[X] QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d)
|
OF THE SECURITIES EXCHANGE ACT
OF 1934
|
For
the quarterly period ended September 27, 2008
|
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)
|
(IRS
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)
|
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. | |||||
Yes [X] | No [ ] | ||||
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one): | |||||
Large accelerated filer | [X] | Accelerated filer | [ ] | ||
Non-accelerated filer | [ ] | Smaller reporting company | [ ] | ||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). | |||||
Yes [ ] | No [X] | ||||
The number of shares of Common Stock ($0.75 par value) of the registrant outstanding as of October 24, 2008, was 87,680,888. |
Page
|
||
|
||
EXPLANATORY NOTE |
1
|
|
PART I – FINANCIAL INFORMATION | ||
Item
1.
|
Consolidated
Financial Statements, as restated
|
|
Consolidated
Statements of Operations for the three months and nine months ended
September 27, 2008 (unaudited), and September 29, 2007
(unaudited)
|
2
|
|
Condensed
Consolidated Balance Sheets as of September 27, 2008 (unaudited), December
31, 2007, and September 29, 2007 (unaudited)
|
3
|
|
Condensed
Consolidated Statements of Cash Flows for the nine months ended September
27, 2008 (unaudited), and Revised September 29, 2007
(unaudited)
|
5
|
|
Notes
to Consolidated Financial Statements (unaudited)
|
6
|
|
Item
2.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
29
|
Item
3.
|
Quantitative
and Qualitative Disclosures About Market Risk
|
48
|
Item
4.
|
Controls
and Procedures
|
48
|
PART
II – OTHER INFORMATION
|
||
Item
1.
|
Legal
Proceedings
|
50
|
Item
1A.
|
Risk
Factors
|
50
|
Item
2.
|
Unregistered
Sales of Equity Securities and Use of Proceeds
|
55
|
Item
6.
|
Exhibits
|
55
|
BRUNSWICK
CORPORATION
|
Consolidated
Statements of Operations
|
(unaudited)
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
Restated
|
Restated | |||||||||||||||
(in
millions, except per share data)
|
Sept.
27,
2008
|
Sept.
29,
2007
|
Sept.
27,
2008
|
Sept.
29,
2007
|
||||||||||||
Net
sales
|
$ | 1,038.8 | $ | 1,326.2 | $ | 3,871.0 | $ | 4,235.2 | ||||||||
Cost
of sales
|
862.3 | 1,063.5 | 3,121.5 | 3,339.0 | ||||||||||||
Selling,
general and administrative expense
|
177.4 | 206.9 | 586.1 | 623.2 | ||||||||||||
Research
and development expense
|
31.2 | 31.0 | 97.1 | 100.2 | ||||||||||||
Goodwill
impairment charges
|
374.0 | - | 377.2 | - | ||||||||||||
Trade
name impairment charges
|
121.1 | 66.4 | 133.9 | 66.4 | ||||||||||||
Restructuring,
exit and other impairment charges
|
39.1 | 4.7 | 128.4 | 13.4 | ||||||||||||
Operating
earnings (loss)
|
(566.3 | ) | (46.3 | ) | (573.2 | ) | 93.0 | |||||||||
Equity
earnings (loss)
|
(1.0 | ) | 3.0 | 10.1 | 16.4 | |||||||||||
Investment
sale gains
|
2.1 | - | 23.0 | - | ||||||||||||
Other
income (expense), net
|
(0.3 | ) | 7.5 | 1.6 | 7.3 | |||||||||||
Earnings
(loss) before interest and income taxes
|
(565.5 | ) | (35.8 | ) | (538.5 | ) | 116.7 | |||||||||
Interest
expense
|
(12.7 | ) | (12.8 | ) | (35.6 | ) | (39.7 | ) | ||||||||
Interest
income
|
2.5 | 1.9 | 5.4 | 5.6 | ||||||||||||
Earnings
(loss) before income taxes
|
(575.7 | ) | (46.7 | ) | (568.7 | ) | 82.6 | |||||||||
Income
tax (benefit) provision
|
153.4 | (23.0 | ) | 153.1 | 15.1 | |||||||||||
Net
earnings (loss) from continuing operations
|
(729.1 | ) | (23.7 | ) | (721.8 | ) | 67.5 | |||||||||
Discontinued
operations:
|
||||||||||||||||
