bcorp-20240629

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 29, 2024


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-01043

____________

Brunswick Corporation

(Exact name of registrant as specified in its charter)


Delaware						36-0848180
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

26125 N. Riverwoods Blvd., Suite 500, Mettawa, IL 60045-3420

(Address of principal executive offices) (Zip code)

(847) 735-4700

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

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 ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.


Large Accelerated Filer	☒	Accelerated Filer	☐

Non-accelerated Filer	☐	Smaller reporting company	☐

Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of Each Exchange on Which Registered

Common stock, par value $0.75 per share

New York Stock Exchange

Chicago Stock Exchange

6.500% Senior Notes due 2048

BC-A

New York Stock Exchange

6.625% Senior Notes due 2049

BC-B

New York Stock Exchange

6.375% Senior Notes due 2049

BC-C

New York Stock Exchange

The number of shares of Common Stock ($0.75 par value) of the registrant outstanding as of July 30, 2024 was 66,223,348.

BRUNSWICK CORPORATION

INDEX TO QUARTERLY REPORT ON FORM 10-Q

June 29, 2024

TABLE OF CONTENTS


PART I – FINANCIAL INFORMATION		Page

Item 1.	Condensed Consolidated Financial Statements (Unaudited)	3













Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	23

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	34

Item 4.	Controls and Procedures	35


PART II – OTHER INFORMATION



Item 1A.	Risk Factors	36

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	36

Item 5.	Other Information	37

Item 6.	Exhibits	38

Table of Contents

PART I - FINANCIAL INFORMATION

Item 1. Condensed Consolidated Financial Statements

BRUNSWICK CORPORATION

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended				Six Months Ended
(in millions, except per share data)	June 29, 2024		July 1, 2023		June 29, 2024		July 1, 2023
Net sales	$	1,443.9	$	1,702.3	$	2,808.9	$	3,445.9
Cost of sales	1,052.9		1,230.0		2,044.3		2,468.0
Selling, general and administrative expense	181.8		215.1		385.5		426.4
Research and development expense	43.0		48.9		88.8		97.6
Restructuring, exit and impairment charges	7.9		13.9		21.4		23.4
Operating earnings	158.3		194.4		268.9		430.5
Equity earnings	2.9		2.2		5.4		4.4
Other (expense) income, net	(0.8)		1.8		(0.8)		0.9
Earnings before interest and income taxes	160.4		198.4		273.5		435.8
Interest expense	(32.6)		(28.8)		(61.2)		(57.0)
Interest income	4.7		2.0		7.2		4.2


Earnings before income taxes	132.5		171.6		219.5		383.0
Income tax provision	27.7		36.3		46.3		135.3
Net earnings from continuing operations	104.8		135.3		173.2		247.7



Net loss from discontinued operations, net of tax	(4.8)		(0.6)		(5.2)		(0.7)
Net earnings	$	100.0	$	134.7	$	168.0	$	247.0

Earnings per common share:
Basic
Earnings from continuing operations	$	1.55	$	1.91	$	2.55	$	3.48
Loss from discontinued operations	(0.07)		(0.01)		(0.08)		(0.01)
Net earnings	$	1.48	$	1.90	$	2.47	$	3.47

Diluted
Earnings from continuing operations	$	1.55	$	1.91	$	2.54	$	3.47
Loss from discontinued operations	(0.07)		(0.01)		(0.07)		(0.01)
Net earnings	$	1.48	$	1.90	$	2.47	$	3.46

Weighted average shares used for computation of:
Basic earnings per common share	67.6		70.8		67.9		71.1
Diluted earnings per common share	67.6		70.9		68.1		71.4

Comprehensive income	$	93.6	$	131.8	$	151.1	$	247.7



The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated statements.

