Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Jul. 22, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2022 | |
Document Transition Report | false | |
Entity File Number | 1-2958 | |
Entity Registrant Name | HUBBELL INC | |
Entity Incorporation, State or Country Code | CT | |
Entity Tax Identification Number | 06-0397030 | |
Entity Address, Address Line One | 40 Waterview Drive | |
Entity Address, City or Town | Shelton, | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06484 | |
City Area Code | (475) | |
Local Phone Number | 882-4000 | |
Title of 12(b) Security | Common Stock - par value $0.01 per share | |
Trading Symbol | HUBB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 53,677,757 | |
Amendment Flag | false | |
Entity Central Index Key | 0000048898 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 1,256 | $ 1,054.3 | $ 2,412.1 | $ 2,010.6 |
Cost of goods sold | 872.8 | 756 | 1,705.8 | 1,450.1 |
Gross profit | 383.2 | 298.3 | 706.3 | 560.5 |
Selling & administrative expenses | 192.6 | 156.1 | 372.8 | 308.4 |
Operating income | 190.6 | 142.2 | 333.5 | 252.1 |
Interest expense, net | (12.7) | (12.6) | (25.8) | (27.8) |
Loss on disposition of business | 0 | (6.8) | 0 | (6.8) |
Loss on extinguishment of debt | 0 | (16.8) | 0 | (16.8) |
Pension charge | (4.4) | 0 | (4.4) | 0 |
Other income, net | 2.5 | 0.5 | 6.1 | 1.7 |
Total other expense | (14.6) | (35.7) | (24.1) | (49.7) |
Income from continuing operations before income taxes | 176 | 106.5 | 309.4 | 202.4 |
Provision for income taxes | 38.9 | 16.9 | 68.5 | 38.1 |
Net income from continuing operations | 137.1 | 89.6 | 240.9 | 164.3 |
Less: Net income from continuing operations attributable to noncontrolling interest | (1.5) | (0.8) | (2.8) | (2.2) |
Net income from continuing operations attributable to Hubbell Incorporated | 135.6 | 88.8 | 238.1 | 162.1 |
(Loss) income from discontinued operations, net of tax (Note 2) | (13.6) | 7 | 64.1 | 11.4 |
Net Income attributable to Hubbell Incorporated | $ 122 | $ 95.8 | $ 302.2 | $ 173.5 |
Earnings per share: | ||||
Basic earnings per share from continuing operations (USD per share) | $ 2.52 | $ 1.63 | $ 4.41 | $ 2.97 |
Basic earnings per share from discontinued operations (USD per share) | (0.25) | 0.13 | 1.19 | 0.22 |
Basic earnings per share (USD per share) | 2.27 | 1.76 | 5.60 | 3.19 |
Diluted earnings per share from continuing operations (USD per share) | 2.51 | 1.62 | 4.39 | 2.95 |
Diluted earnings per share from discontinued operations (USD per share) | (0.25) | 0.12 | 1.18 | 0.21 |
Diluted earnings per share (USD per share) | 2.26 | 1.74 | 5.57 | 3.16 |
Cash dividends per common share (USD per share) | $ 1.05 | $ 0.98 | $ 2.10 | $ 1.96 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 123.5 | $ 96.6 | $ 305 | $ 175.7 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustments | (29.7) | 9.3 | (25.1) | 2.7 |
Reclassification of currency translation losses included in net income | 0 | 0 | 0.5 | 0 |
Defined benefit pension and post-retirement plans, net of taxes of $(1.3) and $(0.7) | 3.4 | 2.1 | 5.5 | 4.1 |
Unrealized losses on investments, net of taxes of $0.0 and $0.0 | 0 | 0 | (1.2) | (0.1) |
Unrealized (losses) gains on cash flow hedges, net of taxes of $(0.2) and $(0.1) | 0.5 | 0.2 | (0.1) | 0.3 |
Other comprehensive (loss) income | (25.8) | 11.6 | (20.4) | 7 |
Comprehensive income | 97.7 | 108.2 | 284.6 | 182.7 |
Less: Comprehensive income attributable to noncontrolling interest | 1.5 | 0.8 | 2.8 | 2.2 |
Comprehensive income attributable to Hubbell Incorporated | $ 96.2 | $ 107.4 | $ 281.8 | $ 180.5 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Defined benefit pension and post-retirement plans, tax | $ (1.3) | $ (0.7) | $ (1.8) | $ (1.4) |
Available-for-sale investments, tax | 0 | 0 | 0.4 | 0 |
Unrealized gain (loss) on cash flow hedges, tax | $ (0.2) | $ (0.1) | $ 0 | $ (0.1) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Current Assets | ||
Cash and cash equivalents | $ 424.2 | $ 286.2 |
Short-term investments | 13.9 | 9.4 |
Accounts receivable (net of allowances of $13.9 and $10.6) | 780.5 | 675.3 |
Inventories, net | 719.5 | 662.1 |
Other current assets | 96.1 | 66.8 |
Assets held for sale - current | 0 | 179.5 |
Total Current Assets | 2,034.2 | 1,879.3 |
Property, Plant, and Equipment, net | 464.8 | 459.5 |
Other Assets | ||
Investments | 71.9 | 69.1 |
Goodwill | 1,859.4 | 1,871.3 |
Other intangible assets, net | 644.1 | 681.5 |
Other long-term assets | 163.8 | 143.7 |
Assets held for sale - non-current | 0 | 177.1 |
TOTAL ASSETS | 5,238.2 | 5,281.5 |
Current Liabilities | ||
Short-term debt | 5.8 | 9.7 |
Accounts payable | 550.7 | 532.8 |
Accrued salaries, wages and employee benefits | 91.7 | 94.7 |
Accrued insurance | 73 | 73.3 |
Other accrued liabilities | 281.7 | 263.4 |
Liabilities held for sale - current | 0 | 91.3 |
Total Current Liabilities | 1,002.9 | 1,065.2 |
Long-Term Debt | 1,436.7 | 1,435.5 |
Other Non-Current Liabilities | 530.7 | 521.3 |
Liabilities held for sale - non-current | 0 | 18.8 |
TOTAL LIABILITIES | 2,970.3 | 3,040.8 |
Hubbell Incorporated Shareholders’ Equity | 2,256.9 | 2,229.8 |
Noncontrolling interest | 11 | 10.9 |
TOTAL EQUITY | 2,267.9 | 2,240.7 |
TOTAL LIABILITIES AND EQUITY | $ 5,238.2 | $ 5,281.5 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ (13.9) | $ (10.6) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash Flows from Operating Activities of Continuing Operations | ||
Net income from continuing operations | $ 240.9 | $ 164.3 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 69.4 | 76.9 |
Deferred income taxes | (38.4) | 6 |
Stock-based compensation | 16.7 | 12.8 |
Provision for bad debt expense | 4.4 | (0.3) |
Loss on disposition of business | 0 | 6.8 |
Loss on extinguishment of debt | 0 | 16.8 |
Pension charge | 4.4 | 0 |
Loss (gain) on sale of assets | 1.2 | (4) |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
Increase in accounts receivable, net | (107.4) | (110.9) |
Increase in inventories, net | (61) | (32.6) |
Increase in accounts payable | 22 | 78.5 |
Increase (decrease) in current liabilities | 25.3 | (18.3) |
Changes in other assets and liabilities, net | (1.9) | (4.9) |
Contribution to qualified defined benefit pension plans | (2.5) | (0.1) |
Other, net | 1.1 | (1.2) |
Net cash provided by operating activities from Continuing Operations | 174.2 | 189.8 |
Cash Flows from Investing Activities of Continuing Operations | ||
Capital expenditures | (41.9) | (36.9) |
Acquisitions, net of cash acquired | 0 | 0.1 |
Proceeds from disposal of business, net of cash | 348.6 | 8.5 |
Purchases of available-for-sale investments | (23.8) | (6.2) |
Proceeds from available-for-sale investments | 9.8 | 3.3 |
Other, net | 1.1 | 6.6 |
Net cash provided (used in) investing activities from Continuing Operations | 293.8 | (24.6) |
Cash Flows from Financing Activities of Continuing Operations | ||
Issuance of long-term debt | 0 | 298.7 |
Payment of long-term debt | 0 | (300) |
Payment of short-term debt, net | (3.8) | (15.6) |
Payment of dividends | (113.3) | (106.5) |
Debt issuance costs | 0 | (4.5) |
Acquisition of common shares | (150) | (11.2) |
Other, net | (11.1) | (39.2) |
Net cash used in financing activities from Continuing Operations | (278.2) | (178.3) |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||
Cash (used in) provided by operating activities | (44.7) | 19.5 |
Cash used in investing activities | (1.7) | (2.2) |
Cash (used in) provided by discontinued operations | (46.4) | 17.3 |
Effect of exchange rate changes on cash and cash equivalents | (6) | 1.7 |
Increase in cash and cash equivalents | 137.4 | 5.9 |
Cash and cash equivalents, beginning of year | 286.2 | 259.6 |
Cash and cash equivalents within assets held for sale, beginning of year | 0.7 | 1 |
Restricted cash, included in other assets, beginning of year | 2.7 | 0 |
Less: Restricted cash, included in Other Assets | 2.8 | 0 |
Less: Cash and cash equivalents within assets held for sale, end of period | 0 | 1.1 |
Cash and cash equivalents, end of period | $ 424.2 | $ 265.4 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022. The balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2021. Discontinued Operations On February 1, 2022, the Company completed the sale of the Commercial and Industrial Lighting business (the "C&I Lighting business") to GE Current, a Daintree Company, for total cash consideration of $350 million , subject to customary adjustments with respect to working capital. The disposal of the Commercial and Industrial Lighting business met the criteria set forth in ASC 205-20 to be presented as a discontinued operation. The Commercial and Industrial Lighting businesses' results of operations and the related cash flows have been reclassified to income from discontinued operations in the Condensed Consolidated Statements of Income and cash flows from discontinued operations in the Condensed Consolidated Statement of Cash Flows, respectively, for all periods presented. For additional information regarding this transaction and its effect on our financial reporting, see Note 2 – Discontinued Operations, in the accompanying Condensed Consolidated Financial Statements, which note is incorporated herein by reference. Impact of the COVID-19 Pandemic During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has had, and may continue to have, a significant effect on global economic conditions. U.S. Federal, state, local, and foreign governments have reacted to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. and global economies. The extent to which the coronavirus pandemic will continue to affect our business, operations, supply chains, and our financial results will depend on numerous evolving factors that we may not be able to accurately predict and which may cause the actual results to differ from the estimates and assumptions we are required to make in the preparation of financial statements according to GAAP. Recently 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 June 30, 2022. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. In October 2021, the FASB issued ASU No. 2021-08, "Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." ASU 2021-08 requires an acquirer to recognize and measure contract assets and contract liabilities, including deferred revenue, acquired in a business combination in accordance with Revenue from Contracts with Customers (Topic 606) as if the acquirer had originated the contracts at the date of the business combination. The provisions of ASU 2021-08 are effective for interim periods and fiscal years beginning after December 15, 2022, with early adoption permitted. If early adopted, the provisions of ASU 2021-08 apply retrospectively to all business combinations that occurred on or after the first day of the fiscal year in which the standard is adopted. