[X]
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES
EXCHANGE ACT OF 1934
|
For
the fiscal year ended December 31, 2006
|
or
|
[ ]
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE
SECURITIES
EXCHANGE ACT OF 1934
|
Commission
file number 1-1043
|
Delaware
|
36-0848180
|
(State
or other jurisdiction of incorporation
or
organization)
|
(I.R.S.
Employer Identification No.)
|
1
N. Field Court, Lake Forest, Illinois
|
60045-4811
|
(Address
of principal executive offices)
|
(Zip
Code)
|
(847)
735-4700
|
|
(Registrant’s
telephone number, including area
code)
|
Title
of each class
|
Name
of each exchange
on
which registered
|
Common
Stock ($0.75 par value)
|
New
York, Chicago and
|
Preferred
Stock Purchase Rights
|
London
Stock Exchanges
|
|
|
Page
|
PART
I
|
||
Item
1.
|
Business
|
1
|
Item
1A.
|
Risk
Factors
|
9
|
Item
1B.
|
Unresolved
Staff Comments
|
11
|
Item
2.
|
Properties
|
11
|
Item
3.
|
Legal
Proceedings
|
12
|
Item
4.
|
Submission
of Matters to a Vote of Security Holders
|
14
|
PART
II
|
||
Item
5.
|
Market
for Registrant’s Common Equity, Related Stockholder
Matters
and Issuer Purchases of Equity Securities
|
15
|
Item
6.
|
Selected
Financial Data
|
17
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition
and
Results of Operations
|
19
|
Item
7A.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
40
|
Item
8.
|
Financial
Statements and Supplementary Data
|
41
|
Item
9.
|
Changes
in and Disagreements with Accountants on Accounting
and
Financial Disclosure
|
41
|
Item
9A.
|
Controls
and Procedures
|
41
|
PART
III
|
||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
42
|
Item
11.
|
Executive
Compensation
|
42
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and
Management
and Related Stockholder Matters
|
42
|
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
42
|
Item
14.
|
Principal
Accounting Fees and Services
|
42
|
PART
IV
|
||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
42
|
2006
|
2005
|
2004
|
||||||||
(in
millions)
|
||||||||||
Europe
|
$
|
925.1
|
$
|
926.4
|
$
|
849.4
|
||||
Pacific
Rim
|
303.2
|
315.6
|
277.9
|
|||||||
Canada
|
328.6
|
311.7
|
273.3
|
|||||||
Latin
America
|
158.3
|
133.7
|
101.2
|
|||||||
Africa
& Middle East
|
87.2
|
72.9
|
53.8
|
|||||||
$
|
1,802.4
|
$
|
1,760.3
|
$
|
1,555.6
|
– |
A
marine engine product customization plant and distribution center
in
Belgium serving Europe, Africa and the Middle
East;
|
– |
A
propeller and underwater sterngear manufacturing plant in the
United
Kingdom;
|
– |
Sales
offices and distribution centers in Australia, Brazil, Canada,
China,
Japan, Malaysia, Mexico, New Zealand, Singapore and the United
Arab
Emirates;
|
– | Sales offices in Belgium, Denmark, Finland, France, Germany, Italy, the Netherlands, Norway, Sweden, Switzerland and the United Kingdom; |
– |
Boat
manufacturing plants in Australia, China, Portugal and
Sweden;
|
– |
An
outboard engine assembly plant in Suzhou, China;
and
|
– |
A
marina and boat club in Suzhou, China, on Lake
Tai.
|
2006
|
2005
|
2004
|
||||||||
(in
millions)
|
||||||||||
Boat
|
$
|
38.0
|
$
|
36.1
|
$
|
28.3
|
||||
Marine
Engine
|
70.3
|
67.3
|
66.6
|
|||||||
Fitness
|
18.4
|
14.2
|
16.0
|
|||||||
Bowling
& Billiards
|
5.5
|
5.9
|
5.9
|
|||||||
Total
|
$
|
132.2
|
$
|
123.5
|
$
|
116.8
|
Boat
|
13,850
|
|||
Marine
Engine
|
6,400
|
|||
Fitness
|
2,050
|
|||
Bowling
& Billiards
|
5,400
|
|||
Corporate
|
300
|
|||
Total
|
28,000
|
Officer
|
Present
Position
|
Age
|
||
Dustan
E. McCoy
|
Chairman
and Chief Executive Officer
|
57
|
||
Peter
B. Hamilton (A)
|
Vice
Chairman and President - Brunswick Boat Group
|
60
|
||
Patrick
C. Mackey
|
Executive
Vice President, Chief Operating Officer - Marine
and
President - Mercury Marine Group
|
60
|
||
Peter
G. Leemputte
|
Senior
Vice President and Chief Financial Officer
|
49
|
||
Tzau
J. Chung
|
Vice
President and President - Brunswick New Technologies
|
43
|
||
Warren
N. Hardie
|
Vice
President and President - Brunswick Bowling &
Billiards
|
56
|
||
B.
