Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 08, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Current Fiscal Year End Date | --12-31 | ||
Document Period End Date | Dec. 31, 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 Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 10,107,258,151 | ||
Entity Common Stock, Shares Outstanding | 54,409,067 | ||
Documents Incorporated by Reference | Portions of the definitive proxy statement for the registrant's 2022 annual meeting of shareholders to be filed with the Securities and Exchange Commission (the “SEC”), are incorporated by reference in answer to Part III of this Form 10-K. | ||
Entity Central Index Key | 0000048898 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Audit Information [Abstract] | |
Auditor Firm ID | 238 |
Auditor Name | PricewaterhouseCoopers LLP |
Auditor Location | Hartford, Connecticut |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Net sales | $ 4,194.1 | $ 3,682.5 | $ 3,946.6 |
Cost of goods sold | 3,042.6 | 2,596.7 | 2,775 |
Gross profit | 1,151.5 | 1,085.8 | 1,171.6 |
Selling & administrative expenses | 619.2 | 591.3 | 644.9 |
Operating income | 532.3 | 494.5 | 526.7 |
Gain (Loss) on disposition of business | (6.9) | 0 | 21.7 |
Loss on extinguishment of debt | (16.8) | 0 | 0 |
Pension charge | 0 | (7.6) | 0 |
Interest expense, net | (54.7) | (60.1) | (68.6) |
Investment income | 0 | 0 | 1.5 |
Other Income (expense), net | 5.4 | (2.3) | (12.1) |
Total other expense | (73) | (70) | (57.5) |
Income from continuing operations before income taxes | 459.3 | 424.5 | 469.2 |
Provision for income taxes | 88.2 | 89.8 | 101.2 |
Net income from continuing operations | 371.1 | 334.7 | 368 |
Less: Net income from continuing operations attributable to noncontrolling interest | (6.1) | (4.7) | (6.5) |
Net income from continuing operations attributable to Hubbell Incorporated | 365 | 330 | 361.5 |
Income from discontinued operations, net of tax | 34.5 | 21.2 | 39.4 |
Net income attributable to Hubbell Incorporated | $ 399.5 | $ 351.2 | $ 400.9 |
Earnings per share | |||
Basic earnings per share from continuing operations (USD per share) | $ 6.70 | $ 6.07 | $ 6.63 |
Basic earnings per share from discontinued operations (USD per share) | 0.63 | 0.39 | 0.72 |
Basic earnings per share (USD per share) | 7.33 | 6.46 | 7.35 |
Diluted earnings per share from continuing operations (USD per share) | 6.66 | 6.04 | 6.59 |
Diluted earnings per share from discontinued operations (USD per share) | 0.62 | 0.39 | 0.72 |
Diluted earnings per share (USD per share) | $ 7.28 | $ 6.43 | $ 7.31 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 405.6 | $ 355.9 | $ 407.4 |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | (11.5) | 12.3 | 3.7 |
Reclassification of currency translation gains included in net income | 0 | 0 | (7.7) |
Defined benefit pension and post-retirement plans, net of taxes of $(3.2), $2.9 and $5.3 | 9.2 | (8.8) | (14.5) |
Unrealized gain (loss) on investments, net of taxes of $0.1, $(0.1) and $(0.2) | (0.4) | 0.4 | 2.6 |
Unrealized gains (losses) on cash flow hedges, net of taxes of $(0.4), $0.5 and $(0.5) | 1.1 | (0.2) | (1.3) |
Other comprehensive income (loss) | (1.6) | 3.7 | (17.2) |
Comprehensive income | 404 | 359.6 | 390.2 |
Less: Comprehensive income attributable to noncontrolling interest | 6.1 | 4.7 | 6.5 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO HUBBELL | $ 397.9 | $ 354.9 | $ 383.7 |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | |||
Pension and post retirement benefit plans' service costs and net actuarial (losses) gains tax impact | $ (3.2) | $ 2.9 | $ 5.3 |
Unrealized gain (loss) on investment tax impact | 0.1 | (0.1) | (0.2) |
Unrealized gain or loss on cash flow hedge tax impact | $ (0.4) | $ 0.5 | $ (0.5) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Current Assets | ||
Cash and cash equivalents | $ 286.2 | $ 258.6 |
Short-term investments | 9.4 | 9.3 |
Accounts receivable | 675.3 | 553.3 |
Inventories, net | 662.1 | 526.7 |
Other current assets | 66.8 | 71.8 |
Assets held for sale - current | 179.5 | 167.9 |
Total Current Assets | 1,879.3 | 1,587.6 |
Property, Plant, and Equipment, net | 459.5 | 438.7 |
Other Assets | ||
Investments | 69.1 | 71.1 |
Goodwill | 1,871.3 | 1,873.1 |
Other intangible assets, net | 681.5 | 770.6 |
Other long-term assets | 143.7 | 159.9 |
Assets held for sale - non-current | 177.1 | 184.1 |
TOTAL ASSETS | 5,281.5 | 5,085.1 |
Current Liabilities | ||
Short-term debt and current portion of long-term debt | 9.7 | 153.1 |
Accounts payable | 532.8 | 339.2 |
Accrued salaries, wages and employee benefits | 94.7 | 84.4 |
Accrued insurance | 73.3 | 67.2 |
Other accrued liabilities | 263.4 | 224.6 |
Liabilities held for sale - current | 91.3 | 79.7 |
Total Current Liabilities | 1,065.2 | 948.2 |
Long-term Debt | 1,435.5 | 1,436.9 |
Other Non-Current Liabilities | 521.3 | 596.8 |
Liabilities held for sale - non-current | 18.8 | 17.8 |
TOTAL LIABILITIES | 3,040.8 | 2,999.7 |
Commitments and Contingencies | ||
Hubbell Incorporated Shareholders’ Equity | ||
Common Stock - par value $.01, Authorized 200,000,000 shares, outstanding 54,382,659 and 54,514,172 shares | 0.6 | 0.6 |
Additional paid-in capital | 0 | 4.9 |
Retained earnings | 2,560 | 2,393.7 |
Accumulated other comprehensive loss | (330.8) | (329.2) |
Total Hubbell Incorporated Shareholders’ Equity | 2,229.8 | 2,070 |
Noncontrolling interest | 10.9 | 15.4 |
TOTAL EQUITY | 2,240.7 | 2,085.4 |
TOTAL LIABILITIES AND EQUITY | $ 5,281.5 | $ 5,085.1 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 10.6 | $ 10.6 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 200,000,000 | 200,000,000 |
Common stock, shares, outstanding (shares) | 54,518,047 | 54,382,659 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Cash Flows from Operating Activities of Continuing Operations | |||
Net income from continuing operations | $ 371.1 | $ 334.7 | $ 368 |
Adjustments to reconcile net income from continuing operations to net cash provided by operating activities, net of acquisitions: | |||
Depreciation and amortization | 149.1 | 144.5 | 137.9 |
Deferred income taxes | 9.2 | 1.4 | 4 |
Stock-based compensation | 17.5 | 21.9 | 14.5 |
Provision for bad debt expense | 1.3 | 6.7 | 1.7 |
Loss (Gain) on disposition of business | 6.9 | 0 | (21.7) |
Loss on extinguishment of debt | 16.8 | 0 | 0 |
Pension charge | 0 | 7.6 | 0 |
(Gain) loss on sale of assets | (4.7) | 0.2 | (0.6) |
Changes in assets and liabilities, net of acquisitions: | |||
(Increase) decrease in accounts receivable | (124.8) | 41.7 | 35.4 |
(Increase) decrease in inventories | (138.9) | 45.8 | (6.3) |
Increase (decrease) in accounts payable | 195.1 | 20.7 | (29.3) |
Increase (decrease) in current liabilities | 27.6 | (26.9) | 3.8 |
Changes in other assets and liabilities, net | (14.9) | 19.2 | 0.9 |
Contributions to qualified defined benefit pension plans | (0.1) | (23.2) | (10.4) |
Other, net | 2.5 | 8.6 | 18.9 |
NET CASH PROVIDED BY OPERATING ACTIVITIES FROM CONTINUING OPERATIONS | 513.7 | 602.9 | 516.8 |
Cash Flows from Investing Activities of Continuing Operations | |||
Capital expenditures | (90.2) | (82.8) | (86.7) |
Acquisitions, net of cash acquired | 0.1 | (239.6) | (70.8) |
Proceeds from disposal of business, net of cash | 8.5 | 0 | 33.6 |
Purchases of available-for-sale investments | (11.4) | (35.1) | (14.2) |
Proceeds from sales of available-for-sale investments | 11.5 | 28.9 | 12.5 |
Other, net | 9.4 | 5.3 | 3.7 |
NET CASH USED IN INVESTING ACTIVITIES FROM CONTINUING OPERATIONS | (72.1) | (323.3) | (121.9) |
Cash Flows from Financing Activities of Continuing Operations | |||
Issuance of long-term debt | 298.7 | 225 | 0 |
Payment of long-term debt | (300) | (331.3) | (225) |
Issuance of short-term debt | 8.1 | 125.5 | 0.7 |
Payment of short-term debt | (151.6) | (3.6) | (0.8) |
Payment of dividends | (216.9) | (201.4) | (186.6) |
Make whole payment for retirement of long-term debt | (16) | 0 | 0 |
Debt issuance cost | (4.5) | 0 | 0 |
Acquisition of common shares | (11.2) | (41.3) | (35) |
Other | (39.6) | (17.1) | (24.3) |
NET CASH PROVIDED (USED) IN FINANCING ACTIVITIES FROM CONTINUING OPERATIONS | (433) | (244.2) | (471) |
Discontinued Operations: | |||
Cash provided by operating activities | 30.1 | 45.1 | 74.8 |
Cash used by investing activities | (5.7) | (5.5) | (7) |
Cash provided by discontinued operations | 24.4 | 39.6 | 67.8 |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (3) | 2.6 | 1.3 |
Increase (Decrease) in cash, cash equivalents, and restricted cash | 30 | 77.6 | (7) |
Cash and cash equivalents, beginning of year | 258.6 | 179.8 | 187.4 |
Cash and cash equivalents within assets held for sale, beginning of year | 1 | 2.2 | 1.6 |
Less: Restricted cash, included in Other Assets | 2.7 | 0 | 0 |
Less: Cash and cash equivalents within assets held for sale, end of year | 0.7 | 1 | 2.2 |
Cash and cash equivalents, end of year | $ 286.2 | $ 258.6 | $ 179.8 |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Total Hubbell Shareholders' Equity | Total Hubbell Shareholders' EquityCumulative Effect, Period of Adoption, Adjustment | Non- controlling interest | |
Accounting Standards Update [Extensible List] | Accounting Standards Update 2016-13 [Member] | |||||||||
Beginning of period at Dec. 31, 2018 | $ 0.6 | $ 1.3 | $ 2,064.4 | $ (285.7) | $ 1,780.6 | $ 18.3 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | $ 407.4 | 400.9 | 400.9 | 6.5 | ||||||
Other comprehensive (loss) income | (17.2) | (17.2) | (17.2) | |||||||
Stock-based compensation | 16.4 | 16.4 | ||||||||
Reclassification of stranded tax effects | (30) | 30 | (30) | |||||||
Acquisition and surrender of common shares | [1] | (18.3) | (28.9) | (47.2) | ||||||
Cash dividends declared | (187) | (187) | ||||||||
Dividends to noncontrolling interest | (11.4) | |||||||||
Directors deferred compensation | 0.6 | 0.6 | ||||||||
End of period at Dec. 31, 2019 | 0.6 | 0 | 2,279.4 | $ (1) | (332.9) | 1,947.1 | $ (1) | 13.4 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 355.9 | 351.2 | 351.2 | 4.7 | ||||||
Other comprehensive (loss) income | 3.7 | 3.7 | 3.7 | |||||||
Stock-based compensation | 23.9 | 23.9 | ||||||||
Acquisition and surrender of common shares | [1] | (17.8) | (34.1) | (51.9) | ||||||
Cash dividends declared | (201.8) | (201.8) | ||||||||
Dividends to noncontrolling interest | (2.7) | |||||||||
Directors deferred compensation | (1.2) | (1.2) | ||||||||
End of period at Dec. 31, 2020 | 2,085.4 | 0.6 | 4.9 | 2,393.7 | (329.2) | 2,070 | 15.4 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net income | 405.6 | 399.5 | 399.5 | 6.1 | ||||||
Other comprehensive (loss) income | (1.6) | (1.6) | (1.6) | |||||||
Stock-based compensation | 18.6 | 18.6 | ||||||||
Acquisition and surrender of common shares | [1] | (24.2) | (15.8) | (40) | ||||||
Cash dividends declared | (217.4) | (217.4) | ||||||||
Dividends to noncontrolling interest | (10.6) | |||||||||
Directors deferred compensation | 0.7 | 0.7 | ||||||||
End of period at Dec. 31, 2021 | $ 2,240.7 | $ 0.6 | $ 0 | $ 2,560 | $ (330.8) | $ 2,229.8 | $ 10.9 | |||
[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 $15.8 million, $34.1 million and $28.9 million in 2021, 2020 and 2019, respectively, reflects this accounting treatment. |
Consolidated Statement of Cha_2
Consolidated Statement of Changes in Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Common stock, dividends declared (USD per share) | $ 3.99 | $ 3.71 | $ 3.43 | |
Retained Earnings | ||||
Acquisition and surrender of common shares | [1] | $ 15.8 | $ 34.1 | $ 28.9 |
[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 $15.8 million, $34.1 million and $28.9 million in 2021, 2020 and 2019, respectively, reflects this accounting treatment. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). On 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 $350 million, subject to customary adjustments with respect to working capital and net indebtedness. The Commercial and Industrial Lighting business had sales of $509.4 million in 2021 as part of the Electrical Solutions segment and designs, manufactures, and sells LED lighting and control solutions for commercial and industrial customers. As a result of the agreement, the Commercial and Industrial Lighting business met the criteria set forth in ASC 205-20 to be presented as a discontinued operation and is classified as held for sale. The Commercial and Industrial Lighting business' results of operations and the related cash flows have been reclassified to income from discontinued operations in the Consolidated Statements of Income and cash flows from discontinued operations in the Consolidated Statements of Cash Flows, respectively, for all periods presented. See Note 2, Discontinued Operations, to the Consolidated Financial Statements for further information. Principles of Consolidation The Consolidated Financial Statements include all wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The Company participates in two joint ventures that have been consolidated in accordance with the consolidation accounting guidance. An analysis is performed to determine which reporting entity, if any, has a controlling financial interest in a variable interest entity (“VIE”) with a primarily qualitative analysis. The qualitative analysis is based on identifying the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance (the “power criterion”) and the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE (the “losses/benefit criterion”). The party that meets both these criteria is deemed to have a controlling financial interest. The party with the controlling financial interest is considered to be the primary beneficiary and as a result is required to consolidate the VIE. The Company has a 50% interest in a joint venture in Hong Kong, established as Hubbell Asia Limited (“HAL”). The principal objective of HAL is to manage the operations of its wholly-owned manufacturing company in China. Under the accounting guidance, the Company is the primary beneficiary of HAL and as a result consolidates HAL. This determination is based on the fact that HAL’s sole business purpose is to manufacture product exclusively for the Company (the power criterion) and the Company is financially responsible for ensuring HAL maintains a fixed operating margin (the losses/benefit criterion). The consolidation of HAL is not material to the Company’s consolidated financial statements. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements. Actual results could differ from the estimates that are used. 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. Assets and Liabilities Held for Sale The Company classifies assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company's control extend the period of time required to sell the disposal group beyond one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. The Company initially measures a disposal group that is classified as held for sale at the lower of its carrying value or fair value less any costs to sell. Any loss resulting from this measurement is recognized in the period in which the held for sale criteria are met. Conversely, gains are not recognized on the sale of a disposal group until the date of sale. The Company assesses the fair value of a disposal group, less any costs to sell, each reporting period it remains classified as held for sale and reports any subsequent changes as an adjustment to the carrying value of the disposal group, as long as the new carrying value does not exceed the carrying value of the disposal group at the time it was initially classified as held for sale. Upon determining that a disposal group meets the criteria to be classified as held for sale, the Company reports the assets and liabilities of the disposal group, if material, in the line items assets held for sale and liabilities held for sale in the consolidated statements of financial position. Refer to Note 2, "Discontinued Operations," of the notes to Consolidated Financial Statements for further information. In conjunction with the C&I Lighting Business being classified as held for sale, depreciation and amortization ceased. Revenue Recognition The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions in the Utility Solutions segment recognized upon delivery of the product at the contractually specified destination. Revenue from service contracts and post-shipment performance obligations is approximately three percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the 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 Consolidated Balance Sheet. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Consolidated Statement of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Consolidated Statement of Income on a straight line basis over the expected term of the contract. The Company has certain arrangements that require us to estimate at the time of sale the amounts of variable consideration that should not be recorded as revenue as certain amounts are not expected to be collected from customers, as well as an estimate of the value of the product to be returned. The Company principally relies on historical experience, specific customer agreements and anticipated future trends to estimate these amounts at the time of shipment and to reduce the transaction price. These arrangements include sales discounts and allowances based on sales volumes, specific programs and special pricing allowances, and returned goods, as are customary in the electrical products industry. Customer returns have historically been approximately 1% of gross sales. Shipping and Handling Costs The Company records shipping and handling costs as part of Cost of goods sold in the Consolidated Statement of Income. Foreign Currency Translation The assets and liabilities of international subsidiaries are translated to U.S. dollars at exchange rates in effect at the end of the year, and income and expense items are translated at average exchange rates in effect during the year. The effects of exchange rate fluctuations on the translated amounts of foreign currency assets and liabilities are included as translation adjustments in Accumulated other comprehensive loss within Hubbell shareholders’ equity. Gains and losses from foreign currency transactions are included in results of operations. Cash and Cash Equivalents The carrying value of cash equivalents approximates fair value. Cash equivalents consist of highly liquid investments with original maturities to the Company of three months or less. Investments Investments in debt and equity securities are classified by individual security as available-for-sale, held-to-maturity or trading securities. Our available-for-sale securities, consisting of municipal bonds, are carried on the balance sheet at fair value with current period adjustments to carrying value recorded in Accumulated other comprehensive loss within Hubbell shareholders’ equity, net of tax. Realized gains and losses are recorded in income in the period of sale. The Company’s trading securities are carried on the balance sheet at fair value and consist primarily of debt and equity mutual funds. Gains and losses associated with these trading securities are reflected in the results of operations. The Company did not have any investments classified as held-to-maturity as of December 31, 2021 and 2020. Accounts Receivable and Allowances Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. The allowance for doubtful accounts is based on an estimated amount of probable credit losses in existing accounts receivable. The allowance is calculated based upon a combination of historical write-off experience, fixed percentages applied to aging categories and specific identification based upon a review of past due balances and problem accounts. Account balances are charged off against the allowance when it is determined that internal collection efforts should no longer be pursued. The Company also maintains a reserve for credit memos and cash discounts which are principally calculated based upon historical experience, specific customer agreements, as well as anticipated future trends. Inventories Inventories are stated at the lower of cost or market value. Approximately 50% of total net inventory value is determined utilizing the last-in, first-out (LIFO) method of inventory accounting. The cost of foreign inventories and certain domestic inventories is determined utilizing average cost or first-in, first-out (FIFO) methods of inventory accounting. Reserves for excess and obsolete inventory are provided based on current assessments about future demand compared to on-hand quantities. Property, Plant, and Equipment Property, plant, and equipment values are stated at cost less accumulated depreciation. Maintenance and repair expenditures that do not significantly increase the life of an asset are charged to expense when incurred. Property, plant, and equipment placed in service prior to January 1, 1999 are depreciated over their estimated useful lives, principally, using accelerated methods. Assets placed in service subsequent to January 1, 1999 are depreciated over their estimated useful lives, using straight-line methods. Leasehold improvements are amortized over the shorter of their economic lives or the lease term. Gains and losses arising on the disposal of property, plant and equipment are included in Operating income in the Consolidated Statement of Income. Capitalized Computer Software Costs Capitalized computer software costs, net of amortization, were $10.8 million and $20.1 million at December 31, 2021 and 2020, respectively. This balance is reflected in Other long-term assets in the Consolidated Balance Sheet. Capitalized computer software is for internal use and costs primarily consist of purchased materials, external services and salary costs for personnel dedicated to the projects. Software is amortized on a straight-line basis over appropriate periods, generally between three Goodwill and Other Intangible Assets Goodwill represents purchase price in excess of fair values of the underlying net assets of acquired companies. Indefinite-lived intangible assets and goodwill are subject to annual impairment testing using the specific guidance and criteria described in the accounting guidance. The Company performs its goodwill impairment testing as of April 1st of each year, unless circumstances dictate the need for more frequent assessments. The accounting guidance provides entities an option of performing a qualitative assessment (a "step-zero" test) before performing a quantitative analysis. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the goodwill is not impaired, the entity would not need to proceed to quantitative goodwill impairment testing process as prescribed in the guidance. The Company applied the "step-zero" test to one of its five reporting units. Based on that qualitative assessment, the Company concluded it was more-likely-than-not that the fair value of this reporting unit exceeded their carrying value and therefore, further quantitative analysis was not required. For the other four reporting units the Company has elected to utilize the quantitative goodwill impairment testing process as permitted in the accounting guidance, by comparing the fair value of the Company's reporting units to their carrying values. If the fair value of the reporting unit exceeds its carrying value, no impairment exists. Goodwill impairment testing requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions, including assumptions about secular economic and market conditions, such as the potential continuing effects of the COVID-19 pandemic. We use internal discounted cash flow models to estimate fair value. These cash flow estimates are derived from historical experience, third party end market data, and future long-term business plans and include assumptions on future sales growth, gross margin, operating margin, terminal growth rate, and the application of an appropriate discount rate. Changes in these estimates and assumptions could affect the determination of fair value and/or goodwill impairment for each reporting unit. The Company believes that its estimated aggregate fair value of its reporting units is reasonable when compared to the Company's market capitalization on the valuation date. As of April 1, 2021, the impairment testing resulted in implied fair values for each reporting unit that substantially exceeded the reporting unit's carrying value, including goodwill. The Company did not have any reporting units at risk of failing the quantitative impairment test as the excess of the implied fair value significantly exceeded the carrying value of the reporting units. Additionally, the Company did not have any reporting units with zero or negative carrying amounts. The Company has not recorded any goodwill impairments since the initial adoption of the accounting guidance in 2002. The Company’s intangible assets consist primarily of customer relationships, tradenames, developed technology and patents. Intangible assets with definite lives are amortized over periods generally ranging from 5-30 years. The Company amortizes intangible assets with definite lives using either an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets' useful life, or using a straight line method. Approximately 80% of the gross value of definite-lived intangible assets follow an accelerated amortization method. These definite lived intangibles are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The Company did not record any material impairments related to its definite lived intangible assets in 2021, 2020 or 2019. The Company also has some tradenames that are considered to be indefinite-lived intangible assets. These indefinite-lived intangible assets are not amortized and are tested for impairment annually, unless circumstances dictate the need for more frequent assessment. The accounting guidance related to testing indefinite-lived intangible assets for impairment provides entities an option of performing a qualitative assessment before calculating the fair value of the asset. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the asset is not impaired, the entity would not need to calculate the fair value of the asset. The Company performed the qualitative assessment which resulted in no impairment in 2021, 2020 and 2019. Other Long-Lived Assets The Company reviews depreciable long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such a change in circumstances occurs, the related estimated future undiscounted cash flows expected to result from the use of the asset group and its eventual disposition is compared to the carrying amount. If the sum of the expected cash flows is less than the carrying amount, an impairment charge is recorded. The impairment charge is measured as the amount by which the carrying amount exceeds the fair value of the asset. The fair value of impaired assets is determined using expected cash flow estimates, quoted market prices when available and appraisals as appropriate. The Company did not record any material impairment charges in 2021, 2020 or 2019. Leases We determine if an arrangement is a lease at inception. Operating leases are included as ROU assets within other long-term assets, other accrued liabilities, and other non-current liabilities in our Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, other accrued liabilities, and other non-current liabilities. The Company's finance leases are immaterial. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use an implicit rate when readily determinable. For leases existing as of January 1, 2019, we have elected to use the remaining lease term as of the adoption date in determining the incremental borrowing rate. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for our vehicle leases, we apply a portfolio approach regarding the assumed lease term. Accrued Insurance The Company retains a significant portion of the risks associated with workers’ compensation, medical, automobile and general liability insurance. The Company estimates self-insurance liabilities using a number of factors, including historical claims experience, demographic factors, and other actuarial assumptions. The accrued liabilities associated with these programs are based on the Company’s estimate of the ultimate costs to settle known claims as well as claims incurred but not reported as of the balance sheet date. The Company periodically reviews the assumptions with a third party actuary to determine the adequacy of these self-insurance reserves. Accrued Warranty The Company offers product warranties which cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known or as historical experience indicates. Income Taxes The Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The IRS and other tax authorities routinely examine the Company’s tax returns. These audits can involve complex issues which may require an extended period of time to resolve. The Company makes adequate provisions for best estimates of exposures on previously filed tax returns. Deferred income taxes are recognized for the tax consequence of differences between financial statement carrying amounts and the tax basis of assets and liabilities by applying the currently enacted statutory tax rates in accordance with the accounting guidance for income taxes. The effect of a change in statutory tax rates is recognized in the period that includes the enactment date. Additionally, deferred tax assets are required to be reduced by a valuation allowance if it is more-likely-than-not that a portion or all of the deferred tax asset will not be realized. The Company uses factors to assess the likelihood of realization of deferred tax assets such as the forecast of future taxable income and available tax planning that could be implemented to realize the deferred tax assets. In addition, the accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of the tax position taken or expected to be taken in a tax return. For any amount of benefit to be recognized, it must be determined that it is more-likely-than-not that a tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The amount of benefit to be recognized is based on the Company’s assertion of the most likely outcome resulting from an examination, including resolution of any related appeals or litigation processes. Companies are required to reflect only those tax positions that are more-likely-than-not to be sustained. See Note 14 — Income Taxes for additional information. Research and Development Research and development expenditures represent costs to discover and/or apply new knowledge in developing a new product, process, or in bringing about a significant improvement to an existing product or process. Research and development expenses are recorded as a component of Cost of goods sold. Expenses for research and development were approximately 3% of Cost of goods sold in each of 2021, 2020 and in 2019. Retirement Benefits The Company maintains various defined benefit pension plans for some of its U.S. and foreign employees. The accounting guidance for retirement benefits requires the Company to recognize the funded status of its defined benefit pension and postretirement plans as an asset or liability in the Consolidated Balance Sheet. Gains or losses, prior service costs or credits, and transition assets or obligations that have not yet been included in net periodic benefit cost as of the end of the year are recognized as components of Accumulated other comprehensive loss, net of tax, within Hubbell shareholders’ equity. The Company’s policy is to fund pension costs within the ranges prescribed by applicable regulations. In addition to providing defined benefit pension benefits, the Company provides health care and life insurance benefits for some of its active and retired employees. The Company’s policy is to fund these benefits through insurance premiums or as actual expenditures are made. See also Note 12 — Retirement Benefits. Earnings Per Share Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. As a result, the earnings per share accounting guidance requires the Company to use the two-class method for calculating earnings per share. