SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Oct. 01, 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 nine months ended October 2, 2010, and condensed consolidated statement of cash flows for the nine months ended October 2, 2010 were adjusted as presented below:



Condensed Consolidated Statements of Income	Third Quarter Ended October 2, 2010
(In thousands, except per share amounts)	As Originally						Effect of
	Reported			As Adjusted			Change
Cost of sales	$	129,138		$	128,970		$	(168	)
Operating income	19,433			19,601			168
Income taxes	4,960			5,015			55
Net income	12,472			12,585			113
Net income attributable to Franklin Electric Co., Inc.	12,219			12,332			113
Income per share:
Basic	$	0.53		$	0.53		$	—
Diluted	$	0.52		$	0.52		$	—

	Nine Months Ended October 2, 2010
	As Originally						Effect of
	Reported			As Adjusted			Change
Cost of sales	$	364,643		$	364,139		$	(504	)
Operating income	50,235			50,739			504
Income taxes	10,973			11,138			165
Net income	31,251			31,590			339
Net income attributable to Franklin Electric Co., Inc.	30,458			30,797			339
Income per share:
Basic	$	1.32		$	1.33		$	0.01
Diluted	$	1.30		$	1.31		$	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	Nine Months Ended October 2, 2010
(In thousands)	As Originally						Effect of
	Reported			As Adjusted			Change
Net income	$	31,251		$	31,590		$	339
Changes in assets and liabilities:
Inventory	(2,449		)	(2,953		)	(504		)
Income taxes	1,374			1,539			165

- 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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