Form 10-Q - Quarterly report [Sections 13 or 15(d)]

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_________

FORM 10-Q

_________

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _____ to _____

Commission file number 0-362

FRANKLIN ELECTRIC CO., INC.

(Exact name of registrant as specified in its charter)


Indiana		35-0827455
(State or other jurisdiction of incorporation or organization)		(I.R.S. Employer Identification No.)

9255 Coverdale Road
Fort Wayne,	Indiana	46809
(Address of principal executive offices)		(Zip Code)

(260) 824-2900

(Registrant's telephone number, including area code)

Not Applicable

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:

Common Stock, $0.10 par value

FELE

NASDAQ

Global Select Market

(Title of each class)

(Trading symbol)

(Name of each exchange on which registered)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.


Yes			☒			No			☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).


Yes			☒			No			☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Non-Accelerated Filer

☐

Smaller Reporting Company

☐

Emerging Growth Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act).


Yes			☐			No			☒

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


						Outstanding at
Class of Common Stock Par Value						October 25, 2024
$0.10						45,687,354 shares

FRANKLIN ELECTRIC CO., INC.

TABLE OF CONTENTS


		Page
PART I.	FINANCIAL INFORMATION	Number

Item 1.	Condensed Consolidated Financial Statements (Unaudited)	4
	Condensed Consolidated Statements of Income for the Third Quarters and Nine Months Ended September 30, 2024 and 2023 (Unaudited)	4
	Condensed Consolidated Statements of Comprehensive Income/(Loss) for the Third Quarters and Nine Months Ended September 30, 2024 and 2023 (Unaudited)	5
	Condensed Consolidated Balance Sheets as of September 30, 2024 and December 31, 2023 (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the Nine Months Ended September 30, 2024 and 2023 (Unaudited)	8
	Notes to Condensed Consolidated Financial Statements (Unaudited)	10
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	23
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	29
Item 4.	Controls and Procedures	29


PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	30
Item 1A.	Risk Factors	30
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	30
Item 5.	Other Information	30
Item 6.	Exhibits	31

Signatures		32

PART I - FINANCIAL INFORMATION

ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)


	Third Quarter Ended				Nine Months Ended
(In thousands, except per share amounts)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

Net sales	$	531,438	$	538,431	$	1,535,596	$	1,592,163
Cost of sales	341,775		352,178		982,556		1,055,164
Gross profit	189,663		186,253		553,040		536,999
Selling, general, and administrative expenses	115,998		107,687		352,290		324,651
Restructuring expense	139		462		139		735
Operating income	73,526		78,104		200,611		211,613
Interest expense	(1,556)		(2,984)		(4,980)		(10,309)
Other (expense) income, net	(181)		277		709		1,865
Foreign exchange income (expense), net	88		(2,483)		(5,228)		(8,098)
Income before income taxes	71,877		72,914		191,112		195,071
Income tax expense	16,983		14,746		43,795		39,167
Net income	$	54,894	$	58,168	$	147,317	$	155,904
Less: Net income attributable to noncontrolling interests	(298)		(370)		(663)		(1,181)
Net income attributable to Franklin Electric Co., Inc.	$	54,596	$	57,798	$	146,654	$	154,723
Earnings per share:
Basic	$	1.19	$	1.25	$	3.18	$	3.34
Diluted	$	1.17	$	1.23	$	3.14	$	3.29

See Notes to Condensed Consolidated Financial Statements.

FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME/(LOSS)

(Unaudited)


	Third Quarter Ended				Nine Months Ended
(In thousands)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023

Net income	$	54,894	$	58,168	$	147,317	$	155,904
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	8,706		(10,851)		(8,808)		138
Employee benefit plan activity	553		513		1,706		1,623
Other comprehensive income/(loss)	9,259		(10,338)		(7,102)		1,761
Income tax expense related to items of other comprehensive income/(loss)	(137)		(128)		(423)		(405)
Other comprehensive income/(loss), net of tax	9,122		(10,466)		(7,525)		1,356
Comprehensive income	64,016		47,702		139,792		157,260
Less: Comprehensive income attributable to noncontrolling interests	(383)		(294)		(692)		(1,141)
Comprehensive income attributable to Franklin Electric Co., Inc.	$	63,633	$	47,408	$	139,100	$	156,119

See Notes to Condensed Consolidated Financial Statements.

FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)


(In thousands, except per share amounts)	September 30, 2024		December 31, 2023

ASSETS
Current assets:
Cash and cash equivalents	$	106,273	$	84,963
Receivables, less allowances of $3,871 and $3,594, respectively	272,003		222,418
Inventories:
Raw material	173,354		176,706
Work-in-process	28,894		26,880
Finished goods	322,399		305,110
Total inventories	524,647		508,696
Other current assets	39,560		37,718
Total current assets	942,483		853,795

Property, plant, and equipment, at cost:
Land and buildings	165,359		167,028
Machinery and equipment	322,113		316,227
Furniture and fixtures	59,211		56,997
Other	64,900		59,747
Property, plant, and equipment, gross	611,583		599,999
Less: Allowance for depreciation	(385,511)		(370,260)
Property, plant, and equipment, net	226,072		229,739
Lease right-of-use assets, net	62,694		57,014
Deferred income taxes	9,558		8,758
Intangible assets, net	217,253		230,027
Goodwill	341,092		342,404
Other assets	8,091		6,385
Total assets	$	1,807,243	$	1,728,122


	September 30, 2024		December 31, 2023
LIABILITIES AND EQUITY
Current liabilities:
Accounts payable	$	173,935	$	152,419
Accrued expenses and other current liabilities	115,795		100,249
Current lease liability	17,963		17,316
Income taxes	9,070		4,700
Current maturities of long-term debt and short-term borrowings	76,402		12,355
Total current liabilities	393,165		287,039
Long-term debt	11,581		88,056
Long-term lease liability	43,484		38,549
Income taxes payable non-current	—		4,837
Deferred income taxes	31,128		29,461
Employee benefit plans	30,781		35,973
Other long-term liabilities	23,219		33,914

Commitments and contingencies (see Note 15)

Redeemable noncontrolling interest	1,179		1,145

Shareholders' equity:
Common stock (65,000 shares authorized, $.10 par value) outstanding (45,687 and 46,067, respectively)	4,569		4,607
Additional paid-in capital	360,092		344,717
Retained earnings	1,133,650		1,078,512
Accumulated other comprehensive loss	(228,668)		(221,114)
Total shareholders' equity	1,269,643		1,206,722
Noncontrolling interest	3,063		2,426
Total equity	1,272,706		1,209,148
Total liabilities and equity	$	1,807,243	$	1,728,122

See Notes to Condensed Consolidated Financial Statements.

FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)


	Nine Months Ended
(In thousands)	September 30, 2024		September 30, 2023

Cash flows from operating activities:
Net income	$	147,317	$	155,904
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	41,825		39,582
Non-cash lease expense	15,223		12,664
Share-based compensation	10,127		8,449

Deferred income taxes	350		2,305
(Gain)/loss on disposals of plant and equipment	(400)		491
Foreign exchange expense	5,228		8,098
Changes in assets and liabilities, net of acquisitions:
Receivables	(51,440)		(20,427)
Inventory	(18,760)		2,537
Accounts payable and accrued expenses	17,218		4,376
Operating leases	(15,700)		(12,847)
Income taxes	1,718		(2,667)
Income taxes-U.S. Tax Cuts and Jobs Act	(3,870)		(2,902)
Employee benefit plans	(315)		603
Other, net	2,565		2,463
Net cash flows from operating activities	151,086		198,629
Cash flows from investing activities:
Additions to property, plant, and equipment	(28,897)		(30,155)
Proceeds from sale of property, plant, and equipment	704		—
Cash paid for acquisitions, net of cash acquired	(1,151)		(6,641)

Other, net	37		26
Net cash flows from investing activities	(29,307)		(36,770)
Cash flows from financing activities:
Proceeds from issuance of debt	267,539		381,789
Repayments of debt	(280,016)		(469,442)
Proceeds from issuance of common stock	5,269		9,010
Purchases of common stock	(56,989)		(29,888)
Dividends paid	(35,442)		(31,315)

Deferred payments for acquisitions	(348)		(448)
Net cash flows from financing activities	(99,987)		(140,294)
Effect of exchange rate changes on cash and cash equivalents	(482)		(4,848)
Net change in cash and cash equivalents	21,310		16,717
Cash and cash equivalents at beginning of period	84,963		45,790
Cash and cash equivalents at end of period	$	106,273	$	62,507






Non-cash items:
Additions to property, plant, and equipment, not yet paid	$	931	$	519
Right-of-Use Assets obtained in exchange for new operating lease liabilities	$	23,137	$	5,685
Payable to sellers of acquired entities	$	1,300	$	382
Non-cash investment to acquire property in lieu of cash payment for products provided	$	—	$	419
Accrued dividends payable to noncontrolling interest	$	—	$	821
Payable for share repurchases	$	—	$	890

See Notes to Condensed Consolidated Financial Statements.

FRANKLIN ELECTRIC CO., INC. AND CONSOLIDATED SUBSIDIARIES

INDEX TO NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)


		Page Number

Note 1.	Condensed Consolidated Financial Statements	11
Note 2.	Accounting Pronouncements	11
Note 3.	Acquisitions	11
Note 4.	Fair Value Measurements	12
Note 5.	Financial Instruments	13
Note 6.	Goodwill and Other Intangible Assets	14
Note 7.	Employee Benefit Plans	14
Note 8.	Accrued Expenses and Other Current Liabilities	15
Note 9.	Income Taxes	15
Note 10.	Debt	15
Note 11.	Earnings Per Share	16
Note 12.	Equity Roll Forward	18
Note 13.	Accumulated Other Comprehensive Income/(Loss)	20
Note 14.	Segment and Geographic Information	20
Note 15.	Commitments and Contingencies	22

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. 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 September 30, 2024, and for the third quarters and nine months ended September 30, 2024 and September 30, 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 third quarter and nine months ended September 30, 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.

2. ACCOUNTING PRONOUNCEMENTS

Accounting Standards Issued But Not Yet Adopted

In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 will adopt this ASU in 2025 and does not anticipate the adoption to have material impact on the Company's financial disclosures.

3. 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 the above acquisitions is preliminary as of September 30, 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 was 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.

4. FAIR VALUE MEASUREMENTS

FASB Accounting Standards Codification 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 September 30, 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:


(In millions)	September 30, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	5.9	$	5.9	$	—	$	—
Share swap transaction	2.2		2.2		—		—

Total assets	$	8.1	$	8.1	$	—	$	—

Liabilities:


Contingent payments related to acquisition	4.8		—		—		4.8
Total liabilities	$	4.8	$	—	$	—	$	4.8

(In millions)	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 asset is recorded within the "Receivables" line of the condensed consolidated balance sheets and is 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 September 30, 2024 in the condensed consolidated balance sheets:


	Third Quarter Ended		Nine Months Ended
(In millions)	September 30, 2024		September 30, 2024
Fair value at beginning of period	$	4.6	$	3.0
Adjustments to prior year acquisition	—		1.3
Change in fair value recognized in earnings	0.2		0.5
Payments	—		—
Fair value at end of period	$	4.8	$	4.8

Total debt, including current maturities, have carrying amounts of $88.0 million and $100.5 million and estimated fair values of $86.9 million and $98.6 million as of September 30, 2024 and December 31, 2023, respectively. In the absence of quoted prices in active markets, considerable judgment is required in developing estimates of fair value. Estimates are not necessarily indicative of the amounts the Company could realize in a current market transaction. In determining the fair value of its debt, the Company uses estimates based on rates currently available to the Company for debt with similar terms and remaining maturities. Accordingly, the fair value of debt is classified as Level 2 within the valuation hierarchy.

5. 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 September 30, 2024 and December 31, 2023, the swap had a notional value based on 240,000 shares. For the third quarter and nine months ended September 30, 2024, changes in the fair value of the swap resulted in gains of $1.7 million, and $0.9 million, respectively. For the third quarter and nine months ended September 30, 2023, changes in the fair value of the swap resulted in a loss of $3.6 million and a gain of $1.1 million, respectively. Gains and losses resulting from the swap were largely 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.

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 September 30, 2024, the Company had a notional amount of $31.4 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 third quarter and nine months ended September 30, 2024, changes in the fair value of the forward currency contracts resulted in losses of $0.6 million and $0.9 million, respectively. For the third quarter and nine months ended September 30, 2023, changes in the fair value of the forward currency contracts resulted in gains of $0.0 million and $1.6 million, respectively. These gains and losses are recorded in the Company's condensed consolidated statements of income within the "Foreign exchange income (expense), net" line.

6. GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amounts of the Company’s intangible assets, excluding goodwill, are as follows:


(In millions)	September 30, 2024				December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangibles:
Customer relationships	$	264.3	$	(126.6)	$	263.7	$	(115.5)
Patents	7.3		(7.3)		7.3		(7.3)
Technology	7.5		(7.5)		7.5		(7.5)
Trade names	44.2		(7.7)		44.1		(5.8)
Other	3.2		(2.6)		3.4		(2.8)
Total	$	326.5	$	(151.7)	$	326.0	$	(138.9)
Non-amortizing intangibles:
Trade names	42.5		—		42.9		—
Total intangibles	$	369.0	$	(151.7)	$	368.9	$	(138.9)

Amortization expense related to intangible assets for the third quarters ended September 30, 2024 and September 30, 2023 was $4.7 million and $4.2 million, respectively, and for the nine months ended September 30, 2024 and September 30, 2023 was $14.2 million and $12.7 million, respectively.

The change in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 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	(0.9)		—		(0.1)		(1.0)
Foreign currency translation	(0.4)		0.1		—		(0.3)
Balance as of September 30, 2024	$	220.1	$	70.5	$	50.5	$	341.1

7. EMPLOYEE BENEFIT PLANS

The following table sets forth the aggregated net periodic benefit cost for all pension plans for the third quarters and nine months ended September 30, 2024 and September 30, 2023:


(In millions)	Pension Benefits
	Third Quarter Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Service cost	$	0.2	$	0.2	$	0.5	$	0.5
Interest cost	1.6		1.7		4.7		5.0
Expected return on assets	(1.9)		(1.8)		(5.7)		(5.4)
Amortization of:
Prior service cost	—		—		—		—
Actuarial loss	0.5		0.5		1.7		1.6
Settlement cost	—		—		—		—
Net periodic benefit cost	$	0.4	$	0.6	$	1.2	$	1.7

The following table sets forth the aggregated net periodic benefit cost for the other post-retirement benefit plan for the third quarters and nine months ended September 30, 2024 and September 30, 2023:


(In millions)	Other Benefits
	Third Quarter Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Service cost	$	—	$	—	$	—	$	—
Interest cost	0.1		0.1		0.2		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	$	0.2

8. ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

Accrued expenses and other current liabilities consist of:


(In millions)	September 30, 2024		December 31, 2023

Salaries, wages, and commissions	$	47.0	$	45.9
Product warranty costs	9.3		9.3
Insurance	2.4		2.5
Employee benefits	18.3		13.8
Other	38.8		28.7
Total	$	115.8	$	100.2

9. INCOME TAXES

The Company’s effective tax rate for the nine-month period ended September 30, 2024 was 22.9 percent as compared to 20.1 percent for the nine-month period ended September 30, 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. For the third quarter of 2024, the effective tax rate was 23.6 percent compared to 20.2 percent for the third quarter of 2023.

The increase in the effective tax rate for the third quarter and first nine months of 2024 compared to the comparable periods in the prior year was a result of less favorable discrete events in 2024, primarily related to excess tax benefits from share-based compensation, in addition to an increase in the rate on foreign earnings with the implementation of the European Union’s Pillar Two Directive.

10. DEBT

Debt consisted of the following:


(In millions)	September 30, 2024		December 31, 2023

New York Life Agreement	$	75.0	$	75.0
Credit Agreement	—		11.0
Tax increment financing debt	12.8		14.1

Foreign subsidiary debt	0.3		0.5

Less: unamortized debt issuance costs	(0.1)		(0.1)
	$	88.0	$	100.5
Less: current maturities	(76.4)		(12.4)
Long-term debt	$	11.6	$	88.1

Prudential Agreement

The Company maintains the Fourth Amended and Restated Note Purchase and Private Shelf Agreement (the "Prudential Agreement") with PGIM, Inc. and its affiliates. On May 15, 2024, the Company entered into Amendment No. 1 that increased the total available facility amount from lenders to $250.0 million from $150.0 million and changed the expiration date from July 30, 2024 to May 15, 2027.

New York Life Agreement

The Company maintains an uncommitted and unsecured private shelf agreement with NYL Investors LLC and its affiliates (the "New York Life Agreement"). On May 15, 2024, the Company entered into Amendment No. 1 that increased the total available facility amount from lenders to $250.0 million from $200.0 million and changed the expiration date from July 30, 2024 to May 15, 2027.

Credit Agreement

As of September 30, 2024, the Company had no outstanding borrowings, $4.6 million in letters of credit outstanding, and $345.4 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 $17.6 million. As of September 30, 2024, there were no outstanding borrowings and $17.6 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.

11. 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:


	Third Quarter Ended				Nine Months Ended
(In millions, except per share amounts)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Numerator:
Net income attributable to Franklin Electric Co., Inc.	$	54.6	$	57.8	$	146.7	$	154.7
Less: Earnings allocated to participating securities	0.2		0.2		0.5		0.5
Net income available to common shareholders	$	54.4	$	57.6	$	146.2	$	154.2
Denominator:
Basic weighted average common shares outstanding	45.7		46.2		45.9		46.2
Effect of dilutive securities:
Non-participating employee stock options, performance awards, and deferred shares to non-employee directors	0.6		0.7		0.6		0.7
Diluted weighted average common shares outstanding	46.3		46.9		46.5		46.9
Basic earnings per share	$	1.19	$	1.25	$	3.18	$	3.34
Diluted earnings per share	$	1.17	$	1.23	$	3.14	$	3.29

There were 0.1 million stock options outstanding for the third quarters and nine months ended September 30, 2024 and September 30, 2023, that were excluded from the computation of diluted earnings per share, as their inclusion would be anti-dilutive.

12. EQUITY ROLL FORWARD

The schedules below set forth equity changes in the third quarters and nine months ended September 30, 2024 and September 30, 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 July 1, 2024	$	4,575	$	356,016	$	1,099,285	$	(237,705)	$	2,725	$	1,224,896	$	1,134
Net income	—		—		54,596		—		252		54,848		46
Dividends on common stock ($0.250/share)	—		—		(11,462)		—		—		(11,462)		—
Common stock issued	2		965		—		—		—		967		—
Common stock repurchased	(9)		—		(8,769)		—		—		(8,778)		—
Share-based compensation	1		3,111		—		—		—		3,112		—


Currency translation adjustment	—		—		—		8,621		86		8,707		(1)
Pension and other post retirement plans, net of taxes	—		—		—		416		—		416		—
Balance as of September 30, 2024	$	4,569	$	360,092	$	1,133,650	$	(228,668)	$	3,063	$	1,272,706	$	1,179

(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 July 1, 2023	$	4,626	$	340,812	$	1,020,883	$	(219,662)	$	2,842	$	1,149,501	$	901
Net income	—		—		57,798		—		234		58,032		136
Dividends on common stock ($0.225/share)	—		—		(10,443)		—		—		(10,443)		—

Common stock repurchased	(6)		—		(5,231)		—		—		(5,237)		—
Share-based compensation	1		2,038		—		—		—		2,039		—
Dividend to noncontrolling interest									(821)		(821)		—

Currency translation adjustment	—		—		—		(10,775)		(74)		(10,849)		(2)
Pension and other post retirement plans, net of taxes	—		—		—		385		—		385		—
Balance as of September 30, 2023	$	4,621	$	342,850	$	1,063,007	$	(230,052)	$	2,181	$	1,182,607	$	1,035


(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	—		—		146,654		—		607		147,261		56
Dividends on common stock ($0.750/share)	—		—		(34,586)		—		—		(34,586)		—
Common stock issued	9		5,260		—		—		—		5,269		—
Common stock repurchased	(59)		—		(56,930)		—		—		(56,989)		—
Share-based compensation	12		10,115		—		—		—		10,127		—
Dividend to noncontrolling interest	—		—		—		—		—		—		(21)

Currency translation adjustment	—		—		—		(8,837)		30		(8,807)		(1)
Pension and other post retirement plans, net of taxes	—		—		—		1,283		—		1,283		—
Balance as of September 30, 2024	$	4,569	$	360,092	$	1,133,650	$	(228,668)	$	3,063	$	1,272,706	$	1,179

(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	—		—		154,723		—		764		155,487		417
Dividends on common stock ($0.675/share)	—		—		(31,315)		—		—		(31,315)		—
Common stock issued	22		8,988		—		—		—		9,010		—
Common stock repurchased	(33)		—		(29,662)		—		—		(29,695)		—
Share-based compensation	13		8,436		—		—		—		8,449		—
Dividend to noncontrolling interest									(821)		(821)

Currency translation adjustment	—		—		—		178		(38)		140		(2)
Pension and other post retirement plans, net of taxes	—		—		—		1,218		—		1,218		—
Balance as of September 30, 2023	$	4,621	$	342,850	$	1,063,007	$	(230,052)	$	2,181	$	1,182,607	$	1,035

13. ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

Changes in accumulated other comprehensive income/(loss) by component for the nine months ended September 30, 2024 and September 30, 2023, are summarized below:


(In millions)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Plan Benefit Adjustments (2)		Total
For the nine months ended September 30, 2024:
Balance as of December 31, 2023	$	(179.3)	$	(41.8)	$	(221.1)

Other comprehensive income/(loss) before reclassifications	(8.8)		—		(8.8)
Amounts reclassified from accumulated other comprehensive income/(loss) (1)	—		1.3		1.3
Net other comprehensive income/(loss)	(8.8)		1.3		(7.5)

Balance as of September 30, 2024	$	(188.1)	$	(40.5)	$	(228.6)

For the nine months ended September 30, 2023:
Balance as of December 31, 2022	$	(191.3)	$	(40.1)	$	(231.4)

Other comprehensive income/(loss) before reclassifications	0.2		—		0.2
Amounts reclassified from accumulated other comprehensive income/(loss) (1)	—		1.2		1.2
Net other comprehensive income/(loss)	0.2		1.2		1.4

Balance as of September 30, 2023	$	(191.1)	$	(38.9)	$	(230.0)

(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 (expense) income, net" line of the Company's condensed consolidated statements of income.

(2) Net of tax expense of $0.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.

Amounts related to noncontrolling interests were not material.

14. 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:


	Third Quarter Ended				Nine Months Ended
(In millions)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Net sales
Water Systems
External sales
United States & Canada	$	152.3	$	157.7	$	448.0	$	494.0
Latin America	43.5		45.5		126.6		127.8
Europe, Middle East & Africa	53.4		48.7		161.7		153.7
Asia Pacific	21.7		19.6		66.1		60.6
Intersegment sales
United States & Canada	31.3		24.3		102.0		88.0
Total sales	302.2		295.8		904.4		924.1
Distribution
External sales
United States & Canada	190.8		189.2		528.3		525.3
Intersegment sales	—		—		—		—
Total sales	190.8		189.2		528.3		525.3
Fueling Systems
External sales
United States & Canada	55.1		58.5		160.2		172.8
All other	14.6		19.2		44.7		58.0
Intersegment sales	—		—		—		—
Total sales	69.7		77.7		204.9		230.8

Intersegment Eliminations/Other	(31.3)		(24.3)		(102.0)		(88.0)
Consolidated	$	531.4	$	538.4	$	1,535.6	$	1,592.2

	Third Quarter Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Operating income/(loss)
Water Systems	$	52.8	$	52.7	$	162.3	$	152.5
Distribution	12.2		10.7		23.8		33.2
Fueling Systems	24.1		25.8		68.9		73.3
Intersegment Eliminations/Other	(15.6)		(11.1)		(54.4)		(47.4)
Consolidated	$	73.5	$	78.1	$	200.6	$	211.6


	September 30, 2024		December 31, 2023
	Total assets
Water Systems	$	1,052.1	$	1,044.4
Distribution	398.0		365.6
Fueling Systems	255.6		256.4
Other	101.5		61.7
Consolidated	$	1,807.2	$	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.

15. 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. 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 September 30, 2024, the Company had $12.1 million of commitments primarily for capital expenditures and purchase of raw materials to be used in production and finished goods.

At September 30, 2024, the Company has a contingent consideration liability with an estimated fair value of $4.8 million that could result in a payment of 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 nine months ended September 30, 2024, are as follows:


(In millions)
Balance as of December 31, 2023	$	9.3
Accruals related to product warranties	10.0

Reductions for payments made	(10.0)
Balance as of September 30, 2024	$	9.3

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Third Quarter 2024 vs. 2023

OVERVIEW

Net sales in the third quarter and first nine months of 2024 decreased 1 percent and 4 percent, respectively, from the prior-year periods. The sales decreases in the third quarter and first nine months of 2024 were primarily due to lower volumes and the negative impact of foreign currency translation, partially offset by price realization and the incremental sales impact from recent acquisitions. The Company's consolidated gross profit was $189.7 million and $553.0 million, respectively, for the third quarter and first nine months of 2024, increases of $3.4 million and $16.0 million, respectively, from the prior-year periods. Diluted earnings per share was $1.17 and $3.14, respectively, for the third quarter and first nine months of 2024, decreases of $0.06 and $0.15, respectively, from the prior-year periods.