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities. Basic earnings per share is calculated as net income available to common shareholders divided by the weighted average number of shares of common stock outstanding. Earnings per diluted share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding of common stock plus the incremental shares outstanding assuming the exercise of dilutive stock options, stock appreciation rights and performance shares. See also Note 19 — Earnings Per Share. Stock-Based Compensation The Company recognizes the grant-date fair value of all stock-based awards on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period). A stock-based award is considered vested for expense attribution purposes when the retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company generally recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The expense is recorded in Cost of goods sold and S&A expense in the Consolidated Statement of Income based on the recipients’ respective functions within the organization. The Company records deferred tax assets for awards that will result in deductions on its tax returns, based upon the amount of compensation cost recognized and the statutory tax rate in the jurisdiction in which it will receive a deduction. See also Note 18 — Stock-Based Compensation. 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 December 31, 2021. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This standard is effective for fiscal years beginning after December 15, 2021 and should be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On 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 $350 million, subject to customary adjustments with respect to working capital and net indebtedness. We have concluded the divestiture of this business represents a strategic shift that will have a major effect on our operations and financial results, and as a result, is reported as a discontinued operation in our Consolidated Financial Statements for all periods presented. The assets and liabilities of this business are also presented as held for sale in the Consolidated Balance Sheets. The Commercial and Industrial Lighting business was previously included in the Electrical Solutions segment. On February 1, 2022 we completed the sale of the Commercial and Industrial Lighting business to GE Current. Under the terms of the transaction, Hubbell and the buyer entered into a short-term supply agreement whereby the Company will act as a supplier of finished goods and component parts to the Commercial and industrial Lighting business. The following table presents the summarized components of income from discontinued operations, net of income taxes, for the Commercial and Industrial Lighting business: Year Ended December 31, (in millions) 2021 2020 2019 Net sales $ 509.4 $ 503.5 $ 644.5 Cost of goods sold 403.4 385.6 469.4 Gross profit 106.0 117.9 175.1 Selling & administrative expenses 88.5 85.1 111.2 Operating income 17.5 32.8 63.9 Other expense (4.1) (4.0) (12.7) Income from discontinued operations before income taxes 13.4 28.8 51.2 (Benefit) provision for income taxes (21.1) 7.6 11.8 Income from discontinued operations, net of taxes $ 34.5 $ 21.2 $ 39.4 Income from discontinued operations, net of taxes for the year ended December 31, 2021 includes pre-tax transaction and separation costs of $7.0 million and a one-time tax benefit of $25.1 million related to book-to-tax basis differences of the business. The following table presents balance sheet information for assets and liabilities held for sale: At December 31, (in millions) 2021 2020 Cash and cash equivalents $ 0.7 $ 1.0 Accounts receivable 83.1 81.3 Inventories, net 89.8 80.6 Other current assets 5.9 5.0 Assets held for sale - current $ 179.5 $ 167.9 Property, Plant, and Equipment, net 77.7 80.4 Goodwill 50.2 50.2 Other Intangible assets, net 37.3 40.0 Other long-term assets 11.9 13.5 Assets held for sale - non-current $ 177.1 $ 184.1 Accounts payable 50.2 38.8 Accrued salaries, wages and employee benefits 8.5 7.1 Accrued insurance 3.9 4.4 Other accrued liabilities 28.7 29.4 Liabilities held for sale - current $ 91.3 $ 79.7 Other Non-Current Liabilities 18.8 17.8 Liabilities held for sale - non-current $ 18.8 $ 17.8 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Approximately two-thirds of the Company's Net sales are to distributors who then sell directly into our end markets. Within the Utility Solutions segment, our businesses sell to distributors, with the majority of sales to the utility end markets. Our businesses within the Utility Solutions segment also sell directly into transmission and distribution utility markets. 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 and Note 2 - Discontinued Operations: Twelve Months Ended December 31, in millions 2021 2020 2019 Net sales Commercial and Industrial $ 1,150.1 $ 918.7 $ 1,013.1 Heavy Industrial 337.5 302.0 382.9 Residential and Retail 372.1 382.4 380.6 Total Electrical Solutions $ 1,859.7 $ 1,603.1 $ 1,776.6 Utility T&D Components 1,679.8 1,445.1 1,434.2 Utility Communications and Controls 654.6 634.3 735.8 Total Utility Solutions $ 2,334.4 $ 2,079.4 $ 2,170.0 TOTAL (1) $ 4,194.1 $ 3,682.5 $ 3,946.6 (1) Sales of the Company's Commercial and Industrial Lighting business are included in earnings from discontinued operations, net of tax, on the Company's Consolidated Statements of Operations in the years ended December 31, 2021, 2020, and 2019. See Note 2, Discontinued Operations for further information. The following table presents disaggregated third-party Net sales by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Twelve Months Ended December 31, in millions 2021 2020 2019 Net sales United States $ 1,604.9 $ 1,389.0 $ 1,509.1 International 254.8 214.1 267.5 Total Electrical Solutions $ 1,859.7 $ 1,603.1 $ 1,776.6 United States 2,204.9 1,967.9 2,037.0 International 129.5 111.5 133.0 Total Utility Solutions $ 2,334.4 $ 2,079.4 $ 2,170.0 TOTAL $ 4,194.1 $ 3,682.5 $ 3,946.6 Contract Balances Our contract liabilities consist of advance payments for products as well as deferred revenue on service obligations and extended warranties. The current portion of deferred revenue is included in Other accrued liabilities and the non-current portion of deferred revenue is included in Other non-current liabilities in the Consolidated Balance Sheet. Contract liabilities were $16.7 million as of December 31, 2021 compared to $29.8 million as of December 31, 2020. The $13.1 million decrease in our contract liabilities balance was primarily due to the recognition of $27.1 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2021, partially offset by a $14.0 million net increase in current year deferrals primarily due to timing of advance payments on certain orders. Impairment losses recognized on our receivables and contract assets were immaterial in the twelve months ended December 31, 2021. See Note 1 – Significant Accounting Policies in the Notes to Consolidated Financial Statements for additional information. Unsatisfied Performance Obligations The Company has elected the practical expedient to disclose only the value of unsatisfied performance obligations for contracts with an original expected length greater than one year. As of December 31, 2021, the Company had approximately $420 million of unsatisfied performance obligations for contracts with an original expected length of greater than one year, primarily relating to long-term contracts of the Aclara business (within the 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 2 years. |
Business Acquisitions and Dispo
Business Acquisitions and Dispositions | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions and Dispositions | Business Acquisitions and Dispositions 2020 Acquisitions In the fourth quarter of 2020 we completed the following acquisitions: The Company acquired all of the issued and outstanding shares of Armorcast Products Company, Inc. (“Armorcast”) for $136.3 million, net of cash acquired. Armorcast develops and manufactures polymer concrete and fiberglass products for the utility industry. Armorcast is reported in the Utility Solutions segment. We have recognized intangible assets of $51.2 million, primarily consisting of customer relationships and a tradename, and goodwill of $71.6 million as a result of this acquisition. The intangible assets will be amortized over a weighted average period of approximately 19 years. The Company acquired all of the issued and outstanding shares of Beckwith Electric Co., Inc. (“Beckwith”) for $54.7 million, net of cash acquired. Beckwith is a manufacturer and installer of protection relay and distribution control units used in electronic power systems. Beckwith is reported in the Utility Solutions segment. We have recognized intangible assets of $32.6 million, primarily consisting of customer relationships, technology and a tradename, and goodwill of $12.7 million as a result of this acquisition. The intangible assets will be amortized over a weighted average period of approximately 15 years. The Company acquired all of the issued and outstanding shares of AccelTex Solutions, LLC (“AccelTex”) for $45.1 million, net of cash acquired. AccelTex is a manufacturer of products and accessories for wireless networks. AccelTex is reported in the Electrical Solutions segment. We have recognized intangible assets of $19.4 million, primarily consisting of customer relationships and a tradename, and goodwill of $21.0 million as a result of this acquisition. The intangible assets will be amortized over a weighted average period of approximately 15 years. In the fourth quarter of 2020 the Company also completed a $1.6 million asset acquisition and recogni zed $1.0 million of goodwill as a result. These business acquisitions have been accounted for as business combinations and have resulted in the recognition of goodwill. The goodwill relates to a number of factors implied in the purchase price, including the future earnings and cash flow potential of the businesses as well as the complementary strategic fit and resulting synergies they bring to the Company’s existing operations. With the exception of tradenames, we amortize intangible assets using an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets' useful life. Tradenames are amortized on a straight-line basis. All of the goodwill associated with the 2020 acquisitions is deductible for tax purposes, except the goodwill associated with the acquisition of Beckwith. Allocation of Consideration Transferred to Net Assets Acquired The following table presents the determination of the fair value of identifiable assets acquired and liabilities assumed from the Company's 2020 acquisitions. Fair value est imates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company's results of operations. The following table summarizes the fair values of the assets acquired and liabilities assumed as of the respective date of acquisition for all transactions (in millions): Tangible assets acquired $ 64.7 Intangible assets 103.2 Goodwill 106.3 Net deferred taxes (8.8) Other liabilities assumed (27.8) Total Estimate of Consideration Transferred, Net of Cash Acquired $ 237.6 Cash used for the acquisition of businesses, net of cash acquired as reported in the Consolidated Statement of Cash Flows for the year ended December 31, 2021 is $0.1 million and for the year ended December 31, 2020 is $239.6 million and includes approximately $2.0 million of net working capital settlements relating to acquisitions completed in the previous year. Dispositions In August 2019, the Company completed the sale of Haefely Test, AG (“Haefely”) for $38.1 million. Haefely designs and manufactures high voltage test equipment and is based in Basel, Switzerland. The Haefely business was previously included within the Electrical Solutions segment. Upon disposition, the Haefely business had tangible assets of $32.3 million (primarily composed of cash, accounts receivable, inventories, and property, plant and equipment), goodwill of $3.1 million, total liabilities of $12.2 million (primarily composed of accounts payable, accrued expenses, and cash received in advance from customers) and a $7.7 million balance of cumulative currency translation adjustments recognized within Accumulated other comprehensive income. As a result of the sale of Haefely, we recognized a pre-tax gain of $21.7 million that is included in Total other expense in the Consolidated Statement of Income. 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 Consolidated Statement of Income. |
Receivables and Allowances
Receivables and Allowances | 12 Months Ended |
Dec. 31, 2021 | |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | |
Receivables and Allowances | Receivables and Allowances Receivables consist of the following components at December 31, (in millions): 2021 2020 Trade accounts receivable $ 695.7 $ 574.1 Non-trade receivables 24.9 21.7 Accounts receivable, gross 720.6 595.8 Allowance for credit memos, returns and cash discounts (34.7) (31.9) Allowance for doubtful accounts (10.6) (10.6) Total allowances (45.3) (42.5) ACCOUNTS RECEIVABLE, NET $ 675.3 $ 553.3 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are classified as follows at December 31, (in millions): 2021 2020 Raw material $ 241.0 $ 185.0 Work-in-process 129.4 92.7 Finished goods 428.6 329.1 Subtotal 799.0 606.8 Excess of FIFO over LIFO cost basis (136.9) (80.1) INVENTORIES, NET $ 662.1 $ 526.7 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying amounts of goodwill for the years ended December 31, 2021 and 2020, by segment, were as follows (in millions): Segment Electrical Solutions Utility Solutions Total BALANCE AT DECEMBER 31, 2019 $ 589.0 $ 1,172.6 $ 1,761.6 Current year acquisitions (1) 21.1 78.6 99.7 Prior year acquisitions 0.5 2.6 3.1 Foreign currency translation 3.1 5.6 8.7 BALANCE AT DECEMBER 31, 2020 $ 613.7 $ 1,259.4 $ 1,873.1 Prior year acquisitions (1) — 6.6 6.6 Dispositions (1) — (1.9) (1.9) Foreign currency translation (1.2) (5.3) (6.5) BALANCE AT DECEMBER 31, 2021 $ 612.5 $ 1,258.8 $ 1,871.3 (1) Refer to Note 4 – Business Acquisitions and Dispositions for additional information. Goodwill of the Commercial and Industrial Lighting business is included in assets held for sale, non-current portion as of the beginning of the earliest period presented on the Company's Consolidated Balance Sheets. See Note 2, Discontinued Operations, for further information. In 2020, the Company completed multiple acquisitions. These acquisitions have been accounted for as business combinations and have resulted in the recognition of $106.3 million of goodwill. The Company has not recorded any material goodwill impairments since the initial adoption of the related accounting guidance in 2002. Identifiable intangible assets are recorded in Other intangible assets, net in the Consolidated Balance Sheet. Identifiable intangible assets are comprised of the following (in millions): December 31, 2021 December 31, 2020 Gross Amount Accumulated Gross Amount Accumulated Definite-lived: Patents, tradenames and trademarks $ 181.3 $ (67.6) $ 182.0 $ (59.5) Customer relationships, developed technology and other 901.2 (374.0) 918.9 (311.4) TOTAL DEFINITE-LIVED INTANGIBLES 1,082.5 (441.6) 1,100.9 (370.9) Indefinite-lived: Tradenames and other 40.6 — 40.6 — TOTAL OTHER INTANGIBLE ASSETS $ 1,123.1 $ (441.6) $ 1,141.5 $ (370.9) Amortization expense associated with these definite-lived intangible assets was $75.7 million, $72.1 million and $68.7 million in 2021, 2020 and 2019, respectively. Amortization expense associated with these intangible assets is expected to be $69.8 million in 2022, $65.4 million in 2023, $61.4 million in 2024, $57.3 million in 2025 and $53.7 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 80% of the gross value of definite-lived intangible assets follow an accelerated amortization method. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Investments | Investments At December 31, 2021 and December 31, 2020, the Company held investments classified as available-for-sale and investments classified as trading securities. Investments classified as available-for-sale consisted of municipal bonds with an amortized cost basis of $53.3 million as of December 31, 2021. Investments classified as trading securities were composed primarily of debt and equity mutual funds and are stated at fair market value based on current quotes. The following table sets forth selected data with respect to the Company’s investments at December 31, (in millions): 2021 2020 Amortized Gross Unrealized Gross Unrealized Fair Carrying Amortized Gross Unrealized Gross Unrealized Fair Carrying Available-for-sale securities $53.3 $0.8 $(0.1) $54.0 $54.0 $56.4 $1.4 $(0.1) $57.7 $57.7 Trading securities 12.2 12.3 — 24.5 24.5 13.1 9.6 — 22.7 22.7 TOTAL INVESTMENTS $65.5 $13.1 $(0.1) $78.5 $78.5 $69.5 $11.0 $(0.1) $80.4 $80.4 Contractual maturities of our investments in available-for-sale securities at December 31, 2021 were as follows (in millions): Amortized Cost Fair Value Available-for-sale securities Due within 1 year $ 9.4 $ 9.4 After 1 year but within 5 years 37.3 38.0 After 5 years but within 10 years — — Due after 10 years 6.6 6.6 TOTAL $ 53.3 $ 54.0 The total unrealized gain/(loss) recognized in the year relating to available-for-sale securities, net of tax, was $(0.4) million and $0.4 million at December 31, 2021 and 2020, respectively. These net unrealized gains/(losses) are included in Accumulated other comprehensive loss, net of tax. Net unrealized gains relating to trading securities have been reflected in the results of operations. The Company uses the specific identification method when identifying the cost basis used to calculate the gain or loss on these securities. Gains and losses for both available-for-sale and trading securities were not material in 2021, 2020 and 2019. At December 31, 2021 and December 31, 2020, the Company had $54.0 million and $57.7 million, respectively, of available-for-sale municipal debt securities. These investments had an amortized cost of $53.3 million and $56.4 million, respectively. No allowance for credit losses related to our available-for-sale debt securities was recorded for the twelve months ended December 31, 2021. As of December 31, 2021 and December 31, 2020 the unrealized losses attributable to our available-for-sale debt securities was $0.1 million at each period end. The fair value of available-for-sale debt securities with unrealized losses was $12.2 million at December 31, 2021 and $6.1 million at December 31, 2020. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment, carried at cost, is summarized as follows at December 31, (in millions): 2021 2020 Land $ 28.1 $ 27.1 Buildings and improvements 209.7 213.7 Machinery, tools, and equipment 846.6 812.9 Construction-in-progress 69.5 53.7 Gross property, plant, and equipment 1,153.9 1,107.4 Less accumulated depreciation (694.4) (668.7) PROPERTY, PLANT, AND EQUIPMENT, NET $ 459.5 $ 438.7 Depreciable lives on buildings range between 20-45 years. Depreciable lives on machinery, tools, and equipment range between 3-15 years. The Company recorded depreciation expense of $61.7 million, $61.7 million and $60.2 million for 2021, 2020 and 2019, respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consist of the following at December 31, (in millions): 2021 2020 Customer program incentives $ 67.3 $ 37.4 Accrued income taxes 4.8 4.5 Contract liabilities - deferred revenue 16.7 29.8 Customer refund liability 16.7 15.9 Accrued warranties (1) 36.7 26.0 Current operating lease liabilities 27.1 30.6 Other 94.1 80.4 TOTAL $ 263.4 $ 224.6 (1) Refer to Note 22 – Guarantees for additional information regarding warranties. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consists of the following at December 31, (in millions): 2021 2020 Pensions $ 189.8 $ 198.6 Other post-employment benefits 17.0 21.2 Deferred tax liabilities 114.7 126.8 Accrued warranties long-term (1) 29.4 46.7 Non-current operating lease liabilities 58.3 71.9 Other 112.1 131.6 TOTAL $ 521.3 $ 596.8 (1) Refer to Note 22 – Guarantees for additional information regarding warranties. |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2021 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Retirement Benefits | Retirement Benefits The Company has funded and unfunded non-contributory U.S. and foreign defined benefit pension plans. Benefits under these plans are generally provided based on either years of service and final average pay or a specified dollar amount per year of service. The U.S. defined benefit pension plan has been closed to new participants since 2004, while the Canadian and UK defined benefit pension plans have been closed to new entrants since 2006 and 2007, respectively. These U.S., Canadian and UK employees are eligible instead for defined contribution plans. The Company also has a number of health care and life insurance benefit plans covering eligible employees who reached retirement age while working for the Company. These benefits have been discontinued for substantially all future retirees. The Company anticipates future cost-sharing charges for its discontinued plans that are consistent with past practices. The Company uses a December 31 measurement date for all of its plans. In 2020, the Company recognized a $7.6 million settlement loss relating to retirees that elected to receive lump-sum distributions from the Company's defined benefit pension plans. This charge was the result of lump-sum payments which exceeded the threshold for settlement accounting under U.S. GAAP for 2020 . In 2019, the Company approved amendments to one of its domestic qualified defined benefit pension plans, which froze service accruals for nearly all active participants within the plan effective January 1, 2020. As a result of the amendment, the Company recognized a $0.3 million curtailment charge, net of tax. Effective January 1, 2020, the amortization of unrecognized gains and losses of all of the Company's qualified defined benefit pension plans is recognized over the remaining life expectancy of participants, as nearly all participants are considered inactive as a result of plan amendments. The Company's U.S. defined benefit pension plans were approximately 87% of the $937.7 million total pension benefit obligations at December 31, 2021. The following table sets forth the reconciliation of beginning and ending balances of the benefit obligations and the plan assets for the Company’s defined benefit pension and other benefit plans at December 31, (in millions): Pension Benefits Other Benefits 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 994.2 $ 938.7 $ 23.2 $ 23.8 Service cost 1.0 1.2 — — Interest cost 23.8 28.0 0.6 0.7 Plan participants’ contributions — — — — Amendments 3.6 — — — Actuarial loss/(gain) (22.0) 89.6 (4.2) 0.2 Curtailment gain — (0.1) — — Settlements (0.1) (24.7) — — Currency impact (0.9) 5.1 — — Other (0.3) — — — Benefits paid (61.6) (43.6) (0.7) (1.5) Benefit obligation at end of year $ 937.7 $ 994.2 $ 18.9 $ 23.2 Change in plan assets Fair value of plan assets at beginning of year $ 805.1 $ 743.4 $ — $ — Actual return on plan assets 15.6 94.9 — — Employer contributions 7.9 29.5 0.7 1.5 Plan participants’ contributions — — — — Settlements (0.1) (24.7) — — Currency impact (1.3) 5.6 — — Benefits paid (61.6) (43.6) (0.7) (1.5) Fair value of plan assets at end of year $ 765.6 $ 805.1 $ — $ — FUNDED STATUS $ (172.1) $ (189.1) $ (18.9) $ (23.2) Amounts recognized in the consolidated balance sheet consist of: Prepaid pensions (included in Other long-term assets) $ 24.8 $ 16.4 $ — $ — Accrued benefit liability (short-term and long-term) (196.9) (205.5) (18.9) (23.2) NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET $ (172.1) $ (189.1) $ (18.9) $ (23.2) Amounts recognized in Accumulated other comprehensive loss (income) consist of: Net actuarial loss $ 263.1 $ 275.4 $ (3.4) $ 0.6 Prior service cost (credit) 6.9 3.5 — — NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS $ 270.0 $ 278.9 $ (3.4) $ 0.6 The accumulated benefit obligation for all defined benefit pension plans was $937.6 million and $993.9 million at December 31, 2021 and 2020, respectively. Information with respect to plans with accumulated benefit obligations in excess of plan assets is as follows, (in millions): 2021 2020 Projected benefit obligation $ 817.7 $ 865.1 Accumulated benefit obligation $ 817.7 $ 865.1 Fair value of plan assets $ 620.7 $ 659.5 The following table sets forth the components of pension and other benefit costs for the years ended December 31, (in millions): Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Components of net periodic benefit cost: Service cost $ 1.0 $ 1.2 $ 2.2 $ — $ — $ 0.1 Interest cost 23.8 28.0 34.6 0.6 0.7 1.1 Expected return on plan assets (36.5) (33.9) (30.7) — — — Amortization of prior service cost (credit) 0.2 0.2 0.2 — (0.4) (0.9) Amortization of actuarial losses (gains) 10.8 9.8 9.6 (0.1) (0.1) 0.1 Curtailment and settlement losses — 7.5 0.3 — — — Net periodic benefit cost $ (0.7) $ 12.8 $ 16.2 $ 0.5 $ 0.2 $ 0.4 Changes recognized in other comprehensive loss (income), before tax: Current year net actuarial loss (gain) $ (1.4) $ 28.6 $ 31.5 $ (4.1) $ 0.1 $ (2.0) Current year prior service credit 3.6 — — — — — Amortization of prior service (cost) credit (0.2) (0.2) (0.2) — 0.4 0.9 Amortization of net actuarial (losses) gains (10.8) (9.8) (9.6) 0.1 0.1 (0.1) Currency impact (0.2) 0.1 0.7 — — — Settlement adjustment — (7.6) — — — — Curtailment adjustments — 0.1 (0.3) — — — Total recognized in other comprehensive loss (9.0) 11.2 22.1 (4.0) 0.6 (1.2) TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS $ (9.7) $ 24.0 $ 38.3 $ (3.5) $ 0.8 $ (0.8) The Company also maintains four primary defined contribution pension plans. The total cost of the Company's defined contribution plans was $23.3 million in 2021, $21.0 million in 2020 and $20.8 million in 2019, excluding the employer match for the 401(k) plan. This cost is not included in the above net periodic benefit cost for the defined benefit pension plans. In 2019, 2020 and 2021 the Company participated in one multi-employer defined benefit pension plan. The Company’s total contributions while participating in this plan was $0.2 million in each of these years. The risks of participating in multi-employer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may have to be assumed by the remaining participant employers. If we choose to stop participating in a multi-employer plan we may be required to pay those plans a withdrawal liability based on the unfunded status of the plan. Assumptions The following assumptions were used to determine the projected benefit obligations at the measurement date and the net periodic benefit cost for the year: Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Weighted-average assumptions used to determine benefit obligations at December 31, Discount rate 2.79 % 2.47 % 3.17 % 2.90 % 2.50 % 3.30 % Rate of compensation increase 0.08 % 0.24 % 2.94 % 3.87 % 3.99 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, Discount rate 2.47 % 3.17 % 4.24 % 2.50 % 3.30 % 4.40 % Expected return on plan assets 4.66 % 4.69 % 4.75 % N/A N/A N/A Rate of compensation increase 0.24 % 2.94 % 3.25 % 3.99 % 4.00 % 4.05 % At the end of each year, the Company determines the appropriate expected return on assets for each plan based upon its strategic asset allocation (see discussion below). In making this determination, the Company utilizes expected returns for each asset class based upon current market conditions and expected risk premiums for each asset class. The Company also determines the discount rate to be used to calculate the present value of pension plan liabilities at the end of each year. The discount rate for the Company’s U.S. and Canadian pension plans is determined by matching the expected cash flows associated with its benefit obligations to the expected cash flows of a hypothetical portfolio of high quality, fixed income debt instruments with maturities that closely match the expected funding period of its pension liabilities. As of December 31, 2021, the Company used a discount rate of 2.90% for its U.S. pension plans compared to a discount rate of 2.60% used in 2020. For its Canadian pension plan, the Company used a discount rate of 2.98% as of December 31, 2021 compared to a 2.55% discount rate used in 2020. For its UK pension plan the discount rate was derived using a full yield curve and uses plan specific cash flows. The derived discount rate is the single discount rate equivalent to discounting these liability cash flows at the term-dependent spot rate of AA corporate bonds. This methodology resulted in a December 31, 2021 discount rate for the UK pension plan of 1.80% as compared to a discount rate of 1.40% used in 2020. In 2019 we changed the mortality table used to calculate the present value of our pension plan liabilities from the RP-2014 mortality table, with generational projection from 2006 using Scale MP-2018 to the Pri-2012 mortality table, with generational projection from 2012 using Scale MP-2019. In 2020 we used the Pri-2012 mortality table and adopted the MP-2020 projection scale and in 2021 we used the Pri-2012 mortality table and adopted the MP-2021 projection scale The Pri-2012 mortality table with adjustment for collar as appropriate and generational projection from 2012 using Scale MP-2021 was chosen as the best estimate based on the observed and anticipated experience of the plans after considering alternative tables. These changes did not have a material impact to the projected benefit obligation of our U.S. plans upon remeasurement. The rate of compensation increase assumption reflects the Company’s actual experience and best estimate of future increases. The assumed health care cost trend rates used to determine the projected postretirement benefit obligation are as follows: Other Benefits 2021 2020 2019 Assumed health care cost trend rates at December 31, Health care cost trend assumed for next year 6.2 % 6.4 % 6.6 % Rate to which the cost trend is assumed to decline 5.0 % 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2028 2028 2028 Plan Assets The Company’s combined targeted 2022 weighted average asset allocation for domestic and foreign pension plans and the actual weighted average asset allocation for domestic and