UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
---------
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILAR PLANS PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
[X] ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED DECEMBER 31, 1999
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from _____ to _____
COMMISSION FILE NUMBER 0-362
FRANKLIN ELECTRIC DIRECTED INVESTMENT SALARY PLAN
(FULL TITLE OF THE PLAN)
FRANKLIN ELECTRIC CO., INC.
(EXACT NAME OF ISSUER AS SPECIFIED IN ITS CHARTER)
INDIANA 35-0827455
(STATE OR OTHER JURISDICTION OF (I.R.S. EMPLOYER
INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.)
400 EAST SPRING STREET 46714-3798
BLUFFTON, INDIANA (ZIP CODE)
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)
(219) 824-2900
(ISSUER'S TELEPHONE NUMBER, INCLUDING AREA CODE)
<PAGE> 2
TABLE OF CONTENTS
Page
Independent Auditors' Report................................... 3
Financial Statements:
Statements of Net Assets Available for
Benefits as of December 31, 1999 and 1998.................. 4
Statement of Changes in Net Assets Available
for Benefits for the Year Ended December 31, 1999.......... 5
Notes to Financial Statements................................ 6-11
Supplemental Schedules at and for the Year Ended December 31, 1999:
Form 5500, Schedule H, Part IV, Item 4(i), Schedule of
Assets Held for Investment Purposes........................ 12-13
Form 5500, Schedule H, Part IV, Item 4(j), Schedule of
Reportable Transactions.................................... 14
Signatures..................................................... 15
Exhibit 23-Independent Auditor's Consent....................... 16
Supplemental Schedules not listed are omitted due to the absence of conditions
under which they are required.
<PAGE> 3
INDEPENDENT AUDITORS' REPORT
----------------------------
To the Employee Benefits Committee of Franklin Electric Co., Inc.:
We have audited the accompanying financial statements of the Franklin Electric
Directed Investment Salary Plan (the "Plan") as of December 31, 1999 and 1998
and for the year ended December 31, 1999, listed in the table of contents.
These financial statements are the responsibility of the Plan's management.
Our responsibility is to express an opinion on these financial statements
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements present fairly, in all material
respects, the net assets available for benefits of the Plan at December 31,
1999 and 1998, and the changes in net assets available for benefits for the
year ended December 31, 1999 in conformity with generally accepted accounting
principles.
Our audits were conducted for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental schedules listed in
the table of contents are presented for the purpose of additional analysis and
are not a required part of the basic financial statements, but are
supplementary information required by the Department of Labor's Rules and
Regulations for Reporting and Disclosure under the Employee Retirement Income
Security Act of 1974. These schedules are the responsibility of the Plan's
management. Such schedules have been subjected to the auditing procedures
applied in our audit of the basic 1999 financial statements and, in our
opinion, are fairly stated in all material respects when considered in
relation to the basic financial statements taken as a whole.
/s/ DELOITTE & TOUCHE LLP
Deloitte & Touche LLP
Chicago, Illinois
May 25, 2000
<PAGE> 4
FRANKLIN ELECTRIC DIRECTED INVESTMENT SALARY PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
1999 1998
---- ----
ASSETS
------
Investments, at fair value (Note 3):
Short-term investments $ 1,249,700 $ 3,387,800
Franklin Electric Common Stock 24,953,700 26,952,100
Other Common Stocks 22,135,900 24,832,400
U.S. Government & Government Agencies 4,088,200 3,082,000
Shares of Registered Investment Companies:
Invesco Diversified Equity Fund 10,535,100 7,543,900
Bank One Intermediate Bond Fund 699,400 434,700
---------- ----------
63,662,000 66,232,900
Stable Return Fund:
Insurance Company Contracts, at contract value
(Note 5) 10,699,300 9,615,700
Collective Investment Fund 2,656,900 -
Participant loans 1,246,200 1,052,400
---------- ----------
Total investments 78,264,400 76,901,000
Receivables:
Employer contribution 666,300 617,200
Employee contribution 157,400 210,200
Accrued investment income 175,700 687,900
---------- ----------
Total receivables 999,400 1,515,300
Cash 18,600 37,200
---------- ----------
TOTAL ASSETS 79,282,400 78,453,500
LIABILITIES
-----------
Fees payable 7,900 25,300
---------- ----------
TOTAL LIABILITIES 7,900 25,300
NET ASSETS AVAILABLE FOR BENEFITS $79,274,500 $78,428,200
=========== ===========
See notes to the financial statements.
