesses, net of cash acquired as reported in the Consolidated Statement of Cash Flows for the twelve months ended December 31, 2018 is $1,118.0 million and includes approximately $1.7 million of deferred purchase price and net working capital settlements relating to acquisitions completed in previous years. In connection with the Aclara transaction, the Company recorded goodwill of $708.7 million , which is attributable primarily to expected synergies, expanded market opportunities, and other expected benefits that the Company believes will result from combining its operations with the operations of Aclara. For tax purposes, $159.9 million of the Aclara historical goodwill is deductible. The incremental goodwill created as a result of the acquisition is not deductible for tax purposes. Goodwill has been allocated to the Power segment. The purchase price allocation to identifiable intangible assets acquired is as follows (in millions, except useful life amounts): Estimated Fair Value Weighted Average Estimated Useful Life Patents, tradenames and trademarks $ 55.0 20.0 Customer relationships 194.0 18.0 Developed technology 185.0 13.0 Total $ 434.0 Customer relationships and developed technology intangible assets acquired are amortized using an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the asset's useful life. For the year ended December 31, 2018 and 2017, the Company recorded transaction costs of $12.8 million and $7.1 million , respectively, relating to the acquisition of Aclara. These costs were recorded in the respective financial statement line items as follows (in millions): Twelve Months Ended December 31, 2018 2017 Selling & administrative expense $ 9.5 $ 6.7 Interest expense 3.3 0.4 Total Aclara Transaction Costs $ 12.8 $ 7.1 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 $611.1 million and operating income of approximately $29.6 million , before any transaction costs described below, for the period from the completion of the acquisition through December 31, 2018 . The following unaudited supplemental pro-forma information presents consolidated results as if the acquisition had been completed on January 1, 2017. 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. Per share amounts in 2018 reflect the reduction in the U.S. federal corporate income tax rate from 35% to 21%: (in millions, except per share amounts) Twelve Months Ended December 31, 2018 2017 Net sales $ 4,531.2 $ 4,180.9 Net income attributable to Hubbell $ 376.4 $ 209.8 Earnings Per Share: Basic $ 6.86 $ 3.82 Diluted $ 6.83 $ 3.81 Dispositions In August 2019, the Company completed the sale of Haefely Test, AG (“Haefely”) for $38.1 million . Haefely designs and manufactures high voltage test equipment and is based in Basel, Switzerland. The Haefely business was previously included within the Electrical segment. Upon disposition, the Haefely business had tangible assets of $32.3 million (primarily composed of cash, accounts receivable, inventories, and property, plant and equipment), goodwill of $3.1 million , total liabilities of $12.2 million (primarily composed of accounts payable, accrued expenses, and cash received in advance from customers) and a $7.7 million balance of cumulative currency translation adjustments recognized within Accumulated other comprehensive income. As a result of the sale of Haefely, we recognized a pre-tax gain of $21.7 million |
Receivables and Allowances
Receivables and Allowances | 12 Months Ended |
Dec. 31, 2019 | |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | |
Receivables and Allowances | Receivables and Allowances Receivables consist of the following components at December 31, (in millions): 2019 2018 Trade accounts receivable $ 696.8 $ 739.1 Non-trade receivables 29.9 26.2 Accounts receivable, gross 726.7 765.3 Allowance for credit memos, returns and cash discounts (36.0 ) (35.1 ) Allowance for doubtful accounts (7.7 ) (4.8 ) Total allowances (43.7 ) (39.9 ) ACCOUNTS RECEIVABLE, NET $ 683.0 $ 725.4 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are classified as follows at December 31, (in millions): 2019 2018 Raw material $ 217.4 $ 220.2 Work-in-process 101.8 110.3 Finished goods 403.6 402.3 722.8 732.8 Excess of FIFO over LIFO cost basis (89.8 ) (81.8 ) INVENTORIES, NET $ 633.0 $ 651.0 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying amounts of goodwill for the years ended December 31, 2019 and 2018 , by segment, were as follows (in millions): Segment Electrical Power Total BALANCE AT DECEMBER 31, 2017 $ 717.6 $ 371.4 $ 1,089.0 Current year acquisitions — 708.7 708.7 Foreign currency translation and prior year acquisitions (3.5 ) (9.8 ) (13.3 ) BALANCE AT DECEMBER 31, 2018 $ 714.1 $ 1,070.3 $ 1,784.4 Current year acquisitions (1) 15.2 14.2 29.4 Dispositions (1) (3.1 ) — (3.1 ) Foreign currency translation 1.5 (0.4 ) 1.1 BALANCE AT DECEMBER 31, 2019 $ 727.7 $ 1,084.1 $ 1,811.8 (1) Refer to Note 3 – Business Acquisitions and Dispositions for additional information. In 2019 , the Company completed multiple acquisitions. These acquisitions have been accounted for as business combinations and have resulted in the recognition of $29.4 million of goodwill. The Company has not recorded any material goodwill impairments since the initial adoption of the related accounting guidance in 2002. Identifiable intangible assets are recorded in Intangible assets, net in the Consolidated Balance Sheet. Identifiable intangible assets are comprised of the following (in millions): December 31, 2019 December 31, 2018 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 202.7 $ (65.0 ) $ 204.4 $ (58.6 ) Customer relationships, developed technology and other 861.0 (270.8 ) 833.0 (212.6 ) TOTAL DEFINITE-LIVED INTANGIBLES 1,063.7 (335.8 ) 1,037.4 (271.2 ) Indefinite-lived: Tradenames and other 53.6 — 53.3 — TOTAL INTANGIBLE ASSETS $ 1,117.3 $ (335.8 ) $ 1,090.7 $ (271.2 ) Amortization expense associated with these definite-lived intangible assets was $72.0 million , $68.9 million and $34.9 million in 2019 , 2018 and 2017 , respectively. Amortization expense associated with these intangible assets is expected to be $74.3 million in 2020 , $72.3 million in 2021 , $67.2 million in 2022 , $62.4 million in 2023 and $57.0 million in 2024 . The Company amortizes intangible assets with definite lives using either an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets useful life, or using a straight line method. Approximately 75% of the gross value of definite-lived intangible assets follow an accelerated amortization method. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Investments | Investments At December 31, 2019 and December 31, 2018 , the Company held investments classified as available-for-sale and investments classified as trading securities. Investments classified as available-for-sale consisted of municipal bonds with an amortized cost basis of $50.0 million as of December 31, 2019. In the third quarter of 2019, the Company disposed of an available-for-sale investment in a privately-held company that was previously classified in Level 3 of the fair value hierarchy. Investments classified as trading securities were composed primarily of debt and equity mutual funds and are stated at fair market value based on current quotes. The following table sets forth selected data with respect to the Company’s investments at December 31, (in millions): 2019 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities $50.0 $0.8 $(0.1) $50.7 $50.7 $54.0 $1.1 $(3.9) $51.2 $51.2 Trading securities 12.0 7.2 — 19.2 19.2 10.1 4.2 — 14.3 14.3 TOTAL INVESTMENTS $62.0 $8.0 $(0.1) $69.9 $69.9 $64.1 $5.3 $(3.9) $65.5 $65.5 Contractual maturities of our investments in available-for-sale securities at December 31, 2019 were as follows (in millions): Amortized Cost Fair Value Available-for-sale securities Due within 1 year $ 14.2 $ 14.2 After 1 year but within 5 years 23.1 23.6 After 5 years but within 10 years 4.9 5.1 Due after 10 years 7.8 7.8 TOTAL $ 50.0 $ 50.7 The total unrealized gain/(loss) recognized in the year relating to available-for-sale securities, net of tax, was $2.6 million and $(1.4) million at December 31, 2019 and 2018 , respectively. These net unrealized gains/(losses) are included in Accumulated other comprehensive loss, net of tax. Net unrealized gains relating to trading securities have been reflected in the results of operations. The Company uses the specific identification method when identifying the cost basis used to calculate the gain or loss on these securities. Gains and losses for both available-for-sale and trading securities were not material in 2019 , 2018 and 2017 . |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment, carried at cost, is summarized as follows at December 31, (in millions): 2019 2018 Land $ 37.7 $ 42.2 Buildings and improvements 285.3 277.3 Machinery, tools, and equipment 896.0 863.5 Construction-in-progress 35.3 46.2 Gross property, plant, and equipment 1,254.3 1,229.2 Less accumulated depreciation (749.1 ) (727.1 ) PROPERTY, PLANT, AND EQUIPMENT, NET $ 505.2 $ 502.1 Depreciable lives on buildings range between 20 - 45 years. Depreciable lives on machinery, tools, and equipment range between 3 - 15 years . The Company recorded depreciation expense of $70.0 million, $66.1 million and $57.5 million for 2019 , 2018 and 2017 , respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consist of the following at December 31, (in millions): 2019 2018 Customer program incentives $ 49.0 $ 52.4 Accrued income taxes 6.0 3.4 Contract liabilities - deferred revenue 31.0 27.7 Customer refund liability 19.0 15.3 Accrued warranties (1) 24.0 33.5 Current operating lease liabilities (2) 29.6 — Other 103.6 94.3 TOTAL $ 262.2 $ 226.6 (1) Refer to Note 21 – Guarantees for additional information regarding warranties. (2) |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consists of the following at December 31, (in millions): 2019 2018 Pensions $ 198.5 $ 177.0 Other post-employment benefits 21.5 23.7 Deferred tax liabilities 126.8 120.0 Accrued warranties long-term (1) 58.1 59.2 Non-current operating lease liabilities (2) 71.7 — Other 115.0 116.9 TOTAL $ 591.6 $ 496.8 (1) Refer to Note 21 – Guarantees for additional information regarding warranties. (2) |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Retirement Benefits | Retirement Benefits The Company has funded and unfunded non-contributory U.S. and foreign defined benefit pension plans. Benefits under these plans are generally provided based on either years of service and final average pay or a specified dollar amount per year of service. The U.S. defined benefit pension plan has been closed to new participants since 2004, while the Canadian and UK defined benefit pension plans have been closed to new entrants since 2006 and 2007, respectively. These U.S., Canadian and UK employees are eligible instead for defined contribution plans. The Company also has a number of health care and life insurance benefit plans covering eligible employees who reached retirement age while working for the Company. These benefits have been discontinued for substantially all future retirees. The Company anticipates future cost-sharing charges for its discontinued plans that are consistent with past practices. The Company uses a December 31 measurement date for all of its plans. In 2019, the Company approved amendments to the one of its domestic qualified defined benefit pension plans, which froze service accruals for nearly all active participants within the plan effective January 1, 2020. As a result of the amendment, the Company recognized a $0.3 million curtailment charge, net of tax. Effective January 1, 2020, the amortization of unrecognized gains and losses of all of the Company's qualified defined benefit pension plans is recognized over the remaining life expectancy of participants, as nearly all participants are considered inactive as a result of plan amendments. In the third quarter of 2018, the Company approved amendments to one of its foreign defined benefit pension plans, which closed the plan to future service accruals effective August 31, 2018. As a result of the amendments, in the third quarter of 2018, the Company recognized a curtailment gain of approximately $4.7 million , net of tax, in Accumulated other comprehensive income. In addition, effective August 31, 2018, the amortization of actuarial gains and losses is being recognized over the remaining life expectancy of the participants of this plan, as all participants are considered inactive as a result of the amendment. In 2018, we completed transactions with a third-party insurer to settle approximately $28 million of projected benefit obligation of our domestic qualified defined benefit pension plans. The Company's U.S. defined benefit pension plans were approximately 88% of the $938.7 million total pension benefit obligations at December 31, 2019 . The following table sets forth the reconciliation of beginning and ending balances of the benefit obligations and the plan assets for the Company’s defined benefit pension and other benefit plans at December 31, (in millions): Pension Benefits Other Benefits 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 844.3 $ 956.1 $ 26.1 $ 27.0 Acquisitions — 1.3 — — Service cost 2.2 3.8 0.1 0.1 Interest cost 34.6 34.3 1.1 1.0 Plan participants’ contributions 0.4 0.4 — — Amendments — 3.6 — — Actuarial loss/(gain) 107.0 (72.4 ) (2.0 ) (0.5 ) Curtailment gain — (5.7 ) — — Currency impact 3.6 (5.7 ) — — Other 0.1 (0.5 ) — — Benefits paid (53.5 ) (70.9 ) (1.5 ) (1.5 ) Benefit obligation at end of year $ 938.7 $ 844.3 $ 23.8 $ 26.1 Change in plan assets Fair value of plan assets at beginning of year $ 670.1 $ 738.8 $ — $ — Acquisitions — 1.2 — — Actual return on plan assets 106.2 (27.5 ) — — Employer contributions 16.4 34.0 1.5 1.5 Plan participants’ contributions 0.4 0.4 — — Currency impact 3.8 (5.9 ) — — Benefits paid (53.5 ) (70.9 ) (1.5 ) (1.5 ) Fair value of plan assets at end of year $ 743.4 $ 670.1 $ — $ — FUNDED STATUS $ (195.3 ) $ (174.2 ) $ (23.8 ) $ (26.1 ) Amounts recognized in the consolidated balance sheet consist of: Prepaid pensions (included in Other long-term assets) $ 8.6 $ 8.0 $ — $ — Accrued benefit liability (short-term and long-term) (203.9 ) (182.2 ) (23.8 ) (26.1 ) NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET $ (195.3 ) $ (174.2 ) $ (23.8 ) $ (26.1 ) Amounts recognized in Accumulated other comprehensive loss (income) consist of: Net actuarial loss $ 263.4 $ 240.8 $ 0.3 $ 2.4 Prior service cost (credit) 3.6 4.1 (0.4 ) (1.3 ) NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS $ 267.0 $ 244.9 $ (0.1 ) $ 1.1 The accumulated benefit obligation for all defined benefit pension plans was $933.5 million and $835.6 million at December 31, 2019 and 2018 , respectively. Information with respect to plans with accumulated benefit obligations in excess of plan assets is as follows, (in millions): 2019 2018 Projected benefit obligation $ 823.8 $ 744.0 Accumulated benefit obligation $ 819.0 $ 735.4 Fair value of plan assets $ 620.0 $ 561.7 The following table sets forth the components of pension and other benefit costs for the years ended December 31, (in millions): Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 2.2 $ 3.8 $ 5.9 $ 0.1 $ 0.1 $ 0.1 Interest cost 34.6 34.3 37.2 1.1 1.0 1.0 Expected return on plan assets (30.7 ) (33.5 ) (34.1 ) — — — Amortization of prior service cost (credit) 0.2 0.1 0.1 (0.9 ) (0.8 ) (1.0 ) Amortization of actuarial losses (gains) 9.6 10.5 11.4 0.1 — — Curtailment and settlement losses 0.3 — 0.4 — — — Net periodic benefit cost $ 16.2 $ 15.2 $ 20.9 $ 0.4 $ 0.3 $ 0.1 Changes recognized in other comprehensive loss (income), before tax: Current year net actuarial loss (gain) $ 31.5 $ (15.8 ) $ 4.2 $ (2.0 ) $ (0.4 ) $ 1.4 Current year prior service credit — 2.0 0.3 — — — Amortization of prior service (cost) credit (0.2 ) (0.1 ) (0.1 ) 0.9 1.0 1.0 Amortization of net actuarial (losses) gains (9.6 ) (10.5 ) (11.4 ) (0.1 ) (0.2 ) — Currency impact 0.7 (1.3 ) 3.5 — — — Other adjustments (0.3 ) — (0.4 ) — — — Total recognized in other comprehensive loss 22.1 (25.7 ) (3.9 ) (1.2 ) 0.4 2.4 TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS $ 38.3 $ (10.5 ) $ 17.0 $ (0.8 ) $ 0.7 $ 2.5 The Company also maintains five primary defined contribution pension plans. The total cost of the Company's defined contribution plans was $23.4 million in 2019 , $22.5 million in 2018 and $19.8 million in 2017 , excluding the employer match for the 401(k) plan. This cost is not included in the above net periodic benefit cost for the defined benefit pension plans. In 2018 and 2019 the Company participated in one multi-employer defined benefit pension plan. The Company participated in another multi-employer pension plan that it withdrew from in 2017. The Company’s total contributions while participating in these plans was $0.2 million in 2019 , $0.2 million in 2018 , and $0.4 million in 2017 . The risks of participating in multi-employer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may have to be assumed by the remaining participant employers. If we choose to stop participating in a multi-employer plan we may be required to pay those plans a withdrawal liability based on the unfunded status of the plan. In 2016, the Company recorded a charge of $12.5 million in Cost of goods sold representing the estimated withdrawal liability from a multi-employer plan from which it subsequently withdrew in 2017. In March 2019, the remaining employer in that multi-employer pension plan filed for protection under Chapter 11 of the United States Bankruptcy Code and was proceeding towards liquidation as of June 2019. It was therefore deemed probable that the Company would be subject to mass withdrawal liability under the terms customary to multi-employer plans. Further, the trustees of the pension fund announced the termination of the multi-employer pension plan and declared the amounts attributed to the other employer uncollectable. In December 2019, the Company entered into a settlement agreement with the multi-employer pension plan. As a result, the Company recognized an additional $8.5 million net charge in 2019 to settle the mass withdrawal obligation and a $10.0 million cash payment in the fourth quarter of 2019, with remaining cash payments of $6.0 million and $5.0 million due in 2020 and 2021, respectively. Assumptions The following assumptions were used to determine the projected benefit obligations at the measurement date and the net periodic benefit cost for the year: Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 Weighted-average assumptions used to determine benefit obligations at December 31, Discount rate 3.17 % 4.24 % 3.67 % 3.30 % 4.40 % 3.70 % Rate of compensation increase 2.94 % 3.25 % 3.24 % 4.00 % 4.05 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, Discount rate 4.24 % 3.67 % 4.12 % 4.40 % 3.70 % 4.10 % Expected return on plan assets 4.75 % 4.68 % 4.94 % N/A N/A N/A Rate of compensation increase 3.25 % 3.24 % 3.55 % 4.05 % 4.00 % 3.93 % At the end of each year, the Company determines the appropriate expected return on assets for each plan based upon its strategic asset allocation (see discussion below). In making this determination, the Company utilizes expected returns for each asset class based upon current market conditions and expected risk premiums for each asset class. The Company also determines the discount rate to be used to calculate the present value of pension plan liabilities at the end of each year. The discount rate for the Company’s U.S. and Canadian pension plans is determined by matching the expected cash flows associated with its benefit obligations to the expected cash flows of a hypothetical portfolio of high quality, fixed income debt instruments with maturities that closely match the expected funding period of its pension liabilities. As of December 31, 2019 , the Company used a discount rate of 3.30% for its U.S. pension plans compared to a discount rate of 4.40% used in 2018 . For its Canadian pension plan, the Company used a discount rate of 3.00% as of December 31, 2019 compared to the 3.60% discount rate used in 2018 . For its UK pension plan the discount rate was derived using a full yield curve and uses plan specific cash flows. The derived discount rate is the single discount rate equivalent to discounting these liability cash flows at the term-dependent spot rate of AA corporate bonds. This methodology resulted in a December 31, 2019 discount rate for the UK pension plan of 2.10% as compared to a discount rate of 2.90% used in 2018 . In 2019 we changed the mortality table used to calculate the present value of our pension plan liabilities from the RP-2014 mortality table, with generational projection from 2006 using Scale MP-2018 to the Pri-2012 mortality table, with generational projection from 2012 using Scale MP-2019. That change did not have a material impact to the projected benefit obligation of our U.S. plans upon remeasurement at December 31, 2019. The Pri-2012 mortality table, with generational projection from 2012 using Scale MP-2019 was chosen as the best estimate based on the observed and anticipated experience of the plans after considering alternative tables. The rate of compensation increase assumption reflects the Company’s actual experience and best estimate of future increases. The assumed health care cost trend rates used to determine the projected postretirement benefit obligation are as follows: Other Benefits 2019 2018 2017 Assumed health care cost trend rates at December 31, Health care cost trend assumed for next year 6.6 % 6.8 % 7.0 % Rate to which the cost trend is assumed to decline 5.0 % 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2028 2028 2028 Plan Assets The Company’s combined targeted 2020 weighted average asset allocation for domestic and foreign pension plans and the actual weighted average asset allocation for domestic and foreign pension plans at December 31, 2019 and 2018 by asset category are as follows: Percentage of Plan Assets Target Actual Asset Category 2020 2019 2018 Equity securities 22 % 25 % 19 % Debt securities & Cash 76 % 73 % 67 % Alternative Investments 2 % 2 % 14 % TOTAL 100 % 100 % 100 % At the end of each year, the Company estimates the expected long-term rate of return on pension plan assets based on the strategic asset allocation for its plans. In making this determination, the Company utilizes expected rates of return for each asset class based upon current market conditions and expected risk premiums for each asset class. The Company has written investment policies and asset allocation guidelines for its domestic and foreign pension plans. In establishing these policies, the Company has considered that its various pension plans are a major retirement vehicle for most plan participants and has acted to discharge its fiduciary responsibilities with regard to the plans solely in the interest of such participants and their beneficiaries. The goal underlying the establishment of the investment policies is to provide that pension assets shall be invested in a prudent manner and so that, together with the expected contributions to the plans, the funds will be sufficient to meet the obligations of the plans as they become due. To achieve this result, the Company conducts a periodic strategic asset allocation study to form a basis for the allocation of pension assets between various asset categories. Specific policy benchmark percentages are assigned to each asset category with minimum and maximum ranges established for each. The assets are then tactically managed within these ranges. Derivative investments include futures contracts used by the plan to adjust the level of its investments within an asset allocation category. The actual and target percentages reported in the preceding table reflect the economic exposure to each asset category, including the impact of derivative positions. All futures contracts are 100% supported by cash or cash equivalent investments. At no time may derivatives be utilized to leverage the asset portfolio. At December 31, 2019 and 2018, there were no holdings of Company stock in pension plan assets. The Company’s other post-employment benefits are unfunded; therefore, no asset information is reported. The fair value of the Company’s pension plan assets at December 31, 2019 and 2018 , by asset category are as follows (in millions): Quoted Prices in Active Markets for Identical Assets Quoted Prices in Active Market for Similar Asset Significant Unobservable Inputs Investments Priced Using Net Asset Value Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 16.6 $ 16.6 $ — $ — $ — Equity securities: Equity Mutual Funds 31.6 31.6 — — — Common Pooled Equity Funds (b) 144.0 — 144.0 — — Fixed Income Securities: U.S. Treasuries 64.5 — 64.5 — — State and Local Municipal Bonds 9.4 — 9.4 — — Sovereign Debt 7.6 — 7.6 — — Corporate Bonds (c) 122.9 0.1 122.8 — — Fixed Income Mutual Funds 54.2 54.2 — — — Common Pooled Fixed Income Funds (d) 252.3 — 252.3 — — Alternative Investment Funds (e) 18.1 — 0.9 — 17.2 Common Pooled Funds (f) 22.2 0.5 21.7 — — BALANCE AT DECEMBER 31, 2019 $ 743.4 $ 103.0 $ 623.2 $ — $ 17.2 Quoted Prices in Active Markets for Identical Assets Quoted Prices in Active Market for Similar Asset Significant Unobservable Inputs Investments Priced Using Net Asset Value Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 47.0 $ 47.0 $ — $ — $ — Equity securities: U.S. Large-cap (g) 8.2 8.2 — — — U.S. Mid-cap and Small-cap Growth (h) 3.1 3.1 — — — International Large-cap 8.6 8.6 — — — Emerging Markets (a) 13.3 8.1 5.2 — — Common Pooled Equity Funds (b) 12.7 — 12.7 — — Fixed Income Securities: U.S. Treasuries 378.0 — 378.0 — — Corporate Bonds (c) 0.3 0.3 — — — Asset Backed Securities and Other 22.8 — 22.8 — — Common Pooled Fixed Income Funds (d) 61.8 — 57.6 — 4.2 Derivatives: Assets (i) 8.2 8.0 0.2 — — (Liabilities) (i) (7.9 ) (6.9 ) (1.0 ) — — Alternative Investment Funds (e) 96.8 11.6 3.3 — 81.9 Common Pooled Funds (f) 17.7 0.9 16.8 — — BALANCE AT DECEMBER 31, 2018 $ 670.6 $ 88.9 $ 495.6 $ — $ 86.1 (a) Includes open ended emerging markets mutual