foreign pension plans at December 31, 2021 and 2020 by asset category are as follows: Percentage of Plan Assets Target Actual Asset Category 2022 2021 2020 Equity securities 30 % 22 % 24 % Debt securities & Cash 70 % 77 % 74 % Alternative Investments — % 1 % 2 % TOTAL 100 % 100 % 100 % At the end of each year, the Company estimates the expected long-term rate of return on pension plan assets based on the strategic asset allocation for its plans. In making this determination, the Company utilizes expected rates of return for each asset class based upon current market conditions and expected risk premiums for each asset class. The Company has written investment policies and asset allocation guidelines for its domestic and foreign pension plans. In establishing these policies, the Company has considered that its various pension plans are a major retirement vehicle for most plan participants and has acted to discharge its fiduciary responsibilities with regard to the plans solely in the interest of such participants and their beneficiaries. The goal underlying the establishment of the investment policies is to provide that pension assets shall be invested in a prudent manner and so that, together with the expected contributions to the plans, the funds will be sufficient to meet the obligations of the plans as they become due. To achieve this result, the Company conducts a periodic strategic asset allocation study to form a basis for the allocation of pension assets between various asset categories. Specific policy benchmark percentages are assigned to each asset category with minimum and maximum ranges established for each. The assets are then tactically managed within these ranges. Derivative investments include futures contracts used by the plan to adjust the level of its investments within an asset allocation category. The actual and target percentages reported in the preceding table reflect the economic exposure to each asset category, including the impact of derivative positions. All futures contracts are 100% supported by cash or cash equivalent investments. At no time may derivatives be utilized to leverage the asset portfolio. At December 31, 2021 and 2020, there were no holdings of Company stock in pension plan assets. The Company’s other post-employment benefits are unfunded; therefore, no asset information is reported. The fair value of the Company’s pension plan assets at December 31, 2021 and 2020, by asset category are as follows (in millions): Quoted Prices in Active Quoted Prices in Active Significant Investments Priced Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 8.9 $ 8.9 $ — $ — $ — Equity securities: Equity Mutual Funds 31.7 31.7 — — — Common Pooled Equity Funds (a) 123.3 — 123.3 — — Fixed Income Securities: U.S. Treasuries 55.0 — 55.0 — — State and Local Municipal Bonds 6.2 — 6.2 — — Sovereign Debt 7.1 — 7.1 — — Corporate Bonds (b) 141.6 — 141.6 — — Fixed Income Mutual Funds 55.5 55.5 — — — Common Pooled Fixed Income Funds (c) 306.3 — 275.2 — 31.1 Alternative Investment Funds (d) 7.1 — — — 7.1 Common Pooled Funds (e) 22.9 0.5 22.4 — — BALANCE AT DECEMBER 31, 2021 $ 765.6 $ 96.6 $ 630.8 $ — $ 38.2 Quoted Prices in Active Quoted Prices in Active Significant Investments Priced Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 26.6 $ 26.6 $ — $ — $ — Equity securities: Equity Mutual Funds 29.8 29.8 — — — Common Pooled Equity Funds (a) 153.9 — 153.9 — — Fixed Income Securities: U.S. Treasuries 52.0 — 52.0 — — State and Local Municipal Bonds 9.3 — 9.3 — — Sovereign Debt 9.3 — 9.3 — — Corporate Bonds (b) 145.1 — 145.1 — — Fixed Income Mutual Funds 59.9 59.9 — — — Common Pooled Fixed Income Funds (c) 279.4 — 279.4 — — Alternative Investment Funds (d) 14.3 — — — 14.3 Common Pooled Funds (e) 25.5 0.5 25.0 — — BALANCE AT DECEMBER 31, 2020 $ 805.1 $ 116.8 $ 674.0 $ — $ 14.3 (a) Investments in Common Pooled Equity Funds, including funds and fund products investing in various equity securities. (b) Includes primarily investment grade bonds from diverse industries (c) Investments in Common Pooled Fixed Income Funds, including funds and fund products investing in various fixed income investments (d) Includes investments in hedge funds, including fund of funds products and open end mutual funds (e) Investments in Common Pooled Funds, consisting of equities and fixed income securities Investments priced using Net Asset Value ("NAV") within Alternative Investment Funds and Common Pooled Fixed Income Funds in the preceding tables consist of fund of fund products. These products invest in a number of investment funds managed by a diversified group of third-party investment managers who employ a variety of investment strategies, including relative value, security selection, distressed value, global macro, specialized credit and directional strategies. The objective of these funds is to achieve the desired capital appreciation or fixed income as applicable with lower volatility than either traditional equity or fixed income securities. Contributions In 2021, there were no contributions to the Company's U.S. qualified plans required by the Pension Protection Act of 2006. The Company contributed $0.1 million to its foreign qualified plans in 2021. The Company entered into a settlement agreement with a multi-employer pension plan in December of 2019 and, pursuant to that agreement, made a $10.0 million cash payment in 2019, $6.0 million cash payment in 2020, and $5.0 million cash payment in 2021, according to the terms of that settlement agreement. Estimated Future Benefit Payments The following domestic and foreign benefit payments, which reflect future service, as appropriate, are expected to be paid as follows, (in millions): Pension Benefits Other Benefits 2022 $ 55.1 $ 1.7 2023 $ 55.4 $ 1.6 2024 $ 55.4 $ 1.5 2025 $ 55.6 $ 1.4 2026 $ 55.8 $ 1.3 2027-2031 $ 263.9 $ 5.6 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth the Company’s long-term debt at December 31, (in millions): Maturity 2021 2020 Senior notes at 3.625% 2022 $ — $ 299.2 Senior notes at 3.35% 2026 397.2 396.5 Senior notes at 3.15% 2027 297.0 296.4 Senior notes at 3.50% 2028 445.5 444.8 Senior notes at 2.300% 2031 295.8 — TOTAL LONG-TERM DEBT (a) $ 1,435.5 $ 1,436.9 (a) Long-term debt is presented net of debt issuance costs and unamortized discounts. 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 December 31, 2021. As of December 31, 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. 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 December 31, 2021. In February 2018, the Company completed a public offering of $450 million of senior, unsecured, notes maturing in February 2028 and bearing interest at a fixed rate of 3.50% (the "2028 Notes"). Net proceeds from the issuance of the 2028 Notes were $442.6 million after deducting the discount on such notes and offering expenses paid by the Company. The 2028 Notes are callable at any time at specified prices and are only subject to accelerated payment prior to maturity upon customary events of a default under the indenture governing the 2028 Notes, as modified by the supplemental indenture creating such notes, or upon a change in control triggering event as defined in such indenture. In August 2017, the Company completed a public debt offering of $300 million of long-term unsecured, unsubordinated notes maturing in August 2027 and bearing interest at a fixed rate of 3.15% (the "2027 Notes"). Net proceeds from the issuance were $294.6 million after deducting the discount on the notes and offering expenses paid by the Company. In March 2016, the Company completed a public debt offering of $400 million of long-term unsecured, unsubordinated notes maturing in March 2026 and bearing interest at a fixed rate of 3.35% (the "2026 Notes"). Net proceeds from the issuance were $393.4 million after deducting the discount on the notes and offering expenses paid by the Company. The 2026 Notes, 2027 Notes, 2028 Notes and 2031 Notes, are all fixed rate indebtedness, are callable at any time with a make whole premium and are only subject to accelerated payment prior to maturity in the event of a default (including as a result of the Company's failure to meet certain non-financial covenants) under the indenture governing the notes, as modified by the supplemental indentures creating such notes, or upon a change in control triggering event as defined in such indenture. The Company was in compliance with all non-financial covenants as of December 31, 2021. At December 31, 2021 and 2020, the Company had $9.7 million and $153.1 million, respectively, of short-term debt outstanding composed of: ◦ $150.0 million of commercial paper borrowings outstanding at December 31, 2020. There was no commercial paper borrowings outstanding as of December 31, 2021. ◦ $1.6 million at December 31, 2021 and $3.1 million at December 31, 2020, respectively, of borrowings to support our international operations in China as well as $8.1 million of other short term debt at December 31, 2021 to support operations. Other information related to short-term debt at December 31, is summarized below: 2021 2020 Weighted average interest rate on short-term debt: At year end 2.98 % 0.32 % The Company also maintains other lines of credit that are primarily used to support the issuance of letters of credit. Interest rates and other terms of borrowing under these lines of credit vary from country to country, depending on local market conditions. At December 31, 2021 and 2020 these lines totaled $30.0 million and $32.1 million, respectively, of which $23.2 million and $19.3 million was utilized to support letters of credit and the remaining amount was unused. The annual commitment fees associated with these lines of credit are not material. Interest and fees paid related to total indebtedness was $65.6 million, $54.4 million and $62.8 million in 2021, 2020 and 2019, respectively. The $65.6 million paid in 2021 includes $16.0 million related to the make whole payment for the extinguishment of the 2022 Notes. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table sets forth selected data with respect to the Company’s income tax provisions of continuing operations for the years ended December 31, (in millions): 2021 2020 2019 Income before income taxes: United States $ 347.5 $ 340.7 $ 345.2 International 111.8 83.8 124.0 TOTAL INCOME BEFORE INCOME TAXES $ 459.3 $ 424.5 $ 469.2 Provision for income taxes — current: Federal $ 43.3 $ 56.3 $ 57.9 State 13.0 15.1 14.2 International 22.7 17.0 25.1 Total provision — current 79.0 88.4 97.2 Provision for income taxes — deferred: Federal 8.8 1.5 7.6 State 1.9 0.2 (0.7) International (1.5) (0.3) (2.9) Total provision — deferred 9.2 1.4 4.0 TOTAL PROVISION FOR INCOME TAXES $ 88.2 $ 89.8 $ 101.2 Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statement purposes. The components of the deferred tax assets/(liabilities) of continuing operations at December 31, were as follows (in millions): 2021 2020 Deferred tax assets: Inventories $ 10.2 $ 7.7 Lease liabilities 20.5 24.6 Income tax credits 22.8 21.1 Accrued liabilities 38.5 40.5 Pension 43.1 48.4 Basis difference in subsidiary 25.1 — Post retirement and post employment benefits 4.9 6.0 Stock-based compensation 6.7 7.3 Loss carryforwards 17.3 20.5 Miscellaneous other 17.0 17.0 Gross deferred tax assets 206.1 193.1 Valuation allowance (32.6) (29.5) Total deferred tax assets, net of valuation allowance 173.5 163.6 Deferred tax liabilities: Liability on undistributed foreign earnings (7.9) (9.6) Goodwill and intangibles (205.2) (207.2) Right-of-use assets (19.5) (23.9) Property, plant, and equipment (50.4) (44.6) Total deferred tax liabilities (283.0) (285.3) TOTAL NET DEFERRED TAX LIABILITY $ (109.5) $ (121.7) Deferred taxes are reflected in the Consolidated Balance Sheet as follows: Non-current tax assets (included in Other long-term assets) 5.2 5.1 Non-current tax liabilities (included in Other Non-Current Liabilities) (114.7) (126.8) TOTAL NET DEFERRED TAX LIABILITY $ (109.5) $ (121.7) As of December 31, 2021, the Company had a total of $22.8 million of U.S. federal, state (net of federal benefit) and foreign tax credit carryforwards, available to offset future income taxes. As of December 31, 2021, $16.6 million of the tax credits may be carried forward indefinitely while the remaining $6.2 million will begin to expire at various times in 2022 through 2036. As of December 31, 2021, the Company had recorded tax benefits totaling $16.7 million for U.S. federal, state and foreign net operating loss carryforwards (“NOLs”). As of December 31, 2021, $7.1 million of NOLs may be carried forward indefinitely while the remaining $9.5 million will begin to expire at various times in 2022 through 2040. The tax benefit related to a portion of these NOLs has been adjusted to reflect an “ownership change” pursuant to Internal Revenue Code Section 382, which imposes an annual limitation on the utilization of pre-acquisition operating losses. The Company has recorded a net valuation allowance of $32.6 million on certain deferred tax assets including a portion of foreign and state tax credit carryforwards, capital loss carryforwards and NOLs that the Company anticipates will expire prior to utilization. During 2019, the Company repatriated certain of its foreign earnings. As of December 31, 2021, the Company also anticipates repatriating certain of its foreign earnings in the future. The accompanying financial statements reflect the income tax expense associated with actual and anticipated remittances related to certain of our outside basis differences. The Company has not provided for the income tax effects of distributing the remaining approximately $370 million of undistributed foreign earnings as those amounts are either permanently reinvested or intended to be reinvested in our international operations. It is not practicable to estimate the tax cost associated with a remittance of such earnings. Cash payments of income taxes were $84.0 million, $96.2 million and $91.9 million in 2021, 2020, and 2019, respectively. The Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The IRS and other tax authorities routinely audit the Company’s tax returns. These audits can involve complex issues which may require an extended period of time to resolve. The Company is currently under U.S. federal examination for 2017 and 2018. With few exceptions, the Company is no longer subject to state, local, or income tax examinations by tax authorities for years prior to 2017. The following tax years, by major jurisdiction, are still subject to examination by taxing authorities: Jurisdiction Open Years United States 2017-2021 UK 2019-2021 Puerto Rico 2017-2021 Canada 2017-2021 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2021 2020 2019 Unrecognized tax benefits at beginning of year $ 47.6 $ 41.9 $ 38.9 Additions based on tax positions relating to the current year 6.1 7.4 7.0 Reductions based on expiration of statute of limitations (10.3) (6.2) (5.2) Additions/(Subtractions) to tax positions relating to previous years (2.2) 4.5 1.6 Settlements — — (0.4) TOTAL UNRECOGNIZED TAX BENEFITS $ 41.2 $ 47.6 $ 41.9 Included in the balance at December 31, 2021 are approximately $36.2 million of tax positions which, if in the future are determined to be recognizable, would affect the annual effective income tax rate. Additionally, there are $0.9 million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the applicable taxing authority to an earlier period. It is reasonably possible that in the next twelve months, because of changes in facts and circumstances, the unrecognized tax benefits may increase or decrease. The Company estimates a possible decrease of approximately $5 million to $14 million within the next twelve months due to the expiration of the statute of limitations and audit resolutions. The Company’s policy is to record interest and penalties associated with the underpayment of income taxes within Provision for income taxes in the Consolidated Statement of Income. The Company recognized expense, before federal tax impact, related to interest and penalties of approximately $0.3 million in 2021, $0.2 million in 2020 and $0.1 million in 2019. The Company had $7.6 million and $7.3 million accrued for the payment of interest and penalties as of December 31, 2021 and December 31, 2020, respectively. The consolidated effective income tax rate varied from the United States federal statutory income tax rate of continuing operations for the years ended December 31, as follows: 2021 2020 2019 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.5 2.9 2.3 Foreign income taxes (0.5) (0.2) (0.8) Federal R&D Credit (1.4) (1.3) (1.0) Other, net (2.4) (1.2) 0.1 CONSOLIDATED EFFECTIVE INCOME TAX RATE 19.2 % 21.2 % 21.6 % |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurement | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurement | Financial Instruments and Fair Value Measurement Financial Instruments Concentrations of Credit Risk: Financial instruments which potentially subject the Company to significant concentrations of credit risk consist of trade receivables, cash equivalents and investments. The Company grants credit terms in the normal course of business to its customers. Due to the diversity of its product lines, the Company has an extensive customer base including electrical distributors and wholesalers, electric utilities, equipment manufacturers, electrical contractors, telecommunication companies and retail and hardware outlets. We are not dependent on a single customer, however, the Company’s top ten customers account for approximately 42% of its Net sales. As part of its ongoing procedures, the Company monitors the credit worthiness of its customers. Bad debt write-offs have historically been minimal. The Company places its cash and cash equivalents with financial institutions and limits the amount of exposure in any one institution. At December 31, 2021 our accounts receivable balance was $675.3 million, net of allowances of $10.6 million. The allowance for doubtful accounts has not materially changed since December 31, 2020. Fair Value: The carrying amounts reported in the Consolidated Balance Sheet for cash and cash equivalents, short-term investments, receivables, bank borrowings, accounts payable and accruals approximate their fair values given the immediate or short-term nature of these items. See also Note 8 — Investments. Fair value measurements At December 31, 2021 and 2020 the Company had $78.5 million and $80.4 million respectively, of investments carried on the balance sheet at fair value. Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. Refer to Note 8 — Investments for more information about these investments. The three broad levels of the fair value hierarchy are as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 - Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly Level 3 - Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions The following tables show, by level within the fair value hierarchy, the Company’s financial assets and liabilities that are accounted for at fair value on a recurring basis at December 31, 2021 and 2020 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total Money market funds (a) $ 58.5 $ — $ — $ 58.5 Available for sale investments — 54.0 — 54.0 Trading securities 24.5 — — 24.5 Deferred compensation plan liabilities (24.5) — — (24.5) Derivatives: Forward exchange contracts-Assets (b) — 0.5 — 0.5 BALANCE AT DECEMBER 31, 2021 $ 58.5 $ 54.5 $ — $ 113.0 Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total Money market funds (a) $ 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) BALANCE AT DECEMBER 31, 2020 $ 26.6 $ 56.9 $ — $ 83.5 (a) Money market funds and time deposits are included in Cash and cash equivalents in the Consolidated Balance Sheet. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Consolidated Balance Sheet. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Consolidated Balance Sheet. The methods and assumptions used to estimate the Level 2 fair values were as follows: Forward exchange contracts – The fair value of forward exchange contracts were based on quoted forward foreign exchange prices at the reporting date. 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 plan The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. During 2021 and 2020, the Company purchased $2.7 million and $3.0 million, respectively, of trading securities related to these deferred compensation plans. As a result of participant distributions, the Company sold $3.6 million and $2.0 million of these trading securities in 2021 and 2020 respectively. The unrealized gains and losses associated with these trading securities are directly offset by the changes in the fair value of the underlying deferred compensation plan obligation. Long-term Debt As of December 31, 2021 and December 31, 2020, the carrying value of long-term debt, net of unamortized discount and debt issuance costs, was $1,435.5 million and $1,436.9 million, respectively. The estimated fair value of the long-term debt as of December 31, 2021 and December 31, 2020 was $1,524.5 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 | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and Environmental The Company is subject to various legal proceedings arising in the normal course of its business. These proceedings include claims for damages arising out of use of the Company’s products, intellectual property, workers’ compensation and environmental matters. The Company is self-insured up to specified limits for certain types of claims, including product liability and workers’ compensation, and is fully self-insured for certain other types of claims, including environmental and intellectual property matters. The Company recognizes a liability for any contingency that in management’s judgment is probable of occurrence and can be reasonably estimated. We continually reassess the likelihood of adverse judgments and outcomes in these matters, as well as estimated ranges of possible losses based upon an analysis of each matter which includes advice of outside legal counsel and, if applicable, other experts. The Company is subject to environmental laws and regulations which may require that it investigate and remediate the effects of potential contamination associated with past and present operations as well as those acquired through business combinations. Environmental liabilities are recorded when remedial efforts are probable and the costs can be reasonably estimated. The Company continues to monitor these environmental matters and revalues its liabilities as necessary. Total environmental liabilities were $6.4 million and $7.6 million as of December 31, 2021 and 2020, respectively. The Company accounts for conditional asset retirement and environmental obligations in accordance with the applicable accounting guidance. The accounting guidance defines “conditional asset retirement obligation” as a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. Accordingly, an entity is required to recognize a liability for the fair value of a conditional asset retirement obligation if the fair value of the liability can be reasonably estimated. Asset retirement obligations were not material as of December 31, 2021 and 2020. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Capital Stock Activity in the Company’s common shares outstanding is set forth below for the three years ended December 31, 2021 (in thousands): Common Stock OUTSTANDING AT DECEMBER 31, 2018 54,715 Exercise of stock appreciation rights 84 Director compensation arrangements, net 10 Restricted/performance shares activity, net of forfeitures 39 Acquisition/surrender of shares (334) OUTSTANDING AT DECEMBER 31, 2019 54,514 Exercise of stock appreciation rights 87 Director compensation arrangements, net 9 Restricted/performance shares activity, net of forfeitures 132 Acquisition/surrender of shares (359) OUTSTANDING AT DECEMBER 31, 2020 54,383 Exercise of stock appreciation rights 147 Director compensation arrangements, net 7 Restricted/performance shares activity, net of forfeitures 101 Acquisition/surrender of shares (120) OUTSTANDING AT DECEMBER 31, 2021 54,518 For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against Common Stock par value, Additional paid-in capital and Retained earnings to the extent required. Shares may be repurchased through the Company’s stock repurchase program, acquired by the Company from employees or surrendered to the Company by employees in settlement of their minimum tax liability on vesting of restricted shares and performance shares under the Hubbell Incorporated 2005 Incentive Award Plan as amended and restated, (the “Award Plan”). Shares of the Company’s common stock were reserved at December 31, 2021 as follows (in thousands): Common Stock Future grant of stock-based compensation 1,684 Shares reserved under other equity compensation plans 139 TOTAL 1,823 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of December 31, 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 Award Plan. Under the Award Plan, the Company may authorize up to 9.7 million shares of common stock to settle awards of restricted stock, performance shares, or SARs. The Company issues new shares to settle stock-based awards. In 2021, the Company's grant of stock-based awards included restricted stock, SARs and performance shares. Stock-based compensation expense recognized by the Company was $17.5 million in 2021, $21.9 million in 2020 and $14.5 million in 2019, and was lower in 2019 as the Company shifted the timing of its annual grant from the fourth quarter of 2019 to the first quarter of 2020. The total income tax benefit recognized was $3.2 million in 2021, $3.2 million in 2020, and $2.2 million in 2019. The net tax windfall recorded as a result of exercise or vesting (depending on the type of award) was $6.8 million, $3.4 million, and $3.3 million in 2021, 2020 and 2019, respectively. As of December 31, 2021, there was $18.7 million, pretax, of total unrecognized compensation cost related to non-vested share-based compensation arrangements. This cost is expected to be primarily recognized through 2024. Stock-based compensation expense is recorded in S&A expense as well as Cost of goods sold. Of the total 2021 expense, $15.8 million was recorded to S&A expense and $1.7 million was recorded to Cost of goods sold. In 2020 and 2019, $20.4 million and $13.5 million, respectively, was recorded to S&A expense and $1.5 million and $1.0 million, respectively, was recorded to Cost of goods sold. Stock-based compensation costs capitalized to inventory was $0.4 million in 2021, $0.4 million in 2020 and $0.2 million in 2019. 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 vest on the third year anniversary of the grant date. The f air value of these awards is measured by the average of the high and low trading prices of the Company’s common stock on the most recent trading day immediately preceding the grant date (“measurement date”). Restricted Stock Issued to Employees - Market Condition The Company granted certain restricted stock awards that vest subject to the achievement of a market-based condition (referred to as performance based restricted stock, or PBRS). These awards were granted to certain employees in 2017. No PBRS awards were granted since 2017. PBRS awards are expensed on a straight-line basis over the requisite service period which starts on the date of the grant and ends upon the completion of the performance period. Expense is recognized irrespective of the market condition being achieved. PBRS awards are earned if the Company’s relative TSR performance over a three year period is equal to or exceeds the 20th percentile as compared to the TSR of other companies in the S&P Capital Goods 900 Index, and service through the requisite service period or the retirement-eligibility date. If this market-based condition is achieved, the awards will vest at 100% of the number of awards granted. If the market-based condition is not achieved the awards will not vest. The fair value of these awards was determined based upon a lattice model. The three year performance period for awards granted in 2017 ended on December 31, 2020. The performance condition was met and approximately 18,100 shares vested and were approved by the Compensation Committee in February 2021. The fair value of the shares at vesting was approximately $3.0 million. Restricted Stock Issued to Non-employee Directors In 2021, 2020 and 2019, each non-employee director received a restricted stock grant. These grants are made on the date of the annual meeting of shareholders and vest at the following year’s annual meeting of shareholders, or upon certain other events. The grant is subject to forfeiture if the director’s service terminates prior to the date of the next regularly scheduled annual meeting of shareholders. During 2021, 2020 and 2019, the Company granted 6,741 shares, 7,413 shares, and 8,216 shares, respectively, to non-employee directors. Restricted Stock Issued to Employees and Non-employee Directors Activity related to both employee and non-employee restricted stock for the year ended December 31, 2021 is as follows (in thousands, except per share amounts): Shares Weighted Average Grant Date Fair Value/Share RESTRICTED STOCK AT DECEMBER 31, 2020 222 $ 124.77 Shares granted 77 166.46 Shares vested (103) 122.76 Shares forfeited (12) 139.98 RESTRICTED STOCK AT DECEMBER 31, 2021 184 $ 141.99 The weighted average fair value per share of restricted stock granted in 2021, 2020 and 2019 was $166.46, $145.48 and $127.89, respectively. The total fair value of restricted stock vested in 2021, 2020 and 2019 was $12.6 million, $7.8 million and $8.9 million, respectively. Stock Appreciation Rights SARs grant the holder the right to receive, once vested, the value in shares of the Company's common stock equal to the positive difference between the grant price, as determined using the mean of the high and low trading prices of the Company’s common stock on the measurement date, and the fair market value of the Company’s common stock on the date of exercise. This amount is payable in shares of the Company’s common stock. SARs vest and become exercisable in three equal installments during the first three years following the grant date and expire ten years from the grant date. Activity related to SARs for the year ended December 31, 2021 is as follows (in thousands, except per share amounts): Number of Rights Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value OUTSTANDING AT DECEMBER 31, 2020 1,383 $ 119.37 Granted 188 163.89 Exercised (636) 112.50 Forfeited (26) 141.69 Canceled (2) 110.15 OUTSTANDING AT DECEMBER 31, 2021 907 $ 132.78 7.1 years $ 68,458 EXERCISABLE AT DECEMBER 31, 2021 540 $ 118.30 6.0 years $ 48,567 The aggregated intrinsic value of SARs exercised during 2021, 2020 and 2019 was $46.8 million, $20.2 million and $17.8 million, respectively. The fair value of each SAR award was measured using the Black-Scholes option pricing model. The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the years 2021, 2020 and 2019: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR 2021 2.4 % 26.5 % 0.6 % 5.5 years $ 29.58 2020 2.5 % 23.5 % 1.3 % 5.5 years $ 24.52 2019 2.7 % 22.7 % 1.8 % 5.5 years $ 21.25 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 SARs. