1
FORM 10-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended JULY 3, 1994
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 or 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from ________ to ________
Commission file number 1-1370
BRIGGS & STRATTON CORPORATION
(Exact name of registrant as specified in its charter)
A Wisconsin Corporation 39-0182330
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
12301 WEST WIRTH STREET
WAUWATOSA, WISCONSIN 53222
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 414-259-5333
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Name of Each Exchange on Which Registered
Common Stock (par value
$0.01 per share) New York Stock Exchange
Common Share Purchase Rights New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: NONE
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days. Yes _X__ No ____
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to
this Form 10-K. [ X ]
The aggregate market value of voting stock held by nonaffiliates of the
registrant was approximately $1,071,166,000 based on the reported last sale
price of such securities as of September 8, 1994.
Number of Shares of Common Stock Outstanding at September 8, 1994: 14,463,500.
DOCUMENTS INCORPORATED BY REFERENCE
Part of Form 10-K Into Which Portions
Document of Document are Incorporated
-------- ----------------------------------
Annual Report to Shareholders
for year ended July 3, 1994 Parts I (Item 1) and II
Proxy Statement for Annual Meeting
on October 19, 1994 Part III
The Exhibit Index is located on page 14.
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TABLE OF CONTENTS
PART I
Item Page
- - - ---- ----
1. Business 1
2. Properties 3
3. Legal Proceedings 3
4. Submission of Matters to a Vote of Security Holders 3
PART II
5. Market for the Registrant's Common Equity and Related
Stockholder Matters 6
6. Selected Financial Data 6
7. Management's Discussion and Analysis of Financial Condition
and Results of Operations 6
8. Financial Statements and Supplementary Data 6
9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure 6
PART III
10. Directors and Executive Officers of the Registrant 6
11. Executive Compensation 6
12. Security Ownership of Certain Beneficial Owners and
Management 6
13. Certain Relationships and Related Transactions 6
PART IV
14. Exhibits, Financial Statement Schedules, and Reports on
Form 8-K 7
Signatures 9
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PART I
Item1. Business
Basic Business
Briggs & Stratton Corporation is the world's largest producer of air cooled
gasoline engines for outdoor power equipment and locks for automobiles and
trucks. The Company designs, manufactures, markets and services these products
for original equipment manufacturers worldwide.
Engines
Engines, parts and related products provided 93% of sales in fiscal 1994. These
engines were air cooled aluminum alloy gasoline engines ranging from 3 to 20
horsepower.
In fiscal 1994, approximately 85% of original equipment gasoline engine sales
were to manufacturers of lawn and garden equipment; approximately 15% were
to manufacturers of other powered equipment, primarily for the construction
industry and for agriculture. In the United States and Canada, engine sales
are made primarily directly to original equipment manufacturers.
Sales to the Company's largest engine customer, MTD Products Inc., were 18% of
total sales in fiscal 1994. Sales to its second largest customer, Tomkins PLC,
were 12% of sales and sales to its third largest customer, A B Electrolux, were
12% of sales. Under purchasing plans available to all gasoline engine
customers, the Company normally enters into annual engine supply agreements
with these producers of end products powered by the Company's gasoline engines.
Company management has no reason to anticipate a change from the continuation
of this practice or in its historical business relationships with these
companies.
The major domestic competitors of the Company in engine manufacturing are
Tecumseh Products Company, Kohler Co., Kawasaki Heavy Industries, Ltd. and Onan
Corporation. Also, two domestic lawn mower manufacturers, Toro Co. Inc.
through its Lawn-Boy Inc. branch and Honda Motor Co., Ltd., manufacture their
own engines. Eight Japanese small engine manufacturers, of which Honda and
Kawasaki are the largest, are worldwide competitors not only in the sale of
engines, but end products as well. Tecnamotor S.p.A., located in Italy and
owned by Tecumseh, is a major competitor in Europe. Major areas of competition
from all engine manufacturers are product quality, price, timely delivery and
service. The Company believes its product quality and service reputation have
given it the strong brand name identification it enjoys.
