Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2021 | Oct. 22, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 1-2958 | |
Entity Registrant Name | HUBBELL INC | |
Entity Incorporation, State or Country Code | CT | |
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 | |
Entity Address, Postal Zip Code | 06484 | |
City Area Code | (475) | |
Local Phone Number | 882-4000 | |
Title of 12(b) Security | Common Stock - par value $0.01 per share | |
Trading Symbol | HUBB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 54,410,883 | |
Amendment Flag | false | |
Entity Central Index Key | 0000048898 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,213.6 | $ 1,108.6 | $ 3,483.8 | $ 3,148.1 |
Cost of goods sold | 883.3 | 779 | 2,532.9 | 2,224.5 |
Gross profit | 330.3 | 329.6 | 950.9 | 923.6 |
Selling & administrative expenses | 175 | 166.7 | 525.3 | 510.4 |
Operating income | 155.3 | 162.9 | 425.6 | 413.2 |
Interest expense, net | (13.5) | (15) | (41.4) | (45.8) |
Loss on disposition of business | (0.1) | 0 | (6.9) | 0 |
Loss on extinguishment of debt | 0 | 0 | (16.8) | 0 |
Pension charge | 0 | (6.6) | 0 | (6.6) |
Other expense, net | (1.2) | (2.3) | (3.1) | (8.9) |
Total other expense | (14.8) | (23.9) | (68.2) | (61.3) |
Income before income taxes | 140.5 | 139 | 357.4 | 351.9 |
Provision for income taxes | 29.9 | 30.4 | 71.1 | 78.5 |
Net income | 110.6 | 108.6 | 286.3 | 273.4 |
Less: Net income attributable to noncontrolling interest | 2.1 | 1.5 | 4.3 | 3.1 |
Net income attributable to Hubbell Incorporated | $ 108.5 | $ 107.1 | $ 282 | $ 270.3 |
Earnings per share | ||||
Basic (USD per share) | $ 1.99 | $ 1.97 | $ 5.18 | $ 4.97 |
Diluted (USD per share) | 1.98 | 1.96 | 5.14 | 4.95 |
Cash dividends per common share (USD per share) | $ 0.98 | $ 0.91 | $ 2.94 | $ 2.73 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 110.6 | $ 108.6 | $ 286.3 | $ 273.4 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (13.5) | 11.6 | (10.8) | (12.2) |
Defined benefit pension and post-retirement plans, net of taxes of $(0.7) and $5.1 | 2 | (15.7) | 6.1 | (12.2) |
Available-for-sale investments, net of taxes of $0.1 and $0.0 | (0.2) | 0.1 | (0.3) | 0.5 |
Unrealized gain (loss) on cash flow hedges, net of taxes of $(0.2) and $0.2 | 0.8 | (0.4) | 1.1 | 0.5 |
Other comprehensive (loss) income | (10.9) | (4.4) | (3.9) | (23.4) |
Total comprehensive income | 99.7 | 104.2 | 282.4 | 250 |
Less: Comprehensive income attributable to noncontrolling interest | 2.1 | 1.5 | 4.3 | 3.1 |
Comprehensive income attributable to Hubbell Incorporated | $ 97.6 | $ 102.7 | $ 278.1 | $ 246.9 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Defined benefit pension and post-retirement plans, tax | $ (0.7) | $ 5.1 | $ (2.1) | $ 4 |
Available-for-sale investments, tax | 0.1 | 0 | 0.1 | (0.1) |
Unrealized gain (loss) on cash flow hedges, tax | $ (0.2) | $ 0.2 | $ (0.3) | $ (0.1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 257.9 | $ 259.6 |
Short-term investments | 9.9 | 9.3 |
Accounts receivable (net of allowances of $11.6 and $12.5) | 798.3 | 634.7 |
Inventories, net | 700.7 | 607.3 |
Other current assets | 66.4 | 76.7 |
Total Current Assets | 1,833.2 | 1,587.6 |
Property, Plant, and Equipment, net | 521.2 | 519.2 |
Other Assets | ||
Investments | 72.1 | 71.1 |
Goodwill | 1,922.6 | 1,923.3 |
Other intangible assets, net | 738 | 810.6 |
Other long-term assets | 154.6 | 173.3 |
TOTAL ASSETS | 5,241.7 | 5,085.1 |
Current Liabilities | ||
Short-term debt | 128.9 | 153.1 |
Accounts payable | 491.9 | 378 |
Accrued salaries, wages and employee benefits | 81.9 | 91.5 |
Accrued insurance | 77.1 | 71.6 |
Other accrued liabilities | 255.6 | 254 |
Total Current Liabilities | 1,035.4 | 948.2 |
Long-Term Debt | 1,434.9 | 1,436.9 |
Other Non-Current Liabilities | 593.3 | 614.6 |
TOTAL LIABILITIES | 3,063.6 | 2,999.7 |
Hubbell Incorporated Shareholders’ Equity | 2,168.8 | 2,070 |
Noncontrolling interest | 9.3 | 15.4 |
Total Equity | 2,178.1 | 2,085.4 |
TOTAL LIABILITIES AND EQUITY | $ 5,241.7 | $ 5,085.1 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 11.6 | $ 12.5 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 286.3 | $ 273.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 122.6 | 117 |
Deferred income taxes | 5.9 | (4.3) |
Stock-based compensation | 16.5 | 20 |
Provision for bad debt expense | (0.1) | 8.3 |
Loss on disposition of business | 6.9 | 0 |
Loss on extinguishment of debt | 16.8 | 0 |
Pension charge | 0 | 6.6 |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
Increase in accounts receivable, net | (165) | (42.1) |
Decrease (increase) in inventories, net | (97.9) | 45.1 |
Increase in accounts payable | 120.6 | 45 |
Increase (decrease) in current liabilities | 5.3 | (44.8) |
Changes in other assets and liabilities, net | (8) | 27.3 |
Contribution to qualified defined benefit pension plans | (0.1) | (2.8) |
Other, net | (3) | 6.9 |
Net cash provided by operating activities | 306.8 | 455.6 |
Cash Flows from Investing Activities | ||
Capital expenditures | (66.5) | (51.7) |
Proceeds from disposal of business | 8.5 | 0 |
Acquisition of businesses, net of cash acquired | 0.1 | (2) |
Purchases of available-for-sale investments | (10.6) | (14.3) |
Proceeds from available-for-sale investments | 7.2 | 16.5 |
Other, net | 7.8 | 5.1 |
Net cash used in investing activities | (53.5) | (46.4) |
Cash Flows from Financing Activities | ||
Long-term debt borrowings | 298.7 | 225 |
Long-term debt repayments | (300) | (331.3) |
Short-term debt (repayments) borrowings, net | (24.2) | (9) |
Payment of dividends to shareholders | (159.8) | (148.2) |
Payment of dividends to noncontrolling interest | (10.1) | (2.1) |
Repurchase of common stock | (11.2) | (41.3) |
Debt issuance costs | (4.5) | 0 |
Make whole payment for retirement of long-term debt | (16) | 0 |
Other, net | (25.3) | (9.2) |
Net cash used by financing activities | (252.4) | (316.1) |
Effect of exchange rate changes on cash and cash equivalents | (2.6) | (5.9) |
Increase (decrease) in cash and cash equivalents | (1.7) | 87.2 |
Cash and cash equivalents | ||
Beginning of period | 259.6 | 182 |
End of period | $ 257.9 | $ 269.2 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021. Effective January 1, 2021 the Company consolidated the three business groups within its Electrical segment and renamed the segment as Hubbell Electrical Solutions ("Electrical Solutions"). The Electrical Solutions segment unites businesses with similar operating models, products, and go to market strategies under one operating banner and common leadership to drive synergies and long-term growth opportunities. Also effective January 1, 2021, the Company moved its Hubbell Gas Connectors and Accessories business from the Electrical Solutions segment to the Utility Solutions segment to create synergies with the existing gas products already offered within the Utility Solutions segment and to better serve its utility customers. The information provided in the Condensed Consolidated Financial Statements and the related notes reflects the impact of this change for all periods presented. The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2020. Impact of the COVID-19 Pandemic During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has had, and may continue to have, a significant effect on global economic conditions. U.S. Federal, state, local, and foreign governments have reacted to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. and global economies. The extent to which the coronavirus pandemic will continue to affect our business, operations, supply chains, and our financial results will depend on numerous evolving factors that we may not be able to accurately predict and which may cause the actual results to differ from the estimates and assumptions we are required to make in the preparation of financial statements according to GAAP. Recently Adopted Accounting Pronouncements No accounting standards were adopted during the nine months ended September 30, 2021 that had a material impact on the Company's consolidated financial position, results of operations, or cash flows. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are effective for all entities beginning on March 12, 2020 through December 31, 2022. The Company may elect to apply the amendments prospectively through December 31, 2022. The Company has not adopted this ASU as of September 30, 2021. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions primarily in the Utility Solutions segment recognized upon delivery of the product at the destination. Revenue from service contracts and post-shipment performance obligations are approximately three percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the Utility Solutions 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 Solutions 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 Utility Solutions segment, certain businesses offer annual maintenance service contracts that require payment at the beginning of the contract period. These payments are treated as a contract liability and are classified in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Condensed Consolidated Statements of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statements of Income on a straight-line basis over the expected term of the contract. The following table presents disaggregated revenue by business group. Prior period amounts have been reclassified to conform to our organizational changes as described in Note 1 - Basis of Presentation: Three Months Ended September 30, Nine Months Ended September 30, in millions 2021 2020 2021 2020 Net sales Commercial and Industrial $ 434.9 $ 372.9 $ 1,237.0 $ 1,066.4 Heavy Industrial 85.2 75.1 247.3 228.6 Residential and Retail 91.8 103.0 276.7 289.1 Total Electrical Solutions $ 611.9 $ 551.0 $ 1,761.0 $ 1,584.1 Utility T&D Components 435.3 396.9 1,231.5 1,089.3 Utility Communications and Controls 166.4 160.7 491.3 474.7 Total Utility Solutions $ 601.7 $ 557.6 $ 1,722.8 $ 1,564.0 TOTAL $ 1,213.6 $ 1,108.6 $ 3,483.8 $ 3,148.1 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended September 30, Nine Months Ended September 30, in millions 2021 2020 2021 2020 Net sales United States $ 549.7 $ 495.7 $ 1,571.7 $ 1,427.2 International 62.2 55.3 189.3 156.9 Total Electrical Solutions $ 611.9 $ 551.0 $ 1,761.0 $ 1,584.1 United States 571.4 524.9 1,633.1 1,479.3 International 30.3 32.7 89.7 84.7 Total Utility Solutions $ 601.7 $ 557.6 $ 1,722.8 $ 1,564.0 TOTAL $ 1,213.6 $ 1,108.6 $ 3,483.8 $ 3,148.1 Contract Balances Our contract liabilities consist of advance payments for products as well as deferred revenue on service obligations and extended warranties. The current portion of deferred revenue is included in Other accrued liabilities and the non-current portion of deferred revenue is included in Other non-current liabilities in the Condensed Consolidated Balance Sheets. Contract liabilities were $19.3 million as of September 30, 2021 compared to $30.9 million as of December 31, 2020. The $11.6 million decrease in our contract liabilities balance was primarily due to the recognition of $27.2 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2021 and a $1.5 million decline in contract liabilities relating to the disposition of a business, partially offset by a $17.1 million net increase in current year deferrals primarily due to timing of advance payments on certain orders. The Company has an immaterial amount of contract assets relating to performance obligations satisfied prior to payment that is recorded in Other long-term assets in the Condensed Consolidated Balance Sheets. Impairment losses recognized on our receivables and contract assets were immaterial for the three and nine months ended September 30, 2021. Unsatisfied Performance Obligations As of September 30, 2021, the Company had approximately $450 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 Utility Solutions 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 three years. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's reporting segments consist of the Electrical Solutions segment and the Utility Solutions segment. Effective January 1, 2021, the Company moved its Hubbell Gas Connectors and Accessories business, from the Electrical Solutions segment to the Utility Solutions segment, consolidated the former three business groups within its Electrical segment and renamed the segment as Hubbell Electrical Solutions ("Electrical Solutions"). The Hubbell Gas Connectors and Accessories business has been moved to Utility Solutions to create synergies with the existing gas products already offered within the Utility Solutions segment and to better serve its utility customers. Comparable prior period segment results have been re-cast to reflect this change. The consolidation of business groups within the Electrical Solutions segment unites businesses with similar operating models, products, and go to market strategies under one operating banner and common leadership to drive synergies and long-term growth opportunities. The Electrical Solutions 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, 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. The Utility Solutions segment consists of businesses that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electric, water, gas, and telecommunication utility industries. These offerings include advanced metering infrastructure, meter and edge devices, software and infrastructure services, which are primarily sold to the electric, water, and gas utility industries, as well as components and assemblies for the natural gas distribution market. 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, industrial firms, construction and engineering firms. The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2021 2020 2021 2020 2021 2020 Three Months Ended September 30, Electrical Solutions $ 611.9 $ 551.0 $ 72.0 $ 65.9 11.8 % 12.0 % Utility Solutions 601.7 557.6 83.3 97.0 13.8 % 17.4 % TOTAL $ 1,213.6 $ 1,108.6 $ 155.3 $ 162.9 12.8 % 14.7 % Nine Months Ended September 30, Electrical Solutions $ 1,761.0 $ 1,584.1 $ 201.3 $ 171.1 11.4 % 10.8 % Utility Solutions 1,722.8 1,564.0 224.3 242.1 13.0 % 15.5 % TOTAL $ 3,483.8 $ 3,148.1 $ 425.6 $ 413.2 12.2 % 13.1 % |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2021 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories, net | Inventories, net Inventories, net consists of the following (in millions): September 30, 2021 December 31, 2020 Raw material $ 250.2 $ 219.5 Work-in-process 126.2 108.3 Finished goods 411.7 366.8 Subtotal 788.1 694.6 Excess of FIFO over LIFO cost basis (87.4) (87.3) TOTAL $ 700.7 $ 607.3 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Changes in the carrying values of goodwill for the nine months ended September 30, 2021, were as follows (in millions): Segment Electrical Solutions Utility Solutions Total BALANCE DECEMBER 31, 2020 $ 663.9 $ 1,259.4 $ 1,923.3 Prior year acquisitions — 6.9 6.9 Current year dispositions — (1.9) (1.9) Foreign currency translation (1.7) (4.0) (5.7) BALANCE SEPTEMBER 30, 2021 $ 662.2 $ 1,260.4 $ 1,922.6 In June of 2021, the Company completed the sale of the Consumer Analytics Solutions business for $9.8 million. The Consumer Analytics Solutions business was part of Aclara and was previously included in the Utility Solutions segment. Upon disposition, the Consumer Analytics Solutions business had assets of $15.9 million, including definite-lived intangibles of $8.7 million (primarily customer relationships and developed technology), goodwill of $1.9 million and total liabilities of $1.5 million (primarily composed of deferred revenue). As a result of the sale of the Consumer Analytics Solutions business, we recognized a pre-tax loss of $6.9 million that is included in Total other expense in the Condensed Consolidated Statements of Income. The carrying value of other intangible assets included in Other intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions): September 30, 2021 December 31, 2020 Gross Amount Accumulated Gross Amount Accumulated Definite-lived: Patents, tradenames and trademarks $ 212.7 $ (80.7) $ 213.4 $ (73.8) Customer relationships, developed technology and other 940.7 (388.3) 958.0 (340.6) TOTAL DEFINITE-LIVED INTANGIBLES $ 1,153.4 $ (469.0) $ 1,171.4 $ (414.4) Indefinite-lived: Tradenames and other 53.6 — 53.6 — TOTAL OTHER INTANGIBLE ASSETS $ 1,207.0 $ (469.0) $ 1,225.0 $ (414.4) Amortization expense associated with definite-lived intangible assets was $18.7 million and $18.5 million during the three months ended September 30, 2021 and 2020, respectively, and $59.4 million and $56.2 million during the nine months ended September 30, 2021 and 2020, respectively. Future amortization expense associated with these intangible assets is estimated to be $20.1 million for the remainder of 2021, $72.9 million in 2022, $68.2 million in 2023, $63.3 million in 2024, $58.8 million in 2025, and $55.1 million in 2026. 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 76% of the gross value of definite-lived intangible assets follow an accelerated amortization method. |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consists of the following (in millions): September 30, 2021 December 31, 2020 Customer program incentives $ 58.4 $ 40.7 Accrued income taxes 15.2 4.6 Contract liabilities - deferred revenue 19.3 30.9 Customer refund liability 18.7 17.4 Accrued warranties (1) 21.9 28.7 Current operating lease liabilities 29.2 32.1 Other 92.9 99.6 TOTAL $ 255.6 $ 254.0 (1) Refer to Note 21 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information regarding warranties. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 9 Months Ended |
Sep. 30, 2021 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consists of the following (in millions): September 30, 2021 December 31, 2020 Pensions $ 185.9 $ 199.0 Other post-retirement benefits 21.2 21.2 Deferred tax liabilities 143.3 135.3 Accrued warranties long-term (1) 51.8 51.8 Non-current operating lease liabilities 65.7 74.9 Other 125.4 132.4 TOTAL $ 593.3 $ 614.6 (1) Refer to Note 21 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information regarding warranties. |
Total Equity
Total Equity | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Total Equity | Total Equity A summary of changes in total equity for the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020 is provided below (in millions, except per share amounts): Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2020 $ 0.6 $ 4.9 $ 2,393.7 $ (329.2) $ 2,070.0 $ 15.4 Net income — — 173.5 — 173.5 2.2 Other comprehensive (loss) income — — — 7.0 7.0 — Stock-based compensation — 13.4 — — 13.4 — Acquisition/surrender of common shares (1) — (18.5) (13.2) — (31.7) — Cash dividends declared ($0.98 per share) — — (106.7) — (106.7) — Dividends to noncontrolling interest — — — — — (2.4) Directors deferred compensation — 0.2 — — 0.2 — BALANCE AT JUNE 30, 2021 $ 0.6 $ — $ 2,447.3 $ (322.2) $ 2,125.7 $ 15.2 Net income — — 108.5 — 108.5 2.1 Other comprehensive (loss) income — — — (10.9) (10.9) — Stock-based compensation — 3.1 — — 3.1 — Acquisition/surrender of common shares (1) — (3.4) (1.0) — (4.4) — Cash dividends declared ($0.98 per share) — — (53.5) — (53.5) — Dividends to noncontrolling interest — — — — — (8.0) Directors deferred compensation — 0.3 — — 0.3 — BALANCE AT SEPTEMBER 30, 2021 $ 0.6 $ — $ 2,501.3 $ (333.1) $ 2,168.8 $ 9.3 Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2019 $ 0.6 $ — $ 2,279.4 $ (332.9) $ 1,947.1 $ 13.4 Net income — — 163.2 — 163.2 1.6 Other comprehensive (loss) income — — — (19.0) (19.0) — Stock-based compensation — 15.9 — — 15.9 — Acquisition/surrender of common shares (1) — (12.0) (34.1) — (46.1) — Cash dividends declared ($0.91 per share) — — (99.1) — (99.1) — Dividends to noncontrolling interest — — — — — (1.4) Directors deferred compensation — (1.1) — — (1.1) — Cumulative effect from adoption of CECL accounting standard — — (1.0) — (1.0) — BALANCE AT JUNE 30, 2020 $ 0.6 $ 2.8 $ 2,308.4 $ (351.9) $ 1,959.9 $ 13.6 Net income — — 107.1 — 107.1 1.5 Other comprehensive (loss) income — — — (4.4) (4.4) — Stock-based compensation — 4.1 — — 4.1 — Acquisition/surrender of common shares (1) — (0.6) — — (0.6) — Cash dividends declared ($0.91 per share) — — (49.5) — (49.5) — Dividends to noncontrolling interest — — — — — (0.9) Directors deferred compensation — 0.2 — — 0.2 — BALANCE AT SEPTEMBER 30, 2020 $ 0.6 $ 6.5 $ 2,366.0 $ (356.3) $ 2,016.8 $ 14.2 (1) For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against common stock par value, Additional paid-in capital, to the extent available, and Retained earnings. The change in Retained earnings of $14.2 million and $34.1 million in the first nine months of 2021 and 2020, respectively, reflects this accounting treatment. The detailed components of total comprehensive income are presented in the Condensed Consolidated Statements of Comprehensive Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2021 | |
