Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 25, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
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 $0.01 per share | |
Trading Symbol | HUBB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 53,685,997 | |
Amendment Flag | false | |
Entity Central Index Key | 0000048898 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||
Net sales | $ 1,399.1 | $ 1,285.4 |
Cost of goods sold | 951.4 | 837.1 |
Gross profit | 447.7 | 448.3 |
Selling & administrative expenses | 219.2 | 199.5 |
Operating income | 228.5 | 248.8 |
Interest expense, net | (21.1) | (9.7) |
Loss on disposition of business | (5.3) | 0 |
Other expense, net | (0.7) | (4.1) |
Total other expense | (27.1) | (13.8) |
Income before income taxes | 201.4 | 235 |
Provision for income taxes | 52.3 | 51.6 |
Net income | 149.1 | 183.4 |
Less: Net income attributable to noncontrolling interest | (1.3) | (1.5) |
Net income attributable to Hubbell Incorporated | $ 147.8 | $ 181.9 |
Earnings per share: | ||
Basic earnings per share (USD per share) | $ 2.75 | $ 3.39 |
Diluted earnings per share (USD per share) | $ 2.73 | $ 3.37 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 149.1 | $ 183.4 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustments | (11.9) | 7.9 |
Defined benefit pension and post-retirement plans, net of taxes of $(0.6) and $(1.2) | 2.5 | 1.4 |
Unrealized gain (loss) on investments, net of taxes of $0.1 and $(0.1) | (0.3) | 0.3 |
Unrealized gain (loss) on cash flow hedges, net of taxes of $(0.1) and $0.1 | 0.4 | (0.3) |
Other comprehensive income (loss) | (9.3) | 9.3 |
Comprehensive income | 139.8 | 192.7 |
Less: Comprehensive income attributable to noncontrolling interest | 1.3 | 1.5 |
Comprehensive income attributable to Hubbell Incorporated | $ 138.5 | $ 191.2 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Defined benefit pension and post-retirement plans, tax | $ (0.6) | $ (1.2) |
Unrealized gain (loss) on investments, tax | 0.1 | (0.1) |
Unrealized gain (loss) on cash flow hedges, tax | $ (0.1) | $ 0.1 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Current Assets | ||
Cash and cash equivalents | $ 388.2 | $ 336.1 |
Short-term investments | 12.1 | 12.6 |
Accounts receivable (net of allowances of $11.4 and $11.6) | 865.6 | 785.4 |
Inventories, net | 842.4 | 832.9 |
Other current assets | 124.2 | 129.7 |
Assets held for sale - current | 0 | 70.5 |
Total Current Assets | 2,232.5 | 2,167.2 |
Property, Plant, and Equipment, net | 662.2 | 652.6 |
Other Assets | ||
Investments | 75.3 | 75.8 |
Goodwill | 2,532.7 | 2,533.4 |
Other intangible assets, net | 1,165.1 | 1,196 |
Other long-term assets | 194.3 | 197.1 |
Assets held for sale - non-current | 0 | 91.9 |
TOTAL ASSETS | 6,862.1 | 6,914 |
Current Liabilities | ||
Short-term debt and current portion of long-term debt | 219.7 | 117.4 |
Accounts payable | 598.5 | 563.5 |
Accrued salaries, wages and employee benefits | 74 | 173.6 |
Accrued insurance | 87.6 | 79.1 |
Other accrued liabilities | 368.9 | 365.2 |
Liabilities held for sale - current | 0 | 24.6 |
Total Current Liabilities | 1,348.7 | 1,323.4 |
Long-Term Debt | 1,895.7 | 2,023.2 |
Other Non-Current Liabilities | 674.6 | 660.6 |
Liabilities held for sale - non-current | 0 | 17.5 |
TOTAL LIABILITIES | 3,919 | 4,024.7 |
Commitments and contingencies (Note 15) | ||
Hubbell Incorporated Shareholders’ Equity | 2,930.4 | 2,877 |
Noncontrolling interest | 12.7 | 12.3 |
TOTAL EQUITY | 2,943.1 | 2,889.3 |
TOTAL LIABILITIES AND EQUITY | $ 6,862.1 | $ 6,914 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 11.4 | $ 11.6 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities | ||
Net income | $ 149.1 | $ 183.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 59.9 | 35.6 |
Deferred income taxes | 19.1 | (3.4) |
Stock-based compensation | 12.8 | 11.8 |
Provision for bad debt expense | (0.2) | 0.1 |
Loss on disposition of business | 5.3 | 0 |
Loss on sale of assets | 0.2 | 0.1 |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
Increase in accounts receivable, net | (84.6) | (36.6) |
Increase in inventories, net | (22.7) | (38.8) |
Increase in accounts payable | 38.8 | 20.5 |
Decrease in current liabilities | (92.9) | (54.4) |
Changes in other assets and liabilities, net | 9.2 | (3.2) |
Contribution to qualified defined benefit pension plans | 0 | 0 |
Other, net | (1.8) | (1.4) |
Net cash provided by operating activities | 92.2 | 113.7 |
Cash Flows from Investing Activities | ||
Capital expenditures | (40.3) | (33.4) |
Acquisitions, net of cash acquired | 0 | 0 |
Proceeds from disposal of business, net of cash | 122.9 | 0 |
Purchases of available-for-sale investments | 0 | (6.4) |
Proceeds from available-for-sale investments | 5.4 | 4.7 |
Other, net | 0.6 | 0 |
Net cash provided by (used in) investing activities | 88.6 | (35.1) |
Cash Flows from Financing Activities | ||
Payment of long-term debt | (125) | 0 |
Borrowings of short-term debt, net | 98.4 | 0.1 |
Payment of dividends | (65.5) | (60) |
Acquisition of common shares | (10) | (20) |
Other, net | (23.2) | (11.9) |
Net cash used in financing activities | (125.3) | (91.8) |
Effect of exchange rate changes on cash and cash equivalents | (3.5) | 2.7 |
Increase (decrease) in cash and cash equivalents | 52 | (10.5) |
Cash and cash equivalents, beginning of year | 336.1 | 440.5 |
Cash and cash equivalents within assets held for sale, beginning of year | 0 | 0 |
Restricted cash, included in other assets, beginning of year | 3.2 | 2.8 |
Less: Restricted cash, included in Other Assets | 3.1 | 3 |
Cash and cash equivalents, end of period | $ 388.2 | $ 429.8 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024. The balance sheet at December 31, 2023 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, 2023. Supplier Finance Program Obligations In September 2022, the FASB issued ASU 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50: Disclosure of Supplier Finance Program Obligations)", which the Company adopted in the first quarter of 2023, with the exception of the rollforward information, which was effective for the Company in the first quarter of 2024. Payment Services Arrangements The Company has ongoing agreements with financial institutions to facilitate the processing of vendor payables. Under these agreements, the Company pays the financial institution the stated amount of confirmed invoices from participating suppliers on their original maturity date. The terms of the vendor payables are not affected by vendors participating in these agreements. As a result, the amounts owed are presented as accounts payable (in millions) Three Months Ended March 31, 2024 Confirmed obligations outstanding at the beginning of the period $ 101.3 Invoices confirmed during the period 84.5 Confirmed invoices paid during the period (86.2) Confirmed obligations outstanding at the end of the period $ 99.6 Commercial Card Program In 2021, the Company entered into an agreement with a financial institution that allows participating suppliers to receive payment for outstanding invoices through a commercial purchasing card sponsored by a financial institution. The Company is required to then settle such outstanding invoices through a consolidated payment to the financial institution 15 days after the commercial card billing cycle. The Company receives the benefit of extended payment terms and a rebate from the financial institution. Either party may terminate the agreement with 60 days written notice. The amount outstanding to the financial institution is presented as short-term debt (in millions) Three Months Ended March 31, 2024 Confirmed obligations outstanding at the beginning of the period $ 2.0 Invoices confirmed during the period 5.9 Confirmed invoices paid during the period (6.4) Confirmed obligations outstanding at the end of the period $ 1.5 Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting-Improvements to Reportable Segment Disclosures", which adds a requirement for public entities to disclose its significant segment expense categories and amounts for each reportable segment for all periods presented. This information is required to be disclosed at both interim and annual periods. In addition, this ASU requires a public entity to disclose the title and position of the Chief Operating Decision Maker ("CODM") in the consolidated financial statements. Public entities are also required to disclose how the CODM uses each reported measure of segment profit or loss to assess performance and allocate resources to the segments. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Company is assessing the impact of adopting this standard on its financial statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes: Improvements to Income Tax Disclosures", which enhances the disaggregation of income tax disclosures. The ASU requires public entities on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold equal to or greater than 5%. Public entities are required to provide an explanation of certain rate reconciling items if not otherwise evident, such as the nature, causes and judgement used to categorize the item. The ASU also requires disclosure of income taxes paid (net of refund received) detailed by federal, state/local and foreign, and amounts paid to individual jurisdictions that are equal to or greater than 5% of total income taxes paid. The ASU is effective for public entities for fiscal years beginning after December 15, 2024 and for interim periods for fiscal years beginning after December 15, 2025. The Company is assessing the impact of adopting this standard on its financial statements. |
Business Acquisitions and Dispo
