Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Oct. 02, 2016 | Oct. 21, 2016 | |
Document Information [Line Items] | ||
Entity Registrant Name | BRIGGS & STRATTON CORP | |
Entity Central Index Key | 14,195 | |
Current Fiscal Year End Date | --07-02 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 2, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 42,808,827 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Oct. 02, 2016 | Jul. 03, 2016 |
CURRENT ASSETS: | ||
Cash and Cash Equivalents | $ 42,960 | $ 89,839 |
Accounts Receivable, Net | 160,710 | 191,678 |
Inventories: | ||
Finished Products | 342,447 | 271,718 |
Work in Process | 120,324 | 104,468 |
Raw Materials | 8,036 | 9,879 |
Total Inventories | 470,807 | 386,065 |
Deferred Income Tax Asset | 43,693 | 44,736 |
Prepaid Expenses and Other Current Assets | 41,470 | 28,419 |
Total Current Assets | 759,640 | 740,737 |
OTHER ASSETS: | ||
Goodwill | 161,670 | 161,568 |
Investments | 52,049 | 52,757 |
Other Intangible Assets, Net | 103,318 | 104,164 |
Long-Term Deferred Income Tax Asset | 49,730 | 53,467 |
Other Long-Term Assets, Net | 17,488 | 17,701 |
Total Other Assets | 384,255 | 389,657 |
PLANT AND EQUIPMENT: | ||
Cost | 1,065,847 | 1,056,893 |
Less - Accumulated Depreciation | 737,044 | 730,620 |
Total Plant and Equipment, Net | 328,803 | 326,273 |
TOTAL ASSETS | 1,472,698 | 1,456,667 |
CURRENT LIABILITIES: | ||
Accounts Payable | 186,468 | 181,152 |
Short-Term Debt | 50,175 | 0 |
Accrued Liabilities | 129,705 | 137,149 |
Total Current Liabilities | 366,348 | 318,301 |
OTHER LIABILITIES: | ||
Accrued Pension Cost | 306,319 | 310,378 |
Accrued Employee Benefits | 23,341 | 23,483 |
Accrued Postretirement Health Care Obligation | 36,120 | 38,441 |
Other Long-Term Liabilities | 49,538 | 51,099 |
Long-Term Debt | 221,456 | 221,339 |
Total Other Liabilities | 636,774 | 644,740 |
SHAREHOLDERS' INVESTMENT: | ||
Common Stock - Authorized 120,000 Shares $.01 Par Value, Issued 57,854 Shares | 579 | 579 |
Additional Paid-In Capital | 67,383 | 72,020 |
Retained Earnings | 1,054,251 | 1,074,437 |
Accumulated Other Comprehensive Loss | (334,336) | (338,450) |
Treasury Stock at cost, 14,874 Shares and 14,675 Shares, respectively | (318,301) | (314,960) |
Total Shareholders' Investment | 469,576 | 493,626 |
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | $ 1,472,698 | $ 1,456,667 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Oct. 02, 2016 | Jul. 03, 2016 |
Common Stock, shares authorized | 120,000 | 120,000 |
Common Stock, par value | $ 0.01 | $ 0.01 |
Common Stock, shares issued | 57,854 | 57,854 |
Treasury Stock, shares | 14,874 | 14,675 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
NET SALES | $ 286,797 | $ 289,458 |
COST OF GOODS SOLD | 234,276 | 237,287 |
Cost Of Goods Sold Restructuring Charges | 0 | 2,459 |
Gross Profit | 52,521 | 49,712 |
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 72,063 | 72,134 |
Operating Restructuring Charges | 0 | 914 |
Equity in Earnings of Unconsolidated Affiliates | 3,228 | 0 |
Loss from Operations | (16,314) | (23,336) |
INTEREST EXPENSE | (4,505) | (4,536) |
OTHER INCOME, Net | 457 | 1,455 |
Loss Before Income Taxes | (20,362) | (26,417) |
CREDIT FOR INCOME TAXES | (6,214) | (8,246) |
Net Loss | $ (14,148) | $ (18,171) |
Earnings (Loss) Per Share, Basic | $ (0.34) | $ (0.42) |
Earnings (Loss) Per Share, Diluted | $ (0.34) | $ (0.42) |
Weighted Average Number of Shares Outstanding, Basic | 42,494 | 43,478 |
Weighted Average Number of Shares Outstanding, Diluted | 42,494 | 43,478 |
DIVIDENDS PER SHARE | $ 0.140 | $ 0.135 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Net Loss | $ (14,148) | $ (18,171) |
Other Comprehensive Income (Loss): | ||
Cumulative Translation Adjustments | 1,601 | (12,473) |
Unrealized Loss on Derivative Instruments, Net of Tax | (47) | (351) |
Unrecognized Pension & Postretirement Obligation, Net of Tax | 2,560 | 2,193 |
Other Comprehensive Income (Loss) | 4,114 | (10,631) |
Total Comprehensive Loss | $ (10,034) | $ (28,802) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Loss | $ (14,148) | $ (18,171) |
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities: | ||
Depreciation and Amortization | 14,286 | 13,397 |
Stock Compensation Expense | 1,248 | 1,627 |
Loss on Disposition of Plant and Equipment | 113 | 46 |
Provision for Deferred Income Taxes | 3,498 | 3,844 |
Equity in Earnings of Unconsolidated Affiliates | (3,228) | (1,436) |
Dividends Received from Unconsolidated Affiliates | 3,043 | 728 |
Non-Cash Restructuring Charges | 0 | 229 |
Change in Operating Assets and Liabilities: | ||
Accounts Receivable | 29,422 | 45,558 |
Inventories | (84,733) | (95,342) |
Other Current Assets | (2,234) | 2,408 |
Accounts Payable, Accrued Liabilities and Income Taxes | (18,212) | (30,337) |
Other, Net | (5,552) | (5,240) |
Net Cash Used in Operating Activities | (76,497) | (82,689) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital Expenditures | (15,764) | (12,428) |
Proceeds Received on Disposition of Plant and Equipment | 52 | 515 |
Cash Paid for Acquisition, Net of Cash Acquired | 0 | (2,174) |
Proceeds on Sale of Investment in Marketable Securities | 3,343 | 0 |
Net Cash Used in Investing Activities | (12,369) | (14,087) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net Borrowings on Revolver | 50,175 | 38,410 |
Treasury Stock Purchases | (8,654) | (11,178) |
Payment of Acquisition Contingent Liability | (813) | 0 |
Stock Option Exercise Proceeds and Tax Benefits | 1,117 | 6,433 |
Net Cash Provided by Financing Activities | 41,825 | 33,665 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 162 | (1,284) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (46,879) | (64,395) |
CASH AND CASH EQUIVALENTS: | ||
CASH AND CASH EQUIVALENTS, Beginning | 89,839 | 118,390 |
CASH AND CASH EQUIVALENTS, Ending | $ 42,960 | $ 53,995 |
General Information
General Information | 3 Months Ended |
Oct. 02, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General Information | General Information Briggs & Stratton (the “Company”) is a U.S. based producer of gasoline engines and outdoor power equipment. The Company’s Engines segment sells engines worldwide, primarily to original equipment manufacturers ("OEMs") of lawn and garden equipment and other gasoline engine powered equipment. The Company also sells related service parts and accessories for its engines. The Company’s Products segment designs, manufacturers and markets a wide range of outdoor power equipment, job site products, and related accessories. The majority of lawn and garden equipment is sold during the spring and summer months when most lawn care and gardening activities are performed. Engine sales in the Company’s third fiscal quarter have historically been the highest, while sales in the first fiscal quarter have historically been the lowest. Sales of pressure washers and lawn and garden powered equipment are typically higher during the third and fourth fiscal quarters than at other times of the year. Sales of portable generators and snowthrowers are typically higher during the first and second fiscal quarters. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and therefore do not include all information and footnotes necessary for a fair statement of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. The year-end condensed consolidated balance sheet data was derived from audited financial statements, but also does not include all disclosures required by accounting principles generally accepted in the United States. However, in the opinion of the Company, adequate disclosures have been presented to prevent the information from being misleading, and all adjustments necessary to fairly present the results of operations and financial position have been included. All of these adjustments are of a normal recurring nature, except as otherwise noted. Interim results are not necessarily indicative of results for a full year. The information included in these condensed consolidated financial statements should be read in conjunction with the financial statements and the notes thereto that were included in the Company's latest Annual Report on Form 10-K. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Oct. 02, 2016 | |
Prospective Adoption of New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements In March 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU was issued as part of the FASB Simplification Initiative and involves several aspects of accounting for share-based payment transactions, including the income tax consequences and classification on the statement of cash flows. The guidance is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early adoption is permitted. The Company is currently assessing the impact of this new accounting pronouncement on its results of operations, financial position, and cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), which is intended to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. Certain qualitative and quantitative disclosures are required, as well as a modified retrospective recognition and measurement of impacted leases. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2018, with early adoption permitted. The Company is currently assessing the impact of this new accounting pronouncement on its results of operations, financial position, and cash flows. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments-Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. ASU No. 2016-01 enhances the existing financial instruments reporting model by modifying fair value measurement tools, simplifying impairment assessments for certain equity instruments, and modifying overall presentation and disclosure requirements. The new guidance is effective for fiscal years and interim periods within those years beginning after December 15, 2017, with early adoption permitted. The Company is currently assessing the impact of this new accounting pronouncement on its results of operations, financial position, and cash flows. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes (Topic 740). Current guidance requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position; however, the new guidance requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. This guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is permitted. The Company does not expect the impact of adoption to have a significant impact on the Company’s financial position and will have no impact on the results of operations and cash flows. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606). The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. This guidance is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, under either full or modified retrospective adoption. Early application is only permitted for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is currently assessing the impact of this new accounting pronouncement on its results of operations, financial position, and cash flows. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) (Notes) | 3 Months Ended |
Oct. 02, 2016 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) [Abstract] | Accumulated Other Comprehensive Income (Loss) The following tables set forth the changes in accumulated other comprehensive income (loss) (in thousands): Three Months Ended October 2, 2016 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (23,863 ) $ (1,552 ) $ (313,035 ) $ (338,450 ) Other Comprehensive Income (Loss) Before Reclassification 1,601 (710 ) — 891 Income Tax Benefit (Expense) — 266 — 266 Net Other Comprehensive Income (Loss) Before Reclassifications 1,601 (444 ) — 1,157 Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — 324 — 324 Realized (Gains) Losses - Commodity Contracts (1) — 80 — 80 Realized (Gains) Losses - Interest Rate Swaps (1) — 232 — 232 Amortization of Prior Service Costs (Credits) (2) — — (618 ) (618 ) Amortization of Actuarial Losses (2) — — 4,714 4,714 Total Reclassifications Before Tax — 636 4,096 4,732 Income Tax Expense (Benefit) — (239 ) (1,536 ) (1,775 ) Net Reclassifications — 397 2,560 2,957 Other Comprehensive Income (Loss) 1,601 (47 ) 2,560 4,114 Ending Balance $ (22,262 ) $ (1,599 ) $ (310,475 ) $ (334,336 ) (1) Amounts reclassified to net income (loss) are included in net sales or cost of goods sold. See Note 8 for information related to derivative financial instruments. (2) Amounts reclassified to net income (loss) are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 6 for information related to pension and postretirement benefit plans. Three Months Ended September 27, 2015 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (19,117 ) $ 1,212 $ (261,205 ) $ (279,110 ) Other Comprehensive Income (Loss) Before Reclassification (12,473 ) 2,176 — (10,297 ) Income Tax Benefit (Expense) — (816 ) — (816 ) Net Other Comprehensive Income (Loss) Before Reclassifications (12,473 ) 1,360 — (11,113 ) Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — (3,171 ) — (3,171 ) Realized (Gains) Losses - Commodity Contracts (1) — 132 — 132 Realized (Gains) Losses - Interest Rate Swaps (1) — 302 — 302 Amortization of Prior Service Costs (Credits) (2) — — (620 ) (620 ) Amortization of Actuarial Losses (2) — — 4,129 4,129 Total Reclassifications Before Tax — (2,737 ) 3,509 772 Income Tax Expense (Benefit) — 1,026 (1,316 ) (290 ) Net Reclassifications — (1,711 ) 2,193 482 Other Comprehensive Income (Loss) (12,473 ) (351 ) 2,193 (10,631 ) Ending Balance $ (31,590 ) $ 861 $ (259,012 ) $ (289,741 ) (1) Amounts reclassified to net income (loss) are included in net sales or cost of goods sold. See Note 8 for information related to derivative financial instruments. (2) Amounts reclassified to net income (loss) are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 6 for information related to pension and postretirement benefit plans. |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 3 Months Ended |
