COVER
COVER - $ / shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 0-362 | |
Entity Registrant Name | FRANKLIN ELECTRIC CO., INC. | |
Entity Incorporation, State or Country Code | IN | |
Entity Tax Identification Number | 35-0827455 | |
Entity Address, Address Line One | 9255 Coverdale Road | |
Entity Address, City or Town | Fort Wayne, | |
Entity Address, State or Province | IN | |
Entity Address, Postal Zip Code | 46809 | |
City Area Code | 260 | |
Local Phone Number | 824-2900 | |
Entity Information, Former Legal or Registered Name | Not Applicable | |
Title of 12(b) Security | Common Stock, $0.10 par value | |
Trading Symbol | FELE | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Listing, Par Value Per Share | $ 0.10 | |
Entity Common Stock, Shares Outstanding | 46,190,670 | |
Entity Central Index Key | 0000038725 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | ||||
Net sales | $ 308,281 | $ 355,340 | $ 575,035 | $ 646,055 |
Cost of sales | 201,159 | 235,622 | 377,596 | 436,831 |
Gross profit | 107,122 | 119,718 | 197,439 | 209,224 |
Selling, general, and administrative expenses | 72,314 | 75,782 | 147,937 | 152,081 |
Restructuring expense | 875 | 245 | 1,748 | 1,331 |
Operating income | 33,933 | 43,691 | 47,754 | 55,812 |
Interest expense | (1,132) | (2,295) | (2,366) | (4,637) |
Other expense, net | (397) | (292) | (599) | (53) |
Foreign exchange income/(expense) | (906) | (505) | 56 | 84 |
Income before income taxes | 31,498 | 40,599 | 44,845 | 51,206 |
Income tax expense | 6,696 | 7,787 | 9,251 | 9,267 |
Net income | 24,802 | 32,812 | 35,594 | 41,939 |
Less: Net (income) attributable to noncontrolling interests | (151) | (67) | (300) | (138) |
Net income attributable to Franklin Electric Co., Inc. | $ 24,651 | $ 32,745 | $ 35,294 | $ 41,801 |
Income per share: | ||||
Basic earnings per share (in dollars per share) | $ 0.53 | $ 0.70 | $ 0.76 | $ 0.89 |
Diluted earnings per share (in dollars per share) | $ 0.52 | $ 0.70 | $ 0.75 | $ 0.89 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 24,802 | $ 32,812 | $ 35,594 | $ 41,939 |
Other comprehensive income/(loss), before tax: | ||||
Foreign currency translation adjustments | 1,977 | 1,362 | (35,745) | (1,448) |
Employee benefit plan activity | 901 | 649 | 1,802 | 1,299 |
Other comprehensive income/(loss) | 2,878 | 2,011 | (33,943) | (149) |
Income tax expense related to items of other comprehensive income/(loss) | (185) | (141) | (370) | (282) |
Other comprehensive income/(loss), net of tax | 2,693 | 1,870 | (34,313) | (431) |
Comprehensive income | 27,495 | 34,682 | 1,281 | 41,508 |
Less: Comprehensive income attributable to noncontrolling interests | 173 | 126 | 327 | 158 |
Comprehensive income attributable to Franklin Electric Co., Inc. | $ 27,322 | $ 34,556 | $ 954 | $ 41,350 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 43,083 | $ 64,405 |
Receivables, less allowances of $4,741 and $3,705, respectively | 183,210 | 173,327 |
Inventories: | ||
Raw material | 94,697 | 98,286 |
Work-in-process | 20,696 | 18,392 |
Finished goods | 184,002 | 183,568 |
Total inventories | 299,395 | 300,246 |
Other current assets | 23,653 | 29,466 |
Total current assets | 549,341 | 567,444 |
Property, plant, and equipment, at cost: | ||
Land and buildings | 133,620 | 142,189 |
Machinery and equipment | 270,702 | 276,541 |
Furniture and fixtures | 45,159 | 43,631 |
Other | 28,879 | 29,293 |
Property, plant, and equipment, gross | 478,360 | 491,654 |
Less: Allowance for depreciation | (291,997) | (290,326) |
Property, plant, and equipment, net | 186,363 | 201,328 |
Right-of-Use Asset, net | 27,687 | 27,621 |
Deferred income taxes | 7,911 | 9,171 |
Intangible assets, net | 121,725 | 131,127 |
Goodwill | 256,219 | 256,059 |
Other assets | 2,086 | 1,993 |
Total assets | 1,151,332 | 1,194,743 |
Current liabilities: | ||
Accounts payable | 86,767 | 82,593 |
Accrued expenses and other current liabilities | 65,316 | 68,444 |
Current lease liability | 10,273 | 9,838 |
Income taxes | 7,297 | 3,010 |
Current maturities of long-term debt and short-term borrowings | 4,243 | 21,879 |
Total current liabilities | 173,896 | 185,764 |
Long-term debt | 92,489 | 93,141 |
Long-term lease liability | 17,416 | 17,785 |
Income taxes payable non-current | 11,965 | 11,965 |
Deferred income taxes | 25,748 | 27,598 |
Employee benefit plans | 36,631 | 38,288 |
Other long-term liabilities | 17,938 | 21,769 |
Commitments and contingencies (see Note 14) | 0 | 0 |
Redeemable noncontrolling interest | (262) | (236) |
Shareholders' equity: | ||
Common stock (65,000 shares authorized, $.10 par value) outstanding (46,185 and 46,391, respectively) | 4,618 | 4,639 |
Additional capital | 278,175 | 269,656 |
Retained earnings | 715,621 | 712,460 |
Accumulated other comprehensive loss | (224,550) | (190,210) |
Total shareholders' equity | 773,864 | 796,545 |
Noncontrolling interest | 1,647 | 2,124 |
Total equity | 775,511 | 798,669 |
Total liabilities and equity | $ 1,151,332 | $ 1,194,743 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Accounts Receivable, Allowance for Credit Loss, Current | $ 4,741 | $ 3,705 |
Shareholders' equity: | ||
Common shares, authorized (in shares) | 65,000 | 65,000 |
Common shares, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common shares, outstanding (in shares) | 46,185 | 46,391 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 35,594 | $ 41,939 |
Adjustments to reconcile net income to net cash flows from operating activities: | ||
Depreciation and amortization | 17,990 | 18,350 |
Non-cash lease expense | 5,283 | 5,199 |
Share-based compensation | 7,015 | 5,524 |
Deferred income taxes | (125) | 501 |
Loss on disposals of plant and equipment | 448 | 594 |
Foreign exchange income | (56) | (84) |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables | (17,820) | (46,371) |
Inventory | (7,520) | (35,318) |
Accounts payable and accrued expenses | 8,561 | 18,637 |
Operating leases | (5,283) | (5,195) |
Income taxes | 3,825 | 535 |
Employee benefit plans | 99 | (50) |
Other, net | (1,010) | (116) |
Net cash flows from operating activities | 47,001 | 4,145 |
Cash flows from investing activities: | ||
Additions to property, plant, and equipment | (9,445) | (10,444) |
Proceeds from sale of property, plant, and equipment | 25 | 866 |
Cash paid for acquisitions, net of cash acquired | (5,826) | (6,728) |
Other, net | 3 | 8 |
Net cash flows from investing activities | (15,243) | (16,298) |
Cash flows from financing activities: | ||
Proceeds from issuance of debt | 98,234 | 129,985 |
Repayment of debt | (116,142) | (113,171) |
Proceeds from issuance of common stock | 1,520 | 1,495 |
Purchases of common stock | (17,724) | (9,543) |
Dividends paid | (14,446) | (13,510) |
Purchase of redeemable noncontrolling shares | 0 | (485) |
Net cash flows from financing activities | (48,558) | (5,229) |
Effect of exchange rate changes on cash | (4,522) | (800) |
Net change in cash and equivalents | (21,322) | (18,182) |
Cash and equivalents at beginning of period | 64,405 | 59,173 |
Cash and equivalents at end of period | 43,083 | 40,991 |
Cash paid for income taxes, net of refunds | 6,227 | 8,578 |
Cash paid for interest | 2,483 | 4,731 |
Non-cash items: | ||
Additions to property, plant, and equipment, not yet paid | 204 | 307 |
Right-of-Use Assets obtained in exchange for new operating lease liabilities | 4,915 | 1,772 |
Accrued dividends payable to noncontrolling interests | $ 830 | $ 642 |
CONDENSED CONSOLIDATED FINANCIA
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS | CONDENSED CONSOLIDATED FINANCIAL STATEMENTSThe accompanying condensed consolidated balance sheet as of December 31, 2019, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of June 30, 2020, and for the second quarters and six months ended June 30, 2020 and June 30, 2019 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 periods have been made. Operating results for the second quarter and six months ended June 30, 2020 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2020. 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 December 31, 2019. |
ACCOUNTING PRONOUNCEMENTS
ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
