EBP, Investment, Fair Value and NAV [Line Items]

INVESTMENTS

Financial Accounting Standards Board 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 amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants and requires that assets and liabilities carried at fair value are classified and disclosed in the following three categories:

Level 1 - Securities valued using quoted prices from active markets for identical assets;

Level 2 - Securities not traded on an active market but for which observable market inputs are readily available; and

Level 3 - Securities valued based on significant unobservable inputs that reflect the Plan's own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

The following tables set forth, by level within the fair value hierarchy, a summary of the Plan's investments measured at fair value on a recurring basis at December 31, 2025 and 2024 (rounded):


(In thousands)	December 31, 2025		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Franklin Electric Co., Inc. common stock	$	26,154	$	26,154	$	—	$	—
Investments in shares of registered investment companies	26,445		26,445		—		—
Total assets in the fair value hierarchy	52,599		52,599		—		—
Investments measured at net asset value (a)	219,640
Investments at fair value	$	272,239


(In thousands)	December 31, 2024		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)

Franklin Electric Co., Inc. common stock	$	32,072	$	32,072	$	—	$	—
Investments in shares of registered investment companies	31,864		31,864		—		—
Total assets in the fair value hierarchy	63,936		$	63,936	$	—	$	—
Investments measured at net asset value (a)	181,593
Investments at fair value	$	245,529

(a) In accordance with Subtopic 820-10, certain investments that were measured at net asset value per share (or its equivalent) as a practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the line items presented in the Statement of Net Assets Available for Benefits.

There were no transfers between Level 1 and Level 2 investments during 2025 or 2024.

EBP, Investment, Fair Value and NAV [Line Items]