Business Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Acquisitions and Dispositions | Business Acquisitions and Dispositions 2023 Acquisitions In the second quarter of 2023, the Company acquired all of the issued and outstanding membership interests of EI Electronics LLC ("EIG") for a cash purchase price of approximately $60 million, net of cash acquired, subject to customary purchase price adjustments. EIG offers fully integrated energy management and power quality monitoring solutions for the electric utility and commercial and industrial markets. This business is reported in the Utility Solutions segment. In the fourth quarter of 2023, the Company acquired all of the issued and outstanding shares of Indústria Eletromecânica Balestro Ltda. ("Balestro") for a cash purchase price of approximately $88 million, net of cash acquired, subject to customary purchase price adjustments. Balestro is a company headquartered in Mogi Mirim, São Paulo, Brazil and designs, manufactures, and delivers top quality products for the electrical utility industry in Brazil and other countries in Latin America, as well as other parts of the world. This business is reported in the Utility Solutions segment. In the fourth quarter of 2023 the Company acquired Northern Star Holdings, Inc. ("Systems Control") for approximately $1.1 billion, net of cash acquired, subject to customary purchase price adjustments. Systems Control is a manufacturer of substation control and relay panels, as well as turnkey substation control building solutions. This business is reported in the Utility Solutions segment. Preliminary Allocation of Consideration Transferred to Net Assets Acquired The following table presents the updated preliminary determination of the fair values of identifiable assets acquired and liabilities assumed from the Company's 2023 acquisitions. The final determination of the fair value of certain assets and liabilities will be completed within the applicable one year measurement period as required by FASB ASC Topic 805, “Business Combinations.” As the Company finalizes the fair values of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company's results of operations and financial position. The finalization of the purchase accounting assessment may result in a change in the valuation of assets acquired and liabilities assumed and may have a material impact on the Company's results of operations and financial position. The following table summarizes the updated preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition for all of the Company's 2023 acquisitions (in millions): Accounts receivable $ 71.5 Inventories 85.7 Other current assets 49.8 Property, plant and equipment 31.9 Other non-current assets 2.8 Intangible assets 602.7 Accounts payable (18.5) Other accrued liabilities (87.0) Deferred tax liabilities, net (134.8) Other non-current liabilities (11.9) Goodwill 619.5 Total Estimate of Consideration Transferred, Net of Cash Acquired $ 1,211.7 Dispositions In December 2023, the Company entered into a definitive agreement to sell its residential lighting business for a cash purchase price of $131 million, subject to customary adjustments. The Company concluded the business met the criteria for classification as held for sale in the fourth quarter of 2023. The residential lighting business was reported within the Electrical Solutions Segment. The transaction closed in the first quarter of 2024 and the Company recorded a pre-tax loss on the sale of $5.3 million, which is recorded within Total other expense in the Company's Condensed Consolidated Statement of Income. 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. Income from the TSA was $2.0 million for the three months ended March 31, 2024, and was recorded in Other expense, net in the Condensed Consolidated Statement of Income. The following table presents balance sheet information of the residential lighting business' assets and liabilities held for sale as of December 31, 2023: At December 31, (in millions) 2023 Cash and cash equivalents $ — Accounts receivable, net 29.8 Inventories, net 37.8 Other current assets 2.9 Assets held for sale - current $ 70.5 Property, Plant, and Equipment, net 1.6 Goodwill 63.2 Other Intangible assets, net 6.5 Other long-term assets 20.6 Assets held for sale - non-current $ 91.9 Accounts payable 1.9 Accrued salaries, wages and employee benefits 3.5 Accrued insurance 3.4 Other accrued liabilities 15.8 Liabilities held for sale - current $ 24.6 Other Non-Current Liabilities 17.5 Liabilities held for sale - non-current $ 17.5 |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
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. The Company also has performance obligations, primarily within the Utility Solutions segment, that are recognized over time due to the customized nature of the product and the Company's enforceable right to receive payment for work performed to date in the event of a cancellation. The Company uses an input measure to determine the extent of progress towards completion of the performance obligation, which the Company believes best depicts the transfer of control to the customer. Under this method, revenue recognition is primarily based upon the ratio of costs incurred to date compared with estimated total costs to complete. 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. Certain of our 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, 2024, we internally reorganized certain businesses within our Utility Solutions segment to streamline the organization 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 Utility Solutions segment. In addition, the residential lighting business, included in the Retail and Builder section below was sold in the first quarter of 2024. Three Months Ended March 31, in millions 2024 2023 Net sales Grid Infrastructure $ 612.8 $ 561.7 Grid Automation 281.2 219.9 Total Utility Solutions $ 894.0 $ 781.6 Electrical Products $ 211.5 $ 204.0 Connection and Bonding 175.5 153.9 Industrial Controls 96.9 93.9 Retail and Builder 21.2 52.0 Total Electrical Solutions $ 505.1 $ 503.8 TOTAL $ 1,399.1 $ 1,285.4 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended March 31, in millions 2024 2023 Net sales United States $ 853.2 $ 740.3 International 40.8 41.3 Total Utility Solutions $ 894.0 $ 781.6 United States $ 434.2 $ 439.0 International 70.9 64.8 Total Electrical Solutions $ 505.1 $ 503.8 TOTAL $ 1,399.1 $ 1,285.4 Contract Balances Our contract liabilities consist of advance payments for products as well as deferred revenue on service obligations and extended warranties. Deferred revenue is included in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Contract liabilities were $140.8 million as of March 31, 2024 compared to $118.6 million as of December 31, 2023. The $22.2 million increase in our contract liabilities balance was primarily due to a $51.7 million net increase in current year deferrals primarily due to timing of advance payments on certain orders, partially offset by the recognition of $29.5 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2024. The ending balance of contract assets as of March 31, 2024 and December 31, 2023, was $28.5 million and $41.6 million, respectively. Impairment losses recognized on our receivables and contract assets were immaterial for the three months ended March 31, 2024. Unsatisfied Performance Obligations As of March 31, 2024, the Company had approximately $150 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 | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's reporting segments consist of the Utility Solutions segment and the Electrical Solutions segment. 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, enclosures, cutouts and switches. The Utility Solutions segment also offers solutions that serve the utility infrastructure, including smart meters, communications systems, substation control and relay panels, and protection and control devices. The Hubbell Utility Solutions segment 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 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 gases 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 following table sets forth financial information by reporting segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2024 2023 2024 2023 2024 2023 Three Months Ended March 31, Utility Solutions $ 894.0 $ 781.6 $ 157.5 $ 177.5 17.6 % 22.7 % Electrical Solutions 505.1 503.8 71.0 71.3 14.1 % 14.2 % TOTAL $ 1,399.1 $ 1,285.4 $ 228.5 $ 248.8 16.3 % 19.4 % |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2024 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories, net | Inventories, net Inventories, net consists of the following (in millions): March 31, 2024 December 31, 2023 Raw material $ 390.2 $ 394.1 Work-in-process 208.1 189.2 Finished goods 405.9 412.1 Subtotal 1,004.2 995.4 Excess of FIFO over LIFO cost basis (161.8) (162.5) TOTAL $ 842.4 $ 832.9 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 3 Months Ended |
Mar. 31, 2024 | |
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 three months ended March 31, 2024, by segment, were as follows (in millions): Segment Utility Solutions Electrical Solutions Total BALANCE AT DECEMBER 31, 2023 $ 1,897.5 $ 635.9 $ 2,533.4 Prior year acquisitions (1) 4.8 — 4.8 Foreign currency translation (4.2) (1.3) (5.5) BALANCE AT MARCH 31, 2024 $ 1,898.1 $ 634.6 $ 2,532.7 (1) Refer to Note 2 - Business Acquisitions for additional information. The carrying value of other intangible assets included in Other intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions): March 31, 2024 December 31, 2023 Gross Amount Accumulated Gross Amount Accumulated Definite-lived: Patents, tradenames and trademarks $ 233.3 $ (87.4) $ 233.7 $ (84.8) Customer relationships, developed technology and other 1,510.0 (524.8) 1,513.1 (500.1) TOTAL DEFINITE-LIVED INTANGIBLES $ 1,743.3 $ (612.2) $ 1,746.8 $ (584.9) Indefinite-lived: Tradenames and other 34.0 — 34.1 — TOTAL OTHER INTANGIBLE ASSETS $ 1,777.3 $ (612.2) $ 1,780.9 $ (584.9) Amortization expense associated with definite-lived intangible assets was $28.5 million and $17.8 million during the three months ended March 31, 2024 and 2023, respectively. Future amortization expense associated with these intangible assets is estimated to be $84.8 million for the remainder of 2024, $95.5 million in 2025, $90.3 million in 2026, $85.7 million in 2027, $82.2 million in 2028, and $78.0 million in 2029. The Company amortizes intangible assets with definite lives using either an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets useful lives, or using a straight line method. Approximately 85% of the gross value of definite-lived intangible assets follow an accelerated amortization method. |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consists of the following (in millions): March 31, 2024 December 31, 2023 Customer program incentives $ 27.7 $ 57.4 Accrued income taxes 45.1 21.1 Contract liabilities - deferred revenue 134.0 111.5 Customer refund liability 18.9 18.1 Accrued warranties short-term (1) 16.1 15.6 Current operating lease liabilities 32.7 30.6 Other 94.4 110.9 TOTAL $ 368.9 $ 365.2 (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, 2023 for additional information regarding warranties. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 3 Months Ended |
Mar. 31, 2024 | |
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): March 31, 2024 December 31, 2023 Pensions $ 133.6 $ 135.0 Other post-retirement benefits 14.4 14.4 Deferred tax liabilities 259.0 240.3 Accrued warranties long-term (1) 24.0 23.6 Non-current operating lease liabilities 115.5 118.8 Other 128.1 128.5 TOTAL $ 674.6 $ 660.6 (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, 2023 for additional information regarding warranties. |