Table of Contents

BRUNSWICK CORPORATION

Condensed Consolidated Balance Sheets

(Unaudited)


(in millions)	June 29, 2024		December 31, 2023		July 1, 2023
Assets
Current assets
Cash and cash equivalents, at cost, which approximates fair value	$	494.5	$	467.8	$	477.5
Restricted cash	16.2		11.1		11.0
Short-term investments in marketable securities	82.5		0.8		0.8
Total cash and short-term investments in marketable securities	593.2		479.7		489.3
Accounts and notes receivable, less allowances of $10.0, $10.8, $10.5	530.0		493.2		614.5
Inventories
Finished goods	1,008.0		932.0		839.8
Work-in-process	170.8		181.6		208.9
Raw materials	345.4		363.2		435.5
Net inventories	1,524.2		1,476.8		1,484.2
Prepaid expenses and other	80.7		60.0		84.8

Current assets	2,728.1		2,509.7		2,672.8

Property
Land	44.0		44.1		42.8
Buildings and improvements	626.6		619.7		596.4
Equipment	1,576.3		1,551.5		1,527.3

Total land, buildings and improvements and equipment	2,246.9		2,215.3		2,166.5
Accumulated depreciation	(1,176.9)		(1,135.5)		(1,094.6)
Net land, buildings and improvements and equipment	1,070.0		1,079.8		1,071.9
Unamortized product tooling costs	230.3		236.0		242.2
Net property	1,300.3		1,315.8		1,314.1

Other assets
Goodwill	1,024.1		1,030.7		974.6
Other intangibles, net	948.1		978.0		979.4
Deferred income tax asset	186.5		186.8		149.8
Operating lease assets	153.8		152.2		121.1
Equity investments	37.5		38.7		60.0
Other long-term assets	17.3		18.6		18.3

Other assets	2,367.3		2,405.0		2,303.2

Total assets	$	6,395.7	$	6,230.5	$	6,290.1

The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated statements.

Table of Contents


(in millions)	June 29, 2024		December 31, 2023		July 1, 2023
Liabilities and shareholders' equity
Current liabilities
Short-term debt and current maturities of long-term debt	$	454.7	$	454.7	$	88.3
Accounts payable	447.9		558.0		549.4
Accrued expenses	705.5		739.4		756.3

Current liabilities	1,608.1		1,752.1		1,394.0

Long-term liabilities
Debt	2,372.4		1,975.7		2,422.0
Operating lease liabilities	135.8		133.9		105.4
Postretirement benefits	48.8		52.5		47.2
Deferred income tax liability	12.2		12.4		12.6
Other	204.8		216.5		207.5

Long-term liabilities	2,774.0		2,391.0		2,794.7

Shareholders' equity
Common stock; authorized: 200,000,000 shares, $0.75 par value; issued: 102,538,000 shares; outstanding: 66,352,000, 68,227,000 and 70,005,000 shares	76.9		76.9		76.9
Additional paid-in capital	389.2		392.0		383.8
Retained earnings	3,708.1		3,596.9		3,478.7
Treasury stock, at cost: 36,186,000, 34,311,000 and 32,533,000 shares	(2,118.0)		(1,952.7)		(1,809.2)







Accumulated other comprehensive loss	(42.6)		(25.7)		(28.8)
Shareholders' equity	2,013.6		2,087.4		2,101.4

Total liabilities and shareholders' equity	$	6,395.7	$	6,230.5	$	6,290.1

The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated statements.

Table of Contents

BRUNSWICK CORPORATION

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Six Months Ended
(in millions)	June 29, 2024		July 1, 2023
Cash flows from operating activities
Net earnings	$	168.0	$	247.0
Less: net loss from discontinued operations, net of tax	(5.2)		(0.7)
Net earnings from continuing operations	173.2		247.7
Depreciation and amortization	139.8		132.1
Stock compensation expense	11.2		13.8
Pension funding, net of expense	(0.6)		(0.9)

Asset impairment charges	5.4		1.3

Deferred income taxes	7.2		1.4


Changes in certain current assets and current liabilities	(255.4)		(162.1)
Long-term extended warranty contracts and other deferred revenue	8.4		9.7


Income taxes	(24.6)		25.2
Other, net	3.0		(13.8)
Net cash provided by operating activities of continuing operations	67.6		254.4
Net cash used for operating activities of discontinued operations	(10.0)		(2.3)
Net cash provided by operating activities	57.6		252.1

