Franklin Electric (FELE) 10-Q 30 Apr 24 2024 Q1 Quarterly report Financial data

COVER

COVER - $ / shares	3 Months Ended
	Mar. 31, 2024	Apr. 26, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
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		46,080,284
Entity Central Index Key	0000038725
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
Net sales	$ 460,900	$ 484,551
Cost of sales	297,320	322,286
Gross profit	163,580	162,265
Selling, general, and administrative expenses	115,644	109,535
Restructuring expense	0	124
Operating income	47,936	52,606
Interest expense	(1,448)	(3,147)
Other income, net	706	409
Foreign exchange expense	(4,880)	(2,044)
Income before income taxes	42,314	47,824
Income tax expense	9,222	10,248
Net income	33,092	37,576
Less: Net income attributable to noncontrolling interests	(133)	(251)
Net income attributable to Franklin Electric Co., Inc.	$ 32,959	$ 37,325
Earnings per share:
Basic	$ 0.71	$ 0.81
Diluted	$ 0.70	$ 0.79

CONDENSED CONSOLIDATED STATEM_2

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 33,092	$ 37,576
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	(7,215)	6,494
Employee benefit plan activity	576	555
Other comprehensive income/(loss)	(6,639)	7,049
Income tax expense related to items of other comprehensive income/(loss)	(143)	(138)
Other comprehensive income/(loss), net of tax	(6,782)	6,911
Comprehensive income	26,310	44,487
Less: Comprehensive income attributable to noncontrolling interests	(92)	(274)
Comprehensive income attributable to Franklin Electric Co., Inc.	$ 26,218	$ 44,213

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 65,314	$ 84,963
Receivables, less allowances of $4,089 and $3,594, respectively	262,632	222,418
Inventories:
Raw material	178,799	176,706
Work-in-process	28,848	26,880
Finished goods	324,595	305,110
Total inventories	532,242	508,696
Other current assets	41,175	37,718
Total current assets	901,363	853,795
Property, plant, and equipment, at cost:
Land and buildings	166,625	167,028
Machinery and equipment	312,501	316,227
Furniture and fixtures	57,417	56,997
Other	62,447	59,747
Property, plant, and equipment, gross	598,990	599,999
Less: Allowance for depreciation	(371,784)	(370,260)
Property, plant, and equipment, net	227,206	229,739
Lease right-of-use assets, net	60,916	57,014
Deferred income taxes	9,727	8,758
Intangible assets, net	226,729	230,027
Goodwill	340,454	342,404
Other assets	6,712	6,385
Total assets	1,773,107	1,728,122
Current liabilities:
Accounts payable	185,504	152,419
Accrued expenses and other current liabilities	76,390	100,249
Current lease liability	18,018	17,316
Income taxes	11,922	4,700
Current maturities of long-term debt and short-term borrowings	24,414	12,355
Total current liabilities	316,248	287,039
Long-term debt	87,406	88,056
Long-term lease liability	41,638	38,549
Income taxes payable non-current	4,837	4,837
Deferred income taxes	29,514	29,461
Employee benefit plans	35,785	35,973
Other long-term liabilities	33,591	33,914
Commitments and contingencies (see Note 15)
Redeemable noncontrolling interest	1,109	1,145
Shareholders' equity:
Common stock (65,000 shares authorized, $.10 par value) outstanding (46,093 and 46,067, respectively)	4,609	4,607
Additional paid-in capital	352,797	344,717
Retained earnings	1,090,874	1,078,512
Accumulated other comprehensive loss	(227,855)	(221,114)
Total shareholders' equity	1,220,425	1,206,722
Noncontrolling interest	2,554	2,426
Total equity	1,222,979	1,209,148
Total liabilities and equity	$ 1,773,107	$ 1,728,122

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Current assets:
Accounts Receivable, Allowance for Credit Loss, Current	$ 4,089	$ 3,594
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)	46,093	46,067

CONDENSED CONSOLIDATED STATEM_3

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash flows from operating activities:
Net income	$ 33,092	$ 37,576
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	13,792	12,837
Non-cash lease expense	5,194	4,239
Share-based compensation	4,042	3,912
Deferred income taxes	(814)	1,102
(Gain)/loss on disposals of plant and equipment	(30)	104
Foreign exchange expense	4,880	2,044
Changes in assets and liabilities, net of acquisitions:
Receivables	(43,365)	(43,408)
Inventory	(28,105)	(50,725)
Accounts payable and accrued expenses	8,576	13,163
Operating leases	(5,305)	(4,239)
Income taxes	5,301	5,062
Employee benefit plans	(539)	422
Other, net	1,919	5,892
Net cash flows from operating activities	(1,362)	(12,019)
Cash flows from investing activities:
Additions to property, plant, and equipment	(9,184)	(9,563)
Proceeds from sale of property, plant, and equipment	102	0
Cash paid for acquisitions, net of cash acquired	(1,151)	(4,990)
Other, net	17	0
Net cash flows from investing activities	(10,216)	(14,553)
Cash flows from financing activities:
Proceeds from issuance of debt	85,539	141,671
Repayments of debt	(74,142)	(83,938)
Proceeds from issuance of common stock	4,050	2,938
Purchases of common stock	(9,047)	(17,133)
Dividends paid	(12,395)	(10,440)
Deferred Payments for Acquisitions	(348)	0
Net cash flows from financing activities	(6,343)	33,098
Effect of exchange rate changes on cash and cash equivalents	(1,728)	(443)
Net change in cash and cash equivalents	(19,649)	6,083
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Beginning Balance	84,963	45,790
Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Ending Balance	65,314	51,873
Non-cash items:
Additions to property, plant, and equipment, not yet paid	772	1,461
Right-of-Use Assets obtained in exchange for new operating lease liabilities	9,407	506
Payable to sellers of acquired entities	$ 1,300	$ 614

CONDENSED CONSOLIDATED FINANCIA

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	3 Months Ended
	Mar. 31, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	CONDENSED CONSOLIDATED FINANCIAL STATEMENTS The accompanying condensed consolidated balance sheet as of December 31, 2023, which has been derived from audited financial statements, and the unaudited interim condensed consolidated financial statements as of March 31, 2024, and for the first quarters ended March 31, 2024 and March 31, 2023 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 first quarter ended March 31, 2024 are not necessarily indicative of the results that may be expected for the fiscal year ending December 31, 2024. 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, 2023.

