Franklin Electric (FELE) 10-Q 4 Aug 15 2015 Q2 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	6 Months Ended
	Jul. 04, 2015	Jul. 27, 2015
Document and Entity Information [Abstract]
Entity Registrant Name	FRANKLIN ELECTRIC CO INC
Entity Central Index Key	38,725
Current Fiscal Year End Date	--01-02
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jul. 4, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		47,603,899

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Statement
Net sales	$ 247,427	$ 284,466	$ 473,155	$ 515,887
Cost of sales	167,219	185,072	321,457	338,382
Gross profit	80,208	99,394	151,698	177,505
Selling, general, and administrative expenses	56,278	59,971	111,438	111,986
Restructuring expense	758	295	1,221	431
Operating income	23,172	39,128	39,039	65,088
Interest expense	(2,405)	(2,510)	(5,113)	(5,294)
Other income, net	1,390	871	4,409	1,196
Foreign exchange income/(expense)	(359)	328	57	(92)
Income before income taxes	21,798	37,817	38,392	60,898
Income tax expense	5,360	10,359	1,978	16,019
Net income	16,438	27,458	36,414	44,879
Less: Net income attributable to noncontrolling interests	(274)	(384)	(455)	(848)
Net income attributable to Franklin Electric Co., Inc.	$ 16,164	$ 27,074	$ 35,959	$ 44,031
Income per share:
Basic (in dollars per share)	$ 0.33	$ 0.56	$ 0.74	$ 0.91
Diluted (in dollars per share)	0.33	0.55	0.74	0.90
Dividends per common share	$ 0.0975	$ 0.0900	$ 0.1875	$ 0.1675

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Net income	$ 16,438	$ 27,458	$ 36,414	$ 44,879
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	(313)	2,501	(28,195)	4,679
Employee benefit plan activity	988	745	1,975	1,490
Other comprehensive income/(loss)	675	3,246	(26,220)	6,169
Income tax related to items of other comprehensive income	(334)	(257)	(667)	(514)
Other comprehensive income/(loss), net of tax	341	2,989	(26,887)	5,655
Comprehensive income	16,779	30,447	9,527	50,534
Less: Comprehensive income attributable to noncontrolling interest	224	520	54	846
Comprehensive income attributable to Franklin Electric Co., Inc.	$ 16,555	$ 29,927	$ 9,473	$ 49,688

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 63,034	$ 59,141
Receivables, less allowances of $3,755 and $3,212, respectively	154,133	143,787
Inventories:
Raw material	94,942	88,961
Work-in-process	18,505	19,148
Finished goods	106,481	112,419
Total inventories	219,928	220,528
Deferred income taxes	15,296	8,364
Other current assets	37,068	37,719
Total current assets	489,459	469,539
Property, plant, and equipment, at cost:
Land and buildings	122,626	127,782
Machinery and equipment	233,939	234,617
Furniture and fixtures	39,693	39,001
Other	18,731	20,539
Property, plant, and equipment, gross	414,989	421,939
Less: Allowance for depreciation	(217,816)	(212,153)
Property, plant, and equipment, net	197,173	209,786
Asset held for sale	2,056	2,405
Deferred income tax	2,335	3,899
Intangible assets, net	151,986	160,314
Goodwill	204,781	208,828
Other assets	22,075	21,116
Total assets	1,069,865	1,075,887
Current liabilities:
Accounts payable	58,629	70,806
Deferred tax liability	637	637
Accrued expenses and other current liabilities	62,476	94,782
Income taxes	1,376	788
Current maturities of long-term debt and short-term borrowings	37,509	34,092
Total current liabilities	160,627	201,105
Long-term debt	187,841	143,695
Deferred income taxes	44,146	45,568
Employee benefit plans	52,088	58,709
Other long-term liabilities	20,851	21,407
Commitments and contingencies (see Note 16)	0	0
Redeemable noncontrolling interest	6,401	6,420
Shareowners' equity:
Common stock (65,000 shares authorized, $.10 par value) outstanding (47,634 and 47,594, respectively)	4,763	4,759
Additional capital	212,807	207,446
Retained earnings	513,190	492,548
Accumulated other comprehensive loss	(134,399)	(107,913)
Total shareowners' equity	596,361	596,840
Noncontrolling interest	1,550	2,143
Total equity	597,911	598,983
Total liabilities and equity	$ 1,069,865	$ 1,075,887

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Current assets:
Allowance for doubtful accounts (in dollars)	$ 3,755	$ 3,212
Shareowners' equity:
Common shares, authorized (in shares)	65,000	65,000
Common shares, par value (in dollars per share)	$ 0.10	$ 0.10
Common shares, outstanding	47,634	47,594

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Cash flows from operating activities:
Net income	$ 36,414	$ 44,879
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	18,044	18,173
Share-based compensation	3,457	5,076
Deferred income taxes	(6,111)	(790)
Loss on disposals of plant and equipment	202	40
Realized gain on share purchase liability	2,723	0
Foreign exchange expense/(income)	(57)	92
Excess tax from share-based payment arrangements	(811)	(1,678)
Changes in assets and liabilities, net of acquisitions:
Receivables	(16,655)	(53,359)
Inventory	(6,355)	(41,858)
Accounts payable and accrued expenses	(15,110)	8,307
Income taxes	3,874	1,404
Employee benefit plans	(3,137)	(3,595)
Other, net	(4,000)	(2,934)
Net cash flows from operating activities	7,032	(26,243)
Cash flows from investing activities:
Additions to property, plant, and equipment	(9,758)	(17,947)
Proceeds from sale of property, plant, and equipment	402	1,623
Cash paid for acquisitions, net of cash acquired	(3,761)	(29,813)
Additional consideration for prior acquisition	(267)	0
Cash paid for minority equity investments	0	(6,716)
Other, net	174	(2,275)
Net cash flows from investing activities	(13,210)	(55,128)
Cash flows from financing activities:
Proceeds from issuance of debt	181,967	68,526
Repayment of debt	(134,190)	(18,584)
Proceeds from issuance of common stock	1,240	1,184
Excess tax from share-based payment arrangements	811	1,678
Purchases of common stock	(6,218)	(6,475)
Dividends paid	(9,783)	(8,817)
Purchase of redeemable noncontrolling shares	0	(2,875)
Share purchase liability payment	20,200	0
Net cash flows from financing activities	13,627	34,637
Effect of exchange rate changes on cash	(3,556)	(139)
Net change in cash and equivalents	3,893	(46,873)
Cash and equivalents at beginning of period	59,141	134,553
Cash and equivalents at end of period	63,034	87,680
Cash paid for income taxes, net of refunds	8,074	15,944
Cash paid for interest	5,401	5,279
Additions to property, plant, and equipment, not yet paid	569	372
Bombas Leao S.A.
Cash flows from financing activities:
Payable to seller of Bombas Leao	$ 24	$ 267

CONDENSED CONSOLIDATED FINANCIA

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	6 Months Ended
	Jul. 04, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The accompanying condensed consolidated balance sheet as of January 3, 2015 , which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of July 4, 2015 , and for the second quarters and six months ended July 4, 2015 and June 28, 2014 , have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Certain information and note disclosures normally included in annual financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to those rules and regulations. In the opinion of management, all accounting entries and adjustments (including normal, recurring adjustments) considered necessary for a fair presentation of the financial position and the results of operations for the interim period have been made. Operating results for the second quarter and six months ended July 4, 2015 , are not necessarily indicative of the results that may be expected for the fiscal year ending January 2, 2016 . For further information, including a description of the Company’s critical accounting policies, refer to the consolidated financial statements and notes thereto included in Franklin Electric Co., Inc.'s Annual Report on Form 10-K for the year ended January 3, 2015 .

