Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

v3.10.0.1
Consolidated Statements of Cash Flows
$ in Millions
 12 Months Ended
Dec. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Cash Flows From Operating Activities      
Net Earnings $ 265.3 $ 146.4 [1],[2],[3],[4],[5] $ 276.0
Less: Earnings from Discontinued Operations, Net of Tax (2.2) 0.0 (1.6)
Net Earnings from Continuing Operations 263.1 [1],[2],[3],[4],[6],[7],[8] 146.4 274.4
Depreciation and Amortization 149.6 110.8 103.9
Stock Compensation Expense 19.2 18.3 16.1
Pension Expense Including Settlement Charges, Net of (Funding) (156.1) 32.2 (4.8)
Asset Impairment Charges 59.1 54.7 2.4
Deferred Income Taxes 25.1 104.2 62.5
Changes in Certain Current Assets and Current Liabilities      
Change in Accounts and Notes Receivable (27.3) (57.2) (1.1)
Change in Inventory (84.2) (69.7) (48.2)
Change in Prepaid Expenses and Other, Excluding Income Taxes (8.6) 4.4 0.5
Change in Accounts Payable 49.3 31.0 39.2
Change in Accrued Expenses 13.7 47.1 (20.8)
Long-Term Extended Warranty Contracts and Other Deferred Revenue 15.1 17.1 10.3
Fitness Business Separation Costs 19.3 0.0 0.0
Cash Paid for Fitness Business Separation Costs (12.7) 0.0 0.0
Income Taxes 12.3 (43.1) 20.2
Other, Net 0.1 5.4 (15.5)
Net Cash Provided by Operating Activities of Continuing Operations 337.0 401.6 439.1
Net Cash Used for Operating Activities of Discontinued Operations 0.0 (1.3) (3.8)
Net Cash Provided by Operating Activities 337.0 400.3 435.3
Cash Flows from Investing Activities      
Capital Expenditures (193.4) (203.2) (193.9)
Purchases of Marketable Securities 0.0 0.0 (35.0)
Sales or Maturities of Marketable Securities 0.0 35.0 10.7
Investments (10.8) (3.2) 5.1
Acquisition of Businesses, Net of Cash Acquired (909.6) (15.5) (276.1)
Proceeds from the Sale of Property, Plant and Equipment 6.7 8.5 1.9
Other, net (0.2) (0.5) 1.3
Net Cash Used for Investing Activities (1,107.3) (178.9) (486.0)
Cash Flows from Financing Activities      
Net Proceeds From Issuances of Short-Term Debt 298.9 0.0 0.0
Repayment of Short-Term Debt (300.0) 0.0 0.0
Net Proceeds from Issuances of Long-Term Debt 794.6 0.0 1.0
Payments of Long-Term Debt Including Current Maturities (12.6) (4.5) (3.2)
Common Stock Repurchases (75.0) (130.0) (120.3)
Cash Dividends Paid (67.8) (60.6) (55.4)
Proceeds from Share-Based Compensation Activity 1.4 6.2 14.9
Tax Witholding Associated with Shares Issued for Share-Based Compensation (12.5) (14.8) (20.9)
Other, Net (6.5) 0.0 (1.9)
Net Cash Used for Financing Activities 620.5 (203.7) (185.8)
Effect of Exchange Rate Changes (5.0) 6.9 0.1
Net Increase (Decrease) in Cash and Cash Equivalents and Restricted Cash (154.8) 24.6 (236.4)
Cash and Cash Equivalents and Restricted Cash at Beginning of Period 458.2 433.6 670.0
Cash and Cash Equivalents and Restricted Cash at End of Period 303.4 458.2 433.6
Less: Restricted Cash 9.0 9.4 11.2
Cash and Cash Equivalents at End of Period 294.4 448.8 422.4
Supplemental Cash Flow Disclosures:      
Interest Paid 46.8 33.0 30.1
Income Taxes Paid, Net $ 21.7 $ 73.5 $ 32.6
[1] (A) In the second quarter of 2018, the Company announced its intention to wind down Sport Yacht & Yacht operations. During the first, second, third and fourth quarters and the full-year of 2018, Sport Yacht & Yacht operations had operating losses of $8.1 million, $27.4 million, $11.9 million, $11.0 million and $58.4 million, respectively, consisting of $15.1 million, $19.9 million, $9.0 million, $5.4 million and $49.4 million, respectively, of Net sales; $18.7 million, $43.1 million, $17.3 million, $10.0 million, $89.1 million of Cost of sales (COS); and $4.5 million, $4.2 million, $3.6 million, $6.4 million and $18.7 million, respectively, of Selling, general and administrative expense (SG&A). During the first, second, third and fourth quarters and the full-year of 2017, Sport Yacht & Yacht operations had operating losses of $8.0 million, $3.4 million, $9.8 million, $10.7 million and $31.9 million, respectively, consisting of $38.9 million, $53.1 million, $21.3 million, $38.3 million and $151.6 million, respectively, of Net sales; $41.0 million, $52.5 million, $26.3 million, $44.2 million, $164.0 million of Cost of sales (COS); and $5.9 million, $4.0 million, $4.8 million, $4.8 million and $19.5 million, respectively, of Selling, general and administrative expense (SG&A).
