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SHARE-BASED COMPENSATION
 9 Months Ended
Oct. 01, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION
The Company maintains the Franklin Electric Co., Inc. 2012 Stock Plan (the "2012 Stock Plan"), which 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 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


All options in the 2009 Stock Plan have been awarded.

The Company currently issues new shares from its common stock balance to satisfy option exercises and the settlement of stock awards and stock unit awards made under the 2009 Stock Plan and/or the 2012 Stock Plan.

Stock Options:
The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model with a single approach and amortized using a straight-line attribution method over the option’s vesting period.  

The assumptions used for the Black-Scholes model to determine the fair value of options granted during the nine months ended October 1, 2016 and October 3, 2015 are as follows:
 
 
October 1, 2016
 
October 3, 2015
Risk-free interest rate
 
1.21
%
 
1.59
%
Dividend yield
 
1.32
%
 
0.95
%
Volatility factor
 
0.377

 
0.379

Expected term
 
5.5 years

 
5.5 years

Forfeiture rate
 
3.77
%
 
3.67
%


There were no stock options granted during the third quarters ended October 1, 2016 or October 3, 2015.

A summary of the Company’s outstanding stock option activity and related information for the nine months ended October 1, 2016 and October 3, 2015 is as follows:
(Shares in thousands)
 
October 1, 2016
 
October 3, 2015
 
 
Stock Options
 
Shares
 
Weighted-Average Exercise Price
 
Shares
 
Weighted-Average Exercise Price
Outstanding at beginning of period
 
1,472

 
$
23.26

 
1,397

 
$
21.17

Granted
 
265

 
29.08

 
185

 
36.67

Exercised
 
(167
)
 
19.09

 
(70
)
 
17.63

Forfeited
 
(5
)
 
33.94

 
(2
)
 
34.93

Outstanding at end of period
 
1,565

 
$
24.66

 
1,510

 
$
23.22

Expected to vest after applying forfeiture rate
 
1,539

 
$
24.53

 
1,491

 
$
23.04

Vested and exercisable at end of period
 
1,082

 
$
20.96

 
1,144

 
$
19.13



A summary of the weighted-average remaining contractual term and aggregate intrinsic value as of October 1, 2016 is as follows:
 
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value (000's)
Outstanding at end of period
 
5.61 years
 
$
25,360

Expected to vest after applying forfeiture rate
 
5.56 years
 
$
25,126

Vested and exercisable at end of period
 
4.23 years
 
$
21,494



The total intrinsic value of options exercised during the nine months ended October 1, 2016 and October 3, 2015 was $3.0 million and $1.3 million, respectively.

As of October 1, 2016, there was $1.9 million of total unrecognized compensation cost related to non-vested stock options granted under the 2012 Stock Plan and the 2009 Stock Plan. That cost is expected to be recognized over a weighted-average period of 2.34 years.

Stock/Stock Unit Awards:
A summary of the Company’s restricted stock/stock unit award activity and related information for the nine months ended October 1, 2016 and October 3, 2015 is as follows:

(Shares in thousands)
 
October 1, 2016
 
October 3, 2015
Restricted Stock/Stock Unit Awards
 
 
Shares
 
Weighted-Average Grant-
Date Fair Value
 
 
Shares
 
Weighted-Average Grant-
Date Fair Value
Non-vested at beginning of period
 
510

 
$
34.43

 
554

 
$
32.72

Awarded
 
172

 
29.45

 
134

 
36.28

Vested
 
(174
)
 
28.30

 
(169
)
 
30.39

Forfeited
 
(27
)
 
34.09

 
(9
)
 
32.31

Non-vested at end of period
 
481

 
$
34.89

 
510

 
$
34.44



As of October 1, 2016, there was $9.2 million of total unrecognized compensation cost related to non-vested restricted stock/stock unit awards granted under the 2012 Stock Plan and the 2009 Stock Plan.  That cost is expected to be recognized over a weighted-average period of 2.38 years.