FRANKLIN ELECTRIC CO INC
For the period ended Dec 31, 2024. Filed Feb 21, 2025.
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FY2024 · Filed Feb 21, 2025
FELE$97.72+0.8%Stored close · as of Nov 10, 2026
Extracted filing text, with the paragraph anchors used by the comparison.
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Item 8. Financial Statements and Supplementary Data
CONSOLIDATED STATEMENTS OF INCOME
| (In thousands, except per share amounts) | 2024 | 2023 | 2022 |
|---|---|---|---|
| Net sales | $2,021,341 | $2,065,133 | $2,043,711 |
| Cost of sales | 1,304,061 | 1,368,125 | 1,352,276 |
| Gross profit | 717,280 | 697,008 | 691,435 |
| Selling, general, and administrative expenses | 470,136 | 433,476 | 432,076 |
| Restructuring expense | 3,499 | 1,091 | 2,170 |
| Operating income | 243,645 | 262,441 | 257,189 |
| Interest expense | (6,319) | (11,790) | (11,525) |
| Other income/(expense), net | 1,339 | 3,696 | (3,201) |
| Foreign exchange expense | (6,818) | (12,124) | (7,236) |
| Income before income taxes | 231,847 | 242,223 | 235,227 |
| Income tax expense | 50,238 | 47,489 | 46,416 |
| Net income | $181,609 | $194,734 | $188,811 |
| Less: Net income attributable to noncontrolling interests | (1,300) | (1,462) | (1,479) |
| Net income attributable to Franklin Electric Co., Inc. | $180,309 | $193,272 | $187,332 |
| Earnings per share: | |||
| Basic | $3.92 | $4.17 | $4.02 |
| Diluted | $3.86 | $4.11 | $3.97 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
| (In thousands) | 2024 | 2023 | 2022 |
|---|---|---|---|
| Net income | $181,609 | $194,734 | $188,811 |
| Other comprehensive income/(loss), before tax: | |||
| Foreign currency translation adjustments | (35,879) | 12,026 | (11,809) |
| Employee benefit plan activity: | |||
| Net gain/(loss) arising during period | 1,492 | (4,449) | 6,660 |
| Amortization arising during period | 2,282 | 2,148 | 5,828 |
| Other comprehensive income/(loss) | (32,105) | 9,725 | 679 |
| Income tax benefit/(expense) related to items of other comprehensive income/(loss) | (938) | 643 | (3,647) |
| Other comprehensive income/(loss), net of tax | (33,043) | 10,368 | (2,968) |
| Comprehensive income | 148,566 | 205,102 | 185,843 |
| Less: Comprehensive income attributable to noncontrolling interests | (1,146) | (1,496) | (1,378) |
| Comprehensive income attributable to Franklin Electric Co., Inc. | $147,420 | $203,606 | $184,465 |
CONSOLIDATED BALANCE SHEETS
| (In thousands, except per share amounts) | 2024 | 2023 |
|---|---|---|
| ASSETS | ||
| Current assets: | ||
| Cash and cash equivalents | $220,540 | $84,963 |
| Receivables, less allowances of $3,547 and $3,594, respectively | 226,826 | 222,418 |
| Inventories: | ||
| Raw material | 160,875 | 176,706 |
| Work-in-process | 24,997 | 26,880 |
| Finished goods | 298,003 | 305,110 |
| Total inventories | 483,875 | 508,696 |
| Other current assets | 32,950 | 37,718 |
| Total current assets | 964,191 | 853,795 |
| Property, plant, and equipment, at cost: | ||
| Land and buildings | 161,860 | 167,028 |
| Machinery and equipment | 316,454 | 316,227 |
| Furniture and fixtures | 58,300 | 56,997 |
| Other | 67,004 | 59,747 |
| Property, plant, and equipment, gross | 603,618 | 599,999 |
| Less: Allowance for depreciation | (380,052) | (370,260) |
| Property, plant, and equipment, net | 223,566 | 229,739 |
| Lease right-of-use assets, net | 62,637 | 57,014 |
| Deferred income taxes | 8,210 | 8,758 |
| Intangible assets, net | 212,973 | 230,027 |
| Goodwill | 338,501 | 342,404 |
| Other assets | 10,528 | 6,385 |
| Total assets | $1,820,606 | $1,728,122 |
| LIABILITIES AND EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $157,046 | $152,419 |
