Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 29, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-2958 | |
Entity Registrant Name | HUBBELL INC | |
Entity Incorporation, State or Country Code | CT | |
Entity Tax Identification Number | 06-0397030 | |
Entity Address, Address Line One | 40 Waterview Drive | |
Entity Address, City or Town | Shelton, | |
Entity Address, State or Province | CT | |
Entity Address, Postal Zip Code | 06484 | |
City Area Code | (475) | |
Local Phone Number | 882-4000 | |
Title of 12(b) Security | Common Stock - par value $0.01 per share | |
Trading Symbol | HUBB | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock Shares Outstanding | 54,201,073 | |
Amendment Flag | false | |
Entity Central Index Key | 0000048898 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Income Statement [Abstract] | ||
Net sales | $ 1,090.3 | $ 1,087.3 |
Cost of goods sold | 776.8 | 780 |
Gross profit | 313.5 | 307.3 |
Selling & administrative expenses | 194.7 | 186.4 |
Operating income | 118.8 | 120.9 |
Interest expense, net | (15.1) | (17.5) |
Other expense, net | (3.8) | (5.4) |
Total other expense | (18.9) | (22.9) |
Income before income taxes | 99.9 | 98 |
Provision for income taxes | 24.2 | 24.2 |
Net income | 75.7 | 73.8 |
Less: Net income attributable to noncontrolling interest | 0.7 | 1.5 |
Net income attributable to Hubbell Incorporated | $ 75 | $ 72.3 |
Earnings per share | ||
Basic (USD per share) | $ 1.38 | $ 1.32 |
Diluted (USD per share) | 1.37 | 1.32 |
Cash dividends per common share (USD per share) | $ 0.91 | $ 0.84 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 75.7 | $ 73.8 |
Other comprehensive (loss) income: | ||
Foreign currency translation adjustments | (25.6) | 7.1 |
Defined benefit pension and post-retirement plans, net of taxes of ($0.6) and ($0.5) | 1.7 | 1.5 |
Available-for-sale investments, net of taxes of $0.0 and ($0.1) | (0.1) | 0.3 |
Unrealized gain (loss) on cash flow hedges, net of taxes of ($0.6) and $0.2 | 1.6 | (0.6) |
Other comprehensive (loss) income | (22.4) | 8.3 |
Total comprehensive income | 53.3 | 82.1 |
Less: Comprehensive income attributable to noncontrolling interest | 0.7 | 1.5 |
Comprehensive income attributable to Hubbell Incorporated | $ 52.6 | $ 80.6 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Defined benefit pension and post-retirement plans, tax | $ (0.6) | $ (0.5) |
Available-for-sale investments, tax | 0 | (0.1) |
Unrealized gain (loss) on cash flow hedges, tax | $ (0.6) | $ 0.2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Current Assets | ||
Cash and cash equivalents | $ 300 | $ 182 |
Short-term investments | 13.5 | 14.2 |
Account receivable (net of allowances of $13.6 and $7.7) | 707.7 | 683 |
Inventories, net | 595.7 | 633 |
Other current assets | 58.1 | 62 |
Total Current Assets | 1,675 | 1,574.2 |
Property, Plant, and Equipment, net | 495.5 | 505.2 |
Other Assets | ||
Investments | 53.2 | 55.7 |
Goodwill | 1,807.1 | 1,811.8 |
Other intangible assets, net | 758.8 | 781.5 |
Other long-term assets | 169.5 | 174.6 |
TOTAL ASSETS | 4,959.1 | 4,903 |
Current Liabilities | ||
Short-term debt and current portion of long-term debt | 106.7 | 65.4 |
Accounts payable | 358.4 | 347.7 |
Accrued salaries, wages and employee benefits | 65.9 | 101.5 |
Accrued insurance | 78 | 68.1 |
Other accrued liabilities | 232.3 | 262.2 |
Total Current Liabilities | 841.3 | 844.9 |
Long-Term Debt | 1,597.3 | 1,506 |
Other Non-Current Liabilities | 592 | 591.6 |
TOTAL LIABILITIES | 3,030.6 | 2,942.5 |
Hubbell Incorporated Shareholders’ Equity | 1,914.9 | 1,947.1 |
Noncontrolling interest | 13.6 | 13.4 |
Total Equity | 1,928.5 | 1,960.5 |
TOTAL LIABILITIES AND EQUITY | $ 4,959.1 | $ 4,903 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 13.6 | $ 7.7 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net income | $ 75.7 | $ 73.8 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 38.9 | 36.6 |
Deferred income taxes | 1.6 | 3 |
Stock-based compensation | 11.6 | 4.1 |
Provision for bad debt expense | 5.3 | 0.8 |
Changes in assets and liabilities, excluding effects of acquisitions: | ||
(Increase) decrease in accounts receivable, net | (36.8) | 9.3 |
Decrease (increase) in inventories, net | 32.7 | (10.7) |
Increase in accounts payable | 15.2 | 12.6 |
Decrease in current liabilities | (48.8) | (61.1) |
Changes in other assets and liabilities, net | 7.5 | 9.2 |
Contribution to qualified defined benefit pension plans | (0.1) | (0.1) |
Other, net | 5.6 | 0.6 |
Net cash provided by operating activities | 108.4 | 78.1 |
Cash Flows from Investing Activities | ||
Capital expenditures | (17.8) | (23.3) |
Acquisition of businesses, net of cash acquired | (2.1) | 0 |
Purchases of available-for-sale investments | (4.7) | (1) |
Proceeds from available-for-sale investments | 6.5 | 2.7 |
Other, net | 2.5 | 1.5 |
Net cash used in investing activities | (15.6) | (20.1) |
Cash Flows from Financing Activities | ||
Long-term debt borrowings | 100 | 0 |
Long-term debt repayments | (6.3) | (6.3) |
Short-term debt borrowings, net | 38.1 | 21.2 |
Payment of dividends to shareholders | (49.5) | (45.8) |
Payment of dividends to noncontrolling interest | (0.6) | (1) |
Repurchase of common stock | (41.3) | (10) |
Other, net | (4.7) | (1.8) |
Net cash (used) provided by financing activities | 35.7 | (43.7) |
Effect of exchange rate changes on cash and cash equivalents | (10.5) | 2 |
Increase in cash and cash equivalents | 118 | 16.3 |
Cash and cash equivalents | ||
Beginning of period | 182 | 189 |
End of period | $ 300 | $ 205.3 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020 . In the first quarter of 2020 our former Power segment was re-named Hubbell Utility Solutions ("Utility Solutions") to reflect the depth and breadth of our industry-leading offering for electric, water, gas and telecom utilities ranging from a wide variety of critical infrastructure components to full-scale smart grid solutions. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2019 . During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted global economic conditions and in the U.S., accelerated during the first half of March as federal, state and local governments reacted to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. and global economies. The extent to which the coronavirus pandemic impacts our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict and which may cause the actual results to differ from the estimates and assumptions we are required to make in the preparation of financial statements according to GAAP. Recently Adopted Accounting Pronouncements In June 2016, the FASB issued an Accounting Standards Update (ASU 2016-13), "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASC 326), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The Company adopted the requirements of the new standard in the first quarter of 2020. The adoption of this guidance and recognition of a loss allowance at an amount equal to lifetime expected credit losses for trade receivables resulted in a $1.0 million cumulative-effect adjustment to retained earnings, net of tax. In August 2018, the FASB issued an Accounting Standards Update (ASU 2018-15) "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", which clarifies the accounting for implementation costs in cloud computing arrangements. The Company adopted the standard prospectively during the first quarter of 2020 with no material impact to the consolidated financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued an Accounting Standards Update (ASU 2019-12) "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently assessing the impact of adopting this standard on its financial statements. In March 2020, FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are effective for all entities beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently assessing the impact of adopting this standard on its financial statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions in the Utility Solutions segment recognized upon delivery of the product at the destination. Revenue from service contracts and post-shipment performance obligations are approximately three percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the Utility Solutions segment. Revenue from service contracts and post-shipment performance obligations is recognized when or as those obligations are satisfied. The Company primarily offers assurance-type standard warranties that do not represent separate performance obligations and on occasion will separately offer and price extended warranties that are separate performance obligations for which the associated revenue is recognized over-time based on the extended warranty period. The Company records amounts billed to customers for reimbursement of shipping and handling costs within revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold. Sales taxes and other usage-based taxes are excluded from revenue. Within the Electrical segment, certain businesses require a portion of the transaction price to be paid in advance of transfer of control. Advance payments are not considered a significant financing component as they are received less than one year before the related performance obligations are satisfied. In addition, in the Utility Solutions segment, certain businesses offer annual maintenance service contracts that require payment at the beginning of the contract period. These payments are treated as a contract liability and are classified in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Condensed Consolidated Statements of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statements of Income on a straight-line basis over the expected term of the contract. The following table presents disaggregated revenue by business group: Three Months Ended March 31, in millions 2020 2019 Net sales Commercial and Industrial $ 213.0 $ 221.3 Construction and Energy 191.4 188.4 Lighting 201.7 220.5 Total Electrical $ 606.1 $ 630.2 Power Systems 326.3 291.9 Aclara 157.9 165.2 Total Utility Solutions $ 484.2 $ 457.1 TOTAL $ 1,090.3 $ 1,087.3 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended March 31, in millions 2020 2019 Net sales United States $ 549.7 $ 565.7 International 56.4 64.5 Total Electrical $ 606.1 $ 630.2 United States 455.5 431.2 International 28.7 25.9 Total Utility Solutions $ 484.2 $ 457.1 TOTAL $ 1,090.3 $ 1,087.3 Contract Balances Our contract liabilities consist of advance payments for products as well as deferred revenue on service obligations and extended warranties. The current portion of deferred revenue is included in Other accrued liabilities and the non-current portion of deferred revenue is included in Other non-current liabilities in the Condensed Consolidated Balance Sheets. Contract liabilities were $ 34.7 million as of March 31, 2020 compared to $ 31.0 million as of December 31, 2019. The $3.7 million increase in our contract liabilities balance was primarily due to a $ 11.0 million net increase in current year deferrals primarily due to timing of advance payments on certain orders, partially offset by the recognition of $7.3 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2020. The Company has an immaterial amount of contract assets relating to performance obligations satisfied prior to payment that is recorded in Other long-term assets in the Condensed Consolidated Balance Sheets. Impairment losses recognized on our receivables and contract assets were immaterial for the three months ended March 31, 2020 . Unsatisfied Performance Obligations As of March 31, 2020 , the Company had approximately $345 million of unsatisfied performance obligations for contracts with an original expected length of greater than one year, primarily relating to long-term contracts of the Utility Solutions segment to deliver and install meters, metering communications and grid monitoring sensor technology. The Company expects that a majority of the unsatisfied performance obligations will be completed and recognized over the next 3 years. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company's reporting segments consist of the Electrical segment and the Utility Solutions segment. In the first quarter of 2020 our former Power segment was re-named Utility Solutions to reflect the depth and breadth of our industry-leading offering for electric, water, gas and telecom utilities ranging from a wide variety of critical infrastructure components to full-scale smart grid solutions. The Electrical segment comprises businesses that sell stock and custom products including standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures and controls, components and assemblies for the natural gas distribution market and other electrical equipment. The products are typically used in and around industrial, commercial and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies. In addition, certain of our businesses design and manufacture industrial controls and communication systems used in the non-residential and industrial markets. Many of these products are designed such that they can also be used in harsh and hazardous locations where a potential for fire and explosion exists due to the presence of flammable gasses and vapors. Harsh and hazardous products are primarily used in the oil and gas (onshore and offshore) and mining industries. There are also a variety of lighting fixtures, wiring devices and electrical products that have residential and utility applications, including residential products with Internet-of-Things ("IoT") enabled technologies. These products are primarily sold through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms and residential product-oriented internet sites. Special application products are primarily sold through wholesale distributors to contractors, industrial customers and OEMs. The 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 Utility Solutions segment consists of businesses that design and manufacture various distribution, transmission, substation and telecommunications products primarily used by the electrical, water, gas, and telecommunication utility industries. These offerings include advanced metering infrastructure, meter and edge devices, software and infrastructure services, which are primarily sold to the electrical, water, and gas utility industries. In addition, certain of these products are used in the civil construction, water utility, and transportation industries. Products are sold to distributors and directly to users such as utilities, telecommunication companies, pipeline and mining operations, industrial firms, construction and engineering firms. The following table sets forth financial information by business segment (in millions): Net Sales Operating Income Operating Income as a % of Net Sales 2020 2019 2020 2019 2020 2019 Three Months Ended March 31, Electrical $ 606.1 $ 630.2 $ 58.0 $ 68.6 9.6 % 10.9 % Utility Solutions 484.2 457.1 60.8 52.3 12.5 % 11.4 % TOTAL $ 1,090.3 $ 1,087.3 $ 118.8 $ 120.9 10.9 % 11.1 % |
Inventories, net
Inventories, net | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Inventories, net | Inventories, net Inventories, net consists of the following (in millions): March 31, 2020 December 31, 2019 Raw material $ 222.4 $ 217.4 Work-in-process 108.2 101.8 Finished goods 355.1 403.6 Subtotal 685.7 722.8 Excess of FIFO over LIFO cost basis (90.0 ) (89.8 ) TOTAL $ 595.7 $ 633.0 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Changes in the carrying values of goodwill for the three months ended March 31, 2020 , were as follows (in millions): Segment Electrical Utility Solutions Total BALANCE DECEMBER 31, 2019 $ 727.7 $ 1,084.1 $ 1,811.8 Prior year acquisitions — 3.4 3.4 Foreign currency translation (4.4 ) (3.7 ) (8.1 ) BALANCE MARCH 31, 2020 $ 723.3 $ 1,083.8 $ 1,807.1 During the three months ended March 31, 2020 , we recognized an increase to the consideration paid in conjunction with our acquisition of Cantega Technologies Inc., including its wholly owned subsidiary Greenjacket Inc., and all of the issued and outstanding shares of Reliaguard Inc. (collectively "Cantega") as a result of the customary net working capital provisions in the acquisition agreements. The increase in consideration paid of $2.1 million resulted in a corresponding increase to goodwill. The goodwill is not deductible for tax purposes. The carrying value of other intangible assets included in Intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions): March 31, 2020 December 31, 2019 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 201.8 $ (66.9 ) $ 202.7 $ (65.0 ) Customer relationships, developed technology and other 856.8 (285.8 ) 861.0 (270.8 ) Total $ 1,058.6 $ (352.7 ) $ 1,063.7 $ (335.8 ) Indefinite-lived: Tradenames and other 52.9 — 53.6 — TOTAL $ 1,111.5 $ (352.7 ) $ 1,117.3 $ (335.8 ) Amortization expense associated with definite-lived intangible assets was $19.1 million and $18.2 million for the three months ended March 31, 2020 and 2019 , respectively. Future amortization expense associated with these intangible assets is estimated to be $54.8 million for the remainder of 2020 , $72.1 million in 2021 , $67.0 million in 2022 , $62.2 million in 2023 , $56.8 million in 2024 , and $52.3 million in 2025 . The Company amortizes intangible assets with definite lives using either an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets useful life, or using a straight line method. Approximately 75% of the gross value of definite-lived intangible assets follow an accelerated amortization method. |
Other Accrued Liabilities
Other Accrued Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities [Abstract] | |
Other Accrued Liabilities | Other Accrued Liabilities Other accrued liabilities consists of the following (in millions): March 31, 2020 December 31, 2019 Customer program incentives $ 28.7 $ 49.0 Accrued income taxes 10.8 6.0 Contract liabilities - deferred revenue 34.7 31.0 Customer refund liability 18.9 19.0 Accrued warranties (1) 24.2 24.0 Current operating lease liabilities 28.1 29.6 Other 86.9 103.6 TOTAL $ 232.3 $ 262.2 (1) Refer to Note 21 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2019 for additional information regarding warranties. |
Other Non-Current Liabilities
Other Non-Current Liabilities | 3 Months Ended |
Mar. 31, 2020 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Other Non-Current Liabilities | Other Non-Current Liabilities Other non-current liabilities consists of the following (in millions): March 31, 2020 December 31, 2019 Pensions $ 196.2 $ 198.5 Other post-retirement benefits 21.5 21.5 Deferred tax liabilities 125.6 126.8 Accrued warranties long-term (1) 58.3 58.1 Non-current operating lease liabilities 70.9 71.7 Other 119.5 115.0 TOTAL $ 592.0 $ 591.6 (1) Refer to Note 21 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2019 for additional information regarding warranties. |
Total Equity
Total Equity | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Total Equity | Total Equity A summary of changes in total equity for the three months ended March 31, 2020 and the three months ended March 31, 2019 is provided below (in millions, except per share amounts): Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Hubbell Shareholders' Equity Non- controlling interest BALANCE AT DECEMBER 31, 2019 $ 0.6 $ — $ 2,279.4 $ (332.9 ) $ 1,947.1 $ 13.4 Net income — — 75.0 — 75.0 0.7 Other comprehensive loss — — — (22.4 ) (22.4 ) — Stock-based compensation — 11.6 — — 11.6 — Acquisition/surrender of common shares (1) — (10.4 ) (34.1 ) — (44.5 ) — Cash dividends declared ($0.91 per share) — — (49.7 ) — (49.7 ) — Dividends to noncontrolling interest — — — — — (0.5 ) Directors deferred compensation — (1.2 ) — — (1.2 ) — Cumulative effect from adoption of CECL accounting standard (Note1) — — (1.0 ) — (1.0 ) — BALANCE AT MARCH 31, 2020 $ 0.6 $ — $ 2,269.6 $ (355.3 ) $ 1,914.9 $ 13.6 Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Hubbell Shareholders' Equity Non- controlling interest BALANCE AT DECEMBER 31, 2018 $ 0.6 $ 1.3 $ 2,064.4 $ (285.7 ) $ 1,780.6 $ 18.3 Net income — — 72.3 — 72.3 1.5 Other comprehensive (loss) income — — — 8.3 8.3 — Stock-based compensation — 4.1 — — 4.1 — Reclassification of stranded tax effects — — 30.0 (30.0 ) — — Acquisition/surrender of common shares (1) — (5.3 ) (6.3 ) — (11.6 ) — Cash dividends declared ($0.84 per share) — — (45.7 ) — (45.7 ) — Dividends to noncontrolling interest — — — — — (1.0 ) Directors deferred compensation — 0.1 — — 0.1 — BALANCE AT MARCH 31, 2019 $ 0.6 $ 0.2 $ 2,114.7 $ (307.4 ) $ 1,808.1 $ 18.8 (1) For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against common stock par value, Additional paid-in capital, to the extent available, and Retained earnings. The change in Retained earnings of $34.1 million and $6.3 million in the first quarter of 2020, and 2019, respectively, reflects this accounting treatment. The detailed components of total comprehensive income are presented in the Condensed Consolidated Statements of Comprehensive Income. