Brunswick Corporation Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Earnings per Common Share

Earnings per Common Share

6 Months Ended

Jul. 04, 2015

Note 7 – Earnings per Common Share

Basic earnings per common share is calculated by dividing Net earnings by the weighted average number of common shares outstanding during the period. Diluted earnings per common share is calculated similarly, except that the calculation includes the dilutive effect of stock-settled SARs and stock options (collectively “options”), non-vested stock awards and performance awards.

Basic and diluted earnings per common share for the three months and six months ended July 4, 2015 and June 28, 2014, were calculated as follows:



	Three Months Ended				Six Months Ended
(in millions, except per share data)	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Net earnings from continuing operations	$	107.6	$	87.1	$	164.2	$	136.2
Net earnings from discontinued operations, net of tax	10.2		1.5		10.6		9.4
Net earnings	$	117.8	$	88.6	$	174.8	$	145.6

Weighted average outstanding shares – basic	93.3		93.5		93.6		93.4
Dilutive effect of common stock equivalents	1.3		1.6		1.2		1.6
Weighted average outstanding shares – diluted	94.6		95.1		94.8		95.0

Basic earnings per common share:
Continuing operations	$	1.15	$	0.93	$	1.76	$	1.46
Discontinued operations	0.11		0.02		0.11		0.10
Net earnings	$	1.26	$	0.95	$	1.87	$	1.56

Diluted earnings per common share:
Continuing operations	$	1.14	$	0.92	$	1.73	$	1.43
Discontinued operations	0.11		0.01		0.11		0.10
Net earnings	$	1.25	$	0.93	$	1.84	$	1.53

As of July 4, 2015, the Company had 2.3 million options outstanding, of which 2.2 million were exercisable. This compares with 3.4 million options outstanding, of which 2.9 million were exercisable, as of June 28, 2014. During both the three months and six months ended July 4, 2015, there were no options outstanding for which the exercise price was greater than the average market price of the Company’s shares for the period then ended. Therefore, there were no anti-dilutive options to exclude from the computation of diluted earnings per common share. This compares to 0.3 million anti-dilutive shares of options outstanding that were excluded from both the three months and six months ended June 28, 2014. Changes in average outstanding basic shares from June 28, 2014 to July 4, 2015, reflect the impact of options exercised and the vesting of stock and performance awards since the beginning of 2014, net of the impact of common stock repurchases during the fourth quarter of 2014 and first half of 2015.