Quarterly report pursuant to Section 13 or 15(d)

Financial Services (Tables)

v2.4.0.8
Financial Services (Tables)
 6 Months Ended
Jun. 28, 2014
Financial Services [Abstract]  
Maximum loss exposure related to joint venture
The Company’s maximum loss exposure relating to BAC is detailed as follows:
(in millions)
June 28,
2014
 
December 31,
2013
 
June 29,
2013
Investment
$
12.2

 
$
11.2

 
$
11.5

Repurchase and recourse obligations (A)
37.3

 
37.0

 
37.0

Liabilities (B)
(1.8
)
 
(1.4
)
 
(1.3
)
Total maximum loss exposure
$
47.7

 
$
46.8

 
$
47.2


(A)
Repurchase and recourse obligations are off-balance sheet obligations provided by the Company for the Boat and Marine Engine segments, respectively, and are included within the Maximum Potential Obligations disclosed in Note 9 – Commitments and Contingencies.  Repurchase and recourse obligations are mainly related to a North American repurchase agreement with GECDF and could be reduced by repurchase activity occurring under other similar agreements with GECDF and affiliates.  The Company’s risk under these repurchase arrangements is partially mitigated by the value of the products repurchased as part of the transaction.  Amounts above exclude any potential recoveries from the value of the repurchased product. Amounts previously reported of $51.8 million and $52.7 million as of December 31, 2013 and June 29, 2013, respectively, reflect repurchase and recourse obligations under the Company's global repurchase agreement that was replaced in 2013 with the North American repurchase agreement described above.

(B)
Represents accrued amounts for potential losses related to recourse exposure and the Company’s expected losses on obligations to repurchase products, after giving effect to proceeds anticipated to be received from the resale of these products to alternative dealers.