franklin electric co., inc. (fele)

Washington, D. C. Securities and Exchange CommissionC.
20549___ form month-
According to section 13th or 15, the annual report of K (d)
According to Section 13 or 15, the Securities Trading Act for Fiscal Year 34 of 19, the ORo transition report for 2015 (d)
Securities trading law for the transition period from ___ to ___ Commission file number 0-1934
362 Franklin Electric, INC. (
The exact name of the registrant specified in the articles of association)Indiana35-0827455(
State or other jurisdiction registered or organized)(I. R. S.
Employer identity number)
9255 gayverdale Road, Fort Wayne, India
Main executive office address)(Zip Code)(260)824-2900(
Registrant phone number, including area code)
Securities registered under article 12 (b)
Bill: $0 common stock.
Select markets worldwide (
Topics of each class)(
Name of each exchange registered)
Securities registered under article 12 (g)
The bill: None (
Topics of each class)
Indicate by check mark whether the registrant is a well
Well-known experienced issuers as defined in Rule 405 of the Securities Act.
YESoNOxIndicate indicates by check mark that if the registrant does not need to submit a report under Section 13 or section 15 (d)of the Act.
Indicate the registrant by checking the mark (1)
All reports requested by Article 13 or 15 have been submitted (d)
Securities Trading Act of 1934 within the first 12 months (
Or a short period of time required for the registrant to submit such reports), and (2)
This filing requirement has been bound for the last 90 days.
Whether or not the person with the YESxNOoIndicate check mark is also submitted electronically and posted on its company website (if any), each interactive data file is required to be submitted and is subject to article 405th S-T (Section 232.
This Chapter 405)
Within the first 12 months (
Or in such a short time that the registrant is required to submit and publish these documents).
Yesxnoo indicates by check mark whether the declaration of arrears has been disclosed in accordance with section S-405 of the regulationsK (Section 229.
This Chapter 405)
As the registrant is aware, it is not included here and will not be included in the final proxy or information statement referenced in Part 3 of this form --
K or any amendments to this form 10K.
O indicate whether the registrant is a large accelerated filer, non-accelerated filer by checking the mark
A smaller reporting company.
See the definition of \"large accelerated file manager\", \"accelerated file manager\" and \"small Reporting Company\" in rule 12b
2 of the Trading Act.
Big acceleration filerxaccelated FileroNon-
Indicate whether the registrant is a shell company by checking the mark (
Defined in Rule 12b-2 of the Act).
Total market value of common stock held by YESoNOxThe non-registrant
Affiliates of registrants atJune27, 2014 (
Registrant recently completed the last working day of the second quarter)
$1,886,201,527.
As reported by the NASDAQ Global Select Market, the stock price used in this calculation is the last selling price of the day.
For the purposes of this calculation, the registrant excludes the shares held by the registrant\'s executive officer and director, including the restricted shares, except for the shares held by the executive officer through 401 of the registrant (k)Plan.
Determination of non-shareholder shareholding
The affiliate was established only in response to this request and the registrant is not bound by this decision for any other purpose.
Number of shares of outstanding common stock 19,2015: 47,544,617 stock documents, merged by the reference part of the proxy statement of the shareholders\' meeting of 2015 (Part III).
Franklin Electric, INC.
Part 1 of the content table. NumberItem 1. Business 1A.
Risk factor 1B.
Unresolved employee reviews 2.
Property item month.
Legal action 4.
Supplementary project-mine safety
Administrative personnel in the second part. Item 5.
Market for registrant common stock, related shareholder matters and issuer to purchase equity securities
Selected Financial Data Items 7.
Management Discussion and Analysis of operational financial status and results
Quantitative and qualitative disclosure of market risks
Financial statements and supplementary data items 9.
Changes and disagreements with accountants on accounting and financial disclosure project 9A.
Control and procedure 9B.
Part Three. Item 10.
Project 11 directors, executive officers and corporate governance.
Item 12 of administrative compensation.
Secured ownership of certain beneficial owners and management and related shareholders.
Relationship with directors and related transactions.
The fourth part is the main accounting expenses and services. Item 15.
Attachment, financial statement schedule, attachment, index section, IITEM 1.
Franklin Electric Co. , Ltd. , Inc.
The Indiana Company was established in 1944 and was established in 1946.
\"Franklin Electric\" or \"Company\" shall refer to Franklin Electric Company unless otherwise required by the context, Inc.
And its merged subsidiaries.
The company is mainly composed of diving motors, pumps, electronic controls and related parts and equipment to design, manufacture and distribute water and fuel pump systems.
According to the main terminal market served, the company\'s business consists of two reporting parts: the water system part and the fuel system part.
The company includes undistributed company expenses in the \"other\" section representing the company, as well as in the water system and refueling system section.
Over the past few years, the company has taken advantage of their knowledge of customer needs and technical solutions for extracting groundwater and hydrocarbon liquids from oil and gas wells to enter the labor promotion market.
Innovative and superior quality provides the means to successfully install additional test units in North America, China, India and Africa in 2014.
The preliminary results provided an opportunity for these countries to continue their operations in 2015.
The company\'s products are sold all over the world.
The company\'s products are sold by the employee sales team and an independent manufacturing representative.
The company provides normal and customary trade terms to its customers, not a large part of which is extended.
Special inventory requirements are not required, and the customer\'s return of goods does not exceed the normal warranty.
The market competition for the company\'s products is fierce, including diversified customers by size and type.
The company\'s water system and refueling system products and related equipment are sold to professional dealers and some original equipment manufacturers ("OEMs")
As well as dealers of industrial and petroleum equipment and major oil and utility companies.
