Quarterly report pursuant to Section 13 or 15(d)

Segment Data

v2.4.0.6
Segment Data
 9 Months Ended
Sep. 29, 2012
Segment Reporting [Abstract]  
Segment Data
Note 9 – Segment Data

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.

During the first quarter of 2012, the Company realigned its global marine operations, which resulted in changes to the components of the Marine Engine and Boat reportable segments. Several Brunswick boat brands based in Europe and Asia, which include Quicksilver, Rayglass, Uttern and Valiant boats, each of which were previously included in the Marine Engine segment, are now managed and included as part of the Boat segment. Additionally, the Company started evaluating segment results exclusive of certain costs associated with its defined benefit pension plans. As a result of freezing benefit accruals in its defined benefit pension plans, the Company has elected to allocate only service-related costs to the operating segment results and report all other components of pension expense on a separate line included in the segment tables presented below. As a result, Interest cost, Expected return on plan assets and Amortization of net actuarial losses previously reported in the Marine Engine and Bowling & Billiards segments, as well as Corporate/Other, are now being reported in Pension - non-service costs. Pension costs associated with Service cost and Amortization of prior service cost, while not significant, remain in the reporting segments as presented in the tables below. Segment results have been revised for all periods presented to reflect the change in Brunswick's reported segments.

The Company evaluates performance based on business segment operating earnings.  Operating earnings of segments do not include the expenses of corporate administration, non-service related pension costs, 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.

The following table sets forth net sales and operating earnings (loss) of each of the Company’s reportable segments for the three months ended September 29, 2012 and October 1, 2011:
 
Net Sales
 
Operating Earnings (Loss)
 
Three Months Ended
 
Three Months Ended
(in millions)
September 29,
2012
 
October 1,
2011
 
September 29,
2012
 
October 1,
2011
Marine Engine
$
503.5

 
$
455.6

 
$
74.5

 
$
52.9

Boat
205.8

 
221.1

 
(43.5
)
 
(21.2
)
Marine eliminations
(50.9
)
 
(36.7
)
 
—

 
—

Total Marine
658.4

 
640.0

 
31.0

 
31.7

Fitness
151.9

 
157.2

 
23.1

 
22.6

Bowling & Billiards
74.5

 
79.5

 
3.2

 
2.8

Pension - non-service costs
—

 
—

 
(6.1
)
 
(7.6
)
Corporate/Other
—

 
—

 
(13.7
)
 
(13.9
)
Total
$
884.8

 
$
876.7

 
$
37.5

 
$
35.6


The following table sets forth net sales and operating earnings (loss) of each of the Company’s reportable segments for the nine months ended September 29, 2012 and October 1, 2011:
 
Net Sales
 
Operating Earnings (Loss)
 
Nine Months Ended
 
Nine Months Ended
(in millions)
September 29,
2012
 
October 1,
2011
 
September 29,
2012
 
October 1,
2011
Marine Engine
$
1,584.1

 
$
1,545.7

 
$
227.3

 
$
210.5

Boat
834.1

 
880.6

 
(32.3
)
 
(15.9
)
Marine eliminations
(181.5
)
 
(166.9
)
 
—

 
—

Total Marine
2,236.7

 
2,259.4

 
195.0

 
194.6

Fitness
452.3

 
455.2

 
66.7

 
65.1

Bowling & Billiards
237.0

 
244.3

 
20.0

 
19.5

Pension - non-service costs
—

 
—

 
(17.9
)
 
(22.8
)
Corporate/Other
—

 
—

 
(43.9
)
 
(45.9
)
Total
$
2,926.0

 
$
2,958.9

 
$
219.9

 
$
210.5






The following table sets forth total assets of each of the Company’s reportable segments as of September 29, 2012 and December 31, 2011:
 
Total Assets
(in millions)
September 29,
2012
 
December 31,
2011
Marine Engine
$
722.0

 
$
649.1

Boat
400.3

 
389.9

Total Marine
1,122.3

 
1,039.0

Fitness
537.1

 
551.7

Bowling & Billiards
264.8

 
251.6

Corporate/Other
583.7

 
651.7

Total
$
2,507.9

 
$
2,494.0