Statement of Comprehensive Income
Comprehensive income is the change in equity (net assets) of a business enterprise during a period from transactions and other events and circumstances from non-owners sources. It includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.
Hubbell Inc., consolidated statement of comprehensive income
US$ in thousands
Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).
The financial data reveals several notable trends over the five-year period ending December 31, 2022.
- Net Income
- Net income showed general growth with fluctuations. It increased from $366.1 million in 2018 to $407.4 million in 2019, dropped to $356 million in 2020, then rebounded to $405.6 million in 2021. The most significant increase occurred in 2022, reaching $551.4 million, indicating strong profitability improvement.
- Currency Translation Adjustments
- The currency translation adjustment was negative in most years except 2020, where it was positive at $12.3 million. It moved from -$33.9 million in 2018 to -$4 million in 2019 before increasing to a positive $12.3 million in 2020. However, it reverted to negative figures in 2021 and 2022, at -$11.5 million and -$27.4 million respectively, suggesting ongoing foreign exchange volatility impacting earnings.
- Defined Benefit Pension and Post-Retirement Plans, Net of Taxes
- This item showed variability. It was positive in 2018 at $17.8 million, then negative for two years, decreasing to -$14.5 million in 2019 and -$8.8 million in 2020. The trend reversed in 2021 and 2022 with positive values of $9.2 million and $14.2 million, indicating an improving pension plan position or related financial impacts in recent years.
- Unrealized Gains (Losses) on Investments and Cash Flow Hedges, Net of Taxes
- Unrealized gains/losses on investments fluctuated around zero, with a small loss of $1.4 million in 2018, a gain of $2.6 million in 2019, then minor variations ending again with a $1.4 million loss in 2022. Unrealized gains/losses on cash flow hedges showed a similar pattern of volatility, moving from a $1.6 million gain in 2018 to a $1.3 million loss in 2019, with minor gains and losses thereafter, suggesting some exposure to market risk instruments.
- Other Comprehensive Income (Loss)
- This item remained negative or slightly positive in only one year (2020 at $3.7 million). Other years showed negative comprehensive losses ranging from -$15.9 million in 2018 to -$14.4 million in 2022, reflecting the net impact of various non-operating income/expense elements included in other comprehensive income.
- Comprehensive Income
- Comprehensive income generally followed the trend of net income, rising from $350.2 million in 2018 to $390.2 million in 2019, dipping slightly in 2020 to $359.7 million, then increasing to $404 million in 2021, and substantially to $537 million in 2022. This pattern reflects overall profitability including other comprehensive elements.
- Comprehensive Income Attributable to Noncontrolling Interest and Hubbell
- Comprehensive income attributable to noncontrolling interests was consistently negative, ranging between -$4.8 million and -$6.5 million, indicating some minority interest losses. Comprehensive income attributable to Hubbell showed substantial growth, from $344.3 million in 2018 to $531.5 million in 2022, closely tracking the overall comprehensive income trends and highlighting the parent company's improving financial position.