Franklin Electric (FELE) 10-Q 1 Nov 16 2016 Q3 Quarterly report Financial data

DOCUMENT AND ENTITY INFORMATION

DOCUMENT AND ENTITY INFORMATION - shares	9 Months Ended
	Oct. 01, 2016	Oct. 24, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	FRANKLIN ELECTRIC CO INC
Entity Central Index Key	38,725
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Oct. 1, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		46,305,492

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Income Statement [Abstract]
Net sales	$ 239,755	$ 232,485	$ 710,266	$ 705,640
Cost of sales	154,286	155,693	459,883	477,150
Gross profit	85,469	76,792	250,383	228,490
Selling, general, and administrative expenses	55,373	47,722	165,672	159,160
Restructuring (income)/expense	(1,715)	1,304	(850)	2,525
Operating income	31,811	27,766	85,561	66,805
Interest expense	(1,983)	(2,604)	(6,631)	(7,717)
Other income, net	1,446	1,616	2,787	6,025
Foreign exchange income/(expense)	399	(96)	637	(39)
Income before income taxes	31,673	26,682	82,354	65,074
Income tax expense	7,926	5,656	20,840	7,634
Net income	23,747	21,026	61,514	57,440
Less: Net income attributable to noncontrolling interests	(83)	(201)	(411)	(656)
Net income attributable to Franklin Electric Co., Inc.	$ 23,664	$ 20,825	$ 61,103	$ 56,784
Income per share:
Basic (in dollars per share)	$ 0.51	$ 0.44	$ 1.29	$ 1.18
Diluted (in dollars per share)	0.50	0.43	1.28	1.17
Dividends per common share (in dollars per share)	$ 0.1000	$ 0.0975	$ 0.2975	$ 0.2850

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Statement of Comprehensive Income [Abstract]
Net income	$ 23,747	$ 21,026	$ 61,514	$ 57,440
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	(1,837)	(26,305)	12,096	(54,500)
Employee benefit plan activity	742	988	2,227	2,963
Other comprehensive income/(loss)	(1,095)	(25,317)	14,323	(51,537)
Income tax expense related to items of other comprehensive income/(loss)	(266)	(333)	(798)	(1,000)
Other comprehensive income/(loss), net of tax	(1,361)	(25,650)	13,525	(52,537)
Comprehensive income/(loss)	22,386	(4,624)	75,039	4,903
Less: Comprehensive income/(loss) attributable to noncontrolling interests	47	(47)	409	7
Comprehensive income/(loss) attributable to Franklin Electric Co., Inc.	$ 22,339	$ (4,577)	$ 74,630	$ 4,896

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 78,981	$ 81,561
Receivables, less allowances of $3,860 and $3,801, respectively	152,093	127,251
Inventories:
Raw material	82,621	82,223
Work-in-process	18,308	18,384
Finished goods	114,138	93,987
Total inventories	215,067	194,594
Other current assets	31,289	34,715
Total current assets	477,430	438,121
Property, plant, and equipment, at cost:
Land and buildings	116,614	117,753
Machinery and equipment	246,147	233,834
Furniture and fixtures	46,936	39,639
Other	25,300	19,845
Property, plant, and equipment, gross	434,997	411,071
Less: Allowance for depreciation	(236,322)	(221,032)
Property, plant, and equipment, net	198,675	190,039
Asset held for sale	0	1,613
Deferred income taxes	4,897	3,461
Intangible assets, net	138,256	141,357
Goodwill	202,037	199,847
Other assets	23,322	21,673
Total assets	1,044,617	996,111
Current liabilities:
Accounts payable	60,695	57,822
Accrued expenses and other current liabilities	61,003	52,109
Income taxes	3,353	1,794
Current maturities of long-term debt and short-term borrowings	33,418	32,946
Total current liabilities	158,469	144,671
Long-term debt	156,712	187,806
Deferred income taxes	38,950	33,404
Employee benefit plans	40,799	47,398
Other long-term liabilities	19,899	16,511
Commitments and contingencies (see Note 14)	0	0
Redeemable noncontrolling interest	7,597	6,856
Shareowners' equity:
Common stock (65,000 shares authorized, $.10 par value) outstanding (46,305 and 46,219, respectively)	4,630	4,622
Additional capital	225,547	216,472
Retained earnings	538,501	498,214
Accumulated other comprehensive loss	(148,081)	(161,608)
Total shareowners' equity	620,597	557,700
Noncontrolling interest	1,594	1,765
Total equity	622,191	559,465
Total liabilities and equity	$ 1,044,617	$ 996,111

CONDENSED CONSOLIDATED BALANCE5

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Current assets:
Allowance for doubtful accounts (in dollars)	$ 3,860	$ 3,801
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 (in shares)	46,305,000	46,219,000

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Cash flows from operating activities:
Net income	$ 61,514	$ 57,440
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	26,752	26,804
Share-based compensation	5,912	4,579
Deferred income taxes	2,585	(5,569)
Loss on disposals of plant and equipment	200	202
Realized gain on share purchase liability	0	(2,723)
Foreign exchange income/(expense)	(637)	39
Excess tax from share-based payment arrangements	0	(819)
Changes in assets and liabilities, net of acquisitions
Receivables	(22,088)	(527)
Inventory	(14,910)	(3,366)
Accounts payable and accrued expenses	9,333	(10,345)
Income taxes	3,451	9,561
Employee benefit plans	(4,825)	(4,020)
Other, net	3,578	(10,915)
Net cash flows from operating activities	70,865	60,341
Cash flows from investing activities:
Additions to property, plant, and equipment	(30,109)	(15,528)
Proceeds from sale of property, plant, and equipment	5,839	959
Cash paid for acquisitions, net of cash acquired	(1,007)	(3,761)
Additional consideration for prior acquisition, net	0	(127)
Other, net	174	99
Net cash flows from investing activities	(25,103)	(18,358)
Cash flows from financing activities:
Proceeds from issuance of debt	63,984	231,615
Repayment of debt	(94,610)	(165,828)
Proceeds from issuance of common stock	3,192	1,240
Excess tax from share-based payment arrangements	0	819
Purchases of common stock	(6,193)	(43,330)
Dividends paid	(14,483)	(14,393)
Share purchase liability payment	0	(20,200)
Net cash flows from financing activities	(48,110)	(10,077)
Effect of exchange rate changes on cash	(232)	(6,149)
Net change in cash and equivalents	(2,580)	25,757
Cash and equivalents at beginning of period	81,561	59,141
Cash and equivalents at end of period	78,981	84,898
Cash paid for income taxes, net of refunds	16,673	10,288
Cash paid for interest	7,139	8,092
Additions to property, plant, and equipment, not yet paid	591	193
Payable to seller of Bombas Leao	$ 24	$ 24

CONDENSED CONSOLIDATED FINANCIA

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	9 Months Ended
	Oct. 01, 2016
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 2, 2016 , which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of October 1, 2016 , and for the third quarters and nine months ended October 1, 2016 and October 3, 2015 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 third quarter and nine months ended October 1, 2016 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2016 . For further information, including a description of the critical accounting policies of Franklin Electric Co., Inc. (the "Company"), refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended January 2, 2016 .

ACCOUNTING PRONOUNCEMENTS

ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Oct. 01, 2016
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements and Changes in Accounting Principles	ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This standard simplifies several aspects of the accounting for employee share-based payment transactions including the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification, and the classification of those taxes paid on the statement of cash flows. This ASU is effective for annual and interim periods beginning after December 15, 2016 with early adoption permitted. The Company early adopted ASU 2016-09 during the second quarter ended July 2, 2016. The primary impact of adoption was the recognition of excess tax benefits or deficiencies in the provision for income taxes rather than paid-in capital for all periods in fiscal year 2016. The Company has elected to continue its current policy of estimating forfeitures rather than recognizing forfeitures when they occur. Under ASU 2016-09, excess income tax benefits from stock-based compensation arrangements are classified as cash flows from operations, rather than as cash flows from financing activities. The Company elected to apply the cash flow presentation requirements prospectively. The standard also clarifies that cash flows related to employee taxes paid by withheld shares should be classified as a financing activity. This provision had no impact to the Company, because these cash flows have historically been presented as financing activities. Early adoption of the standard requires reflected adjustments as of January 3, 2016, the beginning of the annual period that includes the interim period of adoption. As such, previously reported first quarter 2016 results were impacted as follows: (In thousands, except per share amounts) First Quarter Ended April 2, 2016 As previously reported Adjustment As adjusted Income statements: Income tax expense $ 4,955 $ 12 $ 4,967 Net income attributable to Franklin Electric Co., Inc. $ 13,457 $ (12 ) $ 13,445 Basic earnings per share $ 0.28 $ — $ 0.28 Diluted earnings per share $ 0.28 $ — $ 0.28 Diluted weighted average shares outstanding 46,445 60 46,505 Cash flow statements: Net cash from operating activities $ (437 ) $ 53 $ (384 ) Net cash from financing activities $ 3,572 $ (53 ) $ 3,519 Balance sheets: Additional capital $ 219,400 $ 12 $ 219,412 Retained earnings $ 502,512 $ (12 ) $ 502,500 In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): 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 instead of a deferred asset. The standard does not change the amortization of debt issuance costs, which will continue to follow the existing accounting guidance. The Company adopted ASU 2015-03 during the first quarter ended April 2, 2016. The retrospective adoption of this ASU required a total of approximately $0.3 million of unamortized debt issuance costs as of year-end 2015 to be reclassified from "Other assets" and "Other current assets" to a direct deduction from "Long-term debt" in the Company's condensed consolidated balance sheet as of January 2, 2016. In addition, there were no impacts to the Company's results of operations, retained earnings, or cash flows in the current or previous interim and annual reporting periods. Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes existing guidance on accounting for leases found in Accounting Standards Codification ("ASC") Topic 840. This ASU requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and is effective for interim and annual periods beginning after December 15, 2018 with early adoption 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, cash flows, and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . 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. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. These ASUs are effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt these standards. The Company is still in the process of analyzing the effect of these new standards, including the transition method, to determine the impact on the Company's consolidated financial position, results of operations, cash flows, and related disclosures.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Oct. 01, 2016
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 October 1, 2016 and January 2, 2016 , the assets measured at fair value on a recurring basis were as set forth in the table below: (In millions) October 1, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 3.4 $ 3.4 $ — $ — January 2, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 3.9 $ 3.9 $ — $ — The Company's Level 1 assets consist of cash equivalents which are generally made up of foreign bank guaranteed certificates of deposit. Total debt, including current maturities, have carrying amounts of $190.1 million and $220.7 million and estimated fair values of $194 million and $225 million as of October 1, 2016 and January 2, 2016 , respectively. 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 October 1, 2016 , the Company had no assets held for sale. At January 2, 2016 , $1.6 million of assets were held for sale, recorded at carrying value in the Water Systems segment relating to an idle facility in Brazil. The sale of the facility in Brazil was completed during the third quarter of 2016.