ACCOUNTING PRONOUNCEMENTS

ACCOUNTING PRONOUNCEMENTS	6 Months Ended
	Jul. 04, 2015
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
ACCOUNTING PRONOUCEMENTS	ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In February 2015, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2015-02, Consolidation (Topic 810), Amendments to the Consolidation Analysis . The amendments affect both the variable interest entity and voting interest entity consolidation models. The need to assess an entity under a different consolidation model may change previous consolidation conclusions. The standard is effective for both interim and annual reporting periods beginning after December 15, 2015 and early adoption is permitted. The Company has adopted this standard with no impact on the Company's consolidated financial position, results of operations, or cash flows. Accounting Standards Issued But Not Yet Adopted In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (Topic 330). The ASU will change the measurement principle for inventory from the "lower of cost or market" to the "lower of cost and net realizable value." Net realizable value is defined as the “estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation.” ASU 2015-11 eliminates the guidance that entities consider replacement cost or net realizable value less an approximately normal profit margin in the subsequent measurement of inventory when cost is determined on a first-in, first-out or average cost basis. The ASU will be effective for interim and annual periods beginning after December 15, 2016 and early adoption is permitted. The Company is still in the process of analyzing the effect of this new standard to determine the impact on the Company's consolidated financial position, results of operations, and related disclosures. In April 2015, the FASB issued ASU 2015-05, Intangibles-Goodwill and Other Internal-Use Software (Subtopic 350-40): Customer's Accounting for Fees Paid in a Cloud Computing Agreement. The ASU will require an entity's management to assess, for each annual and interim period, whether a cloud computing arrangement includes a software license. All software licenses within the scope of Subtopic 350-40 will be accounted for consistent with other licenses of intangible assets. If the arrangement does not include a software license, the arrangement should be accounted for as a service contract. The ASU will be effective for interim and annual periods beginning after December 15, 2015 and early adoption is permitted. The Company is still in the process of analyzing the effect of this new standard to determine the impact on the Company's consolidated financial position, results of operations, and related disclosures. In April 2015, the FASB issued ASU 2015-04, Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer's Defined Benefit Obligation and Plan Assets, which allows an entity a practical expedient to measure defined benefit plan assets and obligations using the month end date that is closest to the entity's fiscal year end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if the entity has more than one plan. The ASU will be effective on a prospective basis for interim and annual periods beginning after December 15, 2015 and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the Company's consolidated financial position, results of operations, cash flows, and related disclosures. In April 2015, the FASB issued ASU 2015-03, Simplifying the Presentation of Debt Issuance Costs, which requires debt issuance costs to be presented in the balance sheet as a direct deduction from the associated debt liability. The standard will not change the amortization of debt issuance costs, which will continue to follow the existing accounting guidance. The ASU will be effective for interim and annual periods beginning after December 15, 2015 and early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on the Company's consolidated financial position, results of operations, cash flows, and related disclosures. In May 2014, the FASB issued ASU 2014-09 Revenue from Contracts with Customers . ASU 2014-09 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance. The ASU was originally effective for annual reporting periods beginning after December 15, 2016 and early adoption was not permitted. In July 2015, the FASB approved a one-year deferral on the effective date of this ASU, which will now be effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt the new ASU. The Company is still in the process of analyzing the effect of this new standard to determine the impact on the Company's consolidated financial position, results of operations, cash flows, and related disclosures.

ACQUISITIONS

ACQUISITIONS	6 Months Ended
	Jul. 04, 2015
Business Combinations [Abstract]
ACQUISITIONS	ACQUISITIONS In 2012, the Company acquired a controlling interest in Pioneer Pump Holdings, Inc. ("PPH"). Pursuant to the terms of the 2012 stock purchase agreement, the remaining 29.5 percent noncontrolling interest was recorded at $22.9 million and accounted for as a share purchase liability. During the first quarter of 2015, the Company purchased the remaining 29.5 percent of outstanding shares of PPH for $20.2 million , increasing the Company's ownership in PPH to 100 percent . The purchase was considered the settlement of a financing obligation, and the resulting $2.7 million gain was recorded in the Company's condensed consolidated statements of income in the "Other income, net" line during the first quarter of 2015. In an agreement dated June 6, 2014, the Company acquired all of the outstanding shares of Bombas Leao S.A. ("Bombas Leao"). Goodwill increased by $0.3 million and current assets decreased by $0.3 million in the second quarter ended July 4, 2015 , due to working capital adjustments. In addition, the Company paid an additional $0.3 million to the sellers of Bombas Leao during the second quarter ended July 4, 2015 to satisfy amounts previously accrued per the original purchase agreement. The final purchase price assigned to the major identifiable assets and liabilities for the Bombas Leao acquisition is as follows: (In millions) Assets: Cash acquired $ 1.1 Current assets 13.4 Property, plant, and equipment 6.5 Intangible assets 23.5 Goodwill 3.4 Other assets 3.1 Total assets 51.0 Liabilities (20.0 ) Total consideration paid $ 31.0 The fair values of the identifiable assets, property, plant, and equipment, and liabilities are final as of the second quarter ended July 4, 2015. The Company utilized management estimates and consultation with an independent third-party valuation firm to assist in the valuation. Transaction costs for all acquisition related activity were expensed as incurred under the guidance of FASB ASC Topic 805, Business Combinations. Transaction costs included in selling, general, and administrative expenses in the Company’s condensed consolidated statements of income were $0.2 million and $0.9 million for the six months ended July 4, 2015 and June 28, 2014 , respectively.

REDEEMABLE NONCONTROLLING INTER

REDEEMABLE NONCONTROLLING INTERESTS	6 Months Ended
	Jul. 04, 2015
Noncontrolling Interest [Abstract]
REDEEMABLE NONCONTROLLING INTERESTS	REDEEMABLE NONCONTROLLING INTERESTS On May 2, 2011 , the Company completed the acquisition of 80 percent of Impo. In 2014 , the Company redeemed 10 percent of the noncontrolling interest of Impo, increasing the Company's ownership to 90 percent . The noncontrolling interest holders have the option, which is embedded in the noncontrolling interest, to require the Company to redeem their ownership interests. The combination of a noncontrolling interest and a redemption feature resulted in a redeemable noncontrolling interest. The Company uses the interest method to accrete changes in the anticipated redemption value of the Impo redeemable noncontrolling interest over an amortization period t o the earliest projected redemption date. Accretion adjustments were $0.1 million and $0.2 million for the second quarter and six months ended July 4, 2015 , respectively, and $0.2 million for the second quarter and six months ended June 28, 2014 . These adjustments were reflected in the computation of earnings per share using the two-class method.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	6 Months Ended
	Jul. 04, 2015
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 July 4, 2015 and January 3, 2015 , the assets measured at fair value on a recurring basis were as set forth in the table below. (In millions) July 4, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 1.6 $ 1.6 $ — $ — January 3, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 5.4 $ 5.4 $ — $ — The Company's Level 1 assets consist of cash equivalents which are generally comprised of foreign bank guaranteed certificates of deposit. Total debt, including current maturities, have carrying amounts of $225.2 million and $177.2 million and estimated fair values of $232.2 million and $191.1 million as of July 4, 2015 and January 3, 2015 , respectively. The fair value assumed short-term 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 debt, the Company uses estimates based on rates currently available to the Company for debt with similar terms and remaining maturities. Accordingly, the fair value of debt is classified as Level 2 within the valuation hierarchy. As of July 4, 2015 , the Company had $2.1 million of assets held for sale recorded at carrying value in the Water Systems segment relating to a facility in Brazil.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	6 Months Ended
	Jul. 04, 2015
Derivative Instruments and Hedging Activities Disclosure [Abstract]
FINANCIAL INSTRUMENTS	FINANCIAL INSTRUMENTS The Company’s deferred compensation stock program is subject to variable plan accounting and, accordingly, is adjusted for changes in the Company’s stock price at the end of each reporting period. During February 2014, the Company entered into a share swap transaction agreement ("the swap") to mitigate the Company’s exposure to these fluctuations in the Company's stock price. The Company renewed the swap agreement in February 2015. The swap was not designated as a hedge for accounting purposes and is cancellable with 30 days written notice by either party. As of July 4, 2015 , the swap has a notional value based on 175,000 shares. For the second quarter and six months ended July 4, 2015 , the swap resulted in losses of $0.9 million and $1.0 million , respectively. For the second quarter and six months ended June 28, 2014 , the swap resulted in losses of $0.1 million and $0.3 million , respectively. Losses resulting from the swap were primarily offset by gains on the fair value of the deferred compensation stock liability. All gains or losses and expenses related to the swap are recorded in the Company's condensed consolidated statements of income within the “Selling, general, and administrative expenses” line.

OTHER ASSETS

OTHER ASSETS	6 Months Ended
	Jul. 04, 2015
Equity Method Investments and Joint Ventures [Abstract]
OTHER ASSETS	OTHER ASSETS The Company has equity interests in various companies for various strategic purposes. The investments are accounted for under the equity method and are included in “Other assets” on the Company’s condensed consolidated balance sheet. The carrying amount of the investments is adjusted for the Company's proportionate share of earnings, losses, and dividends. The investments are not considered material to the Company’s financial position, neither individually nor in the aggregate. The Company’s proportionate share of earnings from its equity interests, included in the "Other income, net" line of the Company's condensed consolidated statements of income, were immaterial for the second quarter and six months ended July 4, 2015 .