Russell Lockridge
|
Vice
President and Chief Human Resources Officer
|
57
|
||
Alan
L. Lowe
|
Vice
President and Controller
|
55
|
||
Marschall
I. Smith
|
Vice
President, General Counsel and Secretary
|
62
|
||
John
E. Stransky
|
Vice
President and President - Life Fitness Division
|
55
|
Issuer
Purchases of Equity Securities
|
|||||||||||||
Period
|
Total
Number
of
Shares
(or
Units)
Purchased
|
Average
Price
Paid
per
Share
(or
Unit)
|
Total
Number of
Shares
(or Units)
Purchased
as Part of
Publicly
Announced
Plans
or Programs
|
Maximum
Number (or
Approximate
Dollar
Value)
of Shares (or
Units)
that May Yet Be
Purchased
Under the
Plans
or Programs
(in
thousands)
|
|||||||||
10/01/06
- 10/28/06
|
—
|
|
$
—
|
—
|
|
$
398,674
|
|||||||
10/29/06
- 11/25/06
|
150,000
|
|
$
32.52
|
150,000
|
|
$
393,796
|
|||||||
11/26/06
- 12/31/06
|
850,000
|
|
$
32.43
|
850,000
|
|
$
366,232
|
|||||||
Total
Share Repurchases
|
1,000,000
|
|
$
32.44
|
1,000,000
|
|
$
366,232
|
2001
|
2002
|
2003
|
2004
|
2005
|
2006
|
||||||
Brunswick
|
100.00
|
93.46
|
152.69
|
240.96
|
200.56
|
159.95
|
|||||
S&P
500 Index
|
100.00
|
76.63
|
96.85
|
105.56
|
108.73
|
123.54
|
|||||
S&P
500 GICS Consumer Discretionary
Index
|
100.00
|
75.56
|
102.82
|
115.31
|
106.83
|
125.24
|
(in
millions, except per share data)
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
|
|||||||||||||
Results
of operations data
|
|||||||||||||||||||
Net
sales
|
$
|
5,665.0
|
$
|
5,606.9
|
$
|
5,058.1
|
$
|
4,063.6
|
$
|
3,711.9
|
$
|
3,370.8
|
|||||||
Operating
earnings
|
$
|
341.2
|
$
|
468.7
|
$
|
394.8
|
$
|
223.5
|
$
|
197.4
|
$
|
191.1
|
|||||||
Earnings
before interest and taxes
|
$
|
354.2
|
$
|
524.1
|
$
|
408.4
|
$
|
233.6
|
$
|
200.7
|
$
|
179.5
|
|||||||
Earnings
before income taxes
|
$
|
309.7
|
$
|
485.9
|
$
|
373.3
|
$
|
204.0
|
$
|
162.4
|
$
|
132.2
|
|||||||
Earnings
from continuing operations
|
$
|
263.2
|
$
|
371.1
|
$
|
263.8
|
$
|
137.0
|
$
|
104.1
|
$
|
84.7
|
|||||||
Discontinued
operations:
|
|||||||||||||||||||
Earnings
(loss) from discontinued
operations,
net of tax (A)
|
(129.3
|
)
|
14.3
|
6.0
|
(1.8
|
)
|
(0.6
|
)
|
—
|
||||||||||
Cumulative
effect of changes in accounting
principle,
net of tax (B)
|
—
|
—
|
—
|
—
|
(25.1
|
)
|
(2.9
|
)
|
|||||||||||
Net
earnings
|
$
|
133.9
|
$
|
385.4
|
$
|
269.8
|
$
|
135.2
|
$
|
78.4
|
$
|
81.8
|
|||||||
Basic
earnings (loss) per common share:
|
|||||||||||||||||||
Earnings
from continuing operations before
accounting
change
|
$
|
2.80
|
$
|
3.80
|
$
|
2.76
|
$
|
1.50
|
$
|
1.16
|
$
|
0.96
|
|||||||
Discontinued
operations:
|
|||||||||||||||||||
Earnings
(loss) from discontinued
operations,
net of tax
|
(1.38
|
)
|
0.15
|
0.06
|
(0.02
|
)
|
(0.01
|
)
|
—
|
||||||||||
Cumulative
effect of changes in accounting
principle,
net of tax (B)
|
—
|
—
|
—
|
—
|
(0.28
|
)
|
(0.03
|
)
|
|||||||||||
Net
earnings
|
$
|
1.42
|
$