Total Equity
Total Equity | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Total Equity | Total Equity A summary of changes in total equity for the three months ended March 31, 2024 and the three months ended March 31, 2023 is provided below (in millions, except per share amounts): Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2023 $ 0.6 $ 6.1 $ 3,182.7 $ (312.4) $ 2,877.0 $ 12.3 Net income — — 147.8 — 147.8 1.3 Other comprehensive (loss) income — — — (9.3) (9.3) — Stock-based compensation — 12.8 — — 12.8 — Acquisition/surrender of common shares (1) — (17.6) (14.6) — (32.2) — Cash dividends declared ($1.22 per share) — — (65.7) — (65.7) — Dividends to noncontrolling interest — — — — — (0.9) Directors deferred compensation — — — — — — BALANCE AT MARCH 31, 2024 $ 0.6 $ 1.3 $ 3,250.2 $ (321.7) $ 2,930.4 $ 12.7 Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2022 $ 0.6 $ — $ 2,705.5 $ (345.2) $ 2,360.9 $ 9.7 Net income — — 181.9 — 181.9 1.5 Other comprehensive (loss) income — — — 9.3 9.3 — Stock-based compensation — 11.7 — — 11.7 — Acquisition/surrender of common shares (1) — (9.9) (21.2) — (31.1) — Cash dividends declared ($1.12 per share) — — (60.0) — (60.0) — Dividends to noncontrolling interest — — — — — (0.8) Directors deferred compensation — — — — — — BALANCE AT MARCH 31, 2023 $ 0.6 $ 1.8 $ 2,806.2 $ (335.9) $ 2,472.7 $ 10.4 (1) For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against common stock par value, Additional paid-in capital, to the extent available, and Retained earnings. The change in Retained earnings of $14.6 million and $21.2 million in the first three months of 2024 and 2023, 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 | 3 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss A summary of the changes in Accumulated other comprehensive loss (net of tax) for the three months ended March 31, 2024 is provided below (in millions): (debit) credit Cash flow Unrealized Pension Cumulative Total BALANCE AT DECEMBER 31, 2023 $ (0.3) $ (0.2) $ (178.4) $ (133.5) $ (312.4) Other comprehensive income (loss) before reclassifications 0.5 (0.3) — (11.9) (11.7) Amounts reclassified from accumulated other comprehensive income (loss) (0.1) — 2.5 — 2.4 Current period other comprehensive income (loss) 0.4 (0.3) 2.5 (11.9) (9.3) BALANCE AT MARCH 31, 2024 $ 0.1 $ (0.5) $ (175.9) $ (145.4) $ (321.7) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three months ended March 31, 2024 and 2023 is provided below (in millions): Three Months Ended March 31, Details about Accumulated Other 2024 2023 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ — $ — Net sales 0.1 0.4 Cost of goods sold — — Other expense, net 0.1 0.4 Total before tax — (0.1) Tax benefit (expense) $ 0.1 $ 0.3 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs (a) $ (0.1) $ (0.1) Actuarial gains (losses) (a) (3.0) (2.5) (3.1) (2.6) Total before tax 0.6 1.2 Tax benefit (expense) $ (2.5) $ (1.4) Gain (loss) net of tax Gains (losses) reclassified into earnings $ (2.4) $ (1.1) Gain (loss) net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12 - Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Service-based and performance-based restricted stock awards granted by the Company are considered participating securities as these awards contain a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three months ended March 31, 2024 and 2023 (in millions, except per share amounts): Three Months Ended March 31, 2024 2023 Numerator: Net income attributable to Hubbell Incorporated $ 147.8 $ 181.9 Less: Earnings allocated to participating securities (0.3) (0.4) Net income available to common shareholders $ 147.5 $ 181.5 Denominator: Average number of common shares outstanding 53.7 53.6 Potential dilutive common shares 0.3 0.3 Average number of diluted shares outstanding 54.0 53.9 Earnings per share: Basic earnings per share $ 2.75 $ 3.39 Diluted earnings per share $ 2.73 $ 3.37 The Company did not have any significant anti-dilutive securities outstanding during the three months ended March 31, 2024 and 2023. |
Pension and Other Benefits
Pension and Other Benefits | 3 Months Ended |
Mar. 31, 2024 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Other Benefits | Pension and Other Benefits The following table sets forth the components of net pension and other benefit costs for the three months ended March 31, 2024 and 2023 (in millions): Pension Benefits Other Benefits 2024 2023 2024 2023 Three Months Ended March 31, Service cost $ 0.1 $ 0.1 $ — $ — Interest cost 8.3 8.7 0.2 0.2 Expected return on plan assets (7.7) (7.0) — — Amortization of prior service cost 0.1 0.1 — — Amortization of actuarial losses (gains) 3.1 2.6 (0.1) (0.1) NET PERIODIC BENEFIT COST $ 3.9 $ 4.5 $ 0.1 $ 0.1 Employer Contributions The Company made no contributions to its qualified domestic defined benefit pension plan and no contributions to its foreign pension plans during the three months ended March 31, 2024 |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2024 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of March 31, 2024 and December 31, 2023, the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product warranties that cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known, or as historical experience indicates. Changes in the accrual for product warranties during the three months ended March 31, 2024 and 2023 are set forth below (in millions): 2024 2023 BALANCE AT JANUARY 1, (a) $ 39.2 $ 46.2 Provision 2.6 3.4 Expenditures/payments/other (1.7) (6.4) BALANCE AT MARCH 31, (a) $ 40.1 $ 43.2 (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 | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, our accounts receivable balance was $865.6 million, net of allowances of $11.4 million. During the three months ended March 31, 2024, our allowances decreased by approximately $0.2 million. Investments At March 31, 2024 and December 31, 2023, the Company had $62.3 million and $65.0 million, respectively, of available-for-sale municipal debt securities. These investments had an amortized cost of $63.0 million and $65.3 million, respectively. No allowance for credit losses related to our available-for-sale debt securities was recorded for the three months ended March 31, 2024 or March 31, 2023. As of March 31, 2024 and December 31, 2023, the unrealized losses attributable to our available-for-sale debt securities were $0.8 million and $0.6 million, respectively. The fair value of available-for-sale debt securities with unrealized losses was $42.9 million at March 31, 2024 and $34.5 million at December 31, 2023. The Company also had trading securities of $25.1 million at March 31, 2024 and $23.4 million at December 31, 2023 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 Condensed Consolidated Statement of Income. Fair value measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions. The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at March 31, 2024 and December 31, 2023 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Unobservable inputs Total March 31, 2024 Money market funds (a) $ 144.2 $ — $ — $ 144.2 Available for sale investments — 62.3 — 62.3 Trading securities 25.1 — — 25.1 Deferred compensation plan liabilities (25.1) — — (25.1) Derivatives: Forward exchange contracts-Assets (b) — 0.2 — 0.2 Forward exchange contracts-(Liabilities) (c) — (0.1) — (0.1) TOTAL $ 144.2 $ 62.4 $ — $ 206.6 Asset (Liability) Quoted Prices in Quoted Prices in Unobservable inputs Total December 31, 2023 Money market funds (a) $ 105.1 $ — $ — $ 105.1 Available for sale investments — 65.0 — 65.0 Trading securities 23.4 — — 23.4 Deferred compensation plan liabilities (23.4) — — (23.4) Derivatives: Forward exchange contracts-(Liabilities) (c) — (0.5) — (0.5) TOTAL $ 105.1 $ 64.5 $ — $ 169.6 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets. The methods and assumptions used to estimate the Level 2 fair values were as follows: Forward exchange contracts – The fair value of forward exchange contracts was based on quoted forward foreign exchange prices at the reporting date. Available-for-sale municipal bonds classified in Level 2 – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. Deferred compensation plans The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. The Company purchased $2.8 million and $2.1 million of trading securities related to these deferred compensation plans during the three months ended March 31, 2024 and 2023, respectively. As a result of participant distributions, the Company sold $2.7 million of these trading securities during the three months ended March 31, 2024 and $2.0 million during the three months ended March 31, 2023. 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 March 31, 2024 and December 31, 2023, the carrying value of long-term debt, net of unamortized discount and debt issuance costs, including the $18.7 million and $15.0 million, respectively, current portion of the Term Loan, was $1,914.4 million and $2,038.2 million, respectively. The estimated fair value of the long-term debt as of March 31, 2024 and December 31, 2023 was $1,820.0 million and $1,951.6 million, respectively, using quoted market prices in active markets for similar liabilities (Level 2). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various legal proceedings arising in the normal course of its business. These proceedings include claims for damages arising out of use of the Company’s products, intellectual property, workers’ compensation and environmental matters. The Company is self-insured up to specified limits for certain types of claims, including product liability and workers’ compensation, and is fully self-insured for certain other types of claims, including environmental and intellectual property matters. The Company recognizes a liability for any contingency that in management’s judgment is probable of occurrence and can be reasonably estimated. We continually reassess the likelihood of adverse judgments and outcomes in these matters, as well as estimated ranges of possible losses based upon an analysis of each matter which includes advice of outside legal counsel and, if applicable, other experts. |
Restructuring Costs and Other
Restructuring Costs and Other | 3 Months Ended |