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Jun. 30, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On February 1, 2022, the Company completed the sale of the Commercial and Industrial Lighting business to GE Current, a Daintree Company, for total cash consideration of $350 million, subject to customary adjustments with respect to working capital. The sale 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 Condensed Consolidated Financial Statements for all periods presented. The assets and liabilities of this business are also presented as held for sale in the Condensed Consolidated Balance Sheets, in the periods prior to the sale. The Commercial and Industrial Lighting business was previously included in the Electrical Solutions segment. Under the terms of the transaction, Hubbell and the buyer entered into a transition services agreement ("TSA"), pursuant to which the Company agreed to provide certain administrative and operational services for a period of 12 months or less. Furthermore, we 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 after the completion of the sale. Income from the TSA and supply agreement was $4.8 million and $7.6 million, respectively, for the three and six months ended June 30, 2022 and was recorded in Other Income in the Condensed Consolidated Financial Statements. The following table presents the summarized components of income from discontinued operations, net of income taxes, for the Commercial and Industrial Lighting business: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Net sales $ — $ 137.5 $ 29.1 $ 259.6 Cost of goods sold — 105.9 27.7 201.9 Gross profit — 31.6 1.4 57.7 Selling & administrative expenses 4.5 21.9 15.2 41.7 Operating (loss) income (4.5) 9.7 (13.8) 16.0 (Loss) Gain on disposal of business (7.7) — 80.7 — Other expense (1.4) (0.8) (1.1) (1.4) (Loss) income from discontinued operations before income taxes (13.6) 8.9 65.8 14.6 Provision for income taxes — 1.9 1.7 3.2 (Loss) income from discontinued operations, net of taxes $ (13.6) $ 7.0 $ 64.1 $ 11.4 (Loss) income from discontinued operations, net of taxes for the three and six months ended June 30, 2022 includes transaction and separation costs of $4.5 million and $6.7 million, respectively, and the six months ended June 30, 2022 includes a pre-tax gain on the disposal of $80.7 million. The following table presents the major classes of assets and liabilities classified as held for sale in the Condensed Consolidated Balance Sheet for the year ended December 31, 2021: (in millions) December 31, 2021 Cash and cash equivalents $ 0.7 Accounts receivable 83.1 Inventories, net 89.8 Other current assets 5.9 Assets held for sale - current $ 179.5 Property, Plant, and Equipment, net 77.7 Goodwill 50.2 Other intangible assets, net 37.3 Other long-term assets 11.9 Assets held for sale - non-current $ 177.1 Accounts payable 50.2 Accrued salaries, wages and employee benefits 8.5 Accrued insurance 3.9 Other accrued liabilities 28.7 Liabilities held for sale - current $ 91.3 Other Non-Current Liabilities 18.8 Liabilities held for sale - non-current $ 18.8 |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions, primarily in the Utility Solutions segment, recognized upon delivery of the product at the destination. Revenue from service contracts and post-shipment performance obligations are approximately two percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the Utility Solutions segment. Revenue from service contracts and post-shipment performance obligations is recognized when or as those obligations are satisfied. The Company primarily offers assurance-type standard warranties that do not represent separate performance obligations and on occasion will separately offer and price extended warranties that are separate performance obligations for which the associated revenue is recognized over-time based on the extended warranty period. The Company records amounts billed to customers for reimbursement of shipping and handling costs within revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold. Sales taxes and other usage-based taxes are excluded from revenue. Within the Electrical Solutions segment, certain businesses require a portion of the transaction price to be paid in advance of transfer of control. Advance payments are not considered a significant financing component as they are received less than one year before the related performance obligations are satisfied. In addition, in the Utility Solutions segment, certain businesses offer annual maintenance service contracts that require payment at the beginning of the contract period. These payments are treated as a contract liability and are classified in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Condensed Consolidated Statements of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statements of Income on a straight-line basis over the expected term of the contract. The following table presents disaggregated revenue by business group. On January 1, 2022, we internally reorganized certain businesses within our Electrical Solutions segment to simplify the organization structure and align the organization to better serve our customers. This change had no impact to our reportable segments. In conjunction with this change, prior period amounts have been reclassified to conform to the organizational changes within the Electrical Solutions segment. Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Net sales Electrical Products $ 234.8 $ 196.6 $ 462.5 $ 378.2 Connection and Bonding 156.4 135.4 300.3 251.5 Industrial Controls 76.7 64.7 149.7 123.2 Retail and Builder 59.6 68.8 119.3 136.7 Total Electrical Solutions $ 527.5 $ 465.5 $ 1,031.8 $ 889.6 Utility T&D Components 556.5 421.2 1,048.0 796.1 Utility Communications and Controls 172.0 167.6 332.3 324.9 Total Utility Solutions $ 728.5 $ 588.8 $ 1,380.3 $ 1,121.0 TOTAL $ 1,256.0 $ 1,054.3 $ 2,412.1 $ 2,010.6 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Net sales United States $ 461.4 $ 396.5 $ 901.8 $ 763.3 International 66.1 69.0 130.0 126.3 Total Electrical Solutions $ 527.5 $ 465.5 $ 1,031.8 $ 889.6 United States 689.9 560.3 1,308.4 1,061.7 International 38.6 28.5 71.9 59.3 Total Utility Solutions $ 728.5 $ 588.8 $ 1,380.3 $ 1,121.0 TOTAL $ 1,256.0 $ 1,054.3 $ 2,412.1 $ 2,010.6 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 Condensed Consolidated Balance Sheets. Contract liabilities were $21.9 million as of June 30, 2022 compared to $16.7 million as of December 31, 2021. The $5.2 million increase in our contract liabilities balance was primarily due to a $15.0 million net increase in current year deferrals primarily due to timing of advance payments on certain orders partially offset by the recognition of $9.8 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2022. The Company has an immaterial amount of contract assets relating to performance obligations satisfied prior to payment that is recorded in Other long-term assets in the Condensed Consolidated Balance Sheets. Impairment losses recognized on our receivables and contract assets were immaterial for the three and six months ended June 30, 2022. Unsatisfied Performance Obligations As of June 30, 2022, the Company had approximately $390 million of unsatisfied performance obligations for contracts with an original expected length of greater than one year, primarily relating to long-term contracts of the Utility Solutions segment to deliver and install meters, metering communications and grid monitoring sensor technology. The Company expects that a majority of the unsatisfied performance obligations will be completed and recognized over the next two years. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's reporting segments consist of the Electrical Solutions segment and the Utility Solutions segment. 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 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. The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2022 2021 2022 2021 2022 2021 Three Months Ended June 30, Electrical Solutions $ 527.5 $ 465.5 $ 79.2 $ 69.3 15.0 % 14.9 % Utility Solutions 728.5 588.8 111.4 72.9 15.3 % 12.4 % TOTAL $ 1,256.0 $ 1,054.3 $ 190.6 $ 142.2 15.2 % 13.5 % Six Months Ended June 30, Electrical Solutions $ 1,031.8 $ 889.6 $ 134.0 $ 118.5 13.0 % 13.3 % Utility Solutions 1,380.3 1,121.0 199.5 133.6 14.5 % 11.9 % TOTAL $ 2,412.1 $ 2,010.6 $ 333.5 $ 252.1 13.8 % 12.5 % |
Inventories, net
Inventories, net | 6 Months Ended |
Jun. 30, 2022 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories, net | Inventories, net Inventories, net consists of the following (in millions): June 30, 2022 December 31, 2021 Raw material $ 277.0 $ 241.0 Work-in-process 149.3 129.4 Finished goods 429.6 428.6 Subtotal 855.9 799.0 Excess of FIFO over LIFO cost basis (136.4) (136.9) TOTAL $ 719.5 $ 662.1 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Changes in the carrying values of goodwill for the six months ended June 30, 2022, by segment, were as follows (in millions): Segment Electrical Solutions Utility Solutions Total BALANCE DECEMBER 31, 2021 $ 612.5 $ 1,258.8 $ 1,871.3 Foreign currency translation (4.8) (7.1) (11.9) BALANCE JUNE 30, 2022 $ 607.7 $ 1,251.7 $ 1,859.4 The carrying value of other intangible assets included in Other intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions): June 30, 2022 December 31, 2021 Gross Amount Accumulated Gross Amount Accumulated Definite-lived: Patents, tradenames and trademarks $ 180.0 $ (71.4) $ 181.3 $ (67.6) Customer relationships, developed technology and other 897.4 (402.4) 901.2 (374.0) TOTAL DEFINITE-LIVED INTANGIBLES $ 1,077.4 $ (473.8) $ 1,082.5 $ (441.6) Indefinite-lived: Tradenames and other 40.5 — 40.6 — TOTAL OTHER INTANGIBLE ASSETS $ 1,117.9 $ (473.8) $ 1,123.1 $ (441.6) Amortization expense associated with definite-lived intangible assets was $17.4 million and $19.1 million during the three months ended June 30, 2022 and 2021, respectively, and $34.9 million and $39.0 million during the six months ended June 30, 2022 and 2021, respectively. Future amortization expense associated with these intangible assets is estimated to be $34.8 million for the remainder of 2022, $65.3 million in 2023, $61.3 million in 2024, $57.2 million in 2025, $53.7 million in 2026, and $48.6 million in 2027. 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 asset's useful life, or using a straight line method. Approximately 80% of the gross value of definite-lived intangible assets follow an accelerated amortization method. The Company completed its annual goodwill impairment test as of April 1, 2022. The Company applied the "Step-zero" test to one of its four reporting units, which allows the Company to first assess qualitative factors to determine whether it is more likely than not that a reporting unit's fair value is greater than its carrying amount. Based on the qualitative assessment, the Company concluded that it was more likely than not that the fair value of this reporting unit substantially exceeded its carrying value and, therefore, further quantitative analysis was not required. For the other three reporting units, the Company elected to utilize the quantitative goodwill impairment testing process, as permitted in the accounting guidance, by comparing the estimated fair value of the reporting units to their carrying values. If the estimated fair value 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 judgment is required to estimate the fair value of reporting units including 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, impacts to the supply chain and higher inflation. The Company uses 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 of future sales growth, gross margin, operating margin, terminal growth rate, and the application of an appropriate discount rate. Significant 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, 2022, the impairment testing resulted in implied fair values for each reporting unit that significantly exceeded such 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 each of the reporting units. Additionally, the Company did not have any reporting units with zero or negative carrying amounts. |
Other Accrued Liabilities
Other Accrued Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consists of the following (in millions): June 30, 2022 December 31, 2021 Customer program incentives $ 53.6 $ 67.3 Accrued income taxes 11.0 4.8 Contract liabilities - deferred revenue 21.9 16.7 Customer refund liability 15.3 16.7 Accrued warranties (1) 36.0 36.7 Current operating lease liabilities 29.4 27.1 Other 114.5 94.1 TOTAL $ 281.7 $ 263.4 (1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information regarding warranties. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 6 Months Ended |
Jun. 30, 2022 | |
Liabilities, Other than Long-Term Debt, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consists of the following (in millions): June 30, 2022 December 31, 2021 Pensions $ 187.5 $ 189.8 Other post-retirement benefits 17.0 17.0 Deferred tax liabilities 102.2 114.7 Accrued warranties long-term (1) 30.1 29.4 Non-current operating lease liabilities 82.6 58.3 Other 111.3 112.1 TOTAL $ 530.7 $ 521.3 (1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information regarding warranties. |
Total Equity