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the award. Performance Shares Performance shares represent the right to receive a share of the Company’s common stock subject to the achievement of certain market or performance conditions established by the Company’s Compensation Committee and measured over a three year period. Partial vesting in these awards may occur after separation from the Company for retirement eligible employees. Shares are not vested until approved by the Company’s Compensation Committee. Performance Shares - Performance and Market Conditions In February 2020 and December 2018, the Company granted 63,868 and 60,008 shares, respectively that will vest subject to a performance condition and service requirement. The number of shares vested is then modified by a market condition as described below. Thirty-four percent of shares granted will vest based on Hubbell’s compounded annual growth rate of Net sales as compared to that of the companies that comprise the S&P Capital Goods 900 index. Thirty-three percent of shares granted will vest based on achieved operating margin performance as compared to internal targets, and thirty-three percent of shares granted will vest based on achieved trade working capital as a percent of Net sales as compared to internal targets. Each of these performance conditions is measured over the same three-year performance period. The cumulative result of these performance conditions can result in a number of shares earned in the range of 0% - 200% of the target number of shares granted. That cumulative performance achieved is then further modified based on the Company's three year TSR relative to the companies that constitute the S&P Capital Goods 900 index, to potentially increase or reduce the shares earned by a multiple of up to 1.5 or 1.2, depending on the award year. The fair value of the award was determined based upon a lattice model. The Company expenses these awards on a straight-line basis over the requisite service period which includes an assessment of the performance achieved to date. The weighted average fair value per share was $151.78 for the awards granted in 2020 and $98.80 for the awards granted in 2018. Grant Date Shares Outstanding at 12/31/2021 Fair Value Performance Period Payout Range 2020 46,374 $ 151.78 Jan 2020-Dec 2022 0-200% + up to a multiple of 150x 2018 40,623 $ 98.80 Jan 2019-Dec 2021 0-200% + up to a multiple of 120x Performance Shares - Market Condition In February 2021, approximately 16,100 shares vested related to the performance awards granted in December 2017 and were approved by the Compensation Committee. The performance period associated with this award was from January 1, 2018 through December 31, 2020 and was based upon the Company's TSR compared to the TSR generated by the other companies that comprise the S&P Capital Goods 900 index. The number of shares vested in February 2021 was based upon achieving 87% of the market based criteria and the fair value of the awards at vesting was approximately $2.6 million. In February 2021, the Company granted 15,741 performance 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 period. 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. Expense 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 2021. Grant Date Fair Value Performance Period Payout Range February 2021 $151.92 Jan 2021 - Dec 2023 0-200% In December 2017 the Company granted 24,675 performance shares that were subject to a performance condition and service requirement during the performance period of three years. The performance condition associated with the awards was based on the Company's relative sales growth compared to the relative sales growth of the companies of a reference index, further adjusted by the Company achieving a target net income margin, each measured over the same three year performance period. Performance at target results in vesting and a number of shares earned equal to 100% of shares granted. Performance below or above target results in a number of shares earned in the range of 0%-250% of shares granted. During 2021, approximately 25,000 shares vested as a result of the achievement of the performance metrics, and the fair value of the awards at vesting was approximately $4.8 million. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 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. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three years ended December 31 (in millions, except per share amounts): 2021 2020 2019 Numerator: Net income from continuing operations attributable to Hubbell Incorporated $ 365.0 $ 330.0 $ 361.5 Less: Earnings allocated to participating securities (1.1) (1.1) (1.3) Net income from continuing operations available to common shareholders $ 363.9 $ 328.9 $ 360.2 Net income from discontinued operations attributable to Hubbell Incorporated $ 34.5 $ 21.2 $ 39.4 Less: Earnings allocated to participating securities (0.1) (0.1) (0.1) Net income from discontinued operations available to common shareholders $ 34.4 $ 21.1 $ 39.3 Net income attributable to Hubbell Incorporated $ 399.5 $ 351.2 $ 400.9 Less: Earnings allocated to participating securities (1.2) (1.2) (1.4) Net income available to common shareholders $ 398.3 $ 350.0 $ 399.5 Denominator: Average number of common shares outstanding 54.3 54.2 54.4 Potential dilutive shares 0.4 0.3 0.3 Average number of diluted shares outstanding 54.7 54.5 54.7 Basic earnings per share: Basic earnings per share from continuing operations $ 6.70 $ 6.07 $ 6.63 Basic earnings per share from discontinued operations $ 0.63 $ 0.39 $ 0.72 Basic earnings per share $ 7.33 $ 6.46 $ 7.35 Diluted earnings per share: Diluted earnings per share from continuing operations $ 6.66 $ 6.04 $ 6.59 Diluted earnings per share from discontinued operations $ 0.62 $ 0.39 $ 0.72 Diluted earnings per share $ 7.28 $ 6.43 $ 7.31 The Company did not have any significant anti-dilutive securities in 2021, 2020 or 2019. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 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 three years ended December 31, 2021 is provided below (in millions): (Debit) credit Cash Flow Unrealized Pension and Cumulative Total BALANCE AT DECEMBER 31, 2018 $ 0.8 $ (2.0) $ (158.7) $ (125.8) $ (285.7) Other comprehensive income (loss) before Reclassifications (0.8) 0.8 (21.5) 3.7 (17.8) Amounts reclassified from accumulated other comprehensive loss (0.5) 1.8 7.0 (7.7) 0.6 Current period other comprehensive income (loss) (1.3) 2.6 (14.5) (4.0) (17.2) Reclassification of Stranded Tax Effects — — (30.0) — (30.0) BALANCE AT DECEMBER 31, 2019 $ (0.5) $ 0.6 $ (203.2) $ (129.8) $ (332.9) Other comprehensive income (loss) before Reclassifications 0.4 0.4 (21.6) 12.3 (8.5) Amounts reclassified from accumulated other comprehensive loss (0.6) — 12.8 — 12.2 Current period other comprehensive income (loss) (0.2) 0.4 (8.8) 12.3 3.7 BALANCE AT DECEMBER 31, 2020 $ (0.7) $ 1.0 $ (212.0) $ (117.5) $ (329.2) Other comprehensive income (loss) before Reclassifications 0.4 (0.4) 1.1 (11.5) (10.4) Amounts reclassified from accumulated other comprehensive loss 0.7 — 8.1 — 8.8 Current period other comprehensive income (loss) 1.1 (0.4) 9.2 (11.5) (1.6) BALANCE AT DECEMBER 31, 2021 $ 0.4 $ 0.6 $ (202.8) $ (129.0) $ (330.8) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the two years ended December 31 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components 2021 2020 Location of Gain (Loss) Cash flow hedges gain (loss): Forward exchange contracts $ (0.1) $ 0.3 Net Sales (0.9) 0.5 Cost of goods sold (1.0) 0.8 Total before tax 0.3 (0.2) Tax (expense) benefit $ (0.7) $ 0.6 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service credits $ (0.2) (a) $ 0.2 (a) Actuarial gains/(losses) (10.7) (a) (9.7) (a) Settlement and curtailment losses — (a) (7.5) (a) (10.9) (17.0) Total before tax 2.8 4.2 Tax benefit (expense) $ (8.1) $ (12.8) (Loss) gain net of tax Gains (losses) reclassified into earnings $ (8.8) $ (12.2) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12 — Retirement Benefits for additional details). |
Industry Segments and Geographi
Industry Segments and Geographic Area Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Industry Segments and Geographic Area Information | Industry Segments and Geographic Area Information Nature of Operations Hubbell is a global manufacturer of quality electrical products and utility solutions for a broad range of customer and end-market applications. Products are either sourced complete, manufactured or assembled by subsidiaries in the United States, Canada, Puerto Rico, China, Mexico, the UK, Brazil, Australia, Spain and Ireland. Hubbell also participates in joint ventures in Hong Kong, and the Philippines and maintains offices in Singapore, Italy, China, India, Mexico, South Korea, Chile and countries in the Middle East. Each of the above references to manufacturing locations, joint venture participation, and office locations relate to the three year period ending December 31, 2021. The Company’s reporting segments consist of the Electrical Solutions segment and the Utility Solutions segment, as described below. 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, components and assemblies for the natural gas distribution market and other electrical equipment. The products are typically used in and around industrial, commercial and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies. In addition, certain of our businesses design and manufacture industrial controls and communication systems used in the non-residential and industrial markets. Many of these products are designed such that they can also be used in harsh and hazardous locations where a potential for fire and explosion exists due to the presence of flammable gasses and vapors. Harsh and hazardous products are primarily used in the oil and gas (onshore and offshore) and mining industries. There are also a variety of wiring devices, lighting fixtures 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, manufacture, and sell a wide variety of electrical distribution, transmission, substation, and telecommunications products. This includes utility transmission & distribution (T&D) components such as arresters, insulators, connectors, anchors, bushings, and enclosures. The Utility Solutions segment also offers solutions that serve the utility infrastructure, including smart meters, communications systems, and protection and control devices. Hubbell Utility Solutions supports the electrical distribution, electrical transmission, water, gas distribution, telecommunications, and solar and wind markets. Products are sold to distributors and directly to users such as utilities, telecommunication companies, industrial firms, construction and engineering firms. Organizational Changes Effective January 1, 2021 the Company consolidated the three business groups within its Electrical segment, and the segment has been re-named 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. Effective January 1, 2021 the Company also 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 offered within Utility Solutions and better serve its utility customers. The Hubbell Gas Connectors and Accessories business represented approximately $157.1 million of Net sales and $19.4 million of operating profit in 2020. Financial Information Financial information by industry segment, product class and geographic area for each of the three years ended December 31, 2021, 2020 and 2019 is summarized below (in millions). When reading the data the following items should be noted: • Net sales comprise sales to unaffiliated customers — inter-segment and inter-area sales are not significant. • Segment operating income consists of Net sales less operating expenses, including total corporate expenses, which are generally allocated to each segment on the basis of the segment’s percentage of consolidated Net sales. Interest expense and investment income and other expense, net have not been allocated to segments as these items are centrally managed by the Company. • General corporate assets not allocated to segments are principally cash, prepaid pensions, investments and deferred taxes. These assets have not been allocated as they are centrally managed by the Company. INDUSTRY SEGMENT DATA 2021 2020 2019 Net Sales: Electrical Solutions $ 1,859.7 $ 1,603.1 $ 1,776.8 Utility Solutions 2,334.4 2,079.4 2,169.8 TOTAL NET SALES $ 4,194.1 $ 3,682.5 $ 3,946.6 Operating Income: Electrical Solutions $ 248.2 $ 188.9 $ 236.2 Utility Solutions 284.1 305.6 290.5 Operating Income $ 532.3 $ 494.5 $ 526.7 Gain (Loss) on disposition of business (Note 4) (6.9) — 21.7 Loss on extinguishment of debt (Note 13) (16.8) — — Pension charge (Note 12) — (7.6) — Interest expense, net (54.7) (60.1) (68.6) Investment income — — 1.5 Other Income (expense), net 5.4 (2.3) (12.1) INCOME BEFORE INCOME TAXES $ 459.3 $ 424.5 $ 469.2 Assets: Electrical Solutions $ 2,142.1 $ 1,984.4 $ 1,934.2 Utility Solutions 2,823.8 2,812.4 2,664.9 General Corporate 315.6 288.3 303.9 TOTAL ASSETS (1) $ 5,281.5 $ 5,085.1 $ 4,903.0 Capital Expenditures: Electrical Solutions $ 31.1 $ 25.0 $ 27.7 Utility Solutions 55.8 55.9 52.6 General Corporate 3.3 1.9 6.4 TOTAL CAPITAL EXPENDITURES $ 90.2 $ 82.8 $ 86.7 Depreciation and Amortization: Electrical Solutions $ 40.6 $ 41.3 $ 42.4 Utility Solutions 108.5 103.2 95.5 TOTAL DEPRECIATION AND AMORTIZATION $ 149.1 $ 144.5 $ 137.9 GEOGRAPHIC AREA DATA 2021 2020 2019 Net Sales: United States $ 3,809.8 $ 3,356.9 $ 3,546.1 International 384.3 325.6 400.5 TOTAL NET SALES $ 4,194.1 $ 3,682.5 $ 3,946.6 Operating Income: United States $ 439.6 $ 436.3 $ 458.7 International 92.7 58.2 68.0 TOTAL OPERATING INCOME $ 532.3 $ 494.5 $ 526.7 Long-lived Assets: United States $ 3,038.1 $ 3,113.7 $ 2,950.5 International 359.0 378.7 372.2 TOTAL LONG-LIVED ASSETS (1) $ 3,397.1 $ 3,492.4 $ 3,322.7 (1) Total Assets and Long-lived assets attributable to the Company's formerly owned Commercial and Industrial Lighting business, totaling $356.6 million and $177.1 million were included in total assets held for sale, and noncurrent portion respectively as of December 31, 2021 on the Company's Consolidated Balance Sheets. See Note 2, Discontinued Operations, for further information on the Company's sale of the Distribution business. On a geographic basis, the Company defines “international” as operations based outside of the United States and its possessions. As a percentage of total Net sales, shipments from foreign operations directly to third parties were 9% in 2021, 9% in 2020 and 10% in 2019, with the Canadian and UK operations representing approximately 36%, and 29% respectively, of 2021 total international Net sales. Long-lived assets, excluding deferred tax assets, of international subsidiaries were 11% of the consolidated total in 2021, 11% in 2020 and 11% in 2019, with the UK, Spain, and Canada operations representing approximately 34%, 20%, and 15%, respectively, of the 2021 international total. Export sales from United States operations were $227.0 million in 2021, $233.8 million in 2020 and $256.8 million in 2019. |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2021 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees in the Consolidated Balance Sheet in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of December 31, 2021, the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product warranties which cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known or as historical experience indicates. Changes in the accrual for product warranties in 2021 are set forth below (in millions): BALANCE AT DECEMBER 31, 2019 $ 73.9 Provision 8.2 Expenditures/other (9.4) BALANCE AT DECEMBER 31, 2020 $ 72.7 Provision 8.8 Expenditures/other (15.4) BALANCE AT DECEMBER 31, 2021 (a) $ 66.1 (a) Refer to Note 10 – Other Accrued Liabilities and Note 11 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs During 2021, we incurred costs for restructuring actions initiated in 2021 as well as costs relating to restructuring actions initiated in the prior year. Our restructuring actions are associated with cost reduction efforts that include the consolidation of manufacturing and distribution facilities, as well as, workforce reductions and the sale or exit of business units we determine to be non-strategic. Restructuring costs are primarily severance and employee benefits, asset impairments, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. These costs are predominantly settled in cash from our operating activities and are generally settled within one year, with the exception of asset impairments, which are non-cash. Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Consolidated Statement of Income for the years ended December 31, 2021, 2020 and 2019 are as follows (in millions): Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Electrical Solutions Utility Solutions Total Electrical Solutions Utility Solutions Total Electrical Solutions Utility Solutions Total Restructuring costs Cost of goods sold $ 1.1 $ 1.3 $ 2.4 $ 7.1 $ 9.2 $ 16.3 $ 10.0 $ 10.1 $ 20.1 S&A expense 0.4 1.1 1.5 2.9 1.2 4.1 6.8 1.9 8.7 Total restructuring costs $ 1.5 $ 2.4 $ 3.9 $ 10.0 $ 10.4 $ 20.4 $ 16.8 $ 12.0 $ 28.8 The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Pre-tax Restructuring Costs Utilization and Ending Accrued 2021 Restructuring Actions Severance $ — $ 2.4 $ (1.0) $ 1.4 Asset write-downs — — — — Facility closure and other costs — — — — Total 2021 Restructuring Actions $ — $ 2.4 $ (1.0) $ 1.4 2020 and Prior Restructuring Actions Severance $ 7.7 $ — $ (5.0) $ 2.7 Asset write-downs — — — — Facility closure and other costs 0.5 1.5 (1.9) 0.1 Total 2020 and Prior Restructuring Actions $ 8.2 $ 1.5 $ (6.9) $ 2.8 Total Restructuring Actions $ 8.2 $ 3.9 $ (7.9) $ 4.2 The actual and expected pre-tax costs for our restructuring actions are as follows (in millions): Expected Costs Costs incurred in 2019 Costs incurred in 2020 Costs incurred in 2021 Remaining costs at 12/31/21 2021 Restructuring Actions Electrical Solutions $ 0.6 $ — $ — $ 0.6 $ — Utility Solutions 8.6 — — 1.8 6.8 Total 2021 Restructuring Actions $ 9.2 $ — $ — $ 2.4 $ 6.8 2020 Restructuring Actions Electrical Solutions $ 12.7 $ — $ 10.5 $ 0.9 $ 1.3 Utility Solutions 6.3 — 4.4 0.6 1.3 Total 2020 Restructuring Actions $ 19.0 $ — $ 14.9 $ 1.5 $ 2.6 2019 and Prior Restructuring Actions Electrical Solutions $ 16.3 $ 16.8 $ (0.5) $ — $ — Utility Solutions 18.0 12.0 6.0 — — Total 2019 and Prior Restructuring Actions $ 34.3 $ 28.8 $ 5.5 $ — $ — Total Restructuring Actions $ 62.5 $ 28.8 $ 20.4 $ 3.9 $ 9.4 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Leases Our operating leases primarily consist of office space, certain manufacturing facilities, and vehicles. Our finance leases are not material. The term of our operating leases is generally 10 years or less, in some cases, with options to extend the term for up to 5 years, or options to terminate after one year without penalty. In general, our vehicle lease payments contain a monthly base rent payment which is adjusted based on changes to the LIBOR rate over the lease term. Certain other lease agreements contain variable payments related to a consumer price index or similar metric. Any change in payment amounts as a result of a change in a rate or index are considered variable lease payments and recognized as profit or loss when incurred. Rent expense for operating leases in the Consolidated Statements of Income for the years ended December 31, 2021, December 31, 2020, and December 31, 2019 were $34.1 million, $35.5 million, and $37.0 million, respectively. Cash paid for operating leases for the year ended December 31, 2021 and December 31, 2020 were $36.7 million and $35.5 million reported as cash outflows from operating activities in the Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations for the year ended December 31, 2021 and December 31, 2020 were $17.8 million and $34.3 million, respectively, which includes $9.4 million related to 2020 acquisitions. Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions): December 31, 2021 December 31, 2020 Operating lease right-of-use assets $ 81.3 $ 99.1 TOTAL ASSETS $ 81.3 $ 99.1 Other accrued liabilities $ 27.1 $ 30.6 Other non-current liabilities 58.3 71.9 TOTAL LIABILITIES $ 85.4 $ 102.5 T he weighted average remaining lease term as of December 31, 2021 and December 31, 2020 for operating leases were 4 years and 5 years, respectively. The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 2.7% as of December 31, 2021 and 3.1% as of December 31, 2020. Future maturities of our operating lease liabilities as of December 31, 2021 are as follows (in millions): 2022 2023 2024 2025 2026 Thereafter Total Payments Imputed Interest Total Operating Leases 29.0 22.9 13.6 8.8 6.4 9.2 89.9 (4.5) $85.4 Future maturities of our operating lease liabilities as of December 31, 2020 are as follows (in millions): 2021 2022 2023 2024 2025 Thereafter Total Payments Imputed Interest Total Operating Leases 33.1 24.1 18.7 11.9 8.2 13.9 109.9 (7.4) $102.5 During 2021, we entered into two real estate lease agreements which are expected to commence during 2022. The aggregate lease payments for these facilities is approximately $46 million over 10 years and will be recognized using the applicable valuation inputs as of the commencement date. |
Leases | Leases Our operating leases primarily consist of office space, certain manufacturing facilities, and vehicles. Our finance leases are not material. The term of our operating leases is generally 10 years or less, in some cases, with options to extend the term for up to 5 years, or options to terminate after one year without penalty. In general, our vehicle lease payments contain a monthly base rent payment which is adjusted based on changes to the LIBOR rate over the lease term. Certain other lease agreements contain variable payments related to a consumer price index or similar metric. Any change in payment amounts as a result of a change in a rate or index are considered variable lease payments and recognized as profit or loss when incurred. Rent expense for operating leases in the Consolidated Statements of Income for the years ended December 31, 2021, December 31, 2020, and December 31, 2019 were $34.1 million, $35.5 million, and $37.0 million, respectively. Cash paid for operating leases for the year ended December 31, 2021 and December 31, 2020 were $36.7 million and $35.5 million reported as cash outflows from operating activities in the Consolidated Statements of Cash Flows. Right-of-use ("ROU") assets obtained in exchange for lease obligations for the year ended December 31, 2021 and December 31, 2020 were $17.8 million and $34.3 million, respectively, which includes $9.4 million related to 2020 acquisitions. Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions): December 31, 2021 December 31, 2020 Operating lease right-of-use assets $ 81.3 $ 99.1 TOTAL ASSETS $ 81.3 $ 99.1 Other accrued liabilities $ 27.1 $ 30.6 Other non-current liabilities 58.3 71.9 TOTAL LIABILITIES $ 85.4 $ 102.5 T he weighted average remaining lease term as of December 31, 2021 and December 31, 2020 for operating leases were 4 years and 5 years, respectively. The weighted average discount rate used to measure the ROU asset and lease liability for operating leases was 2.7% as of December 31, 2021 and 3.1% as of December 31, 2020. Future maturities of our operating lease liabilities as of December 31, 2021 are as follows (in millions): 2022 2023 2024 2025 2026 Thereafter Total Payments Imputed Interest Total Operating Leases 29.0 22.9 13.6 8.8 6.4 9.2 89.9 (4.5) $85.4 Future maturities of our operating lease liabilities as of December 31, 2020 are as follows (in millions): 2021 2022 2023 2024 2025 Thereafter Total Payments Imputed Interest Total Operating Leases 33.1 24.1 18.7 11.9 8.2 13.9 109.9 (7.4) $102.5 During 2021, we entered into two real estate lease agreements which are expected to commence during 2022. The aggregate lease payments for these facilities is approximately $46 million over 10 years and will be recognized using the applicable valuation inputs as of the commencement date. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The table below sets forth summarized quarterly consolidated financial data for the years ended December 31, 2021 and 2020 (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2021 Net sales $ 956.3 $ 1,054.3 $ 1,083.4 $ 1,100.1 Cost of goods sold $ 694.1 $ 756.0 $ 782.3 $ 810.2 Gross profit $ 262.2 $ 298.3 $ 301.1 $ 289.9 Selling & administrative expenses $ 152.3 $ 156.1 $ 155.2 $ 155.6 Net income from continuing operations $ 74.7 $ 89.6 $ 105.5 $ 101.3 Net income from continuing operations attributable to Hubbell $ 73.3 $ 88.8 $ 103.4 $ 99.5 Basic earnings per share from continuing operations $ 1.34 $ 1.63 $ 1.89 $ 1.82 Basic earnings per share from discontinued operations $ 0.09 $ 0.13 $ 0.10 $ 0.33 Basic earnings per share $ 1.43 $ 1.76 $ 1.99 $ 2.15 Diluted earnings per share from continuing operations $ 1.33 $ 1.62 $ 1.88 $ 1.81 Diluted earnings per share from discontinued operations $ 0.09 $ 0.12 $ 0.10 $ 0.33 Diluted earnings per share $ 1.42 $ 1.74 $ 1.98 $ 2.14 First Quarter Second Quarter Third Quarter Fourth Quarter 2020 Net sales $ 957.6 $ 837.5 $ 970.3 $ 917.1 Cost of goods sold $ 680.0 $ 582.3 $ 677.5 $ 656.9 Gross profit $ 277.6 $ 255.2 $ 292.8 $ 260.2 Selling & administrative expenses $ 171.0 $ 129.9 $ 144.8 $ 145.6 Net income from continuing operations $ 67.9 $ 86.9 $ 98.5 $ 81.4 Net income from continuing operations attributable to Hubbell $ 67.2 $ 85.9 $ 97.1 $ 79.8 Basic earnings per share from continuing operations $ 1.23 $ 1.58 $ 1.79 $ 1.47 Basic earnings per share from discontinued operations $ 0.15 $ 0.04 $ 0.18 $ 0.02 Basic earnings per share $ 1.38 $ 1.62 $ 1.97 $ 1.49 Diluted earnings per share from continuing operations $ 1.23 $ 1.58 $ 1.78 $ 1.46 Diluted earnings per share from discontinued operations $ 0.14 $ 0.04 $ 0.18 $ 0.02 Diluted earnings per share $ 1.37 $ 1.62 $ 1.96 $ 1.48 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 1, 2022 we completed the previously announced sale of the Commercial and Industrial Lighting business to GE Current, a Daintree Company, for a cash purchase price of $350 million, which is subject to customary adjustments with respect to working capital and net indebtedness. In connection with the close of the transaction, we anticipate recognizing a pre-tax gain of $80 million to $100 million within income from discontinued operations in the first quarter of 2022. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | Valuation and Qualifying Accounts and Reserves for the Years Ended December 31, 2019, 2020 and 2021 Reserves deducted in the balance sheet from the assets to which they apply (in millions): Balance Additions / (Reversals) Deductions Balance at End of Year Allowances for doubtful accounts receivable: Year 2019 $ 4.4 $ 2.8 $ (0.4) $ 6.8 Year 2020 (a) $ 8.0 $ 4.0 $ (1.4) $ 10.6 Year 2021 $ 10.6 $ 2.0 $ (2.0) $ 10.6 Allowance for credit memos, returns and cash discounts: Year 2019 $ 32.7 $ 280.6 $ (279.8) $ 33.5 Year 2020 $ 33.5 $ 267.9 $ (269.5) $ 31.9 Year 2021 $ 31.9 $ 296.5 $ (293.7) $ 34.7 Valuation allowance on deferred tax assets: Year 2019 $ 19.2 $ 6.7 $ — $ 25.9 Year 2020 $ 25.9 $ 3.6 $ — $ 29.5 Year 2021 $ 29.5 $ 3.1 $ — $ 32.6 (a) |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include all wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The Company participates in two joint ventures that have been consolidated in accordance with the consolidation accounting guidance. An analysis is performed to determine which reporting entity, if any, has a controlling financial interest in a variable interest entity (“VIE”) with a primarily qualitative analysis. The qualitative analysis is based on identifying the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance (the “power criterion”) and the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE (the “losses/benefit criterion”). The party that meets both these criteria is deemed to have a controlling financial interest. The party with the controlling financial interest is considered to be the primary beneficiary and as a result is required to consolidate the VIE. The Company has a 50% interest in a joint venture in Hong Kong, established as Hubbell Asia Limited (“HAL”). The principal objective of HAL is to manage the operations of its wholly-owned manufacturing company in China. Under the accounting guidance, the Company is the primary beneficiary of HAL and as a result consolidates HAL. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements. Actual results could differ from the estimates that are used. |
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. |
Assets and Liabilities Held for Sale | Assets and Liabilities Held for Sale The Company classifies assets and liabilities (disposal groups) to be sold as held for sale in the period in which all of the following criteria are met: management, having the authority to approve the action, commits to a plan to sell the disposal group; the disposal group is available for immediate sale in its present condition subject only to terms that are usual and customary for sales of such disposal groups; an active program to locate a buyer and other actions required to complete the plan to sell the disposal group have been initiated; the sale of the disposal group is probable, and transfer of the disposal group is expected to qualify for recognition as a completed sale within one year, except if events or circumstances beyond the Company's control extend the period of time required to sell the disposal group beyond one year; the disposal group is being actively marketed for sale at a price that is reasonable in relation to its current fair value; and actions required to complete the plan indicate that it is unlikely that significant changes to the plan will be made or that the plan will be withdrawn. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions in the Utility Solutions segment recognized upon delivery of the product at the contractually specified destination. Revenue from service contracts and post-shipment performance obligations is approximately three percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the 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 Consolidated Balance Sheet. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Consolidated Statement of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Consolidated Statement of Income on a straight line basis over the expected term of the contract. The Company has certain arrangements that require us to estimate at the time of sale the amounts of variable consideration that should not be recorded as revenue as certain amounts are not expected to be collected from customers, as well as an estimate of the value of the product to be returned. The Company principally relies on historical experience, specific customer agreements and anticipated future trends to estimate these amounts at the time of shipment and to reduce the transaction price. These arrangements include sales discounts and allowances based on sales volumes, specific programs and special pricing allowances, and returned goods, as are customary in the electrical products industry. Customer returns have historically been approximately 1% of gross sales. Shipping and Handling Costs |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of international subsidiaries are translated to U.S. dollars at exchange rates in effect at the end of the year, and income and expense items are translated at average exchange rates in effect during the year. The effects of exchange rate fluctuations on the translated amounts of foreign currency assets and liabilities are included as translation adjustments in Accumulated other comprehensive loss within Hubbell shareholders’ equity. Gains and losses from foreign currency transactions are included in results of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents The carrying value of cash equivalents approximates fair value. Cash equivalents consist of highly liquid investments with original maturities to the Company of three months or less. |