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss A summary of the changes in Accumulated other comprehensive loss (net of tax) for the three months ended March 31, 2020 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, 2019 $ (0.5 ) $ 0.6 $ (203.2 ) $ (129.8 ) $ (332.9 ) Other comprehensive income (loss) before reclassifications 1.8 (0.1 ) — (25.6 ) (23.9 ) Amounts reclassified from accumulated other comprehensive loss (0.2 ) — 1.7 — 1.5 Current period other comprehensive income (loss) 1.6 (0.1 ) 1.7 (25.6 ) (22.4 ) BALANCE AT MARCH 31, 2020 $ 1.1 $ 0.5 $ (201.5 ) $ (155.4 ) $ (355.3 ) A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 is provided below (in millions): Three Months Ended March 31, Details about Accumulated Other Comprehensive Loss Components 2020 2019 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.1 $ 0.2 Net sales 0.2 0.3 Cost of goods sold 0.3 0.5 Total before tax (0.1 ) (0.2 ) Tax benefit (expense) $ 0.2 $ 0.3 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs (a) $ 0.1 $ 0.2 Actuarial gains/(losses) (a) (2.4 ) (2.2 ) (2.3 ) (2.0 ) Total before tax 0.6 0.5 Tax benefit (expense) $ (1.7 ) $ (1.5 ) Gain (loss) net of tax Gains (losses) reclassified into earnings $ (1.5 ) $ (1.2 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 – Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Service-based and performance-based restricted stock awards granted by the Company are considered participating securities as these awards contain a non-forfeitable right to dividends. The following table sets forth the computation of earnings per share for the three months ended March 31, 2020 and 2019 (in millions, except per share amounts): Three Months Ended March 31, 2020 2019 Numerator: Net income attributable to Hubbell Incorporated $ 75.0 $ 72.3 Less: Earnings allocated to participating securities (0.3 ) (0.3 ) Net income available to common shareholders $ 74.7 $ 72.0 Denominator: Average number of common shares outstanding 54.3 54.4 Potential dilutive common shares 0.3 0.2 Average number of diluted shares outstanding 54.6 54.6 Earnings per share: Basic $ 1.38 $ 1.32 Diluted $ 1.37 $ 1.32 The Company did not have outstanding any significant anti-dilutive securities during the three months ended March 31, 2020 and 2019 . |
Pension and Other Benefits
Pension and Other Benefits | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Pension and Other Benefits | Pension and Other Benefits The following table sets forth the components of net pension and other benefit costs for the three months ended March 31, 2020 and 2019 (in millions): Pension Benefits Other Benefits 2020 2019 2020 2019 Three Months Ended March 31, Service cost $ 0.3 $ 0.5 $ — $ — Interest cost 7.2 8.7 0.2 0.3 Expected return on plan assets (8.5 ) (7.6 ) — — Amortization of prior service cost — — (0.1 ) (0.2 ) Amortization of actuarial losses 2.4 2.2 — — NET PERIODIC BENEFIT COST $ 1.4 $ 3.8 $ 0.1 $ 0.1 Employer Contributions The Company anticipates making required contributions of approximately $4.3 million to its foreign pension plans during 2020 , of which $ 0.1 million has been contributed through March 31, 2020 . Although not required by ERISA and the Internal Revenue Code, the Company may elect to make additional voluntary contribution to its qualified domestic defined benefit pension plan in 2020. Additionally we anticipate making cash payments of $6.0 million and $5.0 million |
Guarantees
Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
Standard Product Warranty Disclosure [Abstract] | |
Guarantees | Guarantees The Company records a liability equal to the fair value of guarantees in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of March 31, 2020 and December 31, 2019 , the fair value and maximum potential payment related to the Company’s guarantees were not material. The Company offers product warranties that cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known, or as historical experience indicates. Changes in the accrual for product warranties during the three months ended March 31, 2020 and 2019 are set forth below (in millions): 2020 2019 BALANCE AT JANUARY 1, (a) $ 82.1 $ 92.7 Provision 4.6 3.5 Expenditures/payments/other (4.2 ) (12.0 ) BALANCE AT MARCH 31, (a) $ 82.5 $ 84.2 (a) Refer to Note 6 – Other Accrued Liabilities and Note 7 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement Financial Instruments Financial instruments which potentially subject the Company to significant concentrations of credit loss risk consist of trade receivables, cash equivalents and investments. The Company grants credit terms in the normal course of business to its customers. Due to the diversity of its product lines, the Company has an extensive customer base including electrical distributors and wholesalers, electric utilities, equipment manufacturers, electrical contractors, telecommunication companies and retail and hardware outlets. As part of its ongoing procedures, the Company monitors the credit worthiness of its customers. Bad debt write-offs have historically been minimal. The Company places its cash and cash equivalents with financial institutions and limits the amount of exposure in any one institution. At March 31, 2020 our accounts receivable balance was $707.7 million , net of allowances of $13.6 million . While we have not experienced any significant collection issues to date, during the three months ended March 31, 2020 our allowances increased approximately $5.9 million . The cumulative effect of the adoption of ASC 326 resulted in a $1.3 million increase to the opening balance. The remainder of the increase is primarily the result of our estimate of expected credit losses resulting from the deterioration of general economic conditions, including the recent declines in oil prices and potential impacts of the COVID-19 pandemic, which we anticipate could have a negative impact on certain of our customers ability to satisfy their obligations to Hubbell. Investments At March 31, 2020 and December 31, 2019 , the Company had $48.5 million and $50.7 million , respectively, of available-for-sale municipal debt securities. These investments had an amortized cost of $48.0 million and $50.1 million , respectively. No allowance for credit losses related to our available-for-sale debt securities was recorded for the three months ended March 31, 2020. As of March 31, 2020 and December 31, 2019 the unrealized losses attributable to our available-for-sale debt securities was $0.1 million and $0.1 million. The fair value of available-for-sale debt securities with unrealized losses was $8.6 million at March 31, 2020 and $3.6 million at December 31, 2019 . The Company also had trading securities of $18.1 million at March 31, 2020 and $19.2 million at December 31, 2019 that are carried on the balance sheet at fair value. Unrealized gains and losses associated with available-for-sale debt securities are reflected in Accumulated other comprehensive loss, net of tax, while unrealized gains and losses associated with trading securities are reflected in the results of operations. Fair value measurements Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows: Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly. Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions. The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at March 31, 2020 and December 31, 2019 (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 March 31, 2020 Money market funds (a) $ 159.4 $ — $ — $ 159.4 Available for sale investments — 48.5 — 48.5 Trading securities 18.1 — — 18.1 Deferred compensation plan liabilities (18.1 ) — — (18.1 ) Derivatives: Forward exchange contracts-Assets (b) — 1.9 — 1.9 TOTAL $ 159.4 $ 50.4 $ — $ 209.8 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 December 31, 2019 Money market funds (a) $ 27.5 $ — $ — $ 27.5 Available for sale investments — 50.7 — 50.7 Trading securities 19.2 — — 19.2 Deferred compensation plan liabilities (19.2 ) — — (19.2 ) Derivatives: Forward exchange contracts-(Liabilities) (c) — (0.3 ) — (0.3 ) TOTAL $ 27.5 $ 50.4 $ — $ 77.9 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets. The methods and assumptions used to estimate the Level 2 fair values were as follows: Forward exchange contracts – The fair value of forward exchange contracts was based on quoted forward foreign exchange prices at the reporting date. Available-for-sale municipal bonds classified in Level 2 – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. Deferred compensation plans The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. The Company purchased $2.2 million of trading securities related to these deferred compensation plans during each of the three months ended March 31, 2020 and 2019 . As a result of participant distributions, the Company sold $0.8 million of these trading securities during the three months ended March 31, 2020 and $0.6 million during the three months ended March 31, 2019 . 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 Sheets. In 2020 and 2019 , 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 March 31, 2020 , the Company had 31 individual forward exchange contracts for an aggregate notional amount of $34.8 million , having various expiration dates through February 2021. 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 March 31, 2020 and 2019 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Income (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) Derivative Instrument 2020 2019 (Effective Portion) 2020 2019 Forward exchange contract $ 1.8 $ (0.3 ) Net sales $ 0.1 $ 0.1 Cost of goods sold $ 0.1 $ 0.2 Long Term Debt As of March 31, 2020 and December 31, 2019 , the carrying value of long-term debt, including the $ 37.5 million and $34.4 million current portion of the Term Loan, net of unamortized discount and debt issuance costs, was $ 1,634.8 million and $1,540.4 million, respectively. The estimated fair value of the long-term debt as of March 31, 2020 and December 31, 2019 was $1,651.4 million and $1,592.2 million , respectively, using quoted market prices in active markets for similar liabilities (Level 2). |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is subject to various legal proceedings arising in the normal course of its business. These proceedings include claims for damages arising out of use of the Company’s products, intellectual property, workers’ compensation and environmental matters. The Company is self-insured up to specified limits for certain types of claims, including product liability and workers’ compensation, and is fully self-insured for certain other types of claims, including environmental and intellectual property matters. The Company recognizes a liability for any contingency that in management’s judgment is probable of occurrence and can be reasonably estimated. We continually reassess the likelihood of adverse judgments and outcomes in these matters, as well as estimated ranges of possible losses based upon an analysis of each matter which includes advice of outside legal counsel and, if applicable, other experts. |