<PAGE> 5
FRANKLIN ELECTRIC DIRECTED INVESTMENT SALARY PLAN
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
1999
----
Additions:
Interest and dividends $ 1,672,400
Net appreciation(depreciation) in fair
value of investments:
Franklin Electric Common Stock 925,200
Other Common Stocks (275,100)
U.S. Government & Government Agencies (38,800)
Diversified Equity Fund 1,829,300
Intermediate Bond Fund (31,100)
Collective Investment Fund 177,800
----------
4,259,700
Contributions:
Employer 666,300
Employee 3,641,000
Rollover 115,300
Transfer from ESOP Diversification 85,600
----------
Total additions 8,767,900
Deductions:
Benefits paid to participants 7,627,200
Administrative expenses 278,500
Loan fees 15,900
----------
Total deductions 7,921,600
----------
Net increase 846,300
Net assets available for benefits,
beginning of year 78,428,200
----------
Net assets available for benefits,
end of year $79,274,500
===========
See notes to the financial statements.
<PAGE> 6
FRANKLIN ELECTRIC DIRECTED INVESTMENT SALARY PLAN
NOTES TO FINANCIAL STATEMENTS
1. PLAN DESCRIPTION
----------------------
GENERAL - The Franklin Electric Directed Investment Salary Plan (the "Plan")
is a defined contribution employee benefit plan covering substantially all
eligible employees who elect to participate with the exception of hourly
employees at the Jonesboro facility. Company matching contributions for
Bluffton hourly and Siloam Springs hourly and non-exempt employees are made to
the Plan. Company matching contributions for all other eligible employees are
made to the Company-sponsored Employee Stock Ownership Plan ("ESOP").
The Plan is administered by the Franklin Electric Co., Inc. (the "Company")
Employee Benefits Committee("Plan Administrator"), appointed by the Company,
and National City Bank of Indiana("Plan Trustee"). The Plan is subject to the
provisions of the Employee Retirement Income Security Act ("ERISA") of 1974.
Participants should refer to the Plan Document and Summary Plan Description
for more complete information.
CONTRIBUTIONS - Participating employees may elect to contribute from 1 percent
to 15 percent of their eligible compensation to the Plan, subject to IRS
limitations. The Company will contribute to the Plan or the ESOP an amount
equal to 100 percent of the first 1 percent and 50 percent of the next 4
percent of the participant's contribution, or up to 3 percent of each
employee's eligible compensation for the year, provided the Company's pre-tax
profits for the year exceed 6 percent of the Company's net worth at the
beginning of each year.
PARTICIPANT ACCOUNTS - Each participant's account is credited with: (a) the
participant's contributions and withdrawals; and (b) Company matching
contributions made to the Plan and Plan earnings, less expenses. Allocation
of earnings and expenses are based on participants' account balances.
VESTING - Participants are fully vested in their accounts at all times.
INVESTMENT OPTIONS - Participating employees may invest their contributions in
any or all of six different funds:
Fund # 1 - Franklin Electric Common Stock Fund - Contributions are invested
principally in common stock of the Company with dividends reinvested in the
Company common stock.
Fund # 2 - Aggressive Equity Fund - Contributions are invested principally in
common stocks by a registered investment manager. Dividends and interest are
reinvested.