ACCOUNTING PRONOUNCEMENTS | ACCOUNTING PRONOUNCEMENTS Adoption of New Accounting Standards In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 removes step two from the goodwill impairment test and instead requires an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit's fair value. The ASU is effective on a prospective basis for interim and annual periods beginning after December 15, 2019 with early adoption permitted. The Company adopted the standard effective January 1, 2020. The standard did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which modifies the measurement of expected credit losses on certain financial instruments, including trade receivables. ASU 2016-13 is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted. Amendments should be applied using a modified retrospective approach except for debt securities, which require a prospective transitions approach. The Company adopted the standard effective January 1, 2020. The standard did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. Accounting Standards Issued But Not Yet Adopted In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Topic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments remove disclosures that no longer are considered cost beneficial, including the estimated amounts in accumulated other comprehensive income expected to be recognized as components of net periodic expense over the next fiscal year. The amendments clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant, including the reasons for significant gains and losses related to change in the benefit obligation for the period. The ASU should be applied retrospectively and is effective for interim and annual periods beginning after December 15, 2020. The Company is still determining the date of adoption for this ASU but does not anticipate the adoption to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes , which is expected to reduce cost and complexity related to accounting for income taxes. ASU 2019-12 eliminates the need for the Company to analyze whether certain exceptions apply and improves financial statement preparers' application of income tax-related guidance. ASU 2019-12 is effective for interim and annual periods beginning after December 15, 2020 with early adoption permitted. Amendments related to franchise taxes that are partially based on income should be applied on either a retrospective or modified retrospective basis. All other amendments should be applied on a prospective basis. The Company is still determining the date of adoption of this ASU. Adoption is not expected to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONSDuring the first quarter ended March 31, 2020, the Company acquired all of the assets of a company that manufactures line shaft turbines and other adjacent product lines for a purchase price of $6.3 million after working capital adjustments. The fair value of the assets acquired and liabilities assumed are preliminary as of June 30, 2020. In addition, the Company has not presented separate results of operations since closing or combined pro forma financial information of the Company and the acquired interest since the beginning of 2020, as the results of operations for this acquisition is immaterial. During the third quarter ended September 30, 2019, the Company acquired 100 percent of the ownership interests of First Sales, LLC for a purchase price of approximately $15.5 million after working capital adjustments. The acquisition was not material, and the fair value of the assets acquired and liabilities assumed are preliminary as of June 30, 2020. During the second quarter ended June 30, 2019, the Company acquired the remaining interest in Pluga Pumps and Motors Private Limited, India, increasing the Company's ownership to 100 percent. The redemption of this interest was immaterial. Transaction costs were expensed as incurred under the guidance of FASB Accounting Standards Codification Topic 805, Business Combinations |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020 and December 31, 2019, the assets measured at fair value on a recurring basis were as set forth in the table below: June 30, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) Cash equivalents $ 4.4 $ 4.4 $ — $ — December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 4.0 $ 4.0 $ — $ — The Company's Level 1 assets consist of cash equivalents which are generally comprised of foreign bank guaranteed certificates of deposit. The Company has no assets measured on a recurring basis classified as Level 2 or Level 3. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTSThe 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 June 30, 2020, the swap had a notional value based on 280,000 shares. For the second quarter and six months ended June 30, 2020, the swap resulted in a gain of $1.3 million and a loss of $1.5 million, respectively. For the second quarter and six months ended June 30, 2019, the swap resulted in a loss of $0.9 million and a gain $1.0 million, respectively. Gains and losses resulting from 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. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2020 | |
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) June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangibles: Patents $ 7.4 $ (7.1) $ 7.4 $ (7.0) Technology 7.5 (7.0) 7.5 (6.8) Customer relationships 150.9 (73.6) 155.4 (71.4) Other 3.7 (2.8) 3.8 (2.8) Total $ 169.5 $ (90.5) $ 174.1 $ (88.0) Unamortizing intangibles: Trade names 42.7 — 45.0 — Total intangibles $ 212.2 $ (90.5) $ 219.1 $ (88.0) Amortization expense related to intangible assets for the second quarters ended June 30, 2020 and June 30, 2019 was $2.3 million and $2.3 million, and for the six months ended June 30, 2020 and June 30, 2019, $4.7 million and $4.6 million respectively. Amortization expense for each of the five succeeding years is projected as follows: (In millions) 2020 2021 2022 2023 2024 $ 9.2 $ 8.8 $ 8.6 $ 8.5 $ 8.3 The change in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2020, is as follows: (In millions) Water Systems Fueling Systems Distribution Consolidated Balance as of December 31, 2019 $ 151.0 $ 67.6 $ 37.5 $ 256.1 Acquisitions 3.0 — — 3.0 Foreign currency translation (2.7) (0.2) — (2.9) Balance as of June 30, 2020 $ 151.3 $ 67.4 $ 37.5 $ 256.2 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 6 Months Ended |
Jun. 30, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Defined Benefit Plans - As of June 30, 2020, the Company maintained two domestic pension plans and three German pension plans. The Company used a December 31, 2019 measurement date for these plans. One of the Company's domestic pension plans covers one active management employee, while the other domestic plan covers all eligible employees (plan was frozen as of December 31, 2011). The two domestic and three German plans collectively comprise the 'Pension Benefits' disclosure caption. Other Benefits - The Company's other post-retirement benefit plan provides health and life insurance to domestic employees hired prior to 1992. The following table sets forth the aggregated net periodic benefit cost for all pension plans for the second quarters and six months ended June 30, 2020 and June 30, 2019: (In millions) Pension Benefits Second Quarter Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Service cost $ 0.2 $ 0.2 $ 0.3 $ 0.4 Interest cost 1.1 1.5 2.2 3.0 Expected return on assets (1.7) (2.0) (3.4) (4.0) Amortization of: Prior service cost — — — — Actuarial loss 0.9 0.7 1.8 1.3 Settlement cost — — — — Net periodic benefit cost $ 0.5 $ 0.4 $ 0.9 $ 0.7 In the six months ended June 30, 2020, the Company made contributions of $0.1 million to the funded plans. The amount of contributions to be made to the plans during the calendar year 2020 will be finalized by September 15, 2020, based upon the funding level requirements identified and year-end valuation performed at December 31, 2019. The following table sets forth the aggregated net periodic benefit cost for the other post-retirement benefit plan for the second quarters and six months ended June 30, 2020 and June 30, 2019: (In millions) Other Benefits Second Quarter Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Service cost $ — $ — $ — $ — Interest cost — 0.1 0.1 0.2 Expected return on assets — — — — Amortization of: Prior service cost — — — — Actuarial loss — — — — Settlement cost — — — — Net periodic benefit cost $ — $ 0.1 $ 0.1 $ 0.2 |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company’s effective tax rate from continuing operations for the six month period ended June 30, 2020 was 20.6 percent as compared to 18.1 percent for the six month period ended June 30, 2019. The effective tax rate is lower than the U.S. statutory rate of 21 percent primarily due to foreign earnings taxed at rates below the U.S. statutory rate, the recognition of the U.S. foreign-derived intangible income (FDII) provisions, and certain discrete events including excess tax benefits from share-based compensation. For the second quarter of 2020, the effective tax rate was 21.3 percent as compared to 19.2 percent for the second quarter of 2019. The increase in the effective tax rate was primarily a result of net unfavorable discrete events of $0.4 million recorded in the second quarter of 2020 compared to net favorable discrete events of $0.6 million in the second quarter of 2019. During the second quarter of 2020, the Company recorded $1.4 million of expense for a valuation allowance on deferred tax assets in foreign jurisdictions to recognize only the portion of the deferred tax assets that are more likely than not to be realized. In addition, the Company recorded a benefit of $1.2 million for the release of a deferred tax liability related to unrecognized foreign exchange on the settlement of an intercompany loan. The Company also recorded $0.2 million of expense for other discrete events primarily related to foreign withholding tax on a distribution in a foreign jurisdiction. On March 27, 2020, President Trump signed into U.S. federal law the CARES Act, which is aimed at providing emergency assistance and health care for individuals, families, and businesses affected by the COVID-19 pandemic and generally supporting the U.S. economy. The CARES Act, among other things, includes provisions related to refundable payroll tax credits, deferment of the employer portion of social security payments, net operating loss carryback periods, modifications to the net interest deduction limitations, and technical corrections to tax depreciation methods for qualified improvement property. The Company does not expect there to be a material impact to the consolidated financial statements. |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following: (In millions) June 30, 2020 December 31, 2019 Tax increment financing debt 18.2 18.7 New York Life Agreement 75.0 75.0 Credit Agreement 1.7 19.0 Financing Leases — 0.1 Foreign subsidiary debt 1.9 2.3 