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	9 Months Ended
	Oct. 01, 2016
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. The Company has entered into share swap transaction agreements ("the swap") to mitigate the Company’s exposure to the fluctuations in the Company's stock price. The swap has not been designated as a hedge for accounting purposes and is cancellable with 30 days' written notice by either party. As of October 1, 2016 , the swap had a notional value based on 205,000 shares. For the third quarter and nine months ended October 1, 2016 , the swap resulted in gains of $1.5 million and $2.6 million , respectively. For the third quarter and nine months ended October 3, 2015 , the swap resulted in losses of $0.9 million and $1.9 million , respectively. Gains and losses on the swap were primarily offset by gains and losses 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	9 Months Ended
	Oct. 01, 2016
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 sheets. 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 third quarters and nine months ended October 1, 2016 and October 3, 2015 .

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	9 Months Ended
	Oct. 01, 2016
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) October 1, 2016 January 2, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangibles: Patents $ 7.5 $ (6.4 ) $ 7.4 $ (6.2 ) Technology 7.5 (5.2 ) 7.5 (4.8 ) Customer relationships 135.0 (48.4 ) 132.6 (42.3 ) Software 2.5 (1.8 ) 2.5 (1.7 ) Other 0.3 (0.3 ) 1.0 (1.0 ) Total $ 152.8 $ (62.1 ) $ 151.0 $ (56.0 ) Unamortized intangibles: Trade names 47.6 — 46.4 — Total intangibles $ 200.4 $ (62.1 ) $ 197.4 $ (56.0 ) Amortization expense related to intangible assets for the third quarters ended October 1, 2016 and October 3, 2015 was $2.2 million and $2.1 million , respectively and $6.3 million and $6.5 million for the nine months ended October 1, 2016 and October 3, 2015 , respectively. Amortization expense for each of the five succeeding years is projected as follows: (In millions) 2016 2017 2018 2019 2020 $ 8.6 $ 8.5 $ 8.4 $ 8.3 $ 8.2 The change in the carrying amount of goodwill by reporting segment for the nine months ended October 1, 2016 , is as follows: (In millions) Water Systems Fueling Systems Consolidated Balance as of January 2, 2016 $ 136.8 $ 63.0 $ 199.8 Acquisitions — 0.8 0.8 Foreign currency translation 1.7 (0.3 ) 1.4 Balance as of October 1, 2016 $ 138.5 $ 63.5 $ 202.0

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	9 Months Ended
	Oct. 01, 2016
Compensation and Retirement Disclosure [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS Defined Benefit Plans - As of October 1, 2016 , the Company maintained two domestic pension plans and three German pension plans. The Company used a January 2, 2016 measurement date for these plans. One of the Company's domestic pension plans covers two management employees (one active employee and one former employee), 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 third quarters and nine months ended October 1, 2016 and October 3, 2015 : (In millions) Pension Benefits Third Quarter Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ 0.3 $ 0.2 $ 0.8 $ 0.8 Interest cost 1.6 1.9 4.7 5.5 Expected return on assets (2.3 ) (2.4 ) (7.0 ) (7.4 ) Amortization of loss 0.6 0.8 1.9 2.4 Net periodic benefit cost $ 0.2 $ 0.5 $ 0.4 $ 1.3 Settlement cost 0.3 0.3 0.9 0.9 Total net periodic benefit cost $ 0.5 $ 0.8 $ 1.3 $ 2.2 In the nine months ended October 1, 2016 , the Company made contributions of $2.1 million to the funded plans. The amount of contributions to be made to the plans during the calendar year 2016 were finalized by September 15, 2016, based upon the plans' year-end valuation at January 2, 2016 , and the funding level required for the plans' year ended January 2, 2016 . The following table sets forth the aggregated net periodic benefit cost for the postretirement benefit plan for the third quarters and nine months ended October 1, 2016 and October 3, 2015 , respectively: (In millions) Other Benefits Third Quarter Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ — $ — $ — $ — Interest cost 0.1 0.1 0.3 0.3 Expected return on assets — — — — Amortization of prior service cost 0.1 0.1 0.3 0.3 Amortization of loss — 0.1 — 0.3 Net periodic benefit cost $ 0.2 $ 0.3 $ 0.6 $ 0.9 Settlement cost — — — — Total net periodic benefit cost $ 0.2 $ 0.3 $ 0.6 $ 0.9

INCOME TAXES

INCOME TAXES	9 Months Ended
	Oct. 01, 2016
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s effective tax rate from continuing operations for the nine month period ended October 1, 2016 was 25.3 percent as compared to 11.7 percent for the nine month period ended October 3, 2015. The effective tax rate continues to be lower than the U.S. 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 U.S. incentives and 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. In addition during the three month period ended April 4, 2015, the Company settled the liability for the noncontrolling interest of a subsidiary during the first quarter. This transaction created additional accretive benefits for the Company from the reversal of a deferred tax liability created in 2012 when the Company acquired the controlling interest and realized a gain on the then equity investment in such subsidiary. The Company also realized a gain on the mandatorily redeemable noncontrolling interest liability.

DEBT

DEBT	9 Months Ended
	Oct. 01, 2016
Debt Disclosure [Abstract]
DEBT	DEBT Debt consisted of the following: (In millions) October 1, 2016 January 2, 2016 Prudential Agreement $ 90.0 $ 120.0 Tax increment financing debt 21.8 22.8 New York Life 75.0 75.0 Capital leases 0.1 0.1 Foreign subsidiary debt 3.5 3.1 Less: unamortized debt issuance costs (0.3 ) (0.3 ) $ 190.1 $ 220.7 Less: current maturities (33.4 ) (32.9 ) Long-term debt $ 156.7 $ 187.8 Debt outstanding, excluding unamortized debt issuance costs, at October 1, 2016 matures as follows: (In millions) Total Year 1 Year 2 Year 3 Year 4 Year 5 More Than 5 Years Debt $ 190.3 $ 33.4 $ 31.1 $ 31.3 $ 1.3 $ 1.2 $ 92.0 Capital leases 0.1 — 0.1 — — — — $ 190.4 $ 33.4 $ 31.2 $ 31.3 $ 1.3 $ 1.2 $ 92.0

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Oct. 01, 2016
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: Third Quarter Ended Nine Months Ended (In millions, except per share amounts) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 23.7 $ 20.8 $ 61.1 $ 56.8 Less: Undistributed earnings allocated to participating securities 0.2 0.2 0.6 0.5 Less: Undistributed earnings allocated to redeemable noncontrolling interest 0.1 0.2 0.8 0.4 $ 23.4 $ 20.4 $ 59.7 $ 55.9 Denominator: Basic Weighted average common shares 46.3 46.9 46.2 47.4 Diluted Effect of dilutive securities: Non-participating employee stock options and performance awards 0.6 0.4 0.5 0.4 Adjusted weighted average common shares 46.9 47.3 46.7 47.8 Basic earnings per share $ 0.51 $ 0.44 $ 1.29 $ 1.18 Diluted earnings per share $ 0.50 $ 0.43 $ 1.28 $ 1.17 Anti-dilutive stock options 0.2 0.5 0.6 0.3

EQUITY ROLL FORWARD

EQUITY ROLL FORWARD	9 Months Ended
	Oct. 01, 2016
Equity [Abstract]
EQUITY ROLL FORWARD	EQUITY ROLL FORWARD The schedule below sets forth equity changes in the nine months ended October 1, 2016 : (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 2, 2016 $ 4,622 $ 216,472 $ 498,214 $ (51,558 ) $ (110,050 ) $ 1,765 $ 559,465 $ 6,856 Net income 61,103 458 61,561 (47 ) Adjustment to Impo redemption value (834 ) (834 ) 834 Dividends on common stock (13,810 ) (13,810 ) Common stock issued 16 3,176 3,192 Common stock repurchased (21 ) (6,172 ) (6,193 ) Share-based compensation 13 5,899 5,912 Noncontrolling dividend (673 ) (673 ) Currency translation adjustment 12,098 44 12,142 (46 ) Pension liability, net of tax 1,429 1,429 Balance as of October 1, 2016 $ 4,630 $ 225,547 $ 538,501 $ (50,129 ) $ (97,952 ) $ 1,594 $ 622,191 $ 7,597