RESULTS OF OPERATIONS

Net Sales

Net sales in the third quarter and first nine months of 2024 were $531.4 million and $1.5 billion, respectively, and decreased 1 percent and 4 percent as compared to the prior-year periods. Sales were negatively impacted by changes in foreign exchange rates, principally due to the strengthening of the U.S. Dollar relative to the Argentine Peso and Turkish Lira. However, the Company increases prices in the local currency to offset the impact of currency devaluation in the Argentina and Turkey hyperinflationary economies. As a result, the net negative impact of foreign currency exchange rates on net sales was 1 percent in the third quarter and first nine months of 2024 compared to the same periods in the prior year.


	Net Sales
(In millions)	Q3 2024		Q3 2023		2024 v 2023
Water Systems	$	302.2	$	295.8	$	6.4
Fueling Systems	69.7		77.7		(8.0)
Distribution	190.8		189.2		1.6
Eliminations/Other	(31.3)		(24.3)		(7.0)
Consolidated	$	531.4	$	538.4	$	(7.0)


	Net Sales
(In millions)	YTD September 30, 2024		YTD September 30, 2023		2024 v 2023
Water Systems	$	904.4	$	924.1	$	(19.7)
Fueling Systems	204.9		230.8		(25.9)
Distribution	528.3		525.3		3.0
Eliminations/Other	(102.0)		(88.0)		(14.0)
Consolidated	$	1,535.6	$	1,592.2	$	(56.6)

Net Sales-Water Systems

Water Systems net sales increased 2 percent in the third quarter but decreased 2 percent in the first nine months of 2024, as compared to the prior-year periods. The sales growth in the third quarter was primarily due to higher volumes and price realization. The sales decline in the first nine months of 2024 was primarily due to lower volumes, which decreased due to weaker end market demand for large dewatering equipment. Sales decreased 2 percent in the third quarter and 1 percent in the first nine months of 2024 due to the negative impact from foreign exchange rates, as compared to prior-year periods. The incremental sales impact from a recent acquisition favorably impacted sales 2 percent in the third quarter and first nine months of 2024.

Water Systems net sales in the U.S. and Canada increased 1 percent in the third quarter but decreased 5 percent in the first nine months of 2024, as compared to the prior-year periods. In the third quarter of 2024, sales of groundwater pumping equipment increased 13 percent, sales of water treatment products increased 9 percent, and the sales of all other surface pumping

equipment increased 5 percent compared to 2023. Partially offsetting the increase, sales of large dewatering equipment decreased 31 percent compared to 2023. In the first nine months of 2024, sales of large dewatering equipment decreased 43 percent, sales of water treatment products increased 12 percent, sales of all other surface pumping equipment increased 5 percent and sales of groundwater pumping equipment increased 3 percent compared to 2023.

Water Systems net sales in markets outside the U.S. and Canada increased 4 percent in both the third quarter and the first nine months of 2024, as compared to the prior-year periods. Sales decreased 4 percent in the third quarter and 3 percent in the first nine months of 2024 due to the negative impact from foreign exchange rates, as compared to prior-year periods. In both the third quarter and first nine months of 2024, excluding the impact of foreign currency translation, sales increased in all three major regions: EMEA, Latin America and Asia Pacific.

Net Sales-Fueling Systems

Fueling Systems net sales decreased 10 percent in the third quarter and 11 percent in the first nine months of 2024, as compared to the prior-year periods. These sales declines were primarily due to lower volumes.

Fueling Systems net sales in the U.S. and Canada decreased 4 percent in the third quarter and 6 percent in the first nine months of 2024, as compared to the prior-year periods. Outside the U.S. and Canada, Fueling Systems net sales decreased 22 percent in both the third quarter and first nine months of 2024, as compared to the prior-year periods. The decreases were across all product lines.

Net Sales - Distribution

Distribution net sales increased 1 percent in both the third quarter and first nine months of 2024, as compared to the prior-year periods. The Distribution segment sales increased due to the incremental sales impact from a recent acquisition which favorably impacted net sales by 2 percent in the third quarter and first nine months of 2024, partially offset by the negative impact of commodity pricing declines and unfavorable weather.

Gross Profit and Expenses Ratios


	Three Months Ended September 30,
(In Millions)	2024		% of Net Sales		2023		% of Net Sales
Gross Profit	$	189.7	35.7	%	$	186.3	34.6	%
Selling, General and Administrative Expense	116.0		21.8	%	107.7		20.0	%


	Nine Months Ended September 30,
(In Millions)	2024		% of Net Sales		2023		% of Net Sales
Gross Profit	$	553.0	36.0	%	$	537.0	33.7	%
Selling, General and Administrative Expense	352.3		22.9	%	324.7		20.4	%

Gross Profit

The gross profit margin ratio was 35.7 percent and 36.0 percent in the third quarter and first nine months of 2024, respectively, and 34.6 percent and 33.7 percent in the third quarter and first nine months of 2023, respectively. The gross profit margin was favorably impacted in the third quarter and first nine months of 2024 by cost management, including lower freight costs in Water Systems and Fueling Systems, and a favorable product and geographic sales mix shift.

Selling, General, and Administrative ("SG&A")

SG&A expenses were $116.0 million in the third quarter and $352.3 million in the first nine months of 2024 compared to $107.7 million in the third quarter and $324.7 million in the first nine months of 2023. SG&A expenses increased in the third quarter and first nine months of 2024 primarily due to higher employee compensation costs, including incremental expenses associated with the Company’s CEO transition, and the incremental expense impact of recent acquisitions. The SG&A expenses ratio was 21.8 percent and 22.9 percent in the third quarter and first nine months of 2024, respectively, and 20.0 percent and 20.4 percent in the third quarter and first nine months of 2023, respectively.

Restructuring Expenses

Restructuring expenses were $0.1 million in the third quarter and first nine months of 2024, respectively, and $0.5 million and $0.7 million in the third quarter and first nine months of 2023, respectively. Restructuring expenses were primarily from continued miscellaneous manufacturing realignment activities, branch closings and consolidations.

Operating Income

Operating income decreased 6 percent and 5 percent in the third quarter and first nine months of 2024, as compared to the prior-year periods.


	Operating income (loss)
(In millions)	Q3 2024		Q3 2023		2024 v 2023
Water Systems	$	52.8	$	52.7	$	0.1
Fueling Systems	24.1		25.8		(1.7)
Distribution	12.2		10.7		1.5
Eliminations/Other	(15.6)		(11.1)		(4.5)
Consolidated	$	73.5	$	78.1	$	(4.6)


	Operating income (loss)
(In millions)	YTD September 30, 2024		YTD September 30, 2023		2024 v 2023
Water Systems	$	162.3	$	152.5	$	9.8
Fueling Systems	68.9		73.3		(4.4)
Distribution	23.8		33.2		(9.4)
Eliminations/Other	(54.4)		(47.4)		(7.0)
Consolidated	$	200.6	$	211.6	$	(11.0)

Operating Income-Water Systems

Water Systems operating income in the third quarter and first nine months of 2024 was $52.8 million and $162.3 million, respectively, increases of $0.1 million and $9.8 million, respectively, as compared to the prior-year periods. The increases were primarily due to price realization, cost management and a favorable product and geographic sales mix shift. The third quarter operating income margin was 17.5 percent, a decrease of 30 basis points from 17.8 percent in the third quarter of 2023. The first nine months of 2024 operating income margin was 17.9 percent, an increase of 140 basis points from 16.5 percent in the first nine months of 2023. Operating income margin increased in the first nine months of 2024 primarily due to cost management and a favorable product and geographic sales mix shift.

Operating Income-Fueling Systems

Fueling Systems operating income in the third quarter and first nine months of 2024 was $24.1 million and $68.9 million, respectively, decreases of $1.7 million and $4.4 million, respectively, as compared to the prior-year periods. The decreases were primarily due to lower sales. The third quarter operating income margin was 34.6 percent, an increase of 140 basis points from 33.2 percent in the third quarter of 2023. The first nine months of 2024 operating income margin was 33.6 percent, an increase of 180 basis points from 31.8 percent in the first nine months of 2023. Operating income margin increased primarily due to price realization and cost management.

Operating Income-Distribution

Distribution operating income in the third quarter and first nine months of 2024 was $12.2 million and $23.8 million, respectively, an increase of $1.5 million and a decrease of $9.4 million, respectively, as compared to the prior-year periods. The third quarter operating income margin was 6.4 percent, an increase of 70 basis points from 5.7 percent in the third quarter of 2023. The first nine months of 2024 operating income margin was 4.5 percent, a decrease of 180 basis points from 6.3 percent in the first nine months of 2023. Operating income and operating income margin increased in the third quarter of 2024 primarily due to the incremental impact from a recent acquisition. Operating income and operating income margin decreased in the first nine months of 2024 primarily due to the negative impact on sales from wet weather across much of the United States, decreases in pricing of commodity-based products sold through the business and increased SG&A costs.

Operating Income-Eliminations/Other

Operating income-Eliminations/Other is composed primarily of intersegment sales and profit eliminations and unallocated general and administrative expenses. The intersegment profit elimination impact in the third quarter and first nine months of 2024 compared to the prior-year periods of 2023 was an unfavorable $0.7 million and $2.2 million, respectively. The intersegment elimination of operating income effectively defers the operating income on sales from Water Systems to Distribution in the consolidated financial results until such time as the transferred product is sold from the Distribution segment to its end third party customer. General and administrative expenses increased $3.8 million and $4.8 million, respectively,

compared to the prior-year periods. The increase was primarily driven by to higher employee compensation costs, including incremental expenses associated with the Company’s CEO transition.

Interest Expense

Interest expense was $1.6 million and $5.0 million in the third quarter and first nine months of 2024, respectively, and $3.0 million and $10.3 million in the third quarter and first nine months of 2023, respectively. The decreases in the third quarter and first nine months of 2024 was primarily driven by lower debt.

Other (Expense) Income, Net

Other (expense) income, net was an expense of $0.2 million and income of $0.7 million in the third quarter and first nine months of 2024, respectively, and was income of $0.3 million and $1.9 million in the third quarter and first nine months of 2023, respectively.

Foreign Exchange

Foreign currency-based transactions produced a gain of $0.1 million and an expense $5.2 million in the third quarter and first nine months of 2024, respectively, and an expense of $2.5 million and $8.1 million in the third quarter and first nine months of 2023, respectively. The results in the first nine months of 2024 and the third quarter and first nine months of 2023 are primarily due to transaction losses associated with the Turkish Lira and Argentine Peso relative to the U.S. dollar. The Company reports the results of its subsidiaries in Argentina and Turkey using highly inflationary accounting, which requires that the functional currency of the entity be changed to the reporting currency of its parent.

Income Taxes

The provision for income taxes in the third quarter and first nine months of 2024 was $17.0 million and $43.8 million, respectively, and $14.7 million and $39.2 million in the third quarter and first nine months of 2023, respectively. The effective tax rate for the third quarter and first nine months of 2024 was 23.6 percent and 22.9 percent, respectively, and 20.2 percent and 20.1 percent in the third quarter and first nine months of 2023, respectively. The increase in the effective tax rates for the third quarter and first nine months of 2024 compared to the comparable periods in the prior year was a result of less favorable discrete events in 2024, primarily related to excess tax benefits from share-based compensation, in addition to an increase in the rate on foreign earnings with the implementation of the European Union’s Pillar Two Directive in 2024.

Net Income

Net income in the third quarter and first nine months of 2024 was $54.9 million and $147.3 million, respectively, and $58.2 million and $155.9 million in the third quarter and first nine months of 2023, respectively. Net income attributable to Franklin Electric Co., Inc. in the third quarter and first nine months of 2024 was $54.6 million and $146.7 million, respectively, or $1.17 and $3.14 per diluted share. Net income attributable to Franklin Electric Co., Inc. in the third quarter and first nine months of 2023 was $57.8 million and $154.7 million, respectively, or $1.23 and $3.29 per diluted share.

CAPITAL RESOURCES AND LIQUIDITY

Sources of Liquidity

The Company's primary sources of liquidity are cash on hand, cash flows from operations, revolving credit agreements, and long-term debt funds available. The Company believes its capital resources and liquidity position at September 30, 2024 is adequate to meet projected needs for the foreseeable future. The Company expects that ongoing requirements for operations, capital expenditures, pension obligations, dividends, share repurchases, and debt service will be adequately funded from cash on hand, operations, and existing credit agreements.

