-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LxYOZUcmB696sOvxkeYHTp91WnAtT8BRNbmcQpPvt4qFrTMj2HqF1eFDo8hN7Yl1 8eYFU3jQgG0Cmk9G2YJ49A== 0000014930-06-000079.txt : 20060501 0000014930-06-000079.hdr.sgml : 20060501 20060501120013 ACCESSION NUMBER: 0000014930-06-000079 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20060427 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20060501 DATE AS OF CHANGE: 20060501 FILER: COMPANY DATA: COMPANY CONFORMED NAME: BRUNSWICK CORP CENTRAL INDEX KEY: 0000014930 STANDARD INDUSTRIAL CLASSIFICATION: ENGINES & TURBINES [3510] IRS NUMBER: 360848180 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-01043 FILM NUMBER: 06793396 BUSINESS ADDRESS: STREET 1: ONE N FIELD CT STREET 2: C/O KRISTIN COLEMAN CITY: LAKE FOREST STATE: IL ZIP: 60045-4811 BUSINESS PHONE: 8477354700 MAIL ADDRESS: STREET 1: ONE N FIELD CT CITY: LAKE FOREST STATE: IL ZIP: 60045-4811 FORMER COMPANY: FORMER CONFORMED NAME: BRUNSWICK BALKE COLLENDER CO DATE OF NAME CHANGE: 19660919 8-K/A 1 form8_ka.htm FORM 8-K/A Form 8-K/A
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549

________________________

FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of report (Date of earliest event reported): April 27, 2006

BRUNSWICK CORPORATION

(Exact Name of Registrant Specified in Charter)

 
Delaware
  
001-01043
  
36-0848180
(State or Other
Jurisdiction of
Incorporation)
  
(Commission File
Number)
  
(I.R.S. Employer
Identification No.)
 


1 N. Field Court
Lake Forest, Illinois
  
 
60045-4811
(Address of Principal Executive Offices)
  
(Zip Code)

Registrant’s telephone number, including area code: (847) 735-4700

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
 
[ ]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a- 12)
[ ]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240, 14d-2(b))
[ ]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240, 13e-4(c))






ITEM 2.02 Results of Operations and Financial Condition.

This Form 8-K/A is being filed for the purposes of providing financial information that supplements the information provided in a Form 8-K filed by Brunswick Corporation (Brunswick) on April 27, 2006, and to correct an error in the Comparative Consolidated Condensed Statements of Cash Flows in the financial statements provided with the news release furnished with that Form 8-K.

In its Form 8-K filed on April 27, 2006, Brunswick announced its decision to sell substantially all of its Brunswick New Technologies (BNT) business unit. Exhibit 99.1 to this Form 8-K/A provides unaudited comparative consolidated condensed statements of income, balance sheets, cash flows and selected segment information for quarterly periods in 2006, 2005, 2004 and 2003, excluding the results of BNT (the “Supplemental Financial Information”). The Supplemental Financial Information has been prepared utilizing non-GAAP financial information to illustrate how Brunswick’s financial statements would have appeared had the decision to sell BNT been made prior to March 31, 2006. Brunswick believes that the pro forma (non-GAAP) numbers, excluding the results of BNT, are more representative of the financial performance of its ongoing financial operations.

For purposes of SEC Regulation G, a “non-GAAP financial measure” is a numerical measure of a registrant’s historical or future financial performance, financial position or cash flows that excludes amounts, or is subject to adjustments that have the effect of excluding amounts, that are included in the most directly comparable measure calculated and presented in accordance with GAAP in the statement of income, balance sheet or cash flows of the issuer; or includes amounts, or is subject to adjustments that have the effect of including amounts, that are excluded from the most directly comparable measure so calculated and presented. Operating and statistical measures and certain ratios and other statistical measures are not non-GAAP financial measures. GAAP refers to generally accepted accounting principles in the United States.

Previously, all of the BNT businesses were included in the Marine Engine segment. Although substantially all of the businesses are being held for sale, some minor businesses will be retained in the Boat, Marine Engine and Fitness segments. Information for the Bowling & Billiards segment is not affected by the decision to sell BNT. In accordance with Statement of Financial Accounting Standards No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, as the decision to sell substantially all of its BNT business unit was made in the second quarter, the company will formally disaggregate its financial statements to account for this decision in the Quarterly Report on Form 10-Q that it will file for the second quarter of 2006.

In the Form 8-K filed on April 27, 2006, on the page in the news release containing the Comparative Consolidated Condensed Statements of Cash Flows, the Company provided non-GAAP supplemental information on “Free Cash Flow.” For the three months ended March 31, 2005, the “Other, net” and "Total Free Cash Flow" amounts in this supplemental data were incorrect. Corrected Comparative Consolidated Condensed Statements of Cash Flows are included as Exhibit 99.2 to this Form 8-K/A. This Form 8-K/A does not change or update any other previously reported financial statements or disclosures of Brunswick Corporation contained in the original Form 8-K.

Both the Supplemental Financial Information and the corrected cash flow statement include the use of the non-GAAP financial measure “free cash flow.” Brunswick’s management believes that the financial measure “free cash flow” is useful to investors because it is an indication of cash flow that may be available for investment in future growth initiatives. Brunswick defines free cash flow as cash flow from operating and investing activities (excluding cash used for acquisitions and investments), excluding financing activities for continuing operations. Brunswick’s management believes that this measure is useful to investors because it permits investors to view Brunswick’s performance using the same tools that Brunswick uses and to better evaluate Brunswick’s ongoing business performance.
 
Brunswick has used some of the financial measures that are included in the Supplemental Financial Information and the cash flow statements for several years, both in presenting its results to stockholders and the investment community and in its internal evaluation and management of its businesses. Brunswick’s management believes that these measures (including those that are “non-GAAP financial measures”) and the information they provide are useful to investors because they permit investors to view Brunswick’s performance using the same tools that Brunswick uses and to better evaluate Brunswick’s ongoing business performance.

The information in this report and the exhibit attached hereto shall not be deemed to be “filed” for purposes of Section 18 of the Securities and Exchange Act of 1934, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
 

ITEM 9.01 Financial Statements and Exhibits.

(c) Exhibits:

Exhibit No.
Description of Exhibit
99.1
 
99.2
 
 
Supplemental Financial Information.
 
Comparative Consolidated Condensed Statements of Cash Flows for the three month periods ended March 31, 2006 and 2005.
 
 


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
     
  BRUNSWICK CORPORATION
 
 		  
 		  
 
Dated: May 1, 2006 By:   /s/ ALAN L. LOWE
  Name: Alan L. Lowe
  Title: Vice President and Controller

 


EXHIBIT INDEX:

Exhibit No.
Description of Exhibit
99.1
 
99.2
 
 
Supplemental Financial Information.
 
Comparative Consolidated Condensed Statements of Cash Flows for the three month periods ended March 31, 2006 and 2005.