|
3.95
|
$
|
2.82
|
$
|
1.48
|
$
|
0.87
|
$
|
0.93
|
|||||||
Average
shares used for computation of
basic
earnings per share
|
94.0
|
97.6
|
95.6
|
91.2
|
90.0
|
87.8
|
|||||||||||||
Diluted
earnings (loss) per common share:
|
|||||||||||||||||||
Earnings
from continuing operations before
accounting
change
|
$
|
2.78
|
$
|
3.76
|
$
|
2.71
|
$
|
1.49
|
$
|
1.15
|
$
|
0.96
|
|||||||
Discontinued
operations:
|
|||||||||||||||||||
Earnings
(loss) from discontinued
operations,
net of tax
|
(1.37
|
)
|
0.14
|
0.06
|
(0.02
|
)
|
(0.01
|
)
|
—
|
||||||||||
Cumulative
effect of changes in accounting
principle,
net of tax (B)
|
—
|
—
|
—
|
—
|
(0.28
|
)
|
(0.03
|
)
|
|||||||||||
Net
earnings
|
$
|
1.41
|
$
|
3.90
|
$
|
2.77
|
$
|
1.47
|
$
|
0.86
|
$
|
0.93
|
|||||||
Average
shares used for computation of
diluted
earnings per share
|
94.7
|
98.8
|
97.3
|
91.9
|
90.7
|
88.1
|
(in
millions, except per share and other data)
|
2006
|
2005
|
2004
|
2003
|
2002
|
2001
|
|||||||||||||
Balance
sheet data
|
|||||||||||||||||||
Assets
of continuing operations
|
$
|
4,312.0
|
$
|
4,414.8
|
$
|
4,198.9
|
$
|
3,523.4
|
$
|
3,306.4
|
$
|
3,157.5
|
|||||||
Debt
Short-term
|
$
|
0.7
|
$
|
1.1
|
$
|
10.7
|
$
|
23.8
|
$
|
28.9
|
$
|
40.0
|
|||||||
Long-term
|
725.7
|
723.7
|
728.4
|
583.8
|
589.5
|
600.2
|
|||||||||||||
Total
debt
|
726.4
|
724.8
|
739.1
|
607.6
|
618.4
|
640.2
|
|||||||||||||
Common
shareholders’ equity (C)
|
1,871.8
|
1,978.8
|
1,712.3
|
1,323.0
|
1,101.8
|
1,110.9
|
|||||||||||||
Total
capitalization (C)
|
$
|
2,598.2
|
$
|
2,703.6
|
$
|
2,451.4
|
$
|
1,930.6
|
$
|
1,720.2
|
$
|
1,751.1
|
|||||||
Cash
flow data
Net
cash provided by operating activities of
continuing
operations
|
$
|
351.0
|
$
|
421.6
|
$
|
424.4
|
$
|
405.7
|
$
|
413.4
|
$
|
299.3
|
|||||||
Depreciation
and amortization
|
167.3
|
156.3
|
153.6
|
149.4
|
148.4
|
160.4
|
|||||||||||||
Capital
expenditures
|
205.1
|
223.8
|
163.8
|
157.7
|
112.6
|
111.4
|
|||||||||||||
Acquisitions
of businesses
|
86.2
|
130.3
|
248.2
|
140.0
|
16.4
|
134.4
|
|||||||||||||
Investments
|
(6.1
|
)
|
18.1
|
16.2
|
39.3
|
8.9
|
—
|
||||||||||||
Stock
repurchases
|
195.6
|
76.0
|
—
|
—
|
—
|
—
|
|||||||||||||
Cash
dividends paid
|
55.0
|
57.3
|
58.1
|
45.9
|
45.1
|
43.8
|
|||||||||||||
Other
data
Dividends
declared per share
|
$
|
0.60
|
$
|
0.60
|
$
|
0.60
|
$
|
0.50
|
$
|
0.50
|
$
|
0.50
|
|||||||
Book
value per share (C)
|
19.76
|
20.03
|
17.60
|
14.40
|
12.15
|
12.61
|
|||||||||||||
Return
on beginning shareholders’ equity
|
6.8
|
%
|
22.5
|
%
|
20.4
|
%
|
12.3
|
%
|
7.0
|
%
|
7.7
|
%
|
|||||||
Effective
tax rate (D)
|
21.6
|
%
|
22.3
|
%
|
28.7
|
%
|
32.8
|
%
|
36.0
|
%
|
36.0
|
%
|
|||||||
Debt-to-capitalization
rate (C)
|
28.0
|
%
|
26.8
|
%
|
30.2
|
%
|
31.5
|
%
|
35.9
|
%
|
36.6
|
%
|
|||||||
Number
of employees
|
28,000
|
26,500
|
24,745
|
22,525
|
20,815
|
20,700
|
|||||||||||||
