SHARE-BASED COMPENSATION (Tables)

12 Months Ended

Dec. 28, 2013

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

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 which, as amended in 2009, provided for discretionary grants of stock options and stock awards (the "2009 Stock Plan"). The 2009 Stock Plan authorized 4,400,000 shares for issuance as follows:



2009 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 2013, 2012, and 2011, are as follows:



	2013		2012		2011
Risk-free interest rate	1.03	%	1.01	%	2.49	%
Dividend yield	0.89	%	1.12	%	1.23	%
Weighted-average dividend yield	0.89	%	1.12	%	1.07	%
Volatility factor	0.394		0.388		0.431
Weighted-average volatility	0.394		0.388		0.432
Expected term	6.0 years		6.0 years		6.3 years
Forfeiture rate	4.52	%	3.99	%	3.59	%

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 2011	3,634		$	13.98
Granted	226		21.72
Exercised	(692	)	12.43
Forfeited	(30	)	18.58
Outstanding at beginning of 2012	3,138		$	14.83
Granted	250		24.10
Exercised	(1,158	)	13.29
Forfeited	(46	)	22.91
Outstanding at beginning of 2013	2,184		$	16.69
Granted	176		32.53
Exercised	(880	)	15.98
Forfeited	(4	)	14.37
Outstanding at end of period	1,476		$	19.01	5.75 years	$	39,121
Expected to vest after applying forfeiture rate	1,457		$	18.88	5.71 years	$	38,787
Vested and exercisable at end of period	943		$	15.46	4.41 years	$	28,349



	2013		2012		2011
Weighted average grant-date fair value of options	$	11.47	$	8.19	$	8.71



(In millions)	2013		2012		2011
Intrinsic value of options exercised	$	16.6	$	16.5	$	7.3
Cash received from the exercise of options	14.1		15.4		8.6
Fair value of shares vested	2.1		2.4		2.5
Tax benefit	6.5		6.5		2.1

Schedule of Nonvested Restricted Stock Options 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 2012	1,094		$	13.27
Granted	250		24.10
Vested	(528	)	12.67
Forfeited	(14	)	22.91
Non-vested at beginning of 2013	802		$	17.07
Granted	176		32.53
Vested	(440	)	13.31
Forfeited	(4	)	14.37
Non-vested at end of period	534		$	25.30

Schedule of Restricted Stock/Stock Unit 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 2012	344		$	17.24
Awarded	208		24.90
Vested	(76	)	15.93
Forfeited	(18	)	18.48
Non-vested at beginning of 2013	458		$	20.90
Awarded	165		32.90
Vested	(66	)	18.78
Forfeited	(6	)	20.05
Non-vested at end of period	551		$	24.75