Discontinued Operations

9 Months Ended

Sep. 30, 2023

Discontinued Operations and Disposal Groups [Abstract]

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 nine months ended September 30, 2023. Income from the TSA and supply agreement for the three and nine months ended September 30, 2022 was $3.2 million and $10.8 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 September 30,				Nine Months Ended September 30,
(in millions)	2023		2022		2023		2022
Net sales	$	—	$	—	$	—	$	29.1
Cost of goods sold	—		—		—		27.7
Gross profit	—		—		—		1.4
Selling & administrative expenses	—		3.0		—		18.2
Operating loss	—		(3.0)		—		(16.8)
(Loss) gain on disposal of business	—		(7.0)		—		73.7
Other expense	—		(0.2)		—		(1.4)
(Loss) income from discontinued operations before income taxes	—		(10.2)		—		55.5
Provision for income taxes	—		1.0		—		2.6
(Loss) income from discontinued operations, net of taxes	$	—	$	(11.2)	$	—	$	52.9

(Loss) income from discontinued operations, net of taxes includes pre-tax transaction and separation costs of $3.0 million and $9.7 million for the three and nine months ended September 30, 2022, respectively, and a pre-tax (loss) gain on disposal of business of $(7.0) million and $73.7 million for the three and nine months ended September 30, 2022, respectively. The gain on disposal of business for the nine months ended September 30, 2022 includes a net working capital adjustment of $15.8 million that was cash settled in the third quarter of 2022. There were no transaction and separation costs or pre-tax gain on disposal of business in 2023.