Total Equity | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Total Equity | Total Equity A summary of changes in total equity for the three and six months ended June 30, 2022 and the three and six months ended June 30, 2021 is provided below (in millions, except per share amounts): Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2021 $ 0.6 $ — $ 2,560.0 $ (330.8) $ 2,229.8 $ 10.9 Net income — — 180.2 — 180.2 1.3 Other comprehensive (loss) income — — — 5.4 5.4 — Stock-based compensation — 11.1 — — 11.1 — Acquisition/surrender of common shares (1) — (11.2) (145.2) — (156.4) — Cash dividends declared ($1.05 per share) — — (56.9) — (56.9) — Dividends to noncontrolling interest — — — — — (1.1) Directors deferred compensation — 0.1 — — 0.1 — BALANCE AT MARCH 31, 2022 $ 0.6 $ — $ 2,538.1 $ (325.4) $ 2,213.3 $ 11.1 Net income — — 122.0 — 122.0 1.5 Other comprehensive (loss) income — — — (25.8) (25.8) — Stock-based compensation — 5.6 — — 5.6 — Acquisition/surrender of common shares (1) — (1.9) — — (1.9) — Cash dividends declared ($1.05 per share) — — (56.5) — (56.5) — Dividends to noncontrolling interest — — — — — (1.6) Directors deferred compensation — 0.2 — — 0.2 — BALANCE AT JUNE 30, 2022 $ 0.6 $ 3.9 $ 2,603.6 $ (351.2) $ 2,256.9 $ 11.0 Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2020 $ 0.6 $ 4.9 $ 2,393.7 $ (329.2) $ 2,070.0 $ 15.4 Net income — — 77.7 — 77.7 1.4 Other comprehensive (loss) income — — — (4.6) (4.6) — Stock-based compensation — 9.5 — — 9.5 — Acquisition/surrender of common shares (1) — (14.0) (2.7) — (16.7) — Cash dividends declared ($0.98 per share) — — (53.3) — (53.3) — Dividends to noncontrolling interest — — — — — (1.5) Directors deferred compensation — 0.1 — — 0.1 — BALANCE AT MARCH 31, 2021 $ 0.6 $ 0.5 $ 2,415.4 $ (333.8) $ 2,082.7 $ 15.3 Net income — — 95.8 — 95.8 0.8 Other comprehensive (loss) income — — — 11.6 11.6 — Stock-based compensation — 3.9 — — 3.9 — Acquisition/surrender of common shares (1) — (4.5) (10.5) — (15.0) — Cash dividends declared ($0.98 per share) — — (53.4) — (53.4) — Dividends to noncontrolling interest — — — — — (0.9) Directors deferred compensation — 0.1 — — 0.1 — BALANCE AT JUNE 30, 2021 $ 0.6 $ — $ 2,447.3 $ (322.2) $ 2,125.7 $ 15.2 (1) For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against common stock par value, Additional paid-in capital, to the extent available, and Retained earnings. The change in Retained earnings of $145.2 million and $13.2 million in the first six months of 2022 and 2021, respectively, reflects this accounting treatment. The detailed components of total comprehensive income are presented in the Condensed Consolidated Statements of Comprehensive Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss A summary of the changes in Accumulated other comprehensive loss (net of tax) for the six months ended June 30, 2022 is provided below (in millions): (debit) credit Cash flow Unrealized Pension Cumulative Total BALANCE AT DECEMBER 31, 2021 $ 0.4 $ 0.6 $ (202.8) $ (129.0) $ (330.8) Other comprehensive income (loss) before reclassifications 0.1 (1.2) (2.9) (25.1) (29.1) Amounts reclassified from accumulated other comprehensive loss (0.2) — 8.4 0.5 8.7 Current period other comprehensive income (loss) (0.1) (1.2) 5.5 (24.6) (20.4) BALANCE AT JUNE 30, 2022 $ 0.3 $ (0.6) $ (197.3) $ (153.6) $ (351.2) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2022 and 2021 is provided below (in millions): Three Months Ended June 30, Six Months Ended June 30, Details about Accumulated Other 2022 2021 2022 2021 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ — $ — $ — $ (0.1) Net sales 0.2 (0.5) 0.2 (0.8) Cost of goods sold — (0.2) — (0.2) Other expense, net 0.2 (0.7) 0.2 (1.1) Total before tax — 0.2 — 0.3 Tax benefit (expense) $ 0.2 $ (0.5) $ 0.2 $ (0.8) Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs (a) $ (0.1) $ (0.1) $ (0.2) $ (0.1) Actuarial gains/(losses) (a) (2.5) (2.7) (5.0) (5.4) Settlement losses (a) (5.8) — (5.8) — (8.4) (2.8) (11.0) (5.5) Total before tax 2.1 0.7 2.6 1.4 Tax benefit (expense) $ (6.3) $ (2.1) $ (8.4) $ (4.1) Gain (loss) net of tax Reclassification of currency translation gain (loss): $ — $ — $ (0.5) $ — Gain (loss) on disposition of business (Note 2) — — — — Tax benefit (expense) $ — $ — $ (0.5) $ — Gain (loss) net of tax Gains (losses) reclassified into earnings $ (6.1) $ (2.6) $ (8.7) $ (4.9) Gain (loss) net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12 - Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Service-based and performance-based restricted stock awards granted by the Company are considered participating securities as these awards contain a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three and six months ended June 30, 2022 and 2021 (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income from continuing operations attributable to Hubbell Incorporated $ 135.6 $ 88.8 $ 238.1 $ 162.1 Less: Earnings allocated to participating securities (0.4) (0.3) (0.6) (0.5) Net income from continuing operations available to common shareholders $ 135.2 $ 88.5 $ 237.5 $ 161.6 Net (loss) income from discontinued operations attributable to Hubbell Incorporated $ (13.6) $ 7.0 $ 64.1 $ 11.4 Less: Earnings allocated to participating securities — — (0.2) — Net (loss) income from discontinued operations available to common shareholders $ (13.6) $ 7.0 $ 63.9 $ 11.4 Net income attributable to Hubbell Incorporated $ 122.0 $ 95.8 $ 302.2 $ 173.5 Less: Earnings allocated to participating securities (0.4) (0.3) (0.8) (0.6) Net income available to common shareholders $ 121.6 $ 95.5 $ 301.4 $ 172.9 Denominator: Average number of common shares outstanding 53.6 54.3 53.8 54.3 Potential dilutive common shares 0.3 0.4 0.3 0.4 Average number of diluted shares outstanding 53.9 54.7 54.1 54.7 Basic earnings per share: Basic earnings per share from continuing operations $ 2.52 $ 1.63 $ 4.41 $ 2.97 Basic earnings per share from discontinued operations $ (0.25) $ 0.13 $ 1.19 $ 0.22 Basic earnings per share $ 2.27 $ 1.76 $ 5.60 $ 3.19 Diluted earnings per share: Diluted earnings per share from continuing operations $ 2.51 $ 1.62 $ 4.39 $ 2.95 Diluted earnings per share from discontinued operations $ (0.25) $ 0.12 $ 1.18 $ 0.21 Diluted earnings per share $ 2.26 $ 1.74 $ 5.57 $ 3.16 The Company did not have any significant anti-dilutive securities outstanding during the three and six months ended June 30, 2022 and 2021. |
Pension and Other Benefits
Pension and Other Benefits | 6 Months Ended |
Jun. 30, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Other Benefits | Pension and Other Benefits The following table sets forth the components of net pension and other benefit costs for the three and six months ended June 30, 2022 and 2021 (in millions): Pension Benefits Other Benefits 2022 2021 2022 2021 Three Months Ended June 30, Service cost $ 0.2 $ 0.3 $ — $ — Interest cost 6.3 6.0 0.1 0.2 Expected return on plan assets (8.2) (9.2) — — Amortization of prior service cost 0.1 0.1 — — Amortization of actuarial losses (gains) 2.6 2.7 (0.1) — Settlement losses 5.8 — — — NET PERIODIC BENEFIT COST $ 6.8 $ (0.1) $ — $ 0.2 Six Months Ended June 30, Service cost $ 0.4 $ 0.5 $ — $ — Interest cost 12.6 12.0 0.2 0.3 Expected return on plan assets (16.4) (18.3) — — Amortization of prior service cost 0.2 0.1 — — Amortization of actuarial losses (gains) 5.2 5.4 (0.2) — Settlement losses 5.8 — — — NET PERIODIC BENEFIT COST $ 7.8 $ (0.3) $ — $ 0.3 In the second quarter of 2022, the Company recorded $4.4 million of settlement losses in continuing operations and $1.4 million of settlement losses in discontinued operations 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 the year. Employer Contributions |
Guarantees
Guarantees | 6 Months Ended |
Jun. 30, 2022 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of June 30, 2022 and December 31, 2021, the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product warranties that cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known, or as historical experience indicates. Changes in the accrual for product warranties during the six months ended June 30, 2022 and 2021 are set forth below (in millions): 2022 2021 BALANCE AT JANUARY 1, (a) $ 66.1 $ 72.7 Provision 7.3 4.4 Expenditures/payments/other (7.3) (9.4) BALANCE AT June 30, (a) $ 66.1 $ 67.7 (a) Refer to Note 7 – Other Accrued Liabilities and Note 8 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Financial Instruments Financial instruments which potentially subject the Company to significant concentrations of credit loss risk consist of trade receivables, cash equivalents and investments. The Company grants credit terms in the normal course of business to its customers. Due to the diversity of its product lines, the Company has an extensive customer base including electrical distributors and wholesalers, electric utilities, equipment manufacturers, electrical contractors, telecommunication companies and retail and hardware outlets. As part of its ongoing procedures, the Company monitors the credit worthiness of its customers. Bad debt write-offs have historically been minimal. The Company places its cash and cash equivalents with financial institutions and limits the amount of exposure in any one institution. At June 30, 2022 our accounts receivable balance was $780.5 million, net of allowances of $13.9 million. During the six months ended June 30, 2022 our allowances increased approximately $3.3 million. Investments At June 30, 2022 and December 31, 2021, the Company had $65.6 million and $54.0 million, respectively, of available-for-sale municipal debt securities. These investments had an amortized cost of $66.6 million and $53.3 million, respectively. No allowance for credit losses related to our available-for-sale debt securities was recorded for the six months ended June 30, 2022. As of June 30, 2022 and December 31, 2021 the unrealized losses attributable to our available-for-sale debt securities was $1.2 million and $0.1 million, respectively. The fair value of available-for-sale debt securities with unrealized losses was $49.6 million at June 30, 2022 and $12.2 million at December 31, 2021. The Company also had trading securities of $20.2 million at June 30, 2022 and $24.5 million at December 31, 2021 that are carried on the balance sheet at fair value. Unrealized gains and losses associated with available-for-sale debt securities are reflected in Accumulated other comprehensive loss, net of tax, while unrealized gains and losses associated with trading securities are reflected in the results of operations. Fair value measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions. The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at June 30, 2022 and December 31, 2021 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Unobservable inputs Total June 30, 2022 Money market funds (a) $ 232.3 $ — $ — $ 232.3 Time Deposits (a) — 4.8 — 4.8 Available for sale investments — 65.6 — 65.6 Trading securities 20.2 — — 20.2 Deferred compensation plan liabilities (20.2) — — (20.2) Derivatives: Forward exchange contracts-Assets (b) — 0.3 — 0.3 Forward exchange contracts-(Liabilities) (c) — (0.1) — (0.1) TOTAL $ 232.3 $ 70.6 $ — $ 302.9 Asset (Liability) Quoted Prices in Quoted Prices in Unobservable inputs Total December 31, 2021 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 TOTAL $ 58.5 $ 54.5 $ — $ 113.0 (a) Money market funds and time deposits are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets. The methods and assumptions used to estimate the Level 2 fair values were as follows: Forward exchange contracts – The fair value of forward exchange contracts was based on quoted forward foreign exchange prices at the reporting date. Available-for-sale municipal bonds classified in Level 2 – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. Deferred compensation plans The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. The Company purchased $1.9 million and $2.3 million of trading securities related to these deferred compensation plans during the six months ended June 30, 2022 and 2021, respectively. As a result of participant distributions, the Company sold $2.4 million of these trading securities during the six months ended June 30, 2022 and $3.0 million during the six months ended June 30, 2021. 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 June 30, 2022 and December 31, 2021, the carrying value of long-term debt, net of unamortized discount and debt issuance costs, was $1,436.7 million and $1,435.5 million, respectively. The estimated fair value of the long-term debt as of June 30, 2022 and December 31, 2021 was $1,355.6 million and $1,524.5 million, respectively, using quoted market prices in active markets for similar liabilities (Level 2). |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and ContingenciesThe Company is subject to various legal proceedings arising in the normal course of its business. These proceedings include claims for damages arising out of use of the Company’s products, intellectual property, workers’ compensation and environmental matters. The Company is self-insured up to specified limits for certain types of claims, including product liability and workers’ compensation, and is fully self-insured for certain other types of claims, including environmental and intellectual property matters. The Company recognizes a liability for any contingency that in management’s judgment is probable of occurrence and can be reasonably estimated. We continually reassess the likelihood of adverse judgments and outcomes in these matters, as well as estimated ranges of possible losses based upon an analysis of each matter which includes advice of outside legal counsel and, if applicable, other experts. |