Restructuring Costs and Other
Restructuring Costs and Other | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Costs and Other | Restructuring Costs and Other In the three months ended March 31, 2020 , we incurred costs for restructuring actions initiated in 2020 as well as costs for restructuring actions initiated in the prior years. Our restructuring actions are associated with cost reduction efforts that include the consolidation of manufacturing and distribution facilities as well as workforce reductions and the sale or exit of businesses we determine to be non-strategic. Restructuring costs include severance and employee benefits, asset impairments, accelerated depreciation, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. These costs are predominantly settled in cash from our operating activities and are generally settled within one year, with the exception of asset impairments, which are non-cash. Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statements of Income for the three months ended March 31, 2020 and 2019 is as follows (in millions): Three Months Ended March 31, 2020 2019 2020 2019 2020 2019 Cost of goods sold Selling & administrative expense Total Electrical $ 0.5 $ 0.2 $ 0.4 $ 1.0 $ 0.9 $ 1.2 Utility Solutions 2.5 0.5 0.1 1.3 2.6 1.8 Total Pre-Tax Restructuring Costs $ 3.0 $ 0.7 $ 0.5 $ 2.3 $ 3.5 $ 3.0 The following table summarizes the accrued liabilities for our restructuring actions (in millions): Beginning Accrued Restructuring Balance 1/1/20 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 3/31/2020 2020 Restructuring Actions Severance $ — $ 1.1 $ (0.3 ) $ 0.8 Asset write-downs — — — — Facility closure and other costs — 0.1 (0.1 ) — Total 2020 Restructuring Actions $ — $ 1.2 $ (0.4 ) $ 0.8 2019 and Prior Restructuring Actions Severance $ 11.3 $ (0.6 ) $ (4.0 ) $ 6.7 Asset write-downs — 0.1 (0.1 ) — Facility closure and other costs 6.1 2.8 (2.8 ) 6.1 Total 2019 and Prior Restructuring Actions $ 17.4 $ 2.3 $ (6.9 ) $ 12.8 Total Restructuring Actions $ 17.4 $ 3.5 $ (7.3 ) $ 13.6 The actual costs incurred and total expected cost in each of our reporting segments of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2019 Costs incurred in the first three months of 2020 Remaining costs at 3/31/2020 2020 Restructuring Actions Electrical $ 1.4 $ — $ 0.9 $ 0.5 Utility Solutions 0.3 — 0.3 — Total 2020 Restructuring Actions $ 1.7 $ — $ 1.2 $ 0.5 2019 and Prior Restructuring Actions Electrical $ 22.1 $ 20.5 $ — $ 1.6 Utility Solutions 21.3 11.5 2.3 7.5 Total 2019 and Prior Restructuring Actions $ 43.4 $ 32.0 $ 2.3 $ 9.1 Total Restructuring Actions $ 45.1 $ 32.0 $ 3.5 $ 9.6 |
Long Term Debt and Financing Ar
Long Term Debt and Financing Arrangements | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 December 31, 2019 Senior notes at 3.625% 2022 $ 298.9 $ 298.8 Senior notes at 3.35% 2026 395.9 395.7 Senior notes at 3.15% 2027 296.0 295.9 Senior notes at 3.50% 2028 444.3 444.0 Term loan, net of current portion of $37.5 and $34.4, respectively 2023 62.2 71.6 2018 Credit Facility 2023 100.0 — TOTAL LONG-TERM DEBT (a) $ 1,597.3 $ 1,506.0 (a) Long-term debt is presented net of debt issuance costs and unamortized discounts. The Company has a five -year revolving credit agreement (the "2018 Credit Facility") with a syndicate of lenders that provides a $750 million committed revolving credit facility. Commitments under the 2018 Credit Facility may be increased (subject to certain conditions) to an aggregate amount not to exceed $1.25 billion . The interest rate applicable to borrowings under the 2018 Credit Facility is generally either the adjusted LIBOR plus an applicable margin (determined by a ratings-based grid) or the alternate base rate. The single financial covenant in the 2018 Credit Facility requires that total debt not exceed 65% of total capitalization as of the last day of each fiscal quarter of the Company. The 2018 Credit Facility expires in February 2023. In March 2020, the Company borrowed $100 million under the 2018 Credit Facility and in April 2020, the Company borrowed an additional $125 million . The current weighted average interest rate for the Company's borrowings under the 2018 Credit Facility is 2.15% . Borrowings outstanding as of March 31, 2020 are classified within long-term debt in the Condensed Consolidated Balance Sheet. There were no borrowings outstanding at December 31, 2019. At December 31, 2019 , the Company had $65.4 million of short-term debt outstanding. The Company had $106.7 million short-term debt outstanding at March 31, 2020 , which consisted primarily of commercial paper and the current portion of the Term Loan. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation As of March 31, 2020, the Company had various stock-based awards outstanding which were issued to executives and other key employees. The Company recognizes the grant-date fair value of all stock-based awards to employees over their respective requisite service periods (generally equal to an award’s vesting period), net of estimated forfeitures. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. For those awards that vest immediately upon retirement eligibility, the Company recognizes compensation cost immediately for retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period. The Company’s long-term incentive program for awarding stock-based compensation includes a combination of restricted stock, stock appreciation rights (“SARs”), and performance shares of the Company’s common stock pursuant to the Hubbell Incorporated 2005 Incentive Award Plan as amended and restated (the "Award Plan"). Under the Award Plan, the Company may authorize up to 9.7 million shares of common stock to settle awards of restricted stock, performance shares, or SARs. The Company issues new shares to settle stock-based awards. In 2020, the Company's grant of stock-based awards included restricted stock, SARs and performance shares. Each of the compensation arrangements is discussed below. Restricted Stock The Company issues various types of restricted stock awards all of which are considered outstanding at the time of grant, as the award holders are entitled to dividends and voting rights. Unvested restricted stock awards are considered participating securities when computing earnings per share. Restricted stock grants are not transferable and are subject to forfeiture in the event of the recipient’s termination of employment prior to vesting. Restricted Stock Issued to Employees - Service Condition Restricted stock awards that vest based upon a service condition are expensed on a straight-line basis over the requisite service period. These awards generally vest in three equal installments on each of the first three anniversaries of the grant date, however in December 2018, July 2019 and February 2020 the Company granted a certain number of these awards that generally vest on the third-year anniversary of the grant date. The f air value of these awards is measured by the average of the high and low trading prices of the Company’s common stock on the most recent trading day immediately preceding the grant date (“measurement date”). In February 2020, the Company granted 80,876 restricted stock awards with a fair value per share of $149.49 . Stock Appreciation Rights SARs grant the holder the right to receive, once vested, the value in shares of the Company's common stock equal to the positive difference between the grant price, as determined using the mean of the high and low trading prices of the Company’s common stock on the measurement date, and the fair market value of the Company’s common stock on the date of exercise. This amount is payable in shares of the Company’s common stock. SARs vest and become exercisable in three equal installments during the first three years following the grant date and expire ten years from the grant date. In February 2020, the Company granted 250,080 SAR awards. The fair value of each SAR award was measured using the Black-Scholes option pricing model. The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the first three months of 2020: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR February 2020 2.5% 23.2% 1.5% 5.5 Years $25.28 The expected dividend yield was calculated by dividing the Company’s expected annual dividend by the average stock price for the past three months. Expected volatilities are based on historical volatilities of the Company’s stock for a period consistent with the expected term. The expected term of SARs granted was based upon historical exercise behavior of stock options and SARs. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the award. Performance Shares Performance shares represent the right to receive a share of the Company’s common stock subject to the achievement of certain market or performance conditions established by the Company’s Compensation Committee and measured over a three-year period. Partial vesting in these awards may occur after separation from the Company for retirement eligible employees. Shares are not vested until approved by the Company’s Compensation Committee. Performance Shares - Performance and Market Conditions In February 2020, the Company granted 63,868 shares that will vest subject to a performance condition and service requirement. The number of shares vested is then modified by a market condition as described below. Thirty-four percent of shares granted will vest based on Hubbell’s compounded annual growth rate of net sales as compared to that of the companies that comprise the S&P Capital Goods 900 index. Thirty-three percent of shares granted will vest based on achieved operating profit margin performance as compared to internal targets, and thirty-three percent of shares granted will vest based on achieved trade working capital as a percent of net sales as compared to internal targets. Each of these performance conditions is measured over the same three-year performance period. The cumulative result of these performance conditions can result in a number of shares earned in the range of 0% - 200% of the target number of shares granted. That cumulative performance achieved is then further modified based on the Company's three-year TSR relative to the companies that constitute the S&P Capital Goods 900 index, to potentially increase or reduce the shares earned by 20% . The fair value of the award was determined based upon a lattice model. The Company expenses these awards on a straight-line basis over the requisite service period and including an assessment of the performance achieved to date. The weighted average fair value per share was $143.45 for the awards granted in the first quarter of 2020. Grant Date Fair Value Performance Period Payout Range February 2020 $143.45 Jan 2020-Dec 2022 0-200% +/- 20% |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2020 . In the first quarter of 2020 our former Power segment was re-named Hubbell Utility Solutions ("Utility Solutions") to reflect the depth and breadth of our industry-leading offering for electric, water, gas and telecom utilities ranging from a wide variety of critical infrastructure components to full-scale smart grid solutions. The balance sheet at December 31, 2019 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Hubbell Incorporated Annual Report on Form 10-K for the year ended December 31, 2019 . During March 2020, a global pandemic was declared by the World Health Organization related to the rapidly growing outbreak of a novel strain of coronavirus (COVID-19). The pandemic has significantly impacted global economic conditions and in the U.S., accelerated during the first half of March as federal, state and local governments reacted to the public health crisis with mitigation measures, creating significant uncertainties in the U.S. and global economies. The extent to which the coronavirus pandemic impacts our business, operations and financial results will depend on numerous evolving factors that we may not be able to accurately predict and which may cause the actual results to differ from the estimates and assumptions we are required to make in the preparation of financial statements according to GAAP. |
