Brunswick Corporation Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Stock Plans and Management Compensation (Tables)

Stock Plans and Management Compensation (Tables)

12 Months Ended

Dec. 31, 2011

Stock Plans and Management Compensation [Abstract]

SARs and stock option activity for all plans for the three years ended December 31, 2011, 2010 and 2009, was as follows:

	2011								2010					2009
(in thousands, except exercise price and terms)	SARs/Stock Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value		SARs/Stock Options Outstanding			Weighted Average Exercise Price		SARs/Stock Options Outstanding			Weighted Average Exercise Price

Outstanding on January 1		9,168		$	16.53					8,332		$	18.27		6,484		$	25.20
Granted		1,105		$	20.45					1,987		$	11.18		2,911		$	5.30
Exercised		(556	)	$	15.22		$	3,489		(261	)	$	13.36		(1	)	$	3.59
Forfeited		(370	)	$	26.66					(890	)	$	27.17		(1,062	)	$	25.68

Outstanding on December 31		9,347		$	16.66	6.5 years	$	51,535		9,168		$	16.53		8,332		$	18.27

Exercisable on December 31		5,103		$	20.32	5.4 years	$	23,840		3,809		$	25.73		3,271		$	29.49

Summary of Information about SARs and Stock Options Outstanding

The following table summarizes information about SARs and stock options outstanding as of December 31, 2011:

		Outstanding					Exercisable
Range of Exercise Price		Number (in thousands)		Weighted Average Remaining Years of Contractual Life	Weighted Average Exercise Price		Number (in thousands)		Weighted Average Remaining Years of Contractual Life	Weighted Average Exercise Price

$	3.37 to $5.99		2,746	7.1 years	$	5.06		1,453	7.1 years	$	4.84
$	6.00 to $19.90		3,749	7.1 years	$	13.83		1,695	6.4 years	$	15.33
$	19.91 to $39.56		2,453	5.4 years	$	29.19		1,556	3.3 years	$	33.60
$	39.57 to $46.25		399	2.5 years	$	46.02		399	2.5 years	$	46.02

Weighted Average Assumption Used to Estimate Fair Value

The Company estimated the fair value of each grant on the date of grant using the Black-Scholes-Merton pricing model, utilizing the following weighted average assumptions for 2011, 2010 and 2009:

	2011	2010	2009

Risk-free interest rate	2.5 %	2.8 %	2.3 %
Dividend yield	0.2 %	0.7 %	1.9 %
Volatility factor (A)	53.7 %	53.0 %	72.3 %
Weighted average expected life	5.2 – 6.7 years	5.8 – 6.6 years	5.7 – 6.3 years

(A) The Company uses a combination of implied and historical volatility in calculating the fair value of each grant.

Non-vested Stock Award Activity

Non-vested stock award activity for all plans for the three years ended December 31 was as follows:

(in thousands)	2011			2010			2009

Outstanding at January 1		332			909			1,207
Granted		237			275			20
Released		(16	)		(79	)		(168	)
Forfeited		(12	)		(773	)		(150	)

Outstanding at December 31		541			332			909

- Definition

Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms.

+ References + Details