FRANKLIN ELECTRIC CO INC Fair Value Disclosure
| (In millions) | December 31, 2025 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Cash equivalents | $ | 10.2 | $ | 10.2 | $ | — | $ | — | ||||||||||||||||||
| Marketable securities | $ | 9.7 | $ | 9.7 | $ | — | $ | — | ||||||||||||||||||
| Total assets | $ | 19.9 | $ | 19.9 | $ | — | $ | — | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Total liabilities | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||||
| December 31, 2024 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||||||||||||
| Assets: | ||||||||||||||||||||||||||
| Cash equivalents | $ | 5.0 | $ | 5.0 | $ | — | $ | — | ||||||||||||||||||
| Total assets | $ | 5.0 | $ | 5.0 | $ | — | $ | — | ||||||||||||||||||
| Liabilities: | ||||||||||||||||||||||||||
| Share swap transaction | $ | 2.5 | $ | 2.5 | $ | — | $ | — | ||||||||||||||||||
| Contingent payments related to acquisition | $ | 5.0 | — | — | $ | 5.0 | ||||||||||||||||||||
| Total liabilities | $ | 7.5 | $ | 2.5 | $ | — | $ | 5.0 | ||||||||||||||||||
| (In millions) | 2025 | 2024 | |||||||||
| Fair value at beginning of period | $ | 5.0 | $ | 3.0 | |||||||
| Additions | — | — | |||||||||
| Adjustment to prior year acquisition | — | 1.3 | |||||||||
| Change in fair value recognized in earnings | — | 0.7 | |||||||||
| Payments | (5.0) | — | |||||||||
| Fair value at end of period | $ | — | 5.0 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 20, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 22, 2023 | |
| 2021 | Feb 25, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 25, 2020 | |
| 2018 | Feb 28, 2019 | |
| 2017 | Feb 27, 2018 | |
| 2016 | Mar 1, 2017 | |
About Fair Value Disclosures
Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.
Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.