Earnings
from discontinued operations, net of tax
|
- | 4.6 | - | 8.6 | ||||||||||||
Gain
on disposal of discontinued operations, net of tax
|
- | 21.0 | - | 28.7 | ||||||||||||
Net
earnings from discontinued operations
|
- | 25.6 | - | 37.3 | ||||||||||||
Net
earnings (loss)
|
$ | (729.1 | ) | $ | 1.9 | $ | (721.8 | ) | $ | 104.8 | ||||||
Earnings
per common share:
|
||||||||||||||||
Basic
|
||||||||||||||||
Net
earnings (loss) from continuing operations
|
$ | (8.26 | ) | $ | (0.27 | ) | $ | (8.18 | ) | $ | 0.75 | |||||
Earnings
from discontinued operations, net of tax
|
- | 0.05 | - | 0.09 | ||||||||||||
Gain
on disposal of discontinued operations, net of tax
|
- | 0.24 | - | 0.32 | ||||||||||||
Net
earnings (loss)
|
$ | (8.26 | ) | $ | 0.02 | $ | (8.18 | ) | $ | 1.16 | ||||||
Diluted
|
||||||||||||||||
Net
earnings (loss) from continuing operations
|
$ | (8.26 | ) | $ | (0.27 | ) | $ | (8.18 | ) | $ | 0.75 | |||||
Earnings
from discontinued operations, net of tax
|
- | 0.05 | - | 0.09 | ||||||||||||
Gain
on disposal of discontinued operations, net of tax
|
- | 0.24 | - | 0.32 | ||||||||||||
Net
earnings (loss)
|
$ | (8.26 | ) | $ | 0.02 | $ | (8.18 | ) | $ | 1.16 | ||||||
Weighted
average shares used for computation of:
|
||||||||||||||||
Basic
earnings per share
|
88.3 | 89.0 | 88.3 | 90.3 | ||||||||||||
Diluted
earnings per share
|
88.3 | 89.0 | 88.3 | 90.7 | ||||||||||||
The
Notes to Consolidated Financial Statements are an integral part of these
consolidated statements.
|
BRUNSWICK
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
Restated
|
||||||||||||
September
27,
|
December
31,
|
September
29,
|
||||||||||
(in
millions)
|
2008
|
2007
|
2007
|
|||||||||
(unaudited)
|
(unaudited)
|
|||||||||||
Assets
|
||||||||||||
Current
assets
|
||||||||||||
Cash
and cash equivalents, at cost, which approximates
market
|
$ | 342.9 | $ | 331.4 | $ | 327.8 | ||||||
Accounts
and notes receivable, less allowances
of $37.9, $31.2 and $36.8
|
518.3 | 572.4 | 510.9 | |||||||||
Inventories
|
||||||||||||
Finished
goods
|
475.9 | 446.7 | 510.7 | |||||||||
Work-in-process
|
291.1 | 323.4 | 348.0 | |||||||||
Raw
materials
|
131.1 | 136.6 | 148.4 | |||||||||
Net
inventories
|
898.1 | 906.7 | 1,007.1 | |||||||||
Deferred
income taxes
|
39.2 | 249.9 | 250.3 | |||||||||
Prepaid
expenses and other
|
75.2 | 53.9 | 75.6 | |||||||||
Current
assets
|
1,873.7 | 2,114.3 | 2,171.7 | |||||||||
Property
|
||||||||||||
Land
|
108.7 | 103.5 | 101.4 | |||||||||
Buildings
and improvements
|
698.1 | 697.4 | 678.9 | |||||||||
Equipment
|
1,193.5 | 1,205.7 | 1,212.9 | |||||||||
Total
land, buildings and improvements and equipment
|
2,000.3 | 2,006.6 | 1,993.2 | |||||||||
Accumulated
depreciation
|
(1,170.9 | ) | (1,117.8 | ) | (1,097.2 | ) | ||||||
Net
land, buildings and improvements and equipment
|
829.4 | 888.8 | 896.0 | |||||||||
Unamortized
product tooling costs
|
140.9 | 164.0 | 153.5 | |||||||||
Net
property
|
970.3 | 1,052.8 | 1,049.5 | |||||||||
Other
assets
|
||||||||||||
Goodwill
|
294.8 | 678.9 | 679.2 | |||||||||
Other
intangibles, net
|
89.9 | 245.6 | 249.7 | |||||||||
Investments
|
81.6 | 132.1 | 139.5 | |||||||||
Deferred
income taxes
|
14.8 | - | - | |||||||||
Other
long-term assets
|
140.8 | 141.9 | 181.9 | |||||||||
Other
assets
|
621.9 | 1,198.5 | 1,250.3 | |||||||||
Total
assets
|
$ | 3,465.9 | $ | 4,365.6 | $ | 4,471.5 | ||||||
The
Notes to Consolidated Financial Statements are an integral part of these
consolidated statements.