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 nine months ended September 30, 2021 is provided below (in millions): (debit) credit Cash flow hedge (loss) gain Unrealized Pension Cumulative Total BALANCE AT DECEMBER 31, 2020 $ (0.7) $ 1.0 $ (212.0) $ (117.5) $ (329.2) Other comprehensive income (loss) before reclassifications 0.2 (0.3) — (10.8) (10.9) Amounts reclassified from accumulated other comprehensive loss 0.9 — 6.1 — 7.0 Current period other comprehensive income (loss) 1.1 (0.3) 6.1 (10.8) (3.9) BALANCE AT SEPTEMBER 30, 2021 $ 0.4 $ 0.7 $ (205.9) $ (128.3) $ (333.1) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020 is provided below (in millions): Three Months Ended September 30, Nine Months Ended September 30, Details about Accumulated Other 2021 2020 2021 2020 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ — $ — $ (0.1) $ 0.3 Net sales (0.1) 0.2 (0.9) 0.7 Cost of goods sold — — (0.2) — Other expense, net (0.1) 0.2 (1.2) 1.0 Total before tax — (0.1) 0.3 (0.3) Tax benefit (expense) $ (0.1) $ 0.1 $ (0.9) $ 0.7 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs (a) $ — $ 0.1 $ (0.1) $ 0.2 Actuarial gains/(losses) (a) (2.7) (2.4) (8.1) (7.1) Settlement and curtailment losses (a) — (6.6) — (6.6) (2.7) (8.9) (8.2) (13.5) Total before tax 0.7 2.3 2.1 3.4 Tax benefit (expense) $ (2.0) $ (6.6) $ (6.1) $ (10.1) Gain (loss) net of tax Gains (losses) reclassified into earnings $ (2.1) $ (6.5) $ (7.0) $ (9.4) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 - Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Service-based and performance-based restricted stock awards granted by the Company are considered participating securities as these awards contain a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three and nine months ended September 30, 2021 and 2020 (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income attributable to Hubbell Incorporated $ 108.5 $ 107.1 $ 282.0 $ 270.3 Less: Earnings allocated to participating securities (0.3) (0.4) (0.9) (1.0) Net income available to common shareholders $ 108.2 $ 106.7 $ 281.1 $ 269.3 Denominator: Average number of common shares outstanding 54.3 54.2 54.3 54.1 Potential dilutive common shares 0.4 0.3 0.4 0.3 Average number of diluted shares outstanding 54.7 54.5 54.7 54.4 Earnings per share: Basic $ 1.99 $ 1.97 $ 5.18 $ 4.97 Diluted $ 1.98 $ 1.96 $ 5.14 $ 4.95 The Company did not have any significant anti-dilutive securities outstanding during the three and nine months ended September 30, 2021 and 2020. |
Pension and Other Benefits
Pension and Other Benefits | 9 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Other Benefits | Pension and Other Benefits The following table sets forth the components of net pension and other benefit costs for the three and nine months ended September 30, 2021 and 2020 (in millions): Pension Benefits Other Benefits 2021 2020 2021 2020 Three Months Ended September 30, Service cost $ 0.2 $ 0.3 $ — $ — Interest cost 5.9 7.2 0.1 0.2 Expected return on plan assets (9.1) (8.5) — — Amortization of prior service cost — — — (0.1) Amortization of actuarial losses 2.7 2.4 — — Settlement and curtailment losses — 6.6 — — NET PERIODIC BENEFIT COST $ (0.3) $ 8.0 $ 0.1 $ 0.1 Nine Months Ended September 30, Service cost $ 0.7 $ 0.8 $ — $ — Interest cost 17.9 21.6 0.4 0.6 Expected return on plan assets (27.4) (25.4) — — Amortization of prior service cost 0.1 0.1 — (0.3) Amortization of actuarial losses 8.1 7.1 — — Settlement and curtailment losses — 6.6 — — NET PERIODIC BENEFIT COST $ (0.6) $ 10.8 $ 0.4 $ 0.3 Employer Contributions |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2021 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of September 30, 2021 and December 31, 2020, the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product warranties that cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known, or as historical experience indicates. Changes in the accrual for product warranties during the nine months ended September 30, 2021 and 2020 are set forth below (in millions): 2021 2020 BALANCE AT JANUARY 1, (a) $ 80.5 $ 82.1 Provision 8.2 10.0 Expenditures/payments/other (15.0) (10.2) BALANCE AT SEPTEMBER 30, (a) $ 73.7 $ 81.9 (a) Refer to Note 6 – Other Accrued Liabilities and Note 7 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Financial Instruments Financial instruments which potentially subject the Company to significant concentrations of credit loss 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. 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. At September 30, 2021 our accounts receivable balance was $798.3 million, net of allowances of $11.6 million. During the nine months ended September 30, 2021 our allowances decreased approximately $0.9 million. The decrease is primarily the result of the improvement in general economic conditions. Investments At September 30, 2021 and December 31, 2020, the Company had $58.1 million and $57.7 million, respectively, of available-for-sale municipal debt securities. These investments had an amortized cost of $57.2 million and $56.4 million, respectively. No allowance for credit losses related to our available-for-sale debt securities was recorded for the nine months ended September 30, 2021. As of September 30, 2021 and December 31, 2020 the unrealized losses attributable to our available-for-sale debt securities was $0.1 million. The fair value of available-for-sale debt securities with unrealized losses was $11.4 million at September 30, 2021 and $6.1 million at December 31, 2020. The Company also had trading securities of $23.9 million at September 30, 2021 and $22.7 million at December 31, 2020 that are carried on the balance sheet at fair value. Unrealized gains and losses associated with available-for-sale debt securities are reflected in Accumulated other comprehensive loss, net of tax, while unrealized gains and losses associated with trading securities are reflected in the results of operations. Fair value measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions. The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at September 30, 2021 and December 31, 2020 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Unobservable inputs Total September 30, 2021 Money market funds (a) $ 50.9 $ — $ — $ 50.9 Available for sale investments — 58.1 — 58.1 Trading securities 23.9 — — 23.9 Deferred compensation plan liabilities (23.9) — — (23.9) Derivatives: Forward exchange contracts-Assets (b) — 0.5 — 0.5 Forward exchange contracts-(Liabilities) (c) — (0.1) — (0.1) TOTAL $ 50.9 $ 58.5 $ — $ 109.4 Asset (Liability) Quoted Prices in Quoted Prices in Unobservable inputs Total December 31, 2020 Money market funds (a) $ 26.6 $ — $ — $ 26.6 Available for sale investments — 57.7 — 57.7 Trading securities 22.7 — — 22.7 Deferred compensation plan liabilities (22.7) — — (22.7) Derivatives: Forward exchange contracts-(Liabilities) (c) — (0.8) — (0.8) TOTAL $ 26.6 $ 56.9 $ — $ 83.5 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets. 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 was based on quoted forward foreign exchange prices at the reporting date. Available-for-sale municipal bonds classified in Level 2 – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. Deferred compensation plans The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. The Company purchased $2.5 million and $2.7 million of trading securities related to these deferred compensation plans during the nine months ended September 30, 2021 and 2020, respectively. As a result of participant distributions, the Company sold $3.0 million of these trading securities during the nine months ended September 30, 2021 and $2.0 million during the nine months ended September 30, 2020. 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. Long Term Debt As of September 30, 2021 and December 31, 2020, the carrying value of long-term debt, net of unamortized discount and debt issuance costs, was $1,434.9 million and $1,436.9 million, respectively. The estimated fair value of the long-term debt as of September 30, 2021 and December 31, 2020 was $1,540.0 million and $1,569.5 million, respectively, using quoted market prices in active markets for similar liabilities (Level 2). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe 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. |
Restructuring Costs and Other
Restructuring Costs and Other | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs and Other | Restructuring Costs and Other In the three and nine months ended September 30, 2021, we incurred costs for restructuring actions initiated in 2021 as well as costs for restructuring actions initiated in the prior years. Our restructuring actions are associated with cost reduction efforts that include the consolidation of manufacturing and distribution facilities as well as workforce reductions. Restructuring costs include severance and employee benefits, asset impairments, accelerated depreciation, 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 reporting segments and the location of the costs in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021 and 2020 is as follows (in millions): Three Months Ended September 30, 2021 2020 2021 2020 2021 2020 Cost of goods sold Selling & administrative expense Total Electrical Solutions $ 1.0 $ 1.7 $ 0.2 $ 0.1 $ 1.2 $ 1.8 Utility Solutions — 1.5 0.2 — 0.2 1.5 Total Pre-Tax Restructuring Costs $ 1.0 $ 3.2 $ 0.4 $ 0.1 $ 1.4 $ 3.3 Nine Months Ended September 30, 2021 2020 2021 2020 2021 2020 Cost of goods sold Selling & administrative expense Total Electrical Solutions $ 2.3 $ 4.4 $ 0.4 $ 2.0 $ 2.7 $ 6.4 Utility Solutions 0.6 5.8 0.2 0.3 0.8 6.1 Total Pre-Tax Restructuring Costs $ 2.9 $ 10.2 $ 0.6 $ 2.3 $ 3.5 $ 12.5 The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued 2021 Restructuring Actions Severance $ — $ 0.6 $ (0.4) $ 0.2 Asset write-downs — — — — Facility closure and other costs — 0.1 (0.1) — Total 2021 Restructuring Actions $ — $ 0.7 $ (0.5) $ 0.2 2020 and Prior Restructuring Actions Severance $ 8.9 $ 0.3 $ (5.2) $ 4.0 Asset write-downs — — — — Facility closure and other costs 1.7 2.5 (2.7) 1.5 Total 2020 and Prior Restructuring Actions $ 10.6 $ 2.8 $ (7.9) $ 5.5 Total Restructuring Actions $ 10.6 $ 3.5 $ (8.4) $ 5.7 The actual costs incurred and total expected cost in each of our reporting segments of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2020 Costs incurred in the first nine months of 2021 Remaining costs at 9/30/2021 2021 Restructuring Actions Electrical Solutions $ 2.5 $ — $ 0.7 $ 1.8 Utility Solutions — — — — Total 2021 Restructuring Actions $ 2.5 $ — $ 0.7 $ 1.8 2020 and Prior Restructuring Actions Electrical Solutions $ 20.0 $ 16.0 $ 2.0 $ 2.0 Utility Solutions 10.3 8.1 0.8 1.4 Total 2020 and Prior Restructuring Actions $ 30.3 $ 24.1 $ 2.8 $ 3.4 Total Restructuring Actions $ 32.8 $ 24.1 $ 3.5 $ 5.2 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Long-term debt consists of the following (in millions): Maturity September 30, 2021 December 31, 2020 Senior notes at 3.625% 2022 $ — $ 299.2 Senior notes at 3.35% 2026 397.0 396.5 Senior notes at 3.15% 2027 296.9 296.4 Senior notes at 3.50% 2028 445.3 444.8 Senior notes at 2.300% 2031 295.7 — TOTAL LONG-TERM DEBT (a) $ 1,434.9 $ 1,436.9 (a) Long-term debt is presented net of debt issuance costs and unamortized discounts. 