ACCOUNTING PRONOUNCEMENTS

ACCOUNTING PRONOUNCEMENTS	3 Months Ended
	Mar. 31, 2024
Accounting Changes and Error Corrections [Abstract]
ACCOUNTING PRONOUNCEMENTS	ACCOUNTING PRONOUNCEMENTS Accounting Standards Issued But Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 is intended to improve reportable segment disclosure requirements, primarily through additional and more detailed information about a reportable segment's expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. The Company plans to adopt this ASU for its fiscal year end December 31, 2024 disclosures, but does not anticipate the adoption to have a material impact on the Company's financial disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. This amendment modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, (2) the amount of income taxes paid (net of refunds received) (disaggregated by federal, state, and foreign taxes) as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid net of refunds, (3) the income or loss from continuing operations before income tax expense or benefit (disaggregated between domestic and foreign) and (4) income tax expense or benefit from continuing operations (disaggregated by federal, state and foreign). ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 should be applied on a prospective basis, while retrospective application is permitted. 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 financial disclosures.

ACQUISITIONS

ACQUISITIONS	3 Months Ended
	Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	ACQUISITIONS 2023 During the fourth quarter ended December 31, 2023, the Company acquired substantially all of the assets of Aqua Systems of Fort Myers, a water treatment systems distributor. In another separate transaction, the Company acquired substantially all of the assets of Action Manufacturing and Supply, Inc., a water treatment equipment provider located in southwest Florida. The Company also acquired, in a separate transaction, substantially all of the assets of LCA Pump, LLC, which operates Water Works Pump, a Missouri based professional groundwater distributor. The combined purchase price for the acquisitions in the fourth quarter of 2023, was $36.0 million, including contingent consideration with an estimated fair value of $4.3 million, after purchase price adjustments based on the level of working capital acquired. In the first quarter of 2024, the Company recorded a measurement period adjustment of $1.3 million to increase the acquisition-date fair value of the contingent consideration transferred. The measurement period adjustment resulted in an increase to acquired identifiable intangible assets of $2.3 million and a reduction to acquired goodwill of $1.0 million . The measurement period adjustments did not have a significant impact on the Company’s results of operations. The fair value of the assets acquired and liabilities assumed for all acquisitions is preliminary as of March 31, 2024. During the first quarter ended March 31, 2023, the Company acquired all of the assets of Phil-Good Products, Inc. ("Phil-Good"). Phil-Good is an injection molded plastics component manufacturer. In another separate transaction in the first quarter of 2023, the Company acquired 100 percent of the ownership interests of Hydropompe S.r.l. ("Hydropompe"). Hydropompe is a pump manufacturer with a focus in dewatering and sewage products. The combined, all-cash purchase price for both acquisitions in the first quarter of 2023 was $8.7 million after purchase price adjustments based on the level of working capital acquired. The fair value of the assets acquired and liabilities assumed for both acquisitions is final as of March 31, 2024. The Company has not presented separate results of operations of the acquired companies since the closing of the acquisitions or combined pro forma financial information of the Company and the acquired interests as the results of operations for all 2023 acquisitions are immaterial. Transaction costs were expensed as incurred under the guidance of FASB Accounting Standards Codification Topic 805, Business Combinations and were insignificant for all periods presented.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	3 Months Ended
	Mar. 31, 2024
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 March 31, 2024 and December 31, 2023, the assets and liabilities measured at fair value on a recurring basis were as set forth in the table below: March 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 11.3 $ 11.3 $ — $ — Share swap transaction 0.6 0.6 — — Forward currency contracts 0.3 — 0.3 — Total assets $ 12.2 $ 11.9 $ 0.3 $ — Liabilities: Contingent payments related to acquisition $ 4.5 $ — $ — $ 4.5 Total liabilities $ 4.5 $ — $ — $ 4.5 December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 10.9 $ 10.9 $ — $ — Share swap transaction 1.1 1.1 — — Total assets $ 12.0 $ 12.0 $ — $ — Liabilities: Contingent payments related to acquisition $ 3.0 $ — $ — $ 3.0 Total liabilities $ 3.0 $ — $ — $ 3.0 The Company’s Level 1 cash equivalents assets are generally comprised of foreign bank guaranteed certificates of deposit and short term deposits. The share swap transaction and forward currency contracts assets are recorded within the "Receivables" lines of the condensed consolidated balance sheets and are further described in Note 5 - Financial Instruments. The Company's Level 3 category includes contingent consideration related to acquisitions, which valuation inputs are unobservable and significant to the fair value measurement. Projections and estimated probabilities are used to estimate future contingent earn-out payments, which are discounted back to present value to compute contingent earn-out liabilities. The following table provides a roll-forward of the contingent consideration liability, which is included in "Other long-term liabilities" as of December 31, 2023 and "Accrued expenses and other current liabilities" as of March 31, 2024 in the condensed consolidated balance sheets: Three Months Ended (In millions) March 31, 2024 Fair value at beginning of period $ 3.0 Adjustments to prior year acquisition 1.3 Change in fair value recognized in earnings 0.2 Payments — Fair value at end of period $ 4.5

FINANCIAL INSTRUMENTS

FINANCIAL INSTRUMENTS	3 Months Ended
	Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]
FINANCIAL INSTRUMENTS	FINANCIAL INSTRUMENTS The Company’s non-employee directors' 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 March 31, 2024 and December 31, 2023, the swap had a notional value based on 240,000 shares. For the first quarters ended March 31, 2024 and March 31, 2023, changes in the fair value of the swap resulted in gains of $2.1 million and $2.9 million, respectively. Gains resulting from the swap were largely offset by losses on the fa ir value of the deferred compensation stock liability. All gains 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. The Company is exposed to foreign currency exchange rate risk arising from transactions in the normal course of business including making sales and purchases of raw materials and finished goods in foreign denominated currencies with third party customers and suppliers as well as to wholly owned subsidiaries of the Company. To reduce its exposure to foreign currency exchange rate volatility, the Company enters into various forward currency contracts to offset these fluctuations. The Company uses forward currency contracts only in an attempt to limit underlying exposure from foreign currency exchange rate fluctuations and to minimize earnings volatility associated with foreign currency exchange rate fluctuations and has not elected to use hedge accounting. Decisions on whether to use such derivative instruments are primarily based on the amount of exposure to the currency involved and an assessment of the near-term market value for each currency. As of March 31, 2024, the Company had a notional amount of $26.5 million in forward currency contracts outstanding and the related fair value of those contracts was not material. As of December 31, 2023, the Company had no foreign currency contracts outstanding. For the first quarters ended March 31, 2024 and March 31, 2023, changes in the fair value of the forward currency contracts resulted in gains of $0.6 million and $1.0 million, respectively. These gains are recorded in the Company's condensed consolidated statements of income within the "Foreign exchange expense" line.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS	3 Months Ended
	Mar. 31, 2024
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, excluding goodwill, are as follows: (In millions) March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived intangibles: Customer relationships $ 264.7 $ (118.9) $ 263.7 $ (115.5) Patents 7.3 (7.3) 7.3 (7.3) Technology 7.5 (7.5) 7.5 (7.5) Trade names 44.1 (6.4) 44.1 (5.8) Other 3.3 (2.8) 3.4 (2.8) Total $ 326.9 $ (142.9) $ 326.0 $ (138.9) Indefinite-lived intangibles: Trade names 42.7 — 42.9 — Total intangibles $ 369.6 $ (142.9) $ 368.9 $ (138.9) Amortization expense related to intangible assets for the first quarters ended March 31, 2024 and March 31, 2023 was $4.8 million and $4.2 million, respectively. The change in the carrying amount of goodwill by reportable segment for the three months ended March 31, 2024 is as follows: (In millions) Water Systems Fueling Systems Distribution Consolidated Balance as of December 31, 2023 $ 221.4 $ 70.4 $ 50.6 $ 342.4 Adjustments to prior year acquisitions (0.7) — (0.1) (0.8) Foreign currency translation (1.1) — — (1.1) Balance as of March 31, 2024 $ 219.6 $ 70.4 $ 50.5 $ 340.5