Restructuring Costs and Other
Restructuring Costs and Other | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs and Other | Restructuring Costs and Other In the three and six months ended June 30, 2022, we incurred costs for restructuring actions initiated in 2022 as well as costs for restructuring actions initiated in the prior years. Our restructuring actions are associated with cost reduction efforts that include the consolidation of manufacturing and distribution facilities as well as workforce reductions. Restructuring costs include severance and employee benefits, asset impairments, accelerated depreciation, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. These costs are predominantly settled in cash from our operating activities and are generally settled within one year, with the exception of asset impairments, which are non-cash. Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021 is as follows (in millions): Three Months Ended June 30, 2022 2021 2022 2021 2022 2021 Cost of goods sold Selling & administrative expense Total Electrical Solutions $ 0.5 $ 0.5 $ 0.6 $ 0.3 $ 1.1 $ 0.8 Utility Solutions 0.7 0.3 (0.2) 0.1 0.5 0.4 Total Pre-Tax Restructuring Costs $ 1.2 $ 0.8 $ 0.4 $ 0.4 $ 1.6 $ 1.2 Six Months Ended June 30, 2022 2021 2022 2021 2022 2021 Cost of goods sold Selling & administrative expense Total Electrical Solutions $ 0.6 $ 0.7 $ 0.7 $ 0.1 $ 1.3 $ 0.8 Utility Solutions 1.7 0.6 0.2 0.1 1.9 0.7 Total Pre-Tax Restructuring Costs $ 2.3 $ 1.3 $ 0.9 $ 0.2 $ 3.2 $ 1.5 The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued 2022 Restructuring Actions Severance $ — $ 2.0 $ (0.2) $ 1.8 Asset write-downs — — — — Facility closure and other costs — 0.8 (0.7) 0.1 Total 2022 Restructuring Actions $ — $ 2.8 $ (0.9) $ 1.9 2021 and Prior Restructuring Actions Severance $ 4.1 $ 0.3 $ (0.6) $ 3.8 Asset write-downs — — — — Facility closure and other costs 0.1 0.1 (0.2) — Total 2021 and Prior Restructuring Actions $ 4.2 $ 0.4 $ (0.8) $ 3.8 Total Restructuring Actions $ 4.2 $ 3.2 $ (1.7) $ 5.7 The actual costs incurred and total expected cost in each of our reporting segments of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2021 Costs incurred in the first six months of 2022 Remaining costs at 6/30/2022 2022 Restructuring Actions Electrical Solutions $ 1.1 $ — $ 0.8 $ 0.3 Utility Solutions 3.1 — 2.0 1.1 Total 2022 Restructuring Actions $ 4.2 $ — $ 2.8 $ 1.4 2021 and Prior Restructuring Actions Electrical Solutions $ 2.2 $ 1.5 $ 0.5 $ 0.2 Utility Solutions 7.3 2.4 (0.1) 5.0 Total 2021 and Prior Restructuring Actions $ 9.5 $ 3.9 $ 0.4 $ 5.2 Total Restructuring Actions $ 13.7 $ 3.9 $ 3.2 $ 6.6 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Long-term debt consists of the following (in millions): Maturity June 30, 2022 December 31, 2021 Senior notes at 3.35% 2026 $ 397.5 $ 397.2 Senior notes at 3.15% 2027 297.2 297.0 Senior notes at 3.50% 2028 445.9 445.5 Senior notes at 2.300% 2031 296.1 295.8 TOTAL LONG-TERM DEBT (a) $ 1,436.7 $ 1,435.5 (a) Long-term debt is presented net of debt issuance costs and unamortized discounts. 2021 Credit Facility The Company has a 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 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 June 30, 2022. As of June 30, 2022, the 2021 Credit Facility was undrawn. Short-Term Debt The Company had $5.8 million and $9.7 million of short-term debt outstanding at June 30, 2022 and December 31, 2021, respectively, which consisted primarily of borrowings to support our international operations in China and other short term debt to support operations. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of June 30, 2022, the Company had various stock-based awards outstanding which were issued to executives and other key employees. The Company recognizes the grant-date fair value of all stock-based awards to employees over their respective requisite service periods (generally equal to an award’s vesting period), net of estimated forfeitures. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. For those awards that vest immediately upon retirement eligibility, the Company recognizes compensation cost immediately for retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The Company’s long-term incentive program for awarding stock-based compensation includes a combination of restricted stock, stock appreciation rights (“SARs”), and performance shares of the Company’s common stock pursuant to the Hubbell Incorporated 2005 Incentive Award Plan as amended and restated (the "Award Plan"). Under the Award Plan, the Company may authorize up to 9.7 million shares of common stock to settle awards of restricted stock, performance shares, or SARs. The Company issues new shares to settle stock-based awards. During the three months ended March 31, 2022, the Company's grant of stock-based awards included restricted stock, SARs and performance shares. There were no material awards granted during the three months ended June 30, 2022. 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 either in three equal installments on each of the first three anniversaries of the grant date or on the third-year anniversary of the grant date. The f air value of these awards is measured by the average of the high and low trading prices of the Company’s common stock on the most recent trading day immediately preceding the grant date (“measurement date”). In February 2022, the Company granted 55,457 restricted stock awards with a fair value per share of $185.87. Stock Appreciation Rights SARs grant the holder the right to receive, once vested, the value in shares of the Company's common stock equal to the positive difference between the grant price, as determined using the mean of the high and low trading prices of the Company’s common stock on the measurement date, and the fair market value of the Company’s common stock on the date of exercise. This amount is payable in shares of the Company’s common stock. SARs vest and become exercisable in three equal installments during the first three years following the grant date and expire ten years from the grant date. In February 2022, the Company granted 137,099 SAR awards. The fair value of each SAR award was measured using the Black-Scholes option pricing model. The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the first three months of 2022: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR February 2022 2.1% 27.4% 1.8% 4.9 years $39.25 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 - Market Condition In February 2022, the Company granted 14,076 p erformance shares that will vest subject to a market condition and service condition through the performance period. The market condition associated with the awards is the Company's total shareholder return ("TSR") compared to the TSR generated by the companies that comprise the S&P Capital Goods 900 index over a three year performance per iod. Performance at target will result in vesting and issuance of the number of performance shares granted, equal to 100% payout. Performance below or above target can result in issuance in the range of 0%-200% of the number of shares granted. Exp ense is recognized irrespective of the market condition being achieved. The fair value of the performance share awards with a market condition for the 2022 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 2022: Grant Date Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value February 2022 $185.87 2.3% 39.7% 1.6% 2.9 years $221.94 Expected volatilities are based on historical volatilities of the Company’s and members of the peer group's stock over the expected term of the award. 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 2022, the Company granted 28,628 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 $174.48 for the awards granted in the first quarter of 2022. Grant Date Fair Value Performance Period Payout Range February 2022 $174.48 Jan 2022 - Dec 2024 0-200% |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 8, 2022, the Company acquired all of the issued and outstanding membership interests of PCX Holdings LLC ("PCX") for a cash purchase price of approximately $128 million. PCX is a leading designer and manufacturer of factory built modular power solutions for applications in the data center market. This business will be reported in the Electrical Solutions segment On July 11, 2022, the Company acquired all of the issued and outstanding membership interests of Ripley Tools, LLC and Nooks Hill Road, LLC, collectively referred to as Ripley Tools, for a cash purchase price of approximately $50 million. Ripley Tools is a leading manufacturer of cable and fiber prep tools and test equipment that serves both the Electric and Utility and Communications market. This business will be reported in the Utility Solutions segment. These acquisitions will be accounted for as business combinations whereby purchase accounting requires the assets acquired and liabilities assumed to be recognized at their fair value as of the acquisition date and goodwill and other intangible assets associated with tradenames and customer lists, among others, to be recognized. The preliminary purchase accounting for these acquisitions has not yet been completed. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the six months ended June 30, 2022 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2022. The balance sheet at December 31, 2021 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2021. |
Discontinued Operations | Discontinued Operations On February 1, 2022, the Company completed the sale of the Commercial and Industrial Lighting business (the "C&I Lighting business") to GE Current, a Daintree Company, for total cash consideration of $350 million |
Impact of the COVID-19 Pandemic | Impact of the COVID-19 Pandemic During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has had, and may continue to have, a significant effect on global economic conditions. U.S. Federal, state, local, and foreign governments have reacted to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. and global economies. The extent to which the coronavirus pandemic will continue to affect our business, operations, supply chains, and our financial results will depend on numerous evolving factors that we may not be able to accurately predict and which may cause the actual results to differ from the estimates and assumptions we are required to make in the preparation of financial statements according to GAAP. |
Recently Issued 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 June 30, 2022. The Company is currently assessing the impact of adopting this standard on its financial statements and the timing of adoption. In October 2021, the FASB issued ASU No. 2021-08, "Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." ASU 2021-08 requires an acquirer to recognize and measure contract assets and contract liabilities, including deferred revenue, acquired in a business combination in accordance with Revenue from Contracts with Customers (Topic 606) as if the acquirer had originated the contracts at the date of the business combination. The provisions of ASU 2021-08 are effective for interim periods and fiscal years beginning after December 15, 2022, with early adoption permitted. If early adopted, the provisions of ASU 2021-08 apply retrospectively to all business combinations that occurred on or after the first day of the fiscal year in which the standard is adopted. 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) | 6 Months Ended |
