DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Feb. 13, 2014 | Jun. 29, 2013 | |
Document Information | ' | ' | ' |
Entity Registrant Name | 'FRANKLIN ELECTRIC CO INC | ' | ' |
Entity Central Index Key | '0000038725 | ' | ' |
Current Fiscal Year End Date | '--12-28 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 28-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 47,687,521 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1,561,811,852 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Statement | ' | ' | ' |
Net sales | $965,462 | $891,345 | $821,077 |
Cost of sales | 633,948 | 589,681 | 548,772 |
Gross profit | 331,514 | 301,664 | 272,305 |
Selling, general, and administrative expenses | 204,014 | 188,486 | 177,320 |
Restructuring (income)/expense | 3,719 | 221 | 1,587 |
Operating income | 123,781 | 112,957 | 93,398 |
Interest expense | -10,597 | -10,208 | -10,502 |
Other income/(expense) | 1,696 | 14,901 | 5,661 |
Foreign exchange income/(expense) | -3,331 | -1,662 | -1,422 |
Income before income taxes | 111,549 | 115,988 | 87,135 |
Income taxes | 28,851 | 32,250 | 23,412 |
Net income | 82,698 | 83,738 | 63,723 |
Less: Net income attributable to noncontrolling interests | -740 | -874 | -624 |
Net income attributable to Franklin Electric Co., Inc. | $81,958 | $82,864 | $63,099 |
Income per share: | ' | ' | ' |
Basic (in dollars per share) | $1.70 | $1.76 | $1.36 |
Diluted (in dollars per share) | $1.68 | $1.73 | $1.33 |
Dividends per common share (in dollars per share) | $0.31 | $0.28 | $0.27 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Net income | $82,698 | $83,738 | $63,723 |
Other comprehensive income/(loss), before tax: | ' | ' | ' |
Foreign currency translation adjustments | -15,987 | 1,835 | -21,391 |
Employee benefit plan activity: | ' | ' | ' |
Prior service cost arising during period | 0 | -819 | -1,179 |
Net gain/(loss) arising during period | 25,624 | -17,665 | -16,406 |
Amortization arising during period | 4,568 | 2,567 | 3,351 |
Other comprehensive income/(loss) | 14,205 | -14,082 | -35,625 |
Income (tax)/benefit related to items of other comprehensive income | -12,113 | 6,200 | 5,500 |
Other comprehensive income/(loss), net of tax | 2,092 | -7,882 | -30,125 |
Comprehensive income | 84,790 | 75,856 | 33,598 |
Comprehensive income attributable to noncontrolling interest | 415 | 874 | 624 |
Comprehensive income attributable to Franklin Electric Co., Inc. | $84,375 | $74,982 | $32,974 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $134,553 | $103,338 |
Receivables, less allowances of $3,015 and $3,148, respectively | 115,127 | 102,918 |
Inventories: | ' | ' |
Raw material | 71,909 | 72,536 |
Work-in-process | 17,978 | 18,295 |
Finished goods | 101,674 | 101,017 |
Total inventories | 191,561 | 191,848 |
Deferred income taxes | 10,072 | 7,912 |
Other current assets | 21,041 | 22,901 |
Total current assets | 472,354 | 428,917 |
Property, plant and equipment, at cost: | ' | ' |
Land and buildings | 121,154 | 90,616 |
Machinery and equipment | 227,521 | 204,408 |
Furniture and fixtures | 32,104 | 26,887 |
Other | 26,844 | 33,500 |
Property, plant, and equipment, gross | 407,623 | 355,411 |
Less: Allowance for depreciation | -199,027 | -183,436 |
Property, plant, and equipment, net | 208,596 | 171,975 |
Asset held for sale | 1,750 | 0 |
Deferred income tax | 2,969 | 2,540 |
Intangible assets, net | 148,663 | 158,117 |
Goodwill | 207,220 | 208,141 |
Other assets | 10,321 | 6,689 |
Total assets | 1,051,873 | 976,379 |
Current liabilities: | ' | ' |
Accounts payable | 57,755 | 68,660 |
Deferred tax liability | 1,227 | 1,173 |
Accrued expenses | 62,081 | 60,415 |
Income taxes | 2,048 | 215 |
Current maturities of long-term debt and short-term borrowings | 15,363 | 15,176 |
Total current liabilities | 138,474 | 145,639 |
Long-term debt | 174,166 | 150,729 |
Deferred income taxes | 54,618 | 40,136 |
Employee benefit plans | 41,685 | 78,967 |
Other long-term liabilities | 39,543 | 38,659 |
Commitments and contingencies (see Note 18) | 0 | 0 |
Redeemable noncontrolling interest | 5,171 | 5,263 |
Shareowners' equity: | ' | ' |
Common stock (65,000 shares authorized, $.10 par value) outstanding (47,715 and 47,132, respectively) | 4,771 | 4,712 |
Additional capital | 194,810 | 170,890 |
Retained earnings | 450,855 | 395,950 |
Accumulated other comprehensive loss | -54,729 | -57,146 |
Total shareowners' equity | 595,707 | 514,406 |
Noncontrolling interest | 2,509 | 2,580 |
Total equity | 598,216 | 516,986 |
Total liabilities and equity | $1,051,873 | $976,379 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ' | ' |
Allowance for doubtful accounts (in dollars) | $3,015 | $3,148 |
Shareowners' equity: | ' | ' |
Common shares, authorized (in shares) | 65,000,000 | 65,000,000 |
Common shares, par value (in dollars per share) | $0.10 | $0.10 |
Common shares, outstanding | 47,715,000 | 47,132,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $82,698 | $83,738 | $63,723 |
Adjustments to reconcile net income to net cash flows from operating activities: | ' | ' | ' |
Depreciation and amortization | 31,356 | 28,335 | 25,295 |
Share-based compensation | 4,875 | 6,253 | 3,970 |
Deferred income taxes | 1,707 | 8,571 | 3,867 |
(Gain)/loss on disposals of plant and equipment | 288 | -216 | 2,781 |
Gain on equity investment | 0 | -12,212 | 0 |
Asset impairment | 1,251 | 583 | 200 |
Foreign exchange expense | 3,331 | 1,662 | 1,422 |
Excess tax from share-based payment arrangements | -5,153 | -5,246 | -2,495 |
Changes in assets and liabilities, net of acquisitions: | ' | ' | ' |
Receivables | -16,729 | -9,603 | -926 |
Inventory | -7,612 | -23,706 | 3,923 |
Accounts payable and accrued expenses | 2,126 | 5,330 | 6,827 |
Income taxes | 7,009 | -1,077 | 3,309 |
Employee benefit plans | -7,586 | -5,877 | -10,769 |
Other | 713 | -6,344 | -1,206 |
Net cash flows from operating activities | 98,274 | 70,191 | 99,921 |
Cash flows from investing activities: | ' | ' | ' |
Additions to property, plant, and equipment | -67,557 | -39,312 | -21,846 |
Proceeds from sale of property, plant, and equipment | 138 | 2,286 | 324 |
Additions to intangibles | -291 | -744 | -1,216 |
Cash paid for acquisitions, net of cash acquired | -3,609 | -64,359 | -25,143 |
Purchase of remaining redeemable noncontrolling shares | 0 | 0 | -7,056 |
Additional consideration for prior acquisition | 96 | 0 | -7,765 |
Cash paid for minority equity investment | -5,700 | 0 | 0 |
Loan to customer | 0 | 0 | -3,318 |
Proceeds from loan to customer | 471 | 489 | 265 |
Net cash flows from investing activities | -76,452 | -101,640 | -65,755 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from issuance of debt | 70,299 | 71,988 | 19,841 |
Repayment of debt | -45,254 | -76,424 | -19,917 |
Proceeds from issuance of common stock | 14,068 | 15,432 | 8,910 |
Excess tax from share-based payment arrangements | 5,153 | 5,246 | 2,495 |
Purchases of common stock | -12,364 | -21,689 | -13,910 |
Dividends paid | -15,294 | -13,811 | -12,890 |
Payments of contingent consideration liability | -5,555 | 0 | 0 |
Net cash flows from financing activities | 11,053 | -19,258 | -15,471 |
Effect of exchange rate changes on cash | -1,660 | 708 | -5,428 |
Net change in cash and equivalents | 31,215 | -49,999 | 13,267 |
Cash and equivalents at beginning of period | 103,338 | 153,337 | 140,070 |
Cash and equivalents at end of period | 134,553 | 103,338 | 153,337 |
Cash paid for income taxes | -19,062 | 22,635 | 13,841 |
Cash paid for interest, net of capitalized interest of $748, $286, and $0, respectively | 10,159 | 11,491 | 10,504 |
Non-cash items: | ' | ' | ' |
Additions to property, plant, and equipment, not yet paid | 1,112 | 3,265 | 187 |
Pioneer Pump Holdings Inc | ' | ' | ' |
Non-cash items: | ' | ' | ' |
Pioneer Pump Holdings, Inc. liability for mandatory share purchase | 0 | 22,924 | 0 |
Impo Motor Pompa Sanayi ve Ticaret A.S. | ' | ' | ' |
Non-cash items: | ' | ' | ' |
Payable to seller of Impo Motor Pompa Sanayi ve Ticaret A.S. | 0 | 546 | 5,038 |
Payable to seller of Vertical S.p.A. | 0 | 546 | 5,038 |
Vertical S.p.A. | ' | ' | ' |
Non-cash items: | ' | ' | ' |
Payable to seller of Impo Motor Pompa Sanayi ve Ticaret A.S. | 0 | 0 | 370 |
Payable to seller of Vertical S.p.A. | $0 | $0 | $370 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Capitalized interest | $748 | $286 | $0 |
CONSOLIDATED_STATEMENTS_OF_EQU
CONSOLIDATED STATEMENTS OF EQUITY (USD $) | Total | Common Stock | Additional Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Noncontrolling Interest | Redeemable Noncontrolling Interest |
In Thousands | |||||||
Balance at Jan. 01, 2011 | ' | $4,652 | $129,705 | $311,579 | ($19,442) | $2,055 | $7,291 |
Balance (in shares) at Jan. 01, 2011 | ' | 46,512 | ' | ' | ' | ' | ' |
Net income | 63,723 | ' | ' | 63,099 | ' | 474 | 150 |
Currency translation adjustment | ' | ' | ' | ' | -21,391 | 223 | -1,128 |
Minimum pension liability adjustment, net of tax of $12,113, $6,200 and $5,500 for 2013, 2012 and 2011, respectively | ' | ' | ' | ' | -8,734 | ' | ' |
Adjustments to redemption value | ' | ' | ' | -228 | ' | ' | 228 |
Dividends on common stock ($0.3050, $0.2850, and $0.2675 per share for the years of 2013, 2012, and 2011, respectively) | ' | ' | ' | -12,441 | ' | ' | ' |
Noncontrolling dividends | ' | ' | ' | ' | ' | -449 | ' |
Common stock issued | ' | 68 | 8,875 | -7 | ' | ' | ' |
Common stock issued (in shares) | ' | 706 | ' | ' | ' | ' | ' |
Share-based compensation | ' | 10 | 3,965 | ' | ' | ' | ' |
Share-based compensation (in shares) | ' | 104 | ' | ' | ' | ' | ' |
Common stock repurchased or received for stock options exercised | ' | -64 | ' | -13,878 | ' | ' | ' |
Common stock repurchased or received for stock options exercised (in shares) | ' | -646 | ' | ' | ' | ' | ' |
Purchase of remaining redeemable noncontrolling interest | ' | ' | ' | ' | 303 | ' | 7,655 |
Adjustment to acquired fair value | ' | ' | ' | ' | ' | ' | 6,521 |
Tax benefit of stock options exercised | ' | ' | 2,064 | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | ' | 4,666 | 144,609 | 348,124 | -49,264 | 2,303 | 5,407 |
Balance (in shares) at Dec. 31, 2011 | ' | 46,676 | ' | ' | ' | ' | ' |
Net income | 83,738 | ' | ' | 82,864 | ' | 446 | 428 |
Currency translation adjustment | ' | ' | ' | ' | 1,835 | 275 | -572 |
Minimum pension liability adjustment, net of tax of $12,113, $6,200 and $5,500 for 2013, 2012 and 2011, respectively | ' | ' | ' | ' | -9,717 | ' | ' |
Dividends on common stock ($0.3050, $0.2850, and $0.2675 per share for the years of 2013, 2012, and 2011, respectively) | ' | ' | ' | -13,367 | ' | ' | ' |
Noncontrolling dividends | ' | ' | ' | ' | ' | -444 | ' |
Common stock issued | ' | 116 | 15,374 | -23 | ' | ' | ' |
Common stock issued (in shares) | ' | 1,162 | ' | ' | ' | ' | ' |
Share-based compensation | ' | 12 | 6,247 | ' | ' | ' | ' |
Share-based compensation (in shares) | ' | 114 | ' | ' | ' | ' | ' |
Common stock repurchased or received for stock options exercised | ' | -82 | ' | -21,648 | ' | ' | ' |
Common stock repurchased or received for stock options exercised (in shares) | ' | -820 | ' | ' | ' | ' | ' |
Tax benefit of stock options exercised | ' | ' | 4,660 | ' | ' | ' | ' |
Balance at Dec. 29, 2012 | 514,406 | 4,712 | 170,890 | 395,950 | -57,146 | 2,580 | 5,263 |
Balance (in shares) at Dec. 29, 2012 | 47,132 | 47,132 | ' | ' | ' | ' | ' |
Net income | 82,698 | ' | ' | 81,958 | ' | 656 | 84 |
Currency translation adjustment | ' | ' | ' | ' | -15,662 | 49 | -374 |
Minimum pension liability adjustment, net of tax of $12,113, $6,200 and $5,500 for 2013, 2012 and 2011, respectively | ' | ' | ' | ' | 18,079 | ' | ' |
Adjustments to redemption value | ' | ' | ' | -198 | ' | ' | 198 |
Dividends on common stock ($0.3050, $0.2850, and $0.2675 per share for the years of 2013, 2012, and 2011, respectively) | ' | ' | ' | -14,518 | ' | ' | ' |
Noncontrolling dividends | ' | ' | ' | ' | ' | -776 | ' |
Common stock issued | ' | 88 | 13,989 | -9 | ' | ' | ' |
Common stock issued (in shares) | ' | 880 | ' | ' | ' | ' | ' |
Share-based compensation | ' | 7 | 4,868 | ' | ' | ' | ' |
Share-based compensation (in shares) | ' | 65 | ' | ' | ' | ' | ' |
Common stock repurchased or received for stock options exercised | ' | -36 | ' | -12,328 | ' | ' | ' |
Common stock repurchased or received for stock options exercised (in shares) | ' | -362 | ' | ' | ' | ' | ' |
Tax benefit of stock options exercised | ' | ' | 5,063 | ' | ' | ' | ' |
Balance at Dec. 28, 2013 | $595,707 | $4,771 | $194,810 | $450,855 | ($54,729) | $2,509 | $5,171 |
Balance (in shares) at Dec. 28, 2013 | 47,715 | 47,715 | ' | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_EQU1
CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Minimum pension liability tax | ($12,113) | $6,200 | $5,500 |
Dividends per common share (in dollars per share) | $0.31 | $0.28 | $0.27 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 28, 2013 | |
Accounting Policies [Abstract] | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ' |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Company--“Franklin Electric” or the “Company” shall refer to Franklin Electric Co., Inc. and its consolidated subsidiaries. | |
Fiscal Year--The Company's fiscal year ends on the Saturday nearest December 31. The financial statements and accompanying notes are as of and for the years ended December 28, 2013 (52 weeks), December 29, 2012 (52 weeks), and December 31, 2011 (52 weeks), and referred to as 2013, 2012, and 2011, respectively. | |
Principles of Consolidation--The consolidated financial statements include the accounts of Franklin Electric Co., Inc. and its consolidated subsidiaries. All intercompany transactions have been eliminated. | |
Business Combinations--The Company allocates the purchase price of its acquisitions to the assets acquired, liabilities assumed, and non-controlling interests acquired based upon their respective fair values at the acquisition date. The Company utilizes management estimates and inputs from an independent third-party valuation firm to assist in determining these fair values. The excess of the acquisition price over these estimated fair values is recorded as goodwill. Goodwill is adjusted for any changes to acquisition date fair value amounts made within the measurement period. Acquisition-related transaction costs are recognized separately from the business combination and expensed as incurred. | |
Revenue Recognition--Products are shipped utilizing common carriers direct to customers or, for consignment products, to customer specified warehouse locations. Sales are recognized when the Company’s products are shipped direct or, in the case of consignment products, transferred from the customer specified warehouse location to the customer, at which time transfer of ownership and risk of loss pass to the customer. The Company records net sales revenues after discounts at the time of sale based on specific discount programs in effect, related historical data, and experience. | |
Research and Development Expense--The Company’s research and development activities are charged to expense in the period incurred. The Company incurred expenses of approximately $16.8 million in 2013, $9.9 million in 2012, and $8.2 million in 2011. | |
Cash and Cash Equivalents--The Company considers cash on hand, demand deposits, and highly liquid investments with an original maturity date of three months or less to be cash and cash equivalents. | |
Fair Value of Financial Instruments--The carrying amount of long-term debt was $188.8 million at December 28, 2013 and $164.9 million at December 29, 2012. The estimated fair value of all debt was $203.7 million and $179.8 million at December 28, 2013 and December 29, 2012, respectively. The fair value assumed floating rate debt was valued at par. In the absence of quoted prices in active markets, considerable judgment is required in developing estimates of fair value. Estimates are not necessarily indicative of the amounts the Company could realize in a current market transaction. In determining the fair value of its long-term debt, the Company uses estimates based on rates currently available to the Company for debt with similar terms and remaining maturities. These level 2 inputs were valued using the same historical technique. The Company’s off-balance sheet instruments consist of operating leases. | |
Accounts Receivable, Earned Discounts, and Allowance for Uncollectible Accounts--Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers, net of earned discounts and estimated allowances for uncollectible accounts. Earned discounts are based on specific customer agreement terms. In determining allowances for uncollectible accounts, historical collection experience, current trends, aging of accounts receivable, and periodic credit evaluations of customers’ financial condition are reviewed. The Company believes that the allowance is appropriate; however, actual experience could differ from the original estimates, requiring adjustments to the reserve. | |
Inventories--Effective January 2, 2011, the Company elected to change its accounting principle of valuing all of its inventories that used the LIFO method to the FIFO method. | |
Inventories are stated at the lower of cost or market. The majority of the cost of domestic and foreign inventories is determined using the FIFO method with a portion of inventory costs determined using the average cost method. The Company reviews its inventories for excess or obsolete products or components based on an analysis of historical usage and management's evaluation of estimated future demand, market conditions, and alternative uses for possible excess or obsolete parts. | |
Property, Plant, and Equipment--Property, plant, and equipment are stated at cost. Depreciation of plant and equipment is calculated on a straight line basis over the estimated useful lives of 5 to 20 years for land improvements and buildings, 5 to 10 years for machinery and equipment, and 5 years for furniture and fixtures. Maintenance, repairs, and renewals of a minor nature are expensed as incurred. Betterments and major renewals which extend the useful lives or add to the productive capacity of buildings, improvements, and equipment are capitalized. The Company reviews its property, plant, and equipment for impairment at the asset group level whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The Company’s depreciation expense was $23.4 million, $21.1 million, and $19.4 million in 2013, 2012, and 2011, respectively. | |
Goodwill and Other Intangible Assets--The Company tests goodwill for impairment on an annual basis during the fourth quarter or more frequently as warranted by triggering events that indicate potential impairment. Goodwill is tested at the reporting unit level, which the company has determined to be the North America Water Systems, International Water, and Fueling Systems units. In compliance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other, the Company has evaluated the aggregation criteria and determined that the components within the North America Water Systems and International Water reporting units can be aggregated in 2013. | |
In assessing the recoverability of goodwill, the Company determines the fair value of its reporting units by utilizing a combination of both the income and market valuation approaches. The income approach estimates fair value based upon future revenue, expenses, and cash flows discounted to present value. The market valuation approach estimates fair value using market multipliers of various financial measures compared to a set of comparable public companies. | |
An indication of impairment exists if the carrying value of the reporting unit is higher than its fair value, as determined by the above approach. The second step of testing as outlined in FASB ASC Topic 350 must be performed to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of the reporting unit's goodwill to its carrying value in the same manner as if the reporting units were being acquired in a business combination. The Company would allocate the fair value to all of the reporting unit's assets and liabilities, including any unrecognized intangible assets, in a hypothetical analysis that would calculate the implied fair value of goodwill. The Company would record an impairment charge for the difference between the implied fair value of goodwill and the recorded goodwill. | |
The Company also tests indefinite lived intangible assets, primarily trade names, for impairment on an annual basis during the fourth quarter or more frequently as warranted by triggering events that indicate potential impairment. In assessing the recoverability of the trade names, the Company determines the fair value using an income approach. The income approach estimates fair value based upon future revenue and estimated royalty rates. An indication of impairment exists if the carrying value of the trade names is higher than the fair value. The Company would record an impairment charge for the difference. | |
Amortization is recorded and calculated for other definite lived intangible assets on a basis that reflects cash flows over the estimated useful lives. The weighted average number of years over which each intangible class is amortized is 17 years for patents, 6 years for supply agreements, 15 years for technology, 13 to 20 years for customer relationships, 5 years for software, and 8 years for all others. | |
Warranty Obligations--Warranty terms are generally 2 years from date of manufacture or one year from date of installation. The general warranty liability is recorded when revenue is recognized and is based on actual historical return rates from the most recent warranty periods. In 2007, the Company began offering an extended warranty program to certain Water Systems customers, which provides warranty coverage up to 5 years from the date of manufacture. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims and expected customer returns. The Company actively studies trends of warranty claims and takes action to improve product quality and minimize warranty claims. | |
Income Taxes--Income taxes are accounted for in accordance with FASB ASC Topic 740, Income Taxes. Under this guidance, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities and net operating loss and credit carry forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company records a liability for uncertain tax positions by establishing a recognition threshold and measurement attribute for recognition and measurement of a tax position taken or expected to be taken in a tax return. | |
Share-Based Compensation--The Company accounts for compensation costs for all share-based payments based on the grant-date fair value estimated in accordance with fair value provisions. | |
Pension--The Company makes its determination for pension, postretirement, and post employment benefit plans liabilities based on management estimates and consultation with actuaries, incorporating estimates, and assumptions of future plan service costs, future interest costs on projected benefit obligations, rates of compensation increases, employee turnover rates, anticipated mortality rates, expected investment returns on plan assets, asset allocation assumptions of plan assets, and other factors. | |
Earnings Per Common Share--Basic and diluted earnings per share are computed and disclosed in accordance with FASB ASC Topic 260, Earnings Per Share. The Company utilizes the two-class method to compute earnings available to common shareholders. Under the two-class method, earnings are adjusted by accretion amounts to redeemable noncontrolling interests recorded at redemption value. The adjustments represent dividend distributions, in substance, to the noncontrolling interest holder as the holders have contractual rights to receive an amount upon redemption other than the fair value of applicable shares. As a result, earnings are adjusted to reflect this in substance distribution that is different from other common shareholders. In addition, the Company allocates net earnings 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 allocable 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 allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. | |
Translation of Foreign Currency Financial Statements--All assets and liabilities of foreign subsidiaries in functional currency other than the U.S. dollar are translated at year end exchange rates. All revenue and expense accounts are translated at average rates in effect during the respective period. Adjustments for translating longer term foreign currency assets and liabilities in U.S. dollars are included as a component of other comprehensive income. Transaction gains and losses that arise from shorter term exchange rate fluctuations are included in the results of operations in “Foreign exchange income/(expense)”, as incurred. | |
Significant Estimates--The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions by management affect allowance for uncollectible accounts, inventory valuation, warranty, business combinations, redeemable noncontrolling interest, mandatory share purchase, trade names and goodwill, income taxes, pension and employee benefit obligations, and share-based compensation. | |
Although the Company regularly assesses these estimates, actual results could materially differ. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. |
ACCOUNTING_PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 12 Months Ended |
Dec. 28, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
ACCOUNTING PRONOUCEMENTS | ' |
ACCOUNTING PRONOUNCEMENTS | |
In March 2013, the FASB issued Accounting Standards Update ("ASU") 2013-02 | |
Comprehensive Income. This guidance requires companies to disclose additional information about items reclassified out of | |
accumulated other comprehensive income ("AOCI") either on the face of the income statement or as a separate footnote to the | |
financial statements. In addition, changes in AOCI balance by component are to be presented. ASU 2013-02 is effective for | |
both annual and interim periods for fiscal years beginning after December 15, 2012. The Company adopted ASU 2013-02 on a | |
prospective basis, effective December 30, 2012. Refer to Note 14 for disclosures made. As the ASU addressed only disclosure | |
requirements, adoption of ASU 2013-02 did not have a material impact on the Company's financial position, results of | |
operations, or cash flows. |
STOCK_SPLIT
STOCK SPLIT | 12 Months Ended |
Dec. 28, 2013 | |
Stock Split [Abstract] | ' |
STOCK SPLIT | ' |
STOCK SPLIT | |
On February 22, 2013, the Company announced that its Board of Directors declared a two-for-one stock split of the Company's common stock in the form of a 100 percent stock distribution. The stock distribution was distributed or paid on March 18, 2013, to stockholders of record as of March 4, 2013. As a result of this action, approximately 23.7 million shares were issued to stockholders of record as of March 4, 2013. The par value of the common stock remains at $0.10 per share and, accordingly, approximately $2.37 million was transferred from retained earnings to common stock. Earnings and dividends declared per share and weighted average shares outstanding are presented in this Form 10-K after the effect of the 100 percent stock distribution. The two-for-one stock split is reflected in the share and per share amounts in all periods presented in this Form 10-K. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Business Combinations [Abstract] | ' | ||||||||||||