Oct. 02, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings (Loss) Per Share The Company computes earnings (loss) per share using the two-class method, an earnings allocation formula that determines earnings (loss) per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The Company’s unvested grants of restricted stock, restricted stock units, and deferred stock awards contain non-forfeitable rights to dividends (whether paid or unpaid), which are required to be treated as participating securities and included in the computation of basic earnings (loss) per share. Information on earnings (loss) per share is as follows (in thousands, except per share data): Three Months Ended October 2, September 27, Net Loss $ (14,148 ) $ (18,171 ) Less: Allocation to Participating Securities (112 ) (109 ) Net Loss Available to Common Shareholders $ (14,260 ) $ (18,280 ) Average Shares of Common Stock Outstanding 42,494 43,478 Diluted Average Shares Outstanding 42,494 43,478 Basic Earnings (Loss) Per Share $ (0.34 ) $ (0.42 ) Diluted Earnings (Loss) Per Share $ (0.34 ) $ (0.42 ) The dilutive effect of the potential exercise of outstanding stock-based awards to acquire common shares is calculated using the treasury stock method. The following options to purchase shares of common stock were excluded from the calculation of diluted earnings (loss) per share as the exercise prices were greater than the average market price of the common shares: Three Months Ended October 2, September 27, Options to Purchase Shares of Common Stock (in thousands) 408 910 Weighted Average Exercise Price of Options Excluded $ 20.82 $ 20.31 As a result of the Company incurring a net loss for the three months ended October 2, 2016 and September 27, 2015, potential incremental common shares of 695,455 and 882,464 respectively, were excluded from the calculation of diluted earnings (loss) per share because the effect would have been anti-dilutive. On April 21, 2016, the Board of Directors authorized up to $50 million in funds for use in the common share repurchase program with an expiration date of June 29, 2018. As of October 2, 2016, the total remaining authorization was approximately $41.5 million . The common share repurchase program authorizes the purchase of shares of the Company's common stock on the open market or in private transactions from time to time, depending on market conditions and certain governing loan covenants. During the three months ended October 2, 2016 , the Company repurchased 443,384 shares on the open market at an average price of $19.52 per share, as compared to 589,882 shares purchased on the open market at an average price of $18.95 per share during the three months ended September 27, 2015 . |
Investments Investments, Equity
Investments Investments, Equity Method Investments and Joint Ventures (Notes) | 3 Months Ended |
Oct. 02, 2016 | |
Investments, Equity Method Investments and Joint Ventures [Abstract] | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | Investments Investments represent the Company’s investments in unconsolidated affiliated companies. The Company concluded that its equity method investments are integral to its business. The equity method investments provide manufacturing and distribution functions, which are important parts of its operations. Since the third quarter of fiscal 2016, the Company has prospectively classified its equity in earnings of unconsolidated affiliates as a separate line item within Income (Loss) from Operations. For periods prior to the third quarter of fiscal 2016, equity in earnings from unconsolidated affiliates is classified in Other Income, Net. During the fourth quarter of fiscal 2016, the Company sold its investment in marketable securities related to its ownership of common stock of a publicly-traded company and recognized a gain in the Consolidated Statements of Operations. The Company received proceeds of $3.3 million related to the sale in the first quarter of fiscal 2017. |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 3 Months Ended |
Oct. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Postretirement Benefits | Pension and Postretirement Benefits The Company has noncontributory defined benefit retirement plans and postretirement plans covering certain employees. The following tables summarize the plans’ income and expense for the periods indicated (in thousands): Pension Benefits Other Postretirement Benefits Three Months Ended Three Months Ended October 2, September 27, October 2, September 27, Components of Net Periodic Expense (Income): Service Cost $ 1,727 $ 857 $ 63 $ 76 Interest Cost on Projected Benefit Obligation 10,846 13,042 594 809 Expected Return on Plan Assets (16,118 ) (17,827 ) — — Amortization of: Prior Service Cost (Credit) 45 45 (663 ) (665 ) Actuarial Loss 4,202 3,172 737 957 Net Periodic Expense (Income) $ 702 $ (711 ) $ 731 $ 1,177 The Company expects to make benefit payments of $3.0 million attributable to its non-qualified pension plans during fiscal 2017. During the first three months of fiscal 2017, the Company made payments of approximately $0.6 million for its non-qualified pension plans. The Company anticipates making benefit payments of approximately $9.0 million for its other postretirement benefit plans during fiscal 2017. During the first three months of fiscal 2017, the Company made payments of $3.4 million for its other postretirement benefit plans. During the first three months of fiscal 2017, the Company made no cash contributions to the qualified pension plan. Based upon current regulations and actuarial studies, the Company is not required to make contributions to the qualified pension plan in fiscal 2017 through fiscal 2018. The Company may be required to make further contributions in future years or the future expected funding requirements may change depending on a variety of factors including the actual return on plan assets, the funded status of the plan in future periods, and changes in actuarial assumptions or regulations. |
Stock Incentives
Stock Incentives | 3 Months Ended |
Oct. 02, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Incentives | Stock Incentives Stock based compensation expense is calculated by estimating the fair value of incentive stock awards granted and amortizing the estimated value over the awards' vesting period. Stock based compensation expense was $1.2 million for the three months ended October 2, 2016 . For the three months ended September 27, 2015 , stock based compensation expense was $1.6 million . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Oct. 02, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments & Hedging Activities The Company enters into derivative contracts designated as cash flow hedges to manage certain interest rate, foreign currency and commodity exposures. Company policy allows derivatives to be used only for identifiable exposures and, therefore, the Company does not enter into hedges for trading purposes where the sole objective is to generate profits. The Company formally designates the financial instrument as a hedge of a specific underlying exposure and documents both the risk management objectives and strategies for undertaking the hedge. The Company formally assesses, both at the inception and at least quarterly thereafter, whether the financial instruments that are used in hedging transactions are effective at offsetting changes in the forecasted cash flows of the related underlying exposure. Because of the high degree of effectiveness between the hedging instrument and the underlying exposure being hedged, fluctuations in the value of the derivative instruments are generally offset by changes in the forecasted cash flows of the underlying exposures being hedged. Derivative financial instruments are recorded within the Condensed Consolidated Balance Sheets as assets or liabilities, measured at fair value. The effective portion of gains or losses on derivatives designated as cash flow hedges are reported as a component of Accumulated Other Comprehensive Income (Loss) (AOCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of a financial instrument's change in fair value is immediately recognized in earnings. The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative expires or is sold, terminated, or exercised, the cash flow hedge is dedesignated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge. In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in other comprehensive income related to the hedging relationship. The Company enters into interest rate swaps to manage a portion of its interest rate risk from financing certain dealer and distributor inventories through a third party financing source. The swaps are designated as cash flow hedges and are used to effectively fix the interest payments to a third party financing source, exclusive of lender spreads, ranging from 0.98% to 1.60% for a notional principal amount of $157.5 million with expiration dates ranging from July 2017 through July 2021 . The Company enters into forward foreign currency contracts to hedge the risk from forecasted third party and intercompany sales or payments denominated in foreign currencies. These obligations generally require the Company to exchange foreign currencies for U.S. Dollars, Australian Dollars, Brazilian Real, Canadian Dollars, Chinese Renminbi, Euros, Japanese Yen, or Mexican Pesos. These contracts generally do not have a maturity of more than twenty-four months. The Company uses raw materials that are subject to price volatility. The Company hedges a portion of its exposure to the variability of cash flows associated with commodities used in the manufacturing process by entering into forward purchase contracts or commodity swaps. Derivative contracts designated as cash flow hedges are used by the Company to reduce exposure to variability in cash flows associated with future purchases of natural gas. These contracts generally do not have a maturity of more than thirty-six months. The Company has considered the counterparty credit risk related to all of its interest rate, foreign currency and commodity derivative contracts and deems any risk of counterparty default to be minimal. As of October 2, 2016 and July 3, 2016 , the Company had the following outstanding derivative contracts (in thousands): Contract Notional Amount October 2, July 3, Interest Rate: LIBOR Interest Rate (U.S. Dollars) Fixed 157,500 145,000 Foreign Currency: Australian Dollar Sell 41,121 39,935 Brazilian Real Buy 17,014 16,436 Canadian Dollar Sell 17,785 8,675 Chinese Renminbi Buy 133,450 171,475 Euro Sell 40,030 41,730 Japanese Yen Buy 805,000 587,000 Mexican Peso Sell — 3,500 Commodity: Natural Gas (Therms) Buy 11,764 11,771 The location and fair value of derivative instruments reported in the Condensed Consolidated Balance Sheets are as follows (in thousands): Balance Sheet Location Asset (Liability) Fair Value October 2, July 3, Interest rate contracts Other Long-Term Assets $ 88 $ — Accrued Liabilities (498 ) — Other Long-Term Liabilities (374 ) (1,367 ) Foreign currency contracts Other Current Assets 940 1,356 Other Long-Term Assets 12 2 Accrued Liabilities (2,708 ) (2,601 ) Other Long-Term Liabilities (86 ) (185 ) Commodity contracts Other Long-Term Assets 19 64 Accrued Liabilities (211 ) (190 ) Other Long-Term Liabilities (36 ) (16 ) $ (2,854 ) $ (2,937 ) The effect of derivative instruments on the Condensed Consolidated Statements of Operations and Comprehensive Loss is as follows (in thousands): Three Months Ended October 2, 2016 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 364 Net Sales $ (232 ) $ — Foreign currency contracts - sell (126 ) Net Sales (306 ) — Foreign currency contracts - buy (232 ) Cost of Goods Sold (18 ) — Commodity contracts (53 ) Cost of Goods Sold (80 ) — $ (47 ) $ (636 ) $ — Three Months Ended September 27, 2015 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (269 ) Net Sales $ (302 ) $ — Foreign currency contracts - sell 390 Net Sales 3,307 — Foreign currency contracts - buy (366 ) Cost of Goods Sold (136 ) — Commodity contracts (106 ) Cost of Goods Sold (132 ) — $ (351 ) $ 2,737 $ — During the next twelve months, the estimated net amount of losses on cash flow hedges as of October 2, 2016 expected to be reclassified out of AOCI into earnings is $1.8 million . |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Oct. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The following guidance establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels: Level 1: Quoted prices for identical instruments in active markets. Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-driven valuations whose inputs are observable or whose significant value drivers are observable. Level 3: Significant inputs to the valuation model are unobservable. The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of October 2, 2016 and July 3, 2016 (in thousands): Fair Value Measurements Using October 2, Level 1 Level 2 Level 3 Assets: Derivatives $ 1,059 $ — $ 1,059 $ — Liabilities: Derivatives $ 3,913 $ — $ 3,913 $ — July 3, Level 1 Level 2 Level 3 Assets: Derivatives $ 1,422 $ — $ 1,422 $ — Liabilities: Derivatives $ 4,359 $ — $ 4,359 $ — The fair value for Level 2 measurements are based upon the respective quoted market prices for comparable instruments in active markets, which include current market pricing for forward purchases of commodities, foreign currency forwards, and current interest rates. The Company has currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States. The estimated fair value of the Company's Senior Notes (as defined in Note 14) at October 2, 2016 and July 3, 2016 was $245.7 million and $240.2 million , respectively, compared to the carrying value of $223.1 million . The estimated fair value of the Senior Notes is based on quoted market prices for similar instruments and is, therefore, classified as Level 2 within the valuation hierarchy. The carrying value of the Revolver (as defined in Note 14) approximates fair value since the underlying rate of interest is variable based upon LIBOR rates. The Company believes that the carrying values of cash and cash equivalents, trade receivables, and accounts payable are reasonable estimates of their fair values at October 2, 2016 and July 3, 2016 due to the short-term nature of these instruments. |