Servicing of all the Company's gasoline engine products is done by a network
of over 32,000 independent service parts distribution and repair outlets in
the United States and Canada and many foreign countries.
Manufacturing activity in the lawn and garden industry is driven by the need to
deliver new lawn mowers, garden tractors and tillers for retail sales in the
spring and early summer. Thus, demand from customers is at its height in their
winter and spring manufacturing season. Most engines are manufactured to
individual customer specifications. The Company offers financial incentives to
its OEMs to specify standardized engines; to take delivery during the off
season; and to commit early, for delivery at specific times during the busy
season. These programs, designed to level manufacturing activity, cause the
Company to build inventories of finished engines in the first and second
quarters. Thus, sales generally are highest in the March quarter and weakest
in the September quarter. Customer orders in the last three months of the
fiscal year depend on spring retail sales, so the June quarter is the least
predictable.
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Locks and Keys
Mechanical locks, electro-mechanical locks and related products provided
approximately 7% of sales in fiscal 1994. Customers are primarily the major
automobile and truck manufacturers in North America. Major competitors of the
Company in lock manufacturing are Hurd Lock & Manufacturing Company and
All-Lock Company, Inc. Price, product quality, delivery performance and
technical support are major areas of competition.
A substantial portion of the Company's lock production is sold to two of the
three large North American automobile manufacturers as original equipment
components. The loss of these customers would effectively eliminate the
Company's lock business. These manufacturers have been customers for many years
and the Company anticipates continued business in future years. However, the
largest of these customers has changed its purchasing practices. These
practices may change the level of business the Company receives from that
customer in the future. A substantial reduction from the current level of
business with that customer would significantly impact the Company's lock
business.
Sales to original equipment customers are made by personnel from the Milwaukee
headquarters and Detroit sales office. Independent Sales Representatives are
utilized in servicing certain other industrial OEM accounts. Service parts
and replacement locks are sold to OEMs and to Locksmith Wholesalers.
In May, the Board of Directors approved the spin-off of the lock division to
the Company shareholders. It is currently anticipated that the spin-off will
occur in early calendar 1995.
General
The Company manufactures a majority of the components used in its
products and purchases the balance of its requirements. The Company
manufactures its own ductile and grey iron castings, aluminum and zinc die
castings and a high percentage of other major components, such as carburetors
and ignition systems. The Company also purchases certain finished standard
commercial parts such as piston rings, spark plugs, valves and plastic
components, some stampings and screw machine parts and smaller quantities of
other components. Raw material purchases are for aluminum, steel, zinc and
brass. The Company believes its sources of supply are adequate.
The Company holds certain patents on features incorporated in its
products; however, the success of the Company's business is not considered to
be primarily dependent upon patent protection. Licenses, franchises and
concessions are not a material factor in the Company's business.
For the years ending July 3, 1994, June 27, 1993 and June 30, 1992, the Company
spent approximately $12,520,000, $10,411,000 and $10,808,000, respectively,
on Company sponsored research activities relating to the development of new
products or the improvement of existing products.
The average number of persons employed by the Company during the fiscal year
was 8,583. Employment ranged from a low of 7,879 in July 1993 to a high of
8,801 in December 1994.
Financial Information About Industry Segments
Financial information about industry segments appears in Note 3 of the 1994
Annual Report to Shareholders and is incorporated herein by reference.
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Export Sales
Export sales for fiscal 1994 were $264,866,000 (21% of total sales), for fiscal
1993 were $249,610,000 (22% of total sales) and for fiscal 1992 were
$210,728,000 (20% of total sales). These sales were principally to customers in
European countries.
