FRANKLIN ELECTRIC CO INC
For the period ended Jun 30, 2024. Filed Jul 26, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 26, 2024
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Segment and Geographic Information
- SEGMENT AND GEOGRAPHIC INFORMATION
The accounting policies of the operating segments are the same as those described in Note 1 of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. Revenue is recognized based on the invoice price at the point in time when the customer obtains control of the product, which is typically upon shipment to the customer. The Water and Fueling segments include manufacturing operations and supply certain components and finished goods, both between segments and to the Distribution segment. The Company reports these product transfers between Water and Fueling as inventory transfers as a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Company reports intersegment transfers from Water to Distribution as intersegment revenue at market prices to properly reflect the commercial arrangement of vendor to customer that exists between the Water and Distribution segments.
Segment operating income is a key financial performance measure. Operating income by segment is based on net sales less identifiable operating expenses and allocations and includes profits recorded on sales to other segments of the Company.
Financial information by reportable business segment is included in the following summary:
| Second Quarter Ended | Six Months Ended | |||
|---|---|---|---|---|
| (In millions) | June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 |
| Net sales | ||||
| Water Systems | ||||
| External sales | ||||
| United States & Canada | $157.7 | $176.8 | $295.7 | $336.2 |
| Latin America | 41.8 | 42.0 | 83.1 | 82.3 |
| Europe, Middle East & Africa | 56.0 | 54.6 | 108.3 | 105.0 |
| Asia Pacific | 24.2 | 22.2 | 44.4 | 41.0 |
| Intersegment sales | ||||
| United States & Canada | 35.9 | 26.1 | 70.7 | 63.8 |
| Total sales | 315.6 | 321.7 | 602.2 | 628.3 |
| Distribution | ||||
| External sales | ||||
| United States & Canada | 190.5 | 193.1 | 337.5 | 336.1 |
| Intersegment sales | — | — | — | — |
| Total sales | 190.5 | 193.1 | 337.5 | 336.1 |
| Fueling Systems | ||||
| External sales | ||||
| United States & Canada | 58.4 | 60.4 | 105.1 | 114.4 |
| All other | 14.7 | 20.0 | 30.1 | 38.7 |
| Intersegment sales | — | — | — | — |
| Total sales | 73.1 | 80.4 | 135.2 | 153.1 |
| Intersegment Eliminations/Other | (35.9) | (26.1) | (70.7) | (63.8) |
| Consolidated | $543.3 | $569.1 | $1,004.2 | $1,053.7 |
| Second Quarter Ended | Six Months Ended | |||
| June 30, 2024 | June 30, 2023 | June 30, 2024 | June 30, 2023 | |
| Operating income/(loss) | ||||
| Water Systems | $62.3 | $50.8 | $109.5 | $99.8 |
| Distribution | 9.8 | 17.8 | 11.7 | 22.5 |
| Fueling Systems | 26.0 | 26.7 | 44.8 | 47.5 |
| Intersegment Eliminations/Other | (19.0) | (14.4) | (38.9) | (36.3) |
| Consolidated | $79.1 | $80.9 | $127.1 | $133.5 |
| June 30, 2024 | December 31, 2023 | |
|---|---|---|
| Total assets | ||
| Water Systems | $1,056.5 | $1,044.4 |
| Distribution | 415.5 | 365.6 |
| Fueling Systems | 259.5 | 256.4 |
| Other | 52.8 | 61.7 |
| Consolidated | $1,784.3 | $1,728.1 |
Other Assets are generally Corporate assets that are not allocated to the segments and are comprised primarily of cash and property, plant and equipment.
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