|
BRUNSWICK
CORPORATION
|
Condensed
Consolidated Balance Sheets
|
Restated
|
||||||||||||
September
27,
|
December
31,
|
September
29,
|
||||||||||
(in millions, except share
data)
|
2008
|
2007
|
2007
|
|||||||||
(unaudited)
|
(unaudited)
|
|||||||||||
Liabilities
and shareholders’ equity
|
||||||||||||
Current
liabilities
|
||||||||||||
Short-term
debt, including current maturities of
long-term debt
|
$ | 0.3 | $ | 0.8 | $ | 0.2 | ||||||
Accounts
payable
|
346.8 | 437.3 | 461.7 | |||||||||
Accrued
expenses
|
791.7 | 858.1 | 857.8 | |||||||||
Current
liabilities
|
1,138.8 | 1,296.2 | 1,319.7 | |||||||||
Long-term
liabilities
|
||||||||||||
Debt
|
726.4 | 727.4 | 726.1 | |||||||||
Deferred
income taxes
|
- | 12.3 | 19.6 | |||||||||
Postretirement
and postemployment benefits
|
194.0 | 192.8 | 225.6 | |||||||||
Other
|
228.1 | 244.0 | 277.1 | |||||||||
Long-term
liabilities
|
1,148.5 | 1,176.5 | 1,248.4 | |||||||||
Shareholders’
equity
|
||||||||||||
Common
stock; authorized: 200,000,000 shares, $0.75
par value; issued: 102,538,000 shares
|
76.9 | 76.9 | 76.9 | |||||||||
Additional
paid-in capital
|
413.3 | 409.0 | 386.2 | |||||||||
Retained
earnings
|
1,166.6 | 1,888.4 | 1,934.2 | |||||||||
Treasury
stock, at cost:
|
||||||||||||
14,861,000;
15,092,000 and 14,605,000 shares
|
(424.2 | ) | (428.7 | ) | (418.6 | ) | ||||||
Accumulated
other comprehensive loss, net of tax
|
(54.0 | ) | (52.7 | ) | (75.3 | ) | ||||||
Shareholders’
equity
|
1,178.6 | 1,892.9 | 1,903.4 | |||||||||
Total
liabilities and shareholders’ equity
|
$ | 3,465.9 | $ | 4,365.6 | $ | 4,471.5 | ||||||
The
Notes to Consolidated Financial Statements are an integral part of these
consolidated statements.
|
BRUNSWICK
CORPORATION
|
Condensed
Consolidated Statements of Cash Flows
|
(unaudited)
|
Nine
Months Ended
|
||||||||
(in
millions)
|
Restated
Sept.
27,
2008
|
Revised
Sept.