Item 2. Properties
The corporate offices as well as the Company's largest engine manufacturing
facility are located in Wauwatosa, Wisconsin, a suburb of Milwaukee. Three
other facilities located in the Milwaukee metropolitan area are used for
production, warehousing and distribution of engines and engine parts. These are
owned facilities containing approximately 3,232,000 square feet of office,
warehouse and production area. Engines also are manufactured at a 292,000
square foot owned facility in Murray, Kentucky and a 236,000 square foot owned
facility in Poplar Bluff, Missouri. The engine business is seasonal, with
demand for engines at its height in the winter and early spring. Engine
manufacturing operations run at capacity levels during the peak season, with
many operations running three shifts. Engine operations generally run one shift
in the summer, when demand is weakest and production is considerably under
capacity. During the winter, when finished goods inventories reach their
highest levels, owned warehouse space may be insufficient and capacity may be
expanded through rented space. Excess warehouse space exists in the spring and
summer seasons. In May, the Board of Directors approved a plan of relocation
for several of the Company's facilities over the next three years. The plan
provides for the expansion of existing facilities in Murray, Kentucky and
Poplar Bluff, Missouri and the establishment of three new engine manufacturing
facilities. The Company has announced the selection of sites in Statesboro,
Georgia and Auburn, Alabama for two of the facilities. The Company's owned
properties are well maintained.
The Company leases 173,000 square feet of space to house its European warehouse
in the Netherlands and its foreign sales and service operations in Australia,
Canada, France, Germany, New Zealand, Switzerland and the United Kingdom.
The Company's domestic lock manufacturing facility is located in the Milwaukee
suburb of Glendale, Wisconsin. This facility has floor space of approximately
352,000 square feet. The Company also owns a 50,000 square foot assembly plant
in Juarez, Mexico. Both properties are well maintained and are adequate for its
current needs. Additional demand could be met through increased manufacturing
capacity gained by adding a shift.
Item 3. Legal Proceedings
There are no pending legal proceedings that are required to be reported under
this item.
Item 4. Submission of Matters to a Vote of Security Holders
No matters were submitted to a vote of security holders, through the
solicitation of proxies or otherwise, during the three months ended July 3,
1994.
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Executive Officers of the Registrant
Name, Age, Position Business Experience for Past Five Years
------------------ ------------------------------------------
FREDERICK P. STRATTON, JR., 55 Mr. Stratton was elected to the position of Chief Executive Officer in May
Chairman and Chief Executive Officer 1977 and Chairman in November 1986. He also served in the position of President
(1) (2) from January 1992 to August 1994.
ROBERT H. ELDRIDGE, 56 Mr. Eldridge was elected to his current position effective January 1984.
Secretary - Treasurer (1)
MICHAEL D. HAMILTON, 52 Mr. Hamilton was elected to his present position effective June 1989.
Executive Vice President -
Sales and Service
JOHN S. SHIELY, 42 Mr. Shiely was elected to his current position in August 1994 after serving
President and Chief Operating as Executive Vice President - Administration since November 1991. He joined
Officer (1) the Company in June 1986 as General Counsel and served as Vice President and
General Counsel from November 1990 to November 1991.
JAMES A. WIER, 51
Executive Vice President - Operations Mr. Wier was elected to his current position in April 1989.
ERIK ASPELIN, 53 Mr. Aspelin assumed his current position in July 1989.
Vice President - Distribution
Sales and Service
JAMES E. BRENN, 46 Mr. Brenn was elected to his current position in November 1988.
Vice President and Controller
RICHARD J. FOTSCH, 39 Mr. Fotsch was elected an executive officer in May 1993 after serving the Small
Vice President; General Manager - Engine Division as General Manager from July 1989 to July 1990 and as Vice
Small Engine Division President and General Manager from July 1990 to May 1993.
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HUGO A. KELTZ, 46 Mr. Keltz was elected an executive officer in May 1992 after serving as Vice
Vice President - International President - International since June 1991. He served as Regional Director -
Europe from November 1989 to June 1991 after serving as International General
Service and Distribution Manager from October 1988 to November 1989.
PAUL M. NEYLON, 47 Mr. Neylon was elected an executive officer in May 1993, after serving the
Vice President; General Manager - Vanguard Division as Vice President and General Manager since November 1991.
Vanguard Division He previously served the Castings Division as General Manager from July 1989 to
July 1990 and as Vice President and General Manager from July 1990 to November 1991.
STEPHEN H. RUGG, 47 Mr. Rugg was elected to his current position in November 1988.
