2008 Annual Report - Hubbell Wiring Device-Kellems

More documents

Recommendations

Info

HUBBELL INCORPORATED AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)Stock option activity for the year ended December 31, 2008 is set forth below (in thousands, except per shareamounts):Number ofSharesWeighted AverageExercise PriceWeightedAverageRemainingContractualTermAggregateIntrinsicValueOutstanding at December 31, 2007 . . . . . . 3,180 $39.73Exercised .......................... (259) 37.15Forfeited ........................... — —Canceled ........................... (144) 42.71Outstanding at December 31, 2008 . . . . . . 2,777 $39.82 4.5 years $2.8Exercisable at December 31, 2008 ....... 2,777 $39.82 4.5 years $2.8The aggregate intrinsic value of stock option exercises during 2008, 2007 and 2006 was $2.2 million,$19.9 million and $16.9 million, respectively.Cash received from option exercises were $8.1 million, $48.0 million and $38.5 million for 2008, 2007 and2006, respectively. The Company recorded a realized tax benefit from equity-based awards of $0.8 million,$6.9 million and $6.0 million for the periods ended December 31, 2008, 2007 and 2006, respectively, which havebeen included in Cash Flows From Financing Activities in the Consolidated Statement of Cash Flows as prescribedby SFAS No. 123(R).The Company elected to adopt the shortcut method for determining the initial pool of excess tax benefitsavailable to absorb tax deficiencies related to stock-based compensation subsequent to the adoption ofSFAS No. 123(R) in accordance with the provisions of FASB Staff Position No. 123(R)-3, “Transition ElectionRelated to Accounting for Tax Effect of Share-Based Payment Awards”. The shortcut method included simplifiedprocedures to establish the beginning balance of the pool of excess tax benefits (the “APIC Tax Pool”) and todetermine the subsequent effect on the APIC Tax Pool and Consolidated Statement of Cash Flows of the effects ofemployee stock-based compensation awards.Note 19 — Earnings Per ShareThe following table sets forth the computation of earnings per share for the three years ended December 31, (inmillions, except per share amounts):2008 2007 2006Net Income ............................................. $222.7 $208.3 $158.1Weighted average number of common shares outstanding during theperiod ............................................... 56.0 58.8 60.4Potential dilutive shares. ................................... 0.5 0.7 0.7Average number of shares outstanding (diluted) .................. 56.5 59.5 61.1Earnings per share:Basic ............................................... $ 3.97 $ 3.54 $ 2.62Diluted .............................................. $ 3.94 $ 3.50 $ 2.59Certain stock-based awards were not included in the full year computation of earnings per dilutive sharebecause the effect would be anti-dilutive. Anti-dilutive stock options and restricted shares excluded from the70
computation of earnings per dilutive share were 1.6 million, 0.4 million, and 0.7 million, at December 31, 2008,2007 and 2006, respectively. Additionally, the Company had 1.3 million, 1.3 million and 1.0 million of stockappreciation rights, respectively, which were also excluded as the effect would be anti-dilutive at December 31,2008, 2007 and 2006.Note 20 — Accumulated Other Comprehensive (Loss) IncomeThe following table reflects the accumulated balances of other comprehensive (loss) income (in millions):Pension/OPEBAdjustmentCumulativeTranslationAdjustmentUnrealized Gain(Loss) onInvestmentsCash FlowHedgingGain (Loss)AccumulatedOtherComprehensiveIncome (Loss)Balance at December 31, 2005 ..... $ (4.1) $ (5.4) $(0.3) $(1.0) $ (10.8)2006 activity .................. (34.7) 12.4 0.3 0.4 (21.6)Balance at December 31, 2006 ..... (38.8) 7.0 — (0.6) (32.4)2007 activity .................. 44.9 14.1 0.2 (0.8) 58.4Balance at December 31, 2007 ..... 