EX-99.1 2 exhibit99_1.htm SUPPLEMENTAL FINANCIAL INFORMATION Supplemental Financial Information
Exhibit 99.1

Brunswick Corporation
                                              
Non-GAAP Financial Information
                                              
Quarterly Consolidated Statements of Income
                                              
(in millions, except per share data)
                                              
(unaudited)
                                              
   
2006
  
2005
  
2004
  
2003
  
   
Q1
  
Q1
  
Q2
  
Q3
  
Q4
  
Q1
  
Q2
  
Q3
  
Q4
  
Q1
  
Q2
  
Q3
  
Q4
  
                                                       
Net sales
  
$
1,413.3
  
$
1,342.5
  
$
1,531.6
  
$
1,351.1
  
$
1,381.7
  
$
1,166.5
  
$
1,382.9
  
$
1,229.7
  
$
1,279.0
  
$
930.4
  
$
1,067.5
  
$
1,010.1
  
$
1,055.6
  
Cost of sales
    
1,099.9
   
1,021.3
   
1,145.0
   
1,045.6
   
1,073.4
   
881.9
   
1,030.0
   
928.6
   
969.1
   
722.9
   
804.8
   
764.3
   
797.8
 
Selling, general and administrative expense
   
184.7
   
192.5
   
187.9
   
173.3
   
175.7
   
176.1
   
188.8
   
176.1
   
195.9
   
141.6
   
147.8
   
155.9
   
168.3
 
Research and development expense
    
30.5
   
29.9
   
30.5
   
30.1
   
33.0
   
29.9
   
26.5
   
27.4
   
33.0
   
27.0
   
26.8
   
27.5
   
30.3
 
Litigation charge
    
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
25.0
   
-
   
-
   
-
 
Operating earnings
    
98.2
   
98.8
   
168.2
   
102.1
   
99.6
   
78.6
   
137.6
   
97.6
   
81.0
   
13.9
   
88.1
   
62.4
   
59.2
 
Equity earnings
    
5.2
   
5.0
   
5.6
   
3.3
   
4.2
   
3.3
   
5.5
   
3.5
   
5.8
   
2.2
   
0.8
   
3.9
   
3.0
 
Investment sale gain
    
-
   
38.7
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other income (expense), net
    
(0.2
)
  
(0.9
)
  
0.1
   
(0.2
)
  
(0.5
)
  
(2.5
)
  
(1.2
)
  
(0.9
)
  
0.1
   
(1.2
)
  
1.5
   
(1.7
)
  
1.5
 
Earnings before interest and income taxes
    
103.2
   
141.6
   
173.9
   
105.2
   
103.3
   
79.4
   
141.9
   
100.2
   
86.9
   
14.9
   
90.4
   
64.6
   
63.7
 
Interest expense
    
(13.6
)
  
(13.0
)
  
(13.1
)
  
(13.5
)
  
(13.6
)
  
(10.1
)
  
(10.4
)
  
(12.1
)
  
(12.6
)
  
(10.7
)
  
(10.1
)
  
(10.1
)
  
(10.1
)
Interest income
    
3.0
   
2.7
   
3.5
   
3.9
   
4.9
   
2.5
   
1.7
   
1.9
   
4.0
   
2.5
   
3.1
   
3.8
   
2.0
 
Earnings before income taxes
    
92.6
   
131.3
   
164.3
   
95.6
   
94.6
   
71.8
   
133.2
   
90.0
   
78.3
   
6.7
   
83.4
   
58.3
   
55.6
 
Income tax provision
    
18.5
   
37.3
   
53.3
   
13.1
   
11.0
   
23.9
   
44.7
   
19.2
   
21.7
   
2.4
   
29.3
   
20.8
   
14.5
 
Earnings from continuing operations
    
74.1
   
94.0
   
111.0
   
82.5
   
83.6
   
47.9
   
88.5
   
70.8
   
56.6
   
4.3
   
54.1
   
37.5
   
41.1
 
Earnings (loss) from discontinued operations, net of tax
    
(6.7
)
  
0.6
   
3.1
   
5.9
   
4.7
   
0.1
   
1.6
   
2.1
   
2.2
   
(0.5
)
  
(0.5
)
  
0.4
   
(1.2
)
                                                                                 
Net earnings
  
$
67.4
  $
94.6
  $
114.1
  $
88.4
  $
88.3
 
$
48.0
  $
90.1
  $
72.9
  $
58.8
  $
3.8
 
$
53.6
  $
37.9
 
$
39.9
 
                                                                                 
Earnings per common share                                                                              
Basic
                                                                                
Earnings from continuing operations
  
$
0.78
  
$
0.96
  
$
1.13
  
$
0.84
  
$
0.86
  
$
0.51
  
$
0.92
  
$
0.74
  
$
0.58
  
$
0.05
  
$
0.60
  
$
0.42
  
$
0.44
  
Earnings (loss) from discontinued operations
    
(0.07
)
  
0.01
   
0.03
   
0.06
   
0.05
   
- 
    
0.02
   
0.02
   
0.02
   
(0.01
)
  
(0.01
)
  
- 
    
(0.01
)
                                                                                 
Net earnings
  
$
0.71
  
$
0.97
  
$
1.16
  
$
0.90
  
$
0.91
  
$
0.51
  
$
0.94
  
$
0.76
  
$
0.60
  
$
0.04
  
$
0.59
  
$
0.42
  
$
0.43
  
                                                                                 
                                                                                 
Diluted
                                                                                
Earnings from continuing operations
  
$
0.77
  
$
0.95
  
$
1.12
  
$
0.83
  
$
0.85
  
$
0.50
  
$
0.91
  
$
0.73
  
$
0.57
  
$
0.05
  
$
0.60
  
$
0.41
  
$
0.44
  
Earnings (loss) from discontinued operations
    
(0.07
)
  
0.01
   
0.03
   
0.06
   
0.05
   
- 
    
0.02
   
0.02
   
0.02
   
(0.01
)
  
(0.01
)
  
- 
    
(0.01
)
                                                                                 
Net earnings
  
$
0.70
  
$
0.96
  
$
1.15
  
$
0.89
  
$
0.90
  
$
0.50
  
$
0.93
  
$
0.75
  
$
0.59
  
$
0.04
  
$
0.59
  
$
0.41
  
$
0.43
  
                                                                                 
                                                                                 
Weighted average number of shares used for computation of:
                                                                                
Basic earnings per share
    
95.6
   
97.7
   
98.0
   
98.1
   
96.7
   
93.7
   
95.4
   
96.2
   
97.2
   
90.6
   
90.8
   
91.2
   
92.2
 
Diluted earnings per share
    
96.6
   
99.0
   
99.2
   
99.3
   
97.8
   
95.6
   
97.2
   
97.7
   
98.8
   
90.6
   
91.3
   
92.3
   
93.5
 
                                                                                 
Effective tax rate
   
17.4
%
  
28.1
%
  
32.0
%
  
11.2
%
  
8.9
%
  
33.0
%
  
33.0
%
  
20.5
%
  
27.2
%
  
35.8
%
  
34.9
%
  
35.0
%
  
26.7
%
 
On April 27, 2006, the Company announced its intention to dispose of substantially all of the assets of Brunswick New Technologies. Accordingly, these financial statements have been prepared utilizing non-GAAP financial information to illustrate how the financial statements would have appeared had the decision been made prior to March 31, 2006. The Company believes that presenting these results excluding these businesses is more representative of the financial performance of its ongoing operations. The Company will formally disaggregate its financial statements in its Quarterly Report on Form 10-Q for the second quarter of 2006.
 