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS	3 Months Ended
	Mar. 31, 2024
Retirement Benefits [Abstract]
EMPLOYEE BENEFIT PLANS	EMPLOYEE BENEFIT PLANS The following table sets forth the aggregated net periodic benefit cost for all pension plans for the first quarters ended March 31, 2024 and March 31, 2023: (In millions) Pension Benefits First Quarter Ended March 31, 2024 March 31, 2023 Service cost $ 0.1 $ 0.1 Interest cost 1.5 1.5 Expected return on assets (1.9) (1.8) Amortization of: Prior service cost — — Actuarial loss 0.6 0.6 Settlement cost — — Net periodic benefit cost $ 0.3 $ 0.4 The following table sets forth the aggregated net periodic benefit cost for the other post-retirement benefit plan for the first quarters ended March 31, 2024 and March 31, 2023: (In millions) Other Benefits First Quarter Ended March 31, 2024 March 31, 2023 Service cost $ — $ — Interest cost 0.1 0.1 Expected return on assets — — Amortization of: Prior service cost — — Actuarial loss — — Settlement cost — — Net periodic benefit cost $ 0.1 $ 0.1

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current	ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of: (In millions) March 31, 2024 December 31, 2023 Salaries, wages, and commissions $ 33.8 $ 45.9 Product warranty costs 8.9 9.3 Insurance 1.9 2.5 Employee benefits 6.1 13.8 Other 25.7 28.7 Total $ 76.4 $ 100.2

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s effective tax rate for the three-month period ended March 31, 2024 was 21.8 percent as compared to 21.4 percent for the three-month period ended March 31, 2023. The effective tax rate differs from the U.S. statutory rate of 21 percent primarily due to state taxes and foreign earnings taxed at rates higher than the U.S. statutory rate partially offset by the recognition of the U.S. foreign-derived intangible income (FDII) provisions and certain discrete events including excess tax benefits from share-based compensation.. The increase in the effective tax rate for the first quarter of 2024 compared to the comparable period in the prior year was primarily due to an increase in the rate on foreign earnings with the implementation of the European Union’s Pillar Two Directive.

DEBT

DEBT	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
DEBT	DEBT Debt consisted of the following: (In millions) March 31, 2024 December 31, 2023 New York Life Agreement $ 75.0 $ 75.0 Credit Agreement 23.0 11.0 Tax increment financing debt 13.5 14.1 Foreign subsidiary debt 0.4 0.5 Less: unamortized debt issuance costs (0.1) (0.1) $ 111.8 $ 100.5 Less: current maturities (24.4) (12.4) Long-term debt $ 87.4 $ 88.1 Credit Agreement As of March 31, 2024, the Company had $23.0 million outstanding borrowings with a weighted-average interest rate of 6.3 percent, $3.5 million in letters of credit outstanding, and $323.5 million of available capacity under its credit agreement. As of December 31, 2023, the Company had $11.0 million outstanding borrowings with a weighted-average interest rate of 6.3 percent, $3.6 million in letters of credit outstanding, and $335.4 million of available capacity under its credit agreement. The Company also has overdraft lines of credit for certain subsidiaries with various expiration dates. The aggregate maximum borrowing capacity of these overdraft lines of credits is $17.4 million. As of March 31, 2024, there were no outstanding borrowings and $17.4 million of available capacity under these lines of credit. As of December 31, 2023, there were $17.9 million overdraft lines of credit with no outstanding borrowings and $17.9 million of available capacity under these lines of credit.

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2024
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 non-forfeitable 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: First Quarter Ended (In millions, except per share amounts) March 31, 2024 March 31, 2023 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 33.0 $ 37.3 Less: Earnings allocated to participating securities 0.1 0.1 Net income available to common shareholders $ 32.9 $ 37.2 Denominator: Basic weighted average common shares outstanding 46.1 46.2 Effect of dilutive securities: Non-participating employee stock options, performance awards, and deferred shares to non-employee directors 0.6 0.7 Diluted weighted average common shares outstanding 46.7 46.9 Basic earnings per share $ 0.71 $ 0.81 Diluted earnings per share $ 0.70 $ 0.79

EQUITY ROLL FORWARD

EQUITY ROLL FORWARD	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
EQUITY ROLL FORWARD	EQUITY ROLL FORWARD The schedules below set forth equity changes in the first quarters ended March 31, 2024 and March 31, 2023: (In thousands) Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest Balance as of December 31, 2023 $ 4,607 $ 344,717 $ 1,078,512 $ (221,114) $ 2,426 $ 1,209,148 $ 1,145 Net income — — 32,959 — 169 33,128 (36) Dividends on common stock ($0.250/share) — — (11,560) — — (11,560) — Common stock issued 7 4,043 — — — 4,050 0 — Common stock repurchased (10) — (9,037) — — (9,047) — Share-based compensation 5 4,037 — — — 4,042 — Currency translation adjustment — — — (7,174) (41) (7,215) — Pension and other post retirement plans, net of taxes — — — 433 — 433 — Balance as of March 31, 2024 $ 4,609 $ 352,797 $ 1,090,874 $ (227,855) $ 2,554 $ 1,222,979 $ 1,109 (In thousands) Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest Balance as of December 31, 2022 $ 4,619 $ 325,426 $ 969,261 $ (231,448) $ 2,276 $ 1,070,134 $ 620 Net income — — 37,325 — 238 37,563 13 Dividends on common stock ($0.225/share) — — (10,440) — — (10,440) — Common stock issued 7 2,931 — — — 2,938 — Common stock repurchased (18) — (16,032) — — (16,050) — Share-based compensation 6 3,906 — — — 3,912 — Currency translation adjustment — — — 6,471 23 6,494 — Pension and other post retirement plans, net of taxes — — — 417 — 417 — Balance as of March 31, 2023 $ 4,614 $ 332,263 $ 980,114 $ (224,560) $ 2,537 $ 1,094,968 $ 633