Jun. 30, 2022 | |
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: Three Months Ended June 30, Six Months Ended June 30, (in millions) 2022 2021 2022 2021 Net sales $ — $ 137.5 $ 29.1 $ 259.6 Cost of goods sold — 105.9 27.7 201.9 Gross profit — 31.6 1.4 57.7 Selling & administrative expenses 4.5 21.9 15.2 41.7 Operating (loss) income (4.5) 9.7 (13.8) 16.0 (Loss) Gain on disposal of business (7.7) — 80.7 — Other expense (1.4) (0.8) (1.1) (1.4) (Loss) income from discontinued operations before income taxes (13.6) 8.9 65.8 14.6 Provision for income taxes — 1.9 1.7 3.2 (Loss) income from discontinued operations, net of taxes $ (13.6) $ 7.0 $ 64.1 $ 11.4 The following table presents the major classes of assets and liabilities classified as held for sale in the Condensed Consolidated Balance Sheet for the year ended December 31, 2021: (in millions) December 31, 2021 Cash and cash equivalents $ 0.7 Accounts receivable 83.1 Inventories, net 89.8 Other current assets 5.9 Assets held for sale - current $ 179.5 Property, Plant, and Equipment, net 77.7 Goodwill 50.2 Other intangible assets, net 37.3 Other long-term assets 11.9 Assets held for sale - non-current $ 177.1 Accounts payable 50.2 Accrued salaries, wages and employee benefits 8.5 Accrued insurance 3.9 Other accrued liabilities 28.7 Liabilities held for sale - current $ 91.3 Other Non-Current Liabilities 18.8 Liabilities held for sale - non-current $ 18.8 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregated Revenue by Business Group | The following table presents disaggregated revenue by business group. On January 1, 2022, we internally reorganized certain businesses within our Electrical Solutions segment to simplify the organization structure and align the organization to better serve our customers. This change had no impact to our reportable segments. In conjunction with this change, prior period amounts have been reclassified to conform to the organizational changes within the Electrical Solutions segment. Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Net sales Electrical Products $ 234.8 $ 196.6 $ 462.5 $ 378.2 Connection and Bonding 156.4 135.4 300.3 251.5 Industrial Controls 76.7 64.7 149.7 123.2 Retail and Builder 59.6 68.8 119.3 136.7 Total Electrical Solutions $ 527.5 $ 465.5 $ 1,031.8 $ 889.6 Utility T&D Components 556.5 421.2 1,048.0 796.1 Utility Communications and Controls 172.0 167.6 332.3 324.9 Total Utility Solutions $ 728.5 $ 588.8 $ 1,380.3 $ 1,121.0 TOTAL $ 1,256.0 $ 1,054.3 $ 2,412.1 $ 2,010.6 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended June 30, Six Months Ended June 30, in millions 2022 2021 2022 2021 Net sales United States $ 461.4 $ 396.5 $ 901.8 $ 763.3 International 66.1 69.0 130.0 126.3 Total Electrical Solutions $ 527.5 $ 465.5 $ 1,031.8 $ 889.6 United States 689.9 560.3 1,308.4 1,061.7 International 38.6 28.5 71.9 59.3 Total Utility Solutions $ 728.5 $ 588.8 $ 1,380.3 $ 1,121.0 TOTAL $ 1,256.0 $ 1,054.3 $ 2,412.1 $ 2,010.6 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2022 2021 2022 2021 2022 2021 Three Months Ended June 30, Electrical Solutions $ 527.5 $ 465.5 $ 79.2 $ 69.3 15.0 % 14.9 % Utility Solutions 728.5 588.8 111.4 72.9 15.3 % 12.4 % TOTAL $ 1,256.0 $ 1,054.3 $ 190.6 $ 142.2 15.2 % 13.5 % Six Months Ended June 30, Electrical Solutions $ 1,031.8 $ 889.6 $ 134.0 $ 118.5 13.0 % 13.3 % Utility Solutions 1,380.3 1,121.0 199.5 133.6 14.5 % 11.9 % TOTAL $ 2,412.1 $ 2,010.6 $ 333.5 $ 252.1 13.8 % 12.5 % |
Inventories, net (Tables)
Inventories, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Schedule of Inventories, Net | Inventories, net consists of the following (in millions): June 30, 2022 December 31, 2021 Raw material $ 277.0 $ 241.0 Work-in-process 149.3 129.4 Finished goods 429.6 428.6 Subtotal 855.9 799.0 Excess of FIFO over LIFO cost basis (136.4) (136.9) TOTAL $ 719.5 $ 662.1 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | Changes in the carrying values of goodwill for the six months ended June 30, 2022, by segment, were as follows (in millions): Segment Electrical Solutions Utility Solutions Total BALANCE DECEMBER 31, 2021 $ 612.5 $ 1,258.8 $ 1,871.3 Foreign currency translation (4.8) (7.1) (11.9) BALANCE JUNE 30, 2022 $ 607.7 $ 1,251.7 $ 1,859.4 |
Schedule of Intangible Assets | The carrying value of other intangible assets included in Other intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions): June 30, 2022 December 31, 2021 Gross Amount Accumulated Gross Amount Accumulated Definite-lived: Patents, tradenames and trademarks $ 180.0 $ (71.4) $ 181.3 $ (67.6) Customer relationships, developed technology and other 897.4 (402.4) 901.2 (374.0) TOTAL DEFINITE-LIVED INTANGIBLES $ 1,077.4 $ (473.8) $ 1,082.5 $ (441.6) Indefinite-lived: Tradenames and other 40.5 — 40.6 — TOTAL OTHER INTANGIBLE ASSETS $ 1,117.9 $ (473.8) $ 1,123.1 $ (441.6) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accrued Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consists of the following (in millions): June 30, 2022 December 31, 2021 Customer program incentives $ 53.6 $ 67.3 Accrued income taxes 11.0 4.8 Contract liabilities - deferred revenue 21.9 16.7 Customer refund liability 15.3 16.7 Accrued warranties (1) 36.0 36.7 Current operating lease liabilities 29.4 27.1 Other 114.5 94.1 TOTAL $ 281.7 $ 263.4 (1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information regarding warranties. |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Liabilities, Other than Long-Term Debt, Noncurrent [Abstract] | |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consists of the following (in millions): June 30, 2022 December 31, 2021 Pensions $ 187.5 $ 189.8 Other post-retirement benefits 17.0 17.0 Deferred tax liabilities 102.2 114.7 Accrued warranties long-term (1) 30.1 29.4 Non-current operating lease liabilities 82.6 58.3 Other 111.3 112.1 TOTAL $ 530.7 $ 521.3 (1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2021 for additional information regarding warranties. |
Total Equity (Tables)
Total Equity (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | A summary of changes in total equity for the three and six months ended June 30, 2022 and the three and six months ended June 30, 2021 is provided below (in millions, except per share amounts): Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2021 $ 0.6 $ — $ 2,560.0 $ (330.8) $ 2,229.8 $ 10.9 Net income — — 180.2 — 180.2 1.3 Other comprehensive (loss) income — — — 5.4 5.4 — Stock-based compensation — 11.1 — — 11.1 — Acquisition/surrender of common shares (1) — (11.2) (145.2) — (156.4) — Cash dividends declared ($1.05 per share) — — (56.9) — (56.9) — Dividends to noncontrolling interest — — — — — (1.1) Directors deferred compensation — 0.1 — — 0.1 — BALANCE AT MARCH 31, 2022 $ 0.6 $ — $ 2,538.1 $ (325.4) $ 2,213.3 $ 11.1 Net income — — 122.0 — 122.0 1.5 Other comprehensive (loss) income — — — (25.8) (25.8) — Stock-based compensation — 5.6 — — 5.6 — Acquisition/surrender of common shares (1) — (1.9) — — (1.9) — Cash dividends declared ($1.05 per share) — — (56.5) — (56.5) — Dividends to noncontrolling interest — — — — — (1.6) Directors deferred compensation — 0.2 — — 0.2 — BALANCE AT JUNE 30, 2022 $ 0.6 $ 3.9 $ 2,603.6 $ (351.2) $ 2,256.9 $ 11.0 Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2020 $ 0.6 $ 4.9 $ 2,393.7 $ (329.2) $ 2,070.0 $ 15.4 Net income — — 77.7 — 77.7 1.4 Other comprehensive (loss) income — — — (4.6) (4.6) — Stock-based compensation — 9.5 — — 9.5 — Acquisition/surrender of common shares (1) — (14.0) (2.7) — (16.7) — Cash dividends declared ($0.98 per share) — — (53.3) — (53.3) — Dividends to noncontrolling interest — — — — — (1.5) Directors deferred compensation — 0.1 — — 0.1 — BALANCE AT MARCH 31, 2021 $ 0.6 $ 0.5 $ 2,415.4 $ (333.8) $ 2,082.7 $ 15.3 Net income — — 95.8 — 95.8 0.8 Other comprehensive (loss) income — — — 11.6 11.6 — Stock-based compensation — 3.9 — — 3.9 — Acquisition/surrender of common shares (1) — (4.5) (10.5) — (15.0) — Cash dividends declared ($0.98 per share) — — (53.4) — (53.4) — Dividends to noncontrolling interest — — — — — (0.9) Directors deferred compensation — 0.1 — — 0.1 — BALANCE AT JUNE 30, 2021 $ 0.6 $ — $ 2,447.3 $ (322.2) $ 2,125.7 $ 15.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income Loss | A summary of the changes in Accumulated other comprehensive loss (net of tax) for the six months ended June 30, 2022 is provided below (in millions): (debit) credit Cash flow Unrealized Pension Cumulative Total BALANCE AT DECEMBER 31, 2021 $ 0.4 $ 0.6 $ (202.8) $ (129.0) $ (330.8) Other comprehensive income (loss) before reclassifications 0.1 (1.2) (2.9) (25.1) (29.1) Amounts reclassified from accumulated other comprehensive loss (0.2) — 8.4 0.5 8.7 Current period other comprehensive income (loss) (0.1) (1.2) 5.5 (24.6) (20.4) BALANCE AT JUNE 30, 2022 $ 0.3 $ (0.6) $ (197.3) $ (153.6) $ (351.2) |
Schedule of Reclassifications Out of Accumulated Other Comprehensive Income | A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2022 and 2021 is provided below (in millions): Three Months Ended June 30, Six Months Ended June 30, Details about Accumulated Other 2022 2021 2022 2021 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ — $ — $ — $ (0.1) Net sales 0.2 (0.5) 0.2 (0.8) Cost of goods sold — (0.2) — (0.2) Other expense, net 0.2 (0.7) 0.2 (1.1) Total before tax — 0.2 — 0.3 Tax benefit (expense) $ 0.2 $ (0.5) $ 0.2 $ (0.8) Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs (a) $ (0.1) $ (0.1) $ (0.2) $ (0.1) Actuarial gains/(losses) (a) (2.5) (2.7) (5.0) (5.4) Settlement losses (a) (5.8) — (5.8) — (8.4) (2.8) (11.0) (5.5) Total before tax 2.1 0.7 2.6 1.4 Tax benefit (expense) $ (6.3) $ (2.1) $ (8.4) $ (4.1) Gain (loss) net of tax Reclassification of currency translation gain (loss): $ — $ — $ (0.5) $ — Gain (loss) on disposition of business (Note 2) — — — — Tax benefit (expense) $ — $ — $ (0.5) $ — Gain (loss) net of tax Gains (losses) reclassified into earnings $ (6.1) $ (2.6) $ (8.7) $ (4.9) Gain (loss) net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12 - Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Earnings Per Share | The following table sets forth the computation of earnings per share for the three and six months ended June 30, 2022 and 2021 (in millions, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2022 2021 2022 2021 Numerator: Net income from continuing operations attributable to Hubbell Incorporated $ 135.6 $ 88.8 $ 238.1 $ 162.1 Less: Earnings allocated to participating securities (0.4) (0.3) (0.6) (0.5) Net income from continuing operations available to common shareholders $ 135.2 $ 88.5 $ 237.5 $ 161.6 Net (loss) income from discontinued operations attributable to Hubbell Incorporated $ (13.6) $ 7.0 $ 64.1 $ 11.4 Less: Earnings allocated to participating securities — — (0.2) — Net (loss) income from discontinued operations available to common shareholders $ (13.6) $ 7.0 $ 63.9 $ 11.4 Net income attributable to Hubbell Incorporated $ 122.0 $ 95.8 $ 302.2 $ 173.5 Less: Earnings allocated to participating securities (0.4) (0.3) (0.8) (0.6) Net income available to common shareholders $ 121.6 $ 95.5 $ 301.4 $ 172.9 Denominator: Average number of common shares outstanding 53.6 54.3 53.8 54.3 Potential dilutive common shares 0.3 0.4 0.3 0.4 Average number of diluted shares outstanding 53.9 54.7 54.1 54.7 Basic earnings per share: Basic earnings per share from continuing operations $ 2.52 $ 1.63 $ 4.41 $ 2.97 Basic earnings per share from discontinued operations $ (0.25) $ 0.13 $ 1.19 $ 0.22 Basic earnings per share $ 2.27 $ 1.76 $ 5.60 $ 3.19 Diluted earnings per share: Diluted earnings per share from continuing operations $ 2.51 $ 1.62 $ 4.39 $ 2.95 Diluted earnings per share from discontinued operations $ (0.25) $ 0.12 $ 1.18 $ 0.21 Diluted earnings per share $ 2.26 $ 1.74 $ 5.57 $ 3.16 |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Pension and Other Benefit Costs | The following table sets forth the components of net pension and other benefit costs for the three and six months ended June 30, 2022 and 2021 (in millions): Pension Benefits Other Benefits 2022 2021 2022 2021 Three Months Ended June 30, Service cost $ 0.2 $ 0.3 $ — $ — Interest cost 6.3 6.0 0.1 0.2 Expected return on plan assets (8.2) (9.2) — — Amortization of prior service cost 0.1 0.1 — — Amortization of actuarial losses (gains) 2.6 2.7 (0.1) — Settlement losses 5.8 — — — NET PERIODIC BENEFIT COST $ 6.8 $ (0.1) $ — $ 0.2 Six Months Ended June 30, Service cost $ 0.4 $ 0.5 $ — $ — Interest cost 12.6 12.0 0.2 0.3 Expected return on plan assets (16.4) (18.3) — — Amortization of prior service cost 0.2 0.1 — — Amortization of actuarial losses (gains) 5.2 5.4 (0.2) — Settlement losses 5.8 — — — NET PERIODIC BENEFIT COST $ 7.8 $ (0.3) $ — $ 0.3 |