Vice President - Sales and Marketing
GREGORY D. SOCKS, 45 Mr. Socks was elected an executive officer in May 1993 after serving the Large
Vice President; General Manager - Engine Division as General Manager from August 1989 to July 1990 and Vice
Large Engine Division President and General Manager from July 1990 to May 1993.
HAROLD M. STRATTON II, 46 Mr. Stratton was elected to his current position effective April 1, 1989.
Vice President; General Manager -
B&S Technologies
GERALD E. ZITZER, 47 Mr. Zitzer was elected to his current position in November 1988.
Vice President - Human Resources
(1) Officer is also a Director of the Company.
(2) Member of the Executive Committee and Planning Committee.
Frederick P. Stratton, Jr., and Harold M. Stratton II are brothers.
Officers are elected annually and serve until their successors are elected
and qualify.
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PART II
Item 5. Market for the Registrant's Common Equity and Related Stockholder
Matters
Information required by this Item is incorporated by reference to "Quarterly
Financial Data, Dividend and Market Information" on page 32 of the 1994 Annual
Report to Shareholders.
Item 6. Selected Financial Data
Information required by this Item appears under the heading "Ten Year
Comparisons" on pages 34 and 35 of the 1994 Annual Report to Shareholders and
is incorporated herein by reference.
Item 7. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Management's discussion and analysis of results of operations and financial
condition of the Company appears on pages 29 through 31 of the 1994 Annual
Report to Shareholders and is incorporated by reference in this Form 10-K.
Item 8. Financial Statements and Supplementary Data
The information required by Item 8 is incorporated by reference from the
Consolidated Financial Statements and Notes to Consolidated Financial
Statements appearing on pages 15 through 26 and page 32 of the 1994 Annual
Report to Shareholders.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure
The Company has not changed independent accountants in the last two years.
PART III
Item 10. Directors and Executive Officers of the Registrant
Information pertaining to directors is incorporated herein by reference from
pages 2 and 3 of the Company's 1994 Annual Meeting Proxy Statement dated
September 8, 1994. Information regarding executive officers required by Item
401 and 405 of Regulation S-K is furnished in Part I.
Item 11. Executive Compensation
The information required by Item 11 is incorporated by reference from the
section entitled Election of Directors on page 2, the Nominating and Salaried
Personnel Committee Report on Executive Compensation found on pages 7-10 and
the Executive Compensation section found on pages 11-15 of the Company's 1994
Annual Meeting Proxy Statement.
Item 12. Security Ownership of Certain Beneficial Owners and Management
The information required by Item 12 is incorporated by reference from pages
5 and 6 of the Company's 1994 Annual Meeting Proxy Statement.
Item 13. Certain Relationships and Related Transactions
The information required by Item 13 is incorporated by reference from page
4 of the Company's 1994 Annual Meeting Proxy Statement.
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PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K
(a) The following documents are filed as a part of this report:
Page Reference
-------------------------
1994
Annual Report
1994 to
Form 10-K Shareholders
---------- ------------
1. Financial Statements
Consolidated Balance Sheets,
July 3, 1994 and June 27, 1993 16*
For the Years Ended July 3, 1994,
June 27, 1993 and June 30, 1992:
Consolidated Statements of Income and
Shareholders' Investment 15*, 17*
Consolidated Statements of Cash Flows 18*
Notes to Consolidated Financial Statements 19-26*
Report of Independent Public Accountants 28*
* Incorporated herein by reference to the Registrant's 1994 Annual
Report to Shareholders for the fiscal year ended July 3, 1994.
2. Financial Statement Schedules
Report of Independent Public Accountants 10
Schedule V - Property, Plant and Equipment 11
Schedule VI - Accumulated Depreciation and
Unamortized Investment Tax Credit 12
Schedule VIII - Valuation and Qualifying
Accounts 13
Schedule X - Supplementary Income
Statement Information 13
All other schedules are omitted because they are not applicable or
the required information is shown in the financial statements or the
notes thereto.
The individual financial statements of the Registrant have been omitted
since the Registrant is primarily an operating company and the
subsidiaries included in the consolidated statements are wholly owned.
3. Exhibits
See Exhibit Index on page 14 of this report, which is incorporated
herein by reference.