2.300% Senior Notes due 2031 On March 12, 2021, the Company completed a public offering of $300 million aggregate principal amount of its 2.300% Senior Notes due 2031 (the “2031 Notes”). The net proceeds from the offering were approximately $295.5 million after deducting the underwriting discount and estimated offering expenses payable by the Company. The Company used the net proceeds from the offering of the 2031 Notes, together with cash on hand, to redeem in full all of the Company’s outstanding 3.625% Senior Notes due 2022 in an aggregate principal amount of $300 million, which had a stated maturity date of November 15, 2022 (the “2022 Notes”), and to pay any premium and accrued interest in respect thereof, which redemption was completed on April 2, 2021. The redemption resulted in a $16.8 million loss on extinguishment of indebtedness that was recognized in the second quarter of 2021. The loss on extinguishment includes a cash premium of $16.0 million paid upon redemption in accordance with the terms of the 2022 Notes. The 2031 Notes bear interest at a rate of 2.300% per annum from March 12, 2021. Interest on the 2031 Notes is payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2021. The 2031 Notes will mature on March 15, 2031. The 2031 Notes 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 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 September 30, 2021. 2021 Credit Facility On March 12, 2021, the Company, as borrower, and its subsidiaries Hubbell Power Holdings S.à r.l. and Harvey Hubbell Holdings S.à r.l., each as a subsidiary borrower (collectively, the “Subsidiary Borrowers”), entered into a new five-year credit agreement with a syndicate of lenders and JPMorgan Chase, N.A., as administrative agent, that provides a $750 million committed revolving credit facility (the “2021 Credit Facility"). Commitments under the 2021 Credit Facility may be increased to an aggregate amount not to exceed $1.25 billion. The 2021 Credit Facility includes a $50 million sub-limit for the issuance of letters of credit. The sum of the dollar amount of loans and letters of credits to the Subsidiary Borrowers under the 2021 Credit Facility may not exceed $75 million. The interest rate applicable to borrowings under the 2021 Credit Facility is either (i) the alternate base rate (as defined in the Revolving Credit Agreement) or (ii) the adjusted LIBOR rate (as defined in the 2021 Credit Facility) plus, in the case of this clause (ii), an applicable margin based on the Company’s credit ratings. All revolving loans outstanding under the 2021 Credit Facility will be due and payable on March 12, 2026. The 2021 Credit Facility contains a financial covenant requiring that, as of the last day of each fiscal quarter, the ratio of total indebtedness to total capitalization shall not be greater than 65%. The Company was in compliance with this covenant as of September 30, 2021. As of September 30, 2021, the 2021 Credit Facility was undrawn. In connection with entry into the 2021 Credit Facility, the Company terminated all commitments under the existing credit facility dated as of January 31, 2018. Short-Term Debt The Company had $128.9 million and $153.1 million of short-term debt outstanding at September 30, 2021 and December 31, 2020, respectively, which consisted primarily of commercial paper borrowings. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of September 30, 2021, 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 Hubbell Incorporated 2005 Incentive Award Plan as amended and restated (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. During the three months ended March 31, 2021, the Company's grant of stock-based awards included restricted stock, SARs and performance shares. There were no material awards granted during the three months ended September 30, 2021. 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 starting in December 2018, the Company granted a certain number of these awards that generally 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”). In February 2021, the Company granted 67,166 restricted stock awards with a fair value per share of $163.26. 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. In February 2021, the Company granted 182,441 SAR awards. 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 first three months of 2021: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR February 2021 2.4% 26.5% 0.6% 5.5 years $29.43 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 - Market Condition In February 2021, the Company granted 15,741 p erformance shares that will vest subject to a market condition and service condition through the performance period. The market condition associated with the awards is the Company's total shareholder return ("TSR") compared to the TSR generated by the companies that comprise the S&P Capital Goods 900 index over a three year performance per iod. Performance at target will result in vesting and issuance of the number of performance shares granted, equal to 100% payout. Performance below or above target can result in issuance in the range of 0%-200% of the number of shares granted. Exp ense is recognized irrespective of the market condition being achieved. The fair value of the performance share awards with a market condition for the 2021 grant 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 February 2021: Grant Date Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value February 2021 $163.26 2.4% 40.6% 0.2% 3 years $198.89 Expected volatilities are based on historical volatilities of the Company’s and members of the peer group'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 February 2021, the Company granted 31,543 performance shares that will vest subject to an internal Company-based performance condition and service requirement. Fifty percent of these performance 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. Fifty percent of these performance shares granted will vest based on achieved operating profit margin performance 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. 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 and including an assessment of the performance achieved to date. The weighted average fair value per share was $151.92 for the awards granted in the first quarter of 2021. Grant Date Fair Value Performance Period Payout Range February 2021 $151.92 Jan 2021 - Dec 2023 0-200% |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn October 26, 2021, Hubbell entered into a definitive agreement to sell its Commercial and Industrial Lighting business to GE Current, a Daintree company, for a cash purchase price of $350Â million, subject to customary adjustments with respect to working capital and net indebtedness. The Commercial and Industrial Lighting business had sales of approximately $515Â million in 2020 as part of the Electrical Solutions segment and designs, manufactures, and sells LED lighting and control solutions for commercial and industrial customers. Hubbell expects the Commercial and Industrial Lighting business to be classified as held for sale in the fourth quarter of 2021. The transaction is subject to customary closing conditions, including regulatory approvals, and is expected to close in the first quarter of 2022. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2021. Effective January 1, 2021 the Company consolidated the three business groups within its Electrical segment and renamed the segment as Hubbell Electrical Solutions ("Electrical Solutions"). The Electrical Solutions segment unites businesses with similar operating models, products, and go to market strategies under one operating banner and common leadership to drive synergies and long-term growth opportunities. Also effective January 1, 2021, the Company moved its Hubbell Gas Connectors and Accessories business from the Electrical Solutions segment to the Utility Solutions segment to create synergies with the existing gas products already offered within the Utility Solutions segment and to better serve its utility customers. The information provided in the Condensed Consolidated Financial Statements and the related notes reflects the impact of this change for all periods presented. The balance sheet at December 31, 2020 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2020. |
Impact of the COVID-19 Pandemic | Impact of the COVID-19 Pandemic During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has had, and may continue to have, a significant effect on global economic conditions. U.S. Federal, state, local, and foreign governments have reacted to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. and global economies. The extent to which the coronavirus pandemic will continue to affect our business, operations, supply chains, and our financial results will depend on numerous evolving factors that we may not be able to accurately predict and which may cause the actual results to differ from the estimates and assumptions we are required to make in the preparation of financial statements according to GAAP. |