Note 18 to Consolidated Financial Statements \"segment and geographic information\" shows business and product segments and geographic information.
Water system split water system is a global leader in the production and marketing of water pump systems and a technical leader in diving motors, pumps, drives, electronic control and monitoring equipment.
The water system department designs, manufactures and sells motors, pumps, electronic controls and related components and equipment primarily for groundwater, wastewater and fuel transfer applications.
Water system motors and pumps are mainly used to pump fresh water and wastewater in various residential, agricultural and industrial applications.
The water system also manufactures electronic drives and controllers for motors for control functions and provides protection against various hazards such as surge, overpower
Heat, or dry well or tank.
The water system business has grown from domestic diving motor manufacturers to global manufacturers of water and automotive fuel mobile systems and components.
From the source to the present, the highlights of the water system business transformation are as follows: 1950
Domestic diving motor manufacturers
Global manufacturer of diving motors, electronic drives and controllers
Start to change the business model including water pumps and sell directly to wholesale dealers.
Acquisition of the American giant pump company, the addition of adjacent pump systems
Pump brand acquired (Pty)
South Africa Limited-
Continued global expansion and acquisition of SAFAS Schneider SA
International acquisition, vertical, United Statesp. A. , Italy2011 -
International procurement, Impo motor Pompa Sanayi ve Ticaret a. s. S. , Turkey2012 -
Acquisition the pioneer pump holding limited the company mobile pumping system the company about 70% of most equity(\"PPH\")
, An American company with subsidiaries in the UK and South Africa 12014-
International Sourcing Bombas Leao S. A.
Pluga pumps and motors Private Limited, a majority stake of about 70%, sells IndiaWater Systems products in a competitive market.
Water systems compete in each target market based on product design, product and service quality, performance, availability and price.
The company\'s main competitor in the specialty aquatic products industry is grant management, Pentair, Inc.
And Xylem, Inc.
2014 expenditure on research and development of water systems is mainly related to the following activities: electronic drive and control, including redesigned dive non with mobile application connection
Clogged pumps for sewage, irrigation and general sewage removal
Improve watering efficiency for multiple vertical applications
Stage pump 400 booster system segment refueling system with integrated electronic control diving motor technology refueling system is a global leader in the production and marketing of fuel pump systems, fuel containment systems, monitoring and control systems.
The refueling system department mainly designs, manufactures and sells pumps, pipelines, sumps, accessories, steam recovery components, electronic control, monitoring equipment and related components and equipment that are mainly used for diving refueling system applications
Fueling Systems has expanded its product range through in-house development and acquisition.
The highlights of the history of the refueling system are as follows: 1990 s-
S2000-domestic manufacturer of submersible turbine pumping system-
Acquired Advanced Polymer Technology Company
, An underground pipeline manufacturer for refueling applications, and EBW
Manufacturers and distributors of refueling hardware components
Acquired Healy Systems.
Manufacturer of refueling nozzles and steam recovery systems
Acquired PetroTechnik Limited, a UK distributor that designs and purchases flexible and lightweight underground pipelines
Acquired Flexing, Inc.
, Refueling equipment manufacturer including stainless steel hose connector
In India Wadcorpp India Private Limited received a majority interest of about 65%, the company is the distributor of refueling equipment refueling system products, in the competitive market sales.
Refueling systems compete in each target market based on product design, product and service quality, performance, availability and price.
The company\'s main competitors in the oil equipment industry are Danah and Dover.
2014 research and development expenditures for refueling systems are mainly related to the following activities: pumping and containment systems for diesel exhaust fluids (DEF)
Distribution Overflow Prevention valve for monitoring filling of underground tank new probe and sensor for fuel management monitoring automatic tank high low penetration containment hose software enhancement and containment hose products provide R & D enhancement company as follows :(In millions)
201420132012 R & D costs $19. 3$16. 8$9.
9 expenses incurred are used for activities related to new product development, improvement of existing products and manufacturing methods, and other application research and development.
The company has a number of patents, trademarks and licenses.
In general, these patents are critical to the operation of the enterprise;
However, the company believes that its business does not depend on any single patent or patent group.
The main raw materials used in the manufacture of raw material company products are steel coil and strip steel, stainless steel, copper wire and aluminum ingot.
The main components include motors, capacitors, motor protectors, forgings, gray iron castings, plastic resin and bearings.
Most of these raw materials come from multiple sources in the US and world markets.
In general, the company believes that there are sufficient alternative sources for most of its key raw materials and component requirements purchased;
For certain materials or components, however, the company relies on a single or limited number of suppliers.
Unless directed or allocated by the government, the supply of fuel and energy is sufficient to meet current and projected overall operations.
The company hired about 2014 people at the end of 900.
None of the major customers accounted for more than 10% of their net sales in 2013 or 2012.
None of the customers accounted for more than 2014 of the Total accounts receivable of 2013 and 10%.
The backlog amount divided by market segments is as follows :(In millions)
The water system was $50 in February 19 and February 13. 6$66.
8 refueling system 13. 521.
$64 of the merger. 1$88.
1 Backlog consists of written orders with adjustable pricesat-the-time-of-
The shipping basis of the product is mainly the standard catalogue item.
All backlog orders are expected to be filled out in fiscal2015.
The company\'s first-quarter sales are typically lower than those in other quarters, as well drilling and overall product sales are generally less in the northern hemisphere winter.
In addition to this, the backlog is not seasonal and the backlog has not proved to be an important indicator of future sales.
The environmental matters Company believes that it complies with all applicable federal, state and local laws on the discharge of materials to the environment, or other laws related to the protection of the environment.
