|6 Months Ended|
Jun. 28, 2014
Note 12 – Investments
Investments in Marketable Securities
The Company invests a portion of its cash reserves in marketable debt securities. These investments, which have an original maturity of up to two years, are reported in either Short-term or Long-term investments in marketable securities on the Condensed Consolidated Balance Sheets. Furthermore, the debt securities have readily determinable market values and are being accounted for as available-for-sale investments. These investments are recorded at fair value with unrealized gains and losses reflected in Accumulated other comprehensive loss, a component of Shareholders’ equity on the Company’s Condensed Consolidated Balance Sheets, on an after-tax basis.
The following is a summary of the Company’s available-for-sale securities as of June 28, 2014:
The following is a summary of the Company’s available-for-sale securities as of December 31, 2013:
The following is a summary of the Company’s available-for-sale securities as of June 29, 2013:
The net carrying value and estimated fair value of debt securities at June 28, 2014, by contractual maturity, are shown below:
The net carrying value and estimated fair value of debt securities at December 31, 2013, by contractual maturity, are shown below:
The net carrying value and estimated fair value of debt securities at June 29, 2013, by contractual maturity, are shown below:
The Company had $11.9 million in redemptions of available-for-sale securities during the six months ended June 28, 2014. The Company had $107.4 million in redemptions and $35.7 million in sales during the six months ended June 29, 2013. During the second quarter of 2013, proceeds from the redemptions and sales of available-for-sale securities were used to repurchase outstanding Senior notes due in 2016. Refer to Note 17 – Debt for more information. The net adjustment to Unrealized investment losses on available-for-sale securities included in Accumulated other comprehensive loss on the Condensed Consolidated Balance Sheets was $0.0 million for both the three months and six months ended June 28, 2014 and June 29, 2013, respectively.
At each reporting date, management reviews the debt securities to determine if any loss in the value of a security below its amortized cost should be considered “other-than-temporary.” For the evaluation, management determines whether it intends to sell or if it is more likely than not that it will be required to sell the securities. This determination considers current and forecasted liquidity requirements, regulatory and capital requirements and the strategy for managing the Company’s securities portfolio. For all impaired debt securities for which there was no intent or expected requirement to sell, the evaluation considers all available evidence to assess whether it is likely the amortized cost value will be recovered. The Company also considers the nature of the securities, the credit rating or financial condition of the issuer, the extent and duration of the unrealized loss and market conditions. As of June 28, 2014, there were no unrealized losses related to debt securities that required management evaluation.
The Company has certain unconsolidated international and domestic affiliates that are accounted for using the equity method. Refer to Note 14 – Financial Services for more details on the Company’s Brunswick Acceptance Company, LLC joint venture. Refer to Note 8 to the consolidated financial statements in the 2013 Form 10-K for further detail relating to the Company's investments.
The entire disclosure for investments in certain debt and equity securities.
Reference 1: http://www.xbrl.org/2003/role/presentationRef