Brunswick Corporation Annual report pursuant to Section 13 and 15(d)

Financial Instruments (Tables)

12 Months Ended

Dec. 31, 2016

The following activity related to cash flow hedges was recorded in Accumulated other comprehensive loss as of December 31:



	Accumulated Unrealized Derivative
	Gains (Losses)
	2016						2015
(in millions)	Pretax			After-tax			Pretax			After-tax
Beginning balance	$	0.4		$	(5.9	)	$	1.2		$	(5.5	)
Net change in value of outstanding hedges	2.9			2.1			12.0			8.4
Net amount recognized into earnings	(2.2		)	(1.8		)	(12.8		)	(8.8		)
Ending balance	$	1.1		$	(5.6	)	$	0.4		$	(5.9	)

As of December 31, 2016 and December 31, 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
		2016		2015			2016		2015
Derivatives Designated as Cash Flow Hedges
Foreign exchange contracts	Prepaid expenses and other	$	7.2	$	5.9	Accrued expenses	$	2.6	$	1.3
Commodity contracts	Prepaid expenses and other	—		—		Accrued expenses	—		0.5
Total		$	7.2	$	5.9		$	2.6	$	1.8

Derivatives Designated as Fair Value Hedges
Interest rate contracts	Prepaid expenses and other	$	2.1	$	2.1	Accrued expenses	$	1.7	$	1.4
Interest rate contracts	Other long-term assets	0.7		4.0		Other long-term liabilities	0.2		—
Total		$	2.8	$	6.1		$	1.9	$	1.4

Other Hedging Activity
Foreign exchange contracts	Prepaid expenses and other	$	1.2	$	1.5	Accrued expenses	$	0.3	$	0.2
Commodity contracts	Prepaid expenses and other	—		—		Accrued expenses	—		2.2
Total		$	1.2	$	1.5		$	0.3	$	2.4

The effect of derivative instruments on the Consolidated Statements of Operations for the years ended December 31, 2016 and December 31, 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)
	2016		2015				2016			2015
Interest rate contracts	$	—	$	—		Interest expense	$	(0.6	)	$	(0.1	)
Foreign exchange contracts	2.9		12.9			Cost of sales	3.3			12.2
Commodity contracts	0.0		(0.9		)	Cost of sales	(0.5		)	0.9
Total	$	2.9	$	12.0			$	2.2		$	13.0



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
		2016		2015
Interest rate contracts	Interest expense	$	2.9	$	4.3



Other Hedging Activity	Location of Gain (Loss) on Derivatives Recognized in Earnings	Amount of Gain (Loss) on Derivatives Recognized in Earnings
		2016			2015
Foreign exchange contracts	Cost of sales	$	(5.7	)	$	8.7
Foreign exchange contracts	Other income, net	2.0			(0.3		)
Commodity contracts	Cost of sales	0.3			(5.9		)
Total		$	(3.4	)	$	2.5