The company has not experienced any significant costs related to environmental compliance and is disclosed in the case of item 3 --
The legal process submits that such compliance will not have any significant impact on the company\'s financial position, results of operations, cash flow or competitive position.
The website address of the company is. franklin-electric. com.
The company provides the Annual Report of Form 10 free of charge on its website or through its website
Quarterly Report on table 10
Q: Current Report of Form 8
K, and all amendments to these reports, after these materials are submitted electronically to the Securities and Exchange Commission or provided to the Securities and Exchange Commission, as soon as reasonably practicable.
In addition, the company\'s website also includes guidelines for corporate governance of the company, the Articles of Association of the board of directors and the business conduct and ethics of the company.
The information contained on the company\'s website is not part of the form 10 annual reportK. ITEM 1A.
Risk factors describe below the main risks that affect the company and its business.
Additional risks and uncertainties not currently known to the company may have a negative impact on the company\'s future operating results or financial situation.
3 The company\'s acquisition strategy includes expenses, integration risks and other risks that may affect the Company\'s income and financial status.
One of the company\'s ongoing strategies is to increase revenue and increase market share through acquisitions that will provide complementary water and refueling system products, increase the company\'s global reach, or both.
The company spends a lot of time and effort expanding its existing business by identifying, pursuing, completing and consolidating acquisitions that incur costs regardless of whether or not the acquisition is actually completed.
Competing acquisition candidates may limit the number of opportunities and may lead to higher acquisition prices.
In the absence of significant costs, delays or other issues, it is uncertain to successfully acquire, consolidate and manage additional business.
There is also no guarantee that the acquired company will receive income, profitability or cash flow, thus justifying the investment in them.
Failure to manage or mitigate these risks may adversely affect the Company\'s operating results and financial position.
The company\'s products are sold in a competitive market, and the behavior of many competitors may have a negative impact on sales, pricing and profitability.
The company is a global leader in the production and marketing of groundwater and fuel pump systems.
End-user needs, distribution relationships, industry consolidation, new product capabilities of a company\'s competitors or new competitors, and many other factors contribute to a highly competitive environment.
In addition, some of the company\'s competitors have much larger financial resources than the company.
Although the Company believes that consistency in product quality, timeliness of delivery, service and continuous product innovation and price are the main factors to consider when customers choose suppliers, the previously described competitive factors may lead to a decline in sales or the price of the company\'s products, which may adversely affect the Company\'s operating results and financial conditions.
According to market performance, the company\'s products are sold to many distribution outlets.
Depending on market share and growth, companies may change distribution channels in certain markets from time to time.
These changes may adversely affect sales and operational results.
The reduction in housing starts adversely affects the demand for the company\'s products, thus reducing income and income.
Demand for certain company products is affected by housing starts.
Due to domestic and global economic fluctuations in the United States, changes in housing starts may adversely affect gross profit margin and operating results.
Rising prices for raw materials, components, finished products and other commodities may adversely affect operations.
The company buys most of the raw materials of its products in the open market and relies on third parties to purchase certain finished products.
Therefore, the cost of its products may be affected by changes in the market price of raw materials, procurement components or finished products.
The company and its suppliers are also using natural gas and electricity in their manufacturing products, and the price of natural gas and electricity has historically been unstable.
Companies generally do not engage in the hedging of goods of raw materials and energy.
A substantial increase in the price of goods, purchased parts, finished products, energy or other goods may lead to an increase in the price of the product, which may reduce the demand for the product or make the company more vulnerable to competition
In addition, if the company is unable to pass on the increase in operating costs to its customers, profits and profitability may be adversely affected.
The company faces political, economic and other risks from running a multinational company.
The company has important operations outside the United States, including Europe, South Africa, Brazil, Mexico, China and Turkey.
In addition, the company obtained raw materials and finished products from foreign suppliers.
As a result, the company\'s business is affected by the political, economic and other risks inherent in running a multinational business.
These risks include, but are not limited to, the following risks: difficulties in implementing agreements and collecting receivables through foreign legal systems. Protection measures and import and export licensing requirements are required to be able to obtain raw materials and finished products from foreign suppliers in a timely manner, foreign exchange control or other restrictions on the staffing and management of a wide range of operations and difficulties in the application of foreign labor regulations to comply with foreign laws and regulations changes in the general economic and political conditions of the state in which the company otherwise operates, the company\'s business outside the United States may be negatively affected by treaties, agreements, policy changes, and laws implemented in the United States.
If the company does not foresee and effectively manage these risks, these factors may have a significant adverse effect on its international business or the business as a whole.
4 transferring the company\'s business to a lower-cost area may not produce the expected cost-effectiveness.
The company continues to rationalize manufacturing capacity between all existing manufacturing facilities and manufacturing complexes in lower-cost areas.
In order to implement this strategy, the company must complete the transfer of assets and intellectual property rights between operations.
Each transfer involves the company\'s manufacturing capabilities, the risk of disruption in the supply chain, and ultimately, the ability of the company to serve customers and generate revenue and profits, which may include a large amount of severance pay.
The company has invested heavily in foreign entities and has made significant sales and purchases in foreign currency, which poses a risk to foreign exchange rate fluctuations.
The company has invested heavily outside the United States, including Europe, South Africa, Brazil, Mexico, China and Turkey.
In addition, the company also sells and purchases raw materials and finished products in foreign currency.
As a result, the company faces foreign exchange rate fluctuations relative to the United StatesS. dollar.
Foreign exchange rate risk is partially alleviated in several ways: maintaining local production facilities in the market served, invoicing customers in the same currency as the product source, and prompt resolution of international trade
Corporate balances, limited use of foreign currency denominated debt and the application of derivatives where appropriate.