As of September 30, 2024, the Company had a $350.0 million revolving credit facility. The facility is scheduled to mature on May 13, 2026. As of September 30, 2024, the Company had $345.4 million borrowing capacity under its credit agreement as $4.6 million in letters of commercial and standby letters of credit were outstanding and undrawn and no revolver borrowings were drawn or outstanding.

In addition, 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"). On May 15, 2024, the Company entered into Amendment No. 1 that increased the total available facility amount from lenders to $250.0 million from $200.0 million. As of September 30, 2024, the remaining borrowing capacity on the New York Life Agreement was $175.0 million. The Company also maintains the Fourth Amended and Restated Note Purchase and Private Shelf Agreement (the "Prudential Agreement") with PGIM, Inc. and its affiliates. On May 15, 2024, the Company entered into Amendment No. 1 that increased the total available facility amount from lenders to $250.0 million from $150.0 million. The maturity dates of both agreements were extended from July 30, 2024 to May 15, 2027.

The Company also has other long-term debt borrowings outstanding as of September 30, 2024. See Note 10 - Debt included in the Company's Annual Report on Form 10-K for the year ended December 31, 2023, for additional information regarding these obligations and future maturities as well as Note 10 - Debt of this current quarterly report for changes to these agreements since December 31, 2023.

At September 30, 2024, the Company had $68.6 million of cash and cash equivalents held in foreign jurisdictions, which is intended to be used to fund foreign operations. There is currently no need or intent to repatriate the majority of these funds in order to meet domestic funding obligations or scheduled cash distributions.

Cash Flows

The following table summarizes significant sources and uses of cash and cash equivalents for the first nine months of 2024 and 2023.


(in millions)	2024		2023
Net cash flows from operating activities	$	151.1	$	198.6
Net cash flows from investing activities	(29.3)		(36.8)
Net cash flows from financing activities	(100.0)		(140.3)
Impact of exchange rates on cash and cash equivalents	(0.5)		(4.8)
Change in cash and cash equivalents	$	21.3	$	16.7

Cash Flows from Operating Activities

2024 vs. 2023

Net cash provided by operating activities was $151.1 million for the nine months ended September 30, 2024 compared to $198.6 million provided by operating activities for the nine months ended September 30, 2023. The change in operating cash flow was primarily attributable to changes in working capital and lower earnings.

Cash Flows from Investing Activities

2024 vs. 2023

Net cash used in investing activities was $29.3 million for the nine months ended September 30, 2024 compared to $36.8 million used in investing activities for the nine months ended September 30, 2023. The change in investing cash flow was primarily attributable to decreased acquisition activity in the first nine months of 2024.

Cash Flows from Financing Activities

2024 vs. 2023

Net cash used in financing activities was $100.0 million for the nine months ended September 30, 2024 compared to $140.3 million used in financing activities for the nine months ended September 30, 2023. The change in financing cash flow was primarily due to lower net repayments under the Company's credit facility in 2024 compared to 2023, partially offset by lower proceeds from option exercises, increased share repurchase activity and higher dividends.

FACTORS THAT MAY AFFECT FUTURE RESULTS

This quarterly report on Form 10-Q contains certain forward-looking information, such as statements about the Company’s financial goals, acquisition strategies, financial expectations including anticipated revenue or expense levels, business prospects, market positioning, product development, manufacturing re-alignment, capital expenditures, tax benefits and expenses, and the effect of contingencies or changes in accounting policies. Forward-looking statements are typically identified by words or phrases such as “believe,” “expect,” “anticipate,” “intend,” “estimate,” “may increase,” “may fluctuate,” “plan,” “goal,” “target,” “strategy,” and similar expressions or future or conditional verbs such as “may,” “will,” “should,” “would,” and “could.” While the Company believes that the assumptions underlying such forward-looking statements are reasonable based on present conditions, forward-looking statements made by the Company involve risks and uncertainties and are not guarantees of future performance. Actual results may differ materially from those forward-looking statements as a result of various factors, including regional or general economic and currency conditions, various conditions specific to the Company’s business and industry, new housing starts, weather conditions, epidemics and pandemics, market demand, competitive factors, changes in distribution channels, supply constraints, effect of price increases, raw material costs and availability, technology factors, integration of acquisitions, litigation, government and regulatory actions, the Company’s accounting policies, and other risks, all as described in the Company's Securities and Exchange Commission filings, included in Part I, Item 1A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023, and in Exhibit 99.1 thereto. Any

forward-looking statements included in this Form 10-Q are based upon information presently available. The Company does not assume any obligation to update any forward-looking information, except as required by law.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no significant changes in the Company's exposure to market risk during the third quarter ended September 30, 2024. For additional information, refer to Part II, Item 7A of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023.

ITEM 4. CONTROLS AND PROCEDURES

As of the end of the period covered by this report (the "Evaluation Date"), the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and the Company's Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures pursuant to Exchange Act Rules 13a-15. Based upon that evaluation, the Company's Chief Executive Officer and the Company's Chief Financial Officer concluded that, as of the Evaluation Date, the Company's disclosure controls and procedures were effective.

There have been no changes in the Company's internal control over financial reporting identified in connection with the evaluation required by Rules 13a-15 under the Exchange Act during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect the Company's internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. LEGAL PROCEEDINGS

The Company is defending various claims and legal actions which have arisen in the ordinary course of business. For a description of the Company's material legal proceedings, refer to Note 15 - Commitments and Contingencies, in the Notes to Condensed Consolidated Financial Statements included in Part I, Item 1, "Notes to Condensed Consolidated Financial Statements (Unaudited)," of this Quarterly Report on Form 10-Q, which is incorporated into this Item 1 by reference. In the opinion of management, based on current knowledge of the facts and after discussion with counsel, other 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.

ITEM 1A. RISK FACTORS

There have been no material changes to the Company's risk factors as set forth in the annual report on Form 10-K for the fiscal year ended December 31, 2023. Additional risks and uncertainties, not presently known to the Company or currently deemed immaterial, could negatively impact the Company’s results of operations or financial condition in the future.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

In April 2007, the Company's Board of Directors approved a plan to increase the number of shares remaining for repurchase from 628,692 to 2,300,000 shares. There is no expiration date for this plan. On August 3, 2015, the Company's Board of Directors approved a plan to increase the number of shares remaining for repurchase by an additional 3,000,000 shares. The authorization was in addition to the 535,107 shares that remained available for repurchase as of July 31, 2015. In February 2023, the Company’s Board of Directors approved a plan to increase the number of shares remaining for repurchase by an additional 1,000,000 shares. The authorization was in addition to the 215,872 shares that remained available for repurchase as of February 16, 2023. The Company repurchased 91,973 shares for approximately $8.7 million under the plan during the third quarter of 2024. The maximum number of shares that may still be purchased under this plan as of September 30, 2024 is 367,593. In October 2024, the Company’s Board of Directors approved a plan to increase the number of shares remaining for repurchase by an additional 1,000,000 shares. After giving effect to the October 2024 approval, the maximum number of shares that may still be purchased under this plan as of October 31, 2024 is 1,367,593.


Period	Total Number of Shares Repurchased	Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plan	Maximum Number of Shares that may yet to be Repurchased
July 1 - July 31	91,973	$	94.71	91,973	367,593
August 1 - August 31	—	$	—	—	367,593
September 1 - September 30	—	$	—	—	367,593
Total	91,973	$	94.71	91,973	367,593

ITEM 5. OTHER INFORMATION

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 September 30, 2024.

ITEM 6. EXHIBITS


Number			Description


3.1			Amended and Restated Articles of Incorporation of Franklin Electric Co., Inc. (incorporated by reference to Exhibit 3.1 of the Company's Form 8-K filed on May 7, 2019)
3.2			Amended and Restated Bylaws of Franklin Electric Co., Inc., as amended January 27, 2020 (incorporated by reference to Exhibit 3.1 of the Company's Form 8-K filed on January 30, 2020)
10.1			Offer Letter to Joseph Ruzynski dated April 26, 2024 (incorporated by reference to Exhibit 10.1 of the Company's Form 10-Q filed on July 26, 2024)
10.2			Employment Security Agreement between the Company and Joseph Ruzynski (incorporated by reference to Exhibit 10.2 of the Company's Form 10-Q filed on July 26, 2024)
10.3			Confidentiality and Non-Compete Agreement between the Company and Joseph Ruzynski (incorporated by reference to Exhibit 10.3 of the Company's Form 10-Q filed on July 26, 2024)
10.4			Franklin Electric Co., Inc. Executive Severance Policy, as amended and restated effective July 1, 2024 (incorporated by reference to Exhibit 10.4 of the Company's Form 10-Q filed on July 26, 2024)
10.5			First Amendment to Amended and Restated Note Purchase and Private Shelf Agreement, dated May 15, 2024, by and among Franklin Electric Co., Inc., Franklin Electric B.V., NYL Investors LLC , and the purchasers named therein (incorporated by reference to Exhibit 10.1 of the Company's Form 8-K filed on May 16, 2024)
10.6			First Amendment to Fourth Amended and Restated Note Purchase and Private Shelf Agreement, dated May 15, 2024, by and among Franklin Electric Co., Inc., Franklin Electric B.V., Prudential Insurance Company, and the purchasers named therein (incorporated by reference to Exhibit 10.2 of the Company's Form 8-K filed on May 16, 2024 )
31.1			Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2			Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32.1			Chief Executive Officer Certification Pursuant to 18 U.S.C. Section 1350 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
32.2			Chief Financial Officer Certification Pursuant to 18 U.S.C. Section 1350 As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
101			The following financial information from Franklin Electric Co., Inc.'s Quarterly Report on Form 10-Q for the quarter ended September 30, 2024, formatted in Inline eXtensible Business Reporting Language (Inline XBRL): (i) Condensed Consolidated Statements of Income for the third quarters and nine months ended September 30, 2024 and 2023 (ii) Condensed Consolidated Statements of Comprehensive Income/(Loss) for the third quarter and nine months ended September 30, 2024 and 2023, (iii) Condensed Consolidated Balance Sheets as of September 30, 2024, and December 31, 2023, (iv) Condensed Consolidated Statement of Cash Flows for the nine months ended September 30, 2024 and 2023, and (v) Notes to Condensed Consolidated Financial Statements (filed herewith)
104			Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*Management Contract, Compensatory Plan or Arrangement

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.


		FRANKLIN ELECTRIC CO., INC.
		Registrant

Date: October 29, 2024	By	/s/ Joseph A. Ruzynski
		Joseph A. Ruzynski , Chief Executive Officer
		(Principal Executive Officer)

Date: October 29, 2024	By	/s/ Jeffery L. Taylor
		Jeffery L. Taylor, Vice President and Chief Financial Officer
		(Principal Financial and Accounting Officer)

EXHIBIT 31.1

CERTIFICATIONS

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Joseph A. Ruzynski , certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Franklin Electric Co., Inc., for the third quarter ending September 30, 2024;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of Franklin Electric Co., Inc. as of, and for, the periods presented in this report;

4.Franklin Electric Co., Inc.'s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for Franklin Electric Co., Inc. and we have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to Franklin Electric Co., Inc., including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of Franklin Electric Co., Inc.'s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any changes in Franklin Electric Co., Inc.'s internal control over financial reporting that occurred during Franklin Electric Co., Inc.'s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.Franklin Electric Co., Inc.'s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Franklin Electric Co., Inc.'s auditors and the audit committee of Franklin Electric Co., Inc.'s board of directors:

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the Franklin Electric Co., Inc.'s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in Franklin Electric Co., Inc.'s internal control over financial reporting.


Date:			October 29, 2024

			/s/ Joseph A. Ruzynski
			Joseph A. Ruzynski
			Chief Executive Officer
			Franklin Electric Co., Inc.

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Jeffery L. Taylor, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Franklin Electric Co., Inc., for the third quarter ending September 30, 2024;

d.Disclosed in this report any change in Franklin Electric Co., Inc.'s internal control over financial reporting that occurred during Franklin Electric Co., Inc.'s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, Franklin Electric Co., Inc.'s internal control over financial reporting; and

5.Franklin Electric Co., Inc.'s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to Franklin Electric Co., Inc.'s auditors and the audit committee of Franklin Electric Co., Inc.'s board of directors:

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect Franklin Electric Co., Inc.'s ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in Franklin Electric Co., Inc.'s internal control over financial reporting.


Date:			October 29, 2024

			/s/ Jeffery L. Taylor
			Jeffery L. Taylor
			Vice President and Chief Financial Officer
			Franklin Electric Co., Inc.

EXHIBIT 32.1

CHIEF EXECUTIVE OFFICER CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Franklin Electric Co., Inc. (the “Company”) on Form 10-Q for the third quarter ending September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Joseph A. Ruzynski , Chief Executive Officer of the Company, certify to my knowledge, pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:			October 29, 2024

			/s/ Joseph A. Ruzynski
			Joseph A. Ruzynski
			Chief Executive Officer
			Franklin Electric Co., Inc.