ACCUMULATED OTHER COMPREHENSIVE

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) Changes in accumulated other comprehensive income/(loss) by component for the three months ended March 31, 2024 and March 31, 2023, are summarized below: (In millions) Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments (2) Total For the three months ended March 31, 2024: Balance as of December 31, 2023 $ (179.3) $ (41.8) $ (221.1) Other comprehensive income/(loss) before reclassifications (7.2) — (7.2) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 0.4 0.4 Net other comprehensive income/(loss) (7.2) 0.4 (6.8) Balance as of March 31, 2024 $ (186.5) $ (41.4) $ (227.9) For the three months ended March 31, 2023: Balance as of December 31, 2022 $ (191.3) $ (40.1) $ (231.4) Other comprehensive income/(loss) before reclassifications 6.5 — 6.5 Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 0.3 0.3 Net other comprehensive income/(loss) 6.5 0.3 6.8 Balance as of March 31, 2023 $ (184.8) $ (39.8) $ (224.6) (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, net" line of the Company's condensed consolidated statements of income. (2) Net of tax expense of $0.1 million for the three months ended March 31, 2024 and March 31, 2023, respectively. Amounts related to noncontrolling interests were not material.

SEGMENT AND GEOGRAPHIC INFORMAT

SEGMENT AND GEOGRAPHIC INFORMATION	3 Months Ended
	Mar. 31, 2024
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 Annual Report on Form 10-K for the year ended December 31, 2023. 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: First Quarter Ended (In millions) March 31, 2024 March 31, 2023 Net sales Water Systems External sales United States & Canada $ 137.9 $ 159.4 Latin America 41.3 40.3 Europe, Middle East & Africa 52.3 50.4 Asia Pacific 20.3 18.8 Intersegment sales United States & Canada 34.8 37.7 Total sales 286.6 306.6 Distribution External sales United States & Canada 147.0 143.0 Intersegment sales — — Total sales 147.0 143.0 Fueling Systems External sales United States & Canada 46.8 54.0 All other 15.3 18.7 Intersegment sales — — Total sales 62.1 72.7 Intersegment Eliminations/Other (34.8) (37.7) Consolidated $ 460.9 $ 484.6 First Quarter Ended March 31, 2024 March 31, 2023 Operating income/(loss) Water Systems $ 47.1 $ 49.0 Distribution 1.8 4.7 Fueling Systems 18.8 20.8 Intersegment Eliminations/Other (19.8) (21.9) Consolidated $ 47.9 $ 52.6 March 31, 2024 December 31, 2023 Total assets Water Systems $ 1,053.7 $ 1,044.4 Distribution 402.2 365.6 Fueling Systems 254.5 256.4 Other 62.7 61.7 Consolidated $ 1,773.1 $ 1,728.1 Other Assets are generally Corporate assets that are not allocated to the segments and are comprised primarily of cash and property, plant and equipment.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2024
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES In 2011, the Company became aware of a review of alleged issues with certain underground piping connections installed in filling stations in France owned by the French Subsidiary of Exxon Mobile, Esso S.A.F. A French court ordered that a designated, subject-matter expert review 103 filling stations to determine what, if any, damages are present and the cause of those damages. The Company has participated in this investigation since 2011, along with several other third parties including equipment installers, engineering design firms who designed and provided specifications for the stations, and contract manufacturers of some of the installed equipment. In May 2022, the subject-matter expert issued its final report, which indicates that total damages incurred by Esso amounted to approximately 9.5 million Euro. It is the Company’s position that its products were not the cause of any alleged damage. The Company submitted its response to the expert's final report in February 2023. The Company cannot predict the ultimate outcome of this matter. Any exposure related to this matter is neither probable nor estimable at this time. If payments result from a resolution of this matter, depending on the amount, they could have a material effect on the Company’s financial position, results of operations, or cash flows. The Company is defending other 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 March 31, 2024, the Company had $9.5 million of commitments primarily for capital expenditures and purchase of raw materials to be used in production and finished goods. At March 31, 2024, the Company has a contingent consideration liability with an estimated fair value of $4.5 million that could result in a payment up to $5.0 million if a future profitability milestone is achieved. 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 three months ended March 31, 2024, are as follows: (In millions) Balance as of December 31, 2023 $ 9.3 Accruals related to product warranties 2.7 Reductions for payments made (3.1) Balance as of March 31, 2024 $ 8.9

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net income attributable to Franklin Electric Co., Inc.	$ 32,959	$ 37,325

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Material Terms of Trading Arrangement	None of the Company’s directors or officers adopted, modified, or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5-1 trading arrangement during the Company’s fiscal quarter ended March 31, 2024.
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

ACCOUNTING PRONOUNCEMENTS (Poli

ACCOUNTING PRONOUNCEMENTS (Policies)	3 Months Ended
	Mar. 31, 2024
Accounting Changes and Error Corrections [Abstract]
Adoption of New Accounting Standards	Accounting Standards Issued But Not Yet Adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . ASU 2023-07 is intended to improve reportable segment disclosure requirements, primarily through additional and more detailed information about a reportable segment's expenses. ASU 2023-07 is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The guidance is to be applied retrospectively to all prior periods presented in the financial statements. The Company plans to adopt this ASU for its fiscal year end December 31, 2024 disclosures, but does not anticipate the adoption to have a material impact on the Company's financial disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . ASU 2023-09 is intended to enhance the transparency and decision usefulness of income tax disclosures. This amendment modifies the rules on income tax disclosures to require entities to disclose (1) specific categories in the rate reconciliation and additional information for reconciling items that meet a quantitative threshold, (2) the amount of income taxes paid (net of refunds received) (disaggregated by federal, state, and foreign taxes) as well as individual jurisdictions in which income taxes paid is equal to or greater than 5 percent of total income taxes paid net of refunds, (3) the income or loss from continuing operations before income tax expense or benefit (disaggregated between domestic and foreign) and (4) income tax expense or benefit from continuing operations (disaggregated by federal, state and foreign). ASU 2023-09 is effective for annual periods beginning after December 15, 2024, with early adoption permitted. ASU 2023-09 should be applied on a prospective basis, while retrospective application is permitted. 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 financial disclosures.