If these mitigation strategies are not successful, foreign currency exchange rate fluctuations may have a significant adverse effect on the company\'s international business or the business as a whole.
Delays in the launch of new products or the inability to achieve or maintain market acceptance of existing or new products may lead to a decline in company revenue.
The industry of the company is characterized by fierce competition and final change
User needs, as well as evolving products and introductions.
The Company believes that future success will depend in part on the ability to anticipate and adapt to these factors and deliver products that meet customer needs in a timely manner.
Failure to successfully develop new and innovative products or improve existing products may result in competitors losing existing customers or failing to attract new businesses, any of these may adversely affect the Company\'s income.
In addition to the guarantees provided by the company, certain company products are subject to regulations and government performance requirements.
The company\'s product line has been significantly expanded, and in addition to the warranty provided by the company, certain products are subject to government manufacturing, assembly and performance regulations and standards.
Failure of the company to meet all these standards or fail to perform as required by the warranty may result in significant warranty or repair costs, loss of sales and profit, damage to the company\'s reputation, fines or penalties from government organizations, and increased litigation risks.
Claims of the California Aviation Resources Board and certain local aviation zones in California as described in Item 3
Legal proceedings are examples of possible problems and proceedings under these laws and regulations.
Changes to these regulations or standards may require companies to modify their business objectives and incur additional costs to comply with them, any liability or punishment that actually occurs may have a significant adverse effect on the company\'s income and operating results.
The growth of the municipal water supply system and the increase in government restrictions on groundwater exploitation may reduce the demand for private wells and corporate products, thus reducing income and income.
The demand for certain corporate products is affected by the transfer of rural communities from private and individual well systems to urban or municipal water systems.
Many of the economic and other factors beyond the Company\'s control, including federal and state water quality regulations and tax credits and incentives, may adversely affect the needs of private and individual wells.
The decline in private and personal well systems in other economies in the United States or the international market served by the company may reduce demand for the company\'s products and adversely affect sales, gross profit margin, and run results.
The demand for refueling system products is affected by environmental legislation, which may lead to significant fluctuations in costs and income after meeting compliance requirements.
Environmental legislation related to air quality and fuel containment may generate demand for certain fuel system products that must be provided in a relatively short period of time to meet the requirements of the government, just like it was born in California in 2007.
2009 time period.
During the period of increased demand, the company\'s income and profitability may increase significantly, although due to inefficiency during the period of upgrading to higher production levels, the company may also be at risk of not being able to meet demand or cost overruns.
After the company\'s customers meet compliance requirements, the company\'s revenue and profitability may decline significantly as demand for certain products decreases significantly.
The risk of not lowering production costs associated with falling demand and reduced revenue could have a significant adverse impact on gross profit margin and the company\'s operating results.
Changes in tax legislation on our foreign income may have a significant impact on our future results.
As the company operates in different countries and collects taxes in different jurisdictions, the company\'s future effective tax rates may be affected by changes in the tax laws or interpretation of these countries.
Due to changes in fiscal policy, legislation, regulatory evolution, and court decisions, both domestic and international tax laws are likely to change.
The application of these tax laws and related regulations is affected by the interpretation, judgment and uncertainty of laws and facts.
Change to AmericaS.
International tax laws may limit the U. S.
Deduction of expenses related to the United Nations
Foreign repatriated
SOURCE revenue and revision of the United StatesS.
Foreign tax credits and checks\"the-box" rules.
The Company cannot predict if there are any proposed changes in the United States. S.
The tax law will be enacted as law, or what changes, if any, may be made to any such proposal before it is enacted as law ). If the U. S.
Changes in the tax law increase the company\'s tax obligations and may have a significant adverse impact on the company\'s operating results and financial situation.
The company has significant goodwill and intangible assets, and future impairment of the value of these assets may adversely affect the operating results and the financial situation.
The total assets of the company reflect a large number of intangible assets, mainly goodwill.
Goodwill is the result of the company\'s acquisition, and the purchase price paid on behalf of the company exceeds the fair value of the acquired net assets.
Goodwill and indefinite
Live Intangible assets conduct impairment tests in the fourth quarter of each year, or impairment tests based on the needs of the trigger event.
If the future operating performance of one or more of the company\'s operations has dropped significantly, lower than the current level, the company may produce non-
Impairment of cash charges for operating income.
Any future determination that needs to confirm a significant portion of the corporate goodwill or intangible asset impairment may have a significant adverse effect on the company\'s operating results and financial position.
Seasonal and weather conditions for sales may adversely affect the Company\'s business.
The company has experienced seasonal demand in some markets in the water supply sector. End-
User demand in major markets follows warm weather trends, with the Northern Hemisphere at seasonal highs from April to August.
The needs of residents and agricultural water systems are also affected by the weather
Related disasters such as floods and droughts.
Changes in these models may reduce demand for the company\'s products and adversely affect sales, gross profit margin and operating results.
The company\'s performance may be adversely affected by the global macroeconomic supply and demand situation related to energy and mining.
The energy and mining industry is the user of the company\'s products, including the coal, iron ore, gold, copper, oil and gas industries.
The decision to purchase the company\'s products depends on the performance of our customer\'s industry.
If the demand or output of these industries increases, the demand for our products usually increases.
Similarly, if demand or production in these industries decreases, the demand for our products is usually reduced.
Demand and output from energy and mining industries are affected by commodity prices in these industries, which often fluctuate and change due to general economic conditions, economic growth, commodity inventories, any interruption of production or distribution.
Changes in these situations may adversely affect sales, gross profit margin and operating results.
The company relies on certain key suppliers, and any loss or failure to fulfill their commitments by these suppliers may adversely affect the business and operational results.
