Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Feb. 16, 2016 | Jun. 30, 2015 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | HUBBELL INCORPORATED | ||
Entity Central Index Key | 48,898 | ||
Document Period End Date | Dec. 31, 2015 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock Shares Outstanding (shares) | 56,736,237 | ||
Entity Well Known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 6,175,836,055 |
Consolidated Statement of Incom
Consolidated Statement of Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Statement [Abstract] | |||
Net sales | $ 3,390.4 | $ 3,359.4 | $ 3,183.9 |
Cost of goods sold | 2,298.6 | 2,250.4 | 2,113.4 |
Gross profit | 1,091.8 | 1,109 | 1,070.5 |
Selling & administrative expenses | 617.2 | 591.6 | 562.9 |
Operating income | 474.6 | 517.4 | 507.6 |
Interest expense | (31) | (31.2) | (30.8) |
Investment income | 0.5 | 1.1 | 1.3 |
Other expense, net | (25.5) | (1.8) | (4.3) |
Total other expense | (56) | (31.9) | (33.8) |
Income before income taxes | 418.6 | 485.5 | 473.8 |
Provision for income taxes | 136.5 | 158.3 | 144 |
Net income | 282.1 | 327.2 | 329.8 |
Less: Net income attributable to noncontrolling interest | 4.8 | 1.9 | 3.3 |
NET INCOME ATTRIBUTABLE TO HUBBELL | $ 277.3 | $ 325.3 | $ 326.5 |
Earnings per share | |||
Basic (USD per share) | $ 4.79 | $ 5.51 | $ 5.51 |
Diluted (USD per share) | $ 4.77 | $ 5.48 | $ 5.47 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 282.1 | $ 327.2 | $ 329.8 |
Other comprehensive (loss) income: | |||
Foreign currency translation adjustments | (45.5) | (35.7) | (15) |
Pension and post retirement benefit plans’ service costs and net actuarial (losses) gains, net of taxes of $10.7, $33.9 and ($38.7) | (15.5) | (57.7) | 63.1 |
Unrealized loss on investments, net of taxes of $0.2, $0.0 and $0.2 | (0.3) | (0.1) | (0.3) |
Unrealized gains (losses) on cash flow hedges, net of taxes of ($0.3), ($0.1) and ($0.1) | 1.4 | 0.2 | 0.3 |
Other comprehensive (loss) income | (59.9) | (93.3) | 48.1 |
Comprehensive income | 222.2 | 233.9 | 377.9 |
Less: Comprehensive income attributable to noncontrolling interest | 4.8 | 1.9 | 3.3 |
COMPREHENSIVE INCOME ATTRIBUTABLE TO HUBBELL | $ 217.4 | $ 232 | $ 374.6 |
Consolidated Statement of Comp4
Consolidated Statement of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | |||
Adjustment to pension and other benefit plans tax impact | $ 10.7 | $ 33.9 | $ (38.7) |
Unrealized gain or loss on investment tax impact | 0.2 | 0 | 0.2 |
Unrealized gain or loss on cash flow hedge tax impact | $ (0.3) | $ (0.1) | $ (0.1) |
Consolidated Balance Sheet
Consolidated Balance Sheet - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Current Assets | ||
Cash and cash equivalents | $ 343.5 | $ 653.9 |
Short-term investments | 12.2 | 7.8 |
Accounts receivable, net | 466.6 | 469.8 |
Inventories, net | 540 | 441.8 |
Deferred taxes and other | 25.5 | 56.1 |
Total Current Assets | 1,387.8 | 1,629.4 |
Property, Plant, and Equipment, net | 419.7 | 401.2 |
Other Assets | ||
Investments | 49.5 | 44.1 |
Goodwill | 928.5 | 874.7 |
Intangible assets, net | 372.2 | 322.8 |
Other long-term assets | 51 | 47.9 |
TOTAL ASSETS | 3,208.7 | 3,320.1 |
Current Liabilities | ||
Short-term debt | 48.2 | 1.4 |
Accounts payable | 289.5 | 244 |
Accrued salaries, wages and employee benefits | 75.3 | 76 |
Accrued insurance | 50.4 | 47.8 |
Other accrued liabilities | 139.7 | 130 |
Total Current Liabilities | 603.1 | 499.2 |
Long-term Debt | 595.9 | 594.9 |
Other Non-Current Liabilities | 260.7 | 290.3 |
TOTAL LIABILITIES | $ 1,459.7 | $ 1,384.4 |
Commitments and Contingencies (see Note 15) | ||
Class of Stock [Line Items] | ||
Common Stock, par value $.01 | $ 0.6 | $ 0 |
Additional paid-in capital | 78.1 | 146.7 |
Retained earnings | 1,886.1 | 1,944.1 |
Accumulated other comprehensive loss | (224.2) | (164.3) |
Total Hubbell Shareholders’ Equity | 1,740.6 | 1,927.1 |
Noncontrolling interest | 8.4 | 8.6 |
TOTAL EQUITY | 1,749 | 1,935.7 |
TOTAL LIABILITIES AND EQUITY | 3,208.7 | 3,320.1 |
Class A Common Stock | ||
Class of Stock [Line Items] | ||
Common Stock, par value $.01 | 0 | 0.1 |
Class B Common Stock | ||
Class of Stock [Line Items] | ||
Common Stock, par value $.01 | $ 0 | $ 0.5 |
Consolidated Balance Sheet (Par
Consolidated Balance Sheet (Parenthetical) - $ / shares | Dec. 31, 2015 | Dec. 31, 2014 |
Common stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 200,000,000 | 0 |
Common stock, shares, outstanding (shares) | 57,836,533 | 0 |
Class A Common Stock | ||
Common stock, shares authorized (shares) | 0 | 50,000,000 |
Common stock, shares, outstanding (shares) | 0 | 7,167,506 |
Class B Common Stock | ||
Common stock, shares authorized (shares) | 0 | 150,000,000 |
Common stock, shares, outstanding (shares) | 0 | 51,328,974 |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | ||
Cash Flows from Operating Activities | ||||
Net income | $ 282.1 | $ 327.2 | $ 329.8 | |
Adjustments to reconcile net income to net cash provided by operating activities net of acquisitions: | ||||
Depreciation and amortization | 85.2 | 79.2 | 70.6 | |
Deferred income taxes | (4.5) | 30.3 | 13.3 | |
Stock-based compensation | 17 | 16.4 | 14.3 | |
Tax benefit on stock-based awards | (2.3) | (9.2) | (8.4) | |
(Gain) loss on sale of assets | 0.5 | (1.3) | 0.2 | |
Changes in assets and liabilities, net of acquisitions: | ||||
(Increase) decrease in accounts receivable | 1.9 | (17.8) | (30.9) | |
Increase in inventories | (80.8) | (46.9) | (25.9) | |
Increase in current liabilities | 46.6 | 20 | 1.7 | |
Changes in other assets and liabilities, net | 6.1 | 15.4 | 15.8 | |
Contributions to qualified defined benefit pension plans | (22.6) | (23.5) | (3.2) | |
Other, net | 1.9 | 1.7 | 4.5 | |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 331.1 | 391.5 | 381.8 | |
Cash Flows from Investing Activities | ||||
Capital expenditures | (77.1) | (60.3) | (58.8) | |
Acquisitions, net of cash acquired | (163.4) | (183.8) | (96.5) | |
Purchases of available-for-sale investments | (24.5) | (17.6) | (11.1) | |
Proceeds from sales of available-for-sale investments | 13.8 | 12.1 | 10.5 | |
Proceeds from disposition of assets | 0.7 | 6 | 3.4 | |
Other, net | 1.3 | 1 | 1.4 | |
NET CASH USED IN INVESTING ACTIVITIES | (249.2) | (242.6) | (151.1) | |
Cash Flows from Financing Activities | ||||
Issuance of short-term debt | 48.8 | 2 | 0.4 | |
Payment of short-term debt | (2) | (0.8) | (0.1) | |
Payment of dividends | (133.7) | (121.2) | (109.5) | |
Payment of dividends to noncontrolling interest | (5) | (1.7) | (1.5) | |
Proceeds from exercise of stock options | 0 | 2.4 | 2.4 | |
Tax benefit on stock-based awards | 2.3 | 9.2 | 8.4 | |
Acquisition of common shares | (79.1) | [1] | (105.5) | (31) |
Payments for share reclassification | (200.7) | 0 | 0 | |
Other | (1.7) | 0 | 0 | |
NET CASH USED IN FINANCING ACTIVITIES | (371.1) | (215.6) | (130.9) | |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (21.2) | (20.1) | (4.1) | |
Increase in cash and cash equivalents | (310.4) | (86.8) | 95.7 | |
Cash and cash equivalents, beginning of year | 653.9 | 740.7 | 645 | |
Cash and cash equivalents, end of year | 343.5 | $ 653.9 | $ 740.7 | |
Accrued share repurchase amount | $ 9 | |||
[1] | In 2015, the Company had $9.0 million of share repurchases accrued in other accrued liabilities. |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - USD ($) $ in Millions | Total | Common Stock | Common StockClass A Common Stock | Common StockClass B Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Hubbell Shareholders' Equity | Non- controlling interest |
Beginning of period at Dec. 31, 2012 | $ 0.1 | $ 0.5 | $ 256.4 | $ 1,523.3 | $ (119.1) | $ 1,661.2 | $ 6.7 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | $ 329.8 | 326.5 | 326.5 | 3.3 | |||||
Other comprehensive (loss) income | 48.1 | 48.1 | 48.1 | ||||||
Stock-based compensation | 13.5 | 13.5 | |||||||
Exercise of stock options | 2.4 | 2.4 | |||||||
Income tax windfall from stock-based awards, net | 8.4 | 8.4 | |||||||
Acquisition/surrender of common shares | (44.1) | (44.1) | |||||||
Cash dividends declared | (109.6) | (109.6) | |||||||
Dividends to noncontrolling interest | (1.6) | ||||||||
End of period at Dec. 31, 2013 | 0.1 | 0.5 | 236.6 | 1,740.2 | (71) | 1,906.4 | 8.4 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 327.2 | 325.3 | 325.3 | 1.9 | |||||
Other comprehensive (loss) income | (93.3) | (93.3) | (93.3) | ||||||
Stock-based compensation | 15.8 | 15.8 | |||||||
Exercise of stock options | 2.4 | 2.4 | |||||||
Income tax windfall from stock-based awards, net | 9.2 | 9.2 | |||||||
Acquisition/surrender of common shares | (117.3) | (117.3) | |||||||
Cash dividends declared | (121.4) | (121.4) | |||||||
Dividends to noncontrolling interest | (1.7) | ||||||||
End of period at Dec. 31, 2014 | 1,935.7 | 0.1 | 0.5 | 146.7 | 1,944.1 | (164.3) | 1,927.1 | 8.6 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 282.1 | 277.3 | 277.3 | 4.8 | |||||
Other comprehensive (loss) income | (59.9) | (59.9) | (59.9) | ||||||
Stock-based compensation | 16.3 | 16.3 | |||||||
Exercise of stock options | 0 | 0 | |||||||
Income tax windfall from stock-based awards, net | 0.9 | 0.9 | |||||||
Acquisition/surrender of common shares | (92.6) | (92.6) | |||||||
Cash dividends declared | (133.8) | (133.8) | |||||||
Dividends to noncontrolling interest | (5) | ||||||||
Director's deferred compensation | 6.8 | 6.8 | |||||||
Share reclassification | $ 0.6 | (0.1) | (0.5) | (201.5) | |||||
End of period at Dec. 31, 2015 | $ 1,749 | $ 0.6 | $ 0 | $ 0 | $ 78.1 | $ 1,886.1 | $ (224.2) | $ 1,740.6 | $ 8.4 |
Consolidated Statement of Chan9
Consolidated Statement of Changes in Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | |||
Common stock, dividends declared (USD per share) | $ 2.31 | $ 2.06 | $ 1.85 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Principles of Consolidation The Consolidated Financial Statements include all wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The Company participates in two joint ventures, one of which is accounted for using the equity method, the other has been consolidated in accordance with the consolidation accounting guidance. An analysis is performed to determine which reporting entity, if any, has a controlling financial interest in a variable interest entity (“VIE”) with a primarily qualitative analysis. The qualitative analysis is based on identifying the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance (the “power criterion”) and the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE (the “losses/benefit criterion”). The party that meets both these criteria is deemed to have a controlling financial interest. The party with the controlling financial interest is considered to be the primary beneficiary and as a result is required to consolidate the VIE. The Company has a 50% interest in a joint venture in Hong Kong, established as Hubbell Asia Limited (“HAL”). The principal objective of HAL is to manage the operations of its wholly-owned manufacturing company in China. Under the accounting guidance, the Company is the primary beneficiary of HAL and as a result consolidates HAL. This determination is based on the fact that HAL’s sole business purpose is to manufacture product exclusively for the Company (the power criterion) and the Company is financially responsible for ensuring HAL maintains a fixed operating margin (the losses/benefit criterion). The consolidation of HAL is not material to the Company’s consolidated financial statements. Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements. Actual results could differ from the estimates that are used. Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. The majority of the Company’s revenue is recognized at the time of shipment. The Company recognizes less than one percent of total annual consolidated net revenue from post shipment obligations and service contracts, primarily within the Electrical segment. Revenue is recognized under these contracts when the service is completed and all conditions of sale have been met. In addition, within the Electrical segment, certain businesses sell large and complex equipment which requires construction and assembly and occasionally has long lead times. It is customary in these businesses to require a portion of the selling price to be paid in advance of construction. These payments are treated as deferred revenue and are classified in Other accrued liabilities in the Consolidated Balance Sheet. Once the equipment is shipped to the customer and meets the revenue recognition criteria, the deferred revenue is recognized in the Consolidated Statement of Income. Further, certain of our businesses provide for sales discounts and allowances based on sales volumes, specific programs and customer deductions, as is customary in the electrical products industry. These items primarily relate to sales volume incentives, special pricing allowances, and returned goods. Sales volume incentives represent rebates with specific sales volume targets for specific customers. Certain distributors qualify for price rebates by subsequently reselling the Company’s products into select channels of end users. Following a distributor’s sale of an eligible product, the distributor submits a claim for a price rebate. Customers also have a right to return goods under certain circumstances which are reasonably estimable by affected businesses. Customer returns have historically ranged from 1% - 3% of gross sales. These arrangements require us to estimate at the time of sale the amounts that should not be recorded as revenue as these amounts are not expected to be collected from customers. The Company principally relies on historical experience, specific customer agreements and anticipated future trends to estimate these amounts at the time of shipment. Shipping and Handling Fees and Costs The Company records shipping and handling costs as part of Cost of goods sold in the Consolidated Statement of Income. Any amounts billed to customers for reimbursement of shipping and handling are included in Net sales in the Consolidated Statement of Income. Foreign Currency Translation The assets and liabilities of international subsidiaries are translated to U.S. dollars at exchange rates in effect at the end of the year, and income and expense items are translated at average exchange rates in effect during the year. The effects of exchange rate fluctuations on the translated amounts of foreign currency assets and liabilities are included as translation adjustments in Accumulated other comprehensive loss within Hubbell shareholders’ equity. Gains and losses from foreign currency transactions are included in results of operations. Cash and Cash Equivalents The carrying value of cash equivalents approximates fair value. Cash equivalents consist of highly liquid investments with original maturities to the Company of three months or less. Investments Investments in debt and equity securities are classified by individual security as available-for-sale, held-to-maturity or trading investments. Our available-for-sale investments, consisting of municipal bonds and the redeemable preferred stock of a privately held company , are carried on the balance sheet at fair value with current period adjustments to carrying value recorded in Accumulated other comprehensive loss within Hubbell shareholders’ equity, net of tax. Realized gains and losses are recorded in income in the period of sale. The Company’s trading investments are carried on the balance sheet at fair value and consist primarily of debt and equity mutual funds. Gains and losses associated with these trading investments are reflected in the results of operations. The Company did not have any investments classified as held-to-maturity as of December 31, 2015 and 2014 . Accounts Receivable and Allowances Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. The allowance for doubtful accounts is based on an estimated amount of probable credit losses in existing accounts receivable. The allowance is calculated based upon a combination of historical write-off experience, fixed percentages applied to aging categories and specific identification based upon a review of past due balances and problem accounts. Account balances are charged off against the allowance when it is determined that internal collection efforts should no longer be pursued. The Company also maintains a reserve for credit memos, cash discounts and product returns which are principally calculated based upon historical experience, specific customer agreements, as well as anticipated future trends. Inventories Inventories are stated at the lower of cost or market value. Approximately 75% of total net inventory value is determined utilizing the last-in, first-out (LIFO) method of inventory accounting. The cost of foreign inventories and certain domestic inventories is determined utilizing average cost or first-in, first-out (FIFO) methods of inventory accounting. Reserves for excess and obsolete inventory are provided based on current assessments about future demand compared to on-hand quantities. Property, Plant, and Equipment Property, plant, and equipment values are stated at cost less accumulated depreciation. Maintenance and repair expenditures that do not significantly increase the life of an asset are charged to expense when incurred. Property, plant, and equipment placed in service prior to January 1, 1999 are depreciated over their estimated useful lives, principally using accelerated methods. Assets placed in service subsequent to January 1, 1999 are depreciated over their estimated useful lives, using straight-line methods. Leasehold improvements are amortized over the shorter of their economic lives or the lease term. Gains and losses arising on the disposal of property, plant and equipment are included in Operating income in the Consolidated Statement of Income. Capitalized Computer Software Costs Capitalized computer software costs, net of amortization, were $ 12.4 million and $12.7 million at December 31, 2015 and 2014 , respectively. This balance is reflected in Other long-term assets in the Consolidated Balance Sheet. Capitalized computer software is for internal use and costs primarily consist of purchased materials and services. Software is amortized on a straight-line basis over appropriate periods, generally five years. The Company recorded amortization expense of $ 4.6 million in 2015 and $ 4.3 million in both 2014 and 2013 relating to capitalized computer software. Goodwill and Other Intangible Assets Goodwill represents purchase price in excess of fair values of the underlying net assets of acquired companies. Indefinite-lived intangible assets and goodwill are subject to annual impairment testing using the specific guidance and criteria described in the accounting guidance. The Company performs its goodwill impairment testing as of April 1 st of each year, unless circumstances dictate the need for more frequent assessments. The accounting guidance provides entities an option of performing a qualitative assessment before performing a quantitative analysis. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the goodwill is not impaired, the entity would not need to proceed to the two step goodwill impairment testing process as prescribed in the guidance. The Company elected to bypass the qualitative assessment and proceeded directly to the quantitative analysis. Step 1 compares the fair value of the Company’s reporting units to their carrying values. If the fair value of the reporting unit exceeds its carrying value, no further analysis is necessary. If the carrying value of the reporting unit exceeds its fair value, Step 2 must be completed to quantify the amount of impairment. Goodwill impairment testing requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. The Company uses internal discounted cash flow estimates to determine fair value. These cash flow estimates are derived from historical experience and future long-term business plans and the application of an appropriate discount rate. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. The Company’s estimated aggregate fair value of its reporting units are reasonable when compared to the Company’s market capitalization on the valuation date. As of April 1, 2015 , the impairment testing resulted in implied fair values for each reporting unit that exceeded the reporting unit’s carrying value, including goodwill. The Company did not have any reporting units at risk of failing Step 1 of the impairment test as the excess of the estimated fair value over carrying value (expressed as a percentage of carrying value) ranged from approximately 100% to approximately 300% for the respective reporting units. Additionally, the Company did not have any reporting units with zero or negative carrying amounts. The Company has not recorded any goodwill impairments since the initial adoption of the accounting guidance in 2002. The Company’s intangible assets consist primarily of patents, tradenames and customer relationships. Intangible assets with definite lives are being amortized over periods generally ranging from 5 - 30 years. These definite lived intangibles are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The Company did not record any impairments related to its definite lived intangible assets in 2015 , 2014 or 2013 . The Company also has some tradenames that are considered to be indefinite-lived intangible assets. These indefinite-lived are not amortized and are tested for impairment annually, unless circumstances dictate the need for more frequent assessment. The accounting guidance related to testing indefinite-lived intangible assets for impairment provides entities an option of performing a qualitative assessment before calculating the fair value of the asset. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the asset is not impaired, the entity would not need to calculate the fair value of the asset. The Company performed the qualitative assessment which resulted in no impairment in 2015 , The Company elected to bypass the qualitative assessment and proceeded directly to the determination of fair value of its indefinite lived intangibles which resulted in no impairment in 2014 and 2013 . Other Long-Lived Assets The Company reviews depreciable long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such a change in circumstances occurs, the related estimated future undiscounted cash flows expected to result from the use of the asset group and its eventual disposition is compared to the carrying amount. If the sum of the expected cash flows is less than the carrying amount, an impairment charge is recorded. The impairment charge is measured as the amount by which the carrying amount exceeds the fair value of the asset. The fair value of impaired assets is determined using expected cash flow estimates, quoted market prices when available and appraisals as appropriate. The Company did not record any material impairment charges in 2015 , 2014 or 2013 . Accrued Insurance The Company retains a significant portion of the risks associated with workers’ compensation, medical, automobile and general liability insurance. The Company estimates self-insurance liabilities using a number of factors, including historical claims experience, demographic factors, severity factors and other actuarial assumptions. The accrued liabilities associated with these programs are based on the Company’s estimate of the ultimate costs to settle known claims as well as claims incurred but not reported as of the balance sheet date. The Company periodically reviews the assumptions with a third party actuary to determine the adequacy of these self-insurance reserves. Income Taxes The Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The IRS and other tax authorities routinely review the Company’s tax returns. These audits can involve complex issues which may require an extended period of time to resolve. The Company makes adequate provisions for best estimates of exposures on previously filed tax returns. Deferred income taxes are recognized for the tax consequence of differences between financial statement carrying amounts and the tax basis of assets and liabilities by applying the currently enacted statutory tax rates in accordance with the accounting guidance for income taxes. The effect of a change in statutory tax rates is recognized in the period that includes the enactment date. Additionally, deferred tax assets are required to be reduced by a valuation allowance if it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized. The Company uses factors to assess the likelihood of realization of deferred tax assets such as the forecast of future taxable income and available tax planning strategies that could be implemented to realize the deferred tax assets. In addition, the accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of the tax position taken or expected to be taken in a tax return. For any amount of benefit to be recognized, it must be determined that it is more-likely-than-not that a tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The amount of benefit to be recognized is based on the Company’s assertion of the most likely outcome resulting from an examination, including resolution of any related appeals or litigation processes. Companies are required to reflect only those tax positions that are more-likely-than-not to be sustained. See also Note 12 — Income Taxes. Research and Development Research and development expenditures represent costs to discover and/or apply new knowledge in developing a new product, process, or in bringing about a significant improvement to an existing product or process. Research and development expenses are recorded as a component of Cost of goods sold. Expenses for research and development were approximately 2% of Cost of goods sold for each of the years 2015 , 2014 or 2013 . Retirement Benefits The Company maintains various defined benefit pension plans for some of its U.S. and foreign employees. The accounting guidance for retirement benefits requires the Company to recognize the funded status of its defined benefit pension and postretirement plans as an asset or liability in the Consolidated Balance Sheet. Gains or losses, prior service costs or credits, and transition assets or obligations that have not yet been included in net periodic benefit cost as of the end of the year are recognized as components of Accumulated other comprehensive loss, net of tax, within Hubbell shareholders’ equity. The Company’s policy is to fund pension costs within the ranges prescribed by applicable regulations. In addition to providing defined benefit pension benefits, the Company provides health care and life insurance benefits for some of its active and retired employees. The Company’s policy is to fund these benefits through insurance premiums or as actual expenditures are made. See also Note 10 — Retirement Benefits. Earnings Per Share The earnings per share accounting guidance requires use of the two-class method in determining earnings per share. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. Basic earnings per share is calculated as net income available to common shareholders divided by the weighted average number of shares of common stock outstanding. Earnings per diluted share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding of common stock plus the incremental shares outstanding assuming the exercise of dilutive stock options, stock appreciation rights and performance shares. See also Note 18 — Earnings Per Share. Stock-Based Compensation The Company recognizes the grant-date fair value of all stock-based awards on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period), except for certain restricted stock awards granted in 2013 with a performance condition, which are expensed using the graded vesting attribution method. A stock-based award is considered vested for expense attribution purposes when the retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The expense is recorded in Cost of goods sold and S&A expense in the Consolidated Statement of Income based on the recipients’ respective functions within the organization. The Company records deferred tax assets for awards that will result in deductions on its tax returns, based upon the amount of compensation cost recognized and the statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported in the Company’s tax return are recorded to Additional paid-in capital to the extent that previously recognized credits to paid-in capital are still available. See also Note 17 — Stock-Based Compensation. Derivatives In order to limit financial risk in the management of its assets, liabilities and debt, the Company may use derivative financial instruments such as foreign currency hedges, commodity hedges, interest rate hedges and interest rate swaps. All derivative financial instruments are matched with an existing Company asset, liability or proposed transaction. The Company does not speculate or use leverage when trading a derivative product. Market value gains or losses on the derivative financial instrument are recognized in income when the effects of the related price changes of the underlying asset or liability are recognized in income. See Note 14 – Fair Value Measurement for more information regarding our derivative instruments. Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update (ASU 2015-17) requiring all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. As a result, each jurisdiction will now only have one net non-current deferred tax asset or liability. The new guidance is effective for fiscal years beginning after December 15, 2016, and early adoption is permitted. ASU 2015-17 was prospectively adopted by the Company effective December 31, 2015. The adoption resulted in the reclassification of $52.4 million from current deferred taxes to non-current deferred taxes for 2015. As permitted by this ASU, no prior periods were adjusted. See also Note 12 -- Income Taxes. In September 2015, the FASB issued an Accounting Standards Update (ASU 2015-16) relating to measurement-period adjustments in business combinations. The new standard eliminates the requirement for retrospective treatment of measurement-period adjustments in a business combination. Instead, a measurement-period adjustment will be recognized in the period in which the adjustment is determined. The update is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. ASU 2015-16 was adopted by the Company in 2015 and had no material impact on its financial statements. In May 2015, the FASB issued an Accounting Standards Update (ASU 2015-07) relating to investments in certain entities that calculate net asset value per share (or its equivalent). Under the new guidance, investments measured at net asset value (“NAV”), as a practical expedient for fair value, are excluded from the fair value hierarchy. The new guidance is effective in 2016 for calendar year-end public business entities and early adoption is permitted. ASU 2015-07 was adopted by the Company effective December 31, 2015 and the adoption of this standard had no material impact on its financial statements. In April of 2015, the FASB issued an Accounting Standards Update (ASU 2015-03) relating to the presentation of debt issuance costs. ASU 2015-03 requires costs incurred to issue debt to be presented in the balance sheet as a direct deduction from the carrying value of the debt, rather than as a deferred charge. The new guidance is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted and, when adopted, the guidance must be applied on a retrospective basis. ASU 2015-03 was adopted by the Company effective December 31, 2015 and the adoption had no material impact on its financial statements. In February 2015, the FASB amended the current consolidation guidance. The new guidance will impact the determination of whether an entity is a variable interest entity ("VIE") and when a company holds a variable interest in a VIE by introducing specific amendments relating to limited partnerships, outsourced decision makers and service providers, and related parties. The guidance is effective for annual and interim periods beginning after December 2015. The Company does not expect adoption of this guidance will have a material impact on its financial statements. In May 2014, the FASB issued new revenue recognition guidance that supersedes the existing revenue recognition guidance and most industry-specific guidance applicable to revenue recognition. According to the new guidance an entity will apply a principles-based five step model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The guidance was proposed to be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not permitted. On July 9, 2015, the FASB deferred the effective date of the new revenue recognition standard by one year. This means it is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 with earlier application permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently assessing the impact of adopting this standard on its financial statements. |
