SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 29, 2012

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

On May 4, 2012, the Franklin Electric Co., Inc. 2012 Stock Plan (the "2012 Stock Plan") was approved by the Company's shareholders. The Board of Directors of the Company had approved the 2012 Stock Plan on February 24, 2012. The 2012 Stock Plan is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, and stock unit awards to key employees and non-employee directors. 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 2012, 2011, and 2010, are as follows:



	2012		2011		2010
Risk-free interest rate	1.01	%	2.49	%	1.61 - 3.20%
Dividend yield	1.12	%	1.23	%	0.65 - 1.72%
Weighted-average dividend yield	1.12	%	1.07	%	0.95	%
Volatility factor	0.388		0.431		0.355 - 0.398
Weighted-average volatility	0.388		0.432		0.396
Expected term	6.0 years		6.3 years		6.3 years
Forfeiture rate	3.99	%	3.59	%	2.70	%

Schedule of Stock Option Plans Activity

A summary of the Company’s outstanding stock option activity and related information is as follows:



(Shares in thousands)
Stock Options	Shares		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value (000’s)
Outstanding at beginning of 2010	1,979		$	26.84
Granted	157		29.03
Exercised	(271	)	18.63
Forfeited	(48	)	35.64
Outstanding at beginning of 2011	1,817		$	27.95
Granted	113		43.43
Exercised	(346	)	24.86
Forfeited	(15	)	37.16
Outstanding at beginning of 2012	1,569		$	29.66
Granted	125		48.19
Exercised	(579	)	26.58
Forfeited	(23	)	45.82
Outstanding at end of period	1,092		$	33.38	5.50 years	$	29,134
Expected to vest after applying forfeiture rate	1,083		$	33.30	5.48 years	$	28,968
Vested and exercisable at end of period	692		$	32.95	4.21 years	$	18,747



	2012		2011		2010
Weighted average grant-date fair value of options	$	16.38	$	17.41	$	6.29



(In millions)	2012		2011		2010
Intrinsic value of options exercised	$	16.5	$	7.3	$	3.9
Cash received from the exercise of options	15.4		8.6		5.0
Fair value of shares vested	2.4		2.5		4.2
Tax benefit	6.5		2.1		1.3

Schedule of Nonvested Restricted Stock Units Activity

A summary of the Company’s non-vested stock option activity and related information is as follows:



(Shares in thousands)	Shares		Weighted-Average Grant- Date Fair Value
Non-vested at beginning of 2011	714		$	23.40
Granted	113		43.43
Vested	(278	)	25.38
Forfeited	(2	)	24.10
Non-vested at beginning of 2012	547		$	26.53
Granted	125		48.19
Vested	(264	)	25.34
Forfeited	(7	)	45.82
Non-vested at end of period	401		$	34.13

Schedule of Restricted Stock Award Activity

A summary of the Company’s restricted stock/stock unit award activity and related information is as follows:



(Shares in thousands)	Shares		Weighted-Average Grant- Date Fair Value
Non-vested at beginning of 2011	128		$	31.86
Awarded	68		43.40
Vested	(3	)	38.45
Forfeited	(21	)	46.79
Non-vested at beginning of 2012	172		$	34.47
Awarded	104		49.79
Vested	(38	)	31.86
Forfeited	(9	)	36.95
Non-vested at end of period	229		$	41.79