The company relies on a single or limited number of suppliers to produce some of the materials or components required for its products.
If any of these suppliers fails to fulfill their commitment to the company in terms of delivery or quality, the company may encounter a supply shortage, which may result in a failure to meet the customer\'s requirements, or may experience operational disruption, which may have a negative impact on the company\'s business and operational results.
Additional risks to the company.
The company will face various risks in the normal operation process. Exhibit 99.
1 List the risks and other factors that may affect future results, including the risks and other factors identified above, and include this article through reference. ITEM 1B.
Unresolved employee reviews. ITEM 2.
Franklin franklin Electric has manufacturing and distribution facilities in 15 countries around the world to serve customers.
These facilities provide innovative solutions in the field of water supply and refueling systems in the global market to meet residential, commercial, agricultural, industrial and municipal needs.
Headquartered in Fort Wayne, Indiana, USA, we have sales, marketing and administrative offices and state-of-the-art research and engineering facilities.
The Franklin Electric water supply system currently has 6 water supply systems and more than 25 facilities.
Manufacturing and distribution operations in Brazil, China, Europe, Mexico, South Africa, Turkey and the United States are the most important.
Franklin Electric refueling system currently has more than 5 facilities.
The most important manufacturing and distribution businesses are located in China, Europe and the United States.
In the company\'s view, its facilities are suitable for their intended use, sufficient to meet the company\'s business needs and in good condition. ITEM 3.
On August 2010, the California Aviation Resources Commission ("CARB")
Air quality management area of south coast ("SCAQMD")
Filed a civil lawsuit with the Los Angeles High Court alleging the company and Franklin refueling systems.
Complaints related to third partiesparty-
An integral part of the company\'s health 900 series nozzles is provided, which is part of the company\'s enhanced steam recovery ("EVR")
System installed at a gas station in California.
This part is the diaphragm, which was renovated in the first half of 2008.
As previously reported by the company, on October 2008, CARB issued a notice of violation to the company, claiming that the circumstances leading to the renovation project were in violation of California regulations.
The claim in the complaint angered CARB\'s claim submitted to the company in the notice of violation, including the company\'s negligence in deliberately selling the nozzle with modified diaphragm without CARB certification.
The complaints were merged into a case in the California High Court of Los Angeles County (
California People.
Franklin Refueling System Co. , Ltd. et al. )
Tried in late December 2012 and early January 2013 ("CARB Case").
On July 25, 2013, the court issued a statement of final decision ("Decision")
In the case of CARB
The court made a judgment on behalf of the company in the judgment and made a complete defense judgment.
The judgement was delivered on August 27, 2013.
An amended judgment was awarded $0 to the company.
The court entered a fee of 1 million on January 22, 2014.
On July 16, 2014, CARB filed an appeal and submitted a briefing in support of the appeal.
The company submitted a response brief on December 23, 2014 and CARB submitted a response brief on February 2, 2015.
The California appeals court is now hearing the case, either ruling on these briefs or arranging oral debates.
None of these proceedings have had any effect on CARB\'s certification of the company\'s EVR system or any other product of the company or its subsidiaries, and have not interfered with ongoing sales.
CARB never canceled the company\'s EVR system and never proposed to do so. ITEM 4.
My security report.
As of 2015, at least for the past five years, seven executives of the company\'s registered current executives, their age, current position and business experience are as follows: nameAgePosition HeldPeriod holds PositionGregg C.
President and Chief Executive of senstack56
Current President and Chief Operating Officer
2014 senior vice president and president of fuel and international water Group2011Robert J.
Senior Vice President and President, International Water Systems
Senior vice president and president of American Water Systems Group2012Daniel J.
Vice President of Global Aquatic supply
Current Vice President of water supply
2011 vice president and director of North American business2010DeLancey W.
Davis49 vice president and president, North American water systems
Vice President and President, Business Unit, United States/Canada-
2012 Vice President and President, Business Division, United States/Canada
2011 vice president and director of water systems of America2010Donald P.
Vice president and president of energy systems
President of the energy system
2014 president, refueling system2013John J.
Vice President, Chief Financial Officer and Secretary, Haines51
Steven W.
Vice President of Global Water Systems Engineering-aikman55
Current chief engineer-fuel handling products at Delphi, a global supplier in the automotive, computing, communications, energy and consumer accessories market2010Thomas J.
Vice President of Global Human Resources
Vice president and president of consumer and professional market business-
All executive officers are elected annually by the board of directors at board meetings held in conjunction with the annual meeting of shareholders.
All executive officers serve until their successors are officially elected or until they die, resign or are removed from office by the board of directors. 8PART IIITEM 5.
The market records of the common stock, related shareholder matters and the issuer\'s purchase of equity securities show that the recorded number of 2015 shareholders is 80.
The company\'s shares are traded in the NASDAQ Global Select Market, with the target of FELE.
The dividend per share and price per share range issued by NASDAQ Global Select Market are as follows: Dividend per Share0775$. 0725$37. 76$45. 42$31. 02$34. 142nd Quarter. 0900. 077537. 2043. 5829. 9535. 483rd Quarter. 0900. 077535. 1740. 9134. 8339. 464th Quarter. 0900. 077533. 9339. 9537. 2145.
62 The issuer purchased equity securities on April 2007, and the board of directors of the company unanimously approved a plan to increase the remaining shares repurchased from 628,692 shares to 2,300,000 shares.
There is no deadline for this plan.
The company bought back 40,400 shares for about $1.
According to the plan, it was 4 million per cent in 2014.
According to the plan, the maximum number of shares still available for purchase as of 2015 is 693 shares.