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	9 Months Ended
	Oct. 01, 2016
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Changes in accumulated other comprehensive income/(loss) by component for the nine months ended October 1, 2016 and October 3, 2015 , are summarized below: (In millions) For the nine months ended October 1, 2016: Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments Total Balance as of January 2, 2016 $ (110.1 ) $ (51.5 ) $ (161.6 ) Other comprehensive income/(loss) before reclassifications: Pre-tax income/(loss) 12.1 — 12.1 Income tax (expense)/benefit — — — Other comprehensive income/(loss) before reclassifications, net of income taxes 12.1 — 12.1 Amounts reclassified from accumulated other comprehensive income/(loss): Pre-tax income/(loss) — 2.2 (1) 2.2 Income tax (expense)/benefit — (0.8 ) (0.8 ) Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes — 1.4 1.4 Net current period other comprehensive income/(loss), net of income taxes 12.1 1.4 13.5 Less: Other comprehensive income/(loss) attributable to noncontrolling interests — — — Balance as of October 1, 2016 $ (98.0 ) $ (50.1 ) $ (148.1 ) For the nine months ended October 3, 2015: Balance as of January 3, 2015 $ (51.8 ) $ (56.1 ) $ (107.9 ) Other comprehensive income/(loss) before reclassifications: Pre-tax income/(loss) (54.4 ) — (54.4 ) Income tax (expense)/benefit — — — Other comprehensive income/(loss) before reclassifications, net of income taxes (54.4 ) — (54.4 ) Amounts reclassified from accumulated other comprehensive income/(loss): Pre-tax income/(loss) — 2.9 (1) 2.9 Income tax (expense)/benefit — (1.0 ) (1.0 ) Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes — 1.9 1.9 Net current period other comprehensive income/(loss), net of income taxes (54.4 ) 1.9 (52.5 ) Less: Other comprehensive income/(loss) attributable to noncontrolling interests (0.6 ) — (0.6 ) Balance as of October 3, 2015 $ (105.6 ) $ (54.2 ) $ (159.8 ) (1) This accumulated other comprehensive income/(loss) component is included in the computation of net periodic pension cost (refer to Note 7 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	9 Months Ended
	Oct. 01, 2016
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION Financial information by reportable business segment is included in the following summary: Third Quarter Ended Nine Months Ended (In millions) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Net sales to external customers Water Systems $ 182.0 $ 173.5 $ 545.4 $ 544.3 Fueling Systems 57.8 59.0 164.9 161.3 Other — — — — Consolidated $ 239.8 $ 232.5 $ 710.3 $ 705.6 Third Quarter Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Operating income/(loss) Water Systems $ 30.0 $ 23.1 $ 85.6 $ 66.8 Fueling Systems 15.2 15.4 40.9 37.4 Other (13.4 ) (10.7 ) (40.9 ) (37.4 ) Consolidated $ 31.8 $ 27.8 $ 85.6 $ 66.8 October 1, 2016 January 2, 2016 Total assets Water Systems $ 706.4 $ 677.6 Fueling Systems 250.1 248.5 Other 88.1 70.0 Consolidated $ 1,044.6 $ 996.1 Property, plant, and equipment is the major asset group in "Other" of total assets as of October 1, 2016 and January 2, 2016 .

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Oct. 01, 2016
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES The Company is defending various claims and legal actions 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 defended or resolved without a material effect on the Company’s financial position, results of operations, and net cash flows. At October 1, 2016 , the Company had $20.3 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 two to five years from date of manufacture or one to five years from date of installation. 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 nine months ended October 1, 2016 , are as follows: (In millions) Balance as of January 2, 2016 $ 9.3 Accruals related to product warranties 4.6 Reductions for payments made (5.3 ) Balance as of October 1, 2016 $ 8.6

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	9 Months Ended
	Oct. 01, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
SHARE-BASED COMPENSATION	SHARE-BASED COMPENSATION The Company maintains the Franklin Electric Co., Inc. 2012 Stock Plan (the "2012 Stock Plan"), which is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, and stock unit awards to key employees and non-employee directors. The 2012 Stock Plan authorized 2,400,000 shares for issuance as follows: 2012 Stock Plan Authorized Shares Stock Options 1,680,000 Stock/Stock Unit Awards 720,000 The Company also maintains the Amended and Restated Franklin Electric Co., Inc. Stock Plan (the "2009 Stock Plan") which, as amended in 2009, provided for discretionary grants of stock options and stock awards. The 2009 Stock Plan authorized 4,400,000 shares for issuance as follows: 2009 Stock Plan Authorized Shares Stock Options 3,200,000 Stock Awards 1,200,000 All options in the 2009 Stock Plan have been awarded. The Company currently issues new shares from its common stock balance to satisfy option exercises and the settlement of stock awards and stock unit awards made under the 2009 Stock Plan and/or the 2012 Stock Plan. Stock Options: The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model with a single approach and amortized using a straight-line attribution method over the option’s vesting period. The assumptions used for the Black-Scholes model to determine the fair value of options granted during the nine months ended October 1, 2016 and October 3, 2015 are as follows: October 1, 2016 October 3, 2015 Risk-free interest rate 1.21 % 1.59 % Dividend yield 1.32 % 0.95 % Volatility factor 0.377 0.379 Expected term 5.5 years 5.5 years Forfeiture rate 3.77 % 3.67 % There were no stock options granted during the third quarters ended October 1, 2016 or October 3, 2015 . A summary of the Company’s outstanding stock option activity and related information for the nine months ended October 1, 2016 and October 3, 2015 is as follows: (Shares in thousands) October 1, 2016 October 3, 2015 Stock Options Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at beginning of period 1,472 $ 23.26 1,397 $ 21.17 Granted 265 29.08 185 36.67 Exercised (167 ) 19.09 (70 ) 17.63 Forfeited (5 ) 33.94 (2 ) 34.93 Outstanding at end of period 1,565 $ 24.66 1,510 $ 23.22 Expected to vest after applying forfeiture rate 1,539 $ 24.53 1,491 $ 23.04 Vested and exercisable at end of period 1,082 $ 20.96 1,144 $ 19.13 A summary of the weighted-average remaining contractual term and aggregate intrinsic value as of October 1, 2016 is as follows: Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (000's) Outstanding at end of period 5.61 years $ 25,360 Expected to vest after applying forfeiture rate 5.56 years $ 25,126 Vested and exercisable at end of period 4.23 years $ 21,494 The total intrinsic value of options exercised during the nine months ended October 1, 2016 and October 3, 2015 was $3.0 million and $1.3 million , respectively. As of October 1, 2016 , there was $1.9 million of total unrecognized compensation cost related to non-vested stock options granted under the 2012 Stock Plan and the 2009 Stock Plan. That cost is expected to be recognized over a weighted-average period of 2.34 years . Stock/Stock Unit Awards: A summary of the Company’s restricted stock/stock unit award activity and related information for the nine months ended October 1, 2016 and October 3, 2015 is as follows: (Shares in thousands) October 1, 2016 October 3, 2015 Restricted Stock/Stock Unit Awards Shares Weighted-Average Grant- Date Fair Value Weighted-Average Grant- Non-vested at beginning of period 510 $ 34.43 554 $ 32.72 Awarded 172 29.45 134 36.28 Vested (174 ) 28.30 (169 ) 30.39 Forfeited (27 ) 34.09 (9 ) 32.31 Non-vested at end of period 481 $ 34.89 510 $ 34.44 As of October 1, 2016 , there was $9.2 million of total unrecognized compensation cost related to non-vested restricted stock/stock unit awards granted under the 2012 Stock Plan and the 2009 Stock Plan. That cost is expected to be recognized over a weighted-average period of 2.38 years .

RESTRUCTURING

RESTRUCTURING	9 Months Ended
	Oct. 01, 2016
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 is transferring 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 are relocating. The realignment began in the third quarter of 2014 and is expected 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 third quarter and nine months ended October 1, 2016 , included in the “Restructuring (income)/expense” line of the Company's condensed consolidated statements of income, are as follows: Third Quarter Ended October 1, 2016 (In millions) Water Systems Fueling Systems Other Consolidated Employee severance $ 0.1 $ — $ — $ 0.1 Equipment relocation — 0.1 — 0.1 Asset write-off (2.0 ) — — (2.0 ) Other 0.1 — — 0.1 Total $ (1.8 ) $ 0.1 $ — $ (1.7 ) Nine Months Ended October 1, 2016 (In millions) Water Systems Fueling Systems Other Consolidated Employee severance $ 0.1 $ — $ — $ 0.1 Equipment relocation — 0.1 — 0.1 Asset write-off (2.0 ) 0.4 — (1.6 ) Other 0.5 — — 0.5 Total $ (1.4 ) $ 0.5 $ — $ (0.9 ) The $2.0 million gain disclosed above within the "asset write-off" caption relates to the sale of a facility in Brazil that was completed during the third quarter of 2016. Restructuring expenses for the third quarter and nine months ended October 3, 2015 were approximately $1.3 million and $2.5 million , primarily for the Water Systems realignment. As of October 1, 2016 , there were no restructuring reserves. As of October 3, 2015 , there were $3.6 million of restructuring reserves. The restructuring reserves were primarily for severance.

