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

Derivatives Designated as Fair Value Hedging Instruments

Location of Gain (Loss) on Derivatives

Recognized in Earnings

Amount of Gain (Loss) on Derivatives Recognized in Earnings

Interest rate contracts

Interest expense

Financial Instruments (Tables)

6 Months Ended

Jul. 04, 2015

As of July 4, 2015, the fair values of the Company’s derivative instruments were:



(in millions)
	Derivative Assets			Derivative Liabilities
Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts	Prepaid expenses and other	$	3.3	Accrued expenses	$	1.2
Commodity contracts	Prepaid expenses and other	—		Accrued expenses	0.4
Total		$	3.3		$	1.6

Derivatives Designated as Fair Value Hedges
Interest rate contracts	Prepaid expenses and other	$	2.2	Accrued expenses	$	1.4
Interest rate contracts	Other long-term assets	1.2		Other long-term liabilities	0.0
Total		$	3.4		$	1.4

Other Hedging Activity
Foreign exchange contracts	Prepaid expenses and other	$	1.0	Accrued expenses	$	0.8
Commodity contracts	Prepaid expenses and other	—		Accrued expenses	3.1
Total		$	1.0		$	3.9

As of December 31, 2014, the fair values of the Company’s derivative instruments were:



(in millions)
	Derivative Assets			Derivative Liabilities
Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts	Prepaid expenses and other	$	5.9	Accrued expenses	$	1.5
Commodity contracts	Prepaid expenses and other	0.3		Accrued expenses	0.7
Total		$	6.2		$	2.2

Derivatives Designated as Fair Value Hedges
Interest rate contracts	Prepaid expenses and other	$	3.9	Accrued expenses	$	1.3
Total		$	3.9		$	1.3

Other Hedging Activity
Foreign exchange contracts	Prepaid expenses and other	$	1.0	Accrued expenses	$	0.1
Total		$	1.0		$	0.1

As of June 28, 2014, the fair values of the Company’s derivative instruments were:



(in millions)
	Derivative Assets			Derivative Liabilities
Instrument	Balance Sheet Location	Fair Value		Balance Sheet Location	Fair Value
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts	Prepaid expenses and other	$	0.9	Accrued expenses	$	1.4
Commodity contracts	Prepaid expenses and other	1.0		Accrued expenses	0.2
Total		$	1.9		$	1.6

Derivatives Designated as Fair Value Hedges
Interest rate contracts	Prepaid expenses and other	$	0.9	Accrued expenses	$	2.3
Total		$	0.9		$	2.3

Other Hedging Activity
Foreign exchange contracts	Prepaid expenses and other	$	0.0	Accrued expenses	$	1.1
Total		$	0.0		$	1.1

The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three months ended July 4, 2015 was:



(in millions)
Derivatives Designated as Cash Flow Hedging Instruments	Amount of Gain (Loss) on Derivatives Recognized in Accumulated Other Comprehensive Loss (Effective Portion)			Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)
Interest rate contracts	$	—		Interest expense	$	(0.0	)
Foreign exchange contracts	(1.2		)	Cost of sales	4.5
Commodity contracts	(0.0		)	Cost of sales	0.4
Total	$	(1.2	)		$	4.9



Other Hedging Activity	Location of Gain (Loss) on Derivatives Recognized in Earnings	Amount of Gain (Loss) on Derivatives Recognized in Earnings
Foreign exchange contracts	Cost of sales	$	(2.3	)
Foreign exchange contracts	Other income, net	(1.2		)
Commodity contracts	Cost of sales	(1.9		)
Total		$	(5.4	)

The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the six months ended July 4, 2015 was:



(in millions)
Derivatives Designated as Cash Flow Hedging Instruments	Amount of Gain (Loss) on Derivatives Recognized in Accumulated Other Comprehensive Loss (Effective Portion)			Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)
Interest rate contracts	$	—		Interest expense	$	(0.0	)
Foreign exchange contracts	5.5			Cost of sales	7.1
Commodity contracts	(0.4		)	Cost of sales	1.0
Total	$	5.1			$	8.1



Other Hedging Activity	Location of Gain (Loss) on Derivatives Recognized in Earnings	Amount of Gain (Loss) on Derivatives Recognized in Earnings
Foreign exchange contracts	Cost of sales	$	3.9
Foreign exchange contracts	Other income, net	(0.5		)
Commodity contracts	Cost of sales	(4.2		)
Total		$	(0.8	)

The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the three months ended June 28, 2014 was:



(in millions)
Derivatives Designated as Cash Flow Hedging Instruments	Amount of Gain (Loss) on Derivatives Recognized in Accumulated Other Comprehensive Loss (Effective Portion)			Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)
Foreign exchange contracts	$	(0.9	)	Cost of sales	$	(0.1	)
Commodity contracts	1.7			Cost of sales	0.5
Total	$	0.8			$	0.4



Other Hedging Activity	Location of Gain (Loss) on Derivatives Recognized in Earnings	Amount of Gain (Loss) on Derivatives Recognized in Earnings
Foreign exchange contracts	Cost of sales	$	(1.9	)
Foreign exchange contracts	Other income, net	(0.6		)
Total		$	(2.5	)

The effect of derivative instruments on the Condensed Consolidated Statements of Comprehensive Income for the six months ended June 28, 2014 was:



(in millions)
Derivatives Designated as Cash Flow Hedging Instruments	Amount of Gain (Loss) on Derivatives Recognized in Accumulated Other Comprehensive Loss (Effective Portion)			Location of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)	Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings (Effective Portion)
Foreign exchange contracts	$	(0.9	)	Cost of sales	$	(0.5	)
Commodity contracts	0.6			Cost of sales	(1.7		)
Total	$	(0.3	)		$	(2.2	)



Other Hedging Activity	Location of Gain (Loss) on Derivatives Recognized in Earnings	Amount of Gain (Loss) on Derivatives Recognized in Earnings
Foreign exchange contracts	Cost of sales	$	(2.4	)
Foreign exchange contracts	Other income, net	(0.7		)
Total		$	(3.1	)