Cash flows from investing activities
Capital expenditures	(101.1)		(173.4)
Purchases of marketable securities	(80.9)		—
Sales or maturities of marketable securities	—		3.8
Investments	1.2		(6.4)
Acquisition of businesses, net of cash acquired	(0.6)		—
Proceeds from the sale of property, plant and equipment	5.4		6.3



Net cash used for investing activities	(176.0)		(169.7)

Cash flows from financing activities
Proceeds from issuances of short-term debt	1.3		1.6
Payments of short-term debt	(2.3)		(1.8)
Net proceeds from issuances of long-term debt	396.9		—
Payments of long-term debt including current maturities	(1.3)		(1.4)

Common stock repurchases	(170.0)		(132.2)
Cash dividends paid	(56.8)		(56.8)

Tax withholding associated with shares issued for share-based compensation	(9.2)		(13.4)
Other, net	(1.4)		—


Net cash provided by (used for) financing activities	157.2		(204.0)

Effect of exchange rate changes on cash and cash equivalents	(7.0)		1.6
Net increase (decrease) in Cash and cash equivalents and Restricted cash	31.8		(120.0)
Cash and cash equivalents and Restricted cash at beginning of period	478.9		608.5

Cash and cash equivalents and Restricted cash at end of period	510.7		488.5
Less: Restricted cash	16.2		11.0
Cash and cash equivalents at end of period	$	494.5	$	477.5

The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated statements.

Table of Contents

Brunswick Corporation

Condensed Consolidated Statements of Shareholders' Equity

(Unaudited)


(in millions, except per share data)	Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated other comprehensive loss		Total
Balance at December 31, 2023	$	76.9	$	392.0	$	3,596.9	$	(1,952.7)	$	(25.7)	$	2,087.4
Net earnings	—		—		68.0		—		—		68.0
Other comprehensive loss	—		—		—		—		(10.5)		(10.5)
Dividends ($0.42 per common share)	—		—		(28.6)		—		—		(28.6)
Compensation plans and other	—		(8.6)		—		6.0		—		(2.6)
Common stock repurchases	—		—		—		(64.1)		—		(64.1)
Balance at March 30, 2024	76.9		383.4		3,636.3		(2,010.8)		(36.2)		2,049.6
Net earnings	—		—		100.0		—		—		100.0
Other comprehensive loss	—		—		—		—		(6.4)		(6.4)
Dividends ($0.42 per common share)	—		—		(28.2)		—		—		(28.2)
Compensation plans and other	—		5.8		—		0.2		—		6.0
Common stock repurchases	—		—		—		(107.4)		—		(107.4)
Balance at June 29, 2024	$	76.9	$	389.2	$	3,708.1	$	(2,118.0)	$	(42.6)	$	2,013.6


(in millions, except per share data)	Common Stock		Additional Paid-in Capital		Retained Earnings		Treasury Stock		Accumulated other comprehensive (loss)		Total
Balance at December 31, 2022	$	76.9	$	391.3	$	3,288.5	$	(1,684.9)	$	(29.5)	$	2,042.3
Net earnings	—		—		112.3		—		—		112.3
Other comprehensive income	—		—		—		—		3.6		3.6
Dividends ($0.40 per common share)	—		—		(28.5)		—		—		(28.5)
Compensation plans and other	—		(15.3)		—		8.5		—		(6.8)
Common stock repurchases	—		—		—		(60.4)		—		(60.4)
Balance at April 1, 2023	76.9		376.0		3,372.3		(1,736.8)		(25.9)		2,062.5
Net earnings	—		—		134.7		—		—		134.7
Other comprehensive loss	—		—		—		—		(2.9)		(2.9)
Dividends ($0.40 per common share)	—		—		(28.3)		—		—		(28.3)
Compensation plans and other	—		7.8		—		0.5		—		8.3
Common stock repurchases	—		—		—		(72.9)		—		(72.9)
Balance at July 1, 2023	$	76.9	$	383.8	$	3,478.7	$	(1,809.2)	$	(28.8)	$	2,101.4

The Notes to Condensed Consolidated Financial Statements are an integral part of these condensed consolidated statements.