Fund # 3 - Stable Return Fund - Contributions are invested in either
individual Insurance Company Contracts purchased specifically for the Plan or
a Collective Investment Fund comprised of guaranteed investment contracts,
bank investment contracts and security backed contracts.
<PAGE> 7
Fund # 4 - Short Term U.S. Government Fund - Contributions are invested
principally in U.S. Government securities with maturities of one year or less.
Interest is reinvested.
Fund # 5 - Diversified Equity Fund - Contributions are invested in a variety
of equity securities of large publicly traded companies.
Fund # 6 - Intermediate Bond Fund - Contributions are invested in medium and
high-grade fixed income securities.
DIVERSIFICATION ELECTION for ESOP - Participants who have attained the age of
55 and have at least 10 years of participation in the ESOP are given the
opportunity to diversify up to 25% of their ESOP account balance into the Plan
during the first 90 days after the close of the Plan year.
PARTICIPANT LOANS - Participant loans may not exceed the lesser of $50,000 or
50 percent of the Participant's account. Loan transactions are treated as a
transfer between the investment fund and the loan fund. Loan terms range from
1 to 4 1/2 years for general purpose loans or up to 10 years for the purchase
of a primary residence and are repaid through payroll deductions. Interest is
charged at the prime rate plus one percent and is credited to the
participant's account. All loan fees are paid by the participant, being
deducted directly from the assets of his account.
BENEFITS - Participants may elect to receive a lump-sum distribution equal to
the value of their account or receive equal monthly or annual installments
over a specified period as defined by the Plan.
ADMINISTRATIVE EXPENSES - Administrative expenses are paid by the Plan.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------------------------------------------------
BASIS OF ACCOUNTING - The financial statements of the Plan are prepared under
the accrual method of accounting.
USE OF ESTIMATES - The preparation of financial statements in conformity with
generally accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities and
disclosures of contingent assets and liabilities at the date of the financial
statements, and the reported amounts of revenues and expenses during the
reporting period. Actual results could differ from these estimates.
INVESTMENT VALUATION - Investment in Franklin Electric Co., Inc. Common Stock
is valued at the last quoted sale or bid price as reported on a recognized
security exchange.
Investments in the Insurance Company Contracts, which are fully benefit
responsive, are valued at current participation unit value (Note 5).
Investments in the Collective Investment Fund are valued at the last reported
sale or bid price.
<PAGE> 8
Investment in other Common Stocks and U.S. Government and Government Agencies
are valued at the last reported sale or bid price for the securities traded on
recognized security exchanges or in the over-the-counter markets.
Purchases and sales of securities are recorded on a trade-date basis. Interest
income is recorded on the accrual basis. Dividends are recorded on the ex-
dividend date.
PARTICIPANT LOANS - Participant loans are valued at cost, which approximates
fair value.
3. INVESTMENTS
-----------------
The following investments exceeded 5 percent of net assets at December 31,
1999 and 1998:
1999 1998
---- ----
Franklin Electric Common Stock (355,527
and 399,290 shares, respectively) $24,953,700 $26,952,100
Invesco Diversified Equity Fund 10,535,100 7,543,900
4. TAX STATUS
----------------
The Internal Revenue Service has stated in a determination letter dated May 6,
1996, that the Plan, as then designed, met the requirements of Section 401(a)
of the Internal Revenue Code ("IRC"). The Plan's administrator and the Plan's
counsel believe that the Plan is currently designed and being operated in
compliance with applicable requirements of the IRC. Accordingly, they believe
that the Plan is qualified and the Plan's trust is exempt from federal income
tax under section 501(a). Therefore, no provision for income taxes has been
included in the Plan's financial statements.
5. INSURANCE COMPANY CONTRACTS
---------------------------------
Under the contracts, guaranteed interest rates are established on a calendar
year basis and may not be reduced lower than a specified amount. Guaranteed
interest rates for the years ended December 31, 1999 and 1998 ranged from
5.98% to 8.10% and 5.65% to 8.10%, respectively, and the average collective
yield for the years then ended was 6.51% and 6.59%, respectively.