Total number of shares purchased as part of a publicly announced plan perperiod average price paid per share 28-
$0,900 in November 12.
4120,900 November 2-889,193-
November 29 1,10036.
001,100888, November 30, 093-
January 31 8, 40035.
6418,400869, 693Total40, $400 35.
The following figure of the performance chart of 01414,400869 and 693 9 stocks compares the total return of the Company\'s accumulated shareholders (
On the basis of reinvestment, the appreciation of common stock prices plus dividends)
For the past five fiscal years, the Guggenheim S & P Global Water Index and the Russell 2000 index.
Suppose the investment is $100, $2010 (fiscal year-end 2009)
Ordinary shares of Franklin Electric power (FELE)
Assume that dividend reinvestment Guggenheim Standard & Poor\'s Global Water Index and Russell 2000 index: YE 200920102011201220132014FELE $100 $136 $154 $219 $315 $267 $2000100127122141196206 Guggenheim Standard & Poor\'s Global water10011310212115015 Russell 10ITEM 6
The following selected financial data should be read together with the consolidated financial statements of the company.
The information listed below does not necessarily indicate future actions.
Five-Year Financial Summary (
In thousands, except for the amount and ratio per share)
20142013201220112010 (a)(b)(c)(d)
Action: Network for $1,047,777 $965,462 $891,345 $821,077 $713,792 gross profit344 410331,514301 664272,305230 197 interest expense10 73510,59710 20810,5029 692 Income tax expense18 85128,85132 25023,41215, net income attributable to Franklin Electric, Inc.
69,80681, 95882,86463, depreciation of 09938,914 and amortization37, 2101,35628, 33525,29524, 040 capital expenditures42, 201667,20135, 06221,14412, table 776: turnover (e)
268,434 dollar 333,880 dollar 283,278 dollar 276,386 dollar 269,793 dollar real estate, factory and equipment net209 786208,596171 975146,409143 076 total
Short-term debt143, 695174,166150, 729150,000151, 245yr owners\' equity596, 840595,707514, 706448,135426, 494 and Other Data: Net profit Franklin due to electrical Co. , Ltd. ,Inc. , to sales6. 7%8. 5%9. 3%7. 7%5.
5% net income of Franklin Electric, Inc.
Average total assets 6. 6%8. 1%9. 2%7. 8%5.
Current ratio of 1% (f)2. 33. 42. 93. 23.
5 The number of ordinary shares exceeds 47 shares, 59447,71547 shares, 13246, 67746 shares and 514 shares: the market price range is $45 higher. 42$45. 62$30. 98$26. 09$20. 90Low$33. 93$29. 95$22. 77$16. 41$12.
47 Net income attributable to Franklin Electric, Inc.
Weighted average common stock per share $1. 43$1. 70$1. 76$1. 36$0.
84 Net income attributable to Franklin Electric, Inc.
Assume dilution of $1, calculated on weighted average common stock. 41$1. 68$1. 73$1. 33$0. 83Book value (g)$12. 38$12. 38$10. 78$9. 45$9.
07 common stock dividends of $0 per share. 3475$0. 3050$0. 2850$0. 2675$0. 2575(a)
Including the results of the operation of the company\'s 100% wholly-owned subsidiaries, Bombas Leao SA.
Since its acquisition in 2014, the company has owned 90% of its subsidiary, Impo Motor pa Sanayi ve Ticaret. S.
The company has acquired another 10% since second quarter of 2014. (b)
Including the results of the company\'s 70 operations.
5% holding subsidiary of pioneer pump Holding Co. , Ltd.
, An additional 39 after the company\'s acquisition.
2012 5% years the first quarter of 100% wholly-owned subsidiary of the Company Cerus industrial limited the company self-its get the third quarter 2012 and 100% wholly-owned subsidiary of the company Elastic
Dutch international group, since its acquisition in 2012. (c)
Including the results of the operation of the company\'s 80% holding subsidiary, Impo Motor pa Sanayi ve Ticaret. S.
Since the acquisition of the company in second quarter of 2011, 100% of the company and its wholly owned subsidiary, Vertical S. p. A.
The company acquired the remaining 25% since 2011. 11(d)
Including the results of operations of the Company\'s wholly owned subsidiary, PetroTechnik Co. , Ltd. since its acquisition in 2010. (e)
Work like AmericaS.
Canada and Europe grew by about 11% compared to the previous year.
The percentage of sales costs to net sales is, as opposed to, 67.
1% and 65.
7% respectively.
Gross profit margin fell to 32 accordingly.
9% from 34.
3%, down 140 basis points.
The change in gross profit margin was mainly due to a change in the sales revenue mix in the water supply system sector, as sales of groundwater pumping systems declined and sales of ground pumping equipment systems increased, greatly reducing the gross profit margin in 2014.
Direct material as a percentage of sales is 46.
4% than 44 rise 200 a base point.
4% last year.
The increase in direct materials is partially offset by a reduction in labor and burden costs.
The combined gross profit of the company is $344.
4 million pounds 2014, up $12.
9 million or 4% from 2013.
Sales, general and administration ("SG&A")
Sales, general and administration (SG&A)
The cost is $227.
In 2014, it was $7 million, an increase of $23.
Compared with last year, 2014 was 7 million or about 12%.
In 2014, SG & A increased by acquisition was about $6 million, or about $ 3%.
The change in SG & A costs increasing year by year is an increase in marketing and sales --
Related expenses incurred due to sales volume and higher research, development and engineering costs.
The cost of restructuring in 2014 was $16.
Diluted earnings per share decreased by about $6 million. 24.
The cost of restructuring in 2014 includes severance pay, equipment relocation, asset write-off
Mainly related to the closure of Wittlich, German factories and other European manufacturing restructuring activities. There were $3.