Executive Compensation Plans and Arrangements:
Forms of Officer Employment Agreements.
(Filed as Exhibit 10.0 to the Company's Annual Report on Form 10-K
for fiscal year ended June 27, 1993 and incorporated by reference
herein.)
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Survivor Annuity Plan.
(Filed as Exhibit 10.1 to the Company's Annual Report on Form 10-K for
fiscal year ended June 30, 1986 and incorporated by reference herein.)
Supplemental Retirement Program.
(Filed as Exhibit 10.3 to the Company's Annual Report on Form 10-K for
fiscal year ended June 30, 1990 and incorporated by reference herein.)
Economic Value Added Incentive Compensation Plan.
(Filed as Exhibit 10.3 to the Company's Annual Report on Form 10-K for
fiscal year ended June 27, 1993 and incorporated by reference herein.)
Form of Change of Control Employment Agreements.
(Filed as Exhibit 10.4 to the Company's Annual Report on Form 10-K for
fiscal year ended June 27, 1993 and incorporated by reference herein.)
Trust Agreement with an independent trustee to provide payments under various
compensation agreements with company employees upon the occurrence of a
change in control.
(Filed as Exhibit 10.1 to the Company's Report on Form 10-Q for the
quarter ended October 1, 1989, and incorporated by reference herein.)
Stock Incentive Plan.
(Filed as Exhibit A to the Company's 1990 Annual Meeting Proxy Statement,
which was filed as Exhibit 100A to the Company's Annual Report on Form
10-K for fiscal year ended June 30, 1990 and incorporated by reference
herein.)
Leveraged Stock Option Program
(Filed as Exhibit 10.7 to the Company's Annual Report on Form 10-K for
fiscal year ended June 27, 1993 and incorporated by reference herein.)
Deferred Compensation Agreement
(Filed herewith.)
(b) Reports on Form 8-K
On May 20, 1994, the Company filed a report on Form 8-K for the purpose
of reporting the approval by the Board of Directors on May 17, 1994 of
two actions. The Board approved a spin-off of the Briggs & Stratton
Technologies Division to Briggs & Stratton's shareholders which is
anticipated to occur in January 1995. The Board also approved a Plan
of Relocation which provides for the expansion of existing facilities
and the establishment of three new manufacturing facilities outside of
Milwaukee at a cost of approximately $112 million over the next two
years.
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SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned, thereunto duly authorized.
BRIGGS & STRATTON CORPORATION
By /s/ R. H. Eldridge
------------------------
R. H. Eldridge
September 20, 1994 Secretary-Treasurer
-----------------------------------------
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature appears below
constitutes and appoints Frederick P. Stratton, Jr. and Robert H. Eldridge, and
each of them, his true and lawful attorneys-in-fact and agents, with full power
of substitution and resubstitution, for him and in his name, place and stead,
in any and all capacities, to sign any and all amendments to this report, and
to file the same, with all exhibits thereto, and other documents in connection
therewith, with the Securities and Exchange Commission, granting unto said
attorneys-in-fact and agents, and each of them, full power and authority to do
and perform each and every act and thing requisite and necessary to be done in
and about the premises, as fully to all intents and purposes as he might or
could do in person, hereby ratifying and confirming all that said
attorneys-in-fact and agents or any of them, or their substitutes, may lawfully
do or cause to be done by virtue thereof.
-----------------------------------------
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
registrant and in the capacities and on the dates indicated.
/s/ F. P. Stratton, Jr. /s/ Sheldon B. Lubar
- - - ------------------------------------------- -------------------------------------------
F. P. Stratton, Jr. September 20, 1994 Sheldon B. Lubar September 20, 1994
Chairman and Chief Executive Officer and Director
Director (Principal Executive Officer)
/s/ Robert H. Eldridge /s/ John L. Murray
- - - ------------------------------------------- -------------------------------------------
Robert H. Eldridge September 20, 1994 John L. Murray September 20, 1994
Secretary-Treasurer and Director Director
(Principal Financial Officer)
/s/ James E. Brenn /s/ C. B. Rogers, Jr.