SUBSEQUENT EVENT

SUBSEQUENT EVENT	9 Months Ended
	Oct. 01, 2016
Subsequent Events [Abstract]
Subsequent Event	SUBSEQUENT EVENT On October 28, 2016, the Company entered into the Third Amended and Restated Credit Agreement among Franklin Electric Co., Inc., Franklin Electric B.V., a Netherlands private company with limited liability (“Franklin B.V”, and together with Franklin Electric Co., Inc., the “Borrowers”), JPMorgan Chase Bank, N.A. (“JPMorgan”), as administrative agent, and Bank of America, N.A., as Syndication Agent, and the lenders identified therein (the “Third Amended and Restated Credit Agreement”. JPMorgan and Bank of America Merrill Lynch were joint bookrunners and joint lead arrangers. The Third Amended and Restated Credit Agreement extended the maturity date of the Company’s Second Amended and Restated Credit Agreement, as amended (which is referred to in this footnote as the “Previous Credit Agreement”) to October 28, 2021 and increased the commitment amount from $150.0 million to $300.0 million . The Third Amended and Restated Credit Agreement provides that the Borrowers may request an increase in the aggregate commitments by up to $150.0 million (not to exceed a total commitment of $450.0 million ) subject to the conditions contained therein. All of the Company's present and future material domestic subsidiaries unconditionally guaranty all of the Borrowers' obligations under and in connection with the Third Amended and Restated Credit Agreement. Additionally, the Company unconditionally guaranties all of the obligations of Franklin B.V. under the Third Amended and Restated Credit Agreement. Under the Third Amended and Restated Credit Agreement, the Borrowers are required to pay certain fees, including a facility fee of .100% to .275% (depending on the Company's leverage ratio) of the aggregate commitment, which fee is payable quarterly in arrears. The Third Amended and Restated Credit Agreement contains customary affirmative and negative covenants. The affirmative covenants include financial statements, notices of material events, conduct of business, inspection of property, maintenance of insurance, compliance with laws and most favored lender obligations. The affirmative covenants also include financial covenants with a maximum leverage ratio of 3.50 to 1.00 (using net debt in the measure of leverage ratio, whereas the Previous Credit Agreement used gross debt in such measure) and an interest coverage ratio equal to or greater than 3.00 to 1.00 (using EBITDA in the measure, whereas the Previous Credit Agreement used EBIT). Under the Third Amended and Restated Credit Agreement, the priority debt cap is measured as 20 percent of total tangible assets, whereas the Previous Credit Agreement used net equity rather than total tangible assets. The negative covenants include limitations on loans or advances, 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 (which restrictions on sales and transfers of assets were reduced to some degree versus the Previous Credit Agreement). As was the case in the Previous Credit Agreement, the Third Amended and Restated Credit Agreement also contains customary events of defaults (with customary grace periods, as applicable, for certain of those events of default). If an event of default occurs, the Third Amended and Restated Credit Agreement provides that (i) the commitments may be terminated and (ii) the loans then outstanding may be declared due and payable. For certain events of default relating to insolvency, bankruptcy or liquidation, the commitments are automatically terminated and the loans outstanding automatically become due and payable. The full amount of the aggregate commitment may be borrowed as multicurrency loans, in Euros, Japanese Yen, Australian Dollars, Pounds Sterling, Canadian Dollars or any other agreed currency. As in the Previous Credit Agreement, the Third Amended and Restated Credit Agreement also provides for a swingline loan sub-facility of up to $15.0 million (with an additional discretionary amount of up to $15.0 million , which was not included under the Previous Credit Agreement), and a letter of credit subfacility of up to $50.0 million (increased from $25.0 million under the Previous Credit Agreement). Loans may be made either at (i) a Eurocurrency rate based on LIBOR plus an applicable margin of .75% to 1.60% (depending on the Company's leverage ratio) or (ii) an alternative base rate as defined in the Third Amended and Restated Credit Agreement. The Third Amended and Restated Credit Agreement also includes a competitive bid option that permits the Borrowers to request that the lenders provide bids for the interest rate that will apply to specific loans. In addition, on October 28, 2016, the Company entered into (1) First Amendment (the “First Amendment”) to Note Purchase and Private Shelf Agreement dated as of May 27, 2015 (the “New York Life Agreement”) by and among NYL Investors LLC and each of the undersigned holders of notes that are signatories thereto, and (2) Amendment No. 1 (“Amendment No. 1” and together with the First Amendment, the “Private Shelf Amendments”) to Third Amended and Restated Note Purchase and Private Shelf Agreement dated as of May 28, 2015 (the “Prudential Agreement”) by and among the Company and PGIM, Inc. (“Prudential”) and the Prudential affiliates party thereto. The Private Shelf Amendments were intended to make the covenants within the New York Life Agreement and Prudential Agreement consistent with those covenants that were modified in the Third Amended and Restated Credit Agreement as compared to the Previous Credit Agreement. The foregoing description is qualified in its entirety by reference to the Third Amended and Restated Credit Agreement and the Private Shelf Amendments, copies of which are filed as Exhibits 10.2 - 10.4 to this Quarterly Report on Form 10-Q and are incorporated herein by reference.

ACCOUNTING PRONOUNCEMENTS (Poli

ACCOUNTING PRONOUNCEMENTS (Policies)	9 Months Ended
	Oct. 01, 2016
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Pronouncements	Adoption of New Accounting Standards In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . This standard simplifies several aspects of the accounting for employee share-based payment transactions including the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification, and the classification of those taxes paid on the statement of cash flows. This ASU is effective for annual and interim periods beginning after December 15, 2016 with early adoption permitted. The Company early adopted ASU 2016-09 during the second quarter ended July 2, 2016. The primary impact of adoption was the recognition of excess tax benefits or deficiencies in the provision for income taxes rather than paid-in capital for all periods in fiscal year 2016. The Company has elected to continue its current policy of estimating forfeitures rather than recognizing forfeitures when they occur. Under ASU 2016-09, excess income tax benefits from stock-based compensation arrangements are classified as cash flows from operations, rather than as cash flows from financing activities. The Company elected to apply the cash flow presentation requirements prospectively. The standard also clarifies that cash flows related to employee taxes paid by withheld shares should be classified as a financing activity. This provision had no impact to the Company, because these cash flows have historically been presented as financing activities. Early adoption of the standard requires reflected adjustments as of January 3, 2016, the beginning of the annual period that includes the interim period of adoption. As such, previously reported first quarter 2016 results were impacted as follows: (In thousands, except per share amounts) First Quarter Ended April 2, 2016 As previously reported Adjustment As adjusted Income statements: Income tax expense $ 4,955 $ 12 $ 4,967 Net income attributable to Franklin Electric Co., Inc. $ 13,457 $ (12 ) $ 13,445 Basic earnings per share $ 0.28 $ — $ 0.28 Diluted earnings per share $ 0.28 $ — $ 0.28 Diluted weighted average shares outstanding 46,445 60 46,505 Cash flow statements: Net cash from operating activities $ (437 ) $ 53 $ (384 ) Net cash from financing activities $ 3,572 $ (53 ) $ 3,519 Balance sheets: Additional capital $ 219,400 $ 12 $ 219,412 Retained earnings $ 502,512 $ (12 ) $ 502,500 In April 2015, the FASB issued ASU 2015-03, Interest - Imputation of Interest (Subtopic 835-30): 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 instead of a deferred asset. The standard does not change the amortization of debt issuance costs, which will continue to follow the existing accounting guidance. The Company adopted ASU 2015-03 during the first quarter ended April 2, 2016. The retrospective adoption of this ASU required a total of approximately $0.3 million of unamortized debt issuance costs as of year-end 2015 to be reclassified from "Other assets" and "Other current assets" to a direct deduction from "Long-term debt" in the Company's condensed consolidated balance sheet as of January 2, 2016. In addition, there were no impacts to the Company's results of operations, retained earnings, or cash flows in the current or previous interim and annual reporting periods. Accounting Standards Issued But Not Yet Adopted In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842), which supersedes existing guidance on accounting for leases found in Accounting Standards Codification ("ASC") Topic 840. This ASU requires lessees to present right-of-use assets and lease liabilities on the balance sheet for all leases with terms longer than 12 months. The guidance is to be applied using a modified retrospective approach at the beginning of the earliest comparative period in the financial statements and is effective for interim and annual periods beginning after December 15, 2018 with early adoption 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, cash flows, and related disclosures. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . 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. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . ASU 2016-08 clarifies the implementation guidance on principal versus agent considerations. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing. ASU 2016-10 clarifies the implementation guidance on identifying performance obligations. These ASUs are effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted, but not before interim and annual reporting periods beginning after December 15, 2016. Entities have the option of using either a full retrospective or a modified retrospective approach to adopt these standards. The Company is still in the process of analyzing the effect of these new standards, including the transition method, to determine the impact on the Company's consolidated financial position, results of operations, cash flows, and related disclosures.