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	6 Months Ended
	Jul. 04, 2015
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) July 4, 2015 January 3, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangibles: Patents $ 7.5 $ (6.1 ) $ 7.6 $ (6.1 ) Supply agreements 4.4 (4.4 ) 4.4 (4.4 ) Technology 7.5 (4.6 ) 7.5 (4.3 ) Customer relationships 137.5 (39.5 ) 140.2 (36.5 ) Software 2.6 (1.7 ) 2.9 (1.7 ) Other 1.0 (1.0 ) 1.2 (1.2 ) Total $ 160.5 $ (57.3 ) $ 163.8 $ (54.2 ) Unamortized intangibles: Trade names 48.8 — 50.7 — Total intangibles $ 209.3 $ (57.3 ) $ 214.5 $ (54.2 ) Changes in carrying values for intangible assets are primarily attributed to the impact of foreign exchange for the six months ended July 4, 2015 . Amortization expense related to intangible assets for the second quarters ended July 4, 2015 and June 28, 2014 was $2.2 million and $2.1 million , respectively, and $4.4 million and $4.1 million for the six months ended July 4, 2015 and June 28, 2014 , respectively. Amortization expense for each of the five succeeding years is projected as follows: (In millions) 2015 2016 2017 2018 2019 $ 8.7 $ 8.7 $ 8.6 $ 8.6 $ 8.5 The change in the carrying amount of goodwill by reporting segment for the six months ended July 4, 2015 , is as follows: (In millions) Water Systems Fueling Systems Consolidated Balance as of January 3, 2015 $ 145.3 $ 63.5 $ 208.8 Adjustments to prior year acquisitions 0.3 — 0.3 Foreign currency translation (4.2 ) (0.1 ) (4.3 ) Balance as of July 4, 2015 $ 141.4 $ 63.4 $ 204.8

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	6 Months Ended
	Jul. 04, 2015
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS Defined Benefit Plans - As of July 4, 2015 , the Company maintained two domestic pension plans and three German pension plans. The Company used a January 3, 2015 measurement date for these plans. One of the Company's domestic pension plans covers two management employees, while the other domestic plan covers all other eligible employees. The two domestic and three German plans collectively comprise the 'Pension Benefits' disclosure caption. Other Benefits - The Company's other postretirement benefit plan provides health and life insurance to domestic employees hired prior to 1992. The following table sets forth the aggregated net periodic benefit cost for all pension plans for the second quarters and six months ended July 4, 2015 and June 28, 2014 , respectively: (In millions) Pension Benefits Second Quarter Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost $ 0.3 $ 0.4 $ 0.6 $ 0.7 Interest cost 1.8 2.1 3.6 4.1 Expected return on assets (2.5 ) (2.6 ) (5.0 ) (5.2 ) Amortization of prior service cost — — — — Amortization of loss 0.8 0.6 1.6 1.2 Net periodic benefit cost $ 0.4 $ 0.5 $ 0.8 $ 0.8 Settlement cost 0.3 0.2 0.6 0.4 Total net periodic benefit cost $ 0.7 $ 0.7 $ 1.4 $ 1.2 In the six months ended July 4, 2015 , the Company made contributions of $1.3 million to the funded plans. The amount of contributions to be made to the plans during the calendar year 2015 will be finalized by September 15, 2015 , based upon the plan's year-end valuation at January 3, 2015 , and the funding level required for the plan year ended January 3, 2015 . The following table sets forth the aggregated net periodic benefit cost for the postretirement benefit plan for the second quarters and six months ended July 4, 2015 and June 28, 2014 , respectively: Other Benefits Second Quarter Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost $ — $ 0.1 $ — $ 0.1 Interest cost 0.1 0.1 0.2 0.2 Expected return on assets — — — — Amortization of prior service cost 0.1 0.1 0.2 0.2 Amortization of loss 0.1 — 0.2 — Net periodic benefit cost $ 0.3 $ 0.3 $ 0.6 $ 0.5 Settlement cost — — — — Total net periodic benefit cost $ 0.3 $ 0.3 $ 0.6 $ 0.5

INCOME TAXES

INCOME TAXES	6 Months Ended
	Jul. 04, 2015
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The effective tax rate continues to be lower than the U.S. statutory rate of 35.0 percent 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.

DEBT

DEBT	6 Months Ended
	Jul. 04, 2015
Debt Disclosure [Abstract]
DEBT	DEBT Debt consisted of the following: (In millions) July 4, 2015 January 3, 2015 Prudential Agreement - 5.79 percent $ 120.0 $ 150.0 Tax increment financing debt 23.2 23.7 New York Life 75.0 — Revolver 4.0 — Capital leases 0.1 0.6 Foreign subsidiary debt 3.0 3.5 $ 225.3 177.8 Less current maturities (37.5 ) (34.1 ) Long-term debt $ 187.8 $ 143.7 On May 5, 2015, the Company executed the following amendments: Amendment No. 6 to the Second Amended and Restated Note Purchase and Private Shelf Agreement with Prudential Investment Management, Inc.; Amendment No. 3 to the Credit Agreement; and Amendment No. 1 to the Bond Purchase and Loan Agreement. Each of those amendments provides for debt repayment guarantees from certain Company subsidiaries and waived certain non-financial covenants related to subsidiary guarantees. On May 27, 2015, the Company entered into an uncommitted and unsecured private shelf agreement with NYL Investors LLC, an affiliate of New York Life (the "New York Life Agreement") for $150.0 million maximum aggregate principal borrowing capacity and the Company authorized the issuance of $75.0 million of floating rate senior notes due May 27, 2025. These series notes have a floating interest rate with interest-only payments due on a monthly basis. The New York Life Agreement contains customary affirmative and negative covenants and a cross default provision in the event the Company defaults on any obligation exceeding $10.0 million . As of July 4, 2015, there was $75.0 million remaining borrowing capacity under the New York Life Agreement. On May 28, 2015, the Company entered into a Third Amended and Restated Note Purchase and Private Shelf Agreement with Prudential Investment Management, Inc. (the "Prudential Agreement") to increase the total borrowing capacity from $200.0 million to $250.0 million . As of July 4, 2015, $120.0 million was outstanding 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. As of July 4, 2015, the Company had $100.0 million borrowing capacity under the Prudential Agreement. The following debt payments are expected to be paid in accordance with the following schedule: (In millions) Total Year 1 Year 2 Year 3 Year 4 Year 5 More Than 5 Years Debt $ 225.2 $ 37.4 $ 31.5 $ 31.0 $ 31.0 $ 1.1 $ 93.2 Capital leases 0.1 0.1 — — — — — $ 225.3 $ 37.5 $ 31.5 $ 31.0 $ 31.0 $ 1.1 $ 93.2

EARNINGS PER SHARE

EARNINGS PER SHARE	6 Months Ended
	Jul. 04, 2015
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company's participating securities consist of share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Basic earnings per common share excludes dilution and is calculated by dividing net earnings 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 allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table sets forth the computation of basic and diluted earnings per share: Second Quarter Ended Six Months Ended (In millions, except per share amounts) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 16.2 $ 27.1 $ 36.0 $ 44.0 Less: Undistributed earnings allocated to participating securities 0.1 0.3 0.3 0.5 Less: Undistributed earnings allocated to redeemable noncontrolling interest 0.1 0.2 0.2 0.2 $ 16.0 $ 26.6 $ 35.5 $ 43.3 Denominator: Basic Weighted average common shares 47.6 47.6 47.6 47.7 Diluted Effect of dilutive securities: Non-participating employee incentive stock options and performance awards 0.5 0.6 0.5 0.6 Adjusted weighted average common shares 48.1 48.2 48.1 48.3 Basic earnings per share $ 0.33 $ 0.56 $ 0.74 $ 0.91 Diluted earnings per share $ 0.33 $ 0.55 $ 0.74 $ 0.90 Anti-dilutive stock options 0.3 0.1 0.3 0.1

EQUITY ROLL FORWARD

EQUITY ROLL FORWARD	6 Months Ended
	Jul. 04, 2015
Equity [Abstract]
EQUITY ROLL FORWARD	EQUITY ROLL FORWARD The schedule below sets forth equity changes in the six months ended July 4, 2015 : (In thousands) Common Stock Additional Paid in Capital Retained Earnings Minimum Pension Liability Cumulative Translation Adjustment Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest Balance as of January 3, 2015 $ 4,759 $ 207,446 $ 492,548 $ (56,124 ) $ (51,789 ) $ 2,143 $ 598,983 $ 6,420 Net income 35,959 348 36,307 107 Adjustment to Impo redemption value (157 ) (157 ) 157 Dividends on common stock (8,960 ) (8,960 ) Common stock issued 7 1,233 1,240 Common stock repurchased (18 ) (6,200 ) (6,218 ) Share-based compensation 15 3,442 3,457 Tax benefit of stock options exercised 686 686 Noncontrolling dividend (823 ) (823 ) Currency translation adjustment (27,794 ) (118 ) (27,912 ) (283 ) Pension liability, net of tax 1,308 1,308 Balance as of July 4, 2015 $ 4,763 $ 212,807 $ 513,190 $ (54,816 ) $ (79,583 ) $ 1,550 $ 597,911 $ 6,401

