10-Q

Back to Contents

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from ______________ to ______________

Commission File Number 1-2958

  

HUBBELL INCORPORATED

(Exact name of registrant as specified in its charter)

Connecticut		06-0397030
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)
40 Waterview Drive
Shelton,	CT	06484
(Address of principal executive offices)		(Zip Code)
(475)		882-4000
(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report.)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock - par value $0.01 per share	HUBB	New York Stock Exchange

Indicate by check mark
•whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.						Yes	☑	No	☐
•whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).						Yes	☑	No	☐
•whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company”, and "emerging growth company" in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer	☑	Accelerated filer	☐	Non-accelerated filer	☐	Smaller reporting company			☐
Emerging growth company	☐	If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standard provided pursuant to Section 13(a) of the Exchange Act. ☐
•whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).						Yes	☐	No	☑

 The number of shares outstanding of Hubbell common stock as of July 19, 2023 was 53,631,016.

HUBBELL INCORPORATED-Form 10-Q    1

Back to Contents

Index

Table of Contents
PART I		3
ITEM 1	Financial Statements (unaudited)
	Condensed Consolidated Statements of Income	3
	Condensed Consolidated Statements of Comprehensive Income	4
	Condensed Consolidated Balance Sheets	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
ITEM 2	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
ITEM 3	Quantitative and Qualitative Disclosures About Market Risk	47
ITEM 4	Controls and Procedures	48
PART II		49
ITEM 1A	Risk Factors	49
ITEM 2	Unregistered Sales of Equity Securities and Use of Proceeds	50
ITEM 5	Other information	51
ITEM 6	Exhibits	52
	Signatures	53

HUBBELL INCORPORATED-Form 10-Q    2

Back to Contents

PART I FINANCIAL INFORMATION

ITEM 1 Financial Statements

Condensed Consolidated Statements of Income (unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions, except per share amounts)	2023		2022		2023		2022
Net sales	$	1,365.9	$	1,256.0	$	2,651.3	$	2,412.1
Cost of goods sold	869.7		872.8		1,706.8		1,705.8
Gross profit	496.2		383.2		944.5		706.3
Selling & administrative expenses	208.4		192.6		407.9		372.8
Operating income	287.8		190.6		536.6		333.5
Interest expense, net	(9.2)		(12.7)		(18.9)		(25.8)
Pension charge (Note 13)	—		(4.4)		—		(4.4)
Other (expense) income, net	(4.8)		2.5		(8.9)		6.1
Total other expense	(14.0)		(14.6)		(27.8)		(24.1)
Income from continuing operations before income taxes	273.8		176.0		508.8		309.4
Provision for income taxes	65.6		38.9		117.2		68.5
Net income from continuing operations	208.2		137.1		391.6		240.9
Less: Net income from continuing operations attributable to noncontrolling interest	(1.4)		(1.5)		(2.9)		(2.8)
Net income from continuing operations attributable to Hubbell Incorporated	206.8		135.6		388.7		238.1
(Loss) Income from discontinued operations, net of tax (Note 2)	—		(13.6)		—		64.1
Net Income attributable to Hubbell Incorporated	$	206.8	$	122.0	$	388.7	$	302.2
Earnings per share:
Basic earnings per share from continuing operations	$	3.85	$	2.52	$	7.24	$	4.41
Basic earnings per share from discontinued operations	—		(0.25)		—		1.19
Basic earnings per share	$	3.85	$	2.27	$	7.24	$	5.60
Diluted earnings per share from continuing operations	$	3.82	$	2.51	$	7.19	$	4.39
Diluted earnings per share from discontinued operations	—		(0.25)		—		1.18
Diluted earnings per share	$	3.82	$	2.26	$	7.19	$	5.57
Cash dividends per common share	$	1.12	$	1.05	$	2.24	$	2.10

See notes to unaudited Condensed Consolidated Financial Statements.

HUBBELL INCORPORATED-Form 10-Q    3

Back to Contents

Condensed Consolidated Statements of Comprehensive Income (unaudited)

	Three Months Ended June 30,
(in millions)	2023		2022
Net income	$	208.2	$	123.5
Other comprehensive income (loss):
Currency translation adjustments:
Foreign currency translation adjustments	5.4		(29.7)
Reclassification of currency translation losses included in net income	—		—
Defined benefit pension and post-retirement plans, net of taxes of $(0.6) and $(1.3)	2.0		3.4
Unrealized gain (loss) on investments, net of taxes of $0.1 and $0.0	(0.3)		—
Unrealized gain (loss) on cash flow hedges, net of taxes of $0.2 and $(0.2)	(0.6)		0.5
Other comprehensive income (loss)	6.5		(25.8)
Comprehensive income	214.7		97.7
Less: Comprehensive income attributable to noncontrolling interest	1.4		1.5
Comprehensive income attributable to Hubbell Incorporated	$	213.3	$	96.2

See notes to unaudited Condensed Consolidated Financial Statements.

	Six Months Ended June 30,
(in millions)	2023		2022
Net income	$	391.6	$	305.0
Other comprehensive income (loss):
Currency translation adjustment:
Foreign currency translation adjustments	13.3		(25.1)
Reclassification of currency translation losses included in net income	—		0.5
Defined benefit pension and post-retirement plans, net of taxes of $(1.8) and $(1.8)	3.4		5.5
Unrealized gain (loss) on investments, net of taxes of $0.0 and $0.4	—		(1.2)
Unrealized gain (loss) on cash flow hedges, net of taxes of $0.3 and $0.0	(0.9)		(0.1)
Other comprehensive income (loss)	15.8		(20.4)
Comprehensive income	407.4		284.6
Less: Comprehensive income attributable to noncontrolling interest	2.9		2.8
Comprehensive income attributable to Hubbell Incorporated	$	404.5	$	281.8

enotes to unaudited Condensed Consolidated Financial Statements.

See notes to unaudited Condensed Consolidated Financial Statements.

HUBBELL INCORPORATED-Form 10-Q    4

Back to Contents

Condensed Consolidated Balance Sheets (unaudited)

(in millions)	June 30, 2023		December 31, 2022
ASSETS
Current Assets
Cash and cash equivalents	$	492.6	$	440.5
Short-term investments	16.2		14.3
Accounts receivable (net of allowances of $13.6 and $14.3)	811.2		741.6
Inventories, net	794.1		740.7
Other current assets	91.7		84.3
Total Current Assets	2,205.8		2,021.4
Property, Plant, and Equipment, net	557.5		528.0
Other Assets
Investments	69.6		65.9
Goodwill	1,998.8		1,970.5
Other intangible assets, net	664.4		669.9
Other long-term assets	144.8		146.9
TOTAL ASSETS	$	5,640.9	$	5,402.6
LIABILITIES AND EQUITY
Current Liabilities
Short-term debt	$	1.8	$	4.7
Accounts payable	554.8		529.9
Accrued salaries, wages and employee benefits	117.2		144.2
Accrued insurance	78.9		75.6
Other accrued liabilities	317.1		334.1
Total Current Liabilities	1,069.8		1,088.5
Long-Term Debt	1,439.1		1,437.9
Other Non-Current Liabilities	500.9		505.6
TOTAL LIABILITIES	3,009.8		3,032.0
Hubbell Incorporated Shareholders’ Equity	2,620.7		2,360.9
Noncontrolling interest	10.4		9.7
TOTAL EQUITY	2,631.1		2,370.6
TOTAL LIABILITIES AND EQUITY	$	5,640.9	$	5,402.6

See notes to unaudited Condensed Consolidated Financial Statements.

HUBBELL INCORPORATED-Form 10-Q    5

Back to Contents

Condensed Consolidated Statements of Cash Flows (unaudited)

	Six Months Ended June 30,
(in millions)	2023		2022
Cash Flows from Operating Activities of Continuing Operations
Net income from continuing operations	$	391.6	$	240.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	72.5		69.4
Deferred income taxes	(5.2)		(38.4)
Stock-based compensation	16.1		16.7
Provision for bad debt expense	0.1		4.4
Pension charge	—		4.4
Loss on sale of assets	0.6		1.2
Changes in assets and liabilities, excluding effects of acquisitions:
Increase in accounts receivable, net	(60.4)		(107.4)
Increase in inventories, net	(45.2)		(61.0)
Increase in accounts payable	26.5		22.0
(Decrease) increase in current liabilities	(50.2)		25.3
Changes in other assets and liabilities, net	(3.3)		(1.9)
Contribution to qualified defined benefit pension plans	—		(2.5)
Other, net	(1.7)		1.1
Net cash provided by operating activities from Continuing Operations	341.4		174.2
Cash Flows from Investing Activities of Continuing Operations
Capital expenditures	(68.9)		(41.9)
Acquisitions, net of cash acquired	(60.0)		—
Proceeds from disposal of business, net of cash	—		348.6
Purchases of available-for-sale investments	(9.1)		(23.8)
Proceeds from available-for-sale investments	10.4		9.8
Other, net	(0.6)		1.1
Net cash (used in) provided by investing activities from Continuing Operations	(128.2)		293.8
Cash Flows from Financing Activities of Continuing Operations
Payments of short-term debt, net	(2.8)		(3.8)
Payment of dividends	(120.1)		(113.3)
Acquisition of common shares	(20.0)		(150.0)
Other, net	(23.0)		(11.1)
Net cash used in financing activities from Continuing Operations	(165.9)		(278.2)
Cash Flows from Discontinued Operations:
Cash used in operating activities	—		(44.7)
Cash used in investing activities	—		(1.7)
Cash used in discontinued operations	—		(46.4)
Effect of exchange rate changes on cash and cash equivalents	5.1		(6.0)
Increase in cash and cash equivalents	52.4		137.4
Cash and cash equivalents, beginning of year	440.5		286.2
Cash and cash equivalents within assets held for sale, beginning of year	—		0.7
Restricted cash, included in other assets, beginning of year	2.8		2.7
Less: Restricted cash, included in Other Assets	3.1		2.8
Cash and cash equivalents, end of period	$	492.6	$	424.2

See notes to unaudited Condensed Consolidated Financial Statements.

HUBBELL INCORPORATED-Form 10-Q    6

Back to Contents

Notes to Condensed Consolidated Financial Statements (unaudited)

NOTE 1 Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023.

The balance sheet at December 31, 2022 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, 2022.

Discontinued Operations

On February 1, 2022, the Company completed the sale of the Commercial and Industrial Lighting business (the "C&I Lighting business") to GE Current, a Daintree Company, for total net cash consideration of $332.8 million. The disposal of the C&I Lighting business met the criteria set forth in ASC 205-20 to be presented as a discontinued operation. The C&I Lighting business's results of operations and the related cash flows have been reclassified to income from discontinued operations in the Condensed Consolidated Statements of Income and cash flows from discontinued operations in the Condensed Consolidated Statement of Cash Flows, respectively, for all periods presented. For additional information regarding this transaction and its effect on our financial reporting, see Note 2 – Discontinued Operations, in the accompanying Condensed Consolidated Financial Statements.

Recently Adopted Accounting Pronouncements

In September 2022, the FASB issued ASU 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50: Disclosure of Supplier Finance Program Obligations)", which the Company adopted in the first quarter of 2023, with the exception of the rollforward information, which is effective for the Company in 2024.

Payment Services Arrangements

The Company has ongoing agreements with financial institutions to facilitate the processing of vendor payables. Under these agreements, the Company pays the financial institution the stated amount of confirmed invoices from participating suppliers on their original maturity date. The terms of the vendor payables are not affected by vendors participating in these agreements. As a result, the amounts owed are presented as accounts payable in the Company’s Condensed Consolidated Balance Sheet, of which, $119.4 million and $91.9 million was outstanding at June 30, 2023 and December 31, 2022, respectively. Either party may terminate the agreements with 30 days written notice. Cash flows under the program are reported in operating activities in the Company’s Condensed Consolidated Statement of Cash Flows.

Commercial Card Program

In 2021, the Company entered into an agreement with a financial institution that allows participating suppliers to receive payment for outstanding invoices through a commercial purchasing card sponsored by a financial institution. The Company is required to then settle such outstanding invoices through a consolidated payment to the financial institution 15 days after the commercial card billing cycle. The Company receives the benefit of extended payment terms and a rebate from the financial institution. Either party may terminate the agreement with 60 days written notice. The amount outstanding to the financial institution is presented as short-term debt in the Company’s Condensed Consolidated Balance Sheet, of which, $0.0 million and $1.9 million was outstanding at June 30, 2023 and December 31, 2022, respectively. Cash flows under the program are reported in financing activities in the Company’s Condensed Consolidated Statement of Cash Flows.

HUBBELL INCORPORATED-Form 10-Q    7

Back to Contents

Recently Issued Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In December 2022, the FASB issued ASU No. 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the temporary accounting rules under Topic 848 to December 31, 2024. The Company continues to assess the impact of adopting this standard on its financial statements and the timing of adoption.

NOTE 2 Discontinued Operations

On February 1, 2022, the Company completed the sale of the C&I Lighting business to GE Current, a Daintree Company, for total net cash consideration of $332.8 million. We have concluded the divestiture met the criteria set forth in ASC 205-20 to be presented as a discontinued operation in our Condensed Consolidated Financial Statements for all periods presented. The C&I Lighting business was previously included in the Electrical Solutions segment.

Under the terms of the transaction, Hubbell and the buyer entered into a transition services agreement ("TSA"), pursuant to which the Company provides certain administrative and operational services for a period of 12 months or less. In addition, we entered into a short-term supply agreement whereby the Company acts as a supplier of finished goods and component parts to the C&I Lighting business after the completion of the sale. There was no income or loss from either of the TSA or the supply agreement for the three and six months ended June 30, 2023. Income from the TSA and supply agreement for the three and six months ended June 30, 2022 was $4.8 million and $7.6 million, respectively, and was recorded in Other Income in the Condensed Consolidated Financial Statements. The TSA and short-term supply agreement were effectively completed as of March 31, 2023.

The following table presents the summarized components of income from discontinued operations, net of income taxes, for the C&I Lighting business:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2023		2022		2023		2022
Net sales	$	—	$	—	$	—	$	29.1
Cost of goods sold	—		—		—		27.7
Gross profit	—		—		—		1.4
Selling & administrative expenses	—		4.5		—		15.2
Operating loss	—		(4.5)		—		(13.8)
(Loss) gain on disposal of business	—		(7.7)		—		80.7
Other expense	—		(1.4)		—		(1.1)
(Loss) income from discontinued operations before income taxes	—		(13.6)		—		65.8
Provision for income taxes	—		—		—		1.7
(Loss) income from discontinued operations, net of taxes	$	—	$	(13.6)	$	—	$	64.1

(Loss) income from discontinued operations, net of taxes includes pre-tax transaction and separation costs of $4.5 million and $6.7 million for the three and six months ended June 30, 2022, respectively, and a pre-tax gain on the disposal of $80.7 million for the six months ended June 30, 2022. There were no transaction and separation costs or pre-tax gain on disposal in 2023.

HUBBELL INCORPORATED-Form 10-Q    8

Back to Contents

NOTE 3 Business Acquisitions

Acquisition

In the second quarter of 2023, the Company acquired all of the issued and outstanding membership interests of EI Electronics LLC ("EIG") for a cash purchase price of approximately $60 million, net of cash acquired, subject to customary purchase price adjustments. EIG offers fully integrated energy management and power quality monitoring solutions for the electric utility and commercial & industrial markets. This business is reported in the Utility Solutions segment. We have recognized intangible assets of $29.0 million and goodwill of $21.0 million as a result of this acquisition. The intangible assets of $29.0 million consist primarily of customer relationships, developed technology, a tradename and backlog and will be amortized over a weighted average period of approximately 14 years. All of the goodwill is expected to be deductible for tax purposes.

This business acquisition has been accounted for as a business combination and has resulted in the recognition of goodwill. The goodwill relates to a number of factors implied in the purchase price, including the future earnings and cash flow potential of the business as well as the complementary strategic fit and resulting synergies that such business acquisition brings to the Company’s existing operations.

Preliminary Allocation of Consideration Transferred to Net Assets Acquired

The following table presents the preliminary determination of the fair values of identifiable assets acquired and liabilities assumed from the Company's acquisition in the second quarter of 2023. The final determination of the fair value of certain assets and liabilities will be completed within the one year measurement period as required by FASB ASC Topic 805, “Business Combinations.” As the Company finalizes the fair values of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company's results of operations and financial position. The finalization of the purchase accounting assessment may result in a change in the valuation of assets acquired and liabilities assumed and may have a material impact on the Company's results of operations and financial position.

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions):

Tangible assets acquired	$	19.0
Intangible assets	29.0
Goodwill	21.0
Net deferred taxes	—
Other liabilities assumed	(9.0)
Total Estimate of Consideration Transferred, Net of Cash Acquired	$	60.0

The Condensed Consolidated Financial Statements include the results of operations of the acquired business from its date of acquisition. Pro forma information related to this acquisition has not been included because the impact of net sales and earnings related to the acquisition for the six months ended June 30, 2023 was not material to the Company’s condensed consolidated results of operations.

HUBBELL INCORPORATED-Form 10-Q    9

Back to Contents

NOTE 4 Revenue

The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions, primarily in the Utility Solutions segment, recognized upon delivery of the product at the destination. Revenue from service contracts and post-shipment performance obligations are approximately two percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the Utility Solutions segment. Revenue from service contracts and post-shipment performance obligations is recognized when or as those obligations are satisfied. The Company primarily offers assurance-type standard warranties that do not represent separate performance obligations and on occasion will separately offer and price extended warranties that are separate performance obligations for which the associated revenue is recognized over-time based on the extended warranty period. The Company records amounts billed to customers for reimbursement of shipping and handling costs within revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold. Sales taxes and other usage-based taxes are excluded from revenue.

Within the Electrical Solutions segment, certain businesses require a portion of the transaction price to be paid in advance of transfer of control. Advance payments are not considered a significant financing component as they are received less than one year before the related performance obligations are satisfied. In addition, in the Utility Solutions segment, certain businesses offer annual maintenance service contracts that require payment at the beginning of the contract period. These payments are treated as a contract liability and are classified in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Condensed Consolidated Statements of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statements of Income on a straight-line basis over the expected term of the contract.

The following table presents disaggregated revenue by business group.

	Three Months Ended June 30,				Six Months Ended June 30,
in millions	2023		2022		2023		2022
Net sales
Utility T&D Components	$	631.2	$	556.5	$	1,246.3	$	1,048.0
Utility Communications and Controls	199.6		172.0		366.1		332.3
Total Utility Solutions	$	830.8	$	728.5	$	1,612.4	$	1,380.3
Electrical Products	$	213.0	$	234.8	$	417.0	$	462.5
Connection and Bonding	165.7		156.4		319.6		300.3
Industrial Controls	109.1		76.7		203.0		149.7
Retail and Builder	47.3		59.6		99.3		119.3
Total Electrical Solutions	$	535.1	$	527.5	$	1,038.9	$	1,031.8
TOTAL	$	1,365.9	$	1,256.0	$	2,651.3	$	2,412.1

The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions):

	Three Months Ended June 30,				Six Months Ended June 30,
in millions	2023		2022		2023		2022
Net sales
United States	$	786.6	$	689.9	$	1,526.9	$	1,308.4
International	44.2		38.6		85.5		71.9
Total Utility Solutions	$	830.8	$	728.5	$	1,612.4	$	1,380.3
United States	$	465.2	$	461.4	$	904.2	$	901.8
International	69.9		66.1		134.7		130.0
Total Electrical Solutions	$	535.1	$	527.5	$	1,038.9	$	1,031.8
TOTAL	$	1,365.9	$	1,256.0	$	2,651.3	$	2,412.1

HUBBELL INCORPORATED-Form 10-Q    10

Back to Contents

Contract Balances

Our contract liabilities consist of advance payments for products as well as deferred revenue on service obligations and extended warranties. Deferred revenue is included in Other accrued liabilities in the Condensed Consolidated Balance Sheets.

Contract liabilities were $57.2 million as of June 30, 2023 compared to $45.8 million as of December 31, 2022. The $11.4 million increase in our contract liabilities balance was primarily due to a $39.4 million net increase in current year deferrals primarily due to timing of advance payments on certain orders, partially offset by the recognition of $28.0 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2023. The Company has an immaterial amount of contract assets relating to performance obligations satisfied prior to payment that is recorded in Other long-term assets in the Condensed Consolidated Balance Sheets. Impairment losses recognized on our receivables and contract assets were immaterial for the three and six months ended June 30, 2023.

Unsatisfied Performance Obligations

As of June 30, 2023, the Company had approximately $260 million of unsatisfied performance obligations for contracts with an original expected length of greater than one year, primarily relating to long-term contracts of the Utility Solutions segment to deliver and install meters, metering communications and grid monitoring sensor technology. The Company expects that a majority of the unsatisfied performance obligations will be completed and recognized over the next two years.

HUBBELL INCORPORATED-Form 10-Q    11

Back to Contents

NOTE 5 Segment Information

The Company's reporting segments consist of the Utility Solutions segment and the Electrical Solutions segment. The Utility Solutions segment consists of businesses that design, manufacture, and sell a wide variety of electrical distribution, transmission, substation, and telecommunications products. This includes utility transmission & distribution (T&D) components such as arresters, insulators, connectors, anchors, bushings, and enclosures. The Utility Solutions segment also offers solutions that serve the utility infrastructure, including smart meters, communications systems, and protection and control devices. Hubbell Utility Solutions supports the electrical distribution, electrical transmission, water, gas distribution, telecommunications, and solar and wind markets. Products are sold to distributors and directly to users such as utilities, telecommunication companies, industrial firms, construction and engineering firms.

The Electrical Solutions segment comprises businesses that sell stock and custom products including standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, components and other electrical equipment. The products are typically used in and around industrial, commercial and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies. In addition, certain of our businesses design and manufacture industrial controls and communication systems used in the non-residential and industrial markets. Many of these products are designed such that they can also be used in harsh and hazardous locations where a potential for fire and explosion exists due to the presence of flammable gasses and vapors. Harsh and hazardous products are primarily used in the oil and gas (onshore and offshore) and mining industries. There are also a variety of wiring devices, lighting fixtures and electrical products that have residential and utility applications, including residential products with Internet-of-Things ("IoT") enabled technologies. These products are primarily sold through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms and residential product oriented internet sites. Special application products are primarily sold through wholesale distributors to contractors, industrial customers and OEMs.

The following table sets forth financial information by reporting segment (in millions):

	Net Sales				Operating Income				Operating Income as a % of Net Sales
	2023		2022		2023		2022		2023		2022
Three Months Ended June 30,
Utility Solutions	$	830.8	$	728.5	$	199.5	$	111.4	24.0	%	15.3	%
Electrical Solutions	535.1		527.5		88.3		79.2		16.5	%	15.0	%
TOTAL	$	1,365.9	$	1,256.0	$	287.8	$	190.6	21.1	%	15.2	%
Six Months Ended June 30,
Utility Solutions	$	1,612.4	$	1,380.3	$	377.0	$	199.5	23.4	%	14.5	%
Electrical Solutions	1,038.9		1,031.8		159.6		134.0		15.4	%	13.0	%
TOTAL	$	2,651.3	$	2,412.1	$	536.6	$	333.5	20.2	%	13.8	%

HUBBELL INCORPORATED-Form 10-Q    12

Back to Contents

NOTE 6 Inventories, net

Inventories, net consists of the following (in millions):

	June 30, 2023		December 31, 2022
Raw material	$	338.4	$	302.8
Work-in-process	175.7		161.7
Finished goods	465.8		463.2
Subtotal	979.9		927.7
Excess of FIFO over LIFO cost basis	(185.8)		(187.0)
TOTAL	$	794.1	$	740.7

HUBBELL INCORPORATED-Form 10-Q    13

Back to Contents

NOTE 7 Goodwill and Other Intangible Assets, net

Changes in the carrying values of goodwill for the six months ended June 30, 2023, by segment, were as follows (in millions):

	Segment
	Utility Solutions		Electrical Solutions		Total
BALANCE AT DECEMBER 31, 2022	$	1,275.9	$	694.6	$	1,970.5
Prior year acquisitions	1.2		2.1		3.3
Current year acquisitions(1)	21.0		—		21.0
Foreign currency translation	2.6		1.4		4.0
BALANCE AT JUNE 30, 2023	$	1,300.7	$	698.1	$	1,998.8

 (1) Refer to Note 3 - Business Acquisitions for additional information.

The carrying value of other intangible assets included in Other intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions):

	June 30, 2023				December 31, 2022
	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Definite-lived:
Patents, tradenames and trademarks	$	191.0	$	(80.1)	$	187.9	$	(75.7)
Customer relationships, developed technology and other	983.2		(470.3)		955.3		(437.8)
TOTAL DEFINITE-LIVED INTANGIBLES	$	1,174.2	$	(550.4)	$	1,143.2	$	(513.5)
Indefinite-lived:
Tradenames and other	40.6		—		40.2		—
TOTAL OTHER INTANGIBLE ASSETS	$	1,214.8	$	(550.4)	$	1,183.4	$	(513.5)

Amortization expense associated with definite-lived intangible assets was $18.1 million and $17.4 million during the three months ended June 30, 2023 and 2022, respectively, and $35.9 million and $34.9 million during the six months ended June 30, 2023 and 2022, respectively. Future amortization expense associated with these intangible assets is estimated to be $37.2 million for the remainder of 2023, $69.4 million in 2024, $67.2 million in 2025, $63.5 million in 2026, $57.3 million in 2027, and $51.9 million in 2028. The Company amortizes intangible assets with definite lives using either an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets useful lives, or using a straight line method. Approximately 80% of the gross value of definite-lived intangible assets follow an accelerated amortization method.

The Company completed its annual goodwill impairment test as of April 1, 2023. For each of the Company's four reporting units, the Company elected to utilize the quantitative goodwill impairment testing process, as permitted in the accounting guidance, by comparing the estimated fair value of the reporting units to their carrying values. If the estimated fair value exceeds its carrying value, no impairment exists.

Goodwill impairment testing requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units and determining the fair value of each reporting unit. Significant judgment is required to estimate the fair value of reporting units including estimating future cash flows, determining appropriate discount rates and other assumptions, including assumptions about secular economic and market conditions. The Company uses internal discounted cash flow models to estimate fair value. These cash flow estimates are derived from historical experience, third party end market data, and future long-term business plans and include assumptions of future sales growth, gross margin, operating margin, terminal growth rate, and the application of an appropriate discount rate. Significant changes in these estimates and assumptions could affect the determination of fair value and/or goodwill impairment for each reporting unit. The Company believes that its estimated aggregate fair value of its reporting units is reasonable when compared to the Company's market capitalization on the valuation date.

As of April 1, 2023, the impairment testing resulted in implied fair values for each reporting unit that exceeded such reporting unit's carrying value, by at least 47%, including goodwill. The Company did not have any reporting units with zero or negative carrying amounts.

HUBBELL INCORPORATED-Form 10-Q    14

Back to Contents

The Company completed its annual impairment test of indefinite-lived intangible assets as of April 1, 2023. For the 2023 test, the Company elected to utilize the quantitative impairment testing process as permitted in the accounting guidance, by comparing the estimated fair value of the indefinite-lived intangible assets to their carrying values. If the estimated fair value of the indefinite-lived intangible assets exceeds their carrying value, no impairment exists. The estimated fair value was determined utilizing an income approach (relief from royalty method). Significant judgment is required to estimate the fair value of the indefinite-lived intangible assets including assumptions for future revenues, discount rates, royalty rates, and other assumptions, including assumptions about secular economic and market conditions. Significant changes in these estimates and assumptions could affect the determination of fair value and/or impairment for each indefinite-lived intangible asset. As of April 1, 2023, the impairment testing resulted in estimated fair values for each indefinite-lived intangible asset that significantly exceeded the carrying values and there were no indefinite-lived intangible assets at risk of failing the quantitative impairment test.