| Accrued expenses and other current liabilities | 119,771 | 100,249 |
| Current lease liability | 18,878 | 17,316 |
| Income taxes | 20,218 | 4,700 |
| Current maturities of long-term debt and short-term borrowings | 117,814 | 12,355 |
| Total current liabilities | 433,727 | 287,039 |
| Long-term debt | 11,622 | 88,056 |
| Long-term lease liability | 43,304 | 38,549 |
| Income taxes payable non-current | — | 4,837 |
| Deferred income taxes | 10,193 | 29,461 |
| Employee benefit plans | 29,808 | 35,973 |
| Other long-term liabilities | 22,118 | 33,914 |
| Commitments and contingencies (see Note 7) | ||
| Redeemable noncontrolling interest | 1,224 | 1,145 |
| Shareholders’ equity: | ||
| Common stock (65,000 shares authorized, $0.10 par value) outstanding (45,716 and 46,067, respectively) | 4,571 | 4,607 |
| Additional paid-in capital | 363,956 | 344,717 |
| Retained earnings | 1,151,575 | 1,078,512 |
| Accumulated other comprehensive loss | (254,003) | (221,114) |
| Total shareholders’ equity | 1,266,099 | 1,206,722 |
| Noncontrolling interest | 2,511 | 2,426 |
| Total equity | 1,268,610 | 1,209,148 |
| Total liabilities and equity | $1,820,606 | $1,728,122 |
CONSOLIDATED STATEMENTS OF CASH FLOWS
| (In thousands) | 2024 | 2023 | 2022 |
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net income | $181,609 | $194,734 | $188,811 |
| Adjustments to reconcile net income to net cash flows from operating activities: | |||
| Depreciation and amortization | 56,073 | 52,260 | 50,374 |
| Non-cash lease expense | 21,438 | 18,852 | 17,406 |
| Share-based compensation | 12,061 | 10,133 | 10,973 |
| Deferred income taxes | (19,648) | (1,609) | (1,230) |
| (Gain)/Loss on disposals of plant and equipment | (497) | (256) | 1,285 |
| Foreign exchange expense | 6,818 | 12,124 | 7,236 |
| Changes in assets and liabilities, net of acquisitions: | |||
| Receivables | (17,045) | 19,150 | (44,800) |
| Inventory | 10,889 | 48,176 | (101,080) |
| Accounts payable and accrued expenses | 15,285 | (23,085) | (12,283) |
| Operating leases | (21,129) | (18,874) | (17,406) |
| Income taxes | 15,755 | (1,524) | (679) |
| Income taxes-U.S. Tax Cuts and Jobs Act | (3,870) | (2,902) | (355) |
| Employee benefit plans | 466 | 1,458 | 3,488 |
| Other, net | 3,148 | 7,073 | (66) |
| Net cash flows from operating activities | 261,353 | 315,710 | 101,674 |
| Cash flows from investing activities: | |||
| Additions to property, plant, and equipment | (41,682) | (41,415) | (41,903) |
| Proceeds from sale of property, plant, and equipment | 1,182 | 1,494 | 6 |
| Cash paid for acquisitions, net of cash acquired | (5,201) | (34,831) | (1,186) |
| Other, net | 73 | 463 | 9 |
| Net cash flows from investing activities | (45,628) | (74,289) | (43,074) |
| Cash flows from financing activities: | |||
| Proceeds from issuance of debt | 309,747 | 443,217 | 477,558 |
| Repayments of debt | (280,512) | (558,746) | (448,622) |
| Proceeds from issuance of common stock | 7,204 | 9,193 | 3,859 |
| Purchases of common stock | (61,041) | (43,332) | (40,490) |
| Dividends paid | (46,876) | (41,723) | (36,991) |
| Deferred payments for acquisitions | (2,591) | (802) | (3,786) |
| Net cash flows from financing activities | (74,069) | (192,193) | (48,472) |
| Effect of exchange rate changes on cash and cash equivalents | (6,079) | (10,055) | (4,874) |
| Net change in cash and cash equivalents | 135,577 | 39,173 | 5,254 |
| Cash and cash equivalents at beginning of period | 84,963 | 45,790 | 40,536 |
| Cash and cash equivalents at end of period | $220,540 | $84,963 | $45,790 |
| Cash paid for income taxes, net of refunds | $58,024 | $55,120 | $48,335 |
| Cash paid for interest | $6,423 | $12,115 | $11,209 |
| Non-cash items: | |||