EXHIBIT 32.2

CHIEF FINANCIAL OFFICER CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350 AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Franklin Electric Co., Inc. (the “Company”) on Form 10-Q for the third quarter ending September 30, 2024, as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Jeffery L. Taylor, Vice President and Chief Financial Officer of the Company, certify to my knowledge, pursuant to section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. Section 1350), that:

1.The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2.The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.


Date:			October 29, 2024

			/s/ Jeffery L. Taylor
			Jeffery L. Taylor
			Vice President and Chief Financial Officer
			Franklin Electric Co., Inc.

COVER - $ / shares	9 Months Ended
COVER - $ / shares	Sep. 30, 2024	Oct. 25, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 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		45,687,354
Entity Central Index Key	0000038725
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Statement [Abstract]
Net sales	$ 531,438	$ 538,431	$ 1,535,596	$ 1,592,163
Cost of sales	341,775	352,178	982,556	1,055,164
Gross profit	189,663	186,253	553,040	536,999
Selling, general, and administrative expenses	115,998	107,687	352,290	324,651
Restructuring expense	139	462	139	735
Operating income	73,526	78,104	200,611	211,613
Interest expense	(1,556)	(2,984)	(4,980)	(10,309)
Other (expense) income, net	(181)	277	709	1,865
Foreign exchange income (expense), net	88	(2,483)	(5,228)	(8,098)
Income before income taxes	71,877	72,914	191,112	195,071
Income tax expense	16,983	14,746	43,795	39,167
Net income	54,894	58,168	147,317	155,904
Less: Net income attributable to noncontrolling interests	(298)	(370)	(663)	(1,181)
Net income attributable to Franklin Electric Co., Inc.	$ 54,596	$ 57,798	$ 146,654	$ 154,723
Earnings per share:
Basic	$ 1.19	$ 1.25	$ 3.18	$ 3.34
Diluted	$ 1.17	$ 1.23	$ 3.14	$ 3.29

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 54,894	$ 58,168	$ 147,317	$ 155,904
Other comprehensive income/(loss), before tax:
Foreign currency translation adjustments	8,706	(10,851)	(8,808)	138
Employee benefit plan activity	553	513	1,706	1,623
Other comprehensive income/(loss)	9,259	(10,338)	(7,102)	1,761
Income tax expense related to items of other comprehensive income/(loss)	(137)	(128)	(423)	(405)
Other comprehensive income/(loss), net of tax	9,122	(10,466)	(7,525)	1,356
Comprehensive income	64,016	47,702	139,792	157,260
Less: Comprehensive income attributable to noncontrolling interests	(383)	(294)	(692)	(1,141)
Comprehensive income attributable to Franklin Electric Co., Inc.	$ 63,633	$ 47,408	$ 139,100	$ 156,119

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash and cash equivalents	$ 106,273	$ 84,963
Receivables, less allowances of $3,871 and $3,594, respectively	272,003	222,418
Inventories:
Raw material	173,354	176,706
Work-in-process	28,894	26,880
Finished goods	322,399	305,110
Total inventories	524,647	508,696
Other current assets	39,560	37,718
Total current assets	942,483	853,795
Property, plant, and equipment, at cost:
Land and buildings	165,359	167,028
Machinery and equipment	322,113	316,227
Furniture and fixtures	59,211	56,997
Other	64,900	59,747
Property, plant, and equipment, gross	611,583	599,999
Less: Allowance for depreciation	(385,511)	(370,260)
Property, plant, and equipment, net	226,072	229,739
Lease right-of-use assets, net	62,694	57,014
Deferred income taxes	9,558	8,758
Intangible assets, net	217,253	230,027
Goodwill	341,092	342,404
Other assets	8,091	6,385
Total assets	1,807,243	1,728,122
Current liabilities:
Accounts payable	173,935	152,419
Accrued expenses and other current liabilities	115,795	100,249
Current lease liability	17,963	17,316
Income taxes	9,070	4,700
Current maturities of long-term debt and short-term borrowings	76,402	12,355
Total current liabilities	393,165	287,039
Long-term debt	11,581	88,056
Long-term lease liability	43,484	38,549
Income taxes payable non-current	0	4,837
Deferred income taxes	31,128	29,461
Employee benefit plans	30,781	35,973
Other long-term liabilities	23,219	33,914
Commitments and contingencies (see Note 15)
Redeemable noncontrolling interest	1,179	1,145
Shareholders' equity:
Common stock (65,000 shares authorized, $.10 par value) outstanding (45,687 and 46,067, respectively)	4,569	4,607
Additional paid-in capital	360,092	344,717
Retained earnings	1,133,650	1,078,512
Accumulated other comprehensive loss	(228,668)	(221,114)
Total shareholders' equity	1,269,643	1,206,722
Noncontrolling interest	3,063	2,426
Total equity	1,272,706	1,209,148
Total liabilities and equity	$ 1,807,243	$ 1,728,122

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Accounts Receivable, Allowance for Credit Loss, Current	$ 3,871	$ 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)	45,687	46,067

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Cash flows from operating activities:
Net income	$ 147,317	$ 155,904
Adjustments to reconcile net income to net cash flows from operating activities:
Depreciation and amortization	41,825	39,582
Non-cash lease expense	15,223	12,664
Share-based compensation	10,127	8,449
Deferred income taxes	350	2,305
(Gain)/loss on disposals of plant and equipment	(400)	491
Foreign exchange expense	5,228	8,098
Changes in assets and liabilities, net of acquisitions:
Receivables	(51,440)	(20,427)
Inventory	(18,760)	2,537
Accounts payable and accrued expenses	17,218	4,376
Operating leases	(15,700)	(12,847)
Income taxes	1,718	(2,667)
Income taxes-U.S. Tax Cuts and Jobs Act	(3,870)	(2,902)
Employee benefit plans	(315)	603
Other, net	2,565	2,463
Net cash flows from operating activities	151,086	198,629
Cash flows from investing activities:
Additions to property, plant, and equipment	(28,897)	(30,155)
Proceeds from sale of property, plant, and equipment	704	0
Cash paid for acquisitions, net of cash acquired	(1,151)	(6,641)
Other, net	37	26
Net cash flows from investing activities	(29,307)	(36,770)
Cash flows from financing activities:
Proceeds from issuance of debt	267,539	381,789
Repayments of debt	(280,016)	(469,442)
Proceeds from issuance of common stock	5,269	9,010
Purchases of common stock	(56,989)	(29,888)
Dividends paid	(35,442)	(31,315)
Deferred Payments for Acquisitions	(348)	(448)
Net cash flows from financing activities	(99,987)	(140,294)
Effect of exchange rate changes on cash and cash equivalents	(482)	(4,848)
Net change in cash and cash equivalents	21,310	16,717
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	106,273	62,507
Non-cash items:
Additions to property, plant, and equipment, not yet paid	931	519
Right-of-Use Assets obtained in exchange for new operating lease liabilities	23,137	5,685
Payable to sellers of acquired entities	1,300	382
Non-cash investment to acquire property in lieu of cash payment for products provided	0	419
Accrued dividends payable to noncontrolling interest	0	821
Payable for share repurchases	$ 0	$ 890

CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	9 Months Ended
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS	Sep. 30, 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 September 30, 2024, and for the third quarters and nine months ended September 30, 2024 and September 30, 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 third quarter and nine months ended September 30, 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	9 Months Ended
ACCOUNTING PRONOUNCEMENTS	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
ACCOUNTING PRONOUNCEMENTS	ACCOUNTING PRONOUNCEMENTS Accounting Standards Issued But Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 will adopt this ASU in 2025 and does not anticipate the adoption to have material impact on the Company's financial disclosures.

ACQUISITIONS	9 Months Ended
ACQUISITIONS	Sep. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [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 the above acquisitions is preliminary as of September 30, 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 was 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

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

Level 1 – Quoted prices for identical assets and liabilities in active markets;

Level 3 – Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

As of September 30, 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:


(In millions)	September 30, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	5.9	$	5.9	$	—	$	—
Share swap transaction	2.2		2.2		—		—

Total assets	$	8.1	$	8.1	$	—	$	—

Liabilities:


Contingent payments related to acquisition	4.8		—		—		4.8
Total liabilities	$	4.8	$	—	$	—	$	4.8

(In millions)	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


	Third Quarter Ended		Nine Months Ended
(In millions)	September 30, 2024		September 30, 2024
Fair value at beginning of period	$	4.6	$	3.0
Adjustments to prior year acquisition	—		1.3
Change in fair value recognized in earnings	0.2		0.5
Payments	—		—
Fair value at end of period	$	4.8	$	4.8

FINANCIAL INSTRUMENTS	9 Months Ended
FINANCIAL INSTRUMENTS	Sep. 30, 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 September 30, 2024 and December 31, 2023, the swap had a notional value based on 240,000 shares. For the third quarter and nine months ended September 30, 2024, changes in the fair value of the swap resulted in gains of $1.7 million, and $0.9 million, respectively. For the third quarter and nine months ended September 30, 2023, changes in the fair value of the swap resulted in a loss of $3.6 million and a gain of $1.1 million, respectively. Gains and losses resulting from the swap were largely 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. 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 September 30, 2024, the Company had a notional amount of $31.4 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 third quarter and nine months ended September 30, 2024, changes in the fair value of the forward currency contracts resulted in losses of $0.6 million and $0.9 million, respectively. For the third quarter and nine months ended September 30, 2023, changes in the fair value of the forward currency contracts resulted in gains of $0.0 million and $1.6 million, respectively. These gains and losses are recorded in the Company's condensed consolidated statements of income within the "Foreign exchange income (expense), net" line.

GOODWILL AND OTHER INTANGIBLE ASSETS

9 Months Ended

Sep. 30, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

The carrying amounts of the Company’s intangible assets, excluding goodwill, are as follows:


(In millions)	September 30, 2024				December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangibles:
Customer relationships	$	264.3	$	(126.6)	$	263.7	$	(115.5)
Patents	7.3		(7.3)		7.3		(7.3)
Technology	7.5		(7.5)		7.5		(7.5)
Trade names	44.2		(7.7)		44.1		(5.8)
Other	3.2		(2.6)		3.4		(2.8)
Total	$	326.5	$	(151.7)	$	326.0	$	(138.9)
Non-amortizing intangibles:
Trade names	42.5		—		42.9		—
Total intangibles	$	369.0	$	(151.7)	$	368.9	$	(138.9)

The change in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 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	(0.9)		—		(0.1)		(1.0)
Foreign currency translation	(0.4)		0.1		—		(0.3)
Balance as of September 30, 2024	$	220.1	$	70.5	$	50.5	$	341.1

EMPLOYEE BENEFIT PLANS

9 Months Ended

Sep. 30, 2024

Retirement Benefits [Abstract]

EMPLOYEE BENEFIT PLANS

The following table sets forth the aggregated net periodic benefit cost for all pension plans for the third quarters and nine months ended September 30, 2024 and September 30, 2023:


(In millions)	Pension Benefits
	Third Quarter Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Service cost	$	0.2	$	0.2	$	0.5	$	0.5
Interest cost	1.6		1.7		4.7		5.0
Expected return on assets	(1.9)		(1.8)		(5.7)		(5.4)
Amortization of:
Prior service cost	—		—		—		—
Actuarial loss	0.5		0.5		1.7		1.6
Settlement cost	—		—		—		—
Net periodic benefit cost	$	0.4	$	0.6	$	1.2	$	1.7


(In millions)	Other Benefits
	Third Quarter Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Service cost	$	—	$	—	$	—	$	—
Interest cost	0.1		0.1		0.2		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	$	0.2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

9 Months Ended

Sep. 30, 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)	September 30, 2024		December 31, 2023

Salaries, wages, and commissions	$	47.0	$	45.9
Product warranty costs	9.3		9.3
Insurance	2.4		2.5
Employee benefits	18.3		13.8
Other	38.8		28.7
Total	$	115.8	$	100.2

INCOME TAXES	9 Months Ended
INCOME TAXES	Sep. 30, 2024
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXES The Company’s effective tax rate for the nine-month period ended September 30, 2024 was 22.9 percent as compared to 20.1 percent for the nine-month period ended September 30, 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. For the third quarter of 2024, the effective tax rate was 23.6 percent compared to 20.2 percent for the third quarter of 2023. The increase in the effective tax rate for the third quarter and first nine months of 2024 compared to the comparable periods in the prior year was a result of less favorable discrete events in 2024, primarily related to excess tax benefits from share-based compensation, in addition to an increase in the rate on foreign earnings with the implementation of the European Union’s Pillar Two Directive.

