ÂÒÂ×°ÍÊ¿ Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Change in Accounting Principle

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Change in Accounting Principle

6 Months Ended

Jul. 02, 2011

Change in Accounting Principle [Abstract]

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Change in Accounting Principle

Note B â€” Change in Accounting Principle

ÂÒÂ×°ÍÊ¿ has historically valued inventories using both the first-in, first out ("FIFO") and last-in, first-out ("LIFO") methods. At the end of DecemberÌý2010, approximately 25% of total inventories were valued using the LIFO method. On JanuaryÌý2, 2011, ÂÒÂ×°ÍÊ¿ changed its method of accounting for inventories previously valued on the LIFO method to the FIFO method. This change is preferable because the FIFO inventory valuation (i)Ìýbetter reflects the current value of inventories on the Consolidated Balance Sheets, (ii)Ìýprovides for a single inventory valuation method for all business units globally, and (iii)Ìýenhances comparability with the reporting of ÂÒÂ×°ÍÊ¿'s peers.

The effect of retrospectively applying this change in accounting principle on previously reported financial statements was not material and therefore those periods have not been restated. The impact of recording this change in the Consolidated Statement of Income for the six months ended JuneÌý2011 was as follows:

Ìý	Ìý	Ìý	Ìý	Ìý
Ìý	Ìý	Increase
In thousands except per share amounts	Ìý	(Decrease)
Cost of goods sold	Ìý	$	(8,027	)
Income before income taxes	Ìý	Ìý	8,027	Ìý
Income tax expense	Ìý	Ìý	3,160	Ìý
Net income attributable to ÂÒÂ×°ÍÊ¿ Corporation	Ìý	Ìý	4,867	Ìý
Ìý
Basic earnings per common share attributable to	Ìý	Ìý	Ìý	Ìý
ÂÒÂ×°ÍÊ¿ Corporation common stockholders	Ìý	$	0.04	Ìý
Diluted earnings per common share attributable to	Ìý	Ìý	Ìý	Ìý
ÂÒÂ×°ÍÊ¿ Corporation common stockholders	Ìý	Ìý	0.04	Ìý

The impact of recording this change in the Consolidated Balance Sheet as of JanuaryÌý2, 2011 was as follows:

Ìý	Ìý	Ìý	Ìý	Ìý
In thousands	Increase
Inventories	Ìý	$	8,027	Ìý
Accrued liabilities	Ìý	Ìý	3,160	Ìý
Retained earnings	Ìý	Ìý	4,867	Ìý

The impact of continuing to account for inventory on a LIFO instead of FIFO basis, had ÂÒÂ×°ÍÊ¿ not made this change in accounting principle, would not have been material to the financial position, results of operations, cash flows and earnings per common share attributable to ÂÒÂ×°ÍÊ¿ Corporation common stockholders for the three or six months ended JuneÌý2011.