Business Acquisitions
Business Acquisitions | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions In the first quarter of 2015, the Company acquired the majority of the net assets of the Acme Electric business division of Power Products, LLC and all of the outstanding common stock of Acme Electric de Mexico S. de R.L. de C.V. and Acme Electric Manufacturing de Mexico S. de R.L. de C.V. (collectively "Acme"). Acme was purchased for $67.4 million , net of cash received, and has been added to the Electrical segment, resulting in the recognition of intangible assets of $30.8 million and goodwill of $21.6 million . The $30.8 million of intangible assets consists primarily of customer relationships and tradenames and will be amortized over a weighted average period of approximately 20 years. The majority of the goodwill is expected to be deductible for tax purposes. In the first quarter of 2015, the Company acquired the majority of net assets of the Turner Electric business division of Power Products, LLC ("Turner") constituting the transmission and substation switching business. Turner was purchased for $37.7 million , net of cash received, and has been added to the Power segment, resulting in the recognition of intangible assets of $22.0 million and goodwill of $12.0 million . The $22.0 million of intangible assets consists primarily of customer relationships and tradenames and will be amortized over a weighted average period of approximately 19 years. All of the goodwill associated with the Turner acquisition is expected to be deductible for tax purposes. In the first quarter of 2015, the Company acquired all of the membership interests of the Electric Controller and Manufacturing Company, LLC ("EC&M"). EC&M was purchased for $21.6 million , net of cash received, and has been added to the Electrical segment, resulting in the recognition of intangible assets of $8.5 million and goodwill of $7.9 million . The $ 8.5 million of intangible assets consists primarily of customer relationships and tradenames and will be amortized over a weighted average period of approximately 16 years. All of the goodwill associated with the EC&M acquisition is expected to be deductible for tax purposes. In the third quarter of 2015, the Company acquired the majority of net assets of GasBreaker, a flow valve manufacturer in the natural gas industry. GasBreaker was purchased for $36.5 million , net of cash received, and has been added to the Electrical segment, resulting in the recognition of intangible assets of $20.4 million and goodwill of $13.8 million . The $20.4 million of intangible assets consist primarily of tradenames and customer relationships which will be amortized over a weighted average period of approximately 17 years. All of the goodwill associated with the GasBreaker acquisition is expected to be deductible for tax purposes. All of these business acquisitions have been accounted for as business combinations and have resulted in the recognition of goodwill. The goodwill relates to a number of factors built into the purchase price, including the future earnings and cash flow potential of the businesses as well as the complementary strategic fit and resulting synergies they bring to the Company’s existing operations. The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition related to these transactions (in millions): Tangible assets acquired $ 36.8 Intangible assets 81.7 Goodwill 55.3 Liabilities assumed (10.6 ) TOTAL CASH CONSIDERATION 163.2 The Consolidated Financial Statements include the results of operations of the acquired businesses from their respective dates of acquisition. Net sales and earnings related to these acquisitions for the year ended December 31, 2015 were not significant to the consolidated results. Pro forma information related to these acquisitions has not been included because the impact to the Company’s consolidated results of operations was not material. Cash used for the acquisition of businesses, net of cash acquired as reported in the Consolidated Statement of Cash Flows for the twelve months ended December 31, 2015 is $163.4 million and includes an approximately $0.2 million payment in 2015 to settle the net working capital adjustment relating to an acquisition completed in the fourth quarter of 2014. |
Receivables and Allowances
Receivables and Allowances | 12 Months Ended |
Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | |
Receivables and Allowances | Receivables and Allowances Receivables consist of the following components at December 31, (in millions): 2015 2014 Trade accounts receivable $ 491.5 $ 494.0 Non-trade receivables 21.3 15.9 Accounts receivable, gross 512.8 509.9 Allowance for credit memos, returns and cash discounts (41.5 ) (36.7 ) Allowance for doubtful accounts (4.7 ) (3.4 ) Total allowances (46.2 ) (40.1 ) ACCOUNTS RECEIVABLE, NET $ 466.6 $ 469.8 |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are classified as follows at December 31, (in millions): 2015 2014 Raw material $ 167.5 $ 153.8 Work-in-process 99.6 94.8 Finished goods 342.6 277.6 609.7 526.2 Excess of FIFO over LIFO cost basis (69.7 ) (84.4 ) INVENTORIES, NET $ 540.0 $ 441.8 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Other Intangible Assets | Goodwill and Other Intangible Assets Changes in the carrying amounts of goodwill for the years ended December 31, 2015 and 2014 , by segment, were as follows (in millions): Segment Electrical Power Total BALANCE AT DECEMBER 31, 2013 $ 520.9 $ 279.5 $ 800.4 Current year acquisitions 53.5 27.4 80.9 Foreign currency translation and prior year acquisitions (5.5 ) (1.1 ) (6.6 ) BALANCE AT DECEMBER 31, 2014 $ 568.9 $ 305.8 $ 874.7 Current year acquisitions 43.3 12.0 55.3 Foreign currency translation and prior year acquisitions (1.0 ) (0.5 ) (1.5 ) BALANCE AT DECEMBER 31, 2015 $ 611.2 $ 317.3 $ 928.5 In 2015 , the Company completed four acquisitions for an aggregate purchase price of $163.4 million , net of cash received which includes $0.2 million net working capital adjustment related to a prior period acquisition. These acquisitions have been accounted for as business combinations and have resulted in the recognition of $55.3 million of goodwill. See also Note 2 - Business Acquisitions. The Company has not recorded any goodwill impairments since the initial adoption of the accounting guidance in 2002. Identifiable intangible assets are recorded in Intangible assets, net in the Consolidated Balance Sheet. Identifiable intangible assets are comprised of the following (in millions): December 31, 2015 December 31, 2014 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 133.8 $ (38.0 ) $ 125.1 $ (32.5 ) Customer/agent relationships and other 331.2 (108.3 ) 263.0 (87.8 ) TOTAL DEFINITE-LIVED INTANGIBLES 465.0 (146.3 ) 388.1 (120.3 ) Indefinite-lived: Tradenames and other 53.5 — 55.0 — TOTAL INTANGIBLE ASSETS $ 518.5 $ (146.3 ) $ 443.1 $ (120.3 ) Amortization expense associated with these definite-lived intangible assets was $28.2 million , $23.8 million and $19.9 million in 2015 , 2014 and 2013 , respectively. Amortization expense associated with these intangible assets is expected to be $27.0 million in 2016 , $27.3 million in 2017 , $25.8 million in 2018 , $23.6 million in 2019 and $22.6 million in 2020 . |
Investments
Investments | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Investments | Investments At December 31, 2015 and December 31, 2014 , the Company had both available-for-sale and trading investments. The available-for-sale investments consisted of municipal bonds with an amortized cost basis of $46.9 million and a redeemable preferred stock which was acquired for $5.0 million in the third quarter of 2015 and is an investment in a privately-held electrical utility substation security provider. The redeemable preferred stock was classified in Level 3 of the fair value hierarchy and had a fair value of $4.6 million at December 31, 2015. Trading investments were comprised primarily of debt and equity mutual funds. These investments are stated at fair market value based on current quotes. The following table sets forth selected data with respect to the Company’s investments at December 31, (in millions): 2015 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale investments $ 51.9 $ 0.5 $ (0.4 ) $ 52.0 $ 52.0 $ 42.5 $ 0.6 $ (0.1 ) $ 43.0 $ 43.0 Trading investments 7.3 2.4 — 9.7 9.7 6.6 2.3 — 8.9 8.9 TOTAL INVESTMENTS $ 59.2 $ 2.9 $ (0.4 ) $ 61.7 $ 61.7 $ 49.1 $ 2.9 $ (0.1 ) $ 51.9 $ 51.9 Contractual maturities of available-for-sale investments at December 31, 2015 were as follows (in millions): Amortized Cost Fair Value Available-for-sale investments Due within 1 year $ 12.2 $ 12.2 After 1 year but within 5 years 32.5 32.5 After 5 years but within 10 years 7.2 7.3 Due after 10 years — — TOTAL $ 51.9 $ 52.0 At December 31, 2015 and 2014 , the total net of tax unrealized gains recorded relating to available-for-sale securities were $0.0 million and $0.3 million , respectively. These net unrealized gains have been included in Accumulated other comprehensive loss, net of tax. Net unrealized gains relating to trading investments have been reflected in the results of operations. The cost basis used in computing the gain or loss on these securities was through specific identification. Gains and losses for both available-for-sale and trading securities were not material in 2015 , 2014 and 2013 . |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment, carried at cost, is summarized as follows at December 31, (in millions): 2015 2014 Land $ 42.5 $ 43.1 Buildings and improvements 259.4 252.8 Machinery, tools, and equipment 761.7 740.7 Construction-in-progress 37.5 20.8 Gross property, plant, and equipment 1,101.1 1,057.4 Less accumulated depreciation (681.4 ) (656.2 ) NET PROPERTY, PLANT, AND EQUIPMENT $ 419.7 $ 401.2 Depreciable lives on buildings range between 20 - 45 years . Depreciable lives on machinery, tools, and equipment range between 3 - 20 years . The Company recorded depreciation expense of $51.2 million , $49.9 million and $45.3 million for 2015 , 2014 and 2013 , respectively. |
Other Accrued Liabilities
Other Accrued Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consists of the following at December 31, (in millions): 2015 2014 Customer program incentives $ 40.7 $ 40.5 Accrued income taxes 2.1 5.8 Deferred revenue 15.0 18.2 Other 81.9 65.5 TOTAL $ 139.7 $ 130.0 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consists of the following at December 31, (in millions): 2015 2014 Pensions $ 150.7 $ 137.1 Other post-employment benefits 24.3 24.3 Deferred tax liabilities 36.1 74.5 Other 49.6 54.4 TOTAL $ 260.7 $ 290.3 |
Retirement Benefits
Retirement Benefits | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Retirement Benefits | Retirement Benefits The Company has funded and unfunded non-contributory U.S. and foreign defined benefit pension plans. Benefits under these plans are generally provided based on either years of service and final average pay or a specified dollar amount per year of service. The U.S. defined benefit pension plan has been closed to new participants since 2004, while the Canadian and UK defined benefit pension plans have been closed to new entrants since 2006 and 2007, respectively. These U.S., Canadian and UK employees are eligible instead for defined contribution plans. The Company also has a number of health care and life insurance benefit plans covering eligible employees who reached retirement age while working for the Company. These benefits have been discontinued for substantially all future retirees. The Company anticipates future cost-sharing changes for its discontinued plans that are consistent with past practices.The Company uses a December 31 measurement date for all of its plans. In 2015, we amended our domestic qualified defined benefit pension plans to offer a voluntary lump sum pension payout program to certain eligible terminated vested participants that would settle our obligation to those participants accepting the offer. As part of this voluntary lump sum program, in 2015 the Company made approximately $27.7 million of payments to participants, settling its pension obligation by approximately the same amount. There were no other amendments made in 2015 or 2014 to the defined benefit pension plans which had a significant impact on the total pension benefit obligation. The Company's U.S. defined benefit pension plans were approximately 89% of the $912.3 million total pension benefit obligations at December 31, 2015 . The following table sets forth the reconciliation of beginning and ending balances of the benefit obligations and the plan assets for the Company’s defined benefit pension and other benefit plans at December 31, (in millions): Pension Benefits Other Benefits 2015 2014 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 976.3 $ 828.2 $ 26.7 $ 28.1 Service cost 17.7 15.1 0.1 0.1 Interest cost 40.5 40.9 1.0 1.1 Plan participants’ contributions 0.7 0.7 — Amendments — — — Actuarial loss (gain) (46.6 ) 135.1 0.5 1.6 Currency impact (6.7 ) (6.0 ) — Other (1.4 ) (0.6 ) (0.1 ) (2.2 ) Benefits paid (68.2 ) (37.1 ) (1.6 ) (2.0 ) Benefit obligation at end of year $ 912.3 $ 976.3 $ 26.6 $ 26.7 Change in plan assets Fair value of plan assets at beginning of year $ 835.7 $ 764.0 $ — $ — Actual return on plan assets (31.8 ) 87.1 — — Employer contributions 27.9 27.6 — — Plan participants’ contributions 0.7 0.7 — — Currency impact (6.7 ) (6.6 ) — — Benefits paid (68.2 ) (37.1 ) — — Fair value of plan assets at end of year $ 757.6 $ 835.7 $ — $ — FUNDED STATUS $ (154.7 ) $ (140.6 ) $ (26.6 ) $ (26.7 ) Amounts recognized in the consolidated balance sheet consist of: Prepaid pensions (included in Other long-term assets) $ 1.4 $ 1.0 $ — $ — Accrued benefit liability (short-term and long-term) (156.1 ) (141.6 ) (26.6 ) (26.7 ) NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET $ (154.7 ) $ (140.6 ) $ (26.6 ) $ (26.7 ) Amounts recognized in Accumulated other comprehensive loss (income) consist of: Net actuarial loss $ 221.5 $ 196.4 $ 1.4 $ 0.7 Prior service cost (credit) 0.6 0.8 (4.2 ) (5.2 ) NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS $ 222.1 $ 197.2 $ (2.8 ) $ (4.5 ) The accumulated benefit obligation for all defined benefit pension plans was $842.1 million and $907.1 million at December 31, 2015 and 2014 , respectively. Information with respect to plans with accumulated benefit obligations in excess of plan assets is as follows, (in millions): 2015 2014 Projected benefit obligation $ 807.9 $ 266.5 Accumulated benefit obligation $ 757.6 $ 261.1 Fair value of plan assets $ 655.3 $ 168.9 The following table sets forth the components of pension and other benefit costs for the years ended December 31, (in millions): Pension Benefits Other Benefits 2015 2014 2013 2015 2014 2013 Components of net periodic benefit cost: Service cost $ 17.7 $ 15.1 $ 16.7 $ 0.1 $ 0.1 $ — Interest cost 40.5 40.9 36.5 1.0 1.1 1.1 Expected return on plan assets (53.2 ) (45.2 ) (46.7 ) — — Amortization of prior service cost (credit) 0.2 0.2 0.2 (1.0 ) (1.0 ) (1.0 ) Amortization of actuarial losses (gains) 12.1 3.9 13.8 (0.1 ) (0.1 ) (0.1 ) Other — — — — (2.2 ) — Curtailment and settlement losses (gains) — — — — — — Net periodic benefit cost (credit) $ 17.3 $ 14.9 $ 20.5 $ — $ (2.1 ) $ — Changes recognized in other comprehensive loss (income), before tax: Current year net actuarial loss (gain) $ 37.0 $ 93.1 $ (87.8 ) $ 0.5 $ 1.5 $ (1.4 ) Current year prior service credit — — 0.4 — — Amortization of prior service (cost) credit (0.2 ) (0.2 ) (0.2 ) 1.0 1.0 1.0 Amortization of net actuarial (losses) gains (12.1 ) (3.9 ) (13.8 ) 0.1 0.1 0.1 Currency impact (0.1 ) — (0.1 ) — — — Other adjustments — — — — — — Total recognized in other comprehensive loss (income) 24.6 89.0 (101.5 ) 1.6 2.6 (0.3 ) TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS (INCOME) $ 41.9 $ 103.9 $ (81.0 ) $ 1.6 $ 0.5 $ (0.3 ) Amortization expected to be recognized through income during 2016 Amortization of prior service cost (credit) $ 0.1 $ (1.0 ) Amortization of net loss (gain) 13.6 — TOTAL EXPECTED TO BE RECOGNIZED THROUGH INCOME DURING NEXT FISCAL YEAR $ 13.7 $ (1.0 ) The Company also maintains six defined contribution pension plans. The total cost of these plans was $13.3 million in 2015 , $12.9 million in 2014 and $11.2 million in 2013 , excluding the employer match for the 401(k) plan. This cost is not included in the above net periodic benefit cost for the defined benefit pension plans. The Company participated in two and three multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover its union represented employees at December 31, 2015 and 2014 , respectively. The Company’s total contributions to these plans were $0.8 million in 2015 , $0.8 million in 2014 and $0.9 million in 2013 . These contributions represent more than five percent of the total contributions made to one of these plans in 2015 and two of these plans in 2014 and 2013. As of December 31, 2015 one of the two multiemployer defined benefit pension plans in which the Company participates is considered to be less than 65 percent funded. The risks of participating in these multiemployer plans are different from single-employer plans in that assets contributed are pooled and may be used to provide benefits to employees of other participating employers. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may have to be assumed by the remaining participant employers. If we choose to stop participating in these multi employer plans we may be required to pay those plans a withdrawal liability based on the unfunded status of the plan. Assumptions The following assumptions were used to determine the projected benefit obligations at the measurement date and the net periodic benefit cost for the year: Pension Benefits Other Benefits 2015 2014 2013 2015 2014 2013 Weighted-average assumptions used to determine benefit obligations at December 31, Discount rate 4.71 % 4.23 % 5.04 % 4.60 % 4.10 % 4.60 % Rate of compensation increase 3.59 % 3.15 % 3.18 % 3.92 % 3.60 % 3.58 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, Discount rate 4.23 % 5.04 % 4.22 % 4.10 % 4.60 % 4.20 % Expected return on plan assets 6.36 % 6.06 % 6.70 % N/A N/A N/A Rate of compensation increase 3.15 % 3.18 % 3.11 % 3.60 % 3.58 % 3.55 % At the end of each year, the Company determines the appropriate expected return on assets for each plan based upon its strategic asset allocation (see discussion below). In making this determination, the Company utilizes expected returns for each asset class based upon current market conditions and expected risk premiums for each asset class. The Company also determines the discount rate to be used to calculate the present value of pension plan liabilities at the end of each year. The discount rate for the Company’s U.S. and Canadian pension plans is determined by matching the expected cash flows associated with its benefit obligations to a yield curve based on high quality, fixed income debt instruments with maturities that closely match the expected funding period of its pension liabilities. This yield curve is derived using a bond matching approach which incorporates a selection of bonds that align with the Company’s projected benefit obligations. As of December 31, 2015 , the Company used a discount rate of 4.8% for its U.S. pension plans compared to a discount rate of 4.3% used in 2014 . For its Canadian pension plan, the Company used a discount rate of 3.90% as of December 31, 2015 compared to the 3.95% discount rate used in 2014 . For its UK pension plan the discount rate was derived using a yield curve fitted to the yields on AA bonds in the Barclays Capital Sterling Aggregate Corporate Index and uses sample plan cash flow data as a proxy to plan specific liability cash flows. The derived discount rate is the single discount rate equivalent to discounting these liability cash flows at the term-dependent spot rate of AA corporate bonds. This methodology resulted in a December 31, 2015 discount rate for the UK pension plan of 4.0% as compared to a discount rate of 3.7% used in 2014 . In 2014 we changed the mortality table used to calculate the present value of our pension plan liabilities from the RP-2000 mortality table to the RP-2000 mortality table with generational projection using Scale BB-2D. That change resulted in an approximately $40 million increase in the projected benefit obligation of our U.S. defined benefit pension plans upon remeasurement at December 31, 2014. The same mortality assumption was used to calculate the present value of pension plan liabilities as of December 31, 2015. The RP-2000 mortality table with generational projection using Scale BB-2D was chosen as the best estimate based on the observed and anticipated experience of the plans after considering alternative tables, including RP-2014 and generational projection using Scale MP-2015. The rate of compensation increase assumption reflects the Company’s actual experience and best estimate of future increases. The assumed health care cost trend rates used to determine the projected postretirement benefit obligation are as follows: Other Benefits 2015 2014 2013 Assumed health care cost trend rates at December 31, Health care cost trend assumed for next year 7.4 % 7.6 % 7.8 % Rate to which the cost trend is assumed to decline 5.0 % 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2028 2028 2028 Assumed health care cost trend rates have an effect on the amounts reported for the postretirement benefit plans. A one-percentage-point change in assumed health care cost trend rates would have the following effects (in millions): One Percentage Point Increase One Percentage Point Decrease Effect on total of service and interest cost $ 0.1 $ (0.1 ) Effect on postretirement benefit obligation $ 1.6 $ (1.4 ) Plan Assets The Company’s combined targeted 2015 weighted average asset allocation for domestic and foreign pension plans and the actual weighted average asset allocation for domestic and foreign pension plans at December 31, 2015 and 2014 by asset category are as follows: Percentage of Plan Assets Target Actual Asset Category 2016 2015 2014 Equity securities 24 % 25 % 30 % Debt securities & Cash 49 % 52 % 48 % Alternative Investments 27 % 23 % 22 % TOTAL 100 % 100 % 100 % At the end of each year, the Company estimates the expected long-term rate of return on pension plan assets based on the strategic asset allocation for its plans. In making this determination, the Company utilizes expected rates of return for each asset class based upon current market conditions and expected risk premiums for each asset class. The Company has written investment policies and asset allocation guidelines for its domestic and foreign pension plans. In establishing these policies, the Company has considered that its various pension plans are a major retirement vehicle for most plan participants and has acted to discharge its fiduciary responsibilities with regard to the plans solely in the interest of such participants and their beneficiaries. The goal underlying the establishment of the investment policies is to provide that pension assets shall be invested in a prudent manner and so that, together with the expected contributions to the plans, the funds will be sufficient to meet the obligations of the plans as they become due. To achieve this result, the Company conducts a periodic strategic asset allocation study to form a basis for the allocation of pension assets between various asset categories. Specific policy benchmark percentages are assigned to each asset category with minimum and maximum ranges established for each. The assets are then tactically managed within these ranges. Equity securities include investments in large-cap, mid-cap and small-cap companies located inside and outside the United States. Fixed income securities include corporate bonds of companies from diversified industries, mortgage-backed securities and US Treasuries. Derivative investments include futures contracts used by the plan to adjust the level of its investments within an asset allocation category. The actual and target percentages reported in the preceding table reflect the economic exposure to each asset category, including the impact of derivative positions. All futures contracts are 100% supported by cash or cash equivalent investments. At no time may derivatives be utilized to leverage the asset portfolio. Equity securities include Company common stock in the amounts of $34.7 million ( 5.3% of total domestic plan assets) and $37.6 million ( 5.2% of total domestic plan assets) at December 31, 2015 and 2014 , respectively. The Company’s other post-employment benefits are unfunded; therefore, no asset information is reported. The fair value of the Company’s pension plan assets at December 31, 2015 and 2014 , by asset category are as follows (in millions): Quoted Prices in Active Markets for Identical Assets Quoted Prices in Active Market for Similar Asset Significant Unobservable Inputs Investments Priced Using Net Asset Value Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 62.0 $ 62.0 $ — $ — $ — Equity securities: US Large-cap (a) 29.0 29.0 — — — US Mid-cap and Small-cap Growth (b) 38.2 38.2 — — — International Large-cap 28.7 28.7 — — — Emerging Markets (c) 11.8 11.8 — — — Fixed Income Securities: US Treasuries 186.4 — 186.4 — — Corporate Bonds (d) 99.6 0.3 98.9 0.4 — Asset Backed Securities and Other 126.6 — 126.6 — — Derivatives: Assets (e) 2.5 1.6 0.9 — — (Liabilities) (e) (0.7 ) (0.7 ) — — — Alternative Investment Funds (f) 158.3 65.9 — — 92.4 Common Pooled Fund (g) 15.2 0.8 14.4 — — BALANCE AT DECEMBER 31, 2015 $ 757.6 $ 237.6 $ 427.2 $ 0.4 $ 92.4 Quoted Prices in Active Markets for Identical Assets Quoted Prices in Active Market for Similar Asset Significant Unobservable Inputs Investments Priced Using Net Asset Value Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 152.8 $ 152.8 $ — $ — $ — Equity securities: US Large-cap (a) 35.1 35.1 — — — US Mid-cap and Small-cap Growth (b) 41.5 41.5 — — — International Large-cap 23.4 23.4 — — — Emerging Markets (c) 11.3 11.3 — — — Fixed Income Securities: US Treasuries 57.7 — 57.7 — — Corporate Bonds (d) 214.1 — 214.1 — — Asset Backed Securities and Other 87.9 0.4 87.5 — — Derivatives: Assets (e) 8.1 7.1 1.0 — — (Liabilities) (e) (0.5 ) (0.5 ) — — — Alternative Investment Funds (f) 188.2 110.1 — — 78.1 Common Pooled Funds (g) 16.1 — 16.1 — — BALANCE AT DECEMBER 31, 2014 $ 835.7 $ 381.2 $ 376.4 $ — $ 78.1 (a) Includes an actively managed portfolio of large-cap US stocks. (b) Includes $34.7 million and $37.6 million of the Company’s common stock at December 31, 2015 and 2014 , respectively, and an investment in a small cap open ended mutual fund. (c) Includes open ended emerging markets mutual funds. (d) Includes primarily investment grade bonds of primarily U.S. issuers from diverse industries. (e) Includes primarily U.S. and foreign equity futures as well as foreign fixed income futures and short positions in U.S. Treasury futures to adjust the duration of the portfolio. (f) Includes investments in hedge funds, including fund of funds products and open end mutual funds (g) Investments in Common Pooled Funds, consisting of equities and fixed income securities. The table of pension plan assets as of December 31, 2014 above has been revised due to a misclassification in the allocation of fair value between cash and cash equivalents, derivative assets and derivative liabilities. As a result, the cash and cash equivalents have been increased by $126.6 million , derivative assets has been decreased by $142.0 million and derivative liabilities has been decreased by $15.4 million . The Company evaluated the materiality of this misclassification and concluded it was not material to the prior year financial statements. Investments Priced Using Net Asset Value ("NAV") within Alternative Investment Funds in the preceding tables consist of fund of fund products. These products invest in a number of investment funds managed by a diversified group of third-party investment managers who employ a variety of alternative investment strategies, including relative value, security selection, distressed value, global macro, specialized credit and directional strategies. The objective of these funds is to achieve the desired capital appreciation with lower volatility than either traditional equity or fixed income securities. In May 2015 the FASB issued an Accounting Standards Disclosures update requiring companies to exclude investments measured at NAV as a practical expedient for fair value from the fair value hierarchy. The Company early adopted the standard effective December 31, 2015, as allowed, and as a result of the required retrospective application of the standard, has reclassified $78.1 million within Alternative Investment Funds out of Level 3 of the fair value hierarchy and into Investments Priced Using Net Asset Value in the table of pension plan assets as of December 31, 2014. Contributions Although not required under the Pension Protection Act of 2006, the Company made a voluntary contribution to its qualified domestic defined benefit pension plan of $20.0 million in January 2015. The Company expects to contribute approximately $2.2 million to its foreign plans in 2016 . Estimated Future Benefit Payments The following domestic and foreign benefit payments, which reflect future service, as appropriate, are expected to be paid as follows, (in millions): Pension Benefits Other Benefits 2016 $ 42.3 $ 2.3 2017 $ 43.8 $ 2.3 2018 $ 45.7 $ 2.3 2019 $ 47.4 $ 2.2 2020 $ 49.3 $ 2.1 2021-2025 $ 278.2 $ 9.5 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following table sets forth the Company’s long-term debt at December 31, (in millions): Maturity 2015 2014 Senior notes at 5.95%, net of unamortized discount and unamortized debt issuance costs 2018 $ 298.8 $ 298.3 Senior notes at 3.625%, net of unamortized discount and unamortized debt issuance costs 2022 297.1 296.6 TOTAL LONG-TERM DEBT $ 595.9 $ 594.9 In November 2010 , the Company completed a public debt offering for $300 million of long-term, senior, unsecured notes maturing in November 2022 and bearing