Table of Contents

BRUNSWICK CORPORATION

Notes to Condensed Consolidated Financial Statements

(Unaudited)

Note 1 – Significant Accounting Policies

Interim Financial Statements. Brunswick's unaudited interim condensed consolidated financial statements have been prepared pursuant to SEC rules and regulations. Therefore, certain information and disclosures normally included in financial statements and related notes prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) have been condensed or omitted.

These financial statements should be read in conjunction with, and have been prepared in conformity with, the accounting principles reflected in the consolidated financial statements and related notes included in Brunswick's 2023 Annual Report on Form 10-K for the year ended December 31, 2023 (the 2023 Form 10-K). These results include, in management's opinion, all normal and recurring adjustments necessary to present fairly Brunswick's financial position, results of operations and cash flows. Due to the seasonality of Brunswick's businesses, the interim results are not necessarily indicative of the results that may be expected for the remainder of the year.

The Company maintains its financial records on the basis of a fiscal year ending on December 31, with the fiscal quarters spanning approximately thirteen weeks. The first quarter ends on the Saturday closest to the end of the first thirteen-week period. The second and third quarters are thirteen weeks in duration and the fourth quarter is the remainder of the year. The second quarter of fiscal year 2024 ended on June 29, 2024 and the second quarter of fiscal year 2023 ended on July 1, 2023.

Recently Issued Accounting Standards

Segment Reporting: In November 2023, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2023-07, Segment Reporting (Topic 280) — Improvements to Reportable Segment Disclosures, which adds new disclosure requirements related to significant segment expenses regularly provided to the chief operating decision maker (CODM) and included in each reported measure of segment profit or loss, other segment items that constitute the difference between segment revenues less significant segment expenses and the measure of profit or loss, disclosure of the CODMs title and position as well as an explanation of how the CODM uses the reported measures and expanded interim disclosures. ASU 2023-07 is effective for financial statements for annual periods beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024. We are currently evaluating the potential impact of adopting this guidance on the consolidated financial statements.

Income Taxes: In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) — Improvements to Income Tax Disclosures. Under this ASU, entities must disclose, on an annual basis, specific categories in the rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. In addition, ASU 2023-09 requires entities to disclose additional information about income taxes paid. ASU 2023-09 is effective for financial statements for annual periods beginning after December 15, 2024. We are currently evaluating the potential impact of adopting this guidance on the consolidated financial statements.

Table of Contents

BRUNSWICK CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

Note 2 – Revenue Recognition

The following tables present the Company's revenue in categories that depict how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors:


	Three Months Ended
	June 29, 2024
(in millions)	Propulsion		Engine P&A		Navico Group		Boat		Total
Geographic Markets
United States	$	350.6	$	245.5	$	125.5	$	337.5	$	1,059.1
Europe	97.1		32.1		59.4		34.5		223.1
Asia-Pacific	43.5		22.8		17.0		5.2		88.5
Canada	14.2		22.0		3.6		43.6		83.4
Rest-of-World	52.6		13.7		4.6		13.4		84.3
Segment Eliminations	(71.5)		(2.0)		(21.0)		—		(94.5)
Total	$	486.5	$	334.1	$	189.1	$	434.2	$	1,443.9

	Three Months Ended
	July 1, 2023
(in millions)	Propulsion		Engine P&A		Navico Group		Boat		Total
Geographic Markets
United States	$	496.8	$	242.4	$	139.6	$	418.2	$	1,297.0
Europe	89.9		28.9		60.5		56.3		235.6
Asia-Pacific	49.8		23.8		18.6		8.3		100.5
Canada	20.6		22.0		4.4		70.3		117.3
Rest-of-World	46.2		11.8		4.7		7.7		70.4
Segment Eliminations	(91.4)		(1.8)		(25.2)		(0.1)		(118.5)
Total	$	611.9	$	327.1	$	202.6	$	560.7	$	1,702.3