ACQUISITIONS | ' | ||||||||||||
ACQUISITIONS | |||||||||||||
During 2013, the Company made two acquisitions, neither of which was individually material, in the water segment for a total purchase price of approximately $3.6 million. The results of the two newly acquired businesses from the dates of acquisition through December 28, 2013 were not material. | |||||||||||||
In an agreement dated November 16, 2012 the Company added to its Fueling Systems segment by acquiring certain assets and 100% of the common stock of Flex-ing, Incorporated ("Flex-ing") for approximately $10.4 million in an all cash transaction. Located in Sherman, Texas, Flex-ing designs and manufactures a variety of fueling equipment that is distributed through the same channels as the core product offering of the Fueling Systems segment. | |||||||||||||
The Flex-ing intangible assets of $8.9 million consist primarily of customer relationships, which will be amortized utilizing the straight line method over 15 years, and trademarks, which are classified as indefinite lived assets and will not be amortized. All of the goodwill was recorded as part of the Fueling Systems segment and is not expected to be deductible for tax purposes. | |||||||||||||
The goodwill amount of $4.0 million resulting from the Flex-ing acquisition consists primarily of broadened product lines that can be distributed through the Company's existing international distribution channels. | |||||||||||||
In an agreement dated August 9, 2012, between the Company and Cerus Industrial Corporation ("Cerus"), the Company acquired all of the outstanding shares of Cerus, net of debt acquired, for approximately $24.4 million, subject to certain terms and conditions. The Company funded the acquisition with cash on hand and short-term borrowings paid back within the year. | |||||||||||||
Cerus, located in Hillsboro, Oregon, designs, manufactures, and distributes motor controls, motor starters, contractors, protection devices, and variable frequency drives to a wide range of distributor and original equipment manufacturers in North America. | |||||||||||||
The Cerus intangible assets of $17.3 million consist primarily of customer relationships, which will be amortized utilizing the straight line method over 17 years, and trademarks, which are classified as indefinite lived assets and will not be amortized. | |||||||||||||
The goodwill amount of $5.4 million resulting from the Cerus acquisition consists primarily of accelerated growth resulting from increased technical and product development capacity, broadened product lines, reduced manufacturing costs, and movement into adjacent market areas. All of the goodwill was recorded as part of the Water Systems segment and is not expected to be deductible for tax purposes. Preliminary goodwill decreased by $0.1 million during the year ended December 28, 2013, due to an escrow refund received by the Company. | |||||||||||||
In an agreement dated March 7, 2012, between the Company and Pioneer Pump Holdings, Inc. ("PPH"), the Company acquired an additional 39.5 percent of the outstanding shares of PPH, net of debt acquired, for approximately $30.3 million, subject to certain terms and conditions. The Company funded the acquisition with approximately $30.3 million in cash. The Company previously held a 31.0 percent equity interest in PPH (see Note 7). As a result of the additional acquisition, the Company's total equity interest in PPH increased to 70.5 percent, resulting in the consolidation of PPH in the Company's financial statements. Accordingly, the original equity interest in PPH was remeasured to its fair value of $23.9 million as of March 7, 2012, based on the income approach which utilized management estimates and consultation with an independent third-party valuation firm. Inputs included an analysis of the enterprise value based on financial projections and ownership percentages. As a result, the Company recognized a one-time gain of $12.2 million in the "Other income/(expense)" line of the Company's condensed consolidated statement of income for the first quarter ended March 31, 2012. | |||||||||||||
PPH is the holding company for two wholly-owned subsidiaries, Pioneer Pump, Inc. ("PPI") located in Canby, Oregon, and Pioneer Pump, Ltd. ("PPL") located in Rattlesden, United Kingdom, which holds an additional subsidiary in Wadeville, Germiston, South Africa. PPH is a leader in the manufacture of large, engine-driven centrifugal pumps used for dewatering in oil and gas, municipal, construction and mining applications. | |||||||||||||
The Company also entered into a further stock purchase agreement with the noncontrolling interest holders to purchase the remaining shares of PPH on or about, but no later than, March 31, 2015, for a purchase price based on a multiple of PPH's adjusted average earnings for 2013 and 2014 less net indebtedness. Accordingly, a resulting liability of $22.9 million was recorded in the "Other long-term liabilities" line of the Company's consolidated balance sheet. Any required adjustments to the liability driven by changes in the expected purchase price will be recorded in the "Interest expense" line of the Company's consolidated statement of income. The mandatory share purchase liability remained recorded at the initial carrying amount as of December 28, 2013. As a result, no adjustments were necessary for the year ended December 28, 2013. | |||||||||||||
The PPH intangible assets of $43.9 million consist primarily of customer relationships, which will be amortized utilizing the straight line method over 17 to 19 years, and trademarks, which are classified as indefinite lived assets and will not be amortized. | |||||||||||||
The goodwill amount of $26.5 million resulting from the PPH acquisition consists primarily of expanding sales of packaged systems products and the recording of deferred taxes related to acquired assets. PPH's presence in the oil and gas market will also complement the Company's initiative to introduce submersible pumping systems in this market. All of the goodwill was recorded as part of the Water Systems segment and is not expected to be deductible for tax purposes. Preliminary goodwill increased by $1.5 million during the year ended December 29, 2012, due to purchase accounting adjustments to intangible assets and inventory resulting from additional information provided for the provisional valuation. | |||||||||||||
The final purchase prices assigned to the major identifiable assets and liabilities for the Flex-ing, Cerus, and PPH acquisitions are as follows: | |||||||||||||
(In millions) | Flex-ing | Cerus | PPH | Total | |||||||||
Assets: | |||||||||||||
Cash acquired | $ | 0.1 | $ | — | $ | 0.8 | $ | 0.9 | |||||
Current assets | 2 | 3.8 | 38.1 | 43.9 | |||||||||
Property, plant, and equipment | 0.4 | 0.3 | 3.6 | 4.3 | |||||||||
Intangible assets | 8.9 | 17.3 | 43.9 | 70.1 | |||||||||
Goodwill | 4 | 5.4 | 26.5 | 35.9 | |||||||||
Total assets | 15.4 | 26.8 | 112.9 | 155.1 | |||||||||
Liabilities | (5.0 | ) | (2.4 | ) | (58.7 | ) | (66.1 | ) | |||||
Total | 10.4 | 24.4 | 54.2 | 89 | |||||||||
Less: Fair value of original equity interest | — | — | (23.9 | ) | (23.9 | ) | |||||||
Total purchase price | $ | 10.4 | $ | 24.4 | $ | 30.3 | $ | 65.1 | |||||
The fair values of the Flex-ing, Cerus, and PPH identifiable intangible assets and property, plant, and equipment are final amounts as of fiscal year end 2013 in conjunction with final valuations. An additional valuation adjustment of $0.1 million was made in 2013 and is reflected in the table above. The Company utilized management estimates and consultation with an independent third-party valuation firm to assist in the valuations. | |||||||||||||
The following unaudited proforma financial information for the years ended December 29, 2012 and December 31, 2011 gives effect to the acquisitions of Flex-ing, Cerus, and PPH by the Company as if the acquisitions had occurred at the beginning of the 2012 and 2011 years. These unaudited proforma combined condensed financial statements are prepared for informational purposes only and are not necessarily indicative of actual results or financial position that would have been achieved had the acquisitions been consummated on the dates indicated and are not necessarily indicative of future operating results or financial position of the consolidated companies. The unaudited proforma combined condensed financial statements do not give effect to any cost savings or incremental costs that may result from the integration of Flex-ing, Cerus, and PPH with the Company. | |||||||||||||
FRANKLIN ELECTRIC CO., INC. | |||||||||||||
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||
(In millions, except per share amounts) | (Unaudited) | (Unaudited) | |||||||||||
2012 | 2011 | ||||||||||||
Net sales | $ | 925 | $ | 914 | |||||||||
Net income | 84 | 68 | |||||||||||
Per share data: | |||||||||||||
Basic earnings per share | $ | 1.79 | $ | 1.46 | |||||||||
Diluted earnings per share | $ | 1.76 | $ | 1.43 | |||||||||
Flex-ing, Cerus, and PPH contributed a total of $48.4 million of revenue and $1.7 million of earnings to the Company's consolidated statements of income from date of acquisition through December 29, 2012. | |||||||||||||
In an agreement dated May 2, 2011, between Franklin Electric BV (a wholly owned subsidiary of the Company) and Impo Motor Pompa Sanayi ve Ticaret A.S. ("Impo"), the Company acquired 80 percent of the outstanding shares of Impo, net of debt acquired plus working capital adjustments, for approximately 40.0 million Turkish lira ("TRY"), $26.1 million at the then current exchange rate, subject to certain terms and conditions. | |||||||||||||
Impo, located in Izmir, Turkey, is the leading supplier of groundwater pumping equipment in Turkey. The Impo acquisition, combined with the Company's current presence in the region, provides the Company with the leading position in the rapidly growing market for groundwater pumping systems in Turkey and throughout the Middle East. It also provides a low cost manufacturing base for supplying the entire region. | |||||||||||||
The intangible assets of $15.3 million consist primarily of customer relationships, which will be amortized over 13 years, and trademarks. All of the goodwill was recorded as part of the Water Systems segment and is not expected to be deductible for tax purposes. | |||||||||||||
The purchase agreement for Impo includes an earn-out provision payable to the sellers if certain performance criteria are achieved in any year from 2011 to 2013. Earn-out payments are capped at TRY 10.0 million in the aggregate. As of the acquisition date, the Company recorded contingent consideration of TRY 8.5 million ($5.5 million) as determined by the income approach. The performance criteria resulting in the earn-out provision were achieved for the fiscal year ended 2012. The recorded contingent consideration of TRY 10.0 million ($5.6 million) as of December 29, 2012 was paid out during the first quarter of 2013. | |||||||||||||
The purchase price assigned to each major identifiable asset and liability was as follows: | |||||||||||||
(In millions) | |||||||||||||
Assets: | |||||||||||||
Cash acquired | $ | 0.9 | |||||||||||
Current assets | 26.4 | ||||||||||||
Property, plant, and equipment | 11.5 | ||||||||||||
Intangible assets | 15.3 | ||||||||||||
Goodwill | 8.9 | ||||||||||||
Other assets | 2.8 | ||||||||||||
Total assets | 65.8 | ||||||||||||
Contingent consideration | (5.5 | ) | |||||||||||
Liabilities | (27.7 | ) | |||||||||||
Total identifiable assets | 32.6 | ||||||||||||
Noncontrolling interest | (6.5 | ) | |||||||||||
Total purchase price | $ | 26.1 | |||||||||||
An immaterial adjustment to deferred taxes of $2.7 million was included in goodwill during the fourth quarter of 2012 after the close of the measurement period. | |||||||||||||
The fair value of the identifiable intangible assets and property, plant, and equipment are final as of June 30, 2012, in conjunction with final valuations. The Company utilized management estimates and consultation with an independent third-party valuation firm to assist in the valuation. The difference between actual sales for the Company and proforma annual sales including Impo as if it were acquired at the beginning of the year was not material as a component of the Company's consolidated sales for the year ended December 31, 2011. Due to the immaterial nature of the acquisition, the Company has not included full year proforma statements of income for the acquisition year and previous year. | |||||||||||||
In an agreement dated December 19, 2011, the Company redeemed the 25 percent noncontrolling interest of Vertical, increasing the Company's ownership to 100 percent, for approximately €5.7 million, $7.4 million at the then current exchange rate. The Company paid €5.4 million, $7.1 million at the then current exchange rate, in 2011 with the remaining purchase price paid in 2012. The recorded redemption value in the "Redeemable noncontrolling interest" line of the Company's consolidated balance sheet prior to the transaction was $7.7 million, which included previously recorded fair value and currency translation adjustments. This addition to the Water Systems segment further solidifies the Company's position in the worldwide market for stainless steel water pumps. The original 75 percent controlling interest was acquired in the first quarter of 2009. | |||||||||||||
Transaction costs were expensed as incurred under the guidance of FASB ASC Topic 805, Business Combinations. Transaction costs included in selling, general, and administrative expense in the Company’s statement of income were $1.1 million, $0.3 million, and $0.4 million for the fiscal years ended 2013, 2012, and 2011, respectively. |
REDEEMABLE_NONCONTROLLING_INTE
REDEEMABLE NONCONTROLLING INTERESTS | 12 Months Ended |
Dec. 28, 2013 | |
Noncontrolling Interest [Abstract] | ' |
REDEEMABLE NONCONTROLLING INTERESTS | ' |
REDEEMABLE NONCONTROLLING INTERESTS | |
On May 2, 2011, the Company completed the acquisition of 80 percent of Impo. The 20 percent noncontrolling interest was recorded at fair value as of the acquisition date. The noncontrolling interest holders have the option, which is embedded in the noncontrolling interest, to require the Company to redeem their ownership interests after May 2, 2014, three years after the original agreement was signed. The combination of a noncontrolling interest and a redemption feature resulted in a redeemable noncontrolling interest. | |
The noncontrolling interest in Impo is redeemable at other than fair value as the redemption value is determined based on a specified formula. The noncontrolling interest becomes redeemable after the passage of time, and therefore the Company records the carrying amount of the noncontrolling interest at the greater of (1) the initial carrying amount, increased or decreased for each noncontrolling interest's share of net income or loss and its share of other comprehensive income or loss and dividends (“carrying amount”) or (2) the redemption value which is determined based on the greater of the redemption floor value or the then-current specified earnings multiple. As of December 28, 2013, the Impo redeemable noncontrolling interest was recorded at the redemption value. | |
According to FASB ASC Topic 810, Consolidation and Emerging Issues Task Force ("EITF") Topic No. D-98, Classification and Measurement of Redeemable Securities, redeemable noncontrolling interests issued in the form of common securities, to the extent that the noncontrolling interest holder has a contractual right to receive an amount upon share redemption that is other than the fair value of such shares, then the noncontrolling interest holder has, in substance, received a dividend distribution that is different from other common shareholders. Therefore, adjustments to the noncontrolling interest to reflect the redemption amount should be reflected in the computation of earnings per share using the two-class method. Under the two-class method, the Company has elected to treat as a dividend only the portion of the periodic redemption value adjustment (if any) that reflects a redemption value in excess of carrying value. Adjustments of $0.2 million were necessary for the fiscal year ended 2013. No adjustments were necessary for the fiscal year ended 2012. Adjustments totaling $0.2 million were necessary for the fiscal year ended 2011. The 2011 adjustments resulted from the Company's previously held redeemable noncontrolling interest in Vertical. A resulting adjustment to the earnings per share computation was also necessary (see Note 15). The noncontrolling interest in Vertical was redeemed by the Company in the fourth quarter of 2011 (see Note 4). |
FAIR_VALUE_MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||||||
FAIR VALUE MEASUREMENTS | |||||||||||||||||||||
FASB ASC Topic 820, Fair Value Measurements and Disclosures, provides guidance for defining, measuring, and disclosing fair value within an established framework and hierarchy. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The standard established a fair value hierarchy which requires an entity to maximize the use of observable inputs and to minimize the use of unobservable inputs when measuring fair value. The three levels of inputs that may be used to measure fair value within the hierarchy are as follows: | |||||||||||||||||||||
Level 1 – Quoted prices for identical assets and liabilities in active markets; | |||||||||||||||||||||
Level 2 – Quoted prices for similar assets and liabilities in active markets, quoted prices for identical or similar assets and liabilities in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and | |||||||||||||||||||||
Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. | |||||||||||||||||||||
As of December 28, 2013 and December 29, 2012, the assets and liabilities measured at fair value on a recurring basis were as set forth in the table below. The "Recognized Loss" amounts in the table are accumulated totals since inception. | |||||||||||||||||||||
December 28, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs | Significant Unobservable Inputs (Level 3) | Recognized Loss | |||||||||||||||||
(Level 2) | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||
Cash equivalents | $ | 6.6 | $ | 6.6 | $ | — | $ | — | $ | — | |||||||||||
Impo contingent consideration | — | — | — | — | — | ||||||||||||||||
29-Dec-12 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Recognized Loss | |||||||||||||||||
Cash equivalents | $ | 13.8 | $ | 13.8 | $ | — | $ | — | $ | — | |||||||||||
Impo contingent consideration | 5.6 | — | — | 5.6 | 0.8 | ||||||||||||||||
The Company's Level 1 assets consist of cash equivalents which are generally comprised of domestic money market funds invested in high quality, short-term liquid assets, and foreign bank guaranteed certificates of deposit. | |||||||||||||||||||||
The Company has no assets or liabilities classified as Level 2. | |||||||||||||||||||||
The Company has no assets or liabilities classified as Level 3 as of December 28, 2013; however, during the second quarter of 2011, the Company recorded $5.5 million (TRY 8.5 million) of contingent consideration related to the second quarter 2011 acquisition of Impo. The fair value of this Level 3 liability was $5.6 million (TRY 10.0 million) as of December 29, 2012, based on Impo achieving specified financial targets. The contingent consideration of $5.6 million (TRY 10.0 million) was paid out during the first quarter of 2013. | |||||||||||||||||||||
The following table summarizes information regarding the Company’s non-financial assets and liabilities measured at fair value on a non-recurring basis: | |||||||||||||||||||||
28-Dec-13 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Recognized Loss | |||||||||||||||||
Asset held for sale | $ | 1.8 | $ | — | $ | — | $ | 1.8 | $ | 1.3 | |||||||||||
29-Dec-12 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Recognized Loss | |||||||||||||||||
Asset held for sale | $ | — | $ | — | $ | — | $ | — | $ | 3.6 | |||||||||||
The Company's Level 3 assets consist of held for sale assets. During the fourth quarter of 2013, the Company agreed upon the terms of a letter of intent to sell its Oklahoma City facility. As a result, the Company reduced the carrying amount of the held for sale asset to approximate the agreed upon sales price less costs to sell. The transaction was completed during the first quarter of 2014. The 2012 recognized loss related to the fourth quarter 2012 sale of the Company's former Siloam Springs manufacturing facility. |
OTHER_ASSETS
OTHER ASSETS | 12 Months Ended |
Dec. 28, 2013 | |
Equity Method Investments and Joint Ventures [Abstract] | ' |
OTHER ASSETS | ' |
OTHER ASSETS | |
The Company obtained a 25.0 percent equity interest in a Water pumping systems company during the fourth quarter of 2013. The investment is accounted for using the equity method and is included in "Other assets" on the Company's consolidated balance sheet. The carrying amount of the investment is adjusted for the Company's proportionate share of earnings, losses, and dividends. The carrying value of the investment was $5.7 million as of December 28, 2013. The Company's proportionate share of earnings, included in the "Other income/(expense)" line of the Company's consolidated statements of income, were immaterial for the year ended December 28, 2013. | |
In 2005, the Company held a 35.0 percent equity interest in PPI, which was accounted for using the equity method. During the first quarter of 2012, the shareholders of PPI and PPL contributed shares to form a new holding company, PPH, in exchange for equivalent value and control in PPH. As a result of this contribution, the Company's equity interest decreased to 31.0 percent of PPH. On March 7, 2012, the Company acquired a controlling interest in PPH, resulting in the consolidation of PPH in the Company's financial statements (see Note 4). The carrying amount of the equity investment prior to the acquisition of the controlling interest was $11.7 million as of March 6, 2012 and $11.0 million as of December 31, 2011. The Company’s proportionate share of Pioneer Pump, Inc. earnings, included in the “Other income/(expense)” line of the Company’s consolidated statements of income, was $0.0 million, $0.4 million, and $2.3 million for the years 2013, 2012, and 2011 respectively. The additional purchase was made in 2012 bringing total ownership to 70.5 percent (see Note 4). | |
During the second quarter of 2011, the Company entered into a loan agreement with the parent of a customer. The current maturity is included in "Receivables" and the long term portion is included in "Other assets" on the Company's consolidated balance sheet. The agreement provides for interest on the loan at a variable market interest rate with the customer to repay the loan plus interest in semi-annual installments throughout the 7 year term. The Company has a long term relationship with the customer and considers the loan fully collectible. |
GOODWILL_AND_OTHER_INTANGIBLE_
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | ' | ||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | |||||||||||||||||||||
The carrying amounts of the Company’s intangible assets are as follows: | |||||||||||||||||||||
(In millions) | 2013 | 2012 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||
Amortized intangibles: | |||||||||||||||||||||
Patents | $ | 7.8 | $ | (5.9 | ) | $ | 7.8 | $ | (5.7 | ) | |||||||||||
Supply agreements | 4.4 | (4.4 | ) | 4.4 | (4.4 | ) | |||||||||||||||
Technology | 7.5 | (3.8 | ) | 7.5 | (3.2 | ) | |||||||||||||||
Customer relationships | 125.1 | (29.7 | ) | 125.9 | (23.1 | ) | |||||||||||||||
Software | 2.1 | (0.4 | ) | 1.7 | (0.1 | ) | |||||||||||||||
Other | 1.3 | (1.2 | ) | 1.2 | (1.2 | ) | |||||||||||||||
Total | $ | 148.2 | $ | (45.4 | ) | $ | 148.5 | $ | (37.7 | ) | |||||||||||
Unamortized intangibles: | |||||||||||||||||||||
Trade names | 45.9 | — | 47.3 | — | |||||||||||||||||
Total intangibles | $ | 194.1 | $ | (45.4 | ) | $ | 195.8 | $ | (37.7 | ) | |||||||||||
The weighted average number of years over which each intangible class is amortized is as follows: | |||||||||||||||||||||
Class | Years | ||||||||||||||||||||
Patents | 17 | ||||||||||||||||||||
Supply agreements | 6 | ||||||||||||||||||||
Technology | 15 | ||||||||||||||||||||
Customer relationships | 13 - 20 | ||||||||||||||||||||
Software | 5 | ||||||||||||||||||||
Other | 8 | ||||||||||||||||||||
Amortization expense related to intangible assets for fiscal years 2013, 2012, and 2011, was $8.0 million, $7.2 million, and $5.9 million, respectively. | |||||||||||||||||||||
Amortization expense for each of the five succeeding years is projected as follows: | |||||||||||||||||||||
(In millions) | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
$ | 8.1 | $ | 8.1 | $ | 8.1 | $ | 7.8 | $ | 7.7 | ||||||||||||
The Company uses the acquisition method of accounting for business combinations. Annual goodwill impairment testing and trade name impairment testing is performed during the fourth quarter of each year; unless events or circumstances indicate earlier impairment testing is required. No impairment loss was recognized for 2013, 2012, or 2011. | |||||||||||||||||||||
The change in the carrying amount of goodwill by reporting segment for 2013 and 2012, is as follows: | |||||||||||||||||||||
(In millions) | 2013 | ||||||||||||||||||||
Water Systems | Fueling Systems | Consolidated | |||||||||||||||||||
Balance as of December 29, 2012 | $ | 144.9 | $ | 63.2 | $ | 208.1 | |||||||||||||||
Acquisitions | 1.2 | — | 1.2 | ||||||||||||||||||
Adjustments to prior year acquisitions | (0.1 | ) | — | (0.1 | ) | ||||||||||||||||
Foreign currency translation | (1.9 | ) | (0.1 | ) | (2.0 | ) | |||||||||||||||
Balance as of December 28, 2013 | $ | 144.1 | $ | 63.1 | $ | 207.2 | |||||||||||||||
(In millions) | 2012 | ||||||||||||||||||||
Water Systems | Fueling Systems | Consolidated | |||||||||||||||||||
Balance as of December 31, 2011 | $ | 109.9 | $ | 58.9 | $ | 168.8 | |||||||||||||||
Acquisitions | 31.9 | 4.1 | 36 | ||||||||||||||||||
Adjustments to prior year acquisitions | 3 | — | 3 | ||||||||||||||||||
Foreign currency translation | 0.1 | 0.2 | 0.3 | ||||||||||||||||||
Balance as of December 29, 2012 | $ | 144.9 | $ | 63.2 | $ | 208.1 | |||||||||||||||
The 2013 acquired goodwill in the Water Systems segment related to a series of immaterial acquisitions by the Company during 2013. The 2012 acquired goodwill in the Water Systems segment related to the Company’s acquisition of PPH and Cerus. The 2012 acquired goodwill in the Fueling Systems segment related to the Company's acquisition of Flex-ing. |
EMPLOYEE_BENEFIT_PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ' | |||||||||||||||||||||||
EMPLOYEE BENEFIT PLANS | ||||||||||||||||||||||||
Defined Benefit Plans - As of December 28, 2013, the Company maintained two domestic pension plans and three German pension plans. The Company used a December 28 measurement date for these plans. | ||||||||||||||||||||||||