Number
of shareholders of record
|
13,695
|
14,143
|
14,952
|
15,373
|
16,605
|
13,200
|
|||||||||||||
Common
stock price (NYSE)
High
|
$
|
42.30
|
$
|
49.50
|
$
|
49.85
|
$
|
32.08
|
$
|
30.01
|
$
|
25.01
|
|||||||
Low
|
27.56
|
35.09
|
31.25
|
16.35
|
18.30
|
14.03
|
|||||||||||||
Close
(last trading day)
|
31.90
|
40.66
|
49.50
|
31.83
|
19.86
|
21.76
|
•
|
Introducing
high-quality and reliable products with innovative and new technologies
in
all of Brunswick’s market segments;
|
•
|
Distributing
products through a model that benefits the Company’s dealers and
distributors by providing additional products and services that will
make
them more successful, improve the customer experience and, in turn,
make
Brunswick more successful;
|
•
|
Focusing
on cost reduction initiatives through global sourcing and realignment
of
Brunswick’s manufacturing operations and organizational
structure;
|
•
|
Continuing
to expand and enhance Brunswick’s global manufacturing footprint to
achieve best-cost positions; and
|
•
|
Acquiring
and investing in businesses that will expand and enhance Brunswick’s
product offerings, particularly in boats and parts &
accessories.
|
– |
The
continued rollout of Mercury Marine’s Verado, a family of supercharged
four-stroke outboard engines, into smaller naturally aspirated
four-cylinder models ranging from 135 to 175 horsepower, complementing
the
larger six-cylinder supercharged models, ranging from 200 to 300
horsepower;
|
– |
The
debut of single-cylinder 2.5 and 3.5 horsepower four-stroke outboard
engines, allowing Mercury Marine to offer a full line of four-stroke
engines from 2.5 horsepower through the 300 horsepower
Verado;
|
– |
Introduction
of two new direct-injected OptiMax two-stroke outboard engines with
250
and 300 horsepower;
|
– |
New
boat models across all boat divisions, many of which utilize Brunswick’s
High Performance Product Development (HPPD) process to integrate
the
design, engineering and manufacturing processes from start to
finish;
|
– |
New
cardiovascular and strength training fitness product offerings, including
the T5 and T7 treadmill series and the Summit Trainer, designed to
simplify and enhance the workout experience;
|
– |
Opening
of a state-of-the-art research and development lab in Life Fitness’
Franklin Park, Illinois, facility, which is being used to drive innovation
and future product improvements;
|
– |
Launch
of Vivo, Life Fitness’ new wireless connectivity technology that
integrates health clubs, fitness equipment, and exercisers to provide
a
more personalized workout experience by allowing users to record
workout
data and track progress toward their goals, and allowing health clubs
to
obtain enhanced data on usage and programs to better market them
to their
customers; and
|
– |
Continued
expansion of the larger Brunswick Zone XL family bowling entertainment
centers.