Investments | Investments |
Accounts Receivable and Allowances | Accounts Receivable and Allowances Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. The allowance for doubtful accounts is based on an estimated amount of probable credit losses in existing accounts receivable. The allowance is calculated based upon a combination of historical write-off experience, fixed percentages applied to aging categories and specific identification based upon a review of past due balances and problem accounts. Account balances are charged off against the allowance when it is determined that internal collection efforts should no longer be pursued. The Company also maintains a reserve for credit memos and cash discounts which are principally calculated based upon historical experience, specific customer agreements, as well as anticipated future trends. |
Inventories | Inventories Inventories are stated at the lower of cost or market value. Approximately 50% of total net inventory value is determined utilizing the last-in, first-out (LIFO) method of inventory accounting. The cost of foreign inventories and certain domestic inventories is determined utilizing average cost or first-in, first-out (FIFO) methods of inventory accounting. Reserves for excess and obsolete inventory are provided based on current assessments about future demand compared to on-hand quantities. |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment values are stated at cost less accumulated depreciation. Maintenance and repair expenditures that do not significantly increase the life of an asset are charged to expense when incurred. Property, plant, and equipment placed in service prior to January 1, 1999 are depreciated over their estimated useful lives, principally, using accelerated methods. Assets placed in service subsequent to January 1, 1999 are depreciated over their estimated useful lives, using straight-line methods. Leasehold improvements are amortized over the shorter of their economic lives or the lease term. Gains and losses arising on the disposal of property, plant and equipment are included in Operating income in the Consolidated Statement of Income. |
Capitalized Computer Software Costs | Capitalized Computer Software Costs Capitalized computer software costs, net of amortization, were $10.8 million and $20.1 million at December 31, 2021 and 2020, respectively. This balance is reflected in Other long-term assets in the Consolidated Balance Sheet. Capitalized computer software is for internal use and costs primarily consist of purchased materials, external services and salary costs for personnel dedicated to the projects. Software is amortized on a straight-line basis over appropriate periods, generally between three |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents purchase price in excess of fair values of the underlying net assets of acquired companies. Indefinite-lived intangible assets and goodwill are subject to annual impairment testing using the specific guidance and criteria described in the accounting guidance. The Company performs its goodwill impairment testing as of April 1st of each year, unless circumstances dictate the need for more frequent assessments. The accounting guidance provides entities an option of performing a qualitative assessment (a "step-zero" test) before performing a quantitative analysis. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the goodwill is not impaired, the entity would not need to proceed to quantitative goodwill impairment testing process as prescribed in the guidance. The Company applied the "step-zero" test to one of its five reporting units. Based on that qualitative assessment, the Company concluded it was more-likely-than-not that the fair value of this reporting unit exceeded their carrying value and therefore, further quantitative analysis was not required. For the other four reporting units the Company has elected to utilize the quantitative goodwill impairment testing process as permitted in the accounting guidance, by comparing the fair value of the Company's reporting units to their carrying values. If the fair value of the reporting unit exceeds its carrying value, no impairment exists. Goodwill impairment testing requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions, including assumptions about secular economic and market conditions, such as the potential continuing effects of the COVID-19 pandemic. We use internal discounted cash flow models to estimate fair value. These cash flow estimates are derived from historical experience, third party end market data, and future long-term business plans and include assumptions on future sales growth, gross margin, operating margin, terminal growth rate, and the application of an appropriate discount rate. Changes in these estimates and assumptions could affect the determination of fair value and/or goodwill impairment for each reporting unit. The Company believes that its estimated aggregate fair value of its reporting units is reasonable when compared to the Company's market capitalization on the valuation date. As of April 1, 2021, the impairment testing resulted in implied fair values for each reporting unit that substantially exceeded the reporting unit's carrying value, including goodwill. The Company did not have any reporting units at risk of failing the quantitative impairment test as the excess of the implied fair value significantly exceeded the carrying value of the reporting units. Additionally, the Company did not have any reporting units with zero or negative carrying amounts. The Company has not recorded any goodwill impairments since the initial adoption of the accounting guidance in 2002. The Company’s intangible assets consist primarily of customer relationships, tradenames, developed technology and patents. Intangible assets with definite lives are amortized over periods generally ranging from 5-30 years. The Company amortizes intangible assets with definite lives using either an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets' useful life, or using a straight line method. Approximately 80% of the gross value of definite-lived intangible assets follow an accelerated amortization method. These definite lived intangibles are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The Company did not record any material impairments related to its definite lived intangible assets in 2021, 2020 or 2019. The Company also has some tradenames that are considered to be indefinite-lived intangible assets. These indefinite-lived intangible assets are not amortized and are tested for impairment annually, unless circumstances dictate the need for more frequent assessment. |
Other Long-Lived Assets | Other Long-Lived Assets The Company reviews depreciable long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such a change in circumstances occurs, the related estimated future undiscounted cash flows expected to result from the use of the asset group and its eventual disposition is compared to the carrying amount. If the sum of the expected cash flows is less than the carrying amount, an impairment charge is recorded. The impairment charge is measured as the amount by which the carrying amount exceeds the fair value of the asset. The fair value of impaired assets is determined using expected cash flow estimates, quoted market prices when available and appraisals as appropriate. The Company did not record any material impairment charges in 2021, 2020 or 2019. |
Leases | Leases We determine if an arrangement is a lease at inception. Operating leases are included as ROU assets within other long-term assets, other accrued liabilities, and other non-current liabilities in our Consolidated Balance Sheets. Finance leases are included in property, plant, and equipment, net, other accrued liabilities, and other non-current liabilities. The Company's finance leases are immaterial. ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at the commencement date in determining the present value of lease payments. We use an implicit rate when readily determinable. For leases existing as of January 1, 2019, we have elected to use the remaining lease term as of the adoption date in determining the incremental borrowing rate. Our determination of the lease term may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. We have lease agreements with lease and non-lease components, which are generally accounted for separately. Additionally, for our vehicle leases, we apply a portfolio approach regarding the assumed lease term. |
Accrued Insurance | Accrued Insurance The Company retains a significant portion of the risks associated with workers’ compensation, medical, automobile and general liability insurance. The Company estimates self-insurance liabilities using a number of factors, including historical claims experience, demographic factors, and other actuarial assumptions. The accrued liabilities associated with these programs are based on the Company’s estimate of the ultimate costs to settle known claims as well as claims incurred but not reported as of the balance sheet date. The Company periodically reviews the assumptions with a third party actuary to determine the adequacy of these self-insurance reserves. |
Accrued Warranty | Accrued Warranty The Company offers product warranties which cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known or as historical experience indicates. |
Income Taxes | Income Taxes The Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The IRS and other tax authorities routinely examine the Company’s tax returns. These audits can involve complex issues which may require an extended period of time to resolve. The Company makes adequate provisions for best estimates of exposures on previously filed tax returns. Deferred income taxes are recognized for the tax consequence of differences between financial statement carrying amounts and the tax basis of assets and liabilities by applying the currently enacted statutory tax rates in accordance with the accounting guidance for income taxes. The effect of a change in statutory tax rates is recognized in the period that includes the enactment date. Additionally, deferred tax assets are required to be reduced by a valuation allowance if it is more-likely-than-not that a portion or all of the deferred tax asset will not be realized. The Company uses factors to assess the likelihood of realization of deferred tax assets such as the forecast of future taxable income and available tax planning that could be implemented to realize the deferred tax assets. In addition, the accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of the tax position taken or expected to be taken in a tax return. For any amount of benefit to be recognized, it must be determined that it is more-likely-than-not that a tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The amount of benefit to be recognized is based on the Company’s assertion of the most likely outcome resulting from an examination, including resolution of any related appeals or litigation processes. Companies are required to reflect only those tax positions that are more-likely-than-not to be sustained. See Note 14 — Income Taxes for additional information. |
Research and Development | Research and Development |
Retirement Benefits | Retirement Benefits The Company maintains various defined benefit pension plans for some of its U.S. and foreign employees. The accounting guidance for retirement benefits requires the Company to recognize the funded status of its defined benefit pension and postretirement plans as an asset or liability in the Consolidated Balance Sheet. Gains or losses, prior service costs or credits, and transition assets or obligations that have not yet been included in net periodic benefit cost as of the end of the year are recognized as components of Accumulated other comprehensive loss, net of tax, within Hubbell shareholders’ equity. The Company’s policy is to fund pension costs within the ranges prescribed by applicable regulations. In addition to providing defined benefit pension benefits, the Company provides health care and life insurance benefits for some of its active and retired employees. The Company’s policy is to fund these benefits through insurance premiums or as actual expenditures are made. See also Note 12 — Retirement Benefits. |
Earnings Per Share | Earnings Per Share Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. As a result, the earnings per share accounting guidance requires the Company to use the two-class method for calculating earnings per share. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities. Basic earnings per share is calculated as net income available to common shareholders divided by the weighted average number of shares of common stock outstanding. Earnings per diluted share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding of common stock plus the incremental shares outstanding assuming the exercise of dilutive stock options, stock appreciation rights and performance shares. See also Note 19 — Earnings Per Share. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the grant-date fair value of all stock-based awards on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period). A stock-based award is considered vested for expense attribution purposes when the retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company generally recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The expense is recorded in Cost of goods sold and S&A expense in the Consolidated Statement of Income based on the recipients’ respective functions within the organization. The Company records deferred tax assets for awards that will result in deductions on its tax returns, based upon the amount of compensation cost recognized and the statutory tax rate in the jurisdiction in which it will receive a deduction. See also Note 18 — Stock-Based Compensation. |
Recent Accounting Pronouncements | 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 December 31, 2021. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy. This standard is effective for fiscal years beginning after December 15, 2021 and should be applied either prospectively or retrospectively. Early adoption is permitted. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Income From Discontinued Operations, Net of Income Taxes and Balance Sheet Information for Assets and Liabilities Held for Sale | The following table presents the summarized components of income from discontinued operations, net of income taxes, for the Commercial and Industrial Lighting business: Year Ended December 31, (in millions) 2021 2020 2019 Net sales $ 509.4 $ 503.5 $ 644.5 Cost of goods sold 403.4 385.6 469.4 Gross profit 106.0 117.9 175.1 Selling & administrative expenses 88.5 85.1 111.2 Operating income 17.5 32.8 63.9 Other expense (4.1) (4.0) (12.7) Income from discontinued operations before income taxes 13.4 28.8 51.2 (Benefit) provision for income taxes (21.1) 7.6 11.8 Income from discontinued operations, net of taxes $ 34.5 $ 21.2 $ 39.4 The following table presents balance sheet information for assets and liabilities held for sale: At December 31, (in millions) 2021 2020 Cash and cash equivalents $ 0.7 $ 1.0 Accounts receivable 83.1 81.3 Inventories, net 89.8 80.6 Other current assets 5.9 5.0 Assets held for sale - current $ 179.5 $ 167.9 Property, Plant, and Equipment, net 77.7 80.4 Goodwill 50.2 50.2 Other Intangible assets, net 37.3 40.0 Other long-term assets 11.9 13.5 Assets held for sale - non-current $ 177.1 $ 184.1 Accounts payable 50.2 38.8 Accrued salaries, wages and employee benefits 8.5 7.1 Accrued insurance 3.9 4.4 Other accrued liabilities 28.7 29.4 Liabilities held for sale - current $ 91.3 $ 79.7 Other Non-Current Liabilities 18.8 17.8 Liabilities held for sale - non-current $ 18.8 $ 17.8 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 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 and Note 2 - Discontinued Operations: Twelve Months Ended December 31, in millions 2021 2020 2019 Net sales Commercial and Industrial $ 1,150.1 $ 918.7 $ 1,013.1 Heavy Industrial 337.5 302.0 382.9 Residential and Retail 372.1 382.4 380.6 Total Electrical Solutions $ 1,859.7 $ 1,603.1 $ 1,776.6 Utility T&D Components 1,679.8 1,445.1 1,434.2 Utility Communications and Controls 654.6 634.3 735.8 Total Utility Solutions $ 2,334.4 $ 2,079.4 $ 2,170.0 TOTAL (1) $ 4,194.1 $ 3,682.5 $ 3,946.6 (1) Sales of the Company's Commercial and Industrial Lighting business are included in earnings from discontinued operations, net of tax, on the Company's Consolidated Statements of Operations in the years ended December 31, 2021, 2020, and 2019. See Note 2, Discontinued Operations for further information. The following table presents disaggregated third-party Net sales by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Twelve Months Ended December 31, in millions 2021 2020 2019 Net sales United States $ 1,604.9 $ 1,389.0 $ 1,509.1 International 254.8 214.1 267.5 Total Electrical Solutions $ 1,859.7 $ 1,603.1 $ 1,776.6 United States 2,204.9 1,967.9 2,037.0 International 129.5 111.5 133.0 Total Utility Solutions $ 2,334.4 $ 2,079.4 $ 2,170.0 TOTAL $ 4,194.1 $ 3,682.5 $ 3,946.6 |
Business Acquisitions and Dis_2
Business Acquisitions and Dispositions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of the Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the fair values of the assets acquired and liabilities assumed as of the respective date of acquisition for all transactions (in millions): Tangible assets acquired $ 64.7 Intangible assets 103.2 Goodwill 106.3 Net deferred taxes (8.8) Other liabilities assumed (27.8) Total Estimate of Consideration Transferred, Net of Cash Acquired $ 237.6 |
Receivables and Allowances (Tab
Receivables and Allowances (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | |
Schedule of Components of Receivables and Allowances | Receivables consist of the following components at December 31, (in millions): 2021 2020 Trade accounts receivable $ 695.7 $ 574.1 Non-trade receivables 24.9 21.7 Accounts receivable, gross 720.6 595.8 Allowance for credit memos, returns and cash discounts (34.7) (31.9) Allowance for doubtful accounts (10.6) (10.6) Total allowances (45.3) (42.5) ACCOUNTS RECEIVABLE, NET $ 675.3 $ 553.3 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are classified as follows at December 31, (in millions): 2021 2020 Raw material $ 241.0 $ 185.0 Work-in-process 129.4 92.7 Finished goods 428.6 329.1 Subtotal 799.0 606.8 Excess of FIFO over LIFO cost basis (136.9) (80.1) INVENTORIES, NET $ 662.1 $ 526.7 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amounts of goodwill for the years ended December 31, 2021 and 2020, by segment, were as follows (in millions): Segment Electrical Solutions Utility Solutions Total BALANCE AT DECEMBER 31, 2019 $ 589.0 $ 1,172.6 $ 1,761.6 Current year acquisitions (1) 21.1 78.6 99.7 Prior year acquisitions 0.5 2.6 3.1 Foreign currency translation 3.1 5.6 8.7 BALANCE AT DECEMBER 31, 2020 $ 613.7 $ 1,259.4 $ 1,873.1 Prior year acquisitions (1) — 6.6 6.6 Dispositions (1) — (1.9) (1.9) Foreign currency translation (1.2) (5.3) (6.5) BALANCE AT DECEMBER 31, 2021 $ 612.5 $ 1,258.8 $ 1,871.3 (1) Refer to Note 4 – Business Acquisitions and Dispositions for additional information. |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets are recorded in Other intangible assets, net in the Consolidated Balance Sheet. Identifiable intangible assets are comprised of the following (in millions): December 31, 2021 December 31, 2020 Gross Amount Accumulated Gross Amount Accumulated Definite-lived: Patents, tradenames and trademarks $ 181.3 $ (67.6) $ 182.0 $ (59.5) Customer relationships, developed technology and other 901.2 (374.0) 918.9 (311.4) TOTAL DEFINITE-LIVED INTANGIBLES 1,082.5 (441.6) 1,100.9 (370.9) Indefinite-lived: Tradenames and other 40.6 — 40.6 — TOTAL OTHER INTANGIBLE ASSETS $ 1,123.1 $ (441.6) $ 1,141.5 $ (370.9) |
Investments (Table)
Investments (Table) | 12 Months Ended |
Dec. 31, 2021 | |
Investments [Abstract] | |
Schedule of Investments, Amortized Cost Basis | The following table sets forth selected data with respect to the Company’s investments at December 31, (in millions): 2021 2020 Amortized Gross Unrealized Gross Unrealized Fair Carrying Amortized Gross Unrealized Gross Unrealized Fair Carrying Available-for-sale securities $53.3 $0.8 $(0.1) $54.0 $54.0 $56.4 $1.4 $(0.1) $57.7 $57.7 Trading securities 12.2 12.3 — 24.5 24.5 13.1 9.6 — 22.7 22.7 TOTAL INVESTMENTS $65.5 $13.1 $(0.1) $78.5 $78.5 $69.5 $11.0 $(0.1) $80.4 $80.4 |
Schedule of Contractual Maturities of Available-For-Sale Investments | Contractual maturities of our investments in available-for-sale securities at December 31, 2021 were as follows (in millions): Amortized Cost Fair Value Available-for-sale securities Due within 1 year $ 9.4 $ 9.4 After 1 year but within 5 years 37.3 38.0 After 5 years but within 10 years — — Due after 10 years 6.6 6.6 TOTAL $ 53.3 $ 54.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Table) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment, carried at cost, is summarized as follows at December 31, (in millions): 2021 2020 Land $ 28.1 $ 27.1 Buildings and improvements 209.7 213.7 Machinery, tools, and equipment 846.6 812.9 Construction-in-progress 69.5 53.7 Gross property, plant, and equipment 1,153.9 1,107.4 Less accumulated depreciation (694.4) (668.7) PROPERTY, PLANT, AND EQUIPMENT, NET $ 459.5 $ 438.7 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Table) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consist of the following at December 31, (in millions): 2021 2020 Customer program incentives $ 67.3 $ 37.4 Accrued income taxes 4.8 4.5 Contract liabilities - deferred revenue 16.7 29.8 Customer refund liability 16.7 15.9 Accrued warranties (1) 36.7 26.0 Current operating lease liabilities 27.1 30.6 Other 94.1 80.4 TOTAL $ 263.4 $ 224.6 (1) Refer to Note 22 – Guarantees for additional information regarding warranties. |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Table) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other non-current liabilities consists of the following at December 31, (in millions): 2021 2020 Pensions $ 189.8 $ 198.6 Other post-employment benefits 17.0 21.2 Deferred tax liabilities 114.7 126.8 Accrued warranties long-term (1) 29.4 46.7 Non-current operating lease liabilities 58.3 71.9 Other 112.1 131.6 TOTAL $ 521.3 $ 596.8 (1) Refer to Note 22 – Guarantees for additional information regarding warranties. |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | |
Schedule of Changes in Benefit Obligation and the Plan Assets | The following table sets forth the reconciliation of beginning and ending balances of the benefit obligations and the plan assets for the Company’s defined benefit pension and other benefit plans at December 31, (in millions): Pension Benefits Other Benefits 2021 2020 2021 2020 Change in benefit obligation Benefit obligation at beginning of year $ 994.2 $ 938.7 $ 23.2 $ 23.8 Service cost 1.0 1.2 — — Interest cost 23.8 28.0 0.6 0.7 Plan participants’ contributions — — — — Amendments 3.6 — — — Actuarial loss/(gain) (22.0) 89.6 (4.2) 0.2 Curtailment gain — (0.1) — — Settlements (0.1) (24.7) — — Currency impact (0.9) 5.1 — — Other (0.3) — — — Benefits paid (61.6) (43.6) (0.7) (1.5) Benefit obligation at end of year $ 937.7 $ 994.2 $ 18.9 $ 23.2 Change in plan assets Fair value of plan assets at beginning of year $ 805.1 $ 743.4 $ — $ — Actual return on plan assets 15.6 94.9 — — Employer contributions 7.9 29.5 0.7 1.5 Plan participants’ contributions — — — — Settlements (0.1) (24.7) — — Currency impact (1.3) 5.6 — — Benefits paid (61.6) (43.6) (0.7) (1.5) Fair value of plan assets at end of year $ 765.6 $ 805.1 $ — $ — FUNDED STATUS $ (172.1) $ (189.1) $ (18.9) $ (23.2) Amounts recognized in the consolidated balance sheet consist of: Prepaid pensions (included in Other long-term assets) $ 24.8 $ 16.4 $ — $ — Accrued benefit liability (short-term and long-term) (196.9) (205.5) (18.9) (23.2) NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET $ (172.1) $ (189.1) $ (18.9) $ (23.2) Amounts recognized in Accumulated other comprehensive loss (income) consist of: Net actuarial loss $ 263.1 $ 275.4 $ (3.4) $ 0.6 Prior service cost (credit) 6.9 3.5 — — NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS $ 270.0 $ 278.9 $ (3.4) $ 0.6 |
Summary of Accumulated Benefit Obligations in Excess of Plan Assets | Information with respect to plans with accumulated benefit obligations in excess of plan assets is as follows, (in millions): 2021 2020 Projected benefit obligation $ 817.7 $ 865.1 Accumulated benefit obligation $ 817.7 $ 865.1 Fair value of plan assets $ 620.7 $ 659.5 |
Schedule of the Components of Pension and Other Benefit Costs | The following table sets forth the components of pension and other benefit costs for the years ended December 31, (in millions): Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Components of net periodic benefit cost: Service cost $ 1.0 $ 1.2 $ 2.2 $ — $ — $ 0.1 Interest cost 23.8 28.0 34.6 0.6 0.7 1.1 Expected return on plan assets (36.5) (33.9) (30.7) — — — Amortization of prior service cost (credit) 0.2 0.2 0.2 — (0.4) (0.9) Amortization of actuarial losses (gains) 10.8 9.8 9.6 (0.1) (0.1) 0.1 Curtailment and settlement losses — 7.5 0.3 — — — Net periodic benefit cost $ (0.7) $ 12.8 $ 16.2 $ 0.5 $ 0.2 $ 0.4 Changes recognized in other comprehensive loss (income), before tax: Current year net actuarial loss (gain) $ (1.4) $ 28.6 $ 31.5 $ (4.1) $ 0.1 $ (2.0) Current year prior service credit 3.6 — — — — — Amortization of prior service (cost) credit (0.2) (0.2) (0.2) — 0.4 0.9 Amortization of net actuarial (losses) gains (10.8) (9.8) (9.6) 0.1 0.1 (0.1) Currency impact (0.2) 0.1 0.7 — — — Settlement adjustment — (7.6) — — — — Curtailment adjustments — 0.1 (0.3) — — — Total recognized in other comprehensive loss (9.0) 11.2 22.1 (4.0) 0.6 (1.2) TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS $ (9.7) $ 24.0 $ 38.3 $ (3.5) $ 0.8 $ (0.8) |
Schedule of Assumptions Used to Determine the Projected Benefit Obligation | The following assumptions were used to determine the projected benefit obligations at the measurement date and the net periodic benefit cost for the year: Pension Benefits Other Benefits 2021 2020 2019 2021 2020 2019 Weighted-average assumptions used to determine benefit obligations at December 31, Discount rate 2.79 % 2.47 % 3.17 % 2.90 % 2.50 % 3.30 % Rate of compensation increase 0.08 % 0.24 % 2.94 % 3.87 % 3.99 % 4.00 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, Discount rate 2.47 % 3.17 % 4.24 % 2.50 % 3.30 % 4.40 % Expected return on plan assets 4.66 % 4.69 % 4.75 % N/A N/A N/A Rate of compensation increase 0.24 % 2.94 % 3.25 % 3.99 % 4.00 % 4.05 % |
Schedule of Health Care Cost Trend Rates | The assumed health care cost trend rates used to determine the projected postretirement benefit obligation are as follows: Other Benefits 2021 2020 2019 Assumed health care cost trend rates at December 31, Health care cost trend assumed for next year 6.2 % 6.4 % 6.6 % Rate to which the cost trend is assumed to decline 5.0 % 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2028 2028 2028 |
Schedule of Allocation of Plan Assets | The Company’s combined targeted 2022 weighted average asset allocation for domestic and foreign pension plans and the actual weighted average asset allocation for domestic and foreign pension plans at December 31, 2021 and 2020 by asset category are as follows: Percentage of Plan Assets Target Actual Asset Category 2022 2021 2020 Equity securities 30 % 22 % 24 % Debt securities & Cash 70 % 77 % 74 % Alternative Investments — % 1 % 2 % TOTAL 100 % 100 % 100 % |
Schedule of Changes in Fair Value of Plan Assets | The fair value of the Company’s pension plan assets at December 31, 2021 and 2020, by asset category are as follows (in millions): Quoted Prices in Active Quoted Prices in Active Significant Investments Priced Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 8.9 $ 8.9 $ — $ — $ — Equity securities: Equity Mutual Funds 31.7 31.7 — — — Common Pooled Equity Funds (a) 123.3 — 123.3 — — Fixed Income Securities: U.S. Treasuries 55.0 — 55.0 — — State and Local Municipal Bonds 6.2 — 6.2 — — Sovereign Debt 7.1 — 7.1 — — Corporate Bonds (b) 141.6 — 141.6 — — Fixed Income Mutual Funds 55.5 55.5 — — — Common Pooled Fixed Income Funds (c) 306.3 — 275.2 — 31.1 Alternative Investment Funds (d) 7.1 — — — 7.1 Common Pooled Funds (e) 22.9 0.5 22.4 — — BALANCE AT DECEMBER 31, 2021 $ 765.6 $ 96.6 $ 630.8 $ — $ 38.2 Quoted Prices in Active Quoted Prices in Active Significant Investments Priced Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 26.6 $ 26.6 $ — $ — $ — Equity securities: Equity Mutual Funds 29.8 29.8 — — — Common Pooled Equity Funds (a) 153.9 — 153.9 — — Fixed Income Securities: U.S. Treasuries 52.0 — 52.0 — — State and Local Municipal Bonds 9.3 — 9.3 — — Sovereign Debt 9.3 — 9.3 — — Corporate Bonds (b) 145.1 — 145.1 — — Fixed Income Mutual Funds 59.9 59.9 — — — Common Pooled Fixed Income Funds (c) 279.4 — 279.4 — — Alternative Investment Funds (d) 14.3 — — — 14.3 Common Pooled Funds (e) 25.5 0.5 25.0 — — BALANCE AT DECEMBER 31, 2020 $ 805.1 $ 116.8 $ 674.0 $ — $ 14.3 (a) Investments in Common Pooled Equity Funds, including funds and fund products investing in various equity securities. (b) Includes primarily investment grade bonds from diverse industries (c) Investments in Common Pooled Fixed Income Funds, including funds and fund products investing in various fixed income investments (d) Includes investments in hedge funds, including fund of funds products and open end mutual funds (e) Investments in Common Pooled Funds, consisting of equities and fixed income securities |