HUBBELL INCORPORATED-Form 10-Q    15

Back to Contents

NOTE 8 Other Accrued Liabilities

Other accrued liabilities consists of the following (in millions):

	June 30, 2023		December 31, 2022
Customer program incentives	$	45.2	$	87.8
Accrued income taxes	13.1		4.5
Contract liabilities - deferred revenue	57.2		45.8
Customer refund liability	17.5		14.8
Accrued warranties short-term(1)	20.6		20.2
Current operating lease liabilities	30.4		30.5
Other	133.1		130.5
TOTAL	$	317.1	$	334.1

(1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding warranties.

NOTE 9 Other Non-Current Liabilities

Other non-current liabilities consists of the following (in millions):

	June 30, 2023		December 31, 2022
Pensions	$	154.9	$	155.3
Other post-retirement benefits	14.3		14.3
Deferred tax liabilities	112.9		113.8
Accrued warranties long-term(1)	25.2		26.0
Non-current operating lease liabilities	83.8		84.9
Other	109.8		111.3
TOTAL	$	500.9	$	505.6

(1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding warranties.

HUBBELL INCORPORATED-Form 10-Q    16

Back to Contents

NOTE 10 Total Equity

A summary of changes in total equity for the three and six months ended June 30, 2023 and the three and six months ended June 30, 2022 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, 2022	$	0.6	$	—	$	2,705.5	$	(345.2)	$	2,360.9	$	9.7
Net income	—		—		181.9		—		181.9		1.5
Other comprehensive (loss) income	—		—		—		9.3		9.3		—
Stock-based compensation	—		11.7		—		—		11.7		—
Acquisition/surrender of common shares(1)	—		(9.9)		(21.2)		—		(31.1)		—
Cash dividends declared ($1.12 per share)	—		—		(60.0)		—		(60.0)		—
Dividends to noncontrolling interest	—		—		—		—		—		(0.8)
Directors deferred compensation	—		—		—		—		—		—
BALANCE AT MARCH 31, 2023	$	0.6	$	1.8	$	2,806.2	$	(335.9)	$	2,472.7	$	10.4
Net income	—		—		206.8		—		206.8		1.4
Other comprehensive (loss) income	—		—		—		6.5		6.5		—
Stock-based compensation	—		4.4		—		—		4.4		—
Acquisition/surrender of common shares(1)	—		(6.4)		(3.3)		—		(9.7)		—
Cash dividends declared ($1.12 per share)	—		—		(60.2)		—		(60.2)		—
Dividends to noncontrolling interest	—		—		—		—		—		(1.4)
Directors deferred compensation	—		0.2		—		—		0.2		—
BALANCE AT JUNE 30, 2023	$	0.6	$	—	$	2,949.5	$	(329.4)	$	2,620.7	$	10.4

HUBBELL INCORPORATED-Form 10-Q    17

Back to Contents

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Hubbell Shareholders' Equity		Non- controlling interest
BALANCE AT DECEMBER 31, 2021	$	0.6	$	—	$	2,560.0	$	(330.8)	$	2,229.8	$	10.9
Net income	—		—		180.2		—		180.2		1.3
Other comprehensive (loss) income	—		—		—		5.4		5.4		—
Stock-based compensation	—		11.1		—		—		11.1		—
Acquisition/surrender of common shares(1)	—		(11.2)		(145.2)		—		(156.4)		—
Cash dividends declared ($1.05 per share)	—		—		(56.9)		—		(56.9)		—
Dividends to noncontrolling interest	—		—		—		—		—		(1.1)
Directors deferred compensation	—		0.1		—		—		0.1		—
BALANCE AT MARCH 31, 2022	$	0.6	$	—	$	2,538.1	$	(325.4)	$	2,213.3	$	11.1
Net income	—		—		122.0		—		122.0		1.5
Other comprehensive (loss) income	—		—		—		(25.8)		(25.8)		—
Stock-based compensation	—		5.6		—		—		5.6		—
Acquisition/surrender of common shares(1)	—		(1.9)		—		—		(1.9)		—
Cash dividends declared ($1.05 per share)	—		—		(56.5)		—		(56.5)		—
Dividends to noncontrolling interest	—		—		—		—		—		(1.6)
Directors deferred compensation	—		0.2		—		—		0.2		—
BALANCE AT JUNE 30, 2022	$	0.6	$	3.9	$	2,603.6	$	(351.2)	$	2,256.9	$	11.0

(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 $24.5 million and $145.2 million in the first six months of 2023 and 2022, respectively, reflects this accounting treatment.

The detailed components of total comprehensive income are presented in the Condensed Consolidated Statements of Comprehensive Income.

HUBBELL INCORPORATED-Form 10-Q    18

Back to Contents

NOTE 11 Accumulated Other Comprehensive Loss

A summary of the changes in Accumulated other comprehensive loss (net of tax) for the six months ended June 30, 2023 is provided below (in millions):

(debit) credit	Cash flow hedge gain (loss)		Unrealized gain (loss) on available-for- sale securities		Pension and post retirement benefit plan adjustment		Cumulative translation adjustment		Total
BALANCE AT DECEMBER 31, 2022	$	0.6	$	(0.8)	$	(188.6)	$	(156.4)	$	(345.2)
Other comprehensive income (loss) before reclassifications	(0.4)		—		—		13.3		12.9
Amounts reclassified from accumulated other comprehensive income (loss)	(0.5)		—		3.4		—		2.9
Current period other comprehensive income (loss)	(0.9)		—		3.4		13.3		15.8
BALANCE AT JUNE 30, 2023	$	(0.3)	$	(0.8)	$	(185.2)	$	(143.1)	$	(329.4)

A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2023 and 2022 is provided below (in millions): 

	Three Months Ended June 30,				Six Months Ended June 30,
Details about Accumulated Other Comprehensive Loss Components	2023		2022		2023		2022		Location of Gain (Loss) Reclassified into Income
Cash flow hedges gain (loss):
Forward exchange contracts	$	—	$	—	$	—	$	—	Net sales
	0.3		0.2		0.7		0.2		Cost of goods sold
	—		—		—		—		Other expense, net
	0.3		0.2		0.7		0.2		Total before tax
	(0.1)		—		(0.2)		—		Tax benefit (expense)
	$	0.2	$	0.2	$	0.5	$	0.2	Gain (loss) net of tax
Amortization of defined benefit pension and post retirement benefit items:
Prior-service costs (a)	$	(0.1)	$	(0.1)	$	(0.2)	$	(0.2)
Actuarial gains (losses) (a)	(2.5)		(2.5)		(5.0)		(5.0)
Settlement losses (a)	—		(5.8)		—		(5.8)
	(2.6)		(8.4)		(5.2)		(11.0)		Total before tax
	0.6		2.1		1.8		2.6		Tax benefit (expense)
	$	(2.0)	$	(6.3)	$	(3.4)	$	(8.4)	Gain (loss) net of tax
Reclassification of currency translation gain (loss):
	$	—	$	—	$	—	$	(0.5)	Gain (loss) on disposition of business (Note 2)
	—		—		—		—		Tax benefit (expense)
	$	—	$	—	$	—	$	(0.5)	Gain (loss) net of tax
Gains (losses) reclassified into earnings	$	(1.8)	$	(6.1)	$	(2.9)	$	(8.7)	Gain (loss) net of tax

(a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 13 - Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details).

HUBBELL INCORPORATED-Form 10-Q    19

Back to Contents

NOTE 12 Earnings Per Share

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Service-based and performance-based restricted stock awards granted by the Company are considered participating securities as these awards contain a non-forfeitable right to dividends.

The following table sets forth the computation of earnings per share for the three and six months ended June 30, 2023 and 2022 (in millions, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income from continuing operations attributable to Hubbell Incorporated	$	206.8	$	135.6	$	388.7	$	238.1
Less: Earnings allocated to participating securities	(0.5)		(0.4)		(0.9)		(0.6)
Net income from continuing operations available to common shareholders	$	206.3	$	135.2	$	387.8	$	237.5
Net (loss) income from discontinued operations attributable to Hubbell Incorporated	$	—	$	(13.6)	$	—	$	64.1
Less: Earnings allocated to participating securities	—		—		—		(0.2)
Net (loss) income from discontinued operations available to common shareholders	$	—	$	(13.6)	$	—	$	63.9
Net income attributable to Hubbell Incorporated	$	206.8	$	122.0	$	388.7	$	302.2
Less: Earnings allocated to participating securities	(0.5)		(0.4)		(0.9)		(0.8)
Net income available to common shareholders	$	206.3	$	121.6	$	387.8	$	301.4
Denominator:
Average number of common shares outstanding	53.6		53.6		53.6		53.8
Potential dilutive common shares	0.4		0.3		0.3		0.3
Average number of diluted shares outstanding	54.0		53.9		53.9		54.1
Basic earnings per share:
Basic earnings per share from continuing operations	$	3.85	$	2.52	$	7.24	$	4.41
Basic earnings per share from discontinued operations	—		(0.25)		—		1.19
Basic earnings per share	$	3.85	$	2.27	$	7.24	$	5.60
Diluted earnings per share:
Diluted earnings per share from continuing operations	$	3.82	$	2.51	$	7.19	$	4.39
Diluted earnings per share from discontinued operations	—		(0.25)		—		1.18
Diluted earnings per share	$	3.82	$	2.26	$	7.19	$	5.57

The Company did not have any significant anti-dilutive securities outstanding during the three and six months ended June 30, 2023 and 2022.

HUBBELL INCORPORATED-Form 10-Q    20

Back to Contents

NOTE 13 Pension and Other Benefits

The following table sets forth the components of net pension and other benefit costs for the three and six months ended June 30, 2023 and 2022 (in millions):

	Pension Benefits				Other Benefits
	2023		2022		2023		2022
Three Months Ended June 30,
Service cost	$	0.1	$	0.2	$	—	$	—
Interest cost	8.8		6.3		0.2		0.1
Expected return on plan assets	(7.0)		(8.2)		—		—
Amortization of prior service cost	0.1		0.1		—		—
Amortization of actuarial losses (gains)	2.6		2.6		(0.1)		(0.1)
Settlement losses	—		5.8		—		—
NET PERIODIC BENEFIT COST	$	4.6	$	6.8	$	0.1	$	—
Six Months Ended June 30,
Service cost	$	0.2	$	0.4	$	—	$	—
Interest cost	17.5		12.6		0.4		0.2
Expected return on plan assets	(14.0)		(16.4)		—		—
Amortization of prior service cost	0.2		0.2		—		—
Amortization of actuarial losses (gains)	5.2		5.2		(0.2)		(0.2)
Settlement losses	—		5.8		—		—
NET PERIODIC BENEFIT COST	$	9.1	$	7.8	$	0.2	$	—

In the second quarter of 2022, the Company recorded $4.4 million of settlement losses in continuing operations and $1.4 million of settlement losses in discontinued operations relating to retirees that elected to receive lump-sum distributions from the Company's defined benefit pension plans. This charge was the result of lump-sum payments which exceeded the threshold for settlement accounting under U.S. GAAP for the year.

Employer Contributions

The Company made no contributions to its qualified domestic defined benefit pension plan and no contributions to its foreign pension plans during the six months ended June 30, 2023. Although not required by ERISA and the Internal Revenue Code, the Company may elect to make additional voluntary contributions to its qualified domestic defined benefit pension plan in 2023.

HUBBELL INCORPORATED-Form 10-Q    21

Back to Contents

NOTE 14 Guarantees

The Company records a liability equal to the fair value of guarantees in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of June 30, 2023 and December 31, 2022, the fair value and maximum potential payment related to the Company’s guarantees were not material.

The Company offers product warranties that cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known, or as historical experience indicates.

Changes in the accrual for product warranties during the six months ended June 30, 2023 and 2022 are set forth below (in millions):

	2023		2022
BALANCE AT JANUARY 1, (a)	$	46.2	$	66.1
Provision	6.5		7.3
Expenditures/payments/other	(6.9)		(7.3)
BALANCE AT June 30, (a)	$	45.8	$	66.1

(a) Refer to Note 8 – Other Accrued Liabilities and Note 9 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties.

HUBBELL INCORPORATED-Form 10-Q    22

Back to Contents

NOTE 15 Fair Value Measurement

Financial Instruments

Financial instruments which potentially subject the Company to significant concentrations of credit loss risk consist of trade receivables, cash equivalents and investments. The Company grants credit terms in the normal course of business to its customers. Due to the diversity of its product lines, the Company has an extensive customer base including electrical distributors and wholesalers, electric utilities, equipment manufacturers, electrical contractors, telecommunication companies and retail and hardware outlets. As part of its ongoing procedures, the Company monitors the credit worthiness of its customers. Bad debt write-offs have historically been minimal. The Company places its cash and cash equivalents with financial institutions and limits the amount of exposure in any one institution.

At June 30, 2023 our accounts receivable balance was $811.2 million, net of allowances of $13.6 million. During the six months ended June 30, 2023 our allowances decreased approximately $0.7 million.

Investments

At June 30, 2023 and December 31, 2022, the Company had $64.2 million and $61.4 million, respectively, of available-for-sale municipal debt securities. These investments had an amortized cost of $65.3 million and $62.6 million, respectively. No allowance for credit losses related to our available-for-sale debt securities was recorded for the six months ended June 30, 2023. As of June 30, 2023 and December 31, 2022 the unrealized losses attributable to our available-for-sale debt securities were $1.2 million and $1.3 million, respectively. The fair value of available-for-sale debt securities with unrealized losses was $58.9 million at June 30, 2023 and $53.7 million at December 31, 2022.

The Company also had trading securities of $21.6 million at June 30, 2023 and $18.8 million at December 31, 2022 that are carried on the balance sheet at fair value. Unrealized gains and losses associated with available-for-sale debt securities are reflected in Accumulated other comprehensive loss, net of tax, while unrealized gains and losses associated with trading securities are reflected in the Condensed Consolidated Statement of Income.

Fair value measurements

Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly.

Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions.

HUBBELL INCORPORATED-Form 10-Q    23

Back to Contents

The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at June 30, 2023 and December 31, 2022 (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
June 30, 2023
Money market funds(a)	$	272.6	$	—	$	—	$	272.6
Available for sale investments	—		64.2		—		64.2
Trading securities	21.6		—		—		21.6
Deferred compensation plan liabilities	(21.6)		—		—		(21.6)
Derivatives:
Forward exchange contracts-Assets(b)	—		0.1		—		0.1
Forward exchange contracts-(Liabilities)(c)	—		(0.4)		—		(0.4)
TOTAL	$	272.6	$	63.9	$	—	$	336.5
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, 2022
Money market funds(a)	$	147.9	$	—	$	—	$	147.9
Time Deposits(a)	—		4.8		—		4.8
Available for sale investments	—		61.4		—		61.4
Trading securities	18.8		—		—		18.8
Deferred compensation plan liabilities	(18.8)		—		—		(18.8)
Derivatives:
Forward exchange contracts-Assets(b)	—		1.1		—		1.1
TOTAL	$	147.9	$	67.3	$	—	$	215.2

(a) Money market funds and time deposits are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets.

(b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets.

(c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets.

The methods and assumptions used to estimate the Level 2 fair values were as follows:

Forward exchange contracts – The fair value of forward exchange contracts was based on quoted forward foreign exchange prices at the reporting date.

Available-for-sale municipal bonds classified in Level 2 – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. 

Deferred compensation plans

The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. The Company purchased $3.1 million and $1.9 million of trading securities related to these deferred compensation plans during the six months ended June 30, 2023 and 2022, respectively. As a result of participant distributions, the Company sold $2.0 million of these trading securities during the six months ended June 30, 2023 and $2.4 million during the six months ended June 30, 2022. The unrealized gains and losses associated with these trading securities are directly offset by the changes in the fair value of the underlying deferred compensation plan obligation.

Long Term Debt

As of June 30, 2023 and December 31, 2022, the carrying value of long-term debt, net of unamortized discount and debt issuance costs, was $1,439.1 million and $1,437.9 million, respectively. The estimated fair value of the long-term debt as of June 30, 2023 and December 31, 2022 was $1,326.9 million and $1,306.5 million, respectively, using quoted market prices in active markets for similar liabilities (Level 2).

HUBBELL INCORPORATED-Form 10-Q    24

Back to Contents

NOTE 16 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.

HUBBELL INCORPORATED-Form 10-Q    25

Back to Contents

NOTE 17 Restructuring Costs and Other

In the three and six months ended June 30, 2023, we incurred costs for restructuring actions initiated in 2023 as well as costs for restructuring actions initiated in prior years. Our restructuring actions are associated with cost reduction efforts that include the consolidation of manufacturing and distribution facilities as well as workforce reductions. Restructuring costs include severance and employee benefits, asset impairments, accelerated depreciation, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. These costs are predominantly settled in cash from our operating activities and are generally settled within one year, with the exception of asset impairments, which are non-cash.

Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022 are as follows (in millions):

	Three Months Ended June 30,
	2023		2022		2023		2022		2023		2022
	Cost of goods sold				Selling & administrative expense				Total
Utility Solutions	$	0.6	$	0.7	$	0.1	$	(0.2)	$	0.7	$	0.5
Electrical Solutions	1.2		0.5		(0.1)		0.6		1.1		1.1
Total Pre-Tax Restructuring Costs	$	1.8	$	1.2	$	—	$	0.4	$	1.8	$	1.6

	Six Months Ended June 30,
	2023		2022		2023		2022		2023		2022
	Cost of goods sold				Selling & administrative expense				Total
Utility Solutions	$	1.3	$	1.7	$	0.2	$	0.2	$	1.5	$	1.9
Electrical Solutions	0.9		0.6		(0.1)		0.7		0.8		1.3
Total Pre-Tax Restructuring Costs	$	2.2	$	2.3	$	0.1	$	0.9	$	2.3	$	3.2

The following table summarizes the accrued liabilities for our restructuring actions (in millions):

	Beginning Accrued  Restructuring Balance 1/1/23		Pre-tax Restructuring Costs		Utilization and Foreign Exchange		Ending Accrued Restructuring Balance 6/30/2023
2023 Restructuring Actions
Severance	$	—	$	0.1	$	(0.1)	$	—
Asset write-downs	—		—		—		—
Facility closure and other costs	—		0.1		(0.1)		—
Total 2023 Restructuring Actions	$	—	$	0.2	$	(0.2)	$	—
2022 and Prior Restructuring Actions
Severance	$	7.5	$	0.3	$	(2.5)	$	5.3
Asset write-downs	—		—		—		—
Facility closure and other costs	0.4		1.8		(1.7)		0.5
Total 2022 and Prior Restructuring Actions	$	7.9	$	2.1	$	(4.2)	$	5.8
Total Restructuring Actions	$	7.9	$	2.3	$	(4.4)	$	5.8

HUBBELL INCORPORATED-Form 10-Q    26

Back to Contents

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 2022		Costs incurred in the first six months of 2023		Remaining costs at 6/30/2023
2023 Restructuring Actions
Utility Solutions	$	—	$	—	$	—	$	—
Electrical Solutions	0.2		—		0.2		—
Total 2023 Restructuring Actions	$	0.2	$	—	$	0.2	$	—
2022 and Prior Restructuring Actions
Utility Solutions	$	6.2	$	4.0	$	1.5	$	0.7
Electrical Solutions	10.4		6.3		0.6		3.5
Total 2022 and Prior Restructuring Actions	$	16.6	$	10.3	$	2.1	$	4.2
Total Restructuring Actions	$	16.8	$	10.3	$	2.3	$	4.2

NOTE 18 Debt and Financing Arrangements

Long-term debt consists of the following (in millions):

	Maturity	June 30, 2023		December 31, 2022
Senior notes at 3.35%	2026	$	398.2	$	397.9
Senior notes at 3.15%	2027	297.8		297.5
Senior notes at 3.50%	2028	446.6		446.2
Senior notes at 2.300%	2031	296.5		296.3
TOTAL LONG-TERM DEBT(a)		$	1,439.1	$	1,437.9

(a)Long-term debt is presented net of debt issuance costs and unamortized discounts.

2021 Credit Facility

The Company has a five-year credit agreement with a syndicate of lenders and JPMorgan Chase, N.A., as administrative agent, that provides a $750 million committed revolving credit facility (the “2021 Credit Facility"). Commitments under the 2021 Credit Facility may be increased to an aggregate amount not to exceed $1.25 billion.

The 2021 Credit Facility contains a financial covenant requiring that, as of the last day of each fiscal quarter, the ratio of total indebtedness to total capitalization shall not be greater than 65%. The Company was in compliance with this covenant as of June 30, 2023. As of June 30, 2023, the 2021 Credit Facility was undrawn.

Short-Term Debt

The Company had $1.8 million and $4.7 million of short-term debt outstanding at June 30, 2023 and December 31, 2022, respectively, which consisted of borrowings to support our international operations in China and amounts outstanding under our Commercial Card Program.

HUBBELL INCORPORATED-Form 10-Q    27

Back to Contents

Note 19 Stock-Based Compensation

As of June 30, 2023, the Company had various stock-based awards outstanding which were issued to executives and other key employees. The Company recognizes the grant-date fair value of all stock-based awards to employees over their respective requisite service periods (generally equal to an award’s vesting period), net of estimated forfeitures. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. For those awards that vest immediately upon retirement eligibility, the Company recognizes compensation cost immediately for retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period.

The Company’s long-term incentive program for awarding stock-based compensation includes a combination of restricted stock, stock appreciation rights (“SARs”), and performance shares of the Company’s common stock pursuant to the Hubbell Incorporated 2005 Incentive Award Plan as amended and restated (the "Award Plan"). Under the Award Plan, the Company may authorize up to 9.7 million shares of common stock to settle awards of restricted stock, performance shares, or SARs. The Company issues new shares to settle stock-based awards. During the three months ended March 31, 2023, the Company's grant of stock-based awards included restricted stock, SARs and performance shares. There were no material awards granted during the three months ended June 30, 2023.

Each of the compensation arrangements is discussed below.

Restricted Stock  

The Company issues various types of restricted stock awards, all of which are considered outstanding at the time of grant, as the award holders are entitled to dividends and voting rights. Unvested restricted stock awards are considered participating securities when computing earnings per share. Restricted stock grants are not transferable and are subject to forfeiture in the event of the recipient’s termination of employment prior to vesting.

Restricted Stock Issued to Employees - Service Condition

Restricted stock awards that vest based upon a service condition are expensed on a straight-line basis over the requisite service period. These awards generally vest either in three equal installments on each of the first three anniversaries of the grant date or on the third-year anniversary of the grant date. The fair 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 2023, the Company granted 47,670 restricted stock awards with a fair value per share of $241.17.

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 2023, the Company granted 93,779 SAR awards. The fair value of each SAR award was measured using the Black-Scholes option pricing model.

The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during February 2023:

Grant Date	Expected Dividend Yield	Expected Volatility	Risk Free Interest Rate	Expected Term	Weighted Avg. Grant Date Fair Value of 1 SAR
February 2023	1.9%	28.0%	3.7%	4.9 years	$60.99

The expected dividend yield was calculated by dividing the Company’s expected annual dividend by the average stock price for the past three months. Expected volatilities are based on historical volatilities of the Company’s stock for a period consistent with the expected term. The expected term of SARs granted was based upon historical exercise behavior of SARs. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the award.

HUBBELL INCORPORATED-Form 10-Q    28

Back to Contents

Performance Shares

Performance shares represent the right to receive a share of the Company’s common stock subject to the achievement of certain market or performance conditions established by the Company’s Compensation Committee and measured over a three-year period. Partial vesting in these awards may occur after separation from the Company for retirement eligible employees. Shares are not vested until approved by the Company’s Compensation Committee.

Performance Shares - Market Condition

In February 2023, the Company granted 11,481 performance shares that will vest subject to a market condition and service condition through the performance period. The market condition associated with the awards is the Company's total shareholder return ("TSR") compared to the TSR generated by the companies that comprise the S&P Capital Goods 900 index over a three year performance period. Performance at target will result in vesting and issuance of the number of performance shares granted, equal to 100% payout. Performance below or above target can result in issuance in the range of 0%-200% of the number of shares granted. Expense is recognized irrespective of the market condition being achieved.

The fair value of the performance share awards with a market condition for the 2023 grant was determined based upon a lattice model.

The following table summarizes the related assumptions used to determine the fair values of the performance share awards with a market condition granted during February 2023:

Grant Date	Stock Price on Measurement Date	Dividend Yield	Expected Volatility	Risk Free Interest Rate	Expected Term	Weighted Avg. Grant Date Fair Value
February 2023	$241.17	1.9%	39.4%	4.1%	2.9 years	$279.47

Expected volatilities are based on historical volatilities of the Company’s and members of the peer group's stock over the expected term of the award. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the expected term of the award.

Performance Shares - Performance Condition

In February 2023, the Company granted 23,316 performance shares that will vest subject to an internal Company-based performance condition and service requirement.

Fifty percent of these performance shares granted will vest based on Hubbell’s compounded annual growth rate of Net sales as compared to that of the companies that comprise the S&P Capital Goods 900 index. Fifty percent of these performance shares granted will vest based on achieved operating profit margin performance as compared to internal targets. Each of these performance conditions is measured over the same three-year performance period. The cumulative result of these performance conditions can result in a number of shares earned in the range of 0% - 200% of the target number of shares granted.

The fair value of the award is measured based upon the average of the high and low trading prices of the Company's common stock on the measurement date reduced by the present value of dividends expected to be paid during the requisite service period. The Company expenses these awards on a straight-line basis over the requisite service period and including an assessment of the performance achieved to date. The weighted average fair value per share was $230.64 for the awards granted during February 2023.

Grant Date	Fair Value	Performance Period	Payout Range
February 2023	$230.64	Jan 2023 - Dec 2025	0-200%

HUBBELL INCORPORATED-Form 10-Q    29

Back to Contents

ITEM 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations

Executive Overview of the Business

Hubbell is a global manufacturer of quality electrical products and utility solutions for a broad range of customer and end market applications. We provide utility and electrical solutions that enable our customers to operate critical infrastructure reliably and efficiently, and we empower and energize communities through innovative solutions supporting energy infrastructure In Front of the Meter, on The Edge, and Behind the Meter. In Front of the Meter is where utilities transmit and distribute energy to their customers. The Edge connects utilities with owner/operators and allows energy and data to be distributed back and forth. Behind the Meter is where owners and operators of buildings and other critical infrastructure consume energy. Products are either sourced complete, manufactured or assembled by subsidiaries in the United States, Canada, Puerto Rico, Mexico, China, the UK, Brazil, Australia, Spain and Ireland. The Company also participates in joint ventures in Hong Kong and the Philippines, and maintains offices in Singapore, Italy, China, India, Mexico, South Korea, Chile, and countries in the Middle East. The Company employed approximately 17,000 individuals worldwide as of June 30, 2023.

The Company’s reporting segments consist of the Utility Solutions segment and Electrical Solutions segment.

Results for the six months ended June 30, 2023 by segment are included under “Segment Results” within this Management’s Discussion and Analysis.

The Company's long-term strategy is to serve its customers with reliable and innovative electrical and related infrastructure solutions with desired brands and high-quality service, delivered through a competitive cost structure; to complement organic revenue growth with acquisitions that enhance its product offerings; and to allocate capital effectively to create shareholder value.

Our strategy to complement organic revenue growth with acquisitions is focused on acquiring assets that extend our capabilities, expand our product offerings, and present opportunities to compete in core, adjacent or complementary markets. Our acquisition strategy also provides the opportunity to advance our revenue growth objectives during periods of weakness or inconsistency in our end-markets.

Our strategy to deliver products through a competitive cost structure has resulted in past and ongoing restructuring and related activities. Our restructuring and related efforts include the consolidation of manufacturing and distribution facilities, and workforce actions, as well as streamlining and consolidating our back-office functions. The primary objectives of our restructuring and related activities are to optimize our manufacturing footprint, cost structure, and effectiveness and efficiency of our workforce.

Productivity improvement also continues to be a key area of focus for the Company and efforts to drive productivity complement our restructuring and related activities to minimize the impact of rising material costs and other administrative cost inflation. Because material costs are approximately two thirds of our cost of goods sold, continued volatility in this area could significantly impact profitability. Our goal is to have pricing and productivity programs that offset material and other inflationary cost increases as well as pay for investments in key growth areas.