funds. (b) Investments in Common Pooled Equity Funds, including funds and fund products investing in various equity securities (c) Includes primarily investment grade bonds from diverse industries (d) Investments in Common Pooled Fixed Income Funds, including funds and fund products investing in various fixed income investments (e) Includes investments in hedge funds, including fund of funds products and open end mutual funds (f) Investments in Common Pooled Funds, consisting of equities and fixed income securities (g) Includes an actively managed portfolio of large-cap U.S. stocks. (h) Includes an investment in a small cap open ended mutual fund. (i) Includes primarily U.S. and foreign equity futures as well as foreign fixed income futures and positions in U.S. Treasury futures to adjust the duration of the portfolio. Investments priced using Net Asset Value ("NAV") within Alternative Investment Funds in the preceding tables consist of fund of fund products. These products invest in a number of investment funds managed by a diversified group of third-party investment managers who employ a variety of alternative investment strategies, including relative value, security selection, distressed value, global macro, specialized credit and directional strategies. The objective of these funds is to achieve the desired capital appreciation with lower volatility than either traditional equity or fixed income securities. Contributions The Company made $10.4 million of contributions to its qualified defined benefit pension plans in 2019, including $10.0 million of U.S. voluntary contributions that were not required under the Pension Protection Act of 2006. Further, as stated earlier within this Note 11, the Company entered into a settlement agreement with a multi-employer pension plan in December of 2019 and, pursuant to that agreement, made a $10.0 million cash payment in the fourth quarter of 2019, with remaining scheduled cash payments of $6.0 million and $5.0 million due in 2020 and 2021, respectively. The Company expects to contribute approximately $4.3 million to its foreign plans in 2020 . Estimated Future Benefit Payments The following domestic and foreign benefit payments, which reflect future service, as appropriate, are expected to be paid as follows, (in millions): Pension Benefits Other Benefits 2020 $ 53.9 $ 2.2 2021 $ 53.2 $ 2.1 2022 $ 54.8 $ 2.0 2023 $ 55.3 $ 1.9 2024 $ 55.2 $ 1.8 2025-2028 $ 270.3 $ 7.5 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth the Company’s long-term debt at December 31, (in millions): Maturity 2019 2018 Senior notes at 3.625% 2022 $ 298.8 $ 298.3 Senior notes at 3.35% 2026 395.7 395.1 Senior notes at 3.15% 2027 295.9 295.4 Senior notes at 3.50% 2028 444.0 443.3 Term loan, net of current portion of $34.4 and $25 million, respectively 2023 71.6 305.0 TOTAL LONG-TERM DEBT (a) $ 1,506.0 $ 1,737.1 (a) Long-term debt is presented net of debt issuance costs and unamortized discounts. In February 2018, the Company completed a public offering of $450 million of senior, unsecured, notes maturing in February 2028 and bearing interest at a fixed rate of 3.50% (the "2028 Notes"). Net proceeds from the issuance of the 2028 Notes were $442.6 million after deducting the discount on such notes and offering expenses paid by the Company. The 2028 Notes are callable at any time at specified prices and are only subject to accelerated payment prior to maturity upon customary events of a default under the indenture governing the 2028 Notes, as modified by the supplemental indenture creating such notes, or upon a change in control triggering event as defined in such indenture. In January 2018, the Company entered into the Term Loan Agreement. The Term Loan Agreement provided the Company, with the ability to borrow, in a single borrowing on the Aclara acquisition date, up to $500 million on an unsecured basis to partially finance the Aclara acquisition (the "Term Loan"). On February 2, 2018, the Company borrowed $500 million under the Term Loan Agreement. The interest rate applicable to borrowings under the Term Loan Agreement is generally either adjusted LIBOR plus an applicable margin (determined by a ratings based grid) or the alternate base rate. The principal amount of borrowings under the Term Loan Agreement amortize in equal quarterly installments of 5% per year in year one, 5% per year in year two, 7.5% per year in year three, 10% per year in year four, 10% per year in year five, and any remaining borrowings under the Term Loan Agreement are due and payable in full in February 2023. The Company may also make principal payments in excess of the amortization schedule at its discretion. Proceeds of the 2028 Notes and Term Loan were used to fund the Aclara acquisition. In December 2019, the Company made discretionary payments of $200 million against the outstanding principal amount of the Term Loan. The sole financial covenant in the Term Loan Agreement requires that total debt not exceed 65% of total capitalization as of the last day of each fiscal quarter of the Company. The Company was in compliance with this covenant as of December 31, 2019 and 2018. In January 2018, the Company entered into the 2018 Credit Facility with a syndicate of lenders that provides a $750 million committed revolving credit facility. In connection with the acquisition of Aclara, the Company terminated all commitments under the Company's previous 2015 credit facility. Commitments under the 2018 Credit Facility may be increased to an aggregate amount not to exceed $1.250 billion . The interest rate applicable to borrowings under the 2018 Credit Facility is generally either adjusted LIBOR plus an applicable margin (determined by a ratings based grid) or the alternate base rate. The 2018 Credit Facility expires in February 2023. The sole financial covenant in the 2018 Credit Facility requires that total debt not exceed 65% of total capitalization as of the last day of each fiscal quarter of the Company. The Company was in compliance with this covenant as of December 31, 2019 . As of December 31, 2019 , the Company has not drawn against the 2018 Credit Facility. In August 2017, the Company completed a public debt offering of $300 million of long-term unsecured, unsubordinated notes maturing in August 2027 and bearing interest at a fixed rate of 3.15% (the "2027 Notes"). Net proceeds from the issuance were $294.6 million after deducting the discount on the notes and offering expenses paid by the Company. In September 2017, the Company applied the net proceeds from the 2027 Notes to redeem all of its $300 million outstanding long-term, unsecured, unsubordinated notes maturing in 2018 and bearing interest at a fixed rate of 5.95% (the "2018 Notes"). In connection with this redemption, the Company recognized a loss on the early extinguishment of the 2018 Notes of $10.1 million on a before-tax basis. In March 2016, the Company completed a public debt offering of $400 million of long-term unsecured, unsubordinated notes maturing in March 2026 and bearing interest at a fixed rate of 3.35% (the "2026 Notes"). Net proceeds from the issuance were $393.4 million after deducting the discount on the notes and offering expenses paid by the Company. In November 2010, the Company completed a public debt offering for $300 million of long-term unsecured, unsubordinated notes maturing in November 2022 (“2022 Notes”) and bearing interest at a fixed rate of 3.625% . Prior to the issuance of the 2022 Notes, the Company entered into a forward interest rate lock which resulted in a $1.6 million loss. This amount was recorded in Accumulated other comprehensive loss, net of tax, and is being amortized over the life of the 2022 Notes. The 2022 Notes, 2026 Notes, 2027 Notes and 2028 Notes, are all fixed rate indebtedness, are callable at any time with a make whole premium and are only subject to accelerated payment prior to maturity in the event of a default (including as a result of the Company's failure to meet certain non-financial covenants) under the indenture governing the notes, as modified by the supplemental indentures creating such notes, or upon a change in control triggering event as defined in such indenture. The Company was in compliance with all non-financial covenants as of December 31, 2019 . At December 31, 2019 and 2018 , the Company had $65.4 million and $56.1 million , respectively, of short-term debt outstanding composed of; ◦ $26.0 million of commercial paper borrowings outstanding at December 31, 2019 and 2018. ◦ $34.4 million at December 31, 2019 and $25.0 million at December 31, 2018, respectively, of long-term debt classified as short-term within current liabilities in the Consolidated Balance Sheets, reflecting maturities within the next twelve months relating to our borrowing under the Term Loan. ◦ $5.0 million at December 31, 2019 and $5.1 million at December 31, 2018, respectively, of borrowings to support our international operations in China. Other information related to short-term debt at December 31, is summarized below: 2019 2018 Interest rate on short-term debt: At year end 2.59 % 3.21 % The Company also maintains other lines of credit that are primarily used to support the issuance of letters of credit. Interest rates and other terms of borrowing under these lines of credit vary from country to country, depending on local market conditions. At December 31, 2019 and 2018 these lines totaled $23.0 million and $54.8 million , respectively, of which $15.7 million and $20.3 million was utilized to support letters of credit and the remaining amount was unused. The annual commitment fees associated with these lines of credit are not material. Interest and fees paid related to total indebtedness was $62.8 million , $59.5 million and $47.9 million in 2019 , 2018 and 2017 , respectively. The $47.9 million paid in 2017 includes $9.9 million related to the make whole payment for the extinguishment of the 2018 Notes. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table sets forth selected data with respect to the Company’s income tax provisions for the years ended December 31, (in millions): 2019 2018 2017 Income before income taxes: United States $ 406.7 $ 360.8 $ 354.7 International 113.8 106.2 88.4 TOTAL INCOME BEFORE INCOME TAXES $ 520.5 $ 467.0 $ 443.1 Provision for income taxes — current: Federal $ 65.0 $ 12.3 $ 164.1 State 16.6 21.8 15.3 International 25.4 17.8 28.1 Total provision — current 107.0 51.9 207.5 Provision for income taxes — deferred: Federal 8.6 35.0 (10.4 ) State 0.5 9.4 (0.9 ) International (3.0 ) 4.6 (3.0 ) Total provision — deferred 6.1 49.0 (14.3 ) TOTAL PROVISION FOR INCOME TAXES $ 113.1 $ 100.9 $ 193.2 As a result of the enactment of TCJA on December 22, 2017, the Company recognized a provisional estimate of $56.5 million in the fourth quarter of 2017 to account for specific income tax effects of the TCJA for which a reasonable estimate could be determined. During 2018, the Company completed its analysis of the specific income tax effects of TCJA and recognized a net tax benefit of approximately $6 million from adjustments to the prior provisional estimates and to record amounts related to items for which a prior provisional estimate had not been made. Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statement purposes. The components of the deferred tax assets/(liabilities) at December 31, were as follows (in millions): 2019 2018 Deferred tax assets: Inventories $ 10.1 $ 6.2 Right-of-use assets 24.8 — Income tax credits 26.9 24.5 Accrued liabilities 37.8 35.9 Pension 53.4 49.6 Post retirement and post employment benefits 6.0 6.6 Stock-based compensation 9.7 13.1 Loss Carryforwards 21.3 22.2 Miscellaneous other 11.9 8.8 Gross deferred tax assets 201.9 166.9 Valuation allowance (29.0 ) (21.8 ) Total deferred tax assets, net of valuation allowance 172.9 145.1 Deferred tax liabilities: Liability on undistributed foreign earnings (8.6 ) (10.9 ) Goodwill and Intangibles (212.3 ) (206.4 ) Lease liabilities (24.2 ) — Property, plant, and equipment (48.4 ) (41.4 ) Total deferred tax liabilities (293.5 ) (258.7 ) TOTAL NET DEFERRED TAX LIABILITY $ (120.6 ) $ (113.6 ) Deferred taxes are reflected in the Consolidated Balance Sheet as follows: Non-current tax assets (included in Other long-term assets) 6.2 6.4 Non-current tax liabilities (included in Other Non-Current Liabilities) (126.8 ) (120.0 ) TOTAL NET DEFERRED TAX LIABILITY $ (120.6 ) $ (113.6 ) As of December 31, 2019 , the Company had a total of $26.9 million of U.S. federal, state (net of federal benefit) and foreign tax credit carryforwards, available to offset future income taxes. As of December 31, 2019 , $15.5 million of the tax credits may be carried forward indefinitely while the remaining $11.4 million will begin to expire at various times in 2020 through 2036. As of December 31, 2019 , the Company had recorded tax benefits totaling $20.1 million for U.S. federal, state and foreign net operating loss carryforwards (“NOLs”). As of December 31, 2019 , $7.4 million of NOLs may be carried forward indefinitely while the remaining $12.7 million will begin to expire at various times in 2021 through 2038. The tax benefit related to a portion of these NOLs has been adjusted to reflect an “ownership change” pursuant to Internal Revenue Code Section 382, which imposes an annual limitation on the utilization of pre-acquisition operating losses. The Company has recorded a net valuation allowance of $29.0 million for the portion of the foreign tax and state tax credit carryforwards, capital loss carryforwards and foreign NOLs that the Company anticipates will expire prior to utilization. During 2019, the Company repatriated certain of its foreign earnings. As of December 31, 2019, the Company also anticipates repatriating certain of its foreign earnings in the future. The accompanying financial statements reflect the income tax expense associated with actual and anticipated remittances related to certain of our outside basis differences. The Company has not provided for the income tax effects of distributing the remaining approximately $250 million of undistributed foreign earnings as those amounts are either permanently reinvested or intended to be reinvested in our international operations. It is not practicable to estimate the tax cost associated with a remittance of such earnings. Cash payments of income taxes were $91.9 million , $106.3 million and $130.8 million in 2019 , 2018 , and 2017 , respectively. The Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The IRS and other tax authorities routinely audit the Company’s tax returns. These audits can involve complex issues which may require an extended period of time to resolve. The Company is not currently under U.S. federal examination for any open tax year. With few exceptions, the Company is no longer subject to state, local, or income tax examinations by tax authorities for years prior to 2015. The following tax years, by major jurisdiction, are still subject to examination by taxing authorities: Jurisdiction Open Years United States 2016-2019 UK 2018-2019 Puerto Rico 2015-2019 Canada 2015-2019 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2019 2018 2017 Unrecognized tax benefits at beginning of year $ 38.9 $ 29.5 $ 20.2 Additions based on tax positions relating to the current year 7.0 3.8 13.6 Reductions based on expiration of statute of limitations (5.2 ) (1.7 ) (1.4 ) Additions to tax positions relating to previous years 1.6 7.4 1.0 Settlements (0.4 ) (0.1 ) (3.9 ) TOTAL UNRECOGNIZED TAX BENEFITS $ 41.9 $ 38.9 $ 29.5 Included in the balance at December 31, 2019 are approximately $33.4 million of tax positions which, if in the future are determined to be recognizable, would affect the annual effective income tax rate. Additionally, there are $5.2 million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the applicable taxing authority to an earlier period. It is reasonably possible that in the next twelve months, because of changes in facts and circumstances, the unrecognized tax benefits may increase or decrease. The Company estimates a possible decrease of approximately $5.0 million to $7.0 million within the next twelve months due to the expiration of the statute of limitations. The Company’s policy is to record interest and penalties associated with the underpayment of income taxes within Provision for income taxes in the Consolidated Statement of Income. The Company recognized expense, before federal tax impact, related to interest and penalties of approximately $0.1 million in 2019 , $1.8 million in 2018 and $0.5 million in 2017 . The Company had $7.1 million and $7.0 million accrued for the payment of interest and penalties as of December 31, 2019 and December 31, 2018 , respectively. The consolidated effective income tax rate varied from the United States federal statutory income tax rate for the years ended December 31, as follows: 2019 2018 2017 Federal statutory income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.8 4.5 1.2 Foreign income taxes (0.7 ) (1.1 ) (3.1 ) Federal R&D Credit (1.2 ) (1.0 ) (1.0 ) TCJA and related — (1.3 ) 12.8 Other, net (0.2 ) (0.5 ) (1.3 ) CONSOLIDATED EFFECTIVE INCOME TAX RATE 21.7 % 21.6 % 43.6 % The foreign income tax benefit shown is primarily due to lower statutory rates in foreign jurisdictions compared to the Federal statutory income tax rate. The TCJA and related benefit in 2018 is primarily related to net favorable adjustments to the TCJA provisional estimate recorded in 2017. |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurement Financial Instruments Concentrations of Credit Risk: Financial instruments which potentially subject the Company to significant concentrations of credit risk consist of trade receivables, cash equivalents and investments. The Company grants credit terms in the normal course of business to its customers. Due to the diversity of its product lines, the Company has an extensive customer base including electrical distributors and wholesalers, electric utilities, equipment manufacturers, electrical contractors, telecommunication companies and retail and hardware outlets. No single customer accounted for more than 10% of total sales in any year during the three years ended December 31, 2019 . However, the Company’s top ten customers account for approximately 41% of its net sales. As part of its ongoing procedures, the Company monitors the credit worthiness of its customers. Bad debt write-offs have historically been minimal. The Company places its cash and cash equivalents with financial institutions and limits the amount of exposure in any one institution. Fair Value: The carrying amounts reported in the Consolidated Balance Sheet for cash and cash equivalents, short-term investments, receivables, bank borrowings, accounts payable and accruals approximate their fair values given the immediate or short-term nature of these items. See also Note 7 — Investments. Fair value measurements At December 31, 2019 and 2018 the Company had $69.9 million and $65.5 million respectively, of investments carried on the balance sheet at fair value. 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. Refer to Note 7 — Investments for more information about these investments. 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 tables show, by level within the fair value hierarchy, the Company’s financial assets and liabilities that are accounted for at fair value on a recurring basis at December 31, 2019 and 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 Money market funds (a) $ 27.5 $ — $ — $ 27.5 Available for sale investments — 50.7 — 50.7 Trading securities 19.2 — — 19.2 Deferred compensation plan liabilities (19.2 ) — — (19.2 ) Derivatives: Forward exchange contracts-Assets (b) — — — — Forward exchange contracts-(Liabilities) (c) — (0.3 ) — (0.3 ) BALANCE AT DECEMBER 31, 2019 $ 27.5 $ 50.4 $ — $ 77.9 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 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) — — — — BALANCE AT DECEMBER 31, 2018 $ 15.1 $ 71.4 $ 2.3 $ 88.8 (a) Money market funds and time deposits are included in Cash and cash equivalents in the Consolidated Balance Sheet. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Consolidated Balance Sheet. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Consolidated Balance Sheet. The methods and assumptions used to estimate the Level 2 fair values were as follows: Forward exchange contracts – The fair value of forward exchange contracts were based on quoted forward foreign exchange prices at the reporting date. Municipal bonds – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. 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 assumptions regarding expected cash flows and discount rates. As of December 31, 2018 , the Company had one financial asset that was classified in Level 3 of the fair value hierarchy. In the third quarter of 2019, the Company disposed of an available-for-sale investment that was previously classified in Level 3 of the fair value hierarchy. Deferred compensation plan The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. During 2019 and 2018 , the Company purchased $3.2 million and $2.7 million , respectively, of trading securities related to these deferred compensation plans. As a result of participant distributions, the Company sold $1.3 million and $1.5 million of these trading securities in 2019 and 2018 respectively. 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 proposed 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 or liability are recognized in income. Forward exchange contracts In 2019 and 2018 , the Company entered into a series of forward exchange contracts to purchase U.S. dollars in order to hedge its exposure to fluctuating rates of exchange on anticipated inventory purchases and forecasted sales by its subsidiaries who transact business in Canadian dollars. As of December 31, 2019 , the Company had 36 individual forward exchange contracts for notional amounts which range from $0.5 million to $1.6 million each, which have various expiration dates through December 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 years ended December 31, (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss, net of tax Location of Gain/(Loss) when reclassified Gain/(Loss) Reclassified into Earnings (Effective Portion), net of tax Derivative Instrument 2019 2018 (Effective Portion) 2019 2018 Forward exchange contract $ (0.8 ) $ 1.9 Net sales $ 0.2 $ 0.1 Cost of goods sold $ 0.3 $ 0.2 There was no material hedge ineffectiveness with respect to the forward exchange cash flow hedges during 2019 , 2018 and 2017 . Long-term Debt The total carrying value of long-term debt including the $34.4 million current portion of the Term Loan as of December 31, 2019 was $1,540.4 million , net of unamortized discount and debt issuance costs. As of December 31, 2019 the total carrying value of long-term debt was 1,506.0 million, net of unamortized discount and debt issuance costs. As of December 31, 2019 and 2018 , the estimated fair value of the long-term debt was $1,592.2 million and $1,688.1 million , respectively, based on quoted market prices. The Company’s long-term debt falls within level 2 of the fair value hierarchy. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and Environmental 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 the multi-employer plans from which it subsequently withdrew in 2017. In March 2019, the remaining employer in that multi-employer pension plan filed for protection under Chapter 11 of the United States Bankruptcy Code and was proceeding towards liquidation as of June 2019. As a result of the other employer's withdrawal from the pension plan and the plan's termination, under the terms customary to multi-employer pension plans, it was probable that the Company would be subject to mass withdrawal liability. In December 2019, the Company entered into a settlement agreement with the multi-employer pension plan. As a result, the Company recognized an additional $8.5 million net charge in 2019 to settle the mass withdrawal obligation and a $10.0 million cash payment in the fourth quarter of 2019, with remaining cash payments of $6.0 million and $5.0 million due in 2020 and 2021, respectively. The Company is subject to environmental laws and regulations which may require that it investigate and remediate the effects of potential contamination associated with past and present operations as well as those acquired through business combinations. Environmental liabilities are recorded when remedial efforts are probable and the costs can be reasonably estimated. The Company continues to monitor these environmental matters and revalues its liabilities as necessary. Total environmental liabilities were $8.0 million and $8.5 million as of December 31, 2019 and 2018 , respectively. The Company accounts for conditional asset retirement and environmental obligations in accordance with the applicable accounting guidance. The accounting guidance defines “conditional asset retirement obligation” as a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. Accordingly, an entity is required to recognize a liability for the fair value of a conditional asset retirement obligation if the fair value of the liability can be reasonably estimated. Asset retirement obligations were not material as of December 31, 2019 and 2018 . |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Capital Stock Activity in the Company’s common shares outstanding is set forth below for the three years ended December 31, 2019 (in thousands): Common Stock OUTSTANDING AT DECEMBER 31, 2016 55,532 Exercise of stock options/stock appreciation rights 53 Director compensation arrangements, net 10 Restricted/performance shares activity, net of forfeitures 89 Acquisition/surrender of shares (802 ) OUTSTANDING AT DECEMBER 31, 2017 54,882 Exercise of stock appreciation rights 66 Director compensation arrangements, net 11 Restricted/performance shares activity, net of forfeitures 165 Acquisition/surrender of shares (409 ) OUTSTANDING AT DECEMBER 31, 2018 54,715 Exercise of stock appreciation rights 84 Director compensation arrangements, net 10 Restricted/performance shares activity, net of forfeitures 39 Acquisition/surrender of shares (334 ) OUTSTANDING AT DECEMBER 31, 2019 54,514 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 and Retained earnings to the extent required. Shares may be repurchased through the Company’s stock repurchase program, acquired by the Company from employees or surrendered to the Company by employees in settlement of their minimum tax liability on vesting of restricted shares and performance shares under the Hubbell Incorporated 2005 Incentive Award Plan as amended and restated, (the “Award Plan”). Shares of the Company’s common stock were reserved at December 31, 2019 as follows (in thousands): Common Stock Future grant of stock-based compensation 2,333 Shares reserved under other equity compensation plans 152 TOTAL 2,485 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of December 31, 2019 , the Company had various stock-based awards outstanding which were issued to executives and other key employees. The Company recognizes the grant-date fair value of all stock-based awards to employees over their respective requisite service periods (generally equal to an award’s vesting period), net of estimated forfeitures. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. For those awards that vest immediately upon retirement eligibility, the Company recognizes compensation cost immediately for retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The Company’s long-term incentive program for awarding stock-based compensation includes a combination of restricted stock, stock appreciation rights (“SARs”), and performance shares of the Company’s Common Stock pursuant to the Award Plan. Under the Award Plan, the Company may authorize up to 9.7 million shares of Common Stock to settle awards of restricted stock, performance shares, or SARs. The Company issues new shares to settle stock-based awards. In 2019 , the Company's grant of stock-based awards, primarily issued in connection with promotions during 2019, included restricted stock and SARs. Stock-based compensation expense recognized by the Company was $16.4 million in 2019 , $24.2 million in 2018 and $22.3 million in 2017 , and was lower in 2019 as the Company shifted the timing of its annual grant from the fourth quarter of 2019 to the first quarter of 2020. The total income tax benefit recognized was $2.2 million in 2019 , $5.3 million in 2018 , and $5.4 million in 2017 . The net tax windfall recorded as a result of exercise or vesting (depending on the type of award) was $3.3 million , $2.4 million , and $2.5 million in 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , there was $14.2 million , pretax, of total unrecognized compensation cost related to non-vested share-based compensation arrangements. This cost is expected to be primarily recognized through 2021 . Stock-based compensation expense is recorded in S&A expense as well as Cost of goods sold. Of the total 2019 expense, $15.4 million was recorded to S&A expense and $1.0 million was recorded to Cost of goods sold. In 2018 and 2017 , $23.4 million and $21.1 million , respectively, was recorded to S&A expense and $0.8 million and $1.2 million , respectively, was recorded to Cost of goods sold. Stock-based compensation costs capitalized to inventory was $0.2 million in 2019 , $0.2 million in 2018 and $0.3 million in 2017 . Each of the compensation arrangements is discussed below. Restricted Stock The Company issues various types of restricted stock awards all of which are considered outstanding at the time of grant, as the award holders are entitled to dividends and voting rights. Unvested restricted stock awards are considered participating securities when computing earnings per share. Restricted stock grants are not transferable and are subject to forfeiture in the event of the recipient’s termination of employment prior to vesting. Restricted Stock Issued to Employees - Service Condition Restricted stock awards that vest based upon a service condition are expensed on a straight-line basis over the requisite service period. These awards generally vest in three equal installments on each of the first three anniversaries of the grant date, however in December 2018 and July 2019 the company granted a certain number of these awards that vest on the third year anniversary of the grant date. The f air value of these awards is measured by the average of the high and low trading prices of the Company’s common stock on the most recent trading day immediately preceding the grant date (“measurement date”). Restricted Stock Issued to Employees - Market Condition The Company granted certain restricted stock awards that vest subject to the achievement of a market-based condition (referred to a performance based restricted stock, or PBRS). These awards were granted to certain employees in 2016 and 2017 . No PBRS awards were granted in 2018 or 2019. PBRS awards are expensed on a straight-line basis over the requisite service period which starts on the date of the grant and ends upon the completion of the performance period. Expense is recognized irrespective of the market condition being achieved. PBRS awards will be earned if the Company’s relative TSR performance over a three year period is equal to or exceeds the 20th percentile as compared to the TSR of other companies in the S&P Capital Goods 900 Index, and service through the requisite service period or the retirement-eligibility date. If this market-based condition is achieved, the awards will vest at 100% of the number of awards granted. If the market-based condition is not achieved the awards will not vest. The fair value of these awards was determined based upon a lattice model. The three year performance period for awards granted in 2016 ended on December 31, 2019. The performance condition was met and approximately 19,500 shares vested and were approved by the Compensation Committee in February 2020. The fair value of the shares at vesting was approximately $2.9 million . The following table summarizes the assumptions used in estimating the fair value of the outstanding PBRS: Grant Date Stock Price on Measurement Date Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value 2017 $ 127.51 24.7 % 1.9 % 3 Years $ 119.88 Restricted Stock Issued to Non-employee Directors In 2019 , 2018 and 2017 , each non-employee director received a restricted stock grant. These grants are made on the date of the annual meeting of shareholders and vest at the following year’s annual meeting of shareholders, or upon certain other events. The grant is subject to forfeiture if the director’s service terminates prior to the date of the next regularly scheduled annual meeting of shareholders. During 2019 , 2018 and 2017 , the Company granted 8,216 shares, 9,376 shares, and 8,480 shares, respectively, to non-employee directors. Activity related to both employee and non-employee restricted stock for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Shares Weighted Average Grant Date Fair Value/Share RESTRICTED STOCK AT DECEMBER 31, 2018 284 $ 108.40 Shares granted 18 127.89 Shares vested (84 ) 105.70 Shares forfeited (20 ) 110.71 RESTRICTED STOCK AT DECEMBER 31, 2019 198 $ 110.89 The weighted average fair value per share of restricted stock granted in 2019 , 2018 and 2017 was $127.89 , $108.74 and $123.39 , respectively. The total fair value of restricted stock vested in 2019 , 2018 and 2017 was $8.9 million , $8.6 million and $6.6 million , respectively. Stock Appreciation Rights SARs grant the holder the right to receive, once vested, the value in shares of the Company's Common Stock equal to the positive difference between the grant price, as determined using the mean of the high and low trading prices of the Company’s Common Stock on the measurement date, and the fair market value of the Company’s Common Stock on the date of exercise. This amount is payable in shares of the Company’s Common Stock. SARs vest and become exercisable in three equal installments during the first three years following the grant date and expire ten years from the grant date. Activity related to SARs for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Number of Rights Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value OUTSTANDING AT DECEMBER 31, 2018 2,111 $ 107.01 Granted 40 129.28 Exercised (474 ) 94.72 Forfeited (93 ) 115.63 Canceled (12 ) 128.32 OUTSTANDING AT DECEMBER 31, 2019 1,572 $ 110.66 6.8 Years $ 58,410 EXERCISABLE AT DECEMBER 31, 2019 1,198 $ 109.01 6.2 Years $ 46,497 The aggregated intrinsic value of SARs exercised during 2019 , 2018 and 2017 was $17.8 million , $14.1 million and $10.1 million , respectively. The fair value of each SAR award was measured using the Black-Scholes option pricing model. The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the years 2019 , 2018 and 2017 : Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR 2019 2.7 % 22.7 % 1.8 % 5.5 Years $ 21.25 2018 2.9 % 21.7 % 2.8 % 5.5 Years $ 18.23 2017 2.6 % 18.0 % 2.2 % 5.5 Years $ 17.45 The expected dividend yield was calculated by dividing the Company’s expected annual dividend by the average stock price for the past three months. Expected volatilities are based on historical volatilities of the Company’s stock for a period consistent with the expected term. The expected term of SARs granted was based upon historical exercise behavior of stock options and SARs. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the award. Performance Shares Performance shares represent the right to receive a share of the Company’s Common Stock subject to the achievement of certain market or performance conditions established by the Company’s Compensation Committee and measured over a three year period. Partial vesting in these awards may occur after separation from the Company for retirement eligible employees. Shares are not vested until approved by the Company’s Compensation Committee. Performance Shares - Performance and Market Conditions In December 2018, the Company granted 60,008 shares that will vest subject to a performance condition and service requirement. The number of shares vested is then modified by a market condition as described below. Thirty-four percent of shares granted will vest based on Hubbell’s compounded annual growth rate of net sales as compared to that of the companies that comprise the S&P Capital Goods 900 index. Thirty-three percent of shares granted will vest based on achieved operating margin performance as compared to internal targets, and thirty-three percent of shares granted will vest based on achieved trade working capital as a percent of net sales as compared to internal targets. Each of these performance conditions is measured over the same three-year performance period. The cumulative result of these performance conditions can result in a number of shares earned in the range of 0% - 200% of the target number of shares granted. That cumulative performance achieved is then further modified based on the Company' three year TSR relative to the companies that constitute the S&P Capital Goods 900 index, to potentially increase or reduce the shares earned by 20% . The fair value of the award was determined based upon a lattice model. The Company expenses these awards on a straight-line basis over the requisite service period and including an assessment of the performance achieved to date. The weighted average fair value per share was $98.80 for the awards granted in 2018 . Grant Date Shares Outstanding at 12/31/2019 Fair Value Performance Period Payout Range 2018 51,062 $ 98.80 Jan 2019-Dec 2021 0-200% +/- 20% Performance Shares - Market Condition In December 2017 , the Company granted 24,675 performance shares that will vest subject to a market condition and service through the performance period. The market condition associated with the awards is the Company's TSR compared to the TSR generated by the companies of a reference index over a performance period of three years . Performance at target will result in vesting and a number of shares earned equal to 100% of shares granted. Performance below or above target can result in a number of shares earned in the range of 0% - 200% of shares granted. Expense is recognized irrespective of the market condition being achieved. In February 2020, approximately 17,000 shares vested related to the December 2016 performance award grant and were approved by the Compensation Committee. The performance period associated with this award was from January 1, 2017 through December 31, 2019 and was based upon the Company's TSR compared to the TSR generated by the other companies that comprise the S&P Capital Goods 900 index. The number of shares vested in February 2020 was based upon achieving 72% of the market based criteria and the fair value of the awards at vesting was approximately $2.5 million . The fair value of the performance share awards with a market condition for the fiscal year 2017 was determined based upon a lattice model. The following table summarizes the related assumptions used to determine the fair values of the performance share awards with a market condition granted during 2017 : Grant Date Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value 2017 $ 127.51 2.4 % 24.7 % 1.9 % 3 Years $ 142.89 Expected volatilities are based on historical volatilities of the Company’s stock over a three year period. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the expected term of the award. Performance Shares - Performance Condition In December 2017 the Company granted 24,675 performance shares that are subject to a performance condition and service requirement during the performance period of three years . The performance condition associated with the awards is based on the Company's relative sales growth compared to the relative sales growth of the companies of a reference index, further adjusted by the Company achieving a target net income margin, each measured over the same three year performance period. Performance at target will result in vesting and a number of shares earned equal to 100% of shares granted. Performance below or above target can result in a number of shares earned in the range of 0% - 250% of shares granted. In May 2019, the Company paid out 47,693 shares related to the December 2015 performance award grant. The performance period associated with this award was from January 1, 2016 through December 31, 2018 and was based upon the Company’s net sales growth compared to the net sales growth by the other companies that comprise the S&P Capital Goods 900 Index. The number of shares vested in May 2019 was based upon achieving 160% of the market-based criteria and the fair value of the awards at vesting was $6.2 million . The fair value of the award is measured based upon the average of the high and low trading prices of the Company's common stock on the measurement date reduced by the present value of dividends expected to be paid during the requisite service period. The Company expenses these awards on a straight-line basis over the requisite service period, including an assessment of the performance achieved to date. The following table summarizes the attributes of the performance shares granted in 2016 and 2017 and outstanding at December 31, 2019 : Grant Date Shares Outstanding at 12/31/2019 Fair Value Performance Period Payout Range 2017 19,389 $ 118.55 Jan 2018 - Dec 2020 0-250% 2016 23,276 $ 105.48 Jan 2017 - Dec 2019 0-250% |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 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. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three years ended December 31 (in millions, except per share amounts): 2019 2018 2017 Numerator: Net income attributable to Hubbell $ 400.9 $ 360.2 $ 243.1 Less: Earnings allocated to participating securities (1.5 ) (1.3 ) (0.8 ) Net income available to common shareholders $ 399.4 $ 358.9 $ 242.3 Denominator: Average number of common shares outstanding 54.4 54.6 54.8 Potential dilutive shares 0.3 0.3 0.3 Average number of diluted shares outstanding 54.7 54.9 55.1 Earnings per share: Basic $ 7.35 $ 6.57 $ 4.42 Diluted $ 7.31 $ 6.54 $ 4.39 The Company did not have any significant anti-dilutive securities in 2019 , 2018 or 2017 . |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 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 years ended December 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, 2016 $ — $ (1.2 ) $ (180.5 ) $ (120.8 ) $ (302.5 ) Other comprehensive income (loss) before Reclassifications (1.7 ) 0.6 (3.4 ) 28.9 24.4 Amounts reclassified from accumulated other comprehensive loss 0.9 — 7.4 — 8.3 Current period other comprehensive income (loss) (0.8 ) 0.6 4.0 28.9 32.7 BALANCE AT DECEMBER 31, 2017 $ (0.8 ) $ (0.6 ) $ (176.5 ) $ (91.9 ) $ (269.8 ) Other comprehensive income (loss) before Reclassifications 1.9 (1.4 ) 10.4 (33.9 ) (23.0 ) Amounts reclassified from accumulated other comprehensive loss (0.3 ) — 7.4 — 7.1 Current period other comprehensive income (loss) 1.6 (1.4 ) 17.8 (33.9 ) (15.9 ) BALANCE AT DECEMBER 31, 2018 $ 0.8 $ (2.0 ) $ (158.7 ) $ (125.8 ) $ (285.7 ) Other comprehensive income (loss) before Reclassifications (0.8 ) 0.8 (21.5 ) 3.7 (17.8 ) Amounts reclassified from accumulated other comprehensive loss (0.5 ) 1.8 7.0 (7.7 ) 0.6 Current period other comprehensive income (loss) (1.3 ) 2.6 (14.5 ) (4.0 ) (17.2 ) Reclassification of stranded tax effects — — (30.0 ) — (30.0 ) BALANCE AT DECEMBER 31, 2019 $ (0.5 ) $ 0.6 $ (203.2 ) $ (129.8 ) $ (332.9 ) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the two years ended December 31 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components 2019 2018 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.3 $ 0.1 Net Sales 0.4 0.3 Cost of goods sold 0.7 0.4 Total before tax (0.2 ) (0.1 ) Tax (expense) benefit $ 0.5 $ 0.3 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.7 (a) $ 0.9 (a) Actuarial gains/(losses) (9.7 ) (a) (10.7 ) (a) Settlement and curtailment losses (0.3 ) (a) — (a) (9.3 ) (9.8 ) Total before tax 2.3 2.4 Tax benefit (expense) $ (7.0 ) $ (7.4 ) (Loss) gain net of tax Reclassification of gains (losses) on available-for-sale securities $ (1.8 ) $ — Other expense, net — — Tax benefit (expense) $ (1.8 ) $ — (Loss) gain net of tax Reclassification of currency translation gain $ 7.7 $ — Gain on disposition of business (Note 3) — — Tax benefit (expense) $ 7.7 $ — Gain (loss) net of tax Gains (losses) reclassified into earnings $ (0.6 ) $ (7.1 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 — Retirement Benefits for additional details). |
Industry Segments and Geographi
Industry Segments and Geographic Area Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Industry Segments and Geographic Area Information | Industry Segments and Geographic Area Information Nature of Operations Hubbell designs, manufactures and sells quality electrical and electronic products for a broad range of non-residential and residential construction, industrial and utility applications. Products are either sourced complete, manufactured or assembled by subsidiaries in the United States, Canada, Puerto Rico, China, Mexico, the UK, Brazil, Australia, Spain and Ireland. Hubbell also participates in joint ventures in Taiwan, Hong Kong, and the Philippines and maintains offices in Singapore, Italy, China, India, Mexico, South Korea, Chile and countries in the Middle East. Each of the above references to manufacturing locations, joint venture participation, and office locations relate to the three year period ending December 31, 2019 . The Company’s reporting segments consist of the Electrical segment and the Power segment, as described below. 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 of our businesses design and manufacture 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 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. Financial Information Financial information by industry segment, product class and geographic area for each of the three years ended December 31, 2019 , 2018 and 2017 is summarized below (in millions). When reading the data the following items should be noted: • Net sales comprise sales to unaffiliated customers — inter-segment and inter-area sales are not significant. • Segment operating income consists of net sales less operating expenses, including total corporate expenses, which are generally allocated to each segment on the basis of the segment’s percentage of consolidated net sales. Interest expense and investment income and other expense, net have not been allocated to segments as these items are centrally managed by the Company. • General corporate assets not allocated to segments are principally cash, prepaid pensions, investments and deferred taxes. These assets have not been allocated as they are centrally managed by the Company. INDUSTRY SEGMENT DATA 2019 2018 2017 Net Sales: Electrical $ 2,625.7 $ 2,660.6 $ 2,532.8 Power 1,965.3 1,821.1 1,136.0 TOTAL NET SALES $ 4,591.0 $ 4,481.7 $ 3,668.8 Operating Income: Electrical $ 320.1 $ 320.8 $ 294.0 Power 276.5 236.1 224.8 Operating Income $ 596.6 $ 556.9 $ 518.8 Gain on disposition of business (Note 3) 21.7 — — Multi-employer pension charge (Note 15) (8.5 ) — — Interest expense (69.4 ) (72.4 ) (44.9 ) Loss on extinguishment of debt — — (10.1 ) Investment income and other expense, net (19.9 ) (17.5 ) (20.7 ) INCOME BEFORE INCOME TAXES $ 520.5 $ 467.0 $ 443.1 Assets: Electrical $ 2,197.8 $ 2,228.5 $ 2,344.7 Power 2,401.3 2,395.8 1,102.2 General Corporate 303.9 247.8 273.7 TOTAL ASSETS $ 4,903.0 $ 4,872.1 $ 3,720.6 Capital Expenditures: Electrical $ 45.8 $ 53.0 $ 48.0 Power 45.4 36.8 29.0 General Corporate 2.7 6.4 2.7 TOTAL CAPITAL EXPENDITURES $ 93.9 $ 96.2 $ 79.7 Depreciation and Amortization: Electrical $ 65.0 $ 61.4 $ 64.7 Power 86.0 87.0 33.5 TOTAL DEPRECIATION AND AMORTIZATION $ 151.0 $ 148.4 $ 98.2 GEOGRAPHIC AREA DATA 2019 2018 2017 Net Sales: United States $ 4,190.5 $ 4,040.6 $ 3,280.9 International 400.5 441.1 387.9 TOTAL NET SALES $ 4,591.0 $ 4,481.7 $ 3,668.8 Operating Income: United States $ 529.7 $ 478.0 $ 435.8 International 66.9 78.9 83.0 TOTAL OPERATING INCOME $ 596.6 $ 556.9 $ 518.8 Long-lived Assets: United States $ 2,950.4 $ 2,972.4 $ 1,877.4 International 372.2 245.0 232.8 TOTAL LONG-LIVED ASSETS $ 3,322.6 $ 3,217.4 $ 2,110.2 On a geographic basis, the Company defines “international” as operations based outside of the United States and its possessions. As a percentage of total net sales, shipments from foreign operations directly to third parties were 9% in 2019 , 10% in 2018 and 11% in 2017 , with the UK and Canadian operations representing approximately 29% , and 29% respectively, of 2019 total international net sales. Long-lived assets, excluding deferred tax assets, of international subsidiaries were 11% of the consolidated total in 2019 , 8% in 2018 and 11% in 2017 , with the UK, Spain, and Canada operations representing approximately 31% , 21% , and 16% , respectively, of the 2019 international total. Export sales from United States operations were $262.7 million in 2019 , $261.9 million in 2018 and $217.2 million in 2017 . |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees in the Consolidated Balance Sheet in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of December 31, 2019 , the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product warranties which 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 in 2019 are set forth below (in millions): BALANCE AT DECEMBER 31, 2017 $ 14.0 Provision 12.0 Expenditures/other (22.7 ) Acquisitions (a) 89.4 BALANCE AT DECEMBER 31, 2018 $ 92.7 Provision 15.8 Expenditures/other (26.4 ) BALANCE AT DECEMBER 31, 2019 (b) $ 82.1 (a) Relates to the Aclara acquisition. Refer to Note 3 – Business Acquisitions for additional information. (b) Refer to Note 9 – Other Accrued Liabilities and Note 10 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs During 2019 , we incurred costs for restructuring actions initiated in 2019 as well as costs relating to 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 are primarily 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. Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Consolidated Statement of Income for the years ended December 31, 2019 , 2018 and 2017 are as follows (in millions): Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 Electrical Power Total Electrical Power Total Electrical Power Total Restructuring costs Cost of goods sold $ 12.5 $ 9.8 $ 22.3 $ 4.9 $ 3.3 $ 8.2 $ 11.5 $ 2.2 $ 13.7 S&A expense 8.0 1.7 9.7 3.4 0.4 3.8 5.4 1.2 6.6 Total restructuring costs $ 20.5 $ 11.5 $ 32.0 $ 8.3 $ 3.7 $ 12.0 $ 16.9 $ 3.4 $ 20.3 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 12/31/19 2019 Restructuring Actions Severance $ — $ 16.6 $ (8.3 ) $ 8.3 Asset write-downs — 4.8 (4.8 ) — Facility closure and other costs — 7.7 (7.6 ) 0.1 Total 2019 Restructuring Actions $ — $ 29.1 $ (20.7 ) $ 8.4 2018 and Prior Restructuring Actions Severance $ 7.7 $ 0.3 $ (5.0 ) $ 3.0 Asset write-downs — 0.3 (0.3 ) — Facility closure and other costs 13.3 2.3 (9.6 ) 6.0 Total 2018 and Prior Restructuring Actions $ 21.0 $ 2.9 $ (14.9 ) $ 9.0 Total Restructuring Actions $ 21.0 $ 32.0 $ (35.6 ) $ 17.4 The actual and expected pre-tax costs for our restructuring actions are as follows (in millions): Expected Costs Costs incurred in 2017 Costs incurred in 2018 Costs incurred in 2019 Remaining costs at 12/31/19 2019 Restructuring Actions Electrical Segment $ 21.2 $ — $ — $ 18.3 $ 2.9 Power Segment 21.0 — — 10.8 10.2 Total 2019 Restructuring Actions $ 42.2 $ — $ — $ 29.1 $ 13.1 2018 Restructuring Actions Electrical Segment $ 12.5 $ — $ 8.6 $ 2.2 $ 1.7 Power Segment 4.8 — 4.1 0.7 — Total 2018 Restructuring Actions $ 17.3 $ — $ 12.7 $ 2.9 $ 1.7 2017 and Prior Restructuring Actions Electrical Segment $ 16.6 $ 16.9 $ (0.3 ) $ — $ — Power Segment 3.0 3.4 (0.4 ) — — Total 2017 and Prior Restructuring Actions $ 19.6 $ 20.3 $ (0.7 ) $ — $ — Total Restructuring Actions $ 79.1 $ 20.3 $ 12.0 $ 32.0 $ 14.8 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Our operating leases primarily consist of office space, certain manufacturing facilities, 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 Consolidated Statements of Income for the twelve months ended December 31, 2019 was $39.1 million . Cash paid for operating leases during the year ended December 31, 2019 was $36.4 million reported as cash outflows from operating activities in the Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations during the year ended December 31, 2019 was $22.1 million . Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions): December 31, 2019 Operating lease right-of-use assets $ 96.8 TOTAL ASSETS $ 96.8 Other accrued liabilities $ 29.6 Other non-current liabilities 71.7 TOTAL LIABILITIES $ 101.3 The weighted average remaining lease term as of December 31, 2019 for operating leases was 4 years . The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 3.5% as of December 31, 2019 . Future maturities of our operating lease liabilities as of December 31, 2019 are as follows (in millions): 2020 2021 2022 2023 2024 Thereafter Total Payments Imputed Interest Total Operating Leases 32.7 24.6 15.8 13.2 8.4 15.9 110.6 (9.3) $101.3 Total rental expense under operating leases was $44.8 million in 2018 and $30.5 million in 2017. The minimum annual rentals on non-cancelable, long-term, operating leases in effect at December 31, 2018 was $23.5 million in 2019, $21.0 million in 2020, $16.5 million in 2021, $13.2 million in 2022, $10.5 million in 2023 and $26.5 million thereafter. |