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	3 Months Ended
	Mar. 31, 2024
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets Measured on Recurring Basis	As of March 31, 2024 and December 31, 2023, the assets and liabilities measured at fair value on a recurring basis were as set forth in the table below: March 31, 2024 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 11.3 $ 11.3 $ — $ — Share swap transaction 0.6 0.6 — — Forward currency contracts 0.3 — 0.3 — Total assets $ 12.2 $ 11.9 $ 0.3 $ — Liabilities: Contingent payments related to acquisition $ 4.5 $ — $ — $ 4.5 Total liabilities $ 4.5 $ — $ — $ 4.5 December 31, 2023 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Cash equivalents $ 10.9 $ 10.9 $ — $ — Share swap transaction 1.1 1.1 — — Total assets $ 12.0 $ 12.0 $ — $ — Liabilities: Contingent payments related to acquisition $ 3.0 $ — $ — $ 3.0 Total liabilities $ 3.0 $ — $ — $ 3.0
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation	The following table provides a roll-forward of the contingent consideration liability, which is included in "Other long-term liabilities" as of December 31, 2023 and "Accrued expenses and other current liabilities" as of March 31, 2024 in the condensed consolidated balance sheets: Three Months Ended (In millions) March 31, 2024 Fair value at beginning of period $ 3.0 Adjustments to prior year acquisition 1.3 Change in fair value recognized in earnings 0.2 Payments — Fair value at end of period $ 4.5

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)	3 Months Ended
	Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	The carrying amounts of the Company’s intangible assets, excluding goodwill, are as follows: (In millions) March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived intangibles: Customer relationships $ 264.7 $ (118.9) $ 263.7 $ (115.5) Patents 7.3 (7.3) 7.3 (7.3) Technology 7.5 (7.5) 7.5 (7.5) Trade names 44.1 (6.4) 44.1 (5.8) Other 3.3 (2.8) 3.4 (2.8) Total $ 326.9 $ (142.9) $ 326.0 $ (138.9) Indefinite-lived intangibles: Trade names 42.7 — 42.9 — Total intangibles $ 369.6 $ (142.9) $ 368.9 $ (138.9)
Schedule of Indefinite-Lived Intangible Assets	The carrying amounts of the Company’s intangible assets, excluding goodwill, are as follows: (In millions) March 31, 2024 December 31, 2023 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Definite-lived intangibles: Customer relationships $ 264.7 $ (118.9) $ 263.7 $ (115.5) Patents 7.3 (7.3) 7.3 (7.3) Technology 7.5 (7.5) 7.5 (7.5) Trade names 44.1 (6.4) 44.1 (5.8) Other 3.3 (2.8) 3.4 (2.8) Total $ 326.9 $ (142.9) $ 326.0 $ (138.9) Indefinite-lived intangibles: Trade names 42.7 — 42.9 — Total intangibles $ 369.6 $ (142.9) $ 368.9 $ (138.9)
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 three months ended March 31, 2024 is as follows: (In millions) Water Systems Fueling Systems Distribution Consolidated Balance as of December 31, 2023 $ 221.4 $ 70.4 $ 50.6 $ 342.4 Adjustments to prior year acquisitions (0.7) — (0.1) (0.8) Foreign currency translation (1.1) — — (1.1) Balance as of March 31, 2024 $ 219.6 $ 70.4 $ 50.5 $ 340.5

EMPLOYEE BENEFIT PLANS (Tables)

EMPLOYEE BENEFIT PLANS (Tables)	3 Months Ended
	Mar. 31, 2024
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 first quarters ended March 31, 2024 and March 31, 2023: (In millions) Pension Benefits First Quarter Ended March 31, 2024 March 31, 2023 Service cost $ 0.1 $ 0.1 Interest cost 1.5 1.5 Expected return on assets (1.9) (1.8) Amortization of: Prior service cost — — Actuarial loss 0.6 0.6 Settlement cost — — Net periodic benefit cost $ 0.3 $ 0.4
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 first quarters ended March 31, 2024 and March 31, 2023: (In millions) Other Benefits First Quarter Ended March 31, 2024 March 31, 2023 Service cost $ — $ — Interest cost 0.1 0.1 Expected return on assets — — Amortization of: Prior service cost — — Actuarial loss — — Settlement cost — — Net periodic benefit cost $ 0.1 $ 0.1

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	3 Months Ended
	Mar. 31, 2024
Payables and Accruals [Abstract]
Schedule of Accrued Liabilities	Accrued expenses and other current liabilities consist of: (In millions) March 31, 2024 December 31, 2023 Salaries, wages, and commissions $ 33.8 $ 45.9 Product warranty costs 8.9 9.3 Insurance 1.9 2.5 Employee benefits 6.1 13.8 Other 25.7 28.7 Total $ 76.4 $ 100.2

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2024
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Debt consisted of the following: (In millions) March 31, 2024 December 31, 2023 New York Life Agreement $ 75.0 $ 75.0 Credit Agreement 23.0 11.0 Tax increment financing debt 13.5 14.1 Foreign subsidiary debt 0.4 0.5 Less: unamortized debt issuance costs (0.1) (0.1) $ 111.8 $ 100.5 Less: current maturities (24.4) (12.4) Long-term debt $ 87.4 $ 88.1

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2024
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: First Quarter Ended (In millions, except per share amounts) March 31, 2024 March 31, 2023 Numerator: Net income attributable to Franklin Electric Co., Inc. $ 33.0 $ 37.3 Less: Earnings allocated to participating securities 0.1 0.1 Net income available to common shareholders $ 32.9 $ 37.2 Denominator: Basic weighted average common shares outstanding 46.1 46.2 Effect of dilutive securities: Non-participating employee stock options, performance awards, and deferred shares to non-employee directors 0.6 0.7 Diluted weighted average common shares outstanding 46.7 46.9 Basic earnings per share $ 0.71 $ 0.81 Diluted earnings per share $ 0.70 $ 0.79

EQUITY ROLL FORWARD (Tables)