Recently Adopted And Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements No accounting standards were adopted during the nine months ended September 30, 2021 that had a material impact on the Company's consolidated financial position, results of operations, or cash flows. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are effective for all entities beginning on March 12, 2020 through December 31, 2022. The Company may elect to apply the amendments prospectively through December 31, 2022. The Company has not adopted this ASU as of September 30, 2021. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue by business group | The following table presents disaggregated revenue by business group. Prior period amounts have been reclassified to conform to our organizational changes as described in Note 1 - Basis of Presentation: Three Months Ended September 30, Nine Months Ended September 30, in millions 2021 2020 2021 2020 Net sales Commercial and Industrial $ 434.9 $ 372.9 $ 1,237.0 $ 1,066.4 Heavy Industrial 85.2 75.1 247.3 228.6 Residential and Retail 91.8 103.0 276.7 289.1 Total Electrical Solutions $ 611.9 $ 551.0 $ 1,761.0 $ 1,584.1 Utility T&D Components 435.3 396.9 1,231.5 1,089.3 Utility Communications and Controls 166.4 160.7 491.3 474.7 Total Utility Solutions $ 601.7 $ 557.6 $ 1,722.8 $ 1,564.0 TOTAL $ 1,213.6 $ 1,108.6 $ 3,483.8 $ 3,148.1 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended September 30, Nine Months Ended September 30, in millions 2021 2020 2021 2020 Net sales United States $ 549.7 $ 495.7 $ 1,571.7 $ 1,427.2 International 62.2 55.3 189.3 156.9 Total Electrical Solutions $ 611.9 $ 551.0 $ 1,761.0 $ 1,584.1 United States 571.4 524.9 1,633.1 1,479.3 International 30.3 32.7 89.7 84.7 Total Utility Solutions $ 601.7 $ 557.6 $ 1,722.8 $ 1,564.0 TOTAL $ 1,213.6 $ 1,108.6 $ 3,483.8 $ 3,148.1 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Summary of segment information | The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2021 2020 2021 2020 2021 2020 Three Months Ended September 30, Electrical Solutions $ 611.9 $ 551.0 $ 72.0 $ 65.9 11.8 % 12.0 % Utility Solutions 601.7 557.6 83.3 97.0 13.8 % 17.4 % TOTAL $ 1,213.6 $ 1,108.6 $ 155.3 $ 162.9 12.8 % 14.7 % Nine Months Ended September 30, Electrical Solutions $ 1,761.0 $ 1,584.1 $ 201.3 $ 171.1 11.4 % 10.8 % Utility Solutions 1,722.8 1,564.0 224.3 242.1 13.0 % 15.5 % TOTAL $ 3,483.8 $ 3,148.1 $ 425.6 $ 413.2 12.2 % 13.1 % |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Schedule of inventories, net | Inventories, net consists of the following (in millions): September 30, 2021 December 31, 2020 Raw material $ 250.2 $ 219.5 Work-in-process 126.2 108.3 Finished goods 411.7 366.8 Subtotal 788.1 694.6 Excess of FIFO over LIFO cost basis (87.4) (87.3) TOTAL $ 700.7 $ 607.3 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | Changes in the carrying values of goodwill for the nine months ended September 30, 2021, were as follows (in millions): Segment Electrical Solutions Utility Solutions Total BALANCE DECEMBER 31, 2020 $ 663.9 $ 1,259.4 $ 1,923.3 Prior year acquisitions — 6.9 6.9 Current year dispositions — (1.9) (1.9) Foreign currency translation (1.7) (4.0) (5.7) BALANCE SEPTEMBER 30, 2021 $ 662.2 $ 1,260.4 $ 1,922.6 |
Schedule of intangible assets | The carrying value of other intangible assets included in Other intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions): September 30, 2021 December 31, 2020 Gross Amount Accumulated Gross Amount Accumulated Definite-lived: Patents, tradenames and trademarks $ 212.7 $ (80.7) $ 213.4 $ (73.8) Customer relationships, developed technology and other 940.7 (388.3) 958.0 (340.6) TOTAL DEFINITE-LIVED INTANGIBLES $ 1,153.4 $ (469.0) $ 1,171.4 $ (414.4) Indefinite-lived: Tradenames and other 53.6 — 53.6 — TOTAL OTHER INTANGIBLE ASSETS $ 1,207.0 $ (469.0) $ 1,225.0 $ (414.4) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accrued Liabilities [Abstract] | |
Schedule of other accrued liabilities | Other accrued liabilities consists of the following (in millions): September 30, 2021 December 31, 2020 Customer program incentives $ 58.4 $ 40.7 Accrued income taxes 15.2 4.6 Contract liabilities - deferred revenue 19.3 30.9 Customer refund liability 18.7 17.4 Accrued warranties (1) 21.9 28.7 Current operating lease liabilities 29.2 32.1 Other 92.9 99.6 TOTAL $ 255.6 $ 254.0 (1) Refer to Note 21 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information regarding warranties. |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Summary of other non-current liabilities | Other non-current liabilities consists of the following (in millions): September 30, 2021 December 31, 2020 Pensions $ 185.9 $ 199.0 Other post-retirement benefits 21.2 21.2 Deferred tax liabilities 143.3 135.3 Accrued warranties long-term (1) 51.8 51.8 Non-current operating lease liabilities 65.7 74.9 Other 125.4 132.4 TOTAL $ 593.3 $ 614.6 (1) Refer to Note 21 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2020 for additional information regarding warranties. |
Total Equity (Tables)
Total Equity (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stockholders equity | A summary of changes in total equity for the three and nine months ended September 30, 2021 and the three and nine months ended September 30, 2020 is provided below (in millions, except per share amounts): Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2020 $ 0.6 $ 4.9 $ 2,393.7 $ (329.2) $ 2,070.0 $ 15.4 Net income — — 173.5 — 173.5 2.2 Other comprehensive (loss) income — — — 7.0 7.0 — Stock-based compensation — 13.4 — — 13.4 — Acquisition/surrender of common shares (1) — (18.5) (13.2) — (31.7) — Cash dividends declared ($0.98 per share) — — (106.7) — (106.7) — Dividends to noncontrolling interest — — — — — (2.4) Directors deferred compensation — 0.2 — — 0.2 — BALANCE AT JUNE 30, 2021 $ 0.6 $ — $ 2,447.3 $ (322.2) $ 2,125.7 $ 15.2 Net income — — 108.5 — 108.5 2.1 Other comprehensive (loss) income — — — (10.9) (10.9) — Stock-based compensation — 3.1 — — 3.1 — Acquisition/surrender of common shares (1) — (3.4) (1.0) — (4.4) — Cash dividends declared ($0.98 per share) — — (53.5) — (53.5) — Dividends to noncontrolling interest — — — — — (8.0) Directors deferred compensation — 0.3 — — 0.3 — BALANCE AT SEPTEMBER 30, 2021 $ 0.6 $ — $ 2,501.3 $ (333.1) $ 2,168.8 $ 9.3 Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2019 $ 0.6 $ — $ 2,279.4 $ (332.9) $ 1,947.1 $ 13.4 Net income — — 163.2 — 163.2 1.6 Other comprehensive (loss) income — — — (19.0) (19.0) — Stock-based compensation — 15.9 — — 15.9 — Acquisition/surrender of common shares (1) — (12.0) (34.1) — (46.1) — Cash dividends declared ($0.91 per share) — — (99.1) — (99.1) — Dividends to noncontrolling interest — — — — — (1.4) Directors deferred compensation — (1.1) — — (1.1) — Cumulative effect from adoption of CECL accounting standard — — (1.0) — (1.0) — BALANCE AT JUNE 30, 2020 $ 0.6 $ 2.8 $ 2,308.4 $ (351.9) $ 1,959.9 $ 13.6 Net income — — 107.1 — 107.1 1.5 Other comprehensive (loss) income — — — (4.4) (4.4) — Stock-based compensation — 4.1 — — 4.1 — Acquisition/surrender of common shares (1) — (0.6) — — (0.6) — Cash dividends declared ($0.91 per share) — — (49.5) — (49.5) — Dividends to noncontrolling interest — — — — — (0.9) Directors deferred compensation — 0.2 — — 0.2 — BALANCE AT SEPTEMBER 30, 2020 $ 0.6 $ 6.5 $ 2,366.0 $ (356.3) $ 2,016.8 $ 14.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income loss | A summary of the changes in Accumulated other comprehensive loss (net of tax) for the nine months ended September 30, 2021 is provided below (in millions): (debit) credit Cash flow hedge (loss) gain Unrealized Pension Cumulative Total BALANCE AT DECEMBER 31, 2020 $ (0.7) $ 1.0 $ (212.0) $ (117.5) $ (329.2) Other comprehensive income (loss) before reclassifications 0.2 (0.3) — (10.8) (10.9) Amounts reclassified from accumulated other comprehensive loss 0.9 — 6.1 — 7.0 Current period other comprehensive income (loss) 1.1 (0.3) 6.1 (10.8) (3.9) BALANCE AT SEPTEMBER 30, 2021 $ 0.4 $ 0.7 $ (205.9) $ (128.3) $ (333.1) |
Reclassifications out of accumulated other comprehensive income | A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2021 and 2020 is provided below (in millions): Three Months Ended September 30, Nine Months Ended September 30, Details about Accumulated Other 2021 2020 2021 2020 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ — $ — $ (0.1) $ 0.3 Net sales (0.1) 0.2 (0.9) 0.7 Cost of goods sold — — (0.2) — Other expense, net (0.1) 0.2 (1.2) 1.0 Total before tax — (0.1) 0.3 (0.3) Tax benefit (expense) $ (0.1) $ 0.1 $ (0.9) $ 0.7 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs (a) $ — $ 0.1 $ (0.1) $ 0.2 Actuarial gains/(losses) (a) (2.7) (2.4) (8.1) (7.1) Settlement and curtailment losses (a) — (6.6) — (6.6) (2.7) (8.9) (8.2) (13.5) Total before tax 0.7 2.3 2.1 3.4 Tax benefit (expense) $ (2.0) $ (6.6) $ (6.1) $ (10.1) Gain (loss) net of tax Gains (losses) reclassified into earnings $ (2.1) $ (6.5) $ (7.0) $ (9.4) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 - Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Summary of the computation of earnings per share | The following table sets forth the computation of earnings per share for the three and nine months ended September 30, 2021 and 2020 (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Numerator: Net income attributable to Hubbell Incorporated $ 108.5 $ 107.1 $ 282.0 $ 270.3 Less: Earnings allocated to participating securities (0.3) (0.4) (0.9) (1.0) Net income available to common shareholders $ 108.2 $ 106.7 $ 281.1 $ 269.3 Denominator: Average number of common shares outstanding 54.3 54.2 54.3 54.1 Potential dilutive common shares 0.4 0.3 0.4 0.3 Average number of diluted shares outstanding 54.7 54.5 54.7 54.4 Earnings per share: Basic $ 1.99 $ 1.97 $ 5.18 $ 4.97 Diluted $ 1.98 $ 1.96 $ 5.14 $ 4.95 |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of net pension and other benefit costs | The following table sets forth the components of net pension and other benefit costs for the three and nine months ended September 30, 2021 and 2020 (in millions): Pension Benefits Other Benefits 2021 2020 2021 2020 Three Months Ended September 30, Service cost $ 0.2 $ 0.3 $ — $ — Interest cost 5.9 7.2 0.1 0.2 Expected return on plan assets (9.1) (8.5) — — Amortization of prior service cost — — — (0.1) Amortization of actuarial losses 2.7 2.4 — — Settlement and curtailment losses — 6.6 — — NET PERIODIC BENEFIT COST $ (0.3) $ 8.0 $ 0.1 $ 0.1 Nine Months Ended September 30, Service cost $ 0.7 $ 0.8 $ — $ — Interest cost 17.9 21.6 0.4 0.6 Expected return on plan assets (27.4) (25.4) — — Amortization of prior service cost 0.1 0.1 — (0.3) Amortization of actuarial losses 8.1 7.1 — — Settlement and curtailment losses — 6.6 — — NET PERIODIC BENEFIT COST $ (0.6) $ 10.8 $ 0.4 $ 0.3 |
Guarantees (Tables)
Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Standard Product Warranty Disclosure [Abstract] | |
Schedule of product warranty liability | Changes in the accrual for product warranties during the nine months ended September 30, 2021 and 2020 are set forth below (in millions): 2021 2020 BALANCE AT JANUARY 1, (a) $ 80.5 $ 82.1 Provision 8.2 10.0 Expenditures/payments/other (15.0) (10.2) BALANCE AT SEPTEMBER 30, (a) $ 73.7 $ 81.9 (a) Refer to Note 6 – Other Accrued Liabilities and Note 7 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of financial assets and liability by fair value hierarchy level | The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at September 30, 2021 and December 31, 2020 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Unobservable inputs Total September 30, 2021 Money market funds (a) $ 50.9 $ — $ — $ 50.9 Available for sale investments — 58.1 — 58.1 Trading securities 23.9 — — 23.9 Deferred compensation plan liabilities (23.9) — — (23.9) Derivatives: Forward exchange contracts-Assets (b) — 0.5 — 0.5 Forward exchange contracts-(Liabilities) (c) — (0.1) — (0.1) TOTAL $ 50.9 $ 58.5 $ — $ 109.4 Asset (Liability) Quoted Prices in Quoted Prices in Unobservable inputs Total December 31, 2020 Money market funds (a) $ 26.6 $ — $ — $ 26.6 Available for sale investments — 57.7 — 57.7 Trading securities 22.7 — — 22.7 Deferred compensation plan liabilities (22.7) — — (22.7) Derivatives: Forward exchange contracts-(Liabilities) (c) — (0.8) — (0.8) TOTAL $ 26.6 $ 56.9 $ — $ 83.5 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets. |