Mar. 31, 2024 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs and Other | Restructuring Costs and Other In the three months ended March 31, 2024, we incurred costs for restructuring actions initiated in 2024 as well as costs for restructuring actions initiated in 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 months ended March 31, 2024 and 2023 are as follows (in millions): Three Months Ended March 31, 2024 2023 2024 2023 2024 2023 Cost of goods sold Selling & administrative expense Total Utility Solutions $ 1.4 $ 0.7 $ 0.5 $ 0.1 $ 1.9 $ 0.8 Electrical Solutions 3.0 (0.3) 0.3 — 3.3 (0.3) Total Pre-Tax Restructuring Costs $ 4.4 $ 0.4 $ 0.8 $ 0.1 $ 5.2 $ 0.5 Three Months Ended March 31, 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 2024 Restructuring Actions Severance $ — $ 4.3 $ (0.2) $ 4.1 Asset write-downs — — — — Facility closure and other costs — 0.4 (0.4) — Total 2024 Restructuring Actions $ — $ 4.7 $ (0.6) $ 4.1 2023 and Prior Restructuring Actions Severance $ 3.9 $ 0.2 $ (0.6) $ 3.5 Asset write-downs — — — — Facility closure and other costs 0.1 0.3 (0.4) — Total 2023 and Prior Restructuring Actions $ 4.0 $ 0.5 $ (1.0) $ 3.5 Total Restructuring Actions $ 4.0 $ 5.2 $ (1.6) $ 7.6 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 2023 Costs incurred in the first three months of 2024 Remaining costs at 3/31/2024 2024 Restructuring Actions Utility Solutions $ 2.0 $ — $ 1.5 $ 0.5 Electrical Solutions 7.8 — 3.2 4.6 Total 2024 Restructuring Actions $ 9.8 $ — $ 4.7 $ 5.1 2023 and Prior Restructuring Actions Utility Solutions $ 4.2 $ 2.9 $ 0.4 $ 0.9 Electrical Solutions 4.2 2.5 0.1 1.6 Total 2023 and Prior Restructuring Actions $ 8.4 $ 5.4 $ 0.5 $ 2.5 Total Restructuring Actions $ 18.2 $ 5.4 $ 5.2 $ 7.6 |
Debt and Financing Arrangements
Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt and Financing Arrangements | Debt and Financing Arrangements Long-term debt consists of the following (in millions): Maturity March 31, 2024 December 31, 2023 Senior notes at 3.35% 2026 $ 398.7 $ 398.6 Senior notes at 3.15% 2027 298.1 298.0 Senior notes at 3.50% 2028 447.2 447.0 Senior notes at 2.300% 2031 296.9 296.7 Term loan, net of current portion of $18.7 million and $15.0 million, respectively 2026 454.8 582.9 TOTAL LONG-TERM DEBT (a) $ 1,895.7 $ 2,023.2 (a) Long-term debt is presented net of debt issuance costs and unamortized discounts. Term Loan Agreement In connection with the December 2023 acquisition of Systems Control, the Company entered into a Term Loan Agreement with a syndicate of lenders under which the Company borrowed $600 million on an unsecured basis. Borrowings under the Term Loan Agreement bear interest generally at either the adjusted term SOFR rate plus an applicable margin (determined by a ratings based-grid) or the alternative base rate. Currently the loans bear interest based on the adjusted term SOFR rate, which was 6.7% as of March 31, 2024. The principal amount of borrowings under the Term Loan Agreement amortize in equal quarterly installments of 2.5% of the original outstanding principal amounts in 2024, 2.5% in 2025, and 5% in 2026, with the remaining outstanding principal amount under the Term Loan Agreement due and payable in full at maturity in December 2026. The Company may make principal payments in excess of the amortization schedule at its discretion. During the three months ended March 31, 2024 the Company made $125 million of principal payments. The sole financial covenant in the Term Loan Agreement requires that total debt not exceed 65% of total capitalization as of the last day of each fiscal quarter of the Company. The Company was in compliance with this covenant as of March 31, 2024. 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 March 31, 2024. As of March 31, 2024, the 2021 Credit Facility was undrawn. Short-Term Debt and Current Portion of Long-Term Debt The Company had $219.7 million and $117.4 million of short-term debt and current portion of long-term debt outstanding at March 31, 2024 and December 31, 2023, respectively, composed of the following: • $199.0 million of commercial paper borrowings outstanding at March 31, 2024, and $100.0 million of commercial paper borrowings outstanding at December 31, 2023, which was used to fund the Systems Control acquisition. • $18.7 million and $15.0 million of long-term debt classified as current within current liabilities in the Condensed Consolidated Balance Sheets, reflecting maturities within the next 12 months related to borrowing under the Term Loan Agreement at March 31, 2024 and December 31, 2023, respectively. • |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of March 31, 2024, 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, 2024, the Company's grant of stock-based awards included restricted stock, SARs and performance shares. Each of the compensation arrangements is discussed below. Restricted Stock The Company issues various types of restricted stock, of which the restricted stock awards 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 unit award holders are not entitled to dividends or voting rights until settlement. 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 Awards 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 2024, the Company granted 37,817 restricted stock awards with a fair value per share of $352.55. Restricted Stock Units Issued to Employees - Service Condition Restricted stock units that vest based upon a service condition are expensed on a straight-line basis over the requisite service period. These awards generally vest in three equal installments on each of the first three anniversaries of the grant date. 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 measurement date reduced by the present value of dividends expected to be paid during the requisite service period. In February 2024, the Company granted 1,773 restricted stock units with a fair value per share of $341.19. 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 2024, the Company granted 62,908 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 February 2024: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR February 2024 1.6% 25.7% 4.0% 4.8 years $88.03 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 2024, the Company granted 8,736 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 2024 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 2024: Grant Date Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value February 2024 $352.55 1.4% 30.6% 4.1% 2.9 years $483.99 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 2024, the Company granted 17,770 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 $341.19 for the awards granted during February 2024. Grant Date Fair Value Performance Period Payout Range February 2024 $341.19 Jan 2024 - Dec 2026 0%-200% |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net Income (Loss) | $ 147.8 | $ 181.9 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the three months ended March 31, 2024 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2024. The balance sheet at December 31, 2023 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, 2023. |
Supplier Finance Program Obligations | Supplier Finance Program Obligations In September 2022, the FASB issued ASU 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50: Disclosure of Supplier Finance Program Obligations)", which the Company adopted in the first quarter of 2023, with the exception of the rollforward information, which was effective for the Company in the first quarter of 2024. Payment Services Arrangements The Company has ongoing agreements with financial institutions to facilitate the processing of vendor payables. Under these agreements, the Company pays the financial institution the stated amount of confirmed invoices from participating suppliers on their original maturity date. The terms of the vendor payables are not affected by vendors participating in these agreements. As a result, the amounts owed are presented as accounts payable (in millions) Three Months Ended March 31, 2024 Confirmed obligations outstanding at the beginning of the period $ 101.3 Invoices confirmed during the period 84.5 Confirmed invoices paid during the period (86.2) Confirmed obligations outstanding at the end of the period $ 99.6 Commercial Card Program In 2021, the Company entered into an agreement with a financial institution that allows participating suppliers to receive payment for outstanding invoices through a commercial purchasing card sponsored by a financial institution. The Company is required to then settle such outstanding invoices through a consolidated payment to the financial institution 15 days after the commercial card billing cycle. The Company receives the benefit of extended payment terms and a rebate from the financial institution. Either party may terminate the agreement with 60 days written notice. The amount outstanding to the financial institution is presented as short-term debt (in millions) Three Months Ended March 31, 2024 Confirmed obligations outstanding at the beginning of the period $ 2.0 Invoices confirmed during the period 5.9 Confirmed invoices paid during the period (6.4) Confirmed obligations outstanding at the end of the period $ 1.5 |
Recently Issued Accounting Pronouncements Not Yet Adopted | Recently Issued Accounting Pronouncements Not Yet Adopted In November 2023, the FASB issued ASU No. 2023-07, "Segment Reporting-Improvements to Reportable Segment Disclosures", which adds a requirement for public entities to disclose its significant segment expense categories and amounts for each reportable segment for all periods presented. This information is required to be disclosed at both interim and annual periods. In addition, this ASU requires a public entity to disclose the title and position of the Chief Operating Decision Maker ("CODM") in the consolidated financial statements. Public entities are also required to disclose how the CODM uses each reported measure of segment profit or loss to assess performance and allocate resources to the segments. The ASU is effective for public entities for fiscal years beginning after December 15, 2023, and interim periods in fiscal years beginning after December 15, 2024. The Company is assessing the impact of adopting this standard on its financial statements. In December 2023, the FASB issued ASU No. 2023-09, "Income Taxes: Improvements to Income Tax Disclosures", which enhances the disaggregation of income tax disclosures. The ASU requires public entities on an annual basis to disclose specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold equal to or greater than 5%. Public entities are required to provide an explanation of certain rate reconciling items if not otherwise evident, such as the nature, causes and judgement used to categorize the item. The ASU also requires disclosure of income taxes paid (net of refund received) detailed by federal, state/local and foreign, and amounts paid to individual jurisdictions that are equal to or greater than 5% of total income taxes paid. The ASU is effective for public entities for fiscal years beginning after December 15, 2024 and for interim periods for fiscal years beginning after December 15, 2025. The Company is assessing the impact of adopting this standard on its financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Supplier Finance Program Obligations | The rollforward of the Company's outstanding obligations confirmed as valid under the Payment Services Arrangements supplier finance program for the three months ended March 31, 2024, is as follows: (in millions) Three Months Ended March 31, 2024 Confirmed obligations outstanding at the beginning of the period $ 101.3 Invoices confirmed during the period 84.5 Confirmed invoices paid during the period (86.2) Confirmed obligations outstanding at the end of the period $ 99.6 (in millions) Three Months Ended March 31, 2024 Confirmed obligations outstanding at the beginning of the period $ 2.0 Invoices confirmed during the period 5.9 Confirmed invoices paid during the period (6.4) Confirmed obligations outstanding at the end of the period $ 1.5 |