interest at a fixed rate of 3.625% . Prior to the issuance of the 2022 Notes, the Company entered into a forward interest rate lock which resulted in a $1.6 million loss. This amount was recorded in Accumulated other comprehensive loss, net of tax and is being amortized over the life of the 2022 Notes. In May 2008 , the Company completed a public offering of $300 million long-term senior, unsecured notes maturing in May 2018. The 2018 Notes bear interest at a fixed rate of 5.95% . Prior to the issuance of the 2018 Notes, the Company entered into a forward interest rate lock which resulted in a $1.2 million gain. This amount was recorded in Accumulated other comprehensive loss, net of tax, and is being amortized over the life of the notes. The 2018 Notes and the 2022 Notes are both fixed rate indebtedness, are callable at any time with a make whole premium and are only subject to accelerated payment prior to maturity in the event of a default under the indenture governing the 2018 Notes and 2022 Notes, as modified by the supplemental indentures creating such series, or upon a change in control event as defined in such indenture. The Company was in compliance with all of its covenants as of December 31, 2015 . At December 31, 2015 and 2014 , the Company had $48.2 million and $1.4 million , respectively, of short-term debt outstanding. Short-term debt at December 31, 2015 includes $48.0 million of commercial paper borrowing to partially fund the Class A Cash Consideration paid on December 23, 2015 in connection with the Reclassification of the Company's dual-class common stock into a single class of Common Stock. There were no commercial paper borrowings outstanding at December 31, 2014. The Company has a credit agreement for a 5.0 million Brazilian reais line of credit to support its Brazilian operations. The line of credit expires in October 2016; however, an undrawn balance is subject to an annual review by the lender. At December 31, 2015, there were no borrowings outstanding under this line of credit. At December 31, 2014, 3.0 million Brazilian reais (equivalent to $1.1 million ) was outstanding. Short-term debt is also comprised of outstanding borrowings under existing lines of credit used to support the Company's operations in China. At December 31, 2015 and 2014 there were 1.3 million (equivalent to $0.2 million ) and 1.7 million (equivalent to $0.3 million ), respectively, of Chinese renminbi borrowings outstanding under this line of credit. Other information related to short-term debt at December 31, is summarized below: 2015 2014 Interest rate on short-term debt: At year end 0.47 % 14.54 % Paid during the year (weighted average) 4.54 % 14.35 % On December 16, 2015 the Company entered into a five -year revolving credit agreement (the "Credit Agreement") with a syndicate of lenders that provides a $750 million committed revolving credit facility, and replaces the $500 million five -year credit agreement dated as of October 20, 2011 that was scheduled to expire in October 2016. The revolving credit facility serves as a backup to the Company's commercial paper program. Commitments under the Credit Agreement may be increased to an aggregate amount not the exceed $1.250 billion . The interest rate applicable to borrowing under the Credit Agreement is generally either the adjusted LIBOR plus an applicable margin (determined by reference to a ratings based grid) or the alternative base rate. The single financial covenant in the Credit Agreement, which the Company is in compliance with, requires that total debt not exceed 55% of total capitalization as of the last day of each fiscal quarter of the Company. Annual commitment fees to support availability under the credit facility are not material. As of December 31, 2015 the revolving credit facility has not been drawn against. The Company also maintains other lines of credit that are primarily used to support the issuance of letters of credit. Interest rates and other terms of borrowing under these lines of credit vary from country to country, depending on local market conditions. At December 31, 2015 and 2014 these lines totaled $54.6 million and $54.6 million , respectively, of which $ 22.5 million and $ 27.1 million was utilized to support letters of credit and the remaining amount was unused. The annual commitment fees associated with these lines of credit are not material. Interest and fees paid related to total indebtedness was $29.5 million , $29.4 million and $29.7 million in 2015 , 2014 , and 2013 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following table sets forth selected data with respect to the Company’s income tax provisions for the years ended December 31, (in millions): 2015 2014 2013 Income before income taxes: United States $ 347.2 $ 385.6 $ 360.8 International 71.4 99.9 113.0 TOTAL INCOME BEFORE INCOME TAXES $ 418.6 $ 485.5 $ 473.8 Provision for income taxes — current: Federal $ 110.4 $ 90.1 $ 94.6 State 13.7 15.4 15.1 International 17.6 22.5 21.0 Total provision-current 141.7 128.0 130.7 Provision for income taxes — deferred: Federal (1.7 ) 24.4 14.4 State 0.4 2.7 0.1 International (3.9 ) 3.2 (1.2 ) Total provision — deferred (5.2 ) 30.3 13.3 TOTAL PROVISION FOR INCOME TAXES $ 136.5 $ 158.3 $ 144.0 Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statement purposes. The components of the deferred tax assets/(liabilities) at December 31, were as follows (in millions): 2015 2014 Deferred tax assets: Inventories $ 6.8 $ 4.6 Income tax credits 31.9 30.6 Accrued liabilities 25.0 23.3 Pension 58.2 43.6 Post retirement and post employment benefits 10.4 11.3 Stock-based compensation 12.6 11.4 Net operating loss carryforwards 31.0 46.3 Miscellaneous other 7.0 7.5 Gross deferred tax assets 182.9 178.6 Valuation allowance (22.0 ) (34.3 ) Total deferred tax assets, net of valuation allowance 160.9 144.3 Deferred tax liabilities: Acquisition basis difference (149.2 ) (145.8 ) Property, plant, and equipment (41.6 ) (41.9 ) Total deferred tax liabilities (190.8 ) (187.7 ) TOTAL NET DEFERRED TAX LIABILITY $ (29.9 ) $ (43.4 ) Deferred taxes are reflected in the Consolidated Balance Sheet as follows: Current tax assets (included in Deferred taxes and other) $ — $ 31.2 Non-current tax assets (included in Other long-term assets) 6.2 1.1 Current tax liabilities (included in Other accrued liabilities) — (1.2 ) Non-current tax liabilities (included in Other Non-current liabilities) (36.1 ) (74.5 ) TOTAL NET DEFERRED TAX LIABILITY $ (29.9 ) $ (43.4 ) As of December 31, 2015 , the Company had a total of $31.9 million of Federal, State (net of Federal benefit) and foreign (fully valued) tax credit carryforwards, available to offset future income taxes. As of December 31, 2015 , $10.5 million of the tax credits may be carried forward indefinitely while the remaining $21.4 million will begin to expire at various times in 2016 through 2031 . As of December 31, 2015 , the Company had recorded tax benefits totaling $31.0 million for Federal, State and foreign net operating loss carryforwards (“NOLs”). As of December 31, 2015, $8.6 million of NOLs may be carried forward indefinitely while the remaining $22.4 million will begin to expire at various times in 2023 through 2031. The tax benefit related to a portion of these NOLs has been adjusted to reflect an “ownership change” pursuant to Internal Revenue Code Section 382, which imposes an annual limitation on the utilization of pre-acquisition operating losses. The Company has recorded a net valuation allowance of $22.0 million for the portion of the foreign tax and state tax credit carryforwards and foreign NOLs that the Company anticipates will expire prior to utilization. The Company has early adopted Accounting Standards Update 2015-17, Balance Sheet Classification of Deferred Taxes which the FASB issued in November 2015. As a result of this adoption all current deferred tax assets and liabilities, along with any related valuation allowance have been prospectively classified as non-current on the December 31, 2015 balance sheet, no prior periods were adjusted. See also Note 1 -- Significant Accounting Policies. At December 31, 2015 , income and withholding taxes have not been provided on approximately $815 million of undistributed international earnings that are permanently reinvested in international operations. If such earnings were not indefinitely reinvested, a tax liability of approximately $180 million would be recognized. Cash payments of income taxes were $139.1 million , $125.4 million and $127.2 million in 2015 , 2014 , and 2013 , respectively. The Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The IRS and other tax authorities routinely audit the Company’s tax returns. These audits can involve complex issues which may require an extended period of time to resolve. During 2015 the IRS commenced an examination of the Company’s 2013 and 2014 Federal income tax returns. The Company does not expect this examination to be completed within the next 12 months. With few exceptions, the Company is no longer subject to state, local, or non-U.S. income tax examinations by tax authorities for years prior to 2008. The following tax years, by major jurisdiction, are still subject to examination by taxing authorities: Jurisdiction Open Years United States 2013-2015 UK 2014-2015 Puerto Rico 2011-2015 Canada 2011-2015 A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2015 2014 2013 Unrecognized tax benefits at beginning of year $ 21.6 $ 14.8 $ 13.5 Additions based on tax positions relating to the current year 2.9 2.9 2.2 Reductions based on expiration of statute of limitations (2.8 ) (1.2 ) (1.5 ) Additions to tax positions relating to previous years 0.4 9.5 2.1 Settlements (1.8 ) (4.4 ) (1.5 ) TOTAL UNRECOGNIZED TAX BENEFITS $ 20.3 $ 21.6 $ 14.8 Included in the balance at December 31, 2015 are $16.9 million of tax positions which, if in the future are determined to be recognizable, would affect the annual effective income tax rate. Additionally, there are $0.8 million of tax positions for which the ultimate deductibility is highly certain but for which there is uncertainty as to the timing of such deductibility. Because of the impact of deferred tax accounting, other than interest and penalties, the disallowance of the shorter deductibility period would not affect the annual effective tax rate but would accelerate the payment of cash to the applicable taxing authority to an earlier period. It is reasonably possible that in the next twelve months, because of changes in facts and circumstances, the unrecognized tax benefits may increase or decrease. The Company estimates a possible decrease of up to $5.2 million within the next twelve months due to the expiration of the statute of limitations on certain unrecognized tax positions. The Company’s policy is to record interest and penalties associated with the underpayment of income taxes within Provision for income taxes in the Consolidated Statement of Income. The Company recognized expense (benefit), before federal tax impact, related to interest and penalties of approximately $1.2 million in 2015 , $1.7 million in 2014 and $(0.2) million 2013 . The Company had $4.1 million and $2.9 million accrued for the payment of interest and penalties as of December 31, 2015 and December 31, 2014 , respectively. The consolidated effective income tax rate varied from the United States federal statutory income tax rate for the years ended December 31, as follows: 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.3 2.0 2.1 Foreign income taxes (3.9 ) (2.1 ) (3.6 ) Other, net (0.8 ) (2.3 ) (3.1 ) CONSOLIDATED EFFECTIVE INCOME TAX RATE 32.6 % 32.6 % 30.4 % The foreign income tax benefit shown is primarily due to lower statutory rates in foreign jurisdictions compared to the Federal statutory rate. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Dec. 31, 2015 | |
Financial Instruments [Abstract] | |
Financial Instruments | Financial Instruments Concentrations of Credit Risk: Financial instruments which potentially subject the Company to significant concentrations of credit risk consist of trade receivables, cash equivalents and investments. The Company grants credit terms in the normal course of business to its customers. Due to the diversity of its product lines, the Company has an extensive customer base including electrical distributors and wholesalers, electric utilities, equipment manufacturers, electrical contractors, telecommunication companies and retail and hardware outlets. No single customer accounted for more than 10% of total sales in any year during the three years ended December 31, 2015 . However, the Company’s top ten customers account for approximately one-third of its net sales. As part of its ongoing procedures, the Company monitors the credit worthiness of its customers. Bad debt write-offs have historically been minimal. The Company places its cash and cash equivalents with financial institutions and limits the amount of exposure in any one institution. Fair Value: The carrying amounts reported in the Consolidated Balance Sheet for cash and cash equivalents, short-term investments, receivables, bank borrowings, accounts payable and accruals approximate their fair values given the immediate or short-term nature of these items. See also Note 6 — Investments and Note 14 – Fair Value Measurement. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Investments At December 31, 2015 and December 31, 2014 , the Company had $52.0 million and $43.0 million , respectively, of available-for-sale securities. At December 31, 2014 our available-for-sale securities consisted of municipal bonds classified in Level 2 of the fair value hierarchy. At December 31, 2015 our available-for-sale securities consisted of $47.4 million of municipal bonds classified as Level 2 of the fair value hierarchy, as well as, $4.6 million of redeemable preferred stock classified in Level 3 of the fair value hierarchy. The redeemable preferred stock was acquired for $5.0 million in the third quarter of 2015 and is an investment in a privately-held electrical utility substation security provider. The Company also had $9.7 million and $8.9 million of trading securities at December 31, 2015 and December 31, 2014 , respectively. These investments are carried on the balance sheet at fair value. Unrealized gains and losses associated with available-for-sale securities are reflected in Accumulated other comprehensive loss, net of tax, while unrealized gains and losses associated with trading securities are reflected in the results of operations. Fair value measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: Level 1 - Quoted prices (unadjusted) in active markets for identical assets or liabilities Level 2 - Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly Level 3 - Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions The following tables show, by level within the fair value hierarchy, the Company’s financial assets and liabilities that are accounted for at fair value on a recurring basis at December 31, 2015 and 2014 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total Money market funds (a) $ 210.9 $ — $ — $ 210.9 Available for sale investments — 47.4 4.6 52.0 Trading securities 9.7 — — 9.7 Deferred compensation plan liabilities (9.7 ) — — (9.7 ) Derivatives: Forward exchange contracts-Assets — 2.5 — 2.5 Forward exchange contracts-(Liabilities) — (0.1 ) — (0.1 ) BALANCE AT DECEMBER 31, 2015 $ 210.9 $ 49.8 $ 4.6 $ 265.3 Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total Money market funds (a) $ 365.9 $ — $ — $ 365.9 Available-for-sale investments — 43.0 — 43.0 Trading securities 8.9 — — 8.9 Deferred compensation plan liabilities (8.9 ) — — (8.9 ) Derivatives: Forward exchange contracts-Assets — 0.7 — 0.7 Forward exchange contracts-(Liabilities) — — — — BALANCE AT DECEMBER 31, 2014 $ 365.9 $ 43.7 $ — $ 409.6 (a) Money market funds are included in Cash and cash equivalents in the Consolidated Balance Sheet. The methods and assumptions used to estimate the Level 2 fair values were as follows: Forward exchange contracts – The fair value of forward exchange contracts were based on quoted forward foreign exchange prices at the reporting date. Municipal bonds – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. Available-for-sale redeemable preferred stock classified in Level 3 – The fair value of the available-for-sale investment in redeemable preferred stock is valued based on a discounted cash flow model, using significant unobservable inputs, including expected cash flows and the discount rate. During 2015 and 2014 , there were no transfers of financial assets or liabilities in or out of Level 1 or Level 2 of the fair value hierarchy. As of December 31, 2015 , the Company had one financial asset that was classified as Level 3 within the hierarchy and was acquired in 2015. Deferred compensation plan The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. During 2015 and 2014 , the Company purchased $1.0 million and $1.2 million , respectively, of trading securities related to these deferred compensation plans. As a result of participant distributions, the Company sold $0.3 million and $0.2 million of these trading securities in 2015 and 2014 respectively. The unrealized gains and losses associated with these trading securities are directly offset by the changes in the fair value of the underlying deferred compensation plan obligation. Derivatives In order to limit financial risk in the management of its assets, liabilities and debt, the Company may use derivative financial instruments such as foreign currency hedges, commodity hedges, interest rate hedges and interest rate swaps. All derivative financial instruments are matched with an existing Company asset, liability or proposed transaction. Market value gains or losses on the derivative financial instrument are recognized in income when the effects of the related price changes of the underlying asset or liability are recognized in income. The fair values of derivative instruments in the Consolidated Balance Sheet are as follows (in millions): Assets Liabilities Fair Value at December 31, Fair Value at December 31, Derivatives designated as hedges Balance Sheet Location 2015 2014 2015 2014 Forward exchange contracts designated as cash flow hedges Deferred taxes and other $ 2.5 $ 0.7 $ — $ — Forward exchange contracts In 2015 and 2014 , the Company entered into a series of forward exchange contracts to purchase U.S. dollars in order to hedge its exposure to fluctuating rates of exchange on anticipated inventory purchases and forecasted sales by its subsidiaries who transact business in Canadian. As of December 31, 2015 , the Company had 42 individual forward exchange contracts for notional amounts which range from $0.5 million to $2.5 million each, which have various expiration dates through December 2016 . These contracts have been designated as cash flow hedges in accordance with the accounting guidance for derivatives. Interest rate locks Prior to the issuance of long-term notes in 2010 and 2008, the Company entered into forward interest rate locks to hedge its exposure to fluctuations in treasury rates. The 2010 interest rate lock resulted in a $1.6 million loss while the 2008 interest rate lock resulted in a $1.2 million gain. These amounts were recorded in Accumulated other comprehensive loss, net of tax, and are being amortized over the life of the respective notes. The amortization associated with these interest rate locks is reclassified from Accumulated other comprehensive loss to Interest expense in the Consolidated Statement of Income. The amortization reclassification for the years ended December 31, 2015 and 2014 was not material. As of both December 31, 2015 and December 31, 2014 there was $0.4 million of net unamortized losses reflected in Accumulated other comprehensive loss. The following table summarizes the results of cash flow hedging relationships for years ended December 31, (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss, net of tax Location of Gain/(Loss) when reclassified Gain/(Loss) Reclassified into Earnings (Effective Portion) Derivative Instrument 2015 2014 (Effective Portion) 2015 2014 Forward exchange contract $ 1.7 $ 0.9 Cost of goods sold $ 0.3 $ 1.0 There was no material hedge ineffectiveness with respect to the forward exchange cash flow hedges during 2015 , 2014 and 2013 . Long-term Debt The total carrying value of long-term debt as of December 31, 2015 and 2014 was 595.9 million and 594.9 million , respectively, net of unamortized discount and debt issuance costs. As of December 31, 2015 and 2014 , the estimated fair value of the long-term debt was $630.5 million and $645.1 million , respectively, based on quoted market prices. The Company’s long-term debt falls within level 2 of the fair value hierarchy. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Legal and Environmental The Company is subject to various legal proceedings arising in the normal course of its business. These proceedings include claims for damages arising out of use of the Company’s products, intellectual property, workers’ compensation and environmental matters. The Company is self-insured up to specified limits for certain types of claims, including product liability and workers’ compensation, and is fully self-insured for certain other types of claims, including environmental and intellectual property matters. The Company recognizes a liability for any contingency that in management’s judgment is probable of occurrence and can be reasonably estimated. We continually reassess the likelihood of adverse judgments and outcomes in these matters, as well as estimated ranges of possible losses based upon an analysis of each matter which includes consideration of outside legal counsel and, if applicable, other experts. The Company is subject to environmental laws and regulations which may require that it investigate and remediate the effects of potential contamination associated with past and present operations as well as those acquired through business combinations. Environmental liabilities are recorded when remedial efforts are probable and the costs can be reasonably estimated. The Company continues to monitor these environmental matters and revalues its liabilities as necessary. Total environmental liabilities were $14.2 million and $13.9 million as of December 31, 2015 and 2014 , respectively. The Company accounts for conditional asset retirement and environmental obligations in accordance with the applicable accounting guidance. The accounting guidance defines “conditional asset retirement obligation” as a legal obligation to perform an asset retirement activity in which the timing and/or method of settlement are conditional on a future event that may or may not be within the control of the Company. Accordingly, an entity is required to recognize a liability for the fair value of a conditional asset retirement obligation if the fair value of the liability can be reasonably estimated. Asset retirement obligations were not material as of December 31, 2015 and 2014 . Leases Total rental expense under operating leases was in $25.7 million 2015 , $24.7 million in 2014 and $23.2 million in 2013 . The minimum annual rentals on non-cancelable, long-term, operating leases in effect at December 31, 2015 are expected to approximate $13.3 million in 2016 , $10.3 million in 2017 , $8.7 million in 2018 , $6.7 million in 2019 , $4.5 million in 2020 and $13.3 million thereafter. The Company’s leases primarily consist of operating leases for buildings or equipment. The terms for building leases typically range from 5 -25 years with 5 -10 year renewal periods. |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Capital Stock | Capital Stock Activity in the Company’s common shares outstanding is set forth below for the three years ended December 31, 2015 (in thousands): Common Stock Class A Class B Common Stock OUTSTANDING AT DECEMBER 31, 2012 7,167 52,069 — Exercise of stock options/stock appreciation rights — 157 — Director compensation arrangements, net — 16 — Restricted/performance shares activity, net of forfeitures — 138 — Acquisition/surrender of shares — (375 ) — OUTSTANDING AT DECEMBER 31, 2013 7,167 52,005 — Exercise of stock options/stock appreciation rights — 155 — Director compensation arrangements, net — 13 — Restricted/performance shares activity, net of forfeitures — 136 — Acquisition/surrender of shares — (980 ) — OUTSTANDING AT DECEMBER 31, 2014 7,167 51,329 — Exercise of stock options/stock appreciation rights — 29 Director compensation arrangements, net — 17 Restricted/performance shares activity, net of forfeitures — 122 Acquisition/surrender of shares — (708 ) (119 ) Share reclassification (7,167 ) (50,789 ) 57,956 OUTSTANDING AT DECEMBER 31, 2015 — — 57,837 On December 23, 2015, the Company completed the reclassification of its dual-class common stock into a single class of Common Stock (the “Reclassification”). The Reclassification, among other benefits, simplified the Company's capital structure, better aligned voting rights with economic interests of all shareholders, and has eliminated the ability of the Louie E. Roche Trust and the Harvey Hubbell Trust (collectively, the “Trusts”), which, prior to the Reclassification, collectively owned 3,488,460 shares of the Company’s Class A common stock, par value $0.01 per share (the “Class A common stock”), representing approximately 49% of Class A common stock then outstanding, and approximately 36% of the total voting power of the Company's shareholders, to effectively prevent the approval of any matter that comes before the shareholders that requires, under Connecticut law, the approval of holders of two-thirds of the Company's outstanding common stock. Following the filing of the Amended and Restated Certificate of Incorporation of the Company with the Secretary of the State of the State of Connecticut, the Reclassification became effective at 11:59 p.m. on December 23, 2015 (the “Effective Time”), at which time (i) each holder of Class A common stock as of immediately prior to the Effective Time became entitled to receive cash in the amount of $28.00 for each share of Class A common stock held ("Class A Cash Consideration") and (ii) each share of Class A common stock issued and outstanding immediately prior to the Effective Time and each share of Class B common stock of the Company, par value $0.01 per share (the “Class B common stock”), issued and outstanding immediately prior to the Effective Time was reclassified into one share of common stock of the Company, par value $0.01 per share and having one vote per share upon all matters brought before any meeting of the shareholders (the “Common Stock”). Trading in the Class A Common Stock and Class B Common Stock ceased after markets closed on December 23, 2015 and trading in the Company's single class of Common Stock commenced on the NYSE on December 24, 2015, under the ticker “HUBB.” Prior to the Reclassification, shares of Class A common stock had twenty votes per share, while shares of Class B common shares had one vote per share. Following the Reclassification, shares of the Company's Common Stock have one vote per share. In addition, the Company has 5.9 million authorized shares of preferred stock; no shares of preferred stock are outstanding. The Company has accounted for the Reclassification by adjusting the Company’s capital stock accounts. The par value of the Class A common stock and the Class B common stock has been reclassified to Common Stock par value. Paid-in capital of the Class A Common Stock is zero at the time of the Reclassification and, therefore, the full amount of the Class A Cash Consideration paid in the Reclassification has been applied as a reduction to retained earnings. In the third quarter of 2015 the Company incurred $7.4 million of costs related to the Reclassification (the "Reclassification Costs"), primarily consisting of professional fees. Reclassification Costs are recognized in Other expense, net in the Condensed Consolidated Statement of Income. Certain other Reclassification Costs of $12.3 million , including additional professional fees and the reimbursement of certain costs of the Trustee, were contingent upon closing the Reclassification and were recognized in the fourth quarter of 2015. Total Reclassification Costs incurred in 2015 were $19.7 million . For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against Common Stock par value, Additional paid-in capital and Retained earnings to the extent required. Shares may be repurchased through the Company’s stock repurchase program, acquired by the Company from employees under the Hubbell Incorporated Stock Option Plan for Key Employees (the “Option Plan”) or surrendered to the Company by employees in settlement of their minimum tax liability on vesting of restricted shares and performance shares under the Hubbell Incorporated 2005 Incentive Award Plan as amended and restated, (the “Award Plan”). The Company is party to a Second Amended and Restated Rights Agreement, dated December 23, 2015 (the "Rights Agreement"), between the Company and Computershare Inc. (successor to Mellon Investor Services, L.L.C.), as rights agent, under which holders of Common Stock have a preferred share purchase right for each share of Common Stock (the “Rights”). These Rights become exercisable after a specified period of time upon the occurrence of specified trigger events, including if a person or group of affiliated persons obtains beneficial ownership of 15 percent or more of the outstanding Common Stock. Each Right entitles the holder to purchase from the Company one one-thousandth of a share of Series A Junior Participating Preferred Stock (“Preferred Stock”), without par value, at a price of $300.00 per one one-thousandth of a share. The Rights may be redeemed by the Company for one cent per Right, subject to the terms and conditions of the Rights Agreement. The Rights will expire at the close of business on December 17, 2016 (the “Final Expiration Date”), unless the Final Expiration Date is advanced or extended or unless the Rights are earlier redeemed or exchanged by the Company. The value of a one one-thousandth interest in a share of Preferred Stock should approximate the value of one share of Common Stock. Each one one-thousandth of a share of Preferred Stock, if issued: ◦ will not be redeemable; ◦ will entitle holders to quarterly dividend payments of $0.01 per one one-thousandth share, or an amount equal to the dividend paid on one share of Common Stock, whichever is greater; ◦ will entitle holders upon liquidation either to receive $0.10 per one one-thousandth share, or an amount equal to the payment made on one share of Common Stock, whichever is greater; ◦ will have the same voting power as one share of Common Stock; ◦ in the event that shares of the Common Stock are exchanged via share exchange, merger or a similar transaction, will entitle holders to a per share payment equal to the payment made on one share of Common Stock. These rights are protected by customary antidilution provisions. Upon the occurrence of certain events or transactions specified in the Rights Agreement, each holder of a Right will have the right to receive, upon exercise, that number of shares of the Company’s common stock or the acquiring company’s shares having a market value equal to twice the exercise price. Shares of the Company’s common stock were reserved at December 31, 2015 as follows (in thousands): Common Stock Preferred Stock Future grant of stock-based compensation 3,756 — Exercise of stock purchase rights — 58 Shares reserved under other equity compensation plans 174 — TOTAL 3,930 58 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of December 31, 2015 , 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. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The Company’s long-term incentive program for awarding stock-based compensation uses a combination of restricted stock, stock appreciation rights (“SARs”), and performance shares of the Company’s Common Stock pursuant to the Award Plan. The Award Plan was amended and restated during 2015 to add an additional 2.8 million shares. Under the Award Plan, the Company may authorize up to 9.7 million shares of Common Stock in settlement of restricted stock, performance shares, SARs or any-post 2004 grants of stock options. The Company issues new shares for settlement of any stock-based awards. In 2015 , the Company granted stock-based awards using a combination of restricted stock, SARs and performance shares. On December 23, 2015, the Company completed the reclassification of its dual-class common stock into a single class of Common Stock (the “Reclassification”), as more fully described in Note 16 - Capital Stock. At the effective time of the Reclassification, each outstanding stock-based award granted under the Award Plan was adjusted by substituting, on a one for one basis, shares of Common Stock for shares of Class B Common Stock. In 2015 , 2014 , and 2013 , the Company recorded $17.0 million , $16.4 million and $14.3 million of stock-based compensation costs, respectively. The total income tax benefit/(expense) recognized in 2015 was $(0.3) million , $7.8 million during 2014 , and $8.3 million during 2013 . The net tax windfall recorded as a result of exercise or vesting (depending on the type of award) was $0.9 million , $9.2 million , and $8.4 million for the years ended December 31, 2015 , 2014 and 2013 , respectively. As of December 31, 2015 , there was $29.3 million , pretax, of total unrecognized compensation cost related to non-vested share-based compensation arrangements. This cost is expected to be recognized through 2018 . Stock-based compensation expense is recorded in S&A expense as well as Cost of goods sold. Of the total 2015 expense, $16.2 million was recorded to S&A expense and $0.8 million was recorded to Cost of goods sold. In 2014 and 2013 , $15.7 million and $13.4 million , respectively, was recorded to S&A expense and $0.7 million in 2014 and $0.9 million in 2013 , was recorded to Cost of goods sold. Stock-based compensation costs capitalized to inventory was $0.2 million in 2015 , 2014 and 2013 . Each of the compensation arrangements is discussed below. Restricted Stock The Company issues several types of restricted stock awards all of which are considered outstanding at the time of grant, as the award holders are entitled to dividends and voting rights. Unvested restricted stock awards are considered participating securities in computing earnings per share. Restricted stock granted is not transferable and is subject to forfeiture in the event of the recipient’s termination of employment prior to vesting. Restricted stock Issued to Employees - Service Condition Service-based restricted stock awards are expensed on a straight-line basis over the requisite service period. The restricted stock vests in one-third increments annually for three years on each anniversary of the date of grant. The restricted stock fair values are measured using the average between the high and low trading prices of the Company’s common stock on the most recent trading day immediately preceding the grant date (“measurement date”). Restricted stock Issued to Employees - Market Condition Certain restricted stock awards issued in 2014 and 2015 will vest subject to the achievement of a market-based condition. The awards are expensed on a straight-line basis over the requisite service period which starts on the date of the grant and ends upon the completion of the performance period. Expense is recognized irrespective of the market condition being achieved. The market-based condition 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 and is measured over a three year performance period beginning on January 1st of the first year and ending on December 31st of the third year. The awards will vest contingent upon achievement of the market condition, service through the requisite service period or the retirement-eligibility date, and upon approval by the Company's Compensation Committee. If the market-based condition is achieved, the awards will vest at 100% of the restricted stock awards granted. If the market-based condition is not achieved the awards will not vest. The fair value of these awards was determined based upon a lattice model. The following table summarizes the assumptions used in estimating the fair value of these awards: Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value 2015 $ 97.48 2.6 % 23.3 % 1.3 % 3 years $ 87.61 2014 $ 106.44 2.1 % 22.7 % 1.0 % 3 Years $ 95.96 Restricted stock Issued to Employees - Performance Condition Certain restricted stock issued in 2013 will vest subject to the achievement of an annual performance-based condition. The awards vest in one-third increments for each of the years ending December 31, 2014, 2015 and 2016, contingent upon meeting the annual performance condition, and upon approval by the Company’s Compensation Committee. These awards are expensed on a graded basis over the requisite service period. The probability of vesting is reassessed each reporting period and compensation cost is adjusted accordingly. The fair value of the award is measured based upon the average between the high and low trading prices of the Company’s common stock on the measurement date. The performance condition for the year ending December 31, 2015 was met and 8,451 shares vested and were approved by the Compensation Committee in February 2016. The fair value of the shares at vesting was $0.7 million . Restricted Stock Issued to Non-employee Directors In 2015 , 2014 , and 2013 , each non-employee director received a restricted stock grant. These grants were made on the date of the annual meeting of shareholders and vested or will vest at the following year’s annual meeting of shareholders, upon a change of control or termination of service by reason of death. These shares will be subject to forfeiture if the director’s service terminates prior to the date of the next regularly scheduled annual meeting of shareholders to be held in the following calendar year. During the years 2015 , 2014 , and 2013 , the Company issued to non-employee directors 8,008 shares, 10,329 shares, and 12,474 shares, respectively. Activity related to both employee and non-employee restricted stock for the year ended December 31, 2015 is as follows (in thousands, except per share amounts): Shares Weighted Average Grant Date Fair Value/Share RESTRICTED STOCK AT DECEMBER 31, 2014 167 $ 102.22 Shares granted 96 96.26 Shares vested (77 ) 99.91 Shares forfeited (7 ) 103.46 RESTRICTED STOCK AT DECEMBER 31, 2015 179 $ 99.97 The weighted average fair value per share of restricted stock granted during the years 2015 , 2014 , and 2013 was $96.26 , $105.35 and $105.83 , respectively. The total fair value of restricted stock vested during the years 2015 , 2014 , and 2013 was $7.7 million , $7.0 million and $8.4 million , respectively. Stock Appreciation Rights SARs granted entitle the recipient to the difference between the fair market value of the Company’s Common Stock on the date of exercise and the grant price as determined using the average between the high and the low trading prices of the Company’s common stock on the measurement date. 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 their grant date and expire ten years from the grant date. Activity related to SARs for the year ended December 31, 2015 is as follows (in thousands, except per share amounts): Number of Rights Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value OUTSTANDING AT DECEMBER 31, 2014 1,465 $ 78.64 Granted 364 97.87 Exercised (102 ) 59.37 Forfeited (14 ) 104.07 Canceled (9 ) 59.50 OUTSTANDING AT DECEMBER 31, 2015 1,704 $ 83.77 7.2 $ 32,492 EXERCISABLE AT DECEMBER 31, 2015 1,101 $ 74.04 6.1 $ 31,237 The aggregated intrinsic value of SARs exercised during 2015 , 2014 , and 2013 was $4.8 million , $19.4 million and $16.4 million , respectively. The fair value of each SAR award was measured using the Black-Scholes option pricing model. The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the years 2015 , 2014 , and 2013 : Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR 2015 2.7 % 22.7 % 1.7 % 5.5 Years $ 16.05 2014 2.0 % 21.8 % 1.6 % 5.3 Years $ 18.42 2013 1.9 % 28.3 % 1.6 % 5.4 Years $ 24.58 The expected dividend yield was calculated by dividing the Company’s expected annual dividend by the average stock price for the past three months. Expected volatilities are based on historical volatilities of the Company’s stock for a period consistent with the expected term. The expected term of SARs granted was based upon historical exercise behavior of stock options and SARs. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the award. Performance Shares Performance shares represent the right to receive a share of the Company’s Common Stock after a three year period subject to the achievement of certain market or performance conditions established by the Company’s Compensation Committee. 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 December 2015 , 2014 , and 2013 , the Company granted 32,687 , 28,871 and 30,730 , respectively, of performance shares that will vest subject to a market condition and service through the performance period. The market condition associated with the awards is the Company's TSR compared to the TSR generated by the companies of a reference index over a three year performance period. Performance at target will result in vesting and issuance of the number of performance shares granted, equal to 100% payout. Performance below or above target can result in issuance in the range of 0%-200% of the number of shares granted. Expense is recognized irrespective of the market condition being achieved. In February 2015, the Company paid out 38,589 shares related to the December 2011 performance award grant. The performance period associated with this award was from January 1, 2012 through December 31, 2014 and was based upon the Company’s total TSR compared to the TSR generated by the other companies that comprise the S&P Mid-Cap 400 Index. The February 2015 payout was based upon achieving 128% of the market-based criteria. The fair value of the December 2011 performance awards at vesting was $4.4 million . In February 2016, the Company paid out 18,425 shares related to the December 2012 performance award grant. The performance period associated with this award was from January 1, 2013 through December 31, 2015 and was based upon the Company’s TSR compared to the TSR generated by the other companies that comprise the S&P Mid-Cap 400 Index. The number of shares vested in February 2016 was based upon achieving 70% of the market-based criteria and the fair value of the awards at vesting was $1.6 million . The fair value of the performance share awards with a market condition for the fiscal years 2015 , 2014 , and 2013 was determined based upon a lattice model. The following table summarizes the related assumptions used to determine the fair values of the market performance share awards granted during the years 2015 , 2014 , and 2013 : Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value 2015 $ 97.48 2.6 % 23.3 % 1.3 % 3 Years $ 105.77 2014 $ 106.44 2.1 % 22.7 % 1.0 % 3 Years $ 117.55 2013 $ 107.87 1.9 % 33.8 % 0.6 % 3 Years $ 130.33 Expected volatilities are based on historical volatilities of the Company’s stock over a three year period. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the expected term of the award. Performance Shares - Performance Condition In December 2015 and 2014 the Company granted 32,687 and 27,508 , respectively, of performance share awards that are subject to a performance condition and service requirement during the three year performance period. The performance condition associated with the awards is based on the Company's net sales growth compared to the net sales growth of the companies of a reference index, further adjusted by the Company achieving a target net income margin, each measured over the same three year performance period. Performance at target will result in vesting and 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% - 250% of the number of shares granted. The fair value of the award's is measured based upon the average between the high and low trading prices of the Company's common stock on the measurement date and the Company expenses these awards on a straight-line basis. The weighted average fair value per share was $97.48 for the awards granted in 2015. The probability of vesting is reassessed each reporting period and compensation cost is adjusted accordingly. The following table summarizes the attributes of the performance shares granted during 2015 and 2014: Year of Grant Shares Outstanding at 12/31/2015 Fair Value Performance Period Payout Range 2015 32,687 97.48 Jan 2016-Dec 2018 0-250% 2014 24,993 106.44 Jan 2015-Dec 2017 0-250% |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three years ended December 31 (in millions, except per share amounts): 2015 2014 2013 Numerator: Net income attributable to Hubbell $ 277.3 $ 325.3 $ 326.5 Less: Earnings allocated to participating securities (0.7 ) (0.9 ) (1.0 ) Net income available to common shareholders $ 276.6 $ 324.4 $ 325.5 Denominator: Average number of common shares outstanding 57.7 58.8 59.1 Potential dilutive shares 0.3 0.4 0.5 Average number of diluted shares outstanding 58.0 59.2 59.6 Earnings per share: Basic $ 4.79 $ 5.51 $ 5.51 Diluted $ 4.77 $ 5.48 $ 5.47 The Company did not have any significant anti-dilutive securities in 2015 , 2014 or 2013 . The calculation of diluted earnings per share for the year ended December 31, 2015 excludes 27,758 and 32,687 weighted average of performance shares granted in December 2014 and December 2015, respectively, that are subject to a performance condition. These shares are excluded from the calculation of 2015 diluted earnings per share because all necessary performance conditions have not been satisfied at the end of the reporting period. Refer to Note 17 - Stock-Based Compensation for further information about those awards. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss A summary of the changes in Accumulated other comprehensive loss (net of tax) for the three years ended December 31, 2015 is provided below (in millions): (Debit) credit Cash Flow Hedge (Loss) Gain Unrealized Gain (Loss) on Available-for-Sale Securities Pension and Post Retirement Benefit Plan Adjustment Cumulative Translation Adjustment Total BALANCE AT DECEMBER 31, 2012 $ (0.5 ) $ 0.7 $ (130.1 ) $ 10.8 $ (119.1 ) Other comprehensive income (loss) before Reclassifications 0.6 (0.3 ) 54.8 (15.0 ) 40.1 Amounts reclassified from accumulated other comprehensive loss (0.3 ) — 8.3 — 8.0 Current period other comprehensive income (loss) 0.3 (0.3 ) 63.1 (15.0 ) 48.1 BALANCE AT DECEMBER 31, 2013 $ (0.2 ) $ 0.4 $ (67.0 ) $ (4.2 ) $ (71.0 ) Other comprehensive income (loss) before Reclassifications 0.9 (0.1 ) (59.8 ) (35.7 ) (94.7 ) Amounts reclassified from accumulated other comprehensive loss (0.7 ) — 2.1 — 1.4 Current period other comprehensive income (loss) 0.2 (0.1 ) (57.7 ) (35.7 ) (93.3 ) BALANCE AT DECEMBER 31, 2014 $ — $ 0.3 $ (124.7 ) $ (39.9 ) $ (164.3 ) Other comprehensive income (loss) before Reclassifications 1.7 (0.3 ) (22.9 ) (45.5 ) (67.0 ) Amounts reclassified from accumulated other comprehensive loss (0.3 ) — 7.4 — 7.1 Current period other comprehensive income (loss) 1.4 (0.3 ) (15.5 ) (45.5 ) (59.9 ) BALANCE AT DECEMBER 31, 2015 $ 1.4 $ — $ (140.2 ) $ (85.4 ) $ (224.2 ) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the two years ended December 31 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components 2015 2014 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.4 $ 1.0 Cost of goods sold 0.4 1.0 Total before tax (0.1 ) (0.3 ) Tax (expense) benefit $ 0.3 $ 0.7 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.2 (a) $ 0.8 (a) Actuarial gains/(losses) (12.1 ) (a) (3.8 ) (a) (11.9 ) (3.0 ) Total before tax 4.5 0.9 Tax benefit (expense) $ (7.4 ) $ (2.1 ) (Loss) gain net of tax Losses reclassified into earnings $ (7.1 ) $ (1.4 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 10 - Retirement Benefits for additional details). |
Industry Segments and Geographi
Industry Segments and Geographic Area Information | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Industry Segments and Geographic Area Information | Industry Segments and Geographic Area Information Nature of Operations Hubbell Incorporated was founded as a proprietorship in 1888, and was incorporated in Connecticut in 1905. Hubbell designs, manufactures and sells quality electrical and electronic products for a broad range of non-residential and residential construction, industrial and utility applications. Products are either sourced complete, manufactured or assembled by subsidiaries in the United States, Canada, Switzerland, Puerto Rico, China, Mexico, Italy, the UK, Brazil, Australia and Ireland. Hubbell also participates in joint ventures in Taiwan and Hong Kong, and maintains offices in Singapore, China, India, Mexico, South Korea and countries in the Middle East. The Company’s reporting segments consist of the Electrical segment (comprised of electrical systems products and lighting products), and the Power segment, as described below. The Electrical segment is comprised of businesses that sell stock and custom products including standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, and other electrical equipment. The products are typically used in and around industrial, commercial and institutional facilities by electrical contractors, maintenance personnel, electricians, and telecommunications companies. In addition, certain businesses design and manufacture a variety of high voltage test and measurement equipment, industrial controls and communication systems used in the non-residential and industrial markets. Many of these products are designed such that they can also be used in harsh and hazardous locations where a potential for fire and explosion exists due to the presence of flammable gasses and vapors. Harsh and hazardous products are primarily used in the oil and gas (onshore and offshore) and mining industries. There are also a variety of lighting fixtures, wiring devices and electrical products that have residential and utility applications. These products are primarily sold through electrical and industrial distributors, home centers, some retail and hardware outlets, lighting showrooms and residential product oriented internet sites. Special application products are sold primarily through wholesale distributors to contractors, industrial customers and OEMs. High voltage products are also sold direct to customers through our sales engineers. The Power segment consists of operations that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical utility industry. In addition, certain of these products are used in the civil construction and transportation industries. Products are sold to distributors and directly to users such as electric utilities, telecommunication companies, mining operations, industrial firms, construction and engineering firms. Financial Information Financial information by industry segment, product class and geographic area for each of the three years ended December 31, 2015 , 2014 and 2013 is summarized below (in millions). When reading the data the following items should be noted: • Net sales comprise sales to unaffiliated customers — inter-segment and inter-area sales are not significant. • Segment operating income consists of net sales less operating expenses, including total corporate expenses, which are generally allocated to each segment on the basis of the segment’s percentage of consolidated net sales. Interest expense and investment income and other expense, net have not been allocated to segments as these items are centrally managed by the Company. • General corporate assets not allocated to segments are principally cash, prepaid pensions, investments and deferred taxes. These assets have not been allocated as they are centrally managed by the Company. INDUSTRY SEGMENT DATA 2015 2014 2013 Net Sales: Electrical $ 2,388.3 $ 2,398.2 $ 2,262.6 Power 1,002.1 961.2 921.3 TOTAL NET SALES $ 3,390.4 $ 3,359.4 $ 3,183.9 Operating Income: Electrical $ 279.0 $ 337.9 $ 341.1 Power 195.6 179.5 166.5 Operating Income $ 474.6 $ 517.4 $ 507.6 Interest expense (31.0 ) (31.2 ) (30.8 ) Investment income and other expense, net (25.0 ) (0.7 ) (3.0 ) INCOME BEFORE INCOME TAXES $ 418.6 $ 485.5 $ 473.8 Assets: Electrical $ 2,120.9 $ 1,963.0 $ 1,813.8 Power 839.7 832.0 707.0 General Corporate 248.1 525.1 663.2 TOTAL ASSETS $ 3,208.7 $ 3,320.1 $ 3,184.0 Capital Expenditures: Electrical $ 47.9 $ 35.1 $ 32.4 Power 28.4 21.8 25.0 General Corporate 0.8 3.4 1.4 TOTAL CAPITAL EXPENDITURES $ 77.1 $ 60.3 $ 58.8 Depreciation and Amortization: Electrical $ 56.2 $ 53.4 $ 48.0 Power 29.0 25.8 22.6 TOTAL DEPRECIATION AND AMORTIZATION $ 85.2 $ 79.2 $ 70.6 PRODUCT CLASS DATA 2015 2014 2013 Net Sales: Electrical Systems $ 1,476.7 $ 1,538.7 $ 1,466.4 Lighting 911.6 859.5 796.2 Power 1,002.1 961.2 921.3 TOTAL NET SALES $ 3,390.4 $ 3,359.4 $ 3,183.9 GEOGRAPHIC AREA DATA 2015 2014 2013 Net Sales: United States $ 3,008.4 $ 2,883.8 $ 2,687.6 International 382.0 475.6 496.3 TOTAL NET SALES $ 3,390.4 $ 3,359.4 $ 3,183.9 Operating Income: United States $ 426.1 $ 447.2 $ 417.5 International 48.5 70.2 90.1 TOTAL OPERATING INCOME $ 474.6 $ 517.4 $ 507.6 Long-lived Assets: United States $ 1,627.7 $ 1,492.5 $ 1,341.4 International 187.1 199.7 212.3 TOTAL LONG-LIVED ASSETS $ 1,814.8 $ 1,692.2 $ 1,553.7 On a geographic basis, the Company defines “international” as operations based outside of the United States and its possessions. As a percentage of total net sales, shipments from foreign operations directly to third parties were 11% in 2015 , 14% in 2014 and 16% in 2013 , with the Canadian and UK operations representing approximately 34% and 24% , respectively, of 2015 total international net sales. Of the remaining 2015 international sales Mexico represents 11% . while Switzerland and Brazil represent 10% each. Long-lived assets, excluding deferred tax assets, of international subsidiaries were 10% of the consolidated total in 2015 , 12% in 2014 and 14% in 2013 , with the UK, Mexico and Canada operations representing approximately 29% , 24% , and 15% , respectively, of the 2015 international total. Export sales from United States operations were $224.9 million in 2015 , $234.5 million in 2014 and $213.0 million in 2013 . |
Guarantees
Guarantees | 12 Months Ended |
Dec. 31, 2015 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees in the Consolidated Balance Sheet in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of December 31, 2015 , the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product warranties which cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known or as historical experience indicates. Changes in the accrual for product warranties in 2015 are set forth below (in millions): BALANCE AT DECEMBER 31, 2013 $ 6.6 Provision 18.3 Expenditures/other (11.2 ) BALANCE AT DECEMBER 31, 2014 $ 13.7 Provision 10.0 Expenditures/other (10.5 ) BALANCE AT DECEMBER 31, 2015 $ 13.2 |
Restructuring Costs
Restructuring Costs | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs | Restructuring Costs During 2015 , we incurred costs for restructuring actions initiated in 2015 as well as costs involving restructuring actions initiated in the prior year. Our restructuring actions are associated with cost reduction efforts that include the consolidation of manufacturing and distribution facilities as well as workforce reductions. Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Consolidated Statement of Income for the years ended December 31, 2015 and 2014 are as follows (in millions): Year Ended December 31, 2014 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 3.4 $ 1.7 $ 5.1 Power Segment — — — Total 2014 Restructuring Costs $ 3.4 $ 1.7 $ 5.1 Year Ended December 31, 2015 Electrical Segment $ 14.5 $ 7.2 $ 21.7 Power Segment 0.8 1.1 1.9 Total 2015 Restructuring Costs $ 15.3 $ 8.3 $ 23.6 The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Restructuring Balance 1/1/15 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 12/31/2015 2015 Restructuring Actions Severance $ — $ 16.1 $ (8.7 ) $ 7.4 Asset write-downs — 0.5 (0.5 ) — Facility closure and other costs — 2.6 (2.2 ) 0.4 Total 2015 Restructuring Actions $ — $ 19.2 $ (11.4 ) $ 7.8 2014 Restructuring Actions Severance $ 2.8 $ (0.1 ) $ (2.6 ) $ 0.1 Asset write-downs — 0.9 (0.9 ) — Facility closure and other costs 0.9 3.6 (4.5 ) — Total 2014 Restructuring Actions $ 3.7 $ 4.4 $ (8.0 ) $ 0.1 Total Restructuring Actions $ 3.7 $ 23.6 $ (19.4 ) $ 7.9 The actual and expected costs for our restructuring actions are as follows (in millions): Expected Costs Costs incurred in 2014 Costs incurred during 2015 Remaining costs at 12/31/15 2015 Restructuring Actions Electrical Segment $ 23.4 $ — $ 17.3 $ 6.1 Power Segment 1.9 — 1.9 — Total 2015 Restructuring Actions 25.3 — 19.2 6.1 2014 Restructuring Actions Electrical Segment 9.5 5.1 4.4 — Power Segment — — — — Total 2014 Restructuring Actions 9.5 5.1 4.4 — Total Restructuring Actions $ 34.8 $ 5.1 $ 23.6 $ 6.1 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 19, 2016, the Company acquired all of the issued and outstanding shares of capital stock of R.W. Lyall & Company, Inc. ("Lyall") for a cash purchase price of approximately $130 million . Lyall is a leader in the design and application of components and assemblies for the natural gas distribution market and will be reported in the Electrical segment. On February 4, 2016, the Company acquired all of the issued and outstanding shares of Electric Motion Company, Inc. and all of the membership interests in Elmot Realty Associates, LLC, Elmot Realty Associates II, LLC, and DelRi LLC, collectively referred to as "EMC", for a cash purchase price of approximately $43 million . EMC is a manufacturer of grounding and connector products for the communications, power, and transportation industries and will be reported in the Power segment. These acquisitions will be accounted for as business combinations whereby purchase accounting requires the assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date and goodwill and other intangible assets associated with tradenames and customer lists, among others, to be recognized. The preliminary purchase accounting for the acquisitions is not yet complete. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The table below sets forth summarized quarterly financial data for the years ended December 31, 2015 and 2014 (in millions, except per share amounts): Revised First Quarter Revised Second Quarter Revised Third Quarter Fourth Quarter 2015 Net sales $ 809.7 $ 874.0 $ 877.0 $ 829.7 Cost of goods sold $ 557.9 $ 590.9 $ 587.0 $ 562.8 Gross profit $ 251.8 $ 283.1 $ 290.0 $ 266.9 Selling & administrative expenses $ 146.8 $ 156.4 $ 159.0 $ 155.0 Net income $ 63.4 $ 81.3 $ 74.7 $ 62.7 Net Income attributable to Hubbell $ 62.4 $ 80.1 $ 73.3 $ 61.5 Earnings per share — Basic $ 1.07 $ 1.39 $ 1.27 $ 1.06 Earnings per share — Diluted $ 1.07 $ 1.37 $ 1.27 $ 1.06 Reported First Quarter Reported Second Quarter Reported Third Quarter Fourth Quarter 2014 Net sales $ 759.5 $ 855.8 $ 895.3 $ 848.8 Cost of goods sold $ 514.5 $ 563.3 $ 599.1 $ 573.5 Gross profit $ 245.0 $ 292.5 $ 296.2 $ 275.3 Selling & administrative expenses $ 140.2 $ 148.8 $ 153.4 $ 149.2 Net income $ 65.3 $ 90.8 $ 90.5 $ 80.6 Net Income attributable to Hubbell $ 64.2 $ 90.2 $ 89.6 $ 81.3 Earnings per share — Basic $ 1.08 $ 1.53 $ 1.52 $ 1.39 Earnings per share — Diluted $ 1.08 $ 1.51 $ 1.51 $ 1.38 During the fourth quarter of 2015, the Company identified a misclassification of costs between Cost goods sold and Selling & administrative expenses which occurred during the first, second and third quarters of 2015, which has resulted in management revising its previously reported financial results to correct for such misclassification as detailed in the table above. The impact of the misclassification was to overstate Selling & administrative expenses and understate Cost of goods sold by $0.9 million for the three months ended March 31, 2015, $1.0 million for the three months ended June 30, 2015, $1.9 million for the six months ended June 30, 2015, $1.1 million for the three months ended September 30, 2015 and $3.0 million for the nine months ended September 30, 2015. Accordingly, the originally reported Cost of goods sold of $557.0 million, $589.9 million, $585.9 million, the originally reported Gross profit of $252.7 million, $284.1 million, and $291.1 million, and the originally reported Selling & administrative expenses of $147.7 million, $157.4 million, $160.1 million for the three months ended March 31, June 30, and September 30, 2015, respectively, have been revised to the corrected amounts shown in the table above. Management has concluded that the misclassifications are immaterial to the previously issued quarterly financial statements. |
Valuation and Qualifying Accoun
Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Dec. 31, 2015 | |
Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts and Reserves | Valuation and Qualifying Accounts and Reserves for the Years Ended December 31, 2013 , 2014 and 2015 Reserves deducted in the balance sheet from the assets to which they apply (in millions): Balance at Beginning of Year Additions / (Reversals) Charged to Costs and Expenses Deductions Acquisitions Balance at End of Year Allowances for doubtful accounts receivable: Year 2013 $ 3.2 $ (0.2 ) $ (0.9 ) $ — $ 2.1 Year 2014 $ 2.1 $ 1.6 $ (0.3 ) $ — $ 3.4 Year 2015 $ 3.4 $ 2.7 $ (1.4 ) $ — $ 4.7 Allowance for credit memos, returns and cash discounts: Year 2013 $ 22.9 $ 208.0 $ (199.3 ) $ — $ 31.6 Year 2014 $ 31.6 $ 222.4 $ (217.3 ) $ — $ 36.7 Year 2015 $ 36.7 $ 233.2 $ (228.4 ) $ — $ 41.5 Valuation allowance on deferred tax assets: Year 2013 $ 26.1 $ 2.6 $ (0.2 ) $ — $ 28.5 Year 2014 $ 28.5 $ 4.5 $ — $ 1.3 $ 34.3 Year 2015 $ 34.3 $ (12.3 ) $ — $ — $ 22.0 |
Significant Policies (Policies)
Significant Policies (Policies) | 12 Months Ended |
Dec. 31, 2015 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include all wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated. The Company participates in two joint ventures, one of which is accounted for using the equity method, the other has been consolidated in accordance with the consolidation accounting guidance. An analysis is performed to determine which reporting entity, if any, has a controlling financial interest in a variable interest entity (“VIE”) with a primarily qualitative analysis. The qualitative analysis is based on identifying the party that has both the power to direct the activities that most significantly impact the VIE’s economic performance (the “power criterion”) and the obligation to absorb losses from or the right to receive benefits of the VIE that could potentially be significant to the VIE (the “losses/benefit criterion”). The party that meets both these criteria is deemed to have a controlling financial interest. The party with the controlling financial interest is considered to be the primary beneficiary and as a result is required to consolidate the VIE. The Company has a 50% interest in a joint venture in Hong Kong, established as Hubbell Asia Limited (“HAL”). The principal objective of HAL is to manage the operations of its wholly-owned manufacturing company in China. Under the accounting guidance, the Company is the primary beneficiary of HAL and as a result consolidates HAL. This determination is based on the fact that HAL’s sole business purpose is to manufacture product exclusively for the Company (the power criterion) and the Company is financially responsible for ensuring HAL maintains a fixed operating margin (the losses/benefit criterion). The consolidation of HAL is not material to the Company’s consolidated financial statements. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts in the Consolidated Financial Statements and accompanying Notes to Consolidated Financial Statements. Actual results could differ from the estimates that are used. |
