Annual report pursuant to Section 13 and 15(d)

Segment Information

v2.4.0.6
Segment Information
 12 Months Ended
Dec. 31, 2011
Segment Information [Abstract]  
Segment Information
Note 4 – Segment Information

Brunswick is a manufacturer and marketer of leading consumer brands and operates in four reportable segments: Marine Engine, Boat, Fitness and Bowling & Billiards. The Company's segments are defined by management's reporting structure and operating activities.

The Marine Engine segment manufactures and markets a full range of sterndrive engines, inboard engines, outboard engines and marine parts and accessories, which are principally sold directly to boat builders, including Brunswick's Boat segment, or through marine retail dealers and distributors worldwide. The Marine Engine segment also manufactures and distributes boats in certain markets outside the United States. The Company's engine manufacturing plants are located primarily in the United States, China and Japan, with sales primarily to North American, European and Asian markets.

The Boat segment designs, manufactures and markets fiberglass pleasure boats, offshore fishing boats, aluminum fishing boats, pontoon and deck boats, which are sold primarily through dealers. The Boat segment's products are manufactured primarily in the United States. Sales to the segment's largest boat dealer, MarineMax, which has multiple locations, comprised approximately 20 percent of Boat segment sales in 2011 and 2010, and approximately 16 percent in 2009.

The Fitness segment designs, manufactures and markets fitness equipment, including treadmills, total body cross-trainers, stair climbers, stationary bikes and strength-training equipment. These products are manufactured primarily in the United States and Hungary or are sourced from international suppliers. Fitness equipment is sold mainly in the Americas, Europe and Asia to health club, military, government, corporate, hospitality and university facilities, and to consumers through selected mass merchants, specialty retail dealers and through the Company's Web site.

The Bowling & Billiards segment designs, manufactures and markets bowling capital equipment and associated parts and supplies, including automatic pinsetters and scorers, bowling balls and other accessories, and billiards tables and accessories. It also operates retail bowling centers. Products are manufactured or sourced from domestic and international locations. Bowling products are sold through a direct sales force or distributors in the United States and through distributors in non-U.S. markets. Consumer billiards equipment is predominantly sold in the United States and distributed primarily through dealers.

The Company evaluates performance based on business segment operating earnings. Operating earnings of segments do not include the expenses of corporate administration, earnings from unconsolidated equity affiliates, other expenses and income of a non-operating nature, interest expense and income, loss on early extinguishment of debt or provisions for income taxes.

Corporate/Other results include items such as corporate staff and administrative costs. Corporate/Other total assets consist of mainly cash, cash equivalents and investments in marketable securities, restricted cash, deferred and prepaid income tax balances and investments in unconsolidated affiliates.  Marine eliminations adjust for sales between the Marine Engine and Boat segments which are consummated at established arm's length transfer prices.

Information as to the operations of Brunswick's operating segments is set forth below:

Operating Segments

   
Net Sales
    
Operating Earnings (Loss)
    
Total Assets
  
(in millions)
  
2011
  
2010
  
2009
  
2011
  
2010
  
2009
  
2011
    
2010
  
                                                 
Marine Engine
   $ 1,979.5     $ 1,807.4     $ 1,425.0     $ 189.3     $ 147.3     $ (131.2 )   $ 681.3     $ 675.3  
Boat
     1,016.3       913.0       615.7       (40.7 )     (145.9 )     (398.5 )     357.7       394.6  
Marine eliminations
     (208.2 )     (182.2 )     (98.3 )     -       -       -       -       -  
Total Marine
     2,787.6       2,538.2       1,942.4       148.6       1.4       (529.7 )     1,039.0       1,069.9  
Fitness
     635.2       541.9       496.8       93.4       59.6       33.5       551.7       559.4  
Bowling & Billiards
     325.2       323.3       337.0       19.5       12.5       3.1       251.6       260.4  
Eliminations
     -       (0.1 )     (0.1 )     -       -       -       -       -  
Corporate/Other
     -       -       -       (69.1 )     (57.2 )     (77.4 )     651.7       788.3  
                                                                 
Total
   $ 3,748.0     $ 3,403.3     $ 2,776.1     $ 192.4     $ 16.3     $ (570.5 )   $ 2,494.0     $ 2,678.0  


   
Depreciation
    
Amortization
(in millions)
  
2011
    
2010
    
2009
    
2011
    
2010
    
2009
                                   
Marine Engine
   $ 42.6     $ 51.8     $ 63.8     $ 4.1     $ 3.7     $ 3.8
Boat
     28.4       35.8       46.3       3.1       5.4       6.3
Fitness
     5.9       8.1       9.5       0.1       0.1       0.2
Bowling & Billiards
     18.4       21.0       23.2       -       0.6       0.9
Corporate/Other
     1.9       2.8       3.3       -       -       -
                                               
Total
   $ 97.2     $ 119.5     $ 146.1     $ 7.3     $ 9.8     $ 11.2

   
Capital Expenditures
    
Research & Development Expense
(in millions)
  
2011
    
2010
    
2009
    
2011
    
2010
    
2009
                                   
Marine Engine
   $ 46.3     $ 30.8     $ 12.3     $ 59.1     $ 53.7     $ 50.1
Boat
     26.5       17.2       15.5       17.1       17.8       19.6
Fitness
     6.9       3.7       2.2       17.6       16.7       14.9
Bowling & Billiards
     9.9       4.9       3.3       4.1       3.8       3.9
Corporate/Other
     0.4       0.6       -       -       -       -
                                               
Total
   $ 90.0     $ 57.2     $ 33.3     $ 97.9     $ 92.0     $ 88.5

Geographic Segments

   
Net Sales
    
Long-Lived Assets
(in millions)
  
2011
    
2010
    
2009
    
2011
    
2010
                             
United States
   $ 2,253.2     $ 2,000.0     $ 1,607.4     $ 497.8     $ 523.2
International
     1,494.8       1,403.3       1,168.7       65.7       83.5
Corporate/Other
     -       -       -       22.0       23.5
                                       
Total
   $ 3,748.0     $ 3,403.3     $ 2,776.1     $ 585.5     $ 630.2