Warranty
Warranty | 3 Months Ended |
Oct. 02, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Warranty | Warranty The Company recognizes the cost associated with its standard warranty on Engines and Products at the time of sale. The general warranty period begins at the time of sale and typically covers two years, but may vary due to product type and geographic location. The amount recognized is based on historical failure rates and current claim cost experience. The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands): Three Months Ended October 2, September 27, Beginning Balance $ 44,367 $ 48,006 Payments (8,196 ) (8,635 ) Provision for Current Year Warranties 4,600 5,834 Changes in Estimates (415 ) (38 ) Ending Balance $ 40,356 $ 45,167 |
Income Taxes
Income Taxes | 3 Months Ended |
Oct. 02, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the first quarter of fiscal 2017 was 30.5% , compared to 31.2% for the same respective period last year. The effective tax rates for the first quarters of fiscal 2017 and 2016 were primarily impacted by losses incurred at certain foreign subsidiaries for which the Company does not receive tax benefits and foreign earnings in jurisdictions with tax rates that vary from the U.S. statutory rate. For the three months ended October 2, 2016 , the Company's unrecognized tax benefits increased by $0.2 million , all of which impacted the current effective tax rate. Income tax returns are filed in the U.S., state, and foreign jurisdictions and related audits occur on a regular basis. In the U.S., the Company is currently under audit for the fiscal years 2010 and 2013, and is no longer subject to U.S. federal income tax examinations before fiscal 2010. The Company is also currently under audit by various state and foreign jurisdictions. The Company is no longer subject to tax examinations before fiscal 2006 in its major foreign jurisdictions. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Oct. 02, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies The Company is subject to various unresolved legal actions that arise in the normal course of its business. These actions typically relate to product liability (including asbestos-related liability), patent and trademark matters, and disputes with customers, suppliers, distributors and dealers, competitors and employees. On May 14, 2010, the Company notified retirees and certain retirement eligible employees of various amendments to the Company-sponsored retiree medical plans intended to better align the plans offered to both hourly and salaried retirees. On August 16, 2010, a putative class of retirees who retired prior to August 1, 2006 and the United Steel Workers filed a complaint in the U.S. District Court for the Eastern District of Wisconsin (Merrill, Weber, Carpenter, et al.; United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO/CLC v. Briggs & Stratton Corporation; Group Insurance Plan of Briggs & Stratton Corporation; and Does 1 through 20, Docket No. 10-C-0700), contesting the Company's right to make these changes. The complaint sought an injunction preventing the alleged unilateral termination or reduction in insurance coverage to the class of retirees, a permanent injunction preventing defendants from ever making changes to the retirees' insurance coverage, restitution with interest (if applicable) and attorneys' fees and costs. A class was certified and discovery was concluded. Both parties moved for summary judgment, which was fully briefed on December 23, 2014. The court denied both sides’ motions on September 3, 2015, concluding that factual issues were present which precluded summary judgment and should be determined by the jury at trial. The Company filed a motion requesting permission to appeal the court’s decision on an interlocutory basis. The plaintiffs also moved the court to clarify its decision. Upon the request of all parties, the court stayed any further decisions in the matter pending mediation in mid-December 2015. The mediation led to an agreement in principle to settle this case for an aggregate payment of $3.95 million covering both claimed benefits and plaintiffs’ attorneys fees, which resulted in a contribution of $1.975 million from the Company and $1.975 million from a third party insurance provider. The Company recorded a total charge of $1.975 million as Engineering, Selling, General and Administrative Expense on the Condensed Consolidated Statements of Operations in the second quarter of fiscal 2016 related to this matter. The parties filed a signed Stipulation of Settlement with the court on April 12, 2016 and the court held a hearing on the fairness, reasonableness and adequacy of the terms and conditions of the settlement and on the fee petition of the plaintiffs' counsel on August 11, 2016. The court approved the settlement following that hearing. On May 12, 2010, Exmark Manufacturing Company, Inc. filed suit against Briggs & Stratton Power Products Group, LLC (“BSPPG”), a wholly owned subsidiary of the Company (Case No. 8:10CV187, U.S. District Court for the District of Nebraska), alleging that certain Ferris® and Snapper Pro® mower decks infringed an Exmark mower deck patent. Exmark sought damages relating to sales since May 2004, attorneys’ fees, and enhanced damages. As a result of a reexamination proceeding in 2012, the United States Patent and Trademark Office (“USPTO”) initially rejected the asserted Exmark claims as invalid. However, in 2014, that decision was reversed by the USPTO on appeal by Exmark. Following discovery, each of BSPPG and Exmark filed several motions for summary judgment in the Nebraska district court, which were decided on July 28, 2015. The court concluded that older mower deck designs infringed Exmark’s patent, leaving for trial the issues of whether current designs infringed, the amount of damages, and whether any infringement was willful. The trial began on September 8, 2015, and on September 18, 2015, the jury returned its verdict, finding that BSPPG’s current mower deck designs do not infringe the Exmark patent. As to the older designs, the jury awarded Exmark $24.3 million in damages and found that the infringement was willful, allowing the judge to enhance the jury’s damages award post-trial by up to three times. Also on September 18, 2015, the U.S. Court of Appeals for the Federal Circuit issued its decision in an unrelated case, SCA Hygiene Products Aktiebolag SCA Personal Care, Inc. v. First Quality Baby Products, LLC, et al. (Case No. 2013-1564) (“SCA”), confirming the availability of laches as a defense to patent infringement claims. Laches is an equitable doctrine that may bar a patent owner from obtaining damages prior to commencing suit, in circumstances in which the owner knows or should have known its patent was being infringed for more than six years. Although the court in the Exmark case ruled before trial that BSPPG could not rely on the defense of laches, as a result of the subsequent SCA decision, the court held a bench trial on that defense on October 21 and 22, 2015. On May 2, 2016, the United States Supreme Court agreed to review the SCA decision. The parties submitted post-trial motions and briefing related to: damages; willfulness; laches; attorney fees; enhanced damages; and prejudgment/post-judgment interest and costs. All post-trial motions and briefing were completed on December 18, 2015. On May 11, 2016, the court ruled on those post-trial motions and entered judgment against BSPPG and in favor of Exmark in the amount of $24.3 million in compensatory damages, an additional $24.3 million in enhanced damages, and $1.5 million in pre-judgment interest along with post-judgment interest and costs to be determined. BSPPG and the Company strongly disagree with the jury verdict, certain rulings made before and during trial, and the May 11, 2016 post-trial rulings. BSPPG has appealed to the U.S. Court of Appeals for the Federal Circuit on several bases, including the issues of obviousness and invalidity of Exmark’s patent, the damages calculation, willfulness and laches. In assessing whether the Company should accrue a liability in its financial statements as a result of the May 11, 2016 post-trial rulings, the Company considered various factors, including the legal and factual circumstances of the case, the trial record, the post-trial orders, the current status of the proceedings, applicable law, the views of legal counsel, and the likelihood of successful appeals. As a result of this review, the Company has concluded that a loss from this case is not probable and reasonably estimable at this time and, therefore, a liability has not been recorded with respect to this case as of October 2, 2016. Although it is not possible to predict with certainty the outcome of these and other unresolved legal actions or the range of possible loss, the Company believes the unresolved legal actions will not have a material adverse effect on its results of operations, financial position or cash flows. |
Segment Information
Segment Information | 3 Months Ended |
Oct. 02, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company aggregates operating segments that have similar economic characteristics, products, production processes, types or classes of customers and distribution methods into reportable segments. The Company concluded that it operates two reportable segments: Engines and Products. The Company uses “segment income (loss)” as the primary measure to evaluate operating performance and allocate capital resources for the Engines and Products Segments. Prior to the third quarter of fiscal 2016, segment income (loss) is defined as income (loss) from operations plus equity in earnings of unconsolidated affiliates. Beginning with the third quarter of fiscal 2016, segment income (loss) is equal to operating income (loss). Summarized segment data is as follows (in thousands): Three Months Ended October 2, September 27, NET SALES: Engines $ 154,498 $ 150,083 Products 150,795 162,541 Inter-Segment Eliminations (18,496 ) (23,166 ) Total* $ 286,797 $ 289,458 * International sales included in net sales based on product shipment destination $ 109,887 $ 91,541 GROSS PROFIT: Engines $ 30,985 $ 23,777 Products 22,951 27,143 Inter-Segment Eliminations (1,415 ) (1,208 ) Total $ 52,521 $ 49,712 SEGMENT INCOME (LOSS): Engines $ (11,654 ) $ (20,754 ) Products (3,245 ) 62 Inter-Segment Eliminations (1,415 ) (1,208 ) Total $ (16,314 ) $ (21,900 ) Reconciliation from Segment Income (Loss) to Loss Before Income Taxes: Equity in Earnings of Unconsolidated Affiliates — 1,436 Loss from Operations $ (16,314 ) $ (23,336 ) INTEREST EXPENSE (4,505 ) (4,536 ) OTHER INCOME, Net 457 1,455 Loss Before Income Taxes (20,362 ) (26,417 ) CREDIT FOR INCOME TAXES (6,214 ) (8,246 ) Net Loss $ (14,148 ) $ (18,171 ) Pre-tax restructuring charges and acquisition-related charges included in gross profit were as follows (in thousands): Three Months Ended October 2, September 27, Engines $ — $ 464 Products — 2,245 Total $ — $ 2,709 Pre-tax restructuring charges, acquisition-related charges, and litigation charges included in segment income (loss) were as follows (in thousands): Three Months Ended October 2, September 27, Engines $ — $ 2,204 Products — 2,295 Total $ — $ 4,499 |
Debt
Debt | 3 Months Ended |
Oct. 02, 2016 | |
Debt Disclosure [Abstract] | |
Debt | Debt The following is a summary of the Company’s indebtedness (in thousands): October 2, July 3, Multicurrency Credit Agreement $ 50,175 $ — Total Short-Term Debt $ 50,175 $ — 6.875% Senior Notes $ 223,149 $ 223,149 Unamortized Debt Issuance Costs associated with 6.875% Senior Notes 1,693 1,810 Total Long-Term Debt $ 221,456 $ 221,339 On December 20, 2010, the Company issued $225 million of 6.875% Senior Notes ("Senior Notes") due December 15, 2020 . During fiscal 2016, the Company repurchased $1.9 million of the Senior Notes after receiving unsolicited offers from bondholders. On March 25, 2016, the Company entered into a $500 million amended and restated multicurrency credit agreement (the “Revolver”) that matures on March 25, 2021 . The Revolver amended and restated the Company’s $500 million multicurrency credit agreement dated as of October 13, 2011 (as previously amended), which would have matured on October 21, 2018 . The initial maximum availability under the Revolver is $500 million . Availability under the revolving credit facility is reduced by outstanding letters of credit. The Company may from time to time increase the maximum availability under the revolving credit facility by up to $250 million if certain conditions are satisfied. As of October 2, 2016 , $50.2 million was outstanding under the Revolver. There were no borrowings under the Revolver as of July 3, 2016. The Company classifies debt issuance costs related to the Revolver as an asset, regardless of whether it has any outstanding borrowings on the line of credit arrangements. The Senior Notes and the Revolver contain restrictive covenants. These covenants include restrictions on the ability of the Company and/or certain subsidiaries to pay dividends, repurchase equity interests of the Company and certain subsidiaries, incur indebtedness, create liens, consolidate and merge and dispose of assets, and enter into transaction with the Company's affiliates. The Revolver contains financial covenants that require the Company to maintain a minimum interest coverage ratio and impose on the Company a maximum average leverage ratio. |