7 million of the cost of restructuring in 2013.
Operating income was $100.
The decline in 2014 was $1 million.
$7 million, $123.
2013 8 million.
14 Operating income (loss)(In millions)
201420132014 v 2013 water system $103. 9$131. 3$(27. 4)
Refueling System 49. 742. 67. 1Other(53. 5)(50. 1)(3. 4)
$100. 1$123. 8$(23. 7)
Some specific projects in 2014 and 2013 affected non-operating income.
It was $16 in 2014.
6 million of the cost of restructuring.
The cost of restructuring in 2014 was $14.
The severance pay is 7 million yuan, $1.
7 million costs related to equipment transfer, freight and other relocation costs, $0.
Asset write 2 million-
It mainly involves the transfer of production activities from Germany to the Czech Republic and other ongoing manufacturing adjustments. $3.
2 million other miscellaneous costs related to closed and pending acquisitions, as well as $0.
The legal cost of Franklin\'s refueling system is 2 million. $2.
5 million related to the administrative transition. $1.
8 million written in software-offs.
They did this in 2013: $3.
7 million of the cost of restructuring.
The cost of restructuring is $1.
5 million in other miscellaneous manufacturing adjustment activities, severance costs were $1.
$1 million and $1.
1 million related to the relocation of the new company headquarters and Engineering Center to Fort Wayne, Indiana. A net $1.
0 million from $1.
6 million the withdrawal of the legal claim reserve established in previous years, which was successfully settled in 2013, was offset by $0.
6 million of the legal costs incurred by Franklin\'s refueling system. $0.
9 million other miscellaneous costs related to pending acquisitions.
The company calls these projects \"non-
GAAP adjustment \"for rendering non-
GAAP Financial indicators after Operating Income
GAAP adjustment and operating income as percentage of net sales
GAAP Adjustment of net sales (
Non-Post Operating income margin
General accounting standards adjustment in the United States).
The Company believes that this information helps investors and management to understand the potential trends in the company\'s business more easily.
The Company believes that presenting these matters in this way will give our investors and management a more accurate understanding of the Company\'s actual operational performance. The non-
GAAP adjustments are for restructuring expenses reported separately on the income statement, as well as certain legal matters contained in the SGA on the income statement and acquisition-related items.
Different non
GAAP financial measures and the most comparable GAAP measures are coordinated in the following table: margin before and after 15 operating and non-operating income
Adjustment of general accounting standards in the United States (in millions)
For the whole of 2014, the company\'s operating income was $103. 9$49. 7$(53. 5)$100.
Net sales income of 1%. 6%22. 3%9. 6%Non-
GAAP adjustment: $16 for restructuring. 1$0. 5$—$16. 6Non-GAAP costs $3. 7$1. 5$2. 5$7.
7 Non-Post Operating Income
GAAP Adjusted $123. 7$51. 7$(51. 0)$124.
4% Non-Net sales of operating income
Adjustment of general accounting standards in the United States (
Non-Post Operating income margin
General accounting standards adjustment in the United States)15. 0%23. 2%11.
2013 waterfuelingotherspoon lidatedreported, operating income for the full year of 9% is $131. 3$42. 6$(50. 1)$123.
Net sales revenue was 8%. 1%21. 4%12. 8%Non-
GAAP adjustment: $3 restructuring. 2$0. 5$—$3. 7Non-GAAP costs $0. 7$(0. 8)$—$(0. 1)
Non-Post Operating Income
GAAP Adjusted $135. 2$42. 3$(50. 1)$127.
4% Non-Net sales of operating income
Adjustment of general accounting standards in the United States (
Non-Post Operating income margin
General accounting standards adjustment in the United States)17. 6%21. 2%13.
Business income-2%
After operating income of water system
GAAP adjusted to $123.
In 2014, it was 7 million per cent, down 9% per cent from 2013 per cent.
Profit margin of non-Post Operating income 2014
GAAP adjusted to 15.
0%, down 260 basis points from 17.
6% of net sales in 2013.
The change in profitability is mainly the result of rising global raw material costs, rising US marketing and sales costsS.
Business operations in Canada, as well as a sales mix that continues to shift from groundwater pumping equipment to ground pumping equipment.
Contributed to the transformation of the sales mix of ground pumping equipment and higher material costs, and the sales of mobile pumping equipment of pioneer brands surged in demand during the year, in order to meet the growing demand, the company has temporarily outsourced certain businesses.
Operating income-
After the operating income of the refueling system
GAAP adjusted to $51.
In 2014, it was $7 million, compared to $42.
Non-Post 3 million
GAAP adjusted in 2013, up 22% year on year.
Profit margin of non-Post Operating income 2014
GAAP adjusted to 23.
2%, an increase of 200 basis points over 21.
2% of net sales in 2013.
The increase in profitability is mainly due to the impact of fixed costs on the increase in sales.
Operating income-
Other operating income
Others consist mainly of undistributed general expenses and administrative expenses.
Due to $2, the general and administrative costs are higher.
5 million of non-cost included
GAAP adjustments related to executive transition.
Interest expenditures of 2014 and 2013 were $10.
$7 million and $10.
6 million respectively.
Other income or expenses are $1.
2014 3 million.
Other income or expenses for 2014 include interest income of $2.
0 million, mainly from investment in short-term cash balanceRegular Securities.
Other income or expenses are $1.
2013 7 million.
Other income or expenses for 2013 include interest income of $1.
8 million, mainly from investments in short-term cash balancesRegular Securities.
Foreign exchange-
The underlying transaction generated a loss of $2014.