ACCOUNTING PRONOUNCEMENTS (Tabl

ACCOUNTING PRONOUNCEMENTS (Tables)	9 Months Ended
	Oct. 01, 2016
Accounting Changes and Error Corrections [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	Early adoption of the standard requires reflected adjustments as of January 3, 2016, the beginning of the annual period that includes the interim period of adoption. As such, previously reported first quarter 2016 results were impacted as follows: (In thousands, except per share amounts) First Quarter Ended April 2, 2016 As previously reported Adjustment As adjusted Income statements: Income tax expense $ 4,955 $ 12 $ 4,967 Net income attributable to Franklin Electric Co., Inc. $ 13,457 $ (12 ) $ 13,445 Basic earnings per share $ 0.28 $ — $ 0.28 Diluted earnings per share $ 0.28 $ — $ 0.28 Diluted weighted average shares outstanding 46,445 60 46,505 Cash flow statements: Net cash from operating activities $ (437 ) $ 53 $ (384 ) Net cash from financing activities $ 3,572 $ (53 ) $ 3,519 Balance sheets: Additional capital $ 219,400 $ 12 $ 219,412 Retained earnings $ 502,512 $ (12 ) $ 502,500

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Oct. 01, 2016
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets Measured on Recurring Basis	As of October 1, 2016 and January 2, 2016 , the assets measured at fair value on a recurring basis were as set forth in the table below: (In millions) October 1, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 3.4 $ 3.4 $ — $ — January 2, 2016 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 3.9 $ 3.9 $ — $ —

GOODWILL AND OTHER INTANGIBLE27

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	9 Months Ended
	Oct. 01, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Indefinite-Lived Intangible Assets	The carrying amounts of the Company’s intangible assets are as follows: (In millions) October 1, 2016 January 2, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangibles: Patents $ 7.5 $ (6.4 ) $ 7.4 $ (6.2 ) Technology 7.5 (5.2 ) 7.5 (4.8 ) Customer relationships 135.0 (48.4 ) 132.6 (42.3 ) Software 2.5 (1.8 ) 2.5 (1.7 ) Other 0.3 (0.3 ) 1.0 (1.0 ) Total $ 152.8 $ (62.1 ) $ 151.0 $ (56.0 ) Unamortized intangibles: Trade names 47.6 — 46.4 — Total intangibles $ 200.4 $ (62.1 ) $ 197.4 $ (56.0 )
Schedule of Finite-Lived Intangible Assets	The carrying amounts of the Company’s intangible assets are as follows: (In millions) October 1, 2016 January 2, 2016 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangibles: Patents $ 7.5 $ (6.4 ) $ 7.4 $ (6.2 ) Technology 7.5 (5.2 ) 7.5 (4.8 ) Customer relationships 135.0 (48.4 ) 132.6 (42.3 ) Software 2.5 (1.8 ) 2.5 (1.7 ) Other 0.3 (0.3 ) 1.0 (1.0 ) Total $ 152.8 $ (62.1 ) $ 151.0 $ (56.0 ) Unamortized intangibles: Trade names 47.6 — 46.4 — Total intangibles $ 200.4 $ (62.1 ) $ 197.4 $ (56.0 )
Schedule of Amortization Expense	Amortization expense for each of the five succeeding years is projected as follows: (In millions) 2016 2017 2018 2019 2020 $ 8.6 $ 8.5 $ 8.4 $ 8.3 $ 8.2
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 nine months ended October 1, 2016 , is as follows: (In millions) Water Systems Fueling Systems Consolidated Balance as of January 2, 2016 $ 136.8 $ 63.0 $ 199.8 Acquisitions — 0.8 0.8 Foreign currency translation 1.7 (0.3 ) 1.4 Balance as of October 1, 2016 $ 138.5 $ 63.5 $ 202.0

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	9 Months Ended
	Oct. 01, 2016
Pension Plan
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 third quarters and nine months ended October 1, 2016 and October 3, 2015 : (In millions) Pension Benefits Third Quarter Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ 0.3 $ 0.2 $ 0.8 $ 0.8 Interest cost 1.6 1.9 4.7 5.5 Expected return on assets (2.3 ) (2.4 ) (7.0 ) (7.4 ) Amortization of loss 0.6 0.8 1.9 2.4 Net periodic benefit cost $ 0.2 $ 0.5 $ 0.4 $ 1.3 Settlement cost 0.3 0.3 0.9 0.9 Total net periodic benefit cost $ 0.5 $ 0.8 $ 1.3 $ 2.2
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 third quarters and nine months ended October 1, 2016 and October 3, 2015 , respectively: (In millions) Other Benefits Third Quarter Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Service cost $ — $ — $ — $ — Interest cost 0.1 0.1 0.3 0.3 Expected return on assets — — — — Amortization of prior service cost 0.1 0.1 0.3 0.3 Amortization of loss — 0.1 — 0.3 Net periodic benefit cost $ 0.2 $ 0.3 $ 0.6 $ 0.9 Settlement cost — — — — Total net periodic benefit cost $ 0.2 $ 0.3 $ 0.6 $ 0.9

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Oct. 01, 2016
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Debt consisted of the following: (In millions) October 1, 2016 January 2, 2016 Prudential Agreement $ 90.0 $ 120.0 Tax increment financing debt 21.8 22.8 New York Life 75.0 75.0 Capital leases 0.1 0.1 Foreign subsidiary debt 3.5 3.1 Less: unamortized debt issuance costs (0.3 ) (0.3 ) $ 190.1 $ 220.7 Less: current maturities (33.4 ) (32.9 ) Long-term debt $ 156.7 $ 187.8
Schedule of Long-term Debt Payments	Debt outstanding, excluding unamortized debt issuance costs, at October 1, 2016 matures as follows: (In millions) Total Year 1 Year 2 Year 3 Year 4 Year 5 More Than 5 Years Debt $ 190.3 $ 33.4 $ 31.1 $ 31.3 $ 1.3 $ 1.2 $ 92.0 Capital leases 0.1 — 0.1 — — — — $ 190.4 $ 33.4 $ 31.2 $ 31.3 $ 1.3 $ 1.2 $ 92.0

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Oct. 01, 2016
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: Third Quarter Ended Nine Months Ended (In millions, except per share amounts) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 23.7 $ 20.8 $ 61.1 $ 56.8 Less: Undistributed earnings allocated to participating securities 0.2 0.2 0.6 0.5 Less: Undistributed earnings allocated to redeemable noncontrolling interest 0.1 0.2 0.8 0.4 $ 23.4 $ 20.4 $ 59.7 $ 55.9 Denominator: Basic Weighted average common shares 46.3 46.9 46.2 47.4 Diluted Effect of dilutive securities: Non-participating employee stock options and performance awards 0.6 0.4 0.5 0.4 Adjusted weighted average common shares 46.9 47.3 46.7 47.8 Basic earnings per share $ 0.51 $ 0.44 $ 1.29 $ 1.18 Diluted earnings per share $ 0.50 $ 0.43 $ 1.28 $ 1.17 Anti-dilutive stock options 0.2 0.5 0.6 0.3

EQUITY ROLL FORWARD (Tables)

EQUITY ROLL FORWARD (Tables)	9 Months Ended
	Oct. 01, 2016
Equity [Abstract]
Schedule of Stockholders' Equity	The schedule below sets forth equity changes in the nine months ended October 1, 2016 : (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 2, 2016 $ 4,622 $ 216,472 $ 498,214 $ (51,558 ) $ (110,050 ) $ 1,765 $ 559,465 $ 6,856 Net income 61,103 458 61,561 (47 ) Adjustment to Impo redemption value (834 ) (834 ) 834 Dividends on common stock (13,810 ) (13,810 ) Common stock issued 16 3,176 3,192 Common stock repurchased (21 ) (6,172 ) (6,193 ) Share-based compensation 13 5,899 5,912 Noncontrolling dividend (673 ) (673 ) Currency translation adjustment 12,098 44 12,142 (46 ) Pension liability, net of tax 1,429 1,429 Balance as of October 1, 2016 $ 4,630 $ 225,547 $ 538,501 $ (50,129 ) $ (97,952 ) $ 1,594 $ 622,191 $ 7,597

ACCUMULATED OTHER COMPREHENSI32

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables)	9 Months Ended
	Oct. 01, 2016
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	Changes in accumulated other comprehensive income/(loss) by component for the nine months ended October 1, 2016 and October 3, 2015 , are summarized below: (In millions) For the nine months ended October 1, 2016: Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments Total Balance as of January 2, 2016 $ (110.1 ) $ (51.5 ) $ (161.6 ) Other comprehensive income/(loss) before reclassifications: Pre-tax income/(loss) 12.1 — 12.1 Income tax (expense)/benefit — — — Other comprehensive income/(loss) before reclassifications, net of income taxes 12.1 — 12.1 Amounts reclassified from accumulated other comprehensive income/(loss): Pre-tax income/(loss) — 2.2 (1) 2.2 Income tax (expense)/benefit — (0.8 ) (0.8 ) Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes — 1.4 1.4 Net current period other comprehensive income/(loss), net of income taxes 12.1 1.4 13.5 Less: Other comprehensive income/(loss) attributable to noncontrolling interests — — — Balance as of October 1, 2016 $ (98.0 ) $ (50.1 ) $ (148.1 ) For the nine months ended October 3, 2015: Balance as of January 3, 2015 $ (51.8 ) $ (56.1 ) $ (107.9 ) Other comprehensive income/(loss) before reclassifications: Pre-tax income/(loss) (54.4 ) — (54.4 ) Income tax (expense)/benefit — — — Other comprehensive income/(loss) before reclassifications, net of income taxes (54.4 ) — (54.4 ) Amounts reclassified from accumulated other comprehensive income/(loss): Pre-tax income/(loss) — 2.9 (1) 2.9 Income tax (expense)/benefit — (1.0 ) (1.0 ) Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes — 1.9 1.9 Net current period other comprehensive income/(loss), net of income taxes (54.4 ) 1.9 (52.5 ) Less: Other comprehensive income/(loss) attributable to noncontrolling interests (0.6 ) — (0.6 ) Balance as of October 3, 2015 $ (105.6 ) $ (54.2 ) $ (159.8 ) (1) This accumulated other comprehensive income/(loss) component is included in the computation of net periodic pension cost (refer to Note 7 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)	9 Months Ended
	Oct. 01, 2016
Segment Reporting [Abstract]
Schedule of Financial Information by Reportable Business Segment	Financial information by reportable business segment is included in the following summary: Third Quarter Ended Nine Months Ended (In millions) October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Net sales to external customers Water Systems $ 182.0 $ 173.5 $ 545.4 $ 544.3 Fueling Systems 57.8 59.0 164.9 161.3 Other — — — — Consolidated $ 239.8 $ 232.5 $ 710.3 $ 705.6 Third Quarter Ended Nine Months Ended October 1, 2016 October 3, 2015 October 1, 2016 October 3, 2015 Operating income/(loss) Water Systems $ 30.0 $ 23.1 $ 85.6 $ 66.8 Fueling Systems 15.2 15.4 40.9 37.4 Other (13.4 ) (10.7 ) (40.9 ) (37.4 ) Consolidated $ 31.8 $ 27.8 $ 85.6 $ 66.8 October 1, 2016 January 2, 2016 Total assets Water Systems $ 706.4 $ 677.6 Fueling Systems 250.1 248.5 Other 88.1 70.0 Consolidated $ 1,044.6 $ 996.1