Business Acquisitions and Dis_2
Business Acquisitions and Dispositions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the updated preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition for all of the Company's 2023 acquisitions (in millions): Accounts receivable $ 71.5 Inventories 85.7 Other current assets 49.8 Property, plant and equipment 31.9 Other non-current assets 2.8 Intangible assets 602.7 Accounts payable (18.5) Other accrued liabilities (87.0) Deferred tax liabilities, net (134.8) Other non-current liabilities (11.9) Goodwill 619.5 Total Estimate of Consideration Transferred, Net of Cash Acquired $ 1,211.7 |
Schedule of Balance Sheet Information of the Residential Lighting Business Assets and Liabilities Held for Sale | The following table presents balance sheet information of the residential lighting business' assets and liabilities held for sale as of December 31, 2023: At December 31, (in millions) 2023 Cash and cash equivalents $ — Accounts receivable, net 29.8 Inventories, net 37.8 Other current assets 2.9 Assets held for sale - current $ 70.5 Property, Plant, and Equipment, net 1.6 Goodwill 63.2 Other Intangible assets, net 6.5 Other long-term assets 20.6 Assets held for sale - non-current $ 91.9 Accounts payable 1.9 Accrued salaries, wages and employee benefits 3.5 Accrued insurance 3.4 Other accrued liabilities 15.8 Liabilities held for sale - current $ 24.6 Other Non-Current Liabilities 17.5 Liabilities held for sale - non-current $ 17.5 |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024, we internally reorganized certain businesses within our Utility Solutions segment to streamline the organization 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 Utility Solutions segment. In addition, the residential lighting business, included in the Retail and Builder section below was sold in the first quarter of 2024. Three Months Ended March 31, in millions 2024 2023 Net sales Grid Infrastructure $ 612.8 $ 561.7 Grid Automation 281.2 219.9 Total Utility Solutions $ 894.0 $ 781.6 Electrical Products $ 211.5 $ 204.0 Connection and Bonding 175.5 153.9 Industrial Controls 96.9 93.9 Retail and Builder 21.2 52.0 Total Electrical Solutions $ 505.1 $ 503.8 TOTAL $ 1,399.1 $ 1,285.4 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended March 31, in millions 2024 2023 Net sales United States $ 853.2 $ 740.3 International 40.8 41.3 Total Utility Solutions $ 894.0 $ 781.6 United States $ 434.2 $ 439.0 International 70.9 64.8 Total Electrical Solutions $ 505.1 $ 503.8 TOTAL $ 1,399.1 $ 1,285.4 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | The following table sets forth financial information by reporting segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2024 2023 2024 2023 2024 2023 Three Months Ended March 31, Utility Solutions $ 894.0 $ 781.6 $ 157.5 $ 177.5 17.6 % 22.7 % Electrical Solutions 505.1 503.8 71.0 71.3 14.1 % 14.2 % TOTAL $ 1,399.1 $ 1,285.4 $ 228.5 $ 248.8 16.3 % 19.4 % |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Schedule of Inventories, Net | Inventories, net consists of the following (in millions): March 31, 2024 December 31, 2023 Raw material $ 390.2 $ 394.1 Work-in-process 208.1 189.2 Finished goods 405.9 412.1 Subtotal 1,004.2 995.4 Excess of FIFO over LIFO cost basis (161.8) (162.5) TOTAL $ 842.4 $ 832.9 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Goodwill | Changes in the carrying values of goodwill for the three months ended March 31, 2024, by segment, were as follows (in millions): Segment Utility Solutions Electrical Solutions Total BALANCE AT DECEMBER 31, 2023 $ 1,897.5 $ 635.9 $ 2,533.4 Prior year acquisitions (1) 4.8 — 4.8 Foreign currency translation (4.2) (1.3) (5.5) BALANCE AT MARCH 31, 2024 $ 1,898.1 $ 634.6 $ 2,532.7 (1) Refer to Note 2 - Business Acquisitions for additional information. |
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): March 31, 2024 December 31, 2023 Gross Amount Accumulated Gross Amount Accumulated Definite-lived: Patents, tradenames and trademarks $ 233.3 $ (87.4) $ 233.7 $ (84.8) Customer relationships, developed technology and other 1,510.0 (524.8) 1,513.1 (500.1) TOTAL DEFINITE-LIVED INTANGIBLES $ 1,743.3 $ (612.2) $ 1,746.8 $ (584.9) Indefinite-lived: Tradenames and other 34.0 — 34.1 — TOTAL OTHER INTANGIBLE ASSETS $ 1,777.3 $ (612.2) $ 1,780.9 $ (584.9) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accrued Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consists of the following (in millions): March 31, 2024 December 31, 2023 Customer program incentives $ 27.7 $ 57.4 Accrued income taxes 45.1 21.1 Contract liabilities - deferred revenue 134.0 111.5 Customer refund liability 18.9 18.1 Accrued warranties short-term (1) 16.1 15.6 Current operating lease liabilities 32.7 30.6 Other 94.4 110.9 TOTAL $ 368.9 $ 365.2 (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, 2023 for additional information regarding warranties. |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Liabilities, Other than Long-Term Debt, Noncurrent [Abstract] | |
Schedule of Other Non-Current Liabilities | Other non-current liabilities consists of the following (in millions): March 31, 2024 December 31, 2023 Pensions $ 133.6 $ 135.0 Other post-retirement benefits 14.4 14.4 Deferred tax liabilities 259.0 240.3 Accrued warranties long-term (1) 24.0 23.6 Non-current operating lease liabilities 115.5 118.8 Other 128.1 128.5 TOTAL $ 674.6 $ 660.6 (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, 2023 for additional information regarding warranties. |
Total Equity (Tables)
Total Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders Equity | A summary of changes in total equity for the three months ended March 31, 2024 and the three months ended March 31, 2023 is provided below (in millions, except per share amounts): Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2023 $ 0.6 $ 6.1 $ 3,182.7 $ (312.4) $ 2,877.0 $ 12.3 Net income — — 147.8 — 147.8 1.3 Other comprehensive (loss) income — — — (9.3) (9.3) — Stock-based compensation — 12.8 — — 12.8 — Acquisition/surrender of common shares (1) — (17.6) (14.6) — (32.2) — Cash dividends declared ($1.22 per share) — — (65.7) — (65.7) — Dividends to noncontrolling interest — — — — — (0.9) Directors deferred compensation — — — — — — BALANCE AT MARCH 31, 2024 $ 0.6 $ 1.3 $ 3,250.2 $ (321.7) $ 2,930.4 $ 12.7 Common Stock Additional Retained Accumulated Total Hubbell Non- BALANCE AT DECEMBER 31, 2022 $ 0.6 $ — $ 2,705.5 $ (345.2) $ 2,360.9 $ 9.7 Net income — — 181.9 — 181.9 1.5 Other comprehensive (loss) income — — — 9.3 9.3 — Stock-based compensation — 11.7 — — 11.7 — Acquisition/surrender of common shares (1) — (9.9) (21.2) — (31.1) — Cash dividends declared ($1.12 per share) — — (60.0) — (60.0) — Dividends to noncontrolling interest — — — — — (0.8) Directors deferred compensation — — — — — — BALANCE AT MARCH 31, 2023 $ 0.6 $ 1.8 $ 2,806.2 $ (335.9) $ 2,472.7 $ 10.4 (1) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income Loss | A summary of the changes in Accumulated other comprehensive loss (net of tax) for the three months ended March 31, 2024 is provided below (in millions): (debit) credit Cash flow Unrealized Pension Cumulative Total BALANCE AT DECEMBER 31, 2023 $ (0.3) $ (0.2) $ (178.4) $ (133.5) $ (312.4) Other comprehensive income (loss) before reclassifications 0.5 (0.3) — (11.9) (11.7) Amounts reclassified from accumulated other comprehensive income (loss) (0.1) — 2.5 — 2.4 Current period other comprehensive income (loss) 0.4 (0.3) 2.5 (11.9) (9.3) BALANCE AT MARCH 31, 2024 $ 0.1 $ (0.5) $ (175.9) $ (145.4) $ (321.7) |
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 months ended March 31, 2024 and 2023 is provided below (in millions): Three Months Ended March 31, Details about Accumulated Other 2024 2023 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ — $ — Net sales 0.1 0.4 Cost of goods sold — — Other expense, net 0.1 0.4 Total before tax — (0.1) Tax benefit (expense) $ 0.1 $ 0.3 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs (a) $ (0.1) $ (0.1) Actuarial gains (losses) (a) (3.0) (2.5) (3.1) (2.6) Total before tax 0.6 1.2 Tax benefit (expense) $ (2.5) $ (1.4) Gain (loss) net of tax Gains (losses) reclassified into earnings $ (2.4) $ (1.1) Gain (loss) net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 12 - Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 (in millions, except per share amounts): Three Months Ended March 31, 2024 2023 Numerator: Net income attributable to Hubbell Incorporated $ 147.8 $ 181.9 Less: Earnings allocated to participating securities (0.3) (0.4) Net income available to common shareholders $ 147.5 $ 181.5 Denominator: Average number of common shares outstanding 53.7 53.6 Potential dilutive common shares 0.3 0.3 Average number of diluted shares outstanding 54.0 53.9 Earnings per share: Basic earnings per share $ 2.75 $ 3.39 Diluted earnings per share $ 2.73 $ 3.37 |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of Net Pension and Other Benefit Costs | The following table sets forth the components of net pension and other benefit costs for the three months ended March 31, 2024 and 2023 (in millions): Pension Benefits Other Benefits 2024 2023 2024 2023 Three Months Ended March 31, Service cost $ 0.1 $ 0.1 $ — $ — Interest cost 8.3 8.7 0.2 0.2 Expected return on plan assets (7.7) (7.0) — — Amortization of prior service cost 0.1 0.1 — — Amortization of actuarial losses (gains) 3.1 2.6 (0.1) (0.1) NET PERIODIC BENEFIT COST $ 3.9 $ 4.5 $ 0.1 $ 0.1 |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Standard Product Warranty Disclosure [Abstract] | |