Revenue Recognition | Revenue Recognition The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred, the price is fixed and determinable and collection is probable. Product is considered delivered to the customer once it has been shipped and title and risk of loss have been transferred. The majority of the Company’s revenue is recognized at the time of shipment. The Company recognizes less than one percent of total annual consolidated net revenue from post shipment obligations and service contracts, primarily within the Electrical segment. Revenue is recognized under these contracts when the service is completed and all conditions of sale have been met. In addition, within the Electrical segment, certain businesses sell large and complex equipment which requires construction and assembly and occasionally has long lead times. It is customary in these businesses to require a portion of the selling price to be paid in advance of construction. These payments are treated as deferred revenue and are classified in Other accrued liabilities in the Consolidated Balance Sheet. Once the equipment is shipped to the customer and meets the revenue recognition criteria, the deferred revenue is recognized in the Consolidated Statement of Income. Further, certain of our businesses provide for sales discounts and allowances based on sales volumes, specific programs and customer deductions, as is customary in the electrical products industry. These items primarily relate to sales volume incentives, special pricing allowances, and returned goods. Sales volume incentives represent rebates with specific sales volume targets for specific customers. Certain distributors qualify for price rebates by subsequently reselling the Company’s products into select channels of end users. Following a distributor’s sale of an eligible product, the distributor submits a claim for a price rebate. Customers also have a right to return goods under certain circumstances which are reasonably estimable by affected businesses. Customer returns have historically ranged from 1% - 3% of gross sales. These arrangements require us to estimate at the time of sale the amounts that should not be recorded as revenue as these amounts are not expected to be collected from customers. The Company principally relies on historical experience, specific customer agreements and anticipated future trends to estimate these amounts at the time of shipment. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs The Company records shipping and handling costs as part of Cost of goods sold in the Consolidated Statement of Income. Any amounts billed to customers for reimbursement of shipping and handling are included in Net sales in the Consolidated Statement of Income. |
Foreign Currency Translation | Foreign Currency Translation The assets and liabilities of international subsidiaries are translated to U.S. dollars at exchange rates in effect at the end of the year, and income and expense items are translated at average exchange rates in effect during the year. The effects of exchange rate fluctuations on the translated amounts of foreign currency assets and liabilities are included as translation adjustments in Accumulated other comprehensive loss within Hubbell shareholders’ equity. Gains and losses from foreign currency transactions are included in results of operations. |
Cash and Cash Equivalents | Cash and Cash Equivalents The carrying value of cash equivalents approximates fair value. Cash equivalents consist of highly liquid investments with original maturities to the Company of three months or less. |
Investments | Investments Investments in debt and equity securities are classified by individual security as available-for-sale, held-to-maturity or trading investments. Our available-for-sale investments, consisting of municipal bonds and the redeemable preferred stock of a privately held company , are carried on the balance sheet at fair value with current period adjustments to carrying value recorded in Accumulated other comprehensive loss within Hubbell shareholders’ equity, net of tax. Realized gains and losses are recorded in income in the period of sale. The Company’s trading investments are carried on the balance sheet at fair value and consist primarily of debt and equity mutual funds. Gains and losses associated with these trading investments are reflected in the results of operations. |
Accounts Receivable and Allowances | Accounts Receivable and Allowances Trade accounts receivable are recorded at the invoiced amount and generally do not bear interest. The allowance for doubtful accounts is based on an estimated amount of probable credit losses in existing accounts receivable. The allowance is calculated based upon a combination of historical write-off experience, fixed percentages applied to aging categories and specific identification based upon a review of past due balances and problem accounts. Account balances are charged off against the allowance when it is determined that internal collection efforts should no longer be pursued. The Company also maintains a reserve for credit memos, cash discounts and product returns which are principally calculated based upon historical experience, specific customer agreements, as well as anticipated future trends. |
Inventories | Inventories Inventories are stated at the lower of cost or market value. Approximately 75% of total net inventory value is determined utilizing the last-in, first-out (LIFO) method of inventory accounting. The cost of foreign inventories and certain domestic inventories is determined utilizing average cost or first-in, first-out (FIFO) methods of inventory accounting. Reserves for excess and obsolete inventory are provided based on current assessments about future demand compared to on-hand quantities. |
Property, Plant and Equipment | Property, Plant, and Equipment Property, plant, and equipment values are stated at cost less accumulated depreciation. Maintenance and repair expenditures that do not significantly increase the life of an asset are charged to expense when incurred. Property, plant, and equipment placed in service prior to January 1, 1999 are depreciated over their estimated useful lives, principally using accelerated methods. Assets placed in service subsequent to January 1, 1999 are depreciated over their estimated useful lives, using straight-line methods. Leasehold improvements are amortized over the shorter of their economic lives or the lease term. Gains and losses arising on the disposal of property, plant and equipment are included in Operating income in the Consolidated Statement of Income. |
Capitalized Computer Software Costs | Capitalized Computer Software Costs Capitalized computer software costs, net of amortization, were $ 12.4 million and $12.7 million at December 31, 2015 and 2014 , respectively. This balance is reflected in Other long-term assets in the Consolidated Balance Sheet. Capitalized computer software is for internal use and costs primarily consist of purchased materials and services. Software is amortized on a straight-line basis over appropriate periods, generally five years. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill represents purchase price in excess of fair values of the underlying net assets of acquired companies. Indefinite-lived intangible assets and goodwill are subject to annual impairment testing using the specific guidance and criteria described in the accounting guidance. The Company performs its goodwill impairment testing as of April 1 st of each year, unless circumstances dictate the need for more frequent assessments. The accounting guidance provides entities an option of performing a qualitative assessment before performing a quantitative analysis. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the goodwill is not impaired, the entity would not need to proceed to the two step goodwill impairment testing process as prescribed in the guidance. The Company elected to bypass the qualitative assessment and proceeded directly to the quantitative analysis. Step 1 compares the fair value of the Company’s reporting units to their carrying values. If the fair value of the reporting unit exceeds its carrying value, no further analysis is necessary. If the carrying value of the reporting unit exceeds its fair value, Step 2 must be completed to quantify the amount of impairment. Goodwill impairment testing requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units and determining the fair value of each reporting unit. Significant judgments required to estimate the fair value of reporting units include estimating future cash flows, determining appropriate discount rates and other assumptions. The Company uses internal discounted cash flow estimates to determine fair value. These cash flow estimates are derived from historical experience and future long-term business plans and the application of an appropriate discount rate. Changes in these estimates and assumptions could materially affect the determination of fair value and/or goodwill impairment for each reporting unit. The Company’s estimated aggregate fair value of its reporting units are reasonable when compared to the Company’s market capitalization on the valuation date. As of April 1, 2015 , the impairment testing resulted in implied fair values for each reporting unit that exceeded the reporting unit’s carrying value, including goodwill. The Company did not have any reporting units at risk of failing Step 1 of the impairment test as the excess of the estimated fair value over carrying value (expressed as a percentage of carrying value) ranged from approximately 100% to approximately 300% for the respective reporting units. Additionally, the Company did not have any reporting units with zero or negative carrying amounts. The Company has not recorded any goodwill impairments since the initial adoption of the accounting guidance in 2002. The Company’s intangible assets consist primarily of patents, tradenames and customer relationships. Intangible assets with definite lives are being amortized over periods generally ranging from 5 - 30 years. These definite lived intangibles are tested for impairment whenever events or circumstances indicate that the carrying amount of an asset (asset group) may not be recoverable. An impairment loss is recognized when the carrying amount of an asset exceeds the estimated undiscounted cash flows used in determining the fair value of the asset. The Company did not record any impairments related to its definite lived intangible assets in 2015 , 2014 or 2013 . The Company also has some tradenames that are considered to be indefinite-lived intangible assets. These indefinite-lived are not amortized and are tested for impairment annually, unless circumstances dictate the need for more frequent assessment. The accounting guidance related to testing indefinite-lived intangible assets for impairment provides entities an option of performing a qualitative assessment before calculating the fair value of the asset. If the entity determines, on the basis of certain qualitative factors, that it is more-likely-than-not that the asset is not impaired, the entity would not need to calculate the fair value of the asset. |
Other Long-Lived Assets | Other Long-Lived Assets The Company reviews depreciable long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount may not be fully recoverable. If such a change in circumstances occurs, the related estimated future undiscounted cash flows expected to result from the use of the asset group and its eventual disposition is compared to the carrying amount. If the sum of the expected cash flows is less than the carrying amount, an impairment charge is recorded. The impairment charge is measured as the amount by which the carrying amount exceeds the fair value of the asset. The fair value of impaired assets is determined using expected cash flow estimates, quoted market prices when available and appraisals as appropriate. |
Accrued Insurance | Accrued Insurance The Company retains a significant portion of the risks associated with workers’ compensation, medical, automobile and general liability insurance. The Company estimates self-insurance liabilities using a number of factors, including historical claims experience, demographic factors, severity factors and other actuarial assumptions. The accrued liabilities associated with these programs are based on the Company’s estimate of the ultimate costs to settle known claims as well as claims incurred but not reported as of the balance sheet date. The Company periodically reviews the assumptions with a third party actuary to determine the adequacy of these self-insurance reserves. |
Income Taxes | Income Taxes The Company operates within multiple taxing jurisdictions and is subject to audit in these jurisdictions. The IRS and other tax authorities routinely review the Company’s tax returns. These audits can involve complex issues which may require an extended period of time to resolve. The Company makes adequate provisions for best estimates of exposures on previously filed tax returns. Deferred income taxes are recognized for the tax consequence of differences between financial statement carrying amounts and the tax basis of assets and liabilities by applying the currently enacted statutory tax rates in accordance with the accounting guidance for income taxes. The effect of a change in statutory tax rates is recognized in the period that includes the enactment date. Additionally, deferred tax assets are required to be reduced by a valuation allowance if it is more-likely-than-not that some portion or all of the deferred tax asset will not be realized. The Company uses factors to assess the likelihood of realization of deferred tax assets such as the forecast of future taxable income and available tax planning strategies that could be implemented to realize the deferred tax assets. In addition, the accounting guidance prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of the tax position taken or expected to be taken in a tax return. For any amount of benefit to be recognized, it must be determined that it is more-likely-than-not that a tax position will be sustained upon examination by taxing authorities based on the technical merits of the position. The amount of benefit to be recognized is based on the Company’s assertion of the most likely outcome resulting from an examination, including resolution of any related appeals or litigation processes. Companies are required to reflect only those tax positions that are more-likely-than-not to be sustained. See also Note 12 — Income Taxes. |
Research and Development | Research and Development Research and development expenditures represent costs to discover and/or apply new knowledge in developing a new product, process, or in bringing about a significant improvement to an existing product or process. Research and development expenses are recorded as a component of Cost of goods sold. |
Retirement Benefits | Retirement Benefits The Company maintains various defined benefit pension plans for some of its U.S. and foreign employees. The accounting guidance for retirement benefits requires the Company to recognize the funded status of its defined benefit pension and postretirement plans as an asset or liability in the Consolidated Balance Sheet. Gains or losses, prior service costs or credits, and transition assets or obligations that have not yet been included in net periodic benefit cost as of the end of the year are recognized as components of Accumulated other comprehensive loss, net of tax, within Hubbell shareholders’ equity. The Company’s policy is to fund pension costs within the ranges prescribed by applicable regulations. In addition to providing defined benefit pension benefits, the Company provides health care and life insurance benefits for some of its active and retired employees. The Company’s policy is to fund these benefits through insurance premiums or as actual expenditures are made. See also Note 10 — Retirement Benefits. |
Earnings Per Share | Earnings Per Share The earnings per share accounting guidance requires use of the two-class method in determining earnings per share. The two-class method is an earnings allocation formula that determines earnings per share for common stock and participating securities. Restricted stock granted by the Company is considered a participating security since it contains a non-forfeitable right to dividends. Basic earnings per share is calculated as net income available to common shareholders divided by the weighted average number of shares of common stock outstanding. Earnings per diluted share is calculated as net income available to common shareholders divided by the weighted average number of shares outstanding of common stock plus the incremental shares outstanding assuming the exercise of dilutive stock options, stock appreciation rights and performance shares. See also Note 18 — Earnings Per Share. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the grant-date fair value of all stock-based awards on a straight-line basis over their respective requisite service periods (generally equal to an award’s vesting period), except for certain restricted stock awards granted in 2013 with a performance condition, which are expensed using the graded vesting attribution method. A stock-based award is considered vested for expense attribution purposes when the retention of the award is no longer contingent on providing subsequent service. Accordingly, the Company recognizes compensation cost immediately for awards granted to retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The expense is recorded in Cost of goods sold and S&A expense in the Consolidated Statement of Income based on the recipients’ respective functions within the organization. The Company records deferred tax assets for awards that will result in deductions on its tax returns, based upon the amount of compensation cost recognized and the statutory tax rate in the jurisdiction in which it will receive a deduction. Differences between the deferred tax assets recognized for financial reporting purposes and the actual tax deduction reported in the Company’s tax return are recorded to Additional paid-in capital to the extent that previously recognized credits to paid-in capital are still available. See also Note 17 — Stock-Based Compensation. |
Derivatives | Derivatives In order to limit financial risk in the management of its assets, liabilities and debt, the Company may use derivative financial instruments such as foreign currency hedges, commodity hedges, interest rate hedges and interest rate swaps. All derivative financial instruments are matched with an existing Company asset, liability or proposed transaction. The Company does not speculate or use leverage when trading a derivative product. Market value gains or losses on the derivative financial instrument are recognized in income when the effects of the related price changes of the underlying asset or liability are recognized in income. See Note 14 – Fair Value Measurement for more information regarding our derivative instruments. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In November 2015, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update (ASU 2015-17) requiring all deferred tax assets and liabilities, along with any related valuation allowance, be classified as non-current on the balance sheet. As a result, each jurisdiction will now only have one net non-current deferred tax asset or liability. The new guidance is effective for fiscal years beginning after December 15, 2016, and early adoption is permitted. ASU 2015-17 was prospectively adopted by the Company effective December 31, 2015. The adoption resulted in the reclassification of $52.4 million from current deferred taxes to non-current deferred taxes for 2015. As permitted by this ASU, no prior periods were adjusted. See also Note 12 -- Income Taxes. In September 2015, the FASB issued an Accounting Standards Update (ASU 2015-16) relating to measurement-period adjustments in business combinations. The new standard eliminates the requirement for retrospective treatment of measurement-period adjustments in a business combination. Instead, a measurement-period adjustment will be recognized in the period in which the adjustment is determined. The update is effective for fiscal years beginning after December 15, 2015 and early adoption is permitted. ASU 2015-16 was adopted by the Company in 2015 and had no material impact on its financial statements. In May 2015, the FASB issued an Accounting Standards Update (ASU 2015-07) relating to investments in certain entities that calculate net asset value per share (or its equivalent). Under the new guidance, investments measured at net asset value (“NAV”), as a practical expedient for fair value, are excluded from the fair value hierarchy. The new guidance is effective in 2016 for calendar year-end public business entities and early adoption is permitted. ASU 2015-07 was adopted by the Company effective December 31, 2015 and the adoption of this standard had no material impact on its financial statements. In April of 2015, the FASB issued an Accounting Standards Update (ASU 2015-03) relating to the presentation of debt issuance costs. ASU 2015-03 requires costs incurred to issue debt to be presented in the balance sheet as a direct deduction from the carrying value of the debt, rather than as a deferred charge. The new guidance is effective for fiscal years beginning after December 15, 2015. Early adoption is permitted and, when adopted, the guidance must be applied on a retrospective basis. ASU 2015-03 was adopted by the Company effective December 31, 2015 and the adoption had no material impact on its financial statements. In February 2015, the FASB amended the current consolidation guidance. The new guidance will impact the determination of whether an entity is a variable interest entity ("VIE") and when a company holds a variable interest in a VIE by introducing specific amendments relating to limited partnerships, outsourced decision makers and service providers, and related parties. The guidance is effective for annual and interim periods beginning after December 2015. The Company does not expect adoption of this guidance will have a material impact on its financial statements. In May 2014, the FASB issued new revenue recognition guidance that supersedes the existing revenue recognition guidance and most industry-specific guidance applicable to revenue recognition. According to the new guidance an entity will apply a principles-based five step model to recognize revenue upon the transfer of promised goods or services to customers and in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. The guidance was proposed to be effective for annual periods beginning after December 15, 2016, including interim periods within that reporting period and early application is not permitted. On July 9, 2015, the FASB deferred the effective date of the new revenue recognition standard by one year. This means it is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017 with earlier application permitted only as of annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The Company is currently assessing the impact of adopting this standard on its financial statements. |
Business Acquisitions (Table)
Business Acquisitions (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Business Combinations [Abstract] | |
Summary of the Preliminary Fair Values of the Assets Acquired and Liabilities Assumed | The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition related to these transactions (in millions): Tangible assets acquired $ 36.8 Intangible assets 81.7 Goodwill 55.3 Liabilities assumed (10.6 ) TOTAL CASH CONSIDERATION 163.2 |
Receivables and Allowances (Tab
Receivables and Allowances (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | |
Schedule of Components of Receivables and Allowances | Receivables consist of the following components at December 31, (in millions): 2015 2014 Trade accounts receivable $ 491.5 $ 494.0 Non-trade receivables 21.3 15.9 Accounts receivable, gross 512.8 509.9 Allowance for credit memos, returns and cash discounts (41.5 ) (36.7 ) Allowance for doubtful accounts (4.7 ) (3.4 ) Total allowances (46.2 ) (40.1 ) ACCOUNTS RECEIVABLE, NET $ 466.6 $ 469.8 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories are classified as follows at December 31, (in millions): 2015 2014 Raw material $ 167.5 $ 153.8 Work-in-process 99.6 94.8 Finished goods 342.6 277.6 609.7 526.2 Excess of FIFO over LIFO cost basis (69.7 ) (84.4 ) INVENTORIES, NET $ 540.0 $ 441.8 |
Goodwill and Other Intangible39
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | Changes in the carrying amounts of goodwill for the years ended December 31, 2015 and 2014 , by segment, were as follows (in millions): Segment Electrical Power Total BALANCE AT DECEMBER 31, 2013 $ 520.9 $ 279.5 $ 800.4 Current year acquisitions 53.5 27.4 80.9 Foreign currency translation and prior year acquisitions (5.5 ) (1.1 ) (6.6 ) BALANCE AT DECEMBER 31, 2014 $ 568.9 $ 305.8 $ 874.7 Current year acquisitions 43.3 12.0 55.3 Foreign currency translation and prior year acquisitions (1.0 ) (0.5 ) (1.5 ) BALANCE AT DECEMBER 31, 2015 $ 611.2 $ 317.3 $ 928.5 |
Schedule of Identifiable Intangible Assets | Identifiable intangible assets are recorded in Intangible assets, net in the Consolidated Balance Sheet. Identifiable intangible assets are comprised of the following (in millions): December 31, 2015 December 31, 2014 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 133.8 $ (38.0 ) $ 125.1 $ (32.5 ) Customer/agent relationships and other 331.2 (108.3 ) 263.0 (87.8 ) TOTAL DEFINITE-LIVED INTANGIBLES 465.0 (146.3 ) 388.1 (120.3 ) Indefinite-lived: Tradenames and other 53.5 — 55.0 — TOTAL INTANGIBLE ASSETS $ 518.5 $ (146.3 ) $ 443.1 $ (120.3 ) |
Investment (Table)
Investment (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Investments [Abstract] | |
Schedule of Investments, Amortized Cost Basis | The following table sets forth selected data with respect to the Company’s investments at December 31, (in millions): 2015 2014 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Carrying Value Available-for-sale investments $ 51.9 $ 0.5 $ (0.4 ) $ 52.0 $ 52.0 $ 42.5 $ 0.6 $ (0.1 ) $ 43.0 $ 43.0 Trading investments 7.3 2.4 — 9.7 9.7 6.6 2.3 — 8.9 8.9 TOTAL INVESTMENTS $ 59.2 $ 2.9 $ (0.4 ) $ 61.7 $ 61.7 $ 49.1 $ 2.9 $ (0.1 ) $ 51.9 $ 51.9 |
Schedule of Contractual Maturities of Available-For-Sale Investments | Contractual maturities of available-for-sale investments at December 31, 2015 were as follows (in millions): Amortized Cost Fair Value Available-for-sale investments Due within 1 year $ 12.2 $ 12.2 After 1 year but within 5 years 32.5 32.5 After 5 years but within 10 years 7.2 7.3 Due after 10 years — — TOTAL $ 51.9 $ 52.0 |
Property, Plant and Equipment (
Property, Plant and Equipment (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant, and Equipment | Property, plant, and equipment, carried at cost, is summarized as follows at December 31, (in millions): 2015 2014 Land $ 42.5 $ 43.1 Buildings and improvements 259.4 252.8 Machinery, tools, and equipment 761.7 740.7 Construction-in-progress 37.5 20.8 Gross property, plant, and equipment 1,101.1 1,057.4 Less accumulated depreciation (681.4 ) (656.2 ) NET PROPERTY, PLANT, AND EQUIPMENT $ 419.7 $ 401.2 |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Accrued Liabilities [Abstract] | |
Schedule of Other Accrued Liabilities | Other accrued liabilities consists of the following at December 31, (in millions): 2015 2014 Customer program incentives $ 40.7 $ 40.5 Accrued income taxes 2.1 5.8 Deferred revenue 15.0 18.2 Other 81.9 65.5 TOTAL $ 139.7 $ 130.0 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Table) | 12 Months Ended |
Dec. 31, 2015 | |
Other Liabilities, Noncurrent [Abstract] | |
Schedule of Other Noncurrent Liabilities | Other non-current liabilities consists of the following at December 31, (in millions): 2015 2014 Pensions $ 150.7 $ 137.1 Other post-employment benefits 24.3 24.3 Deferred tax liabilities 36.1 74.5 Other 49.6 54.4 TOTAL $ 260.7 $ 290.3 |
Retirement Benefits (Tables)
Retirement Benefits (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Schedule of Changes in Benefit Obligation and the Plan Assets | The following table sets forth the reconciliation of beginning and ending balances of the benefit obligations and the plan assets for the Company’s defined benefit pension and other benefit plans at December 31, (in millions): Pension Benefits Other Benefits 2015 2014 2015 2014 Change in benefit obligation Benefit obligation at beginning of year $ 976.3 $ 828.2 $ 26.7 $ 28.1 Service cost 17.7 15.1 0.1 0.1 Interest cost 40.5 40.9 1.0 1.1 Plan participants’ contributions 0.7 0.7 — Amendments — — — Actuarial loss (gain) (46.6 ) 135.1 0.5 1.6 Currency impact (6.7 ) (6.0 ) — Other (1.4 ) (0.6 ) (0.1 ) (2.2 ) Benefits paid (68.2 ) (37.1 ) (1.6 ) (2.0 ) Benefit obligation at end of year $ 912.3 $ 976.3 $ 26.6 $ 26.7 Change in plan assets Fair value of plan assets at beginning of year $ 835.7 $ 764.0 $ — $ — Actual return on plan assets (31.8 ) 87.1 — — Employer contributions 27.9 27.6 — — Plan participants’ contributions 0.7 0.7 — — Currency impact (6.7 ) (6.6 ) — — Benefits paid (68.2 ) (37.1 ) — — Fair value of plan assets at end of year $ 757.6 $ 835.7 $ — $ — FUNDED STATUS $ (154.7 ) $ (140.6 ) $ (26.6 ) $ (26.7 ) Amounts recognized in the consolidated balance sheet consist of: Prepaid pensions (included in Other long-term assets) $ 1.4 $ 1.0 $ — $ — Accrued benefit liability (short-term and long-term) (156.1 ) (141.6 ) (26.6 ) (26.7 ) NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET $ (154.7 ) $ (140.6 ) $ (26.6 ) $ (26.7 ) Amounts recognized in Accumulated other comprehensive loss (income) consist of: Net actuarial loss $ 221.5 $ 196.4 $ 1.4 $ 0.7 Prior service cost (credit) 0.6 0.8 (4.2 ) (5.2 ) NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS $ 222.1 $ 197.2 $ (2.8 ) $ (4.5 ) |
Summary of Accumulated Benefit Obligations in Excess of Plan Assets | Information with respect to plans with accumulated benefit obligations in excess of plan assets is as follows, (in millions): 2015 2014 Projected benefit obligation $ 807.9 $ 266.5 Accumulated benefit obligation $ 757.6 $ 261.1 Fair value of plan assets $ 655.3 $ 168.9 |