The Company redesigned certain retirement plan offerings in 2012. The redesign was completed in order to increase standardization of retirement plans among U.S. salaried employees and to reduce the expected cash funding volatility of retirement plans, while at the same time keeping in place a competitive retirement plan offering to attract and retain talent. The Company achieved this by freezing both the Basic Pension Plan and the Cash Balance Plan as of December 31, 2011, with the exception of a certain limited number of Basic Pension Plan participants who will still accrue benefits over a five year sunset period. Also effective December 31, 2011, the Cash Balance Plan was closed (the Basic Pension Plan was previously closed) and the two plans were merged into a single plan. The portion of the non-qualified pension plan related to the Cash Balance Plan was also frozen. As of January 1, 2012, the Company instituted new service-based contributions, supplemental to the existing Company match for employees, into the defined contribution retirement plan offering. | ||||||||||||||||||||||||
The following table sets forth aggregated information related to the Company’s pension benefits and other postretirement benefits, including changes in the benefit obligations, changes in plan assets, funded status, amounts recognized in the balance sheet, amounts recognized in other accumulated comprehensive income, and actuarial assumptions that the Company considered in its determination of benefit obligations and plan costs. Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for our pension plans, and accumulated postretirement benefit obligations (APBO) for our other benefit plans. | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 180.6 | $ | 191.4 | $ | 12.6 | $ | 14.5 | ||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 196.3 | $ | 176.6 | $ | 14.5 | $ | 13.4 | ||||||||||||||||
Service cost | 1.8 | 1.5 | 0.1 | 0.1 | ||||||||||||||||||||
Interest cost | 7.6 | 8.2 | 0.5 | 0.6 | ||||||||||||||||||||
Plan amendments | — | — | — | 0.8 | ||||||||||||||||||||
Actuarial (gain)/loss | (10.2 | ) | 20.5 | (1.0 | ) | 1.2 | ||||||||||||||||||
Settlements paid | (0.8 | ) | (0.3 | ) | — | — | ||||||||||||||||||
Benefits paid | (10.7 | ) | (10.6 | ) | (1.5 | ) | (1.6 | ) | ||||||||||||||||
Liability gain due to curtailment | — | — | — | — | ||||||||||||||||||||
Foreign currency exchange | 0.7 | 0.4 | — | — | ||||||||||||||||||||
Benefit obligation, end of year | $ | 184.7 | $ | 196.3 | $ | 12.6 | $ | 14.5 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of assets, beginning of year | $ | 130.2 | $ | 120 | $ | — | $ | — | ||||||||||||||||
Actual return on plan assets | 24.3 | 14.2 | — | — | ||||||||||||||||||||
Company contributions | 7.7 | 6.7 | 1.5 | 1.6 | ||||||||||||||||||||
Settlements paid | (0.6 | ) | (0.3 | ) | — | — | ||||||||||||||||||
Benefits paid | (10.7 | ) | (10.6 | ) | (1.5 | ) | (1.6 | ) | ||||||||||||||||
Foreign currency exchange | 0.2 | 0.2 | — | — | ||||||||||||||||||||
Plan assets, end of year | $ | 151.1 | $ | 130.2 | $ | — | $ | — | ||||||||||||||||
Funded status | $ | (33.6 | ) | $ | (66.1 | ) | $ | (12.6 | ) | $ | (14.5 | ) | ||||||||||||
Amounts recognized in balance sheet: | ||||||||||||||||||||||||
Deferred tax asset | 21.2 | 32.2 | 1.2 | 1.9 | ||||||||||||||||||||
Current liabilities | (3.2 | ) | (0.1 | ) | (1.3 | ) | (1.5 | ) | ||||||||||||||||
Noncurrent liabilities | (30.4 | ) | (66.0 | ) | (11.3 | ) | (13.0 | ) | ||||||||||||||||
Net liability, end of year | $ | (12.4 | ) | $ | (33.9 | ) | $ | (11.4 | ) | $ | (12.6 | ) | ||||||||||||
Amount recognized in accumulated other comprehensive income: | ||||||||||||||||||||||||
Net transition obligation | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Prior service cost | — | — | 1 | 1.2 | ||||||||||||||||||||
Net actuarial loss | 36.8 | 53.9 | 0.9 | 1.7 | ||||||||||||||||||||
Total recognized in accumulated other comprehensive income | $ | 36.8 | $ | 53.9 | $ | 1.9 | $ | 2.9 | ||||||||||||||||
The following table sets forth other changes in plan assets and benefit obligation recognized in other comprehensive income for 2013 and 2012: | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Net actuarial (gain)/loss | $ | (24.6 | ) | $ | 16.5 | $ | (1.0 | ) | $ | 1.2 | ||||||||||||||
Prior service cost | — | — | — | 0.8 | ||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||
Net actuarial gain | (3.2 | ) | (1.9 | ) | (0.3 | ) | (0.1 | ) | ||||||||||||||||
Prior service credit | — | — | (0.4 | ) | (0.3 | ) | ||||||||||||||||||
Settlement recognition | (0.7 | ) | (0.1 | ) | — | — | ||||||||||||||||||
Transition asset | — | — | — | (0.2 | ) | |||||||||||||||||||
Deferred tax asset/(liability) | 11.4 | (5.5 | ) | 0.7 | (0.7 | ) | ||||||||||||||||||
Total recognized in other comprehensive income | $ | (17.1 | ) | $ | 9 | $ | (1.0 | ) | $ | 0.7 | ||||||||||||||
Assumptions used to determine domestic benefit obligations: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 4.75 | % | 4 | % | 4.5 | % | 3.5 | % | ||||||||||||||||
Rate of increase in future compensation* | — | % | — | % | 3.00 - 12.00% (Graded) | 3.00 - 12.00% | ||||||||||||||||||
(Graded) | ||||||||||||||||||||||||
*No rate of increases in future compensation used within assumptions for 2013 and 2012, as both Pension Plans were frozen effective December 31, 2011. | ||||||||||||||||||||||||
Assumptions used to determine domestic periodic benefit cost: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 4 | % | 4.75 | % | 3.5 | % | 4.5 | % | ||||||||||||||||
Rate of increase in future compensation | — | % | — | % | 3.00 - 12.00% (Graded) | 3.00 - 12.00% | ||||||||||||||||||
(Graded) | ||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 8 | % | 8 | % | — | % | — | % | ||||||||||||||||
The accumulated benefit obligation for the Company’s tax qualified plan and German benefit pension plans was $168.4 million and $181.0 million for the years ended 2013 and 2012. | ||||||||||||||||||||||||
The following table sets forth the aggregated net periodic benefit cost for all pension plans for 2013, 2012, and 2011: | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 1.8 | $ | 1.5 | $ | 3.5 | $ | 0.1 | $ | 0.1 | $ | 0.1 | ||||||||||||
Interest cost | 7.6 | 8.2 | 8.7 | 0.5 | 0.6 | 0.6 | ||||||||||||||||||
Expected return on assets | (10.0 | ) | (10.1 | ) | (10.8 | ) | — | — | — | |||||||||||||||
Amortization of transition obligation | — | — | — | 0.4 | 0.2 | 0.1 | ||||||||||||||||||
Settlement cost | 0.1 | — | — | — | — | — | ||||||||||||||||||
Prior service cost | — | — | 0.1 | 0.4 | 0.3 | 0.1 | ||||||||||||||||||
Loss | 3.6 | 2 | 3 | — | 0.1 | — | ||||||||||||||||||
Net periodic benefit cost | $ | 3.1 | $ | 1.6 | $ | 4.5 | $ | 1.4 | $ | 1.3 | $ | 0.9 | ||||||||||||
Curtailment** | — | — | 0.1 | — | — | — | ||||||||||||||||||
Settlement cost | — | — | — | — | — | — | ||||||||||||||||||
Total net periodic benefit cost | $ | 3.1 | $ | 1.6 | $ | 4.6 | $ | 1.4 | $ | 1.3 | $ | 0.9 | ||||||||||||
** These items for 2011 related primarily to the benefit plan redesign. | ||||||||||||||||||||||||
The estimated net actuarial (gain)/loss, prior service cost/(credit), and transition (asset)/obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2014 fiscal year are $2.5 million, $0.0 million, and $0.0 million, respectively, for the pension plans and $0.1 million, $0.4 million, and $0.0 million respectively, for all other benefits. | ||||||||||||||||||||||||
The Company has consulted with a third party investment manager for the assets of the funded domestic defined benefit plan. The plan assets are currently invested primarily in pooled funds, where each fund in turn is composed of mutual funds that have at least daily net asset valuations. Thus the Company’s funded domestic defined benefit plan assets are invested in a “fund of funds” approach. | ||||||||||||||||||||||||
The Company’s Board has delegated oversight and guidance to an appointed Employee Benefits Committee. The Committee has the tasks of reviewing plan performance and asset allocation, ensuring plan compliance with applicable laws, establishing plan policies, procedures, and controls, monitoring expenses, and other related activities. | ||||||||||||||||||||||||
The plans’ investment policies and strategies focus on the ability to fund benefit obligations as they come due. Considerations include the plan's current funded level, plan design, benefit payment assumptions, funding regulations, impact of potentially volatile business results on the Company’s ability to make certain levels of contributions, and interest rate and asset return volatility among other considerations. The Company currently attempts to maintain plan funded status at approximately 80 percent or greater pursuant to the Pension Protection Act of 2007. Given the plan’s current funded status, the Company’s cash on hand, cash historically generated from business operations, and cash available under committed credit facilities, the Company sees ample liquidity to achieve this goal. | ||||||||||||||||||||||||
Risk management and continuous monitoring requirements are met through monthly investment portfolio reports, quarterly Employee Benefits Committee meetings, annual valuations, asset/liability studies, and the annual assumption process focusing primarily on the return on asset assumption and the discount rate assumption. As of December 28, 2013, funds were invested in equity, fixed income, and other investments as follows: | ||||||||||||||||||||||||
Equity | Percentage | |||||||||||||||||||||||
U.S. Large Cap | 46 | % | ||||||||||||||||||||||
World Equity ex-U.S. | 17 | % | ||||||||||||||||||||||
U.S. Small / Mid Cap | 8 | % | ||||||||||||||||||||||
Subtotal | 71 | % | ||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||
U.S. Core Fixed Income | 12 | % | ||||||||||||||||||||||
Long Duration Bond | 8 | % | ||||||||||||||||||||||
High Yield Fixed Income | 3 | % | ||||||||||||||||||||||
Emerging Markets Debt | 2 | % | ||||||||||||||||||||||
Subtotal | 25 | % | ||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Insurance Contracts | 4 | % | ||||||||||||||||||||||
Cash Equivalents | — | % | ||||||||||||||||||||||
Subtotal | 4 | % | ||||||||||||||||||||||
Total | 100 | % | ||||||||||||||||||||||
The Company does not see any particular concentration of risk within the plans, nor any plan assets that pose difficulties for fair value assessment. The Company currently has no allocation to potentially illiquid or potentially difficult to value assets such as hedge funds, venture capital, private equity, and real estate. | ||||||||||||||||||||||||
The Company works with actuaries and consultants in making its determination of the asset rate of return assumption and also the discount rate assumption. | ||||||||||||||||||||||||
Asset class assumptions are set using a combination of empirical and forward-looking analysis for long-term rate of return on plan assets. A variety of models are applied for filtering historical data and isolating the fundamental characteristics of asset classes. These models provide empirical return estimates for each asset class, which are then reviewed and combined with a qualitative assessment of long-term relationships between asset classes before a return estimate is finalized. This provides an additional means for correcting for the effect of unrealistic or unsustainable short-term valuations or trends, opting instead for return levels and behavior that is more likely to prevail over long periods. With that, the Company has assumed an expected long-term rate of return on plan assets of 7.70 percent for the 2014 net periodic benefit cost. This is the result of stochastic modeling showing the 50th percentile median return at or above 7.70 percent. | ||||||||||||||||||||||||
The Company uses the Aon Hewitt AA Above Median curve to determine the discount rate. All cash flow obligations under the plan are matched to bonds in the Aon Hewitt universe of liquid, high-quality, non-callable / non-putable corporate bonds with outliers removed. From that matching exercise, a discount rate is determined. | ||||||||||||||||||||||||
The Company’s German pension plans are funded by insurance contract policies whereby the insurance company guarantees a fixed minimum return. Due to tax legislation, individual pension benefits can only be financed using direct insurance policies up to certain maximums. These maximum amounts in respect of each member are paid into such an arrangement on a yearly basis. | ||||||||||||||||||||||||
The Company designated the domestic plan assets as Level 1, as they are mutual funds with prices that are readily available. The German plan assets are designated as Level 2 inputs as the fair value of the insurance contracts is measured by the reserve that is supervised by the German Federal Financial Supervisory Authority. | ||||||||||||||||||||||||
The fair values of the Company’s pension plan assets for 2013 and 2012 by asset category are as follows: | ||||||||||||||||||||||||
(In millions) | 2013 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable | ||||||||||||||||||||
(Level 1) | (Level 2) | Inputs | ||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
U.S. Large Cap | $ | 69.4 | $ | 69.4 | $ | — | $ | — | ||||||||||||||||
U.S. Small / Mid Cap | 12.8 | 12.8 | — | — | ||||||||||||||||||||
World Equity ex-U.S. | 25.6 | 25.6 | — | — | ||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||
U.S. Core Fixed Income | 17.9 | 17.9 | — | — | ||||||||||||||||||||
Long Duration Bond | 11.5 | 11.5 | — | — | ||||||||||||||||||||
High Yield Fixed Income | 4.4 | 4.4 | — | — | ||||||||||||||||||||
Emerging Markets Debt | 3.7 | 3.7 | — | — | ||||||||||||||||||||
Other | ||||||||||||||||||||||||
Insurance Contracts | 5.8 | — | 5.8 | — | ||||||||||||||||||||
Cash and Equivalents | — | — | — | — | ||||||||||||||||||||
Total | $ | 151.1 | $ | 145.3 | $ | 5.8 | $ | — | ||||||||||||||||
(In millions) | 2012 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable | ||||||||||||||||||||
(Level 1) | (Level 2) | Inputs | ||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
U.S. Large Cap | $ | 55.2 | $ | 55.2 | $ | — | $ | — | ||||||||||||||||
U.S. Small / Mid Cap | 9.2 | 9.2 | — | — | ||||||||||||||||||||
World Equity ex-U.S. | 21.9 | 21.9 | — | — | ||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||
U.S. Core Fixed Income | 16.4 | 16.4 | — | — | ||||||||||||||||||||
Long Duration Bond | 12.5 | 12.5 | — | — | ||||||||||||||||||||
High Yield Fixed Income | 4.2 | 4.2 | — | — | ||||||||||||||||||||
Emerging Markets Debt | 4 | 4 | — | — | ||||||||||||||||||||
Other | ||||||||||||||||||||||||
Insurance Contracts | 5.7 | — | 5.7 | — | ||||||||||||||||||||
Cash and Equivalents | 1.1 | 1.1 | — | — | ||||||||||||||||||||
Total | $ | 130.2 | $ | 124.5 | $ | 5.7 | $ | — | ||||||||||||||||
One of the Company’s domestic pension plans covers only certain management employees. The Company does not fund this plan, and its assets were zero in both 2013 and 2012. The plan’s projected benefit obligation and accumulated benefit obligation were $12.4 million and $12.3 million, respectively, for 2013, and $11.8 million and $10.4 million, respectively, for 2012. | ||||||||||||||||||||||||
The Company estimates total contributions to the plans of $13.7 million in 2014. | ||||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | ||||||||||||||||||||||||
(In millions) | Pension | Other | ||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||
2014 | $ | 14.3 | $ | 1.4 | ||||||||||||||||||||
2015 | 14.2 | 1.3 | ||||||||||||||||||||||
2016 | 14 | 1.2 | ||||||||||||||||||||||
2017 | 10.9 | 1.1 | ||||||||||||||||||||||
2018 | 11 | 1 | ||||||||||||||||||||||
Years 2019 through 2023 | 58.5 | 4.2 | ||||||||||||||||||||||
The Company’s other postretirement benefit plans provide health and life insurance benefits to domestic employees hired prior to 1992. The Company effectively capped its cost for those benefits through plan amendments made in 1992, freezing Company contributions for insurance benefits at 1991 levels for current and future beneficiaries with actuarially reduced benefits for employees who retire before age 65. | ||||||||||||||||||||||||
Defined Contribution Plans - The Company maintained a 401(k) Plan during 2013 and 2012. The Company's cash contributions are allocated to participant's accounts based on investment elections. | ||||||||||||||||||||||||
The following table sets forth Company contributions to the 401(k) Plan: | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Company contributions to the plan | $ | 5.3 | $ | 5 | $ | 1.9 | ||||||||||||||||||
ACCRUED_EXPENSES
ACCRUED EXPENSES | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
ACCRUED EXPENSES | ' | ||||||||
ACCRUED EXPENSES | |||||||||
Accrued expenses consist of: | |||||||||
(In millions) | 2013 | 2012 | |||||||
Salaries, wages, and commissions | $ | 27.2 | $ | 26.3 | |||||
Product warranty costs | 9.5 | 9.7 | |||||||
Insurance | 3.4 | 5.2 | |||||||
Employee benefits | 10.3 | 7.1 | |||||||
Other | 11.7 | 12.1 | |||||||
$ | 62.1 | $ | 60.4 | ||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
INCOME TAXES | ' | ||||||||||||
INCOME TAXES | |||||||||||||
Income before income taxes consisted of the following: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Domestic | $ | 53.5 | $ | 53.2 | $ | 29.2 | |||||||
Foreign | 58 | 62.8 | 57.9 | ||||||||||
$ | 111.5 | $ | 116 | $ | 87.1 | ||||||||
The income tax provision/(benefit) from continuing operations consisted of the following: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Current: | |||||||||||||
Federal | $ | 10.8 | $ | 13.9 | $ | 7.3 | |||||||
Foreign | 14.3 | 7.9 | 11.3 | ||||||||||
State | 2.1 | 1.9 | 0.9 | ||||||||||
Total current | 27.2 | 23.7 | 19.5 | ||||||||||
Deferred: | |||||||||||||
Federal | 4.3 | 4.6 | 2.1 | ||||||||||
Foreign | (1.3 | ) | 3.3 | 1.8 | |||||||||
State | (1.3 | ) | 0.7 | — | |||||||||
Total deferred | $ | 1.7 | $ | 8.6 | $ | 3.9 | |||||||
$ | 28.9 | $ | 32.3 | $ | 23.4 | ||||||||
A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. Federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal benefit | 1.2 | 0.9 | 0.8 | ||||||||||
Foreign operations | (6.2 | ) | (7.6 | ) | (8.5 | ) | |||||||
R&D tax credits | (1.1 | ) | — | (0.5 | ) | ||||||||
Uncertain tax position adjustments | (1.9 | ) | 2.8 | (0.3 | ) | ||||||||
Deferred tax adjustments, rate and other | — | (4.7 | ) | — | |||||||||
Valuation allowance on state deferred tax | (0.8 | ) | 0.8 | (0.1 | ) | ||||||||
Other items | (0.3 | ) | 0.6 | 0.5 | |||||||||
Effective tax rate | 25.9 | % | 27.8 | % | 26.9 | % | |||||||
Significant components of the Company's deferred tax assets and liabilities were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and reserves | $ | 11 | $ | 10.5 | |||||||||
Compensation and employee benefits | 25.1 | 38 | |||||||||||
Other items | 5.1 | 4.4 | |||||||||||
Valuation allowance on state deferred tax | (3.5 | ) | (4.4 | ) | |||||||||
Total deferred tax assets | 37.7 | 48.5 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Accelerated depreciation on fixed assets | 10.3 | 9.7 | |||||||||||
Amortization of intangibles | 61 | 61.9 | |||||||||||
Other items | 9.2 | 7.8 | |||||||||||
Total deferred tax liabilities | 80.5 | 79.4 | |||||||||||
Net deferred tax liabilities | $ | (42.8 | ) | $ | (30.9 | ) | |||||||
The effective tax rate continues to be lower than the statutory rate primarily due to the indefinite reinvestment of foreign earnings taxed at rates below the U.S. statutory rate as well as recognition of foreign tax credits. The Company has the ability to indefinitely reinvest these foreign earnings based on the earnings and cash projections of its other operations as well as cash on hand and available credit. | |||||||||||||
The Company is not likely to realize the benefit of a portion of the recorded deferred tax asset relating to state taxes in the foreseeable future. As such, a valuation allowance of $3.5 million and $4.4 million was recorded as of December 28, 2013 and December 29, 2012, respectively. | |||||||||||||
The Company identifies the accumulated earnings for the affiliates that were not indefinitely reinvested and computes the tax associated with the subsequent repatriation. This computation considers the impact of applicable withholding taxes and the availability of U.S. foreign tax credits. The Company has calculated the repatriation of all the accumulated earnings that are not indefinitely reinvested which resulted in a net tax liability of $3.3 million recorded by the Company as of December 28, 2013. | |||||||||||||
The Company does not provide for deferred taxes on the excess of the financial reporting over the tax basis in our investments in foreign subsidiaries that are essentially permanent in duration. That excess is approximately $193.6 million as of December 28, 2013. The determination of the additional deferred taxes that have not been provided is not practicable. | |||||||||||||
As of the beginning of fiscal year 2013, the Company had gross unrecognized tax benefits of $6.9 million, excluding accrued interest and penalties. The unrecognized tax benefits decreased $1.7 million for federal tax liabilities and $0.1 million for state income tax liabilities primarily related to audit completions during 2013. The Company had gross unrecognized tax benefits, excluding accrued interest and penalties, of $5.1 million as of December 28, 2013. | |||||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2013, 2012, and 2011 (excluding interest and penalties) is as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 6.9 | $ | 5.6 | $ | 3.6 | |||||||
Additions based on tax positions related to the current year | — | — | — | ||||||||||
Additions for tax positions of prior years | 1.7 | 3.6 | 2.8 | ||||||||||
Reductions for tax positions of prior years | (3.5 | ) | (1.7 | ) | (0.8 | ) | |||||||
Settlements | — | (0.6 | ) | — | |||||||||
Ending balance | $ | 5.1 | $ | 6.9 | $ | 5.6 | |||||||
If recognized, each annual effective tax rate would be affected by the net unrecognized tax benefits of $5.0 million, $6.8 million, and $5.3 million as of December 28, 2013, December 29, 2012, and December 31, 2011, respectively. | |||||||||||||
Of the unrecognized tax benefits at December 28, 2013, $2.0 million is related to an acquisition for which indemnification was provided for in the respective purchase agreement. The stock purchase agreement related to the acquisition provides the Company rights to recover tax liabilities related to pre-acquisition tax years from the sellers. Other amounts are associated with domestic state tax issues, such as nexus, as well as other federal and state uncertain tax positions. | |||||||||||||
The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense, the impact of which is immaterial. The Company has accrued interest and penalties as of December 28, 2013, December 29, 2012, and December 31, 2011 of approximately $0.2 million, $1.1 million, and $0.5 million, respectively. | |||||||||||||
The Company is subject to taxation in the United States and various state and foreign jurisdictions. With few exceptions, as of December 28, 2013, the Company is no longer subject to U.S. federal, state, or foreign income tax examinations by tax authorities for years before 2010. | |||||||||||||
It is reasonably possible that the amounts of unrecognized tax benefits could change in the next twelve months as a result of an audit or due to the expiration of a statute of limitation by approximately $1.4 million. |
DEBT
DEBT | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
DEBT | ' | ||||||||||||||||||||||||||||
DEBT | |||||||||||||||||||||||||||||
On December 14, 2006, the Company entered into an amended and restated unsecured, 60-month $120.0 million revolving credit agreement (the “Agreement”). The Agreement provides for various borrowing rate options including interest rates based on the London Interbank Offered Rates (LIBOR) plus interest spreads keyed to the Company’s ratio of debt to earnings before interest, taxes, depreciation, and amortization (“EBITDA”). On December 14, 2011, the Company executed the Second Amended and Restated Credit Agreement, which among other things, extended the maturity of the Agreement to December 14, 2016, and increased the commitment amount to $150.0 million. | |||||||||||||||||||||||||||||
The Agreement contains certain financial covenants with respect to borrowings, interest coverage, loans or advances and investments. The Company was in compliance with the covenants as of December 28, 2013 and December 29, 2012. The Company had zero borrowings under the Agreement at December 28, 2013 and December 29, 2012. | |||||||||||||||||||||||||||||
On April 9, 2007, the Company entered into the Amended and Restated Note Purchase and Private Shelf Agreement (the "Prudential Agreement") in the amount of $175.0 million. Under the Prudential Agreement, the Company issued notes in an aggregate principal amount of $110.0 million on April 30, 2007 (the “B-1 Notes”) and $40.0 million on September 7, 2007 (the “B-2 Notes”). The B-1 Notes and B-2 Notes bear a coupon of 5.79 percent and have an average life of 10 years with a final maturity in 2019. On July 22, 2010, the Company entered into Amendment No. 3 to the Prudential Agreement to increase its borrowing capacity by $25.0 million. On December 14, 2011, the Company entered into Amendment No. 4 to the Second Amended and Restated Note Purchase and Private Shelf Agreement to redefine the debt to EBITDA ratio covenant in order to be equivalent to that under the Agreement. | |||||||||||||||||||||||||||||
As of December 28, 2013, the Company has $50.0 million borrowing capacity available under the Prudential Agreement. Principal installments of $30.0 million are payable annually commencing on April 30, 2015 and continuing to and including April 30, 2019, with any unpaid balance due at maturity. The Prudential Agreement contains certain financial covenants with respect to borrowings, interest coverage, loans or advances and investments. | |||||||||||||||||||||||||||||
The Company also has certain overdraft facilities at its foreign subsidiaries, of which none were outstanding at December 28, 2013 and December 29, 2012. | |||||||||||||||||||||||||||||
Debt consisted of the following: | |||||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | |||||||||||||||||||||||||||
Prudential Agreement - 5.79 percent | $ | 150 | $ | 150 | |||||||||||||||||||||||||
Tax increment financing debt | 24.6 | — | |||||||||||||||||||||||||||
Capital leases | 0.8 | 1 | |||||||||||||||||||||||||||
Foreign subsidiary debt | 14.2 | 14.9 | |||||||||||||||||||||||||||
189.6 | 165.9 | ||||||||||||||||||||||||||||
Less current maturities | (15.4 | ) | (15.2 | ) | |||||||||||||||||||||||||
Long-term debt | $ | 174.2 | $ | 150.7 | |||||||||||||||||||||||||
On December 31, 2012, the Company, Allen County, Indiana and certain institutional investors entered into a Bond Purchase and Loan Agreement. Under the agreement, Allen County, Indiana issued a series of Project Bonds entitled “Taxable Economic Development Bonds, Series 2012 (Franklin Electric Co., Inc. Project).” The aggregate principal amount of the Project Bonds that were issued, authenticated, and are now outstanding thereunder was limited to $25.0 million. The Company then borrowed the proceeds under the Project Bonds through the issuance of Project Notes to finance the cost of acquisition, construction, installation and equipping of the new Global Corporate Headquarters and Engineering Center. These Project Notes (tax increment financing debt) bear interest at 3.6 percent per annum. Interest and principal balance of the Project Notes are due and payable by the Company directly to the institutional investors in aggregate semi-annual installments commencing on July 10, 2013, and concluding on January 10, 2033. The use of the proceeds from the Project Notes was limited to assist the financing of the new Global Corporate Headquarters and Engineering Center. | |||||||||||||||||||||||||||||