Productivity programs affect virtually all functional areas within the Company by reducing or eliminating waste and improving processes. We continue to expand our efforts related to global product and component sourcing and supplier cost reduction programs. Value engineering efforts, product transfers and the use of lean process improvement techniques are expected to continue to increase manufacturing efficiency. In addition, we continue to build upon the benefits of our enterprise resource planning system across all functions.

Our sales are also subject to market conditions that may cause customer demand for our products to be volatile and unpredictable, particularly in our Electrical Solutions segment. Product demand can be affected by fluctuations in domestic and international economic conditions, as well as currency fluctuations, commodity costs, and a variety of other factors. We have recently experienced significant inflationary pressure across much of our business. We have had to take various pricing actions to cover the higher costs and protect our profitability. Because we expect inflation to remain a factor for the foreseeable future, we expect to continue these pricing actions subject, however, to demand and market conditions. Accordingly, there can be no assurance that we will be able to maintain our margins in response to further changes in inflationary pressures. In addition, macroeconomic effects such as increases in interest rates and other measures taken by central banks and other policy makers could have a negative effect on overall economic activity which could reduce our customers’ demand for our products.

HUBBELL INCORPORATED-Form 10-Q    30

Back to Contents

Discontinued Operations

On February 1, 2022, the Company completed the sale of the C&I Lighting business to GE Current, a Daintree Company, for total net cash consideration of $332.8 million. The sale of this business is reported as a discontinued operation in our Condensed Consolidated Financial Statements. For additional information regarding this transaction and its effect on our financial reporting, see Note 2 – Discontinued Operations, in the accompanying Condensed Consolidated Financial Statements, which note is incorporated herein by reference.

The following is a discussion and analysis of our business, financial condition and results of operations as of and for the three and six month periods ended June 30, 2023 and 2022. This discussion and analysis should be read in conjunction with our Condensed Consolidated Financial Statements and notes thereto in Item 1 of this Quarterly Report on Form 10-Q, and the audited consolidated financial statements, accompanying notes and Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

Results of Operations – Second Quarter of 2023 compared to the Second Quarter of 2022

Overview

Hubbell delivered a strong quarter of sales growth and margin expansion. Grid modernization and electrification continue to drive demand for our products and solutions. Margin expansion in the quarter was driven primarily by favorable price realization and modestly lower material costs. Improvements in productivity were more than offset by non-material cost inflation and investments in our business.

Utility Solutions segment sales growth was strong in the quarter, driven by price realization, improved availability of semiconductors and strong backlog. In the Electrical Solutions segment, commercial markets remained modest driven by customer inventory management and residential markets showed continued softness, partially offset by broad-based strength across industrial end markets and strong growth in renewables and datacenters.

SUMMARY OF CONDENSED CONSOLIDATED RESULTS (IN MILLIONS, EXCEPT PER SHARE DATA): 

	Three Months Ended June 30,
	2023		% of Net sales		2022		% of Net sales
Net sales	$	1,365.9			$	1,256.0
Cost of goods sold	869.7		63.7	%	872.8		69.5	%
Gross profit	496.2		36.3	%	383.2		30.5	%
Selling & administrative ("S&A") expense	208.4		15.2	%	192.6		15.3	%
Operating income	287.8		21.1	%	190.6		15.2	%
Net income from continuing operations	208.2		15.2	%	137.1		10.9	%
Less: Net income from continuing operations attributable to non-controlling interest	(1.4)		(0.1)	%	(1.5)		(0.1)	%
Net income from continuing operations attributable to Hubbell Incorporated	206.8		15.1	%	135.6		10.8	%
Income from discontinued operations, net of tax	—				(13.6)
Net income attributable to Hubbell incorporated	206.8				122.0
Less: Earnings allocated to participating securities	(0.5)				(0.4)
Net income available to common shareholders	$	206.3			$	121.6
Average number of diluted shares outstanding	54.0				53.9
DILUTED EARNINGS PER SHARE - CONTINUING OPERATIONS	$	3.82			$	2.51
DILUTED EARNINGS PER SHARE - DISCONTINUED OPERATIONS	$	—			$	(0.25)

HUBBELL INCORPORATED-Form 10-Q    31

Back to Contents

In the following discussion of results of operations, we refer to "adjusted" operating measures. We believe those adjusted measures, which exclude the impact of certain costs, gains and losses, may provide investors with useful information regarding our underlying performance from period to period and allow investors to understand our results of operations without regard to items we do not consider a component of our core operating performance.

Adjusted operating measures exclude amortization of all intangible assets associated with our business acquisitions, including inventory step-up amortization associated with those acquisitions. The intangible assets associated with our business acquisitions arise from the allocation of the purchase price using the acquisition method of accounting in accordance with Accounting Standards Codification 805, “Business Combinations.” These assets consist primarily of customer relationships, developed technology, trademarks and tradenames, and patents, as reported in Note 7 – Goodwill and Other Intangible Assets, under the heading “Total Definite-Lived Intangibles,” within the Company’s audited consolidated financial statements set forth in its Annual Report on Form 10-K for the fiscal year ended December 31, 2022.

The Company believes that the exclusion of these non-cash expenses (i) enhances management’s and investors’ ability to analyze underlying business performance, (ii) facilitates comparisons of our financial results over multiple periods, and (iii) provides more relevant comparisons of our results with the results of other companies as the amortization expense associated with these assets may fluctuate significantly from period to period based on the timing, size, nature, and number of acquisitions. Although we exclude amortization of these acquired intangible assets and inventory step-up from our non-GAAP results, we believe that it is important for investors to understand that revenue generated, in part, from such intangibles is included within revenue in determining adjusted net income attributable to Hubbell Incorporated.

Adjusted operating measurers also exclude a pension settlement charge of $4.4 million recognized during the second quarter of 2022.

Organic net sales (or organic net sales growth), a non-GAAP measure, represents Net sales according to U.S. GAAP, less Net sales from acquisitions and divestitures during the first twelve months of ownership or divestiture, respectively, less the effect of fluctuations in Net sales from foreign currency exchange. The period-over-period effect of fluctuations in Net sales from foreign currency exchange is calculated as the difference between local currency Net sales of the prior period translated at the current period exchange rate as compared to the same local currency Net sales translated at the prior period exchange rate. We believe this measure provides management and investors with a more complete understanding of the underlying operating results and trends of established, ongoing operations by excluding the effect of acquisitions, dispositions and foreign currency as these activities can obscure underlying trends. When comparing Net sales growth between periods, excluding the effects of acquisitions, business dispositions and currency exchange rates, those effects are different when comparing results for different periods. For example, because Net sales from acquisitions are considered inorganic from the date we complete an acquisition through the end of the first year following the acquisition, Net sales from such acquisition are reflected as organic net sales thereafter.

There are limitations to the use of non-GAAP measures. Non-GAAP measures do not present complete financial results. We compensate for this limitation by providing a reconciliation between our non-GAAP financial measures and the respective most directly comparable financial measure calculated and presented in accordance with GAAP. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies’ non-GAAP financial measures having the same or similar names. These financial measures should not be considered in isolation from, as substitutes for, or alternative measures of, reported GAAP financial results, and should be viewed in conjunction with the most comparable GAAP financial measures and the provided reconciliations thereto. We believe, however, that these non-GAAP financial measures, when viewed together with our GAAP results and related reconciliations, provide a more complete understanding of our business. We strongly encourage investors to review our consolidated financial statements and publicly filed reports in their entirety and not rely on any single financial measure.

HUBBELL INCORPORATED-Form 10-Q    32

Back to Contents

The following table reconciles Adjusted operating income, a non-GAAP measure, to Operating income, the directly comparable GAAP financial measure (in millions):

	Three Months Ended June 30,
	2023		% of Net sales			2022		% of Net sales
Operating income (GAAP measure)	$	287.8	21.1		%	$	190.6	15.2		%
Amortization of acquisition-related intangible assets	18.1		1.3		%	17.4		1.4		%
Adjusted operating income (non-GAAP measure)	$	305.9	22.4		%	$	208.0	16.6		%
The following table reconciles Adjusted net income from continuing operations attributable to Hubbell Incorporated, Adjusted net income from continuing operations available to common shareholders, and the diluted per share amounts thereof, each a non-GAAP measure, to the directly comparable GAAP financial measures (in millions, except per share data).
	Three Months Ended June 30,
	2023		Diluted Per Share			2022		Diluted Per Share
Net income from continuing operations attributable to Hubbell Incorporated (GAAP measure)	$	206.8	$	3.83		$	135.6	$	2.52
Amortization of acquisition-related intangible assets	18.1		0.34			17.4		0.32
Pension charge	—		—			4.4		0.08
Subtotal	$	224.9	$	4.17		$	157.4	$	2.92
Income tax effects(1)	4.5		0.09			5.4		0.10
Adjusted net income from continuing operations attributable to Hubbell Incorporated (non-GAAP measure)	$	220.4	$	4.08		$	152.0	$	2.82
Less: Earnings allocated to participating securities	(0.5)		(0.01)			(0.4)		(0.01)
Adjusted net income from continuing operations available to common shareholders (non-GAAP measure)	$	219.9	$	4.07		$	151.6	$	2.81

(1) The income tax effects are calculated using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction, unless otherwise noted.

The following table reconciles our Organic net sales to the directly comparable GAAP financial measure (in millions and percentage change):

	Three Months Ended June 30,
	2023		Inc/(Dec) %	2022		Inc/(Dec) %
Net sales growth (GAAP measure)	$	109.9	8.7	$	201.7	19.1
Impact of acquisitions	38.1		3.0	—		—
Impact of divestitures	—		—	(1.3)		(0.1)
Foreign currency exchange	(1.1)		(0.1)	(3.2)		(0.4)
Organic net sales growth (non-GAAP measure)	$	72.9	5.8	$	206.2	19.6

HUBBELL INCORPORATED-Form 10-Q    33

Back to Contents

Net Sales

Net sales of $1,365.9 million in the second quarter of 2023 increased by $109.9 million compared to the second quarter of 2022. Organic net sales increased by 5.8% which was composed of a high single digit percentage increase in price realization partially offset by a low single digit percentage decrease in volumes. Acquisitions contributed 3.0% to sales growth. The primary drivers of these changes are discussed in more detail in the Segment Results section below.

Cost of Goods Sold and Gross Profit

As a percentage of Net sales, cost of goods sold decreased by 580 basis points to 63.7% in the second quarter of 2023, as compared to 69.5% in the second quarter of 2022, resulting in a related 580 basis point increase in second quarter 2023 Gross profit margin to 36.3% as compared to 30.5% in the second quarter of 2022. The increase in the Gross profit margin primarily reflects approximately ten percentage points of margin expansion driven by favorable price realization, improved operational productivity and modestly lower material costs. Operational productivity was driven by improving supply chain conditions and reduced rates of absenteeism as compared to the prior year period. Those increases were offset by approximately four percentage points of margin headwind driven by continued non-material cost inflation, lower unit volumes, as well as increased investments in capacity, innovation and productivity.

Selling & Administrative Expenses

S&A expense in the second quarter of 2023 was $208.4 million and increased by $15.8 million compared to the prior year period. Approximately two thirds of this increase was driven by labor and other cost inflation, while the remainder of the increase was primarily driven by added S&A costs from acquisitions and increased investments in the business. S&A expense as a percentage of Net sales was 15.2% in the second quarter of 2023, compared to 15.3% in the second quarter of 2022.

Total Other Expense

Total other expense decreased by $0.6 million in the second quarter of 2023 to $14.0 million, primarily due to a $4.4 million pension charge recorded in the second quarter of 2022 that did not recur in 2023, lower net interest expense in the second quarter of 2023 compared to the same period of the prior year, and favorable foreign exchange. Those were partially offset by a reduction of $4.8 million of income related to the C&I Lighting business disposition in 2022 that did not recur in 2023 and higher non-service pension cost recognized in the second quarter of 2023 as compared to the same period of the prior year.

Income Taxes

The effective tax rate in the second quarter of 2023 increased to 24.0% as compared to 22.1% in the second quarter of 2022, primarily due to increased income in higher taxed jurisdictions partially offset by a higher stock based compensation tax benefit.

Net Income From Continuing Operations Attributable to Hubbell Incorporated and Earnings Per Diluted Share From Continuing Operations

Net income from continuing operations attributable to Hubbell Incorporated was $206.8 million in the second quarter of 2023 and increased 52.5% as compared to the same period of the prior year, reflecting the factors described above. As a result, earnings per diluted share from continuing operations in the second quarter of 2023 increased 52.2% as compared to the second quarter of 2022. Adjusted net income from continuing operations attributable to Hubbell Incorporated, which excludes amortization of acquisition-related intangibles from both periods, and a $4.4 million pension settlement charge recognized in the second quarter of 2022, was $219.9 million in the second quarter of 2023 and increased by 45.0% as compared to the second quarter of 2022.

Loss From Discontinued Operations, Net of Tax

Loss from discontinued operations, was $13.6 million net of tax in the second quarter of 2022 and included $4.5 million of pre-tax transaction and separation costs. There was no income or loss from discontinued operations in the second quarter of 2023.

HUBBELL INCORPORATED-Form 10-Q    34

Back to Contents

Segment Results

UTILITY SOLUTIONS

	Three Months Ended June 30,
(In millions)	2023			2022
Net sales	$	830.8		$	728.5
Operating income (GAAP measure)	199.5			111.4
Amortization of acquisition-related intangible assets	13.6			13.9
Adjusted operating income	$	213.1		$	125.3
Operating margin (GAAP measure)	24.0		%	15.3		%
Adjusted operating margin	25.6		%	17.2		%

The following table reconciles our Utility Solutions Organic net sales to the directly comparable GAAP financial measure (in millions and percentage change):

	Three Months Ended June 30,
Utility Solutions	2023		Inc/(Dec) %	2022		Inc/(Dec) %
Net sales growth (GAAP measure)	$	102.3	14.0	$	139.7	23.7
Impact of acquisitions	9.7		1.3	—		—
Impact of divestitures	—		—	(1.3)		(0.3)
Foreign currency exchange	(0.7)		(0.1)	0.5		0.1
Organic net sales growth (non-GAAP measure)	$	93.3	12.8	$	140.5	23.9

Net sales in the Utility Solutions segment in the second quarter of 2023 were $830.8 million, an increase of $102.3 million, or 14.0%, as compared to the second quarter of 2022. This increase was due to a 12.8% increase in organic net sales in the second quarter of 2023 as compared to the same prior year period, driven by a low double digit percentage increase in price realization and low single digit percentage increase in unit volumes. Net sales increased by 1.3% due to acquisitions. Volume increases were primarily driven by growth in Communications and Controls due to improved availability of semiconductors. Favorable price realization was driven by actions to offset inflation, as well as by our service levels.

Operating income in the Utility Solutions segment for the second quarter of 2023 was $199.5 million, an increase of 79.1% compared to the second quarter of 2022. Operating margin increased to 24.0% in the second quarter of 2023, as compared to 15.3% in the same period of 2022. Excluding amortization of acquisition-related intangibles, the adjusted operating margin increased to 25.6% in the second quarter of 2022 compared to 17.2% in the prior year period. The increase in operating margin was primarily driven by approximately 12 percentage points of margin expansion from favorable price realization, improved operational productivity, lower material costs, increased volumes and favorable product mix. Those increases were partially offset by four percentage points of margin headwind due to increases in non-material cost inflation and investments in capacity, innovation and productivity.

HUBBELL INCORPORATED-Form 10-Q    35

Back to Contents

ELECTRICAL SOLUTIONS

	Three Months Ended June 30,
(In millions)	2023			2022
Net sales	$	535.1		$	527.5
Operating income (GAAP measure)	88.3			79.2
Amortization of acquisition-related intangible assets	4.5			3.5
Adjusted operating income	$	92.8		$	82.7
Operating margin (GAAP measure)	16.5		%	15.0		%
Adjusted operating margin	17.3		%	15.7		%

The following table reconciles our Electrical Solutions Organic net sales to the directly comparable GAAP financial measure (in millions and percentage change):

	Three Months Ended June 30,
Electrical Solutions	2023		Inc/(Dec) %	2022		Inc/(Dec) %
Net sales growth (GAAP measure)	$	7.6	1.4	$	62.0	13.3
Impact of acquisitions	28.4		5.4	—		—
Impact of divestitures	—		—	—		—
Foreign currency exchange	(0.4)		(0.1)	(3.7)		(0.8)
Organic net sales (decline) growth (non-GAAP measure)	$	(20.4)	(3.9)	$	65.7	14.1

Net sales in the Electrical Solutions segment in the second quarter of 2023 were $535.1 million and increased by $7.6 million, or 1.4%, as compared to the second quarter of 2022. Net sales increased 5.4% due to acquisitions and was partially offset by a 3.9% decrease in organic net sales in the second quarter of 2023 as compared to the same prior year period, driven by a high single digit percentage decrease in unit volume partially offset by a mid single digit percentage increase in price realization. Markets for the Electrical Solutions segment were mixed, with weakness in residential and customer inventory management in commercial markets driving the decline in unit volume. Industrial end markets were solid and renewables and datacenter verticals were also notably strong in the quarter. Favorable price realization was driven primarily by actions to recover inflationary costs.

Operating income in the Electrical Solutions segment for the second quarter of 2023 was $88.3 million and increased approximately 11.5% compared to the second quarter of 2022, while operating margin in the second quarter of 2023 increased by 150 basis points to 16.5%. Excluding amortization of acquisition-related intangibles, adjusted operating margin increased by 160 basis points to 17.3%, as compared to the same prior year period. The increase in the adjusted operating margin in the second quarter of 2023 is primarily due to approximately nine percentage points of margin expansion from favorable price realization, lower material and freight costs and improved operational productivity. Those increases were partially offset by approximately seven percentage points of margin headwind driven by lower volumes, increases in non-material cost inflation, investments in capacity, innovation and productivity, and our SKU optimization efforts.

HUBBELL INCORPORATED-Form 10-Q    36

Back to Contents

Results of Operations – Six months ended June 30, 2023 compared to the Six months ended June 30, 2022

SUMMARY OF CONDENSED CONSOLIDATED RESULTS (IN MILLIONS, EXCEPT PER SHARE DATA): 

	Six Months Ended June 30,
	2023		% of Net sales		2022		% of Net sales
Net sales	$	2,651.3			$	2,412.1
Cost of goods sold	1,706.8		64.4	%	1,705.8		70.7	%
Gross profit	944.5		35.6	%	706.3		29.3	%
Selling & administrative ("S&A") expense	407.9		15.4	%	372.8		15.5	%
Operating income	536.6		20.2	%	333.5		13.8	%
Net income from continuing operations	391.6		14.8	%	240.9		10.0	%
Less: Net income from continuing operations attributable to non-controlling interest	(2.9)		(0.1)	%	(2.8)		(0.1)	%
Net income from continuing operations attributable to Hubbell Incorporated	388.7		14.7	%	238.1		9.9	%
Income from discontinued operations, net of tax	—				64.1
Net income attributable to Hubbell incorporated	388.7				302.2
Less: Earnings allocated to participating securities	(0.9)				(0.8)
Net income available to common shareholders	$	387.8			$	301.4
Average number of diluted shares outstanding	53.9				54.1
DILUTED EARNINGS PER SHARE - CONTINUING OPERATIONS	$	7.19			$	4.39
DILUTED EARNINGS PER SHARE - DISCONTINUED OPERATIONS	$	—			$	1.18

The following table reconciles Adjusted operating income, a non-GAAP measure, to Operating income, the directly comparable GAAP financial measure (in millions):

	Six Months Ended June 30,
	2023		% of Net sales		2022		% of Net sales
Operating income (GAAP measure)	$	536.6	20.2	%	$	333.5	13.8	%
Amortization of acquisition-related intangible assets	35.9		1.4	%	34.9		1.5	%
Adjusted operating income (non-GAAP measure)	$	572.5	21.6	%	$	368.4	15.3	%

HUBBELL INCORPORATED-Form 10-Q    37

Back to Contents

The following table reconciles Adjusted net income from continuing operations attributable to Hubbell Incorporated, Adjusted net income from continuing operations available to common shareholders, and the diluted per share amounts thereof, each a non-GAAP measure, to the directly comparable GAAP financial measures (in millions, except per share data).
	Six Months Ended June 30,
	2023		Diluted Per Share		2022		Diluted Per Share
Net income from continuing operations attributable to Hubbell Incorporated (GAAP measure)	$	388.7	$	7.21	$	238.1	$	4.40
Amortization of acquisition-related intangible assets	35.9		0.67		34.9		0.64
Pension charge	—		—		4.4		0.08
Subtotal	$	424.6	$	7.88	$	277.4	$	5.12
Income tax effects(1)	8.9		0.17		9.8		0.18
Adjusted net income from continuing operations attributable to Hubbell Incorporated (non-GAAP measure)	$	415.7	$	7.71	$	267.6	$	4.94
Less: Earnings allocated to participating securities	(1.0)		(0.02)		(0.7)		(0.01)
Adjusted net income from continuing operations available to common shareholders (non-GAAP measure)	$	414.7	$	7.69	$	266.9	$	4.93

(1) The income tax effects are calculated using the statutory tax rate, taking into consideration the nature of the item and the relevant taxing jurisdiction, unless otherwise noted.

The following table reconciles our Organic net sales to the directly comparable GAAP financial measure (in millions and percentage change):

	Six Months Ended June 30,
	2023		Inc/(Dec) %	2022		Inc/(Dec) %
Net sales growth (GAAP measure)	$	239.2	9.9	$	401.5	20.0
Impact of acquisitions	58.8		2.4	—		—
Impact of divestitures	—		—	(4.0)		(0.2)
Foreign currency exchange	(5.8)		(0.2)	(3.5)		(0.1)
Organic net sales growth (non-GAAP measure)	$	186.2	7.7	$	409.0	20.3

Net Sales

Net sales of $2,651.3 million in the first six months of 2023 increased by $239.2 million compared to the same period of 2022. Organic net sales increased by 7.7% which was composed of a high single digit percentage increase in price realization partially offset by a low single digit percentage decrease in volumes. Acquisitions contributed 2.4% to sales growth, partially offset by 0.2% of headwind from foreign exchange. The primary drivers of these changes are discussed in more detail in the Segment Results section below.

Cost of Goods Sold and Gross Profit

As a percentage of Net sales, cost of goods sold decreased by 630 basis points to 64.4% in the first six months of 2023, as compared to 70.7% in the first six months of 2022, resulting in a related 630 basis point increase in Gross profit margin in the first six months of 2023 to 35.6% as compared to 29.3% in the first six months of 2022. The increase in the Gross profit margin primarily reflects approximately ten percentage points of margin expansion driven by favorable price realization, improved operational productivity and modestly lower material costs. Operational productivity was driven by improving supply chain conditions and reduced rates of absenteeism as compared to the prior year period. Those increases were offset by approximately three percentage points of margin headwind driven by continued non-material cost inflation as well as increased investments in capacity, innovation and productivity.

HUBBELL INCORPORATED-Form 10-Q    38

Back to Contents

Selling & Administrative Expenses

S&A expense in the first six months of 2023 was $407.9 million and increased by $35.1 million compared to the prior year period. Approximately half of this increase was driven by labor and other cost inflation, while the remainder of the increase was primarily driven by added S&A costs from acquisitions, higher travel and entertainment costs, as well as increased investments in the business. S&A expense in the first six months of 2023 as a percentage of Net sales decreased to 15.4% by 10 basis points from 15.5% in the first six months of 2022.

Total Other Expense

Total other expense increased by $3.7 million in the first six months of 2023 to $27.8 million, primarily due to a reduction of $7.6 million of income related to the C&I Lighting business disposition in 2022 that did not recur in 2023 and higher non-service pension cost recognized in the first six months of 2023 as compared to the same period of the prior year. Those items were partially offset by a pension settlement charge of $4.4 million recorded in the second quarter of 2022 that did not recur in 2023, and lower net interest expense recorded in the first six months of 2023 compared to the same period of 2022.

Income Taxes

The effective tax rate in the first six months of 2023 increased to 23.0% as compared to 22.2% in the first six months of 2022, primarily due to increased income in higher taxed jurisdictions, partially offset by a higher stock based compensation tax benefit.

Net Income From Continuing Operations Attributable to Hubbell Incorporated and Earnings Per Diluted Share From Continuing Operations

Net income from continuing operations attributable to Hubbell Incorporated was $388.7 million in the first six months of 2023 and increased 63.3% as compared to the same period of the prior year, reflecting the factors described above. As a result, earnings per diluted share from continuing operations in the first six months of 2023 increased 63.8% as compared to the first six months of 2022. Adjusted net income from continuing operations attributable to Hubbell Incorporated, which excludes amortization of acquisition-related intangibles from both periods, and a $4.4 million pension settlement charge recognized in the second quarter of 2023, was $414.7 million in first six months of 2023 and increased by 55.3% as compared to the same period of 2022.

Income From Discontinued Operations, Net of Tax

Income from discontinued operations, was $64.1 million net of tax in the first six months of 2022 and included a pre-tax gain on disposal of $80.7 million, partially offset by $6.7 million of pre-tax transaction and separation costs. There was no income or loss from discontinued operations in 2023.

HUBBELL INCORPORATED-Form 10-Q    39

Back to Contents

Segment Results

UTILITY SOLUTIONS

	Six Months Ended June 30,
(In millions)	2023			2022
Net sales	$	1,612.4		$	1,380.3
Operating income (GAAP measure)	377.0			199.5
Amortization of acquisition-related intangible assets	26.9			27.9
Adjusted operating income	$	403.9		$	227.4
Operating margin (GAAP measure)	23.4		%	14.5		%
Adjusted operating margin	25.0		%	16.5		%

The following table reconciles our Utility Solutions Organic net sales to the directly comparable GAAP financial measure (in millions and percentage change):

	Six Months Ended June 30,
Utility Solutions	2023		Inc/(Dec) %	2022		Inc/(Dec) %
Net sales growth (GAAP measure)	$	232.1	16.8	$	259.3	23.1
Impact of acquisitions	15.3		1.1	—		—
Impact of divestitures	—		—	(4.0)		(0.4)
Foreign currency exchange	(2.4)		(0.2)	1.0		0.1
Organic net sales growth (non-GAAP measure)	$	219.2	15.9	$	262.3	23.4

Net sales in the Utility Solutions segment in the first six months of 2023 were $1.6 billion, an increase of $232.1 million, or 16.8%, as compared to the first six months of 2022. This increase was due to a 15.9% increase in Organic net sales in the first six months of 2023 as compared to the same prior year period, driven by a low double digit percentage increase in price realization and mid single digit percentage increase in unit volumes. Net sales increased by 1.1% due to acquisitions, and decreased 0.2% due to foreign exchange. Volume increases were primarily driven by strong demand in Utility T&D Components as utility customers continued to actively invest to upgrade aging infrastructure and modernize the grid and growth in Communications and Controls due to improved availability of semiconductors. Favorable price realization was driven by actions to offset inflation, as well as by our service levels.

Operating income in the Utility Solutions segment for the first six months of 2023 was $377.0 million, an increase of 89.0% compared to the first six months of 2022. Operating margin increased to 23.4% as compared to 14.5% in the same period of 2022. Excluding amortization of acquisition-related intangibles, the adjusted operating margin increased to 25.0% in the first six months of 2023 compared to 16.5% in the prior year period. The increase in operating margin was primarily driven by approximately 12 percentage points of margin expansion from favorable price realization, increased volumes, improved operational productivity and lower material costs. Those increases were partially offset by three percentage points of margin headwind due to increases in non-material cost inflation and investments in capacity, innovation and productivity.