Schedule of the Components of Pension and Other Benefit Costs | The following table sets forth the components of pension and other benefit costs for the years ended December 31, (in millions): Pension Benefits Other Benefits 2015 2014 2013 2015 2014 2013 Components of net periodic benefit cost: Service cost $ 17.7 $ 15.1 $ 16.7 $ 0.1 $ 0.1 $ — Interest cost 40.5 40.9 36.5 1.0 1.1 1.1 Expected return on plan assets (53.2 ) (45.2 ) (46.7 ) — — Amortization of prior service cost (credit) 0.2 0.2 0.2 (1.0 ) (1.0 ) (1.0 ) Amortization of actuarial losses (gains) 12.1 3.9 13.8 (0.1 ) (0.1 ) (0.1 ) Other — — — — (2.2 ) — Curtailment and settlement losses (gains) — — — — — — Net periodic benefit cost (credit) $ 17.3 $ 14.9 $ 20.5 $ — $ (2.1 ) $ — Changes recognized in other comprehensive loss (income), before tax: Current year net actuarial loss (gain) $ 37.0 $ 93.1 $ (87.8 ) $ 0.5 $ 1.5 $ (1.4 ) Current year prior service credit — — 0.4 — — Amortization of prior service (cost) credit (0.2 ) (0.2 ) (0.2 ) 1.0 1.0 1.0 Amortization of net actuarial (losses) gains (12.1 ) (3.9 ) (13.8 ) 0.1 0.1 0.1 Currency impact (0.1 ) — (0.1 ) — — — Other adjustments — — — — — — Total recognized in other comprehensive loss (income) 24.6 89.0 (101.5 ) 1.6 2.6 (0.3 ) TOTAL RECOGNIZED IN NET PERIODIC PENSION COST AND OTHER COMPREHENSIVE LOSS (INCOME) $ 41.9 $ 103.9 $ (81.0 ) $ 1.6 $ 0.5 $ (0.3 ) Amortization expected to be recognized through income during 2016 Amortization of prior service cost (credit) $ 0.1 $ (1.0 ) Amortization of net loss (gain) 13.6 — TOTAL EXPECTED TO BE RECOGNIZED THROUGH INCOME DURING NEXT FISCAL YEAR $ 13.7 $ (1.0 ) |
Schedule of Assumptions Used to Determine the Projected Benefit Obligation | The following assumptions were used to determine the projected benefit obligations at the measurement date and the net periodic benefit cost for the year: Pension Benefits Other Benefits 2015 2014 2013 2015 2014 2013 Weighted-average assumptions used to determine benefit obligations at December 31, Discount rate 4.71 % 4.23 % 5.04 % 4.60 % 4.10 % 4.60 % Rate of compensation increase 3.59 % 3.15 % 3.18 % 3.92 % 3.60 % 3.58 % Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31, Discount rate 4.23 % 5.04 % 4.22 % 4.10 % 4.60 % 4.20 % Expected return on plan assets 6.36 % 6.06 % 6.70 % N/A N/A N/A Rate of compensation increase 3.15 % 3.18 % 3.11 % 3.60 % 3.58 % 3.55 % |
Schedule of Health Care Cost Trend Rates | The assumed health care cost trend rates used to determine the projected postretirement benefit obligation are as follows: Other Benefits 2015 2014 2013 Assumed health care cost trend rates at December 31, Health care cost trend assumed for next year 7.4 % 7.6 % 7.8 % Rate to which the cost trend is assumed to decline 5.0 % 5.0 % 5.0 % Year that the rate reaches the ultimate trend rate 2028 2028 2028 |
Schedule of Effect of One-Percentage-Point Change in Assumed Health Care Cost Trend Rates | A one-percentage-point change in assumed health care cost trend rates would have the following effects (in millions): One Percentage Point Increase One Percentage Point Decrease Effect on total of service and interest cost $ 0.1 $ (0.1 ) Effect on postretirement benefit obligation $ 1.6 $ (1.4 ) |
Schedule of Allocation of Plan Assets | The fair value of the Company’s pension plan assets at December 31, 2015 and 2014 , by asset category are as follows (in millions): Quoted Prices in Active Markets for Identical Assets Quoted Prices in Active Market for Similar Asset Significant Unobservable Inputs Investments Priced Using Net Asset Value Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 62.0 $ 62.0 $ — $ — $ — Equity securities: US Large-cap (a) 29.0 29.0 — — — US Mid-cap and Small-cap Growth (b) 38.2 38.2 — — — International Large-cap 28.7 28.7 — — — Emerging Markets (c) 11.8 11.8 — — — Fixed Income Securities: US Treasuries 186.4 — 186.4 — — Corporate Bonds (d) 99.6 0.3 98.9 0.4 — Asset Backed Securities and Other 126.6 — 126.6 — — Derivatives: Assets (e) 2.5 1.6 0.9 — — (Liabilities) (e) (0.7 ) (0.7 ) — — — Alternative Investment Funds (f) 158.3 65.9 — — 92.4 Common Pooled Fund (g) 15.2 0.8 14.4 — — BALANCE AT DECEMBER 31, 2015 $ 757.6 $ 237.6 $ 427.2 $ 0.4 $ 92.4 Quoted Prices in Active Markets for Identical Assets Quoted Prices in Active Market for Similar Asset Significant Unobservable Inputs Investments Priced Using Net Asset Value Asset Category Total (Level 1) (Level 2) (Level 3) Cash and cash equivalents $ 152.8 $ 152.8 $ — $ — $ — Equity securities: US Large-cap (a) 35.1 35.1 — — — US Mid-cap and Small-cap Growth (b) 41.5 41.5 — — — International Large-cap 23.4 23.4 — — — Emerging Markets (c) 11.3 11.3 — — — Fixed Income Securities: US Treasuries 57.7 — 57.7 — — Corporate Bonds (d) 214.1 — 214.1 — — Asset Backed Securities and Other 87.9 0.4 87.5 — — Derivatives: Assets (e) 8.1 7.1 1.0 — — (Liabilities) (e) (0.5 ) (0.5 ) — — — Alternative Investment Funds (f) 188.2 110.1 — — 78.1 Common Pooled Funds (g) 16.1 — 16.1 — — BALANCE AT DECEMBER 31, 2014 $ 835.7 $ 381.2 $ 376.4 $ — $ 78.1 (a) Includes an actively managed portfolio of large-cap US stocks. (b) Includes $34.7 million and $37.6 million of the Company’s common stock at December 31, 2015 and 2014 , respectively, and an investment in a small cap open ended mutual fund. (c) Includes open ended emerging markets mutual funds. (d) Includes primarily investment grade bonds of primarily U.S. issuers from diverse industries. (e) Includes primarily U.S. and foreign equity futures as well as foreign fixed income futures and short positions in U.S. Treasury futures to adjust the duration of the portfolio. (f) Includes investments in hedge funds, including fund of funds products and open end mutual funds (g) Investments in Common Pooled Funds, consisting of equities and fixed income securities. The Company’s combined targeted 2015 weighted average asset allocation for domestic and foreign pension plans and the actual weighted average asset allocation for domestic and foreign pension plans at December 31, 2015 and 2014 by asset category are as follows: Percentage of Plan Assets Target Actual Asset Category 2016 2015 2014 Equity securities 24 % 25 % 30 % Debt securities & Cash 49 % 52 % 48 % Alternative Investments 27 % 23 % 22 % TOTAL 100 % 100 % 100 % |
Schedule of Expected Benefit Payments | The following domestic and foreign benefit payments, which reflect future service, as appropriate, are expected to be paid as follows, (in millions): Pension Benefits Other Benefits 2016 $ 42.3 $ 2.3 2017 $ 43.8 $ 2.3 2018 $ 45.7 $ 2.3 2019 $ 47.4 $ 2.2 2020 $ 49.3 $ 2.1 2021-2025 $ 278.2 $ 9.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Debt Disclosure [Abstract] | |
Summary of Long-term Debt | The following table sets forth the Company’s long-term debt at December 31, (in millions): Maturity 2015 2014 Senior notes at 5.95%, net of unamortized discount and unamortized debt issuance costs 2018 $ 298.8 $ 298.3 Senior notes at 3.625%, net of unamortized discount and unamortized debt issuance costs 2022 297.1 296.6 TOTAL LONG-TERM DEBT $ 595.9 $ 594.9 Other information related to short-term debt at December 31, is summarized below: 2015 2014 Interest rate on short-term debt: At year end 0.47 % 14.54 % Paid during the year (weighted average) 4.54 % 14.35 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Schedule of Selected Data with Respect to the Company's Income Tax Provision | The following table sets forth selected data with respect to the Company’s income tax provisions for the years ended December 31, (in millions): 2015 2014 2013 Income before income taxes: United States $ 347.2 $ 385.6 $ 360.8 International 71.4 99.9 113.0 TOTAL INCOME BEFORE INCOME TAXES $ 418.6 $ 485.5 $ 473.8 Provision for income taxes — current: Federal $ 110.4 $ 90.1 $ 94.6 State 13.7 15.4 15.1 International 17.6 22.5 21.0 Total provision-current 141.7 128.0 130.7 Provision for income taxes — deferred: Federal (1.7 ) 24.4 14.4 State 0.4 2.7 0.1 International (3.9 ) 3.2 (1.2 ) Total provision — deferred (5.2 ) 30.3 13.3 TOTAL PROVISION FOR INCOME TAXES $ 136.5 $ 158.3 $ 144.0 |
Schedule of Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities result from differences in the basis of assets and liabilities for tax and financial statement purposes. The components of the deferred tax assets/(liabilities) at December 31, were as follows (in millions): 2015 2014 Deferred tax assets: Inventories $ 6.8 $ 4.6 Income tax credits 31.9 30.6 Accrued liabilities 25.0 23.3 Pension 58.2 43.6 Post retirement and post employment benefits 10.4 11.3 Stock-based compensation 12.6 11.4 Net operating loss carryforwards 31.0 46.3 Miscellaneous other 7.0 7.5 Gross deferred tax assets 182.9 178.6 Valuation allowance (22.0 ) (34.3 ) Total deferred tax assets, net of valuation allowance 160.9 144.3 Deferred tax liabilities: Acquisition basis difference (149.2 ) (145.8 ) Property, plant, and equipment (41.6 ) (41.9 ) Total deferred tax liabilities (190.8 ) (187.7 ) TOTAL NET DEFERRED TAX LIABILITY $ (29.9 ) $ (43.4 ) Deferred taxes are reflected in the Consolidated Balance Sheet as follows: Current tax assets (included in Deferred taxes and other) $ — $ 31.2 Non-current tax assets (included in Other long-term assets) 6.2 1.1 Current tax liabilities (included in Other accrued liabilities) — (1.2 ) Non-current tax liabilities (included in Other Non-current liabilities) (36.1 ) (74.5 ) TOTAL NET DEFERRED TAX LIABILITY $ (29.9 ) $ (43.4 ) |
Reconciliation of Beginning and Ending Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows (in millions): 2015 2014 2013 Unrecognized tax benefits at beginning of year $ 21.6 $ 14.8 $ 13.5 Additions based on tax positions relating to the current year 2.9 2.9 2.2 Reductions based on expiration of statute of limitations (2.8 ) (1.2 ) (1.5 ) Additions to tax positions relating to previous years 0.4 9.5 2.1 Settlements (1.8 ) (4.4 ) (1.5 ) TOTAL UNRECOGNIZED TAX BENEFITS $ 20.3 $ 21.6 $ 14.8 |
Schedule of Effective Income Tax Rate Reconciliation | The consolidated effective income tax rate varied from the United States federal statutory income tax rate for the years ended December 31, as follows: 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.3 2.0 2.1 Foreign income taxes (3.9 ) (2.1 ) (3.6 ) Other, net (0.8 ) (2.3 ) (3.1 ) CONSOLIDATED EFFECTIVE INCOME TAX RATE 32.6 % 32.6 % 30.4 % |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets and Liabilities Accounted for at Fair Value | The following tables show, by level within the fair value hierarchy, the Company’s financial assets and liabilities that are accounted for at fair value on a recurring basis at December 31, 2015 and 2014 (in millions): Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total Money market funds (a) $ 210.9 $ — $ — $ 210.9 Available for sale investments — 47.4 4.6 52.0 Trading securities 9.7 — — 9.7 Deferred compensation plan liabilities (9.7 ) — — (9.7 ) Derivatives: Forward exchange contracts-Assets — 2.5 — 2.5 Forward exchange contracts-(Liabilities) — (0.1 ) — (0.1 ) BALANCE AT DECEMBER 31, 2015 $ 210.9 $ 49.8 $ 4.6 $ 265.3 Asset (Liability) Quoted Prices in Active Markets for Identical Assets (Level 1) Quoted Prices in Active Markets for Similar Assets (Level 2) Unobservable inputs for which little or no market data exists (Level 3) Total Money market funds (a) $ 365.9 $ — $ — $ 365.9 Available-for-sale investments — 43.0 — 43.0 Trading securities 8.9 — — 8.9 Deferred compensation plan liabilities (8.9 ) — — (8.9 ) Derivatives: Forward exchange contracts-Assets — 0.7 — 0.7 Forward exchange contracts-(Liabilities) — — — — BALANCE AT DECEMBER 31, 2014 $ 365.9 $ 43.7 $ — $ 409.6 (a) Money market funds are included in Cash and cash equivalents in the Consolidated Balance Sheet. |
Schedule of Derivative Instruments and Cash Flow Hedging Relationships | The fair values of derivative instruments in the Consolidated Balance Sheet are as follows (in millions): Assets Liabilities Fair Value at December 31, Fair Value at December 31, Derivatives designated as hedges Balance Sheet Location 2015 2014 2015 2014 Forward exchange contracts designated as cash flow hedges Deferred taxes and other $ 2.5 $ 0.7 $ — $ — The following table summarizes the results of cash flow hedging relationships for years ended December 31, (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss, net of tax Location of Gain/(Loss) when reclassified Gain/(Loss) Reclassified into Earnings (Effective Portion) Derivative Instrument 2015 2014 (Effective Portion) 2015 2014 Forward exchange contract $ 1.7 $ 0.9 Cost of goods sold $ 0.3 $ 1.0 |
Capital Stock (Tables)
Capital Stock (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity in the Company's Common Shares Outstanding | Activity in the Company’s common shares outstanding is set forth below for the three years ended December 31, 2015 (in thousands): Common Stock Class A Class B Common Stock OUTSTANDING AT DECEMBER 31, 2012 7,167 52,069 — Exercise of stock options/stock appreciation rights — 157 — Director compensation arrangements, net — 16 — Restricted/performance shares activity, net of forfeitures — 138 — Acquisition/surrender of shares — (375 ) — OUTSTANDING AT DECEMBER 31, 2013 7,167 52,005 — Exercise of stock options/stock appreciation rights — 155 — Director compensation arrangements, net — 13 — Restricted/performance shares activity, net of forfeitures — 136 — Acquisition/surrender of shares — (980 ) — OUTSTANDING AT DECEMBER 31, 2014 7,167 51,329 — Exercise of stock options/stock appreciation rights — 29 Director compensation arrangements, net — 17 Restricted/performance shares activity, net of forfeitures — 122 Acquisition/surrender of shares — (708 ) (119 ) Share reclassification (7,167 ) (50,789 ) 57,956 OUTSTANDING AT DECEMBER 31, 2015 — — 57,837 |
Schedule of Shares of the Company's Reserved Common Stock | Shares of the Company’s common stock were reserved at December 31, 2015 as follows (in thousands): Common Stock Preferred Stock Future grant of stock-based compensation 3,756 — Exercise of stock purchase rights — 58 Shares reserved under other equity compensation plans 174 — TOTAL 3,930 58 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following table summarizes the assumptions used in estimating the fair value of these awards: Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value 2015 $ 97.48 2.6 % 23.3 % 1.3 % 3 years $ 87.61 2014 $ 106.44 2.1 % 22.7 % 1.0 % 3 Years $ 95.96 |
Schedule of Activity Related to Employee and Non-Employee Restricted Stock | Activity related to both employee and non-employee restricted stock for the year ended December 31, 2015 is as follows (in thousands, except per share amounts): Shares Weighted Average Grant Date Fair Value/Share RESTRICTED STOCK AT DECEMBER 31, 2014 167 $ 102.22 Shares granted 96 96.26 Shares vested (77 ) 99.91 Shares forfeited (7 ) 103.46 RESTRICTED STOCK AT DECEMBER 31, 2015 179 $ 99.97 |
Summary of Stock Appreciation Rights | Activity related to SARs for the year ended December 31, 2015 is as follows (in thousands, except per share amounts): Number of Rights Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value OUTSTANDING AT DECEMBER 31, 2014 1,465 $ 78.64 Granted 364 97.87 Exercised (102 ) 59.37 Forfeited (14 ) 104.07 Canceled (9 ) 59.50 OUTSTANDING AT DECEMBER 31, 2015 1,704 $ 83.77 7.2 $ 32,492 EXERCISABLE AT DECEMBER 31, 2015 1,101 $ 74.04 6.1 $ 31,237 |
Summary of the Weighted-Average Assumption Used in Estimating Fair Value of Stock Appreciation Rights | The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the years 2015 , 2014 , and 2013 : Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR 2015 2.7 % 22.7 % 1.7 % 5.5 Years $ 16.05 2014 2.0 % 21.8 % 1.6 % 5.3 Years $ 18.42 2013 1.9 % 28.3 % 1.6 % 5.4 Years $ 24.58 |
Summary of Performance Shares Valuation | The following table summarizes the related assumptions used to determine the fair values of the market performance share awards granted during the years 2015 , 2014 , and 2013 : Stock Price on Measurement Date Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value 2015 $ 97.48 2.6 % 23.3 % 1.3 % 3 Years $ 105.77 2014 $ 106.44 2.1 % 22.7 % 1.0 % 3 Years $ 117.55 2013 $ 107.87 1.9 % 33.8 % 0.6 % 3 Years $ 130.33 |
Summary of the Attributes of the Performance Shares Granted During the Period | The following table summarizes the attributes of the performance shares granted during 2015 and 2014: Year of Grant Shares Outstanding at 12/31/2015 Fair Value Performance Period Payout Range 2015 32,687 97.48 Jan 2016-Dec 2018 0-250% 2014 24,993 106.44 Jan 2015-Dec 2017 0-250% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share | The following table sets forth the computation of earnings per share for the three years ended December 31 (in millions, except per share amounts): 2015 2014 2013 Numerator: Net income attributable to Hubbell $ 277.3 $ 325.3 $ 326.5 Less: Earnings allocated to participating securities (0.7 ) (0.9 ) (1.0 ) Net income available to common shareholders $ 276.6 $ 324.4 $ 325.5 Denominator: Average number of common shares outstanding 57.7 58.8 59.1 Potential dilutive shares 0.3 0.4 0.5 Average number of diluted shares outstanding 58.0 59.2 59.6 Earnings per share: Basic $ 4.79 $ 5.51 $ 5.51 Diluted $ 4.77 $ 5.48 $ 5.47 |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Loss (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of the Changes in Accumulated Other Comprehensive Loss (Net of Tax) | A summary of the changes in Accumulated other comprehensive loss (net of tax) for the three years ended December 31, 2015 is provided below (in millions): (Debit) credit Cash Flow Hedge (Loss) Gain Unrealized Gain (Loss) on Available-for-Sale Securities Pension and Post Retirement Benefit Plan Adjustment Cumulative Translation Adjustment Total BALANCE AT DECEMBER 31, 2012 $ (0.5 ) $ 0.7 $ (130.1 ) $ 10.8 $ (119.1 ) Other comprehensive income (loss) before Reclassifications 0.6 (0.3 ) 54.8 (15.0 ) 40.1 Amounts reclassified from accumulated other comprehensive loss (0.3 ) — 8.3 — 8.0 Current period other comprehensive income (loss) 0.3 (0.3 ) 63.1 (15.0 ) 48.1 BALANCE AT DECEMBER 31, 2013 $ (0.2 ) $ 0.4 $ (67.0 ) $ (4.2 ) $ (71.0 ) Other comprehensive income (loss) before Reclassifications 0.9 (0.1 ) (59.8 ) (35.7 ) (94.7 ) Amounts reclassified from accumulated other comprehensive loss (0.7 ) — 2.1 — 1.4 Current period other comprehensive income (loss) 0.2 (0.1 ) (57.7 ) (35.7 ) (93.3 ) BALANCE AT DECEMBER 31, 2014 $ — $ 0.3 $ (124.7 ) $ (39.9 ) $ (164.3 ) Other comprehensive income (loss) before Reclassifications 1.7 (0.3 ) (22.9 ) (45.5 ) (67.0 ) Amounts reclassified from accumulated other comprehensive loss (0.3 ) — 7.4 — 7.1 Current period other comprehensive income (loss) 1.4 (0.3 ) (15.5 ) (45.5 ) (59.9 ) BALANCE AT DECEMBER 31, 2015 $ 1.4 $ — $ (140.2 ) $ (85.4 ) $ (224.2 ) |
Summary of the Gain (Loss) Reclassifications Out of Accumulated Other Comprehensive Loss | A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the two years ended December 31 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components 2015 2014 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.4 $ 1.0 Cost of goods sold 0.4 1.0 Total before tax (0.1 ) (0.3 ) Tax (expense) benefit $ 0.3 $ 0.7 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.2 (a) $ 0.8 (a) Actuarial gains/(losses) (12.1 ) (a) (3.8 ) (a) (11.9 ) (3.0 ) Total before tax 4.5 0.9 Tax benefit (expense) $ (7.4 ) $ (2.1 ) (Loss) gain net of tax Losses reclassified into earnings $ (7.1 ) $ (1.4 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 10 - Retirement Benefits for additional details). |
Industry Segments and Geograp52
Industry Segments and Geographic Area Information (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Segment Reporting [Abstract] | |
Summary of Industry Segment Data | INDUSTRY SEGMENT DATA 2015 2014 2013 Net Sales: Electrical $ 2,388.3 $ 2,398.2 $ 2,262.6 Power 1,002.1 961.2 921.3 TOTAL NET SALES $ 3,390.4 $ 3,359.4 $ 3,183.9 Operating Income: Electrical $ 279.0 $ 337.9 $ 341.1 Power 195.6 179.5 166.5 Operating Income $ 474.6 $ 517.4 $ 507.6 Interest expense (31.0 ) (31.2 ) (30.8 ) Investment income and other expense, net (25.0 ) (0.7 ) (3.0 ) INCOME BEFORE INCOME TAXES $ 418.6 $ 485.5 $ 473.8 Assets: Electrical $ 2,120.9 $ 1,963.0 $ 1,813.8 Power 839.7 832.0 707.0 General Corporate 248.1 525.1 663.2 TOTAL ASSETS $ 3,208.7 $ 3,320.1 $ 3,184.0 Capital Expenditures: Electrical $ 47.9 $ 35.1 $ 32.4 Power 28.4 21.8 25.0 General Corporate 0.8 3.4 1.4 TOTAL CAPITAL EXPENDITURES $ 77.1 $ 60.3 $ 58.8 Depreciation and Amortization: Electrical $ 56.2 $ 53.4 $ 48.0 Power 29.0 25.8 22.6 TOTAL DEPRECIATION AND AMORTIZATION $ 85.2 $ 79.2 $ 70.6 PRODUCT CLASS DATA 2015 2014 2013 Net Sales: Electrical Systems $ 1,476.7 $ 1,538.7 $ 1,466.4 Lighting 911.6 859.5 796.2 Power 1,002.1 961.2 921.3 TOTAL NET SALES $ 3,390.4 $ 3,359.4 $ 3,183.9 |
Summary of Geographic Area Data | GEOGRAPHIC AREA DATA 2015 2014 2013 Net Sales: United States $ 3,008.4 $ 2,883.8 $ 2,687.6 International 382.0 475.6 496.3 TOTAL NET SALES $ 3,390.4 $ 3,359.4 $ 3,183.9 Operating Income: United States $ 426.1 $ 447.2 $ 417.5 International 48.5 70.2 90.1 TOTAL OPERATING INCOME $ 474.6 $ 517.4 $ 507.6 Long-lived Assets: United States $ 1,627.7 $ 1,492.5 $ 1,341.4 International 187.1 199.7 212.3 TOTAL LONG-LIVED ASSETS $ 1,814.8 $ 1,692.2 $ 1,553.7 |
Guarantees (Tables)
Guarantees (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Standard Product Warranty Disclosure [Abstract] | |
Summary of Changes in the Accrued Product Warranties | Changes in the accrual for product warranties in 2015 are set forth below (in millions): BALANCE AT DECEMBER 31, 2013 $ 6.6 Provision 18.3 Expenditures/other (11.2 ) BALANCE AT DECEMBER 31, 2014 $ 13.7 Provision 10.0 Expenditures/other (10.5 ) BALANCE AT DECEMBER 31, 2015 $ 13.2 |
Restructuring Costs (Tables)
Restructuring Costs (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Restructuring and Related Activities [Abstract] | |
Summary of Restructuring Costs | Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Consolidated Statement of Income for the years ended December 31, 2015 and 2014 are as follows (in millions): Year Ended December 31, 2014 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 3.4 $ 1.7 $ 5.1 Power Segment — — — Total 2014 Restructuring Costs $ 3.4 $ 1.7 $ 5.1 Year Ended December 31, 2015 Electrical Segment $ 14.5 $ 7.2 $ 21.7 Power Segment 0.8 1.1 1.9 Total 2015 Restructuring Costs $ 15.3 $ 8.3 $ 23.6 |
Schedule of Restructuring Reserve by Type of Cost | The actual and expected costs for our restructuring actions are as follows (in millions): Expected Costs Costs incurred in 2014 Costs incurred during 2015 Remaining costs at 12/31/15 2015 Restructuring Actions Electrical Segment $ 23.4 $ — $ 17.3 $ 6.1 Power Segment 1.9 — 1.9 — Total 2015 Restructuring Actions 25.3 — 19.2 6.1 2014 Restructuring Actions Electrical Segment 9.5 5.1 4.4 — Power Segment — — — — Total 2014 Restructuring Actions 9.5 5.1 4.4 — Total Restructuring Actions $ 34.8 $ 5.1 $ 23.6 $ 6.1 The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Restructuring Balance 1/1/15 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 12/31/2015 2015 Restructuring Actions Severance $ — $ 16.1 $ (8.7 ) $ 7.4 Asset write-downs — 0.5 (0.5 ) — Facility closure and other costs — 2.6 (2.2 ) 0.4 Total 2015 Restructuring Actions $ — $ 19.2 $ (11.4 ) $ 7.8 2014 Restructuring Actions Severance $ 2.8 $ (0.1 ) $ (2.6 ) $ 0.1 Asset write-downs — 0.9 (0.9 ) — Facility closure and other costs 0.9 3.6 (4.5 ) — Total 2014 Restructuring Actions $ 3.7 $ 4.4 $ (8.0 ) $ 0.1 Total Restructuring Actions $ 3.7 $ 23.6 $ (19.4 ) $ 7.9 |
Quarterly Financial Data (Una55
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | The table below sets forth summarized quarterly financial data for the years ended December 31, 2015 and 2014 (in millions, except per share amounts): Revised First Quarter Revised Second Quarter Revised Third Quarter Fourth Quarter 2015 Net sales $ 809.7 $ 874.0 $ 877.0 $ 829.7 Cost of goods sold $ 557.9 $ 590.9 $ 587.0 $ 562.8 Gross profit $ 251.8 $ 283.1 $ 290.0 $ 266.9 Selling & administrative expenses $ 146.8 $ 156.4 $ 159.0 $ 155.0 Net income $ 63.4 $ 81.3 $ 74.7 $ 62.7 Net Income attributable to Hubbell $ 62.4 $ 80.1 $ 73.3 $ 61.5 Earnings per share — Basic $ 1.07 $ 1.39 $ 1.27 $ 1.06 Earnings per share — Diluted $ 1.07 $ 1.37 $ 1.27 $ 1.06 Reported First Quarter Reported Second Quarter Reported Third Quarter Fourth Quarter 2014 Net sales $ 759.5 $ 855.8 $ 895.3 $ 848.8 Cost of goods sold $ 514.5 $ 563.3 $ 599.1 $ 573.5 Gross profit $ 245.0 $ 292.5 $ 296.2 $ 275.3 Selling & administrative expenses $ 140.2 $ 148.8 $ 153.4 $ 149.2 Net income $ 65.3 $ 90.8 $ 90.5 $ 80.6 Net Income attributable to Hubbell $ 64.2 $ 90.2 $ 89.6 $ 81.3 Earnings per share — Basic $ 1.08 $ 1.53 $ 1.52 $ 1.39 Earnings per share — Diluted $ 1.08 $ 1.51 $ 1.51 $ 1.38 |
Significant Accounting Polici56
Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of LIFO inventory | 75.00% | ||
Capitalized Computer Software, Net [Abstract] | |||
Capitalized computer software costs, net of amortization | $ 12,400,000 | $ 12,700,000 | |
Amortization expense | $ 4,600,000 | 4,300,000 | $ 4,300,000 |
Goodwill Annual Impairment Test [Abstract] | |||
Excess of goodwill implied fair value, over carrying value, beginning range | 100.00% | ||
Excess of goodwill implied fair value, over carrying value, end of range | 300.00% | ||
Impairment of intangible assets, finite-lived | $ 0 | 0 | 0 |
Impairment of intangible assets, indefinite-lived (excluding goodwill) | $ 0 | $ 0 | $ 0 |
Research and development expense as a percentage of cost of goods sold | 2.00% | 2.00% | 2.00% |
New Accounting Pronouncement, Early Adoption, Effect | |||
Goodwill Annual Impairment Test [Abstract] | |||
Reclassification from deferred tax assets, net, current | $ 52,400,000 | ||
Reclassifications to deferred tax assets, net, noncurrent | $ 52,400,000 | ||
Minimum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer returns as a percentage of gross sales | 1.00% | ||
Useful life, intangible assets | 5 years | ||
Maximum | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Customer returns as a percentage of gross sales | 3.00% | ||
Useful life, intangible assets | 30 years | ||
Capitalized Computer Software Costs | |||
Capitalized Computer Software, Net [Abstract] | |||
Depreciable lives | 5 years |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | $ 163.4 | $ 183.8 | $ 96.5 | ||
Goodwill acquired | 55.3 | $ 80.9 | |||
Payment to settle the net working capital adjustment | $ 0.2 | ||||
Acme | |||||
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | $ 67.4 | ||||
Intangible assets acquired | 30.8 | ||||
Goodwill acquired | $ 21.6 | ||||
Intangible assets, weighted average useful life | 20 years | ||||
Turner | |||||
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | $ 37.7 | ||||
Intangible assets acquired | 22 | ||||
Goodwill acquired | $ 12 | ||||
Intangible assets, weighted average useful life | 19 years | ||||
EC&M | |||||
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | $ 21.6 | ||||
Intangible assets acquired | 8.5 | ||||
Goodwill acquired | $ 7.9 | ||||
Intangible assets, weighted average useful life | 16 years | ||||
GasBreaker | |||||
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | $ 36.5 | ||||
Intangible assets acquired | 20.4 | ||||
Goodwill acquired | $ 13.8 | ||||
Intangible assets, weighted average useful life | 17 years |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Business Acquisition [Line Items] | |||
Goodwill | $ 928.5 | $ 874.7 | $ 800.4 |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition [Line Items] | |||
Tangible assets acquired | 36.8 | ||
Intangible assets | 81.7 | ||
Goodwill | 55.3 | ||
Liabilities assumed | (10.6) | ||
TOTAL CASH CONSIDERATION | $ 163.2 |
Receivables and Allowances (Det
Receivables and Allowances (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable, Net, Current [Abstract] | ||
Trade accounts receivable | $ 491.5 | $ 494 |
Non-trade receivables | 21.3 | 15.9 |
Accounts receivable, gross | 512.8 | 509.9 |
Allowance for credit memos, returns and cash discounts | (41.5) | (36.7) |
Allowance for doubtful accounts | (4.7) | (3.4) |
Total allowances | (46.2) | (40.1) |
ACCOUNTS RECEIVABLE, NET | $ 466.6 | $ 469.8 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Inventory Disclosure [Abstract] | ||
Raw material | $ 167.5 | $ 153.8 |
Work-in-process | 99.6 | 94.8 |
Finished goods | 342.6 | 277.6 |
Inventory, gross | 609.7 | 526.2 |
Excess of FIFO over LIFO cost basis | (69.7) | (84.4) |
INVENTORIES, NET | $ 540 | $ 441.8 |
Goodwill and Other Intangible61
Goodwill and Other Intangible Assets Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | $ 874.7 | $ 800.4 |
Current year acquisitions | 55.3 | 80.9 |
Foreign currency translation and prior year acquisitions | (1.5) | (6.6) |
Goodwill, end of period | 928.5 | 874.7 |
Electrical | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 568.9 | 520.9 |
Current year acquisitions | 43.3 | 53.5 |
Foreign currency translation and prior year acquisitions | (1) | (5.5) |
Goodwill, end of period | 611.2 | 568.9 |
Power | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning of period | 305.8 | 279.5 |
Current year acquisitions | 12 | 27.4 |
Foreign currency translation and prior year acquisitions | (0.5) | (1.1) |
Goodwill, end of period | $ 317.3 | $ 305.8 |
Goodwill and Other Intangible62
Goodwill and Other Intangible Assets Narrative (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015USD ($)acquisition | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Number of acquisitions completed (acquisition) | acquisition | 4 | ||
Acquisition of businesses, net of cash acquired | $ 163.4 | $ 183.8 | $ 96.5 |
Net working capital adjustment | 0.2 | ||
Goodwill acquired | 55.3 | 80.9 | |
Year to date amortization expense | 28.2 | $ 23.8 | $ 19.9 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
Amortization expense, 2016 | 27 | ||
Amortization expense, 2017 | 27.3 | ||
Amortization expense, 2018 | 25.8 | ||
Amortization expense, 2019 | 23.6 | ||
Amortization expense, 2020 | $ 22.6 |
Other Intangible Assets (Detail
Other Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 465 | $ 388.1 |
Accumulated Amortization | (146.3) | (120.3) |
TOTAL INTANGIBLE ASSETS | 518.5 | 443.1 |
Tradenames and other | ||
Other Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | 53.5 | 55 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 133.8 | 125.1 |
Accumulated Amortization | (38) | (32.5) |
Customer/agent relationships and other | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 331.2 | 263 |
Accumulated Amortization | $ (108.3) | $ (87.8) |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale investments | $ 52 | $ 43 | ||
Payments to acquire available-for-sale securities | $ 5 | 24.5 | 17.6 | $ 11.1 |
Unrealized gains on available-for-sale securities, net of tax | 0 | 0.3 | ||
Unobservable inputs for which little or no market data exists (Level 3) | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale investments | 4.6 | $ 0 | ||
Payments to acquire available-for-sale securities | $ 5 | |||
Municipal Bonds | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Available for sale investments | $ 46.9 |
Investments - Amortized Cost Ba
Investments - Amortized Cost Basis (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Available-for-sale securities, amortized cost | $ 51.9 | $ 42.5 |
Available-for-sale securities, accumulated gross unrealized gains | 0.5 | 0.6 |
Available-for-sale securities, accumulated gross unrealized losses | (0.4) | (0.1) |
Available-for-sale debt securities | 52 | 43 |
Trading securities, amortized cost | 7.3 | 6.6 |
Trading securities, accumulated gross unrealized gains | 2.4 | 2.3 |
Trading securities, accumulated gross unrealized losses | 0 | 0 |
Trading securities | 9.7 | 8.9 |
