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Separate Financial Information Of Subsidiary Guarantor Of Indebtedness (Notes)
3 Months Ended
Oct. 02, 2011
Separate Financial Information Of Subsidiary Guarantors Of Indebtedness 
Separate Financial Information Of Subsidiary Guarantor Of Indebtedness
Separate Financial Information of Subsidiary Guarantor of Indebtedness

Under the terms of the Company’s Senior Notes and the Revolver (collectively, the “Domestic Indebtedness”), Briggs & Stratton Power Products Group, LLC, a 100% owned subsidiary of the Company, is the joint and several guarantor of the Domestic Indebtedness (the “Guarantor”). The guarantees are full and unconditional guarantees, except for certain customary limitations. Additionally, if at any time a domestic subsidiary of the Company constitutes a significant domestic subsidiary, then such domestic subsidiary will also become a guarantor of the Domestic Indebtedness. Currently, all of the Domestic Indebtedness is unsecured. If the Company were to fail to make a payment of interest or principal on its due date, the Guarantor is obligated to pay the outstanding Domestic Indebtedness. The Company had the following outstanding amounts related to the guaranteed debt (in thousands):
 
 
October 2, 2011
Carrying Amount
 
Maximum
Guarantee
6.875% Senior Notes
 
$
225,000

 
$
225,000

Revolving Credit Facility
 
$
—

 
$
500,000



The following condensed supplemental consolidating financial information reflects the summarized financial information of the Company, its Guarantor and Non-Guarantor Subsidiaries (in thousands):
 
BALANCE SHEET
As of October 2, 2011
(Unaudited)
 
 
Briggs &
Stratton
Corporation
 
Guarantor
Subsidiary
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Current Assets
 
$
493,613

 
$
349,468

 
$
242,124

 
$
(150,432
)
 
$
934,773

Investment in Subsidiaries
 
612,066

 
—

 
—

 
(612,066
)
 
—

Non-Current Assets
 
445,944

 
225,495

 
46,814

 
(34,734
)
 
683,519

 
 
$
1,551,623

 
$
574,963

 
$
288,938

 
$
(797,232
)
 
$
1,618,292

 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
284,254

 
$
78,033

 
$
92,618

 
$
(135,229
)
 
$
319,676

Other Long-Term Obligations
 
546,844

 
30,066

 
51,118

 
(49,937
)
 
578,091

Shareholders’ Investment
 
720,525

 
466,864

 
145,202

 
(612,066
)
 
720,525

 
 
$
1,551,623

 
$
574,963

 
$
288,938

 
$
(797,232
)
 
$
1,618,292


BALANCE SHEET
As of July 3, 2011
 
 
Briggs &
Stratton
Corporation
 
Guarantor
Subsidiary
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Current Assets
 
$
519,783

 
$
343,266

 
$
244,473

 
$
(138,858
)
 
$
968,664

Investment in Subsidiaries
 
617,553

 
—

 
—

 
(617,553
)
 
—

Non-Current Assets
 
455,876

 
229,054

 
50,692

 
(38,068
)
 
697,554

 
 
$
1,593,212

 
$
572,320

 
$
295,165

 
$
(794,479
)
 
$
1,666,218

 
 
 
 
 
 
 
 
 
 
 
Current Liabilities
 
$
292,908

 
$
88,888

 
$
95,044

 
$
(132,457
)
 
$
344,383

Other Long-Term Obligations
 
562,361

 
20,988

 
45,012

 
(44,469
)
 
583,892

Shareholders’ Investment
 
737,943

 
462,444

 
155,109

 
(617,553
)
 
737,943

 
 
$
1,593,212

 
$
572,320

 
$
295,165

 
$
(794,479
)
 
$
1,666,218



STATEMENT OF OPERATIONS
For the Three Months Ended October 2, 2011
(Unaudited)
 
 
 
Briggs &
Stratton
Corporation
 
Guarantor
Subsidiary
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Sales
 
$
194,082

 
$
210,567

 
$
71,480

 
$
(78,832
)
 
$
397,297

Cost of Goods Sold
 
160,882

 
188,010

 
61,183

 
(78,832
)
 
331,243

Gross Profit
 
33,200

 
22,557

 
10,297

 
—

 
66,054

Engineering, Selling, General and Administrative Expenses
 
37,113

 
18,152

 
12,412

 
—

 
67,677

Equity in Loss from Subsidiaries
 
2,187

 
—

 
—

 
(2,187
)
 
—

Income (Loss) from Operations
 
(6,100
)
 
4,405

 
(2,115
)
 
2,187

 
(1,623
)
Interest Expense
 
(4,303
)
 
(12
)
 
(23
)
 
—

 
(4,338
)
Other Income, Net
 
1,478

 
92

 
224

 
—

 
1,794

Income (Loss) before Income Taxes
 
(8,925
)
 
4,485

 
(1,914
)
 
2,187

 
(4,167
)
Provision (Credit) for Income Taxes
 
(3,705
)
 
3,601

 
1,157

 
—

 
1,053

Net Income (Loss)
 
$
(5,220
)
 
$
884

 
$
(3,071
)
 