Guarantees (Tables)
Guarantees (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Standard Product Warranty Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Changes in the accrual for product warranties during the six months ended June 30, 2022 and 2021 are set forth below (in millions): 2022 2021 BALANCE AT JANUARY 1, (a) $ 66.1 $ 72.7 Provision 7.3 4.4 Expenditures/payments/other (7.3) (9.4) BALANCE AT June 30, (a) $ 66.1 $ 67.7 (a) Refer to Note 7 – Other Accrued Liabilities and Note 8 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liability by Fair Value Hierarchy Level | The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at June 30, 2022 and December 31, 2021 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Unobservable inputs Total June 30, 2022 Money market funds (a) $ 232.3 $ — $ — $ 232.3 Time Deposits (a) — 4.8 — 4.8 Available for sale investments — 65.6 — 65.6 Trading securities 20.2 — — 20.2 Deferred compensation plan liabilities (20.2) — — (20.2) Derivatives: Forward exchange contracts-Assets (b) — 0.3 — 0.3 Forward exchange contracts-(Liabilities) (c) — (0.1) — (0.1) TOTAL $ 232.3 $ 70.6 $ — $ 302.9 Asset (Liability) Quoted Prices in Quoted Prices in Unobservable inputs Total December 31, 2021 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 TOTAL $ 58.5 $ 54.5 $ — $ 113.0 (a) Money market funds and time deposits are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets. |
Restructuring Costs and Other (
Restructuring Costs and Other (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Costs | Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2022 and 2021 is as follows (in millions): Three Months Ended June 30, 2022 2021 2022 2021 2022 2021 Cost of goods sold Selling & administrative expense Total Electrical Solutions $ 0.5 $ 0.5 $ 0.6 $ 0.3 $ 1.1 $ 0.8 Utility Solutions 0.7 0.3 (0.2) 0.1 0.5 0.4 Total Pre-Tax Restructuring Costs $ 1.2 $ 0.8 $ 0.4 $ 0.4 $ 1.6 $ 1.2 Six Months Ended June 30, 2022 2021 2022 2021 2022 2021 Cost of goods sold Selling & administrative expense Total Electrical Solutions $ 0.6 $ 0.7 $ 0.7 $ 0.1 $ 1.3 $ 0.8 Utility Solutions 1.7 0.6 0.2 0.1 1.9 0.7 Total Pre-Tax Restructuring Costs $ 2.3 $ 1.3 $ 0.9 $ 0.2 $ 3.2 $ 1.5 |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued 2022 Restructuring Actions Severance $ — $ 2.0 $ (0.2) $ 1.8 Asset write-downs — — — — Facility closure and other costs — 0.8 (0.7) 0.1 Total 2022 Restructuring Actions $ — $ 2.8 $ (0.9) $ 1.9 2021 and Prior Restructuring Actions Severance $ 4.1 $ 0.3 $ (0.6) $ 3.8 Asset write-downs — — — — Facility closure and other costs 0.1 0.1 (0.2) — Total 2021 and Prior Restructuring Actions $ 4.2 $ 0.4 $ (0.8) $ 3.8 Total Restructuring Actions $ 4.2 $ 3.2 $ (1.7) $ 5.7 The actual costs incurred and total expected cost in each of our reporting segments of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2021 Costs incurred in the first six months of 2022 Remaining costs at 6/30/2022 2022 Restructuring Actions Electrical Solutions $ 1.1 $ — $ 0.8 $ 0.3 Utility Solutions 3.1 — 2.0 1.1 Total 2022 Restructuring Actions $ 4.2 $ — $ 2.8 $ 1.4 2021 and Prior Restructuring Actions Electrical Solutions $ 2.2 $ 1.5 $ 0.5 $ 0.2 Utility Solutions 7.3 2.4 (0.1) 5.0 Total 2021 and Prior Restructuring Actions $ 9.5 $ 3.9 $ 0.4 $ 5.2 Total Restructuring Actions $ 13.7 $ 3.9 $ 3.2 $ 6.6 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Long-term debt consists of the following (in millions): Maturity June 30, 2022 December 31, 2021 Senior notes at 3.35% 2026 $ 397.5 $ 397.2 Senior notes at 3.15% 2027 297.2 297.0 Senior notes at 3.50% 2028 445.9 445.5 Senior notes at 2.300% 2031 296.1 295.8 TOTAL LONG-TERM DEBT (a) $ 1,436.7 $ 1,435.5 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of the Weighted-Average Assumption Used in Estimating Fair Value of Stock Appreciation Rights | The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the first three months of 2022: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR February 2022 2.1% 27.4% 1.8% 4.9 years $39.25 |
Schedule of the Attributes of the Performance Shares Granted During the Period | The following table summarizes the related assumptions used to determine the fair values of the performance share awards with a market condition granted during February 2022: Grant Date Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value February 2022 $185.87 2.3% 39.7% 1.6% 2.9 years $221.94 Grant Date Fair Value Performance Period Payout Range February 2022 $174.48 Jan 2022 - Dec 2024 0-200% |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Feb. 01, 2022 USD ($) |
Discontinued Operations, Disposed of by Sale | Commercial and Industrial Lighting business | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash purchase price | $ 350 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - Discontinued Operations, Disposed of by Sale - Commercial and Industrial Lighting business - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Feb. 01, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Cash purchase price | $ 350 | ||||
Administrative and operational services for a period (in months) | 12 months | ||||
Income from service | $ 4.8 | $ 7.6 | |||
Transaction and separation costs, net of tax | 4.5 | 6.7 | |||
Pre-tax gain on the disposal | $ (7.7) | $ 0 | $ 80.7 | $ 0 |
Discontinued Operations - Sched
Discontinued Operations - Schedule of Income From Discontinued Operations, Net of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
(Loss) income from discontinued operations, net of taxes | $ (13.6) | $ 7 | $ 64.1 | $ 11.4 |
Discontinued Operations, Disposed of by Sale | Commercial and Industrial Lighting business | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | 0 | 137.5 | 29.1 | 259.6 |
Cost of goods sold | 0 | 105.9 | 27.7 | 201.9 |
Gross profit | 0 | 31.6 | 1.4 | 57.7 |
Selling & administrative expenses | 4.5 | 21.9 | 15.2 | 41.7 |
Operating (loss) income | (4.5) | 9.7 | (13.8) | 16 |
(Loss) Gain on disposal of business | (7.7) | 0 | 80.7 | 0 |
Other expense | (1.4) | (0.8) | (1.1) | (1.4) |
(Loss) income from discontinued operations before income taxes | (13.6) | 8.9 | 65.8 | 14.6 |
Provision for income taxes | 0 | 1.9 | 1.7 | 3.2 |
(Loss) income from discontinued operations, net of taxes | $ (13.6) | $ 7 | $ 64.1 | $ 11.4 |
Discontinued Operations - Sch_2
Discontinued Operations - Schedule of Balance Sheet Information for Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale - current | $ 0 | $ 179.5 |
Assets held for sale - non-current | 0 | 177.1 |
Liabilities held for sale - current | 0 | 91.3 |
Liabilities held for sale - non-current | $ 0 | 18.8 |
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 | |
Accounts receivable | 83.1 | |
Inventories, net | 89.8 | |
Other current assets | 5.9 | |
Assets held for sale - current | 179.5 | |
Property, Plant, and Equipment, net | 77.7 | |
Goodwill | 50.2 | |
Other intangible assets, net | 37.3 | |
Other long-term assets | 11.9 | |
Assets held for sale - non-current | 177.1 | |
Accounts payable | 50.2 | |
Accrued salaries, wages and employee benefits | 8.5 | |
Accrued insurance | 3.9 | |
Other accrued liabilities | 28.7 | |
Liabilities held for sale - current | 91.3 | |
Other Non-Current Liabilities | 18.8 | |
Liabilities held for sale - non-current | $ 18.8 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Percentage of revenue from service contracts and post-shipment obligations (approximate) | 2% | |
Contract liability | $ 21.9 | $ 16.7 |
Increase (decrease) in net contract liabilities | 5.2 | |
Increase in current year deferrals, net | 15 | |
Revenue recognized | $ 9.8 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 1,256 | $ 1,054.3 | $ 2,412.1 | $ 2,010.6 |
Electrical Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 527.5 | 465.5 | 1,031.8 | 889.6 |
Electrical Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 461.4 | 396.5 | 901.8 | 763.3 |
Electrical Solutions | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 66.1 | 69 | 130 | 126.3 |
Electrical Solutions | Electrical Products | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 234.8 | 196.6 | 462.5 | 378.2 |
Electrical Solutions | Connection and Bonding | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 156.4 | 135.4 | 300.3 | 251.5 |
Electrical Solutions | Industrial Controls | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 76.7 | 64.7 | 149.7 | 123.2 |
Electrical Solutions | Retail and Builder | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 59.6 | 68.8 | 119.3 | 136.7 |
Utility Solutions | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 728.5 | 588.8 | 1,380.3 | 1,121 |
Utility Solutions | United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 689.9 | 560.3 | 1,308.4 | 1,061.7 |
Utility Solutions | International | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 38.6 | 28.5 | 71.9 | 59.3 |
Utility Solutions | Utility T&D Components | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 556.5 | 421.2 | 1,048 | 796.1 |
Utility Solutions | Utility Communications and Controls | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 172 | $ 167.6 | $ 332.3 | $ 324.9 |
Revenue - Unsatisfied Performan
Revenue - Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 $ in Millions | Jun. 30, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 390 |
Unsatisfied performance obligation, period of recognition (in years) | 2 years |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 1,256 | $ 1,054.3 | $ 2,412.1 | $ 2,010.6 |
Operating Income | $ 190.6 | $ 142.2 | $ 333.5 | $ 252.1 |
Operating Income as a % of Net Sales | 15.20% | 13.50% | 13.80% | 12.50% |
Electrical Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 527.5 | $ 465.5 | $ 1,031.8 | $ 889.6 |
Operating Income | $ 79.2 | $ 69.3 | $ 134 | $ 118.5 |
Operating Income as a % of Net Sales | 15% | 14.90% | 13% | 13.30% |
Utility Solutions | ||||
Segment Reporting Information [Line Items] | ||||
Net Sales | $ 728.5 | $ 588.8 | $ 1,380.3 | $ 1,121 |
Operating Income | $ 111.4 | $ 72.9 | $ 199.5 | $ 133.6 |
Operating Income as a % of Net Sales | 15.30% | 12.40% | 14.50% | 11.90% |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw material | $ 277 | $ 241 |
Work-in-process | 149.3 | 129.4 |
Finished goods | 429.6 | 428.6 |
Subtotal | 855.9 | 799 |
Excess of FIFO over LIFO cost basis | (136.4) | (136.9) |
TOTAL | $ 719.5 | $ 662.1 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Changes in Goodwill (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | $ 1,871.3 |
Foreign currency translation | (11.9) |
Goodwill, Ending Balance | 1,859.4 |
Electrical Solutions | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 612.5 |
Foreign currency translation | (4.8) |
Goodwill, Ending Balance | 607.7 |
Utility Solutions | |
Goodwill [Roll Forward] | |
Goodwill, Beginning Balance | 1,258.8 |
Foreign currency translation | (7.1) |
Goodwill, Ending Balance | $ 1,251.7 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net - Other Intangible Assets (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,077.4 | $ 1,082.5 |
Accumulated Amortization | (473.8) | (441.6) |
Total intangible assets | 1,117.9 | 1,123.1 |
Tradenames and other | ||
Other Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 40.5 | 40.6 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 180 | 181.3 |
Accumulated Amortization | (71.4) | (67.6) |
Customer relationships, developed technology and other | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 897.4 | 901.2 |
Accumulated Amortization | $ (402.4) | $ (374) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2022 USD ($) reporting_unit | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Amortization expense | $ 17.4 | $ 19.1 | $ 34.9 | $ 39 | |
