Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2016 | Oct. 20, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Entity Registrant Name | HUBBELL INCORPORATED | |
Entity Central Index Key | 48,898 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock Shares Outstanding (in shares) | 55,356,848 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Income Statement [Abstract] | ||||
Net sales | $ 907.4 | $ 877 | $ 2,651 | $ 2,560.7 |
Cost of goods sold | 618.7 | 587 | 1,808.9 | 1,735.8 |
Gross profit | 288.7 | 290 | 842.1 | 824.9 |
Selling & administrative expenses | 152.7 | 159 | 472.1 | 462.2 |
Operating income | 136 | 131 | 370 | 362.7 |
Interest expense, net | (11.6) | (7.6) | (31.9) | (22.7) |
Other (expense) income, net | (0.3) | (8.3) | (5.6) | (12.1) |
Total other expense | (11.9) | (15.9) | (37.5) | (34.8) |
Income before income taxes | 124.1 | 115.1 | 332.5 | 327.9 |
Provision for income taxes | 36 | 40.4 | 100.4 | 108.5 |
Net income | 88.1 | 74.7 | 232.1 | 219.4 |
Less: Net income attributable to noncontrolling interest | 1.4 | 1.4 | 3.5 | 3.6 |
Net income attributable to Hubbell | $ 86.7 | $ 73.3 | $ 228.6 | $ 215.8 |
Earnings per share | ||||
Basic (USD per share) | $ 1.56 | $ 1.27 | $ 4.10 | $ 3.73 |
Diluted (USD per share) | 1.56 | 1.27 | 4.08 | 3.71 |
Cash dividends per common share (USD per share) | $ 0.63 | $ 0.56 | $ 1.89 | $ 1.68 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 88.1 | $ 74.7 | $ 232.1 | $ 219.4 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustments | (2.6) | (29.9) | (15.7) | (40.1) |
Pension and post retirement benefit plans’ prior service costs and net actuarial gains, net of taxes | 2.1 | 1.8 | 6.2 | 5.3 |
Unrealized gain (loss) on investments, net of taxes | (0.2) | 0 | 0.3 | (0.1) |
Unrealized gain (loss) on cash flow hedges, net of taxes | 0.6 | 0.6 | (1.9) | 0.6 |
Other comprehensive income (loss) | (0.1) | (27.5) | (11.1) | (34.3) |
Total comprehensive income | 88 | 47.2 | 221 | 185.1 |
Less: Comprehensive income attributable to noncontrolling interest | 1.4 | 1.4 | 3.5 | 3.6 |
Comprehensive income attributable to Hubbell | $ 86.6 | $ 45.8 | $ 217.5 | $ 181.5 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | ||||
Adjustment to pension and other benefit plans, tax impact | $ (1.1) | $ (1) | $ (3.6) | $ (2.9) |
Unrealized gain or loss on investment, tax impact | 0.1 | 0 | (0.1) | 0 |
Other Comprehensive Income, Unrealized Gain (loss) on derivatives arising during the period, tax | $ (0.2) | $ (0.2) | $ 0.8 | $ (0.2) |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Current Assets | ||
Cash and cash equivalents | $ 364.5 | $ 343.5 |
Short-term investments | 13.7 | 12.2 |
Accounts receivable, net | 565.9 | 466.6 |
Inventories, net | 545.7 | 540 |
Other current assets | 31.9 | 25.5 |
Total Current Assets | 1,521.7 | 1,387.8 |
Property, Plant, and Equipment, net | 436.3 | 419.7 |
Other Assets | ||
Investments | 52.4 | 49.5 |
Goodwill | 992 | 928.5 |
Intangible assets, net | 440.7 | 372.2 |
Other long-term assets | 48 | 51 |
TOTAL ASSETS | 3,491.1 | 3,208.7 |
Current Liabilities | ||
Short-term debt | 5.8 | 48.2 |
Accounts payable | 291.5 | 289.5 |
Accrued salaries, wages and employee benefits | 72.5 | 75.3 |
Accrued insurance | 54.2 | 50.4 |
Other accrued liabilities | 153.5 | 139.7 |
Total Current Liabilities | 577.5 | 603.1 |
Long-Term Debt | 990.1 | 595.9 |
Other Non-Current Liabilities | 288.9 | 260.7 |
TOTAL LIABILITIES | 1,856.5 | 1,459.7 |
Total Hubbell Shareholders’ Equity | 1,625.5 | 1,740.6 |
Noncontrolling interest | 9.1 | 8.4 |
Total Equity | 1,634.6 | 1,749 |
TOTAL LIABILITIES AND EQUITY | $ 3,491.1 | $ 3,208.7 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash Flows from Operating Activities | ||
Net income | $ 232.1 | $ 219.4 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 68.6 | 63.6 |
Deferred income taxes | 4.3 | (10.8) |
Stock-based compensation | 13.1 | 10.8 |
Tax benefit on stock-based awards | (3.3) | (1.9) |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
Increase in accounts receivable, net | (73.8) | (60.5) |
Decrease (increase) in inventories, net | 8.6 | (70.3) |
Increase in current liabilities | 0.8 | 57 |
Changes in other assets and liabilities, net | 8.8 | 5 |
Contribution to qualified defined benefit pension plans | (1.4) | (22.1) |
Other, net | 2.9 | 2.9 |
Net cash provided by operating activities | 260.7 | 193.1 |
Cash Flows from Investing Activities | ||
Capital expenditures | (45.8) | (52.3) |
Acquisition of businesses, net of cash acquired | (172.5) | (163.3) |
Purchases of available-for-sale investments | (13.1) | (15.2) |
Proceeds from available-for-sale investments | 8.8 | 9.1 |
Other, net | 3.5 | 2.1 |
Net cash used in investing activities | (219.1) | (219.6) |
Cash Flows from Financing Activities | ||
Long-term debt borrowings | 397 | 0 |
Short-term debt borrowings, net | (47.7) | (1) |
Payment of dividends | (105.1) | (97.2) |
Payment of dividends to noncontrolling interest | (2.8) | (2.5) |
Repurchase of common shares | (246.8) | (76) |
Tax benefit on stock-based awards | 3.3 | 1.9 |
Debt issuance costs | (3.6) | 0 |
Other, net | (0.3) | 0.1 |
Net cash used in financing activities | (6) | (174.7) |
Effect of foreign currency exchange rate changes on cash and cash equivalents | (14.6) | (18.9) |
Decrease in cash and cash equivalents | 21 | (220.1) |
Cash and cash equivalents | ||
Beginning of period | 343.5 | 653.9 |
End of period | $ 364.5 | $ 433.8 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references shall include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The balance sheet at December 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. During the fourth quarter of 2015, the Company identified a misclassification of costs between Cost of goods sold and Selling & administrative expenses that 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. The impact of the misclassification was to overstate Selling & administrative expenses and understate Cost of goods sold by $1.1 million for the three months ended September 30, 2015 . Accordingly, the originally reported Cost of goods sold of $585.9 million , the originally reported Gross profit of $291.1 million and the originally reported Selling & administrative expenses of $160.1 million for the three months ended September 30, 2015 were revised by $1.1 million in the accompanying Condensed Consolidated Statement of Income. In addition, the impact of the misclassification was to overstate Selling & administrative expenses and understate Cost of goods sold by $3.0 million for the nine months ended September 30, 2015 . Accordingly, the originally reported Cost of goods sold of $1,732.8 million , the originally reported Gross profit of $827.9 million , and the originally reported Selling & administrative expenses of $465.2 million for the nine months ended September 30, 2015 were revised by $3.0 million in the accompanying Condensed Consolidated Statement of Income. Management has concluded that the misclassifications are immaterial to the previously issued quarterly financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2015 . Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update (ASU 2016-09) relating to the accounting for share-based payments. Upon adoption, from a statement of income viewpoint, the new guidance will require all income tax effects of share-based awards to be recognized in the income statement when the awards vest or are settled, and allows companies an additional election in the methods to estimate forfeitures of share-based payments. It also increases the amount an employer can withhold to satisfy the employer's statutory income tax withholding obligation while still qualifying for the exception to liability classification of the share-based awards. From a statement of cash flows viewpoint, the new guidance requires that excess tax benefits be classified as an operating activity and cash paid to a tax authority when shares are withheld to satisfy the employer's statutory income tax withholdings be classified as a financing activity. This update is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. The Company is currently assessing the impact of this standard on its financial statements. In February 2016, the FASB issued an Accounting Standards Update (ASU 2016-02) related to the accounting for leases. This guidance will require a lessee to recognize a right-to-use asset and a lease liability for both financing and operating leases, with the option of a policy election permitting an exception to this guidance for leases whose term is twelve months or less. For finance leases, the lessee will recognize interest expense and amortization of the right-of-use asset, and for operating leases the lessee will recognize a straight-line lease expense. This guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The new standard must be adopted using a modified retrospective transition at the beginning of the earliest comparative period presented. The Company is currently assessing the impact of adopting this standard on its financial statements. In May 2014, the FASB issued an Accounting Standards Update (ASU 2014-09) related to 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 is effective for fiscal years beginning after December 15, 2017 with earlier application permitted for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. This standard can be applied on either a retrospective or modified retrospective approach. Through the course of 2016 a number of ASU's have been issued which further refine the original guidance issued under ASU 2014-09 and are effective in conjunction with this original standard. The Company is currently assessing the impact of adopting these standards on its financial statements. |
Business Acquisitions