|
– |
Consolidation
of certain boat manufacturing facilities, sales offices and distribution
centers to streamline operations, including the transfer of Lund
Canada
production from Steinbach, Manitoba, Canada, to Lund’s New York Mills,
Minnesota, facility, and the transfer of a portion of US Marine’s Bayliner
production from one of its two Cumberland, Maryland, plants to its
operations in Pipestone, Minnesota;
|
– |
Streamlined
organizational structure across the Boat Group to advance the integration
of Brunswick’s marine operations and enhance the ability to achieve new
efficiencies and networking
competencies;
|
– |
Commenced
bowling ball manufacturing operations in Reynosa, Mexico, to which
the
transition from Muskegon, Michigan, will be completed in 2007;
and
|
– |
Announcement
of the relocation of Brunswick’s Valley-Dynamo manufacturing operations
from Richland Hills, Texas, to Reynosa, Mexico, where production
is
expected to commence in early- to mid-2007.
|
– |
Purchase
of Cabo Yachts, which complements the sportfishing convertibles offered
by
Brunswick’s Albemarle and Hatteras brands, the three of which now comprise
the Hatteras Collection;
|
– |
Acquisition
of Diversified Marine, which adds significant capacity to Brunswick’s
parts and accessories business and provides an essential distribution
hub
in the western United States; and
|
– |
Acquisition
of Blue Water Dealer Services, allowing Brunswick to offer a more
complete
line of financial services to its boat and marine engine dealers
and their
customers.
|
– |
Increased
investments in operations in Europe, the Pacific Rim and Latin America
supporting international sales, which now represent approximately
32
percent of net sales from continuing operations;
and
|
– |
Purchase
of an additional 13.3 percent of the outstanding stock of Protokon,
a
Hungarian fitness equipment manufacturer, which allows Brunswick
to better
service fitness customers in
Europe.
|
– |
Continued
purchases under a $500 million share repurchase program, buying back
approximately 5.6 million shares of Brunswick common stock for
approximately $196 million during 2006;
and
|
– |
Maintaining
an annual dividend payment of $0.60 per share.
|
Date
|
Description
|
Segment
|
||
2/28/05
|
Albemarle
Boats, Inc. (Albemarle)
|
Boat
|
||
5/27/05
|
Triton
Boat Company, L.P. (Triton)
|
Boat
|
||
6/20/05
|
Supra-Industria
Textil, Lda. (Valiant) - 51 percent
|
Marine
Engine
|
||
7/07/05
|
Kellogg
Marine, Inc. (Kellogg)
|
Boat
|
||
9/16/05
|
Harris
Kayot Marine, LLC (Harris Kayot)
|
Boat
|
||
2/16/06
|
Cabo
Yachts, Inc. (Cabo)
|
Boat
|
||
4/26/06
|
Diversified
Marine Products, L.P. (Diversified)
|
Boat
|
Date
|
Description
|
Segment
|
||
4/01/04
|
Lowe,
Lund, Crestliner
|
Boat
|
||
12/31/04
|
Sea
Pro, Sea Boss and Palmetto boats (Sea Pro)
|
Boat
|
||
2/28/05
|
Albemarle
Boats, Inc.
|
Boat
|
||
5/27/05
|
Triton
Boat Company, L.P.
|
Boat
|
||
6/20/05
|
Supra-Industria
Textil, Lda. - 51 percent
|
Marine
Engine
|
||
7/07/05
|
Kellogg
Marine, Inc.
|
Boat
|
||
9/16/05
|
Harris
Kayot Marine, LLC
|
Boat
|
|
2006
|
2005
|
2004
|
|||||||
Net
earnings from continuing operations per
diluted
share — as reported
|
$
|
2.78
|
$
|
3.76
|
$
|
2.71
|
||||
Tax
items
|
(0.50
|
)
|
(0.31
|
)
|
(0.10
|
)
|
||||
Investment
sale gain
|
—
|
(0.32
|
)
|
—
|
||||||
Net
earnings from continuing operations per
diluted
share — as adjusted
|
$
|
2.28
|
$
|
3.13
|
$
|
2.61
|
•
|
Tax
Items:
During 2006, the Company reduced its tax provision primarily due
to $47.0
million of tax benefits ($0.50 per diluted share), consisting of
$42.6
million of tax reserve reassessments of underlying exposures and
the
recognition of a $4.4 million interest receivable related to the
completion of IRS audits of prior taxable years. Refer to Note
10 - Commitments and Contingencies
in
the Notes to Consolidated Financial Statements for further detail.