Percentage of definite-lived intangible assets under accelerated amortization method (approximate) (as a percent) | 80% | 80% | |||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
Remainder of 2022 | $ 34.8 | $ 34.8 | |||
2023 | 65.3 | 65.3 | |||
2024 | 61.3 | 61.3 | |||
2025 | 57.2 | 57.2 | |||
2026 | 53.7 | 53.7 | |||
2027 | $ 48.6 | $ 48.6 | |||
Number of reporting units with goodwill | reporting_unit | 4 | ||||
Goodwill impairment | $ 0 | ||||
Reporting units with zero or negative carrying amounts | reporting_unit | 0 | ||||
Indefinite-Lived Intangible Assets (Excluding Goodwill) [Abstract] | |||||
Indefinite-lived intangible asset impairment | $ 0 | ||||
Step-Zero Tested | |||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
Number of reporting units with goodwill | reporting_unit | 1 | ||||
Quantitatively Tested | |||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||||
Number of reporting units with goodwill | reporting_unit | 3 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 53.6 | $ 67.3 |
Accrued income taxes | 11 | 4.8 |
Contract liabilities - deferred revenue | 21.9 | 16.7 |
Customer refund liability | 15.3 | 16.7 |
Accrued warranties | 36 | 36.7 |
Current operating lease liabilities | 29.4 | 27.1 |
Other | 114.5 | 94.1 |
TOTAL | $ 281.7 | $ 263.4 |
Other Non-Current Liabilities_2
Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Liabilities, Other than Long-Term Debt, Noncurrent [Abstract] | ||
Pensions | $ 187.5 | $ 189.8 |
Other post-retirement benefits | 17 | 17 |
Deferred tax liabilities | 102.2 | 114.7 |
Accrued warranties long-term | 30.1 | 29.4 |
Non-current operating lease liabilities | 82.6 | 58.3 |
Other | 111.3 | 112.1 |
TOTAL | $ 530.7 | $ 521.3 |
Total Equity (Details)
Total Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | $ 2,240.7 | $ 2,240.7 | ||||
Net income | $ 123.5 | $ 96.6 | 305 | $ 175.7 | ||
Other comprehensive (loss) income | (25.8) | $ 11.6 | (20.4) | $ 7 | ||
Ending equity | $ 2,267.9 | $ 2,267.9 | ||||
Cash dividends declared (USD per share) | $ 1.05 | $ 1.05 | $ 0.98 | $ 0.98 | $ 2.10 | $ 1.96 |
Common Stock | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | $ 0.6 | $ 0.6 | $ 0.6 | $ 0.6 | $ 0.6 | $ 0.6 |
Ending equity | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 | 0.6 |
Additional Paid-in Capital | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | 0 | 0 | 0.5 | 4.9 | 0 | 4.9 |
Stock-based compensation | 5.6 | 11.1 | 3.9 | 9.5 | ||
Acquisition/surrender of common shares | 1.9 | 11.2 | 4.5 | 14 | ||
Directors deferred compensation | 0.2 | 0.1 | 0.1 | 0.1 | ||
Ending equity | 3.9 | 0 | 0 | 0.5 | 3.9 | 0 |
Retained Earnings | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | 2,538.1 | 2,560 | 2,415.4 | 2,393.7 | 2,560 | 2,393.7 |
Net income | 122 | 180.2 | 95.8 | 77.7 | ||
Acquisition/surrender of common shares | 145.2 | 10.5 | 2.7 | 145.2 | 13.2 | |
Cash dividends declared | (56.5) | (56.9) | (53.4) | (53.3) | ||
Ending equity | 2,603.6 | 2,538.1 | 2,447.3 | 2,415.4 | 2,603.6 | 2,447.3 |
Accumulated Other Comprehensive Income (Loss) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | (325.4) | (330.8) | (333.8) | (329.2) | (330.8) | (329.2) |
Other comprehensive (loss) income | (25.8) | 5.4 | 11.6 | (4.6) | ||
Ending equity | (351.2) | (325.4) | (322.2) | (333.8) | (351.2) | (322.2) |
Total Hubbell Shareholders' Equity | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | 2,213.3 | 2,229.8 | 2,082.7 | 2,070 | 2,229.8 | 2,070 |
Net income | 122 | 180.2 | 95.8 | 77.7 | ||
Other comprehensive (loss) income | (25.8) | 5.4 | 11.6 | (4.6) | ||
Stock-based compensation | 5.6 | 11.1 | 3.9 | 9.5 | ||
Acquisition/surrender of common shares | 1.9 | 156.4 | 15 | 16.7 | ||
Cash dividends declared | (56.5) | (56.9) | (53.4) | (53.3) | ||
Directors deferred compensation | 0.2 | 0.1 | 0.1 | 0.1 | ||
Ending equity | 2,256.9 | 2,213.3 | 2,125.7 | 2,082.7 | 2,256.9 | 2,125.7 |
Non- controlling interest | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | 11.1 | 10.9 | 15.3 | 15.4 | 10.9 | 15.4 |
Net income | 1.5 | 1.3 | 0.8 | 1.4 | ||
Dividends to noncontrolling interest | (1.6) | (1.1) | (0.9) | (1.5) | ||
Ending equity | $ 11 | $ 11.1 | $ 15.2 | $ 15.3 | $ 11 | $ 15.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | $ 2,240.7 | $ 2,240.7 | ||||
Other comprehensive income (loss) before reclassifications | (29.1) | |||||
Amounts reclassified from accumulated other comprehensive loss | 8.7 | |||||
Other comprehensive (loss) income | $ (25.8) | $ 11.6 | (20.4) | $ 7 | ||
Ending equity | 2,267.9 | 2,267.9 | ||||
Cash flow hedge (loss) gain | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | 0.4 | 0.4 | ||||
Other comprehensive income (loss) before reclassifications | 0.1 | |||||
Amounts reclassified from accumulated other comprehensive loss | (0.2) | |||||
Other comprehensive (loss) income | (0.1) | |||||
Ending equity | 0.3 | 0.3 | ||||
Unrealized gain (loss) on available-for- sale securities | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | 0.6 | 0.6 | ||||
Other comprehensive income (loss) before reclassifications | (1.2) | |||||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||||
Other comprehensive (loss) income | (1.2) | |||||
Ending equity | (0.6) | (0.6) | ||||
Pension and post retirement benefit plan adjustment | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | (202.8) | (202.8) | ||||
Other comprehensive income (loss) before reclassifications | (2.9) | |||||
Amounts reclassified from accumulated other comprehensive loss | 8.4 | |||||
Other comprehensive (loss) income | 5.5 | |||||
Ending equity | (197.3) | (197.3) | ||||
Cumulative translation adjustment | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | (129) | (129) | ||||
Other comprehensive income (loss) before reclassifications | (25.1) | |||||
Amounts reclassified from accumulated other comprehensive loss | 0.5 | |||||
Other comprehensive (loss) income | (24.6) | |||||
Ending equity | (153.6) | (153.6) | ||||
Total | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Beginning equity | (325.4) | (330.8) | (333.8) | $ (329.2) | (330.8) | (329.2) |
Other comprehensive (loss) income | (25.8) | 5.4 | 11.6 | (4.6) | ||
Ending equity | $ (351.2) | $ (325.4) | $ (322.2) | $ (333.8) | $ (351.2) | $ (322.2) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | $ 1,256 | $ 1,054.3 | $ 2,412.1 | $ 2,010.6 |
Cost of goods sold | 872.8 | 756 | 1,705.8 | 1,450.1 |
Other income, net | 2.5 | 0.5 | 6.1 | 1.7 |
Tax benefit (expense) | (38.9) | (16.9) | (68.5) | (38.1) |
Loss on disposition of business | 0 | (6.8) | 0 | (6.8) |
Gain (loss) net of tax | 123.5 | 96.6 | 305 | 175.7 |
Reclassification out of Accumulated Other Comprehensive Income | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Gain (loss) net of tax | (6.1) | (2.6) | (8.7) | (4.9) |
Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges gain (loss): | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Net sales | 0 | 0 | 0 | (0.1) |
Cost of goods sold | 0.2 | (0.5) | 0.2 | (0.8) |
Other income, net | 0 | (0.2) | 0 | (0.2) |
Total before tax | 0.2 | (0.7) | 0.2 | (1.1) |
Tax benefit (expense) | 0 | 0.2 | 0 | 0.3 |
Gain (loss) net of tax | 0.2 | (0.5) | 0.2 | (0.8) |
Reclassification out of Accumulated Other Comprehensive Income | Prior-service costs | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | (0.1) | (0.1) | (0.2) | (0.1) |
Reclassification out of Accumulated Other Comprehensive Income | Actuarial gains/(losses) | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | (2.5) | (2.7) | (5) | (5.4) |
Reclassification out of Accumulated Other Comprehensive Income | Settlement and curtailment losses | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | (5.8) | 0 | (5.8) | 0 |
Reclassification out of Accumulated Other Comprehensive Income | Pension and post retirement benefit plan adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Total before tax | (8.4) | (2.8) | (11) | (5.5) |
Tax benefit (expense) | 2.1 | 0.7 | 2.6 | 1.4 |
Gain (loss) net of tax | (6.3) | (2.1) | (8.4) | (4.1) |
Reclassification out of Accumulated Other Comprehensive Income | Cumulative translation adjustment | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Tax benefit (expense) | 0 | 0 | 0 | 0 |
Loss on disposition of business | 0 | 0 | (0.5) | 0 |
Gain (loss) net of tax | $ 0 | $ 0 | $ (0.5) | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | ||||
Net income from continuing operations attributable to Hubbell Incorporated | $ 135.6 | $ 88.8 | $ 238.1 | $ 162.1 |
Less: Earnings allocated to participating securities | (0.4) | (0.3) | (0.6) | (0.5) |
Net income from continuing operations available to common shareholders | 135.2 | 88.5 | 237.5 | 161.6 |
Net (loss) income from discontinued operations attributable to Hubbell Incorporated | (13.6) | 7 | 64.1 | 11.4 |
Less: Earnings allocated to participating securities | 0 | 0 | (0.2) | 0 |
Net (loss) income from discontinued operations available to common shareholders | (13.6) | 7 | 63.9 | 11.4 |
Net income attributable to Hubbell Incorporated | 122 | 95.8 | 302.2 | 173.5 |
Less: Earnings allocated to participating securities | (0.4) | (0.3) | (0.8) | (0.6) |
Net income available to common shareholders | $ 121.6 | $ 95.5 | $ 301.4 | $ 172.9 |
Denominator: | ||||
Average number of common shares outstanding (in shares) | 53.6 | 54.3 | 53.8 | 54.3 |
Potential dilutive common shares (in shares) | 0.3 | 0.4 | 0.3 | 0.4 |
Average number of diluted shares outstanding (in shares) | 53.9 | 54.7 | 54.1 | 54.7 |
Basic earnings per share: | ||||
Basic earnings per share from continuing operations (USD per share) | $ 2.52 | $ 1.63 | $ 4.41 | $ 2.97 |
Basic earnings per share from discontinued operations (USD per share) | (0.25) | 0.13 | 1.19 | 0.22 |
Basic earnings per share (USD per share) | 2.27 | 1.76 | 5.60 | 3.19 |
Diluted earnings per share: | ||||
Diluted earnings per share from continuing operations (USD per share) | 2.51 | 1.62 | 4.39 | 2.95 |
Diluted earnings per share from discontinued operations (USD per share) | (0.25) | 0.12 | 1.18 | 0.21 |
Diluted earnings per share (USD per share) | $ 2.26 | $ 1.74 | $ 5.57 | $ 3.16 |
Pension and Other Benefits - Ne
Pension and Other Benefits - Net Pension and Other Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
NET PERIODIC BENEFIT COST | $ 4.4 | $ 0 | $ 4.4 | $ 0 |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0.2 | 0.3 | 0.4 | 0.5 |
Interest cost | 6.3 | 6 | 12.6 | 12 |
Expected return on plan assets | (8.2) | (9.2) | (16.4) | (18.3) |
Amortization of prior service cost | 0.1 | 0.1 | 0.2 | 0.1 |
Amortization of actuarial losses (gains) | 2.6 | 2.7 | 5.2 | 5.4 |
Settlement losses | 5.8 | 0 | 5.8 | 0 |
NET PERIODIC BENEFIT COST | 6.8 | (0.1) | 7.8 | (0.3) |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0.1 | 0.2 | 0.2 | 0.3 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial losses (gains) | (0.1) | 0 | (0.2) | 0 |
Settlement losses | 0 | 0 | 0 | 0 |
NET PERIODIC BENEFIT COST | $ 0 | $ 0.2 | $ 0 | $ 0.3 |
Pension and Other Benefits - Na
Pension and Other Benefits - Narrative (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement losses | $ 5.8 | $ 0 | $ 5.8 | $ 0 |
Foreign Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Contributions by employer | $ 2.5 | |||
Continuing Operations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement losses | 4.4 | |||
Discontinued Operations | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Settlement losses | $ 1.4 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 66.1 | $ 72.7 |
Provision | 7.3 | 4.4 |
Expenditures/payments/other | (7.3) | (9.4) |
Ending balance | $ 66.1 | $ 67.7 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Accounts receivable, net | $ 780.5 | $ 675.3 | |
Accounts receivable, allowances | 13.9 | 10.6 | |
Increase in accounts receivable, allowances | (3.3) | ||
Available for sale debt securities | 65.6 | 54 | |
Available for sale debt securities, amortized cost | 66.6 | 53.3 | |
Available for sale debt securities, allowance for credit losses | 0 | ||
Available for sale debt securities, unrealized losses | 1.2 | 0.1 | |
Available for sale debt securities with unrealized losses, fair value | 49.6 | 12.2 | |
Trading securities | 20.2 | 24.5 | |
Purchase of trading securities related to deferred compensation plans | 1.9 | $ 2.3 | |
Proceeds from securities sold | 2.4 | $ 3 | |
Long-term debt | 1,436.7 | 1,435.5 | |