Schedule of Expected Benefit Payments | The following domestic and foreign benefit payments, which reflect future service, as appropriate, are expected to be paid as follows, (in millions): Pension Benefits Other Benefits 2022 $ 55.1 $ 1.7 2023 $ 55.4 $ 1.6 2024 $ 55.4 $ 1.5 2025 $ 55.6 $ 1.4 2026 $ 55.8 $ 1.3 2027-2031 $ 263.9 $ 5.6 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table sets forth the Company’s long-term debt at December 31, (in millions): Maturity 2021 2020 Senior notes at 3.625% 2022 $ — $ 299.2 Senior notes at 3.35% 2026 397.2 396.5 Senior notes at 3.15% 2027 297.0 296.4 Senior notes at 3.50% 2028 445.5 444.8 Senior notes at 2.300% 2031 295.8 — TOTAL LONG-TERM DEBT (a) $ 1,435.5 $ 1,436.9 (a) Long-term debt is presented net of debt issuance costs and unamortized discounts. Other information related to short-term debt at December 31, is summarized below: 2021 2020 Weighted average interest rate on short-term debt: At year end 2.98 % 0.32 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Selected Data with Respect to the Company's Income Tax Provision | The following table sets forth selected data with respect to the Company’s income tax provisions of continuing operations for the years ended December 31, (in millions): 2021 2020 2019 Income before income taxes: United States $ 347.5 $ 340.7 $ 345.2 International 111.8 83.8 124.0 TOTAL INCOME BEFORE INCOME TAXES $ 459.3 $ 424.5 $ 469.2 Provision for income taxes — current: Federal $ 43.3 $ 56.3 $ 57.9 State 13.0 15.1 14.2 International 22.7 17.0 25.1 Total provision — current 79.0 88.4 97.2 Provision for income taxes — deferred: Federal 8.8 1.5 7.6 State 1.9 0.2 (0.7) International (1.5) (0.3) (2.9) Total provision — deferred 9.2 1.4 4.0 TOTAL PROVISION FOR INCOME TAXES $ 88.2 $ 89.8 $ 101.2 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statement purposes. The components of the deferred tax assets/(liabilities) of continuing operations at December 31, were as follows (in millions): 2021 2020 Deferred tax assets: Inventories $ 10.2 $ 7.7 Lease liabilities 20.5 24.6 Income tax credits 22.8 21.1 Accrued liabilities 38.5 40.5 Pension 43.1 48.4 Basis difference in subsidiary 25.1 — Post retirement and post employment benefits 4.9 6.0 Stock-based compensation 6.7 7.3 Loss carryforwards 17.3 20.5 Miscellaneous other 17.0 17.0 Gross deferred tax assets 206.1 193.1 Valuation allowance (32.6) (29.5) Total deferred tax assets, net of valuation allowance 173.5 163.6 Deferred tax liabilities: Liability on undistributed foreign earnings (7.9) (9.6) Goodwill and intangibles (205.2) (207.2) Right-of-use assets (19.5) (23.9) Property, plant, and equipment (50.4) (44.6) Total deferred tax liabilities (283.0) (285.3) TOTAL NET DEFERRED TAX LIABILITY $ (109.5) $ (121.7) Deferred taxes are reflected in the Consolidated Balance Sheet as follows: Non-current tax assets (included in Other long-term assets) 5.2 5.1 Non-current tax liabilities (included in Other Non-Current Liabilities) (114.7) (126.8) TOTAL NET DEFERRED TAX LIABILITY $ (109.5) $ (121.7) |
Summary of Income Tax Examinations | The following tax years, by major jurisdiction, are still subject to examination by taxing authorities: Jurisdiction Open Years United States 2017-2021 UK 2019-2021 Puerto Rico 2017-2021 Canada 2017-2021 |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2021 2020 2019 Unrecognized tax benefits at beginning of year $ 47.6 $ 41.9 $ 38.9 Additions based on tax positions relating to the current year 6.1 7.4 7.0 Reductions based on expiration of statute of limitations (10.3) (6.2) (5.2) Additions/(Subtractions) to tax positions relating to previous years (2.2) 4.5 1.6 Settlements — — (0.4) TOTAL UNRECOGNIZED TAX BENEFITS $ 41.2 $ 47.6 $ 41.9 |
Schedule of Effective Income Tax Rate Reconciliation | The consolidated effective income tax rate varied from the United States federal statutory income tax rate of continuing operations for the years ended December 31, as follows: 2021 2020 2019 Federal statutory income tax rate 21.0 % 21.0 % 21.0 % State income taxes, net of federal benefit 2.5 2.9 2.3 Foreign income taxes (0.5) (0.2) (0.8) Federal R&D Credit (1.4) (1.3) (1.0) Other, net (2.4) (1.2) 0.1 CONSOLIDATED EFFECTIVE INCOME TAX RATE 19.2 % 21.2 % 21.6 % |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Accounted for at Fair Value | The following tables show, by level within the fair value hierarchy, the Company’s financial assets and liabilities that are accounted for at fair value on a recurring basis at December 31, 2021 and 2020 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total Money market funds (a) $ 58.5 $ — $ — $ 58.5 Available for sale investments — 54.0 — 54.0 Trading securities 24.5 — — 24.5 Deferred compensation plan liabilities (24.5) — — (24.5) Derivatives: Forward exchange contracts-Assets (b) — 0.5 — 0.5 BALANCE AT DECEMBER 31, 2021 $ 58.5 $ 54.5 $ — $ 113.0 Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total Money market funds (a) $ 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) BALANCE AT DECEMBER 31, 2020 $ 26.6 $ 56.9 $ — $ 83.5 (a) Money market funds and time deposits are included in Cash and cash equivalents in the Consolidated Balance Sheet. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Consolidated Balance Sheet. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Consolidated Balance Sheet. |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity in the Company's Common Shares Outstanding | Activity in the Company’s common shares outstanding is set forth below for the three years ended December 31, 2021 (in thousands): Common Stock OUTSTANDING AT DECEMBER 31, 2018 54,715 Exercise of stock appreciation rights 84 Director compensation arrangements, net 10 Restricted/performance shares activity, net of forfeitures 39 Acquisition/surrender of shares (334) OUTSTANDING AT DECEMBER 31, 2019 54,514 Exercise of stock appreciation rights 87 Director compensation arrangements, net 9 Restricted/performance shares activity, net of forfeitures 132 Acquisition/surrender of shares (359) OUTSTANDING AT DECEMBER 31, 2020 54,383 Exercise of stock appreciation rights 147 Director compensation arrangements, net 7 Restricted/performance shares activity, net of forfeitures 101 Acquisition/surrender of shares (120) OUTSTANDING AT DECEMBER 31, 2021 54,518 |
Schedule of Shares of the Company's Reserved Common Stock | Shares of the Company’s common stock were reserved at December 31, 2021 as follows (in thousands): Common Stock Future grant of stock-based compensation 1,684 Shares reserved under other equity compensation plans 139 TOTAL 1,823 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Activity Related to Employee and Non-Employee Restricted Stock | Activity related to both employee and non-employee restricted stock for the year ended December 31, 2021 is as follows (in thousands, except per share amounts): Shares Weighted Average Grant Date Fair Value/Share RESTRICTED STOCK AT DECEMBER 31, 2020 222 $ 124.77 Shares granted 77 166.46 Shares vested (103) 122.76 Shares forfeited (12) 139.98 RESTRICTED STOCK AT DECEMBER 31, 2021 184 $ 141.99 |
Summary of Stock Appreciation Rights | Activity related to SARs for the year ended December 31, 2021 is as follows (in thousands, except per share amounts): Number of Rights Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value OUTSTANDING AT DECEMBER 31, 2020 1,383 $ 119.37 Granted 188 163.89 Exercised (636) 112.50 Forfeited (26) 141.69 Canceled (2) 110.15 OUTSTANDING AT DECEMBER 31, 2021 907 $ 132.78 7.1 years $ 68,458 EXERCISABLE AT DECEMBER 31, 2021 540 $ 118.30 6.0 years $ 48,567 |
Summary of the Weighted-Average Assumption Used in Estimating Fair Value of Stock Appreciation Rights | The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the years 2021, 2020 and 2019: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR 2021 2.4 % 26.5 % 0.6 % 5.5 years $ 29.58 2020 2.5 % 23.5 % 1.3 % 5.5 years $ 24.52 2019 2.7 % 22.7 % 1.8 % 5.5 years $ 21.25 |
Summary of the Attributes of the Performance Shares Granted During the Period | Grant Date Shares Outstanding at 12/31/2021 Fair Value Performance Period Payout Range 2020 46,374 $ 151.78 Jan 2020-Dec 2022 0-200% + up to a multiple of 150x 2018 40,623 $ 98.80 Jan 2019-Dec 2021 0-200% + up to a multiple of 120x 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% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of earnings per share for the three years ended December 31 (in millions, except per share amounts): 2021 2020 2019 Numerator: Net income from continuing operations attributable to Hubbell Incorporated $ 365.0 $ 330.0 $ 361.5 Less: Earnings allocated to participating securities (1.1) (1.1) (1.3) Net income from continuing operations available to common shareholders $ 363.9 $ 328.9 $ 360.2 Net income from discontinued operations attributable to Hubbell Incorporated $ 34.5 $ 21.2 $ 39.4 Less: Earnings allocated to participating securities (0.1) (0.1) (0.1) Net income from discontinued operations available to common shareholders $ 34.4 $ 21.1 $ 39.3 Net income attributable to Hubbell Incorporated $ 399.5 $ 351.2 $ 400.9 Less: Earnings allocated to participating securities (1.2) (1.2) (1.4) Net income available to common shareholders $ 398.3 $ 350.0 $ 399.5 Denominator: Average number of common shares outstanding 54.3 54.2 54.4 Potential dilutive shares 0.4 0.3 0.3 Average number of diluted shares outstanding 54.7 54.5 54.7 Basic earnings per share: Basic earnings per share from continuing operations $ 6.70 $ 6.07 $ 6.63 Basic earnings per share from discontinued operations $ 0.63 $ 0.39 $ 0.72 Basic earnings per share $ 7.33 $ 6.46 $ 7.35 Diluted earnings per share: Diluted earnings per share from continuing operations $ 6.66 $ 6.04 $ 6.59 Diluted earnings per share from discontinued operations $ 0.62 $ 0.39 $ 0.72 Diluted earnings per share $ 7.28 $ 6.43 $ 7.31 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of the Changes in Accumulated Other Comprehensive Loss (Net of Tax) | A summary of the changes in Accumulated other comprehensive loss (net of tax) for the three years ended December 31, 2021 is provided below (in millions): (Debit) credit Cash Flow Unrealized Pension and Cumulative Total BALANCE AT DECEMBER 31, 2018 $ 0.8 $ (2.0) $ (158.7) $ (125.8) $ (285.7) Other comprehensive income (loss) before Reclassifications (0.8) 0.8 (21.5) 3.7 (17.8) Amounts reclassified from accumulated other comprehensive loss (0.5) 1.8 7.0 (7.7) 0.6 Current period other comprehensive income (loss) (1.3) 2.6 (14.5) (4.0) (17.2) Reclassification of Stranded Tax Effects — — (30.0) — (30.0) BALANCE AT DECEMBER 31, 2019 $ (0.5) $ 0.6 $ (203.2) $ (129.8) $ (332.9) Other comprehensive income (loss) before Reclassifications 0.4 0.4 (21.6) 12.3 (8.5) Amounts reclassified from accumulated other comprehensive loss (0.6) — 12.8 — 12.2 Current period other comprehensive income (loss) (0.2) 0.4 (8.8) 12.3 3.7 BALANCE AT DECEMBER 31, 2020 $ (0.7) $ 1.0 $ (212.0) $ (117.5) $ (329.2) Other comprehensive income (loss) before Reclassifications 0.4 (0.4) 1.1 (11.5) (10.4) Amounts reclassified from accumulated other comprehensive loss 0.7 — 8.1 — 8.8 Current period other comprehensive income (loss) 1.1 (0.4) 9.2 (11.5) (1.6) BALANCE AT DECEMBER 31, 2021 $ 0.4 $ 0.6 $ (202.8) $ (129.0) $ (330.8) |
Summary of the Gain (Loss) Reclassifications Out of Accumulated Other Comprehensive Loss | A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the two years ended December 31 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components 2021 2020 Location of Gain (Loss) Cash flow hedges gain (loss): Forward exchange contracts $ (0.1) $ 0.3 Net Sales (0.9) 0.5 Cost of goods sold (1.0) 0.8 Total before tax 0.3 (0.2) Tax (expense) benefit $ (0.7) $ 0.6 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service credits $ (0.2) (a) $ 0.2 (a) Actuarial gains/(losses) (10.7) (a) (9.7) (a) Settlement and curtailment losses — (a) (7.5) (a) (10.9) (17.0) Total before tax 2.8 4.2 Tax benefit (expense) $ (8.1) $ (12.8) (Loss) gain net of tax Gains (losses) reclassified into earnings $ (8.8) $ (12.2) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12 — Retirement Benefits for additional details). |
Industry Segments and Geograp_2
Industry Segments and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Industry Segment Data | INDUSTRY SEGMENT DATA 2021 2020 2019 Net Sales: Electrical Solutions $ 1,859.7 $ 1,603.1 $ 1,776.8 Utility Solutions 2,334.4 2,079.4 2,169.8 TOTAL NET SALES $ 4,194.1 $ 3,682.5 $ 3,946.6 Operating Income: Electrical Solutions $ 248.2 $ 188.9 $ 236.2 Utility Solutions 284.1 305.6 290.5 Operating Income $ 532.3 $ 494.5 $ 526.7 Gain (Loss) on disposition of business (Note 4) (6.9) — 21.7 Loss on extinguishment of debt (Note 13) (16.8) — — Pension charge (Note 12) — (7.6) — Interest expense, net (54.7) (60.1) (68.6) Investment income — — 1.5 Other Income (expense), net 5.4 (2.3) (12.1) INCOME BEFORE INCOME TAXES $ 459.3 $ 424.5 $ 469.2 Assets: Electrical Solutions $ 2,142.1 $ 1,984.4 $ 1,934.2 Utility Solutions 2,823.8 2,812.4 2,664.9 General Corporate 315.6 288.3 303.9 TOTAL ASSETS (1) $ 5,281.5 $ 5,085.1 $ 4,903.0 Capital Expenditures: Electrical Solutions $ 31.1 $ 25.0 $ 27.7 Utility Solutions 55.8 55.9 52.6 General Corporate 3.3 1.9 6.4 TOTAL CAPITAL EXPENDITURES $ 90.2 $ 82.8 $ 86.7 Depreciation and Amortization: Electrical Solutions $ 40.6 $ 41.3 $ 42.4 Utility Solutions 108.5 103.2 95.5 TOTAL DEPRECIATION AND AMORTIZATION $ 149.1 $ 144.5 $ 137.9 |
Summary of Geographic Area Data | GEOGRAPHIC AREA DATA 2021 2020 2019 Net Sales: United States $ 3,809.8 $ 3,356.9 $ 3,546.1 International 384.3 325.6 400.5 TOTAL NET SALES $ 4,194.1 $ 3,682.5 $ 3,946.6 Operating Income: United States $ 439.6 $ 436.3 $ 458.7 International 92.7 58.2 68.0 TOTAL OPERATING INCOME $ 532.3 $ 494.5 $ 526.7 Long-lived Assets: United States $ 3,038.1 $ 3,113.7 $ 2,950.5 International 359.0 378.7 372.2 TOTAL LONG-LIVED ASSETS (1) $ 3,397.1 $ 3,492.4 $ 3,322.7 (1) Total Assets and Long-lived assets attributable to the Company's formerly owned Commercial and Industrial Lighting business, totaling $356.6 million and $177.1 million were included in total assets held for sale, and noncurrent portion respectively as of December 31, 2021 on the Company's Consolidated Balance Sheets. See Note 2, Discontinued Operations, for further information on the Company's sale of the Distribution business. |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Standard Product Warranty Disclosure [Abstract] | |
Summary of Changes in the Accrued Product Warranties | Changes in the accrual for product warranties in 2021 are set forth below (in millions): BALANCE AT DECEMBER 31, 2019 $ 73.9 Provision 8.2 Expenditures/other (9.4) BALANCE AT DECEMBER 31, 2020 $ 72.7 Provision 8.8 Expenditures/other (15.4) BALANCE AT DECEMBER 31, 2021 (a) $ 66.1 (a) Refer to Note 10 – Other Accrued Liabilities and Note 11 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Costs | Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Consolidated Statement of Income for the years ended December 31, 2021, 2020 and 2019 are as follows (in millions): Twelve Months Ended December 31, 2021 Twelve Months Ended December 31, 2020 Twelve Months Ended December 31, 2019 Electrical Solutions Utility Solutions Total Electrical Solutions Utility Solutions Total Electrical Solutions Utility Solutions Total Restructuring costs Cost of goods sold $ 1.1 $ 1.3 $ 2.4 $ 7.1 $ 9.2 $ 16.3 $ 10.0 $ 10.1 $ 20.1 S&A expense 0.4 1.1 1.5 2.9 1.2 4.1 6.8 1.9 8.7 Total restructuring costs $ 1.5 $ 2.4 $ 3.9 $ 10.0 $ 10.4 $ 20.4 $ 16.8 $ 12.0 $ 28.8 |
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 Ending Accrued 2021 Restructuring Actions Severance $ — $ 2.4 $ (1.0) $ 1.4 Asset write-downs — — — — Facility closure and other costs — — — — Total 2021 Restructuring Actions $ — $ 2.4 $ (1.0) $ 1.4 2020 and Prior Restructuring Actions Severance $ 7.7 $ — $ (5.0) $ 2.7 Asset write-downs — — — — Facility closure and other costs 0.5 1.5 (1.9) 0.1 Total 2020 and Prior Restructuring Actions $ 8.2 $ 1.5 $ (6.9) $ 2.8 Total Restructuring Actions $ 8.2 $ 3.9 $ (7.9) $ 4.2 The actual and expected pre-tax costs for our restructuring actions are as follows (in millions): Expected Costs Costs incurred in 2019 Costs incurred in 2020 Costs incurred in 2021 Remaining costs at 12/31/21 2021 Restructuring Actions Electrical Solutions $ 0.6 $ — $ — $ 0.6 $ — Utility Solutions 8.6 — — 1.8 6.8 Total 2021 Restructuring Actions $ 9.2 $ — $ — $ 2.4 $ 6.8 2020 Restructuring Actions Electrical Solutions $ 12.7 $ — $ 10.5 $ 0.9 $ 1.3 Utility Solutions 6.3 — 4.4 0.6 1.3 Total 2020 Restructuring Actions $ 19.0 $ — $ 14.9 $ 1.5 $ 2.6 2019 and Prior Restructuring Actions Electrical Solutions $ 16.3 $ 16.8 $ (0.5) $ — $ — Utility Solutions 18.0 12.0 6.0 — — Total 2019 and Prior Restructuring Actions $ 34.3 $ 28.8 $ 5.5 $ — $ — Total Restructuring Actions $ 62.5 $ 28.8 $ 20.4 $ 3.9 $ 9.4 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Amounts Recognized for Operating Leases in the Consolidated Balance Sheets | Amounts recognized for operating leases in the Consolidated Balance Sheets is as follows (in millions): December 31, 2021 December 31, 2020 Operating lease right-of-use assets $ 81.3 $ 99.1 TOTAL ASSETS $ 81.3 $ 99.1 Other accrued liabilities $ 27.1 $ 30.6 Other non-current liabilities 58.3 71.9 TOTAL LIABILITIES $ 85.4 $ 102.5 |
Maturities of lease liabilities | Future maturities of our operating lease liabilities as of December 31, 2021 are as follows (in millions): 2022 2023 2024 2025 2026 Thereafter Total Payments Imputed Interest Total Operating Leases 29.0 22.9 13.6 8.8 6.4 9.2 89.9 (4.5) $85.4 Future maturities of our operating lease liabilities as of December 31, 2020 are as follows (in millions): 2021 2022 2023 2024 2025 Thereafter Total Payments Imputed Interest Total Operating Leases 33.1 24.1 18.7 11.9 8.2 13.9 109.9 (7.4) $102.5 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | The table below sets forth summarized quarterly consolidated financial data for the years ended December 31, 2021 and 2020 (in millions, except per share amounts): First Quarter Second Quarter Third Quarter Fourth Quarter 2021 Net sales $ 956.3 $ 1,054.3 $ 1,083.4 $ 1,100.1 Cost of goods sold $ 694.1 $ 756.0 $ 782.3 $ 810.2 Gross profit $ 262.2 $ 298.3 $ 301.1 $ 289.9 Selling & administrative expenses $ 152.3 $ 156.1 $ 155.2 $ 155.6 Net income from continuing operations $ 74.7 $ 89.6 $ 105.5 $ 101.3 Net income from continuing operations attributable to Hubbell $ 73.3 $ 88.8 $ 103.4 $ 99.5 Basic earnings per share from continuing operations $ 1.34 $ 1.63 $ 1.89 $ 1.82 Basic earnings per share from discontinued operations $ 0.09 $ 0.13 $ 0.10 $ 0.33 Basic earnings per share $ 1.43 $ 1.76 $ 1.99 $ 2.15 Diluted earnings per share from continuing operations $ 1.33 $ 1.62 $ 1.88 $ 1.81 Diluted earnings per share from discontinued operations $ 0.09 $ 0.12 $ 0.10 $ 0.33 Diluted earnings per share $ 1.42 $ 1.74 $ 1.98 $ 2.14 First Quarter Second Quarter Third Quarter Fourth Quarter 2020 Net sales $ 957.6 $ 837.5 $ 970.3 $ 917.1 Cost of goods sold $ 680.0 $ 582.3 $ 677.5 $ 656.9 Gross profit $ 277.6 $ 255.2 $ 292.8 $ 260.2 Selling & administrative expenses $ 171.0 $ 129.9 $ 144.8 $ 145.6 Net income from continuing operations $ 67.9 $ 86.9 $ 98.5 $ 81.4 Net income from continuing operations attributable to Hubbell $ 67.2 $ 85.9 $ 97.1 $ 79.8 Basic earnings per share from continuing operations $ 1.23 $ 1.58 $ 1.79 $ 1.47 Basic earnings per share from discontinued operations $ 0.15 $ 0.04 $ 0.18 $ 0.02 Basic earnings per share $ 1.38 $ 1.62 $ 1.97 $ 1.49 Diluted earnings per share from continuing operations $ 1.23 $ 1.58 $ 1.78 $ 1.46 Diluted earnings per share from discontinued operations $ 0.14 $ 0.04 $ 0.18 $ 0.02 Diluted earnings per share $ 1.37 $ 1.62 $ 1.96 $ 1.48 |
Significant Accounting Polici_3
Significant Accounting Policies - Narrative (Details) | Apr. 01, 2021reporting_unit | Dec. 31, 2021USD ($)venture | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Oct. 26, 2021USD ($) |
Principles Of Consolidation [Abstract] | |||||
Number of joint ventures | venture | 2 | ||||
Assets And Liabilities Held For Sale [Abstract] | |||||
Disposal of recognition sale within term | 1 year | ||||
Disposal of recognition sale of beyond term | 1 year | ||||
Recognition Of Revenue [Abstract] | |||||
Revenue from service contracts and post-shipment performance obligations | 3.00% | ||||
Customer returns as a percentage of gross sales | 1.00% | ||||
Investments [Abstract] | |||||
Investments classified as held-to-maturity | $ 0 | $ 0 | |||
Inventories [Abstract] | |||||
Percentage of LIFO inventory | 50.00% | ||||
Capitalized Computer Software, Net [Abstract] | |||||
Capitalized computer software costs, net of amortization | $ 10,800,000 | 20,100,000 | |||
Amortization expense | $ 9,600,000 | 10,000,000 | $ 8,900,000 | ||
Goodwill Annual Impairment Test [Abstract] | |||||
Number of reporting units, step-zero applied | reporting_unit | 1 | ||||
Number of reporting units | reporting_unit | 5 | ||||
Number of reporting units, step-zero not applied | reporting_unit | 4 | ||||
Percent of finite lived intangible assets under amortization method | 0.80 | ||||
Impairment of intangible assets, finite-lived | $ 0 | 0 | 0 | ||
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 | ||
Research and Development Expense [Abstract] | |||||
Research and development expense as a percentage of cost of goods sold | 3.00% | 3.00% | 3.00% | ||
Commercial and Industrial Lighting Business | Definitive Agreement | |||||
Basis Of Presentation [Abstract] | |||||
Disposal, revenue | $ 509,400,000 | ||||
Commercial and Industrial Lighting Business | Disposal Group, Not Discontinued Operations | |||||
Basis Of Presentation [Abstract] | |||||
Cash purchase price | $ 350,000,000 | ||||
Minimum | |||||
Goodwill Annual Impairment Test [Abstract] | |||||
Useful life, intangible assets | 5 years | ||||
Maximum | |||||
Goodwill Annual Impairment Test [Abstract] | |||||
Useful life, intangible assets | 30 years | ||||
Capitalized Computer Software Costs | Minimum | |||||
Capitalized Computer Software, Net [Abstract] | |||||
Depreciable lives | 3 years | ||||
Capitalized Computer Software Costs | Maximum | |||||
Capitalized Computer Software, Net [Abstract] | |||||
Depreciable lives | 5 years | ||||
Joint Venture In Hong Kong | |||||
Principles Of Consolidation [Abstract] | |||||
Ownership percentage | 50.00% |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Commercial and Industrial Lighting Business - Discontinued Operations, Held-for-Sale - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Oct. 26, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash purchase price | $ 350 | |
Pre-tax transaction and separation costs | $ 7 | |
Tax benefit related to realization of book-to-tax basis differences | $ 25.1 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Income From Discontinued Operations, Net of Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Income from discontinued operations, net of taxes | $ 34.5 | $ 21.2 | $ 39.4 |
Commercial and Industrial Lighting Business | Discontinued Operations, Held-for-Sale | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Net sales | 509.4 | 503.5 | 644.5 |
Cost of goods sold | 403.4 | 385.6 | 469.4 |
Gross profit | 106 | 117.9 | 175.1 |
Selling & administrative expenses | 88.5 | 85.1 | 111.2 |
Operating income | 17.5 | 32.8 | 63.9 |
Other expense | (4.1) | (4) | (12.7) |
Income from discontinued operations before income taxes | 13.4 | 28.8 | 51.2 |
(Benefit) provision for income taxes | (21.1) | 7.6 | 11.8 |
Income from discontinued operations, net of taxes | $ 34.5 | $ 21.2 | $ 39.4 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Balance Sheet Information for Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale - current | $ 179.5 | $ 167.9 |
Assets held for sale - non-current | 177.1 | 184.1 |
Liabilities held for sale - current | 91.3 | 79.7 |
Liabilities held for sale - non-current | 18.8 | 17.8 |
Discontinued Operations, Held-for-Sale | Commercial and Industrial Lighting Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 0.7 | 1 |
Accounts receivable | 83.1 | 81.3 |
Inventories, net | 89.8 | 80.6 |
Other current assets | 5.9 | 5 |
Assets held for sale - current | 179.5 | 167.9 |
Property, Plant, and Equipment, net | 77.7 | 80.4 |
Goodwill | 50.2 | 50.2 |
Other Intangible assets, net | 37.3 | 40 |
Other long-term assets | 11.9 | 13.5 |
Assets held for sale - non-current | 177.1 | 184.1 |
Accounts payable | 50.2 | 38.8 |
Accrued salaries, wages and employee benefits | 8.5 | 7.1 |
Accrued insurance | 3.9 | 4.4 |
Other accrued liabilities | 28.7 | 29.4 |
Liabilities held for sale - current | 91.3 | 79.7 |
Other Non-Current Liabilities | 18.8 | 17.8 |
Liabilities held for sale - non-current | $ 18.8 | $ 17.8 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Percentage of sales to distributors | 66.667% | |
Contract liabilities - deferred revenue | $ 16.7 | $ 29.8 |
Change in contract liability | (13.1) | |
Revenue recognized | 27.1 | |
Increase in current year deferrals | $ 14 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 1,100.1 | $ 1,083.4 | $ 1,054.3 | $ 956.3 | $ 917.1 | $ 970.3 | $ 837.5 | $ 957.6 | $ 4,194.1 | $ 3,682.5 | $ 3,946.6 |
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 3,809.8 | 3,356.9 | 3,546.1 | ||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 384.3 | 325.6 | 400.5 | ||||||||
Electrical Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,859.7 | 1,603.1 | 1,776.6 | ||||||||
Electrical Solutions | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,604.9 | 1,389 | 1,509.1 | ||||||||
Electrical Solutions | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 254.8 | 214.1 | 267.5 | ||||||||
Electrical Solutions | Commercial and Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,150.1 | 918.7 | 1,013.1 | ||||||||
Electrical Solutions | Heavy Industrial | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 337.5 | 302 | 382.9 | ||||||||
Electrical Solutions | Residential and Retail | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 372.1 | 382.4 | 380.6 | ||||||||
Utility Solutions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,334.4 | 2,079.4 | 2,170 | ||||||||
Utility Solutions | United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 2,204.9 | 1,967.9 | 2,037 | ||||||||
Utility Solutions | International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 129.5 | 111.5 | 133 | ||||||||
Utility Solutions | Utility T&D Components | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | 1,679.8 | 1,445.1 | 1,434.2 | ||||||||
Utility Solutions | Utility Communications and Controls | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Net sales | $ 654.6 | $ 634.3 | $ 735.8 |
Revenue - Unsatisfied Performan
Revenue - Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 $ in Millions | Dec. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 420 |
Unsatisfied performance obligation, period of recognition | 2 years |
Business Acquisitions and Dis_3
Business Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Jun. 30, 2021 | Aug. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||||||
Goodwill | $ 1,873.1 | $ 1,871.3 | $ 1,873.1 | $ 1,761.6 | ||
Acquisitions, net of cash acquired | (0.1) | 239.6 | 70.8 | |||
Gain on disposition of business | (6.9) | 0 | $ 21.7 | |||
Disposal by sale | Haefely Test, AG | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from disposal of business | $ 38.1 | |||||
Dispositions, tangible assets | 32.3 | |||||
Dispositions, goodwill | 3.1 | |||||
Dispositions, liabilities | 12.2 | |||||
Dispositions, translation adjustments recognized | 7.7 | |||||
Gain on disposition of business | $ 21.7 | |||||
Disposal by sale | Consumer Analytics Solutions | ||||||
Business Acquisition [Line Items] | ||||||
Proceeds from disposal of business | $ 9.8 | |||||
Dispositions, tangible assets | 15.9 | |||||
Dispositions, goodwill | 1.9 | |||||
Dispositions, liabilities | 1.5 | |||||
Gain on disposition of business | 6.9 | |||||
Dispositions, definite-lived intangibles | $ 8.7 | |||||
2020 Acquisitions | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 106.3 | 106.3 | ||||
Deferred purchase price and net working capital settlements | 2 | |||||
Acquisitions, net of cash acquired | $ (0.1) | 239.6 | ||||
Armorcast | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred to acquire business | 136.3 | |||||
Intangible asset acquired | 51.2 | 51.2 | ||||
Goodwill | $ 71.6 | 71.6 | ||||
Weighted average estimated useful life | 19 years | |||||
Beckwith | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred to acquire business | $ 54.7 | |||||
Intangible asset acquired | 32.6 | 32.6 | ||||
Goodwill | $ 12.7 | 12.7 | ||||
Weighted average estimated useful life | 15 years | |||||
AccelTex | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred to acquire business | $ 45.1 | |||||
Intangible asset acquired | 19.4 | 19.4 | ||||
Goodwill | $ 21 | 21 | ||||
Weighted average estimated useful life | 15 years | |||||
Other 2020 Acquisition | ||||||
Business Acquisition [Line Items] | ||||||
Consideration transferred to acquire business | $ 1.6 | |||||
Goodwill | $ 1 | $ 1 |
Business Acquisitions and Dis_4
Business Acquisitions and Dispositions - Summary of the 2020 Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | |||
Goodwill | $ 1,871.3 | $ 1,873.1 | $ 1,761.6 |
2020 Acquisitions | |||
Business Acquisition [Line Items] | |||
Tangible assets acquired | 64.7 | ||
Intangible assets | 103.2 | ||
Goodwill | 106.3 | ||
Net deferred taxes | (8.8) | ||
Other liabilities assumed | (27.8) | ||
Total Estimate of Consideration Transferred, Net of Cash Acquired | $ 237.6 |
Receivables and Allowances (Det
Receivables and Allowances (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts and Financing Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Trade accounts receivable | $ 695.7 | $ 574.1 |
Non-trade receivables | 24.9 | 21.7 |
Accounts receivable, gross | 720.6 | 595.8 |
Allowance for credit memos, returns and cash discounts | (34.7) | (31.9) |
Allowance for doubtful accounts | (10.6) | (10.6) |
Total allowances | (45.3) | (42.5) |
ACCOUNTS RECEIVABLE, NET | $ 675.3 | $ 553.3 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 241 | $ 185 |
Work-in-process | 129.4 | 92.7 |
Finished goods | 428.6 | 329.1 |
Inventory, gross | 799 | 606.8 |
Excess of FIFO over LIFO cost basis | (136.9) | (80.1) |
INVENTORIES, NET | $ 662.1 | $ 526.7 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 1,873.1 | $ 1,761.6 |
Current year acquisitions | 99.7 | |
Prior year acquisitions | 6.6 | 3.1 |
Dispositions | (1.9) | |
Foreign currency translation | (6.5) | 8.7 |
Goodwill, end of period | 1,871.3 | 1,873.1 |
Electrical Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 613.7 | 589 |
Current year acquisitions | 21.1 | |
Prior year acquisitions | 0 | 0.5 |
Dispositions | 0 | |
Foreign currency translation | (1.2) | 3.1 |
Goodwill, end of period | 612.5 | 613.7 |
Utility Solutions | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 1,259.4 | 1,172.6 |
Current year acquisitions | 78.6 | |
Prior year acquisitions | 6.6 | 2.6 |
Dispositions | (1.9) | |
Foreign currency translation | (5.3) | 5.6 |
Goodwill, end of period | $ 1,258.8 | $ 1,259.4 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Goodwill [Line Items] | |||
Goodwill | $ 1,871.3 | $ 1,873.1 | $ 1,761.6 |
Year to date amortization expense | 75.7 | 72.1 | $ 68.7 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Amortization expense, 2022 | 69.8 | ||
Amortization expense, 2023 | 65.4 | ||
Amortization expense, 2024 | 61.4 | ||
Amortization expense, 2025 | 57.3 | ||
Amortization expense, 2026 | $ 53.7 | ||
