SIGNIFICANT ACCOUNTING POLICIES Tables

6 Months Ended

Jul. 02, 2011

Schedule of Prior Period Adjustments to Condensed Consolidated Statements

As a result of the retrospective application of this change in accounting principle, certain financial statement line items in the Company’s condensed consolidated balance sheet as of January 1, 2011, its condensed consolidated statements of income for the three and six months ended July 3, 2010, and condensed consolidated statement of cash flows for the six months ended July 3, 2010 were adjusted as presented below:



Condensed Consolidated Statements of Income	Second Quarter Ended July 3, 2010
(In thousands, except per share amounts)	As Originally						Effect of
	Reported			As Adjusted			Change
Cost of sales	$	125,950		$	125,782		$	(168	)
Operating income	18,415			18,583			168
Income taxes	5,311			5,366			55
Net income	11,338			11,451			113
Net income attributable to Franklin Electric Co., Inc.	11,022			11,135			113
Income per share:
Basic	$	0.47		$	0.48		$	0.01
Diluted	$	0.47		$	0.47		$	—

	Six Months Ended July 3, 2010
	As Originally						Effect of
	Reported			As Adjusted			Change
Cost of sales	$	235,506		$	235,170		$	(336	)
Operating income	30,801			31,137			336
Income taxes	6,013			6,123			110
Net income	18,777			19,003			226
Net income attributable to Franklin Electric Co., Inc.	18,237			18,463			226
Income per share:
Basic	$	0.79		$	0.80		$	0.01
Diluted	$	0.78		$	0.79		$	0.01

Condensed Consolidated Balance Sheet	Year Ended January 1, 2011
(In thousands)	As Originally						Effect of
	Reported			As Adjusted			Change
Inventories	$	126,007		$	140,232		$	14,225
Deferred income taxes	18,762			13,182			(5,580		)
Retained earnings	305,260			313,905			8,645

Condensed Consolidated Statement of Cash Flows	Six Months Ended July 3, 2010
(In thousands)	As Originally						Effect of
	Reported			As Adjusted			Change
Net income	$	18,777		$	19,003		$	226
Changes in assets and liabilities:
Inventories	(4,699		)	(5,035		)	(336		)
Income taxes	(860		)	(750		)	110

- Definition

Tabular disclosure of prior period adjustments to previously issued financial statements including (1) the effect of the correction on each financial statement line item and any per-share amounts affected for each prior period presented (2) the cumulative effect of the change on retained earnings or other appropriate components of equity or net assets in the statement of financial position, as of the beginning of the earliest period presented, and (3) the effect of the prior period adjustments (both gross and net of applicable income tax) on the net income of each prior period presented in the entity's annual report for the year in which the adjustments are made.

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