SHARE-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 28, 2014

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

The 2012 Stock Plan authorized 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 "2009 Stock Plan") which, as amended in 2009, provided for discretionary grants of stock options and stock awards. 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 the six months ended June 28, 2014 and June 29, 2013, are as follows:



	June 28, 2014		June 29, 2013
Risk-free interest rate	1.68	%	1.03	%
Dividend yield	0.70	%	0.89	%
Volatility factor	0.387		0.394
Expected term	5.6 years		6.0 years
Forfeiture rate	3.81	%	4.52	%

Schedule of Stock Option Plans Activity

A summary of the Company’s outstanding stock option activity and related information for the six months ended June 28, 2014 and June 29, 2013 is as follows:



(Shares in thousands)	June 28, 2014				June 29, 2013
Stock Options	Shares		Weighted-Average Exercise Price		Shares		Weighted-Average Exercise Price
Outstanding at beginning of period	1,476		$	19.01	2,184		$	16.69
Granted	115		42.24		176		32.53
Exercised	(63	)	18.89		(632	)	15.06
Forfeited	(3	)	26.95		(3	)	10.60
Expired	(16	)	16.34		—		—
Outstanding at end of period	1,509		$	20.80	1,725		$	18.91
Expected to vest after applying forfeiture rate	1,491		$	20.63	1,698		$	18.77
Vested and exercisable at end of period	1,194		$	17.62	1,191		$	16.05

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 six months ended June 28, 2014 is as follows:



	Weighted-Average Remaining Contractual Term	Aggregate Intrinsic Value (000's)
Outstanding at end of period	5.70 years	$	29,880
Expected to vest after applying forfeiture rate	5.66 years	$	29,767
Vested and exercisable at end of period	4.93 years	$	27,225

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 six months ended June 28, 2014 and June 29, 2013 is as follows:



(Shares in thousands)	June 28, 2014				June 29, 2013
Stock/Stock Unit Awards	Shares		Weighted-Average Grant- Date Fair Value		Shares			Weighted-Average Grant- Date Fair Value
Non-vested at beginning of period	551		$	24.75	458			$	20.90
Awarded	193		42.81		153			32.50
Vested	(124	)	16.75		(60		)	18.90
Forfeited	(59	)	28.04		(2		)	17.70
Non-vested at end of period	561		$	32.38	$	549		$	24.37