Leases | Leases Our operating leases primarily consist of office space, certain manufacturing facilities, 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 Consolidated Statements of Income for the twelve months ended December 31, 2019 was $39.1 million . Cash paid for operating leases during the year ended December 31, 2019 was $36.4 million reported as cash outflows from operating activities in the Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations during the year ended December 31, 2019 was $22.1 million . Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions): December 31, 2019 Operating lease right-of-use assets $ 96.8 TOTAL ASSETS $ 96.8 Other accrued liabilities $ 29.6 Other non-current liabilities 71.7 TOTAL LIABILITIES $ 101.3 The weighted average remaining lease term as of December 31, 2019 for operating leases was 4 years . The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 3.5% as of December 31, 2019 . Future maturities of our operating lease liabilities as of December 31, 2019 are as follows (in millions): 2020 2021 2022 2023 2024 Thereafter Total Payments Imputed Interest Total Operating Leases 32.7 24.6 15.8 13.2 8.4 15.9 110.6 (9.3) $101.3 Total rental expense under operating leases was $44.8 million in 2018 and $30.5 million in 2017. The minimum annual rentals on non-cancelable, long-term, operating leases in effect at December 31, 2018 was $23.5 million in 2019, $21.0 million in 2020, $16.5 million in 2021, $13.2 million in 2022, $10.5 million in 2023 and $26.5 million thereafter. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The table below sets forth summarized quarterly consolidated financial data for the years ended December 31, 2019 and 2018 (in millions, except per share amounts): Reported First Quarter Reported Second Quarter Reported Third Quarter Fourth Quarter 2019 Net sales $ 1,087.3 $ 1,196.4 $ 1,204.0 $ 1,103.3 Cost of goods sold $ 780.0 $ 839.0 $ 842.0 $ 777.3 Gross profit $ 307.3 $ 357.4 $ 362.0 $ 326.0 Selling & administrative expenses $ 186.4 $ 190.5 $ 189.1 $ 190.1 Net income $ 73.8 $ 97.9 $ 132.6 $ 103.1 Net Income attributable to Hubbell $ 72.3 $ 96.0 $ 130.7 $ 101.9 Earnings per share — Basic $ 1.32 $ 1.76 $ 2.40 $ 1.87 Earnings per share — Diluted $ 1.32 $ 1.75 $ 2.38 $ 1.85 Reported First Quarter Reported Second Quarter Reported Third Quarter Fourth Quarter 2018 Net sales $ 991.2 $ 1,166.7 $ 1,179.7 $ 1,144.1 Cost of goods sold $ 708.3 $ 818.8 $ 830.7 $ 823.5 Gross profit $ 282.9 $ 347.9 $ 349.0 $ 320.6 Selling & administrative expenses $ 183.3 $ 191.0 $ 185.2 $ 184.0 Net income $ 59.8 $ 102.4 $ 114.7 $ 89.2 Net Income attributable to Hubbell $ 58.3 $ 100.3 $ 113.6 $ 88.0 Earnings per share — Basic $ 1.06 $ 1.83 $ 2.07 $ 1.61 Earnings per share — Diluted $ 1.05 $ 1.82 $ 2.06 $ 1.60 |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | Valuation and Qualifying Accounts and Reserves for the Years Ended December 31, 2017 , 2018 and 2019 Reserves deducted in the balance sheet from the assets to which they apply (in millions): Balance at Beginning of Year Additions / (Reversals) Charged to Costs and Expenses Deductions Acquisitions Balance at End of Year Allowances for doubtful accounts receivable: Year 2017 $ 4.7 $ 1.5 $ (3.5 ) $ 1.9 $ 4.6 Year 2018 $ 4.6 $ — $ (1.4 ) $ 1.6 $ 4.8 Year 2019 $ 4.8 $ 3.4 $ (0.5 ) $ — $ 7.7 Allowance for credit memos, returns and cash discounts: Year 2017 $ 45.9 $ 260.8 $ (256.3 ) $ 0.1 $ 50.5 Year 2018 $ 50.5 $ 278.0 $ (293.5 ) $ 0.1 $ 35.1 Year 2019 $ 35.1 $ 299.1 $ (298.2 ) $ — $ 36.0 Valuation allowance on deferred tax assets: Year 2017 $ 22.6 $ (3.2 ) $ — $ — $ 19.4 Year 2018 $ 19.4 $ 0.7 $ — $ 1.7 $ 21.8 Year 2019 $ 21.8 $ 7.2 $ — $ — $ 29.0 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include all wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The Company participates in three joint ventures, one of which is accounted for using the equity method, the others have been consolidated in accordance with the consolidation accounting guidance. An analysis is performed to determine which reporting entity, if any, has a controlling financial interest in a variable interest entity (“VIE”) with a primarily qualitative analysis. The qualitative analysis is based on identifying the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance (the “power criterion”) and the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE (the “losses/benefit criterion”). The party that meets both these criteria is deemed to have a controlling financial interest. The party with the controlling financial interest is considered to be the primary beneficiary and as a result is required to consolidate the VIE. The Company has a 50% interest in a joint venture in Hong Kong, established as Hubbell Asia Limited (“HAL”). The principal objective of HAL is to manage the operations of its wholly-owned manufacturing company in China. Under the accounting guidance, the Company is the primary beneficiary of HAL and as a result consolidates HAL. This determination is based on the fact that HAL’s sole business purpose is to manufacture product exclusively for the Company (the power criterion) and the Company is financially responsible for ensuring HAL maintains a fixed operating margin (the losses/benefit criterion). The consolidation of HAL is not material to the Company’s consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements. Actual results could differ from the estimates that are used. |
Revenue Recognition | Revenue Recognition 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 contractually specified destination. Revenue from service contracts and post-shipment performance obligations is approximately three 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 Consolidated Balance Sheet. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Consolidated Statement of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Consolidated Statement of Income on a straight line basis over the expected term of the contract. The Company has certain arrangements that require us to estimate at the time of sale the amounts of variable consideration that should not be recorded as revenue as certain amounts are not expected to be collected from customers, as well as an estimate of the value of the product to be returned. The Company principally relies on historical experience, specific customer agreements and anticipated future trends to estimate these amounts at the time of shipment and to reduce the transaction price. These arrangements include sales discounts and allowances based on sales volumes, specific programs and special pricing allowances, and returned goods, as are customary in the electrical products industry. Customer returns have historically ranged from 1% - 2% of gross sales. Shipping and Handling Costs The Company records shipping and handling costs as part of Cost of goods sold in the Consolidated Statement of Income. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of international subsidiaries are translated to U.S. dollars at exchange rates in effect at the end of the year, and income and expense items are translated at average exchange rates in effect during the year. The effects of exchange rate fluctuations on the translated amounts of foreign currency assets and liabilities are included as translation adjustments in Accumulated other comprehensive loss within Hubbell shareholders’ equity. Gains and losses from foreign currency transactions are included in results of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents The carrying value of cash equivalents approximates fair value. Cash equivalents consist of highly liquid investments with original maturities to the Company of three months or less. |
Investments | Investments Investments in debt and equity securities are classified by individual security as available-for-sale, held-to-maturity or trading securities. Our available-for-sale securities, consisting of municipal bonds and the redeemable preferred stock of a privately held company, are carried on the balance sheet at fair value with current period adjustments to carrying value recorded in Accumulated other comprehensive loss within Hubbell shareholders’ equity, net of tax. Realized gains and losses are recorded in income in the period of sale. The Company’s trading securities are carried on the balance sheet at fair value and consist primarily of debt and equity mutual funds. Gains and losses associated with these trading securities are reflected in the results of operations. The Company did not have any investments classified as held-to-maturity as of December 31, 2019 and 2018 . |
Accounts Receivable and Allowances | Accounts Receivable and Allowances Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. The allowance for doubtful accounts is based on an estimated amount of probable credit losses in existing accounts receivable. The allowance is calculated based upon a combination of historical write-off experience, fixed percentages applied to aging categories and specific identification based upon a review of past due balances and problem accounts. Account balances are charged off against the allowance when it is determined that internal collection efforts should no longer be pursued. The Company also maintains a reserve for credit memos and cash discounts which are principally calculated based upon historical experience, specific customer agreements, as well as anticipated future trends. |
Inventories | Inventories Inventories are stated at the lower of cost or market value. Approximately 61% of total net inventory value is determined utilizing the last-in, first-out (LIFO) method of inventory accounting. The cost of foreign inventories and certain domestic inventories is determined utilizing average cost or first-in, first-out (FIFO) methods of inventory accounting. Reserves for excess and obsolete inventory are provided based on current assessments about future demand compared to on-hand quantities. |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment values are stated at cost less accumulated depreciation. Maintenance and repair expenditures that do not significantly increase the life of an asset are charged to expense when incurred. Property, plant, and equipment placed in service prior to January 1, 1999 are depreciated over their estimated useful lives, principally, using accelerated methods. Assets placed in service subsequent to January 1, 1999 are depreciated over their estimated useful lives, using straight-line methods. Leasehold improvements are amortized over the shorter of their economic lives or the lease term. Gains and losses arising on the disposal of property, plant and equipment are included in Operating income in the Consolidated Statement of Income. |
Capitalized Computer Software Costs | Capitalized Computer Software Costs Capitalized computer software costs, net of amortization, were $ 22.5 million and $20.2 million at December 31, 2019 and 2018 , respectively. This balance is reflected in Other long-term assets in the Consolidated Balance Sheet. Capitalized computer software is for internal use and costs primarily consist of purchased materials, external services and salary costs for personnel dedicated to the projects. Software is amortized on a straight-line basis over appropriate periods, generally between three and five years |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents purchase price in excess of fair values of the underlying net assets of acquired companies. Indefinite-lived intangible assets and goodwill are subject to annual impairment testing using the specific guidance and criteria described in the accounting guidance. The Company performs its goodwill impairment testing as of April 1st of each year, unless circumstances dictate the need for more frequent assessments. The accounting guidance provides entities an option of performing a qualitative assessment (a "step-zero" test) before performing a quantitative analysis. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the goodwill is not impaired, the entity would not need to proceed to quantitative goodwill impairment testing process as prescribed in the guidance. The Company applied the "step-zero" test to four of its seven reporting units. Based on that qualitative assessment, the Company concluded it was more-likely-than-not that the fair value of these reporting units exceeded their carrying value and therefore, further quantitative analysis was not required. For the other three reporting units the Company has elected to utilize the quantitative goodwill impairment testing process as permitted in the accounting guidance, by comparing the fair value of the Company's reporting units to their carrying values. If the fair value of the reporting unit exceeds its carrying value, no impairment exists. Goodwill impairment testing requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. We use internal discounted cash flow estimates to determine fair value. These cash flow estimates are derived from historical experience and future long-term business plans and include assumptions on future sales growth, gross margin, operating margin, terminal growth rate, and the application of an appropriate discount rate. Changes in these estimates and assumptions could affect the determination of fair value and/or goodwill impairment for each reporting unit. The Company believes that its estimated aggregate fair value of its reporting units is reasonable when compared to the Company's market capitalization on the valuation date. As of April 1, 2019 , the impairment testing resulted in implied fair values for each reporting unit that substantially exceeded the reporting unit's carrying value, including goodwill. The Company did not have any reporting units at risk of failing the quantitative impairment test as the excess of the implied fair value significantly exceeded the carrying value of the reporting units. Additionally, the Company did not have any reporting units with zero or negative carrying amounts. The Company has not recorded any goodwill impairments since the initial adoption of the accounting guidance in 2002. The Company’s intangible assets consist primarily of customer relationships, tradenames, developed technology and patents. Intangible assets with definite lives are amortized over periods generally ranging from 5 - 30 years . The Company amortizes intangible assets with definite lives using either an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets' useful life, or using a straight line method. Approximately 75% of the gross value of definite-lived intangible assets follow an accelerated amortization method. These definite lived intangibles are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The Company did not record any material impairments related to its definite lived intangible assets in 2019 , 2018 or 2017 . The Company also has some tradenames that are considered to be indefinite-lived intangible assets. These indefinite-lived intangible assets are not amortized and are tested for impairment annually, unless circumstances dictate the need for more frequent assessment. |
Other Long-Lived Assets | Other Long-Lived Assets |
Accrued Insurance | Accrued Insurance The Company retains a significant portion of the risks associated with workers’ compensation, medical, automobile and general liability insurance. The Company estimates self-insurance liabilities using a number of factors, including historical claims experience, demographic factors, and other actuarial assumptions. The accrued liabilities associated with these programs are based on the Company’s estimate of the ultimate costs to settle known claims as well as claims incurred but not reported as of the balance sheet date. The Company periodically reviews the assumptions with a third party actuary to determine the adequacy of these self-insurance reserves. |
Accrued Warranty | Accrued Warranty |
Income Taxes | Income Taxes The Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The IRS and other tax authorities routinely examine the Company’s tax returns. These audits can involve complex issues which may require an extended period of time to resolve. The Company makes adequate provisions for best estimates of exposures on previously filed tax returns. Deferred income taxes are recognized for the tax consequence of differences between financial statement carrying amounts and the tax basis of assets and liabilities by applying the currently enacted statutory tax rates in accordance with the accounting guidance for income taxes. The effect of a change in statutory tax rates is recognized in the period that includes the enactment date. Additionally, deferred tax assets are required to be reduced by a valuation allowance if it is more-likely-than-not that a portion or all of the deferred tax asset will not be realized. The Company uses factors to assess the likelihood of realization of deferred tax assets such as the forecast of future taxable income and available tax planning that could be implemented to realize the deferred tax assets. In addition, the accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of the tax position taken or expected to be taken in a tax return. For any amount of benefit to be recognized, it must be determined that it is more-likely-than-not that a tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The amount of benefit to be recognized is based on the Company’s assertion of the most likely outcome resulting from an examination, including resolution of any related appeals or litigation processes. Companies are required to reflect only those tax positions that are more-likely-than-not to be sustained. See Note 13 — Income Taxes for additional information. |
Research and Development | Research and Development |
Retirement Benefits | Retirement Benefits The Company maintains various defined benefit pension plans for some of its U.S. and foreign employees. The accounting guidance for retirement benefits requires the Company to recognize the funded status of its defined benefit pension and postretirement plans as an asset or liability in the Consolidated Balance Sheet. Gains or losses, prior service costs or credits, and transition assets or obligations that have not yet been included in net periodic benefit cost as of the end of the year are recognized as components of Accumulated other comprehensive loss, net of tax, within Hubbell shareholders’ equity. The Company’s policy is to fund pension costs within the ranges prescribed by applicable regulations. In addition to providing defined benefit pension benefits, the Company provides health care and life insurance benefits for some of its active and retired employees. The Company’s policy is to fund these benefits through insurance premiums or as actual expenditures are made. See also Note 11 — Retirement Benefits. |
Earnings Per Share | Earnings Per Share Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. As a result, the earnings per share accounting guidance requires the Company to use the two-class method for calculating earnings per share. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities. Basic earnings per share is calculated as net income available to common shareholders divided by the weighted average number of shares of common stock outstanding. Earnings per diluted share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding of common stock plus the incremental shares outstanding assuming the exercise of dilutive stock options, stock appreciation rights and performance shares. See also Note 18 — Earnings Per Share. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the grant-date fair value of all stock-based awards on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period). A stock-based award is considered vested for expense attribution purposes when the retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company generally recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The expense is recorded in Cost of goods sold and S&A expense in the Consolidated Statement of Income based on the recipients’ respective functions within the organization. The Company records deferred tax assets for awards that will result in deductions on its tax returns, based upon the amount of compensation cost recognized and the statutory tax rate in the jurisdiction in which it will receive a deduction. See also Note 17 — Stock-Based Compensation. |
Derivatives | 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, interest rate hedges and interest rate swaps. All derivative financial instruments are matched with an existing Company asset, liability or proposed transaction. The Company does not speculate or use leverage when trading a derivative product. 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 or liability are recognized in income. See Note 14 — Financial Instruments and Fair Value Measurement for more information regarding our derivative instruments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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 12 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 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 Consolidated Statements of Income or 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, plant, and equipment, net, 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 an 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. In June 2016, the FASB issued an Accounting Standards Update (ASU 2016-13), "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. ASU 2016-13 is effective for periods beginning after December 15, 2019, with early adoption permitted. The standard requires that any impact of adoption is to be recognized as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is effective. The Company does not expect the adoption will have a material impact on results of operations. 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 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 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 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 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 does not expect the adoption will have a material impact on results of operations. In December 2019, the FASB issued an Accounting Standards Update (ASU 2019-12) "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently assessing the impact of adopting this standard on its financial statements. |
Revenue Revenue (Tables)
Revenue Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue by Business Group | The following table presents disaggregated revenue by business group (in millions) for the twelve months ended December 31, 2019 , 2018 and 2017: Twelve Months Ended December 31, 2019 2018 2017 Net sales Hubbell Commercial and Industrial $ 902.1 $ 910.8 $ 864.5 Hubbell Construction and Energy 808.7 799.7 732.6 Hubbell Lighting 914.9 950.1 935.7 Hubbell Power Systems 1,965.3 1,821.1 1,136.0 Total net sales $ 4,591.0 $ 4,481.7 $ 3,668.8 The following table presents disaggregated third-party net sales by geographic location (in millions) for the twelve months ended December 31, 2019 , 2018 and 2017 (on a geographic basis, the Company defines "international" in the following table as businesses based outside of the United States and its possessions): Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 Electrical Power Total Electrical Power Total Electrical Power Total Net sales United States $ 2,358.2 $ 1,832.3 $ 4,190.5 $ 2,365.4 $ 1,675.2 $ 4,040.6 $ 2,229.3 $ 1,051.6 $ 3,280.9 International 267.5 133.0 400.5 295.2 145.9 441.1 303.5 84.4 387.9 Total net sales $ 2,625.7 $ 1,965.3 $ 4,591.0 $ 2,660.6 $ 1,821.1 $ 4,481.7 $ 2,532.8 $ 1,136.0 $ 3,668.8 |
Business Acquisitions and Dis_2
Business Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Summary of the Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition related to all transactions (in millions): Tangible assets acquired $ 21.7 Intangible assets 33.2 Goodwill 29.4 Net deferred taxes (5.7 ) Other liabilities assumed (9.3 ) Total Estimate of Consideration Transferred, Net of Cash Acquired $ 69.3 The following are the assets acquired and the liabilities assumed by the Company in the Aclara acquisition, reconciled to the acquisition consideration (in millions): Accounts receivable $ 118.1 Inventories 73.5 Other current assets 8.5 Property, plant and equipment 30.9 Intangible assets 434.0 Accounts payable (51.8 ) Other accrued liabilities (93.3 ) Deferred tax liabilities, net (42.1 ) Other non-current liabilities (67.7 ) Noncontrolling interest (2.5 ) Goodwill 708.7 Total Estimate of Consideration Transferred, Net of Cash Acquired $ 1,116.3 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The purchase price allocation to identifiable intangible assets acquired is as follows (in millions, except useful life amounts): Estimated Fair Value Weighted Average Estimated Useful Life Patents, tradenames and trademarks $ 55.0 20.0 Customer relationships 194.0 18.0 Developed technology 185.0 13.0 Total $ 434.0 |
