Hubbell Policies

ASSET IMPAIRMENTS POLICY

English

Owner : Vice President, Controller

Last Review: 2023.03.31

FIN - 03

Department: Finance

POLICY

This Policy requires all business units to evaluate tangible, definite-lived and Indefinite-Lived Intangible Assets for impairment in accordance with the procedures outlined below. All assets should be reviewed for impairment when an indicator is present. Indefinite-Lived Intangible Assets are required to be reviewed for impairment annually in the second quarter.

SCOPE

This Policy applies to PP&E and Intangible Assets (other than Goodwill), including the capitalized cost of internal use software.

This Policy does not apply to Goodwill.

PURPOSE

The purpose of this Policy is to define the responsibilities of Segment Controllers and the Corporate Controllers office with regards to monitoring PP&E and Intangible Assets for potential impairment indicators and the steps that should be take when an impairment indicator is identified.

PROCEDURE

Tangible and all Intangible Assets

PP&E and Intangible A ssets that are amortized, including the capitalized cost of internal use software (“long -lived assets”) should be reviewed for impairment whenever an impairment indicator is present. An impairment indicator is an event or change in circumstance indicating that that the carrying value of the asset (or group of assets) may not be recoverable. The Segment Controller is responsible for assessing whether impairment indicators are present and to inform the Corporate Controllers office on a timely basis when an impairment indicator is identified. The Corporate Controller’s office is responsible for guiding the Segment Controller through the appropriate analysis to determine whether an impairment exists.

An impairment loss should not be recognized in the general ledger without advance approval from the Corporate Controller’s office.

Impairment indicators include, but are not limited to the following

1. A significant decrease in the market price of the asset; 2. A significant adverse change in the extent or manner in which a long-lived asset is being used or in its physical condition; 3. A significant adverse change in legal factors or in the business climate that could affect the value of a long lived asset, including an adverse action or assessment by a regulator; 4. An accumulation of costs significantly in excess of the amount originally expected for the acquisition or

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