HUBBELL INCORPORATED-Form 10-Q    40

Back to Contents

ELECTRICAL SOLUTIONS

	Six Months Ended June 30,
(In millions)	2023			2022
Net sales	$	1,038.9		$	1,031.8
Operating income (GAAP measure)	159.6			134.0
Amortization of acquisition-related intangible assets	9.0			7.0
Adjusted operating income	$	168.6		$	141.0
Operating margin (GAAP measure)	15.4		%	13.0		%
Adjusted operating margin	16.2		%	13.7		%

The following table reconciles our Electrical Solutions Organic net sales to the directly comparable GAAP financial measure (in millions and percentage change):

	Six Months Ended June 30,
Electrical Solutions	2023		Inc/(Dec) %	2022		Inc/(Dec) %
Net sales growth (GAAP measure)	$	7.1	0.7	$	142.2	16.0
Impact of acquisitions	43.5		4.2	—		—
Impact of divestitures	—		—	—		—
Foreign currency exchange	(3.4)		(0.3)	(4.5)		(0.5)
Organic net sales (decline) growth (non-GAAP measure)	$	(33.0)	(3.2)	$	146.7	16.5

Net sales in the Electrical Solutions segment in the first six months of 2023 were $1.0 billion and increased by $7.1 million, or 0.7%, as compared to the first six months of 2022. The increase was due to a 4.2% increase in sales due to acquisitions, partially offset by a 3.2% decrease in Organic net sales in the first six months of 2023 as compared to the same prior year period, driven by a high single digit percentage decrease in unit volume partially offset by a mid single digit percentage increase in price realization. Net sales decreased by 0.3% due to foreign exchange. Markets for the Electrical Solutions segment were mixed, with weakness in residential and customer inventory management in commercial markets driving the decline in unit volume. Industrial end markets were solid and renewables and datacenter verticals were also notably strong in the first six months of 2023. Favorable price realization was driven primarily by actions to recover inflationary costs.

Operating income in the Electrical Solutions segment for the first six months of 2023 was $159.6 million and increased approximately 19.1% compared to the first six months of 2022, while operating margin in the first six months of 2023 increased by 240 basis points to 15.4%. Excluding amortization of acquisition-related intangibles, adjusted operating margin increased by 250 basis points to 16.2%, as compared to the same prior year period. The increase in the adjusted operating margin in the first six months of 2023 is primarily due to approximately nine percentage points of margin expansion from favorable price realization, lower material and freight costs and improved operational productivity. Those increases were partially offset by approximately six percentage points of margin headwind driven by lower volumes, increases in non-material cost inflation and investments in capacity, innovation and productivity.

HUBBELL INCORPORATED-Form 10-Q    41

Back to Contents

Financial Condition, Liquidity and Capital Resources

Cash Flow

	Six months ended June 30,
(In millions)	2023		2022
Net cash provided by (used in):
Operating activities from continuing operations	$	341.4	$	174.2
Investing activities from continuing operations	(128.2)		293.8
Financing activities from continuing operations	(165.9)		(278.2)
Cash from discontinued operations	—		(46.4)
Effect of foreign currency exchange rate changes on cash and cash equivalents	5.1		(6.0)
NET CHANGE IN CASH AND CASH EQUIVALENTS	$	52.4	$	137.4

Cash provided by operating activities from continuing operations for the six months ended June 30, 2023 was $341.4 million compared to cash provided by operating activities from continuing operations of $174.2 million for the same period in 2022. The increase was primarily due to higher net income during the first six months of 2023 compared to the same period in 2022.

Cash used by investing activities from continuing operations was $128.2 million in the six months ended June 30, 2023 compared to cash provided of $293.8 million during the comparable period in 2022. This change was driven by $348.6 million in net proceeds from the disposal of the C&I Lighting business in 2022, partially offset by the $60.0 million acquisition of EIG and a $27.0 million increase in capital expenditures in the first six months of 2023, as we increased capital investments to expand capacity, optimize footprint, implement automation and productivity initiatives.

Cash used in financing activities from continuing operations was $165.9 million in the six months ended June 30, 2023 as compared to cash used of $278.2 million in the comparable period of 2022. This change primarily reflects a decrease of $130.0 million from the Company's share repurchases in the first six months of 2023 compared to the same prior year period.

We had no cash from discontinued operations in the six months ended June 30, 2023 as compared to cash used in discontinued operations of $46.4 million in the comparable period of 2022.

The favorable impact of foreign currency exchange rates on cash was $5.1 million for the six months ended June 30, 2023 and is primarily related to strengthening of the Mexican Peso, British Pound, and Canadian Dollar versus the U.S. Dollar.

Investments in the Business

Investments in our business include cash outlays for the acquisition of businesses, to invest in capacity and innovation, as well as for expenditures on productivity initiatives and to maintain the operation of our equipment and facilities and invest in restructuring activities.

In May 2023, the Company acquired all of the issued and outstanding membership interests of EIG for a cash purchase price of approximately $60 million, net of cash acquired, subject to customary purchase price adjustments. EIG offers fully integrated energy management and power quality monitoring solutions for the electric utility and commercial and industrial markets. This business is reported in the Utility Solutions segment.

During the first six months of 2023, we invested $68.9 million in capital expenditures, an increase of $27.0 million from the comparable period of 2022 as we continue to invest in capacity expansion, footprint optimization, and automation and productivity initiatives.

We continue to invest in restructuring and related programs to maintain a competitive cost structure, to drive operational efficiencies and to mitigate the impact of rising material costs and administrative cost inflation. We expect our investment in restructuring and related activities to continue in 2023 as we continue to invest in previously initiated actions and initiate further footprint consolidation and other cost reduction initiatives.

HUBBELL INCORPORATED-Form 10-Q    42

Back to Contents

In connection with our restructuring and related actions, we have incurred restructuring costs as defined by U.S. GAAP, which are primarily 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. We also incurred restructuring-related costs, which are costs associated with our business transformation initiatives, including the consolidation of back-office functions and streamlining of our processes, and certain other costs and gains associated with restructuring actions. We refer to these costs on a combined basis as "restructuring and related costs", which is a non-GAAP measure. We believe this non-GAAP measure provides investors with useful information regarding our underlying performance from period to period. Restructuring 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.

The table below presents the restructuring and related costs incurred in the first six months of 2023, additional expected costs, and the expected completion date of restructuring actions that have been initiated as of June 30, 2023 and in prior years (in millions):

	Costs incurred in the six months ended June 30, 2023		Additional expected costs		Expected completion date
2023 Restructuring Actions	$	0.2	$	—
2022 and Prior Restructuring Actions	2.1		4.2		2024
Total Restructuring cost (GAAP measure)	$	2.3	$	4.2
Restructuring-related costs	3.8		0.6
Restructuring and related costs (Non-GAAP)	$	6.1	$	4.8

Stock Repurchase Program

On October 23, 2020, the Board of Directors approved a stock repurchase program that authorized the repurchase of up to $300 million of common stock and expires in October 2023 (the "October 2020 program"). In the first six months of 2023, the Company repurchased $20.0 million of shares of common stock authorized under the October 2020 program. At June 30, 2023, our remaining share repurchase authorization under the October 2020 program is $86.7 million. On October 21, 2022 the Board of Directors approved a new stock repurchase program that authorized the repurchase of up to $300 million of common stock and expires in October 2025. There have been no repurchases under the October 2022 program. When combined with the $86.7 million of remaining share repurchase authorization under the October 2020 program, we have a total share repurchase authorization of approximately $386.7 million. Subject to numerous factors, including market conditions and alternative uses of cash, we may conduct discretionary repurchases through open market or privately negotiated transactions, which may include repurchases under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.

Debt to Capital

At June 30, 2023 and December 31, 2022, the Company had $1,439.1 million and $1,437.9 million, respectively, of long-term debt outstanding, net of the unamortized balance of capitalized debt issuance costs.

Revolving Credit Facility

On March 12, 2021, the Company, as borrower, and its subsidiaries Hubbell Power Holdings S.à r.l. and Harvey Hubbell Holdings S.à r.l., each as a subsidiary borrower (collectively, the “Subsidiary Borrowers”) entered into a new five-year credit agreement with a syndicate of lenders and JPMorgan Chase Bank, N.A., as administrative agent, that provides a $750 million committed revolving credit facility (the “2021 Credit Facility"). Commitments under the 2021 Credit Facility may be increased to an aggregate amount not to exceed $1.25 billion. The 2021 Credit Facility includes a $50 million sub-limit for the issuance of letters of credit. The sum of the dollar amount of loans and letters of credits to the Subsidiary Borrowers under the 2021 Credit Facility may not exceed $75 million. There were no borrowings outstanding under the 2021 Credit Facility at June 30, 2023.

The interest rate applicable to borrowings under the 2021 Credit Facility is (i) either the alternate base rate (as defined in the 2021 Credit Facility) or (ii) the adjusted SOFR rate (as defined in the 2021 Credit Facility) plus an applicable margin based on the Company’s credit ratings. All revolving loans outstanding under the 2021 Credit Facility will be due and payable on March 12, 2026.

The 2021 Credit Facility contains a financial covenant requiring that, as of the last day of each fiscal quarter, the ratio of total indebtedness to total capitalization shall not be greater than 65%. The Company was in compliance with this covenant as of June 30, 2023. As of June 30, 2023, the 2021 Credit Facility was undrawn.

HUBBELL INCORPORATED-Form 10-Q    43

Back to Contents

Unsecured Senior Notes

At both June 30, 2023 and December 31, 2022, the Company had outstanding unsecured, senior notes (the "Notes") in principal amounts of $400 million due in 2026, $300 million due in 2027, $450 million due in 2028 and $300 million due in 2031.

The carrying value of the Notes, net of unamortized discount and the unamortized balance of capitalized debt issuance costs, was $1,439.1 million and $1,437.9 million at June 30, 2023 and December 31, 2022, respectively.

The Notes are callable at any time at specified prices and are only subject to accelerated payment prior to maturity upon customary events of default, or upon a change in control triggering event as defined in the indenture governing the Notes, as supplemented. The Company was in compliance with all covenants (none of which are financial) as of June 30, 2023.

Short-term Debt

The Company had $1.8 million and $4.7 million of short-term debt outstanding at June 30, 2023 and December 31, 2022, respectively, which consisted of borrowings to support our international operations in China and amounts outstanding under our Commercial Card Program.

Net debt, defined as total debt less cash and investments, is a non-GAAP measure that may not be comparable to definitions used by other companies. We consider net debt to be a useful measure of our financial leverage for evaluating the Company’s ability to meet its funding needs.

(In millions)	June 30, 2023			December 31, 2022
Total Debt	$	1,440.9		$	1,442.6
Hubbell Incorporated Shareholders’ Equity	2,620.7			2,360.9
TOTAL CAPITAL	$	4,061.6		$	3,803.5
Total Debt to Total Capital	35		%	38		%
Cash and Investments	578.4			520.7
Net Debt	$	862.5		$	921.9
Net Debt to Total Capital	21		%	24		%

Liquidity

We measure liquidity on the basis of our ability to meet short-term and long-term operational funding needs, to fund additional investments in our business, including acquisitions, and to make dividend payments to shareholders. Significant factors affecting the management of liquidity are cash flows from operating activities, capital expenditures, cash dividend payments, stock repurchases, access to bank lines of credit and our ability to attract long-term capital with satisfactory terms. In the first six months of 2023, we returned capital to our shareholders by paying $120.1 million of dividends on our common stock and using $20.0 million of cash for share repurchases.

We also require cash outlays to fund our operations, capital expenditures, and working capital requirements to accommodate anticipated levels of business activity, as well as our rate of cash dividends, and potential future acquisitions. We have contractual obligations for long-term debt, operating leases, purchase obligations, and certain other long-term liabilities that are summarized in the Financial Condition, Liquidity and Capital Resources section in our Annual Report on Form 10-K for the year ended December 31, 2022. As a result of the Tax Cuts and Jobs Act of 2017 (the "TCJA"), we also have an obligation to fund, by annual installments through 2025, the Company's liability for the transition tax on the deemed repatriation of foreign earnings.

HUBBELL INCORPORATED-Form 10-Q    44

Back to Contents

Our sources of funds and available resources to meet these funding needs are as follows:

◦Cash flows from operating activities and existing cash resources: In addition to cash flows from operating activities, we also had $492.6 million of cash and cash equivalents at June 30, 2023, of which approximately 29% was held inside the United States and the remainder held internationally.

◦Our 2021 Credit Facility provides a $750.0 million committed revolving credit facility and commitments under the 2021 Credit Facility may be increased (subject to certain conditions) to an aggregate amount not to exceed $1.250 billion. Annual commitment fees to support availability under the 2021 Credit Facility are not material. Although not the principal source of liquidity, we believe our 2021 Credit Facility is capable of providing significant financing flexibility at reasonable rates of interest and is an attractive alternative source of funding in the event that commercial paper markets experience disruption. However, an increase in usage of the 2021 Credit Facility related to growth or a significant deterioration in the results of our operations or cash flows could cause our borrowing costs to increase and/or our ability to borrow could be restricted. We have not entered into any guarantees that could give rise to material unexpected cash requirements. The full $750.0 million of borrowing capacity under the 2021 Credit Facility was available to the Company at June 30, 2023.

◦In addition to our commercial paper program and existing revolving credit facility, we also have the ability to obtain additional financing through the issuance of long-term debt. Considering our current credit rating, historical earnings performance, and financial position, we believe that we would be able to obtain additional long-term debt financing on attractive terms.

Critical Accounting Estimates

A summary of our critical accounting estimates is included in Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in our Annual Report on Form 10-K for the year ended December 31, 2022. We are required to make estimates and judgments in the preparation of our financial statements that affect the reported amounts of assets and liabilities, revenues and expenses and related disclosures. We continually review these estimates and their underlying assumptions to ensure they are appropriate for the circumstances. Changes in the estimates and assumptions we use could have a material impact on our financial results. During the six months ended June 30, 2023, there were no material changes in our estimates and critical accounting policies.

HUBBELL INCORPORATED-Form 10-Q    45

Back to Contents

Forward-Looking Statements

Some of the information included in this Management’s Discussion and Analysis of Financial Condition and Results of Operations, and elsewhere in this Form 10-Q, contain “forward-looking statements” as defined by the Private Securities Litigation Reform Act of 1995. These include statements about our expectations regarding our financial results, condition and outlook, anticipated end markets, expected capital resources, liquidity, financial performance, pension funding, and results of operations and are based on our reasonable current expectations. In addition, all statements regarding the expected financial impact of the integration of acquisitions and completion of certain divestitures, as well as other statements that are not strictly historic in nature are forward looking. In addition, all statements regarding anticipated growth, changes in operating results, market conditions and economic conditions, adoption of updated accounting standards and any expected effects of such adoption, restructuring plans and expected associated costs and benefits, intent to continue repurchasing shares of common stock, and changes in operating results, anticipated market conditions and productivity initiatives, are also forward looking. Forward-looking statements may be identified by the use of words, such as “believe”, “expect”, “anticipate”, “intend”, “depend”, “should”, “plan”, “estimated”, “predict”, “could”, “may”, “subject to”, “continues”, “growing”, “prospective”, “forecast”, “projected”, “purport”, “might”, “if”, “contemplate”, “potential”, “pending,” “target”, “goals”, “scheduled”, “will" "will likely be”, and similar words and phrases. Discussions of strategies, plans or intentions often contain forward-looking statements. Important factors, among others, that could cause our actual results and future actions to differ materially from those described in forward-looking statements include, but are not limited to:

•The general impact of inflation on our business, including the impact on raw material costs, elevated interest rates and increased energy costs and our ability to implement and maintain pricing actions that we have taken to cover higher costs and protect our margin profile.

•Economic and business conditions in particular industries, markets or geographic regions, as well the potential for continued inflation, a significant economic slowdown, stagflation or recession.

•Changes in demand for our products, market conditions, product quality, or product availability adversely affecting sales levels.

•Ability to effectively develop and introduce new products.

•Changes in markets or competition adversely affecting realization of price increases.

•Continued softness in the residential market.

•Failure to achieve projected levels of efficiencies, and maintain cost savings and cost reduction measures, including those expected as a result of our lean initiatives and strategic sourcing plans.

•Impacts of trade tariffs, import quotas or other trade restrictions or measures taken by the U.S., U.K. and other countries, including the recent and potential changes in U.S. trade policies.

•Failure to comply with import and export laws.

•Changes relating to impairment of our goodwill and other intangible assets.

•Inability to access capital markets or failure to maintain our credit ratings.

•Changes in expected or future levels of operating cash flow, indebtedness and capital spending.

•Regulatory issues, changes in tax laws, including multijurisdictional implementation of the Organisation for Economic Co-operation and Development's comprehensive base erosion and profit shifting plan, or changes in geographic profit mix affecting tax rates and availability of tax incentives.

•A major disruption in one or more of our manufacturing or distribution facilities or headquarters, including the impact of plant consolidations and relocations.

•Changes in our relationships with, or the financial condition or performance of, key distributors and other customers, agents or business partners which could adversely affect our results of operations.

•Impact of productivity improvements on lead times, quality and delivery of product.

•Anticipated future contributions and assumptions including increases in interest rates and changes in plan assets with respect to pensions and other retirement benefits, as well as pension withdrawal liabilities.

•Adjustments to product warranty accruals in response to claims incurred, historical experiences and known costs.

•Unexpected costs or charges, certain of which might be outside of our control.

•Changes in strategy due to economic conditions or other conditions outside of our control affecting anticipated future global product sourcing levels.

•Ability to carry out future acquisitions and strategic investments in our core businesses as well as the acquisition related costs.

•Ability to successfully manage and integrate key acquisitions, mergers, and other transactions, such as the recent acquisitions of PCX Holding LLC, Ripley Tools, LLC, Nooks Hill Road, LLC, REF Automation Limited, REF Alabama Inc., and El Electronics LLC, as well as the failure to realize expected synergies and benefits anticipated when we make an acquisition.

•The impact of certain divestitures, including the benefits and costs of the sale of the C&I Lighting business to GE Current, a Daintree Company.

•The ability to effectively implement Enterprise Resource Planning systems without disrupting operational and financial processes.

•The ability of government customers to meet their financial obligations.

•Political unrest and military actions in foreign countries, particularly the armed conflict in Ukraine and trade tensions with China, as well as the impact on world markets and energy supplies resulting therefrom.

HUBBELL INCORPORATED-Form 10-Q    46

Back to Contents

•The impact of world economic and political issues, including the long-term effects of Brexit.

•The impact of potential natural disasters or additional public health emergencies on our financial condition and results of operations.

•Failure of information technology systems, security breaches, cyber threats, malware, phishing attacks, break-ins and similar events resulting in unauthorized disclosure of confidential information or disruptions or damage to information technology systems that could cause interruptions to our operations or adversely affect our internal control over financial reporting.

•Incurring significant and/or unexpected costs to avoid, manage, defend and litigate intellectual property matters.

•Future repurchases of common stock under our common stock repurchase program.

•Changes in accounting principles, interpretations, or estimates.

•Failure to comply with any laws and regulations, including those related to data privacy and information security, environmental and conflict-free minerals.

•The outcome of environmental, legal and tax contingencies or costs compared to amounts provided for such contingencies, including contingencies or costs with respect to pension withdrawal liabilities.

•Improper conduct by any of our employees, agents or business partners that damages our reputation or subjects us to civil or criminal liability.

•Our ability to hire, retain and develop qualified personnel.

•Adverse changes in foreign currency exchange rates and the potential use of hedging instruments to hedge the exposure to fluctuating rates of foreign currency exchange on inventory purchases.

•Other factors described in our Securities and Exchange Commission filings, including the “Business”, “Risk Factors,” "Management's Discussion and Analysis of Financial Condition and Results of Operations," and “Quantitative and Qualitative Disclosures about Market Risk” sections in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022 and in the Company's Quarterly Reports on Form 10-Q.

Any such forward-looking statements are not guarantees of future performances and actual results, developments and business decisions may differ from those contemplated by such forward-looking statements. The Company disclaims any duty to update any forward-looking statement, all of which are expressly qualified by the foregoing, other than as required by law.

ITEM 3 Quantitative and Qualitative Disclosures About Market Risk

In the operation of its business, the Company has exposures to fluctuating foreign currency exchange rates, availability of purchased finished goods and raw materials, changes in material prices, foreign sourcing issues, and changes in interest rates. There have been no significant changes in our exposure to these market risks during the six months ended June 30, 2023. For a complete discussion of the Company’s exposure to market risk, refer to Item 7A, “Quantitative and Qualitative Disclosures about Market Risk”, contained in the Company’s Annual Report on Form 10-K for the year ended December 31, 2022.

HUBBELL INCORPORATED-Form 10-Q    47

Back to Contents

ITEM 4 Controls and Procedures

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), is recorded, processed, summarized and reported within the time periods specified and that such information is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. There are inherent limitations to the effectiveness of any system of disclosure controls and procedures. Accordingly, even effective disclosure controls and procedures can only provide reasonable assurance of achieving their control objectives.

Our management carried out an evaluation, with the participation of our Chief Executive Officer and Chief Financial Officer, of the effectiveness of the Company’s disclosure controls and procedures as defined in Exchange Act Rules 13a-15(e) and 15d-15(e), as of the end of the period covered by this Quarterly Report on Form 10-Q. Based upon that evaluation, each of the Chief Executive Officer and Chief Financial Officer concluded that, as of June 30, 2023, the Company’s disclosure controls and procedures were effective at the reasonable assurance level.

There have been no changes in the Company’s internal control over financial reporting that occurred during the Company’s most recently completed quarter that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

HUBBELL INCORPORATED-Form 10-Q    48

Back to Contents

PART II OTHER INFORMATION

ITEM 1A Risk Factors

There have been no material changes in the Company's risk factors from those disclosed under the heading "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2022.

HUBBELL INCORPORATED-Form 10-Q    49

Back to Contents

ITEM 2 Unregistered Sales of Equity Securities and Use of Proceeds

Issuer Purchases of Equity Securities

On October 23, 2020, the Board of Directors approved a stock repurchase program (the "2020 program") that authorized the repurchase of up to $300 million of common stock, which expires in October 2023. As of June 30, 2023 our remaining share repurchase authorization under the 2020 program was $86.7 million. On October 21, 2022, the Board of Directors approved a new stock repurchase program (the "October 2022 program") that authorized the repurchase of up to $300 million of common stock, which expires in October 2025. There have been no repurchases under the October 2022 program. When combined with the $86.7 million of remaining share repurchase authorization under the 2020 program, we have a total share repurchase authorization of approximately $386.7 million. Subject to numerous factors, including market conditions and alternative uses of cash, we may conduct discretionary repurchases through open market or privately negotiated transactions, which may include repurchases under plans complying with Rules 10b5-1 and 10b-18 under the Securities Exchange Act of 1934, as amended.

There were no share repurchases during the quarter ended June 30, 2023.

HUBBELL INCORPORATED-Form 10-Q    50

Back to Contents

ITEM 5 Other Information

During the three months ended June 30, 2023, no director or officer of the Company adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

HUBBELL INCORPORATED-Form 10-Q    51

Back to Contents

ITEM 6 Exhibits

		Incorporated by Reference
Exhibit Number	Exhibit Description	Form	File No.	Exhibit	Filing Date	Filed/ Furnished Herewith
31.1	Certification of Chief Executive Officer Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002					*
31.2	Certification of Chief Financial Officer Pursuant to Item 601(b)(31) of Regulation S-K, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002					*
32.1	Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					**
32.2	Certification of Chief Financial Officer Pursuant to 18 U.S.C Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002					**
101	The following materials from Hubbell Incorporated's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 formatted in Inline Extensible Business Reporting Language (iXBRL): (i) the Condensed Consolidated Statements of Income, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, and (v) Notes to the Condensed Consolidated Financial Statements.					*
104	The cover page of this Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in Inline XBRL (included within the Exhibit 101 attachments)					*

*	Filed herewith
**	Furnished herewith

HUBBELL INCORPORATED-Form 10-Q    52

Back to Contents

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

Date: July 26, 2023

HUBBELL INCORPORATED
By	/s/ William R. Sperry	By	/s/ Jonathan M. Del Nero
	William R. Sperry		Jonathan M. Del Nero
	Executive Vice President and Chief Financial Officer		Vice President, Controller (Principal Accounting Officer)

HUBBELL INCORPORATED-Form 10-Q    53

EX-31.1

EXHIBIT 31.1

I, Gerben W. Bakker, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Hubbell Incorporated (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ Gerben W. Bakker
	Gerben W. Bakker
	Chairman of the Board, President and Chief Executive Officer
Date:	July 26, 2023

HUBBELL INCORPORATED-Form 10-Q

EX-31.2

EXHIBIT 31.2

I, William R. Sperry, certify that:

1.I have reviewed this quarterly report on Form 10-Q of Hubbell Incorporated (the “registrant”);

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

	/s/ William R. Sperry
	William R. Sperry
	Executive Vice President and Chief Financial Officer
Date:	July 26, 2023

HUBBELL INCORPORATED-Form 10-Q

EX-32.1

EXHIBIT 32.1 Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hubbell Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Gerben W. Bakker, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Gerben W. Bakker

Gerben W. Bakker

Chairman of the Board, President and Chief Executive Officer

July 26, 2023

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

HUBBELL INCORPORATED-Form 10-Q

EX-32.2

EXHIBIT 32.2 Certification Pursuant to 18 U.S.C Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

In connection with the Quarterly Report of Hubbell Incorporated (the “Company”) on Form 10-Q for the period ended June 30, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, William R. Sperry, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d), as applicable, of the Securities Exchange Act of 1934, as amended; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William R. Sperry

William R. Sperry

Executive Vice President and Chief Financial Officer

July 26, 2023

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

HUBBELL INCORPORATED-Form 10-Q

XML

Cover - shares	6 Months Ended
	Jun. 30, 2023	Jul. 19, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2023
Document Transition Report	false
Entity File Number	1-2958
Entity Registrant Name	HUBBELL INC
Entity Incorporation, State or Country Code	CT
Entity Tax Identification Number	06-0397030
Entity Address, Address Line One	40 Waterview Drive
Entity Address, City or Town	Shelton,
Entity Address, State or Province	CT
Entity Address, Postal Zip Code	06484
City Area Code	(475)
Local Phone Number	882-4000
Title of 12(b) Security	Common Stock - par value $0.01 per share
Trading Symbol	HUBB
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		53,631,016
Amendment Flag	false
Entity Central Index Key	0000048898
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q2

XML

Condensed Consolidated Statements of Income (unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement [Abstract]
Net sales	$ 1,365.9	$ 1,256.0	$ 2,651.3	$ 2,412.1
Cost of goods sold	869.7	872.8	1,706.8	1,705.8
Gross profit	496.2	383.2	944.5	706.3
Selling & administrative expenses	208.4	192.6	407.9	372.8
Operating income	287.8	190.6	536.6	333.5
Interest expense, net	(9.2)	(12.7)	(18.9)	(25.8)
Pension charge (Note 13)	0.0	(4.4)	0.0	(4.4)
Other (expense) income, net	(4.8)	2.5	(8.9)	6.1
Total other expense	(14.0)	(14.6)	(27.8)	(24.1)
Income from continuing operations before income taxes	273.8	176.0	508.8	309.4
Provision for income taxes	65.6	38.9	117.2	68.5
Net income from continuing operations	208.2	137.1	391.6	240.9
Less: Net income from continuing operations attributable to noncontrolling interest	(1.4)	(1.5)	(2.9)	(2.8)
Net income from continuing operations attributable to Hubbell Incorporated	206.8	135.6	388.7	238.1
(Loss) Income from discontinued operations, net of tax (Note 2)	0.0	(13.6)	0.0	64.1
Net Income attributable to Hubbell Incorporated	$ 206.8	$ 122.0	$ 388.7	$ 302.2
Earnings per share:
Basic earnings per share from continuing operations (USD per share)	$ 3.85	$ 2.52	$ 7.24	$ 4.41
Basic earnings per share from discontinued operations (USD per share)	0	(0.25)	0	1.19
Basic earnings per share (USD per share)	3.85	2.27	7.24	5.60
Diluted earnings per share from continuing operations (USD per share)	3.82	2.51	7.19	4.39
Diluted earnings per share from discontinued operations (USD per share)	0	(0.25)	0	1.18
Diluted earnings per share (USD per share)	3.82	2.26	7.19	5.57
Cash dividends per common share (USD per share)	$ 1.12	$ 1.05	$ 2.24	$ 2.10