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	6 Months Ended
	Jul. 04, 2015
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Changes in accumulated other comprehensive income/(loss) by component for the six months ended July 4, 2015 and June 28, 2014 , are summarized below: (In millions) For the six months ended July 4, 2015: Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments Total Balance as of January 3, 2015 $ (51.8 ) $ (56.1 ) $ (107.9 ) Other comprehensive income/(loss) before reclassifications: Pre-tax income/(loss) (28.2 ) — (28.2 ) Income tax expense — — — Other comprehensive income/(loss) before reclassifications, net of income taxes (28.2 ) — (28.2 ) Amounts reclassified from accumulated other comprehensive income/(loss): Pre-tax income — 2.0 (1) 2.0 Income tax expense — (0.7 ) (0.7 ) Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes — 1.3 1.3 Net current period other comprehensive income/(loss), net of income taxes (28.2 ) 1.3 (26.9 ) Other comprehensive income/(loss) attributable to noncontrolling interest (0.4 ) — (0.4 ) Balance as of July 4, 2015 $ (79.6 ) $ (54.8 ) $ (134.4 ) For the six months ended June 28, 2014: Balance as of December 28, 2013 $ (16.0 ) $ (38.7 ) $ (54.7 ) Other comprehensive income/(loss) before reclassifications: Pre-tax income/(loss) 4.7 — 4.7 Income tax expense — — — Other comprehensive income/(loss) before reclassifications, net of income taxes 4.7 — 4.7 Amounts reclassified from accumulated other comprehensive income/(loss): Pre-tax income — 1.5 (1) 1.5 Income tax expense — (0.5 ) (0.5 ) Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes — 1.0 1.0 Net current period other comprehensive income/(loss), net of income taxes 4.7 1.0 5.7 Other comprehensive income/(loss) attributable to noncontrolling interest 0.1 — 0.1 Balance as of June 28, 2014 $ (11.4 ) $ (37.7 ) $ (49.1 ) (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 Company's condensed consolidated statements of income.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jul. 04, 2015
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION Financial information by reportable business segment is included in the following summary: Second Quarter Ended Six Months Ended (In millions) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net sales to external customers Water Systems $ 191.6 $ 226.7 $ 370.9 $ 411.3 Fueling Systems 55.8 57.8 102.3 104.6 Other — — $ — $ — Consolidated $ 247.4 $ 284.5 $ 473.2 $ 515.9 Second Quarter Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Operating income (loss) Water Systems $ 24.3 $ 41.7 $ 43.7 $ 71.0 Fueling Systems 12.4 13.5 22.0 22.5 Other (13.5 ) (16.1 ) (26.7 ) (28.4 ) Consolidated $ 23.2 $ 39.1 $ 39.0 $ 65.1 July 4, 2015 January 3, 2015 Total assets Water Systems $ 754.0 $ 757.5 Fueling Systems 250.2 252.7 Other 65.7 65.7 Consolidated $ 1,069.9 $ 1,075.9 Property, plant, and equipment is the major asset group in "Other" of total assets as of July 4, 2015 and January 3, 2015 .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	6 Months Ended
	Jul. 04, 2015
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	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. An Amended Judgment awarding the Company $0.1 million in costs was entered by the Court on January 22, 2014. On July 16, 2014, CARB appealed and filed its brief in support of the appeal. The Company filed its response brief on December 23, 2014 and CARB filed its reply brief on February 2, 2015. On July 29, 2015, the Court of Appeals issued a Calendar Notice for oral argument scheduled for August 25, 2015. Both the Company and CARB have ten days to either confirm or waive the oral argument. Neither of these suits has 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. At July 4, 2015 , the Company had $11.2 million of commitments primarily for capital expenditures and purchase of raw materials to be used in production. The Company provides warranties on most of its products. The warranty terms vary but are generally 2 years from date of manufacture or 1 year from date of installation. In 2007, the Company began offering an extended warranty program to certain Water Systems customers which provides warranty coverage up to 5 years from 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. The Company actively studies trends of warranty claims and takes actions to improve product quality and minimize warranty claims. The Company believes that the warranty reserve is appropriate; however, actual claims incurred could differ from the original estimates, requiring adjustments to the reserve. The changes in the carrying amount of the warranty accrual, as recorded in the "Accrued expenses and other current liabilities" line of the Company's condensed consolidated balance sheet for the six months ended July 4, 2015 , are as follows: (In millions) Balance as of January 3, 2015 $ 9.4 Accruals related to product warranties 3.7 Reductions for payments made (3.8 ) Balance as of July 4, 2015 $ 9.3

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jul. 04, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION The Company maintains the Franklin Electric Co., Inc. 2012 Stock Plan (the "2012 Stock Plan"), which is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, and stock unit awards to key employees and non-employee directors. The 2012 Stock Plan authorized 2,400,000 shares for issuance as follows: 2012 Stock Plan Authorized Shares Stock Options 1,680,000 Stock/Stock Unit Awards 720,000 The Company also maintains the Amended and Restated Franklin Electric Co., Inc. Stock Plan (the "2009 Stock Plan") which, as amended in 2009, provided for discretionary grants of stock options and stock awards. The 2009 Stock Plan authorized 4,400,000 shares for issuance as follows: 2009 Stock Plan Authorized Shares Stock Options 3,200,000 Stock Awards 1,200,000 All options in the 2009 Stock Plan have been awarded. The Company currently issues new shares from its common stock balance to satisfy option exercises and the settlement of stock awards and stock unit awards made under the 2009 Stock Plan and/or the 2012 Stock Plan. Stock Options: The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model with a single approach and amortized using a straight-line attribution method over the option’s vesting period. The assumptions used for the Black-Scholes model to determine the fair value of options granted during the six months ended July 4, 2015 and June 28, 2014 , are as follows: July 4, 2015 June 28, 2014 Risk-free interest rate 1.59 % 1.68 % Dividend yield 0.95 % 0.70 % Volatility factor 0.379 0.387 Expected term 5.5 years 5.6 years Forfeiture rate 3.67 % 3.81 % There were no stock options granted during the second quarter ended July 4, 2015 . There were 22,050 stock options granted during the second quarter ended June 28, 2014 . A summary of the Company’s outstanding stock option activity and related information for the six months ended July 4, 2015 and June 28, 2014 is as follows: (Shares in thousands) July 4, 2015 June 28, 2014 Stock Options Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at beginning of period 1,397 $ 21.17 1,476 $ 19.01 Granted 185 36.67 115 42.24 Exercised (70 ) 17.63 (63 ) 18.89 Forfeited (2 ) 34.93 (3 ) 26.95 Expired — — (16 ) 16.34 Outstanding at end of period 1,510 $ 23.22 1,509 $ 20.80 Expected to vest after applying forfeiture rate 1,488 $ 23.02 1,491 $ 20.63 Vested and exercisable at end of period 1,144 $ 19.13 1,194 $ 17.62 A summary of the weighted-average remaining contractual term and aggregate intrinsic value as of July 4, 2015 is as follows: Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (000's) Outstanding at end of period 5.19 years $ 15,597 Expected to vest after applying forfeiture rate 5.13 years $ 15,588 Vested and exercisable at end of period 4.03 years $ 15,291 The total intrinsic value of options exercised during the six months ended July 4, 2015 and June 28, 2014 , was $1.3 million and $1.4 million , respectively. As of July 4, 2015 , there was $2.2 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements related to stock options granted under the 2012 Stock Plan and the 2009 Stock Plan. That cost is expected to be recognized over a weighted-average period of 2.87 years . Stock/Stock Unit Awards: A summary of the Company’s restricted stock/stock unit award activity and related information for the six months ended July 4, 2015 and June 28, 2014 is as follows: (Shares in thousands) July 4, 2015 June 28, 2014 Stock/Stock Unit Awards Shares Weighted-Average Grant- Date Fair Value Weighted-Average Grant- Non-vested at beginning of period 554 $ 32.72 551 $ 24.75 Awarded 132 36.37 193 42.81 Vested (167 ) 30.52 (124 ) 16.75 Forfeited (9 ) 32.31 (59 ) 28.04 Non-vested at end of period 510 $ 34.40 $ 561 $ 32.38 As of July 4, 2015 , there was $10.1 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements related to stock/stock unit awards granted under the 2012 Stock Plan and the 2009 Stock Plan. That cost is expected to be recognized over a weighted-average period of 2.57 years .

RESTRUCTURING

RESTRUCTURING	6 Months Ended
	Jul. 04, 2015
Restructuring and Related Activities [Abstract]
RESTRUCTURING	RESTRUCTURING On July 1, 2014, the Company announced a plan to close its Wittlich, Germany manufacturing facility. As part of this action, the Company will transfer the existing Wittlich manufacturing activity to its Brno, Czech Republic facility. The Company will maintain its European Water Systems headquarters and distribution center in Wittlich, only the manufacturing operations will be relocating. The realignment began in the third quarter of 2014 and is estimated to conclude by the end of 2016. Charges for the realignment are expected to be approximately $19.4 million and will include severance expenses, professional service fees, asset write-offs, and temporarily leased facilities costs. Costs incurred in the second quarter and six months ended July 4, 2015 , included in the “Restructuring expense” line of the Company's condensed consolidated statements of income, are as follows: Second Quarter Ended July 4, 2015 (In millions) Water Systems Fueling Systems Other Consolidated Employee severance $ 0.1 $ 0.2 $ — $ 0.3 Equipment relocation 0.2 — — 0.2 Other 0.3 — — 0.3 Total $ 0.6 $ 0.2 $ — $ 0.8 Six Months Ended July 4, 2015 (In millions) Water Systems Fueling Systems Other Consolidated Employee severance $ 0.1 $ 0.3 $ — $ 0.4 Equipment relocation 0.3 — — 0.3 Other 0.5 — — 0.5 Total $ 0.9 $ 0.3 $ — $ 1.2 Restructuring expenses for the second quarter and six months ended June 28, 2014 were approximately $0.3 million and $0.4 million , respectively, primarily relating to severance. As of July 4, 2015 , there were $4.3 million of restructuring reserves. As of June 28, 2014 , there were no restructuring reserves. The restructuring reserves were primarily for severance.