29,
2007
|
||||||
Cash
flows from operating activities
|
||||||||
Net
earnings (loss)
|
$ | (721.8 | ) | $ | 104.8 | |||
Less:
net earnings from discontinued operations
|
- | 37.3 | ||||||
Net
earnings (loss) from continuing operations
|
(721.8 | ) | 67.5 | |||||
Depreciation
and amortization
|
133.1 | 130.2 | ||||||
Goodwill
impairment charges
|
377.2 | - | ||||||
Trade
name impairment charges
|
133.9 | 66.4 | ||||||
Other
impairment charges
|
50.0 | 0.4 | ||||||
Changes
in non-cash current assets and current liabilities
|
(95.1 | ) | (50.0 | ) | ||||
Income
taxes
|
160.0 | 9.4 | ||||||
Other,
net
|
(17.1 | ) | 16.0 | |||||
Net cash provided by operating
activities of continuing operations
|
20.2 | 239.9 | ||||||
Net cash used for operating
activities of discontinued operations
|
- | (19.3 | ) | |||||
Net cash provided by operating
activities
|
20.2 | 220.6 | ||||||
Cash
flows from investing activities
|
||||||||
Capital
expenditures
|
(84.8 | ) | (156.3 | ) | ||||
Acquisitions
of businesses, net of cash acquired
|
- | (6.2 | ) | |||||
Investments
|
21.1 | 9.1 | ||||||
Proceeds
from investment sales
|
45.5 | - | ||||||
Proceeds
from the sale of property, plant and equipment
|
9.6 | 5.3 | ||||||
Other,
net
|
0.2 | 12.1 | ||||||
Net cash used for investing
activities of continuing operations
|
(8.4 | ) | (136.0 | ) | ||||
Net cash provided by investing
activities of discontinued operations
|
- | 65.2 | ||||||
Net cash used for investing
activities
|
(8.4 | ) | (70.8 | ) | ||||
Cash
flows from financing activities
|
||||||||
Net
proceeds from issuance of long-term debt
|
250.4 | - | ||||||
Payments
of long-term debt including current maturities
|
(250.7 | ) | (0.7 | ) | ||||
Stock
repurchases
|
- | (115.5 | ) | |||||
Stock
options exercised
|
- | 10.8 | ||||||
Net
cash used for financing activities of continuing
operations
|
(0.3 | ) | (105.4 | ) | ||||
Net cash used for financing
activities of discontinued operations
|
- | |||||||
Net cash used for financing
activities
|
(0.3 | ) | (105.4 | ) | ||||
Net
increase in cash and cash equivalents
|
11.5 | 44.4 | ||||||
Cash
and cash equivalents at beginning of period
|
331.4 | 283.4 | ||||||
Cash
and cash equivalents at end of period
|
$ | 342.9 | $ | 327.8 | ||||
The
Notes to Consolidated Financial Statements are an integral part of these
consolidated statements.
|
(in
millions)
|
As Reported
|
Adjustments
|
As
Restated
|
|||||||||
Consolidated
Statements of Operations
|
||||||||||||
For the three months ended
September 27, 2008
|
||||||||||||
Income
tax (benefit) provision
|
$ | 15.7 | $ | 137.7 | $ | 153.4 | ||||||
Net
earnings (loss) from continuing operations
|
(591.4 | ) | (137.7 | ) | (729.1 | ) | ||||||
Net
earnings (loss)
|
(591.4 | ) | (137.7 | ) | (729.1 | ) | ||||||
Earnings
per common share:
|
||||||||||||
Basic
|
||||||||||||
Net
earnings (loss) from continuing operations
|
(6.70 | ) | (1.56 | ) | (8.26 | ) | ||||||
Net
earnings (loss)
|
(6.70 | ) | (1.56 | ) | (8.26 | ) | ||||||
Diluted
|
||||||||||||
Net
earnings (loss) from continuing operations
|
(6.70 | ) | (1.56 | ) | (8.26 | ) | ||||||
Net
earnings (loss)
|
(6.70 | ) | (1.56 | ) | (8.26 | ) | ||||||
For the nine months ended
September 27, 2008
|
||||||||||||
Income
tax (benefit) provision
|
15.4 | 137.7 | 153.1 | |||||||||
Net
earnings (loss) from continuing operations
|
(584.1 | ) | (137.7 | ) | (721.8 | ) | ||||||
Net
earnings (loss)
|
(584.1 | ) | (137.7 | ) | (721.8 | ) | ||||||
Earnings
per common share:
|
||||||||||||