6. PLAN TERMINATION
----------------------
The Company has not expressed any intent to terminate the Plan. If the Plan
was terminated, the termination would be subject to provisions set forth by
ERISA, participants would be 100 percent vested, and the net assets of the
Plan would be allocated among the participants and the beneficiaries of the
Plan in the order provided for in ERISA.
7. STOCK PURCHASE
--------------------
On April 19, 1999 and May 24, 1999, Franklin Electric Co., Inc. purchased from
the Plan 11,300 shares and 7,100 shares, respectively, of common stock for
$730,658 and $450,211, respectively, at the average closing price for Franklin
Electric Co., Inc. common stock for the prior 20 trading days preceding the
date of sale.
On March 22, 2000, Franklin Electric Co., Inc. purchased from the Plan 7,800
shares of common stock for $507,546 at the average closing price for Franklin
Electric Co., Inc. common stock for the prior 20 trading days preceding the
date of sale.
8. SUBSEQUENT EVENTS
-----------------------
Effective April 1, 2000, Norwest Bank Minnesota N.A. became the Plan Trustee.
<PAGE> 9
9. STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS BY FUND AS OF
------------------------------------------------------------------
DECEMBER 31, 1999 and 1998
--------------------------
<TABLE>
<CAPTION>
1999
-----------------------------------------------------------------------------------------------------------------------------------
Franklin Aggressive Stable Short-term Diversified Intermediate Loan
Electric Equity Return U.S. Gov't Equity Bond Account
Cmn Stock
Fund #1 Fund #2 Fund #3 Fund #4 Fund #5 Fund #6 Total
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
Short-term investments...............$ 181,800 $ 658,600 $ 23,400 $ 312,500 $ 59,400 $ 14,000 $ - $ 1,249,700
Franklin Electric Common Stock....... 24,953,700 - - - - - - 24,953,700
Other Common Stocks.................. - 22,135,900 - - - - - 22,135,900
U.S. Government & Government Agencies - - - 4,088,200 - - - 4,088,200
Shares of Registered Investment
Companies:
Invesco Diversified Equity Fund..... - - - - 10,535,100 - - 10,535,100
Bank One Intermediate Bond Fund..... - - - - - 699,400 - 699,400
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
25,135,500 22,794,500 23,400 4,400,700 10,594,500 713,400 - 63,662,000
Stable Return Fund:
Insurance Company Contracts.......... - - 10,699,300 - - - - 10,699,300
Collective Investment Fund........... - - 2,656,900 - - - - 2,656,900
Participant loans..................... - - - - - - 1,246,200 1,246,200
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
Total Investments..................... 25,135,500 22,794,500 13,379,600 4,400,700 10,594,500 713,400 1,246,200 78,264,400
Receivables:
Employer contribution................ 666,300 - - - - - - 666,300
Employee contribution................ 47,600 37,800 22,800 7,500 38,900 2,800 - 157,400
Accrued investment income............ 700 27,800 77,900 69,000 300 - - 175,700
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
Total Receivables..................... 714,600 65,600 100,700 76,500 39,200 2,800 - 999,400
Cash.................................. (7,600) 38,600 (6,300) (17,500) 11,800 (400) - 18,600
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
TOTAL ASSETS.......................... 25,842,500 22,898,700 13,474,000 4,459,700 10,645,500 715,800 1,246,200 79,282,400
Liabilities:
Fees payable.......................... - - 2,500 - 5,400 - - 7,900
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
TOTAL LIABILITIES..................... - - 2,500 - 5,400 - - 7,900