The agreement contains customary affirmative and negative covenants. The affirmative covenants relate to financial statements, notices of material events, conduct of business, inspection of property, maintenance of insurance, compliance with laws and most favored lender obligations. The negative covenants include limitations on loans, advances and investments, and the granting of liens by the Company or its subsidiaries, as well as prohibitions on certain consolidations, mergers, sales and transfers of assets. The covenants also include financial requirements including a maximum leverage ratio and a minimum interest coverage ratio. The agreement also contains a cross default provision in the event the Company defaults on any obligation exceeding $10.0 million. | |||||||||||||||||||||||||||||
Also, on December 31, 2012, the Company and Prudential Insurance Company of America entered into an amendment to the Second Amended and Restated Note Purchase and Private Shelf Agreement to extend the effective date to December 31, 2015. | |||||||||||||||||||||||||||||
Foreign subsidiary debt denoted in the table above is predominately comprised of debt at Impo, which was re-financed in September 2013 with maturity dates in September of 2014. | |||||||||||||||||||||||||||||
The following debt payments are expected to be paid in accordance with the following schedule: | |||||||||||||||||||||||||||||
(In millions) | Total | 2014 | 2015 | 2016 | 2017 | 2018 | More than 5 years | ||||||||||||||||||||||
Debt | $ | 188.8 | $ | 15.1 | $ | 30.9 | $ | 31 | $ | 31 | $ | 31 | $ | 49.8 | |||||||||||||||
Capital leases | 0.8 | 0.3 | 0.2 | 0.1 | 0.1 | 0.1 | — | ||||||||||||||||||||||
$ | 189.6 | $ | 15.4 | $ | 31.1 | $ | 31.1 | $ | 31.1 | $ | 31.1 | $ | 49.8 | ||||||||||||||||
SHAREOWNERS_EQUITY
SHAREOWNERS' EQUITY | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
SHAREOWNERS' EQUITY | ' | ||||||||||||
SHAREOWNERS' EQUITY | |||||||||||||
The Company has the authority to issue 65,000,000, $.10 par value shares. | |||||||||||||
During 2013, 2012, and 2011, pursuant to a stock repurchase program authorized by the Company’s Board of Directors, the Company repurchased and retired the following amounts and number of shares: | |||||||||||||
(In millions, except share amounts) | 2013 | 2012 | 2011 | ||||||||||
Repurchases | $ | 2.8 | $ | 10 | $ | 10.6 | |||||||
Shares | 88,200 | 400,000 | 500,000 | ||||||||||
In 2013, the Company retired 273,799 shares that were received from employees as payment for the exercise price of their stock options and taxes owed upon the exercise of their stock options and release of their restricted awards. The Company also retired 6,190 shares that had been previously granted as stock awards to employees, but were forfeited upon not meeting the required restriction criteria or termination. In 2012, the Company retired 419,208 shares that were received from employees as payment for the exercise price of their stock options and taxes owed upon the exercise of their stock options and release of their restricted awards. The Company also retired 16,712 shares that had been previously granted as a stock award to employees, but were forfeited upon termination. In 2011, the Company retired 146,652 shares that were received from employees as payment for taxes owed upon the release of their restricted awards. The Company also retired 43,996 shares that had been previously granted as stock award to employees, but were forfeited upon termination. | |||||||||||||
In 2013, 2012, and 2011, the Company recorded $5.1 million, $4.7 million, and $2.1 million, respectively, as a reduction in tax liability and an increase to shareowners’ equity as a result of stock option exercises. | |||||||||||||
Accumulated other comprehensive loss consisted of the currency translation adjustment and the pension liability adjustment, $(16.0) million and $(38.7) million, respectively, as of December 28, 2013, and $(0.3) million and $(56.8) million, respectively, at December 29, 2012. | |||||||||||||
Shares and per share data have been adjusted for all periods presented to reflect a two-for-one stock split effective March 18, 2013. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | |||||||||||||
Changes in accumulated other comprehensive income (loss) by component are summarized below: | |||||||||||||
(In millions) | |||||||||||||
For the Year Ended December 28, 2013: | Foreign Currency Translation Adjustments | Pension and Post-Retirement Plan Benefit Adjustments | Total | ||||||||||
Balance, December 29, 2012 | $ | (0.3 | ) | $ | (56.8 | ) | $ | (57.1 | ) | ||||
Other comprehensive income/(loss) before reclassifications: | |||||||||||||
Pre-tax income/(loss) | (16.0 | ) | — | (16.0 | ) | ||||||||
Income tax expense | — | — | — | ||||||||||
Other comprehensive income/(loss) before reclassifications, net of income taxes | (16.0 | ) | — | (16.0 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss): | |||||||||||||
Pre-tax income | — | 30.2 | -1 | 30.2 | |||||||||
Income tax expense | — | (12.1 | ) | (12.1 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes | — | 18.1 | 18.1 | ||||||||||
Net current period other comprehensive income/(loss), net of income taxes | (16.0 | ) | 18.1 | 2.1 | |||||||||
Other comprehensive (income)/loss attributable to noncontrolling interest | 0.3 | — | 0.3 | ||||||||||
Balance, December 28, 2013 | $ | (16.0 | ) | $ | (38.7 | ) | $ | (54.7 | ) | ||||
For the Year Ended December 29, 2012: | |||||||||||||
Balance, December 31, 2011 | $ | (2.2 | ) | $ | (47.1 | ) | $ | (49.3 | ) | ||||
Other comprehensive income/(loss) before reclassifications: | |||||||||||||
Pre-tax income/(loss) | 1.8 | — | 1.8 | ||||||||||
Income tax expense | — | — | — | ||||||||||
Other comprehensive income/(loss) before reclassifications, net of income taxes | 1.8 | — | 1.8 | ||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss): | |||||||||||||
Pre-tax income | — | (15.9 | ) | -1 | (15.9 | ) | |||||||
Income tax expense | — | 6.2 | 6.2 | ||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes | — | (9.7 | ) | (9.7 | ) | ||||||||
Net current period other comprehensive income/(loss), net of income taxes | 1.8 | (9.7 | ) | (7.9 | ) | ||||||||
Other comprehensive (income)/loss attributable to noncontrolling interest | 0.1 | — | 0.1 | ||||||||||
Balance, December 29, 2012 | $ | (0.3 | ) | $ | (56.8 | ) | $ | (57.1 | ) | ||||
For the Year Ended December 31, 2011: | |||||||||||||
Balance, January 1, 2011 | $ | 19 | $ | (38.4 | ) | $ | (19.4 | ) | |||||
Other comprehensive income/(loss) before reclassifications: | |||||||||||||
Pre-tax income/(loss) | (21.4 | ) | — | (21.4 | ) | ||||||||
Income tax expense | — | — | — | ||||||||||
Other comprehensive income/(loss) before reclassifications, net of income taxes | (21.4 | ) | $ | — | (21.4 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income/(loss): | |||||||||||||
Pre-tax income | — | (14.2 | ) | (1 | ) | (14.2 | ) | ||||||
Income tax expense | — | 5.5 | 5.5 | ||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes | — | (8.7 | ) | (8.7 | ) | ||||||||
Net current period other comprehensive income/(loss), net of income taxes | (21.4 | ) | (8.7 | ) | (30.1 | ) | |||||||
Other comprehensive (income)/loss attributable to noncontrolling interest | 0.2 | — | 0.2 | ||||||||||
Balance, December 31, 2011 | $ | (2.2 | ) | $ | (47.1 | ) | $ | (49.3 | ) | ||||
(1) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 9 for additional details) and is included in the "Selling, general, and administrative expenses" line of the consolidated statements of income. |
EARNINGS_PER_SHARE
EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
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 allocable 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 allocable to common shares by the weighted-average number of common shares as of the balance sheet date, 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) | 2013 | 2012 | 2011 | ||||||||||
Numerator: | |||||||||||||
Net income attributable to Franklin Electric Co., Inc. | $ | 82 | $ | 82.9 | $ | 63.1 | |||||||
Less: Undistributed earnings allocable to participating securities | 1 | 0.6 | — | ||||||||||
Less: Undistributed earnings allocated to redeemable non-controlling interest | 0.2 | — | 0.2 | ||||||||||
$ | 80.8 | $ | 82.3 | $ | 62.9 | ||||||||
Denominator: | |||||||||||||
Basic | |||||||||||||
Weighted average common shares | 47.5 | 46.9 | 46.4 | ||||||||||
Diluted | |||||||||||||
Effect of dilutive securities: | |||||||||||||
Non-participating employee and director incentive stock options and performance awards | 0.6 | 0.8 | 1 | ||||||||||
Adjusted weighted average common shares | 48.1 | 47.7 | 47.4 | ||||||||||
Basic earnings per share | $ | 1.7 | $ | 1.76 | $ | 1.36 | |||||||
Diluted earnings per share | $ | 1.68 | $ | 1.73 | $ | 1.33 | |||||||
Anti-dilutive stock options | 0.1 | 0.1 | 0.6 | ||||||||||
Shares and per share data have been adjusted for all periods presented to reflect a two-for-one stock split effective March 18, 2013. |
SHAREBASED_COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
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, 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 | |||||||||||||
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. | ||||||||||||||
The total share-based compensation expense recognized in 2013, 2012, and 2011 was $4.9 million, $6.3 million, and $4.0 million, respectively. | ||||||||||||||
Stock Options: | ||||||||||||||
Under the above plans, the exercise price of each option equals the market price of the Company’s common stock on the date of grant, and the options expire 10 years after the date of the grant. Options granted to employees vest at 25 percent a year and become fully vested and exercisable after 4 years (vesting is accelerated upon retirement, death, or disability). Subject to the terms of the plans, in general, the aggregate option price and any applicable tax withholdings may be satisfied in cash or its equivalent, by the plan participant’s delivery of shares of the Company’s common stock having a fair market value at the time of exercise equal to the aggregate option price and/or the applicable tax withholdings or by having shares otherwise subject to the award withheld by the Company or via cash-less exercise through a broker-dealer. | ||||||||||||||
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. Options granted to retirement eligible employees are immediately expensed. The Company uses historical data to estimate the expected volatility of its stock, the weighted average expected life, the period of time options granted are expected to be outstanding, and its dividend yield. The risk-free rates for periods within the contractual life of the option are based on the U.S. Treasury yield curve in effect at the time of the grant. | ||||||||||||||
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 | % | ||||||||
A summary of the Company’s outstanding stock option activity and related information is as follows: | ||||||||||||||
(Shares in thousands) | ||||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Aggregate | |||||||||||
Intrinsic Value (000’s) | ||||||||||||||
Stock Options | ||||||||||||||
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 | 24.1 | ||||||||||||
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 | |||||||||||
There were no share-based liabilities paid during the 2013 and 2012 fiscal years. | ||||||||||||||
A summary of the Company’s non-vested stock option activity and related information is as follows: | ||||||||||||||
(Shares in thousands) | Weighted-Average Grant- | |||||||||||||
Shares | Date Fair Value | |||||||||||||
Non-vested at beginning of 2012 | 1,094 | $ | 13.27 | |||||||||||
Granted | 250 | 24.1 | ||||||||||||
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 | $ | 25.3 | |||||||||||
As of December 28, 2013, there was $1.5 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2012 Stock Plan and the 2009 Stock Plan related to stock options. That cost is expected to be recognized over a weighted-average period of 2.40 years. | ||||||||||||||
Stock/Stock Unit Awards: | ||||||||||||||
Under the 2009 Stock Plan and 2012 Stock Plan, non-employee directors and employees may be granted stock awards and stock units, including grants of restricted shares of the Company’s common stock. | ||||||||||||||
Stock awards to non-employee directors are fully vested when made. Stock/stock unit awards to employees cliff vest over 3 or 4 years (subject to accelerated vesting of a pro rata portion in the case of retirement, death or disability) and may be contingent on the attainment of certain performance goals. Dividends are paid to the recipient prior to vesting, except that dividends on performance-based stock awards under the 2012 Stock Plan will be paid only to the extent the performance goals are met. Stock/stock unit awards granted to retirement eligible employees were expensed over the 4 year vesting period. | ||||||||||||||
A summary of the Company’s restricted stock/stock unit award activity and related information is as follows: | ||||||||||||||
(Shares in thousands) | Weighted-Average Grant- | |||||||||||||
Shares | Date Fair Value | |||||||||||||
Non-vested at beginning of 2012 | 344 | $ | 17.24 | |||||||||||
Awarded | 208 | 24.9 | ||||||||||||
Vested | (76 | ) | 15.93 | |||||||||||
Forfeited | (18 | ) | 18.48 | |||||||||||
Non-vested at beginning of 2013 | 458 | $ | 20.9 | |||||||||||
Awarded | 165 | 32.9 | ||||||||||||
Vested | (66 | ) | 18.78 | |||||||||||
Forfeited | (6 | ) | 20.05 | |||||||||||
Non-vested at end of period | 551 | $ | 24.75 | |||||||||||
As of December 28, 2013, there was $7.5 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2012 Stock Plan and the 2009 Stock Plan related to stock awards. That cost is expected to be recognized over a weighted-average period of 2.54 years. |
SEGMENT_AND_GEOGRAPHIC_INFORMA
SEGMENT AND GEOGRAPHIC INFORMATION | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ' | |||||||||||||||||||||||
SEGMENT AND GEOGRAPHIC INFORMATION | ||||||||||||||||||||||||
The Company’s business consists of the Water Systems and Fueling Systems reportable segments, based on the principal end market served. The Company includes unallocated corporate expenses and inter-company eliminations in an “Other” segment that together with the Water Systems and Fueling Systems segments, represent the Company. | ||||||||||||||||||||||||
The Water Systems segment designs, manufactures and sells motors, pumps, electronic controls and related parts and equipment primarily for use in submersible water and other fluid system applications. The Fueling Systems segment designs, manufactures and sells pumps, electronic controls and related parts and equipment primarily for use in submersible fueling system applications. The Fueling Systems segment integrates and sells motors and electronic controls produced by the Water Systems segment. | ||||||||||||||||||||||||
The accounting policies of the Company's reportable segments are the same as those described in Note 1 (Summary of Significant Accounting Policies). Performance is evaluated based on the sales and operating income of the segments and a variety of ratios to measure performance. These results are not necessarily indicative of the results of operations that would have occurred had each segment been an independent, stand-alone entity during the periods presented. | ||||||||||||||||||||||||
Financial information by reportable segment is as follows: | ||||||||||||||||||||||||
Net sales to external customers | Operating income (loss) | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Water Systems | $ | 766.4 | $ | 715 | $ | 654.1 | $ | 131.3 | $ | 124.1 | $ | 105.3 | ||||||||||||
Fueling Systems | 199.1 | 176.3 | 167 | 42.6 | 36.6 | 31.3 | ||||||||||||||||||
Other | — | — | — | (50.1 | ) | (47.7 | ) | (43.2 | ) | |||||||||||||||
Consolidated | $ | 965.5 | $ | 891.3 | $ | 821.1 | $ | 123.8 | $ | 113 | $ | 93.4 | ||||||||||||
Total assets | Depreciation | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Water Systems | $ | 714.7 | $ | 692 | $ | 18.1 | $ | 16.9 | $ | 15.2 | ||||||||||||||
Fueling Systems | 247.9 | 252 | 1.9 | 1.8 | 1.8 | |||||||||||||||||||
Other | 89.3 | 32.4 | 3.4 | 2.4 | 2.4 | |||||||||||||||||||
Consolidated | $ | 1,051.90 | $ | 976.4 | $ | 23.4 | $ | 21.1 | $ | 19.4 | ||||||||||||||
Amortization | Capital expenditures | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Water Systems | $ | 6 | $ | 5.7 | $ | 4.2 | $ | 31 | $ | 25.2 | $ | 13.8 | ||||||||||||
Fueling Systems | 1.9 | 1.5 | 1.7 | 4 | 3.3 | 1.8 | ||||||||||||||||||
Other | 0.1 | — | — | 32.2 | 13.6 | 5.5 | ||||||||||||||||||
Consolidated | $ | 8 | $ | 7.2 | $ | 5.9 | $ | 67.2 | $ | 42.1 | $ | 21.1 | ||||||||||||
Cash is the major asset group in “Other” of total assets. | ||||||||||||||||||||||||
Financial information by geographic region is as follows: | ||||||||||||||||||||||||
Net sales | Long-lived assets | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | 2013 | 2012 | |||||||||||||||||||
United States | $ | 460.5 | $ | 428.5 | $ | 371 | $ | 377.3 | $ | 330 | ||||||||||||||
Foreign | 505 | 462.8 | 450.1 | 199.2 | 215 | |||||||||||||||||||
Consolidated | $ | 965.5 | $ | 891.3 | $ | 821.1 | $ | 576.5 | $ | 545 | ||||||||||||||
No single customer accounted for more than 10 percent of the Company’s consolidated sales and accounts receivable in 2013, 2012, or 2011. |
CONTINGENCIES_AND_COMMITMENTS
CONTINGENCIES AND COMMITMENTS | 12 Months Ended | |||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
CONTINGENCIES AND COMMITMENTS | ' | |||||||||||||||||||
CONTINGENCIES AND COMMITMENTS | ||||||||||||||||||||
In August 2010, the California Air Resources Board (“CARB”) and South Coast Air Quality Management District (“SCAQMD”) filed civil complaints in the Los Angeles Superior Court against the Company and Franklin Fueling Systems, Inc. The complaints related to a third-party-supplied component part of the Company's Healy 900 Series nozzle, which is part of the Company's Enhanced Vapor Recovery (“EVR”) Systems installed in California gasoline filling stations. This part, a diaphragm, was the subject of a retrofit during the first half of 2008. As the Company previously reported, in October 2008 CARB issued a Notice of Violation to the Company alleging that the circumstances leading to the retrofit program violated California statutes and regulations. | ||||||||||||||||||||
The claims in the complaints mirrored those that CARB presented to the Company in the Notice of Violation, and included claims that the Company negligently and intentionally sold nozzles with a modified diaphragm without required CARB certification. Those complaints were consolidated into one case in the Superior Court of California, County of Los Angeles (People of the State of California vs. Franklin Fueling Systems, Inc. et al.) which was tried in the later part of December 2012 and early part of January 2013 (“CARB Case”). | ||||||||||||||||||||
On July 25, 2013, the Court issued a Final Statement of Decision (“Decision”) in the CARB Case. In its Decision, the Court found on behalf of the Company and issued a complete defense verdict. Judgment was entered on August 27, 2013. CARB has noticed an appeal from that judgment. | ||||||||||||||||||||
An Amended Judgment, awarding the Company $0.1 million in costs was entered on January 22, 2014. | ||||||||||||||||||||
Neither of these suits have had any effect on CARB's certification of the Company's EVR System or any other products of the Company or its subsidiaries, and did not interfere with continuing sales. CARB has never decertified the Company's EVR System and has never proposed to do so. | ||||||||||||||||||||
The Company is defending various other claims and legal actions, including environmental matters, which have arisen in the | ||||||||||||||||||||
ordinary course of business. In the opinion of management, based on current knowledge of the facts and after discussion with | ||||||||||||||||||||
counsel, these claims and legal actions can be successfully defended or resolved without a material adverse effect on the | ||||||||||||||||||||
Company’s financial position, results of operations, and net cash flows. | ||||||||||||||||||||
Total rent expense charged to operations for operating leases including contingent rentals was $11.0 million, $9.5 million, and $8.8 million for 2013, 2012, and 2011, respectively. | ||||||||||||||||||||
The future minimum rental payments for non-cancelable operating leases as of December 28, 2013, are as follows: | ||||||||||||||||||||
(In millions) | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||
Future minimum rental payments | $ | 8.6 | $ | 3.3 | $ | 2.3 | $ | 1.2 | $ | 1.1 | ||||||||||
Rental commitments subsequent to 2018 are not significant by year, but aggregated are $1.4 million in total. | ||||||||||||||||||||
At December 28, 2013, the Company had $11.7 million of commitments primarily for the purchase of machinery and equipment as well as conditional agreements related to building expansions. | ||||||||||||||||||||
The changes in the carrying amount of the warranty accrual, as recorded in "Accrued expenses" in the Company's consolidated balance sheets for 2013 and 2012, are as follows: | ||||||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||||||
Beginning balance | $ | 9.7 | $ | 9.9 | ||||||||||||||||
Accruals related to product warranties | 9.1 | 6.8 | ||||||||||||||||||
Additions related to acquisitions | — | 0.4 | ||||||||||||||||||
Reductions for payments made | (9.3 | ) | (7.4 | ) | ||||||||||||||||
Ending balance | $ | 9.5 | $ | 9.7 | ||||||||||||||||
RESTRUCTURING
RESTRUCTURING | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
RESTRUCTURING | ' | ||||||||||||||||
RESTRUCTURING | |||||||||||||||||
Costs incurred in the twelve months ended December 28, 2013, included in the “Restructuring (income)/expense” line of the Company's consolidated statement of income, are as follows: | |||||||||||||||||
(In millions) | Water Systems | Fueling Systems | Other | Consolidated | |||||||||||||
Employee severance | $ | 0.6 | $ | 0.5 | $ | — | $ | 1.1 | |||||||||
Equipment relocation | 0.1 | — | — | 0.1 | |||||||||||||
Asset write-off | 1.4 | — | — | 1.4 | |||||||||||||
Other | 1.1 | — | — | 1.1 | |||||||||||||
Total | $ | 3.2 | $ | 0.5 | $ | — | $ | 3.7 | |||||||||
Restructuring expenses for 2013 included $1.3 million write-down of the Oklahoma City, Oklahoma facility, which was related to the Phase IV Global Manufacturing Realignment Program announced in 2011, $1.1 million of expenses primarily related to relocation to the new Corporate Headquarters and Engineering Center in Fort Wayne, Indiana, $0.6 million integration acquisition costs of the previously announced Flexing acquisition in Franklin Fueling Systems, and $0.7 million of other restructuring costs related to continued manufacturing alignments. | |||||||||||||||||
Restructuring expenses of $0.2 million and $1.6 million were incurred in 2012 and 2011, respectively, primarily for the Water Systems realignment. | |||||||||||||||||
As of December 28, 2013, there were no restructuring reserves. As of December 29, 2012, there was $0.1 million in restructuring reserves primarily for severance. |
SELECTED_QUARTERLY_FINANCIAL_D
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ' | |||||||||||||||||||||||
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | ||||||||||||||||||||||||
Unaudited quarterly financial information for 2013 and 2012, from continuing operations, is as follows: | ||||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||
Net Income | Net Income Attributable to Franklin Electric Co., Inc. | Basic Earnings Per Share | ||||||||||||||||||||||
Net Sales | Gross Profit | |||||||||||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
1st quarter | $ | 222.5 | $ | 73.9 | $ | 15.6 | $ | 15.5 | $ | 0.32 | $ | 0.32 | ||||||||||||
2nd quarter | 263.4 | 94.6 | 28.4 | 28.1 | 0.59 | 0.58 | ||||||||||||||||||
3rd quarter | 249.8 | 87 | 25.3 | 25.1 | 0.52 | 0.51 | ||||||||||||||||||
4th quarter | 229.8 | 76 | 13.4 | 13.3 | 0.27 | 0.27 | ||||||||||||||||||
$ | 965.5 | $ | 331.5 | $ | 82.7 | $ | 82 | $ | 1.7 | $ | 1.68 | |||||||||||||
2012 | ||||||||||||||||||||||||
1st quarter | $ | 201.9 | $ | 66.3 | $ | 23.2 | $ | 23 | $ | 0.49 | $ | 0.48 | ||||||||||||
2nd quarter | 246.7 | 84.3 | 25.2 | 24.8 | 0.53 | 0.52 | ||||||||||||||||||
3rd quarter | 237.6 | 82.6 | 22 | 21.9 | 0.47 | 0.46 | ||||||||||||||||||
4th quarter | 205.1 | 68.5 | 13.3 | 13.2 | 0.28 | 0.27 | ||||||||||||||||||
$ | 891.3 | $ | 301.7 | $ | 83.7 | $ | 82.9 | $ | 1.76 | $ | 1.73 | |||||||||||||
Basic and diluted earnings per share amounts are computed independently for each of the quarters presented. As a result, the sum of the quarterly earnings per share amounts may not equal the annual earnings per share amount. | ||||||||||||||||||||||||
Shares and per share data have been adjusted for all periods presented to reflect a two-for-one stock split effective March 18, 2013. |
Schedule_II_Valuation_and_Qual
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ' | ||||||||||||||||||||
Schedule II - Valuation and Qualifying Accounts | ' | ||||||||||||||||||||
FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES | |||||||||||||||||||||
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | |||||||||||||||||||||
(In millions) | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Balance at End of Period | ||||||||||||||||||
Deductions (a) | Other (b) | ||||||||||||||||||||
2013 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 3.2 | $ | (0.1 | ) | $ | 0.1 | $ | — | $ | 3 | ||||||||||
Allowance for deferred taxes | 4.4 | (0.9 | ) | — | — | 3.5 | |||||||||||||||
2012 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 3 | $ | 0.4 | $ | 0.2 | $ | — | $ | 3.2 | |||||||||||
Allowance for deferred taxes | 3.6 | 0.8 | — | — | 4.4 | ||||||||||||||||
2011 | |||||||||||||||||||||
Allowance for doubtful accounts | $ | 2.3 | $ | 0.8 | $ | 0.1 | $ | — | $ | 3 | |||||||||||
Allowance for deferred taxes | 3.4 | 0.2 | — | — | 3.6 | ||||||||||||||||
(a) Charges for which allowances were created. | |||||||||||||||||||||
(b) Primarily related to acquisitions. |
SIGNIFICANT_ACCOUNTING_POLICIE
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 28, 2013 | |
Accounting Policies [Abstract] | ' |
Fiscal year | ' |
The Company's fiscal year ends on the Saturday nearest December 31. The financial statements and accompanying notes are as of and for the years ended December 28, 2013 (52 weeks), December 29, 2012 (52 weeks), and December 31, 2011 (52 weeks), and referred to as 2013, 2012, and 2011, respectively. | |
Principles of Consolidation | ' |
The consolidated financial statements include the accounts of Franklin Electric Co., Inc. and its consolidated subsidiaries. All intercompany transactions have been eliminated. | |
Business Combinations | ' |