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	6 Months Ended
	Jul. 04, 2015
Business Combinations [Abstract]
Schedule of Purchase Price Allocation	The final purchase price assigned to the major identifiable assets and liabilities for the Bombas Leao acquisition is as follows: (In millions) Assets: Cash acquired $ 1.1 Current assets 13.4 Property, plant, and equipment 6.5 Intangible assets 23.5 Goodwill 3.4 Other assets 3.1 Total assets 51.0 Liabilities (20.0 ) Total consideration paid $ 31.0

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	6 Months Ended
	Jul. 04, 2015
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets Measured on Recurring Basis	As of July 4, 2015 and January 3, 2015 , the assets measured at fair value on a recurring basis were as set forth in the table below. (In millions) July 4, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 1.6 $ 1.6 $ — $ — January 3, 2015 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 5.4 $ 5.4 $ — $ —

GOODWILL AND OTHER INTANGIBLE27

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	6 Months Ended
	Jul. 04, 2015
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) July 4, 2015 January 3, 2015 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangibles: Patents $ 7.5 $ (6.1 ) $ 7.6 $ (6.1 ) Supply agreements 4.4 (4.4 ) 4.4 (4.4 ) Technology 7.5 (4.6 ) 7.5 (4.3 ) Customer relationships 137.5 (39.5 ) 140.2 (36.5 ) Software 2.6 (1.7 ) 2.9 (1.7 ) Other 1.0 (1.0 ) 1.2 (1.2 ) Total $ 160.5 $ (57.3 ) $ 163.8 $ (54.2 ) Unamortized intangibles: Trade names 48.8 — 50.7 — Total intangibles $ 209.3 $ (57.3 ) $ 214.5 $ (54.2 )
Schedule of Amortization Expense	Amortization expense for each of the five succeeding years is projected as follows: (In millions) 2015 2016 2017 2018 2019 $ 8.7 $ 8.7 $ 8.6 $ 8.6 $ 8.5
Schedule of Change in the Carrying Amount of Goodwill by Reporting Segment	The change in the carrying amount of goodwill by reporting segment for the six months ended July 4, 2015 , is as follows: (In millions) Water Systems Fueling Systems Consolidated Balance as of January 3, 2015 $ 145.3 $ 63.5 $ 208.8 Adjustments to prior year acquisitions 0.3 — 0.3 Foreign currency translation (4.2 ) (0.1 ) (4.3 ) Balance as of July 4, 2015 $ 141.4 $ 63.4 $ 204.8

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	6 Months Ended
	Jul. 04, 2015
Pension Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans
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 the second quarters and six months ended July 4, 2015 and June 28, 2014 , respectively: (In millions) Pension Benefits Second Quarter Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost $ 0.3 $ 0.4 $ 0.6 $ 0.7 Interest cost 1.8 2.1 3.6 4.1 Expected return on assets (2.5 ) (2.6 ) (5.0 ) (5.2 ) Amortization of prior service cost — — — — Amortization of loss 0.8 0.6 1.6 1.2 Net periodic benefit cost $ 0.4 $ 0.5 $ 0.8 $ 0.8 Settlement cost 0.3 0.2 0.6 0.4 Total net periodic benefit cost $ 0.7 $ 0.7 $ 1.4 $ 1.2
Other Benefits
Defined Benefit Plans and Other Postretirement Benefit Plans
Schedule of Aggregated Net Periodic Benefit Cost and Other Benefit Cost	The following table sets forth the aggregated net periodic benefit cost for the postretirement benefit plan for the second quarters and six months ended July 4, 2015 and June 28, 2014 , respectively: Other Benefits Second Quarter Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Service cost $ — $ 0.1 $ — $ 0.1 Interest cost 0.1 0.1 0.2 0.2 Expected return on assets — — — — Amortization of prior service cost 0.1 0.1 0.2 0.2 Amortization of loss 0.1 — 0.2 — Net periodic benefit cost $ 0.3 $ 0.3 $ 0.6 $ 0.5 Settlement cost — — — — Total net periodic benefit cost $ 0.3 $ 0.3 $ 0.6 $ 0.5

DEBT (Tables)

DEBT (Tables)	6 Months Ended
	Jul. 04, 2015
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Debt consisted of the following: (In millions) July 4, 2015 January 3, 2015 Prudential Agreement - 5.79 percent $ 120.0 $ 150.0 Tax increment financing debt 23.2 23.7 New York Life 75.0 — Revolver 4.0 — Capital leases 0.1 0.6 Foreign subsidiary debt 3.0 3.5 $ 225.3 177.8 Less current maturities (37.5 ) (34.1 ) Long-term debt $ 187.8 $ 143.7
Schedule of Long-term Debt Payments	The following debt payments are expected to be paid in accordance with the following schedule: (In millions) Total Year 1 Year 2 Year 3 Year 4 Year 5 More Than 5 Years Debt $ 225.2 $ 37.4 $ 31.5 $ 31.0 $ 31.0 $ 1.1 $ 93.2 Capital leases 0.1 0.1 — — — — — $ 225.3 $ 37.5 $ 31.5 $ 31.0 $ 31.0 $ 1.1 $ 93.2

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	6 Months Ended
	Jul. 04, 2015
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: Second Quarter Ended Six Months Ended (In millions, except per share amounts) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 16.2 $ 27.1 $ 36.0 $ 44.0 Less: Undistributed earnings allocated to participating securities 0.1 0.3 0.3 0.5 Less: Undistributed earnings allocated to redeemable noncontrolling interest 0.1 0.2 0.2 0.2 $ 16.0 $ 26.6 $ 35.5 $ 43.3 Denominator: Basic Weighted average common shares 47.6 47.6 47.6 47.7 Diluted Effect of dilutive securities: Non-participating employee incentive stock options and performance awards 0.5 0.6 0.5 0.6 Adjusted weighted average common shares 48.1 48.2 48.1 48.3 Basic earnings per share $ 0.33 $ 0.56 $ 0.74 $ 0.91 Diluted earnings per share $ 0.33 $ 0.55 $ 0.74 $ 0.90 Anti-dilutive stock options 0.3 0.1 0.3 0.1

EQUITY ROLL FORWARD (Tables)

EQUITY ROLL FORWARD (Tables)	6 Months Ended
	Jul. 04, 2015
Equity [Abstract]
Schedule of Stockholders' Equity	The schedule below sets forth equity changes in the six months ended July 4, 2015 : (In thousands) Common Stock Additional Paid in Capital Retained Earnings Minimum Pension Liability Cumulative Translation Adjustment Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest Balance as of January 3, 2015 $ 4,759 $ 207,446 $ 492,548 $ (56,124 ) $ (51,789 ) $ 2,143 $ 598,983 $ 6,420 Net income 35,959 348 36,307 107 Adjustment to Impo redemption value (157 ) (157 ) 157 Dividends on common stock (8,960 ) (8,960 ) Common stock issued 7 1,233 1,240 Common stock repurchased (18 ) (6,200 ) (6,218 ) Share-based compensation 15 3,442 3,457 Tax benefit of stock options exercised 686 686 Noncontrolling dividend (823 ) (823 ) Currency translation adjustment (27,794 ) (118 ) (27,912 ) (283 ) Pension liability, net of tax 1,308 1,308 Balance as of July 4, 2015 $ 4,763 $ 212,807 $ 513,190 $ (54,816 ) $ (79,583 ) $ 1,550 $ 597,911 $ 6,401

ACCUMULATED OTHER COMPREHENSI32

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables)	6 Months Ended
	Jul. 04, 2015
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	Changes in accumulated other comprehensive income/(loss) by component for the six months ended July 4, 2015 and June 28, 2014 , are summarized below: (In millions) For the six months ended July 4, 2015: Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments Total Balance as of January 3, 2015 $ (51.8 ) $ (56.1 ) $ (107.9 ) Other comprehensive income/(loss) before reclassifications: Pre-tax income/(loss) (28.2 ) — (28.2 ) Income tax expense — — — Other comprehensive income/(loss) before reclassifications, net of income taxes (28.2 ) — (28.2 ) Amounts reclassified from accumulated other comprehensive income/(loss): Pre-tax income — 2.0 (1) 2.0 Income tax expense — (0.7 ) (0.7 ) Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes — 1.3 1.3 Net current period other comprehensive income/(loss), net of income taxes (28.2 ) 1.3 (26.9 ) Other comprehensive income/(loss) attributable to noncontrolling interest (0.4 ) — (0.4 ) Balance as of July 4, 2015 $ (79.6 ) $ (54.8 ) $ (134.4 ) For the six months ended June 28, 2014: Balance as of December 28, 2013 $ (16.0 ) $ (38.7 ) $ (54.7 ) Other comprehensive income/(loss) before reclassifications: Pre-tax income/(loss) 4.7 — 4.7 Income tax expense — — — Other comprehensive income/(loss) before reclassifications, net of income taxes 4.7 — 4.7 Amounts reclassified from accumulated other comprehensive income/(loss): Pre-tax income — 1.5 (1) 1.5 Income tax expense — (0.5 ) (0.5 ) Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes — 1.0 1.0 Net current period other comprehensive income/(loss), net of income taxes 4.7 1.0 5.7 Other comprehensive income/(loss) attributable to noncontrolling interest 0.1 — 0.1 Balance as of June 28, 2014 $ (11.4 ) $ (37.7 ) $ (49.1 ) (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 Company's condensed consolidated statements of income.