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
NET ASSETS AVAILABLE FOR BENEFITS.....$25,842,500 $22,898,700 $13,471,500 $ 4,459,700 $10,640,100 $ 715,800 $ 1,246,200 $79,274,500
=========== =========== =========== =========== =========== ========= =========== ===========
</TABLE>
<PAGE> 10
<TABLE>
<CAPTION>
1998
-----------------------------------------------------------------------------------------------------------------------------------
Franklin Aggressive Stable Short-term Diversified Intermediate Loan
Electric Equity Return U.S. Gov't Equity Bond Account
Cmn Stock
Fund #1 Fund #2 Fund #3 Fund #4 Fund #5 Fund #6 Total
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Assets:
Investments, at fair value:
Short-term investments...............$ - $ 1,444,000 $ 1,653,500 $ 111,400 $ 112,800 $ 66,100 $ - $ 3,387,800
Franklin Electric Common Stock....... 26,952,100 - - - - - - 26,952,100
Other Common Stocks.................. - 24,832,400 - - - - - 24,832,400
U.S. Government & Government Agencies - - - 3,082,000 - - - 3,082,000
Shares of Registered Investment
Companies:
Invesco Diversified Equity Fund..... - - - - 7,543,900 - - 7,543,900
Bank One Intermediate Bond Fund..... - - - - - 434,700 - 434,700
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
26,952,100 26,276,400 1,653,500 3,193,400 7,656,700 500,800 - 66,232,900
Stable Return Fund:
Insurance Company Contracts.......... - - 9,615,700 - - - - 9,615,700
Collective Investment Fund........... - - - - - - - -
Participant loans..................... - - - - - - 1,052,400 1,052,400
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
Total Investments..................... 26,952,100 26,276,400 11,269,200 3,193,400 7,656,700 500,800 1,052,400 76,901,000
Receivables:
Employer contribution................ 617,200 - - - - - - 617,200
Employee contribution................ 70,400 54,100 30,000 7,200 44,500 4,000 - 210,200
Accrued investment income............ 100 24,100 620,400 42,900 200 200 - 687,900
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
Total Receivables..................... 687,700 78,200 650,400 50,100 44,700 4,200 - 1,515,300
Cash.................................. (3,200) - - 43,400 (3,000) - - 37,200
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
TOTAL ASSETS.......................... 27,636,600 26,354,600 11,919,600 3,286,900 7,698,400 505,000 1,052,400 78,453,500
Liabilities:
Fees payable.......................... 2,900 21,600 600 (200) 300 100 - 25,300
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
TOTAL LIABILITIES..................... 2,900 21,600 600 (200) 300 100 - 25,300
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
NET ASSETS AVAILABLE FOR BENEFITS.....$27,633,700 $26,333,000 $11,919,000 $ 3,287,100 $ 7,698,100 $ 504,900 $ 1,052,400 $78,428,200
=========== =========== =========== =========== =========== ========= =========== ===========
</TABLE>
<PAGE> 11
10. STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS BY FUND FOR THE
--------------------------------------------------------------------------------
YEAR ENDED DECEMBER 31, 1999 and 1998
-------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------------
Franklin Aggressive Stable Short-term Diversified Intermediate Loan
Electric Equity Return U.S. Gov't Equity Bond Account
Cmn Stock
Fund #1 Fund #2 Fund #3 Fund #4 Fund #5 Fund #6 Total
-----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions:
Interest and dividends................$ 301,400 $ 181,900 $ 712,700 $ 220,300 $ 119,600 $ 38,100 $ 98,400 $ 1,672,400
