Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.3.1.900
Segment Information
 12 Months Ended
Dec. 31, 2015
Segment Reporting [Abstract]  
Segment Data
Segment Information

Brunswick is a manufacturer and marketer of leading consumer brands and has three operating and reportable segments: Marine Engine, Boat and Fitness.  The Company’s segments are defined by management’s reporting structure and operating activities.

The Marine Engine segment manufactures and markets a full range of outboard engines, sterndrive engines, inboard engines and marine parts and accessories, which are principally sold directly to boat builders, including Brunswick's Boat segment, or through marine retail dealers and distributors worldwide. The Company's engine manufacturing plants are located mainly in the United States, China and Japan, with sales mainly to markets in the Americas, Europe and Asia.

The Boat segment designs, manufactures and markets fiberglass pleasure boats, offshore fishing boats, yachts and sport yachts, aluminum fishing boats, pontoon boats, deck boats and inflatable boats, which are sold primarily through dealers. The Boat segment's products are manufactured mainly in the United States, Europe, Mexico and South America. Sales to the segment's largest boat dealer, MarineMax, which has multiple locations, comprised approximately 21 percent, 18 percent and 17 percent of Boat segment sales in 2015, 2014 and 2013, respectively.

The Fitness segment designs, manufactures and markets fitness equipment, including treadmills, total body cross-trainers, stair climbers, stationary bikes and strength-training equipment as well as billiards tables and accessories. These products are manufactured mainly in the United States and Hungary or are sourced from international suppliers. Fitness equipment is sold mainly in the Americas, Europe and Asia to health club, corporate, university, hospitality, military and government facilities, and to consumers through selected mass merchants, specialty retail dealers and through the Company's website. Consumer billiards equipment is predominantly sold in the United States and distributed primarily through dealers.

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, pension settlement charges, impairments of equity method investments, 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. As a result of freezing benefit accruals in its defined benefit pension plans, all remaining components of pension expense related to Interest cost, Expected return on plan assets, Amortization of net actuarial losses, Amortization of prior service cost and settlement charges are included in Pension - non-service costs.

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, income tax balances and investments in unconsolidated affiliates. Marine eliminations adjust for sales between the Marine Engine and Boat segments, primarily for the sale of engines and parts and accessories to various boat brands, which are consummated at established arm’s length transfer prices as the intersegment pricing for these engines and parts and accessories are based upon and consistent with selling prices to the Company's third party customers.

Information about the operations of Brunswick's operating segments is set forth below:

Operating Segments
 
Net Sales
 
Operating Earnings (Loss)
 
Total Assets (A)
(in millions)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
 
2015
 
2014
Marine Engine
$
2,314.3

 
$
2,189.4

 
$
2,088.1

 
$
350.4

 
$
309.1

 
$
284.2

 
$
981.8

 
$
908.3

Boat
1,274.6

 
1,135.8

 
1,032.0

 
37.6

 
17.2

 
(21.8
)
 
379.7

 
376.5

Marine eliminations
(277.8
)
 
(255.8
)
 
(236.4
)
 
—

 
—

 
—

 
—

 
—

Total Marine
3,311.1

 
3,069.4

 
2,883.7

 
388.0

 
326.3

 
262.4

 
1,361.5

 
1,284.8

Fitness
794.6

 
769.3

 
716.0

 
116.5

 
115.3

 
108.1

 
625.1

 
578.4

Pension - non-service costs
—

 
—

 
—

 
(94.0
)
 
(42.7
)
 
(18.7
)
 
—

 
—

Corporate/Other
—

 
—

 
—

 
(78.8
)
 
(70.4
)
 
(70.0
)
 
1,165.9

 
1,224.7

Total
$
4,105.7

 
$
3,838.7

 
$
3,599.7

 
$
331.7

 
$
328.5

 
$
281.8

 
$
3,152.5

 
$
3,087.9


(A) For 2014, total assets reported on the Consolidated Balance Sheets includes $30.0 million of current assets held for sale and $12.6 million of long-term assets held for sale.
 
Depreciation
 
Amortization
(in millions)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Marine Engine
$
47.4

 
$
44.3

 
$
40.0

 
$
2.1

 
$
2.2

 
$
1.9

Boat
26.6

 
24.9

 
21.2

 
0.7

 
0.7

 
0.8

Fitness
9.1

 
6.9

 
6.0

 
0.2

 
—

 
—

Corporate/Other
2.8

 
2.2

 
1.5

 
—

 
—

 
—

Total
$
85.9

 
$
78.3

 
$
68.7

 
$
3.0

 
$
2.9

 
$
2.7


 
Capital Expenditures
 
Research & Development Expense
(in millions)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Marine Engine
$
77.4

 
$
57.9

 
$
77.0

 
$
78.9

 
$
72.5

 
$
70.6

Boat
37.7

 
46.6

 
39.7

 
22.3

 
23.8

 
22.4

Fitness
16.9

 
19.6

 
8.4

 
24.7

 
23.3

 
21.8

Corporate/Other
0.5

 
0.7

 
1.4

 
—

 
—

 
—

Total
$
132.5

 
$
124.8

 
$
126.5

 
$
125.9

 
$
119.6

 
$
114.8



Geographic Segments
 
Net Sales
 
Long-Lived Assets
(in millions)
2015
 
2014
 
2013
 
2015
 
2014
United States
$
2,727.8

 
$
2,400.0

 
$
2,214.6

 
$
429.3

 
$
367.5

International
1,377.9

 
1,438.7

 
1,385.1

 
62.7

 
72.9

Corporate/Other
—

 
—

 
—

 
13.2

 
19.9

Total
$
4,105.7

 
$
3,838.7

 
$
3,599.7

 
$
505.2

 
$
460.3