EARNINGS PER SHARE

12 Months Ended

Jan. 03, 2015

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company's participating securities consist of share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders.

Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards.

The following table sets forth the computation of basic and diluted earnings per share:

(In millions, except per share amounts)	2014		2013		2012
Numerator:
Net income attributable to Franklin Electric Co., Inc.	$	69.8	$	82.0	$	82.9
Less: Undistributed earnings allocated to participating securities	0.7		1.0		0.6
Less: Undistributed earnings allocated to redeemable noncontrolling interest	0.9		0.2		—
	$	68.2	$	80.8	$	82.3
Denominator:
Basic
Weighted average common shares	47.7		47.5		46.9
Diluted
Effect of dilutive securities:
Non-participating employee and director incentive stock options and performance awards	0.5		0.6		0.8
Adjusted weighted average common shares	48.2		48.1		47.7
Basic earnings per share	$	1.43	$	1.70	$	1.76
Diluted earnings per share	$	1.41	$	1.68	$	1.73
Anti-dilutive stock options	0.1		0.1		0.1

Shares and per share data have been adjusted for all periods presented to reflect a two-for-one stock split effective March 18, 2013.