Recent Accounting | Recently Adopted Accounting Pronouncements In June 2016, the FASB issued an Accounting Standards Update (ASU 2016-13), "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" (ASC 326), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses rather than incurred losses to estimate credit losses on certain types of financial instruments, including trade receivables. This may result in the earlier recognition of allowances for losses. The Company adopted the requirements of the new standard in the first quarter of 2020. The adoption of this guidance and recognition of a loss allowance at an amount equal to lifetime expected credit losses for trade receivables resulted in a $1.0 million cumulative-effect adjustment to retained earnings, net of tax. In August 2018, the FASB issued an Accounting Standards Update (ASU 2018-15) "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", which clarifies the accounting for implementation costs in cloud computing arrangements. The Company adopted the standard prospectively during the first quarter of 2020 with no material impact to the consolidated financial statements. Recently Issued Accounting Pronouncements In December 2019, the FASB issued an Accounting Standards Update (ASU 2019-12) "Simplifying the Accounting for Income Taxes", which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. ASU 2019-12 is effective for fiscal years beginning after December 15, 2020. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. The Company is currently assessing the impact of adopting this standard on its financial statements. In March 2020, FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting", which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The amendments are effective for all entities beginning on March 12, 2020, and the Company may elect to apply the amendments prospectively through December 31, 2022. The Company is currently assessing the impact of adopting this standard on its financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue by business group | The following table presents disaggregated revenue by business group: Three Months Ended March 31, in millions 2020 2019 Net sales Commercial and Industrial $ 213.0 $ 221.3 Construction and Energy 191.4 188.4 Lighting 201.7 220.5 Total Electrical $ 606.1 $ 630.2 Power Systems 326.3 291.9 Aclara 157.9 165.2 Total Utility Solutions $ 484.2 $ 457.1 TOTAL $ 1,090.3 $ 1,087.3 The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions): Three Months Ended March 31, in millions 2020 2019 Net sales United States $ 549.7 $ 565.7 International 56.4 64.5 Total Electrical $ 606.1 $ 630.2 United States 455.5 431.2 International 28.7 25.9 Total Utility Solutions $ 484.2 $ 457.1 TOTAL $ 1,090.3 $ 1,087.3 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 2020 2019 2020 2019 2020 2019 Three Months Ended March 31, Electrical $ 606.1 $ 630.2 $ 58.0 $ 68.6 9.6 % 10.9 % Utility Solutions 484.2 457.1 60.8 52.3 12.5 % 11.4 % TOTAL $ 1,090.3 $ 1,087.3 $ 118.8 $ 120.9 10.9 % 11.1 % |
Inventories, net (Tables)
Inventories, net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | |
Schedule of inventories, net | Inventories, net consists of the following (in millions): March 31, 2020 December 31, 2019 Raw material $ 222.4 $ 217.4 Work-in-process 108.2 101.8 Finished goods 355.1 403.6 Subtotal 685.7 722.8 Excess of FIFO over LIFO cost basis (90.0 ) (89.8 ) TOTAL $ 595.7 $ 633.0 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | Changes in the carrying values of goodwill for the three months ended March 31, 2020 , were as follows (in millions): Segment Electrical Utility Solutions Total BALANCE DECEMBER 31, 2019 $ 727.7 $ 1,084.1 $ 1,811.8 Prior year acquisitions — 3.4 3.4 Foreign currency translation (4.4 ) (3.7 ) (8.1 ) BALANCE MARCH 31, 2020 $ 723.3 $ 1,083.8 $ 1,807.1 |
Schedule of intangible assets | The carrying value of other intangible assets included in Intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions): March 31, 2020 December 31, 2019 Gross Amount Accumulated Amortization Gross Amount Accumulated Amortization Definite-lived: Patents, tradenames and trademarks $ 201.8 $ (66.9 ) $ 202.7 $ (65.0 ) Customer relationships, developed technology and other 856.8 (285.8 ) 861.0 (270.8 ) Total $ 1,058.6 $ (352.7 ) $ 1,063.7 $ (335.8 ) Indefinite-lived: Tradenames and other 52.9 — 53.6 — TOTAL $ 1,111.5 $ (352.7 ) $ 1,117.3 $ (335.8 ) |
Other Accrued Liabilities (Tabl
Other Accrued Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accrued Liabilities [Abstract] | |
Schedule of other accrued liabilities | Other accrued liabilities consists of the following (in millions): March 31, 2020 December 31, 2019 Customer program incentives $ 28.7 $ 49.0 Accrued income taxes 10.8 6.0 Contract liabilities - deferred revenue 34.7 31.0 Customer refund liability 18.9 19.0 Accrued warranties (1) 24.2 24.0 Current operating lease liabilities 28.1 29.6 Other 86.9 103.6 TOTAL $ 232.3 $ 262.2 (1) Refer to Note 21 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2019 for additional information regarding warranties. |
Other Non-Current Liabilities (
Other Non-Current Liabilities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | |
Summary of other non-current liabilities | Other non-current liabilities consists of the following (in millions): March 31, 2020 December 31, 2019 Pensions $ 196.2 $ 198.5 Other post-retirement benefits 21.5 21.5 Deferred tax liabilities 125.6 126.8 Accrued warranties long-term (1) 58.3 58.1 Non-current operating lease liabilities 70.9 71.7 Other 119.5 115.0 TOTAL $ 592.0 $ 591.6 (1) Refer to Note 21 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2019 for additional information regarding warranties. |
Total Equity (Tables)
Total Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of stockholders equity | A summary of changes in total equity for the three months ended March 31, 2020 and the three months ended March 31, 2019 is provided below (in millions, except per share amounts): Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Hubbell Shareholders' Equity Non- controlling interest BALANCE AT DECEMBER 31, 2019 $ 0.6 $ — $ 2,279.4 $ (332.9 ) $ 1,947.1 $ 13.4 Net income — — 75.0 — 75.0 0.7 Other comprehensive loss — — — (22.4 ) (22.4 ) — Stock-based compensation — 11.6 — — 11.6 — Acquisition/surrender of common shares (1) — (10.4 ) (34.1 ) — (44.5 ) — Cash dividends declared ($0.91 per share) — — (49.7 ) — (49.7 ) — Dividends to noncontrolling interest — — — — — (0.5 ) Directors deferred compensation — (1.2 ) — — (1.2 ) — Cumulative effect from adoption of CECL accounting standard (Note1) — — (1.0 ) — (1.0 ) — BALANCE AT MARCH 31, 2020 $ 0.6 $ — $ 2,269.6 $ (355.3 ) $ 1,914.9 $ 13.6 Common Stock Additional Paid-in Capital Retained Earnings Accumulated Other Comprehensive Income (Loss) Total Hubbell Shareholders' Equity Non- controlling interest BALANCE AT DECEMBER 31, 2018 $ 0.6 $ 1.3 $ 2,064.4 $ (285.7 ) $ 1,780.6 $ 18.3 Net income — — 72.3 — 72.3 1.5 Other comprehensive (loss) income — — — 8.3 8.3 — Stock-based compensation — 4.1 — — 4.1 — Reclassification of stranded tax effects — — 30.0 (30.0 ) — — Acquisition/surrender of common shares (1) — (5.3 ) (6.3 ) — (11.6 ) — Cash dividends declared ($0.84 per share) — — (45.7 ) — (45.7 ) — Dividends to noncontrolling interest — — — — — (1.0 ) Directors deferred compensation — 0.1 — — 0.1 — BALANCE AT MARCH 31, 2019 $ 0.6 $ 0.2 $ 2,114.7 $ (307.4 ) $ 1,808.1 $ 18.8 (1) For accounting purposes, the Company treats repurchased shares as constructively retired when acquired and accordingly charges the purchase price against common stock par value, Additional paid-in capital, to the extent available, and Retained earnings. The change in Retained earnings of $34.1 million and $6.3 million in the first quarter of 2020, and 2019, respectively, reflects this accounting treatment. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of accumulated other comprehensive income loss | A summary of the changes in Accumulated other comprehensive loss (net of tax) for the three months ended March 31, 2020 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, 2019 $ (0.5 ) $ 0.6 $ (203.2 ) $ (129.8 ) $ (332.9 ) Other comprehensive income (loss) before reclassifications 1.8 (0.1 ) — (25.6 ) (23.9 ) Amounts reclassified from accumulated other comprehensive loss (0.2 ) — 1.7 — 1.5 Current period other comprehensive income (loss) 1.6 (0.1 ) 1.7 (25.6 ) (22.4 ) BALANCE AT MARCH 31, 2020 $ 1.1 $ 0.5 $ (201.5 ) $ (155.4 ) $ (355.3 ) |
