Hubbell Policies

Administration

Roles and Responsibilities. The business unit (or EXL, where applicable) is responsible for updating the reserve for credit memos and allowances on a monthly basis using the Credit Memo and Sales Allowances Reserve Template (using the model prescribed below) on a monthly basis. The business unit controller is responsible to identify when terms for allowances and/or special pricing arrangements are offered to customers that are non-standard (i.e., not consistent with terms generally offered to existing customers) and to ensure appropriate steps are taken to consider the impact to the reserve for credit memos and allowances. The business unit controller is also responsible for monitoring the aging of open deductions to ensure there has been no significant deterioration in said aging. In the event there is a significant deterioration in the aging of open deductions, the impact of this deterioration should be considered to the credit and allowance reserve.

Monitoring, Evaluation and Review. The group business controller will ensure the reserve for credit memos and allowances is reviewed prior to close on a monthly basis.

Exceptions. Any exception to this procedure, including a departure from the approved methodology (either by use of a different methodology or modification to the Credit Memo and Sales Allowances Reserve Template) must be approved by the Corporate Controller’s office.

ACCOUNTING AND DISCLOSURE

None

REPORTING

None

DEFINITIONS

None

RELATED DOCUMENTS (Policies, Guidelines, Standards) • FIN-44 Revenue Recognition Policy

VERSION

Version

Approval

Effective 2014.08.01 2019.08.15

Changes

1 2

J. Capozzoli, A. Hsieh, S. Mais J. Capozzoli, K. Lane, S. Mais

Original Issue

Conformed to new template

53