Separate Financial Information
Separate Financial Information Of Subsidiary Guarantor Of Indebtedness | 3 Months Ended |
Oct. 02, 2016 | |
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, was the sole joint and several guarantor of the Domestic Indebtedness (the “Guarantor”) as of October 2, 2016 and July 3, 2016. The Guarantor provides a full and unconditional guarantee of the Domestic Indebtedness, except for certain customary limitations. These customary limitations, which are described in detail in the First Supplemental Indenture (Indenture) dated December 20, 2010, include (i) the sale of the guarantor or substantially all of the guarantor’s assets, (ii) the designation of the guarantor as an unrestricted subsidiary for covenant purposes, (iii) the guarantor ceasing to guarantee certain other indebtedness, if the guarantor is also not a significant subsidiary within the meaning of Article 1, Rule 1-02 of Regulation S-X, and (iv) achieving the Indenture’s requirements for legal defeasance, covenant defeasance or discharge. 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, 2016 Carrying Amount Maximum Guarantee 6.875% Senior Notes $ 223,149 $ 223,149 Multicurrency Credit Agreement $ 50,175 $ 500,000 The following condensed supplemental consolidating financial information reflects the summarized financial information of Briggs & Stratton, its Guarantor Subsidiary and its Non-Guarantor Subsidiaries (in thousands): CONSOLIDATING BALANCE SHEET As of October 2, 2016 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CURRENT ASSETS: Cash and Cash Equivalents $ 1,416 $ 429 $ 41,115 $ — $ 42,960 Accounts Receivable, Net 66,065 50,636 44,009 — 160,710 Intercompany Accounts Receivable 37,178 6,942 45,540 (89,660 ) — Inventories, Net 222,452 161,963 86,392 — 470,807 Deferred Income Tax Asset 29,162 11,978 2,553 — 43,693 Prepaid Expenses and Other Current Assets 29,453 5,935 6,082 — 41,470 Total Current Assets 385,726 237,883 225,691 (89,660 ) 759,640 OTHER ASSETS: Goodwill 128,300 — 33,370 $ — 161,670 Investments 52,049 — — — 52,049 Investments in Subsidiaries 510,845 — — (510,845 ) — Intercompany Note Receivable 982 84,641 53,457 (139,080 ) — Other Intangible Assets, Net — 53,202 50,116 — 103,318 Long-Term Deferred Income Tax Asset 76,502 — 2,459 (29,231 ) 49,730 Other Long-Term Assets, Net 12,117 4,306 1,065 — 17,488 Total Other Assets 780,795 142,149 140,467 (679,156 ) 384,255 PLANT AND EQUIPMENT, NET 277,018 24,527 27,258 — 328,803 TOTAL ASSETS $ 1,443,539 $ 404,559 $ 393,416 $ (768,816 ) $ 1,472,698 CURRENT LIABILITIES: Accounts Payable $ 114,995 $ 48,576 $ 22,897 $ — $ 186,468 Intercompany Accounts Payable 34,012 9,634 46,014 (89,660 ) — Short-Term Debt 50,175 — — — 50,175 Accrued Liabilities 66,303 39,868 23,534 — 129,705 Total Current Liabilities 265,485 98,078 92,445 (89,660 ) 366,348 OTHER LIABILITIES: Accrued Pension Cost 305,112 355 852 — 306,319 Accrued Employee Benefits 23,341 — — — 23,341 Accrued Postretirement Health Care Obligation 22,418 13,702 — — 36,120 Intercompany Note Payable 98,621 — 40,459 (139,080 ) — Other Long-Term Liabilities 37,530 24,698 16,541 (29,231 ) 49,538 Long-Term Debt 221,456 — — — 221,456 Total Other Liabilities 708,478 38,755 57,852 (168,311 ) 636,774 TOTAL SHAREHOLDERS’ INVESTMENT 469,576 267,726 243,119 (510,845 ) 469,576 TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT $ 1,443,539 $ 404,559 $ 393,416 $ (768,816 ) $ 1,472,698 CONSOLIDATING BALANCE SHEET As of July 3, 2016 Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CURRENT ASSETS: Cash and Cash Equivalents $ 40,966 $ 741 $ 48,132 $ — $ 89,839 Accounts Receivable, Net 96,366 61,467 33,845 — 191,678 Intercompany Accounts Receivable 26,340 5,528 41,530 (73,398 ) — Inventories, Net 160,596 138,175 87,294 — 386,065 Deferred Income Tax Asset 30,260 12,470 2,006 — 44,736 Prepaid Expenses and Other Current Assets 18,105 7,767 4,801 (2,254 ) 28,419 Total Current Assets 372,633 226,148 217,608 (75,652 ) 740,737 OTHER ASSETS: Goodwill 128,300 — 33,268 — 161,568 Investments 52,757 — — — 52,757 Investments in Subsidiaries 516,796 — — (516,796 ) — Intercompany Note Receivable 5,976 111,290 47,157 (164,423 ) — Other Intangible Assets, Net — 53,503 50,661 — 104,164 Long-Term Deferred Income Tax Asset 80,409 — 2,230 (29,172 ) 53,467 Other Long-Term Assets, Net 11,992 4,639 1,070 — 17,701 Total Other Assets 796,230 169,432 134,386 (710,391 ) 389,657 PLANT AND EQUIPMENT, NET 274,741 24,702 26,830 — 326,273 TOTAL ASSETS $ 1,443,604 $ 420,282 $ 378,824 $ (786,043 ) $ 1,456,667 CURRENT LIABILITIES: Accounts Payable $ 112,178 $ 50,529 $ 18,445 $ — $ 181,152 Intercompany Accounts Payable 33,079 6,347 33,972 (73,398 ) — Accrued Liabilities 65,884 48,997 24,522 (2,254 ) 137,149 Total Current Liabilities 211,141 105,873 76,939 (75,652 ) 318,301 OTHER LIABILITIES: Accrued Pension Cost 309,191 343 844 — 310,378 Accrued Employee Benefits 23,483 — — — 23,483 Accrued Postretirement Health Care Obligation 24,587 13,854 — — 38,441 Intercompany Note Payable 123,232 — 41,191 (164,423 ) — Other Long-Term Liabilities 37,005 26,679 16,587 (29,172 ) 51,099 Long-Term Debt 221,339 — — — 221,339 Total Other Liabilities 738,837 40,876 58,622 (193,595 ) 644,740 TOTAL SHAREHOLDERS’ INVESTMENT 493,626 273,533 243,263 (516,796 ) 493,626 TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT $ 1,443,604 $ 420,282 $ 378,824 $ (786,043 ) $ 1,456,667 CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended October 2, 2016 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 144,146 $ 98,861 $ 81,685 $ (37,895 ) $ 286,797 Cost of Goods Sold 119,430 87,089 65,652 (37,895 ) 234,276 Gross Profit 24,716 11,772 16,033 — 52,521 Engineering, Selling, General and Administrative Expenses 38,965 17,396 15,702 — 72,063 Equity in Earnings of Unconsolidated Affiliates 1,816 1,412 — — 3,228 Equity in Loss (Earnings) from Subsidiaries 2,001 — — (2,001 ) — Income (Loss) from Operations (14,434 ) (4,212 ) 331 2,001 (16,314 ) Interest Expense (4,436 ) (67 ) (2 ) — (4,505 ) Other Income (Loss), Net (404 ) 11 850 — 457 Income (Loss) before Income Taxes (19,274 ) (4,268 ) 1,179 2,001 (20,362 ) Provision (Credit) for Income Taxes (5,126 ) (1,548 ) 460 — (6,214 ) Net Income (Loss) $ (14,148 ) $ (2,720 ) $ 719 $ 2,001 $ (14,148 ) Comprehensive Income (Loss) $ (10,034 ) $ (2,347 ) $ 1,064 $ 1,283 $ (10,034 ) CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 27, 2015 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 149,500 $ 106,506 $ 82,492 $ (49,040 ) $ 289,458 Cost of Goods Sold 128,601 93,485 64,241 (49,040 ) 237,287 Restructuring Charges — 1,995 464 — 2,459 Gross Profit 20,899 11,026 17,787 — 49,712 Engineering, Selling, General and Administrative Expenses 37,805 16,954 17,375 — 72,134 Restructuring Charges 890 24 — — 914 Equity in Loss (Earnings) from Subsidiaries 3,695 — — (3,695 ) — Income (Loss) from Operations (21,491 ) (5,952 ) 412 3,695 (23,336 ) Interest Expense (4,472 ) (64 ) — — (4,536 ) Other Income, Net 703 790 (38 ) — 1,455 Income (Loss) before Income Taxes (25,260 ) (5,226 ) 374 3,695 (26,417 ) Provision (Credit) for Income Taxes (7,089 ) (1,898 ) 741 — (8,246 ) Net Income (Loss) $ (18,171 ) $ (3,328 ) $ (367 ) $ 3,695 $ (18,171 ) Comprehensive Income (Loss) $ (28,802 ) $ (3,601 ) $ (6,506 ) $ 10,107 $ (28,802 ) CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended October 2, 2016 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used in) Operating Activities $ (51,795 ) $ (26,097 ) $ 1,692 $ (297 ) $ (76,497 ) Cash Flows from Investing Activities: Capital Expenditures (13,463 ) (881 ) (1,420 ) — (15,764 ) Proceeds Received on Disposition of Plant and Equipment — 17 35 — 52 Proceeds on Sale of Investments in Marketable Securities 3,343 — — — 3,343 Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt (20,273 ) — — 20,273 — Net Cash Provided by (Used in) Investing Activities (30,393 ) (864 ) (1,385 ) 20,273 (12,369 ) Cash Flows from Financing Activities: Net Borrowings (Repayments) on Loans, Revolver, Notes Payable and Long-Term Debt 50,175 26,649 (6,376 ) (20,273 ) 50,175 Treasury Stock Purchases (8,654 ) — — — (8,654 ) Payment of Acquisition Contingent Liability — — (813 ) — (813 ) Stock Option Exercise Proceeds and Tax Benefits 1,117 — — — 1,117 Cash Dividends Paid — — (297 ) 297 — Net Cash (Used in) Provided by Financing Activities 42,638 26,649 (7,486 ) (19,976 ) 41,825 Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents — — 162 — 162 Net Decrease in Cash and Cash Equivalents (39,550 ) (312 ) (7,017 ) — (46,879 ) Cash and Cash Equivalents, Beginning 40,966 741 48,132 — 89,839 Cash and Cash Equivalents, Ending $ 1,416 $ 429 $ 41,115 $ — $ 42,960 CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended September 27, 2015 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Used in Operating Activities $ (67,715 ) $ (8,420 ) $ (6,311 ) $ (243 ) $ (82,689 ) Cash Flows from Investing Activities: Capital Expenditures (10,916 ) (1,126 ) (386 ) — (12,428 ) Proceeds Received on Disposition of Plant and Equipment — 504 11 — 515 Cash Investment in Subsidiary — — — — — Cash Paid for Acquisition, Net of Cash Acquired — — (2,174 ) — (2,174 ) Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt 2,489 — — (2,489 ) — Net Cash Used in Investing Activities (8,427 ) (622 ) (2,549 ) (2,489 ) (14,087 ) Cash Flows from Financing Activities: Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt 38,410 (8,063 ) 5,574 2,489 38,410 Treasury Stock Purchases (11,178 ) — — — (11,178 ) Stock Option Exercise Proceeds and Tax Benefits 6,433 — — — 6,433 Cash Investment in Subsidiary — — (243 ) 243 — Net Cash Provided by (Used in) Financing Activities 33,665 (8,063 ) 5,331 2,732 33,665 Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents — — (1,284 ) — (1,284 ) Net Decrease in Cash and Cash Equivalents (42,477 ) (17,105 ) (4,813 ) — (64,395 ) Cash and Cash Equivalents, Beginning 45,395 17,237 55,758 — 118,390 Cash and Cash Equivalents, Ending $ 2,918 $ 132 $ 50,945 $ — $ 53,995 |
Accumulated Other Comprehensi22
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Oct. 02, 2016 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following tables set forth the changes in accumulated other comprehensive income (loss) (in thousands): Three Months Ended October 2, 2016 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (23,863 ) $ (1,552 ) $ (313,035 ) $ (338,450 ) Other Comprehensive Income (Loss) Before Reclassification 1,601 (710 ) — 891 Income Tax Benefit (Expense) — 266 — 266 Net Other Comprehensive Income (Loss) Before Reclassifications 1,601 (444 ) — 1,157 Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — 324 — 324 Realized (Gains) Losses - Commodity Contracts (1) — 80 — 80 Realized (Gains) Losses - Interest Rate Swaps (1) — 232 — 232 Amortization of Prior Service Costs (Credits) (2) — — (618 ) (618 ) Amortization of Actuarial Losses (2) — — 4,714 4,714 Total Reclassifications Before Tax — 636 4,096 4,732 Income Tax Expense (Benefit) — (239 ) (1,536 ) (1,775 ) Net Reclassifications — 397 2,560 2,957 Other Comprehensive Income (Loss) 1,601 (47 ) 2,560 4,114 Ending Balance $ (22,262 ) $ (1,599 ) $ (310,475 ) $ (334,336 ) (1) Amounts reclassified to net income (loss) are included in net sales or cost of goods sold. See Note 8 for information related to derivative financial instruments. (2) Amounts reclassified to net income (loss) are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 6 for information related to pension and postretirement benefit plans. Three Months Ended September 27, 2015 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Beginning Balance $ (19,117 ) $ 1,212 $ (261,205 ) $ (279,110 ) Other Comprehensive Income (Loss) Before Reclassification (12,473 ) 2,176 — (10,297 ) Income Tax Benefit (Expense) — (816 ) — (816 ) Net Other Comprehensive Income (Loss) Before Reclassifications (12,473 ) 1,360 — (11,113 ) Reclassifications: Realized (Gains) Losses - Foreign Currency Contracts (1) — (3,171 ) — (3,171 ) Realized (Gains) Losses - Commodity Contracts (1) — 132 — 132 Realized (Gains) Losses - Interest Rate Swaps (1) — 302 — 302 Amortization of Prior Service Costs (Credits) (2) — — (620 ) (620 ) Amortization of Actuarial Losses (2) — — 4,129 4,129 Total Reclassifications Before Tax — (2,737 ) 3,509 772 Income Tax Expense (Benefit) — 1,026 (1,316 ) (290 ) Net Reclassifications — (1,711 ) 2,193 482 Other Comprehensive Income (Loss) (12,473 ) (351 ) 2,193 (10,631 ) Ending Balance $ (31,590 ) $ 861 $ (259,012 ) $ (289,741 ) (1) Amounts reclassified to net income (loss) are included in net sales or cost of goods sold. See Note 8 for information related to derivative financial instruments. (2) Amounts reclassified to net income (loss) are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 6 for information related to pension and postretirement benefit plans. |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 3 Months Ended |