Reclassifications out of accumulated other comprehensive income | A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three months ended March 31, 2020 and 2019 is provided below (in millions): Three Months Ended March 31, Details about Accumulated Other Comprehensive Loss Components 2020 2019 Location of Gain (Loss) Reclassified into Income Cash flow hedges gain (loss): Forward exchange contracts $ 0.1 $ 0.2 Net sales 0.2 0.3 Cost of goods sold 0.3 0.5 Total before tax (0.1 ) (0.2 ) Tax benefit (expense) $ 0.2 $ 0.3 Gain (loss) net of tax Amortization of defined benefit pension and post retirement benefit items: Prior-service costs (a) $ 0.1 $ 0.2 Actuarial gains/(losses) (a) (2.4 ) (2.2 ) (2.3 ) (2.0 ) Total before tax 0.6 0.5 Tax benefit (expense) $ (1.7 ) $ (1.5 ) Gain (loss) net of tax Gains (losses) reclassified into earnings $ (1.5 ) $ (1.2 ) (a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 11 – Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details). |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 months ended March 31, 2020 and 2019 (in millions, except per share amounts): Three Months Ended March 31, 2020 2019 Numerator: Net income attributable to Hubbell Incorporated $ 75.0 $ 72.3 Less: Earnings allocated to participating securities (0.3 ) (0.3 ) Net income available to common shareholders $ 74.7 $ 72.0 Denominator: Average number of common shares outstanding 54.3 54.4 Potential dilutive common shares 0.3 0.2 Average number of diluted shares outstanding 54.6 54.6 Earnings per share: Basic $ 1.38 $ 1.32 Diluted $ 1.37 $ 1.32 |
Pension and Other Benefits (Tab
Pension and Other Benefits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract] | |
Schedule of net pension and other benefit costs | The following table sets forth the components of net pension and other benefit costs for the three months ended March 31, 2020 and 2019 (in millions): Pension Benefits Other Benefits 2020 2019 2020 2019 Three Months Ended March 31, Service cost $ 0.3 $ 0.5 $ — $ — Interest cost 7.2 8.7 0.2 0.3 Expected return on plan assets (8.5 ) (7.6 ) — — Amortization of prior service cost — — (0.1 ) (0.2 ) Amortization of actuarial losses 2.4 2.2 — — NET PERIODIC BENEFIT COST $ 1.4 $ 3.8 $ 0.1 $ 0.1 |
Guarantees (Tables)
Guarantees (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Standard Product Warranty Disclosure [Abstract] | |
Schedule of product warranty liability | Changes in the accrual for product warranties during the three months ended March 31, 2020 and 2019 are set forth below (in millions): 2020 2019 BALANCE AT JANUARY 1, (a) $ 82.1 $ 92.7 Provision 4.6 3.5 Expenditures/payments/other (4.2 ) (12.0 ) BALANCE AT MARCH 31, (a) $ 82.5 $ 84.2 (a) Refer to Note 6 – Other Accrued Liabilities and Note 7 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties. |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
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 March 31, 2020 and December 31, 2019 (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 March 31, 2020 Money market funds (a) $ 159.4 $ — $ — $ 159.4 Available for sale investments — 48.5 — 48.5 Trading securities 18.1 — — 18.1 Deferred compensation plan liabilities (18.1 ) — — (18.1 ) Derivatives: Forward exchange contracts-Assets (b) — 1.9 — 1.9 TOTAL $ 159.4 $ 50.4 $ — $ 209.8 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 December 31, 2019 Money market funds (a) $ 27.5 $ — $ — $ 27.5 Available for sale investments — 50.7 — 50.7 Trading securities 19.2 — — 19.2 Deferred compensation plan liabilities (19.2 ) — — (19.2 ) Derivatives: Forward exchange contracts-(Liabilities) (c) — (0.3 ) — (0.3 ) TOTAL $ 27.5 $ 50.4 $ — $ 77.9 (a) Money market funds are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets. (b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets. (c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets. |
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 March 31, 2020 and 2019 (in millions): Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Income (net of tax) Location of Gain/(Loss) Reclassified into Income Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) Derivative Instrument 2020 2019 (Effective Portion) 2020 2019 Forward exchange contract $ 1.8 $ (0.3 ) Net sales $ 0.1 $ 0.1 Cost of goods sold $ 0.1 $ 0.2 |
Restructuring Costs and Other (
Restructuring Costs and Other (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Summary of restructuring costs | Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statements of Income for the three months ended March 31, 2020 and 2019 is as follows (in millions): Three Months Ended March 31, 2020 2019 2020 2019 2020 2019 Cost of goods sold Selling & administrative expense Total Electrical $ 0.5 $ 0.2 $ 0.4 $ 1.0 $ 0.9 $ 1.2 Utility Solutions 2.5 0.5 0.1 1.3 2.6 1.8 Total Pre-Tax Restructuring Costs $ 3.0 $ 0.7 $ 0.5 $ 2.3 $ 3.5 $ 3.0 |
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 1/1/20 Pre-tax Restructuring Costs Utilization and Foreign Exchange Ending Accrued Restructuring Balance 3/31/2020 2020 Restructuring Actions Severance $ — $ 1.1 $ (0.3 ) $ 0.8 Asset write-downs — — — — Facility closure and other costs — 0.1 (0.1 ) — Total 2020 Restructuring Actions $ — $ 1.2 $ (0.4 ) $ 0.8 2019 and Prior Restructuring Actions Severance $ 11.3 $ (0.6 ) $ (4.0 ) $ 6.7 Asset write-downs — 0.1 (0.1 ) — Facility closure and other costs 6.1 2.8 (2.8 ) 6.1 Total 2019 and Prior Restructuring Actions $ 17.4 $ 2.3 $ (6.9 ) $ 12.8 Total Restructuring Actions $ 17.4 $ 3.5 $ (7.3 ) $ 13.6 The actual costs incurred and total expected cost in each of our reporting segments of our on-going restructuring actions are as follows (in millions): Total expected costs Costs incurred during 2019 Costs incurred in the first three months of 2020 Remaining costs at 3/31/2020 2020 Restructuring Actions Electrical $ 1.4 $ — $ 0.9 $ 0.5 Utility Solutions 0.3 — 0.3 — Total 2020 Restructuring Actions $ 1.7 $ — $ 1.2 $ 0.5 2019 and Prior Restructuring Actions Electrical $ 22.1 $ 20.5 $ — $ 1.6 Utility Solutions 21.3 11.5 2.3 7.5 Total 2019 and Prior Restructuring Actions $ 43.4 $ 32.0 $ 2.3 $ 9.1 Total Restructuring Actions $ 45.1 $ 32.0 $ 3.5 $ 9.6 |
Long Term Debt and Financing _2
Long Term Debt and Financing Arrangements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long Term Debt | Long-term debt consists of the following (in millions): Maturity March 31, 2020 December 31, 2019 Senior notes at 3.625% 2022 $ 298.9 $ 298.8 Senior notes at 3.35% 2026 395.9 395.7 Senior notes at 3.15% 2027 296.0 295.9 Senior notes at 3.50% 2028 444.3 444.0 Term loan, net of current portion of $37.5 and $34.4, respectively 2023 62.2 71.6 2018 Credit Facility 2023 100.0 — TOTAL LONG-TERM DEBT (a) $ 1,597.3 $ 1,506.0 (a) Long-term debt is presented net of debt issuance costs and unamortized discounts. |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of the Weighted-Average Assumption Used in Estimating Fair Value of Stock Appreciation Rights | The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during the first three months of 2020: Grant Date Expected Dividend Yield Expected Volatility Risk Free Interest Rate Expected Term Weighted Avg. Grant Date Fair Value of 1 SAR February 2020 2.5% 23.2% 1.5% 5.5 Years $25.28 |
Summary of the Attributes of the Performance Shares Granted During the Period | The weighted average fair value per share was $143.45 for the awards granted in the first quarter of 2020. Grant Date Fair Value Performance Period Payout Range February 2020 $143.45 Jan 2020-Dec 2022 0-200% +/- 20% |
Basis of Presentation (Details)
Basis of Presentation (Details) $ in Millions | Jan. 01, 2020USD ($) |
Retained Earnings | Accounting Standards Update 2016-13 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative effect from adoption of CECL accounting standard | $ (1) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Percentage of revenue from service contracts and post-shipment obligations (approximate) | 3.00% | |
Contract liability | $ 34.7 | $ 31 |
Increase (decrease) in net contract liabilities | 3.7 | |
Increase in current year deferrals, net | 11 | |
Revenue recognized | $ 7.3 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 1,090.3 | $ 1,087.3 |
Electrical | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 606.1 | 630.2 |
Electrical | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 549.7 | 565.7 |
Electrical | International | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 56.4 | 64.5 |
Electrical | Commercial and Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 213 | 221.3 |
Electrical | Construction and Energy | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 191.4 | 188.4 |
Electrical | Lighting | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 201.7 | 220.5 |
Utility Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 484.2 | 457.1 |
Utility Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 455.5 | 431.2 |
Utility Solutions | International | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 28.7 | 25.9 |
Utility Solutions | Power Systems | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | 326.3 | 291.9 |
Utility Solutions | Aclara | ||
Disaggregation of Revenue [Line Items] | ||
Net Sales | $ 157.9 | $ 165.2 |
Revenue - Unsatisfied Performan
Revenue - Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-04-01 $ in Millions | Mar. 31, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Unsatisfied performance obligation | $ 345 |
Unsatisfied performance obligation, period of recognition | 3 years |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | |
Mar. 31, 2020USD ($)group | Mar. 31, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||
Net Sales | $ 1,090.3 | $ 1,087.3 |
Operating Income | $ 118.8 | $ 120.9 |
Operating Income as a % of Net Sales | 10.90% | 11.10% |
Electrical | ||
Segment Reporting Information [Line Items] | ||
Number of business groups (in groups) | group | 3 | |
Net Sales | $ 606.1 | $ 630.2 |
Operating Income | $ 58 | $ 68.6 |
Operating Income as a % of Net Sales | 9.60% | 10.90% |
Utility Solutions | ||
Segment Reporting Information [Line Items] | ||
Net Sales | $ 484.2 | $ 457.1 |
Operating Income | $ 60.8 | $ 52.3 |
Operating Income as a % of Net Sales | 12.50% | 11.40% |
Inventories, net (Details)
Inventories, net (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Inventory, Net, Items Net of Reserve Alternative [Abstract] | ||
Raw material | $ 222.4 | $ 217.4 |
Work-in-process | 108.2 | 101.8 |
Finished goods | 355.1 | 403.6 |
Inventory, gross | 685.7 | 722.8 |
Excess of FIFO over LIFO cost basis | (90) | (89.8) |
TOTAL | $ 595.7 | $ 633 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net - Changes in Goodwill (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2019 | $ 1,811.8 |
Prior year acquisitions | 3.4 |
Foreign currency translation | (8.1) |
BALANCE MARCH 31, 2020 | 1,807.1 |
Electrical | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2019 | 727.7 |
Prior year acquisitions | 0 |
Foreign currency translation | (4.4) |
BALANCE MARCH 31, 2020 | 723.3 |
Utility Solutions | |
Goodwill [Roll Forward] | |
BALANCE DECEMBER 31, 2019 | 1,084.1 |
Prior year acquisitions | 3.4 |
Foreign currency translation | (3.7) |
BALANCE MARCH 31, 2020 | $ 1,083.8 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Increase in consideration paid | $ 2.1 | $ 0 |