|
In
2004, the Internal Revenue Service completed its routine audit of
tax
years 1998 through 2001. Following the completion of the examination
of
this four-year period, the Company reduced its tax reserves and,
consequently, its tax provision by $10.0 million ($0.10 per diluted
share).
|
•
|
Investment
Sale Gain:
On
February 23, 2005, the Company sold its investment of 1,861,200 shares
in
MarineMax, Inc. (MarineMax), its largest boat dealer, for $56.8 million,
net of $4.1 million of selling costs, which included $1.1 million
of
accrued expenses. The sale was made pursuant to a registered public
offering by MarineMax. As a result of this sale, the Company recorded
an
after-tax gain of $31.5 million ($0.32 per diluted share) after utilizing
previously unrecognized capital loss carryforwards.
|
2006
vs. 2005
Increase/(Decrease)
|
2005
vs. 2004
Increase/(Decrease)
|
|||||||||||||||||||||
2006
|
2005
|
2004
|
$
|
%
|
$
|
%
|
||||||||||||||||
(in
millions, except per share data)
|
||||||||||||||||||||||
Net
sales
|
$
|
5,665.0
|
$
|
5,606.9
|
$
|
5,058.1
|
$
|
58.1
|
1.0
|
%
|
$
|
548.8
|
10.9
|
%
|
||||||||
Gross
margin (A)
(C)
|
$
|
1,225.7
|
$
|
1,321.6
|
$
|
1,248.5
|
$
|
(95.9
|
)
|
(7.3
|
)%
|
$
|
73.1
|
5.9
|
%
|
|||||||
Operating
earnings (C)
|
$
|
341.2
|
$
|
468.7
|
$
|
394.8
|
$
|
(127.5
|
)
|
(27.2
|
)%
|
$
|
73.9
|
18.7
|
%
|
|||||||
Net
earnings
|
$
|
263.2
|
$
|
371.1
|
$
|
263.8
|
$
|
(107.9
|
)
|
(29.1
|
)%
|
$
|
107.3
|
40.7
|
%
|
|||||||
Diluted
earnings per share
|
$
|
2.78
|
$
|
3.76
|
$
|
2.71
|
$
|
(0.98
|
)
|
(26.1
|
)%
|
$
|
1.05
|
38.7
|
%
|
|||||||
Expressed
as a percentage of Net sales (B)
|
||||||||||||||||||||||
Gross
margin (C)
|
21.6
|
%
|
23.6
|
%
|
24.7
|
%
|
(200
|
)bpts |
(110
|
)bpts | ||||||||||||
Selling,
general and administrative expense
(C)
|
13.3
|
%
|
13.0
|
%
|
14.6
|
%
|
30
|
bpts |
(160
|
)bpts | ||||||||||||
Research
& development expense
|
2.3
|
%
|
2.2
|
%
|
2.3
|
%
|
10
|
bpts |
(10
|
)bpts | ||||||||||||
Operating
margin (C)
|
6.0
|
%
|
8.4
|
%
|
7.8
|
%
|
(240
|
)bpts |
60
|
bpts |
2006
vs. 2005
Increase(Decrease)
|
2005
vs. 2004
Increase/(Decrease)
|
|||||||||||||||||||||
2006
|
2005
|
2004
|
$
|
%
|
$
|
%
|
||||||||||||||||
(in
millions)
|
||||||||||||||||||||||
Net
sales
|
$
|
2,864.4
|
$
|
2,783.4
|
$
|
2,285.0
|
$
|
81.0
|
2.9
|
%
|
$
|
498.4
|
21.8
|
%
|
||||||||
Operating
earnings (A)
|
$
|
135.6
|
$
|
192.5
|
$
|
150.4
|
$
|
(56.9
|
)
|
(29.6
|
)%
|
$
|
42.1
|
28.0
|
%
|
|||||||
Operating
margin (A)
|
4.7
|
%
|
6.9
|
%
|
6.6
|
%
|
(220
|
)bpts |
30
|
bpts | ||||||||||||
Capital
expenditures
|
$
|
75.8
|
$
|
74.7
|
$
|
56.5
|
$
|