Business Acquisitions | 9 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Business Acquisitions | Business Acquisitions In the first quarter of 2016, the Company acquired all of the outstanding shares of R.W. Lyall & Company, Inc. ("Lyall"), a leader in the design and application of components and assemblies for the natural gas distribution market. Lyall was purchased for $129.1 million , net of cash received, and has been added to the Electrical segment, resulting in the recognition of intangible assets of $68.9 million and goodwill of $48.4 million . The $68.9 million of intangible assets consists primarily of customer relationships and trade names and will be amortized over a weighted average period of approximately 21 years. All of the goodwill is expected to be deductible for tax purposes. In the first quarter of 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". EMC is a leading manufacturer of grounding and connector products for the communications, power, and transportation industries and was purchased for $42.5 million , net of cash received, and has been added to the Power segment, resulting in the recognition of intangible assets of $16.9 million and goodwill of $16.4 million . The $16.9 million of intangible assets consists primarily of customer relationships and trade names and will be amortized over a weighted average period of approximately 19 years. None of the goodwill associated with the EMC acquisition is expected to be deductible for tax purposes. In the third quarter of 2016, the Company acquired all of the equity interests of Jiangsu Xiang Yuan Electric Equipment Co., Ltd. ("Longbow"). Longbow is a leading manufacturer of high voltage polymer insulators for the electric utility and railway industry. Longbow was purchased for approximately $14.2 million , net of $2.0 million cash received, of which $2.9 million was paid at closing, and the remaining approximately $13.3 million is to be paid in future installments. The purchase price is subject to customary post-closing adjustments. Longbow has been added to the Power segment. We have recognized intangible assets of $6.8 million and goodwill of $2.0 million as a result of this acquisition. The $6.8 million of intangible assets consists primarily of customer relationships and trade names and will be amortized over a weighted average period of approximately 11 years. None of the goodwill associated with the Longbow acquisition is expected to be deductible for tax purposes. 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 $ 66.2 Intangible assets 92.6 Goodwill 66.9 Net deferred taxes (8.7 ) Other liabilities assumed (31.2 ) TOTAL CONSIDERATION, NET OF CASH RECEIVED $ 185.8 The allocation of purchase price is based on preliminary estimates and assumptions, and is subject to revision based on final information received and other analysis that support the underlying estimates. We expect to complete our purchase accounting within the measurement period for each acquisition. The Condensed Consolidated Financial Statements include the results of operations of the acquired entities from the date of acquisition. Net sales and earnings related to these acquisitions for the three and nine months ended September 30, 2016 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. |
Segment Information
Segment Information | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's reporting segments consist of Electrical and Power. 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, light fixtures and controls, as well as other electrical equipment. These products are primarily sold through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms and residential product-oriented internet sites. The Electrical segment is comprised of three business groups, which have been aggregated as they have similar economic characteristics, customers and distribution channels, among other factors. The Power segment primarily serves the electric utility industry and is comprised of a wide variety of electrical distribution, transmission, and substation products with high voltage applications as well as telecommunication products. The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2016 2015 2016 2015 2016 2015 Three Months Ended September 30, Electrical $ 634.6 $ 617.5 $ 80.9 $ 78.8 12.7 % 12.8 % Power 272.8 259.5 55.1 52.2 20.2 % 20.1 % TOTAL $ 907.4 $ 877.0 $ 136.0 $ 131.0 15.0 % 14.9 % Nine Months Ended September 30, Electrical $ 1,858.7 $ 1,802.3 $ 213.5 $ 216.6 11.5 % 12.0 % Power 792.3 758.4 156.5 146.1 19.8 % 19.3 % TOTAL $ 2,651.0 $ 2,560.7 $ 370.0 $ 362.7 14.0 % 14.2 % |
Inventories, net
Inventories, net | 9 Months Ended |
Sep. 30, 2016 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories, net | Inventories, net Inventories, net are comprised of the following (in millions): September 30, 2016 December 31, 2015 Raw material $ 166.8 $ 167.5 Work-in-process 105.2 99.6 Finished goods 343.4 342.6 615.4 609.7 Excess of FIFO over LIFO cost basis (69.7 ) (69.7 ) TOTAL $ 545.7 $ 540.0 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, net | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, net | Goodwill and Intangible Assets, net Changes in the carrying values of goodwill for the nine months ended September 30, 2016 , by segment, were as follows (in millions): Segment Electrical Power Total BALANCE DECEMBER 31, 2015 $ 611.2 $ 317.3 $ 928.5 Current year acquisitions (Note 2 – Business Acquisitions) 48.4 18.5 66.9 Foreign currency translation and prior year acquisitions (4.7 ) 1.3 (3.4 ) BALANCE SEPTEMBER 30, 2016 $ 654.9 $ 337.1 $ 992.0 In 2016, the Company completed the acquisitions of Lyall, EMC and Longbow. The Lyall acquisition was added to the Electrical segment, while the EMC and Longbow acquisitions were added to the Power segment. These acquisitions have been accounted for as business combinations and have resulted in the recognition of $66.9 million of goodwill. See Note 2 – Business Acquisitions for additional information. The carrying value of other intangible assets included in Intangible assets, net in the Condensed Consolidated Balance Sheet is as follows (in millions): September 30, 2016 December 31, 2015 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 144.6 $ (42.6 ) $ 133.8 $ (38.0 ) Customer/agent relationships and other 407.8 (122.7 ) 331.2 (108.3 ) Total $ 552.4 $ (165.3 ) $ 465.0 $ (146.3 ) Indefinite-lived: Tradenames and other 53.6 — 53.5 — TOTAL $ 606.0 $ (165.3 ) $ 518.5 $ (146.3 ) Amortization expense associated with definite-lived intangible assets was $24.0 million and $20.9 million for the nine months ended September 30, 2016 and 2015 , respectively. Future amortization expense associated with these intangible assets is expected to be $8.3 million for the remainder of 2016 , $32.6 million in 2017 , $31.1 million in 2018 , $29.0 million in 2019 , $28.0 million in 2020 , and $27.1 million in 2021 . |
Other Accrued Liabilities
Other Accrued Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities are comprised of the following (in millions): September 30, 2016 December 31, 2015 Customer program incentives $ 34.5 $ 40.7 Accrued income taxes 5.1 2.1 Deferred revenue 14.6 15.0 Other 99.3 81.9 TOTAL $ 153.5 $ 139.7 |
Other Non-Current Liabilities
Other Non-Current Liabilities | 9 Months Ended |
Sep. 30, 2016 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities are comprised of the following (in millions): September 30, 2016 December 31, 2015 Pensions $ 152.1 $ 150.7 Other postretirement benefits 24.1 24.3 Deferred tax liabilities 54.9 36.1 Other 57.8 49.6 TOTAL $ 288.9 $ 260.7 |
Total Equity
Total Equity | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Total Equity | Total Equity Total equity is comprised of the following (in millions, except per share amounts): September 30, 2016 December 31, 2015 Common stock, $.01 par value: Common Stock-- authorized 200.0 shares; issued and outstanding 55.4 and 57.8 shares $ 0.6 $ 0.6 Additional paid-in capital 6.5 78.1 Retained earnings 1,853.7 1,886.1 Accumulated other comprehensive loss: Pension and post retirement benefit plan adjustment, net of tax (134.0 ) (140.2 ) Cumulative translation adjustment (101.1 ) (85.4 ) Unrealized gain on investment, net of tax 0.3 — Cash flow hedge (loss) gain, net of tax (0.5 ) 1.4 Total Accumulated other comprehensive loss (235.3 ) (224.2 ) Hubbell shareholders’ equity 1,625.5 1,740.6 Noncontrolling interest 9.1 8.4 TOTAL EQUITY $ 1,634.6 $ 1,749.0 For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against Common Stock par value, Additional paid-in capital, to the extent available, and Retained earnings. As a result of this accounting treatment, during the first nine months of 2016, $155.5 million of purchase price of repurchased shares was allocated to retained earnings. A summary of the changes in equity for the nine months ended September 30, 2016 and 2015 is provided below (in millions): Nine Months Ended September 30, 2016 2015 Hubbell Shareholders’ Equity Noncontrolling interest Total Equity Hubbell Shareholders’ Equity Noncontrolling interest Total Equity EQUITY, JANUARY 1 $ 1,740.6 $ 8.4 $ 1,749.0 $ 1,927.1 $ 8.6 $ 1,935.7 Total comprehensive income 217.5 3.5 221.0 181.5 3.6 185.1 Stock-based compensation 13.1 — 13.1 10.2 — 10.2 Income tax windfall from stock-based awards, net 2.2 — 2.2 1.9 — 1.9 Repurchase/surrender of shares of common stock (242.9 ) — (242.9 ) (79.8 ) — (79.8 ) Issuance of shares related to directors’ deferred compensation, net 0.4 — 0.4 0.2 — 0.2 Dividends to noncontrolling interest — (2.8 ) (2.8 ) — (2.5 ) (2.5 ) Cash dividends declared (105.4 ) — (105.4 ) (97.2 ) — (97.2 ) EQUITY, SEPTEMBER 30 $ 1,625.5 $ 9.1 $ 1,634.6 $ 1,943.9 $ 9.7 $ 1,953.6 The detailed components of total comprehensive income are presented in the Condensed Consolidated Statement of Comprehensive Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss A summary of the changes in Accumulated other comprehensive loss (net of tax) for the nine months ended September 30, 2016 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, 2015 $ 1.4 $ — $ (140.2 ) $ (85.4 ) $ (224.2 ) Other comprehensive income (loss) before reclassifications (1.8 ) 0.3 — (15.7 ) (17.2 ) Amounts reclassified from accumulated other comprehensive loss (0.1 ) — 6.2 — 6.1 Current period other comprehensive income (loss) (1.9 ) 0.3 6.2 (15.7 ) (11.1 ) BALANCE AT SEPTEMBER 30, 2016 $ (0.5 ) $ 0.3 $ (134.0 ) $ (101.1 ) $ (235.3 ) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2016 and 2015 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ — $ — Net sales (0.4 ) 0.6 Cost of goods sold (0.4 ) 0.6 Total before tax 0.1 (0.1 ) Tax (expense) benefit $ (0.3 ) $ 0.5 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.2 $ 0.1 (a) Actuarial gains/(losses) (3.4 ) (2.9 ) (a) (3.2 ) (2.8 ) Total before tax 1.1 1.0 Tax benefit (expense) $ (2.1 ) $ (1.8 ) (Loss) gain net of tax Losses reclassified into earnings $ (2.4 ) $ (1.3 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 - Pension and Other Benefits for additional details). Details about Accumulated Other Comprehensive Loss Components Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ (0.2 ) $ — Net sales 0.3 1.7 Cost of goods sold 0.1 1.7 Total before tax — (0.4 ) Tax (expense) benefit $ 0.1 $ 1.3 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.6 $ 0.6 (a) Actuarial gains/(losses) (10.4 ) (8.8 ) (a) (9.8 ) (8.2 ) Total before tax 3.6 2.9 Tax benefit (expense) $ (6.2 ) $ (5.3 ) (Loss) gain net of tax Losses reclassified into earnings $ (6.1 ) $ (4.0 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 - Pension and Other Benefits for additional details). |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Service-based and performance-based restricted stock awards granted by the Company are considered participating securities as these awards contain a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three and nine months ended September 30, 2016 and 2015 (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net income attributable to Hubbell $ 86.7 $ 73.3 $ 228.6 $ 215.8 Less: Earnings allocated to participating securities (0.3 ) (0.2 ) (0.7 ) (0.6 ) Net income available to common shareholders $ 86.4 $ 73.1 $ 227.9 $ 215.2 Denominator: Average number of common shares outstanding 55.3 57.7 55.6 57.8 Potential dilutive common shares 0.2 0.2 0.2 0.3 Average number of diluted shares outstanding 55.5 57.9 55.8 58.1 Earnings per share: Basic $ 1.56 $ 1.27 $ 4.10 $ 3.73 Diluted $ 1.56 $ 1.27 $ 4.08 $ 3.71 The Company did not have any significant anti-dilutive securities during the three and nine months ended September 30, 2016 and 2015 . The calculation of diluted earnings per share for the three and nine months ended September 30, 2016 excludes 55,561 and 56,147 , respectively, of performance shares that are subject to a performance condition. The calculation of diluted earnings per share for the three and nine months ended September 30, 2015 excludes 27,508 and 28,105 , respectively, of performance shares that are subject to a performance condition. These shares are excluded from the calculation of diluted earnings per share because all necessary performance conditions were not satisfied at the end of those reporting periods. |
Pension and Other Benefits
Pension and Other Benefits | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Other Benefits | Pension and Other Benefits The following table sets forth the components of net pension and other benefit costs for the three and nine months ended September 30, 2016 and 2015 (in millions): Pension Benefits Other Benefits 2016 2015 2016 2015 Three Months Ended September 30, Service cost $ 3.1 $ 4.6 $ — $ — Interest cost 10.5 10.2 0.3 0.3 Expected return on plan assets (11.3 ) (13.3 ) — — Amortization of prior service cost 0.1 0.1 (0.3 ) (0.2 ) Amortization of actuarial losses/(gains) 3.4 3.2 — — NET PERIODIC BENEFIT COST $ 5.8 $ 4.8 $ — $ 0.1 Nine Months Ended September 30, Service cost $ 10.1 $ 13.6 $ — $ — Interest cost 31.5 30.4 0.9 0.9 Expected return on plan assets (33.3 ) (39.9 ) — — Amortization of prior service cost 0.1 0.1 (0.7 ) (0.7 ) Amortization of actuarial losses/(gains) 10.4 9.1 — — NET PERIODIC BENEFIT COST $ 18.8 $ 13.3 $ 0.2 $ 0.2 Employer Contributions Although not required by ERISA and the Internal Revenue Code, the Company may elect to make a voluntary contribution to its qualified domestic defined benefit pension plan in 2016. No contributions were required in the prior year, but the Company made a voluntary contribution to its qualified domestic defined benefit pension plan of $20.0 million in January 2015. The Company anticipates making required contributions of approximately $1.9 million to its foreign pension plans during 2016 , of which $ 1.4 million has been contributed through September 30, 2016 . |
Guarantees
Guarantees | 9 Months Ended |
Sep. 30, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees in the Condensed 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 September 30, 2016 and December 31, 2015 , the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product defect warranties on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known or as historical experience indicates. Changes in the accrual for product warranties during the nine months ended September 30, 2016 and 2015 are set forth below (in millions): 2016 2015 BALANCE AT JANUARY 1, $ 13.2 $ 13.7 Provision 7.0 8.1 Expenditures/other (6.7 ) (8.1 ) BALANCE AT SEPTEMBER 30, $ 13.5 $ 13.7 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Investments At September 30, 2016 and December 31, 2015 , the Company had $55.7 million and $52.0 million , respectively, of available-for-sale securities. At September 30, 2016 our available-for-sale securities consisted of $50.8 million of municipal bonds classified in Level 2 of the fair value hierarchy, as well as $4.9 million of redeemable preferred stock classified in Level 3 of the fair value hierarchy. At December 31, 2015 our available-for-sale securities consisted of $47.4 million of municipal bonds classified in 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 Company also had $10.4 million of trading securities at September 30, 2016 and $9.7 million at December 31, 2015 that 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 table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at September 30, 2016 and December 31, 2015 (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 September 30, 2016 Money market funds (a) $ 184.4 $ — $ — $ 184.4 Available for sale investments — 50.8 4.9 55.7 Trading securities 10.4 — — 10.4 Deferred compensation plan liabilities (10.4 ) — — (10.4 ) Derivatives: Forward exchange contracts-Assets (b) — 0.2 — 0.2 Forward exchange contracts-(Liabilities) (c) — (0.4 ) — (0.4 ) TOTAL $ 184.4 $ 50.6 $ 4.9 $ 239.9 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 December 31, 2015 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 (b) — 2.5 — 2.5 Forward exchange contracts-(Liabilities) (c) — (0.1 ) — (0.1 ) TOTAL $ 210.9 $ 49.8 $ 4.6 $ 265.3 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheet. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheet. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheet. The methods and assumptions used to estimate the Level 2 and Level 3 fair values were as follows: Forward exchange contracts – The fair value of forward exchange contracts were based on quoted forward foreign exchange prices at the reporting date. Available-for-sale municipal bonds classified in Level 2 – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. 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 the three and nine months ended September 30, 2016 there were no transfers of financial assets or liabilities in or out of Level 1 or Level 2 of the fair value hierarchy. There were also no transfers in or out of Level 3 during that period. Deferred compensation plans The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. During the nine months ended September 30, 2016 and 2015 , the Company purchased $1.3 million and $1.0 million , respectively, of trading securities related to these deferred compensation plans. As a result of participant distributions, the Company sold $1.2 million of these trading securities during the nine months ended September 30, 2016 and $0.3 million during the nine months ended September 30, 2015 . 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 forecasted 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, liability or forecasted transaction are recognized in income. Derivative assets and derivative liabilities are not offset in the Condensed Consolidated Balance Sheet. Forward exchange contracts In 2016 and 2015 , the Company entered into a series of forward exchange contracts to purchase U.S. dollars in order to hedge exposure to fluctuating rates of exchange for both anticipated inventory purchases and forecasted sales by its subsidiaries that transact business in Canada. As of September 30, 2016 , the Company had 33 individual forward exchange contracts for an aggregate notional amount of $ 28.7 million , having various expiration dates through August 2017. These contracts have been designated as cash flow hedges in accordance with the accounting guidance for derivatives. The following table summarizes the results of cash flow hedging relationships for the three months ended September 30, 2016 and 2015 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) Derivative Instrument 2016 2015 (Effective Portion) 2016 2015 Forward exchange contract $ (0.3 ) $ 0.6 Net sales $ — $ — Cost of goods sold $ 0.3 $ 0.2 The following table summarizes the results of cash flow hedging relationships for the nine months ended September 30, 2016 and 2015 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) Derivative Instrument 2016 2015 (Effective Portion) 2016 2015 Forward exchange contract $ (1.8 ) $ 1.6 Net sales $ (0.2 ) $ — Cost of goods sold $ 0.3 $ 1.0 Hedge ineffectiveness was immaterial with respect to the forward exchange cash flow hedges during the three and nine months ended September 30, 2016 and 2015 . |
Commitment and Contingencies