DEBT

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

DEBT

Debt consisted of the following:


(In millions)	September 30, 2024		December 31, 2023

New York Life Agreement	$	75.0	$	75.0
Credit Agreement	—		11.0
Tax increment financing debt	12.8		14.1

Foreign subsidiary debt	0.3		0.5

Less: unamortized debt issuance costs	(0.1)		(0.1)
	$	88.0	$	100.5
Less: current maturities	(76.4)		(12.4)
Long-term debt	$	11.6	$	88.1

Prudential Agreement

New York Life Agreement

Credit Agreement

EARNINGS PER SHARE

9 Months Ended

Sep. 30, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

The following table sets forth the computation of basic and diluted earnings per share:


	Third Quarter Ended				Nine Months Ended
(In millions, except per share amounts)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Numerator:
Net income attributable to Franklin Electric Co., Inc.	$	54.6	$	57.8	$	146.7	$	154.7
Less: Earnings allocated to participating securities	0.2		0.2		0.5		0.5
Net income available to common shareholders	$	54.4	$	57.6	$	146.2	$	154.2
Denominator:
Basic weighted average common shares outstanding	45.7		46.2		45.9		46.2
Effect of dilutive securities:
Non-participating employee stock options, performance awards, and deferred shares to non-employee directors	0.6		0.7		0.6		0.7
Diluted weighted average common shares outstanding	46.3		46.9		46.5		46.9
Basic earnings per share	$	1.19	$	1.25	$	3.18	$	3.34
Diluted earnings per share	$	1.17	$	1.23	$	3.14	$	3.29

EQUITY ROLL FORWARD

9 Months Ended

Sep. 30, 2024

Stockholders' Equity Note [Abstract]

EQUITY ROLL FORWARD

The schedules below set forth equity changes in the third quarters and nine months ended September 30, 2024 and September 30, 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 July 1, 2024	$	4,575	$	356,016	$	1,099,285	$	(237,705)	$	2,725	$	1,224,896	$	1,134
Net income	—		—		54,596		—		252		54,848		46
Dividends on common stock ($0.250/share)	—		—		(11,462)		—		—		(11,462)		—
Common stock issued	2		965		—		—		—		967		—
Common stock repurchased	(9)		—		(8,769)		—		—		(8,778)		—
Share-based compensation	1		3,111		—		—		—		3,112		—


Currency translation adjustment	—		—		—		8,621		86		8,707		(1)
Pension and other post retirement plans, net of taxes	—		—		—		416		—		416		—
Balance as of September 30, 2024	$	4,569	$	360,092	$	1,133,650	$	(228,668)	$	3,063	$	1,272,706	$	1,179

(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 July 1, 2023	$	4,626	$	340,812	$	1,020,883	$	(219,662)	$	2,842	$	1,149,501	$	901
Net income	—		—		57,798		—		234		58,032		136
Dividends on common stock ($0.225/share)	—		—		(10,443)		—		—		(10,443)		—

Common stock repurchased	(6)		—		(5,231)		—		—		(5,237)		—
Share-based compensation	1		2,038		—		—		—		2,039		—
Dividend to noncontrolling interest									(821)		(821)		—

Currency translation adjustment	—		—		—		(10,775)		(74)		(10,849)		(2)
Pension and other post retirement plans, net of taxes	—		—		—		385		—		385		—
Balance as of September 30, 2023	$	4,621	$	342,850	$	1,063,007	$	(230,052)	$	2,181	$	1,182,607	$	1,035


(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	—		—		146,654		—		607		147,261		56
Dividends on common stock ($0.750/share)	—		—		(34,586)		—		—		(34,586)		—
Common stock issued	9		5,260		—		—		—		5,269		—
Common stock repurchased	(59)		—		(56,930)		—		—		(56,989)		—
Share-based compensation	12		10,115		—		—		—		10,127		—
Dividend to noncontrolling interest	—		—		—		—		—		—		(21)

Currency translation adjustment	—		—		—		(8,837)		30		(8,807)		(1)
Pension and other post retirement plans, net of taxes	—		—		—		1,283		—		1,283		—
Balance as of September 30, 2024	$	4,569	$	360,092	$	1,133,650	$	(228,668)	$	3,063	$	1,272,706	$	1,179

(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	—		—		154,723		—		764		155,487		417
Dividends on common stock ($0.675/share)	—		—		(31,315)		—		—		(31,315)		—
Common stock issued	22		8,988		—		—		—		9,010		—
Common stock repurchased	(33)		—		(29,662)		—		—		(29,695)		—
Share-based compensation	13		8,436		—		—		—		8,449		—
Dividend to noncontrolling interest									(821)		(821)

Currency translation adjustment	—		—		—		178		(38)		140		(2)
Pension and other post retirement plans, net of taxes	—		—		—		1,218		—		1,218		—
Balance as of September 30, 2023	$	4,621	$	342,850	$	1,063,007	$	(230,052)	$	2,181	$	1,182,607	$	1,035

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

Changes in accumulated other comprehensive income/(loss) by component for the nine months ended September 30, 2024 and September 30, 2023, are summarized below:


(In millions)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Plan Benefit Adjustments (2)		Total
For the nine months ended September 30, 2024:
Balance as of December 31, 2023	$	(179.3)	$	(41.8)	$	(221.1)

Other comprehensive income/(loss) before reclassifications	(8.8)		—		(8.8)
Amounts reclassified from accumulated other comprehensive income/(loss) (1)	—		1.3		1.3
Net other comprehensive income/(loss)	(8.8)		1.3		(7.5)

Balance as of September 30, 2024	$	(188.1)	$	(40.5)	$	(228.6)

For the nine months ended September 30, 2023:
Balance as of December 31, 2022	$	(191.3)	$	(40.1)	$	(231.4)

Other comprehensive income/(loss) before reclassifications	0.2		—		0.2
Amounts reclassified from accumulated other comprehensive income/(loss) (1)	—		1.2		1.2
Net other comprehensive income/(loss)	0.2		1.2		1.4

Balance as of September 30, 2023	$	(191.1)	$	(38.9)	$	(230.0)

(2) Net of tax expense of $0.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.

Amounts related to noncontrolling interests were not material.

SEGMENT AND GEOGRAPHIC INFORMATION

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

SEGMENT AND GEOGRAPHIC INFORMATION

Financial information by reportable business segment is included in the following summary:


	Third Quarter Ended				Nine Months Ended
(In millions)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Net sales
Water Systems
External sales
United States & Canada	$	152.3	$	157.7	$	448.0	$	494.0
Latin America	43.5		45.5		126.6		127.8
Europe, Middle East & Africa	53.4		48.7		161.7		153.7
Asia Pacific	21.7		19.6		66.1		60.6
Intersegment sales
United States & Canada	31.3		24.3		102.0		88.0
Total sales	302.2		295.8		904.4		924.1
Distribution
External sales
United States & Canada	190.8		189.2		528.3		525.3
Intersegment sales	—		—		—		—
Total sales	190.8		189.2		528.3		525.3
Fueling Systems
External sales
United States & Canada	55.1		58.5		160.2		172.8
All other	14.6		19.2		44.7		58.0
Intersegment sales	—		—		—		—
Total sales	69.7		77.7		204.9		230.8

Intersegment Eliminations/Other	(31.3)		(24.3)		(102.0)		(88.0)
Consolidated	$	531.4	$	538.4	$	1,535.6	$	1,592.2

	Third Quarter Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Operating income/(loss)
Water Systems	$	52.8	$	52.7	$	162.3	$	152.5
Distribution	12.2		10.7		23.8		33.2
Fueling Systems	24.1		25.8		68.9		73.3
Intersegment Eliminations/Other	(15.6)		(11.1)		(54.4)		(47.4)
Consolidated	$	73.5	$	78.1	$	200.6	$	211.6


	September 30, 2024		December 31, 2023
	Total assets
Water Systems	$	1,052.1	$	1,044.4
Distribution	398.0		365.6
Fueling Systems	255.6		256.4
Other	101.5		61.7
Consolidated	$	1,807.2	$	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

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

At September 30, 2024, the Company had $12.1 million of commitments primarily for capital expenditures and purchase of raw materials to be used in production and finished goods.


(In millions)
Balance as of December 31, 2023	$	9.3
Accruals related to product warranties	10.0

Reductions for payments made	(10.0)
Balance as of September 30, 2024	$	9.3

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Thousands	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pay vs Performance Disclosure
Net income attributable to Franklin Electric Co., Inc.	$ 54,596	$ 57,798	$ 146,654	$ 154,723

Insider Trading Arrangements	9 Months Ended
Insider Trading Arrangements	Sep. 30, 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 September 30, 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 (Policies)	9 Months Ended
ACCOUNTING PRONOUNCEMENTS (Policies)	Sep. 30, 2024
Accounting Changes and Error Corrections [Abstract]
Adoption of New Accounting Standards	Accounting Standards Issued But Not Yet Adopted In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("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 will adopt this ASU in 2025 and does not anticipate the adoption to have material impact on the Company's financial disclosures.

FAIR VALUE MEASUREMENTS (Tables)

9 Months Ended

Sep. 30, 2024

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets Measured on Recurring Basis

As of September 30, 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:


(In millions)	September 30, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets:
Cash equivalents	$	5.9	$	5.9	$	—	$	—
Share swap transaction	2.2		2.2		—		—

Total assets	$	8.1	$	8.1	$	—	$	—

Liabilities:


Contingent payments related to acquisition	4.8		—		—		4.8
Total liabilities	$	4.8	$	—	$	—	$	4.8

(In millions)	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 September 30, 2024 in the condensed consolidated balance sheets:


	Third Quarter Ended		Nine Months Ended
(In millions)	September 30, 2024		September 30, 2024
Fair value at beginning of period	$	4.6	$	3.0
Adjustments to prior year acquisition	—		1.3
Change in fair value recognized in earnings	0.2		0.5
Payments	—		—
Fair value at end of period	$	4.8	$	4.8

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

9 Months Ended

Sep. 30, 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)	September 30, 2024				December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangibles:
Customer relationships	$	264.3	$	(126.6)	$	263.7	$	(115.5)
Patents	7.3		(7.3)		7.3		(7.3)
Technology	7.5		(7.5)		7.5		(7.5)
Trade names	44.2		(7.7)		44.1		(5.8)
Other	3.2		(2.6)		3.4		(2.8)
Total	$	326.5	$	(151.7)	$	326.0	$	(138.9)
Non-amortizing intangibles:
Trade names	42.5		—		42.9		—
Total intangibles	$	369.0	$	(151.7)	$	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)	September 30, 2024				December 31, 2023
	Gross Carrying Amount		Accumulated Amortization		Gross Carrying Amount		Accumulated Amortization
Amortizing intangibles:
Customer relationships	$	264.3	$	(126.6)	$	263.7	$	(115.5)
Patents	7.3		(7.3)		7.3		(7.3)
Technology	7.5		(7.5)		7.5		(7.5)
Trade names	44.2		(7.7)		44.1		(5.8)
Other	3.2		(2.6)		3.4		(2.8)
Total	$	326.5	$	(151.7)	$	326.0	$	(138.9)
Non-amortizing intangibles:
Trade names	42.5		—		42.9		—
Total intangibles	$	369.0	$	(151.7)	$	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 nine months ended September 30, 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	(0.9)		—		(0.1)		(1.0)
Foreign currency translation	(0.4)		0.1		—		(0.3)
Balance as of September 30, 2024	$	220.1	$	70.5	$	50.5	$	341.1

EMPLOYEE BENEFIT PLANS (Tables)

9 Months Ended

Sep. 30, 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 third quarters and nine months ended September 30, 2024 and September 30, 2023:


(In millions)	Pension Benefits
	Third Quarter Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Service cost	$	0.2	$	0.2	$	0.5	$	0.5
Interest cost	1.6		1.7		4.7		5.0
Expected return on assets	(1.9)		(1.8)		(5.7)		(5.4)
Amortization of:
Prior service cost	—		—		—		—
Actuarial loss	0.5		0.5		1.7		1.6
Settlement cost	—		—		—		—
Net periodic benefit cost	$	0.4	$	0.6	$	1.2	$	1.7

Other Benefits

Defined Benefit Plans and Other Postretirement Benefit Plans

Schedule of Aggregated Net Periodic Benefit Cost and Other Benefit Cost


(In millions)	Other Benefits
	Third Quarter Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Service cost	$	—	$	—	$	—	$	—
Interest cost	0.1		0.1		0.2		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	$	0.2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)

9 Months Ended

Sep. 30, 2024

Payables and Accruals [Abstract]

Schedule of Accrued Liabilities

Accrued expenses and other current liabilities consist of:


(In millions)	September 30, 2024		December 31, 2023

Salaries, wages, and commissions	$	47.0	$	45.9
Product warranty costs	9.3		9.3
Insurance	2.4		2.5
Employee benefits	18.3		13.8
Other	38.8		28.7
Total	$	115.8	$	100.2

