Quarterly report pursuant to Section 13 or 15(d)

Investments

v2.4.1.9
Investments
 3 Months Ended
Apr. 04, 2015
Investments [Abstract]  
Investments
Note 11 – Investments

Investments in Marketable Securities

The Company invests a portion of its cash reserves in marketable debt securities.  These investments are reported in Short-term investments in marketable securities on the Condensed Consolidated Balance Sheets.  Furthermore, the debt securities have readily determinable market values and are being accounted for as available-for-sale investments.  These investments are recorded at fair value with unrealized gains and losses reflected in Accumulated other comprehensive loss, a component of Shareholders’ equity on the Company’s Condensed Consolidated Balance Sheets, on an after-tax basis.

The following is a summary of the Company’s available-for-sale securities, all due in one year or less, as of April 4, 2015:
 
(in millions)
Amortized
cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Fair value
(net carrying amount)
Agency Bonds
$
36.0

 
$
—

 
$
—

 
$
36.0

Commercial Paper
21.0

 
—

 
—

 
21.0

U.S. Treasury Bills
0.8

 
—

 
—

 
0.8

Total available-for-sale securities
$
57.8

 
$
—

 
$
—

 
$
57.8


The following is a summary of the Company’s available-for-sale securities, all due in one year or less, as of December 31, 2014:
 
(in millions)
Amortized
cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Fair value
(net carrying amount)
Agency Bonds
$
24.0

 
$
—

 
$
—

 
$
24.0

Corporate Bonds
24.9

 
—

 
—

 
24.9

Commercial Paper
33.5

 
—

 
—

 
33.5

U.S. Treasury Bills
0.8

 
—

 
—

 
0.8

Total available-for-sale securities
$
83.2

 
$
—

 
$
—

 
$
83.2


The following is a summary of the Company’s available-for-sale securities, all due in one year or less, as of March 29, 2014:
 
(in millions)
Amortized
cost
 
Gross
unrealized
gains
 
Gross
unrealized
losses
 
Fair value
(net carrying amount)
U.S. Treasury Bills
$
0.8

 
$
—

 
$
—

 
$
0.8

Total available-for-sale securities
$
0.8

 
$
—

 
$
—

 
$
0.8



The Company had $9.5 million in sales and $31.8 million in redemptions of available-for-sale securities during the three months ended April 4, 2015. The Company had $11.9 million in redemptions of available-for-sale securities during the three months ended March 29, 2014.

At each reporting date, management reviews the debt securities to determine if any loss in the value of a security below its amortized cost should be considered “other-than-temporary.” As of April 4, 2015, there were no unrealized losses related to debt securities that required management evaluation.

Equity Investments

The Company has certain unconsolidated international and domestic affiliates that are accounted for using the equity method. Refer to Note 13 – Financial Services for more details on the Company’s Brunswick Acceptance Company, LLC joint venture. In the fourth quarter of 2014, the Company determined that the fair value of its 36 percent investment in Bella-Veneet Oy (Bella), a Finnish boat manufacturer, had declined significantly as a result of the inability of the business to achieve profitability due to weak market conditions for its products, which has led to significant declines in revenue. The Company determined that the book value of its investment exceeded its fair value and concluded that this decline in fair value was other than temporary. As a result, the Company recorded a $20.2 million charge during the fourth quarter of 2014 in order to reflect the fair value of the Company's investment in Bella of $1.1 million. Refer to Note 9 to the consolidated financial statements in the 2014 Form 10-K for further detail relating to the Company's equity investments.