Commitment and Contingencies | 9 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various legal proceedings arising in the normal course of its business. These proceedings include claims for damages arising out of use of the Company’s products, intellectual property, workers’ compensation and environmental matters. The Company is self-insured up to specified limits for certain types of claims, including product liability and workers’ compensation, and is fully self-insured for certain other types of claims, including environmental and intellectual property matters. The Company recognizes a liability for any contingency that in management’s judgment is probable of occurrence and can be reasonably estimated. We continually reassess the likelihood of adverse judgments and outcomes in these matters, as well as estimated ranges of possible losses based upon an analysis of each matter which includes consideration of outside legal counsel and, if applicable, other experts. On October 16, 2015, Norfolk County Retirement System, a purported former holder of the Company’s Class B common stock, filed a complaint in the United States District Court for the District of Connecticut challenging the Reclassification of the Company’s dual-class common stock into a single class of common stock (the "Reclassification"). The complaint was captioned Norfolk County Retirement System v. Cardoso, et al., No. 3:15-cv-01507-AWT. The plaintiff asserted claims against the Company’s Board of Directors, Bessemer Trust Co., N.A. (“Bessemer”), as Trustee for the Trusts, and the Company (collectively, "Defendants"). The plaintiff claimed, among other things, that the Company and its Board of Directors had violated the Company’s certificate of incorporation by agreeing to make a payment to the holders of Class A common stock in connection with the Reclassification, and that the Board of Directors had violated its fiduciary duties by structuring the Reclassification in a supposedly coercive way and by allegedly making materially misleading disclosures to shareholders. The plaintiff also claimed, among other things, that Bessemer had aided and abetted the Board of Directors' purported violation of the certificate of incorporation and breach of fiduciary duties. As relief, the plaintiff demanded an injunction against the shareholder vote on the Reclassification, damages, an award of costs and attorneys’ fees, and other relief. At the same time as filing its complaint, the plaintiff sent a derivative demand letter to the Board of Directors, making similar allegations of wrongdoing, and demanding, among other things, that the Company file suit against the Board and Bessemer to recover damages supposedly sustained by the Company. On October 20, 2015, the plaintiff moved for expedited discovery in support of a forthcoming motion for an injunction. On October 21, 2015 and November 16, 2015, the Company amended its Registration Statement on Form S-4, making clear that the repurchase of an additional $250 million of the Company’s common stock was not contingent on the transaction, and providing more information about the Company’s certificate of incorporation and the Board’s evaluation of the Reclassification. The plaintiff then withdrew its motion for expedited discovery. On February 1, 2016, the plaintiff filed an amended direct and derivative complaint. The amended complaint contains allegations and claims for relief that are generally similar to the plaintiff’s previous complaint, but also asserts that the plaintiff has the right to sue derivatively on behalf of the Company to recoup damages supposedly sustained by the Company in connection with the Reclassification and includes derivative claims. Thereafter, the plaintiff and Defendants engaged in arm's-length settlement discussions. On June 21, 2016, the plaintiff and Defendants entered into a Stipulation of Settlement (the "Stipulation"), which provides for the complete settlement, release and dismissal of all claims alleged. The settlement is subject to, among other things, court approval. Under the Stipulation, among other things, if the Stipulation is approved and the settlement becomes final, (a) for a period of 150 days from and after the date upon which the settlement becomes final, Bessemer has agreed it will refrain from engaging in any sales of the Company's common stock unless it determines, in its sole discretion, that the failure to sell the Company's common stock will constitute a breach of its fiduciary duties to the Trusts and their beneficiaries and (b) for a period of 365 days from and after the date upon which the Stipulation was executed, the Company has agreed that it will refrain from knowingly repurchasing any shares of common stock of the Company from Bessemer in a block trade, in a privately negotiated transaction between the Company and Bessemer or through a stock repurchase program similar in structure to the Company's previous stock repurchase program authorized by the Company's Board of Directors. On August 24, 2016, the Court preliminarily approved the settlement and scheduled a hearing on final approval of the settlement for November 22, 2016. |
Restructuring Costs and Other
Restructuring Costs and Other | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs and Other | Restructuring Costs and Other In the three and nine months ended September 30, 2016, we incurred costs for restructuring actions initiated in 2016 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 and the sale or exit of business units we determine non-strategic. Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Condensed Consolidated Statement of Income for the three and nine months ended September 30, 2016 and 2015 is as follows (in millions): Three Months Ended September 30, 2016 2015 2016 2015 2016 2015 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 4.2 $ 5.0 $ 0.1 $ 2.2 $ 4.3 $ 7.2 Power Segment — 0.1 0.2 0.5 0.2 0.6 Total Pre-Tax Restructuring Costs $ 4.2 $ 5.1 $ 0.3 $ 2.7 $ 4.5 $ 7.8 Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 7.8 $ 12.3 $ 5.0 $ 5.4 $ 12.8 $ 17.7 Power Segment 0.5 0.8 0.6 1.0 1.1 1.8 Total Pre-Tax Restructuring Costs $ 8.3 $ 13.1 $ 5.6 $ 6.4 $ 13.9 $ 19.5 The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Restructuring Balance 1/1/16 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 9/30/2016 2016 Restructuring Actions Severance $ — $ 7.8 $ (3.2 ) $ 4.6 Asset write-downs — 2.6 (2.6 ) — Facility closure and other costs — 1.6 (0.7 ) 0.9 Total 2016 Restructuring Actions $ — $ 12.0 $ (6.5 ) $ 5.5 2015 and Prior Restructuring Actions Severance $ 7.5 $ 0.7 $ (5.3 ) $ 2.9 Facility closure and other costs 0.4 1.2 (1.1 ) 0.5 Total 2015 and Prior Restructuring Actions $ 7.9 $ 1.9 $ (6.4 ) $ 3.4 Total Restructuring Actions $ 7.9 $ 13.9 $ (12.9 ) $ 8.9 The actual costs incurred and total expected cost of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2015 Costs incurred during first nine months of 2016 Remaining costs at 9/30/2016 2016 Restructuring Actions Electrical Segment $ 14.0 $ — $ 11.0 $ 3.0 Power Segment 1.2 — 1.0 0.2 Total 2016 Restructuring Actions $ 15.2 $ — $ 12.0 $ 3.2 2015 Restructuring Actions Electrical Segment 22.1 17.3 1.9 2.9 Power Segment 1.9 1.9 — — Total 2015 Restructuring Actions $ 24.0 $ 19.2 $ 1.9 $ 2.9 Total Restructuring Actions $ 39.2 $ 19.2 $ 13.9 $ 6.1 |
Long Term Debt and Financing Ar
Long Term Debt and Financing Arrangements | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Long Term Debt and Financing Arrangements | Long Term Debt and Financing Arrangements Long-term debt consists of the following (in millions): Maturity September 30, 2016 December 31, 2015 Senior notes at 5.95% 2018 $ 299.2 $ 298.8 Senior notes at 3.625% 2022 297.4 297.1 Senior notes at 3.35% 2026 393.5 — TOTAL LONG TERM DEBT (a) $ 990.1 $ 595.9 (a) Debt is presented net of debt issuance costs and unamortized discounts. In March 2016, the Company completed a public debt offering of $400 million of long-term unsecured, unsubordinated notes maturing in March 2026 and bearing interest at a fixed rate of 3.35% (the "2026 Notes"). Net proceeds from the issuance were $ 393.4 million after deducting the discount on the notes and offering expenses paid by the Company. The 2026 Notes are fixed rate indebtedness, are callable at any time with a make whole premium and are only subject to accelerated payment prior to maturity in the event of a default (including as a result of the Company's failure to meet certain non-financial covenants) under the indenture governing the 2026 Notes, as modified by the supplemental indenture creating such notes, or upon a change in control event as defined in such indenture. The Company was in compliance with all non-financial covenants under all Senior notes as of September 30, 2016 . As of September 30, 2016 and December 31, 2015 , the estimated fair value of the long-term debt was $1,058.8 million and $630.5 million , respectively, using quoted market prices in active markets for similar liabilities (Level 2). At December 31, 2015 , the Company had $ 48.2 million of short-term debt outstanding which consisted primarily of commercial paper. The Company had $ 5.8 million of short-term debt outstanding at September 30, 2016 . 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. The revolving credit facility serves as a backup to the Company's commercial paper program. The single financial covenant in the Credit Agreement, which the Company was in compliance with at September 30, 2016 , requires that total debt not exceed 55% of total capitalization as of the last day of each fiscal quarter of the Company. At September 30, 2016 and December 31, 2015 the revolving credit facility had not been drawn against. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references shall include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America (“U.S.”) for complete financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the nine months ended September 30, 2016 are not necessarily indicative of the results that may be expected for the year ending December 31, 2016 . The balance sheet at December 31, 2015 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by accounting principles generally accepted in the U.S. for complete financial statements. During the fourth quarter of 2015, the Company identified a misclassification of costs between Cost of goods sold and Selling & administrative expenses that 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. The impact of the misclassification was to overstate Selling & administrative expenses and understate Cost of goods sold by $1.1 million for the three months ended September 30, 2015 . Accordingly, the originally reported Cost of goods sold of $585.9 million , the originally reported Gross profit of $291.1 million and the originally reported Selling & administrative expenses of $160.1 million for the three months ended September 30, 2015 were revised by $1.1 million in the accompanying Condensed Consolidated Statement of Income. In addition, the impact of the misclassification was to overstate Selling & administrative expenses and understate Cost of goods sold by $3.0 million for the nine months ended September 30, 2015 . Accordingly, the originally reported Cost of goods sold of $1,732.8 million , the originally reported Gross profit of $827.9 million , and the originally reported Selling & administrative expenses of $465.2 million for the nine months ended September 30, 2015 were revised by $3.0 million in the accompanying Condensed Consolidated Statement of Income. Management has concluded that the misclassifications are immaterial to the previously issued quarterly financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2015 . |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued an Accounting Standards Update (ASU 2016-09) relating to the accounting for share-based payments. Upon adoption, from a statement of income viewpoint, the new guidance will require all income tax effects of share-based awards to be recognized in the income statement when the awards vest or are settled, and allows companies an additional election in the methods to estimate forfeitures of share-based payments. It also increases the amount an employer can withhold to satisfy the employer's statutory income tax withholding obligation while still qualifying for the exception to liability classification of the share-based awards. From a statement of cash flows viewpoint, the new guidance requires that excess tax benefits be classified as an operating activity and cash paid to a tax authority when shares are withheld to satisfy the employer's statutory income tax withholdings be classified as a financing activity. This update is effective for fiscal years beginning after December 15, 2016 with early adoption permitted. The Company is currently assessing the impact of this standard on its financial statements. In February 2016, the FASB issued an Accounting Standards Update (ASU 2016-02) related to the accounting for leases. This guidance will require a lessee to recognize a right-to-use asset and a lease liability for both financing and operating leases, with the option of a policy election permitting an exception to this guidance for leases whose term is twelve months or less. For finance leases, the lessee will recognize interest expense and amortization of the right-of-use asset, and for operating leases the lessee will recognize a straight-line lease expense. This guidance is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The new standard must be adopted using a modified retrospective transition at the beginning of the earliest comparative period presented. The Company is currently assessing the impact of adopting this standard on its financial statements. In May 2014, the FASB issued an Accounting Standards Update (ASU 2014-09) related to 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 is effective for fiscal years beginning after December 15, 2017 with earlier application permitted for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. This standard can be applied on either a retrospective or modified retrospective approach. Through the course of 2016 a number of ASU's have been issued which further refine the original guidance issued under ASU 2014-09 and are effective in conjunction with this original standard. The Company is currently assessing the impact of adopting these standards on its financial statements. |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
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 $ 66.2 Intangible assets 92.6 Goodwill 66.9 Net deferred taxes (8.7 ) Other liabilities assumed (31.2 ) TOTAL CONSIDERATION, NET OF CASH RECEIVED $ 185.8 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of segment information | The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2016 2015 2016 2015 2016 2015 Three Months Ended September 30, Electrical $ 634.6 $ 617.5 $ 80.9 $ 78.8 12.7 % 12.8 % Power 272.8 259.5 55.1 52.2 20.2 % 20.1 % TOTAL $ 907.4 $ 877.0 $ 136.0 $ 131.0 15.0 % 14.9 % Nine Months Ended September 30, Electrical $ 1,858.7 $ 1,802.3 $ 213.5 $ 216.6 11.5 % 12.0 % Power 792.3 758.4 156.5 146.1 19.8 % 19.3 % TOTAL $ 2,651.0 $ 2,560.7 $ 370.0 $ 362.7 14.0 % 14.2 % |
Inventories, net (Tables)
Inventories, net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Schedule of inventory, net | Inventories, net are comprised of the following (in millions): September 30, 2016 December 31, 2015 Raw material $ 166.8 $ 167.5 Work-in-process 105.2 99.6 Finished goods 343.4 342.6 615.4 609.7 Excess of FIFO over LIFO cost basis (69.7 ) (69.7 ) TOTAL $ 545.7 $ 540.0 |
Goodwill and Intangible Asset27
Goodwill and Intangible Assets, net (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | Changes in the carrying values of goodwill for the nine months ended September 30, 2016 , by segment, were as follows (in millions): Segment Electrical Power Total BALANCE DECEMBER 31, 2015 $ 611.2 $ 317.3 $ 928.5 Current year acquisitions (Note 2 – Business Acquisitions) 48.4 18.5 66.9 Foreign currency translation and prior year acquisitions (4.7 ) 1.3 (3.4 ) BALANCE SEPTEMBER 30, 2016 $ 654.9 $ 337.1 $ 992.0 |
Schedule of intangible assets | The carrying value of other intangible assets included in Intangible assets, net in the Condensed Consolidated Balance Sheet is as follows (in millions): September 30, 2016 December 31, 2015 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 144.6 $ (42.6 ) $ 133.8 $ (38.0 ) Customer/agent relationships and other 407.8 (122.7 ) 331.2 (108.3 ) Total $ 552.4 $ (165.3 ) $ 465.0 $ (146.3 ) Indefinite-lived: Tradenames and other 53.6 — 53.5 — TOTAL $ 606.0 $ (165.3 ) $ 518.5 $ (146.3 ) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accrued Liabilities [Abstract] | |
Schedule of other accrued liabilities | Other accrued liabilities are comprised of the following (in millions): September 30, 2016 December 31, 2015 Customer program incentives $ 34.5 $ 40.7 Accrued income taxes 5.1 2.1 Deferred revenue 14.6 15.0 Other 99.3 81.9 TOTAL $ 153.5 $ 139.7 |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Summary of other non-current liabilities | Other non-current liabilities are comprised of the following (in millions): September 30, 2016 December 31, 2015 Pensions $ 152.1 $ 150.7 Other postretirement benefits 24.1 24.3 Deferred tax liabilities 54.9 36.1 Other 57.8 49.6 TOTAL $ 288.9 $ 260.7 |
Total Equity(Tables)
Total Equity(Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stockholders equity | Total equity is comprised of the following (in millions, except per share amounts): September 30, 2016 December 31, 2015 Common stock, $.01 par value: Common Stock-- authorized 200.0 shares; issued and outstanding 55.4 and 57.8 shares $ 0.6 $ 0.6 Additional paid-in capital 6.5 78.1 Retained earnings 1,853.7 1,886.1 Accumulated other comprehensive loss: Pension and post retirement benefit plan adjustment, net of tax (134.0 ) (140.2 ) Cumulative translation adjustment (101.1 ) (85.4 ) Unrealized gain on investment, net of tax 0.3 — Cash flow hedge (loss) gain, net of tax (0.5 ) 1.4 Total Accumulated other comprehensive loss (235.3 ) (224.2 ) Hubbell shareholders’ equity 1,625.5 1,740.6 Noncontrolling interest 9.1 8.4 TOTAL EQUITY $ 1,634.6 $ 1,749.0 For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against Common Stock par value, Additional paid-in capital, to the extent available, and Retained earnings. As a result of this accounting treatment, during the first nine months of 2016, $155.5 million of purchase price of repurchased shares was allocated to retained earnings. A summary of the changes in equity for the nine months ended September 30, 2016 and 2015 is provided below (in millions): Nine Months Ended September 30, 2016 2015 Hubbell Shareholders’ Equity Noncontrolling interest Total Equity Hubbell Shareholders’ Equity Noncontrolling interest Total Equity EQUITY, JANUARY 1 $ 1,740.6 $ 8.4 $ 1,749.0 $ 1,927.1 $ 8.6 $ 1,935.7 Total comprehensive income 217.5 3.5 221.0 181.5 3.6 185.1 Stock-based compensation 13.1 — 13.1 10.2 — 10.2 Income tax windfall from stock-based awards, net 2.2 — 2.2 1.9 — 1.9 Repurchase/surrender of shares of common stock (242.9 ) — (242.9 ) (79.8 ) — (79.8 ) Issuance of shares related to directors’ deferred compensation, net 0.4 — 0.4 0.2 — 0.2 Dividends to noncontrolling interest — (2.8 ) (2.8 ) — (2.5 ) (2.5 ) Cash dividends declared (105.4 ) — (105.4 ) (97.2 ) — (97.2 ) EQUITY, SEPTEMBER 30 $ 1,625.5 $ 9.1 $ 1,634.6 $ 1,943.9 $ 9.7 $ 1,953.6 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income loss | A summary of the changes in Accumulated other comprehensive loss (net of tax) for the nine months ended September 30, 2016 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, 2015 $ 1.4 $ — $ (140.2 ) $ (85.4 ) $ (224.2 ) Other comprehensive income (loss) before reclassifications (1.8 ) 0.3 — (15.7 ) (17.2 ) Amounts reclassified from accumulated other comprehensive loss (0.1 ) — 6.2 — 6.1 Current period other comprehensive income (loss) (1.9 ) 0.3 6.2 (15.7 ) (11.1 ) BALANCE AT SEPTEMBER 30, 2016 $ (0.5 ) $ 0.3 $ (134.0 ) $ (101.1 ) $ (235.3 ) |