Page 1 of 5
Brunswick Corporation
                                            
Non-GAAP Financial Information
                                            
Year-To-Date Consolidated Statements of Income
                                            
(in millions, except per share data)
                                            
(unaudited)
                                            
   
2006
  
 2005
  
 2004
  
2003
  
   
Mar 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
                                                       
Net sales
  
$
1,413.3
  
$
1,342.5
  
$
2,874.1
  
$
4,225.2
  
$
5,606.9
  
$
1,166.5
  
$
2,549.4
  
$
3,779.1
  
$
5,058.1
  
$
930.4
  
$
1,997.9
  
$
3,008.0
  
$
4,063.6
  
Cost of sales
    
1,099.9
   
1,021.3
   
2,166.3
   
3,211.9
   
4,285.3
   
881.9
   
1,911.9
   
2,840.5
   
3,809.6
   
722.9
   
1,527.7
   
2,292.0
   
3,089.8
 
Selling, general and administrative expense
   
184.7
   
192.5
   
380.4
   
553.7
   
729.4
   
176.1
   
364.9
   
541.0
   
736.9
   
141.6
   
289.4
   
445.3
   
613.6
 
Research and development expense
    
30.5
   
29.9
   
60.4
   
90.5
   
123.5
   
29.9
   
56.4
   
83.8
   
116.8
   
27.0
   
53.8
   
81.3
   
111.6
 
Litigation charge
    
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
25.0
   
25.0
   
25.0
   
25.0
 
Operating earnings
    
98.2
   
98.8
   
267.0
   
369.1
   
468.7
   
78.6
   
216.2
   
313.8
   
394.8
   
13.9
   
102.0
   
164.4
   
223.6
 
Equity earnings
    
5.2
   
5.0
   
10.6
   
13.9
   
18.1
   
3.3
   
8.8
   
12.3
   
18.1
   
2.2
   
3.0
   
6.9
   
9.9
 
Investment sale gain
    
-
   
38.7
   
38.7
   
38.7
   
38.7
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other income (expense), net
    
(0.2
)
  
(0.9
)
  
(0.8
)
  
(1.0
)
  
(1.5
)
  
(2.5
)
  
(3.7
)
  
(4.6
)
  
(4.5
)
  
(1.2
)
  
0.3
   
(1.4
)
  
0.1
 
Earnings before interest and income taxes
    
103.2
   
141.6
   
315.5
   
420.7
   
524.0
   
79.4
   
221.3
   
321.5
   
408.4
   
14.9
   
105.3
   
169.9
   
233.6
 
Interest expense
    
(13.6
)
  
(13.0
)
  
(26.1
)
  
(39.6
)
  
(53.2
)
  
(10.1
)
  
(20.5
)
  
(32.6
)
  
(45.2
)
  
(10.7
)
  
(20.8
)
  
(30.9
)
  
(41.0
)
Interest income
    
3.0
   
2.7
   
6.2
   
10.1
   
15.0
   
2.5
   
4.2
   
6.1
   
10.1
   
2.5
   
5.6
   
9.4
   
11.4
 
Earnings before income taxes
    
92.6
   
131.3
   
295.6
   
391.2
   
485.8
   
71.8
   
205.0
   
295.0
   
373.3
   
6.7
   
90.1
   
148.4
   
204.0
 
Income tax provision
    
18.5
   
37.3
   
90.6
   
103.7
   
114.7
   
23.9
   
68.6
   
87.8
   
109.5
   
2.4
   
31.7
   
52.5
   
67.0
 
Earnings from continuing operations
    
74.1
   
94.0
   
205.0
   
287.5
   
371.1
   
47.9
   
136.4
   
207.2
   
263.8
   
4.3
   
58.4
   
95.9
   
137.0
 
Earnings (loss) from discontinued operations, net of tax
    
(6.7
)
  
0.6
   
3.7
   
9.6
   
14.3
   
0.1
   
1.7
   
3.8
   
6.0
   
(0.5
)
  
(1.0
)
  
(0.6
)
  
(1.8
)
                                                                                 
Net earnings
   $
67.4
  $
94.6
  $
208.7
  $
297.1
  $
385.4
  $
48.0
  $
138.1
  $
211.0
  $
269.8
  $
3.8
  $
57.4
  $
95.3
  $
135.2
 
                                                                                 
Earnings per common share                                                                                
Basic
                                                                                
Earnings from continuing operations
  
$
0.78
  
$
0.96
  
$
2.09
  
$
2.93
  
$
3.80
  
$
0.51
  
$
1.44
  
$
2.18
  
$
2.76
  
$
0.05
  
$
0.64
  
$
1.06
  
$
1.50
  
Earnings (loss) from discontinued operations
    
(0.07
)
  
0.01
   
0.04
   
0.10
   
0.15
   
- 
    
0.02
   
0.04
   
0.06
   
(0.01
)
  
(0.01
)
  
(0.01
)
  
(0.02
)
                                                                                 
Net earnings
  
$
0.71
  
$
0.97
  
$
2.13
  
$
3.03
  
$
3.95
  
$
0.51
  
$
1.46
  
$
2.22
  
$
2.82
  
$
0.04
  
$
0.63
  
$
1.05
  
$
1.48
  
                                                                                 
                                                                                 
Diluted
                                                                                
Earnings from continuing operations
  
$
0.77
  
$
0.95
  
$
2.07
  
$
2.90
  
$
3.76
  
$
0.50
  
$
1.41
  
$
2.14
  
$
2.71
  
$
0.05
  
$
0.64
  
$
1.05
  
$
1.49
  
Earnings (loss) from discontinued operations
    
(0.07
)
  
0.01
   
0.04
   
0.10
   
0.14
   
- 
    
0.02
   
0.04
   
0.06
   
(0.01
)
  
(0.01
)
  
(0.01
)
  
(0.02
)
                                                                                 
Net earnings
  
$
0.70
  
$
0.96
  
$
2.11
  
$
3.00
  
$
3.90
  
$
0.50
  
$
1.43
  
$
2.18
  
$
2.77
  
$
0.04
  
$
0.63
  
$
1.04
  
$
1.47
  
                                                                                 
                                                                                 
Weighted average number of shares used for computation of:
                                                                                
Basic earnings per share
    
95.6
   
97.7
   
97.8
   
97.9
   
97.6
   
93.7
   
94.5
   
95.1
   
95.6
   
90.6
   
90.7
   
90.9
   
91.2
 
Diluted earnings per share
    
96.6
   
99.0
   
99.1
   
99.2
   
98.8
   
95.6
   
96.4
   
96.8
   
97.3
   
90.6
   
91.0
   
91.4
   
91.9
 
                                                                                 
Effective tax rate
   
17.4
%
  
28.1
%
  
30.3
%
  
25.5
%
  
22.3
%
  
33.0
%
  
33.2
%
  
29.1
%
  
28.7
%
  
35.8
%
  
35.0
%
  
35.0
%
  
32.8
%
 
On April 27, 2006, the Company announced its intention to dispose of substantially all of the assets of Brunswick New Technologies. Accordingly, these financial statements have been prepared utilizing non-GAAP financial information to illustrate how the financial statements would have appeared had the decision been made prior to March 31, 2006. The Company believes that presenting these results excluding these businesses is more representative of the financial performance of its ongoing operations. The Company will formally disaggregate its financial statements in its Quarterly Report on Form 10-Q for the second quarter of 2006.
 