The Company allocates the purchase price of its acquisitions to the assets acquired, liabilities assumed, and non-controlling interests acquired based upon their respective fair values at the acquisition date. The Company utilizes management estimates and inputs from an independent third-party valuation firm to assist in determining these fair values. The excess of the acquisition price over these estimated fair values is recorded as goodwill. Goodwill is adjusted for any changes to acquisition date fair value amounts made within the measurement period. Acquisition-related transaction costs are recognized separately from the business combination and expensed as incurred. | |
Revenue Recognition | ' |
Products are shipped utilizing common carriers direct to customers or, for consignment products, to customer specified warehouse locations. Sales are recognized when the Company’s products are shipped direct or, in the case of consignment products, transferred from the customer specified warehouse location to the customer, at which time transfer of ownership and risk of loss pass to the customer. The Company records net sales revenues after discounts at the time of sale based on specific discount programs in effect, related historical data, and experience. | |
Research and Development Expense | ' |
The Company’s research and development activities are charged to expense in the period incurred. | |
Cash and Cash Equivalents | ' |
The Company considers cash on hand, demand deposits, and highly liquid investments with an original maturity date of three months or less to be cash and cash equivalents. | |
Fair Value of Financial Instruments | ' |
The fair value assumed floating rate debt was valued at par. In the absence of quoted prices in active markets, considerable judgment is required in developing estimates of fair value. Estimates are not necessarily indicative of the amounts the Company could realize in a current market transaction. In determining the fair value of its long-term debt, the Company uses estimates based on rates currently available to the Company for debt with similar terms and remaining maturities. These level 2 inputs were valued using the same historical technique. The Company’s off-balance sheet instruments consist of operating leases. | |
Accounts Receivable, Earned Discounts, and Allowance for Uncollectible Accounts | ' |
Accounts receivable are stated at estimated net realizable value. Accounts receivable are comprised of balances due from customers, net of earned discounts and estimated allowances for uncollectible accounts. Earned discounts are based on specific customer agreement terms. In determining allowances for uncollectible accounts, historical collection experience, current trends, aging of accounts receivable, and periodic credit evaluations of customers’ financial condition are reviewed. The Company believes that the allowance is appropriate; however, actual experience could differ from the original estimates, requiring adjustments to the reserve. | |
Inventories | ' |
Effective January 2, 2011, the Company elected to change its accounting principle of valuing all of its inventories that used the LIFO method to the FIFO method. | |
Inventories are stated at the lower of cost or market. The majority of the cost of domestic and foreign inventories is determined using the FIFO method with a portion of inventory costs determined using the average cost method. The Company reviews its inventories for excess or obsolete products or components based on an analysis of historical usage and management's evaluation of estimated future demand, market conditions, and alternative uses for possible excess or obsolete parts. | |
Property, Plant, and Equipment | ' |
Property, plant, and equipment are stated at cost. Depreciation of plant and equipment is calculated on a straight line basis over the estimated useful lives of 5 to 20 years for land improvements and buildings, 5 to 10 years for machinery and equipment, and 5 years for furniture and fixtures. Maintenance, repairs, and renewals of a minor nature are expensed as incurred. Betterments and major renewals which extend the useful lives or add to the productive capacity of buildings, improvements, and equipment are capitalized. The Company reviews its property, plant, and equipment for impairment at the asset group level whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. | |
Goodwill and Other Intangible Assets | ' |
The Company tests goodwill for impairment on an annual basis during the fourth quarter or more frequently as warranted by triggering events that indicate potential impairment. Goodwill is tested at the reporting unit level, which the company has determined to be the North America Water Systems, International Water, and Fueling Systems units. In compliance with Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC") Topic 350, Intangibles - Goodwill and Other, the Company has evaluated the aggregation criteria and determined that the components within the North America Water Systems and International Water reporting units can be aggregated in 2013. | |
In assessing the recoverability of goodwill, the Company determines the fair value of its reporting units by utilizing a combination of both the income and market valuation approaches. The income approach estimates fair value based upon future revenue, expenses, and cash flows discounted to present value. The market valuation approach estimates fair value using market multipliers of various financial measures compared to a set of comparable public companies. | |
An indication of impairment exists if the carrying value of the reporting unit is higher than its fair value, as determined by the above approach. The second step of testing as outlined in FASB ASC Topic 350 must be performed to measure the amount of impairment loss. The amount of impairment is determined by comparing the implied fair value of the reporting unit's goodwill to its carrying value in the same manner as if the reporting units were being acquired in a business combination. The Company would allocate the fair value to all of the reporting unit's assets and liabilities, including any unrecognized intangible assets, in a hypothetical analysis that would calculate the implied fair value of goodwill. The Company would record an impairment charge for the difference between the implied fair value of goodwill and the recorded goodwill. | |
The Company also tests indefinite lived intangible assets, primarily trade names, for impairment on an annual basis during the fourth quarter or more frequently as warranted by triggering events that indicate potential impairment. In assessing the recoverability of the trade names, the Company determines the fair value using an income approach. The income approach estimates fair value based upon future revenue and estimated royalty rates. An indication of impairment exists if the carrying value of the trade names is higher than the fair value. The Company would record an impairment charge for the difference. | |
Amortization is recorded and calculated for other definite lived intangible assets on a basis that reflects cash flows over the estimated useful lives. The weighted average number of years over which each intangible class is amortized is 17 years for patents, 6 years for supply agreements, 15 years for technology, 13 to 20 years for customer relationships, 5 years for software, and 8 years for all others. | |
Warranty Obligations | ' |
Warranty terms are generally 2 years from date of manufacture or one year from date of installation. The general warranty liability is recorded when revenue is recognized and is based on actual historical return rates from the most recent warranty periods. In 2007, the Company began offering an extended warranty program to certain Water Systems customers, which provides warranty coverage up to 5 years from the date of manufacture. Provisions for estimated expenses related to product warranty are made at the time products are sold or when specific warranty issues are identified. These estimates are established using historical information about the nature, frequency, and average cost of warranty claims and expected customer returns. The Company actively studies trends of warranty claims and takes action to improve product quality and minimize warranty claims. | |
Income Taxes | ' |
Income taxes are accounted for in accordance with FASB ASC Topic 740, Income Taxes. Under this guidance, deferred tax assets and liabilities are determined based on the difference between the financial statement and tax basis of assets and liabilities and net operating loss and credit carry forwards using enacted tax rates in effect for the year in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be realized. The Company records a liability for uncertain tax positions by establishing a recognition threshold and measurement attribute for recognition and measurement of a tax position taken or expected to be taken in a tax return. | |
Share-Based Compensation | ' |
The Company accounts for compensation costs for all share-based payments based on the grant-date fair value estimated in accordance with fair value provisions. | |
Pension | ' |
The Company makes its determination for pension, postretirement, and post employment benefit plans liabilities based on management estimates and consultation with actuaries, incorporating estimates, and assumptions of future plan service costs, future interest costs on projected benefit obligations, rates of compensation increases, employee turnover rates, anticipated mortality rates, expected investment returns on plan assets, asset allocation assumptions of plan assets, and other factors. | |
Earnings Per Common Share | ' |
Basic and diluted earnings per share are computed and disclosed in accordance with FASB ASC Topic 260, Earnings Per Share. The Company utilizes the two-class method to compute earnings available to common shareholders. Under the two-class method, earnings are adjusted by accretion amounts to redeemable noncontrolling interests recorded at redemption value. The adjustments represent dividend distributions, in substance, to the noncontrolling interest holder as the holders have contractual rights to receive an amount upon redemption other than the fair value of applicable shares. As a result, earnings are adjusted to reflect this in substance distribution that is different from other common shareholders. In addition, the Company allocates net earnings 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 allocable 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 allocable to common shares by the weighted-average number of common shares as of the balance sheet date, as adjusted for the potential dilutive effect of non-participating share-based awards. | |
Translation of Foreign Currencies | ' |
All assets and liabilities of foreign subsidiaries in functional currency other than the U.S. dollar are translated at year end exchange rates. All revenue and expense accounts are translated at average rates in effect during the respective period. Adjustments for translating longer term foreign currency assets and liabilities in U.S. dollars are included as a component of other comprehensive income. Transaction gains and losses that arise from shorter term exchange rate fluctuations are included in the results of operations in “Foreign exchange income/(expense)”, as incurred. | |
Significant Estimates | ' |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of expenses during the reporting periods. Significant estimates and assumptions by management affect allowance for uncollectible accounts, inventory valuation, warranty, business combinations, redeemable noncontrolling interest, mandatory share purchase, trade names and goodwill, income taxes, pension and employee benefit obligations, and share-based compensation. | |
Although the Company regularly assesses these estimates, actual results could materially differ. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances. |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | Dec. 31, 2011 | ||||||||||||||||
Business Combinations [Abstract] | ' | ' | |||||||||||||||
Schedule of Purchase Price Allocation | ' | ' | |||||||||||||||
The final purchase prices assigned to the major identifiable assets and liabilities for the Flex-ing, Cerus, and PPH acquisitions are as follows: | The purchase price assigned to each major identifiable asset and liability was as follows: | ||||||||||||||||
(In millions) | Flex-ing | Cerus | PPH | Total | |||||||||||||
Assets: | (In millions) | ||||||||||||||||
Cash acquired | $ | 0.1 | $ | — | $ | 0.8 | $ | 0.9 | Assets: | ||||||||
Cash acquired | $ | 0.9 | |||||||||||||||
Current assets | 2 | 3.8 | 38.1 | 43.9 | |||||||||||||
Current assets | 26.4 | ||||||||||||||||
Property, plant, and equipment | 0.4 | 0.3 | 3.6 | 4.3 | |||||||||||||
Property, plant, and equipment | 11.5 | ||||||||||||||||
Intangible assets | 8.9 | 17.3 | 43.9 | 70.1 | |||||||||||||
Intangible assets | 15.3 | ||||||||||||||||
Goodwill | 4 | 5.4 | 26.5 | 35.9 | |||||||||||||
Goodwill | 8.9 | ||||||||||||||||
Total assets | 15.4 | 26.8 | 112.9 | 155.1 | |||||||||||||
Other assets | 2.8 | ||||||||||||||||
Liabilities | (5.0 | ) | (2.4 | ) | (58.7 | ) | (66.1 | ) | |||||||||
Total | 10.4 | 24.4 | 54.2 | 89 | Total assets | 65.8 | |||||||||||
Less: Fair value of original equity interest | — | — | (23.9 | ) | (23.9 | ) | Contingent consideration | (5.5 | ) | ||||||||
Liabilities | (27.7 | ) | |||||||||||||||
Total purchase price | $ | 10.4 | $ | 24.4 | $ | 30.3 | $ | 65.1 | Total identifiable assets | 32.6 | |||||||
Noncontrolling interest | (6.5 | ) | |||||||||||||||
Total purchase price | $ | 26.1 | |||||||||||||||
Pro Forma Condensed Consolidated Statements of Income | ' | ' | |||||||||||||||
The following unaudited proforma financial information for the years ended December 29, 2012 and December 31, 2011 gives effect to the acquisitions of Flex-ing, Cerus, and PPH by the Company as if the acquisitions had occurred at the beginning of the 2012 and 2011 years. These unaudited proforma combined condensed financial statements are prepared for informational purposes only and are not necessarily indicative of actual results or financial position that would have been achieved had the acquisitions been consummated on the dates indicated and are not necessarily indicative of future operating results or financial position of the consolidated companies. The unaudited proforma combined condensed financial statements do not give effect to any cost savings or incremental costs that may result from the integration of Flex-ing, Cerus, and PPH with the Company. | |||||||||||||||||
FRANKLIN ELECTRIC CO., INC. | |||||||||||||||||
PRO FORMA CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |||||||||||||||||
(In millions, except per share amounts) | (Unaudited) | (Unaudited) | |||||||||||||||
2012 | 2011 | ||||||||||||||||
Net sales | $ | 925 | $ | 914 | |||||||||||||
Net income | 84 | 68 | |||||||||||||||
Per share data: | |||||||||||||||||
Basic earnings per share | $ | 1.79 | $ | 1.46 | |||||||||||||
Diluted earnings per share | $ | 1.76 | $ | 1.43 | |||||||||||||
FAIR_VALUE_MEASUREMENTS_Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Schedule of Fair Value, Assets Measured on Recurring Basis | ' | ||||||||||||||||||||
As of December 28, 2013 and December 29, 2012, the assets and liabilities measured at fair value on a recurring basis were as set forth in the table below. The "Recognized Loss" amounts in the table are accumulated totals since inception. | |||||||||||||||||||||
December 28, 2013 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs | Significant Unobservable Inputs (Level 3) | Recognized Loss | |||||||||||||||||
(Level 2) | |||||||||||||||||||||
(In millions) | |||||||||||||||||||||
Cash equivalents | $ | 6.6 | $ | 6.6 | $ | — | $ | — | $ | — | |||||||||||
Impo contingent consideration | — | — | — | — | — | ||||||||||||||||
29-Dec-12 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Recognized Loss | |||||||||||||||||
Cash equivalents | $ | 13.8 | $ | 13.8 | $ | — | $ | — | $ | — | |||||||||||
Impo contingent consideration | 5.6 | — | — | 5.6 | 0.8 | ||||||||||||||||
Schedule of Fair Value, Assets Measured on a Nonrecurring Basis | ' | ||||||||||||||||||||
The following table summarizes information regarding the Company’s non-financial assets and liabilities measured at fair value on a non-recurring basis: | |||||||||||||||||||||
28-Dec-13 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Recognized Loss | |||||||||||||||||
Asset held for sale | $ | 1.8 | $ | — | $ | — | $ | 1.8 | $ | 1.3 | |||||||||||
29-Dec-12 | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Recognized Loss | |||||||||||||||||
Asset held for sale | $ | — | $ | — | $ | — | $ | — | $ | 3.6 | |||||||||||
GOODWILL_AND_OTHER_INTANGIBLE_1
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Carrying Amounts of Intangible Assets | ' | ||||||||||||||||||||
The carrying amounts of the Company’s intangible assets are as follows: | |||||||||||||||||||||
(In millions) | 2013 | 2012 | |||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Gross Carrying Amount | Accumulated Amortization | ||||||||||||||||||
Amortized intangibles: | |||||||||||||||||||||
Patents | $ | 7.8 | $ | (5.9 | ) | $ | 7.8 | $ | (5.7 | ) | |||||||||||
Supply agreements | 4.4 | (4.4 | ) | 4.4 | (4.4 | ) | |||||||||||||||
Technology | 7.5 | (3.8 | ) | 7.5 | (3.2 | ) | |||||||||||||||
Customer relationships | 125.1 | (29.7 | ) | 125.9 | (23.1 | ) | |||||||||||||||
Software | 2.1 | (0.4 | ) | 1.7 | (0.1 | ) | |||||||||||||||
Other | 1.3 | (1.2 | ) | 1.2 | (1.2 | ) | |||||||||||||||
Total | $ | 148.2 | $ | (45.4 | ) | $ | 148.5 | $ | (37.7 | ) | |||||||||||
Unamortized intangibles: | |||||||||||||||||||||
Trade names | 45.9 | — | 47.3 | — | |||||||||||||||||
Total intangibles | $ | 194.1 | $ | (45.4 | ) | $ | 195.8 | $ | (37.7 | ) | |||||||||||
Schedule of Finite-Lived Intangible Assets, Useful Life | ' | ||||||||||||||||||||
The weighted average number of years over which each intangible class is amortized is as follows: | |||||||||||||||||||||
Class | Years | ||||||||||||||||||||
Patents | 17 | ||||||||||||||||||||
Supply agreements | 6 | ||||||||||||||||||||
Technology | 15 | ||||||||||||||||||||
Customer relationships | 13 - 20 | ||||||||||||||||||||
Software | 5 | ||||||||||||||||||||
Other | 8 | ||||||||||||||||||||
Schedule of Amortization Expense | ' | ||||||||||||||||||||
Amortization expense for each of the five succeeding years is projected as follows: | |||||||||||||||||||||
(In millions) | 2014 | 2015 | 2016 | 2017 | 2018 | ||||||||||||||||
$ | 8.1 | $ | 8.1 | $ | 8.1 | $ | 7.8 | $ | 7.7 | ||||||||||||
Schedule of Change in the Carrying Amount of Goodwill by Reporting Segment | ' | ||||||||||||||||||||
The change in the carrying amount of goodwill by reporting segment for 2013 and 2012, is as follows: | |||||||||||||||||||||
(In millions) | 2013 | ||||||||||||||||||||
Water Systems | Fueling Systems | Consolidated | |||||||||||||||||||
Balance as of December 29, 2012 | $ | 144.9 | $ | 63.2 | $ | 208.1 | |||||||||||||||
Acquisitions | 1.2 | — | 1.2 | ||||||||||||||||||
Adjustments to prior year acquisitions | (0.1 | ) | — | (0.1 | ) | ||||||||||||||||
Foreign currency translation | (1.9 | ) | (0.1 | ) | (2.0 | ) | |||||||||||||||
Balance as of December 28, 2013 | $ | 144.1 | $ | 63.1 | $ | 207.2 | |||||||||||||||
(In millions) | 2012 | ||||||||||||||||||||
Water Systems | Fueling Systems | Consolidated | |||||||||||||||||||
Balance as of December 31, 2011 | $ | 109.9 | $ | 58.9 | $ | 168.8 | |||||||||||||||
Acquisitions | 31.9 | 4.1 | 36 | ||||||||||||||||||
Adjustments to prior year acquisitions | 3 | — | 3 | ||||||||||||||||||
Foreign currency translation | 0.1 | 0.2 | 0.3 | ||||||||||||||||||
Balance as of December 29, 2012 | $ | 144.9 | $ | 63.2 | $ | 208.1 | |||||||||||||||
EMPLOYEE_BENEFIT_PLANS_Tables
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Related Changes in the Benefit Obligations, Changes in Plan Assets, Funded Status, Amounts Recognized in the Balance Sheet, Amounts Recognized in Other Accumulated Comprehensive Income | ' | |||||||||||||||||||||||
The following table sets forth aggregated information related to the Company’s pension benefits and other postretirement benefits, including changes in the benefit obligations, changes in plan assets, funded status, amounts recognized in the balance sheet, amounts recognized in other accumulated comprehensive income, and actuarial assumptions that the Company considered in its determination of benefit obligations and plan costs. Benefit obligation balances presented below reflect the projected benefit obligation (PBO) for our pension plans, and accumulated postretirement benefit obligations (APBO) for our other benefit plans. | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Accumulated benefit obligation, end of year | $ | 180.6 | $ | 191.4 | $ | 12.6 | $ | 14.5 | ||||||||||||||||
Change in benefit obligation: | ||||||||||||||||||||||||
Benefit obligation, beginning of year | $ | 196.3 | $ | 176.6 | $ | 14.5 | $ | 13.4 | ||||||||||||||||
Service cost | 1.8 | 1.5 | 0.1 | 0.1 | ||||||||||||||||||||
Interest cost | 7.6 | 8.2 | 0.5 | 0.6 | ||||||||||||||||||||
Plan amendments | — | — | — | 0.8 | ||||||||||||||||||||
Actuarial (gain)/loss | (10.2 | ) | 20.5 | (1.0 | ) | 1.2 | ||||||||||||||||||
Settlements paid | (0.8 | ) | (0.3 | ) | — | — | ||||||||||||||||||
Benefits paid | (10.7 | ) | (10.6 | ) | (1.5 | ) | (1.6 | ) | ||||||||||||||||
Liability gain due to curtailment | — | — | — | — | ||||||||||||||||||||
Foreign currency exchange | 0.7 | 0.4 | — | — | ||||||||||||||||||||
Benefit obligation, end of year | $ | 184.7 | $ | 196.3 | $ | 12.6 | $ | 14.5 | ||||||||||||||||
Change in plan assets: | ||||||||||||||||||||||||
Fair value of assets, beginning of year | $ | 130.2 | $ | 120 | $ | — | $ | — | ||||||||||||||||
Actual return on plan assets | 24.3 | 14.2 | — | — | ||||||||||||||||||||
Company contributions | 7.7 | 6.7 | 1.5 | 1.6 | ||||||||||||||||||||
Settlements paid | (0.6 | ) | (0.3 | ) | — | — | ||||||||||||||||||
Benefits paid | (10.7 | ) | (10.6 | ) | (1.5 | ) | (1.6 | ) | ||||||||||||||||
Foreign currency exchange | 0.2 | 0.2 | — | — | ||||||||||||||||||||
Plan assets, end of year | $ | 151.1 | $ | 130.2 | $ | — | $ | — | ||||||||||||||||
Funded status | $ | (33.6 | ) | $ | (66.1 | ) | $ | (12.6 | ) | $ | (14.5 | ) | ||||||||||||
Amounts recognized in balance sheet: | ||||||||||||||||||||||||
Deferred tax asset | 21.2 | 32.2 | 1.2 | 1.9 | ||||||||||||||||||||
Current liabilities | (3.2 | ) | (0.1 | ) | (1.3 | ) | (1.5 | ) | ||||||||||||||||
Noncurrent liabilities | (30.4 | ) | (66.0 | ) | (11.3 | ) | (13.0 | ) | ||||||||||||||||
Net liability, end of year | $ | (12.4 | ) | $ | (33.9 | ) | $ | (11.4 | ) | $ | (12.6 | ) | ||||||||||||
Amount recognized in accumulated other comprehensive income: | ||||||||||||||||||||||||
Net transition obligation | $ | — | $ | — | $ | — | $ | — | ||||||||||||||||
Prior service cost | — | — | 1 | 1.2 | ||||||||||||||||||||
Net actuarial loss | 36.8 | 53.9 | 0.9 | 1.7 | ||||||||||||||||||||
Total recognized in accumulated other comprehensive income | $ | 36.8 | $ | 53.9 | $ | 1.9 | $ | 2.9 | ||||||||||||||||
Schedule of Amounts Recognized in Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||
The following table sets forth other changes in plan assets and benefit obligation recognized in other comprehensive income for 2013 and 2012: | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | ||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Net actuarial (gain)/loss | $ | (24.6 | ) | $ | 16.5 | $ | (1.0 | ) | $ | 1.2 | ||||||||||||||
Prior service cost | — | — | — | 0.8 | ||||||||||||||||||||
Amortization of: | ||||||||||||||||||||||||
Net actuarial gain | (3.2 | ) | (1.9 | ) | (0.3 | ) | (0.1 | ) | ||||||||||||||||
Prior service credit | — | — | (0.4 | ) | (0.3 | ) | ||||||||||||||||||
Settlement recognition | (0.7 | ) | (0.1 | ) | — | — | ||||||||||||||||||
Transition asset | — | — | — | (0.2 | ) | |||||||||||||||||||
Deferred tax asset/(liability) | 11.4 | (5.5 | ) | 0.7 | (0.7 | ) | ||||||||||||||||||
Total recognized in other comprehensive income | $ | (17.1 | ) | $ | 9 | $ | (1.0 | ) | $ | 0.7 | ||||||||||||||
Schedule of Assumptions Used | ' | |||||||||||||||||||||||
Assumptions used to determine domestic benefit obligations: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 4.75 | % | 4 | % | 4.5 | % | 3.5 | % | ||||||||||||||||
Rate of increase in future compensation* | — | % | — | % | 3.00 - 12.00% (Graded) | 3.00 - 12.00% | ||||||||||||||||||
(Graded) | ||||||||||||||||||||||||
*No rate of increases in future compensation used within assumptions for 2013 and 2012, as both Pension Plans were frozen effective December 31, 2011. | ||||||||||||||||||||||||
Assumptions used to determine domestic periodic benefit cost: | ||||||||||||||||||||||||
Pension Benefits | Other Benefits | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | |||||||||||||||||||||
Discount rate | 4 | % | 4.75 | % | 3.5 | % | 4.5 | % | ||||||||||||||||
Rate of increase in future compensation | — | % | — | % | 3.00 - 12.00% (Graded) | 3.00 - 12.00% | ||||||||||||||||||
(Graded) | ||||||||||||||||||||||||
Expected long-term rate of return on plan assets | 8 | % | 8 | % | — | % | — | % | ||||||||||||||||
Schedule of Aggregated Net Periodic Benefit Cost and Other Benefit Cost | ' | |||||||||||||||||||||||
The following table sets forth the aggregated net periodic benefit cost for all pension plans for 2013, 2012, and 2011: | ||||||||||||||||||||||||
(In millions) | Pension Benefits | Other Benefits | ||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Service cost | $ | 1.8 | $ | 1.5 | $ | 3.5 | $ | 0.1 | $ | 0.1 | $ | 0.1 | ||||||||||||
Interest cost | 7.6 | 8.2 | 8.7 | 0.5 | 0.6 | 0.6 | ||||||||||||||||||
Expected return on assets | (10.0 | ) | (10.1 | ) | (10.8 | ) | — | — | — | |||||||||||||||
Amortization of transition obligation | — | — | — | 0.4 | 0.2 | 0.1 | ||||||||||||||||||
Settlement cost | 0.1 | — | — | — | — | — | ||||||||||||||||||
Prior service cost | — | — | 0.1 | 0.4 | 0.3 | 0.1 | ||||||||||||||||||
Loss | 3.6 | 2 | 3 | — | 0.1 | — | ||||||||||||||||||
Net periodic benefit cost | $ | 3.1 | $ | 1.6 | $ | 4.5 | $ | 1.4 | $ | 1.3 | $ | 0.9 | ||||||||||||
Curtailment** | — | — | 0.1 | — | — | — | ||||||||||||||||||
Settlement cost | — | — | — | — | — | — | ||||||||||||||||||
Total net periodic benefit cost | $ | 3.1 | $ | 1.6 | $ | 4.6 | $ | 1.4 | $ | 1.3 | $ | 0.9 | ||||||||||||
** These items for 2011 related primarily to the benefit plan redesign. | ||||||||||||||||||||||||
Schedule of Allocation of Plan Assets | ' | |||||||||||||||||||||||
As of December 28, 2013, funds were invested in equity, fixed income, and other investments as follows: | ||||||||||||||||||||||||
Equity | Percentage | |||||||||||||||||||||||
U.S. Large Cap | 46 | % | ||||||||||||||||||||||
World Equity ex-U.S. | 17 | % | ||||||||||||||||||||||
U.S. Small / Mid Cap | 8 | % | ||||||||||||||||||||||
Subtotal | 71 | % | ||||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||
U.S. Core Fixed Income | 12 | % | ||||||||||||||||||||||
Long Duration Bond | 8 | % | ||||||||||||||||||||||
High Yield Fixed Income | 3 | % | ||||||||||||||||||||||
Emerging Markets Debt | 2 | % | ||||||||||||||||||||||
Subtotal | 25 | % | ||||||||||||||||||||||
Other | ||||||||||||||||||||||||