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	9 Months Ended
	Oct. 01, 2016
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 nine months ended October 1, 2016 , are as follows: (In millions) Balance as of January 2, 2016 $ 9.3 Accruals related to product warranties 4.6 Reductions for payments made (5.3 ) Balance as of October 1, 2016 $ 8.6

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	9 Months Ended
	Oct. 01, 2016
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 nine months ended October 1, 2016 and October 3, 2015 are as follows: October 1, 2016 October 3, 2015 Risk-free interest rate 1.21 % 1.59 % Dividend yield 1.32 % 0.95 % Volatility factor 0.377 0.379 Expected term 5.5 years 5.5 years Forfeiture rate 3.77 % 3.67 %
Schedule of Stock Option Plans Activity	A summary of the Company’s outstanding stock option activity and related information for the nine months ended October 1, 2016 and October 3, 2015 is as follows: (Shares in thousands) October 1, 2016 October 3, 2015 Stock Options Shares Weighted-Average Exercise Price Shares Weighted-Average Exercise Price Outstanding at beginning of period 1,472 $ 23.26 1,397 $ 21.17 Granted 265 29.08 185 36.67 Exercised (167 ) 19.09 (70 ) 17.63 Forfeited (5 ) 33.94 (2 ) 34.93 Outstanding at end of period 1,565 $ 24.66 1,510 $ 23.22 Expected to vest after applying forfeiture rate 1,539 $ 24.53 1,491 $ 23.04 Vested and exercisable at end of period 1,082 $ 20.96 1,144 $ 19.13
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 October 1, 2016 is as follows: Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (000's) Outstanding at end of period 5.61 years $ 25,360 Expected to vest after applying forfeiture rate 5.56 years $ 25,126 Vested and exercisable at end of period 4.23 years $ 21,494
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 nine months ended October 1, 2016 and October 3, 2015 is as follows: (Shares in thousands) October 1, 2016 October 3, 2015 Restricted Stock/Stock Unit Awards Shares Weighted-Average Grant- Date Fair Value Weighted-Average Grant- Non-vested at beginning of period 510 $ 34.43 554 $ 32.72 Awarded 172 29.45 134 36.28 Vested (174 ) 28.30 (169 ) 30.39 Forfeited (27 ) 34.09 (9 ) 32.31 Non-vested at end of period 481 $ 34.89 510 $ 34.44

RESTRUCTURING (Tables)

RESTRUCTURING (Tables)	9 Months Ended
	Oct. 01, 2016
Restructuring and Related Activities [Abstract]
Schedule of Restructuring Cost Incurred, Included in Restructuring Expense	Costs incurred in the third quarter and nine months ended October 1, 2016 , included in the “Restructuring (income)/expense” line of the Company's condensed consolidated statements of income, are as follows: Third Quarter Ended October 1, 2016 (In millions) Water Systems Fueling Systems Other Consolidated Employee severance $ 0.1 $ — $ — $ 0.1 Equipment relocation — 0.1 — 0.1 Asset write-off (2.0 ) — — (2.0 ) Other 0.1 — — 0.1 Total $ (1.8 ) $ 0.1 $ — $ (1.7 ) Nine Months Ended October 1, 2016 (In millions) Water Systems Fueling Systems Other Consolidated Employee severance $ 0.1 $ — $ — $ 0.1 Equipment relocation — 0.1 — 0.1 Asset write-off (2.0 ) 0.4 — (1.6 ) Other 0.5 — — 0.5 Total $ (1.4 ) $ 0.5 $ — $ (0.9 )

ACCOUNTING PRONOUNCEMENTS (Deta

ACCOUNTING PRONOUNCEMENTS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended			9 Months Ended
	Oct. 01, 2016	Apr. 02, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015	Jan. 02, 2016
New Accounting Pronouncements or Change in Accounting Principle
Income tax expense	$ 7,926		$ 5,656	$ 20,840	$ 7,634
Net income attributable to Franklin Electric Co., Inc.	$ 23,664		$ 20,825	$ 61,103	$ 56,784
Basic earnings per share (in dollars per share)	$ 0.51		$ 0.44	$ 1.29	$ 1.18
Diluted earnings per share (in dollars per share)	$ 0.50		$ 0.43	$ 1.28	$ 1.17
Diluted weighted average shares outstanding	46,900		47,300	46,700	47,800
Net cash from operating activities				$ 70,865	$ 60,341
Net cash from financing activities				(48,110)	$ (10,077)
Additional capital	$ 225,547			225,547		$ 216,472
Retained earnings	538,501			538,501		498,214
Debt issuance costs, net	$ 300			$ 300		300
Accounting Standards Update 2015-03 | Other assets and other current assets
New Accounting Pronouncements or Change in Accounting Principle
Debt issuance costs, net						(300)
Accounting Standards Update 2015-03 | Long-term debt
New Accounting Pronouncements or Change in Accounting Principle
Debt issuance costs, net						$ 300
Adjustments for new accounting principle, early adoption
New Accounting Pronouncements or Change in Accounting Principle
Income tax expense		$ 4,967
Net income attributable to Franklin Electric Co., Inc.		$ 13,445
Basic earnings per share (in dollars per share)		$ 0.28
Diluted earnings per share (in dollars per share)		$ 0.28
Diluted weighted average shares outstanding		46,505
Net cash from operating activities		$ (384)
Net cash from financing activities		3,519
Additional capital		219,412
Retained earnings		502,500
Adjustments for new accounting principle, early adoption | As previously reported
New Accounting Pronouncements or Change in Accounting Principle
Income tax expense		4,955
Net income attributable to Franklin Electric Co., Inc.		$ 13,457
Basic earnings per share (in dollars per share)		$ 0.28
Diluted earnings per share (in dollars per share)		$ 0.28
Diluted weighted average shares outstanding		46,445
Net cash from operating activities		$ (437)
Net cash from financing activities		3,572
Additional capital		219,400
Retained earnings		502,512
Adjustments for new accounting principle, early adoption | Adjustment
New Accounting Pronouncements or Change in Accounting Principle
Income tax expense		12
Net income attributable to Franklin Electric Co., Inc.		$ (12)
Basic earnings per share (in dollars per share)		$ 0
Diluted earnings per share (in dollars per share)		$ 0
Diluted weighted average shares outstanding		60
Net cash from operating activities		$ 53
Net cash from financing activities		(53)
Additional capital		12
Retained earnings		$ (12)

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Asset held for sale	$ 0	$ 1,613
Recurring Basis
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	3,400	3,900
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	3,400	3,900
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
Fair value | Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Debt	194,000	225,000
Carrying value
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Debt	$ 190,100	$ 220,700

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - Share swap transaction agreement - Not Designated as Hedging Instrument $ in Millions	3 Months Ended		9 Months Ended
	Oct. 01, 2016USD ($)shares	Oct. 03, 2015USD ($)	Oct. 01, 2016USD ($)shares	Oct. 03, 2015USD ($)
Derivative
Derivative cancellable written notice term			30 days
Derivative notional amount (in shares) | shares	205,000		205,000
Selling, general, and administrative expenses
Derivative
Gain on derivative	$ 1.5		$ 2.6
Loss on derivative		$ 0.9		$ 1.9

GOODWILL AND OTHER INTANGIBLE40

GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Millions	Oct. 01, 2016	Jan. 02, 2016
Intangible Assets
Gross carrying amount, amortized intangibles	$ 152.8	$ 151
Accumulated amortization	(62.1)	(56)
Gross carrying amount, total intangibles	200.4	197.4
Patents
Intangible Assets
Gross carrying amount, amortized intangibles	7.5	7.4
Accumulated amortization	(6.4)	(6.2)
Technology
Intangible Assets
Gross carrying amount, amortized intangibles	7.5	7.5
Accumulated amortization	(5.2)	(4.8)
Customer Relationships
Intangible Assets
Gross carrying amount, amortized intangibles	135	132.6
Accumulated amortization	(48.4)	(42.3)
Software
Intangible Assets
Gross carrying amount, amortized intangibles	2.5	2.5
Accumulated amortization	(1.8)	(1.7)
Other
Intangible Assets
Gross carrying amount, amortized intangibles	0.3	1
Accumulated amortization	(0.3)	(1)
Trade Names
Intangible Assets
Gross carrying amount, unamortized intangibles	$ 47.6	$ 46.4

GOODWILL AND OTHER INTANGIBLE41

GOODWILL AND OTHER INTANGIBLE ASSETS (Future Amortization) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
Amortization expense, intangible assets	$ 2.2	$ 2.1	$ 6.3	$ 6.5
2,016	8.6		8.6
2,017	8.5		8.5
2,018	8.4		8.4
2,019	8.3		8.3
2,020	$ 8.2		$ 8.2