Percent of finite lived intangible assets under amortization method | 0.80 | ||
2020 Acquisitions | |||
Goodwill [Line Items] | |||
Goodwill | $ 106.3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,082.5 | $ 1,100.9 |
Accumulated Amortization | (441.6) | (370.9) |
TOTAL OTHER INTANGIBLE ASSETS | 1,123.1 | 1,141.5 |
Tradenames and other | ||
Other Intangible Assets [Line Items] | ||
Accumulated Amortization | 0 | 0 |
Indefinite-lived intangible assets (excluding goodwill) | 40.6 | 40.6 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 181.3 | 182 |
Accumulated Amortization | (67.6) | (59.5) |
Customer relationships, developed technology and other | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 901.2 | 918.9 |
Accumulated Amortization | $ (374) | $ (311.4) |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 53.3 | $ 56.4 | |
Other comprehensive (loss) income | (1.6) | 3.7 | $ (17.2) |
Available-for-sale investments | 54 | 57.7 | |
Allowance for credit losses related to our available-for-sale debt securities | 0 | ||
Available-for-sale investments, accumulated unrealized losses | 0.1 | 0.1 | |
Available-for-sale investments, fair value of securities with unrealized losses | 12.2 | 6.1 | |
Unrealized Gain (Loss) on Available-for-Sale Securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Other comprehensive (loss) income | (0.4) | $ 0.4 | $ 2.6 |
State and Local Municipal Bonds | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 53.3 |
Investments - Amortized Cost Ba
Investments - Amortized Cost Basis (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Available-for-sale securities | ||
Amortized Cost | $ 53.3 | $ 56.4 |
Gross Unrealized Losses | (0.1) | (0.1) |
Fair Value | 54 | 57.7 |
Trading securities | ||
Fair Value | 24.5 | 22.7 |
Estimate of Fair Value Measurement | ||
Available-for-sale securities | ||
Amortized Cost | 53.3 | 56.4 |
Gross Unrealized Gains | 0.8 | 1.4 |
Gross Unrealized Losses | (0.1) | (0.1) |
Fair Value | 54 | 57.7 |
Trading securities | ||
Amortized Cost | 12.2 | 13.1 |
Gross Unrealized Gains | 12.3 | 9.6 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 24.5 | 22.7 |
Investments, Amortized Cost | 65.5 | 69.5 |
Investments, Gross Unrealized Gains | 13.1 | 11 |
Investments, Gross Unrealized Loss | (0.1) | (0.1) |
TOTAL INVESTMENTS | 78.5 | 80.4 |
Reported Value Measurement | ||
Available-for-sale securities | ||
Fair Value | 54 | 57.7 |
Trading securities | ||
Fair Value | 24.5 | 22.7 |
TOTAL INVESTMENTS | $ 78.5 | $ 80.4 |
Investments - Contractual Matur
Investments - Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Amortized Cost Due within 1 year | $ 9.4 | |
Amortized Cost After 1 year but within 5 years | 37.3 | |
Amortized Cost After 5 years but within 10 years | 0 | |
Amortized Cost Due after 10 years | 6.6 | |
Amortized Cost | 53.3 | $ 56.4 |
Fair Value | ||
Fair Value Due within 1 year | 9.4 | |
Fair Value After 1 year but within 5 years | 38 | |
Fair Value After 5 years but within 10 years | 0 | |
Fair Value Due after 10 years | 6.6 | |
Available-for-sale securities, fair value | $ 54 | $ 57.7 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 1,153.9 | $ 1,107.4 | |
Less accumulated depreciation | (694.4) | (668.7) | |
PROPERTY, PLANT, AND EQUIPMENT, NET | 459.5 | 438.7 | |
Depreciation | 61.7 | 61.7 | $ 60.2 |
Land | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | 28.1 | 27.1 | |
Buildings and improvements | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 209.7 | 213.7 | |
Buildings and improvements | Minimum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 20 years | ||
Buildings and improvements | Maximum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 45 years | ||
Machinery, tools, and equipment | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 846.6 | 812.9 | |
Machinery, tools, and equipment | Minimum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 3 years | ||
Machinery, tools, and equipment | Maximum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 15 years | ||
Construction-in-progress | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 69.5 | $ 53.7 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 67.3 | $ 37.4 |
Accrued income taxes | 4.8 | 4.5 |
Contract liabilities - deferred revenue | 16.7 | 29.8 |
Customer refund liability | 16.7 | 15.9 |
Accrued warranties | 36.7 | 26 |
Current operating lease liabilities | 27.1 | 30.6 |
Other | 94.1 | 80.4 |
Other accrued liabilities | $ 263.4 | $ 224.6 |
Other Non-Current Liabilities_2
Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities, Noncurrent [Abstract] | ||
Pensions | $ 189.8 | $ 198.6 |
Other post-employment benefits | 17 | 21.2 |
Deferred tax liabilities | 114.7 | 126.8 |
Accrued warranties long-term | 29.4 | 46.7 |
Non-current operating lease liabilities | 58.3 | 71.9 |
Other | 112.1 | 131.6 |
TOTAL | $ 521.3 | $ 596.8 |
Retirement Benefits - Narrative
Retirement Benefits - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)benefit_plan | Dec. 31, 2020USD ($)benefit_plan | Dec. 31, 2019USD ($)benefit_plan | |
Defined Benefit Plan Disclosure [Line Items] | |||
Number of defined contribution pension plans | benefit_plan | 4 | ||
Defined contribution pension plans, total costs | $ 23.3 | $ 21 | $ 20.8 |
Number of multiemployer defined benefit pension plans | benefit_plan | 1 | 1 | 1 |
Multiemployer plan total employer contributions | $ 0.2 | $ 0.2 | $ 0.2 |
Restructuring charges | $ 3.9 | $ 20.4 | 28.8 |
Futures contract supported by cash or cash equivalents | 100.00% | ||
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.90% | 2.60% | |
United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 1.80% | 1.40% | |
Canada | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 2.98% | 2.55% | |
Pension Benefits | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement loss | $ 7.6 | ||
Benefit obligation | 937.7 | $ 994.2 | 938.7 |
Accumulated benefit obligation | 937.6 | 993.9 | |
Settlement of multi-employer pension plan | $ 5 | $ 6 | $ 10 |
Discount rate | 2.79% | 2.47% | 3.17% |
Employer contributions | $ 7.9 | $ 29.5 | |
Pension Benefits | United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Curtailment loss | $ 0.3 | ||
Defined benefit obligation per plan, as a percent of total benefit obligation | 87.00% | ||
Pension Benefits | Qualified Plan | United Kingdom | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer contributions | $ 0.1 | ||
Company Stock | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employer stock included in plan assets | $ 0 | $ 0 |
Retirement Benefits - Change in
Retirement Benefits - Change in Benefit Obligations and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | $ 994.2 | $ 938.7 | |
Service cost | 1 | 1.2 | $ 2.2 |
Interest cost | 23.8 | 28 | 34.6 |
Plan participants’ contributions | 0 | 0 | |
Amendments | 3.6 | 0 | |
Actuarial loss/(gain) | (22) | 89.6 | |
Curtailment gain | 0 | (0.1) | |
Settlements | (0.1) | (24.7) | |
Currency impact | (0.9) | 5.1 | |
Other | (0.3) | 0 | |
Benefits paid | (61.6) | (43.6) | |
Benefit obligation at end of year | 937.7 | 994.2 | 938.7 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 805.1 | 743.4 | |
Actual return on plan assets | 15.6 | 94.9 | |
Employer contributions | 7.9 | 29.5 | |
Plan participants’ contributions | 0 | 0 | |
Settlements | (0.1) | (24.7) | |
Currency impact | (1.3) | 5.6 | |
Benefits paid | (61.6) | (43.6) | |
Fair value of plan assets at end of year | 765.6 | 805.1 | 743.4 |
FUNDED STATUS | (172.1) | (189.1) | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Prepaid pensions (included in Other long-term assets) | 24.8 | 16.4 | |
Accrued benefit liability (short-term and long-term) | (196.9) | (205.5) | |
NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET | (172.1) | (189.1) | |
Amounts recognized in Accumulated other comprehensive loss (income) consist of: | |||
Net actuarial loss | 263.1 | 275.4 | |
Prior service cost (credit) | 6.9 | 3.5 | |
NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 270 | 278.9 | |
Other Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 23.2 | 23.8 | |
Service cost | 0 | 0 | 0.1 |
Interest cost | 0.6 | 0.7 | 1.1 |
Plan participants’ contributions | 0 | 0 | |
Amendments | 0 | 0 | |
Actuarial loss/(gain) | (4.2) | 0.2 | |
Curtailment gain | 0 | 0 | |
Settlements | 0 | 0 | |
Currency impact | 0 | 0 | |
Other | 0 | 0 | |
Benefits paid | (0.7) | (1.5) | |
Benefit obligation at end of year | 18.9 | 23.2 | 23.8 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 0.7 | 1.5 | |
Plan participants’ contributions | 0 | 0 | |
Settlements | 0 | 0 | |
Currency impact | 0 | 0 | |
Benefits paid | (0.7) | (1.5) | |
Fair value of plan assets at end of year | 0 | 0 | $ 0 |
FUNDED STATUS | (18.9) | (23.2) | |
Amounts recognized in the consolidated balance sheet consist of: | |||
Prepaid pensions (included in Other long-term assets) | 0 | 0 | |
Accrued benefit liability (short-term and long-term) | (18.9) | (23.2) | |
NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET | (18.9) | (23.2) | |
Amounts recognized in Accumulated other comprehensive loss (income) consist of: | |||
Net actuarial loss | (3.4) | 0.6 | |
Prior service cost (credit) | 0 | 0 | |
NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS | $ (3.4) | $ 0.6 |
Retirement Benefits - Accumulat
Retirement Benefits - Accumulated Benefit Obligation In Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Pension and Other Postretirement Benefits Cost (Reversal of Cost) [Abstract] | ||
Projected benefit obligation | $ 817.7 | $ 865.1 |
Accumulated benefit obligation | 817.7 | 865.1 |
Fair value of plan assets | $ 620.7 | $ 659.5 |
Retirement Benefits - Component
Retirement Benefits - Components of Pension and Other Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Net periodic benefit cost | $ 0 | $ 7.6 | $ 0 |
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 1 | 1.2 | 2.2 |
Interest cost | 23.8 | 28 | 34.6 |
Expected return on plan assets | (36.5) | (33.9) | (30.7) |
Amortization of prior service cost (credit) | 0.2 | 0.2 | 0.2 |
Amortization of actuarial losses (gains) | 10.8 | 9.8 | 9.6 |
Curtailment and settlement losses | 0 | 7.5 | 0.3 |
Net periodic benefit cost | (0.7) | 12.8 | 16.2 |
Changes recognized in other comprehensive loss (income), before tax: | |||
Current year net actuarial loss (gain) | (1.4) | 28.6 | 31.5 |
Current year prior service credit | 3.6 | 0 | 0 |
Amortization of prior service (cost) credit | (0.2) | (0.2) | (0.2) |
Amortization of net actuarial (losses) gains | (10.8) | (9.8) | (9.6) |
Currency impact | (0.2) | 0.1 | 0.7 |
Settlement adjustment | 0 | (7.6) | 0 |
Curtailment adjustments | 0 | 0.1 | (0.3) |
Total recognized in other comprehensive loss | (9) | 11.2 | 22.1 |
TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS | (9.7) | 24 | 38.3 |
Other Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) [Abstract] | |||
Service cost | 0 | 0 | 0.1 |
Interest cost | 0.6 | 0.7 | 1.1 |
Expected return on plan assets | 0 | 0 | 0 |
Amortization of prior service cost (credit) | 0 | (0.4) | (0.9) |
Amortization of actuarial losses (gains) | (0.1) | (0.1) | 0.1 |
Curtailment and settlement losses | 0 | 0 | 0 |
Net periodic benefit cost | 0.5 | 0.2 | 0.4 |
Changes recognized in other comprehensive loss (income), before tax: | |||
Current year net actuarial loss (gain) | (4.1) | 0.1 | (2) |
Current year prior service credit | 0 | 0 | 0 |
Amortization of prior service (cost) credit | 0 | 0.4 | 0.9 |
Amortization of net actuarial (losses) gains | 0.1 | 0.1 | (0.1) |
Currency impact | 0 | 0 | 0 |
Settlement adjustment | 0 | 0 | 0 |
Curtailment adjustments | 0 | 0 | 0 |
Total recognized in other comprehensive loss | (4) | 0.6 | (1.2) |
TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS | $ (3.5) | $ 0.8 | $ (0.8) |
Retirement Benefits - Projected
Retirement Benefits - Projected Benefit Obligation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.79% | 2.47% | 3.17% |
Rate of compensation increase | 0.08% | 0.24% | 2.94% |
Discount rate | 2.47% | 3.17% | 4.24% |
Expected return on plan assets | 4.66% | 4.69% | 4.75% |
Rate of compensation increase | 0.24% | 2.94% | 3.25% |
Other Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 2.90% | 2.50% | 3.30% |
Rate of compensation increase | 3.87% | 3.99% | 4.00% |
Discount rate | 2.50% | 3.30% | 4.40% |
Rate of compensation increase | 3.99% | 4.00% | 4.05% |
Retirement Benefits - Assumed H
Retirement Benefits - Assumed Health Care Cost Trend Rates (Details) - Other Benefits | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Health care cost trend assumed for next year | 6.20% | 6.40% | 6.60% |
Rate to which the cost trend is assumed to decline | 5.00% | 5.00% | 5.00% |
Retirement Benefits - Combined
Retirement Benefits - Combined Targeted and Actual Domestic and Foreign Pension Plans Weighted Average Asset Allocation (Details) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, actual | 100.00% | 100.00% | |
Forecast | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, target | 100.00% | ||
Equity securities | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, actual | 22.00% | 24.00% | |
Equity securities | Forecast | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, target | 30.00% | ||
Debt securities & Cash | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, actual | 77.00% | 74.00% | |
Debt securities & Cash | Forecast | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, target | 70.00% | ||
Alternative Investments | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, actual | 1.00% | 2.00% | |
Alternative Investments | Forecast | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Percentage of plan assets, target | 0.00% |
Retirement Benefits - Fair Valu
Retirement Benefits - Fair Value Pension Plan Assets (Details) - Pension Benefits - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 765.6 | $ 805.1 | $ 743.4 |
Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.9 | 26.6 | |
Equity Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 31.7 | 29.8 | |
Common Pooled Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 123.3 | 153.9 | |
U.S. Treasuries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55 | 52 | |
State and Local Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.2 | 9.3 | |
Sovereign Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.1 | 9.3 | |
Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 141.6 | 145.1 | |
Fixed Income Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55.5 | 59.9 | |
Common Pooled Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 306.3 | 279.4 | |
Alternative Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.1 | 14.3 | |
Common Pooled Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22.9 | 25.5 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 96.6 | 116.8 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 8.9 | 26.6 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 31.7 | 29.8 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Pooled Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasuries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | State and Local Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Sovereign Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Fixed Income Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55.5 | 59.9 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Pooled Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Alternative Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Pooled Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0.5 | 0.5 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 630.8 | 674 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Equity Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Common Pooled Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 123.3 | 153.9 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | U.S. Treasuries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 55 | 52 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | State and Local Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 6.2 | 9.3 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Sovereign Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.1 | 9.3 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 141.6 | 145.1 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Fixed Income Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Common Pooled Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 275.2 | 279.4 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Alternative Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Common Pooled Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 22.4 | 25 | |
Unobservable inputs for which little or no market data exists (Level 3) | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Equity Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Common Pooled Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | U.S. Treasuries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | State and Local Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Sovereign Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Fixed Income Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Common Pooled Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Alternative Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Unobservable inputs for which little or no market data exists (Level 3) | Common Pooled Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments Priced Using Net Asset Value | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 38.2 | 14.3 | |
Investments Priced Using Net Asset Value | Cash and cash equivalents | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments Priced Using Net Asset Value | Equity Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments Priced Using Net Asset Value | Common Pooled Equity Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments Priced Using Net Asset Value | U.S. Treasuries | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments Priced Using Net Asset Value | State and Local Municipal Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments Priced Using Net Asset Value | Sovereign Debt | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments Priced Using Net Asset Value | Corporate Bonds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments Priced Using Net Asset Value | Fixed Income Mutual Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Investments Priced Using Net Asset Value | Common Pooled Fixed Income Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 31.1 | 0 | |
Investments Priced Using Net Asset Value | Alternative Investment Funds | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | 7.1 | 14.3 | |
Investments Priced Using Net Asset Value | Common Pooled Fund | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Retirement Benefits - Estimated
Retirement Benefits - Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2021USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | $ 55.1 |
2023 | 55.4 |
2024 | 55.4 |
2025 | 55.6 |
2026 | 55.8 |
2027-2031 | 263.9 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2022 | 1.7 |
2023 | 1.6 |
2024 | 1.5 |
2025 | 1.4 |
2026 | 1.3 |
2027-2031 | $ 5.6 |
Debt - Summary of Long-term Deb
Debt - Summary of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Mar. 12, 2021 | Dec. 31, 2020 | Feb. 28, 2018 | Aug. 31, 2017 | Mar. 31, 2016 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,435.5 | $ 1,436.9 | ||||
Notes 2022 Term | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, stated percentage | 3.625% | 3.625% | ||||
Long-term debt | $ 0 | 299.2 | ||||
Notes 2026 Term | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, stated percentage | 3.35% | 3.35% | ||||
Long-term debt | $ 397.2 | 396.5 | ||||
Notes 2027 Term | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, stated percentage | 3.15% | 3.15% | ||||
Long-term debt | $ 297 | 296.4 | ||||
Notes 2028 Term | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, stated percentage | 3.50% | 3.50% | ||||
Long-term debt | $ 445.5 | 444.8 | ||||
Notes 2031 Term | Senior Notes | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes, stated percentage | 2.30% | |||||
Long-term debt | $ 295.8 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) | Mar. 12, 2021 | Feb. 28, 2018 | Aug. 31, 2017 | Mar. 31, 2016 | Jun. 30, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | $ 16,800,000 | $ 0 | $ 0 | |||||
Issuance of long-term debt | 298,700,000 | 225,000,000 | 0 | |||||
Short-term debt | 9,700,000 | 153,100,000 | ||||||
Commercial paper | 0 | 150,000,000 | ||||||
Borrowings to support international operations in China | 1,600,000 | 3,100,000 | ||||||
Borrowings to support operations | 8,100,000 | |||||||
Interest and fees paid | 65,600,000 | 54,400,000 | $ 62,800,000 | |||||
Other LOC | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit | 30,000,000 | 32,100,000 | ||||||
2021 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, available borrowing capacity | $ 75,000,000 | |||||||
Line of credit facility, covenants, maximum debt to capitalization percentage | 65.00% | |||||||
Notes 2022 Term | ||||||||
Debt Instrument [Line Items] | ||||||||
Loss on extinguishment of debt | (16,000,000) | |||||||
Letters of Credit | Other LOC | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit | $ 23,200,000 | $ 19,300,000 | ||||||
Letters of Credit | 2021 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit, maximum borrowing capacity | $ 50,000,000 | |||||||
Line of Credit | Revolving Credit Facility | 2021 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Agreement term | 5 years | |||||||
Line of credit, maximum borrowing capacity | $ 750,000,000 | |||||||
Senior Notes | Notes 2031 Term | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 300,000,000 | |||||||
Interest rate, stated percentage | 2.30% | |||||||
Proceeds from issuance of long-term debt | $ 295,500,000 | |||||||
Senior Notes | Notes 2022 Term | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 300,000,000 | |||||||
Interest rate, stated percentage | 3.625% | 3.625% | ||||||
Loss on extinguishment of debt | $ (16,800,000) | |||||||
Cash premium from extinguishment of debt | $ 16,000,000 | |||||||
Senior Notes | Notes 2028 Term | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 450,000,000 | |||||||
Interest rate, stated percentage | 3.50% | 3.50% | ||||||
Issuance of long-term debt | $ 442,600,000 | |||||||
Senior Notes | Notes 2027 Term | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 300,000,000 | |||||||
Interest rate, stated percentage | 3.15% | 3.15% | ||||||
Issuance of long-term debt | $ 294,600,000 | |||||||
Senior Notes | Notes 2026 Term | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount | $ 400,000,000 | |||||||
Interest rate, stated percentage | 3.35% | 3.35% | ||||||
Proceeds from issuance of long-term debt | $ 393,400,000 | |||||||
Senior Notes | Revolving Credit Facility | 2021 Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Line of credit facility, accordion feature, higher borrowing capacity option | $ 1,250,000,000 |
Debt - Other Information Relate
Debt - Other Information Related to Short-term Debt (Details) | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Interest rate at year end | 2.98% | 0.32% |
Income Taxes - Components of In
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income before income taxes: | |||
United States | $ 347.5 | $ 340.7 | $ 345.2 |
International | 111.8 | 83.8 | 124 |
Income from continuing operations before income taxes | 459.3 | 424.5 | 469.2 |
Provision for income taxes — current: | |||
Federal | 43.3 | 56.3 | 57.9 |
State | 13 | 15.1 | 14.2 |
International | 22.7 | 17 | 25.1 |
Total provision — current | 79 | 88.4 | 97.2 |
Provision for income taxes — deferred: | |||
Federal | 8.8 | 1.5 | 7.6 |
State | 1.9 | 0.2 | (0.7) |
International | (1.5) | (0.3) | (2.9) |
Total provision — deferred | 9.2 | 1.4 | 4 |
TOTAL PROVISION FOR INCOME TAXES | $ 88.2 | $ 89.8 | $ 101.2 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tax Credit Carryforward [Line Items] | |||
Income tax credits | $ 22.8 | $ 21.1 | |
Loss carryforwards | 16.7 | ||
Valuation allowance | 32.6 | 29.5 | |
Undistributed earnings of foreign subsidiaries | 370 | ||
Income taxes paid | 84 | 96.2 | $ 91.9 |
Unrecognized tax benefits that would impact effective tax rate | 36.2 | ||
Unrecognized tax benefits timing of deductibility unknown | 0.9 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 0.3 | 0.2 | $ 0.1 |
Unrecognized tax benefits, income tax penalties and interest accrued | 7.6 | $ 7.3 | |
Minimum | |||
Tax Credit Carryforward [Line Items] | |||
Decrease in unrecognized tax benefits is reasonably possible, estimated range of change | 5 | ||
Maximum | |||
Tax Credit Carryforward [Line Items] | |||
Decrease in unrecognized tax benefits is reasonably possible, estimated range of change | 14 | ||
Tax credit carryforward indefinitely | |||
Tax Credit Carryforward [Line Items] | |||
Income tax credits | 16.6 | ||
Loss carryforwards | 7.1 | ||
Carryforward Subject To Expiration | |||
Tax Credit Carryforward [Line Items] | |||
Income tax credits | 6.2 | ||
Loss carryforwards | $ 9.5 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Inventories | $ 10.2 | $ 7.7 |
Lease liabilities | 20.5 | 24.6 |
Income tax credits | 22.8 | 21.1 |
Accrued liabilities | 38.5 | 40.5 |
Pension | 43.1 | 48.4 |
Basis difference in subsidiary | 25.1 | 0 |
Post retirement and post employment benefits | 4.9 | 6 |
Stock-based compensation | 6.7 | 7.3 |
Loss carryforwards | 17.3 | 20.5 |
Miscellaneous other | 17 | 17 |
Gross deferred tax assets | 206.1 | 193.1 |
Valuation allowance | (32.6) | (29.5) |
Total deferred tax assets, net of valuation allowance | 173.5 | 163.6 |
Deferred tax liabilities: | ||
Liability on undistributed foreign earnings | (7.9) | (9.6) |
Goodwill and intangibles | (205.2) | (207.2) |
Right-of-use assets | (19.5) | (23.9) |
Property, plant, and equipment | (50.4) | (44.6) |
Total deferred tax liabilities | (283) | (285.3) |
Deferred taxes are reflected in the Consolidated Balance Sheet as follows: | ||
Non-current tax assets (included in Other long-term assets) | 5.2 | 5.1 |
Non-current tax liabilities (included in Other Non-Current Liabilities) | (114.7) | (126.8) |
TOTAL NET DEFERRED TAX LIABILITY | $ (109.5) | $ (121.7) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 47.6 | $ 41.9 | $ 38.9 |
Additions based on tax positions relating to the current year | 6.1 | 7.4 | 7 |
Reductions based on expiration of statute of limitations | (10.3) | (6.2) | (5.2) |
Additions/(Subtractions) to tax positions relating to previous years | (2.2) | ||
Additions/(Subtractions) to tax positions relating to previous years | 4.5 | 1.6 | |
Settlements | 0 | 0 | (0.4) |
TOTAL UNRECOGNIZED TAX BENEFITS | $ 41.2 | $ 47.6 | $ 41.9 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 21.00% | 21.00% | 21.00% |
State income taxes, net of federal benefit | 2.50% | 2.90% | 2.30% |
Foreign income taxes | (0.50%) | (0.20%) | (0.80%) |
Federal R&D Credit | (1.40%) | (1.30%) | (1.00%) |
Other, net | (2.40%) | (1.20%) | 0.10% |
CONSOLIDATED EFFECTIVE INCOME TAX RATE | 19.20% | 21.20% | 21.60% |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Account receivable, net of allowances | $ 675.3 | $ 553.3 |
Accounts receivable, allowances | 10.6 | 10.6 |
Investments carried at fair value | 78.5 | 80.4 |
Purchase of trading securities held-for-investment | 2.7 | 3 |
Proceeds from the sale of trading securities held-for-investment | 3.6 | 2 |
Long-term Debt | 1,435.5 | 1,436.9 |
Long-term debt, fair value | $ 1,524.5 | $ 1,569.5 |
Net Sales | Top Ten Customers | Customer Concentration Risk | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Concentration risk, percentage | 42.00% |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurement - Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale investments | $ 54 | $ 57.7 |
Trading securities | 24.5 | 22.7 |
Deferred compensation plan liabilities | (24.5) | (22.7) |
Derivatives: | ||
Forward exchange contracts-Assets | 0.5 | |
Forward exchange contracts-(Liabilities) | (0.8) | |
Fair value, net asset (liability) | 113 | 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 | 24.5 | 22.7 |
Deferred compensation plan liabilities | (24.5) | (22.7) |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | |
Forward exchange contracts-(Liabilities) | 0 | |
Fair value, net asset (liability) | 58.5 | 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 | 54 | 57.7 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0.5 | |
Forward exchange contracts-(Liabilities) | (0.8) | |
Fair value, net asset (liability) | 54.5 | 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 | |
Fair value, net asset (liability) | 0 | 0 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 58.5 | 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] | ||
Cash and cash equivalents | 58.5 | 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] | ||
Cash and cash equivalents | 0 | 0 |
Money Market Funds | Unobservable inputs for which little or no market data exists (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments and Contingencies Disclosure [Abstract] | ||
Total environmental liabilities | $ 6.4 | $ 7.6 |
Capital Stock - Common Stock Ou
Capital Stock - Common Stock Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Common Stock, Shares, Outstanding [Roll Forward] | |||
Common stock, shares outstanding, beginning of period (shares) | 54,382,659 | ||
Common stock, shares outstanding, end of period (shares) | 54,518,047 | 54,382,659 | |
Common Stock | |||
Common Stock, Shares, Outstanding [Roll Forward] | |||
Common stock, shares outstanding, beginning of period (shares) | 54,383,000 | 54,514,000 | 54,715,000 |
Exercise of stock appreciation rights (shares) | 147,000 | 87,000 | 84,000 |
Director compensation arrangements, net (shares) | 7,000 | 9,000 | 10,000 |
Restricted/performance shares activity, net of forfeitures (shares) | 101,000 | 132,000 | 39,000 |
Acquisition/surrender of shares (shares) | (120,000) | (359,000) | (334,000) |
Common stock, shares outstanding, end of period (shares) | 54,518,000 | 54,383,000 | 54,514,000 |
Capital Stock - Reserved Common
Capital Stock - Reserved Common Stock (Details) - Common Stock shares in Thousands | Dec. 31, 2021shares |
Class of Stock [Line Items] | |
Future grant of stock-based compensation (in shares) | 1,684 |
Shares reserved under other equity compensation plans (in shares) | 139 |
TOTAL (in shares) | 1,823 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | Feb. 11, 2021USD ($)shares | Feb. 28, 2021$ / sharesshares | Feb. 29, 2020shares | Dec. 31, 2018shares | Dec. 31, 2017shares | Dec. 31, 2021USD ($)installment$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2018shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum number of shares authorized (shares) | shares | 9,700,000 | ||||||||
Stock-based compensation | $ | $ 17.5 | $ 21.9 | $ 14.5 | ||||||
Income tax benefits | $ | 3.2 | 3.2 | 2.2 | ||||||
Net tax windfall as a result of exercise or vesting of awards | $ | 6.8 | 3.4 | 3.3 | ||||||
Unrecognized compensation cost related to non-vested awards | $ | 18.7 | ||||||||
Capitalized to inventory | $ | $ 0.4 | 0.4 | 0.2 | ||||||
Restricted Stock | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (shares) | shares | 77,000 | ||||||||