EQUITY ROLL FORWARD (Tables)	3 Months Ended
	Mar. 31, 2024
Stockholders' Equity Note [Abstract]
Schedule of Stockholders' Equity	The schedules below set forth equity changes in the first quarters ended March 31, 2024 and March 31, 2023: (In thousands) Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest Balance as of December 31, 2023 $ 4,607 $ 344,717 $ 1,078,512 $ (221,114) $ 2,426 $ 1,209,148 $ 1,145 Net income — — 32,959 — 169 33,128 (36) Dividends on common stock ($0.250/share) — — (11,560) — — (11,560) — Common stock issued 7 4,043 — — — 4,050 0 — Common stock repurchased (10) — (9,037) — — (9,047) — Share-based compensation 5 4,037 — — — 4,042 — Currency translation adjustment — — — (7,174) (41) (7,215) — Pension and other post retirement plans, net of taxes — — — 433 — 433 — Balance as of March 31, 2024 $ 4,609 $ 352,797 $ 1,090,874 $ (227,855) $ 2,554 $ 1,222,979 $ 1,109 (In thousands) Common Stock Additional Paid in Capital Retained Earnings Accumulated Other Comprehensive Income/(Loss) Noncontrolling Interest Total Equity Redeemable Noncontrolling Interest Balance as of December 31, 2022 $ 4,619 $ 325,426 $ 969,261 $ (231,448) $ 2,276 $ 1,070,134 $ 620 Net income — — 37,325 — 238 37,563 13 Dividends on common stock ($0.225/share) — — (10,440) — — (10,440) — Common stock issued 7 2,931 — — — 2,938 — Common stock repurchased (18) — (16,032) — — (16,050) — Share-based compensation 6 3,906 — — — 3,912 — Currency translation adjustment — — — 6,471 23 6,494 — Pension and other post retirement plans, net of taxes — — — 417 — 417 — Balance as of March 31, 2023 $ 4,614 $ 332,263 $ 980,114 $ (224,560) $ 2,537 $ 1,094,968 $ 633

ACCUMULATED OTHER COMPREHENSI_2

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables)	3 Months Ended
	Mar. 31, 2024
Equity [Abstract]
ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)	Changes in accumulated other comprehensive income/(loss) by component for the three months ended March 31, 2024 and March 31, 2023, are summarized below: (In millions) Foreign Currency Translation Adjustments Pension and Post-Retirement Plan Benefit Adjustments (2) Total For the three months ended March 31, 2024: Balance as of December 31, 2023 $ (179.3) $ (41.8) $ (221.1) Other comprehensive income/(loss) before reclassifications (7.2) — (7.2) Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 0.4 0.4 Net other comprehensive income/(loss) (7.2) 0.4 (6.8) Balance as of March 31, 2024 $ (186.5) $ (41.4) $ (227.9) For the three months ended March 31, 2023: Balance as of December 31, 2022 $ (191.3) $ (40.1) $ (231.4) Other comprehensive income/(loss) before reclassifications 6.5 — 6.5 Amounts reclassified from accumulated other comprehensive income/(loss) (1) — 0.3 0.3 Net other comprehensive income/(loss) 6.5 0.3 6.8 Balance as of March 31, 2023 $ (184.8) $ (39.8) $ (224.6) (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, net" line of the Company's condensed consolidated statements of income. (2) Net of tax expense of $0.1 million for the three months ended March 31, 2024 and March 31, 2023, respectively.

SEGMENT AND GEOGRAPHIC INFORM_2

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2024
Segment Reporting [Abstract]
Schedule of Financial Information by Reportable Business Segment	Financial information by reportable business segment is included in the following summary: First Quarter Ended (In millions) March 31, 2024 March 31, 2023 Net sales Water Systems External sales United States & Canada $ 137.9 $ 159.4 Latin America 41.3 40.3 Europe, Middle East & Africa 52.3 50.4 Asia Pacific 20.3 18.8 Intersegment sales United States & Canada 34.8 37.7 Total sales 286.6 306.6 Distribution External sales United States & Canada 147.0 143.0 Intersegment sales — — Total sales 147.0 143.0 Fueling Systems External sales United States & Canada 46.8 54.0 All other 15.3 18.7 Intersegment sales — — Total sales 62.1 72.7 Intersegment Eliminations/Other (34.8) (37.7) Consolidated $ 460.9 $ 484.6 First Quarter Ended March 31, 2024 March 31, 2023 Operating income/(loss) Water Systems $ 47.1 $ 49.0 Distribution 1.8 4.7 Fueling Systems 18.8 20.8 Intersegment Eliminations/Other (19.8) (21.9) Consolidated $ 47.9 $ 52.6 March 31, 2024 December 31, 2023 Total assets Water Systems $ 1,053.7 $ 1,044.4 Distribution 402.2 365.6 Fueling Systems 254.5 256.4 Other 62.7 61.7 Consolidated $ 1,773.1 $ 1,728.1

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	3 Months Ended
	Mar. 31, 2024
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 three months ended March 31, 2024, are as follows: (In millions) Balance as of December 31, 2023 $ 9.3 Accruals related to product warranties 2.7 Reductions for payments made (3.1) Balance as of March 31, 2024 $ 8.9

ACQUISITIONS (Narrative) (Detai

ACQUISITIONS (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023
Business Acquisition
Goodwill, Purchase Accounting Adjustments	$ 0.8
Hydropompe Srl [Domain]
Business Acquisition
Business acquisition, percentage of voting interests acquired			100%
Series of Individually Immaterial Business Acquisitions
Business Acquisition
Total purchase price		$ 36	$ 8.7
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	1.3
Goodwill, Purchase Accounting Adjustments	1
Finite-Lived Intangible Assets, Purchase Accounting Adjustments	$ 2.3
Business Combination, Contingent Consideration, Liability		$ 4.3