Reclassification out of accumulated other comprehensive income | A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and nine months ended September 30, 2016 and 2015 is provided below (in millions): Details about Accumulated Other Comprehensive Loss Components Three Months Ended September 30, 2016 Three Months Ended September 30, 2015 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ — $ — Net sales (0.4 ) 0.6 Cost of goods sold (0.4 ) 0.6 Total before tax 0.1 (0.1 ) Tax (expense) benefit $ (0.3 ) $ 0.5 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.2 $ 0.1 (a) Actuarial gains/(losses) (3.4 ) (2.9 ) (a) (3.2 ) (2.8 ) Total before tax 1.1 1.0 Tax benefit (expense) $ (2.1 ) $ (1.8 ) (Loss) gain net of tax Losses reclassified into earnings $ (2.4 ) $ (1.3 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 - Pension and Other Benefits for additional details). Details about Accumulated Other Comprehensive Loss Components Nine Months Ended September 30, 2016 Nine Months Ended September 30, 2015 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ (0.2 ) $ — Net sales 0.3 1.7 Cost of goods sold 0.1 1.7 Total before tax — (0.4 ) Tax (expense) benefit $ 0.1 $ 1.3 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs $ 0.6 $ 0.6 (a) Actuarial gains/(losses) (10.4 ) (8.8 ) (a) (9.8 ) (8.2 ) Total before tax 3.6 2.9 Tax benefit (expense) $ (6.2 ) $ (5.3 ) (Loss) gain net of tax Losses reclassified into earnings $ (6.1 ) $ (4.0 ) (Loss) gain net of tax (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 - Pension and Other Benefits for additional details). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Summary of the computation of earnings per share | The following table sets forth the computation of earnings per share for the three and nine months ended September 30, 2016 and 2015 (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2016 2015 2016 2015 Numerator: Net income attributable to Hubbell $ 86.7 $ 73.3 $ 228.6 $ 215.8 Less: Earnings allocated to participating securities (0.3 ) (0.2 ) (0.7 ) (0.6 ) Net income available to common shareholders $ 86.4 $ 73.1 $ 227.9 $ 215.2 Denominator: Average number of common shares outstanding 55.3 57.7 55.6 57.8 Potential dilutive common shares 0.2 0.2 0.2 0.3 Average number of diluted shares outstanding 55.5 57.9 55.8 58.1 Earnings per share: Basic $ 1.56 $ 1.27 $ 4.10 $ 3.73 Diluted $ 1.56 $ 1.27 $ 4.08 $ 3.71 |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of net pension and other benefit costs | The following table sets forth the components of net pension and other benefit costs for the three and nine months ended September 30, 2016 and 2015 (in millions): Pension Benefits Other Benefits 2016 2015 2016 2015 Three Months Ended September 30, Service cost $ 3.1 $ 4.6 $ — $ — Interest cost 10.5 10.2 0.3 0.3 Expected return on plan assets (11.3 ) (13.3 ) — — Amortization of prior service cost 0.1 0.1 (0.3 ) (0.2 ) Amortization of actuarial losses/(gains) 3.4 3.2 — — NET PERIODIC BENEFIT COST $ 5.8 $ 4.8 $ — $ 0.1 Nine Months Ended September 30, Service cost $ 10.1 $ 13.6 $ — $ — Interest cost 31.5 30.4 0.9 0.9 Expected return on plan assets (33.3 ) (39.9 ) — — Amortization of prior service cost 0.1 0.1 (0.7 ) (0.7 ) Amortization of actuarial losses/(gains) 10.4 9.1 — — NET PERIODIC BENEFIT COST $ 18.8 $ 13.3 $ 0.2 $ 0.2 |
Guarantees (Tables)
Guarantees (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Schedule of product warranty liability | Changes in the accrual for product warranties during the nine months ended September 30, 2016 and 2015 are set forth below (in millions): 2016 2015 BALANCE AT JANUARY 1, $ 13.2 $ 13.7 Provision 7.0 8.1 Expenditures/other (6.7 ) (8.1 ) BALANCE AT SEPTEMBER 30, $ 13.5 $ 13.7 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Summary of financial assets and liability by fair value hierarchy level | The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at September 30, 2016 and December 31, 2015 (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 September 30, 2016 Money market funds (a) $ 184.4 $ — $ — $ 184.4 Available for sale investments — 50.8 4.9 55.7 Trading securities 10.4 — — 10.4 Deferred compensation plan liabilities (10.4 ) — — (10.4 ) Derivatives: Forward exchange contracts-Assets (b) — 0.2 — 0.2 Forward exchange contracts-(Liabilities) (c) — (0.4 ) — (0.4 ) TOTAL $ 184.4 $ 50.6 $ 4.9 $ 239.9 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 December 31, 2015 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 (b) — 2.5 — 2.5 Forward exchange contracts-(Liabilities) (c) — (0.1 ) — (0.1 ) TOTAL $ 210.9 $ 49.8 $ 4.6 $ 265.3 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheet. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheet. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheet. |
Summary of the results of cash flow hedging relationships | The following table summarizes the results of cash flow hedging relationships for the three months ended September 30, 2016 and 2015 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) Derivative Instrument 2016 2015 (Effective Portion) 2016 2015 Forward exchange contract $ (0.3 ) $ 0.6 Net sales $ — $ — Cost of goods sold $ 0.3 $ 0.2 The following table summarizes the results of cash flow hedging relationships for the nine months ended September 30, 2016 and 2015 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) Derivative Instrument 2016 2015 (Effective Portion) 2016 2015 Forward exchange contract $ (1.8 ) $ 1.6 Net sales $ (0.2 ) $ — Cost of goods sold $ 0.3 $ 1.0 Hedge ineffectiveness was immaterial with respect to the forward exchange cash flow hedges during the three and nine months ended September 30, 2016 and 2015 . |
Restructuring Costs and Other (
Restructuring Costs and Other (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring costs | The actual costs incurred and total expected cost of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2015 Costs incurred during first nine months of 2016 Remaining costs at 9/30/2016 2016 Restructuring Actions Electrical Segment $ 14.0 $ — $ 11.0 $ 3.0 Power Segment 1.2 — 1.0 0.2 Total 2016 Restructuring Actions $ 15.2 $ — $ 12.0 $ 3.2 2015 Restructuring Actions Electrical Segment 22.1 17.3 1.9 2.9 Power Segment 1.9 1.9 — — Total 2015 Restructuring Actions $ 24.0 $ 19.2 $ 1.9 $ 2.9 Total Restructuring Actions $ 39.2 $ 19.2 $ 13.9 $ 6.1 Pre-tax restructuring costs incurred in each of our segments and the location of the costs in the Condensed Consolidated Statement of Income for the three and nine months ended September 30, 2016 and 2015 is as follows (in millions): Three Months Ended September 30, 2016 2015 2016 2015 2016 2015 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 4.2 $ 5.0 $ 0.1 $ 2.2 $ 4.3 $ 7.2 Power Segment — 0.1 0.2 0.5 0.2 0.6 Total Pre-Tax Restructuring Costs $ 4.2 $ 5.1 $ 0.3 $ 2.7 $ 4.5 $ 7.8 Nine Months Ended September 30, 2016 2015 2016 2015 2016 2015 Cost of goods sold Selling & administrative expense Total Electrical Segment $ 7.8 $ 12.3 $ 5.0 $ 5.4 $ 12.8 $ 17.7 Power Segment 0.5 0.8 0.6 1.0 1.1 1.8 Total Pre-Tax Restructuring Costs $ 8.3 $ 13.1 $ 5.6 $ 6.4 $ 13.9 $ 19.5 |
Schedule of restructuring reserve by type of cost | The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Restructuring Balance 1/1/16 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 9/30/2016 2016 Restructuring Actions Severance $ — $ 7.8 $ (3.2 ) $ 4.6 Asset write-downs — 2.6 (2.6 ) — Facility closure and other costs — 1.6 (0.7 ) 0.9 Total 2016 Restructuring Actions $ — $ 12.0 $ (6.5 ) $ 5.5 2015 and Prior Restructuring Actions Severance $ 7.5 $ 0.7 $ (5.3 ) $ 2.9 Facility closure and other costs 0.4 1.2 (1.1 ) 0.5 Total 2015 and Prior Restructuring Actions $ 7.9 $ 1.9 $ (6.4 ) $ 3.4 Total Restructuring Actions $ 7.9 $ 13.9 $ (12.9 ) $ 8.9 |
Long Term Debt and Financing 37
Long Term Debt and Financing Arrangements (Tables) | 9 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Summary of long term debt | Long-term debt consists of the following (in millions): Maturity September 30, 2016 December 31, 2015 Senior notes at 5.95% 2018 $ 299.2 $ 298.8 Senior notes at 3.625% 2022 297.4 297.1 Senior notes at 3.35% 2026 393.5 — TOTAL LONG TERM DEBT (a) $ 990.1 $ 595.9 (a) Debt is presented net of debt issuance costs and unamortized discounts. |
Basis of Presentation - Narrati
Basis of Presentation - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of goods sold | $ 618.7 | $ 587 | $ 1,808.9 | $ 1,735.8 |
Gross profit | 288.7 | 290 | 842.1 | 824.9 |
Selling & administrative expenses | $ 152.7 | 159 | $ 472.1 | 462.2 |
Restatement Adjustment | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of goods sold | 1.1 | 3 | ||
Gross profit | (1.1) | (3) | ||
Selling & administrative expenses | (1.1) | (3) | ||
Scenario, Previously Reported | ||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | ||||
Cost of goods sold | 585.9 | 1,732.8 | ||
Gross profit | 291.1 | 827.9 | ||
Selling & administrative expenses | $ 160.1 | $ 465.2 |
Business Acquisitions - Narrati
Business Acquisitions - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2016 | Mar. 31, 2016 | Sep. 30, 2016 | Sep. 30, 2015 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | $ 172,500,000 | $ 163,300,000 | |||
Goodwill | $ 992,000,000 | 992,000,000 | $ 928,500,000 | ||
R.W. Lyall & Company, Inc. | |||||
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | $ 129,100,000 | ||||
Intangible assets | 68,900,000 | ||||
Goodwill | $ 48,400,000 | ||||
Intangible assets, useful life | 21 years | ||||
EMC | |||||
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | $ 42,500,000 | ||||
Intangible assets | 16,900,000 | ||||
Goodwill | 16,400,000 | ||||
Goodwill, expected to be tax deductible | $ 0 | ||||
Intangible assets, useful life | 19 years | ||||
Jiangsu Xiangyuan Electrical Equipment Co., Ltd. (Longbow) | |||||
Business Acquisition [Line Items] | |||||
Acquisition of businesses, net of cash acquired | 2,900,000 | ||||
Intangible assets | 6,800,000 | 6,800,000 | |||
Goodwill | 2,000,000 | 2,000,000 | |||
Payments to acquire business | 14,200,000 | ||||
Deferred payments to acquire business | 13,300,000 | $ 13,300,000 | |||
Cash received | $ 2,000,000 | ||||
Intangible assets, useful life | 11 years |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Business Acquisition [Line Items] | ||
Goodwill | $ 992 | $ 928.5 |
Series of Individually Immaterial Business Acquisitions | ||
Business Acquisition [Line Items] | ||
Tangible assets acquired | 66.2 | |
Intangible assets | 92.6 | |
Goodwill | 66.9 | |
Net deferred taxes | (8.7) | |
Other liabilities assumed | (31.2) | |
TOTAL CONSIDERATION, NET OF CASH RECEIVED | $ 185.8 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | Sep. 30, 2016USD ($)group | Sep. 30, 2015USD ($) | |
Segment Reporting Information [Line Items] | ||||
Net sales | $ 907.4 | $ 877 | $ 2,651 | $ 2,560.7 |
Operating Income | $ 136 | $ 131 | $ 370 | $ 362.7 |
Operating Income as a % of Net Sales | 15.00% | 14.90% | 14.00% | 14.20% |
Electrical | ||||
Segment Reporting Information [Line Items] | ||||
Number of business groups (in groups) | group | 3 | |||
Net sales | $ 634.6 | $ 617.5 | $ 1,858.7 | $ 1,802.3 |
Operating Income | $ 80.9 | $ 78.8 | $ 213.5 | $ 216.6 |
Operating Income as a % of Net Sales | 12.70% | 12.80% | 11.50% | 12.00% |
Power | ||||
Segment Reporting Information [Line Items] | ||||
Net sales | $ 272.8 | $ 259.5 | $ 792.3 | $ 758.4 |