0 million, mainly due to the exchange rate of Canadian dollar, Australian dollar, Turkish lira and South African rand relative to the United States. S.
Dollar, no single important.
Foreign currency-
The underlying transaction generated a loss of $2013.
3 million, mainly due to Turkish lira, euro, South African rand, Brazilian real and Canadian dollar relative to the United StatesS.
Dollar, no single important.
The income tax reserve for 2014 and 2013 is $18.
$9 million and $28.
9 million respectively.
The tax rate of 2014 is 21.
0% and 2013 were 25, respectively. 9 percent.
In 2014, the tax rate fell from 2013, mainly due to the reversal of deferred tax liabilities related to the income of certain foreign subsidiaries readjusted within the company organization.
The re-adjustment of certain foreign entities resulted in an indefinite reinvestment of their outstanding income.
The actual tax rate is different from the statutory tax rate, mainly because foreign income is reinvested indefinitely and the tax rate is lower than that of the United States. S.
Statutory tax rates and recognition of foreign tax credits.
The company has the ability to reinvest these foreign revenues indefinitely based on income and cash forecasts for other businesses and cash and available credits on hand.
Net income for 2014 was $70.
Compared with net income of $82 in 2013, it was 9 million. 7 million.
Net income from Franklin Electric, Inc.
2014 is $69.
8 million, or $1.
Compared to Franklin Electric\'s net income in 2013, $41 per diluted share, Inc. of $82. $0 million or $1.
68 per share after dilution.
Net income from Franklin Electric, Inc. after Non-
GAAP was adjusted to $84 in 2014.
3 million, or $1.
Compared to Franklin Electric\'s net income in 2013, $76 per diluted share, Inc. after Non-
GAAP adjusted to $82. $9 million or $1.
72 per share after dilution.
Specific projects in 2014 and 2013 affected the net income of Franklin Electric. , Inc.
This does not work in essence.
The company calls these projects \"non-
GAAP adjustment \"for rendering non-
GAAP financial measures attributable to net income of Franklin Electric, Inc.
Adjusted EPS
The Company believes that this information helps investors to understand the potential trends in the company\'s business more easily.
Different non
GAAP Financial indicators and the most comparable GAAP indicators are reconciled in the following table:
GAAP Adjustment for the whole year (in millions)
20142013 revenue from Franklin Electric, Inc. Reported$69. 8$82. 0(15)
Unallocated income $ (1. 6)$(1. 2)
The adjusted earnings calculated by EPS are $68. 2$80. 8(16)%Non-
Adjustment of general accounting standards in the United States (before tax)
Restructuring $16. 6$3. 7Non-GAAP items$7. 7$(0. 1)Non-
GAAP adjustment for tax deduction: $11 for restructuring. 4$2. 2Non-GAAP items$4. 7$(0. 1)
Net income from Franklin Electric, Inc. after Non-
Adjustment of general accounting standards in the United States (
Adjusted net income)$84. 3$82.
92% earnings per share before and after listing 17
GAAP Adjustment for the whole year (
Except every-share data)
The average price of 20142013 outstanding diluted shares was $48. 2$48. 1—
Full Diluted earnings per share % (\"EPS\")Reported$1. 41$1. 68(16)
Restructuring per Share %, deducting tax $0. 24$0. 05Non-
Net project, deducting tax $0. 11$(0. 01)
Non-diluted EPS
Adjustment of general accounting standards in the United States (Adjusted EPS)$1. 76$1. 722%2013 vs.
Sales in 2013 were up 2012 from the previous year.
Net sales in 2013 were $965.
5 million, an increase of approximately 8% over $891 in sales in 2012. 3 million.
Sales growth is mainly due to the increase in sales and prices, as well as the acquisition of the company.
The negative effects of foreign currency translation partially offset sales growth.
The combined gross profit of the company is $331.
In 5 million, an increase of $29 was 2013.
8 million, or about 10% in 2012.
Gross profit increased by 50 basis points to 34 basis points.
3% from 33 in 2013.
8% per cent in 2012.
The increase in gross margin is due to the use of fixed costs for higher sales, lower labor and burden costs, and partially offset by higher other variable costs;
Mainly freight and scrap.
Direct material as a percentage of sales did not change compared to last year.
Diluted earnings per share were $2013.
68, a decrease of 3% compared to $1 per diluted earnings per share in 2012. 73.
Adjusted earnings per share are $1.
72, an increase of 10% over $1.
57 earnings per share adjusted on 2012 (
For reconciliation of gaap eps with adjusted EPS, see table below).
The company completed a 2-for-
1 share split on March 18, 2013, all EPS amounts are displayed on the postsplit basis.
Net sales in 2013 were $965.
5 million, an increase of $74.
Compared with sales of $2 million in 2012, 8% or about 891. 3 million.
The incremental impact of corporate sales is $30.
1 million or about 3%.
Sales revenue fell by $14.
Due to foreign currency translation, it was 7 million or about 2% in 2013.
Sales changes excluding acquisitions and foreign currency exchange increased by $58 in 2013.
8 million or about 7%. Net Sales(In millions)
201320122013 v 2012 water system $766. 4$715. 0$51.
Refueling System. 1176. 322.
The combined $965. 5$891. 3$74. 2Net Sales-
Sales of water supply systems were $766.
4 million an increase of $51 was made in 2013.
4 million or 7% to 2012.
The incremental impact of corporate sales was $19.
About 3% or.
Changes in foreign currency exchange rates have reduced sales by $16.
Compared with sales in 2012, 2%, or about.
Sales changes excluding acquisitions and foreign currency exchange increased by $48 in 2013.
4 million or about 7%.
Water systems sales in the United States