GOODWILL AND OTHER INTANGIBLE42

GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands	9 Months Ended
	Oct. 01, 2016USD ($)
Goodwill
Goodwill, beginning balance	$ 199,847
Acquisitions	800
Foreign currency translation	1,400
Goodwill, ending balance	202,037
Water Systems
Goodwill
Goodwill, beginning balance	136,800
Acquisitions	0
Foreign currency translation	1,700
Goodwill, ending balance	138,500
Fueling Systems
Goodwill
Goodwill, beginning balance	63,000
Acquisitions	800
Foreign currency translation	(300)
Goodwill, ending balance	$ 63,500

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) $ in Millions	3 Months Ended		9 Months Ended
	Oct. 01, 2016USD ($)Pension_Plan	Oct. 03, 2015USD ($)	Oct. 01, 2016USD ($)Pension_Plan	Oct. 03, 2015USD ($)
Net Periodic Benefit Cost and Other Benefit Cost
Company contributions			$ 2.1
Pension Plan
Net Periodic Benefit Cost
Service cost	$ 0.3	$ 0.2	0.8	$ 0.8
Interest cost	1.6	1.9	4.7	5.5
Expected return on assets	(2.3)	(2.4)	(7)	(7.4)
Amortization of loss	0.6	0.8	1.9	2.4
Net periodic benefit cost	0.2	0.5	0.4	1.3
Settlement cost	0.3	0.3	0.9	0.9
Total net periodic benefit cost	$ 0.5	0.8	$ 1.3	2.2
Domestic Pension Plans
Net Periodic Benefit Cost and Other Benefit Cost
Number of pension plans (in ones) | Pension_Plan	2		2
German Pension Plans
Net Periodic Benefit Cost and Other Benefit Cost
Number of pension plans (in ones) | Pension_Plan	3		3
Other Benefits
Net Periodic Benefit Cost
Service cost	$ 0	0	$ 0	0
Interest cost	0.1	0.1	0.3	0.3
Expected return on assets	0	0	0	0
Amortization of prior service cost	0.1	0.1	0.3	0.3
Amortization of loss	0	0.1	0	0.3
Net periodic benefit cost	0.2	0.3	0.6	0.9
Settlement cost	0	0	0	0
Total net periodic benefit cost	$ 0.2	$ 0.3	$ 0.6	$ 0.9

INCOME TAXES (Details)

INCOME TAXES (Details)	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Income Tax Disclosure [Abstract]
Effective tax rate	25.30%	11.70%

DEBT (Details)

DEBT (Details) - USD ($) $ in Thousands	Oct. 01, 2016	Jan. 02, 2016
Debt Instrument
Capital leases	$ 100	$ 100
Less: unamortized debt issuance costs	(300)	(300)
Total debt and capital leases	190,100	220,700
Less: current maturities	(33,418)	(32,946)
Long-term debt	156,712	187,806
Long-term debt	190,300
Prudential Agreement
Debt Instrument
Long-term debt	90,000	120,000
Tax increment financing debt
Debt Instrument
Long-term debt	21,800	22,800
New York Life
Debt Instrument
Long-term debt	75,000	75,000
Foreign subsidiary debt
Debt Instrument
Long-term debt	$ 3,500	$ 3,100

DEBT (Debt Payments Expected to

DEBT (Debt Payments Expected to be Paid) (Details) - USD ($) $ in Millions	Oct. 01, 2016	Jan. 02, 2016
Long-term Debt, by Rolling Maturity
Total debt	$ 190.3
Year 1	33.4
Year 2	31.1
Year 3	31.3
Year 4	1.3
Year 5	1.2
More than 5 years	92
Capital Leases, Future Minimum Payments Due, Rolling Maturity
Total capital leases	0.1	$ 0.1
Year 1	0
Year 2	0.1
Year 3	0
Year 4	0
Year 5	0
More than 5 years	0
Long-term Debt and Capital Lease Obligations, Rolling Maturities
Total debt and capital leases	190.4
Year 1	33.4
Year 2	31.2
Year 3	31.3
Year 4	1.3
Year 5	1.2
More than 5 years	$ 92

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Numerator:
Net income attributable to Franklin Electric Co., Inc. (in dollars)	$ 23,664	$ 20,825	$ 61,103	$ 56,784
Less: Undistributed earnings allocated to participating securities (in dollars)	200	200	600	500
Less: Undistributed earnings allocated to redeemable noncontrolling interest (in dollars)	100	200	800	400
Net income attributable to Franklin Electric Co., Inc. excluding undistributed earnings (in dollars)	$ 23,400	$ 20,400	$ 59,700	$ 55,900
Basic
Weighted average common shares (in shares)	46.3	46.9	46.2	47.4
Effect of dilutive securities:
Non-participating employee stock options and performance awards (in shares)	0.6	0.4	0.5	0.4
Adjusted weighted average common shares (in shares)	46.9	47.3	46.7	47.8
Basic earnings per share (in dollars per share)	$ 0.51	$ 0.44	$ 1.29	$ 1.18
Diluted earnings per share (in dollars per share)	$ 0.50	$ 0.43	$ 1.28	$ 1.17
Anti-dilutive stock options (in shares)	0.2	0.5	0.6	0.3

EQUITY ROLL FORWARD (Details)

EQUITY ROLL FORWARD (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			$ 559,465
Net income	$ 23,747	$ 21,026	61,514	$ 57,440
Adjustment to Impo redemption value			(834)
Dividends on common stock			(13,810)
Common stock issued			3,192
Common stock repurchased			(6,193)
Share-based compensation			5,912
Noncontrolling dividend			(673)
Currency translation adjustment			12,142
Pension liability, net of tax			1,429
Equity, ending balance	622,191		622,191
Increase (Decrease) in Temporary Equity
Temporary equity, beginning balance			6,856
Net income			(47)
Adjustment to Impo redemption value			834
Currency translation adjustment			(46)
Temporary equity, ending balance	7,597		7,597
Common Stock
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			4,622
Common stock issued			16
Common stock repurchased			(21)
Share-based compensation			13
Equity, ending balance	4,630		4,630
Additional Paid in Capital
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			216,472
Common stock issued			3,176
Share-based compensation			5,899
Equity, ending balance	225,547		225,547
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			498,214
Net income			61,103
Adjustment to Impo redemption value			(834)
Dividends on common stock			(13,810)
Common stock repurchased			(6,172)
Equity, ending balance	538,501		538,501
Minimum Pension Liability
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			(51,558)
Pension liability, net of tax			1,429
Equity, ending balance	(50,129)		(50,129)
Cumulative Translation Adjustment
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			(110,050)
Currency translation adjustment			12,098
Equity, ending balance	(97,952)		(97,952)
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			1,765
Net income			458
Noncontrolling dividend			(673)
Currency translation adjustment			44
Equity, ending balance	$ 1,594		1,594
Total Equity
Increase (Decrease) in Stockholders' Equity
Net income			$ 61,561

ACCUMULATED OTHER COMPREHENSI49

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Accumulated Other Comprehensive Income/(Loss)
Beginning balance			$ (161,608)	$ (107,900)
Pre-tax income/(loss)			12,100	(54,400)
Income tax (expense)/benefit			0	0
Other comprehensive income/(loss) before reclassifications, net of income taxes			12,100	(54,400)
Pre-tax income/(loss)			2,200	2,900
Income tax (expense)/benefit			(800)	(1,000)
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes			1,400	1,900
Net current period other comprehensive income/(loss), net of income taxes	$ (1,361)	$ (25,650)	13,525	(52,537)
Less: Other comprehensive income/(loss) attributable to noncontrolling interests			0	(600)
Ending balance	(148,081)	(159,800)	(148,081)	(159,800)
Foreign Currency Translation Adjustments - Beginning & Ending Balances
Accumulated Other Comprehensive Income/(Loss)
Beginning balance			(110,100)	(51,800)
Ending balance	(98,000)	(105,600)	(98,000)	(105,600)
Foreign Currency Translation Adjustments
Accumulated Other Comprehensive Income/(Loss)
Pre-tax income/(loss)			12,100	(54,400)
Income tax (expense)/benefit			0	0
Other comprehensive income/(loss) before reclassifications, net of income taxes			12,100	(54,400)
Pre-tax income/(loss)			0	0
Income tax (expense)/benefit			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			12,100	(54,400)
Less: Other comprehensive income/(loss) attributable to noncontrolling interests			0	(600)
Pension and Postretirement Plan Benefit Adjustments - Beginning & Ending Balances
Accumulated Other Comprehensive Income/(Loss)
Beginning balance			(51,500)	(56,100)
Ending balance	$ (50,100)	$ (54,200)	(50,100)	(54,200)
Pension and Postretirement Plan Benefit Adjustments
Accumulated Other Comprehensive Income/(Loss)
Pre-tax income/(loss)			0	0
Income tax (expense)/benefit			0	0
Other comprehensive income/(loss) before reclassifications, net of income taxes			0	0
Pre-tax income/(loss)			2,200	2,900
Income tax (expense)/benefit			(800)	(1,000)
Amounts reclassified from accumulated other comprehensive income/(loss), net of income taxes			1,400	1,900
Net current period other comprehensive income/(loss), net of income taxes			1,400	1,900
Less: Other comprehensive income/(loss) attributable to noncontrolling interests			$ 0	$ 0