Page 2 of 5
 
Brunswick Corporation
                                            
Non-GAAP Financial Information
                                            
Selected Financial Information
                                            
(in millions)
                                            
(unaudited)
                                            
   
2006
  
 2005 
  
 2004 
  
 2003 
  
Year-To-Date
  
Mar 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
                                                       
Net Sales
                                                      
Boat
  
$
751.0
  
$
680.7
  
$
1,426.2
  
$
2,111.7
  
$
2,783.4
  
$
515.2
  
$
1,147.9
  
$
1,718.1
  
$
2,285.0
  
$
381.9
  
$
803.3
  
$
1,210.3
  
$
1,629.3
  
Marine Engine
    
557.2
   
543.2
   
1,228.0
   
1,784.6
   
2,305.6
   
491.4
   
1,114.1
   
1,643.0
   
2,167.6
   
405.6
   
921.7
   
1,393.9
   
1,832.1
 
Marine eliminations
    
(143.5
)
  
(119.5
)
  
(253.1
)
  
(383.4
)
  
(494.2
)
  
(80.2
)
  
(180.3
)
  
(287.8
)
  
(392.2
)
  
(61.4
)
  
(130.6
)
  
(202.4
)
  
(276.4
)
Total Marine
    
1,164.7
   
1,104.4
   
2,401.1
   
3,512.9
   
4,594.8
   
926.4
   
2,081.7
   
3,073.3
   
4,060.4
   
726.1
   
1,594.4
   
2,401.8
   
3,185.0
 
Fitness
    
134.5
   
128.1
   
249.1
   
377.2
   
553.8
   
130.8
   
253.1
   
385.9
   
559.6
   
119.4
   
224.6
   
329.9
   
487.2
 
Bowling & Billiards
    
114.7
   
111.5
   
226.4
   
338.3
   
464.5
   
110.2
   
216.0
   
322.7
   
442.4
   
85.1
   
179.2
   
276.7
   
392.4
 
Eliminations
    
(0.6
)
  
(1.5
)
  
(2.5
)
  
(3.2
)
  
(6.2
)
  
(0.9
)
  
(1.4
)
  
(2.8
)
  
(4.3
)
  
(0.2
)
  
(0.3
)
  
(0.4
)
  
(1.0
)
                                                                                 
Total
  
$
1,413.3
  
$
1,342.5
  
$
2,874.1
  
$
4,225.2
  
$
5,606.9
  
$
1,166.5
  
$
2,549.4
  
$
3,779.1
  
$
5,058.1
  
$
930.4
  
$
1,997.9
  
$
3,008.0
  
$
4,063.6
  
                                                                                 
Operating Earnings
                                                                                
Boat
  
$
48.4
  
$
49.1
  
$
123.9
  
$
161.9
  
$
192.5
  
$
32.2
  
$
89.2
  
$
125.2
  
$
150.4
  
$
14.6
  
$
46.8
  
$
54.9
  
$
65.2
  
Marine Engine
    
44.9
   
52.0
   
155.5
   
216.7
   
250.5
   
42.9
   
137.1
   
206.0
   
237.2
   
20.2
   
85.9
   
147.1
   
173.6
 
Marine eliminations
    
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Total Marine
    
93.3
   
101.1
   
279.4
   
378.6
   
443.0
   
75.1
   
226.3
   
331.2
   
387.6
   
34.8
   
132.7
   
202.0
   
238.8
 
Fitness
    
8.9
   
6.4
   
11.5
   
25.8
   
56.1
   
8.8
   
11.3
   
19.7
   
44.3
   
(13.0
)
  
(8.2
)
  
0.2
   
28.1
 
Bowling & Billiards
    
12.8
   
11.1
   
16.3
   
22.0
   
37.2
   
13.5
   
17.7
   
21.7
   
41.7
   
8.5
   
10.3
   
10.3
   
25.6
 
Corporate/Other
    
(16.8
)
  
(19.8
)
  
(40.2
)
  
(57.3
)
  
(67.6
)
  
(18.8
)
  
(39.1
)
  
(58.8
)
  
(78.8
)
  
(16.4
)
  
(32.8
)
  
(48.1
)
  
(68.9
)
                                                                                 
Total
  
$
98.2
  
$
98.8
  
$
267.0
  
$
369.1
  
$
468.7
  
$
78.6
  
$
216.2
  
$
313.8
  
$
394.8
  
$
13.9
  
$
102.0
  
$
164.4
  
$
223.6
  
                                                                                 
                                                                                 
 Quarterly
    
2006
    
2005
    
2004
    
2003
  
 
    
Q1
    
Q1
    
Q2
    
Q3
    
Q4
    
Q1
    
Q2
    
Q3
    
Q4
    
Q1
    
Q2
    
Q3
    
Q4
  
                                                                                 
Net Sales
                                                                                
Boat
  
$
751.0
  
$
680.7
  
$
745.5
  
$
685.5
  
$
671.7
  
$
515.2
  
$
632.7
  
$
570.2
  
$
566.9
  
$
381.9
  
$
421.4
  
$
407.0
  
$
419.0
  
Marine Engine
    
557.2
   
543.2
   
684.8
   
556.6
   
521.0
   
491.4
   
622.7
   
528.9
   
524.6
   
405.6
   
516.1
   
472.2
   
438.2
 
Marine eliminations
    
(143.5
)
  
(119.5
)
  
(133.6
)
  
(130.3
)
  
(110.8
)
  
(80.2
)
  
(100.1
)
  
(107.5
)
  
(104.4
)
  
(61.4
)
  
(69.2
)
  
(71.8
)
  
(74.0
)
Total Marine
    
1,164.7
   
1,104.4
   
1,296.7
   
1,111.8
   
1,081.9
   
926.4
   
1,155.3
   
991.6
   
987.1
   
726.1
   
868.3
   
807.4
   
783.2
 
Fitness
    
134.5
   
128.1
   
121.0
   
128.1
   
176.6
   
130.8
   
122.3
   
132.8
   
173.7
   
119.4
   
105.2
   
105.3
   
157.3
 
Bowling & Billiards
    
114.7
   
111.5
   
114.9
   
111.9
   
126.2
   
110.2
   
105.8
   
106.7
   
119.7
   
85.1
   
94.1
   
97.5
   
115.7
 
Eliminations
    
(0.6
)
  