Transaction costs | These costs were recorded in the respective financial statement line items as follows (in millions): Twelve Months Ended December 31, 2018 2017 Selling & administrative expense $ 9.5 $ 6.7 Interest expense 3.3 0.4 Total Aclara Transaction Costs $ 12.8 $ 7.1 |
Business Acquisition, 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 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. Per share amounts in 2018 reflect the reduction in the U.S. federal corporate income tax rate from 35% to 21%: (in millions, except per share amounts) Twelve Months Ended December 31, 2018 2017 Net sales $ 4,531.2 $ 4,180.9 Net income attributable to Hubbell $ 376.4 $ 209.8 Earnings Per Share: Basic $ 6.86 $ 3.82 Diluted $ 6.83 $ 3.81 |
Receivables and Allowances (Tab
Receivables and Allowances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | |
Schedule of Components of Receivables and Allowances | Receivables consist of the following components at December 31, (in millions): 2019 2018 Trade accounts receivable $ 696.8 $ 739.1 Non-trade receivables 29.9 26.2 Accounts receivable, gross 726.7 765.3 Allowance for credit memos, returns and cash discounts (36.0 ) (35.1 ) Allowance for doubtful accounts (7.7 ) (4.8 ) Total allowances (43.7 ) (39.9 ) ACCOUNTS RECEIVABLE, NET $ 683.0 $ 725.4 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are classified as follows at December 31, (in millions): 2019 2018 Raw material $ 217.4 $ 220.2 Work-in-process 101.8 110.3 Finished goods 403.6 402.3 722.8 732.8 Excess of FIFO over LIFO cost basis (89.8 ) (81.8 ) INVENTORIES, NET $ 633.0 $ 651.0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amounts of goodwill for the years ended December 31, 2019 and 2018 , by segment, were as follows (in millions): Segment Electrical Power Total BALANCE AT DECEMBER 31, 2017 $ 717.6 $ 371.4 $ 1,089.0 Current year acquisitions — 708.7 708.7 Foreign currency translation and prior year acquisitions (3.5 ) (9.8 ) (13.3 ) BALANCE AT DECEMBER 31, 2018 $ 714.1 $ 1,070.3 $ 1,784.4 Current year acquisitions (1) 15.2 14.2 29.4 Dispositions (1) (3.1 ) — (3.1 ) Foreign currency translation 1.5 (0.4 ) 1.1 BALANCE AT DECEMBER 31, 2019 $ 727.7 $ 1,084.1 $ 1,811.8 (1) Refer to Note 3 – Business Acquisitions and Dispositions for additional information. |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets are recorded in Intangible assets, net in the Consolidated Balance Sheet. Identifiable intangible assets are comprised of the following (in millions): December 31, 2019 December 31, 2018 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 202.7 $ (65.0 ) $ 204.4 $ (58.6 ) Customer relationships, developed technology and other 861.0 (270.8 ) 833.0 (212.6 ) TOTAL DEFINITE-LIVED INTANGIBLES 1,063.7 (335.8 ) 1,037.4 (271.2 ) Indefinite-lived: Tradenames and other 53.6 — 53.3 — TOTAL INTANGIBLE ASSETS $ 1,117.3 $ (335.8 ) $ 1,090.7 $ (271.2 ) |
Investment (Table)
Investment (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Investments [Abstract] | |
Schedule of Investments, Amortized Cost Basis | The following table sets forth selected data with respect to the Company’s investments at December 31, (in millions): 2019 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale securities $50.0 $0.8 $(0.1) $50.7 $50.7 $54.0 $1.1 $(3.9) $51.2 $51.2 Trading securities 12.0 7.2 — 19.2 19.2 10.1 4.2 — 14.3 14.3 TOTAL INVESTMENTS $62.0 $8.0 $(0.1) $69.9 $69.9 $64.1 $5.3 $(3.9) $65.5 $65.5 |
Schedule of Contractual Maturities of Available-For-Sale Investments | Contractual maturities of our investments in available-for-sale securities at December 31, 2019 were as follows (in millions): Amortized Cost Fair Value Available-for-sale securities Due within 1 year $ 14.2 $ 14.2 After 1 year but within 5 years 23.1 23.6 After 5 years but within 10 years 4.9 5.1 Due after 10 years 7.8 7.8 TOTAL $ 50.0 $ 50.7 |
Property, Plant and Equipment (
Property, Plant and Equipment (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment, carried at cost, is summarized as follows at December 31, (in millions): 2019 2018 Land $ 37.7 $ 42.2 Buildings and improvements 285.3 277.3 Machinery, tools, and equipment 896.0 863.5 Construction-in-progress 35.3 46.2 Gross property, plant, and equipment 1,254.3 1,229.2 Less accumulated depreciation (749.1 ) (727.1 ) PROPERTY, PLANT, AND EQUIPMENT, NET $ 505.2 $ 502.1 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following at December 31, (in millions): 2019 2018 Customer program incentives $ 49.0 $ 52.4 Accrued income taxes 6.0 3.4 Contract liabilities - deferred revenue 31.0 27.7 Customer refund liability 19.0 15.3 Accrued warranties (1) 24.0 33.5 Current operating lease liabilities (2) 29.6 — Other 103.6 94.3 TOTAL $ 262.2 $ 226.6 (1) Refer to Note 21 – Guarantees for additional information regarding warranties. (2) |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other non-current liabilities consists of the following at December 31, (in millions): 2019 2018 Pensions $ 198.5 $ 177.0 Other post-employment benefits 21.5 23.7 Deferred tax liabilities 126.8 120.0 Accrued warranties long-term (1) 58.1 59.2 Non-current operating lease liabilities (2) 71.7 — Other 115.0 116.9 TOTAL $ 591.6 $ 496.8 (1) Refer to Note 21 – Guarantees for additional information regarding warranties. (2) |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Schedule of Changes in Benefit Obligation and the Plan Assets | The following table sets forth the reconciliation of beginning and ending balances of the benefit obligations and the plan assets for the Company’s defined benefit pension and other benefit plans at December 31, (in millions): Pension Benefits Other Benefits 2019 2018 2019 2018 Change in benefit obligation Benefit obligation at beginning of year $ 844.3 $ 956.1 $ 26.1 $ 27.0 Acquisitions — 1.3 — — Service cost 2.2 3.8 0.1 0.1 Interest cost 34.6 34.3 1.1 1.0 Plan participants’ contributions 0.4 0.4 — — Amendments — 3.6 — — Actuarial loss/(gain) 107.0 (72.4 ) (2.0 ) (0.5 ) Curtailment gain — (5.7 ) — — Currency impact 3.6 (5.7 ) — — Other 0.1 (0.5 ) — — Benefits paid (53.5 ) (70.9 ) (1.5 ) (1.5 ) Benefit obligation at end of year $ 938.7 $ 844.3 $ 23.8 $ 26.1 Change in plan assets Fair value of plan assets at beginning of year $ 670.1 $ 738.8 $ — $ — Acquisitions — 1.2 — — Actual return on plan assets 106.2 (27.5 ) — — Employer contributions 16.4 34.0 1.5 1.5 Plan participants’ contributions 0.4 0.4 — — Currency impact 3.8 (5.9 ) — — Benefits paid (53.5 ) (70.9 ) (1.5 ) (1.5 ) Fair value of plan assets at end of year $ 743.4 $ 670.1 $ — $ — FUNDED STATUS $ (195.3 ) $ (174.2 ) $ (23.8 ) $ (26.1 ) Amounts recognized in the consolidated balance sheet consist of: Prepaid pensions (included in Other long-term assets) $ 8.6 $ 8.0 $ — $ — Accrued benefit liability (short-term and long-term) (203.9 ) (182.2 ) (23.8 ) (26.1 ) NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET $ (195.3 ) $ (174.2 ) $ (23.8 ) $ (26.1 ) Amounts recognized in Accumulated other comprehensive loss (income) consist of: Net actuarial loss $ 263.4 $ 240.8 $ 0.3 $ 2.4 Prior service cost (credit) 3.6 4.1 (0.4 ) (1.3 ) NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS $ 267.0 $ 244.9 $ (0.1 ) $ 1.1 |
Summary of Accumulated Benefit Obligations in Excess of Plan Assets | Information with respect to plans with accumulated benefit obligations in excess of plan assets is as follows, (in millions): 2019 2018 Projected benefit obligation $ 823.8 $ 744.0 Accumulated benefit obligation $ 819.0 $ 735.4 Fair value of plan assets $ 620.0 $ 561.7 |
Schedule of the Components of Pension and Other Benefit Costs | The following table sets forth the components of pension and other benefit costs for the years ended December 31, (in millions): Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 Components of net periodic benefit cost: Service cost $ 2.2 $ 3.8 $ 5.9 $ 0.1 $ 0.1 $ 0.1 Interest cost 34.6 34.3 37.2 1.1 1.0 1.0 Expected return on plan assets (30.7 ) (33.5 ) (34.1 ) — — — Amortization of prior service cost (credit) 0.2 0.1 0.1 (0.9 ) (0.8 ) (1.0 ) Amortization of actuarial losses (gains) 9.6 10.5 11.4 0.1 — — Curtailment and settlement losses 0.3 — 0.4 — — — Net periodic benefit cost $ 16.2 $ 15.2 $ 20.9 $ 0.4 $ 0.3 $ 0.1 Changes recognized in other comprehensive loss (income), before tax: Current year net actuarial loss (gain) $ 31.5 $ (15.8 ) $ 4.2 $ (2.0 ) $ (0.4 ) $ 1.4 Current year prior service credit — 2.0 0.3 — — — Amortization of prior service (cost) credit (0.2 ) (0.1 ) (0.1 ) 0.9 1.0 1.0 Amortization of net actuarial (losses) gains (9.6 ) (10.5 ) (11.4 ) (0.1 ) (0.2 ) — Currency impact 0.7 (1.3 ) 3.5 — — — Other adjustments (0.3 ) — (0.4 ) — — — Total recognized in other comprehensive loss 22.1 (25.7 ) (3.9 ) (1.2 ) 0.4 2.4 TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS $ 38.3 $ (10.5 ) $ 17.0 $ (0.8 ) $ 0.7 $ 2.5 |
Schedule of Assumptions Used to Determine the Projected Benefit Obligation | The following assumptions were used to determine the projected benefit obligations at the measurement date and the net periodic benefit cost for the year: Pension Benefits Other Benefits 2019 2018 2017 2019 2018 2017 Weighted-average assumptions used to determine benefit obligations at December 31, Discount rate 3.17 % 4.24 % 3.67 % 3.30 % 4.40 % 3.70 % Rate of compensation increase 2.94 % 3.25 % 3.24 % 4.00 % 4.05 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, Discount rate 4.24 % 3.67 % 4.12 % 4.40 % 3.70 % 4.10 % Expected return on plan assets 4.75 % 4.68 % 4.94 % N/A N/A N/A Rate of compensation increase 3.25 % 3.24 % 3.55 % 4.05 % 4.00 % 3.93 % |
Schedule of Health Care Cost Trend Rates | The assumed health care cost trend rates used to determine the projected postretirement benefit obligation are as follows: Other Benefits 2019 2018 2017 Assumed health care cost trend rates at December 31, Health care cost trend assumed for next year 6.6 % 6.8 % 7.0 % Rate to which the cost trend is assumed to decline 5.0 % 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2028 2028 2028 |
Schedule of Allocation of Plan Assets | The Company’s combined targeted 2020 weighted average asset allocation for domestic and foreign pension plans and the actual weighted average asset allocation for domestic and foreign pension plans at December 31, 2019 and 2018 by asset category are as follows: Percentage of Plan Assets Target Actual Asset Category 2020 2019 2018 Equity securities 22 % 25 % 19 % Debt securities & Cash 76 % 73 % 67 % Alternative Investments 2 % 2 % 14 % TOTAL 100 % 100 % 100 % |
Schedule of Changes in Fair Value of Plan Assets | The fair value of the Company’s pension plan assets at December 31, 2019 and 2018 , by asset category are as follows (in millions): Quoted Prices in Active Markets for Identical Assets Quoted Prices in Active Market for Similar Asset Significant Unobservable Inputs Investments Priced Using Net Asset Value Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 16.6 $ 16.6 $ — $ — $ — Equity securities: Equity Mutual Funds 31.6 31.6 — — — Common Pooled Equity Funds (b) 144.0 — 144.0 — — Fixed Income Securities: U.S. Treasuries 64.5 — 64.5 — — State and Local Municipal Bonds 9.4 — 9.4 — — Sovereign Debt 7.6 — 7.6 — — Corporate Bonds (c) 122.9 0.1 122.8 — — Fixed Income Mutual Funds 54.2 54.2 — — — Common Pooled Fixed Income Funds (d) 252.3 — 252.3 — — Alternative Investment Funds (e) 18.1 — 0.9 — 17.2 Common Pooled Funds (f) 22.2 0.5 21.7 — — BALANCE AT DECEMBER 31, 2019 $ 743.4 $ 103.0 $ 623.2 $ — $ 17.2 Quoted Prices in Active Markets for Identical Assets Quoted Prices in Active Market for Similar Asset Significant Unobservable Inputs Investments Priced Using Net Asset Value Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 47.0 $ 47.0 $ — $ — $ — Equity securities: U.S. Large-cap (g) 8.2 8.2 — — — U.S. Mid-cap and Small-cap Growth (h) 3.1 3.1 — — — International Large-cap 8.6 8.6 — — — Emerging Markets (a) 13.3 8.1 5.2 — — Common Pooled Equity Funds (b) 12.7 — 12.7 — — Fixed Income Securities: U.S. Treasuries 378.0 — 378.0 — — Corporate Bonds (c) 0.3 0.3 — — — Asset Backed Securities and Other 22.8 — 22.8 — — Common Pooled Fixed Income Funds (d) 61.8 — 57.6 — 4.2 Derivatives: Assets (i) 8.2 8.0 0.2 — — (Liabilities) (i) (7.9 ) (6.9 ) (1.0 ) — — Alternative Investment Funds (e) 96.8 11.6 3.3 — 81.9 Common Pooled Funds (f) 17.7 0.9 16.8 — — BALANCE AT DECEMBER 31, 2018 $ 670.6 $ 88.9 $ 495.6 $ — $ 86.1 (a) Includes open ended emerging markets mutual funds. (b) Investments in Common Pooled Equity Funds, including funds and fund products investing in various equity securities (c) Includes primarily investment grade bonds from diverse industries (d) Investments in Common Pooled Fixed Income Funds, including funds and fund products investing in various fixed income investments (e) Includes investments in hedge funds, including fund of funds products and open end mutual funds (f) Investments in Common Pooled Funds, consisting of equities and fixed income securities (g) Includes an actively managed portfolio of large-cap U.S. stocks. (h) Includes an investment in a small cap open ended mutual fund. (i) Includes primarily U.S. and foreign equity futures as well as foreign fixed income futures and positions in U.S. Treasury futures to adjust the duration of the portfolio. |
Schedule of Expected Benefit Payments | The following domestic and foreign benefit payments, which reflect future service, as appropriate, are expected to be paid as follows, (in millions): Pension Benefits Other Benefits 2020 $ 53.9 $ 2.2 2021 $ 53.2 $ 2.1 2022 $ 54.8 $ 2.0 2023 $ 55.3 $ 1.9 2024 $ 55.2 $ 1.8 2025-2028 $ 270.3 $ 7.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table sets forth the Company’s long-term debt at December 31, (in millions): Maturity 2019 2018 Senior notes at 3.625% 2022 $ 298.8 $ 298.3 Senior notes at 3.35% 2026 395.7 395.1 Senior notes at 3.15% 2027 295.9 295.4 Senior notes at 3.50% 2028 444.0 443.3 Term loan, net of current portion of $34.4 and $25 million, respectively 2023 71.6 305.0 TOTAL LONG-TERM DEBT (a) $ 1,506.0 $ 1,737.1 (a) Long-term debt is presented net of debt issuance costs and unamortized discounts. Other information related to short-term debt at December 31, is summarized below: 2019 2018 Interest rate on short-term debt: At year end 2.59 % 3.21 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Selected Data with Respect to the Company's Income Tax Provision | The following table sets forth selected data with respect to the Company’s income tax provisions for the years ended December 31, (in millions): 2019 2018 2017 Income before income taxes: United States $ 406.7 $ 360.8 $ 354.7 International 113.8 106.2 88.4 TOTAL INCOME BEFORE INCOME TAXES $ 520.5 $ 467.0 $ 443.1 Provision for income taxes — current: Federal $ 65.0 $ 12.3 $ 164.1 State 16.6 21.8 15.3 International 25.4 17.8 28.1 Total provision — current 107.0 51.9 207.5 Provision for income taxes — deferred: Federal 8.6 35.0 (10.4 ) State 0.5 9.4 (0.9 ) International (3.0 ) 4.6 (3.0 ) Total provision — deferred 6.1 49.0 (14.3 ) TOTAL PROVISION FOR INCOME TAXES $ 113.1 $ 100.9 $ 193.2 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statement purposes. The components of the deferred tax assets/(liabilities) at December 31, were as follows (in millions): 2019 2018 Deferred tax assets: Inventories $ 10.1 $ 6.2 Right-of-use assets 24.8 — Income tax credits 26.9 24.5 Accrued liabilities 37.8 35.9 Pension 53.4 49.6 Post retirement and post employment benefits 6.0 6.6 Stock-based compensation 9.7 13.1 Loss Carryforwards 21.3 22.2 Miscellaneous other 11.9 8.8 Gross deferred tax assets 201.9 166.9 Valuation allowance (29.0 ) (21.8 ) Total deferred tax assets, net of valuation allowance 172.9 145.1 Deferred tax liabilities: Liability on undistributed foreign earnings (8.6 ) (10.9 ) Goodwill and Intangibles (212.3 ) (206.4 ) Lease liabilities (24.2 ) — Property, plant, and equipment (48.4 ) (41.4 ) Total deferred tax liabilities (293.5 ) (258.7 ) TOTAL NET DEFERRED TAX LIABILITY $ (120.6 ) $ (113.6 ) Deferred taxes are reflected in the Consolidated Balance Sheet as follows: Non-current tax assets (included in Other long-term assets) 6.2 6.4 Non-current tax liabilities (included in Other Non-Current Liabilities) (126.8 ) (120.0 ) TOTAL NET DEFERRED TAX LIABILITY $ (120.6 ) $ (113.6 ) |
Summary of Income Tax Examinations | The following tax years, by major jurisdiction, are still subject to examination by taxing authorities: Jurisdiction Open Years United States 2016-2019 UK 2018-2019 Puerto Rico 2015-2019 Canada 2015-2019 |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2019 2018 2017 Unrecognized tax benefits at beginning of year $ 38.9 $ 29.5 $ 20.2 Additions based on tax positions relating to the current year 7.0 3.8 13.6 Reductions based on expiration of statute of limitations (5.2 ) (1.7 ) (1.4 ) Additions to tax positions relating to previous years 1.6 7.4 1.0 Settlements (0.4 ) (0.1 ) (3.9 ) TOTAL UNRECOGNIZED TAX BENEFITS $ 41.9 $ 38.9 $ 29.5 |
Schedule of Effective Income Tax Rate Reconciliation | The consolidated effective income tax rate varied from the United States federal statutory income tax rate for the years ended December 31, as follows: 2019 2018 2017 Federal statutory income tax rate 21.0 % 21.0 % 35.0 % State income taxes, net of federal benefit 2.8 4.5 1.2 Foreign income taxes (0.7 ) (1.1 ) (3.1 ) Federal R&D Credit (1.2 ) (1.0 ) (1.0 ) TCJA and related — (1.3 ) 12.8 Other, net (0.2 ) (0.5 ) (1.3 ) CONSOLIDATED EFFECTIVE INCOME TAX RATE 21.7 % 21.6 % 43.6 % |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Accounted for at Fair Value | The following tables show, by level within the fair value hierarchy, the Company’s financial assets and liabilities that are accounted for at fair value on a recurring basis at December 31, 2019 and 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 Money market funds (a) $ 27.5 $ — $ — $ 27.5 Available for sale investments — 50.7 — 50.7 Trading securities 19.2 — — 19.2 Deferred compensation plan liabilities (19.2 ) — — (19.2 ) Derivatives: Forward exchange contracts-Assets (b) — — — — Forward exchange contracts-(Liabilities) (c) — (0.3 ) — (0.3 ) BALANCE AT DECEMBER 31, 2019 $ 27.5 $ 50.4 $ — $ 77.9 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 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) — — — — BALANCE AT DECEMBER 31, 2018 $ 15.1 $ 71.4 $ 2.3 $ 88.8 (a) Money market funds and time deposits are included in Cash and cash equivalents in the Consolidated Balance Sheet. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Consolidated Balance Sheet. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Consolidated Balance Sheet. |
Schedule of Derivative Instruments and Cash Flow Hedging Relationships | The following table summarizes the results of cash flow hedging relationships for years ended December 31, (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss, net of tax Location of Gain/(Loss) when reclassified Gain/(Loss) Reclassified into Earnings (Effective Portion), net of tax Derivative Instrument 2019 2018 (Effective Portion) 2019 2018 Forward exchange contract $ (0.8 ) $ 1.9 Net sales $ 0.2 $ 0.1 Cost of goods sold $ 0.3 $ 0.2 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity in the Company's Common Shares Outstanding | Activity in the Company’s common shares outstanding is set forth below for the three years ended December 31, 2019 (in thousands): Common Stock OUTSTANDING AT DECEMBER 31, 2016 55,532 Exercise of stock options/stock appreciation rights 53 Director compensation arrangements, net 10 Restricted/performance shares activity, net of forfeitures 89 Acquisition/surrender of shares (802 ) OUTSTANDING AT DECEMBER 31, 2017 54,882 Exercise of stock appreciation rights 66 Director compensation arrangements, net 11 Restricted/performance shares activity, net of forfeitures 165 Acquisition/surrender of shares (409 ) OUTSTANDING AT DECEMBER 31, 2018 54,715 Exercise of stock appreciation rights 84 Director compensation arrangements, net 10 Restricted/performance shares activity, net of forfeitures 39 Acquisition/surrender of shares (334 ) OUTSTANDING AT DECEMBER 31, 2019 54,514 |
Schedule of Shares of the Company's Reserved Common Stock | Shares of the Company’s common stock were reserved at December 31, 2019 as follows (in thousands): Common Stock Future grant of stock-based compensation 2,333 Shares reserved under other equity compensation plans 152 TOTAL 2,485 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the assumptions used in estimating the fair value of the outstanding PBRS: Grant Date Stock Price on Measurement Date Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value 2017 $ 127.51 24.7 % 1.9 % 3 Years $ 119.88 |
Schedule of Activity Related to Employee and Non-Employee Restricted Stock | Activity related to both employee and non-employee restricted stock for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Shares Weighted Average Grant Date Fair Value/Share RESTRICTED STOCK AT DECEMBER 31, 2018 284 $ 108.40 Shares granted 18 127.89 Shares vested (84 ) 105.70 Shares forfeited (20 ) 110.71 RESTRICTED STOCK AT DECEMBER 31, 2019 198 $ 110.89 |
Summary of Stock Appreciation Rights | Activity related to SARs for the year ended December 31, 2019 is as follows (in thousands, except per share amounts): Number of Rights Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value OUTSTANDING AT DECEMBER 31, 2018 2,111 $ 107.01 Granted 40 129.28 Exercised (474 ) 94.72 Forfeited (93 ) 115.63 Canceled (12 ) 128.32 OUTSTANDING AT DECEMBER 31, 2019 1,572 $ 110.66 6.8 Years $ 58,410 EXERCISABLE AT DECEMBER 31, 2019 1,198 $ 109.01 6.2 Years $ 46,497 |
Summary of the Weighted-Average Assumption Used in Estimating Fair Value of Stock Appreciation Rights | The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the years 2019 , 2018 and 2017 : Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR 2019 2.7 % 22.7 % 1.8 % 5.5 Years $ 21.25 2018 2.9 % 21.7 % 2.8 % 5.5 Years $ 18.23 2017 2.6 % 18.0 % 2.2 % 5.5 Years $ 17.45 |
Summary of Performance Shares Valuation | The following table summarizes the related assumptions used to determine the fair values of the performance share awards with a market condition granted during 2017 : Grant Date Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value 2017 $ 127.51 2.4 % 24.7 % 1.9 % 3 Years $ 142.89 |
Summary of the Attributes of the Performance Shares Granted During the Period | The following table summarizes the attributes of the performance shares granted in 2016 and 2017 and outstanding at December 31, 2019 : Grant Date Shares Outstanding at 12/31/2019 Fair Value Performance Period Payout Range 2017 19,389 $ 118.55 Jan 2018 - Dec 2020 0-250% 2016 23,276 $ 105.48 Jan 2017 - Dec 2019 0-250% Grant Date Shares Outstanding at 12/31/2019 Fair Value Performance Period Payout Range 2018 51,062 $ 98.80 Jan 2019-Dec 2021 0-200% +/- 20% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of earnings per share for the three years ended December 31 (in millions, except per share amounts): 2019 2018 2017 Numerator: Net income attributable to Hubbell $ 400.9 $ 360.2 $ 243.1 Less: Earnings allocated to participating securities (1.5 ) (1.3 ) (0.8 ) Net income available to common shareholders $ 399.4 $ 358.9 $ 242.3 Denominator: Average number of common shares outstanding 54.4 54.6 54.8 Potential dilutive shares 0.3 0.3 0.3 Average number of diluted shares outstanding 54.7 54.9 55.1 Earnings per share: Basic $ 7.35 $ 6.57 $ 4.42 Diluted $ 7.31 $ 6.54 $ 4.39 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of the Changes in Accumulated Other Comprehensive Loss (Net of Tax) | A summary of the changes in Accumulated other comprehensive loss (net of tax) for the three years ended December 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, 2016 $ — $ (1.2 ) $ (180.5 ) $ (120.8 ) $ (302.5 ) Other comprehensive income (loss) before Reclassifications (1.7 ) 0.6 (3.4 ) 28.9 24.4 Amounts reclassified from accumulated other comprehensive loss 0.9 — 7.4 — 8.3 Current period other comprehensive income (loss) (0.8 ) 0.6 4.0 28.9 32.7 BALANCE AT DECEMBER 31, 2017 $ (0.8 ) $ (0.6 ) $ (176.5 ) $ (91.9 ) $ (269.8 ) Other comprehensive income (loss) before Reclassifications 1.9 (1.4 ) 10.4 (33.9 ) (23.0 ) Amounts reclassified from accumulated other comprehensive loss (0.3 ) — 7.4 — 7.1 Current period other comprehensive income (loss) 1.6 (1.4 ) 17.8 (33.9 ) (15.9 ) BALANCE AT DECEMBER 31, 2018 $ 0.8 $ (2.0 ) $ (158.7 ) $ (125.8 ) $ (285.7 ) Other comprehensive income (loss) before Reclassifications (0.8 ) 0.8 (21.5 ) 3.7 (17.8 ) Amounts reclassified from accumulated other comprehensive loss (0.5 ) 1.8 7.0 (7.7 ) 0.6 Current period other comprehensive income (loss) (1.3 ) 2.6 (14.5 ) (4.0 ) (17.2 ) Reclassification of stranded tax effects — — (30.0 ) — (30.0 ) BALANCE AT DECEMBER 31, 2019 $ (0.5 ) $ 0.6 $ (203.2 ) $ (129.8 ) $ (332.9 ) |
Summary of the Gain (Loss) Reclassifications Out of Accumulated Other Comprehensive Loss | A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the two years ended December 31 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components 2019 2018 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.3 $ 0.1 Net Sales 0.4 0.3 Cost of goods sold 0.7 0.4 Total before tax (0.2 ) (0.1 ) Tax (expense) benefit $ 0.5 $ 0.3 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.7 (a) $ 0.9 (a) Actuarial gains/(losses) (9.7 ) (a) (10.7 ) (a) Settlement and curtailment losses (0.3 ) (a) — (a) (9.3 ) (9.8 ) Total before tax 2.3 2.4 Tax benefit (expense) $ (7.0 ) $ (7.4 ) (Loss) gain net of tax Reclassification of gains (losses) on available-for-sale securities $ (1.8 ) $ — Other expense, net — — Tax benefit (expense) $ (1.8 ) $ — (Loss) gain net of tax Reclassification of currency translation gain $ 7.7 $ — Gain on disposition of business (Note 3) — — Tax benefit (expense) $ 7.7 $ — Gain (loss) net of tax Gains (losses) reclassified into earnings $ (0.6 ) $ (7.1 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 — Retirement Benefits for additional details). |
