Quarterly report pursuant to Section 13 or 15(d)

Commitments and Contingencies

v3.19.2
Commitments and Contingencies
 6 Months Ended
Jun. 29, 2019
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
 
Legal

On May 31, 2019, the United States Court of Appeals for the Federal Circuit issued its opinion in the matter of Cobalt Boats, LLC vs. Brunswick. That opinion reversed, in its entirety, an October 31, 2017 judgment on a jury verdict against Brunswick of $5.4 million plus attorneys’ fees of $2.5 million and applicable interest which was entered by the US District for the Eastern District of Virginia. The Court of Appeals found Brunswick did not infringe the Cobalt patent and that Brunswick was entitled to judgment of non-infringement as a matter of law. The parties have agreed there would be no further appeals.

There were no other material changes during the three and six months ended June 29, 2019 to the financial commitments or the legal and environmental contingencies that were discussed in Note 14 in the Notes to Consolidated Financial Statements in the 2018 Form 10-K. 

Product Warranties

The following activity related to product warranty liabilities was recorded in Accrued expenses during the six months ended June 29, 2019 and June 30, 2018:
(in millions)
June 29,
2019
 
June 30,
2018
Balance at beginning of period
$
116.8

 
$
101.7

Payments made
(35.0
)
 
(27.6
)
Provisions/additions for contracts issued/sold
32.1

 
32.0

Aggregate changes for preexisting warranties
1.0

 
6.0

Foreign Currency Translation
0.2

 
(0.7
)
Warranty liability retained from discontinued operations (A)
7.1

 
—

Other
0.1

 
0.3

Balance at end of period
$
122.3

 
$
111.7



(A) The Company retained a $7.1 million warranty liability from the sale of its Fitness business. The warranty liability pertains to product field campaigns for certain Cybex products designed prior to the Cybex acquisition.

Extended Warranties

The following activity related to deferred revenue for extended product warranty contracts was recorded in Accrued expenses and Other long-term liabilities during the six months ended June 29, 2019 and June 30, 2018:
(in millions)
June 29,
2019
 
June 30,
2018
Balance at beginning of period
$
66.4

 
$
56.9

Extended warranty contracts sold
13.9

 
13.0

Revenue recognized on existing extended warranty contracts
(7.3
)
 
(5.8
)
Foreign currency translation
0.2

 
(0.2
)
Other
(0.1
)
 
(0.1
)
Balance at end of period
$
73.1

 
$
63.8