6.1 21.1 0.2 (1.4) 26.02008 activity .................. (92.1) (53.7) — 3.0 (142.8)Balance at December 31, 2008 ..... $(86.0) $(32.6) $ 0.2 $ 1.6 $(116.8)The pension liability adjustment for 2006 includes the reversal of a minimum pension liability of $2.1 millionand a charge of $36.8 million related to the adoption of SFAS No. 158.Note 21 — Industry Segments and Geographic Area InformationNature of OperationsHUBBELL INCORPORATED AND SUBSIDIARIESNOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)Hubbell Incorporated was founded as a proprietorship in 1888, and was incorporated in Connecticut in 1905.Hubbell designs, manufactures and sells quality electrical and electronic products for a broad range of nonresidentialand residential construction, industrial and utility applications. Products are either sourced complete,manufactured or assembled by subsidiaries in the United States, Canada, Switzerland, Puerto Rico, the People’sRepublic of China, Mexico, Italy, the United Kingdom, Brazil and Australia. Hubbell also participates in jointventures in Taiwan and the People’s Republic of China, and maintains sales offices in Singapore, the People’sRepublic of China, Mexico, South Korea and the Middle East.During the first quarter of 2008, the Company realigned its internal organization and operating segments. Thisreorganization included combining the electrical products business (included in the Electrical segment) and theindustrial technology business (previously its own reporting segment) into one operating segment. This combinedoperating segment is part of the Electrical reporting segment. Effective for the first quarter of 2008, the Company’sreporting segments consist of the Electrical segment and the Power segment. Previously reported data has beenrestated to reflect this change.In December 2008, a decision was made to further consolidate the businesses within the Electrical segment.The wiring products and electrical products businesses were combined to form the electrical systems business. Thecombination of these two businesses did not have an impact on the Company’s reporting segments.The Electrical segment is comprised of businesses that sell stock and custom products including standard andspecial application wiring device products, rough-in electrical products and lighting fixtures and controls, and otherelectrical equipment. The products are typically used in and around industrial, commercial and institutionalfacilities by electrical contractors, maintenance personnel, electricians, and telecommunications companies. Inaddition, certain businesses design and manufacture a variety of high voltage test and measurement equipment,71
Page 1 and 2:
P O S I T I O N E D F O R T O D A Y
Page 3 and 4:
2008 SALESby Segmentby GeographyPow
Page 5 and 6:
The success of “today” position
Page 7 and 8:
POSITIONED FOR TODAYby consistently
Page 9 and 10:
POWER SEGMENTBrand recognition and
Page 11 and 12:
DRIVINGPERFORMANCETHROUGHPRODUCTIVI
Page 13 and 14:
KURT VERSEN INC,ACQUIRED IN JANUARY
Page 15 and 16:
13THE LIGHTING SOLUTIONSLAB AT HUBB
Page 17 and 18:
THE FUTURE ISELECTRIC WITHOPPORTUNI
Page 19:
OFFSHORE OIL RIGS AREJUST ONE OF MA
Page 23 and 24:
HUBBELL INCORPORATEDANNUAL REPORT O
Page 25 and 26:
The Company’s annual report on Fo
Page 27 and 28:
Commercial/Institutional and Indust
Page 29 and 30:
Haefely Test, AG based in Switzerla
Page 31 and 32:
A global recession and continued wo
Page 33 and 34:
Item 2. PropertiesHubbell’s manuf
Page 35 and 36:
Name. Age(1) Present Position Busin
Page 37 and 38:
Purchases of Equity SecuritiesIn Fe
Page 39 and 40:
Item 6.Selected Financial DataThe f
Page 41 and 42: • Revenue GrowthOrganic Growth. I
Page 43 and 44: the 2007 rate related to the closin
Page 45 and 46: one in 2007 as well as a higher amo
Page 47 and 48: management, production planning and
Page 49 and 50: Although these facilities are not t
Page 51 and 52: offer retiree medical benefits to a
Page 53 and 54: overhead, maintenance and training
Page 55 and 56: • Changes in strategy, economic c
Page 57 and 58: Item 8.Financial Statements and Sup
Page 59 and 60: REPORT OF INDEPENDENT REGISTERED PU
Page 61 and 62: HUBBELL INCORPORATED AND SUBSIDIARI
Page 65 and 66: Foreign Currency TranslationThe ass
Page 67 and 68: measurement attribute for the finan
Page 81 and 82: Note 12 — DebtHUBBELL INCORPORATE
Page 87 and 88: Note 17 — Capital StockHUBBELL IN
Page 91: HUBBELL INCORPORATED AND SUBSIDIARI
Page 95 and 96: Industry Segment DataHUBBELL INCORP
Page 99 and 100: Item 11.Item 12.Executive Compensat
Page 101 and 102: NumberDescription10h† Hubbell Inc
Page 103 and 104: NumberDescription31.1* Certificatio
Page 105 and 106: Schedule IIHUBBELL INCORPORATED AND
Page 107 and 108: Exhibit 31.1I, Timothy H. Powers, c
Page 109 and 110: Exhibit 32.1CERTIFICATION PURSUANT
Page 111 and 112: BOARD OF DIRECTORSE. RICHARD BROOKS
Page 113 and 114: CORPORATEOFFICERSTIMOTHY H. POWERSC
show all

2008 Annual Report - Hubbell Wiring Device-Kellems

Create successful ePaper yourself

Delete template?

Save as template?