XML

Condensed Consolidated Statements of Comprehensive Income (unaudited) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 208.2	$ 123.5	$ 391.6	$ 305.0
Currency translation adjustments:
Foreign currency translation adjustments	5.4	(29.7)	13.3	(25.1)
Reclassification of currency translation losses included in net income	0.0	0.0	0.0	0.5
Defined benefit pension and post-retirement plans, net of taxes	2.0	3.4	3.4	5.5
Unrealized gain (loss) on investments, net of taxes	(0.3)	0.0	0.0	(1.2)
Unrealized gain (loss) on cash flow hedges, net of taxes	(0.6)	0.5	(0.9)	(0.1)
Other comprehensive income (loss)	6.5	(25.8)	15.8	(20.4)
Comprehensive income	214.7	97.7	407.4	284.6
Less: Comprehensive income attributable to noncontrolling interest	1.4	1.5	2.9	2.8
Comprehensive income attributable to Hubbell Incorporated	$ 213.3	$ 96.2	$ 404.5	$ 281.8

XML

Condensed Consolidated Statements of Comprehensive Income (unaudited) (Parenthetical) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Defined benefit pension and post-retirement plans, tax	$ (0.6)	$ (1.3)	$ (1.8)	$ (1.8)
Available-for-sale investments, tax	0.1	0.0	0.0	0.4
Unrealized gain (loss) on cash flow hedges, tax	$ 0.2	$ (0.2)	$ 0.3	$ 0.0

XML

Condensed Consolidated Balance Sheets (unaudited) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Current Assets
Cash and cash equivalents	$ 492.6	$ 440.5
Short-term investments	16.2	14.3
Accounts receivable (net of allowances of $13.6 and $14.3)	811.2	741.6
Inventories, net	794.1	740.7
Other current assets	91.7	84.3
Total Current Assets	2,205.8	2,021.4
Property, Plant, and Equipment, net	557.5	528.0
Other Assets
Investments	69.6	65.9
Goodwill	1,998.8	1,970.5
Other intangible assets, net	664.4	669.9
Other long-term assets	144.8	146.9
TOTAL ASSETS	5,640.9	5,402.6
Current Liabilities
Short-term debt	1.8	4.7
Accounts payable	554.8	529.9
Accrued salaries, wages and employee benefits	117.2	144.2
Accrued insurance	78.9	75.6
Other accrued liabilities	317.1	334.1
Total Current Liabilities	1,069.8	1,088.5
Long-Term Debt	1,439.1	1,437.9
Other Non-Current Liabilities	500.9	505.6
TOTAL LIABILITIES	3,009.8	3,032.0
Hubbell Incorporated Shareholders’ Equity	2,620.7	2,360.9
Noncontrolling interest	10.4	9.7
TOTAL EQUITY	2,631.1	2,370.6
TOTAL LIABILITIES AND EQUITY	$ 5,640.9	$ 5,402.6

XML

Condensed Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowances	$ (13.6)	$ (14.3)

XML

Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Cash Flows from Operating Activities of Continuing Operations
Net income from continuing operations	$ 391.6	$ 240.9
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	72.5	69.4
Deferred income taxes	(5.2)	(38.4)
Stock-based compensation	16.1	16.7
Provision for bad debt expense	0.1	4.4
Pension charge	0.0	4.4
Loss on sale of assets	0.6	1.2
Changes in assets and liabilities, excluding effects of acquisitions:
Increase in accounts receivable, net	(60.4)	(107.4)
Increase in inventories, net	(45.2)	(61.0)
Increase in accounts payable	26.5	22.0
(Decrease) increase in current liabilities	(50.2)	25.3
Changes in other assets and liabilities, net	(3.3)	(1.9)
Contribution to qualified defined benefit pension plans	0.0	(2.5)
Other, net	(1.7)	1.1
Net cash provided by operating activities from Continuing Operations	341.4	174.2
Cash Flows from Investing Activities of Continuing Operations
Capital expenditures	(68.9)	(41.9)
Acquisitions, net of cash acquired	(60.0)	0.0
Proceeds from disposal of business, net of cash	0.0	348.6
Purchases of available-for-sale investments	(9.1)	(23.8)
Proceeds from available-for-sale investments	10.4	9.8
Other, net	(0.6)	1.1
Net cash (used in) provided by investing activities from Continuing Operations	(128.2)	293.8
Cash Flows from Financing Activities of Continuing Operations
Payments of short-term debt, net	(2.8)	(3.8)
Payment of dividends	(120.1)	(113.3)
Acquisition of common shares	(20.0)	(150.0)
Other, net	(23.0)	(11.1)
Net cash used in financing activities from Continuing Operations	(165.9)	(278.2)
Cash Flows from Discontinued Operations:
Cash used in operating activities	0.0	(44.7)
Cash used in investing activities	0.0	(1.7)
Cash used in discontinued operations	0.0	(46.4)
Effect of exchange rate changes on cash and cash equivalents	5.1	(6.0)
Increase in cash and cash equivalents	52.4	137.4
Cash and cash equivalents, beginning of year	440.5	286.2
Cash and cash equivalents within assets held for sale, beginning of year	0.0	0.7
Restricted cash, included in other assets, beginning of year	2.8	2.7
Less: Restricted cash, included in Other Assets	3.1	2.8
Cash and cash equivalents, end of period	$ 492.6	$ 424.2

XML

Basis of Presentation

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023.

The balance sheet at December 31, 2022 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, 2022.

Discontinued Operations

On February 1, 2022, the Company completed the sale of the Commercial and Industrial Lighting business (the "C&I Lighting business") to GE Current, a Daintree Company, for total net cash consideration of $332.8 million. The disposal of the C&I Lighting business met the criteria set forth in ASC 205-20 to be presented as a discontinued operation. The C&I Lighting business's results of operations and the related cash flows have been reclassified to income from discontinued operations in the Condensed Consolidated Statements of Income and cash flows from discontinued operations in the Condensed Consolidated Statement of Cash Flows, respectively, for all periods presented. For additional information regarding this transaction and its effect on our financial reporting, see Note 2 – Discontinued Operations, in the accompanying Condensed Consolidated Financial Statements.

Recently Adopted Accounting Pronouncements

In September 2022, the FASB issued ASU 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50: Disclosure of Supplier Finance Program Obligations)", which the Company adopted in the first quarter of 2023, with the exception of the rollforward information, which is effective for the Company in 2024.

Payment Services Arrangements

The Company has ongoing agreements with financial institutions to facilitate the processing of vendor payables. Under these agreements, the Company pays the financial institution the stated amount of confirmed invoices from participating suppliers on their original maturity date. The terms of the vendor payables are not affected by vendors participating in these agreements. As a result, the amounts owed are presented as accounts payable in the Company’s Condensed Consolidated Balance Sheet, of which, $119.4 million and $91.9 million was outstanding at June 30, 2023 and December 31, 2022, respectively. Either party may terminate the agreements with 30 days written notice. Cash flows under the program are reported in operating activities in the Company’s Condensed Consolidated Statement of Cash Flows.

Commercial Card Program

In 2021, the Company entered into an agreement with a financial institution that allows participating suppliers to receive payment for outstanding invoices through a commercial purchasing card sponsored by a financial institution. The Company is required to then settle such outstanding invoices through a consolidated payment to the financial institution 15 days after the commercial card billing cycle. The Company receives the benefit of extended payment terms and a rebate from the financial institution. Either party may terminate the agreement with 60 days written notice. The amount outstanding to the financial institution is presented as short-term debt in the Company’s Condensed Consolidated Balance Sheet, of which, $0.0 million and $1.9 million was outstanding at June 30, 2023 and December 31, 2022, respectively. Cash flows under the program are reported in financing activities in the Company’s Condensed Consolidated Statement of Cash Flows.

Recently Issued Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In December 2022, the FASB issued ASU No. 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the temporary accounting rules under Topic 848 to December 31, 2024. The Company continues to assess the impact of adopting this standard on its financial statements and the timing of adoption.

XML

Discontinued Operations

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Discontinued Operations

Discontinued Operations

On February 1, 2022, the Company completed the sale of the C&I Lighting business to GE Current, a Daintree Company, for total net cash consideration of $332.8 million. We have concluded the divestiture met the criteria set forth in ASC 205-20 to be presented as a discontinued operation in our Condensed Consolidated Financial Statements for all periods presented. The C&I Lighting business was previously included in the Electrical Solutions segment.

Under the terms of the transaction, Hubbell and the buyer entered into a transition services agreement ("TSA"), pursuant to which the Company provides certain administrative and operational services for a period of 12 months or less. In addition, we entered into a short-term supply agreement whereby the Company acts as a supplier of finished goods and component parts to the C&I Lighting business after the completion of the sale. There was no income or loss from either of the TSA or the supply agreement for the three and six months ended June 30, 2023. Income from the TSA and supply agreement for the three and six months ended June 30, 2022 was $4.8 million and $7.6 million, respectively, and was recorded in Other Income in the Condensed Consolidated Financial Statements. The TSA and short-term supply agreement were effectively completed as of March 31, 2023.

The following table presents the summarized components of income from discontinued operations, net of income taxes, for the C&I Lighting business:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2023		2022		2023		2022
Net sales	$	—	$	—	$	—	$	29.1
Cost of goods sold	—		—		—		27.7
Gross profit	—		—		—		1.4
Selling & administrative expenses	—		4.5		—		15.2
Operating loss	—		(4.5)		—		(13.8)
(Loss) gain on disposal of business	—		(7.7)		—		80.7
Other expense	—		(1.4)		—		(1.1)
(Loss) income from discontinued operations before income taxes	—		(13.6)		—		65.8
Provision for income taxes	—		—		—		1.7
(Loss) income from discontinued operations, net of taxes	$	—	$	(13.6)	$	—	$	64.1

(Loss) income from discontinued operations, net of taxes includes pre-tax transaction and separation costs of $4.5 million and $6.7 million for the three and six months ended June 30, 2022, respectively, and a pre-tax gain on the disposal of $80.7 million for the six months ended June 30, 2022. There were no transaction and separation costs or pre-tax gain on disposal in 2023.

XML

Business Acquisitions

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Business Acquisitions

Business Acquisitions

Acquisition

In the second quarter of 2023, the Company acquired all of the issued and outstanding membership interests of EI Electronics LLC ("EIG") for a cash purchase price of approximately $60 million, net of cash acquired, subject to customary purchase price adjustments. EIG offers fully integrated energy management and power quality monitoring solutions for the electric utility and commercial & industrial markets. This business is reported in the Utility Solutions segment. We have recognized intangible assets of $29.0 million and goodwill of $21.0 million as a result of this acquisition. The intangible assets of $29.0 million consist primarily of customer relationships, developed technology, a tradename and backlog and will be amortized over a weighted average period of approximately 14 years. All of the goodwill is expected to be deductible for tax purposes.

This business acquisition has been accounted for as a business combination and has resulted in the recognition of goodwill. The goodwill relates to a number of factors implied in the purchase price, including the future earnings and cash flow potential of the business as well as the complementary strategic fit and resulting synergies that such business acquisition brings to the Company’s existing operations.

Preliminary Allocation of Consideration Transferred to Net Assets Acquired

The following table presents the preliminary determination of the fair values of identifiable assets acquired and liabilities assumed from the Company's acquisition in the second quarter of 2023. The final determination of the fair value of certain assets and liabilities will be completed within the one year measurement period as required by FASB ASC Topic 805, “Business Combinations.” As the Company finalizes the fair values of assets acquired and liabilities assumed, additional purchase price adjustments may be recorded during the measurement period. Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company's results of operations and financial position. The finalization of the purchase accounting assessment may result in a change in the valuation of assets acquired and liabilities assumed and may have a material impact on the Company's results of operations and financial position.

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions):

Tangible assets acquired	$	19.0
Intangible assets	29.0
Goodwill	21.0
Net deferred taxes	—
Other liabilities assumed	(9.0)
Total Estimate of Consideration Transferred, Net of Cash Acquired	$	60.0

The Condensed Consolidated Financial Statements include the results of operations of the acquired business from its date of acquisition. Pro forma information related to this acquisition has not been included because the impact of net sales and earnings related to the acquisition for the six months ended June 30, 2023 was not material to the Company’s condensed consolidated results of operations.

XML

Revenue

6 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue

Revenue

The Company recognizes revenue when performance obligations identified under the terms of contracts with its customers are satisfied, which generally occurs, for products, upon the transfer of control in accordance with the contractual terms and conditions of the sale. The majority of the Company’s revenue associated with products is recognized at a point in time when the product is shipped to the customer, with a relatively small amount of transactions, primarily in the Utility Solutions segment, recognized upon delivery of the product at the destination. Revenue from service contracts and post-shipment performance obligations are approximately two percent of total annual consolidated net revenue and those service contracts and post-shipment obligations are primarily within the Utility Solutions segment. Revenue from service contracts and post-shipment performance obligations is recognized when or as those obligations are satisfied. The Company primarily offers assurance-type standard warranties that do not represent separate performance obligations and on occasion will separately offer and price extended warranties that are separate performance obligations for which the associated revenue is recognized over-time based on the extended warranty period. The Company records amounts billed to customers for reimbursement of shipping and handling costs within revenue. Shipping and handling costs associated with outbound freight after control over a product has transferred to a customer are accounted for as fulfillment costs and are included in cost of goods sold. Sales taxes and other usage-based taxes are excluded from revenue.

Within the Electrical Solutions segment, certain businesses require a portion of the transaction price to be paid in advance of transfer of control. Advance payments are not considered a significant financing component as they are received less than one year before the related performance obligations are satisfied. In addition, in the Utility Solutions segment, certain businesses offer annual maintenance service contracts that require payment at the beginning of the contract period. These payments are treated as a contract liability and are classified in Other accrued liabilities in the Condensed Consolidated Balance Sheets. Once control transfers to the customer and the Company meets the revenue recognition criteria, the deferred revenue is recognized in the Condensed Consolidated Statements of Income. The deferred revenue relating to the annual maintenance service contracts is recognized in the Condensed Consolidated Statements of Income on a straight-line basis over the expected term of the contract.

The following table presents disaggregated revenue by business group.

	Three Months Ended June 30,				Six Months Ended June 30,
in millions	2023		2022		2023		2022
Net sales
Utility T&D Components	$	631.2	$	556.5	$	1,246.3	$	1,048.0
Utility Communications and Controls	199.6		172.0		366.1		332.3
Total Utility Solutions	$	830.8	$	728.5	$	1,612.4	$	1,380.3
Electrical Products	$	213.0	$	234.8	$	417.0	$	462.5
Connection and Bonding	165.7		156.4		319.6		300.3
Industrial Controls	109.1		76.7		203.0		149.7
Retail and Builder	47.3		59.6		99.3		119.3
Total Electrical Solutions	$	535.1	$	527.5	$	1,038.9	$	1,031.8
TOTAL	$	1,365.9	$	1,256.0	$	2,651.3	$	2,412.1

The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions):

	Three Months Ended June 30,				Six Months Ended June 30,
in millions	2023		2022		2023		2022
Net sales
United States	$	786.6	$	689.9	$	1,526.9	$	1,308.4
International	44.2		38.6		85.5		71.9
Total Utility Solutions	$	830.8	$	728.5	$	1,612.4	$	1,380.3
United States	$	465.2	$	461.4	$	904.2	$	901.8
International	69.9		66.1		134.7		130.0
Total Electrical Solutions	$	535.1	$	527.5	$	1,038.9	$	1,031.8
TOTAL	$	1,365.9	$	1,256.0	$	2,651.3	$	2,412.1

Contract Balances

Our contract liabilities consist of advance payments for products as well as deferred revenue on service obligations and extended warranties. Deferred revenue is included in Other accrued liabilities in the Condensed Consolidated Balance Sheets.

Contract liabilities were $57.2 million as of June 30, 2023 compared to $45.8 million as of December 31, 2022. The $11.4 million increase in our contract liabilities balance was primarily due to a $39.4 million net increase in current year deferrals primarily due to timing of advance payments on certain orders, partially offset by the recognition of $28.0 million in revenue related to amounts that were recorded in contract liabilities at January 1, 2023. The Company has an immaterial amount of contract assets relating to performance obligations satisfied prior to payment that is recorded in Other long-term assets in the Condensed Consolidated Balance Sheets. Impairment losses recognized on our receivables and contract assets were immaterial for the three and six months ended June 30, 2023.

Unsatisfied Performance Obligations

As of June 30, 2023, the Company had approximately $260 million of unsatisfied performance obligations for contracts with an original expected length of greater than one year, primarily relating to long-term contracts of the Utility Solutions segment to deliver and install meters, metering communications and grid monitoring sensor technology. The Company expects that a majority of the unsatisfied performance obligations will be completed and recognized over the next two years.

XML

Segment Information

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company's reporting segments consist of the Utility Solutions segment and the Electrical Solutions segment. The Utility Solutions segment consists of businesses that design, manufacture, and sell a wide variety of electrical distribution, transmission, substation, and telecommunications products. This includes utility transmission & distribution (T&D) components such as arresters, insulators, connectors, anchors, bushings, and enclosures. The Utility Solutions segment also offers solutions that serve the utility infrastructure, including smart meters, communications systems, and protection and control devices. Hubbell Utility Solutions supports the electrical distribution, electrical transmission, water, gas distribution, telecommunications, and solar and wind markets. Products are sold to distributors and directly to users such as utilities, telecommunication companies, industrial firms, construction and engineering firms.

The Electrical Solutions segment comprises businesses that sell stock and custom products including standard and special application wiring device products, rough-in electrical products, connector and grounding products, lighting fixtures, components and other electrical equipment. The products are typically used in and around industrial, commercial and institutional facilities by electrical contractors, maintenance personnel, electricians, utilities, and telecommunications companies. In addition, certain of our businesses design and manufacture industrial controls and communication systems used in the non-residential and industrial markets. Many of these products are designed such that they can also be used in harsh and hazardous locations where a potential for fire and explosion exists due to the presence of flammable gasses and vapors. Harsh and hazardous products are primarily used in the oil and gas (onshore and offshore) and mining industries. There are also a variety of wiring devices, lighting fixtures and electrical products that have residential and utility applications, including residential products with Internet-of-Things ("IoT") enabled technologies. These products are primarily sold through electrical and industrial distributors, home centers, retail and hardware outlets, lighting showrooms and residential product oriented internet sites. Special application products are primarily sold through wholesale distributors to contractors, industrial customers and OEMs.

The following table sets forth financial information by reporting segment (in millions):

	Net Sales				Operating Income				Operating Income as a % of Net Sales
	2023		2022		2023		2022		2023		2022
Three Months Ended June 30,
Utility Solutions	$	830.8	$	728.5	$	199.5	$	111.4	24.0	%	15.3	%
Electrical Solutions	535.1		527.5		88.3		79.2		16.5	%	15.0	%
TOTAL	$	1,365.9	$	1,256.0	$	287.8	$	190.6	21.1	%	15.2	%
Six Months Ended June 30,
Utility Solutions	$	1,612.4	$	1,380.3	$	377.0	$	199.5	23.4	%	14.5	%
Electrical Solutions	1,038.9		1,031.8		159.6		134.0		15.4	%	13.0	%
TOTAL	$	2,651.3	$	2,412.1	$	536.6	$	333.5	20.2	%	13.8	%

XML

Inventories, net

6 Months Ended

Jun. 30, 2023

Inventory, Net, Items Net of Reserve Alternative [Abstract]

Inventories, net

Inventories, net

Inventories, net consists of the following (in millions):

	June 30, 2023		December 31, 2022
Raw material	$	338.4	$	302.8
Work-in-process	175.7		161.7
Finished goods	465.8		463.2
Subtotal	979.9		927.7
Excess of FIFO over LIFO cost basis	(185.8)		(187.0)
TOTAL	$	794.1	$	740.7

XML

Goodwill and Other Intangible Assets, net

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets, net

Goodwill and Other Intangible Assets, net

Changes in the carrying values of goodwill for the six months ended June 30, 2023, by segment, were as follows (in millions):

	Segment
	Utility Solutions		Electrical Solutions		Total
BALANCE AT DECEMBER 31, 2022	$	1,275.9	$	694.6	$	1,970.5
Prior year acquisitions	1.2		2.1		3.3
Current year acquisitions(1)	21.0		—		21.0
Foreign currency translation	2.6		1.4		4.0
BALANCE AT JUNE 30, 2023	$	1,300.7	$	698.1	$	1,998.8

 (1) Refer to Note 3 - Business Acquisitions for additional information.

The carrying value of other intangible assets included in Other intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions):

	June 30, 2023				December 31, 2022
	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Definite-lived:
Patents, tradenames and trademarks	$	191.0	$	(80.1)	$	187.9	$	(75.7)
Customer relationships, developed technology and other	983.2		(470.3)		955.3		(437.8)
TOTAL DEFINITE-LIVED INTANGIBLES	$	1,174.2	$	(550.4)	$	1,143.2	$	(513.5)
Indefinite-lived:
Tradenames and other	40.6		—		40.2		—
TOTAL OTHER INTANGIBLE ASSETS	$	1,214.8	$	(550.4)	$	1,183.4	$	(513.5)

Amortization expense associated with definite-lived intangible assets was $18.1 million and $17.4 million during the three months ended June 30, 2023 and 2022, respectively, and $35.9 million and $34.9 million during the six months ended June 30, 2023 and 2022, respectively. Future amortization expense associated with these intangible assets is estimated to be $37.2 million for the remainder of 2023, $69.4 million in 2024, $67.2 million in 2025, $63.5 million in 2026, $57.3 million in 2027, and $51.9 million in 2028. The Company amortizes intangible assets with definite lives using either an accelerated method that reflects the pattern in which economic benefits of the intangible assets are consumed and results in higher amortization in the earlier years of the assets useful lives, or using a straight line method. Approximately 80% of the gross value of definite-lived intangible assets follow an accelerated amortization method.

The Company completed its annual goodwill impairment test as of April 1, 2023. For each of the Company's four reporting units, the Company elected to utilize the quantitative goodwill impairment testing process, as permitted in the accounting guidance, by comparing the estimated fair value of the reporting units to their carrying values. If the estimated fair value exceeds its carrying value, no impairment exists.

Goodwill impairment testing requires judgment, including the identification of reporting units, assigning assets and liabilities to reporting units and determining the fair value of each reporting unit. Significant judgment is required to estimate the fair value of reporting units including estimating future cash flows, determining appropriate discount rates and other assumptions, including assumptions about secular economic and market conditions. The Company uses internal discounted cash flow models to estimate fair value. These cash flow estimates are derived from historical experience, third party end market data, and future long-term business plans and include assumptions of future sales growth, gross margin, operating margin, terminal growth rate, and the application of an appropriate discount rate. Significant changes in these estimates and assumptions could affect the determination of fair value and/or goodwill impairment for each reporting unit. The Company believes that its estimated aggregate fair value of its reporting units is reasonable when compared to the Company's market capitalization on the valuation date.

As of April 1, 2023, the impairment testing resulted in implied fair values for each reporting unit that exceeded such reporting unit's carrying value, by at least 47%, including goodwill. The Company did not have any reporting units with zero or negative carrying amounts.

The Company completed its annual impairment test of indefinite-lived intangible assets as of April 1, 2023. For the 2023 test, the Company elected to utilize the quantitative impairment testing process as permitted in the accounting guidance, by comparing the estimated fair value of the indefinite-lived intangible assets to their carrying values. If the estimated fair value of the indefinite-lived intangible assets exceeds their carrying value, no impairment exists. The estimated fair value was determined utilizing an income approach (relief from royalty method). Significant judgment is required to estimate the fair value of the indefinite-lived intangible assets including assumptions for future revenues, discount rates, royalty rates, and other assumptions, including assumptions about secular economic and market conditions. Significant changes in these estimates and assumptions could affect the determination of fair value and/or impairment for each indefinite-lived intangible asset. As of April 1, 2023, the impairment testing resulted in estimated fair values for each indefinite-lived intangible asset that significantly exceeded the carrying values and there were no indefinite-lived intangible assets at risk of failing the quantitative impairment test.

XML

Other Accrued Liabilities

6 Months Ended

Jun. 30, 2023

Accrued Liabilities [Abstract]

Other Accrued Liabilities

Other Accrued Liabilities

Other accrued liabilities consists of the following (in millions):

	June 30, 2023		December 31, 2022
Customer program incentives	$	45.2	$	87.8
Accrued income taxes	13.1		4.5
Contract liabilities - deferred revenue	57.2		45.8
Customer refund liability	17.5		14.8
Accrued warranties short-term(1)	20.6		20.2
Current operating lease liabilities	30.4		30.5
Other	133.1		130.5
TOTAL	$	317.1	$	334.1

(1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding warranties.

XML

Other Non-Current Liabilities

6 Months Ended

Jun. 30, 2023

Liabilities, Other than Long-Term Debt, Noncurrent [Abstract]

Other Non-Current Liabilities

Other Non-Current Liabilities

Other non-current liabilities consists of the following (in millions):

	June 30, 2023		December 31, 2022
Pensions	$	154.9	$	155.3
Other post-retirement benefits	14.3		14.3
Deferred tax liabilities	112.9		113.8
Accrued warranties long-term(1)	25.2		26.0
Non-current operating lease liabilities	83.8		84.9
Other	109.8		111.3
TOTAL	$	500.9	$	505.6

(1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding warranties.

XML

Total Equity

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

Total Equity

Total Equity

A summary of changes in total equity for the three and six months ended June 30, 2023 and the three and six months ended June 30, 2022 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, 2022	$	0.6	$	—	$	2,705.5	$	(345.2)	$	2,360.9	$	9.7
Net income	—		—		181.9		—		181.9		1.5
Other comprehensive (loss) income	—		—		—		9.3		9.3		—
Stock-based compensation	—		11.7		—		—		11.7		—
Acquisition/surrender of common shares(1)	—		(9.9)		(21.2)		—		(31.1)		—
Cash dividends declared ($1.12 per share)	—		—		(60.0)		—		(60.0)		—
Dividends to noncontrolling interest	—		—		—		—		—		(0.8)
Directors deferred compensation	—		—		—		—		—		—
BALANCE AT MARCH 31, 2023	$	0.6	$	1.8	$	2,806.2	$	(335.9)	$	2,472.7	$	10.4
Net income	—		—		206.8		—		206.8		1.4
Other comprehensive (loss) income	—		—		—		6.5		6.5		—
Stock-based compensation	—		4.4		—		—		4.4		—
Acquisition/surrender of common shares(1)	—		(6.4)		(3.3)		—		(9.7)		—
Cash dividends declared ($1.12 per share)	—		—		(60.2)		—		(60.2)		—
Dividends to noncontrolling interest	—		—		—		—		—		(1.4)
Directors deferred compensation	—		0.2		—		—		0.2		—
BALANCE AT JUNE 30, 2023	$	0.6	$	—	$	2,949.5	$	(329.4)	$	2,620.7	$	10.4

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Hubbell Shareholders' Equity		Non- controlling interest
BALANCE AT DECEMBER 31, 2021	$	0.6	$	—	$	2,560.0	$	(330.8)	$	2,229.8	$	10.9
Net income	—		—		180.2		—		180.2		1.3
Other comprehensive (loss) income	—		—		—		5.4		5.4		—
Stock-based compensation	—		11.1		—		—		11.1		—
Acquisition/surrender of common shares(1)	—		(11.2)		(145.2)		—		(156.4)		—
Cash dividends declared ($1.05 per share)	—		—		(56.9)		—		(56.9)		—
Dividends to noncontrolling interest	—		—		—		—		—		(1.1)
Directors deferred compensation	—		0.1		—		—		0.1		—
BALANCE AT MARCH 31, 2022	$	0.6	$	—	$	2,538.1	$	(325.4)	$	2,213.3	$	11.1
Net income	—		—		122.0		—		122.0		1.5
Other comprehensive (loss) income	—		—		—		(25.8)		(25.8)		—
Stock-based compensation	—		5.6		—		—		5.6		—
Acquisition/surrender of common shares(1)	—		(1.9)		—		—		(1.9)		—
Cash dividends declared ($1.05 per share)	—		—		(56.5)		—		(56.5)		—
Dividends to noncontrolling interest	—		—		—		—		—		(1.6)
Directors deferred compensation	—		0.2		—		—		0.2		—
BALANCE AT JUNE 30, 2022	$	0.6	$	3.9	$	2,603.6	$	(351.2)	$	2,256.9	$	11.0

(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 $24.5 million and $145.2 million in the first six months of 2023 and 2022, respectively, reflects this accounting treatment.