Operating Income | $ 55.1 | $ 52.2 | $ 156.5 | $ 146.1 |
Operating Income as a % of Net Sales | 20.20% | 20.10% | 19.80% | 19.30% |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw material | $ 166.8 | $ 167.5 |
Work-in-process | 105.2 | 99.6 |
Finished goods | 343.4 | 342.6 |
Inventory, gross | 615.4 | 609.7 |
Excess of FIFO over LIFO cost basis | (69.7) | (69.7) |
TOTAL | $ 545.7 | $ 540 |
Goodwill and Intangible Asset43
Goodwill and Intangible Assets, net - Changes in Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2015 | $ 928.5 |
Current year acquisitions (Note 2 – Business Acquisitions) | 66.9 |
Foreign currency translation and prior year acquisitions | (3.4) |
BALANCE SEPTEMBER 30, 2016 | 992 |
Electrical | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2015 | 611.2 |
Current year acquisitions (Note 2 – Business Acquisitions) | 48.4 |
Foreign currency translation and prior year acquisitions | (4.7) |
BALANCE SEPTEMBER 30, 2016 | 654.9 |
Power | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2015 | 317.3 |
Current year acquisitions (Note 2 – Business Acquisitions) | 18.5 |
Foreign currency translation and prior year acquisitions | 1.3 |
BALANCE SEPTEMBER 30, 2016 | $ 337.1 |
Goodwill and Intangible Asset44
Goodwill and Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill recognized through acquisitions | $ 66.9 | |
Amortization expense | 24 | $ 20.9 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2,016 | 8.3 | |
2,017 | 32.6 | |
2,018 | 31.1 | |
2,019 | 29 | |
2,020 | 28 | |
2,021 | $ 27.1 |
Goodwill and Intangible Asset45
Goodwill and Intangible Assets, net - Other Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 552.4 | $ 465 |
Accumulated Amortization | (165.3) | (146.3) |
Total intangible assets | 606 | 518.5 |
Tradenames and other | ||
Other Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets (excluding goodwill) | 53.6 | 53.5 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 144.6 | 133.8 |
Accumulated Amortization | (42.6) | (38) |
Customer/agent relationships and other | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 407.8 | 331.2 |
Accumulated Amortization | $ (122.7) | $ (108.3) |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 34.5 | $ 40.7 |
Accrued income taxes | 5.1 | 2.1 |
Deferred revenue | 14.6 | 15 |
Other | 99.3 | 81.9 |
TOTAL | $ 153.5 | $ 139.7 |
Other Non-Current Liabilities47
Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | ||
Pensions | $ 152.1 | $ 150.7 |
Other postretirement benefits | 24.1 | 24.3 |
Deferred tax liabilities | 54.9 | 36.1 |
Other | 57.8 | 49.6 |
TOTAL | $ 288.9 | $ 260.7 |
Total Equity I (Details)
Total Equity I (Details) - USD ($) $ / shares in Units, $ in Millions | 9 Months Ended | |||
Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||
Common Stock-- authorized 200.0 shares; issued and outstanding 55.4 and 57.8 shares | $ 0.6 | $ 0.6 | ||
Additional paid-in capital | 6.5 | 78.1 | ||
Retained earnings | 1,853.7 | 1,886.1 | ||
Accumulated other comprehensive loss: | ||||
Pension and post retirement benefit plan adjustment, net of tax | (134) | (140.2) | ||
Cumulative translation adjustment | (101.1) | (85.4) | ||
Unrealized gain on investment, net of tax | 0.3 | 0 | ||
Cash flow hedge (loss) gain, net of tax | (0.5) | 1.4 | ||
Total Accumulated other comprehensive loss | (235.3) | (224.2) | ||
Hubbell shareholders’ equity | 1,625.5 | 1,740.6 | ||
Noncontrolling interest | 9.1 | 8.4 | ||
Total Equity | $ 1,634.6 | $ 1,749 | $ 1,953.6 | $ 1,935.7 |
Common stock par value per share (USD per share) | $ 0.01 | $ 0.01 | ||
Common stock, shares authorized (in shares) | 200,000,000 | 200,000,000 | ||
Common stock, shares, issued (in shares) | 55,400,000 | 57,800,000 | ||
Common stock, shares, outstanding (in shares) | 55,400,000 | 57,800,000 | ||
Retained Earnings | ||||
Accumulated other comprehensive loss: | ||||
Stock repurchased and retired during period | $ 155.5 |
Total Equity II (Details)
Total Equity II (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | $ 1,749 | $ 1,935.7 | ||
Total comprehensive income | $ 88 | $ 47.2 | 221 | 185.1 |
Stock-based compensation | 13.1 | 10.2 | ||
Income tax windfall from stock-based awards, net | 2.2 | 1.9 | ||
Repurchase/surrender of shares of common stock | (242.9) | (79.8) | ||
Issuance of shares related to directors’ deferred compensation, net | 0.4 | 0.2 | ||
Dividends to noncontrolling interest | (2.8) | (2.5) | ||
Cash dividends declared | (105.4) | (97.2) | ||
EQUITY, SEPTEMBER 30 | 1,634.6 | 1,953.6 | 1,634.6 | 1,953.6 |
Hubbell Shareholders’ Equity | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | 1,740.6 | 1,927.1 | ||
Total comprehensive income | 217.5 | 181.5 | ||
Stock-based compensation | 13.1 | 10.2 | ||
Income tax windfall from stock-based awards, net | 2.2 | 1.9 | ||
Repurchase/surrender of shares of common stock | (242.9) | (79.8) | ||
Issuance of shares related to directors’ deferred compensation, net | 0.4 | 0.2 | ||
Cash dividends declared | (105.4) | (97.2) | ||
EQUITY, SEPTEMBER 30 | 1,625.5 | 1,943.9 | 1,625.5 | 1,943.9 |
Noncontrolling interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | 8.4 | 8.6 | ||
Total comprehensive income | 3.5 | 3.6 | ||
Dividends to noncontrolling interest | (2.8) | (2.5) | ||
EQUITY, SEPTEMBER 30 | $ 9.1 | $ 9.7 | $ 9.1 | $ 9.7 |
Accumulated Other Comprehensi50
Accumulated Other Comprehensive Loss - Changes in Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | $ 1,749 | $ 1,935.7 | ||
Other comprehensive income (loss) before reclassifications | (17.2) | |||
Amounts reclassified from accumulated other comprehensive loss | $ 2.4 | $ 1.3 | 6.1 | 4 |
Current period other comprehensive income (loss) | (11.1) | |||
EQUITY, SEPTEMBER 30 | 1,634.6 | 1,953.6 | 1,634.6 | 1,953.6 |
Cash flow hedge (loss) gain | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | 1.4 | |||
Other comprehensive income (loss) before reclassifications | (1.8) | |||
Amounts reclassified from accumulated other comprehensive loss | (0.1) | |||
Current period other comprehensive income (loss) | (1.9) | |||
EQUITY, SEPTEMBER 30 | (0.5) | (0.5) | ||
Unrealized gain (loss) on available-for- sale securities | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | 0 | |||
Other comprehensive income (loss) before reclassifications | 0.3 | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Current period other comprehensive income (loss) | 0.3 | |||
EQUITY, SEPTEMBER 30 | 0.3 | 0.3 | ||
Pension and post retirement benefit plan adjustment | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | (140.2) | |||
Other comprehensive income (loss) before reclassifications | 0 | |||
Amounts reclassified from accumulated other comprehensive loss | 2.1 | $ 1.8 | 6.2 | $ 5.3 |
Current period other comprehensive income (loss) | 6.2 | |||
EQUITY, SEPTEMBER 30 | (134) | (134) | ||
Cumulative translation adjustment | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | (85.4) | |||
Other comprehensive income (loss) before reclassifications | (15.7) | |||
Amounts reclassified from accumulated other comprehensive loss | 0 | |||
Current period other comprehensive income (loss) | (15.7) | |||
EQUITY, SEPTEMBER 30 | (101.1) | (101.1) | ||
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
EQUITY, JANUARY 1 | (224.2) | |||
EQUITY, SEPTEMBER 30 | $ (235.3) | $ (235.3) |
Accumulated Other Comprehensi51
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
Net sales | $ 907.4 | $ 877 | $ 2,651 | $ 2,560.7 |
Cost of goods sold | 618.7 | 587 | 1,808.9 | 1,735.8 |
Income before income taxes | 124.1 | 115.1 | 332.5 | 327.9 |
Tax (expense) benefit | (36) | (40.4) | (100.4) | (108.5) |
(Loss) gain net of tax | (2.4) | (1.3) | (6.1) | (4) |
Cash flow hedge (loss) gain | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
(Loss) gain net of tax | 0.1 | |||
Prior-service costs | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
Reclassification from accumulated other comprehensive income, before tax | 0.2 | 0.1 | 0.6 | 0.6 |
Actuarial gains/(losses) | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
Reclassification from accumulated other comprehensive income, before tax | (3.4) | (2.9) | (10.4) | (8.8) |
Pension and post retirement benefit plan adjustment | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
Reclassification from accumulated other comprehensive income, before tax | (3.2) | (2.8) | (9.8) | (8.2) |
Reclassification from AOCI, current period, tax | 1.1 | 1 | 3.6 | 2.9 |
(Loss) gain net of tax | (2.1) | (1.8) | (6.2) | (5.3) |
Forward Contracts | Cash flow hedge (loss) gain | Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification From Accumulated Other Comprehensive Income Current Period Net Of Tax [Abstract] | ||||
Net sales | 0 | 0 | (0.2) | 0 |
Cost of goods sold | (0.4) | 0.6 | 0.3 | 1.7 |
Income before income taxes | (0.4) | 0.6 | 0.1 | 1.7 |
Tax (expense) benefit | 0.1 | (0.1) | 0 | (0.4) |
Gain (loss) net of tax | $ (0.3) | $ 0.5 | $ 0.1 | $ 1.3 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Numerator: | ||||
Net income attributable to Hubbell | $ 86.7 | $ 73.3 | $ 228.6 | $ 215.8 |
Less: Earnings allocated to participating securities | (0.3) | (0.2) | (0.7) | (0.6) |
Net income available to common shareholders | $ 86.4 | $ 73.1 | $ 227.9 | $ 215.2 |
Denominator [Abstract] | ||||
Average number of common shares outstanding (in shares) | 55.3 | 57.7 | 55.6 | 57.8 |
Potential dilutive common shares (in shares) | 0.2 | 0.2 | 0.2 | 0.3 |
Average number of diluted shares outstanding (in shares) | 55.5 | 57.9 | 55.8 | 58.1 |
Basic (USD per share) | $ 1.56 | $ 1.27 | $ 4.10 | $ 3.73 |
Diluted (USD per share) | $ 1.56 | $ 1.27 | $ 4.08 | $ 3.71 |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - Performance Shares - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
December 2,014 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share (in shares) | 55,561 | 27,508 | 28,105 | |
December 2,015 | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Shares excluded from the calculation of diluted earnings per share (in shares) | 56,147 |
Pension and Other Benefits (Det
Pension and Other Benefits (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Pension Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | $ 3.1 | $ 4.6 | $ 10.1 | $ 13.6 |