Senior Notes | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-term debt | 1,436.7 | 1,435.5 | |
Long-term debt, fair value | $ 1,355.6 | $ 1,524.5 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities by Hierarchy Level (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | $ 65.6 | $ 54 |
Trading securities | 20.2 | 24.5 |
Deferred compensation plan liabilities | (20.2) | (24.5) |
Derivatives: | ||
Forward exchange contracts-Assets | 0.3 | 0.5 |
Forward exchange contracts-(Liabilities) | (0.1) | |
TOTAL | 302.9 | 113 |
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 | 20.2 | 24.5 |
Deferred compensation plan liabilities | (20.2) | (24.5) |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | 0 |
Forward exchange contracts-(Liabilities) | 0 | |
TOTAL | 232.3 | 58.5 |
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 | 65.6 | 54 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0.3 | 0.5 |
Forward exchange contracts-(Liabilities) | (0.1) | |
TOTAL | 70.6 | 54.5 |
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 | 0 |
Forward exchange contracts-(Liabilities) | 0 | |
TOTAL | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 232.3 | 58.5 |
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 232.3 | 58.5 |
Money market funds | Quoted Prices in Active Markets for Similar Assets (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Money market funds | Unobservable inputs for which little or no market data exists (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | $ 0 |
Time Deposits | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 4.8 | |
Time Deposits | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | |
Time Deposits | Quoted Prices in Active Markets for Similar Assets (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 4.8 | |
Time Deposits | Unobservable inputs for which little or no market data exists (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 |
Restructuring Costs and Other -
Restructuring Costs and Other - By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 1.6 | $ 1.2 | $ 3.2 | $ 1.5 |
Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1.2 | 0.8 | 2.3 | 1.3 |
Selling & administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.4 | 0.4 | 0.9 | 0.2 |
Electrical Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 1.1 | 0.8 | 1.3 | 0.8 |
Electrical Solutions | Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.5 | 0.5 | 0.6 | 0.7 |
Electrical Solutions | Selling & administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.6 | 0.3 | 0.7 | 0.1 |
Utility Solutions | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.5 | 0.4 | 1.9 | 0.7 |
Utility Solutions | Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.7 | 0.3 | 1.7 | 0.6 |
Utility Solutions | Selling & administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ (0.2) | $ 0.1 | $ 0.2 | $ 0.1 |
Restructuring Costs and Other_2
Restructuring Costs and Other - Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | $ 4.2 | |||
Pre-tax Restructuring Costs | $ 1.6 | $ 1.2 | 3.2 | $ 1.5 |
Utilization and Foreign Exchange | (1.7) | |||
Restructuring Reserve, Ending Balance | 5.7 | 5.7 | ||
2022 Restructuring Actions | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | 0 | |||
Pre-tax Restructuring Costs | 2.8 | |||
Utilization and Foreign Exchange | (0.9) | |||
Restructuring Reserve, Ending Balance | 1.9 | 1.9 | ||
2022 Restructuring Actions | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | 0 | |||
Pre-tax Restructuring Costs | 2 | |||
Utilization and Foreign Exchange | (0.2) | |||
Restructuring Reserve, Ending Balance | 1.8 | 1.8 | ||
2022 Restructuring Actions | Asset write-downs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | 0 | |||
Pre-tax Restructuring Costs | 0 | |||
Utilization and Foreign Exchange | 0 | |||
Restructuring Reserve, Ending Balance | 0 | 0 | ||
2022 Restructuring Actions | Facility closure and other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | 0 | |||
Pre-tax Restructuring Costs | 0.8 | |||
Utilization and Foreign Exchange | (0.7) | |||
Restructuring Reserve, Ending Balance | 0.1 | 0.1 | ||
2021 and Prior Restructuring Actions | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | 4.2 | |||
Pre-tax Restructuring Costs | 0.4 | |||
Utilization and Foreign Exchange | (0.8) | |||
Restructuring Reserve, Ending Balance | 3.8 | 3.8 | ||
2021 and Prior Restructuring Actions | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | 4.1 | |||
Pre-tax Restructuring Costs | 0.3 | |||
Utilization and Foreign Exchange | (0.6) | |||
Restructuring Reserve, Ending Balance | 3.8 | 3.8 | ||
2021 and Prior Restructuring Actions | Asset write-downs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | 0 | |||
Pre-tax Restructuring Costs | 0 | |||
Utilization and Foreign Exchange | 0 | |||
Restructuring Reserve, Ending Balance | 0 | 0 | ||
2021 and Prior Restructuring Actions | Facility closure and other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Reserve, Beginning Balance | 0.1 | |||
Pre-tax Restructuring Costs | 0.1 | |||
Utilization and Foreign Exchange | (0.2) | |||
Restructuring Reserve, Ending Balance | $ 0 | $ 0 |
Restructuring Costs and Other_3
Restructuring Costs and Other - Summary of Costs (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | $ 13.7 | |
Costs incurred | 3.2 | $ 3.9 |
Restructuring costs | 6.6 | |
2022 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 4.2 | |
Costs incurred | 2.8 | 0 |
Restructuring costs | 1.4 | |
2022 Restructuring Actions | Electrical Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 1.1 | |
Costs incurred | 0.8 | 0 |
Restructuring costs | 0.3 | |
2022 Restructuring Actions | Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 3.1 | |
Costs incurred | 2 | 0 |
Restructuring costs | 1.1 | |
2021 and Prior Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 9.5 | |
Costs incurred | 0.4 | 3.9 |
Restructuring costs | 5.2 | |
2021 and Prior Restructuring Actions | Electrical Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 2.2 | |
Costs incurred | 0.5 | 1.5 |
Restructuring costs | 0.2 | |
2021 and Prior Restructuring Actions | Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 7.3 | |
Costs incurred | (0.1) | $ 2.4 |
Restructuring costs | $ 5 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,436.7 | $ 1,435.5 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,436.7 | 1,435.5 |
Senior Notes | Senior notes at 3.35% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 3.35% | |
Long-term debt | $ 397.5 | 397.2 |
Senior Notes | Senior notes at 3.15% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 3.15% | |
Long-term debt | $ 297.2 | 297 |
Senior Notes | Senior notes at 3.50% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 3.50% | |
Long-term debt | $ 445.9 | 445.5 |
Senior Notes | Senior notes at 2.300% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 2.30% | |
Long-term debt | $ 296.1 | $ 295.8 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Short-term debt outstanding | $ 5.8 | $ 9.7 |
2021 Credit Facility | 2021 Credit Facility | ||
Debt Instrument [Line Items] | ||
Debt term (in years) | 5 years | |
Line of credit, maximum borrowing capacity | $ 750 | |
Line of credit facility, accordion feature, higher borrowing capacity option | $ 1,250 | |
Line of credit facility covenants maximum debt to capitalization (as a percent) | 65% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended |
Feb. 28, 2022 $ / shares shares | Jun. 30, 2022 shares | Jun. 30, 2022 installment shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum number of shares authorized (shares) | 9,700,000 | 9,700,000 | |
Shares granted (shares) | 0 | ||
Restricted Stock Awards Service Condition | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of installments | installment | 3 | ||
Shares granted (shares) | 55,457 | ||
Weighted Avg. Grant Date Fair Value (USD per share) | $ / shares | $ 185.87 | ||
Restricted Stock Awards Service Condition | Vesting Period One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage (as a percent) | 33.33% | ||
Restricted Stock Awards Service Condition | Vesting Period Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage (as a percent) | 33.33% | ||
Restricted Stock Awards Service Condition | Vesting Period Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage (as a percent) | 33.33% | ||
Stock Appreciation Rights SARS | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of installments | installment | 3 | ||
Shares granted (shares) | 137,099 | ||
Weighted Avg. Grant Date Fair Value (USD per share) | $ / shares | $ 39.25 | ||
Award vesting period (in years) | 3 years | ||
Award, expiration period (in years) | 10 years | ||
Stock Appreciation Rights SARS | Vesting Period One | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage (as a percent) | 33.33% | ||
Stock Appreciation Rights SARS | Vesting Period Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage (as a percent) | 33.33% | ||
Stock Appreciation Rights SARS | Vesting Period Three | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage (as a percent) | 33.33% | ||
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Award performance period (in years) | 3 years | ||
Performance Shares, Market Condition | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (shares) | 14,076 | ||
Weighted Avg. Grant Date Fair Value (USD per share) | $ / shares | $ 221.94 | ||
Award performance period (in years) | 3 years | ||
Performance based criteria plan payout percentage, target (as a percent) | 100% | ||
Performance Shares, Market Condition | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based criteria plan payout percentage (as a percent) | 0% | ||
Performance Shares, Market Condition | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based criteria plan payout percentage (as a percent) | 200% | ||
Performance Shares, Performance Condition | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares granted (shares) | 28,628 | ||
Weighted Avg. Grant Date Fair Value (USD per share) | $ / shares | $ 174.48 | ||
Award performance period (in years) | 3 years | ||
Performance Shares, Performance Condition | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based criteria plan payout percentage (as a percent) | 0% | ||
Performance Shares, Performance Condition | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based criteria plan payout percentage (as a percent) | 200% | ||
Performance Shares, Vesting on Compounded Annual Growth Rate of Net Sales | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage (as a percent) | 50% | ||
Performance Shares, Vesting on Operating Profit Margin | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage (as a percent) | 50% |
Stock-Based Compensation - SARS
Stock-Based Compensation - SARS Fair Value Assumptions (Details) - Stock Appreciation Rights SARS | 1 Months Ended |
Feb. 28, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Dividend Yield | 2.10% |
Expected Volatility | 27.40% |
Risk Free Interest Rate | 1.80% |
Expected Term | 4 years 10 months 24 days |
Weighted Avg. Grant Date Fair Value of 1 SAR (USD per share) | $ 39.25 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares, Market Condition (Details) - Performance Shares, Market Condition | 1 Months Ended |
Feb. 28, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Price (USD per share) | $ 185.87 |
Expected Dividend Yield | 2.30% |
Expected Volatility | 39.70% |
Risk Free Interest Rate | 1.60% |
Expected Term | 2 years 10 months 24 days |
Weighted Avg. Grant Date Fair Value (USD per share) | $ 221.94 |
Stock-Based Compensation - Pe_2
Stock-Based Compensation - Performance Shares, Performance Condition (Details) - Performance Shares, Performance Condition | 1 Months Ended |
Feb. 28, 2022 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted Avg. Grant Date Fair Value (USD per share) | $ 174.48 |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based criteria plan payout percentage (as a percent) | 0% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance based criteria plan payout percentage (as a percent) | 200% |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Jul. 11, 2022 | Jul. 08, 2022 |
PCX Holdings LLC | ||
Subsequent Event [Line Items] | ||
Cash purchase price | $ 128 | |
Ripley Tools | ||
Subsequent Event [Line Items] | ||
Cash purchase price | $ 50 |