Schedule of Product Warranty Liability | Changes in the accrual for product warranties during the three months ended March 31, 2024 and 2023 are set forth below (in millions): 2024 2023 BALANCE AT JANUARY 1, (a) $ 39.2 $ 46.2 Provision 2.6 3.4 Expenditures/payments/other (1.7) (6.4) BALANCE AT MARCH 31, (a) $ 40.1 $ 43.2 (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) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Unobservable inputs Total March 31, 2024 Money market funds (a) $ 144.2 $ — $ — $ 144.2 Available for sale investments — 62.3 — 62.3 Trading securities 25.1 — — 25.1 Deferred compensation plan liabilities (25.1) — — (25.1) Derivatives: Forward exchange contracts-Assets (b) — 0.2 — 0.2 Forward exchange contracts-(Liabilities) (c) — (0.1) — (0.1) TOTAL $ 144.2 $ 62.4 $ — $ 206.6 Asset (Liability) Quoted Prices in Quoted Prices in Unobservable inputs Total December 31, 2023 Money market funds (a) $ 105.1 $ — $ — $ 105.1 Available for sale investments — 65.0 — 65.0 Trading securities 23.4 — — 23.4 Deferred compensation plan liabilities (23.4) — — (23.4) Derivatives: Forward exchange contracts-(Liabilities) (c) — (0.5) — (0.5) TOTAL $ 105.1 $ 64.5 $ — $ 169.6 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets. |
Restructuring Costs and Other (
Restructuring Costs and Other (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 and 2023 are as follows (in millions): Three Months Ended March 31, 2024 2023 2024 2023 2024 2023 Cost of goods sold Selling & administrative expense Total Utility Solutions $ 1.4 $ 0.7 $ 0.5 $ 0.1 $ 1.9 $ 0.8 Electrical Solutions 3.0 (0.3) 0.3 — 3.3 (0.3) Total Pre-Tax Restructuring Costs $ 4.4 $ 0.4 $ 0.8 $ 0.1 $ 5.2 $ 0.5 Three Months Ended March 31, |
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 2024 Restructuring Actions Severance $ — $ 4.3 $ (0.2) $ 4.1 Asset write-downs — — — — Facility closure and other costs — 0.4 (0.4) — Total 2024 Restructuring Actions $ — $ 4.7 $ (0.6) $ 4.1 2023 and Prior Restructuring Actions Severance $ 3.9 $ 0.2 $ (0.6) $ 3.5 Asset write-downs — — — — Facility closure and other costs 0.1 0.3 (0.4) — Total 2023 and Prior Restructuring Actions $ 4.0 $ 0.5 $ (1.0) $ 3.5 Total Restructuring Actions $ 4.0 $ 5.2 $ (1.6) $ 7.6 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 2023 Costs incurred in the first three months of 2024 Remaining costs at 3/31/2024 2024 Restructuring Actions Utility Solutions $ 2.0 $ — $ 1.5 $ 0.5 Electrical Solutions 7.8 — 3.2 4.6 Total 2024 Restructuring Actions $ 9.8 $ — $ 4.7 $ 5.1 2023 and Prior Restructuring Actions Utility Solutions $ 4.2 $ 2.9 $ 0.4 $ 0.9 Electrical Solutions 4.2 2.5 0.1 1.6 Total 2023 and Prior Restructuring Actions $ 8.4 $ 5.4 $ 0.5 $ 2.5 Total Restructuring Actions $ 18.2 $ 5.4 $ 5.2 $ 7.6 |
Debt and Financing Arrangemen_2
Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Long-term debt consists of the following (in millions): Maturity March 31, 2024 December 31, 2023 Senior notes at 3.35% 2026 $ 398.7 $ 398.6 Senior notes at 3.15% 2027 298.1 298.0 Senior notes at 3.50% 2028 447.2 447.0 Senior notes at 2.300% 2031 296.9 296.7 Term loan, net of current portion of $18.7 million and $15.0 million, respectively 2026 454.8 582.9 TOTAL LONG-TERM DEBT (a) $ 1,895.7 $ 2,023.2 (a) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 February 2024: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR February 2024 1.6% 25.7% 4.0% 4.8 years $88.03 |
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 2024: Grant Date Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value February 2024 $352.55 1.4% 30.6% 4.1% 2.9 years $483.99 Grant Date Fair Value Performance Period Payout Range February 2024 $341.19 Jan 2024 - Dec 2026 0%-200% |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 31, 2024 | Dec. 31, 2023 | |
Payment Services Arrangement | |||
Supplier Finance Program [Line Items] | |||
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Accounts payable | Accounts payable | |
Supplier finance program, obligation | $ 99.6 | $ 101.3 | |
Commercial Card Program | |||
Supplier Finance Program [Line Items] | |||
Supplier Finance Program, Obligation, Current, Statement of Financial Position [Extensible Enumeration] | Short-term debt and current portion of long-term debt | Short-term debt and current portion of long-term debt | |
Supplier finance program, obligation | $ 1.5 | $ 2 | |
Payment terms | 15 days | ||
Termination notice period | 60 days |
Basis of Presentation - Schedul
Basis of Presentation - Schedule of Supplier Finance Program Obligations (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Payment Services Arrangement | |
Supplier Finance Program, Obligation [Roll Forward] | |
Confirmed obligations outstanding at the beginning of the period | $ 101.3 |
Invoices confirmed during the period | 84.5 |
Confirmed invoices paid during the period | (86.2) |
Confirmed obligations outstanding at the end of the period | 99.6 |
Commercial Card Program | |
Supplier Finance Program, Obligation [Roll Forward] | |
Confirmed obligations outstanding at the beginning of the period | 2 |
Invoices confirmed during the period | 5.9 |
Confirmed invoices paid during the period | (6.4) |
Confirmed obligations outstanding at the end of the period | $ 1.5 |
Business Acquisitions and Dis_3
Business Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | |
Business Acquisition [Line Items] | ||||
Cash purchase price, net of cash acquired | $ 0 | $ 0 | ||
Cash purchase price | 131 | |||
Gain (loss) on sale | (5.3) | $ 0 | ||
Discontinued Operations, Disposed of by Sale | ||||
Business Acquisition [Line Items] | ||||
Income from service | $ 2 | |||
EI Electronics LLC | ||||
Business Acquisition [Line Items] | ||||
Cash purchase price, net of cash acquired | $ 60 | |||
Indústria Eletromecânica Balestro Ltda | ||||
Business Acquisition [Line Items] | ||||
Cash purchase price, net of cash acquired | $ 88 | |||
Northern Star Holdings, Inc | ||||
Business Acquisition [Line Items] | ||||
Cash purchase price, net of cash acquired | $ 1,100 |
Business Acquisitions and Dis_4
Business Acquisitions and Dispositions - Schedule of Fair Values of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Business Acquisition [Line Items] | ||
Goodwill | $ 2,532.7 | $ 2,533.4 |
2023 Acquisitions | ||
Business Acquisition [Line Items] | ||
Accounts receivable | 71.5 | |
Inventories | 85.7 | |
Other current assets | 49.8 | |
Property, plant and equipment | 31.9 | |
Other non-current assets | 2.8 | |
Intangible assets | 602.7 | |
Accounts payable | (18.5) | |
Other accrued liabilities | (87) | |
Deferred tax liabilities, net | (134.8) | |
Other non-current liabilities | (11.9) | |
Goodwill | 619.5 | |
Total Estimate of Consideration Transferred, Net of Cash Acquired | $ 1,211.7 |
Business Acquisitions and Dis_5
Business Acquisitions and Dispositions - Schedule of Balance Sheet Information of the Residential Lighting Business Assets and Liabilities Held for Sale (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Assets held for sale - current | $ 0 | $ 70.5 |
Assets held for sale - non-current | 0 | 91.9 |
Liabilities held for sale - current | 0 | 24.6 |
Liabilities held for sale - non-current | $ 0 | 17.5 |
Discontinued Operations, Held-for-sale | Residential Lighting Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Cash and cash equivalents | 0 | |
Accounts receivable, net | 29.8 | |
Inventories, net | 37.8 | |
Other current assets | 2.9 | |
Assets held for sale - current | 70.5 | |
Property, Plant, and Equipment, net | 1.6 | |
Goodwill | 63.2 | |
Other Intangible assets, net | 6.5 | |
Other long-term assets | 20.6 | |
Assets held for sale - non-current | 91.9 | |
Accounts payable | 1.9 | |
Accrued salaries, wages and employee benefits | 3.5 | |
Accrued insurance | 3.4 | |
Other accrued liabilities | 15.8 | |
Liabilities held for sale - current | 24.6 | |
Other Non-Current Liabilities | 17.5 | |
Liabilities held for sale - non-current | $ 17.5 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||
Percentage of revenue from service contracts and post-shipment obligations (approximate) | 2% | |
Contract liabilities | $ 140.8 | $ 118.6 |
Increase (decrease) in net contract liabilities | 22.2 | |
Increase in current year deferrals, net | 51.7 | |
Revenue recognized | 29.5 | |
Contract assets | $ 28.5 | $ 41.6 |
Revenue - Schedule of Disaggreg
Revenue - Schedule of Disaggregated Revenue by Business Group (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 1,399.1 | $ 1,285.4 |
Utility Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 894 | 781.6 |
Utility Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 853.2 | 740.3 |
Utility Solutions | International | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 40.8 | 41.3 |
Utility Solutions | Grid Infrastructure | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 612.8 | 561.7 |
Utility Solutions | Grid Automation | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 281.2 | 219.9 |
Electrical Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 505.1 | 503.8 |
Electrical Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 434.2 | 439 |
Electrical Solutions | International | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 70.9 | 64.8 |
Electrical Solutions | Electrical Products | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 211.5 | 204 |
Electrical Solutions | Connection and Bonding | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 175.5 | 153.9 |
Electrical Solutions | Industrial Controls | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 96.9 | 93.9 |
Electrical Solutions | Retail and Builder | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 21.2 | $ 52 |
Revenue - Unsatisfied Performan
Revenue - Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 $ in Millions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 150 |
Unsatisfied performance obligation, period of recognition (in years) | 2 years |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Net Sales | $ 1,399.1 | $ 1,285.4 |
Operating Income | $ 228.5 | $ 248.8 |
Operating Income as a % of Net Sales | 16.30% | 19.40% |
Utility Solutions | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 894 | $ 781.6 |
Operating Income | $ 157.5 | $ 177.5 |
Operating Income as a % of Net Sales | 17.60% | 22.70% |
Electrical Solutions | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 505.1 | $ 503.8 |
Operating Income | $ 71 | $ 71.3 |
Operating Income as a % of Net Sales | 14.10% | 14.20% |
Inventories, net - Schedule of