(1.5
)
  
(1.0
)
  
(0.7
)
  
(3.0
)
  
(0.9
)
  
(0.5
)
  
(1.4
)
  
(1.5
)
  
(0.2
)
  
(0.1
)
  
(0.1
)
  
(0.6
)
                                                                                 
Total
  
$
1,413.3
  
$
1,342.5
  
$
1,531.6
  
$
1,351.1
  
$
1,381.7
  
$
1,166.5
  
$
1,382.9
  
$
1,229.7
  
$
1,279.0
  
$
930.4
  
$
1,067.5
  
$
1,010.1
  
$
1,055.6
  
                                                                                 
Operating Earnings
                                                                                
Boat
  
$
48.4
  
$
49.1
  
$
74.8
  
$
38.0
  
$
30.6
  
$
32.2
  
$
57.0
  
$
36.0
  
$
25.2
  
$
14.6
  
$
32.2
  
$
8.1
  
$
10.3
  
Marine Engine
    
44.9
   
52.0
   
103.5
   
61.2
   
33.8
   
42.9
   
94.2
   
68.9
   
31.2
   
20.2
   
65.6
   
61.3
   
26.5
 
Marine eliminations
    
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Total Marine
    
93.3
   
101.1
   
178.3
   
99.2
   
64.4
   
75.1
   
151.2
   
104.9
   
56.4
   
34.8
   
97.8
   
69.4
   
36.8
 
Fitness
    
8.9
   
6.4
   
5.1
   
14.3
   
30.3
   
8.8
   
2.5
   
8.4
   
24.6
   
(13.0
)
  
4.9
   
8.3
   
27.9
 
Bowling & Billiards
    
12.8
   
11.1
   
5.2
   
5.7
   
15.2
   
13.5
   
4.2
   
4.0
   
20.0
   
8.5
   
1.8
   
-
   
15.3
 
Corporate/Other
    
(16.8
)
  
(19.8
)
  
(20.4
)
  
(17.1
)
  
(10.3
)
  
(18.8
)
  
(20.3
)
  
(19.7
)
  
(20.0
)
  
(16.4
)
  
(16.4
)
  
(15.3
)
  
(20.8
)
                                                                                 
Total
  
$
98.2
  
$
98.8
  
$
168.2
  
$
102.1
  
$
99.6
  
$
78.6
  
$
137.6
  
$
97.6
  
$
81.0
  
$
13.9
  
$
88.1
  
$
62.4
  
$
59.2
  
                                                                                 
                                                                                 
 
                            
Dec 31
                      
Dec 31
                      
Dec 31
  
                             
2005
                      
2004
                      
2003
  
                                                                                 
Total Assets
                                                                                
Boat
                          
$
1,358.9
                    
$
1,214.9
                    
$
871.3
  
Marine Engine
                            
981.8
                     
887.0
                     
758.0
 
Total Marine
                            
2,340.7
                     
2,101.9
                     
1,629.3
 
Fitness
                            
678.5
                     
668.4
                     
636.3
 
Bowling & Billiards
                            
390.2
                      
373.8
                     
349.0
 
Corporate/Other
                            
1,005.4
                     
1,054.8
                     
908.8
  
                                                                                 
Total
                          
$
4,414.8
                    
$
4,198.9
                    
$
3,523.4
  
 
On April 27, 2006, the Company announced its intention to dispose of substantially all of the assets of Brunswick New Technologies. Accordingly, these financial statements have been prepared utilizing non-GAAP financial information to illustrate how the financial statements would have appeared had the decision been made prior to March 31, 2006. The Company believes that presenting these results excluding these businesses is more representative of the financial performance of its ongoing operations. The Company will formally disaggregate its financial statements in its Quarterly Report on Form 10-Q for the second quarter of 2006.
 
Page 3 of 5
Brunswick Corporation
                                        
Non-GAAP Financial Information
                                        
Comparative Consolidated Condensed Balance Sheets
                                        
(in millions)
                                        
(unaudited)          
 
2006
  
2005
  
2004
  
2003
  
   
Mar 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
                                                       
Assets
                                                      
Current assets
                                                      
Cash and cash equivalents
  
$
216.5
  
$
439.7
  
$
508.6
  
$
535.9
  
$
487.7
  
$
173.8
  
$
438.2
  
$
493.1
  
$
499.8
  
$
280.0
  
$
254.1
  
$
353.9
  
$
345.9
  
Accounts and notes receivable, net
    
540.5
   
480.2
   
481.1
   
449.7
   
471.5
   
438.5
   
438.0
   
408.5
   
439.0
   
439.2
   
486.2
   
337.4
   
357.9
 
Inventories
                                                                                
Finished goods
    
418.3
   
421.0
   
397.3
   
406.0
   
384.3
   
389.6
   
356.7
   
371.9
   
374.2
   
292.8
   
301.2
   
294.0
   
322.1
 
Work-in-process
    
335.8
   
282.4
   
305.9
   
314.4
   
298.5
   
222.5
   
240.4
   
258.9
   
258.9
   
209.8
   
203.5
   
210.1
   
205.3
 
Raw materials
    
143.5
   
128.5
   
140.5
   
149.4
   
134.1
   
91.1
   
95.0
   
112.0
   
116.3
   
63.0
   
69.5
   
79.2
   
78.0
 
Net inventories
    
897.6
   
831.9
   
843.7
   
869.8
   
816.9
   
703.2
   
692.1
   
742.8
   
749.4
   
565.6
   
574.2
   
583.3
   
605.4
 
Deferred income taxes
    
273.6
   
292.0
   
298.3
   
293.7
   
274.8
   
297.5
   
311.5
   
314.9
   
292.7
   
302.6
   
313.0
   
321.8
   
302.3
 
Prepaid expenses and other
    
60.8
   
41.5
   
54.6
   
48.8
   
70.4
   
49.2
   
50.2
   
51.5
   
55.1
   
43.4
   
41.9
   
44.5
   
67.1
 
Current assets held for sale
    
99.4
   
62.2
   
80.6
   
100.5
   
113.7
   
38.6
   
46.0
   
61.9
   
62.7
   
4.6
   
22.3
   
26.3
   
36.5
 
Current assets
    
2,088.4
   
2,147.5
   
2,266.9
   
2,298.4
   
2,235.0
   
1,700.8
   
1,976.0
   
2,072.7
   
2,098.7
   
1,635.4
   
1,691.7
   
1,667.2
   
1,715.1
 
                                                                                 
Net property
    
982.0
   
858.5
   
879.3
   
919.0
   
953.3
   
841.6
   
840.3
   
844.7
   
865.4
   
777.5
   
783.4
   
792.7
   
821.4
 
                                                                                 
Other assets
                                                                                
Goodwill and other intangibles
    
991.5
   
878.8
   
931.5
   
952.3
   
949.1
   
820.4
   
828.1
   
828.0
   
879.1
   
574.8
   
625.5
   
658.2
   
662.7
 
Investments and other long-term assets
    
399.5
   
370.8
   
369.3
   
357.5
   
391.1
   
384.3
   
380.0
   
382.0
   
418.4
   
298.8
   
306.8
   
329.7
   
360.7
 
Long-term assets held for sale
    
93.3
   
86.8
   
89.8
   
91.3
   
93.0
   
43.1
   
70.5
   
74.6
   
84.8
   
3.5
   
32.3
   
36.2
   
42.6
 
                                                                                 
Total assets
 
$
4,554.7
  
$
4,342.4
  
$
4,536.8
  
$
4,618.5
  
$
4,621.5
  
$
3,790.2
  
$
4,094.9
  
$
4,202.0
  
$
4,346.4
  
$
3,290.0
  
$
3,439.7
  
$
3,484.0
  
$
3,602.5
  
                                                                                 
                                                                                 