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jul. 04, 2015
Segment Reporting [Abstract]
Schedule of Financial Information by Reportable Business Segment	Financial information by reportable business segment is included in the following summary: Second Quarter Ended Six Months Ended (In millions) July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net sales to external customers Water Systems $ 191.6 $ 226.7 $ 370.9 $ 411.3 Fueling Systems 55.8 57.8 102.3 104.6 Other — — $ — $ — Consolidated $ 247.4 $ 284.5 $ 473.2 $ 515.9 Second Quarter Ended Six Months Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Operating income (loss) Water Systems $ 24.3 $ 41.7 $ 43.7 $ 71.0 Fueling Systems 12.4 13.5 22.0 22.5 Other (13.5 ) (16.1 ) (26.7 ) (28.4 ) Consolidated $ 23.2 $ 39.1 $ 39.0 $ 65.1 July 4, 2015 January 3, 2015 Total assets Water Systems $ 754.0 $ 757.5 Fueling Systems 250.2 252.7 Other 65.7 65.7 Consolidated $ 1,069.9 $ 1,075.9

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	6 Months Ended
	Jul. 04, 2015
Commitments and Contingencies Disclosure [Abstract]
Schedule of Changes in the Carrying Amount of the Warranty Accrual	The changes in the carrying amount of the warranty accrual, as recorded in the "Accrued expenses and other current liabilities" line of the Company's condensed consolidated balance sheet for the six months ended July 4, 2015 , are as follows: (In millions) Balance as of January 3, 2015 $ 9.4 Accruals related to product warranties 3.7 Reductions for payments made (3.8 ) Balance as of July 4, 2015 $ 9.3

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jul. 04, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Schedule of Authorized Number of Shares	The 2012 Stock Plan authorized 2,400,000 shares for issuance as follows: 2012 Stock Plan Authorized Shares Stock Options 1,680,000 Stock/Stock Unit Awards 720,000 The Company also maintains the Amended and Restated Franklin Electric Co., Inc. Stock Plan (the "2009 Stock Plan") which, as amended in 2009, provided for discretionary grants of stock options and stock awards. The 2009 Stock Plan authorized 4,400,000 shares for issuance as follows: 2009 Stock Plan Authorized Shares Stock Options 3,200,000 Stock Awards 1,200,000
Schedule of Assumptions Used to Determine the Fair Value of Options Granted	The assumptions used for the Black-Scholes model to determine the fair value of options granted during the six months ended July 4, 2015 and June 28, 2014 , are as follows: July 4, 2015 June 28, 2014 Risk-free interest rate 1.59 % 1.68 % Dividend yield 0.95 % 0.70 % Volatility factor 0.379 0.387 Expected term 5.5 years 5.6 years Forfeiture rate 3.67 % 3.81 %
Schedule of Stock Option Plans Activity	A summary of the Company’s outstanding stock option activity and related information for the six months ended July 4, 2015 and June 28, 2014 is as follows: (Shares in thousands) July 4, 2015 June 28, 2014 Stock Options Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at beginning of period 1,397 $ 21.17 1,476 $ 19.01 Granted 185 36.67 115 42.24 Exercised (70 ) 17.63 (63 ) 18.89 Forfeited (2 ) 34.93 (3 ) 26.95 Expired — — (16 ) 16.34 Outstanding at end of period 1,510 $ 23.22 1,509 $ 20.80 Expected to vest after applying forfeiture rate 1,488 $ 23.02 1,491 $ 20.63 Vested and exercisable at end of period 1,144 $ 19.13 1,194 $ 17.62
Schedule of Stock Options, Contractual Term and Aggregate Intrinsic Value	A summary of the weighted-average remaining contractual term and aggregate intrinsic value as of July 4, 2015 is as follows: Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (000's) Outstanding at end of period 5.19 years $ 15,597 Expected to vest after applying forfeiture rate 5.13 years $ 15,588 Vested and exercisable at end of period 4.03 years $ 15,291
Schedule of Restricted Stock/Stock Unit Award Activity	A summary of the Company’s restricted stock/stock unit award activity and related information for the six months ended July 4, 2015 and June 28, 2014 is as follows: (Shares in thousands) July 4, 2015 June 28, 2014 Stock/Stock Unit Awards Shares Weighted-Average Grant- Date Fair Value Weighted-Average Grant- Non-vested at beginning of period 554 $ 32.72 551 $ 24.75 Awarded 132 36.37 193 42.81 Vested (167 ) 30.52 (124 ) 16.75 Forfeited (9 ) 32.31 (59 ) 28.04 Non-vested at end of period 510 $ 34.40 $ 561 $ 32.38

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	6 Months Ended
	Jul. 04, 2015
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Cost Incurred, Included in Restructuring Expense	Costs incurred in the second quarter and six months ended July 4, 2015 , included in the “Restructuring expense” line of the Company's condensed consolidated statements of income, are as follows: Second Quarter Ended July 4, 2015 (In millions) Water Systems Fueling Systems Other Consolidated Employee severance $ 0.1 $ 0.2 $ — $ 0.3 Equipment relocation 0.2 — — 0.2 Other 0.3 — — 0.3 Total $ 0.6 $ 0.2 $ — $ 0.8 Six Months Ended July 4, 2015 (In millions) Water Systems Fueling Systems Other Consolidated Employee severance $ 0.1 $ 0.3 $ — $ 0.4 Equipment relocation 0.3 — — 0.3 Other 0.5 — — 0.5 Total $ 0.9 $ 0.3 $ — $ 1.2

ACQUISITIONS (Purchase Price As

ACQUISITIONS (Purchase Price Assigned to Each Major Identifiable Asset and Liability) (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jul. 04, 2015	Jul. 04, 2015	Jan. 03, 2015	Jun. 06, 2014
Business Acquisition
Adjustments to prior year acquisitions		$ 300
Goodwill	$ 204,781	$ 204,781	$ 208,828
Bombas Leao S.A.
Business Acquisition
Adjustments to prior year acquisitions	300
Business combination, current asset adjustment	300
Business combination, additional consideration transferred	$ 300
Cash acquired				$ 1,100
Current assets				13,400
Property, plant, and equipment				6,500
Intangible assets				23,500
Goodwill				3,400
Other assets				3,100
Total assets				51,000
Liabilities				(20,000)
Total consideration paid				$ 31,000

ACQUISITIONS (Details)

ACQUISITIONS (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Apr. 04, 2015	Jul. 04, 2015	Jun. 28, 2014	Mar. 07, 2012
Business Acquisition
Realized gain on share purchase liability		$ 2,723	$ 0
Business combination, acquisition related costs		$ 200	$ 900
Pioneer Pump Holdings Inc
Business Acquisition
Ownership percentage by noncontrolling interest holders				29.50%
Pioneer additional purchase price				$ 22,900
Business combination consideration transferred	$ 20,200
Business combination percentage of voting interests acquired	100.00%
Realized gain on share purchase liability	$ 2,700

REDEEMABLE NONCONTROLLING INT39

REDEEMABLE NONCONTROLLING INTERESTS (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	Apr. 28, 2014	May. 02, 2011
Redeemable Noncontrolling Interest
Adjustment to Impo redemption value			$ 157
Impo Motor Pompa Sanayi ve Ticaret A.S.
Redeemable Noncontrolling Interest
Business combination percentage of voting interests acquired					10.00%	80.00%
Noncontrolling interest, ownership percentage by parent					90.00%
Adjustment to Impo redemption value	$ 100	$ 200	$ 200	$ 200

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Asset held for sale	$ 2,056	$ 2,405
Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Estimated fair value of long-term debt	232,200	191,100
Recurring Basis | Estimated Fair Value
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	1,600	5,400
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	1,600	5,400
Recurring Basis | Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	0	0
Recurring Basis | Significant Unobservable Inputs (Level 3)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	0	0
Debt
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Long-term Debt	$ 225,200	$ 177,200

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - Share swap transaction agreement - Not Designated as Hedging Instrument $ in Millions	3 Months Ended		6 Months Ended
	Jul. 04, 2015USD ($)shares	Jun. 28, 2014USD ($)	Jul. 04, 2015USD ($)shares	Jun. 28, 2014USD ($)
Derivative
Derivative notional amount (in shares)	175,000		175,000
Derivative cancellable written notice term	30 days
Selling, general, and administrative expenses
Derivative
Loss on derivative | $	$ 0.9	$ 0.1	$ 1	$ 0.3