	Six Months Ended
	June 29, 2024
(in millions)	Propulsion		Engine P&A		Navico Group		Boat		Total
Geographic Markets
United States	$	729.3	$	425.0	$	249.0	$	671.2	$	2,074.5
Europe	184.1		59.5		121.1		74.5		439.2
Asia-Pacific	87.3		48.2		33.0		10.7		179.2
Canada	30.2		37.2		7.8		81.1		156.3
Rest-of-World	105.3		28.6		10.1		22.4		166.4
Segment Eliminations	(153.9)		(3.7)		(49.1)		—		(206.7)
Total	$	982.3	$	594.8	$	371.9	$	859.9	$	2,808.9

	Six Months Ended
	July 1, 2023
(in millions)	Propulsion		Engine P&A		Navico Group		Boat		Total
Geographic Markets
United States	$	992.6	$	445.3	$	321.9	$	858.2	$	2,618.0
Europe	205.4		55.9		125.9		107.4		494.6
Asia-Pacific	108.3		51.7		37.2		15.6		212.8
Canada	49.0		40.8		9.6		136.2		235.6
Rest-of-World	99.6		23.8		10.5		18.6		152.5
Segment Eliminations	(205.1)		(3.8)		(58.3)		(0.4)		(267.6)
Total	$	1,249.8	$	613.7	$	446.8	$	1,135.6	$	3,445.9

Table of Contents

BRUNSWICK CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)


	Three Months Ended
	June 29, 2024
(in millions)	Propulsion		Engine P&A		Navico Group		Boat		Total
Major Product Lines
Outboard Engines	$	423.1	$	—	$	—	$	—	$	423.1
Controls, Rigging, and Propellers	100.6		—		—		—		100.6
Sterndrive Engines	34.3		—		—		—		34.3
Distribution	—		195.8		—		—		195.8
Products	—		140.3		—		—		140.3
Navico Group	—		—		210.1		—		210.1
Aluminum Freshwater Boats	—		—		—		148.2		148.2
Recreational Fiberglass Boats	—		—		—		132.4		132.4
Saltwater Fishing Boats	—		—		—		110.0		110.0
Business Acceleration	—		—		—		54.6		54.6
Boat Eliminations/Other	—		—		—		(11.0)		(11.0)
Segment Eliminations	(71.5)		(2.0)		(21.0)		—		(94.5)
Total	$	486.5	$	334.1	$	189.1	$	434.2	$	1,443.9

	Three Months Ended
	July 1, 2023
(in millions)	Propulsion		Engine P&A		Navico Group		Boat		Total
Major Product Lines
Outboard Engines	$	552.6	$	—	$	—	$	—	$	552.6
Controls, Rigging, and Propellers	105.1		—		—		—		105.1
Sterndrive Engines	45.6		—		—		—		45.6
Distribution	—		197.2		—		—		197.2
Products	—		131.7		—		—		131.7
Navico Group	—		—		227.8		—		227.8
Aluminum Freshwater Boats	—		—		—		210.3		210.3
Recreational Fiberglass Boats	—		—		—		187.1		187.1
Saltwater Fishing Boats	—		—		—		124.9		124.9
Business Acceleration	—		—		—		46.5		46.5
Boat Eliminations/Other	—		—		—		(8.0)		(8.0)
Segment Eliminations	(91.4)		(1.8)		(25.2)		(0.1)		(118.5)
Total	$	611.9	$	327.1	$	202.6	$	560.7	$	1,702.3

Table of Contents

BRUNSWICK CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)


	Six Months Ended
	June 29, 2024
(in millions)	Propulsion		Engine P&A		Navico Group		Boat		Total
Major Product Lines
Outboard Engines	$	873.6	$	—	$	—	$	—	$	873.6
Controls, Rigging, and Propellers	191.0		—		—		—		191.0
Sterndrive Engines	71.6		—		—		—		71.6
Distribution	—		348.2		—		—		348.2
Products	—		250.3		—		—		250.3
Navico Group	—		—		421.0		—		421.0
Aluminum Freshwater Boats	—		—		—		298.4		298.4
Recreational Fiberglass Boats	—		—		—		267.7		267.7
Saltwater Fishing Boats	—		—		—		217.2		217.2
Business Acceleration	—		—		—		103.8		103.8
Boat Eliminations/Other	—		—		—		(27.2)		(27.2)
Segment Eliminations	(153.9)		(3.7)		(49.1)		—		(206.7)
Total	$	982.3	$	594.8	$	371.9	$	859.9	$	2,808.9