Less: unamortized debt issuance costs (0.1) (0.1) $ 96.7 $ 115.0 Less: current maturities (4.2) (21.9) Long-term debt $ 92.5 $ 93.1 Debt outstanding, excluding unamortized debt issuance costs, at June 30, 2020 matures as follows: (In millions) Total Year 1 Year 2 Year 3 Year 4 Year 5 More Than 5 Years Debt $ 96.8 $ 4.2 $ 1.3 $ 1.3 $ 1.3 $ 1.4 $ 87.3 Prudential Agreement The Company maintains the Third Amended and Restated Note Purchase and Private Shelf Agreement (the "Prudential Agreement"), which expires on July 30, 2021 and has an initial borrowing capacity of $250.0 million. As of June 30, 2020, the Company has $150.0 million borrowing capacity available under the Prudential Agreement. Project Bonds The Company, Allen County, Indiana and certain institutional investors maintain a Bond Purchase and Loan Agreement. Under the agreement, Allen County, Indiana issued a series of Project Bonds entitled “Taxable Economic Development Bonds, Series 2012 (Franklin Electric Co., Inc. Project)." The aggregate principal amount of the Project Bonds that were issued, authenticated, and are now outstanding thereunder was limited to $25.0 million. These Project Notes ("Tax increment financing debt") bear interest at 3.6 percent per annum. Interest and principal balance of the Project Notes are due and payable by the Company directly to the institutional investors in aggregate semi-annual installments commencing on July 10, 2013, and concluding on January 10, 2033. New York Life Agreement The Company maintains an uncommitted and unsecured private shelf agreement with NYL Investors LLC, an affiliate of New York Life, and each of the undersigned holders of Notes (the "New York Life Agreement"), with a maximum aggregate borrowing capacity of $200.0 million. On September 26, 2018, the Company issued and sold $75.0 million of fixed rate senior notes due September 26, 2025. These senior notes bear an interest rate of 4.04 percent with interest-only payments due semi-annually. The proceeds from the issuance of the notes were used to pay off existing variable interest rate indebtedness. As of June 30, 2020, there was $125.0 million remaining borrowing capacity under the New York Life Agreement. Credit Agreement The Company maintains the Third Amended and Restated Credit Agreement (the "Credit Agreement”). The Credit Agreement has a maturity date of October 28, 2021 and commitment amount of $300.0 million. The 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). Under the Credit Agreement, the Borrowers are required to pay certain fees, including a facility fee of 0.100% to 0.275% (depending on the Company's leverage ratio) of the aggregate commitment, which fee is payable quarterly in arrears. Loans may be made either at (i) a Eurocurrency rate based on LIBOR plus an applicable margin of 0.75% to 1.60% (depending on the Company's leverage ratio) or (ii) an alternative base rate as defined in the Credit Agreement. As of June 30, 2020, the Company had $1.7 million in outstanding borrowings which were primarily used for working capital needs, the payment of existing indebtedness and acquisitions, $4.2 million in letters of credit outstanding, and $294.1 million of available capacity under the Credit Agreement. Covenants The Company’s credit agreements contain customary financial covenants. The Company’s most significant agreements and restrictive covenants are in the New York Life Agreement, the Project Bonds, the Prudential Agreement, and the Credit Agreement; each containing both affirmative and negative covenants. The affirmative covenants relate to financial statements, notices of material events, conduct of business, inspection of property, maintenance of insurance, compliance with laws and most favored lender obligations. The negative covenants include limitations on loans, advances and investments, and the granting of liens by the Company or its subsidiaries, as well as prohibitions on certain consolidations, mergers, sales and transfers of assets. The covenants also include financial requirements including a maximum leverage ratio of 1.00 to 3.50 and a minimum interest coverage ratio of 1.00 to 3.00. Cross default is applicable with the Prudential Agreement, the Project Bonds, the New York Life Agreement, and the Credit Agreement but only if the Company is defaulting on an obligation exceeding $10.0 million. The Company was in compliance with all financial covenants as of June 30, 2020. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company calculates basic and diluted earnings per common share using the two-class method. Under the two-class method, net earnings are allocated to each class of common stock and participating security as if all of the net earnings for the period had been distributed. The Company's participating securities consist of share-based payment awards that contain a nonforfeitable right to receive dividends and therefore are considered to participate in undistributed earnings with common shareholders. Basic earnings per common share excludes dilution and is calculated by dividing net earnings allocable to common shares by the weighted-average number of common shares outstanding for the period. Diluted earnings per common share is calculated by dividing net earnings allocated to common shares by the weighted-average number of common shares outstanding for the period, as adjusted for the potential dilutive effect of non-participating share-based awards. The following table sets forth the computation of basic and diluted earnings per share: Second Quarter Ended Six Months Ended (In millions, except per share amounts) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 24.7 $ 32.7 $ 35.3 $ 41.8 Less: Earnings allocated to participating securities 0.2 0.2 0.2 0.3 Net income available to common shareholders $ 24.5 $ 32.5 $ 35.1 $ 41.5 Denominator: Basic weighted average common shares outstanding 46.2 46.3 46.3 46.3 Effect of dilutive securities: Non-participating employee stock options and performance awards 0.3 0.4 0.4 0.4 Diluted weighted average common shares outstanding 46.5 46.7 46.7 46.7 Basic earnings per share $ 0.53 $ 0.70 $ 0.76 $ 0.89 Diluted earnings per share $ 0.52 $ 0.70 $ 0.75 $ 0.89 There were 0.4 million and 0.3 million stock options outstanding for the second quarters ended June 30, 2020 and June 30, 2019, and 0.3 million and 0.2 million stock options outstanding for the six months ended June 30, 2020 and June 30, 2019 respectively, that were excluded from the computation of diluted earnings per share, as their inclusion would be anti-dilutive. |
EQUITY ROLL FORWARD
EQUITY ROLL FORWARD | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
EQUITY ROLL FORWARD | EQUITY ROLL FORWARD The schedules below set forth equity changes in the second quarters ended June 30, 2020 and June 30, 2019: (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 March 31, 2020 $ 4,614 $ 274,869 $ 698,917 $ (49,373) $ (177,848) $ 2,287 $ 753,466 $ (245) Net income 24,651 169 24,820 (18) Dividends on common stock ($0.155/share) (7,206) (7,206) Common stock issued 2 647 649 Common stock repurchased (2) (741) (743) Share-based compensation 4 2,659 2,663 Noncontrolling dividend (830) (830) Purchase of redeemable noncontrolling shares — — Currency translation adjustment 1,955 21 1,976 1 Pension liability, net of tax 716 716 Balance as of June 30, 2020 $ 4,618 $ 278,175 $ 715,621 $ (48,657) $ (175,893) $ 1,647 $ 775,511 $ (262) (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 March 31, 2019 $ 4,637 $ 262,002 $ 652,737 $ (48,076) $ (137,205) $ 2,097 $ 736,192 $ 408 Net income 32,745 247 32,992 (180) Dividends on common stock ($0.145/share) (6,787) (6,787) Common stock issued 1 243 244 Common stock repurchased (12) (5,202) (5,214) Share-based compensation 6 2,288 2,294 Noncontrolling dividend (642) (642) Purchase of redeemable noncontrolling shares — (485) Currency translation adjustment 1,303 12 1,315 47 Pension liability, net of tax 508 508 Balance as of June 30, 2019 $ 4,632 $ 264,533 $ 673,493 $ (47,568) $ (135,902) $ 1,714 $ 760,902 $ (210) The schedules below set forth equity changes in the six months ended June 30, 2020 and June 30, 2019: (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 December 31, 2019 $ 4,639 $ 269,656 $ 712,460 $ (50,089) $ (140,121) $ 2,124 $ 798,669 $ (236) Net Income 35,294 356 35,650 (56) Dividends on common stock ($0.310/share) (14,446) (14,446) Common stock issued 4 1,516 1,520 Common stock repurchased (37) (17,687) (17,724) Share-based compensation 12 7,003 7,015 Noncontrolling dividend (830) (830) Purchase of redeemable non-controlling shares — — Currency translation adjustment (35,772) (3) (35,775) 30 Pension liability, net of taxes 1,432 1,432 Balance as of June 30, 2020 $ 4,618 $ 278,175 $ 715,621 $ (48,657) $ (175,893) $ 1,647 $ 775,511 $ (262) (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 December 31, 2018 $ 4,632 $ 257,535 $ 654,724 $ (48,585) $ (134,434) $ 1,955 $ 735,827 $ 518 Net Income 41,801 421 42,222 (283) Dividends on common stock ($0.290/share) (13,510) (13,510) Common stock issued 7 1,488 1,495 Common stock repurchased (21) (9,522) (9,543) Share-based compensation 14 5,510 5,524 Noncontrolling dividend (642) (642) Purchase of redeemable non-controlling shares — (485) Currency translation adjustment (1,468) (20) (1,488) 40 Pension liability, net of taxes 1,017 1,017 Balance as of June 30, 2019 $ 4,632 $ 264,533 $ 673,493 $ (47,568) $ (135,902) $ 1,714 $ 760,902 $ (210) |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Changes in accumulated other comprehensive income/(loss) by component for the six months ended June 30, 2020 and June 30, 2019, are summarized below: (In millions) For the six months ended June 30, 2020: Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments (2) Total Balance as of December 31, 2019 $ (140.2) $ (50.0) $ (190.2) Other comprehensive income/(loss) before reclassifications (35.8) — (35.8) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 1.4 1.4 Net other comprehensive income/(loss) (35.8) 1.4 (34.4) Balance as of June 30, 2020 $ (176.0) $ (48.6) $ (224.6) For the six months ended June 30, 2019: Balance as of December 31, 2018 $ (134.5) $ (48.5) $ (183.0) Other comprehensive income/(loss) before reclassifications (1.4) — (1.4) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 0.9 0.9 Net other comprehensive income/(loss) (1.4) 0.9 (0.5) Balance as of June 30, 2019 $ (135.9) $ (47.6) $ (183.5) (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 "Other income/(expense), net" line of the Company's condensed consolidated statements of income. (2) Net of tax expense of $0.4 million and $0.3 million for the six months ended June 30, 2020 and June 30, 2019, respectively. Amounts related to noncontrolling interests were not material. |