Oct. 02, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings (Loss) Per Share, Basic and Diluted | Information on earnings (loss) per share is as follows (in thousands, except per share data): Three Months Ended October 2, September 27, Net Loss $ (14,148 ) $ (18,171 ) Less: Allocation to Participating Securities (112 ) (109 ) Net Loss Available to Common Shareholders $ (14,260 ) $ (18,280 ) Average Shares of Common Stock Outstanding 42,494 43,478 Diluted Average Shares Outstanding 42,494 43,478 Basic Earnings (Loss) Per Share $ (0.34 ) $ (0.42 ) Diluted Earnings (Loss) Per Share $ (0.34 ) $ (0.42 ) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The following options to purchase shares of common stock were excluded from the calculation of diluted earnings (loss) per share as the exercise prices were greater than the average market price of the common shares: Three Months Ended October 2, September 27, Options to Purchase Shares of Common Stock (in thousands) 408 910 Weighted Average Exercise Price of Options Excluded $ 20.82 $ 20.31 |
Pension and Postretirement Be24
Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Oct. 02, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Benefit Costs | The following tables summarize the plans’ income and expense for the periods indicated (in thousands): Pension Benefits Other Postretirement Benefits Three Months Ended Three Months Ended October 2, September 27, October 2, September 27, Components of Net Periodic Expense (Income): Service Cost $ 1,727 $ 857 $ 63 $ 76 Interest Cost on Projected Benefit Obligation 10,846 13,042 594 809 Expected Return on Plan Assets (16,118 ) (17,827 ) — — Amortization of: Prior Service Cost (Credit) 45 45 (663 ) (665 ) Actuarial Loss 4,202 3,172 737 957 Net Periodic Expense (Income) $ 702 $ (711 ) $ 731 $ 1,177 |
Derivative Instruments and He25
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Oct. 02, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Contracts | As of October 2, 2016 and July 3, 2016 , the Company had the following outstanding derivative contracts (in thousands): Contract Notional Amount October 2, July 3, Interest Rate: LIBOR Interest Rate (U.S. Dollars) Fixed 157,500 145,000 Foreign Currency: Australian Dollar Sell 41,121 39,935 Brazilian Real Buy 17,014 16,436 Canadian Dollar Sell 17,785 8,675 Chinese Renminbi Buy 133,450 171,475 Euro Sell 40,030 41,730 Japanese Yen Buy 805,000 587,000 Mexican Peso Sell — 3,500 Commodity: Natural Gas (Therms) Buy 11,764 11,771 |
Schedule of Derivative Instruments in Consolidated Condensed Balance Sheets, Fair Value | The location and fair value of derivative instruments reported in the Condensed Consolidated Balance Sheets are as follows (in thousands): Balance Sheet Location Asset (Liability) Fair Value October 2, July 3, Interest rate contracts Other Long-Term Assets $ 88 $ — Accrued Liabilities (498 ) — Other Long-Term Liabilities (374 ) (1,367 ) Foreign currency contracts Other Current Assets 940 1,356 Other Long-Term Assets 12 2 Accrued Liabilities (2,708 ) (2,601 ) Other Long-Term Liabilities (86 ) (185 ) Commodity contracts Other Long-Term Assets 19 64 Accrued Liabilities (211 ) (190 ) Other Long-Term Liabilities (36 ) (16 ) $ (2,854 ) $ (2,937 ) |
Schedule of Derivative Instruments, Gain (Loss) in Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) | The effect of derivative instruments on the Condensed Consolidated Statements of Operations and Comprehensive Loss is as follows (in thousands): Three Months Ended October 2, 2016 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ 364 Net Sales $ (232 ) $ — Foreign currency contracts - sell (126 ) Net Sales (306 ) — Foreign currency contracts - buy (232 ) Cost of Goods Sold (18 ) — Commodity contracts (53 ) Cost of Goods Sold (80 ) — $ (47 ) $ (636 ) $ — Three Months Ended September 27, 2015 Amount of Gain (Loss) Recognized in Other Comprehensive Income (Loss) on Derivatives, Net of Taxes (Effective Portion) Classification of Gain (Loss) Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) Recognized in Earnings (Ineffective Portion) Interest rate contracts $ (269 ) Net Sales $ (302 ) $ — Foreign currency contracts - sell 390 Net Sales 3,307 — Foreign currency contracts - buy (366 ) Cost of Goods Sold (136 ) — Commodity contracts (106 ) Cost of Goods Sold (132 ) — $ (351 ) $ 2,737 $ — |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Oct. 02, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule Of Assets And Liabilities Measured At Fair Value On A Recurring Basis | The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of October 2, 2016 and July 3, 2016 (in thousands): Fair Value Measurements Using October 2, Level 1 Level 2 Level 3 Assets: Derivatives $ 1,059 $ — $ 1,059 $ — Liabilities: Derivatives $ 3,913 $ — $ 3,913 $ — July 3, Level 1 Level 2 Level 3 Assets: Derivatives $ 1,422 $ — $ 1,422 $ — Liabilities: Derivatives $ 4,359 $ — $ 4,359 $ — |
Warranty (Tables)
Warranty (Tables) | 3 Months Ended |
Oct. 02, 2016 | |
Standard Product Warranty Disclosure [Abstract] | |
Schedule of Warranty Liability | The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands): Three Months Ended October 2, September 27, Beginning Balance $ 44,367 $ 48,006 Payments (8,196 ) (8,635 ) Provision for Current Year Warranties 4,600 5,834 Changes in Estimates (415 ) (38 ) Ending Balance $ 40,356 $ 45,167 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Oct. 02, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information, by Segment | Summarized segment data is as follows (in thousands): Three Months Ended October 2, September 27, NET SALES: Engines $ 154,498 $ 150,083 Products 150,795 162,541 Inter-Segment Eliminations (18,496 ) (23,166 ) Total* $ 286,797 $ 289,458 * International sales included in net sales based on product shipment destination $ 109,887 $ 91,541 GROSS PROFIT: Engines $ 30,985 $ 23,777 Products 22,951 27,143 Inter-Segment Eliminations (1,415 ) (1,208 ) Total $ 52,521 $ 49,712 SEGMENT INCOME (LOSS): Engines $ (11,654 ) $ (20,754 ) Products (3,245 ) 62 Inter-Segment Eliminations (1,415 ) (1,208 ) Total $ (16,314 ) $ (21,900 ) Reconciliation from Segment Income (Loss) to Loss Before Income Taxes: Equity in Earnings of Unconsolidated Affiliates — 1,436 Loss from Operations $ (16,314 ) $ (23,336 ) INTEREST EXPENSE (4,505 ) (4,536 ) OTHER INCOME, Net 457 1,455 Loss Before Income Taxes (20,362 ) (26,417 ) CREDIT FOR INCOME TAXES (6,214 ) (8,246 ) Net Loss $ (14,148 ) $ (18,171 ) |
Restructuring Charges Impact on Gross Profit by Segment | Pre-tax restructuring charges and acquisition-related charges included in gross profit were as follows (in thousands): Three Months Ended October 2, September 27, Engines $ — $ 464 Products — 2,245 Total $ — $ 2,709 |
Restructuring Charges Impact on Operating Income Loss by Segment | Pre-tax restructuring charges, acquisition-related charges, and litigation charges included in segment income (loss) were as follows (in thousands): Three Months Ended October 2, September 27, Engines $ — $ 2,204 Products — 2,295 Total $ — $ 4,499 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Oct. 02, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Indebtedness | The following is a summary of the Company’s indebtedness (in thousands): October 2, July 3, Multicurrency Credit Agreement $ 50,175 $ — Total Short-Term Debt $ 50,175 $ — 6.875% Senior Notes $ 223,149 $ 223,149 Unamortized Debt Issuance Costs associated with 6.875% Senior Notes 1,693 1,810 Total Long-Term Debt $ 221,456 $ 221,339 |
Separate Financial Informatio30
Separate Financial Information Of Subsidiary Guarantor Of Indebtedness (Tables) | 3 Months Ended |
Oct. 02, 2016 | |
Separate Financial Information Of Subsidiary Guarantors Of Indebtedness | |
Schedule Of Outstanding Amounts Related To Guaranteed Debt | The Company had the following outstanding amounts related to the guaranteed debt (in thousands): October 2, 2016 Carrying Amount Maximum Guarantee 6.875% Senior Notes $ 223,149 $ 223,149 Multicurrency Credit Agreement $ 50,175 $ 500,000 |
Schedule of Condensed Supplemental Consolidating Balance Sheets | CONSOLIDATING BALANCE SHEET As of October 2, 2016 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CURRENT ASSETS: Cash and Cash Equivalents $ 1,416 $ 429 $ 41,115 $ — $ 42,960 Accounts Receivable, Net 66,065 50,636 44,009 — 160,710 Intercompany Accounts Receivable 37,178 6,942 45,540 (89,660 ) — Inventories, Net 222,452 161,963 86,392 — 470,807 Deferred Income Tax Asset 29,162 11,978 2,553 — 43,693 Prepaid Expenses and Other Current Assets 29,453 5,935 6,082 — 41,470 Total Current Assets 385,726 237,883 225,691 (89,660 ) 759,640 OTHER ASSETS: Goodwill 128,300 — 33,370 $ — 161,670 Investments 52,049 — — — 52,049 Investments in Subsidiaries 510,845 — — (510,845 ) — Intercompany Note Receivable 982 84,641 53,457 (139,080 ) — Other Intangible Assets, Net — 53,202 50,116 — 103,318 Long-Term Deferred Income Tax Asset 76,502 — 2,459 (29,231 ) 49,730 Other Long-Term Assets, Net 12,117 4,306 1,065 — 17,488 Total Other Assets 780,795 142,149 140,467 (679,156 ) 384,255 PLANT AND EQUIPMENT, NET 277,018 24,527 27,258 — 328,803 TOTAL ASSETS $ 1,443,539 $ 404,559 $ 393,416 $ (768,816 ) $ 1,472,698 CURRENT LIABILITIES: Accounts Payable $ 114,995 $ 48,576 $ 22,897 $ — $ 186,468 Intercompany Accounts Payable 34,012 9,634 46,014 (89,660 ) — Short-Term Debt 50,175 — — — 50,175 Accrued Liabilities 66,303 39,868 23,534 — 129,705 Total Current Liabilities 265,485 98,078 92,445 (89,660 ) 366,348 OTHER LIABILITIES: Accrued Pension Cost 305,112 355 852 — 306,319 Accrued Employee Benefits 23,341 — — — 23,341 Accrued Postretirement Health Care Obligation 22,418 13,702 — — 36,120 Intercompany Note Payable 98,621 — 40,459 (139,080 ) — Other Long-Term Liabilities 37,530 24,698 16,541 (29,231 ) 49,538 Long-Term Debt 221,456 — — — 221,456 Total Other Liabilities 708,478 38,755 57,852 (168,311 ) 636,774 TOTAL SHAREHOLDERS’ INVESTMENT 469,576 267,726 243,119 (510,845 ) 469,576 TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT $ 1,443,539 $ 404,559 $ 393,416 $ (768,816 ) $ 1,472,698 CONSOLIDATING BALANCE SHEET As of July 3, 2016 Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated CURRENT ASSETS: Cash and Cash Equivalents $ 40,966 $ 741 $ 48,132 $ — $ 89,839 Accounts Receivable, Net 96,366 61,467 33,845 — 191,678 Intercompany Accounts Receivable 26,340 5,528 41,530 (73,398 ) — Inventories, Net 160,596 138,175 87,294 — 386,065 Deferred Income Tax Asset 30,260 12,470 2,006 — 44,736 Prepaid Expenses and Other Current Assets 18,105 7,767 4,801 (2,254 ) 28,419 Total Current Assets 372,633 226,148 217,608 (75,652 ) 740,737 OTHER ASSETS: Goodwill 128,300 — 33,268 — 161,568 Investments 52,757 — — — 52,757 Investments in Subsidiaries 516,796 — — (516,796 ) — Intercompany Note Receivable 5,976 111,290 47,157 (164,423 ) — Other Intangible Assets, Net — 53,503 50,661 — 104,164 Long-Term Deferred Income Tax Asset 80,409 — 2,230 (29,172 ) 53,467 Other Long-Term Assets, Net 11,992 4,639 1,070 — 17,701 Total Other Assets 796,230 169,432 134,386 (710,391 ) 389,657 PLANT AND EQUIPMENT, NET 274,741 24,702 26,830 — 326,273 TOTAL ASSETS $ 1,443,604 $ 420,282 $ 378,824 $ (786,043 ) $ 1,456,667 CURRENT LIABILITIES: Accounts Payable $ 112,178 $ 50,529 $ 18,445 $ — $ 181,152 Intercompany Accounts Payable 33,079 6,347 33,972 (73,398 ) — Accrued Liabilities 65,884 48,997 24,522 (2,254 ) 137,149 Total Current Liabilities 211,141 105,873 76,939 (75,652 ) 318,301 OTHER LIABILITIES: Accrued Pension Cost 309,191 343 844 — 310,378 Accrued Employee Benefits 23,483 — — — 23,483 Accrued Postretirement Health Care Obligation 24,587 13,854 — — 38,441 Intercompany Note Payable 123,232 — 41,191 (164,423 ) — Other Long-Term Liabilities 37,005 26,679 16,587 (29,172 ) 51,099 Long-Term Debt 221,339 — — — 221,339 Total Other Liabilities 738,837 40,876 58,622 (193,595 ) 644,740 TOTAL SHAREHOLDERS’ INVESTMENT 493,626 273,533 243,263 (516,796 ) 493,626 TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT $ 1,443,604 $ 420,282 $ 378,824 $ (786,043 ) $ 1,456,667 |
Schedule of Condensed Supplemental Consolidating Statements Of Operations and Comprehensive Income (Loss) | CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended October 2, 2016 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 144,146 $ 98,861 $ 81,685 $ (37,895 ) $ 286,797 Cost of Goods Sold 119,430 87,089 65,652 (37,895 ) 234,276 Gross Profit 24,716 11,772 16,033 — 52,521 Engineering, Selling, General and Administrative Expenses 38,965 17,396 15,702 — 72,063 Equity in Earnings of Unconsolidated Affiliates 1,816 1,412 — — 3,228 Equity in Loss (Earnings) from Subsidiaries 2,001 — — (2,001 ) — Income (Loss) from Operations (14,434 ) (4,212 ) 331 2,001 (16,314 ) Interest Expense (4,436 ) (67 ) (2 ) — (4,505 ) Other Income (Loss), Net (404 ) 11 850 — 457 Income (Loss) before Income Taxes (19,274 ) (4,268 ) 1,179 2,001 (20,362 ) Provision (Credit) for Income Taxes (5,126 ) (1,548 ) 460 — (6,214 ) Net Income (Loss) $ (14,148 ) $ (2,720 ) $ 719 $ 2,001 $ (14,148 ) Comprehensive Income (Loss) $ (10,034 ) $ (2,347 ) $ 1,064 $ 1,283 $ (10,034 ) CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) For the Three Months Ended September 27, 2015 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net Sales $ 149,500 $ 106,506 $ 82,492 $ (49,040 ) $ 289,458 Cost of Goods Sold 128,601 93,485 64,241 (49,040 ) 237,287 Restructuring Charges — 1,995 464 — 2,459 Gross Profit 20,899 11,026 17,787 — 49,712 Engineering, Selling, General and Administrative Expenses 37,805 16,954 17,375 — 72,134 Restructuring Charges 890 24 — — 914 Equity in Loss (Earnings) from Subsidiaries 3,695 — — (3,695 ) — Income (Loss) from Operations (21,491 ) (5,952 ) 412 3,695 (23,336 ) Interest Expense (4,472 ) (64 ) — — (4,536 ) Other Income, Net 703 790 (38 ) — 1,455 Income (Loss) before Income Taxes (25,260 ) (5,226 ) 374 3,695 (26,417 ) Provision (Credit) for Income Taxes (7,089 ) (1,898 ) 741 — (8,246 ) Net Income (Loss) $ (18,171 ) $ (3,328 ) $ (367 ) $ 3,695 $ (18,171 ) Comprehensive Income (Loss) $ (28,802 ) $ (3,601 ) $ (6,506 ) $ 10,107 $ (28,802 ) |