Industry Segments and Geograp_2
Industry Segments and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summary of Industry Segment Data | INDUSTRY SEGMENT DATA 2019 2018 2017 Net Sales: Electrical $ 2,625.7 $ 2,660.6 $ 2,532.8 Power 1,965.3 1,821.1 1,136.0 TOTAL NET SALES $ 4,591.0 $ 4,481.7 $ 3,668.8 Operating Income: Electrical $ 320.1 $ 320.8 $ 294.0 Power 276.5 236.1 224.8 Operating Income $ 596.6 $ 556.9 $ 518.8 Gain on disposition of business (Note 3) 21.7 — — Multi-employer pension charge (Note 15) (8.5 ) — — Interest expense (69.4 ) (72.4 ) (44.9 ) Loss on extinguishment of debt — — (10.1 ) Investment income and other expense, net (19.9 ) (17.5 ) (20.7 ) INCOME BEFORE INCOME TAXES $ 520.5 $ 467.0 $ 443.1 Assets: Electrical $ 2,197.8 $ 2,228.5 $ 2,344.7 Power 2,401.3 2,395.8 1,102.2 General Corporate 303.9 247.8 273.7 TOTAL ASSETS $ 4,903.0 $ 4,872.1 $ 3,720.6 Capital Expenditures: Electrical $ 45.8 $ 53.0 $ 48.0 Power 45.4 36.8 29.0 General Corporate 2.7 6.4 2.7 TOTAL CAPITAL EXPENDITURES $ 93.9 $ 96.2 $ 79.7 Depreciation and Amortization: Electrical $ 65.0 $ 61.4 $ 64.7 Power 86.0 87.0 33.5 TOTAL DEPRECIATION AND AMORTIZATION $ 151.0 $ 148.4 $ 98.2 |
Summary of Geographic Area Data | GEOGRAPHIC AREA DATA 2019 2018 2017 Net Sales: United States $ 4,190.5 $ 4,040.6 $ 3,280.9 International 400.5 441.1 387.9 TOTAL NET SALES $ 4,591.0 $ 4,481.7 $ 3,668.8 Operating Income: United States $ 529.7 $ 478.0 $ 435.8 International 66.9 78.9 83.0 TOTAL OPERATING INCOME $ 596.6 $ 556.9 $ 518.8 Long-lived Assets: United States $ 2,950.4 $ 2,972.4 $ 1,877.4 International 372.2 245.0 232.8 TOTAL LONG-LIVED ASSETS $ 3,322.6 $ 3,217.4 $ 2,110.2 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Standard Product Warranty Disclosure [Abstract] | |
Summary of Changes in the Accrued Product Warranties | Changes in the accrual for product warranties in 2019 are set forth below (in millions): BALANCE AT DECEMBER 31, 2017 $ 14.0 Provision 12.0 Expenditures/other (22.7 ) Acquisitions (a) 89.4 BALANCE AT DECEMBER 31, 2018 $ 92.7 Provision 15.8 Expenditures/other (26.4 ) BALANCE AT DECEMBER 31, 2019 (b) $ 82.1 (a) Relates to the Aclara acquisition. Refer to Note 3 – Business Acquisitions for additional information. (b) Refer to Note 9 – Other Accrued Liabilities and Note 10 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Costs | Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Consolidated Statement of Income for the years ended December 31, 2019 , 2018 and 2017 are as follows (in millions): Twelve Months Ended December 31, 2019 Twelve Months Ended December 31, 2018 Twelve Months Ended December 31, 2017 Electrical Power Total Electrical Power Total Electrical Power Total Restructuring costs Cost of goods sold $ 12.5 $ 9.8 $ 22.3 $ 4.9 $ 3.3 $ 8.2 $ 11.5 $ 2.2 $ 13.7 S&A expense 8.0 1.7 9.7 3.4 0.4 3.8 5.4 1.2 6.6 Total restructuring costs $ 20.5 $ 11.5 $ 32.0 $ 8.3 $ 3.7 $ 12.0 $ 16.9 $ 3.4 $ 20.3 |
Schedule of Restructuring Reserve by Type of Cost | The actual and expected pre-tax costs for our restructuring actions are as follows (in millions): Expected Costs Costs incurred in 2017 Costs incurred in 2018 Costs incurred in 2019 Remaining costs at 12/31/19 2019 Restructuring Actions Electrical Segment $ 21.2 $ — $ — $ 18.3 $ 2.9 Power Segment 21.0 — — 10.8 10.2 Total 2019 Restructuring Actions $ 42.2 $ — $ — $ 29.1 $ 13.1 2018 Restructuring Actions Electrical Segment $ 12.5 $ — $ 8.6 $ 2.2 $ 1.7 Power Segment 4.8 — 4.1 0.7 — Total 2018 Restructuring Actions $ 17.3 $ — $ 12.7 $ 2.9 $ 1.7 2017 and Prior Restructuring Actions Electrical Segment $ 16.6 $ 16.9 $ (0.3 ) $ — $ — Power Segment 3.0 3.4 (0.4 ) — — Total 2017 and Prior Restructuring Actions $ 19.6 $ 20.3 $ (0.7 ) $ — $ — Total Restructuring Actions $ 79.1 $ 20.3 $ 12.0 $ 32.0 $ 14.8 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 12/31/19 2019 Restructuring Actions Severance $ — $ 16.6 $ (8.3 ) $ 8.3 Asset write-downs — 4.8 (4.8 ) — Facility closure and other costs — 7.7 (7.6 ) 0.1 Total 2019 Restructuring Actions $ — $ 29.1 $ (20.7 ) $ 8.4 2018 and Prior Restructuring Actions Severance $ 7.7 $ 0.3 $ (5.0 ) $ 3.0 Asset write-downs — 0.3 (0.3 ) — Facility closure and other costs 13.3 2.3 (9.6 ) 6.0 Total 2018 and Prior Restructuring Actions $ 21.0 $ 2.9 $ (14.9 ) $ 9.0 Total Restructuring Actions $ 21.0 $ 32.0 $ (35.6 ) $ 17.4 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of lease expense | Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions): December 31, 2019 Operating lease right-of-use assets $ 96.8 TOTAL ASSETS $ 96.8 Other accrued liabilities $ 29.6 Other non-current liabilities 71.7 TOTAL LIABILITIES $ 101.3 |
Maturities of lease liabilities | Future maturities of our operating lease liabilities as of December 31, 2019 are as follows (in millions): 2020 2021 2022 2023 2024 Thereafter Total Payments Imputed Interest Total Operating Leases 32.7 24.6 15.8 13.2 8.4 15.9 110.6 (9.3) $101.3 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | The table below sets forth summarized quarterly consolidated financial data for the years ended December 31, 2019 and 2018 (in millions, except per share amounts): Reported First Quarter Reported Second Quarter Reported Third Quarter Fourth Quarter 2019 Net sales $ 1,087.3 $ 1,196.4 $ 1,204.0 $ 1,103.3 Cost of goods sold $ 780.0 $ 839.0 $ 842.0 $ 777.3 Gross profit $ 307.3 $ 357.4 $ 362.0 $ 326.0 Selling & administrative expenses $ 186.4 $ 190.5 $ 189.1 $ 190.1 Net income $ 73.8 $ 97.9 $ 132.6 $ 103.1 Net Income attributable to Hubbell $ 72.3 $ 96.0 $ 130.7 $ 101.9 Earnings per share — Basic $ 1.32 $ 1.76 $ 2.40 $ 1.87 Earnings per share — Diluted $ 1.32 $ 1.75 $ 2.38 $ 1.85 Reported First Quarter Reported Second Quarter Reported Third Quarter Fourth Quarter 2018 Net sales $ 991.2 $ 1,166.7 $ 1,179.7 $ 1,144.1 Cost of goods sold $ 708.3 $ 818.8 $ 830.7 $ 823.5 Gross profit $ 282.9 $ 347.9 $ 349.0 $ 320.6 Selling & administrative expenses $ 183.3 $ 191.0 $ 185.2 $ 184.0 Net income $ 59.8 $ 102.4 $ 114.7 $ 89.2 Net Income attributable to Hubbell $ 58.3 $ 100.3 $ 113.6 $ 88.0 Earnings per share — Basic $ 1.06 $ 1.83 $ 2.07 $ 1.61 Earnings per share — Diluted $ 1.05 $ 1.82 $ 2.06 $ 1.60 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($)venturereporting_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Number of joint ventures | venture | 3 | ||||
Revenue from service contracts and post-shipment performance obligations (in percentage) | 3.00% | ||||
Percentage of LIFO inventory | 61.00% | ||||
Capitalized Computer Software, Net [Abstract] | |||||
Capitalized computer software costs, net of amortization | $ 22,500,000 | $ 20,200,000 | |||
Amortization expense | $ 9,000,000 | 6,400,000 | $ 5,600,000 | ||
Goodwill Annual Impairment Test [Abstract] | |||||
Number of reporting units, step-zero test applied | reporting_unit | 4 | ||||
Number of reporting units | reporting_unit | 7 | ||||
Finite Lived Intangible Assets, Percent of Gross Value Under Amortization Method | 0.75 | ||||
Impairment of intangible assets, finite-lived | $ 0 | 0 | 0 | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | 0 | $ 0 | ||
Fair value of warranty obligation | $ 89,400,000 | ||||
Research and development expense as a percentage of cost of goods sold | 3.00% | ||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||
Operating lease right-of-use assets | $ 96,800,000 | ||||
Operating lease liabilities | 101,300,000 | ||||
Increase in retained earnings | $ 30,000,000 | $ (30,000,000) | |||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||
Operating lease right-of-use assets | $ 109,300,000 | ||||
Operating lease liabilities | $ 109,300,000 | ||||
Minimum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Customer returns as a percentage of gross sales | 1.00% | ||||
Goodwill Annual Impairment Test [Abstract] | |||||
Useful life, intangible assets | 5 years | ||||
Maximum | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Customer returns as a percentage of gross sales | 2.00% | ||||
Goodwill Annual Impairment Test [Abstract] | |||||
Useful life, intangible assets | 30 years | ||||
Capitalized Computer Software Costs | Minimum | |||||
Capitalized Computer Software, Net [Abstract] | |||||
Depreciable lives | 3 years | ||||
Capitalized Computer Software Costs | Maximum | |||||
Capitalized Computer Software, Net [Abstract] | |||||
Depreciable lives | 5 years | ||||
Joint Venture In Hong Kong | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Ownership percentage | 50.00% |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 1,103.3 | $ 1,204 | $ 1,196.4 | $ 1,087.3 | $ 1,144.1 | $ 1,179.7 | $ 1,166.7 | $ 991.2 | $ 4,591 | $ 4,481.7 | $ 3,668.8 |
Hubbell Commercial and Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 902.1 | 910.8 | 864.5 | ||||||||
Hubbell Construction and Energy | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 808.7 | 799.7 | 732.6 | ||||||||
Hubbell Lighting | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 914.9 | 950.1 | 935.7 | ||||||||
Hubbell Power Systems | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,965.3 | 1,821.1 | 1,136 | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 4,190.5 | 4,040.6 | 3,280.9 | ||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 400.5 | 441.1 | 387.9 | ||||||||
Electrical | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,625.7 | 2,660.6 | 2,532.8 | ||||||||
Electrical | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,358.2 | 2,365.4 | 2,229.3 | ||||||||
Electrical | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 267.5 | 295.2 | 303.5 | ||||||||
Power | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,965.3 | 1,821.1 | 1,136 | ||||||||
Power | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,832.3 | 1,675.2 | 1,051.6 | ||||||||
Power | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 133 | $ 145.9 | $ 84.4 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Percentage of sales to distributors | 66.667% | |
Contract liability | $ 31 | $ 27.7 |
Increase in contract liability | 3.3 | |
Increase in current year deferrals | 22.4 | |
Revenue recognized | 14.3 | |
Decline in contract liabilities related to disposal | $ 4.8 |
Revenue - Unsatisfied Performan
Revenue - Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 395 |
Unsatisfied performance obligation, period of recognition | 3 years |
Business Acquisitions and Dis_3
Business Acquisitions and Dispositions - Narrative (Details) - USD ($) | Feb. 02, 2018 | Aug. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2018 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 1,811,800,000 | $ 1,811,800,000 | $ 1,784,400,000 | $ 1,089,000,000 | |||
Acquisitions, net of cash acquired | 70,800,000 | 1,118,000,000 | 184,100,000 | ||||
Gain on disposition of business | $ 21,700,000 | $ 0 | 0 | ||||
Disposal by sale | Haefely Test, AG | |||||||
Business Acquisition [Line Items] | |||||||
Proceeds from Disposal of business | $ 38,100,000 | ||||||
Dispositions, tangible assets | 32,300,000 | ||||||
Dispositions, goodwill | 3,100,000 | ||||||
Dispositions, liabilities | 12,200,000 | ||||||
Dispositions, translation adjustments recognized | $ 7,700,000 | ||||||
Term Loan Agreement | Line of Credit | |||||||
Business Acquisition [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 500,000,000 | ||||||
Notes 2028 Term | Senior Notes | |||||||
Business Acquisition [Line Items] | |||||||
Senior notes, stated percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||
Face amount | $ 450,000,000 | $ 450,000,000 | |||||
2019 Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Goodwill | $ 29,400,000 | $ 29,400,000 | |||||
Cantega | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred to acquire business | 36,300,000 | ||||||
Intangible asset acquired | 20,400,000 | 20,400,000 | |||||
Goodwill | $ 14,200,000 | 14,200,000 | |||||
Weighted average estimated useful life | 12 years | ||||||
CPI | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred to acquire business | $ 28,000,000 | ||||||
Intangible asset acquired | 12,800,000 | 12,800,000 | |||||
Goodwill | $ 10,500,000 | 10,500,000 | |||||
Weighted average estimated useful life | 18 years | ||||||
Other 2019 Acquisition | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred to acquire business | $ 5,000,000 | ||||||
Goodwill | $ 4,700,000 | 4,700,000 | |||||
Aclara | |||||||
Business Acquisition [Line Items] | |||||||
Consideration transferred to acquire business | 1,100,000,000 | ||||||
Goodwill | 708,700,000 | ||||||
Deductible goodwill | $ 159,900,000 | ||||||
Transaction costs | $ 12,800,000 | $ 7,100,000 | |||||
Contributed sales | 611,100,000 | ||||||
Contributed operating income | 29,600,000 | ||||||
Prior Immaterial Business Acquisitions | |||||||
Business Acquisition [Line Items] | |||||||
Deferred purchase price and net working capital settlements | $ 1,500,000 | $ 1,700,000 |
Business Acquisitions and Dis_4
Business Acquisitions and Dispositions - Summary of the Preliminary Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,811.8 | $ 1,784.4 | $ 1,089 |
2019 Acquisitions | |||
Business Acquisition [Line Items] | |||
Tangible assets acquired | 21.7 | ||
Intangible assets | 33.2 | ||
Goodwill | 29.4 | ||
Net deferred taxes | (5.7) | ||
Other liabilities assumed | (9.3) | ||
Total Estimate of Consideration Transferred, Net of Cash Acquired | $ 69.3 |
Business Acquisitions and Dis_5
Business Acquisitions and Dispositions - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 02, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,811.8 | $ 1,784.4 | $ 1,089 | |
Aclara | ||||
Business Acquisition [Line Items] | ||||
Accounts receivable | $ 118.1 | |||
Inventories | 73.5 | |||
Other current assets | 8.5 | |||
Property, plant and equipment | 30.9 | |||
Intangible assets | 434 | |||
Accounts payable | (51.8) | |||
Other accrued liabilities | (93.3) | |||
Deferred tax liabilities, net | (42.1) | |||
Other non-current liabilities | (67.7) | |||
Noncontrolling interest | (2.5) | |||
Goodwill | 708.7 | |||
Total Estimate of Consideration Transferred, Net of Cash Acquired | $ 1,116.3 |
Business Acquisitions and Dis_6
Business Acquisitions and Dispositions - Schedule of Preliminary Purchase Price Allocation to Identified Intangible Assets Acquired (Details) - Aclara $ in Millions | Feb. 02, 2018USD ($) |
Business Acquisition [Line Items] | |
Estimated fair value | $ 434 |
Patents, tradenames and trademarks | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 55 |
Weighted Average Estimated Useful Life | 20 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 194 |
Weighted Average Estimated Useful Life | 18 years |
Developed technology | |
Business Acquisition [Line Items] | |
Estimated fair value | $ 185 |
Weighted Average Estimated Useful Life | 13 years |
Business Acquisitions and Dis_7
Business Acquisitions and Dispositions - Summary of Transaction Costs (Details) - Aclara - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||
Total Aclara Transaction Costs | $ 12.8 | $ 7.1 |
Selling & administrative expense | ||
Business Acquisition [Line Items] | ||
Total Aclara Transaction Costs | 9.5 | 6.7 |
Interest expense | ||
Business Acquisition [Line Items] | ||
Total Aclara Transaction Costs | $ 3.3 | $ 0.4 |
Business Acquisitions and Dis_8
Business Acquisitions and Dispositions - Summary of Pro-forma Information (Details) - Aclara - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Net sales | $ 4,531.2 | $ 4,180.9 |
Net income attributable to Hubbell | $ 376.4 | $ 209.8 |
Business Acquisition, Pro Forma Information, Earnings Per Share [Abstract] | ||
Basic (USD per share) | $ 6.86 | $ 3.82 |
Diluted (USD per share) | $ 6.83 | $ 3.81 |
Receivables and Allowances (Det
Receivables and Allowances (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Trade accounts receivable | $ 696.8 | $ 739.1 |
Non-trade receivables | 29.9 | 26.2 |
Accounts receivable, gross | 726.7 | 765.3 |
Allowance for credit memos, returns and cash discounts | (36) | (35.1) |
Allowance for doubtful accounts | (7.7) | (4.8) |
Total allowances | (43.7) | (39.9) |
ACCOUNTS RECEIVABLE, NET | $ 683 | $ 725.4 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 217.4 | $ 220.2 |
Work-in-process | 101.8 | 110.3 |
Finished goods | 403.6 | 402.3 |
Inventory, gross | 722.8 | 732.8 |
Excess of FIFO over LIFO cost basis | (89.8) | (81.8) |
INVENTORIES, NET | $ 633 | $ 651 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 1,784.4 | $ 1,089 |
Current year acquisitions | 29.4 | 708.7 |
Dispositions | (3.1) | |
Foreign currency translation and prior year acquisitions | 1.1 | (13.3) |
Goodwill, end of period | 1,811.8 | 1,784.4 |
Electrical | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 714.1 | 717.6 |
Current year acquisitions | 15.2 | 0 |
Dispositions | (3.1) | |
Foreign currency translation and prior year acquisitions | 1.5 | (3.5) |
Goodwill, end of period | 727.7 | 714.1 |
Power | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 1,070.3 | 371.4 |
Current year acquisitions | 14.2 | 708.7 |
Dispositions | 0 | |
Foreign currency translation and prior year acquisitions | (0.4) | (9.8) |
Goodwill, end of period | $ 1,084.1 | $ 1,070.3 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill acquired | $ 29.4 | $ 708.7 | |
Year to date amortization expense | $ 72 | $ 68.9 | $ 34.9 |
Percent of finite lived intangible assets under amortization method | 0.75 | ||
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Amortization expense, 2020 | $ 74.3 | ||
Amortization expense, 2021 | 72.3 | ||
Amortization expense, 2022 | 67.2 | ||
Amortization expense, 2023 | 62.4 | ||
Amortization expense, 2024 | $ 57 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,063.7 | $ 1,037.4 |
Accumulated Amortization | (335.8) | (271.2) |
Indefinite-lived intangible assets (excluding goodwill) | 53.6 | 53.3 |
TOTAL INTANGIBLE ASSETS | 1,117.3 | 1,090.7 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 202.7 | 204.4 |
Accumulated Amortization | (65) | (58.6) |
Customer relationships, developed technology and other | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 861 | 833 |
Accumulated Amortization | $ (270.8) | $ (212.6) |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Securities, Available-for-sale [Line Items] | |||
Unrealized gain (loss) on investments, net of taxes of ($0.2), $0.4 and ($0.2) | $ 2.6 | $ (1.4) | $ 0.6 |
State and Local Municipal Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Available-for-sale investment, amortized cost basis | $ 50 |
Investments - Amortized Cost Ba
Investments - Amortized Cost Basis (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale securities | ||
Fair Value | $ 50.7 | $ 51.2 |
Trading securities | ||
Fair Value | 19.2 | 14.3 |
Estimate of Fair Value Measurement | ||
Available-for-sale securities | ||
Amortized Cost | 50 | 54 |
Gross Unrealized Gains | 0.8 | 1.1 |
Gross Unrealized Losses | (0.1) | (3.9) |
Fair Value | 50.7 | 51.2 |
Trading securities | ||
Amortized Cost | 12 | 10.1 |
Gross Unrealized Gains | 7.2 | 4.2 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 19.2 | 14.3 |
Investments, amortized cost | 62 | 64.1 |
Investments, Gross Unrealized Gains | 8 | 5.3 |
Investments, Gross Unrealized Loss | (0.1) | (3.9) |
TOTAL INVESTMENTS | 69.9 | 65.5 |
Reported Value Measurement | ||
Available-for-sale securities | ||
Fair Value | 50.7 | 51.2 |
Trading securities | ||
Fair Value | 19.2 | 14.3 |
TOTAL INVESTMENTS | $ 69.9 | $ 65.5 |
Investments - Contractual Matur
Investments - Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost [Abstract] | ||
Amortized Cost Due within 1 year | $ 14.2 | |
Amortized Cost After 1 year but within 5 years | 23.1 | |
Amortized Cost After 5 years but within 10 years | 4.9 | |
Amortized Cost Due after 10 years | 7.8 | |
Fair Value [Abstract] | ||
Fair Value Due within 1 year | 14.2 | |
Fair Value After 1 year but within 5 years | 23.6 | |
Fair Value After 5 years but within 10 years | 5.1 | |
Fair Value Due after 10 years | 7.8 | |
Available-for-sale securities, fair value | $ 50.7 | $ 51.2 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 1,254.3 | $ 1,229.2 | |
Less accumulated depreciation | (749.1) | (727.1) | |
PROPERTY, PLANT, AND EQUIPMENT, NET | 505.2 | 502.1 | |
Depreciation | 70 | 66.1 | $ 57.5 |
Land | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | 37.7 | 42.2 | |
Buildings and improvements | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 285.3 | 277.3 | |
Buildings and improvements | Minimum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 20 years | ||
Buildings and improvements | Maximum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 45 years | ||
Machinery, tools, and equipment | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 896 | 863.5 | |
Machinery, tools, and equipment | Minimum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 3 years | ||
Machinery, tools, and equipment | Maximum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 15 years | ||
Construction-in-progress | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 35.3 | $ 46.2 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 49 | $ 52.4 |
Accrued income taxes | 6 | 3.4 |
Contract liabilities - deferred revenue | 31 | 27.7 |
Customer refund liability | 19 | 15.3 |
Accrued warranties | 24 | 33.5 |
Other accrued liabilities | 29.6 | |
Other | 103.6 | 94.3 |
TOTAL | $ 262.2 | $ 226.6 |
Other Non-Current Liabilities_2
Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities, Noncurrent [Abstract] | ||
Pensions | $ 198.5 | $ 177 |
Other post-employment benefits | 21.5 | 23.7 |
Deferred tax liabilities | 126.8 | 120 |
Accrued warranties long-term | 58.1 | 59.2 |
Other non-current liabilities | 71.7 | |
Other | 115 | 116.9 |
TOTAL | $ 591.6 | $ 496.8 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2019USD ($)benefit_plan | Sep. 30, 2018USD ($)benefit_plan | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)benefit_plan | Dec. 31, 2018USD ($)benefit_plan | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Number of foreign plans amended | benefit_plan | 1 | |||||||
Accumulated benefit obligation | $ 933,500,000 | $ 933,500,000 | $ 835,600,000 | |||||
Number of defined contribution pension plans (benefit plan) | benefit_plan | 5 | 5 | ||||||
Defined contribution pension plans, total costs | $ 23,400,000 | $ 22,500,000 | $ 19,800,000 | |||||
Number of multiemployer defined benefit pension plans (benefit_plan) | benefit_plan | 1 | 1 | 1 | |||||
Multiemployer plan total employer contributions | $ 200,000 | $ 200,000 | 400,000 | |||||
Pre-tax restructuring costs | 32,000,000 | 12,000,000 | 20,300,000 | |||||
Settlement of multi-employer pension plan | $ 10,000,000 | |||||||
Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Benefit obligation | 938,700,000 | $ 938,700,000 | $ 844,300,000 | $ 956,100,000 | ||||
Settlement of multi-employer pension plan | $ 10,000,000 | |||||||
Discount rate | 3.17% | 3.17% | 4.24% | 3.67% | ||||
Employer contributions | $ 10,400,000 | |||||||
United States | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Curtailment gain (loss) | $ (300,000) | |||||||
Projected benefit obligation settled | $ 28,000,000 | |||||||
Defined benefit obligation per plan, as a percent of total benefit obligation | 88.00% | |||||||
Discount rate | 3.30% | 3.30% | 4.40% | |||||
Voluntary contributions | $ 10,000,000 | |||||||
Foreign Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Curtailment gain (loss) | $ 4,700,000 | |||||||
Foreign Plan | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Estimated future employer contributions in next fiscal year | $ 4,300,000 | $ 4,300,000 | ||||||
Canada | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rate | 3.00% | 3.00% | 3.60% | |||||
United Kingdom | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Discount rate | 2.10% | 2.10% | 2.90% | |||||
Withdrawal from Multiemployer Defined Benefit Plan | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Pre-tax restructuring costs | $ 8,500,000 | $ 12,500,000 | ||||||
Company Stock | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Employer stock included in plan assets | $ 0 | |||||||
Company Stock | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Employer stock included in plan assets | $ 0 | $ 0 | ||||||
Forecast | Pension Benefits | ||||||||
Defined Benefit Plan Disclosure [Line Items] | ||||||||
Settlement of multi-employer pension plan | $ 5,000,000 | $ 6,000,000 |
Retirement Benefits - Change in
Retirement Benefits - Change in Benefit Obligations and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 670.6 | ||
Fair value of plan assets at end of year | 743.4 | $ 670.6 | |
Prepaid pensions (included in Other long-term assets) | 174.6 | 66.1 | |
Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 844.3 | 956.1 | |
Acquisitions | 0 | 1.3 | |
Service cost | 2.2 | 3.8 | $ 5.9 |
Interest cost | 34.6 | 34.3 | 37.2 |
Plan participants’ contributions | 0.4 | 0.4 | |
Amendments | 0 | 3.6 | |
Actuarial loss/(gain) | 107 | (72.4) | |
Curtailment gain | 0 | (5.7) | |
Currency impact | 3.6 | (5.7) | |
Other | 0.1 | (0.5) | |
Benefits paid | (53.5) | (70.9) | |
Benefit obligation at end of year | 938.7 | 844.3 | 956.1 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 670.1 | 738.8 | |
Acquisitions | 0 | 1.2 | |
Actual return on plan assets | 106.2 | (27.5) | |
Employer contributions | 16.4 | 34 | |
Plan participants’ contributions | 0.4 | 0.4 | |
Currency impact | 3.8 | (5.9) | |
Benefits paid | (53.5) | (70.9) | |
Fair value of plan assets at end of year | 743.4 | 670.1 | 738.8 |
FUNDED STATUS | (195.3) | (174.2) | |
Prepaid pensions (included in Other long-term assets) | 8.6 | 8 | |
Accrued benefit liability (short-term and long-term) | (203.9) | (182.2) | |
NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET | (195.3) | (174.2) | |
Amounts recognized in Accumulated other comprehensive loss (income) consist of: | |||
Net actuarial loss | 263.4 | 240.8 | |
Prior service cost (credit) | 3.6 | 4.1 | |
NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 267 | 244.9 | |