Net appreciation(depreciation) in fair
value of investments:
Franklin Electric Common Stock...... 925,200 - - - - - - 925,200
Other Common Stocks................. - (275,100) - - - - - (275,100)
U.S. Government & Government Agencies - - - (38,800) - - - (38,800)
Invesco Diversified Equity Fund..... - - - - 1,829,300 - - 1,829,300
Bank One Intermediate Bond Fund..... - - - - - (31,100) - (31,100)
Collective Investment Fund.......... - - 177,800 - - - - 177,800
---------- ---------- ---------- ---------- ---------- -------- --------- ----------
1,226,600 (93,200) 890,500 181,500 1,948,900 7,000 98,400 4,259,700
Contributions:
Employer............................ 666,300 - - - - - - 666,300
Employee............................ 1,149,700 926,800 519,000 120,200 852,500 72,800 - 3,641,000
Rollover............................ 22,300 18,900 25,200 19,300 24,100 5,500 - 115,300
Transfer from ESOP Diversification.. - 5,800 19,500 13,200 32,400 14,700 - 85,600
---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
1,838,300 951,500 563,700 152,700 909,000 93,000 - 4,508,200
Total Additions....................... 3,064,900 858,300 1,454,200 334,200 2,857,900 100,000 98,400 8,767,900
Deductions:
Benefits paid to participants....... 2,724,400 2,333,900 1,538,500 312,300 483,000 149,300 85,800 7,627,200
Administrative expenses............. 59,500 160,000 19,800 10,200 28,200 800 - 278,500
Loan fees........................... 1,800 5,700 4,600 1,300 2,200 300 - 15,900
---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
Total Deductions...................... 2,785,700 2,499,600 1,562,900 323,800 513,400 150,400 85,800 7,921,600
Interfund transfers - net............. (2,070,400) (1,793,000) 1,661,200 1,162,200 597,500 261,300 181,200 -
---------- ---------- ---------- ---------- ---------- -------- ---------- ----------
Net increase/(decrease)............... (1,791,200) (3,434,300) 1,552,500 1,172,600 2,942,000 210,900 193,800 846,300
Net assets available for
benefits, beginning of year......... 27,633,700 26,333,000 11,919,000 3,287,100 7,698,100 504,900 1,052,400 78,428,200
---------- ---------- ---------- ---------- ---------- --------- ---------- ----------
Net assets available for
benefits, end of year...............$25,842,500 $22,898,700 $13,471,500 $ 4,459,700 $10,640,100 $ 715,800 $ 1,246,200 $79,274,500
=========== =========== =========== =========== =========== ========= =========== ===========
</TABLE>
<PAGE> 12
FRANKLIN ELECTRIC DIRECTED INVESTMENT SALARY PLAN
FORM 5500, SCHEDULE H, PART IV, ITEM 4(i), SCHEDULE OF ASSETS HELD FOR
INVESTMENT PURPOSES AT DECEMBER 31, 1999
----------------------------------------
Description of Investment
Identity of Issue, Including Maturity Date,
Borrower, Lessor Interest Rate, Collateral
or Similar Party and Par or Maturity Value Cost Fair Value
---------------- ------------------------- ---- ----------
* National City Bank Armada Money Market Fund $ 73,400 $ 73,400
of Indiana
* U.S. Government Treasury Money Market Fund 1,176,300 1,176,300
* Franklin Electric
Co., Inc. Common Stock 12,397,800 24,953,700
* National City Bank Other Common Stocks
of Indiana American Intl. Group Inc. 206,700 608,200
AON Corp. 165,100 780,000
Associates First Capital
Corp. 314,600 329,300
MBNA Corp. 229,800 1,103,600
Northern Tr Corp. 408,600 1,272,000
State Street Corp. 491,000 1,461,300
Avery Dennison Corp. 216,600 1,093,100
Illinois Tool Works Inc. 108,400 810,800
Molex Inc.-Cl A 340,000 1,131,200
Shared Medical Systems Corp. 728,900 764,100
Zebra Technologies Corp.-
Cl A 185,000 585,000
Autozone Inc. 607,500 646,300