| Additions to property, plant, and equipment, not yet paid | $1,748 | $2,229 | $628 |
| Lease right-of-use assets obtained in exchange for new operating lease liabilities | $30,796 | $25,899 | $17,599 |
| Payable to sellers of acquired entities | $1,750 | $7,027 | $354 |
| Payable for share repurchases | $— | $— | $1,083 |
| Non-cash investment to acquire property in lieu of cash payment for products provided | $— | $419 | $— |
| Accrued dividends payable to noncontrolling interests | $961 | $821 | $— |
CONSOLIDATED STATEMENTS OF EQUITY
| Total Shareholders’ Equity | |||||||
|---|---|---|---|---|---|---|---|
| (In thousands) | Common SharesOutstanding | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | NoncontrollingInterest | Redeemable Noncontrolling Interest |
| Balance as of year-end 2021 | 46,483 | $4,648 | $310,617 | $859,817 | $(228,581) | $2,161 | $(19) |
| Net Income | — | — | — | 187,332 | — | 857 | 622 |
| Currency translation adjustment | — | — | — | — | (11,708) | (118) | 17 |
| Pension and other post retirement plans, net of tax expense $3,647 | — | — | — | — | 8,841 | — | — |
| Dividends on common stock ($0.78/share) | — | — | — | (36,367) | — | — | — |
| Dividend to noncontrolling interest | — | — | — | — | — | (624) | — |
| Common stock issued | 90 | 9 | 3,850 | — | — | — | — |
| Share-based compensation | 136 | 14 | 10,959 | — | — | — | — |
| Common stock repurchased | (516) | (52) | — | (41,521) | — | — | — |
| Balance as of year-end 2022 | 46,193 | $4,619 | $325,426 | $969,261 | $(231,448) | $2,276 | $620 |
| Net Income | — | — | — | 193,272 | — | 935 | 527 |
| Currency translation adjustment | — | — | — | — | 11,992 | 36 | (2) |
| Pension and other post retirement plans, net of tax benefit $643 | — | — | — | — | (1,658) | — | — |
| Dividends on common stock ($0.90/share) | — | — | — | (41,723) | — | — | — |
| Dividend to noncontrolling interest | — | — | — | — | — | (821) | — |
| Common stock issued | 216 | 22 | 9,171 | — | — | — | — |
| Share-based compensation | 131 | 13 | 10,120 | — | — | — | — |
| Common stock repurchased | (473) | (47) | — | (42,298) | — | — | — |
| Balance as of year-end 2023 | 46,067 | $4,607 | $344,717 | $1,078,512 | $(221,114) | $2,426 | $1,145 |
| Net Income | — | — | — | 180,309 | — | 1,193 | 107 |
| Currency translation adjustment | — | — | — | — | (35,725) | (147) | (7) |
| Pension and other post retirement plans, net of tax expense $938 | — | — | — | — | 2,836 | — | — |
| Dividends on common stock ($1.00/share) | — | — | — | (46,020) | — | — | — |
| Dividend to noncontrolling interest | — | — | — | — | — | (961) | (21) |
| Common stock issued | 153 | 15 | 7,189 | — | — | — | — |
| Share-based compensation | 119 | 11 | 12,050 | — | — | — | — |
| Common stock repurchased | (623) | (62) | — | (61,226) | — | — | — |
| Balance as of year-end 2024 | 45,716 | $4,571 | $363,956 | $1,151,575 | $(254,003) | $2,511 | $1,224 |
INDEX TO NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
| Page Number | ||
|---|---|---|
| Note 1. | Summary of Significant Accounting Policies | 28 |
| Note 2. | Accounting Pronouncements | 32 |
| Note 3. | Acquisitions | 32 |
| Note 4. | Goodwill and Other Intangible Assets | 34 |
| Note 5. | Accrued Expense and Other Current Liabilities | 34 |
| Note 6. | Debt | 35 |
| Note 7. | Commitments and Contingencies | 36 |
| Note 8. | Shareholders' Equity | 38 |
| Note 9. | Accumulated Other Comprehensive Income/(Loss) | 41 |
| Note 10. | Employee Benefit Plans | 41 |
| Note 11. | Income Taxes | 46 |
| Note 12. | Earnings per Share | 49 |
| Note 13. | Financial Instruments | 49 |
| Note 14. | Fair Value Measurements | 50 |
| Note 15. | Segment and Geographic Information | 51 |
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