GOODWILL AND OTHER INTANGIBLE42

GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	Jan. 03, 2015
Intangible Assets
Gross carrying amount, amortized intangibles	$ 160.5		$ 160.5		$ 163.8
Accumulated amortization	(57.3)		(57.3)		(54.2)
Gross carrying amount, total intangibles	209.3		209.3		214.5
Amortization expense, intangible assets	2.2	$ 2.1	4.4	$ 4.1
Future Amortization Expense
2,015	8.7		8.7
2,016	8.7		8.7
2,017	8.6		8.6
2,018	8.6		8.6
2,019	8.5		8.5
Patents
Intangible Assets
Gross carrying amount, amortized intangibles	7.5		7.5		7.6
Accumulated amortization	(6.1)		(6.1)		(6.1)
Supply Agreements
Intangible Assets
Gross carrying amount, amortized intangibles	4.4		4.4		4.4
Accumulated amortization	(4.4)		(4.4)		(4.4)
Technology
Intangible Assets
Gross carrying amount, amortized intangibles	7.5		7.5		7.5
Accumulated amortization	(4.6)		(4.6)		(4.3)
Customer Relationships
Intangible Assets
Gross carrying amount, amortized intangibles	137.5		137.5		140.2
Accumulated amortization	(39.5)		(39.5)		(36.5)
Software
Intangible Assets
Gross carrying amount, amortized intangibles	2.6		2.6		2.9
Accumulated amortization	(1.7)		(1.7)		(1.7)
Other
Intangible Assets
Gross carrying amount, amortized intangibles	1		1		1.2
Accumulated amortization	(1)		(1)		(1.2)
Trade Names
Intangible Assets
Amortization expense, intangible assets	$ 48.8		$ 48.8		$ 50.7

GOODWILL AND OTHER INTANGIBLE43

GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) - Jul. 04, 2015 - USD ($) $ in Thousands	Total
Change in the Carrying Amount of Goodwill by Reporting Segment
Goodwill, beginning balance	$ 208,828
Adjustments to prior year acquisitions	300
Foreign currency translation	(4,300)
Goodwill, ending balance	204,781
Water Systems
Change in the Carrying Amount of Goodwill by Reporting Segment
Goodwill, beginning balance	145,300
Adjustments to prior year acquisitions	300
Foreign currency translation	(4,200)
Goodwill, ending balance	141,400
Fueling Systems
Change in the Carrying Amount of Goodwill by Reporting Segment
Goodwill, beginning balance	63,500
Adjustments to prior year acquisitions	0
Foreign currency translation	(100)
Goodwill, ending balance	$ 63,400

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 04, 2015USD ($)Pension_Plans	Jun. 28, 2014USD ($)	Jul. 04, 2015USD ($)Pension_Plans	Jun. 28, 2014USD ($)
Net Periodic Benefit Cost
Company contributions			$ 1.3
Pension Benefits
Net Periodic Benefit Cost
Service cost	$ 0.3	$ 0.4	0.6	$ 0.7
Interest cost	1.8	2.1	3.6	4.1
Expected return on assets	(2.5)	(2.6)	(5)	(5.2)
Amortization of prior service cost	0	0	0	0
Amortization of loss	0.8	0.6	1.6	1.2
Net periodic benefit cost	0.4	0.5	0.8	0.8
Settlement cost	0.3	0.2	0.6	0.4
Total net periodic benefit cost	$ 0.7	0.7	$ 1.4	1.2
Domestic Pension Plans
Net Periodic Benefit Cost and Other Benefit Cost
Number of pension plans (in ones) | Pension_Plans	2		2
German Pension Plans
Net Periodic Benefit Cost and Other Benefit Cost
Number of pension plans (in ones) | Pension_Plans	3		3
Other Benefits
Net Periodic Benefit Cost
Service cost	$ 0	0.1	$ 0	0.1
Interest cost	0.1	0.1	0.2	0.2
Expected return on assets	0	0	0	0
Amortization of prior service cost	0.1	0.1	0.2	0.2
Amortization of loss	0.1	0	0.2	0
Net periodic benefit cost	0.3	0.3	0.6	0.5
Settlement cost	0	0	0	0
Total net periodic benefit cost	$ 0.3	$ 0.3	$ 0.6	$ 0.5

INCOME TAXES (Details)

INCOME TAXES (Details)	6 Months Ended
	Jul. 04, 2015
Income Tax Disclosure [Abstract]
US Federal Statutory rate	35.00%

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	May. 28, 2015	May. 27, 2015	Jan. 03, 2015
Debt Instrument
Prudential Agreement - 5.79 percent	$ 120,000			$ 150,000
Tax increment financing debt	23,200			23,700
New York Life	75,000			0
Revolver	4,000			0
Capital leases	100			600
Foreign subsidiary debt	3,000			3,500
Debt and capital lease obligations	225,300			177,800
Less current maturities	(37,509)			(34,092)
Long-term debt	187,841			$ 143,695
NYL Shelf Agreement
Debt Instrument
Long term debt, total borrowing capacity			$ 150,000
Cross default trigger, minimum	10,000
Unused borrowing capacity	75,000
Prudential Agreement
Debt Instrument
Long term debt, total borrowing capacity		$ 250,000	$ 200,000
Unused borrowing capacity	$ 100,000
B-1 and B-2 Notes
Debt Instrument
Prudential Agreement, fixed interest rate	5.79%
Debt instrument, periodic payment, principal	$ 30,000

DEBT (Debt Payments Expected to

DEBT (Debt Payments Expected to be Paid) (Details) - USD ($) $ in Millions	Jul. 04, 2015	Jan. 03, 2015
Long-term Debt, by Maturity
Debt and capital lease obligations	$ 225.3	$ 177.8
Year 1	37.5
Year 2	31.5
Year 3	31
Year 4	31
Year 5	1.1
More than 5 years	93.2
Debt
Long-term Debt, by Maturity
Long-term debt	225.2	$ 177.2
Year 1	37.4
Year 2	31.5
Year 3	31
Year 4	31
Year 5	1.1
More than 5 years	93.2
Capital leases
Long-term Debt, by Maturity
Long-term debt	0.1
Year 1	0.1
Year 2	0
Year 3	0
Year 4	0
Year 5	0
More than 5 years	$ 0

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Numerator:
Net income attributable to Franklin Electric Co., Inc. (in dollars)	$ 16,164	$ 27,074	$ 35,959	$ 44,031
Less: Undistributed earnings allocated to participating securities (in dollars)	100	300	300	500
Net income attributable to Franklin Electric Co., Inc. excluding undistributed earnings (in dollars)	$ 16,000	$ 26,600	$ 35,500	$ 43,300
Basic
Weighted average common shares (in shares)	47.6	47.6	47.6	47.7
Effect of dilutive securities:
Non-participating employee incentive stock options and performance awards (in shares)	0.5	0.6	0.5	0.6
Adjusted weighted average common shares (in shares)	48.1	48.2	48.1	48.3
Basic earnings per share (in dollars per share)	$ 0.33	$ 0.56	$ 0.74	$ 0.91
Diluted earnings per share (in dollars per share)	$ 0.33	$ 0.55	$ 0.74	$ 0.90
Stock Options
Effect of dilutive securities:
Anti-dilutive stock options (in shares)	0.3	0.1	0.3	0.1
Impo Motor Pompa Sanayi ve Ticaret A.S.
Numerator:
Less: Undistributed earnings allocated to redeemable noncontrolling interest (in dollars)	$ 100	$ 200	$ 200	$ 200

EQUITY ROLL FORWARD (Details)

EQUITY ROLL FORWARD (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			$ 598,983
Net income	$ 16,438	$ 27,458	36,414	$ 44,879
Equity, ending balance	597,911		597,911
Increase (Decrease) in Temporary Equity
Temporary equity, beginning balance			6,420
Net income			107
Adjustment to Impo redemption value			157
Currency translation adjustment			(283)
Temporary equity, ending balance	6,401		6,401
Common Stock
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			4,759
Common stock issued			7
Common stock repurchased			(18)
Share-based compensation			15
Equity, ending balance	4,763		4,763
Additional Paid in Capital
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			207,446
Common stock issued			1,233
Share-based compensation			3,442
Tax benefit of stock options exercised			686
Equity, ending balance	212,807		212,807
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			492,548
Net income			35,959
Adjustment to Impo redemption value			(157)
Dividends on common stock			(8,960)
Common stock repurchased			(6,200)
Equity, ending balance	513,190		513,190
Minimum Pension Liability
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			(56,124)
Pension liability, net of tax			1,308
Equity, ending balance	(54,816)		(54,816)
Cumulative Translation Adjustment
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			(51,789)
Currency translation adjustment			(27,794)
Equity, ending balance	(79,583)		(79,583)
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			2,143
Net income			348
Noncontrolling dividend			(823)
Currency translation adjustment			(118)
Equity, ending balance	1,550		1,550
Total Equity
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			598,983
Net income			36,307
Adjustment to Impo redemption value			(157)
Dividends on common stock			(8,960)
Common stock issued			1,240
Common stock repurchased			(6,218)
Share-based compensation			3,457
Tax benefit of stock options exercised			686
Noncontrolling dividend			(823)
Currency translation adjustment			(27,912)
Pension liability, net of tax			1,308
Equity, ending balance	$ 597,911		$ 597,911

ACCUMULATED OTHER COMPREHENSI50

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Accumulated Other Comprehensive Income/(Loss)
Beginning balance				$ (107,913)	$ (54,700)
Pre-tax income/(loss)				(28,200)	4,700
Income tax expense				0	0
Other comprehensive income/(loss) before reclassifications, net of income taxes				(28,200)	4,700
Pre-tax income				2,000	1,500
Income tax expense				(700)	(500)
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes				1,300	1,000
Net current period other comprehensive income/(loss), net of income taxes		$ 341	$ 2,989	(26,887)	5,655
Other comprehensive income/(loss) attributable to noncontrolling interest				(400)	100
Ending balance		(134,399)	(49,100)	(134,399)	(49,100)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income/(Loss)
Beginning balance				(51,800)	(16,000)
Pre-tax income/(loss)				(28,200)	4,700
Income tax expense				0	0
Other comprehensive income/(loss) before reclassifications, net of income taxes				(28,200)	4,700
Pre-tax income				0	0
Income tax expense				0	0
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes				0	0
Net current period other comprehensive income/(loss), net of income taxes				(28,200)	4,700
Other comprehensive income/(loss) attributable to noncontrolling interest				(400)	100
Ending balance		(79,600)	(11,400)	(79,600)	(11,400)
Pension and Postretirement Plan Benefit Adjustments
Accumulated Other Comprehensive Income/(Loss)
Beginning balance				(56,100)	(38,700)
Pre-tax income/(loss)				0	0
Income tax expense				0	0
Other comprehensive income/(loss) before reclassifications, net of income taxes				0	0
Pre-tax income	[1]			2,000	1,500
Income tax expense				(700)	(500)
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes				1,300	1,000
Net current period other comprehensive income/(loss), net of income taxes				1,300	1,000
Other comprehensive income/(loss) attributable to noncontrolling interest				0	0
Ending balance		$ (54,800)	$ (37,700)	$ (54,800)	$ (37,700)
[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 Company's condensed consolidated statements of income.