[2] (D) During the second, third and fourth quarters and the full-year of 2018, the Company's Fitness segment recorded $1.6 million, $3.8 million, $6.4 million and $11.8 million of unusual charges. The charges in the second quarter consisted of $1.6 million within COS for a product field campaign. The charges in the third quarter consisted of $3.8 million within SG&A related to a contract dispute. The charges in the fourth quarter consisted of $3.1 million within COS related to the settlement of supplier obligations, $2.8 million within SG&A associated with the delayed submission of foreign import duty filings, $0.7 million within COS for a product field campaign and $(0.2) million within SG&A related to the contract dispute. In the fourth quarter of 2017, the Company's Fitness segment recorded $8.4 million and $5.1 million within COS and SG&A, respectively, related to field campaigns pertaining to certain Cybex products designed prior to the acquisition. Refer to Note 14 – Commitments and Contingencies for further details.
[3] (E) Restructuring, exit, integration and impairment charges are discussed in Note 4 – Restructuring, Exit, Integration and Impairment Activities.
[4] (H) Net earnings (loss) includes the tax impacts of the items discussed in the aforementioned footnotes, as well as special tax items. During the first, second, third and fourth quarters and the full-year of 2018, special tax items were a net charge (benefit) of $6.7 million, $(1.0) million, $(10.4) million, $0.6 million and $(4.1) million, respectively. During the first, second, third and fourth quarters and the full-year of 2017, special tax items were a net charge (benefit) of $(0.5) million, $(0.2) million, $(0.7) million, $71.1 million and $69.7 million, respectively.
[5] (I) Pension settlement charges are discussed in Note 18 – Postretirement Benefits.
[6] (C) In the third quarter of 2018, the Company acquired Power Products – Global Marine & Mobile. During the second, third and fourth quarters and full-year of 2018, the Company recorded acquisition-related costs from transaction costs of $2.5 million, $10.5 million, $0.8 million and $13.8 million, respectively, within SG&A; $5.1 million of Transaction financing charges during the third quarter and full-year of 2018, respectively, and $9.4 million, $11.8 million and $21.2 million of purchase accounting amortization during the third and fourth quarters and full-year of 2018, respectively; During the third and fourth quarters and full-year of 2018, the purchase accounting amortization reflected $4.8 million, $7.2 million and $12.0 million within SG&A, respectively, and $4.6 million, $4.6 million and $9.2 million within COS, respectively. Refer to Note 5 – Acquisitions for further details.
[7] (F) During the first, second, third and fourth quarters and the full-year of 2018, the Company recorded $1.7 million, $2.5 million, $8.7 million, $6.4 million and $19.3 million of charges within SG&A related to the planned Fitness business separation.
[8] (G) In the fourth quarter of 2018, the Company sold its non-controlling interest in a marine joint venture and recorded a gain of $2.3 million within Equity earnings.