Basic
|
||||||||||||
Net
earnings (loss) from continuing operations
|
(6.62 | ) | (1.56 | ) | (8.18 | ) | ||||||
Net
earnings (loss)
|
(6.62 | ) | (1.56 | ) | (8.18 | ) | ||||||
Diluted
|
||||||||||||
Net
earnings (loss) from continuing operations
|
(6.62 | ) | (1.56 | ) | (8.18 | ) | ||||||
Net
earnings (loss)
|
(6.62 | ) | (1.56 | ) | (8.18 | ) | ||||||
Condensed
Consolidated Balance Sheets
|
||||||||||||
As of September 27,
2008
|
||||||||||||
Deferred
income taxes, Current assets
|
134.1 | (94.9 | ) | 39.2 | ||||||||
Current
assets
|
1,968.6 | (94.9 | ) | 1,873.7 | ||||||||
Deferred
income taxes, Other assets
|
57.6 | (42.8 | ) | 14.8 | ||||||||
Other
assets
|
664.7 | (42.8 | ) | 621.9 | ||||||||
Total
assets
|
3,603.6 | (137.7 | ) | 3,465.9 | ||||||||
Retained
earnings
|
1,304.3 | (137.7 | ) | 1,166.6 | ||||||||
Shareholder’s
Equity
|
1,316.3 | (137.7 | ) | 1,178.6 | ||||||||
Total
liabilities and shareholder’s equity
|
3,603.6 | (137.7 | ) | 3,465.9 | ||||||||
Condensed
Consolidated Statements of Cash Flows
|
||||||||||||
For the nine months ended
September 27, 2008
|
||||||||||||
Net
earnings (loss)
|
(584.1 | ) | (137.7 | ) | (721.8 | ) | ||||||
Net
earnings (loss) from continuing operations
|
(584.1 | ) | (137.7 | ) | (721.8 | ) | ||||||
Income
taxes
|
22.3 | 137.7 | 160.0 |
Three
Months Ended
|
||||||||||||||||
September
27, 2008
|
September
29, 2007
|
|||||||||||||||
(in
millions)
|
Goodwill
|
Trade
Names
|
Goodwill
|
Trade
Names
|
||||||||||||
Boat
|
$ | 361.3 | $ | 115.7 | $ | – | $ | 66.4 | ||||||||
Marine
Engine
|
– | 4.5 | – | – | ||||||||||||
Bowling
& Billiards
|
12.7 | 0.9 | – | – | ||||||||||||
Total
|
$ | 374.0 | $ | 121.1 | $ | – | $ | 66.4 |
Nine
Months Ended
|
||||||||||||||||
September
27, 2008
|
September
29, 2007
|
|||||||||||||||
(in
millions)
|
Goodwill
|
Trade
Names
|
Goodwill
|
Trade
Names
|
||||||||||||
|
||||||||||||||||
Boat
|
$ | 362.8 | $ | 120.9 | $ | – | $ | 66.4 | ||||||||
Marine
Engine
|
– | 4.5 | – | – | ||||||||||||
Bowling
& Billiards
|
14.4 | 8.5 | – | – | ||||||||||||
Total
|
$ | 377.2 | $ | 133.9 | $ | – | $ | 66.4 |
December
31,
|
September
27,
|
|||||||||||||||||||
(in
millions)
|
2007
|
Acquisitions
|
Adjustments
|
Impairments
|
2008
|
|||||||||||||||
Boat
|
$ | 366.6 | $ | — | $ | (3.8 | ) | $ | (362.8 | ) | $ | — | ||||||||
Marine
Engine
|
23.4 | — | (2.7 | ) | — | 20.7 | ||||||||||||||
Fitness
|
274.0 | — | 0.1 | — | 274.1 | |||||||||||||||
Bowling
& Billiards
|
14.9 | — | (0.5 | ) | (14.4 | ) | — | |||||||||||||
Total
|
$ | 678.9 | $ | — | $ | (6.9 | ) | $ | (377.2 | ) | $ | 294.8 |
December
31,
|
September
27,
|
|||||||||||||||||||
(in
millions)
|
2007
|
Acquisitions
|
Adjustments
|
Impairments
|
2008
|
|||||||||||||||
Boat
|
$ | 151.8 | $ | — | $ | (0.6 | ) | $ | (120.9 | ) | $ | 30.3 | ||||||||
Marine
Engine
|
4.5 | — | 2.1 | (4.5 | ) | 2.1 | ||||||||||||||
Fitness
|
0.6 | — | — | — | 0.6 | |||||||||||||||
Bowling
& Billiards
|
8.5 | — | — | (8.5 | ) | — | ||||||||||||||
Total
|
$ | 165.4 | $ | — | $ | 1.5 | $ | (133.9 | ) | $ | 33.0 |
·
|
Employee
termination and other benefits
|
·
|
Costs
to retain and relocate employees
|
·
|
Consulting
costs
|
·
|
Consolidation
of manufacturing footprint
|
·
|
Employee
termination and other benefits
|
·
|
Lease
exit costs
|
·
|
Inventory
write-downs
|
·
|
Facility
shutdown costs
|
·
|
Fixed
assets
|
·
|
Tooling
|
·
|
Patents
and proprietary technology
|
·
|
Dealer
networks
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
(in
millions)
|
Sept.
