XML 49 R36.htm IDEA: XBRL DOCUMENT v2.4.0.6
SHARE-BASED COMPENSATION (Tables)
 3 Months Ended
Mar. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Authorized Number of Shares
he Franklin Electric Co., Inc. 2012 Stock Plan (the "2012 Stock Plan") is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, stock unit awards and performance awards to key employees and non-employee directors. Shares and per share data below have been adjusted for all periods presented to reflect the two-for-one stock split effective March 18, 2013.

The 2012 Stock Plan authorizes 2,400,000 shares for issuance as follows:


2012 Stock Plan
 
Authorized Shares
Stock Options
 
1,680,000
Stock/Stock Unit Awards
 
720,000


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 4,400,000 shares for issuance as follows:
Stock Plan
Authorized Shares
Stock Options
3,200,000
Stock Awards
1,200,000
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 first quarter ended March 30, 2013, are as follows:
 
 
March 30, 2013
Risk-free interest rate
 
1.03
%
Dividend yield
 
0.89
%
Volatility factor
 
0.394

Expected term
 
6.0 years

Forfeiture rate
 
4.52
%
Schedule of Stock Option Plans Activity
A summary of the Company’s outstanding stock option activity and related information for the first quarters ended March 30, 2013 and March 31, 2012 is as follows:
 
 
 
 
 
 
 
 
 
(Shares in thousands)
 
March 30, 2013
 
March 31, 2012
 
 
Stock Options
 
Shares
 
Weighted-Average Exercise Price
 
Shares
 
Weighted-Average Exercise Price
Outstanding at beginning of period
 
2,184

 
$
16.69

 
3,138

 
$
14.83

Granted
 
176

 
32.53

 
—

 
—

Exercised
 
(307
)
 
13.43

 
(194
)
 
13.46

Forfeited
 
—

 
—

 
(32
)
 
24.44

Outstanding at end of period
 
2,053

 
$
18.54

 
2,912

 
$
14.94

Expected to vest after applying forfeiture rate
 
2,022

 
$
18.39

 
2,892

 
$
14.95

Vested and exercisable at end of period
 
1,457

 
$
15.82

 
2,356

 
$
15.18
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 first quarter ended March 30, 2013 is as follows:
Stock Options
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value (000's)
Outstanding end of period
 
5.94 years
 
$
30,874

Expected to vest after applying forfeiture rate
 
5.89 years
 
$
30,691

Vested and exercisable end of period
 
4.72 years
 
$
25,861
Schedule of Restricted Stock/Stock Unit Award Activity
A summary of the Company’s restricted stock/stock unit award activity and related information for the first quarters ended March 30, 2013 and March 31, 2012 is as follows:

(Shares in thousands)
 
March 30, 2013
 
March 31, 2012
Stock/Stock Unit Awards
 
 
Shares
 
Weighted-Average Grant-
Date Fair Value
 
Shares
 
Weighted-Average Grant-Date Fair Value
Non-vested at beginning of period
 
458

 
$
20.90

 
344

 
$
17.24

Awarded
 
141

 
32.53

 
8

 
26.76

Vested
 
(35
)
 
17.21

 
(4
)
 
16.10

Forfeited
 
(1
)
 
18.89

 
(6
)
 
18.35

Non-vested at end of period
 
563

 
$
24.04

 
342

 
$
17.46