Liabilities and shareholders' equity
                                                                                
Current liabilities
                                                                                
Short-term debt
  
$
0.9
  
$
6.1
  
$
3.1
  
$
5.8
  
$
1.1
  
$
48.8
  
$
13.4
  
$
13.5
  
$
10.7
  
$
30.7
  
$
43.6
  
$
30.5
  
$
23.8
  
Accounts payable
    
418.6
   
372.2
   
408.9
   
406.8
   
431.7
   
320.6
   
332.7
   
317.2
   
371.2
   
279.9
   
298.5
   
301.5
   
306.7
 
Accrued expenses and accrued income taxes
    
757.9
   
757.8
   
791.9
   
778.3
   
803.8
   
748.4
   
799.8
   
824.9
   
839.6
   
648.7
   
726.3
   
718.6
   
749.8
 
Current liabilities held for sale
    
42.4
   
36.1
   
45.5
   
65.4
   
68.6
   
28.9
   
29.8
   
37.6
   
32.3
   
2.9
   
16.1
   
24.6
   
26.3
 
Current liabilities
    
1,219.8
   
1,172.2
   
1,249.4
   
1,256.3
   
1,305.2
   
1,146.7
   
1,175.7
   
1,193.2
   
1,253.8
   
962.2
   
1,084.5
   
1,075.2
   
1,106.6
 
                                                                                 
Long-term debt
    
723.5
   
723.2
   
729.4
   
726.8
   
723.7
   
585.8
   
726.5
   
729.8
   
728.4
   
588.1
   
588.5
   
584.5
   
583.8
 
Other long-term liabilities
    
610.7
   
649.8
   
642.2
   
636.2
   
608.1
   
604.4
   
609.7
   
603.3
   
648.4
   
633.9
   
590.1
   
591.4
   
589.1
 
Long-term liabilities held for sale
    
5.8
   
4.2
   
5.0
   
5.4
   
5.7
   
-
   
0.4
   
0.4
   
3.5
   
-
   
-
   
-
   
-
 
Shareholders' equity
    
1,994.9
   
1,793.0
   
1,910.8
   
1,993.8
   
1,978.8
   
1,453.3
   
1,582.6
   
1,675.3
   
1,712.3
   
1,105.8
   
1,176.6
   
1,232.9
   
1,323.0
 
                                                                                 
Total liabilities and shareholders' equity
  
$
4,554.7
  
$
4,342.4
  
$
4,536.8
  
$
4,618.5
  
$
4,621.5
  
$
3,790.2
  
$
4,094.9
  
$
4,202.0
  
$
4,346.4
  
$
3,290.0
  
$
3,439.7
  
$
3,484.0
  
$
3,602.5
  
                                                                                 
                                                                                 
                                                                                 
Supplemental Information
                                                                                
Debt-to-capitalization rate
    
26.6
%
  
28.9
%
  
27.7
%
  
26.9
%
  
26.8
%
  
30.4
%
  
31.9
%
  
30.7
%
  
30.2
%
  
35.9
%
  
34.9
%
  
33.3
%
  
31.5
%
 
On April 27, 2006, the Company announced its intention to dispose of substantially all of the assets of Brunswick New Technologies. Accordingly, these financial statements have been prepared utilizing non-GAAP financial information to illustrate how the financial statements would have appeared had the decision been made prior to March 31, 2006. The Company believes that presenting these results excluding these businesses is more representative of the financial performance of its ongoing operations. The Company will formally disaggregate its financial statements in its Quarterly Report on Form 10-Q for the second quarter of 2006.
 
Page 4 of 5
 
 
Brunswick Corporation
                                    
Non-GAAP Financial Information
                                    
Year-To-Date Condensed Consolidated Statements of Cash Flows
                                    
(in millions)
                                    
(unaudited)
                                    
   
2006
  
2005
  
2004
  
2003
  
   
Mar 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
Mar 31
  
Jun 30
  
Sep 30
  
Dec 31
  
                                                       
Cash flows from operating activities
                                                      
Net earnings from continuing operations
  
$
74.1
  
$
94.0
  
$
205.0
  
$
287.5
  
$
371.1
  
$
47.9
  
$
136.4
  
$
207.2
  
$
263.8
  
$
4.3
  
$
58.4
  
$
95.9
  
$
137.0
  
Depreciation and amortization
    
40.7
   
37.2
   
75.9
   
114.3
   
156.3
   
37.5
   
75.2
   
114.8
   
153.6
   
35.5
   
72.8
   
110.7
   
149.4
 
Changes in noncash current assets and current liabilities
    
(220.9
)
  
(217.4
)
  
(153.4
)
  
(132.4
)
  
(53.6
)
  
(155.7
)
  
(90.3
)
  
(112.7
)
  
(53.4
)
  
(109.9
)
  
(62.2
)
  
93.2
   
107.0
 
Income taxes and other, net
    
31.4
   
10.1
   
(21.0
)
  
(29.8
)
  
(52.2
)
  
53.9
   
45.5
   
45.8
   
60.4
   
29.0
   
(5.8
)
  
4.9
   
12.3
 
Net cash (used for) provided by operating activities of continuing operations
    
(74.7
)
  
(76.1
)
  
106.5
   
239.6
   
421.6
   
(16.4
)
  
166.8
   
255.1
   
424.4
   
(41.1
)
  
63.2
   
304.7
   
405.7
 
Net cash (used for) provided by operating activities of discontinued operations
    
(16.9
)
  
6.8
   
4.9
   
13.1
   
11.3
   
1.2
   
3.2
   
(5.0
)
  
(9.2
)
  
(1.1
)
  
(1.8
)
  
0.4
   
(10.6
)
Net cash (used for) provided by operating activities
    
(91.6
)
  
(69.3
)
  
111.4
   
252.7
   
432.9
   
(15.2
)
  
170.0
   
250.1
   
415.2
   
(42.2
)
  
61.4
   
305.1
   
395.1
 
                                                                                 
Cash flows from investing activities
                                                                                
Capital expenditures
    
(54.4
)
  
(29.6
)
  
(79.9
)
  
(150.4
)
  