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015	Jan. 02, 2016
Segment Reporting Information
Net sales to external customers	$ 239,755	$ 232,485	$ 710,266	$ 705,640
Operating income/(loss)	31,811	27,766	85,561	66,805
Total assets	1,044,617		1,044,617		$ 996,111
Operating Segments | Water Systems
Segment Reporting Information
Net sales to external customers	182,000	173,500	545,400	544,300
Operating income/(loss)	30,000	23,100	85,600	66,800
Total assets	706,400		706,400		677,600
Operating Segments | Fueling Systems
Segment Reporting Information
Net sales to external customers	57,800	59,000	164,900	161,300
Operating income/(loss)	15,200	15,400	40,900	37,400
Total assets	250,100		250,100		248,500
Corporate and Eliminations
Segment Reporting Information
Net sales to external customers	0	0	0	0
Operating income/(loss)	(13,400)	$ (10,700)	(40,900)	$ (37,400)
Total assets	$ 88,100		$ 88,100		$ 70,000

COMMITMENTS AND CONTINGENCIES51

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	9 Months Ended
	Oct. 01, 2016USD ($)
Commitments
Purchase obligations	$ 20.3
Changes in the Carrying Amount of the Warranty Accrual
Beginning balance	9.3
Accruals related to product warranties	4.6
Reductions for payments made	(5.3)
Ending balance	$ 8.6
Minimum
Product Warranty Liability
Standard warranty obligation term (in years)	2 years
Standard installation warranty obligation term (in years)	1 year
Maximum
Product Warranty Liability
Standard warranty obligation term (in years)	5 years
Standard installation warranty obligation term (in years)	5 years

SHARE-BASED COMPENSATION (Share

SHARE-BASED COMPENSATION (Shares Authorized) (Details)	Oct. 01, 2016shares
2012 Stock Plan
Share-based Compensation
Number of shares authorized	2,400,000
2012 Stock Plan | Options
Share-based Compensation
Number of shares authorized	1,680,000
2012 Stock Plan | Restricted Stock and Restricted Stock Units
Share-based Compensation
Number of shares authorized	720,000
2009 Stock Plan
Share-based Compensation
Number of shares authorized	4,400,000
2009 Stock Plan | Options
Share-based Compensation
Number of shares authorized	3,200,000
2009 Stock Plan | Awards
Share-based Compensation
Number of shares authorized	1,200,000

SHARE-BASED COMPENSATION (Valua

SHARE-BASED COMPENSATION (Valuation Assumptions Used) (Details)	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Risk-free interest rate	1.21%	1.59%
Dividend yield	1.32%	0.95%
Volatility factor	37.70%	37.90%
Expected term	5 years 6 months	5 years 6 months
Forfeiture rate	3.77%	3.67%

SHARE-BASED COMPENSATION (Stock

SHARE-BASED COMPENSATION (Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015
Share-based Compensation
Intrinsic value of options exercised			$ 3,000	$ 1,300
Stock Option Plans Activity and Related Information, Shares
Outstanding beginning of period, shares			1,472,000	1,397,000
Granted, shares	0	0	265,000	185,000
Exercised, shares			(167,000)	(70,000)
Forfeited, shares			(5,000)	(2,000)
Outstanding end of period, shares	1,565,000	1,510,000	1,565,000	1,510,000
Expected to vest after applying forfeiture rate, shares	1,539,000	1,491,000	1,539,000	1,491,000
Vested and exercisable end of period, shares	1,082,000	1,144,000	1,082,000	1,144,000
Stock Option Plans Activity and Related Information, Weighted Average Exercise Price
Outstanding beginning of period, weighted-average exercise price			$ 23.26	$ 21.17
Granted, weighted-average exercise price			29.08	36.67
Exercised, weighted-average exercise price			19.09	17.63
Forfeited, weighted-average exercise price			33.94	34.93
Outstanding end of period, weighted-average exercise price	$ 24.66	$ 23.22	24.66	23.22
Expected to vest after applying forfeiture rate, weighted-average exercise price	24.53	23.04	24.53	23.04
Vested and exercisable end of period, weighted-average exercise price	$ 20.96	$ 19.13	$ 20.96	$ 19.13
Summary of Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value
Outstanding at end of period, weighted-average remaining contractual term			5 years 7 months 9 days
Outstanding at end of period, aggregate intrinsic value	$ 25,360		$ 25,360
Expected to vest after applying forfeiture rate, weighted-average remaining contractual term			5 years 6 months 21 days
Expected to vest after applying forfeiture rate, aggregate intrinsic value	25,126		$ 25,126
Vested and exercisable end of period, weighted-average remaining contractual term			4 years 2 months 23 days
Vested and exercisable end of period, aggregate intrinsic value	21,494		$ 21,494
Options
Share-based Compensation
Total unrecognized compensation cost related to nonvested share-based compensation	$ 1,900		$ 1,900
Total unrecognized compensation cost, recognized over a weighted-average period			2 years 4 months 2 days

SHARE-BASED COMPENSATION (Sto55

SHARE-BASED COMPENSATION (Stock/Stock Unit Award Activity) (Details) - Restricted Stock and Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015
Share-based Compensation
Total unrecognized compensation cost related to nonvested share-based compensation	$ 9.2
Total unrecognized compensation cost, recognized over a weighted-average period	2 years 4 months 17 days
Stock/Stock Unit Award Activity and Related Information, Shares
Non-vested at beginning of period, shares	510	554
Awarded, shares	172	134
Vested, shares	(174)	(169)
Forfeited, shares	(27)	(9)
Non-vested at end of period, shares	481	510
Stock/Stock Unit Award Activity and Related Information, Weighted Average Grant Date Fair Value
Non-vested at beginning of period, weighted-average grant date fair value	$ 34.43	$ 32.72
Awarded, weighted-average grant date fair value	29.45	36.28
Vested, weighted-average grant date fair value	28.30	30.39
Forfeited, weighted-average grant date fair value	34.09	32.31
Non-vested at the end of period, weighted-average grant date fair value	$ 34.89	$ 34.44

RESTRUCTURING (Details)

RESTRUCTURING (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Oct. 01, 2016	Oct. 03, 2015	Oct. 01, 2016	Oct. 03, 2015	Jul. 01, 2014
Restructuring Cost and Reserve
Restructuring and related cost, expected cost					$ 19,400
Restructuring (income)/expense	$ (1,715)	$ 1,304	$ (850)	$ 2,525
Restructuring reserves	0	$ 3,600	0	$ 3,600
Employee Severance
Restructuring Cost and Reserve
Restructuring (income)/expense	100		100
Equipment relocation
Restructuring Cost and Reserve
Restructuring (income)/expense	100		100
Asset write-off
Restructuring Cost and Reserve
Restructuring (income)/expense	(2,000)		(1,600)
Other
Restructuring Cost and Reserve
Restructuring (income)/expense	100		500
Operating Segments | Water Systems
Restructuring Cost and Reserve
Restructuring (income)/expense	(1,800)		(1,400)
Operating Segments | Water Systems | Employee Severance
Restructuring Cost and Reserve
Restructuring (income)/expense	100		100
Operating Segments | Water Systems | Equipment relocation
Restructuring Cost and Reserve
Restructuring (income)/expense	0		0
Operating Segments | Water Systems | Asset write-off
Restructuring Cost and Reserve
Restructuring (income)/expense	(2,000)		(2,000)
Operating Segments | Water Systems | Other
Restructuring Cost and Reserve
Restructuring (income)/expense	100		500
Operating Segments | Fueling Systems
Restructuring Cost and Reserve
Restructuring (income)/expense	100		500
Operating Segments | Fueling Systems | Employee Severance
Restructuring Cost and Reserve
Restructuring (income)/expense	0		0
Operating Segments | Fueling Systems | Equipment relocation
Restructuring Cost and Reserve
Restructuring (income)/expense	100		100
Operating Segments | Fueling Systems | Asset write-off
Restructuring Cost and Reserve
Restructuring (income)/expense	0		400
Operating Segments | Fueling Systems | Other
Restructuring Cost and Reserve
Restructuring (income)/expense	0		0
Corporate and Eliminations
Restructuring Cost and Reserve
Restructuring (income)/expense	0		0
Corporate and Eliminations | Employee Severance
Restructuring Cost and Reserve
Restructuring (income)/expense	0		0
Corporate and Eliminations | Equipment relocation
Restructuring Cost and Reserve
Restructuring (income)/expense	0		0
Corporate and Eliminations | Asset write-off
Restructuring Cost and Reserve
Restructuring (income)/expense	0		0
Corporate and Eliminations | Other
Restructuring Cost and Reserve
Restructuring (income)/expense	$ 0		$ 0

SUBSEQUENT EVENT (Details)

SUBSEQUENT EVENT (Details) - Subsequent Event $ in Millions	Oct. 28, 2016USD ($)	Oct. 27, 2016USD ($)
Subsequent Event
Total leverage ratio, maximum	3.50
Total interest ratio, maximum	3
Line of Credit
Subsequent Event
Current borrowing capacity	$ 300	$ 150
Increase request amount available	150
Maximum borrowing capacity	$ 450
Debt instrument, covenant description	0.2
Swingline Loan
Subsequent Event
Current borrowing capacity	$ 15
Letter of Credit
Subsequent Event
Maximum borrowing capacity	$ 50	$ 25
Minimum | Line of Credit
Subsequent Event
Facility fee (as a percentage)	0.10%
Interest rate margin spread	1.00%
Maximum | Line of Credit
Subsequent Event
Facility fee (as a percentage)	0.275%
Interest rate margin spread	2.00%