Amortization expense | $ 19.1 | $ 18.2 |
Percentage of definite-lived intangible assets under accelerated amortization method (approximate) | 75.00% | |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
Remainder of 2020 | $ 54.8 | |
2021 | 72.1 | |
2022 | 67 | |
2023 | 62.2 | |
2024 | 56.8 | |
2025 | $ 52.3 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net - Other Intangible Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 1,058.6 | $ 1,063.7 |
Accumulated Amortization | (352.7) | (335.8) |
Total intangible assets | 1,111.5 | 1,117.3 |
Patents, tradenames and trademarks | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 201.8 | 202.7 |
Accumulated Amortization | (66.9) | (65) |
Customer relationships, developed technology and other | ||
Other Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 856.8 | 861 |
Accumulated Amortization | (285.8) | (270.8) |
Tradenames and other | ||
Other Intangible Assets [Line Items] | ||
Tradenames and other | $ 52.9 | $ 53.6 |
Other Accrued Liabilities (Deta
Other Accrued Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities [Abstract] | ||
Customer program incentives | $ 28.7 | $ 49 |
Accrued income taxes | 10.8 | 6 |
Contract liabilities - deferred revenue | 34.7 | 31 |
Customer refund liability | 18.9 | 19 |
Accrued warranties | 24.2 | 24 |
Current operating lease liabilities | 28.1 | 29.6 |
Other | 86.9 | 103.6 |
TOTAL | $ 232.3 | $ 262.2 |
Other Non-Current Liabilities_2
Other Non-Current Liabilities (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Liabilities, Other than Long-term Debt, Noncurrent [Abstract] | ||
Pensions | $ 196.2 | $ 198.5 |
Other post-retirement benefits | 21.5 | 21.5 |
Deferred tax liabilities | 125.6 | 126.8 |
Accrued warranties long-term | 58.3 | 58.1 |
Non-current operating lease liabilities | 70.9 | 71.7 |
Other | 119.5 | 115 |
TOTAL | $ 592 | $ 591.6 |
Total Equity (Details)
Total Equity (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Jan. 01, 2020 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning equity | $ 1,960.5 | ||
Net income | 75.7 | $ 73.8 | |
Other comprehensive loss | (22.4) | $ 8.3 | |
Ending equity | $ 1,928.5 | ||
Cash dividends per common share (USD per share) | $ 0.91 | $ 0.84 | |
Common Stock | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning equity | $ 0.6 | $ 0.6 | |
Ending equity | 0.6 | 0.6 | |
Additional Paid-in Capital | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning equity | 0 | 1.3 | |
Stock-based compensation | 11.6 | 4.1 | |
Acquisition/surrender of common shares | (10.4) | (5.3) | |
Directors deferred compensation | (1.2) | 0.1 | |
Ending equity | 0 | 0.2 | |
Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning equity | 2,279.4 | 2,064.4 | |
Net income | 75 | 72.3 | |
Reclassification of stranded tax effects | 30 | ||
Acquisition/surrender of common shares | (34.1) | (6.3) | |
Cash dividends declared | (49.7) | (45.7) | |
Ending equity | 2,269.6 | 2,114.7 | |
Accumulated Other Comprehensive Income (Loss) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning equity | (332.9) | (285.7) | |
Other comprehensive loss | (22.4) | 8.3 | |
Reclassification of stranded tax effects | (30) | ||
Ending equity | (355.3) | (307.4) | |
Total Hubbell Shareholders' Equity | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning equity | 1,947.1 | 1,780.6 | |
Net income | 75 | 72.3 | |
Other comprehensive loss | (22.4) | 8.3 | |
Stock-based compensation | 11.6 | 4.1 | |
Acquisition/surrender of common shares | (44.5) | (11.6) | |
Cash dividends declared | (49.7) | (45.7) | |
Directors deferred compensation | (1.2) | 0.1 | |
Ending equity | 1,914.9 | 1,808.1 | |
Non- controlling interest | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Beginning equity | 13.4 | 18.3 | |
Net income | 0.7 | 1.5 | |
Dividends to noncontrolling interest | (0.5) | (1) | |
Ending equity | $ 13.6 | $ 18.8 | |
Accounting Standards Update 2016-13 | Retained Earnings | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cumulative effect from adoption of CECL accounting standard | $ (1) | ||
Accounting Standards Update 2016-13 | Total Hubbell Shareholders' Equity | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cumulative effect from adoption of CECL accounting standard | $ (1) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Changes in AOCI (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | $ 1,960.5 | |
Other comprehensive income (loss) before reclassifications | (23.9) | |
Amounts reclassified from accumulated other comprehensive loss | 1.5 | |
Other comprehensive (loss) income | (22.4) | $ 8.3 |
Ending equity | 1,928.5 | |
Cash flow hedge (loss) gain | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | (0.5) | |
Other comprehensive income (loss) before reclassifications | 1.8 | |
Amounts reclassified from accumulated other comprehensive loss | (0.2) | |
Other comprehensive (loss) income | 1.6 | |
Ending equity | 1.1 | |
Unrealized gain (loss) on available-for- sale securities | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | 0.6 | |
Other comprehensive income (loss) before reclassifications | (0.1) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Other comprehensive (loss) income | (0.1) | |
Ending equity | 0.5 | |
Pension and post retirement benefit plan adjustment | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | (203.2) | |
Other comprehensive income (loss) before reclassifications | 0 | |
Amounts reclassified from accumulated other comprehensive loss | 1.7 | |
Other comprehensive (loss) income | 1.7 | |
Ending equity | (201.5) | |
Cumulative translation adjustment | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | (129.8) | |
Other comprehensive income (loss) before reclassifications | (25.6) | |
Amounts reclassified from accumulated other comprehensive loss | 0 | |
Other comprehensive (loss) income | (25.6) | |
Ending equity | (155.4) | |
Accumulated Other Comprehensive Income (Loss) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning equity | (332.9) | (285.7) |
Other comprehensive (loss) income | (22.4) | 8.3 |
Ending equity | $ (355.3) | $ (307.4) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net sales | $ 1,090.3 | $ 1,087.3 |
Cost of goods sold | 776.8 | 780 |
Total before tax | 99.9 | 98 |
Tax benefit (expense) | (24.2) | (24.2) |
Gain (loss) net of tax | 75.7 | 73.8 |
Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Gain (loss) net of tax | (1.5) | (1.2) |
Cash flow hedge (loss) gain | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Net sales | 0.1 | 0.2 |
Cost of goods sold | 0.2 | 0.3 |
Total before tax | 0.3 | 0.5 |
Tax benefit (expense) | (0.1) | (0.2) |
Gain (loss) net of tax | 0.2 | 0.3 |
Pension and post retirement benefit plan adjustment | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total before tax | (2.3) | (2) |
Tax benefit (expense) | 0.6 | 0.5 |
Gain (loss) net of tax | (1.7) | (1.5) |
Prior-service costs | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total before tax | 0.1 | 0.2 |
Actuarial gains/(losses) | Reclassification out of Accumulated Other Comprehensive Income | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Total before tax | $ (2.4) | $ (2.2) |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net income attributable to Hubbell Incorporated | $ 75 | $ 72.3 |
Less: Earnings allocated to participating securities | (0.3) | (0.3) |
Net income available to common shareholders | $ 74.7 | $ 72 |
Denominator: | ||
Average number of common shares outstanding (in shares) | 54.3 | 54.4 |
Potential dilutive common shares (in shares) | 0.3 | 0.2 |
Average number of diluted shares outstanding (in shares) | 54.6 | 54.6 |
Basic (USD per share) | $ 1.38 | $ 1.32 |
Diluted (USD per share) | $ 1.37 | $ 1.32 |
Pension and Other Benefits - Ne
Pension and Other Benefits - Net Pension and Other Benefit Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Pension Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | $ 0.3 | $ 0.5 |
Interest cost | 7.2 | 8.7 |
Expected return on plan assets | (8.5) | (7.6) |
Amortization of prior service cost | 0 | 0 |
Amortization of actuarial losses | 2.4 | 2.2 |
NET PERIODIC BENEFIT COST | 1.4 | 3.8 |
Other Benefits | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Service cost | 0 | 0 |
Interest cost | 0.2 | 0.3 |
Expected return on plan assets | 0 | 0 |
Amortization of prior service cost | (0.1) | (0.2) |
Amortization of actuarial losses | 0 | 0 |
NET PERIODIC BENEFIT COST | $ 0.1 | $ 0.1 |
Pension and Other Benefits - Na
Pension and Other Benefits - Narrative (Details) - Pension Benefits - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Foreign Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined benefit plan estimated total employer contributions in current fiscal year | $ 4.3 | ||
Contributions by employer | $ 0.1 | ||
Forecast | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Settlement of multi-employer pension plan | $ 5 | $ 6 |
Guarantees (Details)
Guarantees (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
BALANCE AT JANUARY 1, (a) | $ 82.1 | $ 92.7 |
Provision | 4.6 | 3.5 |
Expenditures/payments/other | (4.2) | (12) |
BALANCE AT MARCH 31, (a) | $ 82.5 | $ 84.2 |
Fair Value Measurement - Narrat
Fair Value Measurement - Narrative (Details) | 3 Months Ended | |||
Mar. 31, 2020USD ($)contract | Mar. 31, 2019USD ($) | Jan. 01, 2020USD ($) | Dec. 31, 2019USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accounts receivable, net | $ 707,700,000 | $ 683,000,000 | ||
Accounts receivable, allowances | 13,600,000 | 7,700,000 | ||
Increase in accounts receivable, allowances | 5,900,000 | |||
Available for sale investments | 48,500,000 | 50,700,000 | ||
Available for sale debt securities, amortized cost | 48,000,000 | 50,100,000 | ||
Available for sale debt securities, allowance for credit losses | 0 | |||
Available for sale debt securities, unrealized losses | 100,000 | 100,000 | ||
Available for sale debt securities with unrealized losses | 8,600,000 | 3,600,000 | ||
Trading securities | 18,100,000 | 19,200,000 | ||
Purchase of trading securities related to deferred compensation plans | 2,200,000 | $ 2,200,000 | ||
Proceeds from securities sold | $ 800,000 | $ 600,000 | ||
Number of foreign exchange contracts held (in contracts) | contract | 31 | |||
Long-term debt, including current portion of long-term debt | $ 1,597,300,000 | 1,506,000,000 | ||
Forward exchange contract | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Derivative, notional amount | 34,800,000 | |||
Senior Notes | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Current portion of long-term debt | 37,500,000 | 34,400,000 | ||
Long-term debt, including current portion of long-term debt | 1,634,800,000 | 1,540,400,000 | ||