Investments, amortized cost | 59.2 | 49.1 |
Investments, accumulated unrealized gains | 2.9 | 2.9 |
TOTAL INVESTMENTS | $ 61.7 | $ 51.9 |
Investments - Contractual Matur
Investments - Contractual Maturity (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Investments [Abstract] | ||
Amortized Cost Due within 1 year | $ 12.2 | |
Amortized Cost After 1 year but within 5 years | 32.5 | |
Amortized Cost After 5 years but within 10 years | 7.2 | |
Amortized Cost Due after 10 years | 0 | |
Available-for-sale securities, amortized cost | 51.9 | $ 42.5 |
Fair Value Due within 1 year | 12.2 | |
Fair Value After 1 year but within 5 years | 32.5 | |
Fair Value After 5 years but within 10 years | 7.3 | |
Fair Value Due after 10 years | 0 | |
Available for Sale | $ 52 | $ 43 |
Property, Plant and Equipment67
Property, Plant and Equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 1,101.1 | $ 1,057.4 | |
Less accumulated depreciation | (681.4) | (656.2) | |
NET PROPERTY, PLANT, AND EQUIPMENT | 419.7 | 401.2 | |
Depreciation | 51.2 | 49.9 | $ 45.3 |
Land | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | 42.5 | 43.1 | |
Buildings and improvements | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 259.4 | 252.8 | |
Buildings and improvements | Minimum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 20 years | ||
Buildings and improvements | Maximum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 45 years | ||
Machinery, tools, and equipment | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 761.7 | 740.7 | |
Machinery, tools, and equipment | Minimum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 3 years | ||
Machinery, tools, and equipment | Maximum | |||
Property, Plant, and Equipment [Line Items] | |||
Depreciable lives | 20 years | ||
Construction-in-progress | |||
Property, Plant, and Equipment [Line Items] | |||
Gross property, plant, and equipment | $ 37.5 | $ 20.8 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 40.7 | $ 40.5 |
Accrued income taxes | 2.1 | 5.8 |
Deferred revenue | 15 | 18.2 |
Other | 81.9 | 65.5 |
TOTAL | $ 139.7 | $ 130 |
Other Non-Current Liabilities69
Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Other Liabilities, Noncurrent [Abstract] | ||
Pensions | $ 150.7 | $ 137.1 |
Other post-employment benefits | 24.3 | 24.3 |
Deferred tax liabilities | 36.1 | 74.5 |
Other | 49.6 | 54.4 |
TOTAL | $ 260.7 | $ 290.3 |
Retirement Benefits Narrative (
Retirement Benefits Narrative (Details) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2015USD ($) | Dec. 31, 2015USD ($)benefit_plan | Dec. 31, 2014USD ($)benefit_plan | Dec. 31, 2013USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | ||||
Accumulated benefit obligation | $ 842.1 | $ 907.1 | ||
Number of defined contribution pension plans (benefit plan) | benefit_plan | 6 | |||
Defined contribution pension plans, total costs | $ 13.3 | $ 12.9 | $ 11.2 | |
Number of multiemployer defined benefit pension plans (benefit_plan) | benefit_plan | 2 | 3 | ||
Multiemployer plan total employer contributions | $ 0.8 | $ 0.8 | 0.9 | |
Employer stock included in plan assets | 34.7 | 37.6 | ||
Fair value of plan assets | $ 757.6 | $ 835.7 | ||
Employer stock as percentage of plan assets | 5.30% | 5.20% | ||
Carrying Value | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 92.4 | $ 78.1 | ||
Cash and cash equivalents | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 62 | 152.8 | ||
Cash and cash equivalents | Reclassification Adjustment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 126.6 | |||
Alternative Investments | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 158.3 | 188.2 | ||
Alternative Investments | Carrying Value | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 92.4 | 78.1 | ||
Equity/Debt Futures | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2.5 | 8.1 | ||
Equity/Debt Futures | Reclassification Adjustment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | (142) | |||
Derivative Liability | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | (0.7) | (0.5) | ||
Derivative Liability | Reclassification Adjustment | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ (15.4) | |||
US Pension Plans | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Voluntary lump sum program payment | $ 27.7 | |||
Defined benefit obligation per plan, as a percent of total benefit obligation | 89.00% | |||
Discount rate | 4.80% | 4.30% | ||
Effect on defined benefit obligation, due to change in mortality table utilized | $ 40 | |||
Employer contributions | $ 20 | |||
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Benefit obligation | $ 912.3 | $ 976.3 | $ 828.2 | |
Number of multiemployer defined benefit pension plans (benefit_plan) | benefit_plan | 2 | |||
Multiemployer plan, number of plans under 65% funded (benefit_plan) | benefit_plan | 1 | |||
Defined benefit plan, funded percentage | 65.00% | |||
Discount rate | 4.71% | 4.23% | 5.04% | |
Fair value of plan assets | $ 757.6 | $ 835.7 | $ 764 | |
Employer contributions | 27.9 | $ 27.6 | ||
Foreign Pension Plan | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Estimated future employer contributions in next fiscal year | $ 2.2 | |||
Foreign Pension Plan | CANADA | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 3.90% | 3.95% | ||
Foreign Pension Plan | UNITED KINGDOM | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Discount rate | 4.00% | 3.70% |
Retirement Benefits Change in B
Retirement Benefits Change in Benefit Obligations and Plan Assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Change in plan assets | |||
Fair value of plan assets at beginning of year | $ 835.7 | ||
Fair value of plan assets at end of year | 757.6 | $ 835.7 | |
Pension Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 976.3 | 828.2 | |
Service cost | 17.7 | 15.1 | $ 16.7 |
Interest cost | 40.5 | 40.9 | 36.5 |
Plan participants’ contributions | 0.7 | 0.7 | |
Amendments | 0 | 0 | |
Actuarial loss (gain) | (46.6) | 135.1 | |
Currency impact | (6.7) | (6) | |
Other | (1.4) | (0.6) | |
Benefits paid | (68.2) | (37.1) | |
Benefit obligation at end of year | 912.3 | 976.3 | 828.2 |
Change in plan assets | |||
Fair value of plan assets at beginning of year | 835.7 | 764 | |
Actual return on plan assets | (31.8) | 87.1 | |
Employer contributions | 27.9 | 27.6 | |
Plan participants’ contributions | 0.7 | 0.7 | |
Currency impact | (6.7) | (6.6) | |
Benefits paid | (68.2) | (37.1) | |
Fair value of plan assets at end of year | 757.6 | 835.7 | 764 |
FUNDED STATUS | (154.7) | (140.6) | |
Prepaid pensions (included in Other long-term assets) | 1.4 | 1 | |
Accrued benefit liability (short-term and long-term) | (156.1) | (141.6) | |
NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET | (154.7) | (140.6) | |
Amounts recognized in Accumulated other comprehensive loss (income) consist of: | |||
Net actuarial loss | 221.5 | 196.4 | |
Prior service cost (credit) | 0.6 | 0.8 | |
NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS | 222.1 | 197.2 | |
Other Benefits | |||
Change in benefit obligation | |||
Benefit obligation at beginning of year | 26.7 | 28.1 | |
Service cost | 0.1 | 0.1 | 0 |
Interest cost | 1 | 1.1 | 1.1 |
Plan participants’ contributions | 0 | ||
Amendments | 0 | ||
Actuarial loss (gain) | 0.5 | 1.6 | |
Currency impact | 0 | ||
Other | (0.1) | (2.2) | |
Benefits paid | (1.6) | (2) | |
Benefit obligation at end of year | 26.6 | 26.7 | $ 28.1 |
Change in plan assets | |||
Plan participants’ contributions | 0 | ||
Benefits paid | (1.6) | (2) | |
FUNDED STATUS | (26.6) | (26.7) | |
Accrued benefit liability (short-term and long-term) | (26.6) | (26.7) | |
NET AMOUNT RECOGNIZED IN THE CONSOLIDATED BALANCE SHEET | (26.6) | (26.7) | |
Amounts recognized in Accumulated other comprehensive loss (income) consist of: | |||
Net actuarial loss | 1.4 | 0.7 | |
Prior service cost (credit) | (4.2) | (5.2) | |
NET AMOUNT RECOGNIZED IN ACCUMULATED OTHER COMPREHENSIVE LOSS | $ (2.8) | $ (4.5) |
Retirement Benefits Accumulated
Retirement Benefits Accumulated Benefit Obligation In Excess of Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Pension and Other Postretirement Benefit Expense [Abstract] | ||
Projected benefit obligation | $ 807.9 | $ 266.5 |
Accumulated benefit obligation | 757.6 | 261.1 |
Fair value of plan assets | $ 655.3 | $ 168.9 |
Retirement Benefits Components
Retirement Benefits Components of Pension and Other Benefit Costs (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | $ 17.7 | $ 15.1 | $ 16.7 |
Interest cost | 40.5 | 40.9 | 36.5 |
Expected return on plan assets | (53.2) | (45.2) | (46.7) |
Amortization of prior service cost (credit) | 0.2 | 0.2 | 0.2 |
Amortization of actuarial losses (gains) | 12.1 | 3.9 | 13.8 |
Other | 0 | 0 | 0 |
Curtailment and settlement losses (gains) | 0 | 0 | 0 |
Net periodic benefit cost (credit) | 17.3 | 14.9 | 20.5 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax [Abstract] | |||
Current year net actuarial loss (gain) | 37 | 93.1 | (87.8) |
Current year prior service credit | 0 | 0 | 0.4 |
Amortization of prior service (cost) credit | (0.2) | (0.2) | (0.2) |
Amortization of net actuarial (losses) gains | (12.1) | (3.9) | (13.8) |
Currency impact | (0.1) | 0 | (0.1) |
Other adjustments | 0 | 0 | 0 |
Total recognized in other comprehensive loss (income) | 24.6 | 89 | (101.5) |
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax | 41.9 | 103.9 | (81) |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Amortization of prior service cost (credit) | 0.1 | ||
Amortization of net loss (gain) | 13.6 | ||
TOTAL EXPECTED TO BE RECOGNIZED THROUGH INCOME DURING NEXT FISCAL YEAR | 13.7 | ||
Other Benefits | |||
Defined Benefit Plan, Net Periodic Benefit Cost [Abstract] | |||
Service cost | 0.1 | 0.1 | 0 |
Interest cost | 1 | 1.1 | 1.1 |
Expected return on plan assets | 0 | 0 | |
Amortization of prior service cost (credit) | (1) | (1) | (1) |
Amortization of actuarial losses (gains) | (0.1) | (0.1) | (0.1) |
Other | 0 | (2.2) | 0 |
Curtailment and settlement losses (gains) | 0 | 0 | 0 |
Net periodic benefit cost (credit) | 0 | (2.1) | 0 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Adjustment, before Reclassification Adjustments, Net of Tax [Abstract] | |||
Current year net actuarial loss (gain) | 0.5 | 1.5 | (1.4) |
Current year prior service credit | 0 | 0 | |
Amortization of prior service (cost) credit | 1 | 1 | 1 |
Amortization of net actuarial (losses) gains | 0.1 | 0.1 | 0.1 |
Currency impact | 0 | 0 | 0 |
Other adjustments | 0 | 0 | 0 |
Total recognized in other comprehensive loss (income) | 1.6 | 2.6 | (0.3) |
Amount Recognized in Net Periodic Benefit Cost and Other Comprehensive Income (Loss), before Tax | 1.6 | $ 0.5 | $ (0.3) |
Defined Benefit Plan, Amount to be Amortized from Accumulated Other Comprehensive Income (Loss) Next Fiscal Year [Abstract] | |||
Amortization of prior service cost (credit) | (1) | ||
Amortization of net loss (gain) | 0 | ||
TOTAL EXPECTED TO BE RECOGNIZED THROUGH INCOME DURING NEXT FISCAL YEAR | $ (1) |
Retirement Benefits Projected B
Retirement Benefits Projected Benefit Obligation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.71% | 4.23% | 5.04% |
Rate of compensation increase | 3.59% | 3.15% | 3.18% |
Discount rate | 4.23% | 5.04% | 4.22% |
Expected return on plan assets | 6.36% | 6.06% | 6.70% |
Rate of compensation increase | 3.15% | 3.18% | 3.11% |
Other Benefits | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Discount rate | 4.60% | 4.10% | 4.60% |
Rate of compensation increase | 3.92% | 3.60% | 3.58% |
Discount rate | 4.10% | 4.60% | 4.20% |
Rate of compensation increase | 3.60% | 3.58% | 3.55% |
Retirement Benefits Assumed Hea
Retirement Benefits Assumed Health Care Cost Trend Rates (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Pension and Other Postretirement Benefit Expense [Abstract] | |||
Health care cost trend assumed for next year | 7.40% | 7.60% | 7.80% |
Rate to which the cost trend is assumed to decline | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,028 | 2,028 | 2,028 |
Retirement Benefits One-Percent
Retirement Benefits One-Percentage-Point Change in Assumed Health Care Cost Trend Rates (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Pension and Other Postretirement Benefit Expense [Abstract] | |
Effect on total of service and interest cost, one percentage point increase | $ 0.1 |
Effect on total of service and interest cost, one percentage point decrease | (0.1) |
Effect of on postretirement benefit obligation, one percentage point increase | 1.6 |
Effect on postretirement benefit obligation, one percentage point decrease | $ (1.4) |
Retirement Benefits Combined Ta
Retirement Benefits Combined Targeted and Actual Domestic and Foreign Pension Plans Weighted Average Asset Allocation (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of plan assets, target | 100.00% | |
Percentage of plan assets, actual | 100.00% | 100.00% |
Equity securities | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of plan assets, target | 24.00% | |
Percentage of plan assets, actual | 25.00% | 30.00% |
Debt securities & Cash | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of plan assets, target | 49.00% | |
Percentage of plan assets, actual | 52.00% | 48.00% |
Alternative Investments | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Percentage of plan assets, target | 27.00% | |
Percentage of plan assets, actual | 23.00% | 22.00% |
Retirement Benefits Fair Value
Retirement Benefits Fair Value Pension Plan Assets (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 757.6 | $ 835.7 |
Employer stock included in plan assets | 34.7 | 37.6 |
Investments Priced Using Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 92.4 | 78.1 |
Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 62 | 152.8 |
US Large-Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | 35.1 |
US Mid-Cap and Small-Cap Growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 38.2 | 41.5 |
International Large-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 28.7 | 23.4 |
Emerging Markets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 11.8 | 11.3 |
US Treasuries | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 186.4 | 57.7 |
Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 99.6 | 214.1 |
Asset Backed Securities and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 126.6 | 87.9 |
Equity/Debt Futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.5 | 8.1 |
Derivative Liability | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | (0.7) | (0.5) |
Alternative Investment Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 158.3 | 188.2 |
Alternative Investment Funds | Investments Priced Using Net Asset Value | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 92.4 | 78.1 |
Common Pooled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 15.2 | 16.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 237.6 | 381.2 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 62 | 152.8 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Large-Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 29 | 35.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Mid-Cap and Small-Cap Growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 38.2 | 41.5 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | International Large-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 28.7 | 23.4 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Emerging Markets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 11.8 | 11.3 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasuries | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.3 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Asset Backed Securities and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0.4 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity/Debt Futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.6 | 7.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Derivative Liability | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | (0.7) | (0.5) |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Alternative Investment Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 65.9 | 110.1 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Common Pooled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.8 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 427.2 | 376.4 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | US Large-Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | US Mid-Cap and Small-Cap Growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | International Large-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Emerging Markets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | US Treasuries | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 186.4 | 57.7 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 98.9 | 214.1 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Asset Backed Securities and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 126.6 | 87.5 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Equity/Debt Futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.9 | 1 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Derivative Liability | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Alternative Investment Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | Common Pooled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14.4 | 16.1 |
Unobservable inputs for which little or no market data exists (Level 3) | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.4 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Cash and cash equivalents | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | US Large-Cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | US Mid-Cap and Small-Cap Growth | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | International Large-cap | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Emerging Markets | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | US Treasuries | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Corporate Bonds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.4 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Asset Backed Securities and Other | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Equity/Debt Futures | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Derivative Liability | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Alternative Investment Funds | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0 | 0 |
Unobservable inputs for which little or no market data exists (Level 3) | Common Pooled Fund | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0 | $ 0 |
Retirement Benefits Estimated F
Retirement Benefits Estimated Future Benefit Payments (Details) $ in Millions | Dec. 31, 2015USD ($) |
Pension Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | $ 42.3 |
2,017 | 43.8 |
2,018 | 45.7 |
2,019 | 47.4 |
2,020 | 49.3 |
2021-2025 | 278.2 |
Other Benefits | |
Defined Benefit Plan Disclosure [Line Items] | |
2,016 | 2.3 |
2,017 | 2.3 |
2,018 | 2.3 |
2,019 | 2.2 |
2,020 | 2.1 |
2021-2025 | $ 9.5 |
Debt Summary of Long-term Debt
Debt Summary of Long-term Debt (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 | Nov. 30, 2010 | May. 31, 2008 |
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 595.9 | $ 594.9 | ||
Notes 2018 Term | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 298.8 | $ 298.3 | ||
Interest rate, stated percentage | 5.95% | 5.95% | 5.95% | |
Notes 2022 Term | ||||
Debt Instrument [Line Items] | ||||
Long-term Debt | $ 297.1 | $ 296.6 | ||
Interest rate, stated percentage | 3.625% | 3.625% | 3.625% |
Debt Narrative (Details)
Debt Narrative (Details) ÂĄ in Millions | Dec. 16, 2015USD ($) | Oct. 20, 2011USD ($) | Nov. 30, 2010USD ($) | May. 31, 2008USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Dec. 31, 2015BRL | Dec. 31, 2015CNY (ÂĄ) | Dec. 31, 2014BRL | Dec. 31, 2014CNY (ÂĄ) |
Debt Instrument [Line Items] | |||||||||||
Gain (loss) on forward interest rate lock, recorded in accumulated other comprehensive loss | $ (400,000) | $ (400,000) | |||||||||
Short-term debt | 48,200,000 | 1,400,000 | |||||||||
Commercial paper | 48,000,000 | 0 | |||||||||
Line of credit, maximum borrowing capacity | BRL | BRL 5,000,000 | ||||||||||
Long-term line of credit | 0 | 1,100,000 | BRL 0 | BRL 3,000,000 | |||||||
Line of credit outstanding, current portion | 200,000 | 300,000 | ÂĄ 1.3 | ÂĄ 1.7 | |||||||
Interest and fees paid | 29,500,000 | 29,400,000 | $ 29,700,000 | ||||||||
Other LOC | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | 54,600,000 | 54,600,000 | |||||||||
Line of credit outstanding, current portion | $ 22,500,000 | $ 27,100,000 | |||||||||
Notes 2022 Term Interest Rate Lock | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (loss) on forward interest rate lock, recorded in accumulated other comprehensive loss | $ (1,600,000) | ||||||||||
Notes 2018 Term Interest Rate Lock | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Gain (loss) on forward interest rate lock, recorded in accumulated other comprehensive loss | $ 1,200,000 | ||||||||||
Notes 2022 Term | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 300,000,000 | ||||||||||
Interest rate, stated percentage | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | 3.625% | ||||
Notes 2018 Term | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 300,000,000 | ||||||||||
Interest rate, stated percentage | 5.95% | 5.95% | 5.95% | 5.95% | 5.95% | 5.95% | 5.95% | ||||
Line of Credit | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | $ 500,000,000 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
Line of Credit | Revolving Credit Facility | Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Line of credit, maximum borrowing capacity | $ 750,000,000 | ||||||||||
Debt instrument, term | 5 years | ||||||||||
Line of credit facility, accordion feature, higher borrowing capacity option | $ 1,250,000,000 | ||||||||||
Line of credit, maximum debt to capitalization, percentage | 55.00% |
Debt Other Information Related
Debt Other Information Related to Short-term Debt (Details) | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Disclosure [Abstract] | ||
Interest rate at year end | 0.47% | 14.54% |
Interest rate paid during the year (weighted average) | 4.54% | 14.35% |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income before income taxes: | |||
United States | $ 347.2 | $ 385.6 | $ 360.8 |
International | 71.4 | 99.9 | 113 |
Income before income taxes | 418.6 | 485.5 | 473.8 |
Provision for income taxes — current: | |||
Federal | 110.4 | 90.1 | 94.6 |
State | 13.7 | 15.4 | 15.1 |
International | 17.6 | 22.5 | 21 |
Total provision-current | 141.7 | 128 | 130.7 |
Provision for income taxes — deferred: | |||
Federal | (1.7) | 24.4 | 14.4 |
State | 0.4 | 2.7 | 0.1 |
International | (3.9) | 3.2 | (1.2) |
Total provision — deferred | (5.2) | 30.3 | 13.3 |
TOTAL PROVISION FOR INCOME TAXES | $ 136.5 | $ 158.3 | $ 144 |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Deferred tax assets: | ||
Inventories | $ 6.8 | $ 4.6 |
Income tax credits | 31.9 | 30.6 |
Accrued liabilities | 25 | 23.3 |
Pension | 58.2 | 43.6 |
Post retirement and post employment benefits | 10.4 | 11.3 |
Stock-based compensation | 12.6 | 11.4 |
Net operating loss carryforwards | 31 | 46.3 |
Miscellaneous other | 7 | 7.5 |
Gross deferred tax assets | 182.9 | 178.6 |
Valuation allowance | (22) | (34.3) |
Total deferred tax assets, net of valuation allowance | 160.9 | 144.3 |
Deferred tax liabilities: | ||
Acquisition basis difference | (149.2) | (145.8) |
Property, plant, and equipment | (41.6) | (41.9) |
Total deferred tax liabilities | (190.8) | (187.7) |
TOTAL NET DEFERRED TAX LIABILITY | (29.9) | (43.4) |
Current tax assets (included in Deferred taxes and other) | 0 | 31.2 |
Non-current tax assets (included in Other long-term assets) | 6.2 | 1.1 |
Current tax liabilities (included in Other accrued liabilities) | 0 | (1.2) |
Non-current tax liabilities (included in Other Non-current liabilities) | $ (36.1) | $ (74.5) |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Tax Credit Carryforward [Line Items] | |||
Income tax credits | $ 31,900,000 | $ 30,600,000 | |
Net operating loss carryforwards | 31,000,000 | 46,300,000 | |
Valuation allowance | 22,000,000 | 34,300,000 | |
Undistributed earnings of foreign subsidiaries | 815,000,000 | ||
Amount of unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 180,000,000 | ||
Income taxes paid | 139,100,000 | 125,400,000 | $ 127,200,000 |
Unrecognized tax benefits that would impact effective tax rate | 16,900,000 | ||
Unrecognized tax benefits timing of deductibility unknown | 800,000 | ||
Significant (increase) decrease in unrecognized tax benefits is reasonably possible, estimated range of change, upper bound | 5,200,000 | ||
Unrecognized tax benefits, income tax penalties and interest expense | 1,200,000 | 1,700,000 | $ (200,000) |
Unrecognized tax benefits, income tax penalties and interest accrued | 4,100,000 | $ 2,900,000 | |
Federal, State, and Local | |||
Tax Credit Carryforward [Line Items] | |||
Net operating loss carryforwards | 31,000,000 | ||
Tax credit carryforward indefinitely | |||
Tax Credit Carryforward [Line Items] | |||
Income tax credits | 10,500,000 | ||
Net operating loss carryforwards | 8,600,000 | ||
Carryforward Subject To Expiration | |||
Tax Credit Carryforward [Line Items] | |||
Income tax credits | 21,400,000 | ||
Net operating loss carryforwards | $ 22,400,000 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 21.6 | $ 14.8 | $ 13.5 |
Additions based on tax positions relating to the current year | 2.9 | 2.9 | 2.2 |
Reductions based on expiration of statute of limitations | (2.8) | (1.2) | (1.5) |
Additions to tax positions relating to previous years | 0.4 | 9.5 | 2.1 |
Settlements | (1.8) | (4.4) | (1.5) |
TOTAL UNRECOGNIZED TAX BENEFITS | $ 20.3 | $ 21.6 | $ 14.8 |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Tax Disclosure [Abstract] | |||
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 2.30% | 2.00% | 2.10% |
Foreign income taxes | (3.90%) | (2.10%) | (3.60%) |
Other, net | (0.80%) | (2.30%) | (3.10%) |
CONSOLIDATED EFFECTIVE INCOME TAX RATE | 32.60% | 32.60% | 30.40% |
Fair Value Measurement Narrativ
Fair Value Measurement Narrative (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Nov. 30, 2010USD ($) | May. 31, 2008USD ($) | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)forward_exchange_contrtactinvestment | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Available for sale investments | $ 52,000,000 | $ 43,000,000 | ||||
Payments to acquire available-for-sale securities | $ 5,000,000 | 24,500,000 | 17,600,000 | $ 11,100,000 | ||
Trading securities | 9,700,000 | 8,900,000 | ||||
Purchase of trading securities held-for-investment | 1,000,000 | 1,200,000 | ||||
Proceeds from the sale of trading securities held-for-investment | $ 300,000 | 200,000 | ||||
Number of foreign exchange contracts held (foreign_exchange_contract) | forward_exchange_contrtact | 42 | |||||
Gain (loss) on forward interest rate lock, recorded in accumulated other comprehensive loss | $ (400,000) | (400,000) | ||||
Hedge ineffectiveness with respect to forward exchange cash flow hedges | 0 | 0 | $ 0 | |||
Long-term Debt | 595,900,000 | 594,900,000 | ||||
Long-term debt, fair value | 630,500,000 | 645,100,000 | ||||
Interest Rate Lock 2010 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Gain (loss) on forward interest rate lock, recorded in accumulated other comprehensive loss | $ (1,600,000) | |||||
Interest Rate Lock 2008 | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Gain (loss) on forward interest rate lock, recorded in accumulated other comprehensive loss | $ 1,200,000 | |||||
Minimum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative, notional amount | 500,000 | |||||
Maximum | ||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||||
Derivative, notional amount | 2,500,000 | |||||
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 | 47,400,000 | 43,000,000 | ||||
Trading securities | 0 | 0 | ||||
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 | 4,600,000 | 0 | ||||
Payments to acquire available-for-sale securities | $ 5,000,000 | |||||
Trading securities | $ 0 | $ 0 | ||||
Number of available-for-sale securities (investment) | investment | 1 |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value Hierarchy (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 210.9 | $ 365.9 |
Available for sale investments | 52 | 43 |
Trading securities | 9.7 | 8.9 |
Deferred compensation plan liabilities | (9.7) | (8.9) |
Derivatives: | ||
Forward exchange contracts-Assets | 2.5 | 0.7 |
Forward exchange contracts-(Liabilities) | (0.1) | 0 |
Fair value, net asset (liability) | 265.3 | 409.6 |
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 | 210.9 | 365.9 |
Available for sale investments | 0 | 0 |
Trading securities | 9.7 | 8.9 |
Deferred compensation plan liabilities | (9.7) | (8.9) |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | 0 |
Forward exchange contracts-(Liabilities) | 0 | 0 |
Fair value, net asset (liability) | 210.9 | 365.9 |
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 |
Available for sale investments | 47.4 | 43 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 2.5 | 0.7 |
Forward exchange contracts-(Liabilities) | (0.1) | 0 |
Fair value, net asset (liability) | 49.8 | 43.7 |
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 |
Available for sale investments | 4.6 | 0 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | 0 |
Forward exchange contracts-(Liabilities) | 0 | 0 |
Fair value, net asset (liability) | $ 4.6 | $ 0 |
Fair Value Measurement Derivati
Fair Value Measurement Derivative Instruments (Details) - USD ($) $ in Millions | Dec. 31, 2015 | Dec. 31, 2014 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward exchange contracts designated as cash flow hedges, liabilities | $ 0.1 | $ 0 |
Deferred taxes and other | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Forward exchange contracts designated as cash flow hedges, assets | 2.5 | 0.7 |
Forward exchange contracts designated as cash flow hedges, liabilities | $ 0 | $ 0 |
Fair Value Measurement Cash Flo
Fair Value Measurement Cash Flow Hedging Relationships (Details) - Forward exchange contract - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss, net of tax | $ 1.7 | $ 0.9 |
Cost of goods sold | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain/(Loss) Reclassified into Earnings (Effective Portion) | $ 0.3 | $ 1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Accrual for environmental loss contingencies | $ 14.2 | $ 13.9 | |
Operating lease rent expense | 25.7 | $ 24.7 | $ 23.2 |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |||
Due in 2016 | 13.3 | ||
Due in 2017 | 10.3 | ||
Due in 2018 | 8.7 | ||
Due in 2019 | 6.7 | ||
Due in 2020 | 4.5 | ||
Due thereafter | $ 13.3 | ||
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating lease, contract term | 5 years | ||
Operating lease, renewal term | 5 years | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating lease, contract term | 25 years | ||
Operating lease, renewal term | 10 years |
Capital Stock Common Stock Outs
Capital Stock Common Stock Outstanding (Details) - shares | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Common Stock, Shares, Outstanding [Roll Forward] | |||
Common stock, shares outstanding, beginning of period (shares) | 0 | ||
Common stock, shares outstanding, end of period (shares) | 57,836,533 | 0 | |
Class A Common Stock | |||
Common Stock, Shares, Outstanding [Roll Forward] | |||