SEGMENT AND GEOGRAPHIC INFORMAT
SEGMENT AND GEOGRAPHIC INFORMATION | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT AND GEOGRAPHIC INFORMATION | SEGMENT AND GEOGRAPHIC INFORMATION The accounting policies of the operating segments are the same as those described in Note 1 of the Company's Form 10-K. Revenue is recognized based on the invoice price at the point in time when the customer obtains control of the product, which is typically upon shipment to the customer. The Water and Fueling segments include manufacturing operations and supply certain components and finished goods, both between segments and to the Distribution segment. The Company reports these product transfers between Water and Fueling as inventory transfers as a significant number of the Company's manufacturing facilities are shared across segments for scale and efficiency purposes. The Company reports intersegment transfers from Water to Distribution as intersegment revenue at market prices to properly reflect the commercial arrangement of vendor to customer that exists between the Water and Distribution segments. Segment operating income is a key financial performance measure. Operating income by segment is based on net sales less identifiable operating expenses and allocations and includes profits recorded on sales to other segments of the Company. Financial information by reportable business segment is included in the following summary: Second Quarter Ended Six Months Ended (In millions) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net sales Water Systems External sales United States & Canada $ 80.8 $ 103.1 $ 151.7 $ 189.9 Latin America 24.2 29.4 52.4 59.9 Europe, Middle East & Africa 35.5 39.0 73.7 76.7 Asia Pacific 19.7 18.7 33.5 40.9 Intersegment sales United States & Canada 18.2 14.8 31.2 26.0 Total sales 178.4 205.0 342.5 393.4 Distribution External sales United States & Canada 92.1 87.1 152.5 140.4 Intersegment sales — — — — Total sales 92.1 87.1 152.5 140.4 Fueling Systems External sales United States & Canada 35.3 45.9 72.6 81.1 All other 20.7 32.1 38.6 57.2 Intersegment sales — — — — Total sales 56.0 78.0 111.2 138.3 Intersegment Eliminations/Other (18.2) (14.8) (31.2) (26.0) Consolidated $ 308.3 $ 355.3 $ 575.0 $ 646.1 Second Quarter Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating income/(loss) Water Systems $ 28.7 $ 30.9 $ 47.5 $ 50.1 Distribution 6.8 4.5 4.6 0.2 Fueling Systems 13.5 21.7 25.6 34.0 Intersegment Eliminations/Other (15.1) (13.4) (29.9) (28.5) Consolidated $ 33.9 $ 43.7 $ 47.8 $ 55.8 June 30, 2020 December 31, 2019 Total assets Water Systems $ 625.2 $ 658.3 Distribution 200.3 180.2 Fueling Systems 267.3 283.8 Other 58.5 72.4 Consolidated $ 1,151.3 $ 1,194.7 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2020 | |
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 June 30, 2020, the Company had $8.5 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 years to five years from date of manufacture or one year 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 six months ended June 30, 2020, are as follows: (In millions) Balance as of December 31, 2019 $ 9.1 Accruals related to product warranties 4.8 Additions related to acquisitions — Reductions for payments made (4.8) Balance as of June 30, 2020 $ 9.1 The Company maintains certain warehouses, distribution centers, office space, and equipment operating leases. The Company also has lease agreements that are classified as financing. These financing leases are immaterial to the Company. The Company utilizes interest rates from lease agreements unless the lease agreement does not provide a readily determinable rate. In these instances, the Company utilizes its incremental borrowing rate based on the information available as of the adoption of ASU 2016-02 or at the inception of any new leases entered into thereafter when determining the present value of future lease payments. Some of the Company’s leases include renewal options. The Company excludes these renewal options in the expected lease term unless the Company is reasonably certain that the option will be exercised. The components of the Company’s operating lease portfolio as of the second quarter and six months ended June 30, 2020 are as follows: Lease Cost (in millions): Second Quarter Ended Six Months Ended Operating lease cost $ 3.2 $ 5.2 Short-term lease cost 0.1 0.2 Other Information: Weighted-average remaining lease term 4 years Weighted-average discount rate 3.8 % The minimum rental payments for non-cancellable operating leases as of June 30, 2020, are as follows: (In millions) 2020 2021 2022 2023 2024 Thereafter Future Minimum Rental Payments $ 5.7 $ 9.5 $ 6.2 $ 3.9 $ 1.6 $ 2.5 |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION The Franklin Electric Co., Inc. 2017 Stock Plan (the "2017 Stock Plan") is a stock-based compensation plan that provides for discretionary grants of stock options, stock awards, stock unit awards, and stock appreciation rights ("SARs") to key employees and non-employee directors. The number of shares that may be issued under the Plan is 1,400,000. Stock options and SARs reduce the number of available shares by one share for each share subject to the option or SAR, and stock awards and stock unit awards settled in shares reduce the number of available shares by 1.5 shares for every one share delivered. The Company also 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 and no additional awards are granted out of the plan. However, there are still unvested awards and unexercised options under this plan. 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 outstanding stock plans. Stock Options: The fair value of each option award is estimated on the date of grant using the Black-Scholes option valuation model with a single approach and amortized using a straight-line attribution method over the option’s vesting period. The assumptions used for the Black-Scholes model to determine the fair value of options granted during the six months ended June 30, 2020 and June 30, 2019 are as follows: June 30, 2020 June 30, 2019 Risk-free interest rate 1.39 % 2.53 % Dividend yield 1.04 % 1.05 % Volatility factor 29.45 % 29.38 % Expected term 5.5 years 5.5 years A summary of the Company’s outstanding stock option activity and related information for the six months ended June 30, 2020 is as follows: (Shares in thousands) June 30, 2020 Stock Options Shares Weighted-Average Exercise Price Outstanding at beginning of period 1,262 $ 37.99 Granted 214 59.71 Exercised (43) 34.82 Forfeited (4) 50.13 Outstanding at end of period 1,429 $ 41.31 Expected to vest after applying forfeiture rate 1,427 $ 41.29 Vested and exercisable at end of period 958 $ 35.70 A summary of the weighted-average remaining contractual term and aggregate intrinsic value as of June 30, 2020 is as follows: Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (000's) Outstanding at end of period 5.87 years $ 18,033 Expected to vest after applying forfeiture rate 5.86 years $ 18,027 Vested and exercisable at end of period 4.48 years $ 16,338 The total intrinsic value of options exercised during the six months ended June 30, 2020 and June 30, 2019 was $0.9 million and $2.1 million, respectively. As of June 30, 2020, there was $1.6 million of total unrecognized compensation cost related to non-vested stock options granted under the stock plans. That cost is expected to be recognized over a weighted-average period of 1.66 years. Stock/Stock Unit Awards: A summary of the Company’s restricted stock/stock unit award activity and related information for the six months ended June 30, 2020 is as follows: (Shares in thousands) June 30, 2020 Restricted Stock/Stock Unit Awards Weighted-Average Grant- Non-vested at beginning of period 463 $ 42.36 Awarded 118 59.27 Vested (127) 33.85 Forfeited (17) 48.72 Non-vested at end of period 437 $ 49.16 As of June 30, 2020, there was $11.1 million of total unrecognized compensation cost related to non-vested restricted stock/stock unit awards granted under the stock plans. That cost is expected to be recognized over a weighted-average period of 1.56 years. |
ACCOUNTING PRONOUNCEMENTS (Poli
ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Adoption of New Accounting Standards | Adoption of New Accounting Standards In January 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. ASU 2017-04 removes step two from the goodwill impairment test and instead requires an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit's fair value. The ASU is effective on a prospective basis for interim and annual periods beginning after December 15, 2019 with early adoption permitted. The Company adopted the standard effective January 1, 2020. The standard did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which modifies the measurement of expected credit losses on certain financial instruments, including trade receivables. ASU 2016-13 is effective for interim and annual periods beginning after December 15, 2019 with early adoption permitted. Amendments should be applied using a modified retrospective approach except for debt securities, which require a prospective transitions approach. The Company adopted the standard effective January 1, 2020. The standard did not have a material impact on the Company's consolidated financial position, results of operations, or cash flows. |
Accounting Standards Issued But Not Yet Adopted | Accounting Standards Issued But Not Yet Adopted In August 2018, the FASB issued ASU 2018-14, Compensation-Retirement Benefits-Defined Benefit Plans-General (Topic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans, which modifies the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. The amendments remove disclosures that no longer are considered cost beneficial, including the estimated amounts in accumulated other comprehensive income expected to be recognized as components of net periodic expense over the next fiscal year. The amendments clarify the specific requirements of disclosures, and add disclosure requirements identified as relevant, including the reasons for significant gains and losses related to change in the benefit obligation for the period. The ASU should be applied retrospectively and is effective for interim and annual periods beginning after December 15, 2020. The Company is still determining the date of adoption for this ASU but does not anticipate the adoption to have a material impact on the Company's consolidated financial position, results of operations, or cash flows. In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | As of June 30, 2020 and December 31, 2019, the assets measured at fair value on a recurring basis were as set forth in the table below: June 30, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) Cash equivalents $ 4.4 $ 4.4 $ — $ — December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Cash equivalents $ 4.0 $ 4.0 $ — $ — |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | The carrying amounts of the Company’s intangible assets are as follows: (In millions) June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangibles: Patents $ 7.4 $ (7.1) $ 7.4 $ (7.0) Technology 7.5 (7.0) 7.5 (6.8) Customer relationships 150.9 (73.6) 155.4 (71.4) Other 3.7 (2.8) 3.8 (2.8) Total $ 169.5 $ (90.5) $ 174.1 $ (88.0) Unamortizing intangibles: Trade names 42.7 — 45.0 — Total intangibles $ 212.2 $ (90.5) $ 219.1 $ (88.0) |
Schedule of Indefinite-Lived Intangible Assets | The carrying amounts of the Company’s intangible assets are as follows: (In millions) June 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizing intangibles: Patents $ 7.4 $ (7.1) $ 7.4 $ (7.0) Technology 7.5 (7.0) 7.5 (6.8) Customer relationships 150.9 (73.6) 155.4 (71.4) Other 3.7 (2.8) 3.8 (2.8) Total $ 169.5 $ (90.5) $ 174.1 $ (88.0) Unamortizing intangibles: Trade names 42.7 — 45.0 — Total intangibles $ 212.2 $ (90.5) $ 219.1 $ (88.0) |
Schedule of Amortization Expense | Amortization expense for each of the five succeeding years is projected as follows: (In millions) 2020 2021 2022 2023 2024 $ 9.2 $ 8.8 $ 8.6 $ 8.5 $ 8.3 |
Schedule of Change in the Carrying Amount of Goodwill by Reporting Segment | The change in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2020, is as follows: (In millions) Water Systems Fueling Systems Distribution Consolidated Balance as of December 31, 2019 $ 151.0 $ 67.6 $ 37.5 $ 256.1 Acquisitions 3.0 — — 3.0 Foreign currency translation (2.7) (0.2) — (2.9) Balance as of June 30, 2020 $ 151.3 $ 67.4 $ 37.5 $ 256.2 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
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 second quarters and six months ended June 30, 2020 and June 30, 2019: (In millions) Pension Benefits Second Quarter Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Service cost $ 0.2 $ 0.2 $ 0.3 $ 0.4 Interest cost 1.1 1.5 2.2 3.0 Expected return on assets (1.7) (2.0) (3.4) (4.0) Amortization of: Prior service cost — — — — Actuarial loss 0.9 0.7 1.8 1.3 Settlement cost — — — — Net periodic benefit cost $ 0.5 $ 0.4 $ 0.9 $ 0.7 |
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 other post-retirement benefit plan for the second quarters and six months ended June 30, 2020 and June 30, 2019: (In millions) Other Benefits Second Quarter Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Service cost $ — $ — $ — $ — Interest cost — 0.1 0.1 0.2 Expected return on assets — — — — Amortization of: Prior service cost — — — — Actuarial loss — — — — Settlement cost — — — — Net periodic benefit cost $ — $ 0.1 $ 0.1 $ 0.2 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Long-term Debt | Debt consisted of the following: (In millions) June 30, 2020 December 31, 2019 Tax increment financing debt 18.2 18.7 New York Life Agreement 75.0 75.0 Credit Agreement 1.7 19.0 Financing Leases — 0.1 Foreign subsidiary debt 1.9 2.3 Less: unamortized debt issuance costs (0.1) (0.1) $ 96.7 $ 115.0 Less: current maturities (4.2) (21.9) Long-term debt $ 92.5 $ 93.1 |
Schedule of Long-term Debt Payments | Debt outstanding, excluding unamortized debt issuance costs, at June 30, 2020 matures as follows: (In millions) Total Year 1 Year 2 Year 3 Year 4 Year 5 More Than 5 Years Debt $ 96.8 $ 4.2 $ 1.3 $ 1.3 $ 1.3 $ 1.4 $ 87.3 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Computation of Basic and Diluted Earnings Per Share | The following table sets forth the computation of basic and diluted earnings per share: Second Quarter Ended Six Months Ended (In millions, except per share amounts) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 24.7 $ 32.7 $ 35.3 $ 41.8 Less: Earnings allocated to participating securities 0.2 0.2 0.2 0.3 Net income available to common shareholders $ 24.5 $ 32.5 $ 35.1 $ 41.5 Denominator: Basic weighted average common shares outstanding 46.2 46.3 46.3 46.3 Effect of dilutive securities: Non-participating employee stock options and performance awards 0.3 0.4 0.4 0.4 Diluted weighted average common shares outstanding 46.5 46.7 46.7 46.7 Basic earnings per share $ 0.53 $ 0.70 $ 0.76 $ 0.89 Diluted earnings per share $ 0.52 $ 0.70 $ 0.75 $ 0.89 |
EQUITY ROLL FORWARD (Tables)
EQUITY ROLL FORWARD (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stockholders' Equity | The schedules below set forth equity changes in the second quarters ended June 30, 2020 and June 30, 2019: (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 March 31, 2020 $ 4,614 $ 274,869 $ 698,917 $ (49,373) $ (177,848) $ 2,287 $ 753,466 $ (245) Net income 24,651 169 24,820 (18) Dividends on common stock ($0.155/share) (7,206) (7,206) Common stock issued 2 647 649 Common stock repurchased (2) (741) (743) Share-based compensation 4 2,659 2,663 Noncontrolling dividend (830) (830) Purchase of redeemable noncontrolling shares — — Currency translation adjustment 1,955 21 1,976 1 Pension liability, net of tax 716 716 Balance as of June 30, 2020 $ 4,618 $ 278,175 $ 715,621 $ (48,657) $ (175,893) $ 1,647 $ 775,511 $ (262) (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 March 31, 2019 $ 4,637 $ 262,002 $ 652,737 $ (48,076) $ (137,205) $ 2,097 $ 736,192 $ 408 Net income 32,745 247 32,992 (180) Dividends on common stock ($0.145/share) (6,787) (6,787) Common stock issued 1 243 244 Common stock repurchased (12) (5,202) (5,214) Share-based compensation 6 2,288 2,294 Noncontrolling dividend (642) (642) Purchase of redeemable noncontrolling shares — (485) Currency translation adjustment 1,303 12 1,315 47 Pension liability, net of tax 508 508 Balance as of June 30, 2019 $ 4,632 $ 264,533 $ 673,493 $ (47,568) $ (135,902) $ 1,714 $ 760,902 $ (210) The schedules below set forth equity changes in the six months ended June 30, 2020 and June 30, 2019: (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 December 31, 2019 $ 4,639 $ 269,656 $ 712,460 $ (50,089) $ (140,121) $ 2,124 $ 798,669 $ (236) Net Income 35,294 356 35,650 (56) Dividends on common stock ($0.310/share) (14,446) (14,446) Common stock issued 4 1,516 1,520 Common stock repurchased (37) (17,687) (17,724) Share-based compensation 12 7,003 7,015 Noncontrolling dividend (830) (830) Purchase of redeemable non-controlling shares — — Currency translation adjustment (35,772) (3) (35,775) 30 Pension liability, net of taxes 1,432 1,432 Balance as of June 30, 2020 $ 4,618 $ 278,175 $ 715,621 $ (48,657) $ (175,893) $ 1,647 $ 775,511 $ (262) (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 December 31, 2018 $ 4,632 $ 257,535 $ 654,724 $ (48,585) $ (134,434) $ 1,955 $ 735,827 $ 518 Net Income 41,801 421 42,222 (283) Dividends on common stock ($0.290/share) (13,510) (13,510) Common stock issued 7 1,488 1,495 Common stock repurchased (21) (9,522) (9,543) Share-based compensation 14 5,510 5,524 Noncontrolling dividend (642) (642) Purchase of redeemable non-controlling shares — (485) Currency translation adjustment (1,468) (20) (1,488) 40 Pension liability, net of taxes 1,017 1,017 Balance as of June 30, 2019 $ 4,632 $ 264,533 $ 673,493 $ (47,568) $ (135,902) $ 1,714 $ 760,902 $ (210) |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) | Changes in accumulated other comprehensive income/(loss) by component for the six months ended June 30, 2020 and June 30, 2019, are summarized below: (In millions) For the six months ended June 30, 2020: Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments (2) Total Balance as of December 31, 2019 $ (140.2) $ (50.0) $ (190.2) Other comprehensive income/(loss) before reclassifications (35.8) — (35.8) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 1.4 1.4 Net other comprehensive income/(loss) (35.8) 1.4 (34.4) Balance as of June 30, 2020 $ (176.0) $ (48.6) $ (224.6) For the six months ended June 30, 2019: Balance as of December 31, 2018 $ (134.5) $ (48.5) $ (183.0) Other comprehensive income/(loss) before reclassifications (1.4) — (1.4) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 0.9 0.9 Net other comprehensive income/(loss) (1.4) 0.9 (0.5) Balance as of June 30, 2019 $ (135.9) $ (47.6) $ (183.5) (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 "Other income/(expense), net" line of the Company's condensed consolidated statements of income. (2) Net of tax expense of $0.4 million and $0.3 million for the six months ended June 30, 2020 and June 30, 2019, respectively. |