Insurance Contracts | 4 | % | ||||||||||||||||||||||
Cash Equivalents | — | % | ||||||||||||||||||||||
Subtotal | 4 | % | ||||||||||||||||||||||
Total | 100 | % | ||||||||||||||||||||||
Schedule of Fair Value of Defined Benefit Plan Assets | ' | |||||||||||||||||||||||
The fair values of the Company’s pension plan assets for 2013 and 2012 by asset category are as follows: | ||||||||||||||||||||||||
(In millions) | 2013 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable | ||||||||||||||||||||
(Level 1) | (Level 2) | Inputs | ||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
U.S. Large Cap | $ | 69.4 | $ | 69.4 | $ | — | $ | — | ||||||||||||||||
U.S. Small / Mid Cap | 12.8 | 12.8 | — | — | ||||||||||||||||||||
World Equity ex-U.S. | 25.6 | 25.6 | — | — | ||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||
U.S. Core Fixed Income | 17.9 | 17.9 | — | — | ||||||||||||||||||||
Long Duration Bond | 11.5 | 11.5 | — | — | ||||||||||||||||||||
High Yield Fixed Income | 4.4 | 4.4 | — | — | ||||||||||||||||||||
Emerging Markets Debt | 3.7 | 3.7 | — | — | ||||||||||||||||||||
Other | ||||||||||||||||||||||||
Insurance Contracts | 5.8 | — | 5.8 | — | ||||||||||||||||||||
Cash and Equivalents | — | — | — | — | ||||||||||||||||||||
Total | $ | 151.1 | $ | 145.3 | $ | 5.8 | $ | — | ||||||||||||||||
(In millions) | 2012 | Quoted Prices in Active Markets for Identical Assets | Significant Other Observable Inputs | Significant Unobservable | ||||||||||||||||||||
(Level 1) | (Level 2) | Inputs | ||||||||||||||||||||||
(Level 3) | ||||||||||||||||||||||||
Equity | ||||||||||||||||||||||||
U.S. Large Cap | $ | 55.2 | $ | 55.2 | $ | — | $ | — | ||||||||||||||||
U.S. Small / Mid Cap | 9.2 | 9.2 | — | — | ||||||||||||||||||||
World Equity ex-U.S. | 21.9 | 21.9 | — | — | ||||||||||||||||||||
Fixed Income | ||||||||||||||||||||||||
U.S. Core Fixed Income | 16.4 | 16.4 | — | — | ||||||||||||||||||||
Long Duration Bond | 12.5 | 12.5 | — | — | ||||||||||||||||||||
High Yield Fixed Income | 4.2 | 4.2 | — | — | ||||||||||||||||||||
Emerging Markets Debt | 4 | 4 | — | — | ||||||||||||||||||||
Other | ||||||||||||||||||||||||
Insurance Contracts | 5.7 | — | 5.7 | — | ||||||||||||||||||||
Cash and Equivalents | 1.1 | 1.1 | — | — | ||||||||||||||||||||
Total | $ | 130.2 | $ | 124.5 | $ | 5.7 | $ | — | ||||||||||||||||
Schedule of Expected Benefit Payments | ' | |||||||||||||||||||||||
The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid: | ||||||||||||||||||||||||
(In millions) | Pension | Other | ||||||||||||||||||||||
Benefits | Benefits | |||||||||||||||||||||||
2014 | $ | 14.3 | $ | 1.4 | ||||||||||||||||||||
2015 | 14.2 | 1.3 | ||||||||||||||||||||||
2016 | 14 | 1.2 | ||||||||||||||||||||||
2017 | 10.9 | 1.1 | ||||||||||||||||||||||
2018 | 11 | 1 | ||||||||||||||||||||||
Years 2019 through 2023 | 58.5 | 4.2 | ||||||||||||||||||||||
Schedule of Company Contributions to the 401(k) Plan | ' | |||||||||||||||||||||||
The following table sets forth Company contributions to the 401(k) Plan: | ||||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | |||||||||||||||||||||
Company contributions to the plan | $ | 5.3 | $ | 5 | $ | 1.9 | ||||||||||||||||||
ACCRUED_EXPENSES_Tables
ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities | ' | ||||||||
Accrued expenses consist of: | |||||||||
(In millions) | 2013 | 2012 | |||||||
Salaries, wages, and commissions | $ | 27.2 | $ | 26.3 | |||||
Product warranty costs | 9.5 | 9.7 | |||||||
Insurance | 3.4 | 5.2 | |||||||
Employee benefits | 10.3 | 7.1 | |||||||
Other | 11.7 | 12.1 | |||||||
$ | 62.1 | $ | 60.4 | ||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Income before Income Tax, Domestic and Foreign | ' | ||||||||||||
Income before income taxes consisted of the following: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Domestic | $ | 53.5 | $ | 53.2 | $ | 29.2 | |||||||
Foreign | 58 | 62.8 | 57.9 | ||||||||||
$ | 111.5 | $ | 116 | $ | 87.1 | ||||||||
Schedule of Components of Income Tax Expense (Benefit) | ' | ||||||||||||
The income tax provision/(benefit) from continuing operations consisted of the following: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Current: | |||||||||||||
Federal | $ | 10.8 | $ | 13.9 | $ | 7.3 | |||||||
Foreign | 14.3 | 7.9 | 11.3 | ||||||||||
State | 2.1 | 1.9 | 0.9 | ||||||||||
Total current | 27.2 | 23.7 | 19.5 | ||||||||||
Deferred: | |||||||||||||
Federal | 4.3 | 4.6 | 2.1 | ||||||||||
Foreign | (1.3 | ) | 3.3 | 1.8 | |||||||||
State | (1.3 | ) | 0.7 | — | |||||||||
Total deferred | $ | 1.7 | $ | 8.6 | $ | 3.9 | |||||||
$ | 28.9 | $ | 32.3 | $ | 23.4 | ||||||||
Schedule of Effective Income Tax Rate Reconciliation | ' | ||||||||||||
A reconciliation of the tax provision for continuing operations at the U.S. statutory rate to the effective income tax expense rate as reported is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
U.S. Federal statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State income taxes, net of federal benefit | 1.2 | 0.9 | 0.8 | ||||||||||
Foreign operations | (6.2 | ) | (7.6 | ) | (8.5 | ) | |||||||
R&D tax credits | (1.1 | ) | — | (0.5 | ) | ||||||||
Uncertain tax position adjustments | (1.9 | ) | 2.8 | (0.3 | ) | ||||||||
Deferred tax adjustments, rate and other | — | (4.7 | ) | — | |||||||||
Valuation allowance on state deferred tax | (0.8 | ) | 0.8 | (0.1 | ) | ||||||||
Other items | (0.3 | ) | 0.6 | 0.5 | |||||||||
Effective tax rate | 25.9 | % | 27.8 | % | 26.9 | % | |||||||
Schedule of Deferred Tax Assets and Liabilities | ' | ||||||||||||
Significant components of the Company's deferred tax assets and liabilities were as follows: | |||||||||||||
(In millions) | 2013 | 2012 | |||||||||||
Deferred tax assets: | |||||||||||||
Accrued expenses and reserves | $ | 11 | $ | 10.5 | |||||||||
Compensation and employee benefits | 25.1 | 38 | |||||||||||
Other items | 5.1 | 4.4 | |||||||||||
Valuation allowance on state deferred tax | (3.5 | ) | (4.4 | ) | |||||||||
Total deferred tax assets | 37.7 | 48.5 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Accelerated depreciation on fixed assets | 10.3 | 9.7 | |||||||||||
Amortization of intangibles | 61 | 61.9 | |||||||||||
Other items | 9.2 | 7.8 | |||||||||||
Total deferred tax liabilities | 80.5 | 79.4 | |||||||||||
Net deferred tax liabilities | $ | (42.8 | ) | $ | (30.9 | ) | |||||||
Schedule of Unrecognized Tax Benefits Rollforward | ' | ||||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits for 2013, 2012, and 2011 (excluding interest and penalties) is as follows: | |||||||||||||
(In millions) | 2013 | 2012 | 2011 | ||||||||||
Beginning balance | $ | 6.9 | $ | 5.6 | $ | 3.6 | |||||||
Additions based on tax positions related to the current year | — | — | — | ||||||||||
Additions for tax positions of prior years | 1.7 | 3.6 | 2.8 | ||||||||||
Reductions for tax positions of prior years | (3.5 | ) | (1.7 | ) | (0.8 | ) | |||||||
Settlements | — | (0.6 | ) | — | |||||||||
Ending balance | $ | 5.1 | $ | 6.9 | $ | 5.6 | |||||||
DEBT_Tables
DEBT (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||||||||||
Schedule of Long-term Debt | ' | ||||||||||||||||||||||||||||
Debt consisted of the following: | |||||||||||||||||||||||||||||
(In millions) | 2013 | 2012 | |||||||||||||||||||||||||||
Prudential Agreement - 5.79 percent | $ | 150 | $ | 150 | |||||||||||||||||||||||||
Tax increment financing debt | 24.6 | — | |||||||||||||||||||||||||||
Capital leases | 0.8 | 1 | |||||||||||||||||||||||||||
Foreign subsidiary debt | 14.2 | 14.9 | |||||||||||||||||||||||||||
189.6 | 165.9 | ||||||||||||||||||||||||||||
Less current maturities | (15.4 | ) | (15.2 | ) | |||||||||||||||||||||||||
Long-term debt | $ | 174.2 | $ | 150.7 | |||||||||||||||||||||||||
Schedule of Long-term Debt Payments | ' | ||||||||||||||||||||||||||||
The following debt payments are expected to be paid in accordance with the following schedule: | |||||||||||||||||||||||||||||
(In millions) | Total | 2014 | 2015 | 2016 | 2017 | 2018 | More than 5 years | ||||||||||||||||||||||
Debt | $ | 188.8 | $ | 15.1 | $ | 30.9 | $ | 31 | $ | 31 | $ | 31 | $ | 49.8 | |||||||||||||||
Capital leases | 0.8 | 0.3 | 0.2 | 0.1 | 0.1 | 0.1 | — | ||||||||||||||||||||||
$ | 189.6 | $ | 15.4 | $ | 31.1 | $ | 31.1 | $ | 31.1 | $ | 31.1 | $ | 49.8 | ||||||||||||||||
SHAREOWNERS_EQUITY_Tables
SHAREOWNERS' EQUITY (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
Shares Repurchased and Retired During Year | ' | ||||||||||||
During 2013, 2012, and 2011, pursuant to a stock repurchase program authorized by the Company’s Board of Directors, the Company repurchased and retired the following amounts and number of shares: | |||||||||||||
(In millions, except share amounts) | 2013 | 2012 | 2011 | ||||||||||
Repurchases | $ | 2.8 | $ | 10 | $ | 10.6 | |||||||
Shares | 88,200 | 400,000 | 500,000 | ||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Equity [Abstract] | ' | ||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ' | ||||||||||||
Changes in accumulated other comprehensive income (loss) by component are summarized below: | |||||||||||||
(In millions) | |||||||||||||
For the Year Ended December 28, 2013: | Foreign Currency Translation Adjustments | Pension and Post-Retirement Plan Benefit Adjustments | Total | ||||||||||
Balance, December 29, 2012 | $ | (0.3 | ) | $ | (56.8 | ) | $ | (57.1 | ) | ||||
Other comprehensive income/(loss) before reclassifications: | |||||||||||||
Pre-tax income/(loss) | (16.0 | ) | — | (16.0 | ) | ||||||||
Income tax expense | — | — | — | ||||||||||
Other comprehensive income/(loss) before reclassifications, net of income taxes | (16.0 | ) | — | (16.0 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss): | |||||||||||||
Pre-tax income | — | 30.2 | -1 | 30.2 | |||||||||
Income tax expense | — | (12.1 | ) | (12.1 | ) | ||||||||
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes | — | 18.1 | 18.1 | ||||||||||
Net current period other comprehensive income/(loss), net of income taxes | (16.0 | ) | 18.1 | 2.1 | |||||||||
Other comprehensive (income)/loss attributable to noncontrolling interest | 0.3 | — | 0.3 | ||||||||||
Balance, December 28, 2013 | $ | (16.0 | ) | $ | (38.7 | ) | $ | (54.7 | ) | ||||
For the Year Ended December 29, 2012: | |||||||||||||
Balance, December 31, 2011 | $ | (2.2 | ) | $ | (47.1 | ) | $ | (49.3 | ) | ||||
Other comprehensive income/(loss) before reclassifications: | |||||||||||||
Pre-tax income/(loss) | 1.8 | — | 1.8 | ||||||||||
Income tax expense | — | — | — | ||||||||||
Other comprehensive income/(loss) before reclassifications, net of income taxes | 1.8 | — | 1.8 | ||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss): | |||||||||||||
Pre-tax income | — | (15.9 | ) | -1 | (15.9 | ) | |||||||
Income tax expense | — | 6.2 | 6.2 | ||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes | — | (9.7 | ) | (9.7 | ) | ||||||||
Net current period other comprehensive income/(loss), net of income taxes | 1.8 | (9.7 | ) | (7.9 | ) | ||||||||
Other comprehensive (income)/loss attributable to noncontrolling interest | 0.1 | — | 0.1 | ||||||||||
Balance, December 29, 2012 | $ | (0.3 | ) | $ | (56.8 | ) | $ | (57.1 | ) | ||||
For the Year Ended December 31, 2011: | |||||||||||||
Balance, January 1, 2011 | $ | 19 | $ | (38.4 | ) | $ | (19.4 | ) | |||||
Other comprehensive income/(loss) before reclassifications: | |||||||||||||
Pre-tax income/(loss) | (21.4 | ) | — | (21.4 | ) | ||||||||
Income tax expense | — | — | — | ||||||||||
Other comprehensive income/(loss) before reclassifications, net of income taxes | (21.4 | ) | $ | — | (21.4 | ) | |||||||
Amounts reclassified from accumulated other comprehensive income/(loss): | |||||||||||||
Pre-tax income | — | (14.2 | ) | (1 | ) | (14.2 | ) | ||||||
Income tax expense | — | 5.5 | 5.5 | ||||||||||
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes | — | (8.7 | ) | (8.7 | ) | ||||||||
Net current period other comprehensive income/(loss), net of income taxes | (21.4 | ) | (8.7 | ) | (30.1 | ) | |||||||
Other comprehensive (income)/loss attributable to noncontrolling interest | 0.2 | — | 0.2 | ||||||||||
Balance, December 31, 2011 | $ | (2.2 | ) | $ | (47.1 | ) | $ | (49.3 | ) | ||||
(1) This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 9 for additional details) and is included in the "Selling, general, and administrative expenses" line of the consolidated statements of income. |
EARNINGS_PER_SHARE_Tables
EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 28, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Computation of Basic and Diluted Earnings Per Share | ' | ||||||||||||
The following table sets forth the computation of basic and diluted earnings per share: | |||||||||||||
(In millions, except per share amounts) | 2013 | 2012 | 2011 | ||||||||||
Numerator: | |||||||||||||
Net income attributable to Franklin Electric Co., Inc. | $ | 82 | $ | 82.9 | $ | 63.1 | |||||||
Less: Undistributed earnings allocable to participating securities | 1 | 0.6 | — | ||||||||||
Less: Undistributed earnings allocated to redeemable non-controlling interest | 0.2 | — | 0.2 | ||||||||||
$ | 80.8 | $ | 82.3 | $ | 62.9 | ||||||||
Denominator: | |||||||||||||
Basic | |||||||||||||
Weighted average common shares | 47.5 | 46.9 | 46.4 | ||||||||||
Diluted | |||||||||||||
Effect of dilutive securities: | |||||||||||||
Non-participating employee and director incentive stock options and performance awards | 0.6 | 0.8 | 1 | ||||||||||
Adjusted weighted average common shares | 48.1 | 47.7 | 47.4 | ||||||||||
Basic earnings per share | $ | 1.7 | $ | 1.76 | $ | 1.36 | |||||||
Diluted earnings per share | $ | 1.68 | $ | 1.73 | $ | 1.33 | |||||||
Anti-dilutive stock options | 0.1 | 0.1 | 0.6 | ||||||||||
SHAREBASED_COMPENSATION_Tables
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | ||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||
Schedule of Authorized Number of Shares | ' | |||||||||||||
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) | ||||||||||||||
Shares | Weighted-Average Exercise Price | Weighted-Average Remaining Contractual Term | Aggregate | |||||||||||
Intrinsic Value (000’s) | ||||||||||||||
Stock Options | ||||||||||||||
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 | 24.1 | ||||||||||||
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) | Weighted-Average Grant- | |||||||||||||
Shares | Date Fair Value | |||||||||||||
Non-vested at beginning of 2012 | 1,094 | $ | 13.27 | |||||||||||
Granted | 250 | 24.1 | ||||||||||||
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 | $ | 25.3 | |||||||||||
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) | Weighted-Average Grant- | |||||||||||||
Shares | Date Fair Value | |||||||||||||
Non-vested at beginning of 2012 | 344 | $ | 17.24 | |||||||||||
Awarded | 208 | 24.9 | ||||||||||||
Vested | (76 | ) | 15.93 | |||||||||||
Forfeited | (18 | ) | 18.48 | |||||||||||
Non-vested at beginning of 2013 | 458 | $ | 20.9 | |||||||||||
Awarded | 165 | 32.9 | ||||||||||||
Vested | (66 | ) | 18.78 | |||||||||||
Forfeited | (6 | ) | 20.05 | |||||||||||
Non-vested at end of period | 551 | $ | 24.75 | |||||||||||
SEGMENT_AND_GEOGRAPHIC_INFORMA1
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||||||
Schedule of Financial Information by Reportable Business Segment | ' | |||||||||||||||||||||||
Financial information by reportable segment is as follows: | ||||||||||||||||||||||||
Net sales to external customers | Operating income (loss) | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||
Water Systems | $ | 766.4 | $ | 715 | $ | 654.1 | $ | 131.3 | $ | 124.1 | $ | 105.3 | ||||||||||||
Fueling Systems | 199.1 | 176.3 | 167 | 42.6 | 36.6 | 31.3 | ||||||||||||||||||
Other | — | — | — | (50.1 | ) | (47.7 | ) | (43.2 | ) | |||||||||||||||
Consolidated | $ | 965.5 | $ | 891.3 | $ | 821.1 | $ | 123.8 | $ | 113 | $ | 93.4 | ||||||||||||
Total assets | Depreciation | |||||||||||||||||||||||
2013 | 2012 | 2013 | 2012 | 2011 | ||||||||||||||||||||
Water Systems | $ | 714.7 | $ | 692 | $ | 18.1 | $ | 16.9 | $ | 15.2 | ||||||||||||||
Fueling Systems | 247.9 | 252 | 1.9 | 1.8 | 1.8 | |||||||||||||||||||
Other | 89.3 | 32.4 | 3.4 | 2.4 | 2.4 | |||||||||||||||||||
Consolidated | $ | 1,051.90 | $ | 976.4 | $ | 23.4 | $ | 21.1 | $ | 19.4 | ||||||||||||||
Amortization | Capital expenditures | |||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | |||||||||||||||||||
Water Systems | $ | 6 | $ | 5.7 | $ | 4.2 | $ | 31 | $ | 25.2 | $ | 13.8 | ||||||||||||
Fueling Systems | 1.9 | 1.5 | 1.7 | 4 | 3.3 | 1.8 | ||||||||||||||||||
Other | 0.1 | — | — | 32.2 | 13.6 | 5.5 | ||||||||||||||||||
Consolidated | $ | 8 | $ | 7.2 | $ | 5.9 | $ | 67.2 | $ | 42.1 | $ | 21.1 | ||||||||||||
Schedule of Financial Information by Geographic Region | ' | |||||||||||||||||||||||
Financial information by geographic region is as follows: | ||||||||||||||||||||||||
Net sales | Long-lived assets | |||||||||||||||||||||||
(In millions) | 2013 | 2012 | 2011 | 2013 | 2012 | |||||||||||||||||||
United States | $ | 460.5 | $ | 428.5 | $ | 371 | $ | 377.3 | $ | 330 | ||||||||||||||
Foreign | 505 | 462.8 | 450.1 | 199.2 | 215 | |||||||||||||||||||
Consolidated | $ | 965.5 | $ | 891.3 | $ | 821.1 | $ | 576.5 | $ | 545 | ||||||||||||||
CONTINGENCIES_AND_COMMITMENTS_
CONTINGENCIES AND COMMITMENTS (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | ' | |||||||||||||||||||
The future minimum rental payments for non-cancelable operating leases as of December 28, 2013, are as follows: | ||||||||||||||||||||
(In millions) | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||
Future minimum rental payments | $ | 8.6 | $ | 3.3 | $ | 2.3 | $ | 1.2 | $ | 1.1 | ||||||||||
Schedule of Changes in the Carrying Amount of the Warranty Accrual | ' | |||||||||||||||||||
The changes in the carrying amount of the warranty accrual, as recorded in "Accrued expenses" in the Company's consolidated balance sheets for 2013 and 2012, are as follows: | ||||||||||||||||||||
(In millions) | 2013 | 2012 | ||||||||||||||||||
Beginning balance | $ | 9.7 | $ | 9.9 | ||||||||||||||||
Accruals related to product warranties | 9.1 | 6.8 | ||||||||||||||||||
Additions related to acquisitions | — | 0.4 | ||||||||||||||||||
Reductions for payments made | (9.3 | ) | (7.4 | ) | ||||||||||||||||
Ending balance | $ | 9.5 | $ | 9.7 | ||||||||||||||||
RESTRUCTURING_Tables
RESTRUCTURING (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||
Schedule of Restructuring Cost Incurred, Included in Restructuring Expense | ' | ||||||||||||||||
Costs incurred in the twelve months ended December 28, 2013, included in the “Restructuring (income)/expense” line of the Company's consolidated statement of income, are as follows: | |||||||||||||||||
(In millions) | Water Systems | Fueling Systems | Other | Consolidated | |||||||||||||
Employee severance | $ | 0.6 | $ | 0.5 | $ | — | $ | 1.1 | |||||||||
Equipment relocation | 0.1 | — | — | 0.1 | |||||||||||||
Asset write-off | 1.4 | — | — | 1.4 | |||||||||||||
Other | 1.1 | — | — | 1.1 | |||||||||||||
Total | $ | 3.2 | $ | 0.5 | $ | — | $ | 3.7 | |||||||||
SELECTED_QUARTERLY_FINANCIAL_D1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended | |||||||||||||||||||||||
Dec. 28, 2013 | ||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||||||||||
Unaudited quarterly financial information for 2013 and 2012, from continuing operations, is as follows: | ||||||||||||||||||||||||
(In millions, except per share amounts) | ||||||||||||||||||||||||
Net Income | Net Income Attributable to Franklin Electric Co., Inc. | Basic Earnings Per Share | ||||||||||||||||||||||
Net Sales | Gross Profit | |||||||||||||||||||||||
Diluted Earnings Per Share | ||||||||||||||||||||||||
2013 | ||||||||||||||||||||||||
1st quarter | $ | 222.5 | $ | 73.9 | $ | 15.6 | $ | 15.5 | $ | 0.32 | $ | 0.32 | ||||||||||||
2nd quarter | 263.4 | 94.6 | 28.4 | 28.1 | 0.59 | 0.58 | ||||||||||||||||||
3rd quarter | 249.8 | 87 | 25.3 | 25.1 | 0.52 | 0.51 | ||||||||||||||||||
4th quarter | 229.8 | 76 | 13.4 | 13.3 | 0.27 | 0.27 | ||||||||||||||||||
$ | 965.5 | $ | 331.5 | $ | 82.7 | $ | 82 | $ | 1.7 | $ | 1.68 | |||||||||||||
2012 | ||||||||||||||||||||||||
1st quarter | $ | 201.9 | $ | 66.3 | $ | 23.2 | $ | 23 | $ | 0.49 | $ | 0.48 | ||||||||||||
2nd quarter | 246.7 | 84.3 | 25.2 | 24.8 | 0.53 | 0.52 | ||||||||||||||||||
3rd quarter | 237.6 | 82.6 | 22 | 21.9 | 0.47 | 0.46 | ||||||||||||||||||
4th quarter | 205.1 | 68.5 | 13.3 | 13.2 | 0.28 | 0.27 | ||||||||||||||||||
$ | 891.3 | $ | 301.7 | $ | 83.7 | $ | 82.9 | $ | 1.76 | $ | 1.73 | |||||||||||||
Basic and diluted earnings per share amounts are computed independently for each of the quarters presented. As a result, the sum of the quarterly earnings per share amounts may not equal the annual earnings per share amount. | ||||||||||||||||||||||||
Shares and per share data have been adjusted for all periods presented to reflect a two-for-one stock split effective March 18, 2013. |
SIGNIFICANT_ACCOUNTING_POLICIE1
SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Accounting Policies | ' | ' | ' |
Fiscal Weeks | '52 weeks | '52 weeks | '52 weeks |
Research and development expense | $16.80 | $9.90 | $8.20 |
Depreciation | 23.4 | 21.1 | 19.4 |
Standard warranty obligation, term (in years) | '2 years | ' | ' |
Extended warranty obligation, term (in years) | '5 years | ' | ' |
Patents | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Finite-lived intangible asset, useful life (in years) | '17 years | ' | ' |
Supply Agreements | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Finite-lived intangible asset, useful life (in years) | '6 years | ' | ' |
Technology | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Finite-lived intangible asset, useful life (in years) | '15 years | ' | ' |
Customer Relationships | Minimum | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Finite-lived intangible asset, useful life (in years) | '13 years | ' | ' |
Customer Relationships | Maximum | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Finite-lived intangible asset, useful life (in years) | '20 years | ' | ' |
Software | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Finite-lived intangible asset, useful life (in years) | '5 years | ' | ' |
Other | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Finite-lived intangible asset, useful life (in years) | '8 years | ' | ' |
Land Improvements and Buildings | Minimum | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Property, plant, and equipment, useful life (in years) | '5 years | ' | ' |
Land Improvements and Buildings | Maximum | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Property, plant, and equipment, useful life (in years) | '20 years | ' | ' |
Machinery and Equipment | Minimum | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Property, plant, and equipment, useful life (in years) | '5 years | ' | ' |
Machinery and Equipment | Maximum | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Property, plant, and equipment, useful life (in years) | '10 years | ' | ' |
Furniture and Fixtures | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Property, plant, and equipment, useful life (in years) | '5 years | ' | ' |
Carrying Amount | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Long-term debt | 188.8 | 164.9 | ' |
Estimated Fair Value | ' | ' | ' |
Accounting Policies | ' | ' | ' |
Long-term debt | $203.70 | $179.80 | ' |
STOCK_SPLIT_Details
STOCK SPLIT (Details) (USD $) | 3 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 29, 2012 |
Stock Split [Abstract] | ' | ' | ' |
Stock split conversion ratio | 2 | ' | ' |
Stock split effected in the form of a stock distribution, distribution percentage | 100.00% | ' | ' |
Stock issued during period as a result of stock split (in shares) | 23.7 | ' | ' |
Common shares, par value (in dollars per share) | $0.10 | $0.10 | $0.10 |
Value of stock issued during period as a result of stock split (in dollars) | $2.37 | ' | ' |
ACQUISITIONS_Narrative_Details
ACQUISITIONS (Narrative) (Details) | 12 Months Ended | 0 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | 3 Months Ended | 0 Months Ended | |||||||||||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Nov. 16, 2012 | Aug. 09, 2012 | Dec. 28, 2013 | Mar. 31, 2012 | Dec. 29, 2012 | Mar. 07, 2012 | Mar. 05, 2012 | 2-May-11 | 2-May-11 | Dec. 29, 2012 | Dec. 29, 2012 | Dec. 19, 2011 | Dec. 19, 2011 | Apr. 04, 2009 | Mar. 07, 2012 | Mar. 07, 2012 | Dec. 28, 2013 | |
USD ($) | USD ($) | USD ($) | Series of Individually Immaterial Business Acquisitions | Flex-ing Inc. | Cerus Industrial Corporation | Cerus Industrial Corporation | Pioneer Pump Holdings Inc | Pioneer Pump Holdings Inc | Pioneer Pump Holdings Inc | Pioneer Pump Holdings Inc | Impo Motor Pompa Sanayi ve Ticaret A.S. | Impo Motor Pompa Sanayi ve Ticaret A.S. | Impo Motor Pompa Sanayi ve Ticaret A.S. | Impo Motor Pompa Sanayi ve Ticaret A.S. | Vertical S.p.A. | Vertical S.p.A. | Vertical S.p.A. | Minimum | Maximum | Pioneer Pump Holdings Inc | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | TRY | USD ($) | TRY | USD ($) | EUR (€) | Pioneer Pump Holdings Inc | Pioneer Pump Holdings Inc | USD ($) | ||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | $70,100,000 | ' | ' | $8,900,000 | $17,300,000 | ' | ' | ' | $43,900,000 | ' | $15,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 207,220,000 | 208,141,000 | 168,800,000 | ' | 4,000,000 | 5,400,000 | ' | ' | ' | 26,500,000 | ' | 8,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustments to prior year acquisitions | -100,000 | 3,000,000 | ' | ' | ' | ' | -100,000 | ' | 1,500,000 | ' | ' | ' | ' | 2,700,000 | ' | ' | ' | ' | ' | ' | ' |
Business combination, pro forma information, revenue of acquiree since acquisition date, actual | ' | 48,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination, pro forma information, earnings or loss of acquiree since acquisition date, actual | ' | 1,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total purchase price | ' | 65,100,000 | ' | 3,600,000 | 10,400,000 | 24,400,000 | ' | ' | ' | 30,300,000 | ' | 26,100,000 | 40,000,000 | ' | ' | 7,400,000 | 5,700,000 | ' | ' | ' | ' |
Ownership percentage by noncontrolling owners | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 20.00% | 20.00% | ' | ' | ' | ' | 25.00% | ' | ' | ' |
Percentage of outstanding shares acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | 39.50% | ' | 80.00% | 80.00% | ' | ' | 100.00% | 100.00% | 75.00% | ' | ' | ' |
Quarter of acquisition agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 'first quarter of 2009 | ' | ' | ' |
Percent equity interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, percentage of total ownership | ' | ' | ' | ' | ' | ' | ' | ' | ' | 70.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, cash paid | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,100,000 | 5,400,000 | ' | ' | ' | ' |
Redeemable noncontrolling interest, equity, previously recorded fair value and currency translation adjustments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7,700,000 | ' | ' | ' | ' | ' |
Acquired finite-lived Intangible asset, weighted average useful life (in years) | ' | ' | ' | ' | '15 years | '17 years | ' | ' | ' | ' | ' | '13 years | '13 years | ' | ' | ' | ' | ' | '17 years | '19 years | ' |
Contingent consideration, potential cash payment | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 | ' | ' | ' | ' | ' | ' |