Common stock, shares outstanding, beginning of period (shares) | 7,167,506 | 7,167,000 | 7,167,000 |
Exercise of stock options/stock appreciation rights (shares) | 0 | 0 | 0 |
Director compensation arrangements, net (shares) | 0 | 0 | 0 |
Restricted/performance shares activity, net of forfeitures (shares) | 0 | 0 | 0 |
Acquisition/surrender of shares (shares) | 0 | 0 | 0 |
Conversion of stock, shares converted (shares) | 7,167,000 | ||
Common stock, shares outstanding, end of period (shares) | 0 | 7,167,506 | 7,167,000 |
Class B Common Stock | |||
Common Stock, Shares, Outstanding [Roll Forward] | |||
Common stock, shares outstanding, beginning of period (shares) | 51,328,974 | 52,005,000 | 52,069,000 |
Exercise of stock options/stock appreciation rights (shares) | 29,000 | 155,000 | 157,000 |
Director compensation arrangements, net (shares) | 17,000 | 13,000 | 16,000 |
Restricted/performance shares activity, net of forfeitures (shares) | 122,000 | 136,000 | 138,000 |
Acquisition/surrender of shares (shares) | (708,000) | (980,000) | (375,000) |
Conversion of stock, shares converted (shares) | 50,789,000 | ||
Common stock, shares outstanding, end of period (shares) | 0 | 51,328,974 | 52,005,000 |
Common Stock | |||
Common Stock, Shares, Outstanding [Roll Forward] | |||
Common stock, shares outstanding, beginning of period (shares) | 0 | 0 | 0 |
Exercise of stock options/stock appreciation rights (shares) | 0 | 0 | |
Director compensation arrangements, net (shares) | 0 | 0 | |
Restricted/performance shares activity, net of forfeitures (shares) | 0 | 0 | |
Acquisition/surrender of shares (shares) | (119,000) | 0 | 0 |
Conversion of stock, shares converted (shares) | 57,956,000 | ||
Common stock, shares outstanding, end of period (shares) | 57,836,533 | 0 | 0 |
Capital Stock Narrative (Detail
Capital Stock Narrative (Details) $ / shares in Units, $ in Millions | Dec. 23, 2015vote / sharesvote$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 22, 2015vote / shares$ / sharesshares | Dec. 31, 2014$ / sharesshares | Dec. 31, 2013shares | Dec. 31, 2012shares |
Class of Stock [Line Items] | ||||||||
Common stock, shares, outstanding (shares) | shares | 57,836,533 | 57,836,533 | 0 | |||||
Common stock, par value (USD per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Voting rights, percentage | 36.00% | |||||||
Reclassification of stock, proposed premium per share (USD per share) | $ / shares | $ 28 | |||||||
Reclassification of stock, voting rights of proposed share class (vote) | vote | 1 | |||||||
Preferred stock, shares authorized (shares) | shares | 5,900,000 | |||||||
Preferred stock, shares outstanding (shares) | shares | 0 | |||||||
Company redemption price (USD per share) | $ / shares | $ 0.01 | |||||||
Other Nonoperating Income (Expense) | ||||||||
Class of Stock [Line Items] | ||||||||
Reclassification costs | $ | $ 12.3 | $ 7.4 | $ 19.7 | |||||
Class A Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares, outstanding (shares) | shares | 0 | 0 | 7,167,506 | 7,167,000 | 7,167,000 | |||
Common stock, voting rights (votes per share) | vote / shares | 20 | |||||||
Class B Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares, outstanding (shares) | shares | 0 | 0 | 51,328,974 | 52,005,000 | 52,069,000 | |||
Common stock, par value (USD per share) | $ / shares | $ 0.01 | |||||||
Common stock, voting rights (votes per share) | vote / shares | 1 | |||||||
Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares, outstanding (shares) | shares | 57,836,533 | 57,836,533 | 0 | 0 | 0 | |||
Common stock, voting rights (votes per share) | vote / shares | 1 | |||||||
Maximum beneficial ownership percentage, for company to redeem rights | 15.00% | |||||||
Series A Junior Participating Preferred Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Preferred stock, dividend rate (USD per share) | $ / shares | $ 10 | |||||||
Preferred stock, liquidation preference (USD per share) | $ / shares | $ 100 | |||||||
Preferred stock, voting rights (vote) | vote | 1 | |||||||
Series A Junior Participating Preferred Stock | Class A Right | ||||||||
Class of Stock [Line Items] | ||||||||
Number of securities called by each warrant (shares) | shares | 0.001 | |||||||
Exercise price of warrants or rights (USD per share) | $ / shares | $ 0.3 | |||||||
Louie E. Roche Trust and Harvey Hubbell Trust | Class A Common Stock | ||||||||
Class of Stock [Line Items] | ||||||||
Common stock, shares, outstanding (shares) | shares | 3,488,460 | |||||||
Common stock, par value (USD per share) | $ / shares | $ 0.01 | |||||||
Ownership percentage, by shareholder | 49.00% |
Capital Stock Reserved Common S
Capital Stock Reserved Common Stock (Details) shares in Thousands | Dec. 31, 2015shares |
Common Stock | |
Class of Stock [Line Items] | |
Future grant of stock-based compensation | 3,756 |
Exercise of stock purchase rights | 0 |
Shares reserved under other equity compensation plans | 174 |
TOTAL | 3,930 |
Preferred Stock | |
Class of Stock [Line Items] | |
Future grant of stock-based compensation | 0 |
Exercise of stock purchase rights | 58 |
Shares reserved under other equity compensation plans | 0 |
TOTAL | 58 |
Stock-Based Compensation Narrat
Stock-Based Compensation Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Feb. 29, 2016 | Dec. 31, 2015 | Feb. 28, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of additional shares authorized (shares) | 2,800,000 | ||||||
Maximum number of shares authorized (shares) | 9,700,000 | 9,700,000 | |||||
Pre-tax stock-based compensation cost | $ 17 | $ 16.4 | $ 14.3 | ||||
Income tax benefits | (0.3) | 7.8 | 8.3 | ||||
Net tax windfall as a result of exercise or vesting of awards | 0.9 | 9.2 | 8.4 | ||||
Unrecognized compensation cost related to non-vested awards | $ 29.3 | 29.3 | |||||
Capitalized to inventory | $ 0.2 | $ 0.2 | $ 0.2 | ||||
Shares issued to non-employee directors (shares) | 8,008 | 10,329 | 12,474 | ||||
Weighted average fair vale (USD per share) | $ 97.48 | $ 97.48 | $ 106.44 | ||||
Restricted Stock Units RSU | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award performance period | 3 years | ||||||
Award vesting percentage | 100.00% | 33.33% | |||||
Shares vested (shares) | 77,000 | ||||||
Vested in period total fair value | $ 7.7 | $ 7 | $ 8.4 | ||||
Weighted average fair vale (USD per share) | $ 96.26 | $ 105.35 | $ 105.83 | ||||
Shares granted (shares) | 96,000 | ||||||
Restricted Stock Units RSU | Subsequent Event | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares vested (shares) | 8,451 | ||||||
Vested in period total fair value | $ 0.7 | ||||||
Stock Appreciation Rights SARS | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Weighted average fair vale (USD per share) | $ 97.87 | ||||||
Award vesting period | 3 years | ||||||
Award, expiration period | 10 years | ||||||
SARS exercised intrinsic value | $ 4.8 | $ 19.4 | $ 4.8 | $ 19.4 | $ 16.4 | ||
Shares granted (shares) | 364,000 | ||||||
Performance Shares - Market Condition | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award performance period | 3 years | ||||||
Weighted average fair vale (USD per share) | $ 105.77 | $ 117.55 | $ 130.33 | ||||
Shares granted (shares) | 32,687 | 28,871 | 30,730 | ||||
Performance Shares - Market Condition | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance based criteria plan payout percentage | 0.00% | ||||||
Performance Shares - Market Condition | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance based criteria plan payout percentage | 200.00% | ||||||
Performance Shares - Market Condition | Dec 2011 Grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares vested (shares) | 38,589 | ||||||
Performance based criteria plan payout percentage | 128.00% | ||||||
Vested in period total fair value | $ 4.4 | ||||||
Performance Shares - Market Condition | Subsequent Event | December 2012 Grant | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares vested (shares) | 18,425 | ||||||
Vested in period total fair value | $ 1.6 | ||||||
Market based criteria, actual payout percentage | 70.00% | ||||||
Performance Shares - Performance Condition | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award performance period | 3 years | ||||||
Shares granted (shares) | 32,687 | 27,508 | |||||
Performance share payout at target | 100.00% | 100.00% | |||||
Performance Shares - Performance Condition | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance based criteria plan payout percentage | 0.00% | ||||||
Performance Shares - Performance Condition | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Performance based criteria plan payout percentage | 250.00% | ||||||
Selling and administrative | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Pre-tax stock-based compensation cost | $ 16.2 | $ 15.7 | $ 13.4 | ||||
Cost of goods sold | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Pre-tax stock-based compensation cost | $ 0.8 | $ 0.7 | $ 0.9 |
Stock-Based Compensation Valuat
Stock-Based Compensation Valuation Assumptions (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock Price on Measurement Date (USD per share) | $ 97.48 | $ 106.44 |
Expected Dividend Yield | 2.60% | 2.10% |
Expected Volatility | 23.30% | 22.70% |
Risk Free Interest Rate | 1.30% | 1.00% |
Expected Term | 3 years | 3 years |
Weighted Avg. Grant Date Fair Value (USD per share) | $ 87.61 | $ 95.96 |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Option Activity (Details) - $ / shares shares in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Weighted Average Exercise Price (USD per share) | ||||
OUTSTANDING AT DECEMBER 31, 2014 (USD per share) | $ 95.96 | |||
Weighted average fair vale (USD per share) | $ 97.48 | 97.48 | $ 106.44 | |
OUTSTANDING AT DECEMBER 31, 2015 (USD per Share) | $ 95.96 | $ 87.61 | $ 95.96 | |
Restricted Stock Units RSU | ||||
Number of Shares | ||||
OUTSTANDING AT DECEMBER 31, 2014 (shares) | 167 | |||
Shares granted (shares) | 96 | |||
Shares vested (shares) | (77) | |||
Shares forfeited (shares) | (7) | |||
OUTSTANDING AT DECEMBER 31, 2015 (shares) | 167 | 179 | 167 | |
Weighted Average Exercise Price (USD per share) | ||||
OUTSTANDING AT DECEMBER 31, 2014 (USD per share) | $ 102.22 | |||
Weighted average fair vale (USD per share) | 96.26 | $ 105.35 | $ 105.83 | |
Shares vested (USD per share) | 99.91 | |||
Forfeited (USD per share) | 103.46 | |||
OUTSTANDING AT DECEMBER 31, 2015 (USD per Share) | $ 102.22 | $ 99.97 | $ 102.22 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Appreciation RIghts (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Exercise Price (USD per share) | |||
OUTSTANDING AT DECEMBER 31, 2014 (USD per share) | $ 95.96 | ||
Weighted average fair vale (USD per share) | $ 97.48 | 97.48 | $ 106.44 |
OUTSTANDING AT DECEMBER 31, 2015 (USD per Share) | $ 95.96 | $ 87.61 | $ 95.96 |
Stock Appreciation Rights SARS | |||
Number of Rights | |||
OUTSTANDING AT DECEMBER 31, 2014 (shares) | 1,465 | ||
Shares granted (shares) | 364 | ||
Exercised (shares) | (102) | ||
Shares forfeited (shares) | (14) | ||
Canceled (shares) | (9) | ||
OUTSTANDING AT DECEMBER 31, 2015 (shares) | 1,465 | 1,704 | 1,465 |
EXERCISABLE AT DECEMBER 31, 2015 (shares) | 1,101 | ||
Weighted Average Exercise Price (USD per share) | |||
OUTSTANDING AT DECEMBER 31, 2014 (USD per share) | $ 78.64 | ||
Weighted average fair vale (USD per share) | 97.87 | ||
Exercised (USD per share) | 59.37 | ||
Forfeited (USD per share) | 104.07 | ||
Canceled (USD per share) | 59.50 | ||
OUTSTANDING AT DECEMBER 31, 2015 (USD per Share) | $ 78.64 | 83.77 | $ 78.64 |
Options, exercisable, weighted average exercise price (USD per share) | $ 74.04 | ||
Weighted average remaining contractual term, outstanding share | 7 years 2 months 12 days | ||
Weighted average remaining contractual term, exercisable | 6 years 1 month 6 days | ||
Aggregate intrinsic value, outstanding | $ 32,492 | ||
Aggregate intrinsic value, exercisable | $ 31,237 |
Stock-Based Compensation Fair V
Stock-Based Compensation Fair Value Assumptions (Details) - $ / shares | 1 Months Ended | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected Dividend Yield | 2.60% | 2.10% | ||
Expected Volatility | 23.30% | 22.70% | ||
Risk Free Interest Rate | 1.30% | 1.00% | ||
Expected Term | 3 years | 3 years | ||
Stock Price on Measurement Date (USD per share) | $ 106.44 | $ 97.48 | $ 106.44 | |
Weighted average fair vale (USD per share) | 97.48 | $ 97.48 | $ 106.44 | |
Stock Appreciation Rights SARS | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected Dividend Yield | 2.70% | 2.00% | 1.90% | |
Expected Volatility | 22.70% | 21.80% | 28.30% | |
Risk Free Interest Rate | 1.70% | 1.60% | 1.60% | |
Expected Term | 5 years 6 months | 5 years 4 months | 5 years 5 months | |
Weighted Avg. Grant Date Fair Value of 1 SAR (USD per share) | 18.42 | $ 16.05 | $ 18.42 | $ 24.58 |
Weighted average fair vale (USD per share) | $ 97.87 | |||
Performance Shares - Market Condition | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected Dividend Yield | 2.60% | 2.10% | 1.90% | |
Expected Volatility | 23.30% | 22.70% | 33.80% | |
Risk Free Interest Rate | 1.30% | 1.00% | 0.60% | |
Expected Term | 3 years | 3 years | 3 years | |
Stock Price on Measurement Date (USD per share) | $ 106.44 | $ 97.48 | $ 106.44 | $ 107.87 |
Weighted average fair vale (USD per share) | $ 105.77 | $ 117.55 | $ 130.33 |
Stock-Based Compensation Perfor
Stock-Based Compensation Performance Shares Granted During the Period (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair vale (USD per share) | $ 97.48 | $ 97.48 | $ 106.44 |
Performance Shares | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (shares) | 24,993 | 32,687 | 24,993 |
Performance Shares | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based criteria plan payout percentage | 0.00% | 0.00% | |
Performance Shares | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance based criteria plan payout percentage | 250.00% | 250.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||||||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Earnings Per Share [Abstract] | |||||||||||||
Net Income attributable to Hubbell | $ 61.5 | $ 73.3 | $ 80.1 | $ 62.4 | $ 81.3 | $ 89.6 | $ 90.2 | $ 64.2 | $ 277.3 | $ 325.3 | $ 326.5 | ||
Less: Earning allocated to participating securities, basic | (0.7) | (0.9) | (1) | ||||||||||
Net income available to common shareholders | $ 276.6 | $ 324.4 | $ 325.5 | ||||||||||
Average number of common shares outstanding (shares) | 57,700,000 | 58,800,000 | 59,100,000 | ||||||||||
Potential dilutive shares (shares) | 300,000 | 400,000 | 500,000 | ||||||||||
Average number of diluted shares outstanding (shares) | 58,000,000 | 59,200,000 | 59,600,000 | ||||||||||
Basic (USD per share) | $ 1.06 | $ 1.27 | $ 1.39 | $ 1.07 | $ 1.39 | $ 1.52 | $ 1.53 | $ 1.08 | $ 4.79 | $ 5.51 | $ 5.51 | ||
Diluted (USD per share) | $ 1.06 | $ 1.27 | $ 1.37 | $ 1.07 | $ 1.38 | $ 1.51 | $ 1.51 | $ 1.08 | $ 4.77 | $ 5.48 | $ 5.47 | ||
Performance Shares | |||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||
Shares granted (shares) | 32,687 | 27,758 |
Accumulated Other Comprehens103
Accumulated Other Comprehensive Loss Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
BALANCE AT DECEMBER 31, 2012 | $ (164.3) | $ (71) | $ (119.1) |
Other comprehensive income (loss) before Reclassifications | (67) | (94.7) | 40.1 |
Amounts reclassified from accumulated other comprehensive loss | 7.1 | 1.4 | 8 |
Other comprehensive (loss) income | (59.9) | (93.3) | 48.1 |
BALANCE AT DECEMBER 31, 2015 | (224.2) | (164.3) | (71) |
Cash Flow Hedge (Loss) Gain | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
BALANCE AT DECEMBER 31, 2012 | 0 | (0.2) | (0.5) |
Other comprehensive income (loss) before Reclassifications | 1.7 | 0.9 | 0.6 |
Amounts reclassified from accumulated other comprehensive loss | (0.3) | (0.7) | (0.3) |
Other comprehensive (loss) income | 1.4 | 0.2 | 0.3 |
BALANCE AT DECEMBER 31, 2015 | 1.4 | 0 | (0.2) |
Unrealized Gain (Loss) on Available-for-Sale Securities | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
BALANCE AT DECEMBER 31, 2012 | 0.3 | 0.4 | 0.7 |
Other comprehensive income (loss) before Reclassifications | (0.3) | (0.1) | (0.3) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive (loss) income | (0.3) | (0.1) | (0.3) |
BALANCE AT DECEMBER 31, 2015 | 0 | 0.3 | 0.4 |
Pension and Post Retirement Benefit Plan Adjustment | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
BALANCE AT DECEMBER 31, 2012 | (124.7) | (67) | (130.1) |
Other comprehensive income (loss) before Reclassifications | (22.9) | (59.8) | 54.8 |
Amounts reclassified from accumulated other comprehensive loss | 7.4 | 2.1 | 8.3 |
Other comprehensive (loss) income | (15.5) | (57.7) | 63.1 |
BALANCE AT DECEMBER 31, 2015 | (140.2) | (124.7) | (67) |
Cumulative Translation Adjustment | |||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax [Abstract] | |||
BALANCE AT DECEMBER 31, 2012 | (39.9) | (4.2) | 10.8 |
Other comprehensive income (loss) before Reclassifications | (45.5) | (35.7) | (15) |
Amounts reclassified from accumulated other comprehensive loss | 0 | 0 | 0 |
Other comprehensive (loss) income | (45.5) | (35.7) | (15) |
BALANCE AT DECEMBER 31, 2015 | $ (85.4) | $ (39.9) | $ (4.2) |
Accumulated Other Comprehens104
Accumulated Other Comprehensive Loss Reclassifications Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of goods sold | $ 562.8 | $ 587 | $ 590.9 | $ 557.9 | $ 573.5 | $ 599.1 | $ 563.3 | $ 514.5 | $ 2,298.6 | $ 2,250.4 | $ 2,113.4 |
Income before income taxes | 418.6 | 485.5 | 473.8 | ||||||||
Provision for income taxes | (136.5) | (158.3) | (144) | ||||||||
Amounts reclassified from accumulated other comprehensive loss | (7.1) | (1.4) | (8) | ||||||||
Cash Flow Hedge (Loss) Gain | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Amounts reclassified from accumulated other comprehensive loss | 0.3 | 0.7 | 0.3 | ||||||||
Cash Flow Hedge (Loss) Gain | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Income before income taxes | 0.4 | 1 | |||||||||
Provision for income taxes | (0.1) | (0.3) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | 0.3 | 0.7 | |||||||||
Prior-service costs | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from Accumulated other comprehensive income, current period, before tax | 0.2 | 0.8 | |||||||||
Actuarial gains/(losses) | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Reclassification from Accumulated other comprehensive income, current period, before tax | (12.1) | (3.8) | |||||||||
Pension and Post Retirement Benefit Plan Adjustment | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Provision for income taxes | 4.5 | 0.9 | |||||||||
Reclassification from Accumulated other comprehensive income, current period, before tax | (11.9) | (3) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | (7.4) | (2.1) | $ (8.3) | ||||||||
Forward Contracts | Cash Flow Hedge (Loss) Gain | Reclassification out of Accumulated Other Comprehensive Income | |||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Cost of goods sold | $ 0.4 | $ 1 |
Industry Segments Information (
Industry Segments Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Sales: | |||||||||||
Net sales | $ 829.7 | $ 877 | $ 874 | $ 809.7 | $ 848.8 | $ 895.3 | $ 855.8 | $ 759.5 | $ 3,390.4 | $ 3,359.4 | $ 3,183.9 |
Operating Income: | |||||||||||
Operating Income | 474.6 | 517.4 | 507.6 | ||||||||
Interest expense | (31) | (31.2) | (30.8) | ||||||||
Income before income taxes | 418.6 | 485.5 | 473.8 | ||||||||
Assets: | |||||||||||
Assets | 3,208.7 | 3,320.1 | 3,208.7 | 3,320.1 | 3,184 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 77.1 | 60.3 | 58.8 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 85.2 | 79.2 | 70.6 | ||||||||
Operating Segments | Electrical | |||||||||||
Net Sales: | |||||||||||
Net sales | 2,388.3 | 2,398.2 | 2,262.6 | ||||||||
Operating Income: | |||||||||||
Operating Income | 279 | 337.9 | 341.1 | ||||||||
Assets: | |||||||||||
Assets | 2,120.9 | 1,963 | 2,120.9 | 1,963 | 1,813.8 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 47.9 | 35.1 | 32.4 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 56.2 | 53.4 | 48 | ||||||||
Operating Segments | Power | |||||||||||
Net Sales: | |||||||||||
Net sales | 1,002.1 | 961.2 | 921.3 | ||||||||
Operating Income: | |||||||||||
Operating Income | 195.6 | 179.5 | 166.5 | ||||||||
Assets: | |||||||||||
Assets | 839.7 | 832 | 839.7 | 832 | 707 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | 28.4 | 21.8 | 25 | ||||||||
Depreciation and Amortization: | |||||||||||
Depreciation and amortization | 29 | 25.8 | 22.6 | ||||||||
Segment Reconciling Items | |||||||||||
Operating Income: | |||||||||||
Interest expense | (31) | (31.2) | (30.8) | ||||||||
Investment income and other expense, net | (25) | (0.7) | (3) | ||||||||
Corporate, Non-Segment | General Corporate | |||||||||||
Assets: | |||||||||||
Assets | $ 248.1 | $ 525.1 | 248.1 | 525.1 | 663.2 | ||||||
Capital Expenditures: | |||||||||||
Capital expenditures | $ 0.8 | $ 3.4 | $ 1.4 |
Product Class Data (Details)
Product Class Data (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Sales: | |||||||||||
Net sales | $ 829.7 | $ 877 | $ 874 | $ 809.7 | $ 848.8 | $ 895.3 | $ 855.8 | $ 759.5 | $ 3,390.4 | $ 3,359.4 | $ 3,183.9 |
Electrical Systems | |||||||||||
Net Sales: | |||||||||||
Net sales | 1,476.7 | 1,538.7 | 1,466.4 | ||||||||
Lighting | |||||||||||
Net Sales: | |||||||||||
Net sales | 911.6 | 859.5 | 796.2 | ||||||||
Power | |||||||||||
Net Sales: | |||||||||||
Net sales | $ 1,002.1 | $ 961.2 | $ 921.3 |
Industry Segments and Geogra107
Industry Segments and Geographic Area Information Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Net Sales: | |||||||||||
Net sales | $ 829.7 | $ 877 | $ 874 | $ 809.7 | $ 848.8 | $ 895.3 | $ 855.8 | $ 759.5 | $ 3,390.4 | $ 3,359.4 | $ 3,183.9 |
Operating Income: | |||||||||||
Operating Income | 474.6 | 517.4 | 507.6 | ||||||||
Long-lived Assets: | |||||||||||
Long-Lived Assets | 1,814.8 | 1,692.2 | 1,814.8 | 1,692.2 | 1,553.7 | ||||||
Operating Segments | United States | |||||||||||
Net Sales: | |||||||||||
Net sales | 3,008.4 | 2,883.8 | 2,687.6 | ||||||||
Operating Income: | |||||||||||
Operating Income | 426.1 | 447.2 | 417.5 | ||||||||
Long-lived Assets: | |||||||||||
Long-Lived Assets | 1,627.7 | 1,492.5 | 1,627.7 | 1,492.5 | 1,341.4 | ||||||
Operating Segments | International | |||||||||||
Net Sales: | |||||||||||
Net sales | 382 | 475.6 | 496.3 | ||||||||
Operating Income: | |||||||||||
Operating Income | 48.5 | 70.2 | 90.1 | ||||||||
Long-lived Assets: | |||||||||||
Long-Lived Assets | $ 187.1 | $ 199.7 | $ 187.1 | $ 199.7 | $ 212.3 |
Industry Segments and Geogra108
Industry Segments and Geographic Area Information Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Concentration Risk [Line Items] | |||
Export sales from United States | $ 224.9 | $ 234.5 | $ 213 |
Net Sales Total | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | 14.00% | 16.00% |
Long-lived assets Total | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 12.00% | 14.00% |
SWITZERLAND | International Net Sales | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | ||
CANADA | International Net Sales | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 34.00% | ||
CANADA | International Long-lived assets | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 15.00% | ||
UNITED KINGDOM | International Net Sales | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.00% | ||
UNITED KINGDOM | International Long-lived assets | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 29.00% | ||
MEXICO | International Net Sales | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 11.00% | ||
MEXICO | International Long-lived assets | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 24.00% | ||
BRAZIL | International Net Sales | Geographic Concentration Risk | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
BALANCE AT DECEMBER 31, 2014 | $ 13.7 | $ 6.6 |
Provision | 10 | 18.3 |
Expenditures/other | (10.5) | (11.2) |
BALANCE AT DECEMBER 31, 2015 | $ 13.2 | $ 13.7 |
Restructuring Costs - By Segmen
Restructuring Costs - By Segment (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | $ 23.6 | $ 5.1 |
Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 15.3 | 3.4 |
Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 8.3 | 1.7 |
Operating Segments | Electrical | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 21.7 | 5.1 |
Operating Segments | Electrical | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 14.5 | 3.4 |
Operating Segments | Electrical | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 7.2 | 1.7 |
Operating Segments | Power | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 1.9 | 0 |
Operating Segments | Power | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | 0.8 | 0 |
Operating Segments | Power | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Pre-tax Restructuring Costs | $ 1.1 | $ 0 |
Restructuring Costs - Reserve (
Restructuring Costs - Reserve (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | $ 3.7 | |
Pre-tax Restructuring Costs | 23.6 | $ 5.1 |
Utilization and Foreign Exchange | (19.4) | |
Ending Accrued Restructuring Balance 12/31/2015 | 7.9 | 3.7 |
2015 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 19.2 | |
Utilization and Foreign Exchange | (11.4) | |
Ending Accrued Restructuring Balance 12/31/2015 | 7.8 | 0 |
2014 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 3.7 | |
Pre-tax Restructuring Costs | 4.4 | |
Utilization and Foreign Exchange | (8) | |
Ending Accrued Restructuring Balance 12/31/2015 | 0.1 | 3.7 |
Severance | 2015 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 16.1 | |
Utilization and Foreign Exchange | (8.7) | |
Ending Accrued Restructuring Balance 12/31/2015 | 7.4 | 0 |
Severance | 2014 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 2.8 | |
Pre-tax Restructuring Costs | (0.1) | |
Utilization and Foreign Exchange | (2.6) | |
Ending Accrued Restructuring Balance 12/31/2015 | 0.1 | 2.8 |
Asset write-downs | 2015 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 0.5 | |
Utilization and Foreign Exchange | (0.5) | |
Ending Accrued Restructuring Balance 12/31/2015 | 0 | 0 |
Asset write-downs | 2014 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 0.9 | |
Utilization and Foreign Exchange | (0.9) | |
Ending Accrued Restructuring Balance 12/31/2015 | 0 | 0 |
Facility closure and other costs | 2015 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0 | |
Pre-tax Restructuring Costs | 2.6 | |
Utilization and Foreign Exchange | (2.2) | |
Ending Accrued Restructuring Balance 12/31/2015 | 0.4 | 0 |
Facility closure and other costs | 2014 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/15 | 0.9 | |
Pre-tax Restructuring Costs | 3.6 | |
Utilization and Foreign Exchange | (4.5) | |
Ending Accrued Restructuring Balance 12/31/2015 | $ 0 | $ 0.9 |
Restructuring Costs - Summary o
Restructuring Costs - Summary of Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | $ 34.8 | |
Cost incurred to date | 23.6 | $ 5.1 |
Remaining costs at 12/31/15 | 6.1 | |
2015 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 25.3 | |
Cost incurred to date | 19.2 | 0 |
Remaining costs at 12/31/15 | 6.1 | |
2014 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 9.5 | |
Cost incurred to date | 4.4 | 5.1 |
Remaining costs at 12/31/15 | 0 | |
Operating Segments | Electrical | 2015 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 23.4 | |
Cost incurred to date | 17.3 | 0 |
Remaining costs at 12/31/15 | 6.1 | |
Operating Segments | Electrical | 2014 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 9.5 | |
Cost incurred to date | 4.4 | 5.1 |
Remaining costs at 12/31/15 | 0 | |
Operating Segments | Power | 2015 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 1.9 | |
Cost incurred to date | 1.9 | 0 |
Remaining costs at 12/31/15 | 0 | |
Operating Segments | Power | 2014 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Expected Costs | 0 | |
Cost incurred to date | 0 | $ 0 |
Remaining costs at 12/31/15 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Millions | Feb. 04, 2016 | Jan. 19, 2016 |
R.W. Lyall & Company | ||
Subsequent Event [Line Items] | ||
Purchase price | $ 130 | |
Electric Motion Company, Inc. | ||
Subsequent Event [Line Items] | ||
Purchase price | $ 43 |
Quarterly Financial Data (Un114
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Net sales | $ 829.7 | $ 877 | $ 874 | $ 809.7 | $ 848.8 | $ 895.3 | $ 855.8 | $ 759.5 | $ 3,390.4 | $ 3,359.4 | $ 3,183.9 |
Cost of goods sold | 562.8 | 587 | 590.9 | 557.9 | 573.5 | 599.1 | 563.3 | 514.5 | 2,298.6 | 2,250.4 | 2,113.4 |
Gross profit | 266.9 | 290 | 283.1 | 251.8 | 275.3 | 296.2 | 292.5 | 245 | 1,091.8 | 1,109 | 1,070.5 |
Selling & administrative expenses | 155 | 159 | 156.4 | 146.8 | 149.2 | 153.4 | 148.8 | 140.2 | 617.2 | 591.6 | 562.9 |
Net income | 62.7 | 74.7 | 81.3 | 63.4 | 80.6 | 90.5 | 90.8 | 65.3 | 282.1 | 327.2 | 329.8 |
Net Income attributable to Hubbell | $ 61.5 | $ 73.3 | $ 80.1 | $ 62.4 | $ 81.3 | $ 89.6 | $ 90.2 | $ 64.2 | $ 277.3 | $ 325.3 | $ 326.5 |
Earning Per Share - Basic (USD per share) | $ 1.06 | $ 1.27 | $ 1.39 | $ 1.07 | $ 1.39 | $ 1.52 | $ 1.53 | $ 1.08 | $ 4.79 | $ 5.51 | $ 5.51 |
Earning Per Share - Diluted (USD per share) | $ 1.06 | $ 1.27 | $ 1.37 | $ 1.07 | $ 1.38 | $ 1.51 | $ 1.51 | $ 1.08 | $ 4.77 | $ 5.48 | $ 5.47 |
Scenario, Previously Reported | |||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||
Cost of goods sold | $ 585.9 | $ 589.9 | $ 557 | ||||||||
Gross profit | 291.1 | 284.1 | 252.7 | ||||||||
Selling & administrative expenses | $ 160.1 | $ 157.4 | $ 147.7 |
Quarterly Financial Data (Un115
Quarterly Financial Data (Unaudited) (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Selling & administrative expenses | $ 155 | $ 159 | $ 156.4 | $ 146.8 | $ 149.2 | $ 153.4 | $ 148.8 | $ 140.2 | $ 617.2 | $ 591.6 | $ 562.9 | ||
Cost of goods sold | 562.8 | 587 | 590.9 | 557.9 | 573.5 | 599.1 | 563.3 | 514.5 | 2,298.6 | 2,250.4 | 2,113.4 | ||
Gross profit | $ 266.9 | 290 | 283.1 | 251.8 | $ 275.3 | $ 296.2 | $ 292.5 | $ 245 | $ 1,091.8 | $ 1,109 | $ 1,070.5 | ||
Restatement Adjustment | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Selling & administrative expenses | (1.1) | (1) | (0.9) | $ (1.9) | $ (3) | ||||||||
Cost of goods sold | 1.1 | 1.1 | 0.9 | $ 1.9 | $ 3 | ||||||||
Scenario, Previously Reported | |||||||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||||||
Selling & administrative expenses | 160.1 | 157.4 | 147.7 | ||||||||||
Cost of goods sold | 585.9 | 589.9 | 557 | ||||||||||
Gross profit | $ 291.1 | $ 284.1 | $ 252.7 |
Valuation and Qualifying Acc116
Valuation and Qualifying Accounts and Reserves (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Allowances for doubtful accounts receivable: | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 3.4 | $ 2.1 | $ 3.2 |
Additions / (Reversals) Charged to Costs and Expenses | 2.7 | 1.6 | (0.2) |
Deductions | (1.4) | (0.3) | (0.9) |
Acquisitions | 0 | 0 | 0 |
Balance at End of Year | 4.7 | 3.4 | 2.1 |
Allowance for credit memos, returns and cash discounts: | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 36.7 | 31.6 | 22.9 |
Additions / (Reversals) Charged to Costs and Expenses | 233.2 | 222.4 | 208 |
Deductions | (228.4) | (217.3) | (199.3) |
Acquisitions | 0 | 0 | 0 |
Balance at End of Year | 41.5 | 36.7 | 31.6 |
Valuation allowance on deferred tax assets: | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 34.3 | 28.5 | 26.1 |
Additions / (Reversals) Charged to Costs and Expenses | (12.3) | 4.5 | 2.6 |
Deductions | 0 | 0 | (0.2) |
Acquisitions | 0 | 1.3 | 0 |
Balance at End of Year | $ 22 | $ 34.3 | $ 28.5 |