SEGMENT AND GEOGRAPHIC INFORM_2
SEGMENT AND GEOGRAPHIC INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Financial Information by Reportable Business Segment | Financial information by reportable business segment is included in the following summary: Second Quarter Ended Six Months Ended (In millions) June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Net sales Water Systems External sales United States & Canada $ 80.8 $ 103.1 $ 151.7 $ 189.9 Latin America 24.2 29.4 52.4 59.9 Europe, Middle East & Africa 35.5 39.0 73.7 76.7 Asia Pacific 19.7 18.7 33.5 40.9 Intersegment sales United States & Canada 18.2 14.8 31.2 26.0 Total sales 178.4 205.0 342.5 393.4 Distribution External sales United States & Canada 92.1 87.1 152.5 140.4 Intersegment sales — — — — Total sales 92.1 87.1 152.5 140.4 Fueling Systems External sales United States & Canada 35.3 45.9 72.6 81.1 All other 20.7 32.1 38.6 57.2 Intersegment sales — — — — Total sales 56.0 78.0 111.2 138.3 Intersegment Eliminations/Other (18.2) (14.8) (31.2) (26.0) Consolidated $ 308.3 $ 355.3 $ 575.0 $ 646.1 Second Quarter Ended Six Months Ended June 30, 2020 June 30, 2019 June 30, 2020 June 30, 2019 Operating income/(loss) Water Systems $ 28.7 $ 30.9 $ 47.5 $ 50.1 Distribution 6.8 4.5 4.6 0.2 Fueling Systems 13.5 21.7 25.6 34.0 Intersegment Eliminations/Other (15.1) (13.4) (29.9) (28.5) Consolidated $ 33.9 $ 43.7 $ 47.8 $ 55.8 June 30, 2020 December 31, 2019 Total assets Water Systems $ 625.2 $ 658.3 Distribution 200.3 180.2 Fueling Systems 267.3 283.8 Other 58.5 72.4 Consolidated $ 1,151.3 $ 1,194.7 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in the Carrying Amount of the Warranty Accrual | The changes in the carrying amount of the warranty accrual, as recorded in the "Accrued expenses and other current liabilities" line of the Company's condensed consolidated balance sheet for the six months ended June 30, 2020, are as follows: (In millions) Balance as of December 31, 2019 $ 9.1 Accruals related to product warranties 4.8 Additions related to acquisitions — Reductions for payments made (4.8) Balance as of June 30, 2020 $ 9.1 |
Lease, Cost | The components of the Company’s operating lease portfolio as of the second quarter and six months ended June 30, 2020 are as follows: Lease Cost (in millions): Second Quarter Ended Six Months Ended Operating lease cost $ 3.2 $ 5.2 Short-term lease cost 0.1 0.2 Other Information: Weighted-average remaining lease term 4 years Weighted-average discount rate 3.8 % |
Lessee, Operating Lease, Liability, Maturity | The minimum rental payments for non-cancellable operating leases as of June 30, 2020, are as follows: (In millions) 2020 2021 2022 2023 2024 Thereafter Future Minimum Rental Payments $ 5.7 $ 9.5 $ 6.2 $ 3.9 $ 1.6 $ 2.5 |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Authorized Number of Shares | The 2012 Stock Plan authorized 2,400,000 shares for issuance as follows: 2012 Stock Plan Authorized Shares Stock Options 1,680,000 Stock/Stock Unit Awards 720,000 The Company also maintains the Amended and Restated Franklin Electric Co., Inc. Stock Plan (the "2009 Stock Plan") which, as amended in 2009, provided for discretionary grants of stock options and stock awards. The 2009 Stock Plan authorized 4,400,000 shares for issuance as follows: 2009 Stock Plan Authorized Shares Stock Options 3,200,000 Stock Awards 1,200,000 |
Schedule of Assumptions Used to Determine the Fair Value of Options Granted | The assumptions used for the Black-Scholes model to determine the fair value of options granted during the six months ended June 30, 2020 and June 30, 2019 are as follows: June 30, 2020 June 30, 2019 Risk-free interest rate 1.39 % 2.53 % Dividend yield 1.04 % 1.05 % Volatility factor 29.45 % 29.38 % Expected term 5.5 years 5.5 years |
Schedule of Stock Option Plans Activity | A summary of the Company’s outstanding stock option activity and related information for the six months ended June 30, 2020 is as follows: (Shares in thousands) June 30, 2020 Stock Options Shares Weighted-Average Exercise Price Outstanding at beginning of period 1,262 $ 37.99 Granted 214 59.71 Exercised (43) 34.82 Forfeited (4) 50.13 Outstanding at end of period 1,429 $ 41.31 Expected to vest after applying forfeiture rate 1,427 $ 41.29 Vested and exercisable at end of period 958 $ 35.70 |
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 June 30, 2020 is as follows: Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value (000's) Outstanding at end of period 5.87 years $ 18,033 Expected to vest after applying forfeiture rate 5.86 years $ 18,027 Vested and exercisable at end of period 4.48 years $ 16,338 |
Schedule of Restricted Stock/Stock Unit Award Activity | A summary of the Company’s restricted stock/stock unit award activity and related information for the six months ended June 30, 2020 is as follows: (Shares in thousands) June 30, 2020 Restricted Stock/Stock Unit Awards Weighted-Average Grant- Non-vested at beginning of period 463 $ 42.36 Awarded 118 59.27 Vested (127) 33.85 Forfeited (17) 48.72 Non-vested at end of period 437 $ 49.16 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Jun. 30, 2019 | |
Business Acquisition | ||||
Business Combination, Acquisition Related Costs | $ 0.1 | $ 0.1 | ||
Company | ||||
Business Acquisition | ||||
Total purchase price | $ 6.3 | |||
First Sales, LLC | ||||
Business Acquisition | ||||
Business acquisition, percentage of voting interests acquired | 100.00% | |||
Total purchase price | $ 15.5 | |||
Pluga Pumps and Motors Private Limited | Pluga Pumps and Motors Private Limited | ||||
Business Acquisition | ||||
Noncontrolling Interest, Ownership Percentage by Parent | 100.00% | 100.00% |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Total debt, carrying value | $ 96.7 | $ 115 |
Recurring Basis | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 4.4 | 4 |
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Cash equivalents | 4.4 | 4 |
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 |
Carrying value | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Total debt, carrying value | 96.7 | 115 |
Fair value | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ||
Total debt, fair value | $ 105.1 | $ 121 |
FINANCIAL INSTRUMENTS (Details)
FINANCIAL INSTRUMENTS (Details) - Share swap transaction agreement - Not Designated as Hedging Instrument $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)shares | Jun. 30, 2019USD ($) | |
Derivative | ||||
Derivative cancellable written notice term | 30 days | |||
Derivative notional amount (in shares) | shares | 280,000 | 280,000 | ||
Selling, general, and administrative expenses | ||||
Derivative | ||||
Gain on derivative | $ 1.3 | $ 1 | ||
Loss on derivative | $ 0.9 | $ 1.5 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Intangible Assets | |||||
Gross carrying amount, amortized intangibles | $ 169.5 | $ 169.5 | $ 174.1 | ||
Gross carrying amount, total intangibles | 212.2 | 212.2 | 219.1 | ||
Accumulated amortization | (90.5) | (90.5) | (88) | ||
Amortization of Intangible Assets | 2.3 | $ 2.3 | 4.7 | $ 4.6 | |
Trade Names | |||||
Intangible Assets | |||||
Gross carrying amount, unamortized intangibles | 42.7 | 42.7 | 45 | ||
Patents | |||||
Intangible Assets | |||||
Gross carrying amount, amortized intangibles | 7.4 | 7.4 | 7.4 | ||
Accumulated amortization | (7.1) | (7.1) | (7) | ||
Technology | |||||
Intangible Assets | |||||
Gross carrying amount, amortized intangibles | 7.5 | 7.5 | 7.5 | ||
Accumulated amortization | (7) | (7) | (6.8) | ||
Customer Relationships | |||||
Intangible Assets | |||||
Gross carrying amount, amortized intangibles | 150.9 | 150.9 | 155.4 | ||
Accumulated amortization | (73.6) | (73.6) | (71.4) | ||
Other | |||||
Intangible Assets | |||||
Gross carrying amount, amortized intangibles | 3.7 | 3.7 | 3.8 | ||
Accumulated amortization | $ (2.8) | $ (2.8) | $ (2.8) |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS (Future Amortization) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 9.2 |
2021 | 8.8 |
2022 | 8.6 |
2023 | 8.5 |
2024 | $ 8.3 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 256,059 |
Acquisitions | 3,000 |
Foreign currency translation | (2,900) |
Goodwill, ending balance | 256,219 |
Water Systems | |
Goodwill | |
Goodwill, beginning balance | 151,000 |
Acquisitions | 3,000 |