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	Jan. 03, 2015
Segment Reporting Information
Net sales to external customers	$ 247,427	$ 284,466	$ 473,155	$ 515,887
Operating income (loss)	23,172	39,128	39,039	65,088
Total assets	1,069,865		1,069,865		$ 1,075,887
Water Systems
Segment Reporting Information
Net sales to external customers	191,600	226,700	370,900	411,300
Operating income (loss)	24,300	41,700	43,700	71,000
Total assets	754,000		754,000		757,500
Fueling Systems
Segment Reporting Information
Net sales to external customers	55,800	57,800	102,300	104,600
Operating income (loss)	12,400	13,500	22,000	22,500
Total assets	250,200		250,200		252,700
Other
Segment Reporting Information
Net sales to external customers	0	0	0	0
Operating income (loss)	(13,500)	$ (16,100)	(26,700)	$ (28,400)
Total assets	$ 65,700		$ 65,700		$ 65,700

COMMITMENTS AND CONTINGENCIES52

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions	Jan. 22, 2014	Jul. 04, 2015
Commitments
Purchase obligations		$ 11.2
Product Warranties Disclosures
Standard warranty obligation term (in years)		P2Y
Standard installation warranty obligation term (in years)		1 year
Extended warranty obligation term (in years)		5 years
Changes in the Carrying Amount of the Warranty Accrual
Beginning balance		$ 9.4
Accruals related to product warranties		3.7
Reductions for payments made		(3.8)
Ending balance		$ 9.3
California Air Resources Board
Loss Contingencies
Amended judgment, amount paid to the Company	$ 0.1

SHARE-BASED COMPENSATION (Detai

SHARE-BASED COMPENSATION (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	May. 04, 2012	Apr. 24, 2009
Fair Value Assumptions
Risk-free interest rate (as a percent)			1.59%	1.68%
Dividend yield (as a percent)			0.95%	0.70%
Volatility factor (as a percent)			37.90%	38.70%
Expected term (in years)			5 years 5 months 26 days	5 years 7 months 6 days
Forfeiture rate (as a percent)			3.67%	3.81%
Stock Option Plans Activity and Related Information
Outstanding beginning of period, shares			1,397,000	1,476,000
Outstanding beginning of period, weighted-average exercise price (in dollars per share)			$ 21.17	$ 19.01
Granted, shares	0	22,050	185,000	115,000
Granted, weighted-average exercise price (in dollars per share)			$ 36.67	$ 42.24
Exercised, shares			(70,000)	(63,000)
Exercised, weighted-average exercise price (in dollars per share)			$ 17.63	$ 18.89
Forfeited, shares			(2,000)	(3,000)
Forfeited, weighted-average exercise price (in dollars per share)			$ 34.93	$ 26.95
Expired, shares			0	(16,000)
Expired, weighted-average exercise price (in dollars per share)			$ 0	$ 16.34
Outstanding end of period, shares	1,510,000	1,509,000	1,510,000	1,509,000
Outstanding end of period, weighted-average exercise price (in dollars per share)	$ 23.22	$ 20.80	$ 23.22	$ 20.80
Expected to vest after applying forfeiture rate, shares	1,488,000	1,491,000	1,488,000	1,491,000
Expected to vest after applying forfeiture rate, weighted-average exercise price (in dollars per share)	$ 23.02	$ 20.63	$ 23.02	$ 20.63
Vested and exercisable end of period, shares	1,144,000	1,194,000	1,144,000	1,194,000
Vested and exercisable end of period, weighted-average exercise price (in dollars per share)	$ 19.13	$ 17.62	$ 19.13	$ 17.62
Summary of Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Outstanding end of period, weighted-average remaining contractual term (in years)			5 years 2 months 8 days
Outstanding end of period, aggregate intrinsic value (in dollars)	$ 15,597		$ 15,597
Expected to vest after applying forfeiture rate, weighted-average remaining contractual term (in years)			5 years 1 month 17 days
Expected to vest after applying forfeiture rate, aggregate intrinsic value (in dollars)	15,588		$ 15,588
Vested and exercisable end of period, weighted-average remaining contractual term (in years)			4 years 10 days
Vested and exercisable end of period, aggregate intrinsic value (in dollars)	$ 15,291		$ 15,291
Intrinsic value of options exercised (in dollars)			$ 1,300	$ 1,400
Stock/Stock Unit Award Activity and Related Information
Non-vested at beginning of period, shares			554,000	551,000
Non-vested at beginning of period, weighted-average grant date fair value (in dollars per share)			$ 32.72	$ 24.75
Awarded, shares			132,000	193,000
Awarded, weighted-average grant date fair value (in dollars per share)			$ 36.37	$ 42.81
Vested, shares			(167,000)	(124,000)
Vested, weighted-average grant date fair value (in dollars per share)			$ 30.52	$ 16.75
Forfeited, shares			(9,000)	(59,000)
Forfeited, weighted-average grant date fair value (in dollars per share)			$ 32.31	$ 28.04
Non-vested at end of period, shares	510,000	561,000	510,000	561,000
Non-vested at the end of period, weighted-average grant date fair value (in dollars per share)	$ 34.40	$ 32.38	$ 34.40	$ 32.38
Options
Summary of Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Total unrecognized compensation cost related to nonvested share-based compensation (in dollars)	$ 2,200		$ 2,200
Total unrecognized compensation cost, recognized over a weighted-average period (in years)			2 years 10 months 13 days
Employee Stock/Stock Unit Award
Summary of Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Total unrecognized compensation cost related to nonvested share-based compensation (in dollars)	$ 10,100		$ 10,100
Total unrecognized compensation cost, recognized over a weighted-average period (in years)			2 years 6 months 25 days
2012 Stock Plan
Share-based Compensation
Authorized shares					2,400,000
2012 Stock Plan | Options
Share-based Compensation
Authorized shares					1,680,000
2012 Stock Plan | Employee Stock/Stock Unit Award
Share-based Compensation
Authorized shares					720,000
2009 Stock Plan
Share-based Compensation
Authorized shares						4,400,000
2009 Stock Plan | Options
Share-based Compensation
Authorized shares						3,200,000
2009 Stock Plan | Awards
Share-based Compensation
Authorized shares						1,200,000

RESTRUCTURING (Details)

RESTRUCTURING (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	Jul. 01, 2014
Restructuring Cost and Reserve
Restructuring expense	$ 758	$ 295	$ 1,221	$ 431
Restructuring reserves	4,300	$ 0	4,300	$ 0
Employee Severance
Restructuring Cost and Reserve
Restructuring expense	300		400
Equipment Relocation
Restructuring Cost and Reserve
Restructuring expense	200		300
Other
Restructuring Cost and Reserve
Restructuring expense	300		500
Water Systems
Restructuring Cost and Reserve
Restructuring expense	600		900
Water Systems | Employee Severance
Restructuring Cost and Reserve
Restructuring expense	100		100
Water Systems | Equipment Relocation
Restructuring Cost and Reserve
Restructuring expense	200		300
Water Systems | Other
Restructuring Cost and Reserve
Restructuring expense	300		500
Fueling Systems
Restructuring Cost and Reserve
Restructuring expense	200		300
Fueling Systems | Employee Severance
Restructuring Cost and Reserve
Restructuring expense	200		300
Fueling Systems | Equipment Relocation
Restructuring Cost and Reserve
Restructuring expense	0		0
Fueling Systems | Other
Restructuring Cost and Reserve
Restructuring expense	0		0
Other
Restructuring Cost and Reserve
Restructuring expense	0		0
Other | Employee Severance
Restructuring Cost and Reserve
Restructuring expense	0		0
Other | Equipment Relocation
Restructuring Cost and Reserve
Restructuring expense	0		0
Other | Other
Restructuring Cost and Reserve
Restructuring expense	$ 0		$ 0
Wittlich Facility Closure
Restructuring Cost and Reserve
Restructuring and related cost, expected cost					$ 19,400