Restructuring Costs and Other (
Restructuring Costs and Other (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring costs | Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statements of Income for the three and nine months ended September 30, 2021 and 2020 is as follows (in millions): Three Months Ended September 30, 2021 2020 2021 2020 2021 2020 Cost of goods sold Selling & administrative expense Total Electrical Solutions $ 1.0 $ 1.7 $ 0.2 $ 0.1 $ 1.2 $ 1.8 Utility Solutions — 1.5 0.2 — 0.2 1.5 Total Pre-Tax Restructuring Costs $ 1.0 $ 3.2 $ 0.4 $ 0.1 $ 1.4 $ 3.3 Nine Months Ended September 30, 2021 2020 2021 2020 2021 2020 Cost of goods sold Selling & administrative expense Total Electrical Solutions $ 2.3 $ 4.4 $ 0.4 $ 2.0 $ 2.7 $ 6.4 Utility Solutions 0.6 5.8 0.2 0.3 0.8 6.1 Total Pre-Tax Restructuring Costs $ 2.9 $ 10.2 $ 0.6 $ 2.3 $ 3.5 $ 12.5 |
Schedule of restructuring reserve by type of cost | The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued 2021 Restructuring Actions Severance $ — $ 0.6 $ (0.4) $ 0.2 Asset write-downs — — — — Facility closure and other costs — 0.1 (0.1) — Total 2021 Restructuring Actions $ — $ 0.7 $ (0.5) $ 0.2 2020 and Prior Restructuring Actions Severance $ 8.9 $ 0.3 $ (5.2) $ 4.0 Asset write-downs — — — — Facility closure and other costs 1.7 2.5 (2.7) 1.5 Total 2020 and Prior Restructuring Actions $ 10.6 $ 2.8 $ (7.9) $ 5.5 Total Restructuring Actions $ 10.6 $ 3.5 $ (8.4) $ 5.7 The actual costs incurred and total expected cost in each of our reporting segments of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2020 Costs incurred in the first nine months of 2021 Remaining costs at 9/30/2021 2021 Restructuring Actions Electrical Solutions $ 2.5 $ — $ 0.7 $ 1.8 Utility Solutions — — — — Total 2021 Restructuring Actions $ 2.5 $ — $ 0.7 $ 1.8 2020 and Prior Restructuring Actions Electrical Solutions $ 20.0 $ 16.0 $ 2.0 $ 2.0 Utility Solutions 10.3 8.1 0.8 1.4 Total 2020 and Prior Restructuring Actions $ 30.3 $ 24.1 $ 2.8 $ 3.4 Total Restructuring Actions $ 32.8 $ 24.1 $ 3.5 $ 5.2 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of long term debt | Long-term debt consists of the following (in millions): Maturity September 30, 2021 December 31, 2020 Senior notes at 3.625% 2022 $ — $ 299.2 Senior notes at 3.35% 2026 397.0 396.5 Senior notes at 3.15% 2027 296.9 296.4 Senior notes at 3.50% 2028 445.3 444.8 Senior notes at 2.300% 2031 295.7 — TOTAL LONG-TERM DEBT (a) $ 1,434.9 $ 1,436.9 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
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 first three months of 2021: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR February 2021 2.4% 26.5% 0.6% 5.5 years $29.43 |
Summary of the Attributes of the Performance Shares Granted During the Period | The following table summarizes the related assumptions used to determine the fair values of the performance share awards with a market condition granted during February 2021: Grant Date Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value February 2021 $163.26 2.4% 40.6% 0.2% 3 years $198.89 Grant Date Fair Value Performance Period Payout Range February 2021 $151.92 Jan 2021 - Dec 2023 0-200% |
Basis of Presentation (Details)
Basis of Presentation (Details) - group | 3 Months Ended | 9 Months Ended |
Sep. 30, 2020 | Sep. 30, 2020 | |
Electrical Solutions | ||
Segment Reporting Information [Line Items] | ||
Number of business groups | 3 | 3 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||
Percentage of revenue from service contracts and post-shipment obligations (approximate) | 3.00% | |
Contract liability | $ 19.3 | $ 30.9 |
Increase (decrease) in net contract liabilities | (11.6) | |
Revenue recognized | 27.2 | |
Increase in current year deferrals, net | 17.1 | |
Disposal Group, Disposed of by Sale, Not Discontinued Operations | Consumer Analytics Solutions Business | ||
Disaggregation of Revenue [Line Items] | ||
Increase (decrease) in net contract liabilities | $ (1.5) |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 1,213.6 | $ 1,108.6 | $ 3,483.8 | $ 3,148.1 |
Electrical Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 611.9 | 551 | 1,761 | 1,584.1 |
Electrical Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 549.7 | 495.7 | 1,571.7 | 1,427.2 |
Electrical Solutions | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 62.2 | 55.3 | 189.3 | 156.9 |
Electrical Solutions | Commercial and Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 434.9 | 372.9 | 1,237 | 1,066.4 |
Electrical Solutions | Heavy Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 85.2 | 75.1 | 247.3 | 228.6 |
Electrical Solutions | Residential and Retail | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 91.8 | 103 | 276.7 | 289.1 |
Utility Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 601.7 | 557.6 | 1,722.8 | 1,564 |
Utility Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 571.4 | 524.9 | 1,633.1 | 1,479.3 |
Utility Solutions | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 30.3 | 32.7 | 89.7 | 84.7 |
Utility Solutions | Utility T&D Components | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 435.3 | 396.9 | 1,231.5 | 1,089.3 |
Utility Solutions | Utility Communications and Controls | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 166.4 | $ 160.7 | $ 491.3 | $ 474.7 |
Revenue - Unsatisfied Performan
Revenue - Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 $ in Millions | Sep. 30, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 450 |
Unsatisfied performance obligation, period of recognition | 3 years |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)group | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($)group | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 1,213.6 | $ 1,108.6 | $ 3,483.8 | $ 3,148.1 |
Operating Income | $ 155.3 | $ 162.9 | $ 425.6 | $ 413.2 |
Operating Income as a % of Net Sales | 12.80% | 14.70% | 12.20% | 13.10% |
Electrical Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Number of business groups | group | 3 | 3 | ||
Net Sales | $ 611.9 | $ 551 | $ 1,761 | $ 1,584.1 |
Operating Income | $ 72 | $ 65.9 | $ 201.3 | $ 171.1 |
Operating Income as a % of Net Sales | 11.80% | 12.00% | 11.40% | 10.80% |
Utility Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 601.7 | $ 557.6 | $ 1,722.8 | $ 1,564 |
Operating Income | $ 83.3 | $ 97 | $ 224.3 | $ 242.1 |
Operating Income as a % of Net Sales | 13.80% | 17.40% | 13.00% | 15.50% |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw material | $ 250.2 | $ 219.5 |
Work-in-process | 126.2 | 108.3 |
Finished goods | 411.7 | 366.8 |
Subtotal | 788.1 | 694.6 |
Excess of FIFO over LIFO cost basis | (87.4) | (87.3) |
TOTAL | $ 700.7 | $ 607.3 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Changes in Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2020 | $ 1,923.3 |
Prior year acquisitions | 6.9 |
Current year dispositions | (1.9) |
Foreign currency translation | (5.7) |
BALANCE SEPTEMBER 30, 2021 | 1,922.6 |
Electrical Solutions | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2020 | 663.9 |
Prior year acquisitions | 0 |
Current year dispositions | 0 |
Foreign currency translation | (1.7) |
BALANCE SEPTEMBER 30, 2021 | 662.2 |
Utility Solutions | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2020 | 1,259.4 |
Prior year acquisitions | 6.9 |
Current year dispositions | (1.9) |
Foreign currency translation | (4) |
BALANCE SEPTEMBER 30, 2021 | $ 1,260.4 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule of Other Intangible Assets by Major Class [Line Items] | |||||
Gain (loss) on disposition of business | $ (0.1) | $ 0 | $ (6.9) | $ 0 | |
Amortization expense | 18.7 | $ 18.5 | 59.4 | $ 56.2 | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
Remainder of 2021 | 20.1 | 20.1 | |||
2022 | 72.9 | 72.9 | |||
2023 | 68.2 | 68.2 | |||
2024 | 63.3 | 63.3 | |||
2025 | 58.8 | 58.8 | |||
2026 | $ 55.1 | $ 55.1 | |||
Percentage of definite-lived intangible assets under accelerated amortization method (approximate) | 76.00% | 76.00% | |||
Consumer Analytics Solutions Business | Disposal Group, Disposed of by Sale, Not Discontinued Operations | |||||
Schedule of Other Intangible Assets by Major Class [Line Items] | |||||
Discontinued operation consideration | $ 9.8 | ||||
Dispositions, assets | 15.9 | ||||
Dispositions, definite-lived intangibles | 8.7 | ||||
Dispositions, goodwill | 1.9 | ||||
Dispositions, liabilities | 1.5 | ||||
Gain (loss) on disposition of business | $ (6.9) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net - Other Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,153.4 | $ 1,171.4 |
Accumulated Amortization | (469) | (414.4) |
Total intangible assets | 1,207 | 1,225 |
Tradenames and other | ||
Other Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 53.6 | 53.6 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 212.7 | 213.4 |
Accumulated Amortization | (80.7) | (73.8) |
Customer relationships, developed technology and other | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 940.7 | 958 |
Accumulated Amortization | $ (388.3) | $ (340.6) |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 58.4 | $ 40.7 |
Accrued income taxes | 15.2 | 4.6 |
Contract liabilities - deferred revenue | 19.3 | 30.9 |
Customer refund liability | 18.7 | 17.4 |
Accrued warranties | 21.9 | 28.7 |
Current operating lease liabilities | 29.2 | 32.1 |
Other | 92.9 | 99.6 |
TOTAL | $ 255.6 | $ 254 |
Other Non-Current Liabilities_2
Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | ||
Pensions | $ 185.9 | $ 199 |
Other post-retirement benefits | 21.2 | 21.2 |
Deferred tax liabilities | 143.3 | 135.3 |
Accrued warranties long-term | 51.8 | 51.8 |
Non-current operating lease liabilities | 65.7 | 74.9 |
Other | 125.4 | 132.4 |
TOTAL | $ 593.3 | $ 614.6 |
Total Equity (Details)
Total Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning equity | $ 2,085.4 | $ 2,085.4 | |||||||
Net income | $ 110.6 | $ 108.6 | 286.3 | $ 273.4 | |||||
Other comprehensive (loss) income | (10.9) | $ (4.4) | (3.9) | $ (23.4) | |||||
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | ||||||||
Ending equity | $ 2,178.1 | $ 2,178.1 | |||||||
Cash dividends declared (USD per share) | $ 0.98 | $ 0.98 | $ 0.91 | $ 0.91 | $ 2.94 | $ 2.73 | |||
Common Stock | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning equity | $ 0.6 | $ 0.6 | 0.6 | $ 0.6 | $ 0.6 | $ 0.6 | |||