DEBT (Tables)

9 Months Ended

Sep. 30, 2024

Debt Disclosure [Abstract]

Schedule of Long-term Debt

Debt consisted of the following:


(In millions)	September 30, 2024		December 31, 2023

New York Life Agreement	$	75.0	$	75.0
Credit Agreement	—		11.0
Tax increment financing debt	12.8		14.1

Foreign subsidiary debt	0.3		0.5

Less: unamortized debt issuance costs	(0.1)		(0.1)
	$	88.0	$	100.5
Less: current maturities	(76.4)		(12.4)
Long-term debt	$	11.6	$	88.1

EARNINGS PER SHARE (Tables)

9 Months Ended

Sep. 30, 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:


	Third Quarter Ended				Nine Months Ended
(In millions, except per share amounts)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
Numerator:
Net income attributable to Franklin Electric Co., Inc.	$	54.6	$	57.8	$	146.7	$	154.7
Less: Earnings allocated to participating securities	0.2		0.2		0.5		0.5
Net income available to common shareholders	$	54.4	$	57.6	$	146.2	$	154.2
Denominator:
Basic weighted average common shares outstanding	45.7		46.2		45.9		46.2
Effect of dilutive securities:
Non-participating employee stock options, performance awards, and deferred shares to non-employee directors	0.6		0.7		0.6		0.7
Diluted weighted average common shares outstanding	46.3		46.9		46.5		46.9
Basic earnings per share	$	1.19	$	1.25	$	3.18	$	3.34
Diluted earnings per share	$	1.17	$	1.23	$	3.14	$	3.29

EQUITY ROLL FORWARD (Tables)

9 Months Ended

Sep. 30, 2024

Stockholders' Equity Note [Abstract]

Schedule of Stockholders' Equity

The schedules below set forth equity changes in the third quarters and nine months ended September 30, 2024 and September 30, 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 July 1, 2024	$	4,575	$	356,016	$	1,099,285	$	(237,705)	$	2,725	$	1,224,896	$	1,134
Net income	—		—		54,596		—		252		54,848		46
Dividends on common stock ($0.250/share)	—		—		(11,462)		—		—		(11,462)		—
Common stock issued	2		965		—		—		—		967		—
Common stock repurchased	(9)		—		(8,769)		—		—		(8,778)		—
Share-based compensation	1		3,111		—		—		—		3,112		—


Currency translation adjustment	—		—		—		8,621		86		8,707		(1)
Pension and other post retirement plans, net of taxes	—		—		—		416		—		416		—
Balance as of September 30, 2024	$	4,569	$	360,092	$	1,133,650	$	(228,668)	$	3,063	$	1,272,706	$	1,179

(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 July 1, 2023	$	4,626	$	340,812	$	1,020,883	$	(219,662)	$	2,842	$	1,149,501	$	901
Net income	—		—		57,798		—		234		58,032		136
Dividends on common stock ($0.225/share)	—		—		(10,443)		—		—		(10,443)		—

Common stock repurchased	(6)		—		(5,231)		—		—		(5,237)		—
Share-based compensation	1		2,038		—		—		—		2,039		—
Dividend to noncontrolling interest									(821)		(821)		—

Currency translation adjustment	—		—		—		(10,775)		(74)		(10,849)		(2)
Pension and other post retirement plans, net of taxes	—		—		—		385		—		385		—
Balance as of September 30, 2023	$	4,621	$	342,850	$	1,063,007	$	(230,052)	$	2,181	$	1,182,607	$	1,035


(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	—		—		146,654		—		607		147,261		56
Dividends on common stock ($0.750/share)	—		—		(34,586)		—		—		(34,586)		—
Common stock issued	9		5,260		—		—		—		5,269		—
Common stock repurchased	(59)		—		(56,930)		—		—		(56,989)		—
Share-based compensation	12		10,115		—		—		—		10,127		—
Dividend to noncontrolling interest	—		—		—		—		—		—		(21)

Currency translation adjustment	—		—		—		(8,837)		30		(8,807)		(1)
Pension and other post retirement plans, net of taxes	—		—		—		1,283		—		1,283		—
Balance as of September 30, 2024	$	4,569	$	360,092	$	1,133,650	$	(228,668)	$	3,063	$	1,272,706	$	1,179

(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	—		—		154,723		—		764		155,487		417
Dividends on common stock ($0.675/share)	—		—		(31,315)		—		—		(31,315)		—
Common stock issued	22		8,988		—		—		—		9,010		—
Common stock repurchased	(33)		—		(29,662)		—		—		(29,695)		—
Share-based compensation	13		8,436		—		—		—		8,449		—
Dividend to noncontrolling interest									(821)		(821)

Currency translation adjustment	—		—		—		178		(38)		140		(2)
Pension and other post retirement plans, net of taxes	—		—		—		1,218		—		1,218		—
Balance as of September 30, 2023	$	4,621	$	342,850	$	1,063,007	$	(230,052)	$	2,181	$	1,182,607	$	1,035

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Tables)

9 Months Ended

Sep. 30, 2024

Equity [Abstract]

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS)

Changes in accumulated other comprehensive income/(loss) by component for the nine months ended September 30, 2024 and September 30, 2023, are summarized below:


(In millions)	Foreign Currency Translation Adjustments		Pension and Post-Retirement Plan Benefit Adjustments (2)		Total
For the nine months ended September 30, 2024:
Balance as of December 31, 2023	$	(179.3)	$	(41.8)	$	(221.1)

Other comprehensive income/(loss) before reclassifications	(8.8)		—		(8.8)
Amounts reclassified from accumulated other comprehensive income/(loss) (1)	—		1.3		1.3
Net other comprehensive income/(loss)	(8.8)		1.3		(7.5)

Balance as of September 30, 2024	$	(188.1)	$	(40.5)	$	(228.6)

For the nine months ended September 30, 2023:
Balance as of December 31, 2022	$	(191.3)	$	(40.1)	$	(231.4)

Other comprehensive income/(loss) before reclassifications	0.2		—		0.2
Amounts reclassified from accumulated other comprehensive income/(loss) (1)	—		1.2		1.2
Net other comprehensive income/(loss)	0.2		1.2		1.4

Balance as of September 30, 2023	$	(191.1)	$	(38.9)	$	(230.0)

(2) Net of tax expense of $0.4 million for the nine months ended September 30, 2024 and September 30, 2023, respectively.

SEGMENT AND GEOGRAPHIC INFORMATION (Tables)

9 Months Ended

Sep. 30, 2024

Segment Reporting [Abstract]

Schedule of Financial Information by Reportable Business Segment

Financial information by reportable business segment is included in the following summary:


	Third Quarter Ended				Nine Months Ended
(In millions)	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Net sales
Water Systems
External sales
United States & Canada	$	152.3	$	157.7	$	448.0	$	494.0
Latin America	43.5		45.5		126.6		127.8
Europe, Middle East & Africa	53.4		48.7		161.7		153.7
Asia Pacific	21.7		19.6		66.1		60.6
Intersegment sales
United States & Canada	31.3		24.3		102.0		88.0
Total sales	302.2		295.8		904.4		924.1
Distribution
External sales
United States & Canada	190.8		189.2		528.3		525.3
Intersegment sales	—		—		—		—
Total sales	190.8		189.2		528.3		525.3
Fueling Systems
External sales
United States & Canada	55.1		58.5		160.2		172.8
All other	14.6		19.2		44.7		58.0
Intersegment sales	—		—		—		—
Total sales	69.7		77.7		204.9		230.8

Intersegment Eliminations/Other	(31.3)		(24.3)		(102.0)		(88.0)
Consolidated	$	531.4	$	538.4	$	1,535.6	$	1,592.2

	Third Quarter Ended				Nine Months Ended
	September 30, 2024		September 30, 2023		September 30, 2024		September 30, 2023
	Operating income/(loss)
Water Systems	$	52.8	$	52.7	$	162.3	$	152.5
Distribution	12.2		10.7		23.8		33.2
Fueling Systems	24.1		25.8		68.9		73.3
Intersegment Eliminations/Other	(15.6)		(11.1)		(54.4)		(47.4)
Consolidated	$	73.5	$	78.1	$	200.6	$	211.6


	September 30, 2024		December 31, 2023
	Total assets
Water Systems	$	1,052.1	$	1,044.4
Distribution	398.0		365.6
Fueling Systems	255.6		256.4
Other	101.5		61.7
Consolidated	$	1,807.2	$	1,728.1

COMMITMENTS AND CONTINGENCIES (Tables)

9 Months Ended

Sep. 30, 2024

Commitments and Contingencies Disclosure [Abstract]

Schedule of Changes in the Carrying Amount of the Warranty Accrual


(In millions)
Balance as of December 31, 2023	$	9.3
Accruals related to product warranties	10.0

Reductions for payments made	(10.0)
Balance as of September 30, 2024	$	9.3

ACQUISITIONS (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
ACQUISITIONS (Narrative) (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023	Mar. 31, 2023	Sep. 30, 2024
Business Acquisition
Goodwill, Purchase Accounting Adjustments				$ 1.0
Hydropompe Srl [Domain]
Business Acquisition
Business acquisition, percentage of voting interests acquired			100.00%
Series of Individually Immaterial Business Acquisitions
Business Acquisition
Total purchase price		$ 36.0	$ 8.7
Business Combination, Contingent Consideration, Liability		$ 4.3
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability	$ 1.3
Goodwill, Purchase Accounting Adjustments	1.0
Finite-Lived Intangible Assets, Purchase Accounting Adjustments	$ 2.3

FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Total debt, carrying value	$ 88.0	$ 88.0		$ 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	4.8	4.8	$ 4.6	3.0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Issuances	0.0	1.3
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings	0.2	0.5
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Settlements	0.0	0.0
Recurring Basis
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	5.9	5.9		10.9
Equity Securities, FV-NI	2.2	2.2		1.1
Assets, Fair Value Disclosure	8.1	8.1		12.0
Business Combination, Contingent Consideration, Liability	4.8	4.8		3.0
Financial Liabilities Fair Value Disclosure	4.8	4.8		3.0
Recurring Basis \| Quoted Prices in Active Markets for Identical Assets (Level 1)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	5.9	5.9		10.9
Equity Securities, FV-NI	2.2	2.2		1.1
Assets, Fair Value Disclosure	8.1	8.1		12.0
Business Combination, Contingent Consideration, Liability	0.0	0.0		0.0
Financial Liabilities Fair Value Disclosure	0.0	0.0		0.0
Recurring Basis \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	0.0	0.0		0.0
Equity Securities, FV-NI	0.0	0.0		0.0
Assets, Fair Value Disclosure	0.0	0.0		0.0
Business Combination, Contingent Consideration, Liability	0.0	0.0		0.0
Financial Liabilities Fair Value Disclosure	0.0	0.0		0.0
Recurring Basis \| Significant Unobservable Inputs (Level 3)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Cash equivalents	0.0	0.0		0.0
Equity Securities, FV-NI	0.0	0.0		0.0
Assets, Fair Value Disclosure	0.0	0.0		0.0
Business Combination, Contingent Consideration, Liability	4.8	4.8		3.0
Financial Liabilities Fair Value Disclosure	4.8	4.8		3.0
Carrying value
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Total debt, carrying value	88.0	88.0		100.5
Fair value \| Significant Other Observable Inputs (Level 2)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis
Total debt, fair value	$ 86.9	$ 86.9		$ 98.6

FINANCIAL INSTRUMENTS (Details) - Not Designated as Hedging Instrument $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($)	Sep. 30, 2024 USD ($) shares	Sep. 30, 2023 USD ($)	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		240,000
Share swap transaction agreement \| Selling, general, and administrative expenses
Derivative
Loss on derivative		$ 3.6
Gain on derivative	$ 1.7		$ 0.9	$ 1.1
Foreign Exchange Forward
Derivative
Derivative, Notional Amount	31.4		31.4		$ 0.0
Foreign Exchange Forward \| Foreign Currency Gain (Loss)
Derivative
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments	$ (0.6)	$ 0.0	$ (0.9)	$ 1.6