27,
2008
|
Sept.
29,
2007
|
Sept.
27,
2008
|
Sept.
29,
2007
|
||||||||||||
Restructuring
activities
|
||||||||||||||||
Employee
termination and other benefits
|
$ | 8.4 | $ | — | $ | 20.6 | $ | 4.0 | ||||||||
Current
asset write-downs
|
1.1 | — | 3.5 | — | ||||||||||||
Transformation
and other costs:
|
||||||||||||||||
Consolidation
of manufacturing footprint
|
13.0 | 2.1 | 29.7 | 3.0 | ||||||||||||
Retention
and relocation costs
|
0.3 | — | 5.4 | — | ||||||||||||
Consulting
costs
|
1.7 | — | 3.7 | — | ||||||||||||
Total
transformation and other costs
|
15.0 | 2.1 | 38.8 | 3.0 | ||||||||||||
Exit
activities
|
||||||||||||||||
Employee
termination and other benefits
|
0.3 | 0.2 | 3.0 | 1.1 | ||||||||||||
Current
asset write-downs
|
0.9 | — | 8.1 | 0.6 | ||||||||||||
Transformation
and other costs:
|
||||||||||||||||
Consolidation
of manufacturing footprint
|
0.2 | 2.0 | 4.4 | 4.3 | ||||||||||||
Retention
and relocation costs
|
— | — | — | — | ||||||||||||
Consulting
costs
|
— | — | — | — | ||||||||||||
Total
transformation and other costs
|
0.2 | 2.0 | 4.4 | 4.3 | ||||||||||||
Definite-lived
asset impairments
|
13.2 | 0.4 | 50.0 | 0.4 | ||||||||||||
Total
restructuring, exit and
other
impairment charges
|
$ | 39.1 | $ | 4.7 | $ | 128.4 | $ | 13.4 |
(in
millions)
|
Boat
|
Marine
Engine
|
Fitness
|
Bowling
& Billiards
|
Corporate
|
Total
|
||||||||||||||||||
Employee
terminations and
other benefits
|
$ | 1.7 | $ | 3.8 | $ | 0.8 | $ | 0.6 | $ | 1.8 | $ | 8.7 | ||||||||||||
Current
asset write-downs
|
0.3 | 0.8 | — | 0.9 | — | 2.0 | ||||||||||||||||||
Transformation and
other costs
|
9.9 | 1.7 | — | 0.3 | 3.3 | 15.2 | ||||||||||||||||||
Definite-lived asset
impairments
|
3.9 | 6.6 | — | — | 2.7 | 13.2 | ||||||||||||||||||
Total restructuring, exit and other
impairment charges
|
$ | 15.8 | $ | 12.9 | $ | 0.8 | $ | 1.8 | $ | 7.8 | $ | 39.1 |
(in
millions)
|
Boat
|
Marine
Engine
|
Fitness
|
Bowling
& Billiards
|
Corporate
|
Total
|
||||||||||||||||||
Employee
terminations and
other benefits
|
$ | 5.4 | $ | 11.6 | $ | 0.8 | $ | 3.2 | $ | 2.6 | $ | 23.6 | ||||||||||||
Current
asset write-downs
|
5.9 | 0.8 | 1.3 | 3.6 | — | 11.6 | ||||||||||||||||||
Transformation and
other costs
|
25.9 | 6.1 | — | 1.4 | 9.8 | 43.2 | ||||||||||||||||||
Definite-lived asset
impairments
|
23.9 | 12.9 | — | 9.7 | 3.5 | 50.0 | ||||||||||||||||||
Total
restructuring, exit and other
impairment
charges
|
$ | 61.1 | $ | 31.4 | $ | 2.1 | $ | 17.9 | $ | 15.9 | $ | 128.4 |
(in
millions)
|
Costs
Recognized
in 2008
|
Noncash
Charges
|
Cash
Payments
|
Accrued
Costs
as of
Sept.