Other Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 26.1 | 27 | |
Acquisitions | 0 | 0 | |
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 1.1 | 1 | 1 |
Plan participants’ contributions | 0 | 0 | |
Amendments | 0 | 0 | |
Actuarial loss/(gain) | (2) | (0.5) | |
Curtailment gain | 0 | 0 | |
Currency impact | 0 | 0 | |
Other | 0 | 0 | |
Benefits paid | (1.5) | (1.5) | |
Benefit obligation at end of year | 23.8 | 26.1 | 27 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Acquisitions | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 1.5 | 1.5 | |
Plan participants’ contributions | 0 | 0 | |
Currency impact | 0 | 0 | |
Benefits paid | (1.5) | (1.5) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
FUNDED STATUS | (23.8) | (26.1) | |
Prepaid pensions (included in Other long-term assets) | 0 | 0 | |
Accrued benefit liability (short-term and long-term) | (23.8) | (26.1) | |
NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET | (23.8) | (26.1) | |
Amounts recognized in Accumulated other comprehensive loss (income) consist of: | |||
Net actuarial loss | 0.3 | 2.4 | |
Prior service cost (credit) | (0.4) | (1.3) | |
NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS | $ (0.1) | $ 1.1 |
Retirement Benefits - Accumulat
Retirement Benefits - Accumulated Benefit Obligation In Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||
Projected benefit obligation | $ 823.8 | $ 744 |
Accumulated benefit obligation | 819 | 735.4 |
Fair value of plan assets | $ 620 | $ 561.7 |
Retirement Benefits - Component
Retirement Benefits - Components of Pension and Other Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | $ 2.2 | $ 3.8 | $ 5.9 |
Interest cost | 34.6 | 34.3 | 37.2 |
Expected return on plan assets | (30.7) | (33.5) | (34.1) |
Amortization of prior service cost (credit) | 0.2 | 0.1 | 0.1 |
Amortization of actuarial losses (gains) | 9.6 | 10.5 | 11.4 |
Curtailment and settlement losses | 0.3 | 0 | 0.4 |
Net periodic benefit cost | 16.2 | 15.2 | 20.9 |
Changes recognized in other comprehensive loss (income), before tax: | |||
Current year net actuarial loss (gain) | 31.5 | (15.8) | 4.2 |
Current year prior service credit | 0 | 2 | 0.3 |
Amortization of prior service (cost) credit | (0.2) | (0.1) | (0.1) |
Amortization of net actuarial (losses) gains | (9.6) | (10.5) | (11.4) |
Currency impact | 0.7 | (1.3) | 3.5 |
Other adjustments | (0.3) | 0 | (0.4) |
Total recognized in other comprehensive loss | 22.1 | (25.7) | (3.9) |
TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS | 38.3 | (10.5) | 17 |
Other Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0.1 | 0.1 | 0.1 |
Interest cost | 1.1 | 1 | 1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | (0.9) | (0.8) | (1) |
Amortization of actuarial losses (gains) | 0.1 | 0 | 0 |
Curtailment and settlement losses | 0 | 0 | 0 |
Net periodic benefit cost | 0.4 | 0.3 | 0.1 |
Changes recognized in other comprehensive loss (income), before tax: | |||
Current year net actuarial loss (gain) | (2) | (0.4) | 1.4 |
Current year prior service credit | 0 | 0 | 0 |
Amortization of prior service (cost) credit | 0.9 | 1 | 1 |
Amortization of net actuarial (losses) gains | (0.1) | (0.2) | 0 |
Currency impact | 0 | 0 | 0 |
Other adjustments | 0 | 0 | 0 |
Total recognized in other comprehensive loss | (1.2) | 0.4 | 2.4 |
TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS | $ (0.8) | $ 0.7 | $ 2.5 |
Retirement Benefits - Projected
Retirement Benefits - Projected Benefit Obligation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.17% | 4.24% | 3.67% |
Rate of compensation increase | 2.94% | 3.25% | 3.24% |
Discount rate | 4.24% | 3.67% | 4.12% |
Expected return on plan assets | 4.75% | 4.68% | 4.94% |
Rate of compensation increase | 3.25% | 3.24% | 3.55% |
Other Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 3.30% | 4.40% | 3.70% |
Rate of compensation increase | 4.00% | 4.05% | 4.00% |
Discount rate | 4.40% | 3.70% | 4.10% |
Rate of compensation increase | 4.05% | 4.00% | 3.93% |
Retirement Benefits - Assumed H
Retirement Benefits - Assumed Health Care Cost Trend Rates (Details) - Other Benefits | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Health care cost trend assumed for next year | 6.60% | 6.80% | 7.00% |
Rate to which the cost trend is assumed to decline | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2028 | 2028 | 2028 |
Retirement Benefits - Combined
Retirement Benefits - Combined Targeted and Actual Domestic and Foreign Pension Plans Weighted Average Asset Allocation (Details) | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, actual | 100.00% | 100.00% | |
Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, actual | 25.00% | 19.00% | |
Debt securities & Cash | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, actual | 73.00% | 67.00% | |
Alternative Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, actual | 2.00% | 14.00% | |
Forecast | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, target | 100.00% | ||
Forecast | Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, target | 22.00% | ||
Forecast | Debt securities & Cash | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, target | 76.00% | ||
Forecast | Alternative Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, target | 2.00% |
Retirement Benefits - Fair Valu
Retirement Benefits - Fair Value Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 743.4 | $ 670.6 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 16.6 | 47 |
US Large-Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8.2 | |
US Mid-Cap and Small-Cap Growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.1 | |
International Large-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8.6 | |
Equity Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 31.6 | |
Common Pooled Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 144 | 12.7 |
Emerging Markets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13.3 | |
U.S. Treasuries | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 64.5 | 378 |
State and Local Municipal Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9.4 | |
Sovereign Debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.6 | |
Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 122.9 | 0.3 |
Fixed Income Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 54.2 | |
Common Pooled Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 252.3 | 61.8 |
Asset Backed Securities and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 22.8 | |
Derivative Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8.2 | |
Derivative Liability | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | (7.9) | |
Alternative Investment Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 18.1 | 96.8 |
Common Pooled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 22.2 | 17.7 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 103 | 88.9 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 16.6 | 47 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Large-Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8.2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Mid-Cap and Small-Cap Growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Large-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 31.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Pooled Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Emerging Markets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8.1 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasuries | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | State and Local Municipal Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Sovereign Debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.1 | 0.3 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 54.2 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Pooled Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset Backed Securities and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 8 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative Liability | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | (6.9) | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Alternative Investment Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 11.6 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Pooled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.5 | 0.9 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 623.2 | 495.6 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | US Large-Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | US Mid-Cap and Small-Cap Growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | International Large-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Equity Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Common Pooled Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 144 | 12.7 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Emerging Markets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.2 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | U.S. Treasuries | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 64.5 | 378 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | State and Local Municipal Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9.4 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Sovereign Debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 7.6 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 122.8 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Fixed Income Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Common Pooled Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 252.3 | 57.6 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Asset Backed Securities and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 22.8 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Derivative Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.2 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Derivative Liability | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | (1) | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Alternative Investment Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.9 | 3.3 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Common Pooled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 21.7 | 16.8 |
Unobservable inputs for which little or no market data exists (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | US Large-Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | US Mid-Cap and Small-Cap Growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | International Large-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Equity Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Common Pooled Equity Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Emerging Markets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | U.S. Treasuries | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | State and Local Municipal Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Sovereign Debt | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Fixed Income Mutual Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Common Pooled Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Asset Backed Securities and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Derivative Assets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Derivative Liability | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Alternative Investment Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Common Pooled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Investments Priced Using Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 17.2 | 86.1 |
Investments Priced Using Net Asset Value | Common Pooled Fixed Income Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4.2 | |
Investments Priced Using Net Asset Value | Alternative Investment Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 17.2 | $ 81.9 |
Retirement Benefits - Estimated
Retirement Benefits - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2019USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | $ 53.9 |
2021 | 53.2 |
2022 | 54.8 |
2023 | 55.3 |
2024 | 55.2 |
2025-2028 | 270.3 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2020 | 2.2 |
2021 | 2.1 |
2022 | 2 |
2023 | 1.9 |
2024 | 1.8 |
2025-2028 | $ 7.5 |
Debt - Summary of Long-term Deb
Debt - Summary of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 28, 2018 | Feb. 02, 2018 | Aug. 31, 2017 | Mar. 31, 2016 | Nov. 30, 2010 |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,506 | $ 1,737.1 | |||||
Term loan, current portion | 34.4 | ||||||
Notes 2022 Term | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 298.8 | $ 298.3 | |||||
Senior notes, stated percentage | 3.625% | 3.625% | 3.625% | ||||
Notes 2026 Term | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 395.7 | $ 395.1 | |||||
Senior notes, stated percentage | 3.35% | 3.35% | 3.35% | ||||
Notes 2027 Term | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 295.9 | $ 295.4 | |||||
Senior notes, stated percentage | 3.15% | 3.15% | 3.15% | ||||
Notes 2028 Term | Senior Notes | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 444 | $ 443.3 | |||||
Senior notes, stated percentage | 3.50% | 3.50% | 3.50% | 3.50% | |||
Notes 2023 Term | Term Loan | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 71.6 | $ 305 | |||||
Term loan, current portion | $ 34.4 | $ 25 |
Debt - Other Information Relate
Debt - Other Information Related to Short-term Debt (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
Interest rate at year end | 2.59% | 3.21% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Feb. 28, 2018 | Jan. 31, 2018 | Sep. 30, 2017 | Aug. 31, 2017 | Mar. 31, 2016 | Nov. 30, 2010 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 02, 2018 | |
Debt Instrument [Line Items] | |||||||||||
Issuance of long-term debt | $ 0 | $ 947,500,000 | $ 297,600,000 | ||||||||
Repayment of term loan | 225,000,000 | 168,800,000 | 300,000,000 | ||||||||
Loss on extinguishment of debt | 0 | 0 | 10,100,000 | ||||||||
Short-term debt | $ 65,400,000 | 65,400,000 | 56,100,000 | ||||||||
Commercial paper | 26,000,000 | 26,000,000 | 26,000,000 | ||||||||
Term loan, current portion | 34,400,000 | 34,400,000 | |||||||||
Borrowings to support international operations in China | 5,000,000 | 5,000,000 | 5,100,000 | ||||||||
Interest and fees paid | 62,800,000 | 59,500,000 | 47,900,000 | ||||||||
Other LOC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit | 23,000,000 | 23,000,000 | 54,800,000 | ||||||||
Letters of Credit | Other LOC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit | $ 15,700,000 | $ 15,700,000 | $ 20,300,000 | ||||||||
Notes 2022 Term Interest Rate Lock | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Loss on forward interest rate lock, recorded in accumulated other comprehensive loss | $ 1,600,000 | ||||||||||
Senior Notes | Notes 2028 Term | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 450,000,000 | $ 450,000,000 | |||||||||
Interest rate, stated percentage | 3.50% | 3.50% | 3.50% | 3.50% | 3.50% | ||||||
Issuance of long-term debt | $ 442,600,000 | ||||||||||
Senior Notes | Notes 2027 Term | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 300,000,000 | ||||||||||
Interest rate, stated percentage | 3.15% | 3.15% | 3.15% | 3.15% | |||||||
Proceeds from debt, net of issuance costs | $ 294,600,000 | ||||||||||
Senior Notes | Notes 2018 Term | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate, stated percentage | 5.95% | ||||||||||
Debt instrument, repurchase amount | $ 300,000,000 | ||||||||||
Loss on extinguishment of debt | $ 10,100,000 | ||||||||||
Make whole payment for extinguishment of debt | $ 9,900,000 | ||||||||||
Senior Notes | Notes 2026 Term | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 400,000,000 | ||||||||||
Interest rate, stated percentage | 3.35% | 3.35% | 3.35% | 3.35% | |||||||
Proceeds from issuance of long-term debt | $ 393,400,000 | ||||||||||
Senior Notes | Notes 2022 Term | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 300,000,000 | ||||||||||
Interest rate, stated percentage | 3.625% | 3.625% | 3.625% | 3.625% | |||||||
Term Loan | Term Loan Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 500,000,000 | $ 500,000,000 | |||||||||
Amortization percentage, equal quarterly installments, year one | 5.00% | ||||||||||
Amortization percentage, equal quarterly installments, year two | 5.00% | ||||||||||
Amortization percentage, equal quarterly installments, year three | 7.50% | ||||||||||
Amortization percentage, equal quarterly installments, year four | 10.00% | ||||||||||
Amortization percentage, equal quarterly installments, year five | 10.00% | ||||||||||
Repayment of term loan | $ 200,000,000 | ||||||||||
Line of credit facility covenants maximum debt to capitalization percentage | 65.00% | ||||||||||
Term loan, current portion | $ 34,400,000 | $ 34,400,000 | $ 25,000,000 | ||||||||
Line of Credit | Term Loan Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | $ 500,000,000 | ||||||||||
Line of Credit | Revolving Credit Facility | Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit facility covenants maximum debt to capitalization percentage | 65.00% | ||||||||||
Line of credit, maximum borrowing capacity | $ 750,000,000 | ||||||||||
Line of credit facility, accordion feature, higher borrowing capacity option | $ 1,250,000,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income before income taxes: | |||
United States | $ 406.7 | $ 360.8 | $ 354.7 |
International | 113.8 | 106.2 | 88.4 |
Income before income taxes | 520.5 | 467 | 443.1 |
Provision for income taxes — current: | |||
Federal | 65 | 12.3 | 164.1 |
State | 16.6 | 21.8 | 15.3 |
International | 25.4 | 17.8 | 28.1 |
Total provision — current | 107 | 51.9 | 207.5 |
Provision for income taxes — deferred: | |||
Federal | 8.6 | 35 | (10.4) |
State | 0.5 | 9.4 | (0.9) |
International | (3) | 4.6 | (3) |
Total provision — deferred | 6.1 | 49 | (14.3) |
TOTAL PROVISION FOR INCOME TAXES | $ 113.1 | $ 100.9 | $ 193.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Tax Credit Carryforward [Line Items] | ||||
Tax Cuts and Jobs Act, provisional income tax expense (benefit) | $ 56.5 | |||
Tax Cuts and Jobs Act, measurement period adjustment income tax benefit | $ 6 | |||
Income tax credits | $ 26.9 | 24.5 | ||
Loss carryforwards | 21.3 | 22.2 | ||
Valuation allowance | 29 | 21.8 | ||
Undistributed earnings of foreign subsidiaries | 250 | |||
Income taxes paid | 91.9 | 106.3 | $ 130.8 | |
Unrecognized tax benefits timing of deductibility unknown | 5.2 | |||
Unrecognized tax benefits, income tax penalties and interest expense | 0.1 | 1.8 | $ 0.5 | |
Unrecognized tax benefits, income tax penalties and interest accrued | 7.1 | $ 7 | ||
Minimum | ||||
Tax Credit Carryforward [Line Items] | ||||
Unrecognized tax benefits that would impact effective tax rate | 33.4 | |||
Decrease in unrecognized tax benefits is reasonably possible, estimated range of change | 5 | |||
Maximum | ||||
Tax Credit Carryforward [Line Items] | ||||
Decrease in unrecognized tax benefits is reasonably possible, estimated range of change | 7 | |||
Federal, State, and Local | ||||
Tax Credit Carryforward [Line Items] | ||||
Loss carryforwards | 20.1 | |||
Tax credit carryforward indefinitely | ||||
Tax Credit Carryforward [Line Items] | ||||
Income tax credits | 15.5 | |||
Loss carryforwards | 7.4 | |||
Carryforward Subject To Expiration | ||||
Tax Credit Carryforward [Line Items] | ||||
Income tax credits | 11.4 | |||
Loss carryforwards | $ 12.7 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Inventories | $ 10.1 | $ 6.2 |
Right-of-use assets | 24.8 | |
Income tax credits | 26.9 | 24.5 |
Accrued liabilities | 37.8 | 35.9 |
Pension | 53.4 | 49.6 |
Post retirement and post employment benefits | 6 | 6.6 |
Stock-based compensation | 9.7 | 13.1 |
Loss Carryforwards | 21.3 | 22.2 |
Miscellaneous other | 11.9 | 8.8 |
Gross deferred tax assets | 201.9 | 166.9 |
Valuation allowance | (29) | (21.8) |
Total deferred tax assets, net of valuation allowance | 172.9 | 145.1 |
Deferred tax liabilities: | ||
Liability on undistributed foreign earnings | (8.6) | (10.9) |
Goodwill and Intangibles | (212.3) | (206.4) |
Lease liabilities | (24.2) | |
Property, plant, and equipment | (48.4) | (41.4) |
Total deferred tax liabilities | (293.5) | (258.7) |
Deferred taxes are reflected in the Consolidated Balance Sheet as follows: | ||
Non-current tax assets (included in Other long-term assets) | 6.2 | 6.4 |
Non-current tax liabilities (included in Other Non-Current Liabilities) | (126.8) | (120) |
TOTAL NET DEFERRED TAX LIABILITY | $ (120.6) | $ (113.6) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 38.9 | $ 29.5 | $ 20.2 |
Additions based on tax positions relating to the current year | 7 | 3.8 | 13.6 |
Reductions based on expiration of statute of limitations | (5.2) | (1.7) | (1.4) |
Additions to tax positions relating to previous years | 1.6 | 7.4 | 1 |
Settlements | (0.4) | (0.1) | (3.9) |
TOTAL UNRECOGNIZED TAX BENEFITS | $ 41.9 | $ 38.9 | $ 29.5 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 35.00% |
State income taxes, net of federal benefit | 2.80% | 4.50% | 1.20% |
Foreign income taxes | (0.70%) | (1.10%) | (3.10%) |
Federal R&D Credit | (1.20%) | (1.00%) | (1.00%) |
TCJA and related | 0 | (0.013) | 0.128 |
Other, net | (0.20%) | (0.50%) | (1.30%) |
CONSOLIDATED EFFECTIVE INCOME TAX RATE | 21.70% | 21.60% | 43.60% |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)derivate | Dec. 31, 2018USD ($)investment | Dec. 31, 2017USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Investments carried at fair value | $ 69.9 | $ 65.5 | |
Purchase of trading securities held-for-investment | 3.2 | 2.7 | |
Proceeds from the sale of trading securities held-for-investment | $ 1.3 | 1.5 | |
Number of foreign exchange contracts held (foreign_exchange_contract) | derivate | 36 | ||
Hedge ineffectiveness with respect to forward exchange cash flow hedges | $ 0 | 0 | $ 0 |
Long-term debt, current portion | 34.4 | ||
Long-term debt, net of unamortized discount and debt issuance costs including short-term portion of long term debt | 1,540.4 | ||
Long-term debt, net of unamortized discount and debt issuance costs | 1,506 | 1,737.1 | |
Long-term debt, fair value | 1,592.2 | $ 1,688.1 | |
Minimum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, notional amount, range | 0.5 | ||
Maximum | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative, notional amount, range | $ 1.6 | ||
Significant Unobservable Inputs (Level 3) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of available-for-sale securities (investment) | investment | 1 | ||
Top Ten Customers | Net Sales | Customer Concentration Risk | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Concentration risk, percentage | 41.00% |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurement - Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | $ 50.7 | $ 51.2 |
Trading securities | 19.2 | 14.3 |
Deferred compensation plan liabilities | (19.2) | (14.3) |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | 1.6 |
Forward exchange contracts-(Liabilities) | (0.3) | 0 |
Fair value, net asset (liability) | 77.9 | 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 | 19.2 | 14.3 |
Deferred compensation plan liabilities | (19.2) | (14.3) |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | 0 |
Forward exchange contracts-(Liabilities) | 0 | 0 |
Fair value, net asset (liability) | 27.5 | 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 | 50.7 | 48.9 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | 1.6 |
Forward exchange contracts-(Liabilities) | (0.3) | 0 |
Fair value, net asset (liability) | 50.4 | 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 | 0 | 2.3 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | 0 |
Forward exchange contracts-(Liabilities) | 0 | 0 |
Fair value, net asset (liability) | 0 | 2.3 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 27.5 | 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 | 27.5 | 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 | 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 | $ 0 | 0 |
Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and Cash Equivalents | 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 | 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 | 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 | $ 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurement - Cash Flow Hedging Relationships (Details) - Forward exchange contract - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss, net of tax | $ (0.8) | $ 1.9 |
Net sales | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain/(Loss) Reclassified into Earnings (Effective Portion), net of tax | 0.2 | 0.1 |
Cost of goods sold | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain/(Loss) Reclassified into Earnings (Effective Portion), net of tax | $ 0.3 | $ 0.2 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||||
Pre-tax restructuring costs | $ 32 | $ 12 | $ 20.3 | ||
Settlement of multi-employer pension plan | $ 10 | ||||
Total environmental liabilities | $ 8 | 8 | $ 8.5 | ||
Withdrawal from Multiemployer Defined Benefit Plan | |||||
Loss Contingencies [Line Items] | |||||
Pre-tax restructuring costs | $ 12.5 | $ 8.5 |
Capital Stock - Common Stock Ou
Capital Stock - Common Stock Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Common Stock, Shares, Outstanding [Roll Forward] | |||
Common stock, shares outstanding, beginning of period (shares) | 54,715,188 | ||
Common stock, shares outstanding, end of period (shares) | 54,514,172 | 54,715,188 | |
Common Stock | |||
Common Stock, Shares, Outstanding [Roll Forward] | |||
Common stock, shares outstanding, beginning of period (shares) | 54,715,000 | 54,882,000 | 55,532,000 |
Exercise of stock options/stock appreciation rights (shares) | 84,000 | 66,000 | 53,000 |
Director compensation arrangements, net (shares) | 10,000 | 11,000 | 10,000 |
Restricted/performance shares activity, net of forfeitures (shares) | 39,000 | 165,000 | 89,000 |
Acquisition/surrender of shares (shares) | (334,000) | (409,000) | (802,000) |