$
2,187

 
$
(5,220
)
STATEMENT OF OPERATIONS
For the Three Months Ended September 26, 2010
(Unaudited)
 
 
 
Briggs &
Stratton
Corporation
 
Guarantor
Subsidiary
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Sales
 
$
192,692

 
$
150,472

 
$
70,109

 
$
(79,157
)
 
$
334,116

Cost of Goods Sold
 
156,572

 
137,958

 
56,749

 
(79,157
)
 
272,122

Gross Profit
 
36,120

 
12,514

 
13,360

 
—

 
61,994

Engineering, Selling, General and Administrative Expenses
 
42,456

 
17,345

 
10,655

 
—

 
70,456

Equity in Loss from Subsidiaries
 
802

 
—

 
—

 
(802
)
 
—

Income (Loss) from Operations
 
(7,138
)
 
(4,831
)
 
2,705

 
802

 
(8,462
)
Interest Expense
 
(5,104
)
 
(20
)
 
(33
)
 
—

 
(5,157
)
Other Income (Expense), Net
 
1,044

 
138

 
253

 
—

 
1,435

Income (Loss) before Income Taxes
 
(11,198
)
 
(4,713
)
 
2,925

 
802

 
(12,184
)
Provision (Credit) for Income Taxes
 
(3,084
)
 
(1,645
)
 
659

 


 
(4,070
)
Net Income (Loss)
 
$
(8,114
)
 
$
(3,068
)
 
$
2,266

 
$
802

 
$
(8,114
)


STATEMENT OF CASH FLOWS
For the Three Months Ended October 2, 2011
(Unaudited)
 
 
 
Briggs &
Stratton
Corporation
 
Guarantor
Subsidiary
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Cash Used in Operating Activities
 
$
(39,797
)
 
$
(6,197
)
 
$
(19,080
)
 
$
8,803

 
$
(56,271
)
Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
 
Additions to Plant and Equipment
 
(9,044
)
 
(505
)
 
(681
)
 
—

 
(10,230
)
Proceeds Received from Disposition of Plant and Equipment
 
33

 
44

 
3

 
—

 
80

Cash Investment in Subsidiary
 
—

 
—

 
213

 
(213
)
 
—

Net Cash Used in Investing Activities
 
(9,011
)
 
(461
)
 
(465
)
 
(213
)
 
(10,150
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
 
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt
 
(7,610
)
 
7,592

 
8,821

 
(8,803
)
 
—

Capital Contributions
 
—

 
—

 
(213
)
 
213

 
—

Treasury Stock Purchases
 
(3,118
)
 
—

 
—

 
—

 
(3,118
)
Net Cash Provided by (Used in) Financing Activities
 
(10,728
)
 
7,592

 
8,608

 
(8,590
)
 
(3,118
)
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents
 
—

 
—

 
(1,856
)
 
—

 
(1,856
)
Net Increase (Decrease) in Cash and Cash Equivalents
 
(59,536
)
 
934

 
(12,793
)
 
—

 
(71,395
)
Cash and Cash Equivalents, Beginning
 
158,672

 
1,372

 
49,595

 
—

 
209,639

Cash and Cash Equivalents, Ending
 
$
99,136

 
$
2,306

 
$
36,802

 
$
—

 
$
138,244


STATEMENT OF CASH FLOWS
For the Three Months Ended September 26, 2010
(Unaudited)
 
 
 
Briggs &
Stratton
Corporation
 
Guarantor
Subsidiary
 
Non-
Guarantor
Subsidiaries
 
Eliminations
 
Consolidated
Net Cash Provided by (Used in) Operating Activities
 
$
(44,152
)
 
$
(20,984
)
 
$
18,662

 
$
(9,013
)
 
$
(55,487
)
Cash Flows from Investing Activities:
 
 
 
 
 
 
 
 
 
 
Additions to Plant and Equipment
 
(7,078
)
 
(2,049
)
 
(264
)
 
—

 
(9,391
)
Proceeds Received from Disposition of Plant and Equipment
 
8

 
25

 
—

 
—

 
33

Cash Investment in Subsidiary
 
(92
)
 
—

 
—

 
92

 
—

Net Cash Used in Investing Activities
 
(7,162
)
 
(2,024
)
 
(264
)
 
92

 
(9,358
)
Cash Flows from Financing Activities:
 
 
 
 
 
 
 
 
 
 
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt
 
(36,218
)
 
23,141

 
1,564

 
9,013

 
(2,500
)
Capital Contributions
 
—

 
—

 
92

 
(92
)
 
—

Net Cash Provided by (Used in) Financing Activities
 
(36,218
)
 
23,141

 
1,656

 
8,921

 
(2,500
)
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents
 
—

 
—

 
(1,516
)
 
—

 
(1,516
)
Net Increase (Decrease) in Cash and Cash Equivalents
 
(87,532
)
 
133

 
18,538

 
—

 
(68,861
)
Cash and Cash Equivalents, Beginning
 
100,880

 
3,675

 
11,999

 
—

 
116,554

Cash and Cash Equivalents, Ending
 
$
13,348

 
$
3,808

 
$
30,537

 
$
—

 
$
47,693