GOODWILL AND OTHER INTANGIBLE ASSETS (Intangible Assets) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Intangible Assets
Gross carrying amount, amortized intangibles	$ 326.5		$ 326.5		$ 326.0
Gross carrying amount, total intangibles	369.0		369.0		368.9
Accumulated amortization	(151.7)		(151.7)		(138.9)
Amortization of Intangible Assets	4.7	$ 4.2	14.2	$ 12.7
Trade Names
Intangible Assets
Gross carrying amount, unamortized intangibles	42.5		42.5		42.9
Customer Relationships
Intangible Assets
Gross carrying amount, amortized intangibles	264.3		264.3		263.7
Accumulated amortization	(126.6)		(126.6)		(115.5)
Patents
Intangible Assets
Gross carrying amount, amortized intangibles	7.3		7.3		7.3
Accumulated amortization	(7.3)		(7.3)		(7.3)
Technology
Intangible Assets
Gross carrying amount, amortized intangibles	7.5		7.5		7.5
Accumulated amortization	(7.5)		(7.5)		(7.5)
Trade Names
Intangible Assets
Gross carrying amount, amortized intangibles	44.2		44.2		44.1
Accumulated amortization	(7.7)		(7.7)		(5.8)
Other
Intangible Assets
Gross carrying amount, amortized intangibles	3.2		3.2		3.4
Accumulated amortization	$ (2.6)		$ (2.6)		$ (2.8)

GOODWILL AND OTHER INTANGIBLE ASSETS GOODWILL AND OTHER INTANGIBLE ASSETS (Goodwill) (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2024 USD ($)
Goodwill
Goodwill, beginning balance	$ 342,404
Goodwill, Purchase Accounting Adjustments	(1,000)
Foreign currency translation	(300)
Goodwill, ending balance	341,092
Water Systems
Goodwill
Goodwill, beginning balance	221,400
Goodwill, Purchase Accounting Adjustments	(900)
Foreign currency translation	(400)
Goodwill, ending balance	220,100
Fueling Systems
Goodwill
Goodwill, beginning balance	70,400
Goodwill, Purchase Accounting Adjustments	0
Foreign currency translation	100
Goodwill, ending balance	70,500
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) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
EMPLOYEE BENEFIT PLANS (Details) - USD ($) $ in Millions	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Pension Plan
Net Periodic Benefit Cost
Service cost	$ 0.2	$ 0.2	$ 0.5	$ 0.5
Interest cost	1.6	1.7	4.7	5.0
Expected return on assets	(1.9)	(1.8)	(5.7)	(5.4)
Amortization of Prior Service Cost	0.0	0.0	0.0	0.0
Amortization of actuarial loss	0.5	0.5	1.7	1.6
Settlement cost	0.0	0.0	0.0	0.0
Net periodic benefit cost	0.4	0.6	1.2	1.7
Other Benefits
Net Periodic Benefit Cost
Service cost	0.0	0.0	0.0	0.0
Interest cost	0.1	0.1	0.2	0.2
Expected return on assets	0.0	0.0	0.0	0.0
Amortization of Prior Service Cost	0.0	0.0	0.0	0.0
Amortization of actuarial loss	0.0	0.0	0.0	0.0
Settlement cost	0.0	0.0	0.0	0.0
Net periodic benefit cost	$ 0.1	$ 0.1	$ 0.2	$ 0.2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Millions	Sep. 30, 2024	Dec. 31, 2023
Payables and Accruals [Abstract]
Salaries, wages, and commissions	$ 47.0	$ 45.9
Product warranty costs	9.3	9.3
Insurance	2.4	2.5
Employee benefits	18.3	13.8
Other	38.8	28.7
Accrued expenses and other current liabilities	$ 115.8	$ 100.2

INCOME TAXES (Details)	3 Months Ended		9 Months Ended
INCOME TAXES (Details)	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Effective tax rate	23.60%	20.20%	22.90%	20.10%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21.00%

DEBT (Schedule of Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Debt Instrument
Less: unamortized debt issuance costs	$ (100)	$ (100)
Total debt and capital leases	88,000	100,500
Less: current maturities	(76,402)	(12,355)
Long-term debt	11,581	88,056
Tax increment financing debt
Debt Instrument
Long-term Debt, Gross	12,800	14,100
Foreign subsidiary debt
Debt Instrument
Long-term Debt, Gross	300	500
Credit Agreement
Debt Instrument
Long-term Debt, Gross	0	11,000
Remaining borrowing capacity	345,400	335,400
New York Life Investors LLC
Debt Instrument
Long-term Debt, Gross	$ 75,000	$ 75,000

DEBT (Details) - USD ($) $ in Millions	3 Months Ended
DEBT (Details) - USD ($) $ in Millions	Dec. 31, 2023	Sep. 30, 2024	May 15, 2024	May 14, 2024
New York Life Investors LLC
Line of Credit Facility
Total borrowing capacity of facility			$ 250.0	$ 200.0
Prudential Financial
Line of Credit Facility
Total borrowing capacity of facility			$ 250.0	$ 150.0
Bank Overdrafts
Line of Credit Facility
Total borrowing capacity of facility	$ 17.9	$ 17.6
Outstanding borrowings	0.0	0.0
Remaining borrowing capacity	17.9	17.6
Credit Agreement
Line of Credit Facility
Outstanding borrowings	$ 11.0	0.0
Line of Credit Facility, Interest Rate During Period	6.30%
Letters of credit outstanding	$ 3.6	4.6
Remaining borrowing capacity	$ 335.4	$ 345.4

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands, shares in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Numerator:
Net income attributable to Franklin Electric Co., Inc.	$ 54,596	$ 57,798	$ 146,654	$ 154,723
Less: Earnings allocated to participating securities	200	200	500	500
Net income available to common shareholders	$ 54,400	$ 57,600	$ 146,200	$ 154,200
Basic
Basic weighted average common shares outstanding	45.7	46.2	45.9	46.2
Effect of dilutive securities:
Non-participating employee stock options, performance awards, and deferred shares to non-employee directors	0.6	0.7	0.6	0.7
Diluted weighted average common shares outstanding	46.3	46.9	46.5	46.9
Basic	$ 1.19	$ 1.25	$ 3.18	$ 3.34
Diluted	$ 1.17	$ 1.23	$ 3.14	$ 3.29
Anti-dilutive stock options (in shares)	0.1	0.1	0.1	0.1

EQUITY ROLL FORWARD (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Common Stock, Dividends, Per Share, Cash Paid	$ 0.250	$ 0.225	$ 0.750	$ 0.675
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance			$ 1,209,148
Net income	$ 54,894	$ 58,168	147,317	$ 155,904
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders			(21)
Equity, ending balance	1,272,706		1,272,706
Temporary equity, beginning balance	1,134	901	1,145	620
Net income	46	136	56	417
Temporary Equity, Foreign Currency Translation Adjustments	(1)	(2)	(1)	(2)
Temporary equity, ending balance	1,179	1,035	1,179	1,035
Common Stock
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	4,575	4,626	4,607	4,619
Stock Issued During Period, Value, New Issues	2		9	22
Stock Repurchased and Retired During Period, Value	(9)	(6)	(59)	(33)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	1	1	12	13
Equity, ending balance	4,569	4,621	4,569	4,621
Additional Paid-in Capital
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	356,016	340,812	344,717	325,426
Stock Issued During Period, Value, New Issues	965		5,260	8,988
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	3,111	2,038	10,115	8,436
Equity, ending balance	360,092	342,850	360,092	342,850
Retained Earnings
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	1,099,285	1,020,883	1,078,512	969,261
Net income	54,596	57,798	146,654	154,723
Dividends, Common Stock, Cash	(11,462)	(10,443)	(34,586)	(31,315)
Stock Repurchased and Retired During Period, Value	(8,769)	(5,231)	(56,930)	(29,662)
Equity, ending balance	1,133,650	1,063,007	1,133,650	1,063,007
Accumulated Other Comprehensive Income/(Loss)
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	(237,705)	(219,662)	(221,114)	(231,448)
Currency translation adjustment	8,621	(10,775)	(8,837)	178
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	416	385	1,283	1,218
Equity, ending balance	(228,668)	(230,052)	(228,668)	(230,052)
Noncontrolling Interest
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	2,725	2,842	2,426	2,276
Net income	252	234	607	764
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		(821)		(821)
Currency translation adjustment	86	(74)	30	(38)
Equity, ending balance	3,063	2,181	3,063	2,181
Total Equity
Increase (Decrease) in Stockholders' Equity
Equity, beginning balance	1,224,896	1,149,501	1,209,148	1,070,134
Net income	54,848	58,032	147,261	155,487
Dividends, Common Stock, Cash	(11,462)	(10,443)	(34,586)	(31,315)
Stock Issued During Period, Value, New Issues	967		5,269	9,010
Stock Repurchased and Retired During Period, Value	(8,778)	(5,237)	(56,989)	(29,695)
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture	3,112	2,039	10,127	8,449
Noncontrolling Interest, Decrease from Distributions to Noncontrolling Interest Holders		(821)	0	(821)
Currency translation adjustment	8,707	(10,849)	(8,807)	140
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	416	385	1,283	1,218
Equity, ending balance	$ 1,272,706	$ 1,182,607	$ 1,272,706	$ 1,182,607

ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax
Equity, beginning balance			$ 1,209,148
Net other comprehensive income/(loss)	$ 9,122	$ (10,466)	(7,525)	$ 1,356
Equity, ending balance	1,272,706		1,272,706
Income tax expense related to items of other comprehensive income/(loss)	137	128	423	405
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			(8,800)	200
Amounts reclassified from accumulated other comprehensive income/(loss) (1)			0	0
Net other comprehensive income/(loss)			(8,800)	200
Equity, ending balance	(188,100)	(191,100)	(188,100)	(191,100)
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)			1,300	1,200
Net other comprehensive income/(loss)			1,300	1,200
Equity, ending balance	(40,500)	(38,900)	(40,500)	(38,900)
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			(8,800)	200
Amounts reclassified from accumulated other comprehensive income/(loss) (1)			1,300	1,200
Net other comprehensive income/(loss)			(7,500)	1,400
Equity, ending balance	$ (228,600)	$ (230,000)	$ (228,600)	$ (230,000)

SEGMENT AND GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Segment Reporting Information
Net sales	$ 531,438	$ 538,431	$ 1,535,596	$ 1,592,163
Operating income/(loss)	73,526	78,104	200,611	211,613
Total assets	1,807,243		1,807,243		$ 1,728,122
Corporate And Eliminations
Segment Reporting Information
Net sales	(31,300)	(24,300)	(102,000)	(88,000)
Operating income/(loss)	(15,600)	(11,100)	(54,400)	(47,400)
Total assets	101,500		101,500		61,700
Water Systems \| Operating Segments
Segment Reporting Information
Net sales	302,200	295,800	904,400	924,100
Operating income/(loss)	52,800	52,700	162,300	152,500
Total assets	1,052,100		1,052,100		1,044,400
Water Systems \| United States & Canada
Segment Reporting Information
Net sales	152,300	157,700	448,000	494,000
Water Systems \| United States & Canada \| Intersegment Sales
Segment Reporting Information
Net sales	31,300	24,300	102,000	88,000
Water Systems \| Latin America
Segment Reporting Information
Net sales	43,500	45,500	126,600	127,800
Water Systems \| EMEA
Segment Reporting Information
Net sales	53,400	48,700	161,700	153,700
Water Systems \| Asia Pacific
Segment Reporting Information
Net sales	21,700	19,600	66,100	60,600
Distribution \| Operating Segments
Segment Reporting Information
Net sales	190,800	189,200	528,300	525,300
Operating income/(loss)	12,200	10,700	23,800	33,200
Total assets	398,000		398,000		365,600
Distribution \| United States & Canada
Segment Reporting Information
Net sales	190,800	189,200	528,300	525,300
Distribution \| United States & Canada \| Intersegment Sales
Segment Reporting Information
Net sales	0	0	0	0
Fueling Systems \| Operating Segments
Segment Reporting Information
Net sales	69,700	77,700	204,900	230,800
Operating income/(loss)	24,100	25,800	68,900	73,300
Total assets	255,600		255,600		$ 256,400
Fueling Systems \| Intersegment Sales
Segment Reporting Information
Net sales	0	0	0	0
Fueling Systems \| United States & Canada
Segment Reporting Information
Net sales	55,100	58,500	160,200	172,800
Fueling Systems \| All Other
Segment Reporting Information
Net sales	14,600	19,200	44,700	58,000
Consolidated
Segment Reporting Information
Net sales	$ 531,400	$ 538,400	$ 1,535,600	$ 1,592,200

COMMITMENTS AND CONTINGENCIES (Details) € in Millions, $ in Millions	9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2024 EUR (€)	Dec. 31, 2023 USD ($)
Commitments
Purchase obligations	$ 12.1
Changes in the Carrying Amount of the Warranty Accrual
Beginning balance	9.3
Accruals related to product warranties	10.0
Reductions for payments made	(10.0)
Ending balance	9.3
Recurring Basis
Loss Contingencies
Business Combination, Contingent Consideration, Liability	4.8		$ 3.0
Changes in the Carrying Amount of the Warranty Accrual
Business Combination, Contingent Consideration, Liability	4.8		3.0
Series of Individually Immaterial Business Acquisitions
Loss Contingencies
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High	5.0
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	$ 5.0
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

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