FAIR VALUE MEASUREMENTS (Detail

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Total debt, carrying value	$ 111.8	$ 100.5
Acquisition-related Costs
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability Value	4.5	3
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	0.2
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances	1.3
Recurring Basis
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	11.3	10.9
Equity Securities, FV-NI	0.6	1.1
Foreign Currency Contract, Asset, Fair Value Disclosure	0.3
Assets, Fair Value Disclosure	12.2	12
Financial Liabilities Fair Value Disclosure	4.5	3
Business Combination, Contingent Consideration, Liability	4.5	3
Recurring Basis | Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	11.3	10.9
Equity Securities, FV-NI	0.6	1.1
Foreign Currency Contract, Asset, Fair Value Disclosure	0
Assets, Fair Value Disclosure	11.9	12
Financial Liabilities Fair Value Disclosure	0	0
Business Combination, Contingent Consideration, Liability	0	0
Recurring Basis | Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	0	0
Equity Securities, FV-NI	0	0
Foreign Currency Contract, Asset, Fair Value Disclosure	0.3
Assets, Fair Value Disclosure	0.3	0
Financial Liabilities Fair Value Disclosure	0	0
Business Combination, Contingent Consideration, Liability	0	0
Recurring Basis | Significant Unobservable Inputs (Level 3)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	0	0
Equity Securities, FV-NI	0	0
Foreign Currency Contract, Asset, Fair Value Disclosure	0
Assets, Fair Value Disclosure	0	0
Financial Liabilities Fair Value Disclosure	4.5	3
Business Combination, Contingent Consideration, Liability	4.5	3
Carrying value
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Total debt, carrying value	111.8	100.5
Fair value | Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Total debt, fair value	$ 109.1	$ 98.6

FINANCIAL INSTRUMENTS (Details)

FINANCIAL INSTRUMENTS (Details) - Not Designated as Hedging Instrument $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($) shares	Mar. 31, 2023 USD ($)	Dec. 31, 2023 USD ($) shares
Share swap transaction agreement
Derivative
Derivative cancellable written notice term	30 days
Derivative notional amount (in shares) | shares	240,000		240,000
Share swap transaction agreement | Selling, general, and administrative expenses
Derivative
Gain on derivative	$ 2.1	$ 2.9
Foreign Exchange Forward
Derivative
Derivative, Notional Amount	26.5		$ 0
Foreign Exchange Forward | Foreign Currency Gain (Loss)
Derivative
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments	$ 0.6	$ 1

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Intangible Assets
Gross carrying amount, amortized intangibles	$ 326.9		$ 326
Gross carrying amount, total intangibles	369.6		368.9
Accumulated amortization	(142.9)		(138.9)
Amortization of Intangible Assets	4.8	$ 4.2
Trade Names
Intangible Assets
Gross carrying amount, unamortized intangibles	42.7		42.9
Customer Relationships
Intangible Assets
Gross carrying amount, amortized intangibles	264.7		263.7
Accumulated amortization	(118.9)		(115.5)
Patents
Intangible Assets
Gross carrying amount, amortized intangibles	7.3		7.3
Accumulated amortization	(7.3)		(7.3)
Technology
Intangible Assets
Gross carrying amount, amortized intangibles	7.5		7.5
Accumulated amortization	(7.5)		(7.5)
Trade Names
Intangible Assets
Gross carrying amount, amortized intangibles	44.1		44.1
Accumulated amortization	(6.4)		(5.8)
Other
Intangible Assets
Gross carrying amount, amortized intangibles	3.3		3.4
Accumulated amortization	$ (2.8)		$ (2.8)

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Goodwill
Goodwill, beginning balance	$ 342,404
Goodwill, Purchase Accounting Adjustments	(800)
Foreign currency translation	(1,100)
Goodwill, ending balance	340,454
Water Systems
Goodwill
Goodwill, beginning balance	221,400
Goodwill, Purchase Accounting Adjustments	(700)
Foreign currency translation	(1,100)
Goodwill, ending balance	219,600
Fueling Systems
Goodwill
Goodwill, beginning balance	70,400
Goodwill, Purchase Accounting Adjustments	0
Foreign currency translation	0
Goodwill, ending balance	70,400
Distribution
Goodwill
Goodwill, beginning balance	50,600
Goodwill, Purchase Accounting Adjustments	(100)
Foreign currency translation	0
Goodwill, ending balance	$ 50,500

EMPLOYEE BENEFIT PLANS (Details

EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pension Plan
Net Periodic Benefit Cost
Service cost	$ 0.1	$ 0.1
Interest cost	1.5	1.5
Expected return on assets	(1.9)	(1.8)
Amortization of Prior Service Cost	0	0
Amortization of actuarial loss	0.6	0.6
Settlement cost	0	0
Net periodic benefit cost	0.3	0.4
Other Benefits
Net Periodic Benefit Cost
Service cost	0	0
Interest cost	0.1	0.1
Expected return on assets	0	0
Amortization of Prior Service Cost	0	0
Amortization of actuarial loss	0	0
Settlement cost	0	0
Net periodic benefit cost	$ 0.1	$ 0.1

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Salaries, wages, and commissions	$ 33.8	$ 45.9
Product warranty costs	8.9	9.3
Insurance	1.9	2.5
Employee benefits	6.1	13.8
Other	25.7	28.7
Accrued expenses and other current liabilities	$ 76.4	$ 100.2

INCOME TAXES (Details)

INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	21.80%	21.40%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21%

DEBT (Schedule of Debt) (Detail

DEBT (Schedule of Debt) (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Debt Instrument
Less: unamortized debt issuance costs	$ (100)	$ (100)
Total debt and capital leases	111,800	100,500
Less: current maturities	(24,414)	(12,355)
Long-term debt	87,406	88,056
Tax increment financing debt
Debt Instrument
Long-term Debt, Gross	13,500	14,100
Foreign subsidiary debt
Debt Instrument
Long-term Debt, Gross	400	500
Credit Agreement
Debt Instrument
Long-term Debt, Gross	23,000	11,000
Remaining borrowing capacity	323,500	335,400
New York Life Investors LLC
Debt Instrument
Long-term Debt, Gross	$ 75,000	$ 75,000

DEBT (Details)

DEBT (Details) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Bank Overdrafts
Line of Credit Facility
Total borrowing capacity of facility	$ 17.4	$ 17.9
Outstanding borrowings	0	0
Remaining borrowing capacity	17.4	17.9
Credit Agreement
Line of Credit Facility
Outstanding borrowings	$ 23	$ 11
Line of Credit Facility, Interest Rate During Period	6.30%	6.30%
Letters of credit outstanding	$ 3.5	$ 3.6
Remaining borrowing capacity	$ 323.5	$ 335.4

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Numerator:
Net income attributable to Franklin Electric Co., Inc.	$ 32,959	$ 37,325
Less: Earnings allocated to participating securities	100	100
Net income available to common shareholders	$ 32,900	$ 37,200
Basic
Basic weighted average common shares outstanding	46.1	46.2
Effect of dilutive securities:
Non-participating employee stock options, performance awards, and deferred shares to non-employee directors	0.6	0.7
Diluted weighted average common shares outstanding	46.7	46.9
Basic	$ 0.71	$ 0.81
Diluted	$ 0.70	$ 0.79
Anti-dilutive stock options (in shares)	0.1	0.1