Common stock, shares outstanding, end of period (shares) | 54,514,000 | 54,715,000 | 54,882,000 |
Capital Stock - Reserved Common
Capital Stock - Reserved Common Stock (Details) - Common Stock shares in Thousands | Dec. 31, 2019shares |
Class of Stock [Line Items] | |
Future grant of stock-based compensation (in shares) | 2,333 |
Shares reserved under other equity compensation plans (in shares) | 152 |
TOTAL (in shares) | 2,485 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | ||||
Feb. 29, 2020 | May 31, 2019 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum number of shares authorized (shares) | 9,700,000 | |||||
Pre-tax stock-based compensation cost | $ 16.4 | $ 24.2 | $ 22.3 | |||
Income tax benefits | 2.2 | 5.3 | 5.4 | |||
Net tax windfall as a result of exercise or vesting of awards | 3.3 | 2.4 | 2.5 | |||
Unrecognized compensation cost related to non-vested awards | 14.2 | |||||
Capitalized to inventory | $ 0.2 | $ 0.2 | $ 0.3 | |||
Shares issued to non-employee directors (shares) | 8,216 | 9,376 | 8,480 | |||
Restricted Stock Units RSU | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares vested (shares) | 84,000 | |||||
Vested in period total fair value | $ 8.9 | $ 8.6 | $ 6.6 | |||
Shares granted (USD per share) | $ 127.89 | $ 108.74 | $ 123.39 | |||
Shares granted (shares) | 18,000 | |||||
Restricted Stock Awards, Market Conditions | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting percentage | 100.00% | |||||
Shares vested (shares) | 19,500 | |||||
Vested in period total fair value | $ 2.9 | |||||
Award performance period | 3 years | |||||
Stock Appreciation Rights SARS | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (USD per share) | $ 129.28 | |||||
Award vesting period | 3 years | |||||
Award, expiration period | 10 years | |||||
SARS exercised intrinsic value | $ 10.1 | $ 17.8 | $ 14.1 | $ 10.1 | ||
Shares granted (shares) | 40,000 | |||||
Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (USD per share) | $ 98.80 | |||||
Shares outstanding (shares) | 60,008 | |||||
Performance Shares - Market Condition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (USD per share) | $ 142.89 | |||||
Shares granted (shares) | 24,675 | |||||
Award performance period | 3 years | |||||
Performance Shares - Market Condition | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance based criteria plan payout percentage, market condition | 0.00% | |||||
Performance Shares - Market Condition | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance based criteria plan payout percentage, market condition | 200.00% | |||||
Performance Shares - Performance Condition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares granted (shares) | 24,675 | |||||
Award performance period | 3 years | |||||
Performance share payout at target | 100.00% | |||||
Performance Shares - Performance Condition | Minimum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance based criteria plan payout percentage | 0.00% | |||||
Performance Shares - Performance Condition | Maximum | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance based criteria plan payout percentage | 250.00% | |||||
Performance Shares - Performance Condition | December 2015 Grant | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares vested (shares) | 47,693 | |||||
Vested in period total fair value | $ 6.2 | |||||
Market based criteria, actual payout percentage | 160.00% | |||||
Selling and administrative | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Pre-tax stock-based compensation cost | $ 15.4 | $ 23.4 | $ 21.1 | |||
Cost of goods sold | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Pre-tax stock-based compensation cost | $ 1 | $ 0.8 | $ 1.2 | |||
Subsequent Event | Performance Shares - Market Condition | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vested in period total fair value | $ 2.5 | |||||
Subsequent Event | Performance Shares - Market Condition | December 2016 Grant | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Shares vested (shares) | 17,000 | |||||
Market based criteria, actual payout percentage | 72.00% |
Stock-Based Compensation - Valu
Stock-Based Compensation - Valuation Assumptions (Details) - Restricted Stock Awards, Market Conditions | 12 Months Ended |
Dec. 31, 2017$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Price | $ 127.51 |
Expected Volatility | 24.70% |
Risk Free Interest Rate | 1.90% |
Expected Term | 3 years |
Weighted Avg. Grant Date Fair Value (USD per share) | $ 119.88 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Option Activity (Details) - Restricted Stock Issued to Non-employee Directors - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
OUTSTANDING AT DECEMBER 31, 2018 (shares) | 284 | ||
Shares granted (shares) | 18 | ||
Shares vested (shares) | (84) | ||
Shares forfeited (shares) | (20) | ||
OUTSTANDING AT DECEMBER 31, 2019 (shares) | 198 | 284 | |
Weighted Average Exercise Price (USD per share) | |||
OUTSTANDING AT DECEMBER 31, 2018 (USD per share) | $ 108.40 | ||
Shares granted (USD per share) | 127.89 | $ 108.74 | $ 123.39 |
Shares vested (USD per share) | 105.70 | ||
Shares forfeited (USD per share) | 110.71 | ||
OUTSTANDING AT DECEMBER 31, 2019 (USD per Share) | $ 110.89 | $ 108.40 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Appreciation Rights (Details) - Stock Appreciation Rights SARS $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Number of Rights | |
OUTSTANDING AT DECEMBER 31, 2018 (shares) | shares | 2,111 |
Shares granted (shares) | shares | 40 |
Exercised (shares) | shares | (474) |
Forfeited (shares) | shares | (93) |
Canceled (shares) | shares | (12) |
OUTSTANDING AT DECEMBER 31, 2019 (shares) | shares | 1,572 |
EXERCISABLE AT DECEMBER 31, 2019 (shares) | shares | 1,198 |
Weighted Average Exercise Price (USD per share) | |
OUTSTANDING AT DECEMBER 31, 2018 (USD per share) | $ / shares | $ 107.01 |
Granted (USD per share) | $ / shares | 129.28 |
Exercised (USD per share) | $ / shares | 94.72 |
Forfeited (USD per share) | $ / shares | 115.63 |
Canceled (USD per share) | $ / shares | 128.32 |
OUTSTANDING AT DECEMBER 31, 2019 (USD per Share) | $ / shares | 110.66 |
EXCERCISABLE AT DECEMBER 31, 2019 (USD per share) | $ / shares | $ 109.01 |
Weighted average remaining contractual term, outstanding | 6 years 9 months 18 days |
Weighted average remaining contractual term, exercisable | 6 years 2 months 12 days |
Aggregate intrinsic value, outstanding | $ | $ 58,410 |
Aggregate intrinsic value, exercisable | $ | $ 46,497 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Performance Shares - Market Condition | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share Price | $ 127.51 | ||
Expected Dividend Yield | 2.40% | ||
Expected Volatility | 24.70% | ||
Risk Free Interest Rate | 1.90% | ||
Expected Term | 3 years | ||
Granted (USD per share) | $ 142.89 | ||
Stock Appreciation Rights SARS | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Dividend Yield | 2.70% | 2.90% | 2.60% |
Expected Volatility | 22.70% | 21.70% | 18.00% |
Risk Free Interest Rate | 1.80% | 2.80% | 2.20% |
Expected Term | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Weighted Avg. Grant Date Fair Value of 1 SAR | $ 21.25 | $ 18.23 | $ 17.45 |
Granted (USD per share) | $ 129.28 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares Granted During the Period (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (shares) | 60,008 | |
Granted (USD per share) | $ 98.80 | |
2018 Grant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Based Criteria Plan Payout Percentage, Over/Under | 20.00% | |
2018 Grant | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (shares) | 51,062 | |
Granted (USD per share) | $ 98.80 | |
2018 Grant | Minimum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 0.00% | |
2018 Grant | Maximum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 200.00% | |
2017 Grant | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (shares) | 19,389 | |
Granted (USD per share) | $ 118.55 | |
2017 Grant | Minimum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 0.00% | |
2017 Grant | Maximum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 250.00% | |
2016 Grant | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (shares) | 23,276 | |
Granted (USD per share) | $ 105.48 | |
2016 Grant | Minimum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 0.00% | |
2016 Grant | Maximum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 250.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||||||||||
NET INCOME ATTRIBUTABLE TO HUBBELL | $ 101.9 | $ 130.7 | $ 96 | $ 72.3 | $ 88 | $ 113.6 | $ 100.3 | $ 58.3 | $ 400.9 | $ 360.2 | $ 243.1 |
Less: Earnings allocated to participating securities | (1.5) | (1.3) | (0.8) | ||||||||
Net income available to common shareholders | $ 399.4 | $ 358.9 | $ 242.3 | ||||||||
Average number of common shares outstanding (shares) | 54.4 | 54.6 | 54.8 | ||||||||
Potential dilutive shares (shares) | 0.3 | 0.3 | 0.3 | ||||||||
Average number of diluted shares outstanding (shares) | 54.7 | 54.9 | 55.1 | ||||||||
Basic (USD per share) | $ 1.87 | $ 2.40 | $ 1.76 | $ 1.32 | $ 1.61 | $ 2.07 | $ 1.83 | $ 1.06 | $ 7.35 | $ 6.57 | $ 4.42 |
Diluted (USD per share) | $ 1.85 | $ 2.38 | $ 1.75 | $ 1.32 | $ 1.60 | $ 2.06 | $ 1.82 | $ 1.05 | $ 7.31 | $ 6.54 | $ 4.39 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | $ 1,798.9 | $ 1,798.9 | ||
Other comprehensive income (loss) before Reclassifications | (17.8) | $ (23) | $ 24.4 | |
Amounts reclassified from accumulated other comprehensive loss | 0.6 | 7.1 | 8.3 | |
Other comprehensive income (loss) | (17.2) | (15.9) | 32.7 | |
Reclassification of stranded tax effects | 30 | (30) | ||
End of period | 1,960.5 | 1,798.9 | ||
Cash Flow Hedge (Loss) Gain | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | 0.8 | 0.8 | (0.8) | 0 |
Other comprehensive income (loss) before Reclassifications | (0.8) | 1.9 | (1.7) | |
Amounts reclassified from accumulated other comprehensive loss | (0.5) | (0.3) | 0.9 | |
Other comprehensive income (loss) | (1.3) | 1.6 | (0.8) | |
Reclassification of stranded tax effects | 0 | |||
End of period | (0.5) | 0.8 | (0.8) | |
Unrealized Gain (Loss) on Available-for-Sale Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | (2) | (2) | (0.6) | (1.2) |
Other comprehensive income (loss) before Reclassifications | 0.8 | (1.4) | 0.6 | |
Amounts reclassified from accumulated other comprehensive loss | 1.8 | 0 | 0 | |
Other comprehensive income (loss) | 2.6 | (1.4) | 0.6 | |
Reclassification of stranded tax effects | 0 | |||
End of period | 0.6 | (2) | (0.6) | |
Pension and Post Retirement Benefit Plan Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | (158.7) | (158.7) | (176.5) | (180.5) |
Other comprehensive income (loss) before Reclassifications | (21.5) | 10.4 | (3.4) | |
Amounts reclassified from accumulated other comprehensive loss | 7 | 7.4 | 7.4 | |
Other comprehensive income (loss) | (14.5) | 17.8 | 4 | |
Reclassification of stranded tax effects | (30) | |||
End of period | (203.2) | (158.7) | (176.5) | |
Cumulative Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | (125.8) | (125.8) | (91.9) | (120.8) |
Other comprehensive income (loss) before Reclassifications | 3.7 | (33.9) | 28.9 | |
Amounts reclassified from accumulated other comprehensive loss | (7.7) | 0 | 0 | |
Other comprehensive income (loss) | (4) | (33.9) | 28.9 | |
Reclassification of stranded tax effects | 0 | |||
End of period | (129.8) | (125.8) | (91.9) | |
AOCI Attributable to Parent | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning of period | $ (285.7) | (285.7) | (269.8) | (302.5) |
Other comprehensive income (loss) | (17.2) | (15.9) | 32.7 | |
Reclassification of stranded tax effects | (30) | |||
End of period | $ (332.9) | $ (285.7) | $ (269.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net sales | $ 1,103.3 | $ 1,204 | $ 1,196.4 | $ 1,087.3 | $ 1,144.1 | $ 1,179.7 | $ 1,166.7 | $ 991.2 | $ 4,591 | $ 4,481.7 | $ 3,668.8 |
Cost of goods sold | 777.3 | 842 | 839 | 780 | 823.5 | 830.7 | 818.8 | 708.3 | 3,238.3 | 3,181.3 | 2,513.7 |
Total before tax | 520.5 | 467 | 443.1 | ||||||||
Other expense, net | (21.4) | (17.6) | (21.6) | ||||||||
Gain on disposition of business | 21.7 | 0 | 0 | ||||||||
Tax (expense) benefit | (113.1) | (100.9) | (193.2) | ||||||||
Net income, gain (loss) net of tax | $ 103.1 | $ 132.6 | $ 97.9 | $ 73.8 | $ 89.2 | $ 114.7 | $ 102.4 | $ 59.8 | 407.4 | 366.1 | $ 249.9 |
Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net income, gain (loss) net of tax | (0.6) | (7.1) | |||||||||
Cash flow hedges gain (loss) | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net sales | 0.3 | 0.1 | |||||||||
Cost of goods sold | 0.4 | 0.3 | |||||||||
Total before tax | 0.7 | 0.4 | |||||||||
Tax (expense) benefit | (0.2) | (0.1) | |||||||||
Net income, gain (loss) net of tax | 0.5 | 0.3 | |||||||||
Amortization of defined benefit pension and post retirement benefit items | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | (9.3) | (9.8) | |||||||||
Tax (expense) benefit | 2.3 | 2.4 | |||||||||
Net income, gain (loss) net of tax | (7) | (7.4) | |||||||||
Prior-service costs | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | 0.7 | 0.9 | |||||||||
Actuarial gains/(losses) | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | (9.7) | (10.7) | |||||||||
Settlement and curtailment losses | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | (0.3) | 0 | |||||||||
Reclassification of gains (losses) on available-for-sale securities | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Other expense, net | (1.8) | 0 | |||||||||
Tax (expense) benefit | 0 | 0 | |||||||||
Net income, gain (loss) net of tax | (1.8) | 0 | |||||||||
Reclassification of currency translation gain | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain on disposition of business | 7.7 | 0 | |||||||||
Tax (expense) benefit | 0 | 0 | |||||||||
Net income, gain (loss) net of tax | $ 7.7 | $ 0 |
Industry Segments and Geograp_3
Industry Segments and Geographic Area Information - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019USD ($)group | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Concentration Risk [Line Items] | |||
Export sales from United States | $ | $ 262.7 | $ 261.9 | $ 217.2 |
Net Sales Total | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 9.00% | 10.00% | 11.00% |
Long-lived assets Total | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 8.00% | 11.00% |
United Kingdom | Net Sales Total | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 29.00% | ||
United Kingdom | Long-lived assets Total | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 31.00% | ||
Spain | Long-lived assets Total | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21.00% | ||
Canada | Net Sales Total | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 29.00% | ||
Canada | Long-lived assets Total | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 16.00% | ||
Electrical | |||
Concentration Risk [Line Items] | |||
Number of business groups | group | 3 |
Industry Segments and Geograp_4
Industry Segments and Geographic Area Information - Industry Segments Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Sales: | |||||||||||
Net sales | $ 1,103.3 | $ 1,204 | $ 1,196.4 | $ 1,087.3 | $ 1,144.1 | $ 1,179.7 | $ 1,166.7 | $ 991.2 | $ 4,591 | $ 4,481.7 | $ 3,668.8 |
Operating Income: | |||||||||||
Operating Income | 596.6 | 556.9 | 518.8 | ||||||||
Gain on disposition of business | 21.7 | 0 | 0 | ||||||||
Multi-employer pension charge | (8.5) | 0 | 0 | ||||||||
Interest expense | (69.4) | (72.4) | (44.9) | ||||||||
Loss on extinguishment of debt | 0 | 0 | 10.1 | ||||||||
Investment income and other expense, net | (19.9) | (17.5) | (20.7) | ||||||||
Income before income taxes | 520.5 | 467 | 443.1 | ||||||||
Assets: | |||||||||||
Assets | 4,903 | 4,872.1 | 4,903 | 4,872.1 | 3,720.6 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 93.9 | 96.2 | 79.7 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 151 | 148.4 | 98.2 | ||||||||
Electrical | |||||||||||
Net Sales: | |||||||||||
Net sales | 2,625.7 | 2,660.6 | 2,532.8 | ||||||||
Power | |||||||||||
Net Sales: | |||||||||||
Net sales | 1,965.3 | 1,821.1 | 1,136 | ||||||||
Operating Segments | Electrical | |||||||||||
Net Sales: | |||||||||||
Net sales | 2,625.7 | 2,660.6 | 2,532.8 | ||||||||
Operating Income: | |||||||||||
Operating Income | 320.1 | 320.8 | 294 | ||||||||
Assets: | |||||||||||
Assets | 2,197.8 | 2,228.5 | 2,197.8 | 2,228.5 | 2,344.7 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 45.8 | 53 | 48 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 65 | 61.4 | 64.7 | ||||||||
Operating Segments | Power | |||||||||||
Net Sales: | |||||||||||
Net sales | 1,965.3 | 1,821.1 | 1,136 | ||||||||
Operating Income: | |||||||||||
Operating Income | 276.5 | 236.1 | 224.8 | ||||||||
Assets: | |||||||||||
Assets | 2,401.3 | 2,395.8 | 2,401.3 | 2,395.8 | 1,102.2 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 45.4 | 36.8 | 29 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 86 | 87 | 33.5 | ||||||||
General Corporate | |||||||||||
Assets: | |||||||||||
Assets | $ 303.9 | $ 247.8 | 303.9 | 247.8 | 273.7 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | $ 2.7 | $ 6.4 | $ 2.7 |
Industry Segments and Geograp_5
Industry Segments and Geographic Area Information - Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Net Sales: | |||||||||||
Net sales | $ 1,103.3 | $ 1,204 | $ 1,196.4 | $ 1,087.3 | $ 1,144.1 | $ 1,179.7 | $ 1,166.7 | $ 991.2 | $ 4,591 | $ 4,481.7 | $ 3,668.8 |
Operating Income: | |||||||||||
Operating Income | 596.6 | 556.9 | 518.8 | ||||||||
Long-lived Assets: | |||||||||||
Long-Lived Assets | 3,322.6 | 3,217.4 | 3,322.6 | 3,217.4 | 2,110.2 | ||||||
United States | |||||||||||
Net Sales: | |||||||||||
Net sales | 4,190.5 | 4,040.6 | 3,280.9 | ||||||||
Operating Income: | |||||||||||
Operating Income | 529.7 | 478 | 435.8 | ||||||||
Long-lived Assets: | |||||||||||
Long-Lived Assets | 2,950.4 | 2,972.4 | 2,950.4 | 2,972.4 | 1,877.4 | ||||||
International | |||||||||||
Net Sales: | |||||||||||
Net sales | 400.5 | 441.1 | 387.9 | ||||||||
Operating Income: | |||||||||||
Operating Income | 66.9 | 78.9 | 83 | ||||||||
Long-lived Assets: | |||||||||||
Long-Lived Assets | $ 372.2 | $ 245 | $ 372.2 | $ 245 | $ 232.8 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 92.7 | $ 14 |
Provision | 15.8 | 12 |
Expenditures/other | (26.4) | (22.7) |
Acquisitions | 89.4 | |
Ending balance | $ 82.1 | $ 92.7 |
Restructuring Costs - By Segmen
Restructuring Costs - By Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | $ 32 | $ 12 | $ 20.3 |
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 22.3 | 8.2 | 13.7 |
Selling & administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 9.7 | 3.8 | 6.6 |
Electrical | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 20.5 | 8.3 | 16.9 |
Electrical | Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 12.5 | 4.9 | 11.5 |
Electrical | Selling & administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 8 | 3.4 | 5.4 |
Power | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 11.5 | 3.7 | 3.4 |
Power | Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 9.8 | 3.3 | 2.2 |
Power | Selling & administrative expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | $ 1.7 | $ 0.4 | $ 1.2 |
Restructuring Costs - Reserve (
Restructuring Costs - Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | $ 21 | ||
Pre-tax Restructuring Costs | 32 | $ 12 | $ 20.3 |
Utilization and Foreign Exchange | (35.6) | ||
Ending accrued restructuring balance | 17.4 | 21 | |
2019 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 29.1 | ||
Utilization and Foreign Exchange | (20.7) | ||
Ending accrued restructuring balance | 8.4 | 0 | |
2018 and Prior Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 21 | ||
Pre-tax Restructuring Costs | 2.9 | ||
Utilization and Foreign Exchange | (14.9) | ||
Ending accrued restructuring balance | 9 | 21 | |
Severance | 2019 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 16.6 | ||
Utilization and Foreign Exchange | (8.3) | ||
Ending accrued restructuring balance | 8.3 | 0 | |
Severance | 2018 and Prior Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 7.7 | ||
Pre-tax Restructuring Costs | 0.3 | ||
Utilization and Foreign Exchange | (5) | ||
Ending accrued restructuring balance | 3 | 7.7 | |
Asset write-downs | 2019 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 4.8 | ||
Utilization and Foreign Exchange | (4.8) | ||
Ending accrued restructuring balance | 0 | 0 | |
Asset write-downs | 2018 and Prior Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 0.3 | ||
Utilization and Foreign Exchange | (0.3) | ||
Ending accrued restructuring balance | 0 | 0 | |
Facility closure and other costs | 2019 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 7.7 | ||
Utilization and Foreign Exchange | (7.6) | ||
Ending accrued restructuring balance | 0.1 | 0 | |
Facility closure and other costs | 2018 and Prior Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 13.3 | ||
Pre-tax Restructuring Costs | 2.3 | ||
Utilization and Foreign Exchange | (9.6) | ||
Ending accrued restructuring balance | $ 6 | $ 13.3 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | $ 79.1 | ||
Cost incurred to date | 32 | $ 12 | $ 20.3 |
Remaining costs | 14.8 | ||
2019 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 42.2 | ||
Cost incurred to date | 29.1 | 0 | 0 |
Remaining costs | 13.1 | ||
2018 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 17.3 | ||
Cost incurred to date | 2.9 | 12.7 | 0 |
Remaining costs | 1.7 | ||
2017 and Prior Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 19.6 | ||
Cost incurred to date | 0 | (0.7) | 20.3 |
Remaining costs | 0 | ||
Electrical | 2019 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 21.2 | ||
Cost incurred to date | 18.3 | 0 | 0 |
Remaining costs | 2.9 | ||
Electrical | 2018 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 12.5 | ||
Cost incurred to date | 2.2 | 8.6 | 0 |
Remaining costs | 1.7 | ||
Electrical | 2017 and Prior Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 16.6 | ||
Cost incurred to date | 0 | (0.3) | 16.9 |
Remaining costs | 0 | ||
Power | 2019 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 21 | ||
Cost incurred to date | 10.8 | 0 | 0 |
Remaining costs | 10.2 | ||
Power | 2018 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 4.8 | ||
Cost incurred to date | 0.7 | 4.1 | 0 |
Remaining costs | 0 | ||
Power | 2017 and Prior Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 3 | ||
Cost incurred to date | 0 | $ (0.4) | $ 3.4 |
Remaining costs | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Term of leases | 10 years | ||
Options to extend, term | 5 years | ||
Operating lease expense | $ 39.1 | ||
Cash outflow for operating leases | 36.4 | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 22.1 | ||
Operating lease, weighted average remaining lease term | 4 years | ||
Operating lease, weighted average discount rate | 3.50% | ||
Operating leases, rent expense | $ 44.8 | $ 30.5 | |
Operating leases minimum annual rentals, 2019 | 23.5 | ||
Operating leases minimum annual rentals, 2020 | 21 | ||
Operating leases minimum annual rentals, 2021 | 16.5 | ||
Operating leases minimum annual rentals, 2022 | 13.2 | ||
Operating leases minimum annual rentals, 2023 | 10.5 | ||
Operating leases minimum annual rentals, thereafter | $ 26.5 |
Leases - Amounts Recognized for
Leases - Amounts Recognized for Leases (Details) $ in Millions | Dec. 31, 2019USD ($) |
Leases, Operating [Abstract] | |
Operating lease right-of-use assets | $ 96.8 |
Other accrued liabilities | 29.6 |
Other non-current liabilities | 71.7 |
TOTAL LIABILITIES | $ 101.3 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Dec. 31, 2019USD ($) |
Operating Leases | |
2020 | $ 32.7 |
2021 | 24.6 |
2022 | 15.8 |
2023 | 13.2 |
2024 | 8.4 |
Thereafter | 15.9 |
Total Payments | 110.6 |
Imputed Interest | (9.3) |
Total | $ 101.3 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 1,103.3 | $ 1,204 | $ 1,196.4 | $ 1,087.3 | $ 1,144.1 | $ 1,179.7 | $ 1,166.7 | $ 991.2 | $ 4,591 | $ 4,481.7 | $ 3,668.8 |
Cost of goods sold | 777.3 | 842 | 839 | 780 | 823.5 | 830.7 | 818.8 | 708.3 | 3,238.3 | 3,181.3 | 2,513.7 |
Gross profit | 326 | 362 | 357.4 | 307.3 | 320.6 | 349 | 347.9 | 282.9 | 1,352.7 | 1,300.4 | 1,155.1 |
Selling & administrative expenses | 190.1 | 189.1 | 190.5 | 186.4 | 184 | 185.2 | 191 | 183.3 | 756.1 | 743.5 | 636.3 |
Net income | 103.1 | 132.6 | 97.9 | 73.8 | 89.2 | 114.7 | 102.4 | 59.8 | 407.4 | 366.1 | 249.9 |
Net income attributable to Hubbell | $ 101.9 | $ 130.7 | $ 96 | $ 72.3 | $ 88 | $ 113.6 | $ 100.3 | $ 58.3 | $ 400.9 | $ 360.2 | $ 243.1 |
Earning Per Share - Basic (USD per share) | $ 1.87 | $ 2.40 | $ 1.76 | $ 1.32 | $ 1.61 | $ 2.07 | $ 1.83 | $ 1.06 | $ 7.35 | $ 6.57 | $ 4.42 |
Earning Per Share - Diluted (USD per share) | $ 1.85 | $ 2.38 | $ 1.75 | $ 1.32 | $ 1.60 | $ 2.06 | $ 1.82 | $ 1.05 | $ 7.31 | $ 6.54 | $ 4.39 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowances for doubtful accounts receivable: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 4.8 | $ 4.6 | $ 4.7 |
Additions / (Reversals) Charged to Costs and Expenses | 3.4 | 0 | 1.5 |
Deductions | (0.5) | (1.4) | (3.5) |
Acquisitions | 0 | 1.6 | 1.9 |
Balance at End of Year | 7.7 | 4.8 | 4.6 |
Allowance for credit memos, returns and cash discounts: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 35.1 | 50.5 | 45.9 |
Additions / (Reversals) Charged to Costs and Expenses | 299.1 | 278 | 260.8 |
Deductions | (298.2) | (293.5) | (256.3) |
Acquisitions | 0 | 0.1 | 0.1 |
Balance at End of Year | 36 | 35.1 | 50.5 |
Valuation allowance on deferred tax assets: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 21.8 | 19.4 | 22.6 |
Additions / (Reversals) Charged to Costs and Expenses | 7.2 | 0.7 | (3.2) |
Deductions | 0 | 0 | 0 |
Acquisitions | 0 | 1.7 | 0 |
Balance at End of Year | $ 29 | $ 21.8 | $ 19.4 |
Uncategorized Items - hubb-2019
Label | Element | Value |
Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 600,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 600,000 |