(223.8
)
  
(31.5
)
  
(70.7
)
  
(110.2
)
  
(163.8
)
  
(19.8
)
  
(51.9
)
  
(92.2
)
  
(157.7
)
Acquisitions of businesses, net of cash and debt acquired
    
(62.9
)
  
(13.4
)
  
(86.9
)
  
(127.5
)
  
(130.3
)
  
(196.2
)
  
(197.6
)
  
(197.5
)
  
(248.2
)
  
-
   
(64.6
)
  
(139.8
)
  
(140.0
)
Investments
    
(7.1
)
  
(8.1
)
  
(4.7
)
  
4.7
   
(21.1
)
  
(4.9
)
  
(2.3
)
  
(2.6
)
  
(16.2
)
  
(11.9
)
  
(11.7
)
  
(35.6
)
  
(39.3
)
Proceeds from sale of property, plant and equipment
    
5.1
   
6.0
   
11.8
   
13.4
   
13.4
   
0.5
   
6.0
   
6.8
   
13.4
   
-
   
3.8
   
3.9
   
7.5
 
Proceeds from investment sale
    
-
   
57.9
   
57.9
   
57.9
   
57.9
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other, net
    
-
   
-
   
-
   
(1.2
)
  
(1.2
)
  
(1.4
)
  
(2.1
)
  
(2.1
)
  
2.0
   
-
   
(0.5
)
  
(0.5
)
  
(3.0
)
Net cash (used for) provided by investing activities of continuing operations
    
(119.3
)
  
12.8
   
(101.8
)
  
(203.1
)
  
(305.1
)
  
(233.5
)
  
(266.7
)
  
(305.6
)
  
(412.8
)
  
(31.7
)
  
(124.9
)
  
(264.2
)
  
(332.5
)
Net cash (used for) provided by investing activities of discontinued operations
    
(1.9
)
  
(3.2
)
  
(9.4
)
  
(12.8
)
  
(17.7
)
  
(1.0
)
  
(18.4
)
  
(20.2
)
  
(27.1
)
  
(0.1
)
  
(33.1
)
  
(34.3
)
  
(39.4
)
Net cash (used for) provided by investing activities
    
(121.2
)
  
9.6
   
(111.2
)
  
(215.9
)
  
(322.8
)
  
(234.5
)
  
(285.1
)
  
(325.8
)
  
(439.9
)
  
(31.8
)
  
(158.0
)
  
(298.5
)
  
(371.9
)
                                                                                 
Cash flows from financing activities
                                                                                
Net repayments of commercial paper and
                                                                               
other short-term debt
    
-
   
(4.0
)
  
1.1
   
4.4
   
(0.6
)
  
24.2
   
(5.5
)
  
(5.1
)
  
(8.8
)
  
2.2
   
1.5
   
3.1
   
1.8
 
Net proceeds from issuances of long-term debt
    
-
   
-
   
-
   
-
   
1.3
   
-
   
149.1
   
150.1
   
152.3
   
-
   
-
   
-
   
-
 
Payments of long-term debt including current maturities
    
(0.3
)
  
(1.3
)
  
(1.9
)
  
(3.8
)
  
(6.7
)
  
-
   
(5.6
)
  
(6.0
)
  
(6.3
)
  
-
   
(5.0
)
  
(19.3
)
  
(24.5
)
Stock repurchases
    
(61.8
)
  
-
   
-
   
(15.7
)
  
(76.0
)
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Cash dividends paid
    
-
   
-
   
-
   
-
   
(57.3
)
  
-
   
-
   
-
   
(58.1
)
  
-
   
-
   
-
   
(45.9
)
Stock options exercised
    
3.7
   
4.9
   
9.4
   
14.4
   
17.1
   
53.4
   
69.4
   
83.9
   
99.5
   
0.4
   
2.8
   
12.1
   
39.9
 
Net cash (used for) provided by financing activities of continuing operations
    
(58.4
)
  
(0.4
)
  
8.6
   
(0.7
)
  
(122.2
)
  
77.6
   
207.4
   
222.9
   
178.6
   
2.6
   
(0.7
)
  
(4.1
)
  
(28.7
)
Net cash (used for) provided by financing activities of discontinued operations
    
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Net cash (used for) provided by financing activities
    
(58.4
)
  
(0.4
)
  
8.6
   
(0.7
)
  
(122.2
)
  
77.6
   
207.4
   
222.9
   
178.6
   
2.6
   
(0.7
)
  
(4.1
)
  
(28.7
)
                                                                                 
Net (decrease) increase in cash and cash equivalents
    
(271.2
)
  
(60.1
)
  
8.8
   
36.1
   
(12.1
)
  
(172.1
)
  
92.3
   
147.2
   
153.9
   
(71.4
)
  
(97.3
)
  
2.5
   
(5.5
)
Cash and cash equivalents at Beginning of Period
    
487.7
   
499.8
   
499.8
   
499.8
   
499.8
   
345.9
   
345.9
   
345.9
   
345.9
   
351.4
   
351.4
   
351.4
   
351.4
 
                                                                                 
Cash and cash equivalents at End of Period
  
$
216.5
  
$
439.7
  
$
508.6
  
$
535.9
  
$
487.7
  
$
173.8
  
$
438.2
  
$
493.1
  
$
499.8
  
$
280.0
  
$
254.1
  
$
353.9
  
$
345.9
  
                                                                                 
                                                                                 
Free Cash Flow
                                                                               
Net cash provided by (used for) operating activities of continuing operations
  
$
(74.7
)
$
(76.1
)
$
106.5
  
$
239.6
  
$
421.6
  
$
(16.4
)
$
166.8
  
$
255.1
  
$
424.4
  
$
(41.1
)
$
63.2
  
$
304.7
  
$
405.7
  
                                                                                 
Net cash provided by (used for) continuing operations:
                                                                                
Capital expenditures
    
(54.4
)
  
(29.6
)
  
(79.9
)
  
(150.4
)
  
(223.8
)
  
(31.5
)
  
(70.7
)
  
(110.2
)
  
(163.8
)
  
(19.8
)
  
(51.9
)
  
(92.2
)
  
(157.7
)
Proceeds from investment sale
   
-
   
57.9
   
57.9
   
57.9
   
57.9
   
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
Other continuing operations, net
    
5.1
   
6.0
   
11.8
   
12.2
   
12.2
   
(0.9
)
  
3.9
   
4.7
   
15.4
   
-
   
3.3
   
3.4
   
4.5
 
                                                                                 
Total Free Cash Flow
  
$
(124.0
)
$
(41.8
)
$
96.3
  
$
159.3
  
$
267.9
  
$
(48.8
)
$
100.0
  
$
149.6
  
$
276.0
  
$
(60.9
)
$
14.6
  
$
215.9
  
$
252.5
  
 
On April 27, 2006, the Company announced its intention to dispose of substantially all of the assets of Brunswick New Technologies. Accordingly, these financial statements have been prepared utilizing non-GAAP financial information to illustrate how the financial statements would have appeared had the decision been made prior to March 31, 2006. The Company believes that presenting these results excluding these businesses is more representative of the financial performance of its ongoing operations. The Company will formally disaggregate its financial statements in its Quarterly Report on Form 10-Q for the second quarter of 2006.
 