Interest cost | 10.5 | 10.2 | 31.5 | 30.4 |
Expected return on plan assets | (11.3) | (13.3) | (33.3) | (39.9) |
Amortization of prior service cost | 0.1 | 0.1 | 0.1 | 0.1 |
Amortization of actuarial losses/(gains) | 3.4 | 3.2 | 10.4 | 9.1 |
NET PERIODIC BENEFIT COST | 5.8 | 4.8 | 18.8 | 13.3 |
Other Benefits | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0.3 | 0.3 | 0.9 | 0.9 |
Expected return on plan assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | (0.3) | (0.2) | (0.7) | (0.7) |
Amortization of actuarial losses/(gains) | 0 | 0 | 0 | 0 |
NET PERIODIC BENEFIT COST | $ 0 | $ 0.1 | $ 0.2 | $ 0.2 |
Pension and Other Benefits - Na
Pension and Other Benefits - Narrative (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended |
Jan. 31, 2015 | Sep. 30, 2016 | |
United States Pension Plan of US Entity | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 20 | |
Foreign Pension Plan | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Contributions by employer | $ 1.4 | |
Defined benefit plan estimated total employer contributions in current fiscal year | $ 1.9 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
BALANCE AT JANUARY 1, | $ 13.2 | $ 13.7 |
Provision | 7 | 8.1 |
Expenditures/other | (6.7) | (8.1) |
BALANCE AT SEPTEMBER 30, | $ 13.5 | $ 13.7 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) $ in Millions | 9 Months Ended | ||
Sep. 30, 2016USD ($)contract | Sep. 30, 2015USD ($) | Dec. 31, 2015USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments | $ 55.7 | $ 52 | |
Trading securities | 10.4 | 9.7 | |
Purchase of trading securities related to deferred compensation plans | 1.3 | $ 1 | |
Proceeds from securities sold | $ 1.2 | $ 0.3 | |
Number of foreign exchange contracts held (in contracts) | contract | 33 | ||
Derivative, notional amount | $ 28.7 | ||
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 | 50.8 | 47.4 | |
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 | 4.9 | 4.6 | |
Trading securities | 0 | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale investments | 0 | 0 | |
Trading securities | $ 10.4 | $ 9.7 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities by Hierarchy Level (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Dec. 31, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money market funds | $ 184.4 | $ 210.9 |
Available for sale investments | 55.7 | 52 |
Trading securities | 10.4 | 9.7 |
Deferred compensation plan liabilities | (10.4) | (9.7) |
Derivatives: | ||
Forward exchange contracts-Assets | 0.2 | 2.5 |
Forward exchange contracts-(Liabilities) | (0.4) | (0.1) |
TOTAL | 239.9 | 265.3 |
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 | 184.4 | 210.9 |
Available for sale investments | 0 | 0 |
Trading securities | 10.4 | 9.7 |
Deferred compensation plan liabilities | (10.4) | (9.7) |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | 0 |
Forward exchange contracts-(Liabilities) | 0 | 0 |
TOTAL | 184.4 | 210.9 |
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 | 50.8 | 47.4 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0.2 | 2.5 |
Forward exchange contracts-(Liabilities) | (0.4) | (0.1) |
TOTAL | 50.6 | 49.8 |
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 | 4.9 | 4.6 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | 0 |
Forward exchange contracts-(Liabilities) | 0 | 0 |
TOTAL | $ 4.9 | $ 4.6 |
Fair Value Measurement - Cash F
Fair Value Measurement - Cash Flow Hedging Relationships (Details) - Forward exchange contract - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Loss (net of tax) | $ (0.3) | $ 0.6 | $ (1.8) | $ 1.6 |
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | 0 | 0 | 0 | 0 |
Net sales | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) | 0 | 0 | (0.2) | 0 |
Cost of goods sold | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) | $ 0.3 | $ 0.2 | $ 0.3 | $ 1 |
Commitment and Contingencies -
Commitment and Contingencies - Narrative (Details) | Oct. 20, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Stock repurchase authorized amount | $ 250,000,000 |
Restructuring Costs and Other -
Restructuring Costs and Other - By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Restructuring Costs | $ 4.5 | $ 7.8 | $ 13.9 | $ 19.5 |
Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Restructuring Costs | 4.2 | 5.1 | 8.3 | 13.1 |
Selling & administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Restructuring Costs | 0.3 | 2.7 | 5.6 | 6.4 |
Electrical | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Restructuring Costs | 4.3 | 7.2 | 12.8 | 17.7 |
Electrical | Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Restructuring Costs | 4.2 | 5 | 7.8 | 12.3 |
Electrical | Selling & administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Restructuring Costs | 0.1 | 2.2 | 5 | 5.4 |
Power | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Restructuring Costs | 0.2 | 0.6 | 1.1 | 1.8 |
Power | Cost of goods sold | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Restructuring Costs | 0 | 0.1 | 0.5 | 0.8 |
Power | Selling & administrative expense | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Pre-tax Restructuring Costs | $ 0.2 | $ 0.5 | $ 0.6 | $ 1 |
Restructuring Costs and Other62
Restructuring Costs and Other - Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2016 | Sep. 30, 2015 | |
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/16 | $ 7.9 | |||
Pre-tax Restructuring Costs | $ 4.5 | $ 7.8 | 13.9 | $ 19.5 |
Utilization and Foreign Exchange | (12.9) | |||
Ending Accrued Restructuring Balance 9/30/2016 | 8.9 | 8.9 | ||
2016 Restructuring Actions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/16 | 0 | |||
Pre-tax Restructuring Costs | 12 | |||
Utilization and Foreign Exchange | (6.5) | |||
Ending Accrued Restructuring Balance 9/30/2016 | 5.5 | 5.5 | ||
2016 Restructuring Actions | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/16 | 0 | |||
Pre-tax Restructuring Costs | 7.8 | |||
Utilization and Foreign Exchange | (3.2) | |||
Ending Accrued Restructuring Balance 9/30/2016 | 4.6 | 4.6 | ||
2016 Restructuring Actions | Asset write-downs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/16 | 0 | |||
Pre-tax Restructuring Costs | 2.6 | |||
Utilization and Foreign Exchange | (2.6) | |||
Ending Accrued Restructuring Balance 9/30/2016 | 0 | 0 | ||
2016 Restructuring Actions | Facility closure and other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/16 | 0 | |||
Pre-tax Restructuring Costs | 1.6 | |||
Utilization and Foreign Exchange | (0.7) | |||
Ending Accrued Restructuring Balance 9/30/2016 | 0.9 | 0.9 | ||
2015 and Prior Restructuring Actions | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/16 | 7.9 | |||
Pre-tax Restructuring Costs | 1.9 | |||
Utilization and Foreign Exchange | (6.4) | |||
Ending Accrued Restructuring Balance 9/30/2016 | 3.4 | 3.4 | ||
2015 and Prior Restructuring Actions | Severance | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/16 | 7.5 | |||
Pre-tax Restructuring Costs | 0.7 | |||
Utilization and Foreign Exchange | (5.3) | |||
Ending Accrued Restructuring Balance 9/30/2016 | 2.9 | 2.9 | ||
2015 and Prior Restructuring Actions | Facility closure and other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Beginning Accrued Restructuring Balance 1/1/16 | 0.4 | |||
Pre-tax Restructuring Costs | 1.2 | |||
Utilization and Foreign Exchange | (1.1) | |||
Ending Accrued Restructuring Balance 9/30/2016 | $ 0.5 | $ 0.5 |
Restructuring Costs and Other63
Restructuring Costs and Other - Summary of Costs (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Dec. 31, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | $ 39.2 | |
Costs incurred | 13.9 | $ 19.2 |
Remaining costs at 9/30/2016 | 6.1 | |
2016 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 15.2 | |
Costs incurred | 12 | 0 |
Remaining costs at 9/30/2016 | 3.2 | |
2016 Restructuring Actions | Electrical | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 14 | |
Costs incurred | 11 | 0 |
Remaining costs at 9/30/2016 | 3 | |
2016 Restructuring Actions | Power | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 1.2 | |
Costs incurred | 1 | 0 |
Remaining costs at 9/30/2016 | 0.2 | |
2015 and Prior Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 24 | |
Costs incurred | 1.9 | 19.2 |
Remaining costs at 9/30/2016 | 2.9 | |
2015 and Prior Restructuring Actions | Electrical | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 22.1 | |
Costs incurred | 1.9 | 17.3 |
Remaining costs at 9/30/2016 | 2.9 | |
2015 and Prior Restructuring Actions | Power | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 1.9 | |
Costs incurred | 0 | $ 1.9 |
Remaining costs at 9/30/2016 | $ 0 |
Long Term Debt and Financing 64
Long Term Debt and Financing Arrangements (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | |||
Long-term debt | $ 990.1 | $ 595.9 | |
Senior Notes | Senior notes at 5.95% | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 299.2 | $ 298.8 | |
Interest rate, stated percentage | 5.95% | 5.95% | |
Senior Notes | Senior notes at 3.625% | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 297.4 | $ 297.1 | |
Interest rate, stated percentage | 3.625% | 3.625% | |
Senior Notes | Senior notes at 3.35% | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 393.5 | $ 0 | |
Interest rate, stated percentage | 3.35% | 3.35% |
Long Term Debt and Financing 65
Long Term Debt and Financing Arrangements - Narrative (Details) - USD ($) | Dec. 16, 2015 | Mar. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||||
Short-term debt | $ 5,800,000 | $ 48,200,000 | ||
Debt to capitalization, financial covenant | 55.00% | |||
Line of credit outstanding | $ 0 | 0 | ||
Quoted Prices in Active Markets for Similar Assets (Level 2) | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 1,058,800,000 | $ 630,500,000 | ||
Credit Agreement | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, term | 5 years | |||
Line of credit , maximum borrowing capacity | $ 750,000,000 | |||
Senior Notes | Senior notes at 3.35% | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, face amount | $ 400,000,000 | |||
Interest rate, stated percentage | 3.35% | 3.35% | ||
Proceeds from issuance of long-term debt, net of issuance costs and discounts | $ 393,400,000 |