Ending equity | 0.6 | $ 0.6 | 0.6 | $ 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | $ 0.6 |
Additional Paid-in Capital | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning equity | 0 | 2.8 | 4.9 | 0 | 4.9 | 0 | |||
Stock-based compensation | 3.1 | 4.1 | 13.4 | 15.9 | |||||
Acquisition/surrender of common shares | (3.4) | (0.6) | (18.5) | (12) | |||||
Directors deferred compensation | 0.3 | 0.2 | 0.2 | (1.1) | |||||
Ending equity | 0 | 0 | 6.5 | 2.8 | 0 | 2.8 | 0 | 6.5 | 0 |
Retained Earnings | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning equity | 2,447.3 | 2,308.4 | 2,393.7 | 2,279.4 | 2,393.7 | 2,279.4 | |||
Net income | 108.5 | 107.1 | 173.5 | 163.2 | |||||
Acquisition/surrender of common shares | (1) | (13.2) | (34.1) | (14.2) | (34.1) | ||||
Cash dividends declared | (53.5) | (49.5) | (106.7) | (99.1) | |||||
Ending equity | 2,501.3 | 2,447.3 | 2,366 | 2,308.4 | 2,447.3 | 2,308.4 | 2,501.3 | 2,366 | 2,279.4 |
Retained Earnings | Cumulative effect from adoption of CECL accounting standard | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning equity | (1) | (1) | |||||||
Ending equity | (1) | ||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning equity | (322.2) | (351.9) | (329.2) | (332.9) | (329.2) | (332.9) | |||
Other comprehensive (loss) income | (10.9) | (4.4) | 7 | (19) | |||||
Ending equity | (333.1) | (322.2) | (356.3) | (351.9) | (322.2) | (351.9) | (333.1) | (356.3) | (332.9) |
Total Hubbell Shareholders' Equity | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning equity | 2,125.7 | 1,959.9 | 2,070 | 1,947.1 | 2,070 | 1,947.1 | |||
Net income | 108.5 | 107.1 | 173.5 | 163.2 | |||||
Other comprehensive (loss) income | (10.9) | (4.4) | 7 | (19) | |||||
Stock-based compensation | 3.1 | 4.1 | 13.4 | 15.9 | |||||
Acquisition/surrender of common shares | (4.4) | (0.6) | (31.7) | (46.1) | |||||
Cash dividends declared | (53.5) | (49.5) | (106.7) | (99.1) | |||||
Directors deferred compensation | 0.3 | 0.2 | 0.2 | (1.1) | |||||
Ending equity | 2,168.8 | 2,125.7 | 2,016.8 | 1,959.9 | 2,125.7 | 1,959.9 | 2,168.8 | 2,016.8 | 1,947.1 |
Total Hubbell Shareholders' Equity | Cumulative effect from adoption of CECL accounting standard | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning equity | (1) | (1) | |||||||
Ending equity | (1) | ||||||||
Non- controlling interest | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Beginning equity | 15.2 | 13.6 | 15.4 | 13.4 | 15.4 | 13.4 | |||
Net income | 2.1 | 1.5 | 2.2 | 1.6 | |||||
Dividends to noncontrolling interest | (8) | (0.9) | (2.4) | (1.4) | |||||
Ending equity | $ 9.3 | $ 15.2 | $ 14.2 | $ 13.6 | $ 15.2 | $ 13.6 | $ 9.3 | $ 14.2 | $ 13.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | |||
Sep. 30, 2021 | Sep. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | $ 2,085.4 | $ 2,085.4 | ||||
Other comprehensive income (loss) before reclassifications | (10.9) | |||||
Amounts reclassified from accumulated other comprehensive loss | 7 | |||||
Other comprehensive (loss) income | $ (10.9) | $ (4.4) | (3.9) | $ (23.4) | ||
Ending equity | 2,178.1 | 2,178.1 | ||||
Cash flow hedge (loss) gain | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | (0.7) | (0.7) | ||||
Other comprehensive income (loss) before reclassifications | 0.2 | |||||
Amounts reclassified from accumulated other comprehensive loss | 0.9 | |||||
Other comprehensive (loss) income | 1.1 | |||||
Ending equity | 0.4 | 0.4 | ||||
Unrealized gain (loss) on available-for- sale securities | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | 1 | 1 | ||||
Other comprehensive income (loss) before reclassifications | (0.3) | |||||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||||
Other comprehensive (loss) income | (0.3) | |||||
Ending equity | 0.7 | 0.7 | ||||
Pension and post retirement benefit plan adjustment | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | (212) | (212) | ||||
Other comprehensive income (loss) before reclassifications | 0 | |||||
Amounts reclassified from accumulated other comprehensive loss | 6.1 | |||||
Other comprehensive (loss) income | 6.1 | |||||
Ending equity | (205.9) | (205.9) | ||||
Cumulative translation adjustment | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | (117.5) | (117.5) | ||||
Other comprehensive income (loss) before reclassifications | (10.8) | |||||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||||
Other comprehensive (loss) income | (10.8) | |||||
Ending equity | (128.3) | (128.3) | ||||
Total | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | (322.2) | (351.9) | (329.2) | $ (332.9) | (329.2) | (332.9) |
Other comprehensive (loss) income | (10.9) | (4.4) | 7 | (19) | ||
Ending equity | $ (333.1) | $ (356.3) | $ (322.2) | $ (351.9) | $ (333.1) | $ (356.3) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | $ 1,213.6 | $ 1,108.6 | $ 3,483.8 | $ 3,148.1 |
Cost of goods sold | 883.3 | 779 | 2,532.9 | 2,224.5 |
Other expense, net | (1.2) | (2.3) | (3.1) | (8.9) |
Tax benefit (expense) | (29.9) | (30.4) | (71.1) | (78.5) |
Gain (loss) net of tax | 110.6 | 108.6 | 286.3 | 273.4 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gain (loss) net of tax | (2.1) | (6.5) | (7) | (9.4) |
Cash flow hedges gain (loss): | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | 0 | 0 | (0.1) | 0.3 |
Cost of goods sold | (0.1) | 0.2 | (0.9) | 0.7 |
Other expense, net | 0 | 0 | (0.2) | 0 |
Total before tax | (0.1) | 0.2 | (1.2) | 1 |
Tax benefit (expense) | 0 | (0.1) | 0.3 | (0.3) |
Gain (loss) net of tax | (0.1) | 0.1 | (0.9) | 0.7 |
Prior-service costs | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | 0 | 0.1 | (0.1) | 0.2 |
Actuarial gains/(losses) | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | (2.7) | (2.4) | (8.1) | (7.1) |
Settlement and curtailment losses | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | 0 | (6.6) | 0 | (6.6) |
Pension and post retirement benefit plan adjustment | Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | (2.7) | (8.9) | (8.2) | (13.5) |
Tax benefit (expense) | 0.7 | 2.3 | 2.1 | 3.4 |
Gain (loss) net of tax | $ (2) | $ (6.6) | $ (6.1) | $ (10.1) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Numerator: | ||||
Net income attributable to Hubbell Incorporated | $ 108.5 | $ 107.1 | $ 282 | $ 270.3 |
Less: Earnings allocated to participating securities | (0.3) | (0.4) | (0.9) | (1) |
Net income available to common shareholders | $ 108.2 | $ 106.7 | $ 281.1 | $ 269.3 |
Denominator: | ||||
Average number of common shares outstanding (in shares) | 54.3 | 54.2 | 54.3 | 54.1 |
Potential dilutive common shares (in shares) | 0.4 | 0.3 | 0.4 | 0.3 |
Average number of diluted shares outstanding (in shares) | 54.7 | 54.5 | 54.7 | 54.4 |
Earnings per share: | ||||
Basic (USD per share) | $ 1.99 | $ 1.97 | $ 5.18 | $ 4.97 |
Diluted (USD per share) | $ 1.98 | $ 1.96 | $ 5.14 | $ 4.95 |
Pension and Other Benefits - Ne
Pension and Other Benefits - Net Pension and Other Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
NET PERIODIC BENEFIT COST | $ 0 | $ 6.6 | $ 0 | $ 6.6 |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.2 | 0.3 | 0.7 | 0.8 |
Interest cost | 5.9 | 7.2 | 17.9 | 21.6 |
Expected return on plan assets | (9.1) | (8.5) | (27.4) | (25.4) |
Amortization of prior service cost | 0 | 0 | 0.1 | 0.1 |
Amortization of actuarial losses | 2.7 | 2.4 | 8.1 | 7.1 |
Settlement and curtailment losses | 0 | 6.6 | 0 | 6.6 |
NET PERIODIC BENEFIT COST | (0.3) | 8 | (0.6) | 10.8 |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0.1 | 0.2 | 0.4 | 0.6 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | (0.1) | 0 | (0.3) |
Amortization of actuarial losses | 0 | 0 | 0 | 0 |
Settlement and curtailment losses | 0 | 0 | 0 | 0 |
NET PERIODIC BENEFIT COST | $ 0.1 | $ 0.1 | $ 0.4 | $ 0.3 |
Pension and Other Benefits - Na
Pension and Other Benefits - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2021 | |
Pension Benefits | Foreign Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 0.1 | |
Forecast | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement of multi-employer pension plan | $ 5 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 80.5 | $ 82.1 |
Provision | 8.2 | 10 |
Expenditures/payments/other | (15) | (10.2) |
Ending balance | $ 73.7 | $ 81.9 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accounts receivable, net | $ 798.3 | $ 634.7 | |
Accounts receivable, allowances | 11.6 | 12.5 | |
Increase (decrease) in accounts receivable, allowances | (0.9) | ||
Available for sale debt securities | 58.1 | 57.7 | |
Available for sale debt securities, amortized cost | 57.2 | 56.4 | |
Available for sale debt securities, allowance for credit losses | 0 | ||
Available for sale debt securities, unrealized losses | 0.1 | 0.1 | |
Available for sale debt securities with unrealized losses, fair value | 11.4 | 6.1 | |
Trading securities | 23.9 | 22.7 | |
Purchase of trading securities related to deferred compensation plans | 2.5 | $ 2.7 | |
Proceeds from securities sold | 3 | $ 2 | |
Long-term debt | 1,434.9 | 1,436.9 | |
Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | 1,434.9 | 1,436.9 | |
Long-term debt, fair value | $ 1,540 | $ 1,569.5 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities by Hierarchy Level (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | $ 58.1 | $ 57.7 |
Trading securities | 23.9 | 22.7 |
Deferred compensation plan liabilities | (23.9) | (22.7) |
Derivatives: | ||
Forward exchange contracts-Assets | 0.5 | |
Forward exchange contracts-(Liabilities) | (0.1) | (0.8) |
TOTAL | 109.4 | 83.5 |
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 | 23.9 | 22.7 |
Deferred compensation plan liabilities | (23.9) | (22.7) |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | |
Forward exchange contracts-(Liabilities) | 0 | 0 |
TOTAL | 50.9 | 26.6 |
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 | 58.1 | 57.7 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0.5 | |
Forward exchange contracts-(Liabilities) | (0.1) | (0.8) |
TOTAL | 58.5 | 56.9 |
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 | 0 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | |
Forward exchange contracts-(Liabilities) | 0 | 0 |
TOTAL | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 50.9 | 26.6 |
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] | ||
Money market funds | 50.9 | 26.6 |
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] | ||
Money market funds | 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] | ||
Money market funds | $ 0 | $ 0 |
Restructuring Costs and Other -
Restructuring Costs and Other - By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1.4 | $ 3.3 | $ 3.5 | $ 12.5 |
Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1 | 3.2 | 2.9 | 10.2 |