1.1
|
1.5
|
%
|
$
|
18.2
|
32.2
|
%
|
2006
vs. 2005 Increase/(Decrease) |
2005
vs. 2004
Increase/(Decrease)
|
|||||||||||||||||||||
2006
|
2005
|
2004
|
$
|
%
|
$
|
%
|
||||||||||||||||
(in
millions)
|
||||||||||||||||||||||
Net
sales
|
$
|
2,271.3
|
$
|
2,300.6
|
$
|
2,165.8
|
$
|
(29.3
|
)
|
(1.3
|
)%
|
$
|
134.8
|
6.2
|
%
|
|||||||
Operating
earnings (A)
|
$
|
193.8
|
$
|
250.5
|
$
|
237.2
|
$
|
(56.7
|
)
|
(22.6
|
)%
|
$
|
13.3
|
5.6
|
%
|
|||||||
Operating
margin (A)
|
8.5
|
%
|
10.9
|
%
|
11.0
|
%
|
(240
|
)bpts |
(10)
|
bpts | ||||||||||||
Capital
expenditures
|
$
|
72.5
|
$
|
91.5
|
$
|
68.7
|
$
|
(19.0
|
)
|
(20.8
|
)%
|
$
|
22.8
|
33.2
|
%
|
2006
vs. 2005
Increase/(Decrease)
|
2005
vs. 2004
Increase/(Decrease)
|
|||||||||||||||||||||
2006
|
2005
|
2004
|
$
|
%
|
$
|
%
|
||||||||||||||||
(in
millions)
|
||||||||||||||||||||||
Net
sales
|
$
|
593.1
|
$
|
551.4
|
$
|
558.8
|
$
|
41.7
|
7.6
|
%
|
$
|
(7.4
|
)
|
(1.3
|
)%
|
|||||||
Operating
earnings
|
$
|
57.8
|
$
|
56.1
|
$
|
44.2
|
$
|
1.7
|
3.0
|
%
|
$
|
11.9
|
26.9
|
%
|
||||||||
Operating
margin
|
9.7
|
%
|
10.2
|
%
|
7.9
|
%
|
(50
|
)bpts |
230
|
bpts | ||||||||||||
Capital
expenditures
|
$
|
11.0
|
$
|
11.2
|
$
|
8.3
|
$
|
(0.2
|
)
|
(1.8
|
)%
|
$
|
2.9
|
34.9
|
%
|
2006
vs. 2005
Increase/(Decrease)
|
2005
vs. 2004
Increase/(Decrease)
|
|||||||||||||||||||||
2006
|
2005
|
2004
|
$
|
%
|
$
|
%
|
||||||||||||||||
(in
millions)
|
||||||||||||||||||||||
Net
sales
|
$
|
458.3
|
$
|
464.5
|
$
|
442.4
|
$
|
(6.2
|
)
|
(1.3
|
)%
|
$
|
22.1
|
5.0
|
%
|
|||||||
Operating
earnings (A)
|
$
|
22.1
|
$
|
37.2
|
$
|
41.7
|
$
|
(15.1
|
)
|
(40.6
|
)%
|
$
|
(4.5
|
)
|
(10.8
|
)%
|
||||||
Operating
margin (A)
|
4.8
|
%
|
8.0
|
%
|
9.4
|
%
|
(320
|
)bpts |
(140)
|
bpts | ||||||||||||
Capital
expenditures
|
$
|
43.7
|
$
|
36.8
|
$
|
27.7
|
$
|
6.9
|
18.8
|
%
|
$
|
9.1
|
32.9
|
%
|
2006
|
2005
|
2004
|
||||||||
(in
millions)
|
||||||||||
Net
cash provided by operating activities of continuing
operations
|
$
|
351.0
|
$
|
421.6
|
$
|
424.4
|
||||
Net
cash provided by (used for):
|
||||||||||
Capital
expenditures
|
(205.1
|
)
|
(223.8
|
)
|
(163.8
|
)
|
||||
Proceeds
from investment sale
|
—
|
57.9
|
—
|
|||||||
Proceeds
from the sale of property, plant and equipment
|
7.2
|
13.4
|
13.4
|
|||||||
Other,
net
|
(0.4
|
)
|
(1.2
|
)
|
2.0
|
|||||
Free
cash flow from continuing operations *
|
$
|
152.7
|
$
|
267.9
|
$
|
276.0
|
Payments
due by period
|
||||||||||||||||
(in
millions)
|
Total
|
Less
than
1
year
|
1-3
years
|
3-5
years
|
More
than
5
years
|
|||||||||||
Contractual
Obligations
|
||||||||||||||||
Short-term
debt (1)
|
$
|
—
|
$
|
—
|
$
|
—
|