Schedule of Condensed Supplemental Consolidating Statements Of Cash Flows | CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended October 2, 2016 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Provided by (Used in) Operating Activities $ (51,795 ) $ (26,097 ) $ 1,692 $ (297 ) $ (76,497 ) Cash Flows from Investing Activities: Capital Expenditures (13,463 ) (881 ) (1,420 ) — (15,764 ) Proceeds Received on Disposition of Plant and Equipment — 17 35 — 52 Proceeds on Sale of Investments in Marketable Securities 3,343 — — — 3,343 Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt (20,273 ) — — 20,273 — Net Cash Provided by (Used in) Investing Activities (30,393 ) (864 ) (1,385 ) 20,273 (12,369 ) Cash Flows from Financing Activities: Net Borrowings (Repayments) on Loans, Revolver, Notes Payable and Long-Term Debt 50,175 26,649 (6,376 ) (20,273 ) 50,175 Treasury Stock Purchases (8,654 ) — — — (8,654 ) Payment of Acquisition Contingent Liability — — (813 ) — (813 ) Stock Option Exercise Proceeds and Tax Benefits 1,117 — — — 1,117 Cash Dividends Paid — — (297 ) 297 — Net Cash (Used in) Provided by Financing Activities 42,638 26,649 (7,486 ) (19,976 ) 41,825 Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents — — 162 — 162 Net Decrease in Cash and Cash Equivalents (39,550 ) (312 ) (7,017 ) — (46,879 ) Cash and Cash Equivalents, Beginning 40,966 741 48,132 — 89,839 Cash and Cash Equivalents, Ending $ 1,416 $ 429 $ 41,115 $ — $ 42,960 CONSOLIDATING STATEMENT OF CASH FLOWS For the Three Months Ended September 27, 2015 (Unaudited) Briggs & Stratton Corporation Guarantor Subsidiary Non-Guarantor Subsidiaries Eliminations Consolidated Net Cash Used in Operating Activities $ (67,715 ) $ (8,420 ) $ (6,311 ) $ (243 ) $ (82,689 ) Cash Flows from Investing Activities: Capital Expenditures (10,916 ) (1,126 ) (386 ) — (12,428 ) Proceeds Received on Disposition of Plant and Equipment — 504 11 — 515 Cash Investment in Subsidiary — — — — — Cash Paid for Acquisition, Net of Cash Acquired — — (2,174 ) — (2,174 ) Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt 2,489 — — (2,489 ) — Net Cash Used in Investing Activities (8,427 ) (622 ) (2,549 ) (2,489 ) (14,087 ) Cash Flows from Financing Activities: Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt 38,410 (8,063 ) 5,574 2,489 38,410 Treasury Stock Purchases (11,178 ) — — — (11,178 ) Stock Option Exercise Proceeds and Tax Benefits 6,433 — — — 6,433 Cash Investment in Subsidiary — — (243 ) 243 — Net Cash Provided by (Used in) Financing Activities 33,665 (8,063 ) 5,331 2,732 33,665 Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents — — (1,284 ) — (1,284 ) Net Decrease in Cash and Cash Equivalents (42,477 ) (17,105 ) (4,813 ) — (64,395 ) Cash and Cash Equivalents, Beginning 45,395 17,237 55,758 — 118,390 Cash and Cash Equivalents, Ending $ 2,918 $ 132 $ 50,945 $ — $ 53,995 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | $ (338,450) | $ (279,110) |
Other Comprehensive Income (Loss), Before Reclassifications | 891 | (10,297) |
Income Tax Benefit (Expense) | 266 | (816) |
Net Other Comprehensive Income (Loss) Before Reclassifications | 1,157 | (11,113) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 4,732 | 772 |
Income Tax Expense (Benefit) | (1,775) | (290) |
Net Reclassifications | 2,957 | 482 |
Other Comprehensive Income (Loss) | 4,114 | (10,631) |
Ending Balance | (334,336) | (289,741) |
Prior Service Costs [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | (618) | (620) |
Actuarial Losses [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 4,714 | 4,129 |
Foreign Currency Contract [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 324 | (3,171) |
Commodity Contract [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 80 | 132 |
Interest Rate Swap [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 232 | 302 |
Accumulated Translation Adjustment [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (23,863) | (19,117) |
Other Comprehensive Income (Loss), Before Reclassifications | 1,601 | (12,473) |
Income Tax Benefit (Expense) | 0 | 0 |
Net Other Comprehensive Income (Loss) Before Reclassifications | 1,601 | (12,473) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Income Tax Expense (Benefit) | 0 | 0 |
Net Reclassifications | 0 | 0 |
Other Comprehensive Income (Loss) | 1,601 | (12,473) |
Ending Balance | (22,262) | (31,590) |
Accumulated Translation Adjustment [Member] | Prior Service Costs [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Accumulated Translation Adjustment [Member] | Actuarial Losses [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Accumulated Translation Adjustment [Member] | Foreign Currency Contract [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Accumulated Translation Adjustment [Member] | Commodity Contract [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Accumulated Translation Adjustment [Member] | Interest Rate Swap [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (1,552) | 1,212 |
Other Comprehensive Income (Loss), Before Reclassifications | (710) | 2,176 |
Income Tax Benefit (Expense) | 266 | (816) |
Net Other Comprehensive Income (Loss) Before Reclassifications | (444) | 1,360 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 636 | (2,737) |
Income Tax Expense (Benefit) | (239) | 1,026 |
Net Reclassifications | 397 | (1,711) |
Other Comprehensive Income (Loss) | (47) | (351) |
Ending Balance | (1,599) | 861 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Prior Service Costs [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Actuarial Losses [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Foreign Currency Contract [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 324 | (3,171) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Commodity Contract [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 80 | 132 |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Interest Rate Swap [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 232 | 302 |
Accumulated Defined Benefit Plans Adjustment [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Beginning Balance | (313,035) | (261,205) |
Other Comprehensive Income (Loss), Before Reclassifications | 0 | 0 |
Income Tax Benefit (Expense) | 0 | 0 |
Net Other Comprehensive Income (Loss) Before Reclassifications | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 4,096 | 3,509 |
Income Tax Expense (Benefit) | (1,536) | (1,316) |
Net Reclassifications | 2,560 | 2,193 |
Other Comprehensive Income (Loss) | 2,560 | 2,193 |
Ending Balance | (310,475) | (259,012) |
Accumulated Defined Benefit Plans Adjustment [Member] | Prior Service Costs [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | (618) | (620) |
Accumulated Defined Benefit Plans Adjustment [Member] | Actuarial Losses [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 4,714 | 4,129 |
Accumulated Defined Benefit Plans Adjustment [Member] | Foreign Currency Contract [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment [Member] | Commodity Contract [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | 0 | 0 |
Accumulated Defined Benefit Plans Adjustment [Member] | Interest Rate Swap [Member] | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Before Tax | $ 0 | $ 0 |
Earnings (Loss) Per Share Earni
Earnings (Loss) Per Share Earnings (Loss) Per Share Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Net Loss | $ (14,148) | $ (18,171) |
Less: Allocation to Participating Securities | (112) | (109) |
Net Income Available to Common Shareholders | $ (14,260) | $ (18,280) |
Average Shares of Common Stock Outstanding | 42,494 | 43,478 |
Diluted Average Shares Outstanding | 42,494 | 43,478 |
Basic Earnings (Loss) Per Share | $ (0.34) | $ (0.42) |
Diluted Earnings (Loss) Per Share | $ (0.34) | $ (0.42) |
Earnings (Loss) Per Share Antid
Earnings (Loss) Per Share Antidilutive Shares Information (Details) - $ / shares | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Potential Other Incremental Common Shares Excluded [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 695,455 | 882,464 |
Employee Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 408,000 | 910,000 |
Weighted Average Exercise Prices Of Antidilutive Securities Excluded From Computation Of Earnings Per Share | $ 20.82 | $ 20.31 |
Earnings (Loss) Per Share Share
Earnings (Loss) Per Share Share Repurchase Information (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Oct. 02, 2016 | Sep. 27, 2015 | Apr. 21, 2016 | |
Stock Repurchase Program, Authorized Amount | $ 50 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 41.5 | ||
Treasury Stock, Shares, Acquired | 443,384 | 589,882 | |
Treasury Stock Acquired, Average Cost Per Share | $ 19.52 | $ 18.95 |
Investments Schedule of Investm
Investments Schedule of Investments in Marketable Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Schedule of Available-for-sale Securities [Line Items] | ||
Proceeds on Sale of Investment in Marketable Securities | $ 3,343 | $ 0 |
Pension and Postretirement Be36
Pension and Postretirement Benefits Net Periodic Income and Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Pension Plans, Defined Benefit [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service Cost | $ 1,727 | $ 857 |
Interest Cost on Projected Benefit Obligation | 10,846 | 13,042 |
Expected Return on Plan Assets | (16,118) | (17,827) |
Amortization of Prior Service Cost (Credit) | 45 | 45 |
Amortization of Actuarial Loss | 4,202 | 3,172 |
Net Periodic Expense (Income) | 702 | (711) |
Other Postretirement Benefits [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service Cost | 63 | 76 |
Interest Cost on Projected Benefit Obligation | 594 | 809 |
Expected Return on Plan Assets | 0 | 0 |
Amortization of Prior Service Cost (Credit) | (663) | (665) |
Amortization of Actuarial Loss | 737 | 957 |
Net Periodic Expense (Income) | $ 731 | $ 1,177 |
Pension and Postretirement Be37
Pension and Postretirement Benefits Pension and Postretirement Benefits (Narrative) (Details) $ in Thousands | 3 Months Ended |
Oct. 02, 2016USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Cash Contributions to Qualified Pension Plans | $ 0 |
Other Postretirement Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 9,000 |
Other Postretirement Benefits Payments | 3,400 |
Pension Plans, Defined Benefit [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Defined Benefit Plan, Estimated Future Employer Contributions in Current Fiscal Year | 3,000 |
Defined Benefit Plan, Benefits Paid | $ 600 |
Stock Incentives Stock Incentiv
Stock Incentives Stock Incentives (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock Compensation Expense | $ 1,248 | $ 1,627 |
Derivative Instruments and He39
Derivative Instruments and Hedging Activities Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Jul. 03, 2016 | |
Derivative [Line Items] | ||
Net Cash Flow Hedge Losses (Gains) to be Reclassified into Earnings within Twelve Months | $ 1,800 | |
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Notional Amount | $ 157,500 | $ 145,000 |
Minimum [Member] | ||
Derivative [Line Items] | ||
Derivative, Lower Fixed Interest Rate Range | 0.98% | |
Minimum [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Jul. 1, 2017 | |
Maximum [Member] | ||
Derivative [Line Items] | ||
Derivative, Lower Fixed Interest Rate Range | 1.60% | |
Maximum [Member] | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Derivative, Maturity Date | Jul. 1, 2021 |
Derivative Instruments and He40
Derivative Instruments and Hedging Activities Notional Amounts (Details) € in Thousands, ¥ in Thousands, ¥ in Thousands, MXN in Thousands, CAD in Thousands, BTU in Thousands, BRL in Thousands, AUD in Thousands, $ in Thousands | Oct. 02, 2016EUR (€)BTU | Oct. 02, 2016USD ($)BTU | Oct. 02, 2016AUDBTU | Oct. 02, 2016BRLBTU | Oct. 02, 2016MXNBTU | Oct. 02, 2016JPY (¥)BTU | Oct. 02, 2016CNY (¥)BTU | Oct. 02, 2016CADBTU | Jul. 03, 2016EUR (€)BTU | Jul. 03, 2016USD ($)BTU | Jul. 03, 2016AUDBTU | Jul. 03, 2016BRLBTU | Jul. 03, 2016MXNBTU | Jul. 03, 2016JPY (¥)BTU | Jul. 03, 2016CNY (¥)BTU | Jul. 03, 2016CADBTU |
Interest Rate Contract [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | $ | $ 157,500 | $ 145,000 | ||||||||||||||
Australian Dollar, Sell [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | AUD | AUD 41,121 | AUD 39,935 | ||||||||||||||
Brazilian Real, Buy [Member] [Domain] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | BRL | BRL 17,014 | BRL 16,436 | ||||||||||||||
Canadian Dollar, Sell [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | CAD | CAD 17,785 | CAD 8,675 | ||||||||||||||
Chinese Renminbi, Buy [Member] [Domain] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | ¥ 133,450 | ¥ 171,475 | ||||||||||||||
Euro, Sell [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | € | € 40,030 | € 41,730 | ||||||||||||||
Japanese Yen, Buy [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | ¥ 805,000 | ¥ 587,000 | ||||||||||||||
Mexican Peso, Sell [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Derivative, Notional Amount | MXN | MXN 0 | MXN 3,500 | ||||||||||||||
Natural Gas [Member] | ||||||||||||||||
Derivative [Line Items] | ||||||||||||||||