Selling & administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.4 | 0.1 | 0.6 | 2.3 |
Electrical Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1.2 | 1.8 | 2.7 | 6.4 |
Electrical Solutions | Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1 | 1.7 | 2.3 | 4.4 |
Electrical Solutions | Selling & administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.2 | 0.1 | 0.4 | 2 |
Utility Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.2 | 1.5 | 0.8 | 6.1 |
Utility Solutions | Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0 | 1.5 | 0.6 | 5.8 |
Utility Solutions | Selling & administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0.2 | $ 0 | $ 0.2 | $ 0.3 |
Restructuring Costs and Other_2
Restructuring Costs and Other - Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/21 | $ 10.6 | |||
Pre-tax Restructuring Costs | $ 1.4 | $ 3.3 | 3.5 | $ 12.5 |
Utilization and Foreign Exchange | (8.4) | |||
Ending Accrued Restructuring Balance 9/30/2021 | 5.7 | 5.7 | ||
2021 Restructuring Actions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/21 | 0 | |||
Pre-tax Restructuring Costs | 0.7 | |||
Utilization and Foreign Exchange | (0.5) | |||
Ending Accrued Restructuring Balance 9/30/2021 | 0.2 | 0.2 | ||
2021 Restructuring Actions | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/21 | 0 | |||
Pre-tax Restructuring Costs | 0.6 | |||
Utilization and Foreign Exchange | (0.4) | |||
Ending Accrued Restructuring Balance 9/30/2021 | 0.2 | 0.2 | ||
2021 Restructuring Actions | Asset write-downs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/21 | 0 | |||
Pre-tax Restructuring Costs | 0 | |||
Utilization and Foreign Exchange | 0 | |||
Ending Accrued Restructuring Balance 9/30/2021 | 0 | 0 | ||
2021 Restructuring Actions | Facility closure and other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/21 | 0 | |||
Pre-tax Restructuring Costs | 0.1 | |||
Utilization and Foreign Exchange | (0.1) | |||
Ending Accrued Restructuring Balance 9/30/2021 | 0 | 0 | ||
2020 and Prior Restructuring Actions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/21 | 10.6 | |||
Pre-tax Restructuring Costs | 2.8 | |||
Utilization and Foreign Exchange | (7.9) | |||
Ending Accrued Restructuring Balance 9/30/2021 | 5.5 | 5.5 | ||
2020 and Prior Restructuring Actions | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/21 | 8.9 | |||
Pre-tax Restructuring Costs | 0.3 | |||
Utilization and Foreign Exchange | (5.2) | |||
Ending Accrued Restructuring Balance 9/30/2021 | 4 | 4 | ||
2020 and Prior Restructuring Actions | Asset write-downs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/21 | 0 | |||
Pre-tax Restructuring Costs | 0 | |||
Utilization and Foreign Exchange | 0 | |||
Ending Accrued Restructuring Balance 9/30/2021 | 0 | 0 | ||
2020 and Prior Restructuring Actions | Facility closure and other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/21 | 1.7 | |||
Pre-tax Restructuring Costs | 2.5 | |||
Utilization and Foreign Exchange | (2.7) | |||
Ending Accrued Restructuring Balance 9/30/2021 | $ 1.5 | $ 1.5 |
Restructuring Costs and Other_3
Restructuring Costs and Other - Summary of Costs (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | $ 32.8 | |
Costs incurred | 3.5 | $ 24.1 |
Remaining costs at 9/30/2021 | 5.2 | |
2021 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 2.5 | |
Costs incurred | 0.7 | 0 |
Remaining costs at 9/30/2021 | 1.8 | |
2021 Restructuring Actions | Electrical Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 2.5 | |
Costs incurred | 0.7 | 0 |
Remaining costs at 9/30/2021 | 1.8 | |
2021 Restructuring Actions | Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 0 | |
Costs incurred | 0 | 0 |
Remaining costs at 9/30/2021 | 0 | |
2020 and Prior Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 30.3 | |
Costs incurred | 2.8 | 24.1 |
Remaining costs at 9/30/2021 | 3.4 | |
2020 and Prior Restructuring Actions | Electrical Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 20 | |
Costs incurred | 2 | 16 |
Remaining costs at 9/30/2021 | 2 | |
2020 and Prior Restructuring Actions | Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 10.3 | |
Costs incurred | 0.8 | $ 8.1 |
Remaining costs at 9/30/2021 | $ 1.4 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Sep. 30, 2021 | Apr. 02, 2021 | Mar. 12, 2021 | Dec. 31, 2020 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 1,434.9 | $ 1,436.9 | ||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | 1,434.9 | $ 1,436.9 | ||
Senior Notes | Senior notes at 3.625% | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.625% | 3.625% | ||
Long-term debt | $ 0 | $ 299.2 | ||
Senior Notes | Senior notes at 3.35% | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.35% | |||
Long-term debt | $ 397 | 396.5 | ||
Senior Notes | Senior notes at 3.15% | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.15% | |||
Long-term debt | $ 296.9 | 296.4 | ||
Senior Notes | Senior notes at 3.50% | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 3.50% | |||
Long-term debt | $ 445.3 | 444.8 | ||
Senior Notes | Senior notes at 2.300% | ||||
Debt Instrument [Line Items] | ||||
Interest rate, stated percentage | 2.30% | 2.30% | ||
Long-term debt | $ 295.7 | $ 0 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Narrative (Details) - USD ($) $ in Millions | Apr. 02, 2021 | Mar. 12, 2021 | Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 |
Debt Instrument [Line Items] | |||||||
Loss on extinguishment of debt | $ 0 | $ 0 | $ (16.8) | $ 0 | |||
Short-term debt outstanding | $ 128.9 | $ 128.9 | $ 153.1 | ||||
2021 Credit Facility | 2021 Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Debt term | 5 years | ||||||
Line of credit, maximum borrowing capacity | $ 750 | ||||||
Line of credit facility, accordion feature, higher borrowing capacity option | 1,250 | ||||||
Maximum subsidiary borrowings | $ 75 | ||||||
Line of credit facility covenants maximum debt to capitalization percentage | 65.00% | ||||||
2021 Credit Facility | Letter of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Line of credit, maximum borrowing capacity | $ 50 | ||||||
Senior Notes | Senior notes at 2.300% | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 2.30% | 2.30% | 2.30% | ||||
Face amount | $ 300 | ||||||
Proceeds from offering | $ 295.5 | ||||||
Senior Notes | Senior notes at 3.625% | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate, stated percentage | 3.625% | 3.625% | |||||
Debt instrument, amount paid | $ 300 | ||||||
Loss on extinguishment of debt | (16.8) | ||||||
Cash premium from extinguishment of debt | $ 16 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 1 Months Ended | 9 Months Ended |
Feb. 28, 2021$ / sharesshares | Sep. 30, 2021installmentshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares authorized (shares) | 9,700,000 | |
Restricted Stock Awards Service Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of installments | installment | 3 | |
Shares granted (shares) | 67,166 | |
Shares granted (USD per share) | $ / shares | $ 163.26 | |
Restricted Stock Awards Service Condition | Vesting Period One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Restricted Stock Awards Service Condition | Vesting Period Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Restricted Stock Awards Service Condition | Vesting Period Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Stock Appreciation Rights SARS | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of installments | installment | 3 | |
Shares granted (shares) | 182,441 | |
Award vesting period | 3 years | |
Award, expiration period | 10 years | |
Expected Term | 5 years 6 months | |
Stock Appreciation Rights SARS | Vesting Period One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Stock Appreciation Rights SARS | Vesting Period Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Stock Appreciation Rights SARS | Vesting Period Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 33.33% | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award performance period | 3 years | |
Performance Shares, Market Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (shares) | 15,741 | |
Shares granted (USD per share) | $ / shares | $ 198.89 | |
Award performance period | 3 years | |
Performance based criteria plan payout percentage, target | 100.00% | |
Expected Term | 3 years | |
Performance Shares, Market Condition | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 0.00% | |
Performance Shares, Market Condition | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 200.00% | |
Performance Shares, Performance Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (shares) | 31,543 | |
Shares granted (USD per share) | $ / shares | $ 151.92 | |
Award performance period | 3 years | |
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 | 200.00% | |
Performance Shares, Vesting on Compounded Annual Growth Rate of Net Sales | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 50.00% | |
Performance Shares, Vesting on Operating Profit Margin | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting percentage | 50.00% |
Stock-Based Compensation - SARS
Stock-Based Compensation - SARS Fair Value Assumptions (Details) - Stock Appreciation Rights SARS | 1 Months Ended |
Feb. 28, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Dividend Yield | 2.40% |
Expected Volatility | 26.50% |
Risk Free Interest Rate | 0.60% |
Expected Term | 5 years 6 months |
Weighted Avg. Grant Date Fair Value of 1 SAR (in usd per share) | $ 29.43 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares, Market Condition (Details) - Performance Shares, Market Condition | 1 Months Ended |
Feb. 28, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Price (USD per share) | $ 163.26 |
Expected Dividend Yield | 2.40% |
Expected Volatility | 40.60% |
Risk Free Interest Rate | 0.20% |
Expected Term | 3 years |
Shares granted (USD per share) | $ 198.89 |
Stock-Based Compensation - Pe_2
Stock-Based Compensation - Performance Shares, Performance Condition (Details) - Performance Shares, Performance Condition | 1 Months Ended |
Feb. 28, 2021$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Shares granted (USD per share) | $ 151.92 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based criteria plan payout percentage | 0.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based criteria plan payout percentage | 200.00% |
Subsequent Events (Details)
Subsequent Events (Details) - Commercial and Industrial Lighting business - Disposal Group, Not Discontinued Operations - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Oct. 26, 2021 | |
Subsequent Event [Line Items] | ||
Disposal, revenue | $ 515 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Disposal, consideration | $ 350 |