- - - ------------------------------------------- -------------------------------------------
James E. Brenn September 20, 1994 C. B. Rogers, Jr. September 20, 1994
Vice President and Controller Director
(Principal Accounting Officer)
/s/ Michael E. Batten /s/ John S. Shiely
- - - ------------------------------------------- -------------------------------------------
Michael E. Batten September 20, 1994 John S. Shiely September 20, 1994
Director President and Chief Operating Officer and
Director
/s/ Peter A. Georgescu /s/ Elwin J. Zarwell
- - - ------------------------------------------- -------------------------------------------
Peter A. Georgescu September 20, 1994 Elwin J. Zarwell September 20, 1994
Director Director
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REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS
We have audited in accordance with generally accepted auditing standards the
consolidated financial statements included in the Briggs & Stratton Corporation
Annual Report to Shareholders incorporated by reference in this Form 10-K and
have issued our report thereon dated July 28, 1994. Our audit was made for the
purpose of forming an opinion on those statements taken as a whole. The
schedules listed in the accompanying index are the responsibility of the
Company's management and are presented for purposes of complying with the
Securities and Exchange Commission's rules and are not part of the basic
consolidated financial statements. These schedules have been subjected to the
auditing procedures applied in the audit of the basic consolidated financial
statements and, in our opinion, fairly state in all material respects the
financial data required to be set forth therein in relation to the basic
consolidated financial statements taken as a whole.
ARTHUR ANDERSEN LLP
Milwaukee, Wisconsin,
July 28, 1994.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
SCHEDULE V - PROPERTY, PLANT AND EQUIPMENT
Balance at Adjustments Balance at
Beginning Additions Retirements for End of
Description of Period at Cost or Sales Translation Period
---------- ----------- --------- ---------- ----------- ------------
Year Ended June 30, 1992
- - - ---------------------------
Land and land improvement $ 10,909,000 $ 171,000 $ 234,000 $ 93,000 $ 10,939,000
Buildings 111,250,000 1,620,000 698,000 521,000 112,693,000
Machinery and equipment 488,819,000 40,725,000 27,157,000 285,000 502,672,000
Construction in progress 21,510,000 (2,292,000) 2,089,000 - 17,129,000
------------- ----------- ----------- --------- -------------
Totals $ 632,488,000 $40,224,000 $30,178,000 $ 899,000 $ 643,433,000
============= =========== =========== ========= ============
Year Ended June 27, 1993
- - - ----------------------------
Land and land improvements $ 10,939,000 $ 95,000 $ 2,000 $ (41,000) $ 10,991,000
Buildings 112,693,000 2,061,000 337,000 (351,000) 114,066,000
Machinery and equipment 502,672,000 36,460,000 22,144,000 (423,000) 516,565,000
Construction in progress 17,129,000 (506,000) 120,000 (5,000) 16,498,000
------------- ----------- ----------- --------- -------------
Totals $ 643,433,000 $38,110,000 $22,603,000 $(820,000) $ 658,120,000
============= =========== =========== ========= ============
Year Ended July 3, 1994
- - - ----------------------------
Land and land improvements $ 10,991,000 $ 180,000 $ 782,000 $(110,000) $ 10,279,000
Buildings 114,066,000 2,084,000 4,078,000 (106,000) 111,966,000
Machinery and equipment 516,565,000 38,325,000 24,369,000 180,000 530,701,000
Construction in progress 16,498,000 215,000 56,000 (10,000) 16,647,000
------------- ----------- ----------- --------- -------------
Totals $ 658,120,000 $40,804,000 $29,285,000 $ (46,000) $ 669,593,000
============= =========== =========== ========= ============
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
SCHEDULE VI - ACCUMULATED DEPRECIATION AND
UNAMORTIZED INVESTMENT TAX CREDIT
Deductions
From
Reserves -
Provision Retirements,
Balance at Charged Renewals Adjustments Balance at
Beginning to Profit and for End