	Six Months Ended
	July 1, 2023
(in millions)	Propulsion		Engine P&A		Navico Group		Boat		Total
Major Product Lines
Outboard Engines	$	1,145.8	$	—	$	—	$	—	$	1,145.8
Controls, Rigging, and Propellers	211.1		—		—		—		211.1
Sterndrive Engines	98.0		—		—		—		98.0
Distribution	—		372.5		—		—		372.5
Products	—		245.0		—		—		245.0
Navico Group	—		—		505.1		—		505.1
Aluminum Freshwater Boats	—		—		—		440.7		440.7
Recreational Fiberglass Boats	—		—		—		385.5		385.5
Saltwater Fishing Boats	—		—		—		238.0		238.0
Business Acceleration	—		—		—		86.3		86.3
Boat Eliminations/Other	—		—		—		(14.5)		(14.5)
Segment Eliminations	(205.1)		(3.8)		(58.3)		(0.4)		(267.6)
Total	$	1,249.8	$	613.7	$	446.8	$	1,135.6	$	3,445.9

As of December 31, 2023, $187.1 million of contract liabilities associated with extended warranties, deferred revenue and customer deposits were reported in Accrued expenses and Other long-term liabilities, of which $39.4 million were recognized as revenue during the six months ended June 29, 2024. As of June 29, 2024, total contract liabilities were $198.2 million. The total amount of the transaction price allocated to unsatisfied performance obligations as of June 29, 2024 was $191.6 million for contracts greater than one year, which primarily relates to extended warranties. The Company expects to recognize $38.7 million of this amount in 2024, $47.2 million in 2025, and $105.7 million thereafter.

Note 3 – Restructuring, Exit and Impairment Activities

The Company recorded restructuring, exit and impairment charges in the Condensed Consolidated Statements of Comprehensive Income in 2024.

During the three and six months ended June 29, 2024 and July 1, 2023, the Company recorded restructuring charges related to headcount reductions and related costs associated with streamlining the enterprise-wide cost structure and improving operating efficiencies. The Company also incurred charges related to the rationalization of its manufacturing footprint.

Table of Contents

BRUNSWICK CORPORATION

Notes to Condensed Consolidated Financial Statements

(unaudited)

The following table is a summary of these expenses for the three months ended June 29, 2024:



(in millions)	Propulsion		Engine P&A		Navico Group		Boat		Corporate		Total
Restructuring, exit and impairment activities:
Employee termination and other benefits	$	0.4	$	0.2	$	0.4	$	1.7	$	0.3	$	3.0
Asset-related	—		—		4.9		—		—		4.9


Total restructuring, exit and impairment charges	$	0.4	$	0.2	$	5.3	$	1.7	$	0.3	$	7.9

Total cash payments for restructuring, exit and impairment charges (A)	$	2.2	$	1.1	$	1.2	$	0.7	$	0.5	$	5.7
Accrued charges at end of the period (B)	$	2.3	$	1.5	$	0.4	$	2.7	$	0.4	$	7.3

(A) Cash payments for the three months ended June 29, 2024 may include payments related to prior period charges.

(B) Restructuring, exit and impairment charges accrued as of June 29, 2024 are expected to be paid in the next twelve months.

The following table is a summary of these expenses for the three months ended July 1, 2023:



(in millions)	Engine P&A		Navico Group		Boat		Corporate		Total
Restructuring, exit and impairment activities:
Employee termination and other benefits	$	0.3	$	7.1	$	4.5	$	—	$	11.9
Asset-related	—		0.2		—		—		0.2
Professional fees	—		—		—		1.8		1.8
Total restructuring, exit and impairment charges	$	0.3	$	7.3	$	4.5	$	1.8	$	13.9

Total cash payments for restructuring, exit and impairment charges (A)	$