Page 5 of 5
 EX-99.2 3 exhibit99_2.htm CASH FLOW STATEMENT Cash Flow Statement
 
       
Exhibit 99.2
  
Brunswick Corporation
          
Comparative Consolidated Condensed Statements of Cash Flows
          
(in millions)
          
(unaudited)
          
   
Three Months
Ended March 31
  
   
2006
  
2005
  
Cash flows from operating activities
          
Net earnings  
  
$
67.4
  
$
94.6
  
Depreciation and amortization 
    
42.4
   
38.4
 
Changes in noncash current assets and current liabilities 
    
(232.9
)
  
(213.1
)
Income taxes and other, net 
    
31.5
   
10.8
 
Net cash provided by (used for) operating activities 
    
(91.6
)
  
(69.3
)
               
Cash flows from investing activities
              
Capital expenditures 
    
(56.3
)
  
(32.5
)
Acquisitions of businesses, net of cash and debt acquired 
    
(62.9
)
  
(13.7
)
Investments 
    
(7.1
)
  
(8.1
)
Proceeds from sale of property, plant and equipment 
    
5.1
   
6.0
 
Proceeds from investment sale (1) 
    
-
   
57.9
 
Net cash provided by (used for) investing activities 
    
(121.2
)
  
9.6
 
               
Cash flows from financing activities
              
Net issuances (repayments) of commercial paper and  
              
other short-term debt 
    
-
   
(4.0
)
Payments of long-term debt including current maturities 
    
(0.3
)
  
(1.3
)
Stock repurchases 
    
(61.8
)
  
-
 
Stock options exercised 
    
3.7
   
4.9
 
Net cash provided by (used for) financing activities 
    
(58.4
)
  
(0.4
)
               
Net increase (decrease) in cash and cash equivalents
    
(271.2
)
  
(60.1
)
Cash and cash equivalents at January 1
    
487.7
   
499.8
 
               
Cash and cash equivalents at March 31
  
$
216.5
  
$
439.7
  
               
               
Free Cash Flow
             
Net cash provided by (used for) operating activities 
  
$
(91.6
)
$
(69.3
)
               
Net cash provided by (used for): 
              
Capital expenditures 
    
(56.3
)
  
(32.5
)
Proceeds from investment sale (1) 
    
-
   
57.9
 
Other, net 
    
5.1
   
6.0
 
               
Total Free Cash Flow 
  
$
(142.8
)
$
(37.9
)
               
 
(1)
Pre-tax proceeds from the sale of the Company's investment in MarineMax, Inc., net of selling costs.
GRAPHIC 4 brunswick_logo.jpg BRUNSWICK LOGO begin 644 brunswick_logo.jpg M_]C_X``02D9)1@`!`0$`8`!@``#_VP!#``@&!@<&!0@'!P<)"0@*#!0-#`L+ M#!D2$P\4'1H?'AT:'!P@)"XG("(L(QP<*#7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7& MQ\C)RM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0`'P$``P$!`0$! M`0$!`0````````$"`P0%!@<("0H+_\0`M1$``@$"!`0#!`<%!`0``0)W``$" M`Q$$!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O`58G+1"A8D-.$E\1<8&1HF M)R@I*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$ MA8:'B(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4 MU=;7V-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H`#`,!``(1`Q$`/P#T7QQX^N_# M6J6FD:7H\FH:C=1>:@`8C&2,!5&6/RDX':N>?QC\5(T9SX2M2%!)VV\A/X`2 M9-=OXSTUIM'DU6RCF_M?38WFLY(/OYQDKC^)3C!7G/;FO*_^$@^)&LVD6HRZ MDFF:5.IECN1#B%`#MPS1H[*,Y^_@?I792C&4=$OFW=9%QU+$#(_'/-Q*6\5_#RV*@9^TVT3VC$ MX/)D3*D\CJ.W2K]E3EI;[G_F9^UJ1UO]Z_R/H&2[MHK<3R7$20M@B1G`4YZ< M]*BBU33YY5BAOK:21NBI,I)_`&N?\2&-O!5N8E*Q%8BBL;26\Y3]IE1@`/RY]?PKAL=USOKC4+*UD$=Q=V\+D9"R2!21Z\FEM[RUN\_ M9KF&;;U\N0-C\JY/Q#-I\7BRWDU%/,MOL8XQGGG0]?2L3P?_P`>-_\`]?TG\EK+L/\`FY9&C4'KO/S8_!OTH`[7[;:"U%T;J'[.>DOF#9UQUZ=:<+FW,RPB>(RL MN]4WC<5]0/3WKS]3(=*B\/RM^^34A$P'39Z^N,Y.<5T<_P#R/UM_UXG_`-": MD!L7FI65AM^UW,41;H&;D_A3_MEK]F^T_:8?LX_Y:^8-OIUZ5S&AZ;;:U=:C MJ.H1B=S<-$BN>%`Q_B!^%2ZUI%KI'A'4(K4.%=T<[FS_`!KQ0!TDUU;V\(FF MGBCB.,.[@`Y]S4BLKH'1@RL,@@Y!%<):WT>NZ]86]T'2QC3]PC`@2NHZGGU! M_+'I^(+O0KAN" MTEJ1;.W;]^DFW'/\0!'/%=!'X3^)%C$MSHWBU-1@;!3_`$MG!QGH'!7';KSW MKOO[*UW1@1I5XFI66#_H6I2'>H]$F`)]L.#]:QY/^$8BN#+J.EWOAB\?&ZX3 M=;(S$GK-"?+;D_Q'OTKH]M*7G\OZ9S^QC'R^?](W]W6J=]#XBUNW^PW%A;VD#L"\ID#D`'/`!KJ(2IAC*2>8A4;7SG<,=< M]Z?7(=9AG3;A/%-K=)&3:Q6?DF0L.N3QCKW':HM-TR\TKQ#="&'=IER-^0P_ M=MUZ9SZC@=QZ5T-%(9RB6.NZ)?WG]F6T-U:W#F10S@;"?7)!_P`BK%AHUY;: M!J:3D27UZLC,JD8#%2`,_4_2NCHH`YF?P_+>>$[:TD39?6Z;H^1PWID''/\` MA3K2RUJQ\+VEO9^5%>1.QDCDPVY=Q.,].X_Q%=)10!RAL]>*K&]2(-;*%,S;AP5)/0]<\#@5T]%`',/H,Y\; M)J(B'V3&]FW#[^W'3KUP:O2V-RWB^"^$>;9;4QE]PX;+<8Z]Q6S10!RW]GZS MHNHW;);R9U:.)=HV#<#C/3L> M_P"-=-10!SVK:$]SH=K'9HL5Y9A7A"D+@\9&?USZ@5MVCSO9PM -----END PRIVACY-ENHANCED MESSAGE-----