Cintas Corp. 283,000 811,600
Kohls Corp. 53,900 433,100
Wallace Computer Services,
Inc. 464,000 266,000
Blyth Inds Inc. 169,200 184,200
CVS Corporation 405,800 797,500
U.S. Foodservice Inc. 337,500 502,500
Walgreen Company 66,900 936,000
Automatic Data Processing
Inc. 126,400 1,077,500
Boise Cascade Office Product 292,300 300,000
Concord Efs, Inc. 108,300 1,351,900
Office Depot 372,100 412,500
Univision Comm Inc. 106,300 510,900
ABM Inds Inc 340,700 203,700
Unifirst Corp. 130,500 189,400
Littelfuse Inc Com. 204,400 242,700
Ackerly Group Inc Com. 381,800 453,100
Comcast Corp. 516,100 505,600
Fiserv Inc. Com. 299,200 383,100
Freddie Mac Com. 315,000 282,400
Household Int'l. Corp. Com. 778,600 745,000
First Data Corp. Com. 424,700 962,300
<PAGE> 13
Description of Investment
Identity of Issue, Including Maturity Date,
Borrower, Lessor Interest Rate, Collateral
or Similar Party and Par or Maturity Value Cost Fair Value
---------------- ------------------------- ---- ----------
* National City Bank U.S. Treasury Notes
of Indiana 4.625% due 11/30/00 350,700 345,600
6.000% due 8/15/00 510,700 500,500
Fed Home Loan
4.790% due 2/4/00 499,700 499,400
5.000% due 2/24/00 499,500 499,100
5.040% due 3/29/00 500,000 498,600
5.710% due 8/9/00 699,500 697,600
5.900% due 9/22/00 400,000 398,600
6.050% due 11/3/00 351,100 349,000
Fed National Mtg Association
6.290% due 10/4/00 300,600 299,800
Invesco Risk Controlled Alpha 8,937,400 10,535,100
Diversified Equity
Bank One The One Group 724,100 699,400
Intermediate Bond
Insurance Company Contracts:
Lincoln National
Life Insurance Co. 8.10% due 12/31/96
through 1/31/01 3,960,100 3,960,100
Allstate Life
Insurance Co. 6.05% due 12/29/00 2,682,100 2,682,100
5.98% due 2/3/03 2,496,800 2,496,800
Security Life of
Denver Insurance Co. 6.50% due 12/31/01 1,560,300 1,560,300
* Norwest Bank
Indiana NA Collective Investment Fund 2,519,600 2,656,900
Participant loans
(Interest rates
ranging from 8.75 to
9.75 percent and
maturities ranging
from 2000 to 2010 1,246,200 1,246,200
---------- ----------
$52,064,800 $78,264,400
=========== ===========
* Represents a party-in-interest as defined by ERISA.
<PAGE> 14
FRANKLIN ELECTRIC DIRECTED INVESTMENT SALARY PLAN
FORM 5500, SCHEDULE H, PART IV, ITEM 4(j), SCHEDULE OF REPORTABLE TRANSACTIONS
For the Year Ended December 31, 1999
------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------------
Description of Assets Current Value
Identity of (Include Interest Rate of Asset on
Party and Maturity in Number of Purchase Selling Cost of Transaction Net Gain
Involved Case of Loan) Transactions Price Price Asset Date or (Loss)
--------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Series of Reportable Transactions
U.S. Government Federated U.S. 114 Purchases $ 6,834,800 $ 6,834,800 $ -
Treasury Fund 75 Sales $10,043,700 $10,043,700 10,043,700 -
Foresight Short term CD Fund 8 Purchases 56,900 56,900 -
3 Sales 235,800 235,800 235,800 -
U.S. Government Treasury Money Market 268 Purchases 10,774,300 10,774,300 -
Fund 148 Sales 9,598,000 9,598,000 9,598,000 9,598,000 -
Armada Money Market Fund 136 Purchases 2,492,600 2,492,600 -
66 Sales 2,419,200 2,419,200 2,419,200 -
</TABLE>
<PAGE> 15
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Employee Benefits Committee has duly cause this annual report to be signed on
its behalf by the undersigned hereunto duly authorized.
Franklin Electric Co., Inc.
Directed Investment Salary Plan
Date June 27, 2000 By /s/ GREGG C. SENGSTACK
---------------------------- ---------------------------
Gregg C. Sengstack
Member
Employee Benefits Committee
