Discontinued Operations

12 Months Ended

Dec. 31, 2021

Discontinued Operations and Disposal Groups [Abstract]

On October 26, 2021, Hubbell entered into a definitive agreement to sell its Commercial and Industrial Lighting business to GE Current, a Daintree company, for a cash purchase price of $350 million, subject to customary adjustments with respect to working capital and net indebtedness. We have concluded the divestiture of this business represents a strategic shift that will have a major effect on our operations and financial results, and as a result, is reported as a discontinued operation in our Consolidated Financial Statements for all periods presented. The assets and liabilities of this business are also presented as held for sale in the Consolidated Balance Sheets. The Commercial and Industrial Lighting business was previously included in the Electrical Solutions segment.

On February 1, 2022 we completed the sale of the Commercial and Industrial Lighting business to GE Current. Under the terms of the transaction, Hubbell and the buyer entered into a short-term supply agreement whereby the Company will act as a supplier of finished goods and component parts to the Commercial and industrial Lighting business.

The following table presents the summarized components of income from discontinued operations, net of income taxes, for the Commercial and Industrial Lighting business:


	Year Ended December 31,
(in millions)	2021		2020		2019
Net sales	$	509.4	$	503.5	$	644.5
Cost of goods sold	403.4		385.6		469.4
Gross profit	106.0		117.9		175.1
Selling & administrative expenses	88.5		85.1		111.2
Operating income	17.5		32.8		63.9
Other expense	(4.1)		(4.0)		(12.7)
Income from discontinued operations before income taxes	13.4		28.8		51.2
(Benefit) provision for income taxes	(21.1)		7.6		11.8
Income from discontinued operations, net of taxes	$	34.5	$	21.2	$	39.4

Income from discontinued operations, net of taxes for the year ended December 31, 2021 includes pre-tax transaction and separation costs of $7.0 million and a one-time tax benefit of $25.1 million related to book-to-tax basis differences of the business.

The following table presents balance sheet information for assets and liabilities held for sale:


	At December 31,
(in millions)	2021		2020
Cash and cash equivalents	$	0.7	$	1.0
Accounts receivable	83.1		81.3
Inventories, net	89.8		80.6
Other current assets	5.9		5.0
Assets held for sale - current	$	179.5	$	167.9
Property, Plant, and Equipment, net	77.7		80.4
Goodwill	50.2		50.2
Other Intangible assets, net	37.3		40.0
Other long-term assets	11.9		13.5
Assets held for sale - non-current	$	177.1	$	184.1
Accounts payable	50.2		38.8
Accrued salaries, wages and employee benefits	8.5		7.1
Accrued insurance	3.9		4.4
Other accrued liabilities	28.7		29.4
Liabilities held for sale - current	$	91.3	$	79.7
Other Non-Current Liabilities	18.8		17.8
Liabilities held for sale - non-current	$	18.8	$	17.8