Shares vested (shares) | shares | 103,000 | ||||||||
Vested in period total fair value | $ | $ 12.6 | $ 7.8 | $ 8.9 | ||||||
Shares granted (USD per share) | $ / shares | $ 166.46 | $ 145.48 | $ 127.89 | ||||||
Restricted Stock | Director | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (shares) | shares | 6,741 | 7,413 | 8,216 | ||||||
Restricted Stock Awards Service Condition | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of installments | installment | 3 | ||||||||
Restricted Stock Awards Service Condition | Vesting Period One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting percentage | 33.33% | ||||||||
Restricted Stock Awards Service Condition | Vesting Period Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting percentage | 33.33% | ||||||||
Restricted Stock Awards Service Condition | Vesting Period Three | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting percentage | 33.33% | ||||||||
Restricted Stock Awards, Market Conditions | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (shares) | shares | 0 | 0 | 0 | ||||||
Award performance period | 3 years | ||||||||
TSR threshold | 20.00% | ||||||||
Award vesting percentage | 100.00% | ||||||||
Shares vested (shares) | shares | 18,100 | ||||||||
Vested in period total fair value | $ | $ 3 | ||||||||
Stock Appreciation Rights SARS | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of installments | installment | 3 | ||||||||
Shares granted (shares) | shares | 188,000 | ||||||||
Shares granted (USD per share) | $ / shares | $ 163.89 | ||||||||
Award vesting period | 3 years | ||||||||
Award, expiration period | 10 years | ||||||||
SARS exercised intrinsic value | $ | $ 46.8 | $ 20.2 | $ 17.8 | ||||||
Stock Appreciation Rights SARS | Vesting Period One | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting percentage | 33.33% | ||||||||
Stock Appreciation Rights SARS | Vesting Period Two | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting percentage | 33.33% | ||||||||
Stock Appreciation Rights SARS | Vesting Period Three | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting percentage | 33.33% | ||||||||
Performance Shares | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (shares) | shares | 63,868 | 60,008 | |||||||
Award performance period | 3 years | ||||||||
Shares granted (USD per share) | $ / shares | $ 151.78 | $ 98.80 | |||||||
Performance Shares | 2020 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (USD per share) | $ / shares | $ 151.78 | ||||||||
Performance based criteria plan payout percentage, over/under | 150.00% | ||||||||
Performance Shares | 2018 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (USD per share) | $ / shares | $ 98.80 | ||||||||
Performance based criteria plan payout percentage, over/under | 120.00% | ||||||||
Performance Shares | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance based criteria plan payout percentage | 0.00% | ||||||||
Performance Shares | Minimum | 2020 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance based criteria plan payout percentage | 0.00% | ||||||||
Performance Shares | Minimum | 2018 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance based criteria plan payout percentage | 0.00% | ||||||||
Performance Shares | Maximum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance based criteria plan payout percentage | 200.00% | ||||||||
Performance Shares | Maximum | 2020 Grant | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance based criteria plan payout percentage | 200.00% | ||||||||
Performance Shares | Maximum | 2018 Grant | |||||||||
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] | |||||||||
Award vesting percentage | 50.00% | 34.00% | |||||||
Performance Shares, Vesting on Achieved Operating Margin Performance | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting percentage | 33.00% | ||||||||
Performance Shares, Vesting on Achieved Trade Working Capital as a Percent of Net Sales | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting percentage | 33.00% | ||||||||
Performance Shares - Market Condition | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares granted (shares) | shares | 15,741 | ||||||||
Award performance period | 3 years | ||||||||
Performance based criteria plan payout percentage, target | 100.00% | ||||||||
Shares vested (shares) | shares | 16,100 | ||||||||
Vested in period total fair value | $ | $ 2.6 | ||||||||
Shares granted (USD per share) | $ / shares | $ 198.89 | ||||||||
Market based criteria, actual payout percentage | 87.00% | ||||||||
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) | shares | 31,543 | 24,675 | |||||||
Award performance period | 3 years | 3 years | 3 years | ||||||
Award vesting percentage | 100.00% | ||||||||
Shares vested (shares) | shares | 25,000 | ||||||||
Vested in period total fair value | $ | $ 4.8 | ||||||||
Shares granted (USD per share) | $ / shares | $ 151.92 | ||||||||
Performance Shares - Performance Condition | Minimum | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Performance based criteria plan payout percentage | 0.00% | 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% | 250.00% | |||||||
Performance Shares, Vesting on Operating Profit Margin | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Award vesting percentage | 50.00% | ||||||||
Selling and administrative | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Pre-tax stock-based compensation cost | $ | 15.8 | 20.4 | $ 13.5 | ||||||
Cost of goods sold | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Pre-tax stock-based compensation cost | $ | $ 1.7 | $ 1.5 | $ 1 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Option Activity (Details) - Restricted Stock - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | |||
OUTSTANDING beginning balance (shares) | 222 | ||
Shares granted (shares) | 77 | ||
Shares vested (shares) | (103) | ||
Shares forfeited (shares) | (12) | ||
OUTSTANDING ending balance (shares) | 184 | 222 | |
Weighted Average Exercise Price (USD per share) | |||
OUTSTANDING beginning balance (USD per share) | $ 124.77 | ||
Shares granted (USD per share) | 166.46 | $ 145.48 | $ 127.89 |
Shares vested (USD per share) | 122.76 | ||
Shares forfeited (USD per share) | 139.98 | ||
OUTSTANDING AT ending balance (USD per Share) | $ 141.99 | $ 124.77 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Appreciation Rights (Details) - Stock Appreciation Rights SARS $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)$ / sharesshares | |
Number of Rights | |
OUTSTANDING beginning balance (shares) | shares | 1,383 |
Shares granted (shares) | shares | 188 |
Exercised (shares) | shares | (636) |
Forfeited (shares) | shares | (26) |
Canceled (shares) | shares | (2) |
OUTSTANDING ending balance (shares) | shares | 907 |
EXERCISABLE (shares) | shares | 540 |
Weighted Average Exercise Price (USD per share) | |
OUTSTANDING beginning balance (USD per share) | $ / shares | $ 119.37 |
Granted (USD per share) | $ / shares | 163.89 |
Exercised (USD per share) | $ / shares | 112.50 |
Forfeited (USD per share) | $ / shares | 141.69 |
Canceled (USD per share) | $ / shares | 110.15 |
OUTSTANDING AT ending balance (USD per Share) | $ / shares | 132.78 |
EXCERCISABLE (USD per share) | $ / shares | $ 118.30 |
Weighted average remaining contractual term, outstanding | 7 years 1 month 6 days |
Weighted average remaining contractual term, exercisable | 6 years |
Aggregate intrinsic value, outstanding | $ | $ 68,458 |
Aggregate intrinsic value, exercisable | $ | $ 48,567 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Used in Estimating the Fair Value of SARs (Details) - Stock Appreciation Rights SARS - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected Dividend Yield | 2.40% | 2.50% | 2.70% |
Expected Volatility | 26.50% | 23.50% | 22.70% |
Risk Free Interest Rate | 0.60% | 1.30% | 1.80% |
Expected Term | 5 years 6 months | 5 years 6 months | 5 years 6 months |
Weighted Avg. Grant Date Fair Value of 1 SAR (USD per share) | $ 29.58 | $ 24.52 | $ 21.25 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares Granted During the Period (Details) - Performance Shares - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (USD per share) | $ 151.78 | $ 98.80 |
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% | |
2020 Grant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (shares) | 46,374 | |
Granted (USD per share) | $ 151.78 | |
Performance based criteria plan payout percentage, over/under | 150.00% | |
2020 Grant | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 0.00% | |
2020 Grant | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 200.00% | |
2018 Grant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares outstanding (shares) | 40,623 | |
Granted (USD per share) | $ 98.80 | |
Performance based criteria plan payout percentage, over/under | 120.00% | |
2018 Grant | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 0.00% | |
2018 Grant | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 200.00% |
Stock-Based Compensation - Pe_2
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_3
Stock-Based Compensation - Performance Shares, Performance Condition (Details) - Performance Shares - Performance Condition - $ / shares | 1 Months Ended | |
Feb. 28, 2021 | Dec. 31, 2017 | |
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% | 0.00% |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 200.00% | 250.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||||||||||
Net income from continuing operations attributable to Hubbell | $ 99.5 | $ 103.4 | $ 88.8 | $ 73.3 | $ 79.8 | $ 97.1 | $ 85.9 | $ 67.2 | $ 365 | $ 330 | $ 361.5 |
Less: Earnings allocated to participating securities | (1.1) | (1.1) | (1.3) | ||||||||
Net income from continuing operations available to common shareholders | 363.9 | 328.9 | 360.2 | ||||||||
Net income from discontinued operations attributable to Hubbell Incorporated | 34.5 | 21.2 | 39.4 | ||||||||
Less: Earnings allocated to participating securities | (0.1) | (0.1) | (0.1) | ||||||||
Net income from discontinued operations available to common shareholders | 34.4 | 21.1 | 39.3 | ||||||||
Net income attributable to Hubbell Incorporated | 399.5 | 351.2 | 400.9 | ||||||||
Less: Earnings allocated to participating securities | (1.2) | (1.2) | (1.4) | ||||||||
Net income available to common shareholders | $ 398.3 | $ 350 | $ 399.5 | ||||||||
Denominator: | |||||||||||
Average number of common shares outstanding (shares) | 54.3 | 54.2 | 54.4 | ||||||||
Potential dilutive shares (shares) | 0.4 | 0.3 | 0.3 | ||||||||
Average number of diluted shares outstanding (shares) | 54.7 | 54.5 | 54.7 | ||||||||
Basic earnings per share: | |||||||||||
Basic earnings per share from continuing operations (USD per share) | $ 1.82 | $ 1.89 | $ 1.63 | $ 1.34 | $ 1.47 | $ 1.79 | $ 1.58 | $ 1.23 | $ 6.70 | $ 6.07 | $ 6.63 |
Basic earnings per share from discontinued operations (USD per share) | 0.33 | 0.10 | 0.13 | 0.09 | 0.02 | 0.18 | 0.04 | 0.15 | 0.63 | 0.39 | 0.72 |
Basic earnings per share (USD per share) | 2.15 | 1.99 | 1.76 | 1.43 | 1.49 | 1.97 | 1.62 | 1.38 | 7.33 | 6.46 | 7.35 |
Diluted earnings per share: | |||||||||||
Diluted earnings per share from continuing operations (USD per share) | 1.81 | 1.88 | 1.62 | 1.33 | 1.46 | 1.78 | 1.58 | 1.23 | 6.66 | 6.04 | 6.59 |
Diluted earnings per share from discontinued operations (USD per share) | 0.33 | 0.10 | 0.12 | 0.09 | 0.02 | 0.18 | 0.04 | 0.14 | 0.62 | 0.39 | 0.72 |
Diluted earnings per share (USD per share) | $ 2.14 | $ 1.98 | $ 1.74 | $ 1.42 | $ 1.48 | $ 1.96 | $ 1.62 | $ 1.37 | $ 7.28 | $ 6.43 | $ 7.31 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of period | $ 2,085.4 | ||
Other comprehensive income (loss) before Reclassifications | (10.4) | $ (8.5) | $ (17.8) |
Amounts reclassified from accumulated other comprehensive loss | 8.8 | 12.2 | 0.6 |
Other comprehensive income (loss) | (1.6) | 3.7 | (17.2) |
Reclassification of stranded tax effects | (30) | ||
End of period | 2,240.7 | 2,085.4 | |
AOCI Attributable to Parent | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of period | (329.2) | (332.9) | (285.7) |
Other comprehensive income (loss) | (1.6) | 3.7 | (17.2) |
Reclassification of stranded tax effects | (30) | ||
End of period | (330.8) | (329.2) | (332.9) |
Cash Flow Hedge (Loss) Gain | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of period | (0.7) | (0.5) | 0.8 |
Other comprehensive income (loss) before Reclassifications | 0.4 | 0.4 | (0.8) |
Amounts reclassified from accumulated other comprehensive loss | 0.7 | (0.6) | (0.5) |
Other comprehensive income (loss) | 1.1 | (0.2) | (1.3) |
Reclassification of stranded tax effects | 0 | ||
End of period | 0.4 | (0.7) | (0.5) |
Unrealized Gain (Loss) on Available-for-Sale Securities | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of period | 1 | 0.6 | (2) |
Other comprehensive income (loss) before Reclassifications | (0.4) | 0.4 | 0.8 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 1.8 |
Other comprehensive income (loss) | (0.4) | 0.4 | 2.6 |
Reclassification of stranded tax effects | 0 | ||
End of period | 0.6 | 1 | 0.6 |
Pension and Post Retirement Benefit Plan Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of period | (212) | (203.2) | (158.7) |
Other comprehensive income (loss) before Reclassifications | 1.1 | (21.6) | (21.5) |
Amounts reclassified from accumulated other comprehensive loss | 8.1 | 12.8 | 7 |
Other comprehensive income (loss) | 9.2 | (8.8) | (14.5) |
Reclassification of stranded tax effects | (30) | ||
End of period | (202.8) | (212) | (203.2) |
Cumulative Translation Adjustment | |||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||
Beginning of period | (117.5) | (129.8) | (125.8) |
Other comprehensive income (loss) before Reclassifications | (11.5) | 12.3 | 3.7 |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | (7.7) |
Other comprehensive income (loss) | (11.5) | 12.3 | (4) |
Reclassification of stranded tax effects | 0 | ||
End of period | $ (129) | $ (117.5) | $ (129.8) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net sales | $ 1,100.1 | $ 1,083.4 | $ 1,054.3 | $ 956.3 | $ 917.1 | $ 970.3 | $ 837.5 | $ 957.6 | $ 4,194.1 | $ 3,682.5 | $ 3,946.6 |
Cost of goods sold | $ 810.2 | $ 782.3 | $ 756 | $ 694.1 | $ 656.9 | $ 677.5 | $ 582.3 | $ 680 | 3,042.6 | 2,596.7 | 2,775 |
Tax (expense) benefit | (88.2) | (89.8) | (101.2) | ||||||||
Gain (loss) net of tax | 405.6 | 355.9 | $ 407.4 | ||||||||
Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Gain (loss) net of tax | (8.8) | (12.2) | |||||||||
Cash flow hedges gain (loss) | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net sales | (0.1) | 0.3 | |||||||||
Cost of goods sold | (0.9) | 0.5 | |||||||||
Total before tax | (1) | 0.8 | |||||||||
Tax (expense) benefit | 0.3 | (0.2) | |||||||||
Gain (loss) net of tax | (0.7) | 0.6 | |||||||||
Amortization of defined benefit pension and post retirement benefit items | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | (10.9) | (17) | |||||||||
Tax (expense) benefit | 2.8 | 4.2 | |||||||||
Gain (loss) net of tax | (8.1) | (12.8) | |||||||||
Prior-service costs | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | (0.2) | 0.2 | |||||||||
Actuarial gains/(losses) | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | (10.7) | (9.7) | |||||||||
Settlement and curtailment losses | Reclassification out of accumulated other comprehensive income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Total before tax | $ 0 | $ (7.5) |
Industry Segments and Geograp_3
Industry Segments and Geographic Area Information - Narrative (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021USD ($) | Sep. 30, 2021USD ($) | Jun. 30, 2021USD ($) | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($)groupsegment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Net sales | $ 1,100.1 | $ 1,083.4 | $ 1,054.3 | $ 956.3 | $ 917.1 | $ 970.3 | $ 837.5 | $ 957.6 | $ 4,194.1 | $ 3,682.5 | $ 3,946.6 |
Operating Income | 532.3 | 494.5 | 526.7 | ||||||||
Export sales from United States | 227 | 233.8 | 256.8 | ||||||||
International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 384.3 | 325.6 | 400.5 | ||||||||
Operating Income | $ 92.7 | $ 58.2 | $ 68 | ||||||||
International | Net Sales Total | Geographic Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 9.00% | 9.00% | 10.00% | ||||||||
International | Long-lived assets Total | Geographic Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 11.00% | 11.00% | 11.00% | ||||||||
Canada | Net Sales Total | Geographic Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 36.00% | ||||||||||
Canada | Long-lived assets Total | Geographic Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 15.00% | ||||||||||
United Kingdom | Net Sales Total | Geographic Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 29.00% | ||||||||||
United Kingdom | Long-lived assets Total | Geographic Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 34.00% | ||||||||||
Spain | Long-lived assets Total | Geographic Concentration Risk | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Concentration risk, percentage | 20.00% | ||||||||||
Electrical Solutions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Number of business groups consolidated | group | 3 | ||||||||||
Number of operating segments | segment | 1 | ||||||||||
Net sales | $ 1,859.7 | $ 1,603.1 | $ 1,776.6 | ||||||||
Electrical Solutions | International | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 254.8 | $ 214.1 | $ 267.5 | ||||||||
Electrical Solutions | Hubbell Gas Connectors and Accessories Business | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net sales | 157.1 | ||||||||||
Operating Income | $ 19.4 |
Industry Segments and Geograp_4
Industry Segments and Geographic Area Information - Industry Segments Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Sales: | |||||||||||
Net sales | $ 1,100.1 | $ 1,083.4 | $ 1,054.3 | $ 956.3 | $ 917.1 | $ 970.3 | $ 837.5 | $ 957.6 | $ 4,194.1 | $ 3,682.5 | $ 3,946.6 |
Operating Income: | |||||||||||
Operating Income | 532.3 | 494.5 | 526.7 | ||||||||
Gain (Loss) on disposition of business | (6.9) | 0 | 21.7 | ||||||||
Loss on extinguishment of debt | (16.8) | 0 | 0 | ||||||||
Pension charge | 0 | (7.6) | 0 | ||||||||
Interest expense, net | (54.7) | (60.1) | (68.6) | ||||||||
Investment income | 0 | 0 | 1.5 | ||||||||
Other Income (expense), net | 5.4 | (2.3) | (12.1) | ||||||||
Income from continuing operations before income taxes | 459.3 | 424.5 | 469.2 | ||||||||
Assets: | |||||||||||
Assets | 5,281.5 | 5,085.1 | 5,281.5 | 5,085.1 | 4,903 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 90.2 | 82.8 | 86.7 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 149.1 | 144.5 | 137.9 | ||||||||
Electrical Solutions | |||||||||||
Net Sales: | |||||||||||
Net sales | 1,859.7 | 1,603.1 | 1,776.6 | ||||||||
Utility Solutions | |||||||||||
Net Sales: | |||||||||||
Net sales | 2,334.4 | 2,079.4 | 2,170 | ||||||||
Operating Segments | Electrical Solutions | |||||||||||
Net Sales: | |||||||||||
Net sales | 1,859.7 | 1,603.1 | 1,776.8 | ||||||||
Operating Income: | |||||||||||
Operating Income | 248.2 | 188.9 | 236.2 | ||||||||
Assets: | |||||||||||
Assets | 2,142.1 | 1,984.4 | 2,142.1 | 1,984.4 | 1,934.2 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 31.1 | 25 | 27.7 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 40.6 | 41.3 | 42.4 | ||||||||
Operating Segments | Utility Solutions | |||||||||||
Net Sales: | |||||||||||
Net sales | 2,334.4 | 2,079.4 | 2,169.8 | ||||||||
Operating Income: | |||||||||||
Operating Income | 284.1 | 305.6 | 290.5 | ||||||||
Assets: | |||||||||||
Assets | 2,823.8 | 2,812.4 | 2,823.8 | 2,812.4 | 2,664.9 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 55.8 | 55.9 | 52.6 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 108.5 | 103.2 | 95.5 | ||||||||
General Corporate | |||||||||||
Assets: | |||||||||||
Assets | $ 315.6 | $ 288.3 | 315.6 | 288.3 | 303.9 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | $ 3.3 | $ 1.9 | $ 6.4 |
Industry Segments and Geograp_5
Industry Segments and Geographic Area Information - Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net Sales: | |||||||||||
Net sales | $ 1,100.1 | $ 1,083.4 | $ 1,054.3 | $ 956.3 | $ 917.1 | $ 970.3 | $ 837.5 | $ 957.6 | $ 4,194.1 | $ 3,682.5 | $ 3,946.6 |
Operating Income: | |||||||||||
Operating Income | 532.3 | 494.5 | 526.7 | ||||||||
Long-lived Assets: | |||||||||||
Long-Lived Assets | 3,397.1 | 3,492.4 | 3,397.1 | 3,492.4 | 3,322.7 | ||||||
Assets held for sale - non-current | 177.1 | 184.1 | 177.1 | 184.1 | |||||||
Discontinued Operations, Held-for-Sale | Commercial and Industrial Lighting Business | |||||||||||
Long-lived Assets: | |||||||||||
Assets held for sale - current | 356.6 | 356.6 | |||||||||
Assets held for sale - non-current | 177.1 | 184.1 | 177.1 | 184.1 | |||||||
United States | |||||||||||
Net Sales: | |||||||||||
Net sales | 3,809.8 | 3,356.9 | 3,546.1 | ||||||||
Operating Income: | |||||||||||
Operating Income | 439.6 | 436.3 | 458.7 | ||||||||
Long-lived Assets: | |||||||||||
Long-Lived Assets | 3,038.1 | 3,113.7 | 3,038.1 | 3,113.7 | 2,950.5 | ||||||
International | |||||||||||
Net Sales: | |||||||||||
Net sales | 384.3 | 325.6 | 400.5 | ||||||||
Operating Income: | |||||||||||
Operating Income | 92.7 | 58.2 | 68 | ||||||||
Long-lived Assets: | |||||||||||
Long-Lived Assets | $ 359 | $ 378.7 | $ 359 | $ 378.7 | $ 372.2 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 72.7 | $ 73.9 |
Provision | 8.8 | 8.2 |
Expenditures/other | (15.4) | (9.4) |
Ending balance | $ 66.1 | $ 72.7 |
Restructuring Costs - By Segmen
Restructuring Costs - By Segment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | $ 3.9 | $ 20.4 | $ 28.8 |
Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 2.4 | 16.3 | 20.1 |
S&A expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 1.5 | 4.1 | 8.7 |
Electrical Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 1.5 | 10 | 16.8 |
Electrical Solutions | Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 1.1 | 7.1 | 10 |
Electrical Solutions | S&A expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 0.4 | 2.9 | 6.8 |
Utility Solutions | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 2.4 | 10.4 | 12 |
Utility Solutions | Cost of goods sold | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | 1.3 | 9.2 | 10.1 |
Utility Solutions | S&A expense | |||
Restructuring Cost and Reserve [Line Items] | |||
Pre-tax Restructuring Costs | $ 1.1 | $ 1.2 | $ 1.9 |
Restructuring Costs - Reserve (
Restructuring Costs - Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | $ 8.2 | ||
Pre-tax Restructuring Costs | 3.9 | $ 20.4 | $ 28.8 |
Utilization and Foreign Exchange | (7.9) | ||
Ending accrued restructuring balance | 4.2 | 8.2 | |
2021 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 2.4 | ||
Utilization and Foreign Exchange | (1) | ||
Ending accrued restructuring balance | 1.4 | 0 | |
2020 and Prior Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 8.2 | ||
Pre-tax Restructuring Costs | 1.5 | ||
Utilization and Foreign Exchange | (6.9) | ||
Ending accrued restructuring balance | 2.8 | 8.2 | |
Severance | 2021 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 2.4 | ||
Utilization and Foreign Exchange | (1) | ||
Ending accrued restructuring balance | 1.4 | 0 | |
Severance | 2020 and Prior Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 7.7 | ||
Pre-tax Restructuring Costs | 0 | ||
Utilization and Foreign Exchange | (5) | ||
Ending accrued restructuring balance | 2.7 | 7.7 | |
Asset write-downs | 2021 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 0 | ||
Utilization and Foreign Exchange | 0 | ||
Ending accrued restructuring balance | 0 | 0 | |
Asset write-downs | 2020 and Prior Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 0 | ||
Utilization and Foreign Exchange | 0 | ||
Ending accrued restructuring balance | 0 | 0 | |
Facility closure and other costs | 2021 Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0 | ||
Pre-tax Restructuring Costs | 0 | ||
Utilization and Foreign Exchange | 0 | ||
Ending accrued restructuring balance | 0 | 0 | |
Facility closure and other costs | 2020 and Prior Restructuring Actions | |||
Restructuring Reserve [Roll Forward] | |||
Beginning accrued restructuring balance | 0.5 | ||
Pre-tax Restructuring Costs | 1.5 | ||
Utilization and Foreign Exchange | (1.9) | ||
Ending accrued restructuring balance | $ 0.1 | $ 0.5 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | $ 62.5 | ||
Cost incurred to date | 3.9 | $ 20.4 | $ 28.8 |
Remaining costs | 9.4 | ||
2021 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 9.2 | ||
Cost incurred to date | 2.4 | 0 | 0 |
Remaining costs | 6.8 | ||
2020 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 19 | ||
Cost incurred to date | 1.5 | 14.9 | 0 |
Remaining costs | 2.6 | ||
2019 and Prior Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 34.3 | ||
Cost incurred to date | 0 | 5.5 | 28.8 |
Remaining costs | 0 | ||
Electrical Solutions | 2021 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 0.6 | ||
Cost incurred to date | 0.6 | 0 | 0 |
Remaining costs | 0 | ||
Electrical Solutions | 2020 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 12.7 | ||
Cost incurred to date | 0.9 | 10.5 | 0 |
Remaining costs | 1.3 | ||
Electrical Solutions | 2019 and Prior Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 16.3 | ||
Cost incurred to date | 0 | (0.5) | 16.8 |
Remaining costs | 0 | ||
Utility Solutions | 2021 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 8.6 | ||
Cost incurred to date | 1.8 | 0 | 0 |
Remaining costs | 6.8 | ||
Utility Solutions | 2020 Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 6.3 | ||
Cost incurred to date | 0.6 | 4.4 | 0 |
Remaining costs | 1.3 | ||
Utility Solutions | 2019 and Prior Restructuring Actions | |||
Restructuring Cost and Reserve [Line Items] | |||
Expected Costs | 18 | ||
Cost incurred to date | 0 | $ 6 | $ 12 |
Remaining costs | $ 0 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($)benefit_plan | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Term of leases | 10 years | ||
Options to extend, term | 5 years | ||
Termination period | 1 year | ||
Operating lease expense | $ 34.1 | $ 35.5 | $ 37 |
Cash outflow for operating leases | 36.7 | 35.5 | |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 17.8 | $ 34.3 | |
Operating lease, weighted average remaining lease term | 4 years | 5 years | |
Operating lease, weighted average discount rate | 2.70% | 3.10% | |
Number of real estate lease agreements not yet commenced | benefit_plan | 2 | ||
Value of lease agreements not yet commenced | $ 46 | ||
Term of lease agreements not yet commenced | 10 years | ||
2020 Acquisitions | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 9.4 |
Leases - Amounts Recognized for
Leases - Amounts Recognized for Leases (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Leases, Operating [Abstract] | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets, Noncurrent | Other Assets, Noncurrent |
Operating lease right-of-use assets | $ 81.3 | $ 99.1 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other accrued liabilities | Other accrued liabilities |
Current operating lease liabilities | $ 27.1 | $ 30.6 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other Non-Current Liabilities | Other Non-Current Liabilities |
Other non-current liabilities | $ 58.3 | $ 71.9 |
TOTAL LIABILITIES | $ 85.4 | $ 102.5 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Operating Leases | ||
Year One | $ 29 | $ 33.1 |
Year Two | 22.9 | 24.1 |
Year Three | 13.6 | 18.7 |
Year Four | 8.8 | 11.9 |
Year Five | 6.4 | 8.2 |
Thereafter | 9.2 | 13.9 |
Total Payments | 89.9 | 109.9 |
Imputed Interest | (4.5) | (7.4) |
Total | $ 85.4 | $ 102.5 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 1,100.1 | $ 1,083.4 | $ 1,054.3 | $ 956.3 | $ 917.1 | $ 970.3 | $ 837.5 | $ 957.6 | $ 4,194.1 | $ 3,682.5 | $ 3,946.6 |
Cost of goods sold | 810.2 | 782.3 | 756 | 694.1 | 656.9 | 677.5 | 582.3 | 680 | 3,042.6 | 2,596.7 | 2,775 |
Gross profit | 289.9 | 301.1 | 298.3 | 262.2 | 260.2 | 292.8 | 255.2 | 277.6 | 1,151.5 | 1,085.8 | 1,171.6 |
Selling & administrative expenses | 155.6 | 155.2 | 156.1 | 152.3 | 145.6 | 144.8 | 129.9 | 171 | 619.2 | 591.3 | 644.9 |
Net income from continuing operations | 101.3 | 105.5 | 89.6 | 74.7 | 81.4 | 98.5 | 86.9 | 67.9 | 371.1 | 334.7 | 368 |
Net income from continuing operations attributable to Hubbell | $ 99.5 | $ 103.4 | $ 88.8 | $ 73.3 | $ 79.8 | $ 97.1 | $ 85.9 | $ 67.2 | $ 365 | $ 330 | $ 361.5 |
Basic earnings per share from continuing operations (USD per share) | $ 1.82 | $ 1.89 | $ 1.63 | $ 1.34 | $ 1.47 | $ 1.79 | $ 1.58 | $ 1.23 | $ 6.70 | $ 6.07 | $ 6.63 |
Basic earnings per share from discontinued operations (USD per share) | 0.33 | 0.10 | 0.13 | 0.09 | 0.02 | 0.18 | 0.04 | 0.15 | 0.63 | 0.39 | 0.72 |
Basic earnings per share (USD per share) | 2.15 | 1.99 | 1.76 | 1.43 | 1.49 | 1.97 | 1.62 | 1.38 | 7.33 | 6.46 | 7.35 |
Diluted earnings per share from continuing operations (USD per share) | 1.81 | 1.88 | 1.62 | 1.33 | 1.46 | 1.78 | 1.58 | 1.23 | 6.66 | 6.04 | 6.59 |
Diluted earnings per share from discontinued operations (USD per share) | 0.33 | 0.10 | 0.12 | 0.09 | 0.02 | 0.18 | 0.04 | 0.14 | 0.62 | 0.39 | 0.72 |
Diluted earnings per share (USD per share) | $ 2.14 | $ 1.98 | $ 1.74 | $ 1.42 | $ 1.48 | $ 1.96 | $ 1.62 | $ 1.37 | $ 7.28 | $ 6.43 | $ 7.31 |
Subsequent Events (Details)
Subsequent Events (Details) - Discontinued Operations, Disposed of by Sale - Commercial and Industrial Lighting Business - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2022 | Feb. 01, 2022 | |
Forecast | Minimum | ||
Subsequent Event [Line Items] | ||
Pre-tax gain on sale | $ 80 | |
Forecast | Maximum | ||
Subsequent Event [Line Items] | ||
Pre-tax gain on sale | $ 100 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Cash purchase price | $ 350 |
Valuation and Qualifying Acco_2
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Allowances for doubtful accounts receivable: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 10.6 | $ 6.8 | $ 4.4 |
Additions / (Reversals) Charged to Costs and Expenses | 2 | 4 | 2.8 |
Deductions | (2) | (1.4) | (0.4) |
Balance at End of Year | 10.6 | 10.6 | 6.8 |
Allowances for doubtful accounts receivable: | Cumulative Effect, Period of Adoption, Adjusted Balance | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 8 | ||
Balance at End of Year | 8 | ||
Allowances for doubtful accounts receivable: | Cumulative Effect, Period of Adoption, Adjustment | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 1.2 | ||
Balance at End of Year | 1.2 | ||
Allowance for credit memos, returns and cash discounts: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 31.9 | 33.5 | 32.7 |
Additions / (Reversals) Charged to Costs and Expenses | 296.5 | 267.9 | 280.6 |
Deductions | (293.7) | (269.5) | (279.8) |
Balance at End of Year | 34.7 | 31.9 | 33.5 |
Valuation allowance on deferred tax assets: | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 29.5 | 25.9 | 19.2 |
Additions / (Reversals) Charged to Costs and Expenses | 3.1 | 3.6 | 6.7 |
Deductions | 0 | 0 | 0 |
Balance at End of Year | $ 32.6 | $ 29.5 | $ 25.9 |