Foreign currency translation | (2,700) |
Goodwill, ending balance | 151,300 |
Fueling Systems | |
Goodwill | |
Goodwill, beginning balance | 67,600 |
Acquisitions | 0 |
Foreign currency translation | (200) |
Goodwill, ending balance | 67,400 |
Distribution | |
Goodwill | |
Goodwill, beginning balance | 37,500 |
Acquisitions | 0 |
Foreign currency translation | 0 |
Goodwill, ending balance | $ 37,500 |
EMPLOYEE BENEFIT PLANS (Details
EMPLOYEE BENEFIT PLANS (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)Pension_Plan | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)Pension_Plan | Jun. 30, 2019USD ($) | |
Net Periodic Benefit Cost and Other Benefit Cost | ||||
Company contributions | $ 0.1 | |||
Foreign | ||||
Net Periodic Benefit Cost and Other Benefit Cost | ||||
Number of pension plans (in ones) | Pension_Plan | 3 | 3 | ||
United States | ||||
Net Periodic Benefit Cost and Other Benefit Cost | ||||
Number of pension plans (in ones) | Pension_Plan | 2 | 2 | ||
Pension Plan | ||||
Net Periodic Benefit Cost | ||||
Service cost | $ 0.2 | $ 0.2 | $ 0.3 | $ 0.4 |
Interest cost | 1.1 | 1.5 | 2.2 | 3 |
Expected return on assets | (1.7) | (2) | (3.4) | (4) |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | 0.9 | 0.7 | 1.8 | 1.3 |
Settlement cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost | 0.5 | 0.4 | 0.9 | 0.7 |
Other Benefits | ||||
Net Periodic Benefit Cost | ||||
Service cost | 0 | 0 | 0 | 0 |
Interest cost | 0 | 0.1 | 0.1 | 0.2 |
Expected return on assets | 0 | 0 | 0 | 0 |
Amortization of prior service cost | 0 | 0 | 0 | 0 |
Amortization of actuarial loss | 0 | 0 | 0 | 0 |
Settlement cost | 0 | 0 | 0 | 0 |
Net periodic benefit cost | $ 0 | $ 0.1 | $ 0.1 | $ 0.2 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 21.30% | 19.20% | 20.60% | 18.10% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | |||
Effective Income Tax Rate Reconciliation, Other Adjustments, Amount | $ 0.4 | $ 0.6 | ||
Deferred Tax Assets, Valuation Allowance | 1.4 | $ 1.4 | ||
Adjustment for Long-term Intercompany Transactions, Tax Expense (Benefit) | 1.2 | |||
Other Tax Expense (Benefit) | $ 0.2 |
DEBT (Schedule of Debt) (Detail
DEBT (Schedule of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument | ||
Long-term debt | $ 96,800 | |
Financing Leases | 0 | $ 100 |
Less: unamortized debt issuance costs | (100) | (100) |
Total debt and capital leases | 96,700 | 115,000 |
Less: current maturities | (4,243) | (21,879) |
Long-term debt | 92,489 | 93,141 |
Tax increment financing debt | ||
Debt Instrument | ||
Long-term debt | 18,200 | 18,700 |
Credit Agreement | ||
Debt Instrument | ||
Long-term debt | 1,700 | 19,000 |
Foreign subsidiary debt | ||
Debt Instrument | ||
Long-term debt | 1,900 | 2,300 |
New York Life Investors LLC | ||
Debt Instrument | ||
Long-term debt | $ 75,000 | $ 75,000 |
DEBT (Debt Payments Expected to
DEBT (Debt Payments Expected to be Paid) (Details) $ in Millions | Jun. 30, 2020USD ($) |
Long-term Debt, by Maturity | |
Debt | $ 96.8 |
Year 1 | 4.2 |
Year 2 | 1.3 |
Year 3 | 1.3 |
Year 4 | 1.3 |
Year 5 | 1.4 |
More than 5 years | $ 87.3 |
DEBT (Details)
DEBT (Details) - USD ($) $ in Millions | Oct. 28, 2016 | Jun. 30, 2020 | Sep. 26, 2018 | Jul. 30, 2018 | Dec. 31, 2012 |
Line of Credit Facility | |||||
Cross default trigger, minimum | $ 10 | ||||
Minimum | |||||
Line of Credit Facility | |||||
Debt instrument covenant total leverage ratio | 1 | ||||
Debt instrument covenant total interest ratio | 1 | ||||
Maximum | |||||
Line of Credit Facility | |||||
Debt instrument covenant total leverage ratio | 3.50 | ||||
Debt instrument covenant total interest ratio | 3 | ||||
Tax increment financing debt | |||||
Debt Instrument | |||||
Aggregrate principal amount of debt | $ 25 | ||||
Debt instrument, interest rate | 3.60% | ||||
Credit Agreement | |||||
Debt Instrument | |||||
Total borrowing capacity of facility | $ 450 | ||||
Remaining borrowing capacity | $ 294.1 | ||||
Line of Credit Facility | |||||
Current borrowing capacity | 300 | ||||
Increase amount available | $ 150 | ||||
Outstanding borrowings | 1.7 | ||||
Letters of credit outstanding | 4.2 | ||||
Credit Agreement | Minimum | |||||
Line of Credit Facility | |||||
Facility fee (as a percentage) | 0.10% | ||||
Credit Agreement | Maximum | |||||
Line of Credit Facility | |||||
Facility fee (as a percentage) | 0.275% | ||||
Credit Agreement | LIBOR | Minimum | |||||
Debt Instrument | |||||
Debt instrument basis spread of variable rate | 0.75% | ||||
Credit Agreement | LIBOR | Maximum | |||||
Debt Instrument | |||||
Debt instrument basis spread of variable rate | 1.60% | ||||
Prudential | |||||
Debt Instrument | |||||
Total borrowing capacity of facility | 250 | ||||
Remaining borrowing capacity | 150 | ||||
New York Life Investors LLC | |||||
Debt Instrument | |||||
Total borrowing capacity of facility | $ 200 | ||||
Remaining borrowing capacity | $ 125 | ||||
New York Life Investors LLC | Senior Notes | |||||
Debt Instrument | |||||
Aggregrate principal amount of debt | $ 75 | ||||
Shelf Agreement, fixed interest rate | 4.04% |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator: | ||||
Net income attributable to Franklin Electric Co., Inc. | $ 24,651 | $ 32,745 | $ 35,294 | $ 41,801 |
Less: Earnings allocated to participating securities | 200 | 200 | 200 | 300 |
Net income available to common shareholders | $ 24,500 | $ 32,500 | $ 35,100 | $ 41,500 |
Basic | ||||
Basic weighted average common shares outstanding | 46.2 | 46.3 | 46.3 | 46.3 |
Effect of dilutive securities: | ||||
Non-participating employee stock options and performance awards | 0.3 | 0.4 | 0.4 | 0.4 |
Diluted weighted average common shares outstanding | 46.5 | 46.7 | 46.7 | 46.7 |
Basic earnings per share (in dollars per share) | $ 0.53 | $ 0.70 | $ 0.76 | $ 0.89 |
Diluted earnings per share (in dollars per share) | $ 0.52 | $ 0.70 | $ 0.75 | $ 0.89 |
Anti-dilutive stock options (in shares) | 0.4 | 0.3 | 0.3 | 0.2 |
EQUITY ROLL FORWARD (Details)
EQUITY ROLL FORWARD (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Common Stock, Dividends, Per Share, Cash Paid | $ 0.155 | $ 0.145 | $ 0.310 | $ 0.290 |
Increase (Decrease) in Stockholders' Equity | ||||
Equity, beginning balance | $ 798,669 | |||
Net income | $ 24,802 | $ 32,812 | 35,594 | $ 41,939 |
Equity, ending balance | 775,511 | 775,511 | ||
Temporary equity, beginning balance | (245) | 408 | (236) | 518 |
Net income | (18) | (180) | (56) | (283) |
Noncontrolling Interest, Decrease from Redemptions or Purchase of Interests | 0 | (485) | 0 | (485) |
Temporary Equity, Foreign Currency Translation Adjustments | 1 | 47 | 30 | 40 |
Temporary equity, ending balance | (262) | (210) | (262) | (210) |
Common Stock | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Equity, beginning balance | 4,614 | 4,637 | 4,639 | 4,632 |
Stock Issued During Period, Value, New Issues | 2 | 1 | 4 | 7 |
Stock Repurchased and Retired During Period, Value | (2) | (12) | (37) | (21) |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 4 | 6 | 12 | 14 |
Equity, ending balance | 4,618 | 4,632 | 4,618 | 4,632 |
Additional Paid in Capital | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Equity, beginning balance | 274,869 | 262,002 | 269,656 | 257,535 |
Stock Issued During Period, Value, New Issues | 647 | 243 | 1,516 | 1,488 |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 2,659 | 2,288 | 7,003 | 5,510 |
Equity, ending balance | 278,175 | 264,533 | 278,175 | 264,533 |
Retained Earnings | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Equity, beginning balance | 698,917 | 652,737 | 712,460 | 654,724 |
Net income | 24,651 | 32,745 | 35,294 | 41,801 |
Dividends, Common Stock, Cash | (7,206) | (6,787) | (14,446) | (13,510) |
Stock Repurchased and Retired During Period, Value | (741) | (5,202) | (17,687) | (9,522) |
Equity, ending balance | 715,621 | 673,493 | 715,621 | 673,493 |
Minimum Pension Liability | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Equity, beginning balance | (49,373) | (48,076) | (50,089) | (48,585) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 716 | 508 | 1,432 | 1,017 |
Equity, ending balance | (48,657) | (47,568) | (48,657) | (47,568) |
Cumulative Translation Adjustment | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Equity, beginning balance | (177,848) | (137,205) | (140,121) | (134,434) |
Currency translation adjustment | 1,955 | 1,303 | (35,772) | (1,468) |
Equity, ending balance | (175,893) | (135,902) | (175,893) | (135,902) |
Noncontrolling Interest | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Equity, beginning balance | 2,287 | 2,097 | 2,124 | 1,955 |
Net income | 169 | 247 | 356 | 421 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (830) | (642) | (830) | (642) |
Currency translation adjustment | 21 | 12 | (3) | (20) |
Equity, ending balance | 1,647 | 1,714 | 1,647 | 1,714 |
Total Equity | ||||
Increase (Decrease) in Stockholders' Equity | ||||
Equity, beginning balance | 753,466 | 736,192 | 798,669 | 735,827 |
Net income | 24,820 | 32,992 | 35,650 | 42,222 |
Dividends, Common Stock, Cash | (7,206) | (6,787) | (14,446) | (13,510) |
Stock Issued During Period, Value, New Issues | 649 | 244 | 1,520 | 1,495 |
Stock Repurchased and Retired During Period, Value | (743) | (5,214) | (17,724) | (9,543) |
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 2,663 | 2,294 | 7,015 | 5,524 |
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders | (830) | (642) | (830) | (642) |
Currency translation adjustment | 1,976 | 1,315 | (35,775) | (1,488) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 716 | 508 | 1,432 | 1,017 |