The detailed components of total comprehensive income are presented in the Condensed Consolidated Statements of Comprehensive Income.

XML

Accumulated Other Comprehensive Loss

6 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

A summary of the changes in Accumulated other comprehensive loss (net of tax) for the six months ended June 30, 2023 is provided below (in millions):

(debit) credit	Cash flow hedge gain (loss)		Unrealized gain (loss) on available-for- sale securities		Pension and post retirement benefit plan adjustment		Cumulative translation adjustment		Total
BALANCE AT DECEMBER 31, 2022	$	0.6	$	(0.8)	$	(188.6)	$	(156.4)	$	(345.2)
Other comprehensive income (loss) before reclassifications	(0.4)		—		—		13.3		12.9
Amounts reclassified from accumulated other comprehensive income (loss)	(0.5)		—		3.4		—		2.9
Current period other comprehensive income (loss)	(0.9)		—		3.4		13.3		15.8
BALANCE AT JUNE 30, 2023	$	(0.3)	$	(0.8)	$	(185.2)	$	(143.1)	$	(329.4)

A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2023 and 2022 is provided below (in millions): 

	Three Months Ended June 30,				Six Months Ended June 30,
Details about Accumulated Other Comprehensive Loss Components	2023		2022		2023		2022		Location of Gain (Loss) Reclassified into Income
Cash flow hedges gain (loss):
Forward exchange contracts	$	—	$	—	$	—	$	—	Net sales
	0.3		0.2		0.7		0.2		Cost of goods sold
	—		—		—		—		Other expense, net
	0.3		0.2		0.7		0.2		Total before tax
	(0.1)		—		(0.2)		—		Tax benefit (expense)
	$	0.2	$	0.2	$	0.5	$	0.2	Gain (loss) net of tax
Amortization of defined benefit pension and post retirement benefit items:
Prior-service costs (a)	$	(0.1)	$	(0.1)	$	(0.2)	$	(0.2)
Actuarial gains (losses) (a)	(2.5)		(2.5)		(5.0)		(5.0)
Settlement losses (a)	—		(5.8)		—		(5.8)
	(2.6)		(8.4)		(5.2)		(11.0)		Total before tax
	0.6		2.1		1.8		2.6		Tax benefit (expense)
	$	(2.0)	$	(6.3)	$	(3.4)	$	(8.4)	Gain (loss) net of tax
Reclassification of currency translation gain (loss):
	$	—	$	—	$	—	$	(0.5)	Gain (loss) on disposition of business (Note 2)
	—		—		—		—		Tax benefit (expense)
	$	—	$	—	$	—	$	(0.5)	Gain (loss) net of tax
Gains (losses) reclassified into earnings	$	(1.8)	$	(6.1)	$	(2.9)	$	(8.7)	Gain (loss) net of tax

(a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 13 - Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details).

XML

Earnings Per Share

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

Earnings Per Share

The Company computes earnings per share using the two-class method, which is an earnings allocation formula that determines earnings per share for common stock and participating securities. Service-based and performance-based restricted stock awards granted by the Company are considered participating securities as these awards contain a non-forfeitable right to dividends.

The following table sets forth the computation of earnings per share for the three and six months ended June 30, 2023 and 2022 (in millions, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income from continuing operations attributable to Hubbell Incorporated	$	206.8	$	135.6	$	388.7	$	238.1
Less: Earnings allocated to participating securities	(0.5)		(0.4)		(0.9)		(0.6)
Net income from continuing operations available to common shareholders	$	206.3	$	135.2	$	387.8	$	237.5
Net (loss) income from discontinued operations attributable to Hubbell Incorporated	$	—	$	(13.6)	$	—	$	64.1
Less: Earnings allocated to participating securities	—		—		—		(0.2)
Net (loss) income from discontinued operations available to common shareholders	$	—	$	(13.6)	$	—	$	63.9
Net income attributable to Hubbell Incorporated	$	206.8	$	122.0	$	388.7	$	302.2
Less: Earnings allocated to participating securities	(0.5)		(0.4)		(0.9)		(0.8)
Net income available to common shareholders	$	206.3	$	121.6	$	387.8	$	301.4
Denominator:
Average number of common shares outstanding	53.6		53.6		53.6		53.8
Potential dilutive common shares	0.4		0.3		0.3		0.3
Average number of diluted shares outstanding	54.0		53.9		53.9		54.1
Basic earnings per share:
Basic earnings per share from continuing operations	$	3.85	$	2.52	$	7.24	$	4.41
Basic earnings per share from discontinued operations	—		(0.25)		—		1.19
Basic earnings per share	$	3.85	$	2.27	$	7.24	$	5.60
Diluted earnings per share:
Diluted earnings per share from continuing operations	$	3.82	$	2.51	$	7.19	$	4.39
Diluted earnings per share from discontinued operations	—		(0.25)		—		1.18
Diluted earnings per share	$	3.82	$	2.26	$	7.19	$	5.57

The Company did not have any significant anti-dilutive securities outstanding during the three and six months ended June 30, 2023 and 2022.

XML

Pension and Other Benefits

6 Months Ended

Jun. 30, 2023

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Pension and Other Benefits

Pension and Other Benefits

The following table sets forth the components of net pension and other benefit costs for the three and six months ended June 30, 2023 and 2022 (in millions):

	Pension Benefits				Other Benefits
	2023		2022		2023		2022
Three Months Ended June 30,
Service cost	$	0.1	$	0.2	$	—	$	—
Interest cost	8.8		6.3		0.2		0.1
Expected return on plan assets	(7.0)		(8.2)		—		—
Amortization of prior service cost	0.1		0.1		—		—
Amortization of actuarial losses (gains)	2.6		2.6		(0.1)		(0.1)
Settlement losses	—		5.8		—		—
NET PERIODIC BENEFIT COST	$	4.6	$	6.8	$	0.1	$	—
Six Months Ended June 30,
Service cost	$	0.2	$	0.4	$	—	$	—
Interest cost	17.5		12.6		0.4		0.2
Expected return on plan assets	(14.0)		(16.4)		—		—
Amortization of prior service cost	0.2		0.2		—		—
Amortization of actuarial losses (gains)	5.2		5.2		(0.2)		(0.2)
Settlement losses	—		5.8		—		—
NET PERIODIC BENEFIT COST	$	9.1	$	7.8	$	0.2	$	—

In the second quarter of 2022, the Company recorded $4.4 million of settlement losses in continuing operations and $1.4 million of settlement losses in discontinued operations relating to retirees that elected to receive lump-sum distributions from the Company's defined benefit pension plans. This charge was the result of lump-sum payments which exceeded the threshold for settlement accounting under U.S. GAAP for the year.

Employer Contributions

The Company made no contributions to its qualified domestic defined benefit pension plan and no contributions to its foreign pension plans during the six months ended June 30, 2023. Although not required by ERISA and the Internal Revenue Code, the Company may elect to make additional voluntary contributions to its qualified domestic defined benefit pension plan in 2023.

XML

Guarantees

6 Months Ended

Jun. 30, 2023

Standard Product Warranty Disclosure [Abstract]

Guarantees

Guarantees

The Company records a liability equal to the fair value of guarantees in accordance with the accounting guidance for guarantees. When it is probable that a liability has been incurred and the amount can be reasonably estimated, the Company accrues for costs associated with guarantees. The most likely costs to be incurred are accrued based on an evaluation of currently available facts and, where no amount within a range of estimates is more likely, the minimum is accrued. As of June 30, 2023 and December 31, 2022, the fair value and maximum potential payment related to the Company’s guarantees were not material.

The Company offers product warranties that cover defects on most of its products. These warranties primarily apply to products that are properly installed, maintained and used for their intended purpose. The Company accrues estimated warranty costs at the time of sale. Estimated warranty expenses, recorded in cost of goods sold, are based upon historical information such as past experience, product failure rates, or the estimated number of units to be repaired or replaced. Adjustments are made to the product warranty accrual as claims are incurred, additional information becomes known, or as historical experience indicates.

Changes in the accrual for product warranties during the six months ended June 30, 2023 and 2022 are set forth below (in millions):

	2023		2022
BALANCE AT JANUARY 1, (a)	$	46.2	$	66.1
Provision	6.5		7.3
Expenditures/payments/other	(6.9)		(7.3)
BALANCE AT June 30, (a)	$	45.8	$	66.1

(a) Refer to Note 8 – Other Accrued Liabilities and Note 9 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties.

XML

Fair Value Measurement

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement

Fair Value Measurement

Financial Instruments

Financial instruments which potentially subject the Company to significant concentrations of credit loss risk consist of trade receivables, cash equivalents and investments. The Company grants credit terms in the normal course of business to its customers. Due to the diversity of its product lines, the Company has an extensive customer base including electrical distributors and wholesalers, electric utilities, equipment manufacturers, electrical contractors, telecommunication companies and retail and hardware outlets. As part of its ongoing procedures, the Company monitors the credit worthiness of its customers. Bad debt write-offs have historically been minimal. The Company places its cash and cash equivalents with financial institutions and limits the amount of exposure in any one institution.

At June 30, 2023 our accounts receivable balance was $811.2 million, net of allowances of $13.6 million. During the six months ended June 30, 2023 our allowances decreased approximately $0.7 million.

Investments

At June 30, 2023 and December 31, 2022, the Company had $64.2 million and $61.4 million, respectively, of available-for-sale municipal debt securities. These investments had an amortized cost of $65.3 million and $62.6 million, respectively. No allowance for credit losses related to our available-for-sale debt securities was recorded for the six months ended June 30, 2023. As of June 30, 2023 and December 31, 2022 the unrealized losses attributable to our available-for-sale debt securities were $1.2 million and $1.3 million, respectively. The fair value of available-for-sale debt securities with unrealized losses was $58.9 million at June 30, 2023 and $53.7 million at December 31, 2022.

The Company also had trading securities of $21.6 million at June 30, 2023 and $18.8 million at December 31, 2022 that are carried on the balance sheet at fair value. Unrealized gains and losses associated with available-for-sale debt securities are reflected in Accumulated other comprehensive loss, net of tax, while unrealized gains and losses associated with trading securities are reflected in the Condensed Consolidated Statement of Income.

Fair value measurements

Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The FASB fair value measurement guidance established a fair value hierarchy that prioritizes the inputs used to measure fair value. The three broad levels of the fair value hierarchy are as follows:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly.

Level 3 – Unobservable inputs for which little or no market data exists, therefore requiring a company to develop its own assumptions.

The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at June 30, 2023 and December 31, 2022 (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
June 30, 2023
Money market funds(a)	$	272.6	$	—	$	—	$	272.6
Available for sale investments	—		64.2		—		64.2
Trading securities	21.6		—		—		21.6
Deferred compensation plan liabilities	(21.6)		—		—		(21.6)
Derivatives:
Forward exchange contracts-Assets(b)	—		0.1		—		0.1
Forward exchange contracts-(Liabilities)(c)	—		(0.4)		—		(0.4)
TOTAL	$	272.6	$	63.9	$	—	$	336.5
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, 2022
Money market funds(a)	$	147.9	$	—	$	—	$	147.9
Time Deposits(a)	—		4.8		—		4.8
Available for sale investments	—		61.4		—		61.4
Trading securities	18.8		—		—		18.8
Deferred compensation plan liabilities	(18.8)		—		—		(18.8)
Derivatives:
Forward exchange contracts-Assets(b)	—		1.1		—		1.1
TOTAL	$	147.9	$	67.3	$	—	$	215.2

(a) Money market funds and time deposits are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets.

(b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets.

(c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets.

The methods and assumptions used to estimate the Level 2 fair values were as follows:

Forward exchange contracts – The fair value of forward exchange contracts was based on quoted forward foreign exchange prices at the reporting date.

Available-for-sale municipal bonds classified in Level 2 – The fair value of available-for-sale investments in municipal bonds is based on observable market-based inputs, other than quoted prices in active markets for identical assets. 

Deferred compensation plans

The Company offers certain employees the opportunity to participate in non-qualified deferred compensation plans. A participant’s deferrals are invested in a variety of participant-directed debt and equity mutual funds that are classified as trading securities. The Company purchased $3.1 million and $1.9 million of trading securities related to these deferred compensation plans during the six months ended June 30, 2023 and 2022, respectively. As a result of participant distributions, the Company sold $2.0 million of these trading securities during the six months ended June 30, 2023 and $2.4 million during the six months ended June 30, 2022. The unrealized gains and losses associated with these trading securities are directly offset by the changes in the fair value of the underlying deferred compensation plan obligation.

Long Term Debt

As of June 30, 2023 and December 31, 2022, the carrying value of long-term debt, net of unamortized discount and debt issuance costs, was $1,439.1 million and $1,437.9 million, respectively. The estimated fair value of the long-term debt as of June 30, 2023 and December 31, 2022 was $1,326.9 million and $1,306.5 million, respectively, using quoted market prices in active markets for similar liabilities (Level 2).

XML

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and ContingenciesThe Company is subject to various legal proceedings arising in the normal course of its business. These proceedings include claims for damages arising out of use of the Company’s products, intellectual property, workers’ compensation and environmental matters. The Company is self-insured up to specified limits for certain types of claims, including product liability and workers’ compensation, and is fully self-insured for certain other types of claims, including environmental and intellectual property matters. The Company recognizes a liability for any contingency that in management’s judgment is probable of occurrence and can be reasonably estimated. We continually reassess the likelihood of adverse judgments and outcomes in these matters, as well as estimated ranges of possible losses based upon an analysis of each matter which includes advice of outside legal counsel and, if applicable, other experts.

XML

Restructuring Costs and Other

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Restructuring Costs and Other

Restructuring Costs and Other

In the three and six months ended June 30, 2023, we incurred costs for restructuring actions initiated in 2023 as well as costs for restructuring actions initiated in prior years. Our restructuring actions are associated with cost reduction efforts that include the consolidation of manufacturing and distribution facilities as well as workforce reductions. Restructuring costs include severance and employee benefits, asset impairments, accelerated depreciation, as well as facility closure, contract termination and certain pension costs that are directly related to restructuring actions. These costs are predominantly settled in cash from our operating activities and are generally settled within one year, with the exception of asset impairments, which are non-cash.

Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022 are as follows (in millions):

	Three Months Ended June 30,
	2023		2022		2023		2022		2023		2022
	Cost of goods sold				Selling & administrative expense				Total
Utility Solutions	$	0.6	$	0.7	$	0.1	$	(0.2)	$	0.7	$	0.5
Electrical Solutions	1.2		0.5		(0.1)		0.6		1.1		1.1
Total Pre-Tax Restructuring Costs	$	1.8	$	1.2	$	—	$	0.4	$	1.8	$	1.6

	Six Months Ended June 30,
	2023		2022		2023		2022		2023		2022
	Cost of goods sold				Selling & administrative expense				Total
Utility Solutions	$	1.3	$	1.7	$	0.2	$	0.2	$	1.5	$	1.9
Electrical Solutions	0.9		0.6		(0.1)		0.7		0.8		1.3
Total Pre-Tax Restructuring Costs	$	2.2	$	2.3	$	0.1	$	0.9	$	2.3	$	3.2

The following table summarizes the accrued liabilities for our restructuring actions (in millions):

	Beginning Accrued  Restructuring Balance 1/1/23		Pre-tax Restructuring Costs		Utilization and Foreign Exchange		Ending Accrued Restructuring Balance 6/30/2023
2023 Restructuring Actions
Severance	$	—	$	0.1	$	(0.1)	$	—
Asset write-downs	—		—		—		—
Facility closure and other costs	—		0.1		(0.1)		—
Total 2023 Restructuring Actions	$	—	$	0.2	$	(0.2)	$	—
2022 and Prior Restructuring Actions
Severance	$	7.5	$	0.3	$	(2.5)	$	5.3
Asset write-downs	—		—		—		—
Facility closure and other costs	0.4		1.8		(1.7)		0.5
Total 2022 and Prior Restructuring Actions	$	7.9	$	2.1	$	(4.2)	$	5.8
Total Restructuring Actions	$	7.9	$	2.3	$	(4.4)	$	5.8

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 2022		Costs incurred in the first six months of 2023		Remaining costs at 6/30/2023
2023 Restructuring Actions
Utility Solutions	$	—	$	—	$	—	$	—
Electrical Solutions	0.2		—		0.2		—
Total 2023 Restructuring Actions	$	0.2	$	—	$	0.2	$	—
2022 and Prior Restructuring Actions
Utility Solutions	$	6.2	$	4.0	$	1.5	$	0.7
Electrical Solutions	10.4		6.3		0.6		3.5
Total 2022 and Prior Restructuring Actions	$	16.6	$	10.3	$	2.1	$	4.2
Total Restructuring Actions	$	16.8	$	10.3	$	2.3	$	4.2

XML

Debt and Financing Arrangements

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Debt and Financing Arrangements

Debt and Financing Arrangements

Long-term debt consists of the following (in millions):

	Maturity	June 30, 2023		December 31, 2022
Senior notes at 3.35%	2026	$	398.2	$	397.9
Senior notes at 3.15%	2027	297.8		297.5
Senior notes at 3.50%	2028	446.6		446.2
Senior notes at 2.300%	2031	296.5		296.3
TOTAL LONG-TERM DEBT(a)		$	1,439.1	$	1,437.9

(a)Long-term debt is presented net of debt issuance costs and unamortized discounts.

2021 Credit Facility

The Company has a five-year credit agreement with a syndicate of lenders and JPMorgan Chase, N.A., as administrative agent, that provides a $750 million committed revolving credit facility (the “2021 Credit Facility"). Commitments under the 2021 Credit Facility may be increased to an aggregate amount not to exceed $1.25 billion.

The 2021 Credit Facility contains a financial covenant requiring that, as of the last day of each fiscal quarter, the ratio of total indebtedness to total capitalization shall not be greater than 65%. The Company was in compliance with this covenant as of June 30, 2023. As of June 30, 2023, the 2021 Credit Facility was undrawn.

Short-Term Debt

The Company had $1.8 million and $4.7 million of short-term debt outstanding at June 30, 2023 and December 31, 2022, respectively, which consisted of borrowings to support our international operations in China and amounts outstanding under our Commercial Card Program.

XML

Stock-Based Compensation

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock-Based Compensation

As of June 30, 2023, the Company had various stock-based awards outstanding which were issued to executives and other key employees. The Company recognizes the grant-date fair value of all stock-based awards to employees over their respective requisite service periods (generally equal to an award’s vesting period), net of estimated forfeitures. A stock-based award is considered vested for expense attribution purposes when the employee’s retention of the award is no longer contingent on providing subsequent service. For those awards that vest immediately upon retirement eligibility, the Company recognizes compensation cost immediately for retirement-eligible individuals or over the period from the grant date to the date retirement eligibility is achieved, if less than the stated vesting period.

The Company’s long-term incentive program for awarding stock-based compensation includes a combination of restricted stock, stock appreciation rights (“SARs”), and performance shares of the Company’s common stock pursuant to the Hubbell Incorporated 2005 Incentive Award Plan as amended and restated (the "Award Plan"). Under the Award Plan, the Company may authorize up to 9.7 million shares of common stock to settle awards of restricted stock, performance shares, or SARs. The Company issues new shares to settle stock-based awards. During the three months ended March 31, 2023, the Company's grant of stock-based awards included restricted stock, SARs and performance shares. There were no material awards granted during the three months ended June 30, 2023.

Each of the compensation arrangements is discussed below.

Restricted Stock  

The Company issues various types of restricted stock awards, all of which are considered outstanding at the time of grant, as the award holders are entitled to dividends and voting rights. Unvested restricted stock awards are considered participating securities when computing earnings per share. Restricted stock grants are not transferable and are subject to forfeiture in the event of the recipient’s termination of employment prior to vesting.

Restricted Stock Issued to Employees - Service Condition

Restricted stock awards that vest based upon a service condition are expensed on a straight-line basis over the requisite service period. These awards generally vest either in three equal installments on each of the first three anniversaries of the grant date or on the third-year anniversary of the grant date. The fair 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 2023, the Company granted 47,670 restricted stock awards with a fair value per share of $241.17.

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 2023, the Company granted 93,779 SAR awards. The fair value of each SAR award was measured using the Black-Scholes option pricing model.

The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during February 2023:

Grant Date	Expected Dividend Yield	Expected Volatility	Risk Free Interest Rate	Expected Term	Weighted Avg. Grant Date Fair Value of 1 SAR
February 2023	1.9%	28.0%	3.7%	4.9 years	$60.99

The expected dividend yield was calculated by dividing the Company’s expected annual dividend by the average stock price for the past three months. Expected volatilities are based on historical volatilities of the Company’s stock for a period consistent with the expected term. The expected term of SARs granted was based upon historical exercise behavior of SARs. The risk-free interest rate is based on the U.S. Treasury yield curve in effect at the time of grant for the expected term of the award.

Performance Shares

Performance shares represent the right to receive a share of the Company’s common stock subject to the achievement of certain market or performance conditions established by the Company’s Compensation Committee and measured over a three-year period. Partial vesting in these awards may occur after separation from the Company for retirement eligible employees. Shares are not vested until approved by the Company’s Compensation Committee.

Performance Shares - Market Condition

In February 2023, the Company granted 11,481 performance shares that will vest subject to a market condition and service condition through the performance period. The market condition associated with the awards is the Company's total shareholder return ("TSR") compared to the TSR generated by the companies that comprise the S&P Capital Goods 900 index over a three year performance period. Performance at target will result in vesting and issuance of the number of performance shares granted, equal to 100% payout. Performance below or above target can result in issuance in the range of 0%-200% of the number of shares granted. Expense is recognized irrespective of the market condition being achieved.

The fair value of the performance share awards with a market condition for the 2023 grant was determined based upon a lattice model.

The following table summarizes the related assumptions used to determine the fair values of the performance share awards with a market condition granted during February 2023:

Grant Date	Stock Price on Measurement Date	Dividend Yield	Expected Volatility	Risk Free Interest Rate	Expected Term	Weighted Avg. Grant Date Fair Value
February 2023	$241.17	1.9%	39.4%	4.1%	2.9 years	$279.47

Expected volatilities are based on historical volatilities of the Company’s and members of the peer group's stock over the expected term of the award. The risk free interest rate is based on the U.S. Treasury yield curve in effect at the time of the grant for the expected term of the award.

Performance Shares - Performance Condition

In February 2023, the Company granted 23,316 performance shares that will vest subject to an internal Company-based performance condition and service requirement.

Fifty percent of these performance shares granted will vest based on Hubbell’s compounded annual growth rate of Net sales as compared to that of the companies that comprise the S&P Capital Goods 900 index. Fifty percent of these performance shares granted will vest based on achieved operating profit margin performance as compared to internal targets. Each of these performance conditions is measured over the same three-year performance period. The cumulative result of these performance conditions can result in a number of shares earned in the range of 0% - 200% of the target number of shares granted.

The fair value of the award is measured based upon the average of the high and low trading prices of the Company's common stock on the measurement date reduced by the present value of dividends expected to be paid during the requisite service period. The Company expenses these awards on a straight-line basis over the requisite service period and including an assessment of the performance achieved to date. The weighted average fair value per share was $230.64 for the awards granted during February 2023.

Grant Date	Fair Value	Performance Period	Payout Range
February 2023	$230.64	Jan 2023 - Dec 2025	0-200%

XML

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 206.8	$ 122.0	$ 388.7	$ 302.2

XML

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

XML

Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements of Hubbell Incorporated (“Hubbell”, the “Company”, “registrant”, “we”, “our” or “us”, which references include its divisions and subsidiaries) have been prepared in accordance with generally accepted accounting principles (“GAAP”) for interim financial information. Accordingly, they do not include all of the information and footnotes required by United States of America (“U.S.”) GAAP for audited financial statements. In the opinion of management, all adjustments consisting only of normal recurring adjustments considered necessary for a fair statement of the results of the periods presented have been included. Operating results for the six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for the full year ending December 31, 2023.

The balance sheet at December 31, 2022 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, 2022.

Discontinued Operations

Discontinued OperationsOn February 1, 2022, the Company completed the sale of the Commercial and Industrial Lighting business (the "C&I Lighting business") to GE Current, a Daintree Company, for total net cash consideration of $332.8 million. The disposal of the C&I Lighting business met the criteria set forth in ASC 205-20 to be presented as a discontinued operation. The C&I Lighting business's results of operations and the related cash flows have been reclassified to income from discontinued operations in the Condensed Consolidated Statements of Income and cash flows from discontinued operations in the Condensed Consolidated Statement of Cash Flows, respectively, for all periods presented.

Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted

Recently Adopted Accounting Pronouncements

In September 2022, the FASB issued ASU 2022-04, "Liabilities - Supplier Finance Programs (Subtopic 405-50: Disclosure of Supplier Finance Program Obligations)", which the Company adopted in the first quarter of 2023, with the exception of the rollforward information, which is effective for the Company in 2024.

Payment Services Arrangements

The Company has ongoing agreements with financial institutions to facilitate the processing of vendor payables. Under these agreements, the Company pays the financial institution the stated amount of confirmed invoices from participating suppliers on their original maturity date. The terms of the vendor payables are not affected by vendors participating in these agreements. As a result, the amounts owed are presented as accounts payable in the Company’s Condensed Consolidated Balance Sheet, of which, $119.4 million and $91.9 million was outstanding at June 30, 2023 and December 31, 2022, respectively. Either party may terminate the agreements with 30 days written notice. Cash flows under the program are reported in operating activities in the Company’s Condensed Consolidated Statement of Cash Flows.

Commercial Card Program

In 2021, the Company entered into an agreement with a financial institution that allows participating suppliers to receive payment for outstanding invoices through a commercial purchasing card sponsored by a financial institution. The Company is required to then settle such outstanding invoices through a consolidated payment to the financial institution 15 days after the commercial card billing cycle. The Company receives the benefit of extended payment terms and a rebate from the financial institution. Either party may terminate the agreement with 60 days written notice. The amount outstanding to the financial institution is presented as short-term debt in the Company’s Condensed Consolidated Balance Sheet, of which, $0.0 million and $1.9 million was outstanding at June 30, 2023 and December 31, 2022, respectively. Cash flows under the program are reported in financing activities in the Company’s Condensed Consolidated Statement of Cash Flows.

Recently Issued Accounting Pronouncements Not Yet Adopted

In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which provides optional expedients and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In December 2022, the FASB issued ASU No. 2022-06 Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848, which extends the temporary accounting rules under Topic 848 to December 31, 2024. The Company continues to assess the impact of adopting this standard on its financial statements and the timing of adoption.