Inventories, net - Schedule of Inventories, Net (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw material | $ 390.2 | $ 394.1 |
Work-in-process | 208.1 | 189.2 |
Finished goods | 405.9 | 412.1 |
Subtotal | 1,004.2 | 995.4 |
Excess of FIFO over LIFO cost basis | (161.8) | (162.5) |
TOTAL | $ 842.4 | $ 832.9 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Schedule of Changes in Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 2,533.4 |
Prior year acquisitions | 4.8 |
Foreign currency translation | (5.5) |
Goodwill, ending balance | 2,532.7 |
Utility Solutions | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 1,897.5 |
Prior year acquisitions | 4.8 |
Foreign currency translation | (4.2) |
Goodwill, ending balance | 1,898.1 |
Electrical Solutions | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 635.9 |
Prior year acquisitions | 0 |
Foreign currency translation | (1.3) |
Goodwill, ending balance | $ 634.6 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net - Schedule of Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,743.3 | $ 1,746.8 |
Accumulated Amortization | (612.2) | (584.9) |
TOTAL OTHER INTANGIBLE ASSETS | 1,777.3 | 1,780.9 |
Tradenames and other | ||
Other Intangible Assets [Line Items] | ||
Accumulated Amortization | 0 | 0 |
Indefinite-lived intangible assets (excluding goodwill) | 34 | 34.1 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 233.3 | 233.7 |
Accumulated Amortization | (87.4) | (84.8) |
Customer relationships, developed technology and other | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 1,510 | 1,513.1 |
Accumulated Amortization | $ (524.8) | $ (500.1) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Amortization expense | $ 28.5 | $ 17.8 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Amortization expense, remainder of 2024 | 84.8 | |
Amortization expense, 2025 | 95.5 | |
Amortization expense, 2026 | 90.3 | |
Amortization expense, 2027 | 85.7 | |
Amortization expense, 2028 | 82.2 | |
Amortization expense, 2029 | $ 78 | |
Percentage of definite-lived intangible assets under accelerated amortization method (approximate) (as a percent) | 85% |
Other Accrued Liabilities - Sch
Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 27.7 | $ 57.4 |
Accrued income taxes | 45.1 | 21.1 |
Contract liabilities - deferred revenue | 134 | 111.5 |
Customer refund liability | 18.9 | 18.1 |
Accrued warranties short-term | 16.1 | 15.6 |
Current operating lease liabilities | 32.7 | 30.6 |
Other | 94.4 | 110.9 |
TOTAL | $ 368.9 | $ 365.2 |
Other Non-Current Liabilities -
Other Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Liabilities, Other than Long-Term Debt, Noncurrent [Abstract] | ||
Pensions | $ 133.6 | $ 135 |
Other post-retirement benefits | 14.4 | 14.4 |
Deferred tax liabilities | 259 | 240.3 |
Accrued warranties long-term | 24 | 23.6 |
Non-current operating lease liabilities | 115.5 | 118.8 |
Other | 128.1 | 128.5 |
TOTAL | $ 674.6 | $ 660.6 |
Total Equity - Schedule of Stoc
Total Equity - Schedule of Stockholders Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of period | $ 2,889.3 | |
Net income | 149.1 | $ 183.4 |
Other comprehensive (loss) income | (9.3) | $ 9.3 |
End of period | $ 2,943.1 | |
Cash dividends declared (USD per share) | $ 1.22 | $ 1.12 |
Common Stock | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of period | $ 0.6 | $ 0.6 |
End of period | 0.6 | 0.6 |
Additional Paid-in Capital | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of period | 6.1 | 0 |
Stock-based compensation | 12.8 | 11.7 |
Acquisition/surrender of common shares | (17.6) | (9.9) |
End of period | 1.3 | 1.8 |
Retained Earnings | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of period | 3,182.7 | 2,705.5 |
Net income | 147.8 | 181.9 |
Acquisition/surrender of common shares | (14.6) | (21.2) |
Cash dividends declared | (65.7) | (60) |
End of period | 3,250.2 | 2,806.2 |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of period | (312.4) | (345.2) |
Other comprehensive (loss) income | (9.3) | 9.3 |
End of period | (321.7) | (335.9) |
Total Hubbell Shareholders' Equity | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of period | 2,877 | 2,360.9 |
Net income | 147.8 | 181.9 |
Other comprehensive (loss) income | (9.3) | 9.3 |
Stock-based compensation | 12.8 | 11.7 |
Acquisition/surrender of common shares | (32.2) | (31.1) |
Cash dividends declared | (65.7) | (60) |
Directors deferred compensation | 0 | 0 |
End of period | 2,930.4 | 2,472.7 |
Non- controlling interest | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning of period | 12.3 | 9.7 |
Net income | 1.3 | 1.5 |
Dividends to noncontrolling interest | (0.9) | (0.8) |
End of period | $ 12.7 | $ 10.4 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | $ 2,889.3 | |
Other comprehensive income (loss) before reclassifications | (11.7) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 2.4 | |
Current period other comprehensive income (loss) | (9.3) | $ 9.3 |
End of period | 2,943.1 | |
Cash flow hedge gain (loss) | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (0.3) | |
Other comprehensive income (loss) before reclassifications | 0.5 | |
Amounts reclassified from accumulated other comprehensive income (loss) | (0.1) | |
Current period other comprehensive income (loss) | 0.4 | |
End of period | 0.1 | |
Unrealized gain (loss) on available-for- sale securities | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (0.2) | |
Other comprehensive income (loss) before reclassifications | (0.3) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |
Current period other comprehensive income (loss) | (0.3) | |
End of period | (0.5) | |
Pension and post retirement benefit plan adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (178.4) | |
Other comprehensive income (loss) before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive income (loss) | 2.5 | |
Current period other comprehensive income (loss) | 2.5 | |
End of period | (175.9) | |
Cumulative translation adjustment | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (133.5) | |
Other comprehensive income (loss) before reclassifications | (11.9) | |
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | |
Current period other comprehensive income (loss) | (11.9) | |
End of period | (145.4) | |
Total | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning of period | (312.4) | (345.2) |
Current period other comprehensive income (loss) | (9.3) | 9.3 |
End of period | $ (321.7) | $ (335.9) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net sales | $ 1,399.1 | $ 1,285.4 |
Cost of goods sold | 951.4 | 837.1 |
Other expense, net | (0.7) | (4.1) |
Tax benefit (expense) | (52.3) | (51.6) |
Gain (loss) net of tax | 149.1 | 183.4 |
Reclassification out of Accumulated Other Comprehensive Loss | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gain (loss) net of tax | (2.4) | (1.1) |
Reclassification out of Accumulated Other Comprehensive Loss | Cash flow hedges gain (loss): | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net sales | 0 | 0 |
Cost of goods sold | 0.1 | 0.4 |
Other expense, net | 0 | 0 |
Total before tax | 0.1 | 0.4 |
Tax benefit (expense) | 0 | (0.1) |
Gain (loss) net of tax | 0.1 | 0.3 |
Reclassification out of Accumulated Other Comprehensive Loss | Prior-service costs | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total before tax | (0.1) | (0.1) |
Reclassification out of Accumulated Other Comprehensive Loss | Actuarial gains (losses) | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total before tax | (3) | (2.5) |
Reclassification out of Accumulated Other Comprehensive Loss | Pension and post retirement benefit plan adjustment | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total before tax | (3.1) | (2.6) |
Tax benefit (expense) | 0.6 | 1.2 |
Gain (loss) net of tax | $ (2.5) | $ (1.4) |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income attributable to Hubbell Incorporated | $ 147.8 | $ 181.9 |
Less: Earnings allocated to participating securities | (0.3) | (0.4) |
Net income available to common shareholders | $ 147.5 | $ 181.5 |
Denominator: | ||
Average number of common shares outstanding (in shares) | 53.7 | 53.6 |
Potential dilutive common shares (in shares) | 0.3 | 0.3 |
Average number of diluted shares outstanding (in shares) | 54 | 53.9 |
Earnings per share: | ||
Basic earnings per share (USD per share) | $ 2.75 | $ 3.39 |
Diluted earnings per share (USD per share) | $ 2.73 | $ 3.37 |
Pension and Other Benefits - Sc
Pension and Other Benefits - Schedule of Net Pension and Other Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.1 | $ 0.1 |
Interest cost | 8.3 | 8.7 |
Expected return on plan assets | (7.7) | (7) |
Amortization of prior service cost | 0.1 | 0.1 |
Amortization of actuarial losses (gains) | 3.1 | 2.6 |
NET PERIODIC BENEFIT COST | 3.9 | 4.5 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0.2 | 0.2 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | 0 | 0 |
Amortization of actuarial losses (gains) | (0.1) | (0.1) |
NET PERIODIC BENEFIT COST | $ 0.1 | $ 0.1 |
Pension and Other Benefits - Na
Pension and Other Benefits - Narrative (Details) - Pension Benefits $ in Millions | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
United States | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 0 |
United Kingdom | |
Defined Benefit Plan Disclosure [Line Items] | |
Contributions by employer | $ 0 |
Guarantees - Schedule of Produc
Guarantees - Schedule of Product Warranty Liability (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Beginning balance | $ 39.2 | $ 46.2 |
Provision | 2.6 | 3.4 |
Expenditures/payments/other | (1.7) | (6.4) |
Ending balance | $ 40.1 | $ 43.2 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |||
Accounts receivable, net | $ 865.6 | $ 785.4 | |
Accounts receivable, allowances | 11.4 | 11.6 | |
Decrease in accounts receivable, allowances | 0.2 | ||
Available for sale debt securities | 62.3 | 65 | |
Available for sale debt securities, amortized cost | 63 | 65.3 | |
Available for sale debt securities, allowance for credit losses | 0 | $ 0 | |
Available for sale debt securities, unrealized losses | 0.8 | 0.6 | |
Available for sale debt securities with unrealized losses, fair value | 42.9 | 34.5 | |
Trading securities | 25.1 | 23.4 | |
Purchase of trading securities related to deferred compensation plans | 2.8 | 2.1 | |
Proceeds from securities sold | 2.7 | $ 2 | |
Long-term debt, current potion | 18.7 | 15 | |
Long-term debt | 1,914.4 | 2,038.2 | |
Long-term debt, fair value | $ 1,820 | $ 1,951.6 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Financial Assets and Liability by Fair Value Hierarchy Level (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | $ 62.3 | $ 65 |