Long-term debt, fair value | $ 1,651,400,000 | $ 1,592,200,000 | ||
Accounting Standards Update 2016-13 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accounts receivable, allowances | $ 1,300,000 |
Fair Value Measurement - Financ
Fair Value Measurement - Financial Assets and Liabilities by Hierarchy Level (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | $ 48.5 | $ 50.7 |
Trading securities | 18.1 | 19.2 |
Deferred compensation plan liabilities | (18.1) | (19.2) |
Derivatives: | ||
Forward exchange contracts-Assets | 1.9 | |
Forward exchange contracts-(Liabilities) | (0.3) | |
TOTAL | 209.8 | 77.9 |
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 | 18.1 | 19.2 |
Deferred compensation plan liabilities | (18.1) | (19.2) |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | |
Forward exchange contracts-(Liabilities) | 0 | |
TOTAL | 159.4 | 27.5 |
Quoted Prices in Active Markets for Similar Assets (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | 48.5 | 50.7 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 1.9 | |
Forward exchange contracts-(Liabilities) | (0.3) | |
TOTAL | 50.4 | 50.4 |
Unobservable inputs for which little or no market data exists (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | 0 | 0 |
Trading securities | 0 | 0 |
Deferred compensation plan liabilities | 0 | 0 |
Derivatives: | ||
Forward exchange contracts-Assets | 0 | |
Forward exchange contracts-(Liabilities) | 0 | |
TOTAL | 0 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 159.4 | 27.5 |
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 159.4 | 27.5 |
Money market funds | Quoted Prices in Active Markets for Similar Assets (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Money market funds | Unobservable inputs for which little or no market data exists (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | $ 0 | $ 0 |
Fair Value Measurement - Cash F
Fair Value Measurement - Cash Flow Hedging Relationships (Details) - Forward exchange contract - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative Gain/(Loss) Recognized in Accumulated Other Comprehensive Income (net of tax) | $ 1.8 | $ (0.3) |
Net sales | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) | 0.1 | 0.1 |
Cost of goods sold | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Gain/(Loss) Reclassified into Earnings Effective Portion (net of tax) | $ 0.1 | $ 0.2 |
Restructuring Costs and Other -
Restructuring Costs and Other - By Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 3.5 | $ 3 |
Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3 | 0.7 |
Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.5 | 2.3 |
Electrical | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.9 | 1.2 |
Electrical | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.5 | 0.2 |
Electrical | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0.4 | 1 |
Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2.6 | 1.8 |
Utility Solutions | Cost of goods sold | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 2.5 | 0.5 |
Utility Solutions | Selling & administrative expense | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ 0.1 | $ 1.3 |
Restructuring Costs and Other_2
Restructuring Costs and Other - Reserve (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/20 | $ 17.4 | |
Pre-tax Restructuring Costs | 3.5 | $ 3 |
Utilization and Foreign Exchange | (7.3) | |
Ending Accrued Restructuring Balance 3/31/2020 | 13.6 | |
2020 Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/20 | 0 | |
Pre-tax Restructuring Costs | 1.2 | |
Utilization and Foreign Exchange | (0.4) | |
Ending Accrued Restructuring Balance 3/31/2020 | 0.8 | |
2020 Restructuring Actions | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/20 | 0 | |
Pre-tax Restructuring Costs | 1.1 | |
Utilization and Foreign Exchange | (0.3) | |
Ending Accrued Restructuring Balance 3/31/2020 | 0.8 | |
2020 Restructuring Actions | Asset write-downs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/20 | 0 | |
Pre-tax Restructuring Costs | 0 | |
Utilization and Foreign Exchange | 0 | |
Ending Accrued Restructuring Balance 3/31/2020 | 0 | |
2020 Restructuring Actions | Facility closure and other costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/20 | 0 | |
Pre-tax Restructuring Costs | 0.1 | |
Utilization and Foreign Exchange | (0.1) | |
Ending Accrued Restructuring Balance 3/31/2020 | 0 | |
2019 and Prior Restructuring Actions | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/20 | 17.4 | |
Pre-tax Restructuring Costs | 2.3 | |
Utilization and Foreign Exchange | (6.9) | |
Ending Accrued Restructuring Balance 3/31/2020 | 12.8 | |
2019 and Prior Restructuring Actions | Severance | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/20 | 11.3 | |
Pre-tax Restructuring Costs | (0.6) | |
Utilization and Foreign Exchange | (4) | |
Ending Accrued Restructuring Balance 3/31/2020 | 6.7 | |
2019 and Prior Restructuring Actions | Asset write-downs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/20 | 0 | |
Pre-tax Restructuring Costs | 0.1 | |
Utilization and Foreign Exchange | (0.1) | |
Ending Accrued Restructuring Balance 3/31/2020 | 0 | |
2019 and Prior Restructuring Actions | Facility closure and other costs | ||
Restructuring Reserve [Roll Forward] | ||
Beginning Accrued Restructuring Balance 1/1/20 | 6.1 | |
Pre-tax Restructuring Costs | 2.8 | |
Utilization and Foreign Exchange | (2.8) | |
Ending Accrued Restructuring Balance 3/31/2020 | $ 6.1 |
Restructuring Costs and Other_3
Restructuring Costs and Other - Summary of Costs (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | $ 45.1 | |
Costs incurred | 3.5 | $ 32 |
Remaining costs at 3/31/2020 | 9.6 | |
2020 Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 1.7 | |
Costs incurred | 1.2 | 0 |
Remaining costs at 3/31/2020 | 0.5 | |
2020 Restructuring Actions | Electrical | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 1.4 | |
Costs incurred | 0.9 | 0 |
Remaining costs at 3/31/2020 | 0.5 | |
2020 Restructuring Actions | Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 0.3 | |
Costs incurred | 0.3 | 0 |
Remaining costs at 3/31/2020 | 0 | |
2019 and Prior Restructuring Actions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 43.4 | |
Costs incurred | 2.3 | 32 |
Remaining costs at 3/31/2020 | 9.1 | |
2019 and Prior Restructuring Actions | Electrical | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 22.1 | |
Costs incurred | 0 | 20.5 |
Remaining costs at 3/31/2020 | 1.6 | |
2019 and Prior Restructuring Actions | Utility Solutions | ||
Restructuring Cost and Reserve [Line Items] | ||
Total expected costs | 21.3 | |
Costs incurred | 2.3 | $ 11.5 |
Remaining costs at 3/31/2020 | $ 7.5 |
Long Term Debt and Financing _3
Long Term Debt and Financing Arrangements Long Term Debt and Financing Arrangements - Schedule of Long Term Debt (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt | $ 1,597.3 | $ 1,506 |
Term loan, net of current portion of $37.5 and $34.4, respectively | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 37.5 | 34.4 |
Long-term debt | 62.2 | 71.6 |
Senior Notes | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 37.5 | 34.4 |
Long-term debt | $ 1,634.8 | 1,540.4 |
Senior Notes | Senior notes at 3.625% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.625% | |
Long-term debt | $ 298.9 | 298.8 |
Senior Notes | Senior notes at 3.35% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.35% | |
Long-term debt | $ 395.9 | 395.7 |
Senior Notes | Senior notes at 3.15% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.15% | |
Long-term debt | $ 296 | 295.9 |
Senior Notes | Senior notes at 3.50% | ||
Debt Instrument [Line Items] | ||
Interest rate, stated percentage | 3.50% | |
Long-term debt | $ 444.3 | 444 |
2018 Credit Facility | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 100 | $ 0 |
Long Term Debt and Financing _4
Long Term Debt and Financing Arrangements - Narrative (Details) - USD ($) | 1 Months Ended | 3 Months Ended | ||
Apr. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||||
Line of credit facility, borrowings | $ 100,000,000 | $ 0 | ||
Short-term debt outstanding | $ 106,700,000 | $ 65,400,000 | ||
2018 Credit Facility | Line of Credit | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Debt term | 5 years | |||
Line of credit, maximum borrowing capacity | $ 750,000,000 | |||
Line of credit facility, accordion feature, higher borrowing capacity option | $ 1,250,000,000 | |||
Line of credit facility covenants maximum debt to capitalization percentage | 65.00% | |||
Line of credit facility, borrowings | $ 100,000,000 | |||
Line of credit, borrowings outstanding | $ 0 | |||
Subsequent Event | 2018 Credit Facility | Line of Credit | Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility, borrowings | $ 125,000,000 | |||
Weighted average interest rate | 2.15% |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - $ / shares | 1 Months Ended | 3 Months Ended |
Feb. 29, 2020 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Maximum number of shares authorized (shares) | 9,700,000 | |
Restricted Stock Awards Service Condition | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (shares) | 80,876 | |
Shares granted (USD per share) | $ 149.49 | |
Stock Appreciation Rights SARS | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (shares) | 250,080 | |
Award vesting period | 3 years | |
Award, expiration period | 10 years | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (USD per share) | $ 143.45 | |
Shares outstanding (shares) | 63,868 |
Stock-Based Compensation - Fair
Stock-Based Compensation - Fair Value Assumptions (Details) - Stock Appreciation Rights SARS | 3 Months Ended |
Mar. 31, 2020$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected Dividend Yield | 2.50% |
Expected Volatility | 23.20% |
Risk Free Interest Rate | 1.50% |
Expected Term | 5 years 6 months |
Weighted Avg. Grant Date Fair Value of 1 SAR (in usd per share) | $ 25.28 |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance Shares Granted During the Period (Details) - $ / shares | 1 Months Ended | 3 Months Ended |
Feb. 29, 2020 | Mar. 31, 2020 | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (USD per share) | $ 143.45 | |
2020 Grant | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance Based Criteria Plan Payout Percentage, Over/Under | 20.00% | |
2020 Grant | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted (USD per share) | $ 143.45 | |
2020 Grant | Minimum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 0.00% | |
2020 Grant | Maximum | Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance based criteria plan payout percentage | 200.00% |