XML

Discontinued Operations (Tables)

6 Months Ended

Jun. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

Schedule of Income From Discontinued Operations, Net of Income Taxes and Balance Sheet Information for Assets and Liabilities Held for Sale

The following table presents the summarized components of income from discontinued operations, net of income taxes, for the C&I Lighting business:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2023		2022		2023		2022
Net sales	$	—	$	—	$	—	$	29.1
Cost of goods sold	—		—		—		27.7
Gross profit	—		—		—		1.4
Selling & administrative expenses	—		4.5		—		15.2
Operating loss	—		(4.5)		—		(13.8)
(Loss) gain on disposal of business	—		(7.7)		—		80.7
Other expense	—		(1.4)		—		(1.1)
(Loss) income from discontinued operations before income taxes	—		(13.6)		—		65.8
Provision for income taxes	—		—		—		1.7
(Loss) income from discontinued operations, net of taxes	$	—	$	(13.6)	$	—	$	64.1

XML

Business Acquisitions (Tables)

6 Months Ended

Jun. 30, 2023

Business Combination and Asset Acquisition [Abstract]

Schedule of Fair Values of the Assets Acquired and Liabilities Assumed

The following table summarizes the preliminary fair values of the assets acquired and liabilities assumed at the date of acquisition (in millions):

Tangible assets acquired	$	19.0
Intangible assets	29.0
Goodwill	21.0
Net deferred taxes	—
Other liabilities assumed	(9.0)
Total Estimate of Consideration Transferred, Net of Cash Acquired	$	60.0

XML

Revenue (Tables)

6 Months Ended

Jun. 30, 2023

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 June 30,				Six Months Ended June 30,
in millions	2023		2022		2023		2022
Net sales
Utility T&D Components	$	631.2	$	556.5	$	1,246.3	$	1,048.0
Utility Communications and Controls	199.6		172.0		366.1		332.3
Total Utility Solutions	$	830.8	$	728.5	$	1,612.4	$	1,380.3
Electrical Products	$	213.0	$	234.8	$	417.0	$	462.5
Connection and Bonding	165.7		156.4		319.6		300.3
Industrial Controls	109.1		76.7		203.0		149.7
Retail and Builder	47.3		59.6		99.3		119.3
Total Electrical Solutions	$	535.1	$	527.5	$	1,038.9	$	1,031.8
TOTAL	$	1,365.9	$	1,256.0	$	2,651.3	$	2,412.1

The following table presents disaggregated revenue by geographic location (on a geographic basis, the Company defines "international" as operations based outside of the United States and its possessions):

	Three Months Ended June 30,				Six Months Ended June 30,
in millions	2023		2022		2023		2022
Net sales
United States	$	786.6	$	689.9	$	1,526.9	$	1,308.4
International	44.2		38.6		85.5		71.9
Total Utility Solutions	$	830.8	$	728.5	$	1,612.4	$	1,380.3
United States	$	465.2	$	461.4	$	904.2	$	901.8
International	69.9		66.1		134.7		130.0
Total Electrical Solutions	$	535.1	$	527.5	$	1,038.9	$	1,031.8
TOTAL	$	1,365.9	$	1,256.0	$	2,651.3	$	2,412.1

XML

Segment Information (Tables)

6 Months Ended

Jun. 30, 2023

Segment Reporting [Abstract]

Schedule of Segment Information

The following table sets forth financial information by reporting segment (in millions):

	Net Sales				Operating Income				Operating Income as a % of Net Sales
	2023		2022		2023		2022		2023		2022
Three Months Ended June 30,
Utility Solutions	$	830.8	$	728.5	$	199.5	$	111.4	24.0	%	15.3	%
Electrical Solutions	535.1		527.5		88.3		79.2		16.5	%	15.0	%
TOTAL	$	1,365.9	$	1,256.0	$	287.8	$	190.6	21.1	%	15.2	%
Six Months Ended June 30,
Utility Solutions	$	1,612.4	$	1,380.3	$	377.0	$	199.5	23.4	%	14.5	%
Electrical Solutions	1,038.9		1,031.8		159.6		134.0		15.4	%	13.0	%
TOTAL	$	2,651.3	$	2,412.1	$	536.6	$	333.5	20.2	%	13.8	%

XML

Inventories, net (Tables)

6 Months Ended

Jun. 30, 2023

Inventory, Net, Items Net of Reserve Alternative [Abstract]

Schedule of Inventories, Net

Inventories, net consists of the following (in millions):

	June 30, 2023		December 31, 2022
Raw material	$	338.4	$	302.8
Work-in-process	175.7		161.7
Finished goods	465.8		463.2
Subtotal	979.9		927.7
Excess of FIFO over LIFO cost basis	(185.8)		(187.0)
TOTAL	$	794.1	$	740.7

XML

Goodwill and Other Intangible Assets, net (Tables)

6 Months Ended

Jun. 30, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Changes in Goodwill

Changes in the carrying values of goodwill for the six months ended June 30, 2023, by segment, were as follows (in millions):

	Segment
	Utility Solutions		Electrical Solutions		Total
BALANCE AT DECEMBER 31, 2022	$	1,275.9	$	694.6	$	1,970.5
Prior year acquisitions	1.2		2.1		3.3
Current year acquisitions(1)	21.0		—		21.0
Foreign currency translation	2.6		1.4		4.0
BALANCE AT JUNE 30, 2023	$	1,300.7	$	698.1	$	1,998.8

 (1) Refer to Note 3 - Business Acquisitions for additional information.

Schedule of Intangible Assets

The carrying value of other intangible assets included in Other intangible assets, net in the Condensed Consolidated Balance Sheets is as follows (in millions):

	June 30, 2023				December 31, 2022
	Gross Amount		Accumulated Amortization		Gross Amount		Accumulated Amortization
Definite-lived:
Patents, tradenames and trademarks	$	191.0	$	(80.1)	$	187.9	$	(75.7)
Customer relationships, developed technology and other	983.2		(470.3)		955.3		(437.8)
TOTAL DEFINITE-LIVED INTANGIBLES	$	1,174.2	$	(550.4)	$	1,143.2	$	(513.5)
Indefinite-lived:
Tradenames and other	40.6		—		40.2		—
TOTAL OTHER INTANGIBLE ASSETS	$	1,214.8	$	(550.4)	$	1,183.4	$	(513.5)

XML

Other Accrued Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

Accrued Liabilities [Abstract]

Schedule of Other Accrued Liabilities

Other accrued liabilities consists of the following (in millions):

	June 30, 2023		December 31, 2022
Customer program incentives	$	45.2	$	87.8
Accrued income taxes	13.1		4.5
Contract liabilities - deferred revenue	57.2		45.8
Customer refund liability	17.5		14.8
Accrued warranties short-term(1)	20.6		20.2
Current operating lease liabilities	30.4		30.5
Other	133.1		130.5
TOTAL	$	317.1	$	334.1

(1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding warranties.

XML

Other Non-Current Liabilities (Tables)

6 Months Ended

Jun. 30, 2023

Liabilities, Other than Long-Term Debt, Noncurrent [Abstract]

Schedule of Other Non-Current Liabilities

Other non-current liabilities consists of the following (in millions):

	June 30, 2023		December 31, 2022
Pensions	$	154.9	$	155.3
Other post-retirement benefits	14.3		14.3
Deferred tax liabilities	112.9		113.8
Accrued warranties long-term(1)	25.2		26.0
Non-current operating lease liabilities	83.8		84.9
Other	109.8		111.3
TOTAL	$	500.9	$	505.6

(1) Refer to Note 22 - Guarantees, in the Notes to Consolidated Financial Statements in our Annual Report on Form 10-K for the year ended December 31, 2022 for additional information regarding warranties.

XML

Total Equity (Tables)

6 Months Ended

Jun. 30, 2023

Stockholders' Equity Note [Abstract]

Schedule of Stockholders Equity

A summary of changes in total equity for the three and six months ended June 30, 2023 and the three and six months ended June 30, 2022 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, 2022	$	0.6	$	—	$	2,705.5	$	(345.2)	$	2,360.9	$	9.7
Net income	—		—		181.9		—		181.9		1.5
Other comprehensive (loss) income	—		—		—		9.3		9.3		—
Stock-based compensation	—		11.7		—		—		11.7		—
Acquisition/surrender of common shares(1)	—		(9.9)		(21.2)		—		(31.1)		—
Cash dividends declared ($1.12 per share)	—		—		(60.0)		—		(60.0)		—
Dividends to noncontrolling interest	—		—		—		—		—		(0.8)
Directors deferred compensation	—		—		—		—		—		—
BALANCE AT MARCH 31, 2023	$	0.6	$	1.8	$	2,806.2	$	(335.9)	$	2,472.7	$	10.4
Net income	—		—		206.8		—		206.8		1.4
Other comprehensive (loss) income	—		—		—		6.5		6.5		—
Stock-based compensation	—		4.4		—		—		4.4		—
Acquisition/surrender of common shares(1)	—		(6.4)		(3.3)		—		(9.7)		—
Cash dividends declared ($1.12 per share)	—		—		(60.2)		—		(60.2)		—
Dividends to noncontrolling interest	—		—		—		—		—		(1.4)
Directors deferred compensation	—		0.2		—		—		0.2		—
BALANCE AT JUNE 30, 2023	$	0.6	$	—	$	2,949.5	$	(329.4)	$	2,620.7	$	10.4

	Common Stock		Additional Paid-in Capital		Retained Earnings		Accumulated Other Comprehensive Income (Loss)		Total Hubbell Shareholders' Equity		Non- controlling interest
BALANCE AT DECEMBER 31, 2021	$	0.6	$	—	$	2,560.0	$	(330.8)	$	2,229.8	$	10.9
Net income	—		—		180.2		—		180.2		1.3
Other comprehensive (loss) income	—		—		—		5.4		5.4		—
Stock-based compensation	—		11.1		—		—		11.1		—
Acquisition/surrender of common shares(1)	—		(11.2)		(145.2)		—		(156.4)		—
Cash dividends declared ($1.05 per share)	—		—		(56.9)		—		(56.9)		—
Dividends to noncontrolling interest	—		—		—		—		—		(1.1)
Directors deferred compensation	—		0.1		—		—		0.1		—
BALANCE AT MARCH 31, 2022	$	0.6	$	—	$	2,538.1	$	(325.4)	$	2,213.3	$	11.1
Net income	—		—		122.0		—		122.0		1.5
Other comprehensive (loss) income	—		—		—		(25.8)		(25.8)		—
Stock-based compensation	—		5.6		—		—		5.6		—
Acquisition/surrender of common shares(1)	—		(1.9)		—		—		(1.9)		—
Cash dividends declared ($1.05 per share)	—		—		(56.5)		—		(56.5)		—
Dividends to noncontrolling interest	—		—		—		—		—		(1.6)
Directors deferred compensation	—		0.2		—		—		0.2		—
BALANCE AT JUNE 30, 2022	$	0.6	$	3.9	$	2,603.6	$	(351.2)	$	2,256.9	$	11.0

(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 $24.5 million and $145.2 million in the first six months of 2023 and 2022, respectively, reflects this accounting treatment.

XML

Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule of Accumulated Other Comprehensive Income Loss

A summary of the changes in Accumulated other comprehensive loss (net of tax) for the six months ended June 30, 2023 is provided below (in millions):

(debit) credit	Cash flow hedge gain (loss)		Unrealized gain (loss) on available-for- sale securities		Pension and post retirement benefit plan adjustment		Cumulative translation adjustment		Total
BALANCE AT DECEMBER 31, 2022	$	0.6	$	(0.8)	$	(188.6)	$	(156.4)	$	(345.2)
Other comprehensive income (loss) before reclassifications	(0.4)		—		—		13.3		12.9
Amounts reclassified from accumulated other comprehensive income (loss)	(0.5)		—		3.4		—		2.9
Current period other comprehensive income (loss)	(0.9)		—		3.4		13.3		15.8
BALANCE AT JUNE 30, 2023	$	(0.3)	$	(0.8)	$	(185.2)	$	(143.1)	$	(329.4)

Schedule of Reclassifications Out of Accumulated Other Comprehensive Income

A summary of the gain (loss) reclassifications out of Accumulated other comprehensive loss for the three and six months ended June 30, 2023 and 2022 is provided below (in millions): 

	Three Months Ended June 30,				Six Months Ended June 30,
Details about Accumulated Other Comprehensive Loss Components	2023		2022		2023		2022		Location of Gain (Loss) Reclassified into Income
Cash flow hedges gain (loss):
Forward exchange contracts	$	—	$	—	$	—	$	—	Net sales
	0.3		0.2		0.7		0.2		Cost of goods sold
	—		—		—		—		Other expense, net
	0.3		0.2		0.7		0.2		Total before tax
	(0.1)		—		(0.2)		—		Tax benefit (expense)
	$	0.2	$	0.2	$	0.5	$	0.2	Gain (loss) net of tax
Amortization of defined benefit pension and post retirement benefit items:
Prior-service costs (a)	$	(0.1)	$	(0.1)	$	(0.2)	$	(0.2)
Actuarial gains (losses) (a)	(2.5)		(2.5)		(5.0)		(5.0)
Settlement losses (a)	—		(5.8)		—		(5.8)
	(2.6)		(8.4)		(5.2)		(11.0)		Total before tax
	0.6		2.1		1.8		2.6		Tax benefit (expense)
	$	(2.0)	$	(6.3)	$	(3.4)	$	(8.4)	Gain (loss) net of tax
Reclassification of currency translation gain (loss):
	$	—	$	—	$	—	$	(0.5)	Gain (loss) on disposition of business (Note 2)
	—		—		—		—		Tax benefit (expense)
	$	—	$	—	$	—	$	(0.5)	Gain (loss) net of tax
Gains (losses) reclassified into earnings	$	(1.8)	$	(6.1)	$	(2.9)	$	(8.7)	Gain (loss) net of tax

(a) These accumulated other comprehensive loss components are included in the computation of net periodic pension cost (see Note 13 - Pension and Other Benefits in the Notes to Condensed Consolidated Financial Statements for additional details).

XML

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Computation of Earnings Per Share

The following table sets forth the computation of earnings per share for the three and six months ended June 30, 2023 and 2022 (in millions, except per share amounts):

	Three Months Ended June 30,				Six Months Ended June 30,
	2023		2022		2023		2022
Numerator:
Net income from continuing operations attributable to Hubbell Incorporated	$	206.8	$	135.6	$	388.7	$	238.1
Less: Earnings allocated to participating securities	(0.5)		(0.4)		(0.9)		(0.6)
Net income from continuing operations available to common shareholders	$	206.3	$	135.2	$	387.8	$	237.5
Net (loss) income from discontinued operations attributable to Hubbell Incorporated	$	—	$	(13.6)	$	—	$	64.1
Less: Earnings allocated to participating securities	—		—		—		(0.2)
Net (loss) income from discontinued operations available to common shareholders	$	—	$	(13.6)	$	—	$	63.9
Net income attributable to Hubbell Incorporated	$	206.8	$	122.0	$	388.7	$	302.2
Less: Earnings allocated to participating securities	(0.5)		(0.4)		(0.9)		(0.8)
Net income available to common shareholders	$	206.3	$	121.6	$	387.8	$	301.4
Denominator:
Average number of common shares outstanding	53.6		53.6		53.6		53.8
Potential dilutive common shares	0.4		0.3		0.3		0.3
Average number of diluted shares outstanding	54.0		53.9		53.9		54.1
Basic earnings per share:
Basic earnings per share from continuing operations	$	3.85	$	2.52	$	7.24	$	4.41
Basic earnings per share from discontinued operations	—		(0.25)		—		1.19
Basic earnings per share	$	3.85	$	2.27	$	7.24	$	5.60
Diluted earnings per share:
Diluted earnings per share from continuing operations	$	3.82	$	2.51	$	7.19	$	4.39
Diluted earnings per share from discontinued operations	—		(0.25)		—		1.18
Diluted earnings per share	$	3.82	$	2.26	$	7.19	$	5.57

XML

Pension and Other Benefits (Tables)

6 Months Ended

Jun. 30, 2023

Defined Benefit Plans and Other Postretirement Benefit Plans Disclosures [Abstract]

Schedule of Net Pension and Other Benefit Costs

The following table sets forth the components of net pension and other benefit costs for the three and six months ended June 30, 2023 and 2022 (in millions):

	Pension Benefits				Other Benefits
	2023		2022		2023		2022
Three Months Ended June 30,
Service cost	$	0.1	$	0.2	$	—	$	—
Interest cost	8.8		6.3		0.2		0.1
Expected return on plan assets	(7.0)		(8.2)		—		—
Amortization of prior service cost	0.1		0.1		—		—
Amortization of actuarial losses (gains)	2.6		2.6		(0.1)		(0.1)
Settlement losses	—		5.8		—		—
NET PERIODIC BENEFIT COST	$	4.6	$	6.8	$	0.1	$	—
Six Months Ended June 30,
Service cost	$	0.2	$	0.4	$	—	$	—
Interest cost	17.5		12.6		0.4		0.2
Expected return on plan assets	(14.0)		(16.4)		—		—
Amortization of prior service cost	0.2		0.2		—		—
Amortization of actuarial losses (gains)	5.2		5.2		(0.2)		(0.2)
Settlement losses	—		5.8		—		—
NET PERIODIC BENEFIT COST	$	9.1	$	7.8	$	0.2	$	—

XML

Guarantees (Tables)

6 Months Ended

Jun. 30, 2023

Standard Product Warranty Disclosure [Abstract]

Schedule of Product Warranty Liability

Changes in the accrual for product warranties during the six months ended June 30, 2023 and 2022 are set forth below (in millions):

	2023		2022
BALANCE AT JANUARY 1, (a)	$	46.2	$	66.1
Provision	6.5		7.3
Expenditures/payments/other	(6.9)		(7.3)
BALANCE AT June 30, (a)	$	45.8	$	66.1

(a) Refer to Note 8 – Other Accrued Liabilities and Note 9 – Other Non-Current Liabilities for a breakout of short-term and long-term warranties.

XML

Fair Value Measurement (Tables)

6 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Schedule of Financial Assets and Liability by Fair Value Hierarchy Level

The following table shows, by level within the fair value hierarchy, our financial assets and liabilities that are accounted for at fair value on a recurring basis at June 30, 2023 and December 31, 2022 (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
June 30, 2023
Money market funds(a)	$	272.6	$	—	$	—	$	272.6
Available for sale investments	—		64.2		—		64.2
Trading securities	21.6		—		—		21.6
Deferred compensation plan liabilities	(21.6)		—		—		(21.6)
Derivatives:
Forward exchange contracts-Assets(b)	—		0.1		—		0.1
Forward exchange contracts-(Liabilities)(c)	—		(0.4)		—		(0.4)
TOTAL	$	272.6	$	63.9	$	—	$	336.5
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, 2022
Money market funds(a)	$	147.9	$	—	$	—	$	147.9
Time Deposits(a)	—		4.8		—		4.8
Available for sale investments	—		61.4		—		61.4
Trading securities	18.8		—		—		18.8
Deferred compensation plan liabilities	(18.8)		—		—		(18.8)
Derivatives:
Forward exchange contracts-Assets(b)	—		1.1		—		1.1
TOTAL	$	147.9	$	67.3	$	—	$	215.2

(a) Money market funds and time deposits are reflected in Cash and cash equivalents in the Condensed Consolidated Balance Sheets.

(b) Forward exchange contracts-Assets are reflected in Other current assets in the Condensed Consolidated Balance Sheets.

(c) Forward exchange contracts-(Liabilities) are reflected in Other accrued liabilities in the Condensed Consolidated Balance Sheets.

XML

Restructuring Costs and Other (Tables)

6 Months Ended

Jun. 30, 2023

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Costs

Pre-tax restructuring costs incurred in each of our reporting segments and the location of the costs in the Condensed Consolidated Statements of Income for the three and six months ended June 30, 2023 and 2022 are as follows (in millions):

	Three Months Ended June 30,
	2023		2022		2023		2022		2023		2022
	Cost of goods sold				Selling & administrative expense				Total
Utility Solutions	$	0.6	$	0.7	$	0.1	$	(0.2)	$	0.7	$	0.5
Electrical Solutions	1.2		0.5		(0.1)		0.6		1.1		1.1
Total Pre-Tax Restructuring Costs	$	1.8	$	1.2	$	—	$	0.4	$	1.8	$	1.6

	Six Months Ended June 30,
	2023		2022		2023		2022		2023		2022
	Cost of goods sold				Selling & administrative expense				Total
Utility Solutions	$	1.3	$	1.7	$	0.2	$	0.2	$	1.5	$	1.9
Electrical Solutions	0.9		0.6		(0.1)		0.7		0.8		1.3
Total Pre-Tax Restructuring Costs	$	2.2	$	2.3	$	0.1	$	0.9	$	2.3	$	3.2

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 1/1/23		Pre-tax Restructuring Costs		Utilization and Foreign Exchange		Ending Accrued Restructuring Balance 6/30/2023
2023 Restructuring Actions
Severance	$	—	$	0.1	$	(0.1)	$	—
Asset write-downs	—		—		—		—
Facility closure and other costs	—		0.1		(0.1)		—
Total 2023 Restructuring Actions	$	—	$	0.2	$	(0.2)	$	—
2022 and Prior Restructuring Actions
Severance	$	7.5	$	0.3	$	(2.5)	$	5.3
Asset write-downs	—		—		—		—
Facility closure and other costs	0.4		1.8		(1.7)		0.5
Total 2022 and Prior Restructuring Actions	$	7.9	$	2.1	$	(4.2)	$	5.8
Total Restructuring Actions	$	7.9	$	2.3	$	(4.4)	$	5.8

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 2022		Costs incurred in the first six months of 2023		Remaining costs at 6/30/2023
2023 Restructuring Actions
Utility Solutions	$	—	$	—	$	—	$	—
Electrical Solutions	0.2		—		0.2		—
Total 2023 Restructuring Actions	$	0.2	$	—	$	0.2	$	—
2022 and Prior Restructuring Actions
Utility Solutions	$	6.2	$	4.0	$	1.5	$	0.7
Electrical Solutions	10.4		6.3		0.6		3.5
Total 2022 and Prior Restructuring Actions	$	16.6	$	10.3	$	2.1	$	4.2
Total Restructuring Actions	$	16.8	$	10.3	$	2.3	$	4.2

XML

Debt and Financing Arrangements (Tables)

6 Months Ended

Jun. 30, 2023

Debt Disclosure [Abstract]

Schedule of Long Term Debt

Long-term debt consists of the following (in millions):

	Maturity	June 30, 2023		December 31, 2022
Senior notes at 3.35%	2026	$	398.2	$	397.9
Senior notes at 3.15%	2027	297.8		297.5
Senior notes at 3.50%	2028	446.6		446.2
Senior notes at 2.300%	2031	296.5		296.3
TOTAL LONG-TERM DEBT(a)		$	1,439.1	$	1,437.9

(a)Long-term debt is presented net of debt issuance costs and unamortized discounts.

XML

Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement [Abstract]

Schedule of the Weighted-Average Assumption Used in Estimating Fair Value of Stock Appreciation Rights

The following table summarizes the weighted-average assumptions used in estimating the fair value of the SARs granted during February 2023:

Grant Date	Expected Dividend Yield	Expected Volatility	Risk Free Interest Rate	Expected Term	Weighted Avg. Grant Date Fair Value of 1 SAR
February 2023	1.9%	28.0%	3.7%	4.9 years	$60.99

Schedule of the Attributes of the Performance Shares Granted During the Period

The following table summarizes the related assumptions used to determine the fair values of the performance share awards with a market condition granted during February 2023:

Grant Date	Stock Price on Measurement Date	Dividend Yield	Expected Volatility	Risk Free Interest Rate	Expected Term	Weighted Avg. Grant Date Fair Value
February 2023	$241.17	1.9%	39.4%	4.1%	2.9 years	$279.47

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 $230.64 for the awards granted during February 2023.

Grant Date	Fair Value	Performance Period	Payout Range
February 2023	$230.64	Jan 2023 - Dec 2025	0-200%

XML

Basis of Presentation (Details) - USD ($) $ in Millions		6 Months Ended
	Feb. 01, 2022	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Discontinued Operations
Total net cash consideration		$ 0.0	$ 348.6
Payment Services Arrangement
Recently Adopted Accounting Pronouncements
Supplier finance program, obligation		119.4		$ 91.9
Commercial Card Program
Recently Adopted Accounting Pronouncements
Supplier finance program, obligation		$ 0.0		$ 1.9
Discontinued Operations, Disposed of by Sale | Commercial and Industrial Lighting business
Discontinued Operations
Total net cash consideration	$ 332.8

XML

Discontinued Operations - Narrative (Details) - USD ($)		3 Months Ended		6 Months Ended
	Feb. 01, 2022	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total net cash consideration				$ 0	$ 348,600,000
Discontinued Operations, Disposed of by Sale | Commercial and Industrial Lighting business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Total net cash consideration	$ 332,800,000
Administrative and operational services for a period (in months)	12 months
Income from service		$ 0	$ 4,800,000	0	7,600,000
Transaction and separation costs			4,500,000	0	6,700,000
(Loss) gain on disposal of business		$ 0	$ (7,700,000)	$ 0	$ 80,700,000

XML

Discontinued Operations - Schedule of Income From Discontinued Operations, Net of Income Taxes and Balance Sheet Information for Assets and Liabilities Held for Sale (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
(Loss) income from discontinued operations, net of taxes	$ 0	$ (13,600,000)	$ 0	$ 64,100,000
Discontinued Operations, Disposed of by Sale | Commercial and Industrial Lighting business
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales	0	0	0	29,100,000
Cost of goods sold	0	0	0	27,700,000
Gross profit	0	0	0	1,400,000
Selling & administrative expenses	0	4,500,000	0	15,200,000
Operating loss	0	(4,500,000)	0	(13,800,000)
(Loss) gain on disposal of business	0	(7,700,000)	0	80,700,000
Other expense	0	(1,400,000)	0	(1,100,000)
(Loss) income from discontinued operations before income taxes	0	(13,600,000)	0	65,800,000
Provision for income taxes	0	0	0	1,700,000
(Loss) income from discontinued operations, net of taxes	$ 0	$ (13,600,000)	$ 0	$ 64,100,000

XML

Business Acquisitions - Narrative (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Business Acquisition [Line Items]
Cash purchase price, net of cash acquired		$ 60.0	$ 0.0
Goodwill	$ 1,998.8	1,998.8		$ 1,970.5
EI Electronics LLC
Business Acquisition [Line Items]
Cash purchase price, net of cash acquired	60.0
Intangible asset acquired	29.0	29.0
Goodwill	21.0	21.0
EI Electronics LLC | Customer Relationships And Tradename
Business Acquisition [Line Items]
Intangible asset acquired	$ 29.0	$ 29.0
Weighted average estimated useful life (in years)		14 years

XML

Business Acquisitions - Schedule of Fair Values of the Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Business Acquisition [Line Items]
Goodwill	$ 1,998.8	$ 1,970.5
2023 Acquisition
Business Acquisition [Line Items]
Tangible assets acquired	19.0
Intangible assets	29.0
Goodwill	21.0
Net deferred taxes	0.0
Other liabilities assumed	(9.0)
Total Estimate of Consideration Transferred, Net of Cash Acquired	$ 60.0

XML

Revenue - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Revenue from Contract with Customer [Abstract]
Percentage of revenue from service contracts and post-shipment obligations (approximate)	2.00%
Contract liability	$ 57.2	$ 45.8
Increase (decrease) in net contract liabilities	11.4
Increase in current year deferrals, net	39.4
Revenue recognized	$ 28.0

XML

Revenue - Schedule of Disaggregated Revenue by Business Group (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Net Sales	$ 1,365.9	$ 1,256.0	$ 2,651.3	$ 2,412.1
Utility Solutions
Disaggregation of Revenue [Line Items]
Net Sales	830.8	728.5	1,612.4	1,380.3
Utility Solutions | United States
Disaggregation of Revenue [Line Items]
Net Sales	786.6	689.9	1,526.9	1,308.4
Utility Solutions | International
Disaggregation of Revenue [Line Items]
Net Sales	44.2	38.6	85.5	71.9
Utility Solutions | Utility T&D Components
Disaggregation of Revenue [Line Items]
Net Sales	631.2	556.5	1,246.3	1,048.0
Utility Solutions | Utility Communications and Controls
Disaggregation of Revenue [Line Items]
Net Sales	199.6	172.0	366.1	332.3
Electrical Solutions
Disaggregation of Revenue [Line Items]
Net Sales	535.1	527.5	1,038.9	1,031.8
Electrical Solutions | United States
Disaggregation of Revenue [Line Items]
Net Sales	465.2	461.4	904.2	901.8
Electrical Solutions | International
Disaggregation of Revenue [Line Items]
Net Sales	69.9	66.1	134.7	130.0
Electrical Solutions | Electrical Products
Disaggregation of Revenue [Line Items]
Net Sales	213.0	234.8	417.0	462.5
Electrical Solutions | Connection and Bonding
Disaggregation of Revenue [Line Items]
Net Sales	165.7	156.4	319.6	300.3
Electrical Solutions | Industrial Controls
Disaggregation of Revenue [Line Items]
Net Sales	109.1	76.7	203.0	149.7
Electrical Solutions | Retail and Builder
Disaggregation of Revenue [Line Items]
Net Sales	$ 47.3	$ 59.6	$ 99.3	$ 119.3

