SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 29, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The 2012 Stock Plan authorizes 1,200,000 shares for issuance as follows:



2012 Stock Plan		Authorized Shares
Stock Options		840,000
Stock/Stock Unit Awards		360,000

The Company also maintains the Amended and Restated Franklin Electric Co., Inc. Stock Plan (the "Stock Plan") which, as amended in 2009, provided for discretionary grants of stock options and stock awards. The Stock Plan authorized 2,200,000 shares for issuance as follows:



Stock Plan		Authorized Shares
Stock Options		1,600,000
Stock Awards		600,000

Schedule of Assumptions Used to Determine the Fair Value of Options Granted

The assumptions used for the Black-Scholes model to determine the fair value of options granted during the nine months ended September 29, 2012 and October 1, 2011, are as follows:



	September 29, 2012		October 1, 2011
Risk-free interest rate	1.01	%	2.49	%
Dividend yield	1.12	%	1.23	%
Volatility factor	0.388		0.431
Expected term	6.0 years		6.3 years
Forfeiture rate	3.99	%	3.59	%

Schedule of Stock Option Activity

A summary of the Company’s outstanding stock option activity and related information for the nine months ended September 29, 2012 and October 1, 2011, is as follows:



(Shares in thousands)	September 29, 2012				October 1, 2011
Stock Options	Shares		Weighted-Average Exercise Price		Shares		Weighted-Average Exercise Price
Outstanding at beginning of period	1,569		$	29.66	1,817		$	27.95
Granted	125		48.19		113		43.43
Exercised	(430	)	26.76		(160	)	24.49
Forfeited	(23	)	45.82		(14	)	39.27
Outstanding at end of period	1,241		$	32.50	1,756		$	29.17
Expected to vest after applying forfeiture rate	1,229		$	32.42	1,736		$	29.19
Vested and exercisable at end of period	841		$	31.73	1,207		$	30.38

Schedule of Stock Options, Contractual Term and Aggregate Intrinsic Value

A summary of the weighted average remaining contractual term and aggregate intrinsic value for the nine months ended September 29, 2012, is as follows:



Stock Options	Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value (000’s)
Outstanding end of period	5.74 years	$	34,752
Expected to vest after applying forfeiture rate	5.71 years	$	34,479
Vested and exercisable end of period	4.67 years	$	24,188

Schedule of Restricted Stock/Stock Unit Award Activity

A summary of the Company’s outstanding restricted stock/stock unit award activity and related information for the nine months ended September 29, 2012 and October 1, 2011, is as follows:



(Shares in thousands)	September 29, 2012				October 1, 2011
Stock/Stock Unit Awards	Shares		Weighted-Average Grant- Date Fair Value		Shares		Weighted-Average Grant- Date Fair Value
Non-vested at beginning of period	172		$	34.47	128		$	31.86
Awarded	104		49.79		68		43.40
Vested	(37	)	31.79		(3	)	39.12
Forfeited	(9	)	36.95		(20	)	47.41
Non-vested at end of period	230		$	41.77	173		$	34.44