Business combination, step acquisition, remeasurement gain | ' | ' | ' | ' | ' | ' | ' | 12,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contractual obligation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 22,900,000 |
Adjustments related to mandatory share purchase liability | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business combination, acquisition related costs | $1,100,000 | $300,000 | $400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ACQUISITIONS_Purchase_Price_As
ACQUISITIONS (Purchase Price Assigned to Each Major Identifiable Asset and Liability) (Details) | 0 Months Ended | 0 Months Ended | |||||||||
Dec. 29, 2012 | Dec. 28, 2013 | Dec. 31, 2011 | Nov. 16, 2012 | Aug. 09, 2012 | Mar. 07, 2012 | Dec. 29, 2012 | Dec. 29, 2012 | Dec. 29, 2012 | 2-May-11 | 2-May-11 | |
USD ($) | USD ($) | USD ($) | Flex-ing Inc. | Cerus Industrial Corporation | Pioneer Pump Holdings Inc | Flex-ing, Cerus, and PPH | Impo Motor Pompa Sanayi ve Ticaret A.S. | Impo Motor Pompa Sanayi ve Ticaret A.S. | Impo Motor Pompa Sanayi ve Ticaret A.S. | Impo Motor Pompa Sanayi ve Ticaret A.S. | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | TRY | USD ($) | TRY | ||||
Assets: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash acquired | $900,000 | ' | ' | $100,000 | $0 | $800,000 | ' | ' | ' | $900,000 | ' |
Current assets | 43,900,000 | ' | ' | 2,000,000 | 3,800,000 | 38,100,000 | ' | ' | ' | 26,400,000 | ' |
Property, plant, and equipment | 4,300,000 | ' | ' | 400,000 | 300,000 | 3,600,000 | ' | ' | ' | 11,500,000 | ' |
Intangible assets | 70,100,000 | ' | ' | 8,900,000 | 17,300,000 | 43,900,000 | ' | ' | ' | 15,300,000 | ' |
Goodwill | 208,141,000 | 207,220,000 | 168,800,000 | 4,000,000 | 5,400,000 | 26,500,000 | 35,900,000 | ' | ' | 8,900,000 | ' |
Other assets | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2,800,000 | ' |
Total assets | 155,100,000 | ' | ' | 15,400,000 | 26,800,000 | 112,900,000 | ' | ' | ' | 65,800,000 | ' |
Contingent consideration | ' | ' | ' | ' | ' | ' | ' | -5,600,000 | -10,000,000 | -5,500,000 | -8,500,000 |
Liabilities | 66,100,000 | ' | ' | 5,000,000 | 2,400,000 | 58,700,000 | ' | ' | ' | 27,700,000 | ' |
Total | 89,000,000 | ' | ' | 10,400,000 | 24,400,000 | 54,200,000 | ' | ' | ' | 32,600,000 | ' |
Less: Fair value of original equity interest | -23,900,000 | ' | ' | 0 | 0 | -23,900,000 | ' | ' | ' | ' | ' |
Noncontrolling interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | 6,500,000 | ' |
Total purchase price | $65,100,000 | ' | ' | $10,400,000 | $24,400,000 | $30,300,000 | ' | ' | ' | $26,100,000 | 40,000,000 |
ACQUISITIONS_Pro_Forma_Table_D
ACQUISITIONS Pro Forma Table (Details) (USD $) | 12 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Dec. 29, 2012 | Dec. 31, 2011 |
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment | ' | ' |
Net sales | $925 | $914 |
Net income | $84 | $68 |
Basic earnings per share (in dollars per share) | $1.79 | $1.46 |
Diluted earnings per share (in dollars per share) | $1.76 | $1.43 |
REDEEMABLE_NONCONTROLLING_INTE1
REDEEMABLE NONCONTROLLING INTERESTS (Details) (USD $) | 0 Months Ended | 12 Months Ended | 12 Months Ended | |||||||
In Millions, unless otherwise specified | 2-May-11 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | 2-May-11 | Dec. 31, 2011 | Dec. 19, 2011 | Apr. 04, 2009 |
Impo Motor Pompa Sanayi ve Ticaret A.S. | Impo Motor Pompa Sanayi ve Ticaret A.S. | Impo Motor Pompa Sanayi ve Ticaret A.S. | Vertical S.p.A. | Vertical S.p.A. | Vertical S.p.A. | |||||
Redeemable Noncontrolling Interest | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of outstanding shares acquired | ' | ' | ' | ' | ' | ' | 80.00% | ' | 100.00% | 75.00% |
Ownership percentage by noncontrolling owners | ' | ' | ' | ' | ' | ' | 20.00% | ' | ' | 25.00% |
Noncontrolling interest, description | 'three | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Adjustment to recorded amount of redeemable noncontrolling interest | ' | $0.20 | $0 | $0.20 | $0.20 | $0 | ' | $0.20 | ' | ' |
FAIR_VALUE_MEASUREMENTS_Detail
FAIR VALUE MEASUREMENTS (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis | Nonrecurring Basis | Nonrecurring Basis | Nonrecurring Basis | Nonrecurring Basis | Nonrecurring Basis | Nonrecurring Basis | Nonrecurring Basis | Nonrecurring Basis | Long Lived Assets Held-for-sale, Oklahoma City facility | Long Lived Assets Held-for-sale, Siloam Springs facility |
Estimated Fair Value | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | Nonrecurring Basis | Nonrecurring Basis | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash equivalents | $6.60 | $13.80 | $6.60 | $13.80 | $0 | $0 | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Asset held for sale | ' | ' | ' | ' | ' | ' | ' | ' | 1.8 | 0 | 0 | 0 | 0 | 0 | 1.8 | 0 | ' | ' |
Recognized loss | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1.30 | $3.60 |
FAIR_VALUE_MEASUREMENTS_Narrat
FAIR VALUE MEASUREMENTS (Narrative and Impo Contingent Consideration) (Details) (Impo Motor Pompa Sanayi ve Ticaret A.S.) | Dec. 29, 2012 | Dec. 29, 2012 | 2-May-11 | 2-May-11 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | USD ($) | TRY | USD ($) | TRY | Recurring Basis | Recurring Basis | Recurring Basis | Recurring Basis |
USD ($) | USD ($) | Significant Unobservable Inputs (Level 3) | Significant Unobservable Inputs (Level 3) | |||||
USD ($) | USD ($) | |||||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' | ' | ' | ' | ' | ' | ' |
Impo contingent consideration | $5.60 | 10 | $5.50 | 8.5 | $0 | $5.60 | $0 | $5.60 |
Accretion expense | ' | ' | ' | ' | $0 | $0.80 | ' | ' |
OTHER_ASSETS_Details
OTHER ASSETS (Details) (USD $) | 12 Months Ended | 12 Months Ended | |||||||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 28, 2013 | Nov. 21, 2013 | Mar. 05, 2012 | Dec. 31, 2011 | Sep. 20, 2005 | Mar. 05, 2012 | Mar. 07, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Water Pumping Systems Company | Water Pumping Systems Company | Pioneer Pump Inc | Pioneer Pump Inc | Pioneer Pump Inc | Pioneer Pump Holdings Inc | Pioneer Pump Holdings Inc | Other Income/(Expense) | Other Income/(Expense) | Other Income/(Expense) | ||
Pioneer Pump Inc | Pioneer Pump Inc | Pioneer Pump Inc | |||||||||
Schedule of Equity Method Investments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percent equity interest | ' | ' | 25.00% | ' | ' | 35.00% | 31.00% | ' | ' | ' | ' |
Carrying value of the investment | ' | $5.70 | ' | $11.70 | $11 | ' | ' | ' | ' | ' | ' |
Proportionate share of earnings | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0.40 | $2.30 |
Loans receivable, maturity term (in years) | '7 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Business acquisition, percentage of total ownership | ' | ' | ' | ' | ' | ' | ' | 70.50% | ' | ' | ' |
GOODWILL_AND_OTHER_INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Intangible Assets | ' | ' | ' |
Gross carrying amount, amortized intangibles | $148.20 | $148.50 | ' |
Accumulated amortization | -45.4 | -37.7 | ' |
Gross carrying amount, total intangibles | 194.1 | 195.8 | ' |
Amortization expense, intangible assets | 8 | 7.2 | 5.9 |
Future Amortization Expense | ' | ' | ' |
2014 | 8.1 | ' | ' |
2015 | 8.1 | ' | ' |
2016 | 8.1 | ' | ' |
2017 | 7.8 | ' | ' |
2018 | 7.7 | ' | ' |
Patents | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross carrying amount, amortized intangibles | 7.8 | 7.8 | ' |
Accumulated amortization | -5.9 | -5.7 | ' |
Finite-lived intangible asset, useful life (in years) | '17 years | ' | ' |
Supply Agreements | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross carrying amount, amortized intangibles | 4.4 | 4.4 | ' |
Accumulated amortization | -4.4 | -4.4 | ' |
Finite-lived intangible asset, useful life (in years) | '6 years | ' | ' |
Technology | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross carrying amount, amortized intangibles | 7.5 | 7.5 | ' |
Accumulated amortization | -3.8 | -3.2 | ' |
Finite-lived intangible asset, useful life (in years) | '15 years | ' | ' |
Customer Relationships | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross carrying amount, amortized intangibles | 125.1 | 125.9 | ' |
Accumulated amortization | -29.7 | -23.1 | ' |
Customer Relationships | Minimum | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Finite-lived intangible asset, useful life (in years) | '13 years | ' | ' |
Customer Relationships | Maximum | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Finite-lived intangible asset, useful life (in years) | '20 years | ' | ' |
Software | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross carrying amount, amortized intangibles | 2.1 | 1.7 | ' |
Accumulated amortization | -0.4 | -0.1 | ' |
Finite-lived intangible asset, useful life (in years) | '5 years | ' | ' |
Other | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross carrying amount, amortized intangibles | 1.3 | 1.2 | ' |
Accumulated amortization | -1.2 | -1.2 | ' |
Finite-lived intangible asset, useful life (in years) | '8 years | ' | ' |
Trade Names | ' | ' | ' |
Intangible Assets | ' | ' | ' |
Gross carrying amount, unamortized intangibles | $45.90 | $47.30 | ' |
GOODWILL_AND_OTHER_INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) (USD $) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Change in the Carrying Amount of Goodwill by Reporting Segment | ' | ' |
Goodwill, beginning balance | $208,141,000 | $168,800,000 |
Acquisitions | 1,200,000 | 36,000,000 |
Adjustments to prior year acquisitions | -100,000 | 3,000,000 |
Foreign currency translation | -2,000,000 | 300,000 |
Goodwill, ending balance | 207,220,000 | 208,141,000 |
Water Systems | ' | ' |
Change in the Carrying Amount of Goodwill by Reporting Segment | ' | ' |
Goodwill, beginning balance | 144,900,000 | 109,900,000 |
Acquisitions | 1,200,000 | 31,900,000 |
Adjustments to prior year acquisitions | -100,000 | 3,000,000 |
Foreign currency translation | -1,900,000 | 100,000 |
Goodwill, ending balance | 144,100,000 | 144,900,000 |
Fueling Systems | ' | ' |
Change in the Carrying Amount of Goodwill by Reporting Segment | ' | ' |
Goodwill, beginning balance | 63,200,000 | 58,900,000 |
Acquisitions | 0 | 4,100,000 |
Adjustments to prior year acquisitions | 0 | 0 |
Foreign currency translation | -100,000 | 200,000 |
Goodwill, ending balance | $63,100,000 | $63,200,000 |
EMPLOYEE_BENEFIT_PLANS_Details
EMPLOYEE BENEFIT PLANS (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |||
Net Periodic Benefit Cost and Other Benefit Cost | ' | ' | ' | |||
Defined Benefit plan, attempted plan funded status, minimum, percentage | 80.00% | ' | ' | |||
Frozen Pension plans, sunset period | ' | ' | '5 years | |||
Pension Benefits | ' | ' | ' | |||
Net Periodic Benefit Cost and Other Benefit Cost | ' | ' | ' | |||
Accumulated benefit obligation, end of year | $180.60 | $191.40 | ' | |||
Defined Benefit Plan, Change in Benefit Obligation | ' | ' | ' | |||
Benefit obligation, beginning of year | 196.3 | 176.6 | ' | |||
Service cost | 1.8 | 1.5 | 3.5 | |||
Interest cost | 7.6 | 8.2 | 8.7 | |||
Plan amendments | 0 | 0 | ' | |||
Actuarial (gain)/loss | -10.2 | 20.5 | ' | |||
Settlements paid | -0.8 | -0.3 | ' | |||
Benefits paid | -10.7 | -10.6 | ' | |||
Liability gain due to curtailment | 0 | 0 | ' | |||
Foreign currency exchange | 0.7 | 0.4 | ' | |||
Benefit obligation, end of year | 184.7 | 196.3 | 176.6 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets | ' | ' | ' | |||
Fair value of assets, beginning of year | 130.2 | 120 | ' | |||
Actual return on plan assets | 24.3 | 14.2 | ' | |||
Company contributions | 7.7 | 6.7 | ' | |||
Settlements paid | -0.6 | -0.3 | ' | |||
Benefits paid | -10.7 | -10.6 | ' | |||
Foreign currency exchange | 0.2 | 0.2 | ' | |||
Plan assets, end of year | 151.1 | 130.2 | 120 | |||
Funded status | -33.6 | -66.1 | ' | |||
Amounts recognized in balance sheet: | ' | ' | ' | |||
Deferred tax asset | 21.2 | 32.2 | ' | |||
Current liabilities | -3.2 | -0.1 | ' | |||
Noncurrent liabilities | -30.4 | -66 | ' | |||
Net liability, end of year | -12.4 | -33.9 | ' | |||
Amount recognized in accumulated other comprehensive income: | ' | ' | ' | |||
Net transition obligation | 0 | 0 | ' | |||
Prior service cost | 0 | 0 | ' | |||
Net actuarial loss | 36.8 | 53.9 | ' | |||
Total recognized in accumulated other comprehensive income | 36.8 | 53.9 | ' | |||
Net Periodic Benefit Cost | ' | ' | ' | |||
Service cost | 1.8 | 1.5 | 3.5 | |||
Interest cost | 7.6 | 8.2 | 8.7 | |||
Expected return on assets | -10 | -10.1 | -10.8 | |||
Amortization of transition obligation | 0 | 0 | 0 | |||
Settlement cost | 0.1 | 0 | 0 | |||
Prior service cost | 0 | 0 | 0.1 | |||
Loss | 3.6 | 2 | 3 | |||
Net periodic benefit cost | 3.1 | 1.6 | 4.5 | |||
Curtailment | 0 | [1] | 0 | [1] | 0.1 | [1] |
Settlement cost | 0 | 0 | 0 | |||
Total net periodic benefit cost | 3.1 | 1.6 | 4.6 | |||
Domestic Pension Plans | ' | ' | ' | |||
Net Periodic Benefit Cost and Other Benefit Cost | ' | ' | ' | |||
Defined Benefit Pension plans, number of pension plans | 2 | ' | ' | |||
German Pension Plans | ' | ' | ' | |||
Net Periodic Benefit Cost and Other Benefit Cost | ' | ' | ' | |||
Defined Benefit Pension plans, number of pension plans | 3 | ' | ' | |||
Accumulated benefit obligation, end of year | 168.4 | 181 | ' | |||
Other Benefits | ' | ' | ' | |||
Net Periodic Benefit Cost and Other Benefit Cost | ' | ' | ' | |||
Accumulated benefit obligation, end of year | 12.6 | 14.5 | ' | |||
Defined Benefit Plan, Change in Benefit Obligation | ' | ' | ' | |||
Benefit obligation, beginning of year | 14.5 | 13.4 | ' | |||
Service cost | 0.1 | 0.1 | 0.1 | |||
Interest cost | 0.5 | 0.6 | 0.6 | |||
Plan amendments | 0 | 0.8 | ' | |||
Actuarial (gain)/loss | -1 | 1.2 | ' | |||
Settlements paid | 0 | 0 | ' | |||
Benefits paid | -1.5 | -1.6 | ' | |||
Liability gain due to curtailment | 0 | 0 | ' | |||
Foreign currency exchange | 0 | 0 | ' | |||
Benefit obligation, end of year | 12.6 | 14.5 | 13.4 | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets | ' | ' | ' | |||
Fair value of assets, beginning of year | 0 | 0 | ' | |||
Actual return on plan assets | 0 | 0 | ' | |||
Company contributions | 1.5 | 1.6 | ' | |||
Settlements paid | 0 | 0 | ' | |||
Benefits paid | -1.5 | -1.6 | ' | |||
Foreign currency exchange | 0 | 0 | ' | |||
Plan assets, end of year | 0 | 0 | 0 | |||
Funded status | -12.6 | -14.5 | ' | |||
Amounts recognized in balance sheet: | ' | ' | ' | |||
Deferred tax asset | 1.2 | 1.9 | ' | |||
Current liabilities | -1.3 | -1.5 | ' | |||
Noncurrent liabilities | -11.3 | -13 | ' | |||
Net liability, end of year | -11.4 | -12.6 | ' | |||
Amount recognized in accumulated other comprehensive income: | ' | ' | ' | |||
Net transition obligation | 0 | 0 | ' | |||
Prior service cost | 1 | 1.2 | ' | |||
Net actuarial loss | 0.9 | 1.7 | ' | |||
Total recognized in accumulated other comprehensive income | 1.9 | 2.9 | ' | |||
Net Periodic Benefit Cost | ' | ' | ' | |||
Service cost | 0.1 | 0.1 | 0.1 | |||
Interest cost | 0.5 | 0.6 | 0.6 | |||
Expected return on assets | 0 | 0 | 0 | |||
Amortization of transition obligation | 0.4 | 0.2 | 0.1 | |||
Settlement cost | 0 | 0 | 0 | |||
Prior service cost | 0.4 | 0.3 | 0.1 | |||
Loss | 0 | 0.1 | 0 | |||
Net periodic benefit cost | 1.4 | 1.3 | 0.9 | |||
Curtailment | 0 | [1] | 0 | [1] | 0 | [1] |
Settlement cost | 0 | 0 | 0 | |||
Total net periodic benefit cost | 1.4 | 1.3 | 0.9 | |||
Other Pension Plans Covering Certain Management Employees | ' | ' | ' | |||
Net Periodic Benefit Cost and Other Benefit Cost | ' | ' | ' | |||
Accumulated benefit obligation, end of year | 12.3 | 10.4 | ' | |||
Defined Benefit Plan, Change in Benefit Obligation | ' | ' | ' | |||
Benefit obligation, end of year | 12.4 | 11.8 | ' | |||
Defined Benefit Plan, Change in Fair Value of Plan Assets | ' | ' | ' | |||
Funded status | $0 | $0 | ' | |||
[1] | ** These items for 2011 related primarily to the benefit plan redesign. |
EMPLOYEE_BENEFIT_PLANS_Other_C
EMPLOYEE BENEFIT PLANS (Other Changes in Plan Assets and Benefit Obligation Recognized in Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Pension Benefits | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Estimated net actuarial (gains) loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2014 fiscal year | $2.50 | ' |
Amortization of prior service cost/(credit) that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2014 fiscal year | 0 | ' |
Amortization of transition (asset)/obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2014 fiscal year | 0 | ' |
Net actuarial (gain)/loss | -24.6 | 16.5 |
Prior service cost | 0 | 0 |
Amortization of: | ' | ' |
Net actuarial gain | -3.2 | -1.9 |
Prior service credit | 0 | 0 |
Settlement recognition | -0.7 | -0.1 |
Transition asset | 0 | 0 |
Deferred tax asset/(liability) | 11.4 | -5.5 |
Total recognized in other comprehensive income | -17.1 | 9 |
Other Benefits | ' | ' |
Defined Benefit Plan Disclosure | ' | ' |
Estimated net actuarial (gains) loss that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2014 fiscal year | 0.1 | ' |
Amortization of prior service cost/(credit) that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2014 fiscal year | 0.4 | ' |
Amortization of transition (asset)/obligation that will be amortized from accumulated other comprehensive income into net periodic benefit cost during the 2014 fiscal year | 0 | ' |
Net actuarial (gain)/loss | -1 | 1.2 |
Prior service cost | 0 | 0.8 |
Amortization of: | ' | ' |
Net actuarial gain | -0.3 | -0.1 |
Prior service credit | -0.4 | -0.3 |
Settlement recognition | 0 | 0 |
Transition asset | 0 | -0.2 |
Deferred tax asset/(liability) | 0.7 | -0.7 |
Total recognized in other comprehensive income | ($1) | $0.70 |
EMPLOYEE_BENEFIT_PLANS_Assumpt
EMPLOYEE BENEFIT PLANS (Assumptions Used to Determine Domestic Benefit Obligations and Domestic Periodic Benefit Cost) (Details) | 12 Months Ended | |
Dec. 28, 2013 | Dec. 29, 2012 | |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | ' | ' |
Expected long-term rate of return on plan assets (as a percent) | 7.70% | ' |
Pension Benefits | ' | ' |
Weighted Average Assumptions Used in Calculating Benefit Obligation | ' | ' |
Discount rate (as a percent) | 4.75% | 4.00% |
Rate of increase in future compensation (Graded) (as a percent) | 0.00% | 0.00% |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | ' | ' |
Discount rate (as a percent) | 4.00% | 4.75% |
Rate of increase in future compensation (Graded) (as a percent) | 0.00% | 0.00% |
Expected long-term rate of return on plan assets (as a percent) | 8.00% | 8.00% |
Other Benefits | ' | ' |
Weighted Average Assumptions Used in Calculating Benefit Obligation | ' | ' |
Discount rate (as a percent) | 4.50% | 3.50% |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | ' | ' |
Discount rate (as a percent) | 3.50% | 4.50% |
Expected long-term rate of return on plan assets (as a percent) | 0.00% | 0.00% |
Other Benefits | Minimum | ' | ' |
Weighted Average Assumptions Used in Calculating Benefit Obligation | ' | ' |
Rate of increase in future compensation (Graded) (as a percent) | 3.00% | 3.00% |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | ' | ' |
Rate of increase in future compensation (Graded) (as a percent) | 3.00% | 3.00% |
Other Benefits | Maximum | ' | ' |
Weighted Average Assumptions Used in Calculating Benefit Obligation | ' | ' |
Rate of increase in future compensation (Graded) (as a percent) | 12.00% | 12.00% |
Weighted Average Assumptions Used in Calculating Net Periodic Benefit Cost | ' | ' |
Rate of increase in future compensation (Graded) (as a percent) | 12.00% | 12.00% |
EMPLOYEE_BENEFIT_PLANS_Funds_I
EMPLOYEE BENEFIT PLANS (Funds Invested in Equity, Fixed income, and Other Investments and Fair Values of Pension Plan Assets by Asset Category) (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
In Millions, unless otherwise specified | |||
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 100.00% | ' | ' |
Results of stochastic modeling, median return, percentage, minimum | 7.70% | ' | ' |
Equity Securities | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 71.00% | ' | ' |
U.S. Large Cap | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 46.00% | ' | ' |
Fair value of plan assets (in dollars) | $69.40 | $55.20 | ' |
U.S. Small/ Mid Cap | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 8.00% | ' | ' |
Fair value of plan assets (in dollars) | 12.8 | 9.2 | ' |
World Equity ex- U.S. | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 17.00% | ' | ' |
Fair value of plan assets (in dollars) | 25.6 | 21.9 | ' |
Fixed Income Securities | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 25.00% | ' | ' |
U.S. Core Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 12.00% | ' | ' |
Fair value of plan assets (in dollars) | 17.9 | 16.4 | ' |
Long Duration Bond | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 8.00% | ' | ' |
Fair value of plan assets (in dollars) | 11.5 | 12.5 | ' |
High Yield Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 3.00% | ' | ' |
Fair value of plan assets (in dollars) | 4.4 | 4.2 | ' |
Emerging Markets Debt | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 2.00% | ' | ' |
Fair value of plan assets (in dollars) | 3.7 | 4 | ' |
Insurance Contracts | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 4.00% | ' | ' |
Fair value of plan assets (in dollars) | 5.8 | 5.7 | ' |
Cash and Equivalents | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 0.00% | ' | ' |
Fair value of plan assets (in dollars) | 0 | 1.1 | ' |
Other than Securities Investment | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Plan asset allocations | 4.00% | ' | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 145.3 | 124.5 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Large Cap | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 69.4 | 55.2 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Small/ Mid Cap | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 12.8 | 9.2 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | World Equity ex- U.S. | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 25.6 | 21.9 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Core Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 17.9 | 16.4 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Long Duration Bond | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 11.5 | 12.5 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | High Yield Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 4.4 | 4.2 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Emerging Markets Debt | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 3.7 | 4 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Insurance Contracts | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and Equivalents | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 1.1 | ' |
Significant Other Observable Inputs (Level 2) | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 5.8 | 5.7 | ' |
Significant Other Observable Inputs (Level 2) | U.S. Large Cap | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | U.S. Small/ Mid Cap | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | World Equity ex- U.S. | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | U.S. Core Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | Long Duration Bond | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | High Yield Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | Emerging Markets Debt | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Other Observable Inputs (Level 2) | Insurance Contracts | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 5.8 | 5.7 | ' |
Significant Other Observable Inputs (Level 2) | Cash and Equivalents | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | U.S. Large Cap | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | U.S. Small/ Mid Cap | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | World Equity ex- U.S. | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | U.S. Core Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | Long Duration Bond | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | High Yield Fixed Income | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | Emerging Markets Debt | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | Insurance Contracts | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Significant Unobservable Inputs (Level 3) | Cash and Equivalents | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | 0 | 0 | ' |
Pension Benefits | ' | ' | ' |
Defined Benefit Plan Disclosure | ' | ' | ' |
Fair value of plan assets (in dollars) | $151.10 | $130.20 | $120 |
EMPLOYEE_BENEFIT_PLANS_Expecte
EMPLOYEE BENEFIT PLANS (Expected Benefit Payments) (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Dec. 28, 2013 |
Age | |
Defined Benefit Plan Disclosure | ' |
Estimated future employer contributions in next fiscal year | $13.70 |
Actuarially reduced benefits for employees who retire before defined age | 65 |
Pension Benefits | ' |
Defined Benefit Plan, Estimated Future Benefit Payments | ' |
2014 | 14.3 |
2015 | 14.2 |
2016 | 14 |
2017 | 10.9 |
2018 | 11 |
Years 2019 through 2023 | 58.5 |
Other Benefits | ' |
Defined Benefit Plan, Estimated Future Benefit Payments | ' |
2014 | 1.4 |
2015 | 1.3 |
2016 | 1.2 |
2017 | 1.1 |
2018 | 1 |
Years 2019 through 2023 | $4.20 |
EMPLOYEE_BENEFIT_PLANS_Defined
EMPLOYEE BENEFIT PLANS (Defined Contribution Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Company contributions to the plans | $5.30 | $5 | $1.90 |
ACCRUED_EXPENSES_Details
ACCRUED EXPENSES (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
Payables and Accruals [Abstract] | ' | ' |
Salaries, wages, and commissions | $27,200,000 | $26,300,000 |
Product warranty costs | 9,500,000 | 9,700,000 |
Insurance | 3,400,000 | 5,200,000 |
Employee benefits | 10,300,000 | 7,100,000 |
Other | 11,700,000 | 12,100,000 |
Total accrued expenses | $62,081,000 | $60,415,000 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income Tax Contingency | ' | ' | ' |
Valuation allowance on state deferred tax | $3.50 | $4.40 | ' |
Undistributed foreign earnings | 3.3 | ' | ' |
Deferred taxes on the excess of the financial reporting over the tax basis in our investments in foreign subsidiaries that are essentially permanent in duration | 193.6 | ' | ' |
Unrecognized tax benefits that would impact effective tax rate if recognized | 5 | 6.8 | 5.3 |
Increases resulting from prior period tax positions related to acquistions | 2 | ' | ' |
Reserve for interest and penalties | 0.2 | 1.1 | 0.5 |
Significant change in unrecognized tax benefits is reasonably possible, estimated range of change, upper bound | $1.40 | ' | ' |
INCOME_TAXES_Income_Before_Inc
INCOME TAXES (Income Before Income Taxes) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Income before income taxes | ' | ' | ' |
Domestic | $53.50 | $53.20 | $29.20 |
Foreign | 58 | 62.8 | 57.9 |
Income before income taxes | $111.50 | $116 | $87.10 |
INCOME_TAXES_Income_tax_provis
INCOME TAXES (Income tax provisions) (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Current payable: | ' | ' | ' |
Federal | $10,800,000 | $13,900,000 | $7,300,000 |
Foreign | 14,300,000 | 7,900,000 | 11,300,000 |
State | 2,100,000 | 1,900,000 | 900,000 |
Total current | 27,200,000 | 23,700,000 | 19,500,000 |
Deferred: | ' | ' | ' |
Federal | 4,300,000 | 4,600,000 | 2,100,000 |
Foreign | -1,300,000 | 3,300,000 | 1,800,000 |
State | -1,300,000 | 700,000 | 0 |
Total deferred | 1,707,000 | 8,571,000 | 3,867,000 |