XML

Revenue - Unsatisfied Performance Obligations (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 $ in Millions	Jun. 30, 2023 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Unsatisfied performance obligation	$ 260
Unsatisfied performance obligation, period of recognition (in years)	2 years

XML

Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Net Sales	$ 1,365.9	$ 1,256.0	$ 2,651.3	$ 2,412.1
Operating Income	$ 287.8	$ 190.6	$ 536.6	$ 333.5
Operating Income as a % of Net Sales	21.10%	15.20%	20.20%	13.80%
Utility Solutions
Segment Reporting Information [Line Items]
Net Sales	$ 830.8	$ 728.5	$ 1,612.4	$ 1,380.3
Operating Income	$ 199.5	$ 111.4	$ 377.0	$ 199.5
Operating Income as a % of Net Sales	24.00%	15.30%	23.40%	14.50%
Electrical Solutions
Segment Reporting Information [Line Items]
Net Sales	$ 535.1	$ 527.5	$ 1,038.9	$ 1,031.8
Operating Income	$ 88.3	$ 79.2	$ 159.6	$ 134.0
Operating Income as a % of Net Sales	16.50%	15.00%	15.40%	13.00%

XML

Inventories, net - Schedule of Inventories, Net (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Inventory, Net, Items Net of Reserve Alternative [Abstract]
Raw material	$ 338.4	$ 302.8
Work-in-process	175.7	161.7
Finished goods	465.8	463.2
Subtotal	979.9	927.7
Excess of FIFO over LIFO cost basis	(185.8)	(187.0)
TOTAL	$ 794.1	$ 740.7

XML

Goodwill and Other Intangible Assets, net - Schedule of Changes in Goodwill (Details) $ in Millions	6 Months Ended
	Jun. 30, 2023 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 1,970.5
Prior year acquisitions	3.3
Current year acquisitions	21.0
Foreign currency translation	4.0
Goodwill, ending balance	1,998.8
Utility Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	1,275.9
Prior year acquisitions	1.2
Current year acquisitions	21.0
Foreign currency translation	2.6
Goodwill, ending balance	1,300.7
Electrical Solutions
Goodwill [Roll Forward]
Goodwill, beginning balance	694.6
Prior year acquisitions	2.1
Current year acquisitions	0.0
Foreign currency translation	1.4
Goodwill, ending balance	$ 698.1

XML

Goodwill and Other Intangible Assets, net - Schedule of Intangible Assets (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Other Intangible Assets [Line Items]
Finite-lived intangible assets, gross	$ 1,174.2	$ 1,143.2
Accumulated Amortization	(550.4)	(513.5)
Total intangible assets	1,214.8	1,183.4
Tradenames and other
Other Intangible Assets [Line Items]
Indefinite-lived intangible assets	40.6	40.2
Patents, tradenames and trademarks
Other Intangible Assets [Line Items]
Finite-lived intangible assets, gross	191.0	187.9
Accumulated Amortization	(80.1)	(75.7)
Customer relationships, developed technology and other
Other Intangible Assets [Line Items]
Finite-lived intangible assets, gross	983.2	955.3
Accumulated Amortization	$ (470.3)	$ (437.8)

XML

Goodwill and Other Intangible Assets, net - Narrative (Details) $ in Millions		3 Months Ended		6 Months Ended
	Apr. 01, 2023 reportingUnit	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Finite-Lived Intangible Assets, Net [Abstract]
Amortization expense		$ 18.1	$ 17.4	$ 35.9	$ 34.9
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Remainder of 2023		37.2		37.2
2024		69.4		69.4
2025		67.2		67.2
2026		63.5		63.5
2027		57.3		57.3
2028		$ 51.9		$ 51.9
Percentage of definite-lived intangible assets under accelerated amortization method (approximate) (as a percent)		80.00%		80.00%
Goodwill [Line Items]
Number of reporting units with goodwill | reportingUnit	4
Minimum
Goodwill [Line Items]
Reporting unit, percentage of fair value in excess of carrying amount	47.00%

XML

Other Accrued Liabilities - Schedule of Other Accrued Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Accrued Liabilities [Abstract]
Customer program incentives	$ 45.2	$ 87.8
Accrued income taxes	13.1	4.5
Contract liabilities - deferred revenue	57.2	45.8
Customer refund liability	17.5	14.8
Accrued warranties short-term	20.6	20.2
Current operating lease liabilities	30.4	30.5
Other	133.1	130.5
TOTAL	$ 317.1	$ 334.1

XML

Other Non-Current Liabilities - Schedule of Other Non-Current Liabilities (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Liabilities, Other than Long-Term Debt, Noncurrent [Abstract]
Pensions	$ 154.9	$ 155.3
Other post-retirement benefits	14.3	14.3
Deferred tax liabilities	112.9	113.8
Accrued warranties long-term	25.2	26.0
Non-current operating lease liabilities	83.8	84.9
Other	109.8	111.3
TOTAL	$ 500.9	$ 505.6

XML

Total Equity - Schedule of Stockholders Equity (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of period		$ 2,370.6			$ 2,370.6
Net income	$ 208.2		$ 123.5		391.6	$ 305.0
Other comprehensive (loss) income	6.5		$ (25.8)		15.8	$ (20.4)
End of period	$ 2,631.1				$ 2,631.1
Cash dividends declared (USD per share)	$ 1.12	$ 1.12	$ 1.05	$ 1.05	$ 2.24	$ 2.10
Common Stock
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of period	$ 0.6	$ 0.6	$ 0.6	$ 0.6	$ 0.6	$ 0.6
End of period	0.6	0.6	0.6	0.6	0.6	0.6
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of period	1.8	0.0	0.0	0.0	0.0	0.0
Stock-based compensation	4.4	11.7	5.6	11.1
Acquisition/surrender of common shares	(6.4)	(9.9)	(1.9)	(11.2)
Directors deferred compensation	0.2		0.2	0.1
End of period	0.0	1.8	3.9	0.0	0.0	3.9
Retained Earnings
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of period	2,806.2	2,705.5	2,538.1	2,560.0	2,705.5	2,560.0
Net income	206.8	181.9	122.0	180.2
Acquisition/surrender of common shares	(3.3)	(21.2)		(145.2)	(24.5)	(145.2)
Cash dividends declared	(60.2)	(60.0)	(56.5)	(56.9)
End of period	2,949.5	2,806.2	2,603.6	2,538.1	2,949.5	2,603.6
Accumulated Other Comprehensive Income (Loss)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of period	(335.9)	(345.2)	(325.4)	(330.8)	(345.2)	(330.8)
Other comprehensive (loss) income	6.5	9.3	(25.8)	5.4
End of period	(329.4)	(335.9)	(351.2)	(325.4)	(329.4)	(351.2)
Total Hubbell Shareholders' Equity
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of period	2,472.7	2,360.9	2,213.3	2,229.8	2,360.9	2,229.8
Net income	206.8	181.9	122.0	180.2
Other comprehensive (loss) income	6.5	9.3	(25.8)	5.4
Stock-based compensation	4.4	11.7	5.6	11.1
Acquisition/surrender of common shares	(9.7)	(31.1)	(1.9)	(156.4)
Cash dividends declared	(60.2)	(60.0)	(56.5)	(56.9)
Directors deferred compensation	0.2		0.2	0.1
End of period	2,620.7	2,472.7	2,256.9	2,213.3	2,620.7	2,256.9
Non- controlling interest
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Beginning of period	10.4	9.7	11.1	10.9	9.7	10.9
Net income	1.4	1.5	1.5	1.3
Dividends to noncontrolling interest	(1.4)	(0.8)	(1.6)	(1.1)
End of period	$ 10.4	$ 10.4	$ 11.0	$ 11.1	$ 10.4	$ 11.0

XML

Accumulated Other Comprehensive Loss - Schedule of Accumulated Other Comprehensive Income Loss (Details) - USD ($) $ in Millions	3 Months Ended				6 Months Ended
	Jun. 30, 2023	Mar. 31, 2023	Jun. 30, 2022	Mar. 31, 2022	Jun. 30, 2023	Jun. 30, 2022
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period		$ 2,370.6			$ 2,370.6
Other comprehensive income (loss) before reclassifications					12.9
Amounts reclassified from accumulated other comprehensive income (loss)					2.9
Other comprehensive income (loss)	$ 6.5		$ (25.8)		15.8	$ (20.4)
End of period	2,631.1				2,631.1
Cash flow hedge gain (loss)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period		0.6			0.6
Other comprehensive income (loss) before reclassifications					(0.4)
Amounts reclassified from accumulated other comprehensive income (loss)					(0.5)
Other comprehensive income (loss)					(0.9)
End of period	(0.3)				(0.3)
Unrealized gain (loss) on available-for- sale securities
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period		(0.8)			(0.8)
Other comprehensive income (loss) before reclassifications					0.0
Amounts reclassified from accumulated other comprehensive income (loss)					0.0
Other comprehensive income (loss)					0.0
End of period	(0.8)				(0.8)
Pension and post retirement benefit plan adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period		(188.6)			(188.6)
Other comprehensive income (loss) before reclassifications					0.0
Amounts reclassified from accumulated other comprehensive income (loss)					3.4
Other comprehensive income (loss)					3.4
End of period	(185.2)				(185.2)
Cumulative translation adjustment
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period		(156.4)			(156.4)
Other comprehensive income (loss) before reclassifications					13.3
Amounts reclassified from accumulated other comprehensive income (loss)					0.0
Other comprehensive income (loss)					13.3
End of period	(143.1)				(143.1)
Total
AOCI Attributable to Parent, Net of Tax [Roll Forward]
Beginning of period	(335.9)	(345.2)	(325.4)	$ (330.8)	(345.2)	(330.8)
Other comprehensive income (loss)	6.5	9.3	(25.8)	5.4
End of period	$ (329.4)	$ (335.9)	$ (351.2)	$ (325.4)	$ (329.4)	$ (351.2)

XML

Accumulated Other Comprehensive Loss - Schedule of Reclassifications Out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net sales	$ 1,365.9	$ 1,256.0	$ 2,651.3	$ 2,412.1
Cost of goods sold	869.7	872.8	1,706.8	1,705.8
Other (expense) income, net	(4.8)	2.5	(8.9)	6.1
Tax benefit (expense)	(65.6)	(38.9)	(117.2)	(68.5)
Gain (loss) net of tax	208.2	123.5	391.6	305.0
Reclassification out of Accumulated Other Comprehensive Income
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gain (loss) net of tax	(1.8)	(6.1)	(2.9)	(8.7)
Reclassification out of Accumulated Other Comprehensive Income | Cash flow hedges gain (loss):
Accumulated Other Comprehensive Income (Loss) [Line Items]
Net sales	0.0	0.0	0.0	0.0
Cost of goods sold	0.3	0.2	0.7	0.2
Other (expense) income, net	0.0	0.0	0.0	0.0
Total before tax	0.3	0.2	0.7	0.2
Tax benefit (expense)	(0.1)	0.0	(0.2)	0.0
Gain (loss) net of tax	0.2	0.2	0.5	0.2
Reclassification out of Accumulated Other Comprehensive Income | Prior-service costs
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	(0.1)	(0.1)	(0.2)	(0.2)
Reclassification out of Accumulated Other Comprehensive Income | Actuarial gains (losses)
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	(2.5)	(2.5)	(5.0)	(5.0)
Reclassification out of Accumulated Other Comprehensive Income | Settlement losses
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	0.0	(5.8)	0.0	(5.8)
Reclassification out of Accumulated Other Comprehensive Income | Pension and post retirement benefit plan adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Total before tax	(2.6)	(8.4)	(5.2)	(11.0)
Tax benefit (expense)	0.6	2.1	1.8	2.6
Gain (loss) net of tax	(2.0)	(6.3)	(3.4)	(8.4)
Reclassification out of Accumulated Other Comprehensive Income | Cumulative translation adjustment
Accumulated Other Comprehensive Income (Loss) [Line Items]
Gain (loss) on disposition of business (Note 2)	0.0	0.0	0.0	(0.5)
Tax benefit (expense)	0.0	0.0	0.0	0.0
Gain (loss) net of tax	$ 0.0	$ 0.0	$ 0.0	$ (0.5)

XML

Earnings Per Share - Schedule of Computation of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Numerator:
Net income from continuing operations attributable to Hubbell Incorporated	$ 206.8	$ 135.6	$ 388.7	$ 238.1
Less: Earnings allocated to participating securities	(0.5)	(0.4)	(0.9)	(0.6)
Net income from continuing operations available to common shareholders	206.3	135.2	387.8	237.5
Net (loss) income from discontinued operations attributable to Hubbell Incorporated	0.0	(13.6)	0.0	64.1
Less: Earnings allocated to participating securities	0.0	0.0	0.0	(0.2)
Net (loss) income from discontinued operations available to common shareholders	0.0	(13.6)	0.0	63.9
Net income attributable to Hubbell Incorporated	206.8	122.0	388.7	302.2
Less: Earnings allocated to participating securities	(0.5)	(0.4)	(0.9)	(0.8)
Net income available to common shareholders	$ 206.3	$ 121.6	$ 387.8	$ 301.4
Denominator:
Average number of common shares outstanding (in shares)	53.6	53.6	53.6	53.8
Potential dilutive common shares (in shares)	0.4	0.3	0.3	0.3
Average number of diluted shares outstanding (in shares)	54.0	53.9	53.9	54.1
Basic earnings per share:
Basic earnings per share from continuing operations (USD per share)	$ 3.85	$ 2.52	$ 7.24	$ 4.41
Basic earnings per share from discontinued operations (USD per share)	0	(0.25)	0	1.19
Basic earnings per share (USD per share)	3.85	2.27	7.24	5.60
Diluted earnings per share:
Diluted earnings per share from continuing operations (USD per share)	3.82	2.51	7.19	4.39
Diluted earnings per share from discontinued operations (USD per share)	0	(0.25)	0	1.18
Diluted earnings per share (USD per share)	$ 3.82	$ 2.26	$ 7.19	$ 5.57

XML

Pension and Other Benefits - Schedule of Net Pension and Other Benefit Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
NET PERIODIC BENEFIT COST	$ 0.0	$ 4.4	$ 0.0	$ 4.4
Pension Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.1	0.2	0.2	0.4
Interest cost	8.8	6.3	17.5	12.6
Expected return on plan assets	(7.0)	(8.2)	(14.0)	(16.4)
Amortization of prior service cost	0.1	0.1	0.2	0.2
Amortization of actuarial losses (gains)	2.6	2.6	5.2	5.2
Settlement losses	0.0	5.8	0.0	5.8
NET PERIODIC BENEFIT COST	4.6	6.8	9.1	7.8
Other Benefits
Defined Benefit Plan Disclosure [Line Items]
Service cost	0.0	0.0	0.0	0.0
Interest cost	0.2	0.1	0.4	0.2
Expected return on plan assets	0.0	0.0	0.0	0.0
Amortization of prior service cost	0.0	0.0	0.0	0.0
Amortization of actuarial losses (gains)	(0.1)	(0.1)	(0.2)	(0.2)
Settlement losses	0.0	0.0	0.0	0.0
NET PERIODIC BENEFIT COST	$ 0.1	$ 0.0	$ 0.2	$ 0.0

XML

Pension and Other Benefits - Narrative (Details) - Pension Benefits - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Plan Disclosure [Line Items]
Settlement losses	$ 0.0	$ (5.8)	$ 0.0	$ (5.8)
Operating Segments
Defined Benefit Plan Disclosure [Line Items]
Settlement losses		4.4
Discontinued Operations
Defined Benefit Plan Disclosure [Line Items]
Settlement losses		$ 1.4
United States
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer	0.0
Foreign Plan
Defined Benefit Plan Disclosure [Line Items]
Contributions by employer	$ 0.0

XML

Guarantees - Schedule of Product Warranty Liability (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Movement in Standard Product Warranty Accrual [Roll Forward]
Beginning balance	$ 46.2	$ 66.1
Provision	6.5	7.3
Expenditures/payments/other	(6.9)	(7.3)
Ending balance	$ 45.8	$ 66.1

XML

Fair Value Measurement - Narrative (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Accounts receivable, net	$ 811.2		$ 741.6
Accounts receivable, allowances	13.6		14.3
Decrease in accounts receivable, allowances	0.7
Available for sale debt securities	64.2		61.4
Available for sale debt securities, amortized cost	65.3		62.6
Available for sale debt securities, allowance for credit losses	0.0
Available for sale debt securities, unrealized losses	1.2		1.3
Available for sale debt securities with unrealized losses, fair value	58.9		53.7
Trading securities	21.6		18.8
Purchase of trading securities related to deferred compensation plans	3.1	$ 1.9
Proceeds from securities sold	2.0	$ 2.4
Long-term debt	1,439.1		1,437.9
Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	1,439.1		1,437.9
Long-term debt, fair value	$ 1,326.9		$ 1,306.5

XML

Fair Value Measurement - Schedule of Financial Assets and Liability by Fair Value Hierarchy Level (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available for sale investments	$ 64.2	$ 61.4
Trading securities	21.6	18.8
Deferred compensation plan liabilities	(21.6)	(18.8)
Derivatives:
Forward exchange contracts-Assets	0.1	1.1
Forward exchange contracts-(Liabilities)	(0.4)
TOTAL	336.5	215.2
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	0.0
Trading securities	21.6	18.8
Deferred compensation plan liabilities	(21.6)	(18.8)
Derivatives:
Forward exchange contracts-Assets	0.0	0.0
Forward exchange contracts-(Liabilities)	0.0
TOTAL	272.6	147.9
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	64.2	61.4
Trading securities	0.0	0.0
Deferred compensation plan liabilities	0.0	0.0
Derivatives:
Forward exchange contracts-Assets	0.1	1.1
Forward exchange contracts-(Liabilities)	(0.4)
TOTAL	63.9	67.3
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	0.0
Trading securities	0.0	0.0
Deferred compensation plan liabilities	0.0	0.0
Derivatives:
Forward exchange contracts-Assets	0.0	0.0
Forward exchange contracts-(Liabilities)	0.0
TOTAL	0.0	0.0
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	272.6	147.9
Money market funds | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	272.6	147.9
Money market funds | Quoted Prices in Active Markets for Similar Assets (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	0.0	0.0
Money market funds | Unobservable inputs for which little or no market data exists (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds	$ 0.0	0.0
Time Deposits
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds		4.8
Time Deposits | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds		0.0
Time Deposits | Quoted Prices in Active Markets for Similar Assets (Level 2)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds		4.8
Time Deposits | Unobservable inputs for which little or no market data exists (Level 3)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Money market funds		$ 0.0

XML

Restructuring Costs and Other - Schedule of Restructuring Costs (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ 1.8	$ 1.6	$ 2.3	$ 3.2
Cost of goods sold
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1.8	1.2	2.2	2.3
Selling & administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0.0	0.4	0.1	0.9
Utility Solutions
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0.7	0.5	1.5	1.9
Utility Solutions | Cost of goods sold
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0.6	0.7	1.3	1.7
Utility Solutions | Selling & administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges	0.1	(0.2)	0.2	0.2
Electrical Solutions
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1.1	1.1	0.8	1.3
Electrical Solutions | Cost of goods sold
Restructuring Cost and Reserve [Line Items]
Restructuring charges	1.2	0.5	0.9	0.6
Electrical Solutions | Selling & administrative expense
Restructuring Cost and Reserve [Line Items]
Restructuring charges	$ (0.1)	$ 0.6	$ (0.1)	$ 0.7

XML

Restructuring Costs and Other - Schedule of Reserve (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Restructuring Reserve [Roll Forward]
Beginning Accrued Restructuring Balance			$ 7.9
Pre-tax Restructuring Costs	$ 1.8	$ 1.6	2.3	$ 3.2
Utilization and Foreign Exchange			(4.4)
Ending Accrued Restructuring Balance	5.8		5.8
2023 Restructuring Actions
Restructuring Reserve [Roll Forward]
Beginning Accrued Restructuring Balance			0.0
Pre-tax Restructuring Costs			0.2
Utilization and Foreign Exchange			(0.2)
Ending Accrued Restructuring Balance	0.0		0.0
2023 Restructuring Actions | Severance
Restructuring Reserve [Roll Forward]
Beginning Accrued Restructuring Balance			0.0
Pre-tax Restructuring Costs			0.1
Utilization and Foreign Exchange			(0.1)
Ending Accrued Restructuring Balance	0.0		0.0
2023 Restructuring Actions | Asset write-downs
Restructuring Reserve [Roll Forward]
Beginning Accrued Restructuring Balance			0.0
Pre-tax Restructuring Costs			0.0
Utilization and Foreign Exchange			0.0
Ending Accrued Restructuring Balance	0.0		0.0
2023 Restructuring Actions | Facility closure and other costs
Restructuring Reserve [Roll Forward]
Beginning Accrued Restructuring Balance			0.0
Pre-tax Restructuring Costs			0.1
Utilization and Foreign Exchange			(0.1)
Ending Accrued Restructuring Balance	0.0		0.0
2022 and Prior Restructuring Actions
Restructuring Reserve [Roll Forward]
Beginning Accrued Restructuring Balance			7.9
Pre-tax Restructuring Costs			2.1
Utilization and Foreign Exchange			(4.2)
Ending Accrued Restructuring Balance	5.8		5.8
2022 and Prior Restructuring Actions | Severance
Restructuring Reserve [Roll Forward]
Beginning Accrued Restructuring Balance			7.5
Pre-tax Restructuring Costs			0.3
Utilization and Foreign Exchange			(2.5)
Ending Accrued Restructuring Balance	5.3		5.3
2022 and Prior Restructuring Actions | Asset write-downs
Restructuring Reserve [Roll Forward]
Beginning Accrued Restructuring Balance			0.0
Pre-tax Restructuring Costs			0.0
Utilization and Foreign Exchange			0.0
Ending Accrued Restructuring Balance	0.0		0.0
2022 and Prior Restructuring Actions | Facility closure and other costs
Restructuring Reserve [Roll Forward]
Beginning Accrued Restructuring Balance			0.4
Pre-tax Restructuring Costs			1.8
Utilization and Foreign Exchange			(1.7)
Ending Accrued Restructuring Balance	$ 0.5		$ 0.5

XML

Restructuring Costs and Other - Schedule of Costs (Details) - USD ($) $ in Millions	6 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Restructuring Cost and Reserve [Line Items]
Total expected costs	$ 16.8
Costs incurred	2.3	$ 10.3
Restructuring costs	4.2
2023 Restructuring Actions
Restructuring Cost and Reserve [Line Items]
Total expected costs	0.2
Costs incurred	0.2	0.0
Restructuring costs	0.0
2023 Restructuring Actions | Utility Solutions
Restructuring Cost and Reserve [Line Items]
Total expected costs	0.0
Costs incurred	0.0	0.0
Restructuring costs	0.0
2023 Restructuring Actions | Electrical Solutions
Restructuring Cost and Reserve [Line Items]
Total expected costs	0.2
Costs incurred	0.2	0.0
Restructuring costs	0.0
2022 and Prior Restructuring Actions
Restructuring Cost and Reserve [Line Items]
Total expected costs	16.6
Costs incurred	2.1	10.3
Restructuring costs	4.2
2022 and Prior Restructuring Actions | Utility Solutions
Restructuring Cost and Reserve [Line Items]
Total expected costs	6.2
Costs incurred	1.5	4.0
Restructuring costs	0.7
2022 and Prior Restructuring Actions | Electrical Solutions
Restructuring Cost and Reserve [Line Items]
Total expected costs	10.4
Costs incurred	0.6	$ 6.3
Restructuring costs	$ 3.5

XML

Debt and Financing Arrangements - Schedule of Long Term Debt (Details) - USD ($) $ in Millions	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Long-term debt	$ 1,439.1	$ 1,437.9
Senior Notes
Debt Instrument [Line Items]
Long-term debt	$ 1,439.1	1,437.9
Senior Notes | Senior notes at 3.35%
Debt Instrument [Line Items]
Interest rate, stated percentage (as a percent)	3.35%
Long-term debt	$ 398.2	397.9
Senior Notes | Senior notes at 3.15%
Debt Instrument [Line Items]
Interest rate, stated percentage (as a percent)	3.15%
Long-term debt	$ 297.8	297.5
Senior Notes | Senior notes at 3.50%
Debt Instrument [Line Items]
Interest rate, stated percentage (as a percent)	3.50%
Long-term debt	$ 446.6	446.2
Senior Notes | Senior notes at 2.300%
Debt Instrument [Line Items]
Interest rate, stated percentage (as a percent)	2.30%
Long-term debt	$ 296.5	$ 296.3

XML

Debt and Financing Arrangements - Narrative (Details) - USD ($)	6 Months Ended
	Jun. 30, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Short-term debt outstanding	$ 1,800,000	$ 4,700,000
2021 Credit Facility | 2021 Credit Facility
Debt Instrument [Line Items]
Debt term (in years)	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 (as a percent)	65.00%

XML

Stock-Based Compensation - Narrative (Details)	1 Months Ended	6 Months Ended
	Feb. 28, 2023 $ / shares shares	Jun. 30, 2023 installment shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum number of shares authorized (shares)		9,700,000
Restricted Stock Awards Service Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of installments | installment		3
Shares granted (shares)	47,670
Weighted avg. grant date fair value (USD per share) | $ / shares	$ 241.17
Restricted Stock Awards Service Condition | Vesting Period One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)		33.33%
Restricted Stock Awards Service Condition | Vesting Period Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)		33.33%
Restricted Stock Awards Service Condition | Vesting Period Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)		33.33%
Stock Appreciation Rights SARS
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of installments | installment		3
Shares granted (shares)	93,779
Weighted avg. grant date fair value (USD per share) | $ / shares	$ 60.99
Award vesting period (in years)		3 years
Award, expiration period (in years)		10 years
Stock Appreciation Rights SARS | Vesting Period One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)		33.33%
Stock Appreciation Rights SARS | Vesting Period Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)		33.33%
Stock Appreciation Rights SARS | Vesting Period Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)		33.33%
Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award performance period (in years)		3 years
Performance Shares, Market Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (shares)	11,481
Weighted avg. grant date fair value (USD per share) | $ / shares	$ 279.47
Award performance period (in years)	3 years
Performance based criteria plan payout percentage, target (as a percent)	100.00%
Performance Shares, Market Condition | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based criteria plan payout percentage (as a percent)	0.00%
Performance Shares, Market Condition | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based criteria plan payout percentage (as a percent)	200.00%
Performance Shares, Performance Condition
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares granted (shares)	23,316
Weighted avg. grant date fair value (USD per share) | $ / shares	$ 230.64
Award performance period (in years)	3 years
Performance Shares, Performance Condition | Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based criteria plan payout percentage (as a percent)	0.00%
Performance Shares, Performance Condition | Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based criteria plan payout percentage (as a percent)	200.00%
Performance Shares, Vesting on Compounded Annual Growth Rate of Net Sales
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)	50.00%
Performance Shares, Vesting on Operating Profit Margin
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting percentage (as a percent)	50.00%

XML

Stock-Based Compensation - Schedule of the Weighted-Average Assumption Used in Estimating Fair Value of Stock Appreciation Rights (Details) - Stock Appreciation Rights SARS	1 Months Ended
	Feb. 28, 2023 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Dividend Yield	1.90%
Expected Volatility	28.00%
Risk Free Interest Rate	3.70%
Expected Term	4 years 10 months 24 days
Weighted Avg. Grant Date Fair Value of 1 SAR (USD per share)	$ 60.99

XML

Stock-Based Compensation - Schedule of Performance Shares, Market Condition (Details) - Performance Shares, Market Condition	1 Months Ended
	Feb. 28, 2023 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share Price (USD per share)	$ 241.17
Expected Dividend Yield	1.90%
Expected Volatility	39.40%
Risk Free Interest Rate	4.10%
Expected Term	2 years 10 months 24 days
Weighted avg. grant date fair value (USD per share)	$ 279.47

XML

Stock-Based Compensation - Schedule of Performance Shares, Performance Condition (Details) - Performance Shares, Performance Condition	1 Months Ended
	Feb. 28, 2023 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted avg. grant date fair value (USD per share)	$ 230.64
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based criteria plan payout percentage (as a percent)	0.00%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance based criteria plan payout percentage (as a percent)	200.00%