Equity, ending balance | $ 775,511 | $ 760,902 | $ 775,511 | $ 760,902 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Equity, beginning balance | $ 798,669 | |||
Other comprehensive income/(loss) | $ 2,693 | $ 1,870 | (34,313) | $ (431) |
Equity, ending balance | 775,511 | 775,511 | ||
Income tax expense related to items of other comprehensive income/(loss) | 185 | 141 | 370 | 282 |
Foreign Currency Translation Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Equity, beginning balance | (140,200) | (134,500) | ||
Other comprehensive income/(loss) before reclassifications | (35,800) | (1,400) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) (1) | 0 | 0 | ||
Other comprehensive income/(loss) | (35,800) | (1,400) | ||
Equity, ending balance | (176,000) | (135,900) | (176,000) | (135,900) |
Pension and Post-Retirement Plan Benefit Adjustments | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Equity, beginning balance | (50,000) | (48,500) | ||
Other comprehensive income/(loss) before reclassifications | 0 | 0 | ||
Amounts reclassified from accumulated other comprehensive income/(loss) (1) | 1,400 | 900 | ||
Other comprehensive income/(loss) | 1,400 | 900 | ||
Equity, ending balance | (48,600) | (47,600) | (48,600) | (47,600) |
AOCI Including Portion Attributable to Noncontrolling Interest | ||||
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax | ||||
Equity, beginning balance | (190,200) | (183,000) | ||
Other comprehensive income/(loss) before reclassifications | (35,800) | (1,400) | ||
Amounts reclassified from accumulated other comprehensive income/(loss) (1) | 1,400 | 900 | ||
Other comprehensive income/(loss) | (34,400) | (500) | ||
Equity, ending balance | $ (224,600) | $ (183,500) | $ (224,600) | $ (183,500) |
SEGMENT AND GEOGRAPHIC INFORM_3
SEGMENT AND GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Segment Reporting Information | |||||
Net sales | $ 308,281 | $ 355,340 | $ 575,035 | $ 646,055 | |
Operating income/(loss) | 33,933 | 43,691 | 47,754 | 55,812 | |
Total assets | 1,151,332 | 1,151,332 | $ 1,194,743 | ||
Corporate And Eliminations | |||||
Segment Reporting Information | |||||
Net sales | (18,200) | (14,800) | (31,200) | (26,000) | |
Operating income/(loss) | (15,100) | (13,400) | (29,900) | (28,500) | |
Total assets | 58,500 | 58,500 | 72,400 | ||
Water Systems | Operating Segments | |||||
Segment Reporting Information | |||||
Net sales | 178,400 | 205,000 | 342,500 | 393,400 | |
Operating income/(loss) | 28,700 | 30,900 | 47,500 | 50,100 | |
Total assets | 625,200 | 625,200 | 658,300 | ||
Water Systems | United States & Canada | |||||
Segment Reporting Information | |||||
Net sales | 80,800 | 103,100 | 151,700 | 189,900 | |
Water Systems | United States & Canada | Intersegment Sales | |||||
Segment Reporting Information | |||||
Net sales | 18,200 | 14,800 | 31,200 | 26,000 | |
Water Systems | Latin America | |||||
Segment Reporting Information | |||||
Net sales | 24,200 | 29,400 | 52,400 | 59,900 | |
Water Systems | EMEA | |||||
Segment Reporting Information | |||||
Net sales | 35,500 | 39,000 | 73,700 | 76,700 | |
Water Systems | Asia Pacific | |||||
Segment Reporting Information | |||||
Net sales | 19,700 | 18,700 | 33,500 | 40,900 | |
Distribution | Operating Segments | |||||
Segment Reporting Information | |||||
Net sales | 92,100 | 87,100 | 152,500 | 140,400 | |
Operating income/(loss) | 6,800 | 4,500 | 4,600 | 200 | |
Total assets | 200,300 | 200,300 | 180,200 | ||
Distribution | United States & Canada | |||||
Segment Reporting Information | |||||
Net sales | 92,100 | 87,100 | 152,500 | 140,400 | |
Distribution | United States & Canada | Intersegment Sales | |||||
Segment Reporting Information | |||||
Net sales | 0 | 0 | 0 | 0 | |
Fueling Systems | Operating Segments | |||||
Segment Reporting Information | |||||
Net sales | 56,000 | 78,000 | 111,200 | 138,300 | |
Operating income/(loss) | 13,500 | 21,700 | 25,600 | 34,000 | |
Total assets | 267,300 | 267,300 | $ 283,800 | ||
Fueling Systems | Intersegment Sales | |||||
Segment Reporting Information | |||||
Net sales | 0 | 0 | 0 | 0 | |
Fueling Systems | United States & Canada | |||||
Segment Reporting Information | |||||
Net sales | 35,300 | 45,900 | 72,600 | 81,100 | |
Fueling Systems | All Other | |||||
Segment Reporting Information | |||||
Net sales | $ 20,700 | $ 32,100 | $ 38,600 | $ 57,200 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($) | |
Commitments | |
Purchase obligations | $ 8.5 |
Changes in the Carrying Amount of the Warranty Accrual | |
Beginning balance | 9.1 |
Accruals related to product warranties | 4.8 |
Additions related to acquisitions | 0 |
Reductions for payments made | (4.8) |
Ending balance | $ 9.1 |
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 |
OPERATING LEASES, LEASE COST (D
OPERATING LEASES, LEASE COST (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
OPERATING LEASES [Abstract] | ||
Operating lease cost | $ 3.2 | $ 5.2 |
Short-term lease cost | $ 0.1 | $ 0.2 |
Weighted-average remaining lease term | 4 years | 4 years |
Weighted-average discount rate | 3.80% | 3.80% |
OPERATING LEASES, MATURITY ANAL
OPERATING LEASES, MATURITY ANALYSIS (Details) $ in Millions | Jun. 30, 2020USD ($) |
OPERATING LEASES [Abstract] | |
2020 | $ 5.7 |
2021 | 9.5 |
2022 | 6.2 |
2023 | 3.9 |
2024 | 1.6 |
Thereafter | $ 2.5 |
SHARE-BASED COMPENSATION (Share
SHARE-BASED COMPENSATION (Shares Authorized) (Details) | Jun. 30, 2020shares |
2017 Stock Plan | |
Share-based Compensation | |
Number of shares authorized | 1,400,000 |
Non fungible share basis | 1 |
Fungible share basis | 1.5 |
2012 Stock Plan | |
Share-based Compensation | |
Number of shares authorized | 2,400,000 |
2012 Stock Plan | Stock Options | |
Share-based Compensation | |
Number of shares authorized | 1,680,000 |
2012 Stock Plan | Stock and Stock Unit Awards | |
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 | Stock Options | |
Share-based Compensation | |
Number of shares authorized | 3,200,000 |
2009 Stock Plan | Stock Awards | |
Share-based Compensation | |
Number of shares authorized | 1,200,000 |
SHARE-BASED COMPENSATION (Valua
SHARE-BASED COMPENSATION (Valuation Assumptions Used) (Details) - Stock Options | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||
Risk-free interest rate | 1.39% | 2.53% |
Dividend yield | 1.04% | 1.05% |
Volatility factor | 29.45% | 29.38% |
Expected term | 5 years 6 months | 5 years 6 months |
SHARE-BASED COMPENSATION (Stock
SHARE-BASED COMPENSATION (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation | ||
Intrinsic value of options exercised | $ 900 | $ 2,100 |
Total unrecognized compensation cost related to nonvested share-based compensation | $ 1,600 | |
Total unrecognized compensation cost, recognized over a weighted-average period | 1 year 7 months 28 days | |
Stock Option Plans Activity and Related Information, Shares | ||
Outstanding beginning of period, shares | 1,262 | |
Granted, shares | 214 | |
Exercised, shares | (43) | |
Forfeited, shares | (4) | |
Outstanding end of period, shares | 1,429 | |
Expected to vest after applying forfeiture rate, shares | 1,427 | |
Vested and exercisable end of period, shares | 958 | |
Stock Option Plans Activity and Related Information, Weighted Average Exercise Price | ||
Outstanding beginning of period, weighted-average exercise price | $ 37.99 | |
Granted, weighted-average exercise price | 59.71 | |
Exercised, weighted-average exercise price | 34.82 | |
Forfeited, weighted-average exercise price | 50.13 | |
Outstanding end of period, weighted-average exercise price | 41.31 | |
Expected to vest after applying forfeiture rate, weighted-average exercise price | 41.29 | |
Vested and exercisable end of period, weighted-average exercise price | $ 35.70 | |
Summary of Weighted Average Remaining Contractual Term and Aggregate Intrinsic Value | ||
Outstanding at end of period, weighted-average remaining contractual term | 5 years 10 months 13 days | |
Outstanding at end of period, aggregate intrinsic value | $ 18,033 | |
Expected to vest after applying forfeiture rate, weighted-average remaining contractual term | 5 years 10 months 9 days | |
Expected to vest after applying forfeiture rate, aggregate intrinsic value | $ 18,027 | |
Vested and exercisable end of period, weighted-average remaining contractual term | 4 years 5 months 23 days | |
Vested and exercisable end of period, aggregate intrinsic value | $ 16,338 |
SHARE-BASED COMPENSATION (Sto_2
SHARE-BASED COMPENSATION (Stock/Stock Unit Award Activity) (Details) - Stock and Stock Unit Awards $ / shares in Units, shares in Thousands, $ in Millions | 6 Months Ended |
Jun. 30, 2020USD ($)$ / sharesshares | |
Share-based Compensation | |
Total unrecognized compensation cost related to nonvested share-based compensation | $ | $ 11.1 |
Total unrecognized compensation cost, recognized over a weighted-average period | 1 year 6 months 21 days |
Stock/Stock Unit Award Activity and Related Information, Shares | |
Non-vested at beginning of period, shares | shares | 463 |
Awarded, shares | shares | 118 |
Vested, shares | shares | (127) |
Forfeited, shares | shares | (17) |
Non-vested at end of period, shares | shares | 437 |
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 | $ / shares | $ 42.36 |
Awarded, weighted-average grant date fair value | $ / shares | 59.27 |
Vested, weighted-average grant date fair value | $ / shares | 33.85 |
Forfeited, weighted-average grant date fair value | $ / shares | 48.72 |
Non-vested at the end of period, weighted-average grant date fair value | $ / shares | $ 49.16 |