27,
2008
|
||||||||||||
Employee
termination and other benefits
|
$ | 23.6 | $ | — | $ | 19.9 | $ | 3.7 | ||||||||
Current
asset write-downs
|
11.6 | 11.6 | — | — | ||||||||||||
Transformation
and other costs:
|
||||||||||||||||
Consolidation
of manufacturing footprint
|
34.1 | 6.3 | 27.8 | 6.3 | ||||||||||||
Retention
and relocation costs
|
5.4 | — | 4.7 | 0.7 | ||||||||||||
Consulting
costs
|
3.7 | — | 0.9 | 2.8 | ||||||||||||
Total
transformation and other costs
|
43.2 | 6.3 | 33.4 | 9.8 | ||||||||||||
Definite-lived
asset impairments
|
50.0 | 50.0 | — | — | ||||||||||||
Total
restructuring, exit and
other
impairment charges
|
$ | 128.4 | $ | 67.9 | $ | 53.3 | $ | 13.5 |
·
|
Level
1 - Quoted prices in active markets for identical assets or liabilities.
These are typically obtained from real-time quotes for transactions in
active exchange markets involving identical
assets.
|
·
|
Level
2 - Inputs, other than quoted prices included within Level 1, which are
observable for the asset or liability, either directly or indirectly.
These are typically obtained from readily-available pricing sources for
comparable instruments.
|
·
|
Level
3 - Unobservable inputs, where there is little or no market activity for
the asset or liability. These inputs reflect the reporting entity’s own
assumptions of the data that market participants would use in pricing the
asset or liability, based on the best information available in the
circumstances.
|
(in
millions)
|
Level
1
|
Level
2
|
Level
3
|
Total
|
||||||||||||
Assets:
|
||||||||||||||||
Cash
Equivalents
|
$ | 237.1 | $ | — | $ | — | $ | 237.1 | ||||||||
Investments
|
4.2 | — | — | 4.2 | ||||||||||||
Derivatives
|
— | 7.4 | — | 7.4 | ||||||||||||
Total
Assets
|
$ | 241.3 | $ | 7.4 | $ | — | $ | 248.7 | ||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$ | — | $ | 6.5 | $ | — | $ | 6.5 |
2008
|
2007
|
|||||||
Risk-free
interest rate
|
2.9 | % | 4.6 | % | ||||
Dividend
yield
|
2.3 | % | 1.8 | % | ||||
Volatility
factor
|
40.1 | % | 29.9 | % | ||||
Weighted
average expected life
|
5.4
- 6.2 years
|
5.1
- 6.2 years
|
Three
Months Ended
|
Nine
Months Ended
|
|||||||||||||||
(in
millions, except per share data)
|
Restated
Sept.
27,
2008
|
Sept.
29,
2007
|
Restated
Sept.
27,
2008
|
Sept.
29,
2007
|
||||||||||||
|
|
|||||||||||||||
Net
earnings (loss) from continuing operations
|
$ | (729.1 | ) | $ | (23.7 | ) | $ | (721.8 | ) | $ | 67.5 | |||||
Earnings
from discontinued operations, net of tax
|
– | 4.6 | – | 8.6 | ||||||||||||
Gain
on disposal of discontinued operations, net of tax
|
– | 21.0 | – | 28.7 | ||||||||||||
Net
earnings (loss)
|
$ | (729.1 | ) | $ | 1.9 | $ | (721.8 | ) | $ | 104.8 | ||||||
Average
outstanding shares – basic
|
88.3 | 89.0 | 88.3 | 90.3 | ||||||||||||
Dilutive
effect of common stock equivalents
|
– | – | – | 0.4 | ||||||||||||
Average
outstanding shares – diluted
|
88.3 | 89.0 | 88.3 | 90.7 | ||||||||||||
Basic
earnings per share
|
||||||||||||||||
Net
earnings (loss) from continuing operations
|
$ | (8.26 | ) | $ | (0.27 | ) | $ | (8.18 | ) | $ | 0.75 | |||||
Earnings
from discontinued operations, net of tax
|
– | 0.05 | – | 0.09 | ||||||||||||
Gain
on disposal of discontinued operations, net of tax
|
– | 0.24 | – | 0.32 | ||||||||||||
Net
earnings (loss)
|
$ | (8.26 | ) | $ | 0.02 | $ | (8.18 | ) | $ | 1.16 | ||||||
Diluted
earnings per share
|
||||||||||||||||
Net
earnings (loss) from continuing operations
|
$ | (8.26 | ) | $ | (0.27 | ) | $ | (8.18 | ) | $ | 0.75 | |||||
Earnings
from discontinued operations, net of tax
|
– | 0.05 | – | 0.09 | ||||||||||||
Gain
on disposal of discontinued operations, net of tax
|
– | 0.24 | – | 0.32 |