Current payable and deferred - Income tax provisions | $28,851,000 | $32,250,000 | $23,412,000 |
Effective_tax_rate_reconciliat
(Effective tax rate reconciliation) (Details) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Income Tax Disclosure [Abstract] | ' | ' | ' |
U.S. Federal statutory rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.20% | 0.90% | 0.80% |
Foreign operations | -6.20% | -7.60% | -8.50% |
R&D tax credits | -1.10% | 0.00% | -0.50% |
Uncertain tax position adjustments | -1.90% | 2.80% | -0.30% |
State deferred tax rate adjustments | 0.00% | -4.70% | 0.00% |
Valuation allowance on state deferred tax | -0.80% | 0.80% | -0.10% |
Other items | -0.30% | 0.60% | 0.50% |
Effective tax rate | 25.90% | 27.80% | 26.90% |
INCOME_TAXES_Deferred_tax_asse
INCOME TAXES (Deferred tax assets and liabilities) (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Accrued expenses and reserves | $11 | $10.50 |
Compensation and employee benefits | 25.1 | 38 |
Other items | 5.1 | 4.4 |
Valuation allowance on state deferred tax | -3.5 | -4.4 |
Total deferred tax assets | 37.7 | 48.5 |
Deferred tax liabilities: | ' | ' |
Accelerated depreciation on fixed assets | 10.3 | 9.7 |
Amortization of intangibles | 61 | 61.9 |
Other items | 9.2 | 7.8 |
Total deferred tax liabilities | 80.5 | 79.4 |
Net deferred tax liabilities | ($42.80) | ($30.90) |
INCOME_TAXES_Reconciliation_of
INCOME TAXES (Reconciliation of the beginning and ending amount of gross unrecognized tax benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | ' | ' |
Beginning balance | $6.90 | $5.60 | $3.60 |
Additions based on tax positions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 1.7 | 3.6 | 2.8 |
Reductions for tax positions of prior years | -3.5 | -1.7 | -0.8 |
Settlements | 0 | -0.6 | 0 |
Ending balance | 5.1 | 6.9 | 5.6 |
State | ' | ' | ' |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | ' | ' |
Additions based on tax positions related to the current year | 0.1 | ' | ' |
Federal | ' | ' | ' |
Reconciliation of the beginning and ending amount of gross unrecognized tax benefits | ' | ' | ' |
Additions based on tax positions related to the current year | $1.70 | ' | ' |
DEBT_Details
DEBT (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | ||||||||||||
Jul. 22, 2010 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 14, 2006 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 14, 2011 | Dec. 28, 2013 | Apr. 09, 2007 | Apr. 30, 2007 | Sep. 07, 2007 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 31, 2012 | |
Payable Annually Commencing on April 30, 2015 | Agreement | Agreement | Agreement | Agreement | Prudential Agreement | Prudential Agreement | B-1 Notes | B-2 Notes | B-1 and B-2 Notes | B-1 and B-2 Notes | Tax Increment Financing | |||||
Unsecured Debt | Unsecured Debt | Unsecured Debt | Unsecured Debt | Notes Payable | Notes Payable | Notes Payable | ||||||||||
Debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Aggregate principal amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $175,000,000 | $110,000,000 | $40,000,000 | ' | ' | $25,000,000 |
Prudential Agreement, fixed interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5.79% | ' | ' |
Debt instrument, term | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '10 years | ' |
Debt instrument, increase, additional borrowings | 25,000,000 | 70,299,000 | 71,988,000 | 19,841,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, periodic payment, principal | ' | ' | ' | ' | 30,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, unused borrowing capacity, amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3.60% |
Cross default trigger, minimum | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,000,000 |
Prudential Agreement - 5.79 percent | ' | 150,000,000 | 150,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax increment financing debt | ' | 24,600,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Capital leases | ' | 800,000 | 1,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Foreign subsidiary debt | ' | 14,200,000 | 14,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt and capital lease obligations | ' | 189,600,000 | 165,900,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less current maturities | ' | -15,363,000 | -15,176,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | ' | 174,166,000 | 150,729,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of revolving credit | ' | ' | ' | ' | ' | 120,000,000 | ' | ' | 150,000,000 | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, term | ' | ' | ' | ' | ' | '60 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of credit facility, amount outstanding | ' | ' | ' | ' | ' | ' | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' |
DEBT_Debt_Payments_Expected_to
DEBT (Debt Payments Expected to be Paid) (Details) (USD $) | Dec. 28, 2013 | Dec. 29, 2012 |
In Millions, unless otherwise specified | ||
Long-term Debt, by Maturity | ' | ' |
Debt and capital lease obligations | $189.60 | $165.90 |
2014 | 15.4 | ' |
2015 | 31.1 | ' |
2016 | 31.1 | ' |
2017 | 31.1 | ' |
2018 | 31.1 | ' |
More than 5 years | 49.8 | ' |
Debt | ' | ' |
Long-term Debt, by Maturity | ' | ' |
Long-term debt | 188.8 | ' |
2014 | 15.1 | ' |
2015 | 30.9 | ' |
2016 | 31 | ' |
2017 | 31 | ' |
2018 | 31 | ' |
More than 5 years | 49.8 | ' |
Capital leases | ' | ' |
Long-term Debt, by Maturity | ' | ' |
Long-term debt | 0.8 | ' |
2014 | 0.3 | ' |
2015 | 0.2 | ' |
2016 | 0.1 | ' |
2017 | 0.1 | ' |
2018 | 0.1 | ' |
More than 5 years | $0 | ' |
SHAREOWNERS_EQUITY_Details
SHAREOWNERS' EQUITY (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Mar. 30, 2013 |
Equity [Abstract] | ' | ' | ' | ' |
Common shares, authorized (in shares) | 65,000,000 | 65,000,000 | ' | ' |
Common shares, par value (in dollars per share) | $0.10 | $0.10 | ' | $0.10 |
Stock repurchased and retired during period, value (in dollars) | $2.80 | $10 | $10.60 | ' |
Stock repurchased and retired during period, shares | 88,200 | 400,000 | 500,000 | ' |
Shares retired that had been previously granted as stock awards to employees, but were forfeited upon not meeting the required restriction criteria or termination (in shares) | 6,190 | 16,712 | 43,996 | ' |
Shares retired that were received by employees as payment for the exercise price of their stock options and taxes owed upon exercise of their stock options and release of their restricted awards (in shares) | 273,799 | 419,208 | 146,652 | ' |
Increase in shareowners' equity as a result of stock options exercised (in dollars) | 5.1 | 4.7 | 2.1 | ' |
Accumulated other comprehensive income (loss), currency translation adjustment (in dollars) | -16 | -0.3 | ' | ' |
Accumulated other comprehensive income (loss), pension liability adjustment (in dollars) | ($38.70) | ($56.80) | ' | ' |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) (Details) (USD $) | 12 Months Ended | |||||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | ||||
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | |||
Beginning balance | ($57,146,000) | ($49,300,000) | ($19,400,000) | |||
Pre-tax income/(loss) | -16,000,000 | 1,800,000 | -21,400,000 | |||
Income tax expense | 0 | 0 | 0 | |||
Other comprehensive income/(loss) before reclassifications, net of income taxes | -16,000,000 | 1,800,000 | -21,400,000 | |||
Pre-tax income | 30,200,000 | -15,900,000 | -14,200,000 | |||
Income tax expense | -12,100,000 | 6,200,000 | 5,500,000 | |||
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes | 18,100,000 | -9,700,000 | -8,700,000 | |||
Net current period other comprehensive income/(loss), net of income taxes | 2,092,000 | -7,882,000 | -30,125,000 | |||
Other comprehensive (income)/loss attributable to noncontrolling interest | 300,000 | 100,000 | 200,000 | |||
Ending balance | -54,729,000 | -57,146,000 | -49,300,000 | |||
Foreign Currency Translation Adjustments | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | |||
Beginning balance | -300,000 | -2,200,000 | 19,000,000 | |||
Pre-tax income/(loss) | -16,000,000 | 1,800,000 | -21,400,000 | |||
Income tax expense | 0 | 0 | 0 | |||
Other comprehensive income/(loss) before reclassifications, net of income taxes | -16,000,000 | 1,800,000 | -21,400,000 | |||
Pre-tax income | 0 | 0 | 0 | |||
Income tax expense | 0 | 0 | 0 | |||
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes | 0 | 0 | 0 | |||
Net current period other comprehensive income/(loss), net of income taxes | -16,000,000 | 1,800,000 | -21,400,000 | |||
Other comprehensive (income)/loss attributable to noncontrolling interest | 300,000 | 100,000 | 200,000 | |||
Ending balance | -16,000,000 | -300,000 | -2,200,000 | |||
Pension and Postretirement Plan Benefit Adjustments | ' | ' | ' | |||
Accumulated Other Comprehensive Income (Loss) | ' | ' | ' | |||
Beginning balance | -56,800,000 | -47,100,000 | -38,400,000 | |||
Pre-tax income/(loss) | 0 | 0 | 0 | |||
Income tax expense | 0 | 0 | 0 | |||
Other comprehensive income/(loss) before reclassifications, net of income taxes | 0 | 0 | 0 | |||
Pre-tax income | 30,200,000 | [1] | -15,900,000 | [1] | -14,200,000 | [1] |
Income tax expense | -12,100,000 | 6,200,000 | 5,500,000 | |||
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes | 18,100,000 | -9,700,000 | -8,700,000 | |||
Net current period other comprehensive income/(loss), net of income taxes | 18,100,000 | -9,700,000 | -8,700,000 | |||
Other comprehensive (income)/loss attributable to noncontrolling interest | 0 | 0 | 0 | |||
Ending balance | ($38,700,000) | ($56,800,000) | ($47,100,000) | |||
[1] | This accumulated other comprehensive income (loss) component is included in the computation of net periodic pension cost (refer to Note 9 for additional details) and is included in the "Selling, general, and administrative expenses" line of the consolidated statements of income. |
EARNINGS_PER_SHARE_Details
EARNINGS PER SHARE (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Share data in Millions, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income attributable to Franklin Electric Co., Inc. (in dollars) | $13,300,000 | $25,100,000 | $28,100,000 | $15,500,000 | $13,200,000 | $21,900,000 | $24,800,000 | $23,000,000 | $81,958,000 | $82,864,000 | $63,099,000 |
Less: Undistributed earnings allocable to participating securities (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 1,000,000 | 600,000 | 0 |
Less: Undistributed earnings allocated to redeemable noncontrolling interest (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | 200,000 | 0 | 200,000 |
Net income attributable to Franklin Electric Co., Inc. excluding undistributed earnings (in dollars) | ' | ' | ' | ' | ' | ' | ' | ' | $80,800,000 | $82,300,000 | $62,900,000 |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average common shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 47.5 | 46.9 | 46.4 |
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-participating employee and director incentive stock options and performance awards (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0.6 | 0.8 | 1 |
Adjusted weighted average common shares (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 48.1 | 47.7 | 47.4 |
Basic earnings per share (in dollars per share) | $0.27 | $0.52 | $0.59 | $0.32 | $0.28 | $0.47 | $0.53 | $0.49 | $1.70 | $1.76 | $1.36 |
Diluted earnings per share (in dollars per share) | $0.27 | $0.51 | $0.58 | $0.32 | $0.27 | $0.46 | $0.52 | $0.48 | $1.68 | $1.73 | $1.33 |
Stock Options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Anti-dilutive stock options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 0.1 | 0.1 | 0.6 |
SHAREBASED_COMPENSATION_Detail
SHARE-BASED COMPENSATION (Details) (USD $) | 12 Months Ended | |||||||||||||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Apr. 24, 2009 | Apr. 24, 2009 | Apr. 24, 2009 | 4-May-12 | 4-May-12 | 4-May-12 | |
Options | Options | Performance Shares | Awards | Employee Stock/Stock Unit Award | 2009 Stock Plan | 2009 Stock Plan | 2009 Stock Plan | 2012 Stock Plan | 2012 Stock Plan | 2012 Stock Plan | ||||
Options | Awards | Options | Employee Stock/Stock Unit Award | |||||||||||
Share-based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Authorized shares | ' | ' | ' | ' | ' | ' | ' | ' | 4,400,000 | 3,200,000 | 1,200,000 | 2,400,000 | 1,680,000 | 720,000 |
Allocated share-based compensation expense (in dollars) | $4,900,000 | $6,300,000 | $4,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options granted to vesting employees vesting per year (as a percent) | ' | ' | ' | 25.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair Value Assumptions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Risk-free interest rate (as a percent) | 1.03% | 1.01% | 2.49% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividend yield (as a percent) | 0.89% | 1.12% | 1.23% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average dividend yield (as a percent) | 0.89% | 1.12% | 1.07% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Volatility factor (as a percent) | 39.40% | 38.80% | 43.10% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted-average volatility (as a percent) | 39.40% | 38.80% | 43.20% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected term (in years) | 'P6Y | 'P6Y | 'P6Y3M18D | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeiture rate (as a percent) | 4.52% | 3.99% | 3.59% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock Option Plans Activity and Related Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding beginning of period, shares | 2,184,000 | 3,138,000 | 3,634,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding beginning of period, weighted-average exercise price (in dollars per share) | $16.69 | $14.83 | $13.98 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, shares | 176,000 | 250,000 | 226,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Granted, weighted-average exercise price (in dollars per share) | $32.53 | $24.10 | $21.72 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised, shares | -880,000 | -1,158,000 | -692,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Exercised, weighted-average exercise price (in dollars per share) | $15.98 | $13.29 | $12.43 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited, shares | -4,000 | -46,000 | -30,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited, weighted-average exercise price (in dollars per share) | $14.37 | $22.91 | $18.58 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding end of period, shares | 1,476,000 | 2,184,000 | 3,138,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding end of period, weighted-average exercise price (in dollars per share) | $19.01 | $16.69 | $14.83 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected to vest after applying forfeiture rate, shares | 1,457,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected to vest after applying forfeiture rate, weighted-average exercise price (in dollars per share) | $18.88 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and exercisable end of period, shares | 943,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and exercisable end of period, weighted-average exercise price (in dollars per share) | $15.46 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Summary of Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding end of period, weighted-average remaining contractual term (in years) | '5 years 9 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding end of period, aggregate intrinsic value (in dollars) | 39,121,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected to vest after applying forfeiture rate, weighted-average remaining contractual term (in years) | '5 years 8 months 15 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Expected to vest after applying forfeiture rate, aggregate intrinsic value (in dollars) | 38,787,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and exercisable end of period, weighted-average remaining contractual term (in years) | '4 years 4 months 27 days | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested and exercisable end of period, aggregate intrinsic value (in dollars) | 28,349,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average grant-date fair value of options (in dollars per share) | $11.47 | $8.19 | $8.71 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Intrinsic value of options exercised (in dollars) | 16,600,000 | 16,500,000 | 7,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Cash received from the exercise of options (in dollars) | 14,100,000 | 15,400,000 | 8,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of shares vested (in dollars) | 2,100,000 | 2,400,000 | 2,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Tax benefit (in dollars) | 6,500,000 | 6,500,000 | 2,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost related to nonvested share-based compensation (in dollars) | ' | ' | ' | 1,500,000 | ' | ' | 7,500,000 | ' | ' | ' | ' | ' | ' | ' |
Total unrecognized compensation cost, recogninzed over a weighted-average period (in years) | ' | ' | ' | '2 years 4 months 24 days | ' | ' | '2 years 6 months 14 days | ' | ' | ' | ' | ' | ' | ' |
Total share-based liabilities paid (in dollars) | $0 | $0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at beginning of period, shares | 458,000 | 344,000 | ' | 802,000 | 1,094,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at beginning of period, weighted-average grant date fair value (in dollars per share) | $20.90 | $17.24 | ' | $17.07 | $13.27 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awarded, shares | 165,000 | 208,000 | ' | 176,000 | 250,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Awarded, weighted-average grant date fair value (in dollars per share) | $32.90 | $24.90 | ' | $32.53 | $24.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested, shares | -66,000 | -76,000 | ' | -440,000 | -528,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Vested, weighted-average grant date fair value (in dollars per share) | $18.78 | $15.93 | ' | $13.31 | $12.67 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited, shares | -6,000 | -18,000 | ' | -4,000 | -14,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Forfeited, weighted-average grant date fair value (in dollars per share) | $20.05 | $18.48 | ' | ' | $22.91 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at end of period, shares | 551,000 | 458,000 | 344,000 | 534,000 | 802,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-vested at the end of period, weighted-average grant date fair value (in dollars per share) | $24.75 | $20.90 | $17.24 | $25.30 | $17.07 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based compensation arrangement by share-based payment award, terms of award | ' | ' | ' | ' | ' | '3 | ' | '4 | ' | ' | ' | ' | ' | ' |
SEGMENT_AND_GEOGRAPHIC_INFORMA2
SEGMENT AND GEOGRAPHIC INFORMATION (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales to external customers | $229,800,000 | $249,800,000 | $263,400,000 | $222,500,000 | $205,100,000 | $237,600,000 | $246,700,000 | $201,900,000 | $965,462,000 | $891,345,000 | $821,077,000 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 123,781,000 | 112,957,000 | 93,398,000 |
Total assets | 1,051,873,000 | ' | ' | ' | 976,379,000 | ' | ' | ' | 1,051,873,000 | 976,379,000 | ' |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 23,400,000 | 21,100,000 | 19,400,000 |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 8,000,000 | 7,200,000 | 5,900,000 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 67,200,000 | 42,100,000 | 21,100,000 |
Long-lived assets | 576,500,000 | ' | ' | ' | 545,000,000 | ' | ' | ' | 576,500,000 | 545,000,000 | ' |
Concentration risk, customer | ' | ' | ' | ' | ' | ' | ' | ' | '0 | '0 | '0 |
Concentration risk, percentage | ' | ' | ' | ' | ' | ' | ' | ' | 10.00% | ' | ' |
Water Systems | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 766,400,000 | 715,000,000 | 654,100,000 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 131,300,000 | 124,100,000 | 105,300,000 |
Total assets | 714,700,000 | ' | ' | ' | 692,000,000 | ' | ' | ' | 714,700,000 | 692,000,000 | ' |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 18,100,000 | 16,900,000 | 15,200,000 |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 6,000,000 | 5,700,000 | 4,200,000 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 31,000,000 | 25,200,000 | 13,800,000 |
Fueling Systems | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 199,100,000 | 176,300,000 | 167,000,000 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | 42,600,000 | 36,600,000 | 31,300,000 |
Total assets | 247,900,000 | ' | ' | ' | 252,000,000 | ' | ' | ' | 247,900,000 | 252,000,000 | ' |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | 1,800,000 | 1,800,000 |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 1,900,000 | 1,500,000 | 1,700,000 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 4,000,000 | 3,300,000 | 1,800,000 |
Other | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Operating income (loss) | ' | ' | ' | ' | ' | ' | ' | ' | -50,100,000 | -47,700,000 | -43,200,000 |
Total assets | 89,300,000 | ' | ' | ' | 32,400,000 | ' | ' | ' | 89,300,000 | 32,400,000 | ' |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | 3,400,000 | 2,400,000 | 2,400,000 |
Amortization | ' | ' | ' | ' | ' | ' | ' | ' | 100,000 | 0 | 0 |
Capital expenditures | ' | ' | ' | ' | ' | ' | ' | ' | 32,200,000 | 13,600,000 | 5,500,000 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 460,500,000 | 428,500,000 | 371,000,000 |
Long-lived assets | 377,300,000 | ' | ' | ' | 330,000,000 | ' | ' | ' | 377,300,000 | 330,000,000 | ' |
Foreign | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales to external customers | ' | ' | ' | ' | ' | ' | ' | ' | 505,000,000 | 462,800,000 | 450,100,000 |
Long-lived assets | $199,200,000 | ' | ' | ' | $215,000,000 | ' | ' | ' | $199,200,000 | $215,000,000 | ' |
CONTINGENCIES_AND_COMMITMENTS_1
CONTINGENCIES AND COMMITMENTS (Details) (USD $) | 12 Months Ended | 0 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Jan. 22, 2014 |
California Air Resources Board | ||||
Loss Contingencies | ' | ' | ' | ' |
Litigation settlement, amount | ' | ' | ' | $0.10 |
Commitments | ' | ' | ' | ' |
Rent expense related to operating leases | 11 | 9.5 | 8.8 | ' |
Commitments for the purchase of machinery and equipment and building expansions | 11.7 | ' | ' | ' |
Future Minimum Payments Due for Operating Leases | ' | ' | ' | ' |
2014 | 8.6 | ' | ' | ' |
2015 | 3.3 | ' | ' | ' |
2016 | 2.3 | ' | ' | ' |
2017 | 1.2 | ' | ' | ' |
2018 | 1.1 | ' | ' | ' |
2019 and thereafter | 1.4 | ' | ' | ' |
Changes in the Carrying Amount of the Warranty Accrual | ' | ' | ' | ' |
Beginning balance | 9.7 | 9.9 | ' | ' |
Accruals related to product warranties | 9.1 | 6.8 | ' | ' |
Additions related to acquisitions | 0 | 0.4 | ' | ' |
Reductions for payments made | -9.3 | -7.4 | ' | ' |
Ending balance | $9.50 | $9.70 | $9.90 | ' |
RESTRUCTURING_Details
RESTRUCTURING (Details) (USD $) | 12 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | $3,719,000 | $221,000 | $1,587,000 |
Restructuring reserves | 0 | 100,000 | ' |
Employee severance | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 1,100,000 | ' | ' |
Equipment relocation | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 100,000 | ' | ' |
Asset write-off | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 1,400,000 | ' | ' |
Other | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 1,100,000 | ' | ' |
Water Systems | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 3,200,000 | ' | ' |
Water Systems | Employee severance | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 600,000 | ' | ' |
Water Systems | Equipment relocation | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 100,000 | ' | ' |
Water Systems | Asset write-off | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 1,400,000 | ' | ' |
Water Systems | Other | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 1,100,000 | ' | ' |
Water Systems | Continued manufacturing realignments | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 700,000 | ' | ' |
Fueling Systems | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 500,000 | ' | ' |
Fueling Systems | Employee severance | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 500,000 | ' | ' |
Fueling Systems | Equipment relocation | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 0 | ' | ' |
Fueling Systems | Asset write-off | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 0 | ' | ' |
Fueling Systems | Other | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 0 | ' | ' |
Fueling Systems | Flex-ing Inc. | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 600,000 | ' | ' |
Other | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 0 | ' | ' |
Other | Employee severance | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 0 | ' | ' |
Other | Equipment relocation | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 0 | ' | ' |
Other | Asset write-off | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 0 | ' | ' |
Other | Other | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 0 | ' | ' |
Oklahoma City facility disposal | Asset write-off | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | 1,300,000 | ' | ' |
Corporate Headquarters relocation | Other | ' | ' | ' |
Restructuring Cost and Reserve | ' | ' | ' |
Restructuring (income)/expense | $1,100,000 | ' | ' |
SELECTED_QUARTERLY_FINANCIAL_D2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 30, 2013 | Dec. 29, 2012 | Sep. 29, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 |
Net sales | $229,800 | $249,800 | $263,400 | $222,500 | $205,100 | $237,600 | $246,700 | $201,900 | $965,462 | $891,345 | $821,077 |
Gross profit | 76,000 | 87,000 | 94,600 | 73,900 | 68,500 | 82,600 | 84,300 | 66,300 | 331,514 | 301,664 | 272,305 |
Net income | 13,400 | 25,300 | 28,400 | 15,600 | 13,300 | 22,000 | 25,200 | 23,200 | 82,698 | 83,738 | 63,723 |
Net income attributable to Franklin Electric Co., Inc. | $13,300 | $25,100 | $28,100 | $15,500 | $13,200 | $21,900 | $24,800 | $23,000 | $81,958 | $82,864 | $63,099 |
Basic earnings per share (in dollars per share) | $0.27 | $0.52 | $0.59 | $0.32 | $0.28 | $0.47 | $0.53 | $0.49 | $1.70 | $1.76 | $1.36 |
Diluted earnings per share (in dollars per share) | $0.27 | $0.51 | $0.58 | $0.32 | $0.27 | $0.46 | $0.52 | $0.48 | $1.68 | $1.73 | $1.33 |
Schedule_II_Valuation_and_Qual1
Schedule II - Valuation and Qualifying Accounts (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | |||
Allowance for Doubtful Accounts | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves | ' | ' | ' | |||
Balance at beginning of period | $3.20 | $3 | $2.30 | |||
Additions charged to costs and expenses | -0.1 | 0.4 | 0.8 | |||
Deductions | 0.1 | [1] | 0.2 | [1] | 0.1 | [1] |
Other | 0 | [2] | 0 | [2] | 0 | [2] |
Balance at end of period | 3 | 3.2 | 3 | |||
Allowance for Deferred Taxes | ' | ' | ' | |||
Movement in Valuation Allowances and Reserves | ' | ' | ' | |||
Balance at beginning of period | 4.4 | 3.6 | 3.4 | |||
Additions charged to costs and expenses | -0.9 | 0.8 | 0.2 | |||
Deductions | 0 | [1] | 0 | [1] | 0 | [1] |
Other | 0 | [2] | 0 | [2] | 0 | [2] |
Balance at end of period | $3.50 | $4.40 | $3.60 | |||
[1] | Charges for which allowances were created. | |||||
[2] | Primarily related to acquisitions |