Nonmonetary Notional Amount Derivatives (in ones) | BTU | 11,764 | 11,764 | 11,764 | 11,764 | 11,764 | 11,764 | 11,764 | 11,764 | 11,771 | 11,771 | 11,771 | 11,771 | 11,771 | 11,771 | 11,771 | 11,771 |
Derivative Instruments and He41
Derivative Instruments and Hedging Activities Balance Sheet Location (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jul. 03, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (2,854) | $ (2,937) |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Contracts at Fair Value | 940 | 1,356 |
Other Long-Term Assets, Net [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Contracts at Fair Value | 88 | 0 |
Foreign Currency Contracts at Fair Value | 12 | 2 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Contracts at Fair Value | (498) | 0 |
Foreign Currency Contracts at Fair Value | (2,708) | (2,601) |
Commodity Contracts at Fair Value | (211) | (190) |
Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Contracts at Fair Value | (374) | (1,367) |
Foreign Currency Contracts at Fair Value | (86) | (185) |
Commodity Contracts at Fair Value | $ (36) | $ (16) |
Derivative Instruments and He42
Derivative Instruments and Hedging Activities Effect of Derivatives on Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | $ (47) | $ (351) |
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (636) | 2,737 |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 |
Interest Rate Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | 364 | (269) |
Foreign Currency Contract Sell [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (126) | 390 |
Foreign Currency Contract Buy [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (232) | (366) |
Commodity Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Recognized in Other Comprehensive Income (Loss), Effective Portion, Net | (53) | (106) |
Net Sales [Member] | Interest Rate Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (232) | (302) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 |
Net Sales [Member] | Foreign Currency Contract Sell [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (306) | 3,307 |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 |
Cost of Sales [Member] | Foreign Currency Contract Buy [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (18) | (136) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | 0 | 0 |
Cost of Sales [Member] | Commodity Contract [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion, Net | (80) | (132) |
Derivative Instruments, Gain (Loss) Recognized in Income, Ineffective Portion and Amount Excluded from Effectiveness Testing, Net | $ 0 | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jul. 03, 2016 | Dec. 15, 2010 |
Fair Value, Measurements, Recurring [Member] | |||
Liabilities, Derivatives | $ 3,913 | $ 4,359 | |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 1 [Member] | |||
Liabilities, Derivatives | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 2 [Member] | |||
Liabilities, Derivatives | 3,913 | 4,359 | |
Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 3 [Member] | |||
Liabilities, Derivatives | 0 | 0 | |
Derivative Financial Instruments, Assets [Member] | Fair Value, Measurements, Recurring [Member] | |||
Assets | 1,059 | 1,422 | |
Derivative Financial Instruments, Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 1 [Member] | |||
Assets | 0 | 0 | |
Derivative Financial Instruments, Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 2 [Member] | |||
Assets | 1,059 | 1,422 | |
Derivative Financial Instruments, Assets [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value Measurements Using Level 3 [Member] | |||
Assets | 0 | 0 | |
Senior Notes [Member] | |||
Senior Notes | $ 223,149 | $ 223,149 | $ 225,000 |
Fair Value Measurements Fair Va
Fair Value Measurements Fair Value Disclosures (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jul. 03, 2016 | Dec. 15, 2010 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt Instrument, Fair Value Disclosure | $ 245,700 | $ 240,200 | |
Senior Notes [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Senior Notes | $ 223,149 | $ 223,149 | $ 225,000 |
Warranty (Details)
Warranty (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Warranty Accrual, Beginning Balance | $ 44,367 | $ 48,006 |
Payments | (8,196) | (8,635) |
Provision for Current Year Warranties | 4,600 | 5,834 |
Changes in Estimates | (415) | (38) |
Warranty Accrual, Ending Balance | $ 40,356 | $ 45,167 |
Income Taxes Effective Tax Rate
Income Taxes Effective Tax Rate (Details) | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Income Tax Contingency [Line Items] | ||
Effective Income Tax Rate | 30.50% | 31.20% |
Unrecognized Tax Benefits (Deta
Unrecognized Tax Benefits (Details) $ in Millions | 3 Months Ended |
Oct. 02, 2016USD ($) | |
Income Tax Contingency [Line Items] | |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 0.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Thousands | 3 Months Ended |
Oct. 02, 2016USD ($) | |
Loss Contingencies [Line Items] | |
Loss Contingency, Enhanced Damages Awarded, Value | $ 24,300 |
Loss Contingency, Pre-Judgment Interest Awarded, Value | 1,500 |
Loss Contingency, Damages Awarded, Value | 24,300 |
Retiree Medical Case [Domain] | |
Loss Contingencies [Line Items] | |
Litigation Settlement, Amount | 3,950 |
Loss Contingency Accrual, Provision | 1,975 |
Loss Contingency, Receivable, Additions | $ 1,975 |
Segment Information Segment Inf
Segment Information Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Net Sales | $ 286,797 | $ 289,458 |
Gross Profit | 52,521 | 49,712 |
Segment Income (Loss) | (16,314) | (21,900) |
Adjustment in Reconciliation of Segment Income to Income from Operations related to Equity in Earnings of Unconsolidated Affiliates | 0 | 1,436 |
Loss from Operations | (16,314) | (23,336) |
Interest Expense | (4,505) | (4,536) |
Other Income, Net | 457 | 1,455 |
Loss Before Income Taxes | (20,362) | (26,417) |
CREDIT FOR INCOME TAXES | (6,214) | (8,246) |
Net Loss | (14,148) | (18,171) |
International sales included in net sales based on product shipment destination | 109,887 | 91,541 |
Engines [Member] | ||
Net Sales | 154,498 | 150,083 |
Gross Profit | 30,985 | 23,777 |
Segment Income (Loss) | (11,654) | (20,754) |
Products [Member] | ||
Net Sales | 150,795 | 162,541 |
Gross Profit | 22,951 | 27,143 |
Segment Income (Loss) | (3,245) | 62 |
Elimination [Member] | ||
Net Sales | (18,496) | (23,166) |
Gross Profit | (1,415) | (1,208) |
Segment Income (Loss) | $ (1,415) | $ (1,208) |
Segment Information Restructuri
Segment Information Restructuring Charges and Acquisition Related Charges Impact on Gross Profit by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Cost Of Goods Sold Restructuring Charges and Acquisition Related Charges | $ 0 | $ 2,709 |
Engines [Member] | ||
Cost Of Goods Sold Restructuring Charges and Acquisition Related Charges | 0 | 464 |
Products [Member] | ||
Cost Of Goods Sold Restructuring Charges and Acquisition Related Charges | $ 0 | $ 2,245 |
Segment Information Restructu51
Segment Information Restructuring Charges, Acquisition Related Charges, and Litigation Charges Impact on Segment Income (Loss) by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Restructuring Charges, Acquisition Related Charges, and Litigation Charges | $ 0 | $ 4,499 |
Engines [Member] | ||
Restructuring Charges, Acquisition Related Charges, and Litigation Charges | 0 | 2,204 |
Products [Member] | ||
Restructuring Charges, Acquisition Related Charges, and Litigation Charges | $ 0 | $ 2,295 |
Debt (Details)
Debt (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Oct. 02, 2016 | Jul. 03, 2016 | Mar. 25, 2016 | Dec. 15, 2010 | |
Debt Instrument [Line Items] | ||||
Short-term Debt | $ 50,175 | $ 0 | ||
Unamortized Debt Issuance Expense | 1,693 | 1,810 | ||
Long-term Debt | 221,456 | 221,339 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes | $ 223,149 | 223,149 | $ 225,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 6.875% | |||
Debt Instrument, Maturity Date | Dec. 15, 2020 | |||
Debt Instrument, Repurchase Amount | $ 1,900 | |||
Multicurrency Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of Credit, Current | 50,175 | $ 0 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | $ 500,000 | ||
Line of Credit Facility, Expiration Date | Mar. 25, 2021 | |||
Line Of Credit Facility Increased Available Maximum Borrowing Capacity | $ 250,000 |
Separate Financial Informatio53
Separate Financial Information Of Subsidiary Guarantor Of Indebtedness (Schedule Of Outstanding Amounts Related To Guaranteed Debt) (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jul. 03, 2016 | Mar. 25, 2016 | Dec. 15, 2010 |
Senior Notes [Member] | ||||
Senior Notes | $ 223,149 | $ 223,149 | $ 225,000 | |
Long-Term Debt Maximum Guarantee | 223,149 | |||
Multicurrency Credit Agreement [Member] | ||||
Line of Credit, Current | 50,175 | $ 0 | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | $ 500,000 |
Separate Financial Informatio54
Separate Financial Information Of Subsidiary Guarantor of Indebtedness (Schedule Of Consolidating Balance Sheets) (Details) - USD ($) $ in Thousands | Oct. 02, 2016 | Jul. 03, 2016 | Sep. 27, 2015 | Jun. 28, 2015 |
CURRENT ASSETS: | ||||
Cash and Cash Equivalents | $ 42,960 | $ 89,839 | $ 53,995 | $ 118,390 |
Accounts Receivable, Net | 160,710 | 191,678 | ||
Intercompany Accounts Receivable | 0 | 0 | ||
Inventories, Net | 470,807 | 386,065 | ||
Deferred Income Tax Asset | 43,693 | 44,736 | ||
Prepaid Expenses and Other Current Assets | 41,470 | 28,419 | ||
Total Current Assets | 759,640 | 740,737 | ||
OTHER ASSETS: | ||||
Goodwill | 161,670 | 161,568 | ||
Investments | 52,049 | 52,757 | ||
Investment in Subsidiaries | 0 | 0 | ||
Intercompany Note Receivable | 0 | 0 | ||
Other Intangible Assets, Net | 103,318 | 104,164 | ||
Long-Term Deferred Income Tax Asset | 49,730 | 53,467 | ||
Other Long-Term Assets, Net | 17,488 | 17,701 | ||
Total Other Assets | 384,255 | 389,657 | ||
Plant and Equipment, Net | 328,803 | 326,273 | ||
TOTAL ASSETS | 1,472,698 | 1,456,667 | ||
CURRENT LIABILITIES: | ||||
Accounts Payable | 186,468 | 181,152 | ||
Intercompany Accounts Payable | 0 | 0 | ||
Short-term Debt | 50,175 | 0 | ||
Accrued Liabilities | 129,705 | 137,149 | ||
Total Current Liabilities | 366,348 | 318,301 | ||
OTHER LIABILITIES: | ||||
Accrued Pension Cost | 306,319 | 310,378 | ||
Accrued Employee Benefits | 23,341 | 23,483 | ||
Accrued Postretirement Health Care Obligation | 36,120 | 38,441 | ||
Intercompany Note Payable | 0 | 0 | ||
Other Long-Term Liabilities | 49,538 | 51,099 | ||
Long-Term Debt | 221,456 | 221,339 | ||
Total Other Liabilities | 636,774 | 644,740 | ||
Total Shareholders' Investment | 469,576 | 493,626 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 1,472,698 | 1,456,667 | ||
Consolidation, Eliminations [Member] | ||||
CURRENT ASSETS: | ||||
Cash and Cash Equivalents | 0 | 0 | 0 | 0 |
Accounts Receivable, Net | 0 | 0 | ||
Intercompany Accounts Receivable | (89,660) | (73,398) | ||
Inventories, Net | 0 | 0 | ||
Deferred Income Tax Asset | 0 | 0 | ||
Prepaid Expenses and Other Current Assets | 0 | (2,254) | ||
Total Current Assets | (89,660) | (75,652) | ||
OTHER ASSETS: | ||||
Goodwill | 0 | 0 | ||
Investments | 0 | 0 | ||
Investment in Subsidiaries | (510,845) | (516,796) | ||
Intercompany Note Receivable | (139,080) | (164,423) | ||
Other Intangible Assets, Net | 0 | 0 | ||
Long-Term Deferred Income Tax Asset | (29,231) | (29,172) | ||
Other Long-Term Assets, Net | 0 | 0 | ||
Total Other Assets | (679,156) | (710,391) | ||
Plant and Equipment, Net | 0 | 0 | ||
TOTAL ASSETS | (768,816) | (786,043) | ||
CURRENT LIABILITIES: | ||||
Accounts Payable | 0 | 0 | ||
Intercompany Accounts Payable | (89,660) | (73,398) | ||
Short-term Debt | 0 | |||
Accrued Liabilities | 0 | (2,254) | ||
Total Current Liabilities | (89,660) | (75,652) | ||
OTHER LIABILITIES: | ||||
Accrued Pension Cost | 0 | 0 | ||
Accrued Employee Benefits | 0 | 0 | ||
Accrued Postretirement Health Care Obligation | 0 | 0 | ||
Intercompany Note Payable | (139,080) | (164,423) | ||
Other Long-Term Liabilities | (29,231) | (29,172) | ||
Long-Term Debt | 0 | 0 | ||
Total Other Liabilities | (168,311) | (193,595) | ||
Total Shareholders' Investment | (510,845) | (516,796) | ||
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | (768,816) | (786,043) | ||
Parent Company [Member] | ||||
CURRENT ASSETS: | ||||
Cash and Cash Equivalents | 1,416 | 40,966 | 2,918 | 45,395 |
Accounts Receivable, Net | 66,065 | 96,366 | ||
Intercompany Accounts Receivable | 37,178 | 26,340 | ||
Inventories, Net | 222,452 | 160,596 | ||
Deferred Income Tax Asset | 29,162 | 30,260 | ||
Prepaid Expenses and Other Current Assets | 29,453 | 18,105 | ||
Total Current Assets | 385,726 | 372,633 | ||
OTHER ASSETS: | ||||
Goodwill | 128,300 | 128,300 | ||
Investments | 52,049 | 52,757 | ||
Investment in Subsidiaries | 510,845 | 516,796 | ||
Intercompany Note Receivable | 982 | 5,976 | ||
Other Intangible Assets, Net | 0 | 0 | ||
Long-Term Deferred Income Tax Asset | 76,502 | 80,409 | ||
Other Long-Term Assets, Net | 12,117 | 11,992 | ||
Total Other Assets | 780,795 | 796,230 | ||
Plant and Equipment, Net | 277,018 | 274,741 | ||
TOTAL ASSETS | 1,443,539 | 1,443,604 | ||
CURRENT LIABILITIES: | ||||
Accounts Payable | 114,995 | 112,178 | ||
Intercompany Accounts Payable | 34,012 | 33,079 | ||
Short-term Debt | 50,175 | |||
Accrued Liabilities | 66,303 | 65,884 | ||
Total Current Liabilities | 265,485 | 211,141 | ||
OTHER LIABILITIES: | ||||
Accrued Pension Cost | 305,112 | 309,191 | ||
Accrued Employee Benefits | 23,341 | 23,483 | ||