EQUITY ROLL FORWARD (Details)

EQUITY ROLL FORWARD (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Common Stock, Dividends, Per Share, Cash Paid	$ 0.250	$ 0.225
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	$ 1,209,148
Net income	33,092	$ 37,576
Equity, ending balance	1,222,979
Temporary equity, beginning balance	1,145	620
Net income	(36)	13
Temporary Equity, Foreign Currency Translation Adjustments	0	0
Temporary equity, ending balance	1,109	633
Common Stock
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	4,607	4,619
Stock Issued During Period, Value, New Issues	7	7
Stock Repurchased and Retired During Period, Value	(10)	(18)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	5	6
Equity, ending balance	4,609	4,614
Additional Paid in Capital
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	344,717	325,426
Stock Issued During Period, Value, New Issues	4,043	2,931
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	4,037	3,906
Equity, ending balance	352,797	332,263
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	1,078,512	969,261
Net income	32,959	37,325
Dividends, Common Stock, Cash	(11,560)	(10,440)
Stock Repurchased and Retired During Period, Value	(9,037)	(16,032)
Equity, ending balance	1,090,874	980,114
Accumulated Other Comprehensive Income/(Loss)
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	(221,114)	(231,448)
Currency translation adjustment	(7,174)	6,471
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	433	417
Equity, ending balance	(227,855)	(224,560)
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	2,426	2,276
Net income	169	238
Currency translation adjustment	(41)	23
Equity, ending balance	2,554	2,537
Total Equity
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	1,209,148	1,070,134
Net income	33,128	37,563
Dividends, Common Stock, Cash	(11,560)	(10,440)
Stock Issued During Period, Value, New Issues	4,050	2,938
Stock Repurchased and Retired During Period, Value	(9,047)	(16,050)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	4,042	3,912
Currency translation adjustment	(7,215)	6,494
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	433	417
Equity, ending balance	$ 1,222,979	$ 1,094,968

ACCUMULATED OTHER COMPREHENSI_3

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Equity, beginning balance	$ 1,209,148
Net other comprehensive income/(loss)	(6,782)	$ 6,911
Equity, ending balance	1,222,979
Income tax expense related to items of other comprehensive income/(loss)	143	138
Foreign Currency Translation Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Equity, beginning balance	(179,300)	(191,300)
Other comprehensive income/(loss) before reclassifications	(7,200)	6,500
Amounts reclassified from accumulated other comprehensive income/(loss) (1)	0	0
Net other comprehensive income/(loss)	(7,200)	6,500
Equity, ending balance	(186,500)	(184,800)
Pension and Post-Retirement Plan Benefit Adjustments
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Equity, beginning balance	(41,800)	(40,100)
Other comprehensive income/(loss) before reclassifications	0	0
Amounts reclassified from accumulated other comprehensive income/(loss) (1)	400	300
Net other comprehensive income/(loss)	400	300
Equity, ending balance	(41,400)	(39,800)
AOCI Including Portion Attributable to Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Equity, beginning balance	(221,100)	(231,400)
Other comprehensive income/(loss) before reclassifications	(7,200)	6,500
Amounts reclassified from accumulated other comprehensive income/(loss) (1)	400	300
Net other comprehensive income/(loss)	(6,800)	6,800
Equity, ending balance	$ (227,900)	$ (224,600)

SEGMENT AND GEOGRAPHIC INFORM_3

SEGMENT AND GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Segment Reporting Information
Net sales	$ 460,900	$ 484,551
Operating income/(loss)	47,936	52,606
Total assets	1,773,107		$ 1,728,122
Corporate And Eliminations
Segment Reporting Information
Net sales	(34,800)	(37,700)
Operating income/(loss)	(19,800)	(21,900)
Total assets	62,700		61,700
Water Systems | Operating Segments
Segment Reporting Information
Net sales	286,600	306,600
Operating income/(loss)	47,100	49,000
Total assets	1,053,700		1,044,400
Water Systems | United States & Canada
Segment Reporting Information
Net sales	137,900	159,400
Water Systems | United States & Canada | Intersegment Sales
Segment Reporting Information
Net sales	34,800	37,700
Water Systems | Latin America
Segment Reporting Information
Net sales	41,300	40,300
Water Systems | EMEA
Segment Reporting Information
Net sales	52,300	50,400
Water Systems | Asia Pacific
Segment Reporting Information
Net sales	20,300	18,800
Distribution | Operating Segments
Segment Reporting Information
Net sales	147,000	143,000
Operating income/(loss)	1,800	4,700
Total assets	402,200		365,600
Distribution | United States & Canada
Segment Reporting Information
Net sales	147,000	143,000
Distribution | United States & Canada | Intersegment Sales
Segment Reporting Information
Net sales	0	0
Fueling Systems | Operating Segments
Segment Reporting Information
Net sales	62,100	72,700
Operating income/(loss)	18,800	20,800
Total assets	254,500		$ 256,400
Fueling Systems | Intersegment Sales
Segment Reporting Information
Net sales	0	0
Fueling Systems | United States & Canada
Segment Reporting Information
Net sales	46,800	54,000
Fueling Systems | All Other
Segment Reporting Information
Net sales	15,300	18,700
Consolidated
Segment Reporting Information
Net sales	$ 460,900	$ 484,600

COMMITMENTS AND CONTINGENCIES_2

COMMITMENTS AND CONTINGENCIES (Details) € in Millions, $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)	Mar. 31, 2024 EUR (€)	Dec. 31, 2023 USD ($)
Commitments
Purchase obligations	$ 9.5
Changes in the Carrying Amount of the Warranty Accrual
Beginning balance	9.3
Accruals related to product warranties	2.7
Reductions for payments made	(3.1)
Ending balance	8.9
Recurring Basis
Loss Contingencies
Business Combination, Contingent Consideration, Liability	4.5		$ 3
Changes in the Carrying Amount of the Warranty Accrual
Business Combination, Contingent Consideration, Liability	4.5		3
Series of Individually Immaterial Business Acquisitions
Loss Contingencies
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	5
Business Combination, Contingent Consideration, Liability			4.3
Changes in the Carrying Amount of the Warranty Accrual
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	$ 5
Business Combination, Contingent Consideration, Liability			$ 4.3
Esso S.A.F. | Pending Litigation | Damages from Product Defects
Loss Contingencies
Loss Contingency, Damages Sought, Value | €		€ 9.5