Quarterly report pursuant to Section 13 or 15(d)

Segment Data

v2.4.0.8
Segment Data
 9 Months Ended
Sep. 27, 2014
Segment Reporting [Abstract]  
Segment Data
Note 11 – Segment Data

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

As discussed in Note 2 – Discontinued Operations, during the third quarter of 2014, the Company began reporting its retail bowling and bowling products businesses as discontinued operations. These businesses were previously reported in the former Bowling & Billiards segment. Additionally, the results of the billiards business are being reported in the Company's Fitness segment for all periods presented.
 
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, 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, the Company allocates only service-related costs to the operating segment results and reports all other components of pension expense, such as Interest cost, Expected return on plan assets and Amortization of net actuarial losses, 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 to various boat brands, which are consummated at established arm’s length transfer prices as the intersegment pricing for these engines are based upon and consistent with selling prices to the Company's third party customers.

Operating Segments

The following table sets forth net sales and operating earnings (loss) of each of the Company's operating segments, which are also the Company's reportable segments, for the three months ended September 27, 2014 and September 28, 2013:
 
Net Sales
 
Operating Earnings (Loss)
 
Three Months Ended
 
Three Months Ended
(in millions)
September 27,
2014
 
September 28,
2013
 
September 27,
2014
 
September 28,
2013
Marine Engine
$
566.9

 
$
511.1

 
$
93.3

 
$
75.2

Boat
234.6

 
191.7

 
(7.0
)
 
(16.9
)
Marine eliminations
(58.4
)
 
(49.1
)
 
—

 
—

Total Marine
743.1

 
653.7

 
86.3

 
58.3

Fitness
189.0

 
170.7

 
25.8

 
25.3

Pension - non-service costs
—

 
—

 
(3.7
)
 
(4.6
)
Corporate/Other
—

 
—

 
(14.7
)
 
(16.3
)
Total
$
932.1

 
$
824.4

 
$
93.7

 
$
62.7


The following table sets forth net sales and operating earnings (loss) of each of the Company's operating segments, which are also the Company's reportable segments, for the nine months ended September 27, 2014 and September 28, 2013:
 
Net Sales
 
Operating Earnings (Loss)
 
Nine Months Ended
 
Nine Months Ended
(in millions)
September 27,
2014
 
September 28,
2013
 
September 27,
2014
 
September 28,
2013
Marine Engine
$
1,724.4

 
$
1,664.6

 
$
277.5

 
$
266.1

Boat
841.5

 
792.3

 
21.3

 
0.1

Marine eliminations
(200.1
)
 
(182.8
)
 
—

 
—

Total Marine
2,365.8

 
2,274.1

 
298.8

 
266.2

Fitness
534.3

 
498.8

 
74.5

 
71.5

Pension - non-service costs
—

 
—

 
(11.1
)
 
(14.1
)
Corporate/Other
—

 
—

 
(48.3
)
 
(49.9
)
Total
$
2,900.1

 
$
2,772.9

 
$
313.9

 
$
273.7


 
The following table sets forth total assets of each of the Company's reportable segments:
 
Total Assets
(in millions)
September 27,
2014
 
December 31,
2013
 
September 28,
2013
Marine Engine
$
925.6

 
$
803.6

 
$
809.9

Boat
376.1

 
330.3

 
338.9

     Total Marine
1,301.7

 
1,133.9

 
1,148.8

Fitness
574.8

 
560.7

 
549.5

Corporate/Other
1,140.3

 
980.1

 
470.4

Total
$
3,016.8

 
$
2,674.7

 
$
2,168.7