Hubbell Policies

source would include comparing perpetual inventory records received from the company storing the inventory, to the business unit’s perpetual records. ADMINISTRATION Roles and Responsibilities. The business unit controller is responsible for recording the monthly reconciliation of consigned inventory, sales made by the consignee, and maintaining ownership of the applicable accounts. Monitoring, Evaluation and Review. The group controller or accounting manager is responsible for oversight of these records and for timely reconciliations of consignee records to the Company’s general ledger. Refer to the link to the Physical Inventory Count Procedure in the Related Documents section below for the company’s internal procedure for physical inventory counts. The group legal team is responsible for the review and approval of the agreement between the two parties. Exceptions. Any deviation from these procedures must be communicated to the Corporate Controllers group immediately. Any deviation from the standard Hubbell consigned inventory agreement must be approved by the group legal representative and the group controller. ACCOUNTING AND DISCLOSURE Business Use. Consignment inventory should be recorded in a manner consistent with the current business unit’s model for accounting for inventory. Consigned inventory must be recorded on the business unit’s general ledger. Any sales which occur in the course of the inventory’s consignment must be recorded net of fees delivered to the consignee. REPORTING The Corporate accounting group will be responsible for quarterly and annual reporting on consigned inventory, if material to the consolidated financial statements. DEFINITIONS Consignee shall mean agent utilized to maintain physical possession of business unit goods until title officially passes. Consignor shall mean the business unit who has designated the inventory to Consignee. Inventory shall mean the aggregate of those items of tangible personal property that have any of the following characteristics: a. Held for sale in the ordinary course of business b. In process of production for such sale c. To be currently consumed in the production of goods or services to be available for sale. RELATED DOCUMENTS (Policies, Guidelines, Standards) • FIN 34 - Physical Inventory Policy Costs associated with shipping the inventory to the third party should not be capitalized to inventory.

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