Trading securities | 25.1 | 23.4 |
Deferred compensation plan liabilities | (25.1) | (23.4) |
Derivatives: | ||
Forward exchange contracts-Assets | 0.2 | |
Forward exchange contracts-(Liabilities) | (0.1) | (0.5) |
TOTAL | 206.6 | 169.6 |
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 | 25.1 | 23.4 |
Deferred compensation plan liabilities | (25.1) | (23.4) |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | |
Forward exchange contracts-(Liabilities) | 0 | 0 |
TOTAL | 144.2 | 105.1 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | 62.3 | 65 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0.2 | |
Forward exchange contracts-(Liabilities) | (0.1) | (0.5) |
TOTAL | 62.4 | 64.5 |
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 | |
Forward exchange contracts-(Liabilities) | 0 | 0 |
TOTAL | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 144.2 | 105.1 |
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 144.2 | 105.1 |
Money market funds | Quoted Prices in Active Markets for Similar Assets (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | 0 | 0 |
Money market funds | Unobservable inputs for which little or no market data exists (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 0 | $ 0 |
Restructuring Costs and Other -
Restructuring Costs and Other - Schedule of Restructuring Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 5.2 | $ 0.5 |
Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 4.4 | 0.4 |
Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.8 | 0.1 |
Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.9 | 0.8 |
Utility Solutions | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1.4 | 0.7 |
Utility Solutions | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.5 | 0.1 |
Electrical Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3.3 | (0.3) |
Electrical Solutions | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3 | (0.3) |
Electrical Solutions | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0.3 | $ 0 |
Restructuring Costs and Other_2
Restructuring Costs and Other - Schedule of Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance | $ 4 | |
Pre-tax Restructuring Costs | 5.2 | $ 0.5 |
Utilization and Foreign Exchange | (1.6) | |
Ending Accrued Restructuring Balance | 7.6 | |
2024 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance | 0 | |
Pre-tax Restructuring Costs | 4.7 | |
Utilization and Foreign Exchange | (0.6) | |
Ending Accrued Restructuring Balance | 4.1 | |
2024 Restructuring Actions | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance | 0 | |
Pre-tax Restructuring Costs | 4.3 | |
Utilization and Foreign Exchange | (0.2) | |
Ending Accrued Restructuring Balance | 4.1 | |
2024 Restructuring Actions | Asset write-downs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance | 0 | |
Pre-tax Restructuring Costs | 0 | |
Utilization and Foreign Exchange | 0 | |
Ending Accrued Restructuring Balance | 0 | |
2024 Restructuring Actions | Facility closure and other costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance | 0 | |
Pre-tax Restructuring Costs | 0.4 | |
Utilization and Foreign Exchange | (0.4) | |
Ending Accrued Restructuring Balance | 0 | |
2023 and Prior Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance | 4 | |
Pre-tax Restructuring Costs | 0.5 | |
Utilization and Foreign Exchange | (1) | |
Ending Accrued Restructuring Balance | 3.5 | |
2023 and Prior Restructuring Actions | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance | 3.9 | |
Pre-tax Restructuring Costs | 0.2 | |
Utilization and Foreign Exchange | (0.6) | |
Ending Accrued Restructuring Balance | 3.5 | |
2023 and Prior Restructuring Actions | Asset write-downs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance | 0 | |
Pre-tax Restructuring Costs | 0 | |
Utilization and Foreign Exchange | 0 | |
Ending Accrued Restructuring Balance | 0 | |
2023 and Prior Restructuring Actions | Facility closure and other costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance | 0.1 | |
Pre-tax Restructuring Costs | 0.3 | |
Utilization and Foreign Exchange | (0.4) | |
Ending Accrued Restructuring Balance | $ 0 |
Restructuring Costs and Other_3
Restructuring Costs and Other - Schedule of Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | $ 18.2 | |
Costs incurred | 5.2 | $ 5.4 |
Remaining costs | 7.6 | |
2024 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 9.8 | |
Costs incurred | 4.7 | 0 |
Remaining costs | 5.1 | |
2024 Restructuring Actions | Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 2 | |
Costs incurred | 1.5 | 0 |
Remaining costs | 0.5 | |
2024 Restructuring Actions | Electrical Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 7.8 | |
Costs incurred | 3.2 | 0 |
Remaining costs | 4.6 | |
2023 and Prior Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 8.4 | |
Costs incurred | 0.5 | 5.4 |
Remaining costs | 2.5 | |
2023 and Prior Restructuring Actions | Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 4.2 | |
Costs incurred | 0.4 | 2.9 |
Remaining costs | 0.9 | |
2023 and Prior Restructuring Actions | Electrical Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 4.2 | |
Costs incurred | 0.1 | $ 2.5 |
Remaining costs | $ 1.6 |
Debt and Financing Arrangemen_3
Debt and Financing Arrangements - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Long-term debt, current potion | $ 18.7 | $ 15 |
Long-term debt | $ 1,895.7 | 2,023.2 |
Senior Notes | Senior notes at 3.35% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 3.35% | |
Long-term debt | $ 398.7 | 398.6 |
Senior Notes | Senior notes at 3.15% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 3.15% | |
Long-term debt | $ 298.1 | 298 |
Senior Notes | Senior notes at 3.50% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 3.50% | |
Long-term debt | $ 447.2 | 447 |
Senior Notes | Senior notes at 2.300% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage (as a percent) | 2.30% | |
Long-term debt | $ 296.9 | 296.7 |
Senior Notes | Term Loan Agreement | ||
Debt Instrument [Line Items] | ||
Long-term debt, current potion | 18.7 | 15 |
Long-term debt | $ 454.8 | $ 582.9 |
Debt and Financing Arrangemen_4
Debt and Financing Arrangements - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||
Commercial Paper | $ 199,000,000 | $ 199,000,000 | $ 100,000,000 |
Short-term debt and current portion of long-term debt | 219,700,000 | 219,700,000 | 117,400,000 |
Other short-term debt | 2,000,000 | 2,000,000 | 2,400,000 |
Term Loan Agreement | |||
Debt Instrument [Line Items] | |||
Principal payments | $ 125,000,000 | ||
Line of credit facility covenants maximum debt to capitalization (as a percent) | 65% | ||
Short-term debt and current portion of long-term debt | $ 18,700,000 | $ 18,700,000 | 15,000,000 |
Term Loan Agreement | Senior Notes | |||
Debt Instrument [Line Items] | |||
Face amount | $ 600,000,000 | ||
Term Loan Agreement | Line of Credit | Secured Debt | Secured Overnight Financing Rate (SOFR) | |||
Debt Instrument [Line Items] | |||
Variable rate | 6.70% | ||
Term Loan Agreement | Line of Credit | Interest Rate Period One | Secured Debt | |||
Debt Instrument [Line Items] | |||
Quarterly installments of debt instrument (as a percent) | 0.025 | ||
Term Loan Agreement | Line of Credit | Interest Rate Period Two | Secured Debt | |||
Debt Instrument [Line Items] | |||
Quarterly installments of debt instrument (as a percent) | 0.025 | ||
Term Loan Agreement | Line of Credit | Interest Rate Period Three | Secured Debt | |||
Debt Instrument [Line Items] | |||
Quarterly installments of debt instrument (as a percent) | 0.05 | ||
2021 Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility covenants maximum debt to capitalization (as a percent) | 65% | ||
2021 Credit Facility | Senior Notes | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Line of credit facility, accordion feature, higher borrowing capacity option | $ 1,250,000,000 | $ 1,250,000,000 | |
2021 Credit Facility | Line of Credit | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt term (in years) | 5 years | ||
Line of credit, maximum borrowing capacity | $ 750,000,000 | $ 750,000,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 1 Months Ended | 3 Months Ended |
Feb. 29, 2024 $ / shares shares | Mar. 31, 2024 installment shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares authorized (shares) | 9,700,000 | |
Restricted Stock Awards Service Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of installments | installment | 3 | |
Shares granted | 37,817 | |
Weighted avg. grant date fair value (USD per share) | $ / shares | $ 352.55 | |
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% | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of installments | installment | 3 | |
Shares granted | 1,773 | |
Weighted avg. grant date fair value (USD per share) | $ / shares | $ 341.19 | |
Stock Appreciation Rights SARS | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of installments | installment | 3 | |
Shares granted | 62,908 | |
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 | 8,736 | |
Weighted avg. grant date fair value (USD per share) | $ / shares | $ 483.99 | |
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 | 17,770 | |
Weighted avg. grant date fair value (USD per share) | $ / shares | $ 341.19 | |
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 - Sche
Stock-Based Compensation - Schedule of the Weighted-Average Assumption Used in Estimating Fair Value of Stock Appreciation Rights (Details) - Stock Appreciation Rights SARS | 1 Months Ended |
Feb. 29, 2024 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Dividend Yield | 1.60% |
Expected Volatility | 25.70% |
Risk Free Interest Rate | 4% |
Expected Term | 4 years 9 months 18 days |
Weighted Avg. Grant Date Fair Value of 1 SAR (USD per share) | $ 88.03 |
Stock-Based Compensation - Sc_2
Stock-Based Compensation - Schedule of Performance Shares, Market Condition (Details) - Performance Shares, Market Condition | 1 Months Ended |
Feb. 29, 2024 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share Price (USD per share) | $ 352.55 |
Expected Dividend Yield | 1.40% |
Expected Volatility | 30.60% |
Risk Free Interest Rate | 4.10% |
Expected Term | 2 years 10 months 24 days |
Weighted avg. grant date fair value (USD per share) | $ 483.99 |
Stock-Based Compensation - Sc_3
Stock-Based Compensation - Schedule of Performance Shares, Performance Condition (Details) - Performance Shares, Performance Condition | 1 Months Ended |
Feb. 29, 2024 $ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted avg. grant date fair value (USD per share) | $ 341.19 |
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% |