Accrued Postretirement Health Care Obligation | 22,418 | 24,587 | ||
Intercompany Note Payable | 98,621 | 123,232 | ||
Other Long-Term Liabilities | 37,530 | 37,005 | ||
Long-Term Debt | 221,456 | 221,339 | ||
Total Other Liabilities | 708,478 | 738,837 | ||
Total Shareholders' Investment | 469,576 | 493,626 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 1,443,539 | 1,443,604 | ||
Guarantor Subsidiaries [Member] | ||||
CURRENT ASSETS: | ||||
Cash and Cash Equivalents | 429 | 741 | 132 | 17,237 |
Accounts Receivable, Net | 50,636 | 61,467 | ||
Intercompany Accounts Receivable | 6,942 | 5,528 | ||
Inventories, Net | 161,963 | 138,175 | ||
Deferred Income Tax Asset | 11,978 | 12,470 | ||
Prepaid Expenses and Other Current Assets | 5,935 | 7,767 | ||
Total Current Assets | 237,883 | 226,148 | ||
OTHER ASSETS: | ||||
Goodwill | 0 | 0 | ||
Investments | 0 | 0 | ||
Investment in Subsidiaries | 0 | 0 | ||
Intercompany Note Receivable | 84,641 | 111,290 | ||
Other Intangible Assets, Net | 53,202 | 53,503 | ||
Long-Term Deferred Income Tax Asset | 0 | 0 | ||
Other Long-Term Assets, Net | 4,306 | 4,639 | ||
Total Other Assets | 142,149 | 169,432 | ||
Plant and Equipment, Net | 24,527 | 24,702 | ||
TOTAL ASSETS | 404,559 | 420,282 | ||
CURRENT LIABILITIES: | ||||
Accounts Payable | 48,576 | 50,529 | ||
Intercompany Accounts Payable | 9,634 | 6,347 | ||
Short-term Debt | 0 | |||
Accrued Liabilities | 39,868 | 48,997 | ||
Total Current Liabilities | 98,078 | 105,873 | ||
OTHER LIABILITIES: | ||||
Accrued Pension Cost | 355 | 343 | ||
Accrued Employee Benefits | 0 | 0 | ||
Accrued Postretirement Health Care Obligation | 13,702 | 13,854 | ||
Intercompany Note Payable | 0 | 0 | ||
Other Long-Term Liabilities | 24,698 | 26,679 | ||
Long-Term Debt | 0 | 0 | ||
Total Other Liabilities | 38,755 | 40,876 | ||
Total Shareholders' Investment | 267,726 | 273,533 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | 404,559 | 420,282 | ||
Non-Guarantor Subsidiaries [Member] | ||||
CURRENT ASSETS: | ||||
Cash and Cash Equivalents | 41,115 | 48,132 | $ 50,945 | $ 55,758 |
Accounts Receivable, Net | 44,009 | 33,845 | ||
Intercompany Accounts Receivable | 45,540 | 41,530 | ||
Inventories, Net | 86,392 | 87,294 | ||
Deferred Income Tax Asset | 2,553 | 2,006 | ||
Prepaid Expenses and Other Current Assets | 6,082 | 4,801 | ||
Total Current Assets | 225,691 | 217,608 | ||
OTHER ASSETS: | ||||
Goodwill | 33,370 | 33,268 | ||
Investments | 0 | 0 | ||
Investment in Subsidiaries | 0 | 0 | ||
Intercompany Note Receivable | 53,457 | 47,157 | ||
Other Intangible Assets, Net | 50,116 | 50,661 | ||
Long-Term Deferred Income Tax Asset | 2,459 | 2,230 | ||
Other Long-Term Assets, Net | 1,065 | 1,070 | ||
Total Other Assets | 140,467 | 134,386 | ||
Plant and Equipment, Net | 27,258 | 26,830 | ||
TOTAL ASSETS | 393,416 | 378,824 | ||
CURRENT LIABILITIES: | ||||
Accounts Payable | 22,897 | 18,445 | ||
Intercompany Accounts Payable | 46,014 | 33,972 | ||
Short-term Debt | 0 | |||
Accrued Liabilities | 23,534 | 24,522 | ||
Total Current Liabilities | 92,445 | 76,939 | ||
OTHER LIABILITIES: | ||||
Accrued Pension Cost | 852 | 844 | ||
Accrued Employee Benefits | 0 | 0 | ||
Accrued Postretirement Health Care Obligation | 0 | 0 | ||
Intercompany Note Payable | 40,459 | 41,191 | ||
Other Long-Term Liabilities | 16,541 | 16,587 | ||
Long-Term Debt | 0 | 0 | ||
Total Other Liabilities | 57,852 | 58,622 | ||
Total Shareholders' Investment | 243,119 | 243,263 | ||
TOTAL LIABILITIES AND SHAREHOLDERS' INVESTMENT | $ 393,416 | $ 378,824 |
Separate Financial Informatio55
Separate Financial Information Of Subsidiary Guarantor of Indebtedness (Schedule Of Consolidating Statement Of Operations and Comprehensive Income (Loss)) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Net Sales | $ 286,797 | $ 289,458 |
Cost of Goods Sold | 234,276 | 237,287 |
Cost Of Goods Sold Restructuring Charges | 0 | 2,459 |
Gross Profit | 52,521 | 49,712 |
Engineering, Selling, General and Administrative Expenses | 72,063 | 72,134 |
Operating Restructuring Charges | 0 | 914 |
Equity in Earnings of Unconsolidated Affiliates | 3,228 | 0 |
Equity In Loss (Earnings) From Subsidiaries | 0 | 0 |
Income (Loss) from Operations | (16,314) | (23,336) |
Interest Expense | (4,505) | (4,536) |
Other Income, Net | 457 | 1,455 |
Income (Loss) Before Income Taxes | (20,362) | (26,417) |
Provision (Credit) for Income Taxes | (6,214) | (8,246) |
Net Income (Loss) | (14,148) | (18,171) |
Comprehensive Income (Loss) | (10,034) | (28,802) |
Briggs & Stratton Corporation [Member] | ||
Net Sales | 144,146 | 149,500 |
Cost of Goods Sold | 119,430 | 128,601 |
Cost Of Goods Sold Restructuring Charges | 0 | |
Gross Profit | 24,716 | 20,899 |
Engineering, Selling, General and Administrative Expenses | 38,965 | 37,805 |
Operating Restructuring Charges | 890 | |
Equity in Earnings of Unconsolidated Affiliates | 1,816 | |
Equity In Loss (Earnings) From Subsidiaries | 2,001 | 3,695 |
Income (Loss) from Operations | (14,434) | (21,491) |
Interest Expense | (4,436) | (4,472) |
Other Income, Net | (404) | 703 |
Income (Loss) Before Income Taxes | (19,274) | (25,260) |
Provision (Credit) for Income Taxes | (5,126) | (7,089) |
Net Income (Loss) | (14,148) | (18,171) |
Comprehensive Income (Loss) | (10,034) | (28,802) |
Guarantor Subsidiary [Member] | ||
Net Sales | 98,861 | 106,506 |
Cost of Goods Sold | 87,089 | 93,485 |
Cost Of Goods Sold Restructuring Charges | 1,995 | |
Gross Profit | 11,772 | 11,026 |
Engineering, Selling, General and Administrative Expenses | 17,396 | 16,954 |
Operating Restructuring Charges | 24 | |
Equity in Earnings of Unconsolidated Affiliates | 1,412 | |
Equity In Loss (Earnings) From Subsidiaries | 0 | 0 |
Income (Loss) from Operations | (4,212) | (5,952) |
Interest Expense | (67) | (64) |
Other Income, Net | 11 | 790 |
Income (Loss) Before Income Taxes | (4,268) | (5,226) |
Provision (Credit) for Income Taxes | (1,548) | (1,898) |
Net Income (Loss) | (2,720) | (3,328) |
Comprehensive Income (Loss) | (2,347) | (3,601) |
Non-Guarantor Subsidiaries [Member] | ||
Net Sales | 81,685 | 82,492 |
Cost of Goods Sold | 65,652 | 64,241 |
Cost Of Goods Sold Restructuring Charges | 464 | |
Gross Profit | 16,033 | 17,787 |
Engineering, Selling, General and Administrative Expenses | 15,702 | 17,375 |
Operating Restructuring Charges | 0 | |
Equity in Earnings of Unconsolidated Affiliates | 0 | |
Equity In Loss (Earnings) From Subsidiaries | 0 | 0 |
Income (Loss) from Operations | 331 | 412 |
Interest Expense | (2) | 0 |
Other Income, Net | 850 | (38) |
Income (Loss) Before Income Taxes | 1,179 | 374 |
Provision (Credit) for Income Taxes | 460 | 741 |
Net Income (Loss) | 719 | (367) |
Comprehensive Income (Loss) | 1,064 | (6,506) |
Consolidation, Eliminations [Member] | ||
Net Sales | (37,895) | (49,040) |
Cost of Goods Sold | (37,895) | (49,040) |
Cost Of Goods Sold Restructuring Charges | 0 | |
Gross Profit | 0 | 0 |
Engineering, Selling, General and Administrative Expenses | 0 | 0 |
Operating Restructuring Charges | 0 | |
Equity in Earnings of Unconsolidated Affiliates | 0 | |
Equity In Loss (Earnings) From Subsidiaries | (2,001) | (3,695) |
Income (Loss) from Operations | 2,001 | 3,695 |
Interest Expense | 0 | 0 |
Other Income, Net | 0 | 0 |
Income (Loss) Before Income Taxes | 2,001 | 3,695 |
Provision (Credit) for Income Taxes | 0 | 0 |
Net Income (Loss) | 2,001 | 3,695 |
Comprehensive Income (Loss) | $ 1,283 | $ 10,107 |
Separate Financial Informatio56
Separate Financial Information Of Subsidiary Guarantor of Indebtedness (Schedule Of Consolidating Statement Of Cash Flows) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Oct. 02, 2016 | Sep. 27, 2015 | |
Net Cash Provided by (Used in) Operating Activities | $ (76,497) | $ (82,689) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (15,764) | (12,428) |
Proceeds Received on Disposition of Plant and Equipment | 52 | 515 |
Cash Investment In Subsidiary | 0 | |
Cash Paid for Acquisition, Net of Cash Acquired | 0 | (2,174) |
Proceeds on Sale of Investment in Marketable Securities | 3,343 | 0 |
Net Borrowings (Repayments) On Loans Notes Payable And Long Term Debt | 0 | 0 |
Net Cash Used in Investing Activities | (12,369) | (14,087) |
Cash flows from Financing Activities: | ||
Net Borrowings (Repayments) on Loans, Revolver, Notes Payable and Long-Term Debt | 50,175 | 38,410 |
Treasury Stock Purchases | (8,654) | (11,178) |
Payment of Acquisition Contingent Liability | (813) | 0 |
Stock Option Exercise Proceeds and Tax Benefits | 1,117 | 6,433 |
Cash Dividends Paid | 0 | |
Cash Investment In Subsidiary | 0 | |
Net Cash (Used in) Provided by Financing Activities | 41,825 | 33,665 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 162 | (1,284) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (46,879) | (64,395) |
CASH AND CASH EQUIVALENTS, Beginning | 89,839 | 118,390 |
CASH AND CASH EQUIVALENTS, Ending | 42,960 | 53,995 |
Parent Company [Member] | ||
Net Cash Provided by (Used in) Operating Activities | (51,795) | (67,715) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (13,463) | (10,916) |
Proceeds Received on Disposition of Plant and Equipment | 0 | 0 |
Cash Investment In Subsidiary | 0 | |
Cash Paid for Acquisition, Net of Cash Acquired | 0 | |
Proceeds on Sale of Investment in Marketable Securities | 3,343 | |
Net Borrowings (Repayments) On Loans Notes Payable And Long Term Debt | (20,273) | 2,489 |
Net Cash Used in Investing Activities | (30,393) | (8,427) |
Cash flows from Financing Activities: | ||
Net Borrowings (Repayments) on Loans, Revolver, Notes Payable and Long-Term Debt | 50,175 | 38,410 |
Treasury Stock Purchases | (8,654) | (11,178) |
Payment of Acquisition Contingent Liability | 0 | |
Stock Option Exercise Proceeds and Tax Benefits | 1,117 | 6,433 |
Cash Dividends Paid | 0 | |
Cash Investment In Subsidiary | 0 | |
Net Cash (Used in) Provided by Financing Activities | 42,638 | 33,665 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (39,550) | (42,477) |
CASH AND CASH EQUIVALENTS, Beginning | 40,966 | 45,395 |
CASH AND CASH EQUIVALENTS, Ending | 1,416 | 2,918 |
Guarantor Subsidiaries [Member] | ||
Net Cash Provided by (Used in) Operating Activities | (26,097) | (8,420) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (881) | (1,126) |
Proceeds Received on Disposition of Plant and Equipment | 17 | 504 |
Cash Investment In Subsidiary | 0 | |
Cash Paid for Acquisition, Net of Cash Acquired | 0 | |
Proceeds on Sale of Investment in Marketable Securities | 0 | |
Net Borrowings (Repayments) On Loans Notes Payable And Long Term Debt | 0 | 0 |
Net Cash Used in Investing Activities | (864) | (622) |
Cash flows from Financing Activities: | ||
Net Borrowings (Repayments) on Loans, Revolver, Notes Payable and Long-Term Debt | 26,649 | (8,063) |
Treasury Stock Purchases | 0 | 0 |
Payment of Acquisition Contingent Liability | 0 | |
Stock Option Exercise Proceeds and Tax Benefits | 0 | 0 |
Cash Dividends Paid | 0 | |
Cash Investment In Subsidiary | 0 | |
Net Cash (Used in) Provided by Financing Activities | 26,649 | (8,063) |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (312) | (17,105) |
CASH AND CASH EQUIVALENTS, Beginning | 741 | 17,237 |
CASH AND CASH EQUIVALENTS, Ending | 429 | 132 |
Non-Guarantor Subsidiaries [Member] | ||
Net Cash Provided by (Used in) Operating Activities | 1,692 | (6,311) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | (1,420) | (386) |
Proceeds Received on Disposition of Plant and Equipment | 35 | 11 |
Cash Investment In Subsidiary | 0 | |
Cash Paid for Acquisition, Net of Cash Acquired | (2,174) | |
Proceeds on Sale of Investment in Marketable Securities | 0 | |
Net Borrowings (Repayments) On Loans Notes Payable And Long Term Debt | 0 | 0 |
Net Cash Used in Investing Activities | (1,385) | (2,549) |
Cash flows from Financing Activities: | ||
Net Borrowings (Repayments) on Loans, Revolver, Notes Payable and Long-Term Debt | (6,376) | 5,574 |
Treasury Stock Purchases | 0 | 0 |
Payment of Acquisition Contingent Liability | (813) | |
Stock Option Exercise Proceeds and Tax Benefits | 0 | 0 |
Cash Dividends Paid | (297) | |
Cash Investment In Subsidiary | (243) | |
Net Cash (Used in) Provided by Financing Activities | (7,486) | 5,331 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 162 | (1,284) |
NET DECREASE IN CASH AND CASH EQUIVALENTS | (7,017) | (4,813) |
CASH AND CASH EQUIVALENTS, Beginning | 48,132 | 55,758 |
CASH AND CASH EQUIVALENTS, Ending | 41,115 | 50,945 |
Consolidation, Eliminations [Member] | ||
Net Cash Provided by (Used in) Operating Activities | (297) | (243) |
Cash Flows from Investing Activities: | ||
Capital Expenditures | 0 | 0 |
Proceeds Received on Disposition of Plant and Equipment | 0 | 0 |
Cash Investment In Subsidiary | 0 | |
Cash Paid for Acquisition, Net of Cash Acquired | 0 | |
Proceeds on Sale of Investment in Marketable Securities | 0 | |
Net Borrowings (Repayments) On Loans Notes Payable And Long Term Debt | 20,273 | (2,489) |
Net Cash Used in Investing Activities | 20,273 | (2,489) |
Cash flows from Financing Activities: | ||
Net Borrowings (Repayments) on Loans, Revolver, Notes Payable and Long-Term Debt | (20,273) | 2,489 |
Treasury Stock Purchases | 0 | 0 |
Payment of Acquisition Contingent Liability | 0 | |
Stock Option Exercise Proceeds and Tax Benefits | 0 | 0 |
Cash Dividends Paid | 297 | |
Cash Investment In Subsidiary | 243 | |
Net Cash (Used in) Provided by Financing Activities | (19,976) | 2,732 |
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | 0 | 0 |
NET DECREASE IN CASH AND CASH EQUIVALENTS | 0 | 0 |
CASH AND CASH EQUIVALENTS, Beginning | 0 | 0 |
CASH AND CASH EQUIVALENTS, Ending | $ 0 | $ 0 |