Description of Period and Loss Replacements Translation of Period
----------- -------------- ------------ ------------- -------------- ------------
Year Ended June 30, 1992
- - - -------------------------
Land improvements $ 3,643,000 $ 295,000 $ 41,000 $ - $ 3,897,000
Buildings 48,930,000 3,802,000 576,000 168,000 52,324,000
Machinery and equipment 253,586,000 38,046,000 19,251,000 198,000 272,579,000
------------- ------------ ----------- --------- -------------
$ 306,159,000 $ 42,143,000 $19,868,000 $ 366,000 $ 328,800,000
Unamortized investment
tax credit 5,965,000 (1,030,000) - - 4,935,000
------------- ------------ ----------- --------- -------------
Totals $ 312,124,000 $ 41,113,000 $19,868,000 $ 366,000 $ 333,735,000
============= ============ =========== ========= =============
Year Ended June 27, 1993
- - - --------------------------
Land improvements $ 3,897,000 $ 300,000 $ 2,000 $ - $ 4,195,000
Buildings 52,324,000 3,921,000 281,000 (151,000) 55,813,000
Machinery and equipment 272,579,000 43,881,000 17,629,000 (316,000) 298,515,000
------------- ------------ ----------- --------- -------------
$ 328,800,000 $ 48,102,000 $17,912,000 $(467,000) $ 358,523,000
Unamortized investment
tax credit 4,935,000 (880,000) - - 4,055,000
------------- ------------ ----------- --------- -------------
Totals $ 333,735,000 $ 47,222,000 $17,912,000 $(467,000) $ 362,578,000
============ ============ =========== ========= =============
Year Ended July 3, 1994
- - - -------------------------
Land improvements $ 4,195,000 $ 296,000 $ 359,000 $ - $ 4,132,000
Buildings 55,813,000 3,768,000 1,931,000 6,000 57,656,000
Machinery and equipment 298,515,000 39,716,000 19,670,000 129,000 318,690,000
------------- ------------ ----------- --------- -------------
$ 358,523,000 $ 43,780,000 $21,960,000 $ 135,000 $ 380,478,000
Unamortized investment
tax credit 4,055,000 (830,000) - - 3,225,000
------------- ------------ ----------- --------- -------------
Totals $362,578,000 $ 42,950,000 $21,960,000 $ 135,000 $ 383,703,000
============ ============ =========== ========= =============
The annual rates used for computing depreciation are shown below:
Straight-Line
Rate
-----------
Land improvements 3-1/3% to 5%
Buildings 2% to 10%
Machinery and equipment 5% to 50%
Certain tools, dies, jigs and fixtures, classified with machinery and equipment
are depreciated on a straight-line basis over five years.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
SCHEDULE VIII - VALUATION AND QUALIFYING ACCOUNTS
Provision
Balance at Charged Balance at
Beginning to Profit End of
Description of Period and Loss Payments Period
------------ ------------- ---------- ----------- --------------
Year Ended June 30, 1992
- - - ------------------------
Estimated warranty
expense to be incurred $ 24,754,000 $ 25,003,000 $ 23,929,000 $ 25,828,000
============= ============ =========== ============
Reserve for retired
employees' life insurance $ 9,755,000 $ 811,000 $ 817,000 $ 9,749,000
============= ============ ============ =============
Year Ended June 27, 1993
- - - ------------------------
Estimated warranty
expense to be incurred $ 25,828,000 $ 23,523,000 $ 21,033,000 $ 28,318,000
============= ============ ============ =============
Reserve for retired
employees' life insurance $ 9,749,000 $ 825,000 $ 827,000 $ 9,747,000
============= ============ ============ ============
Year Ended July 3, 1994
- - - ------------------------
Estimated warranty
expense to be incurred $ 28,318,000 $ 23,694,000 $ 22,212,000 $ 29,800,000
============= ============ ============ ============
Reserve for retired
employees' life insurance $ 9,747,000 $ 908,000 $ 664,000 $ 9,991,000
============= ============ ============ ============
SCHEDULE X - SUPPLEMENTARY INCOME STATEMENT INFORMATION
The following amounts were charged directly to current operations.
For the Fiscal Year
------------------------------------------------------
1994 1993 1992
------------- ------------- -------------
Maintenance and repairs $ 56,415,000 $ 51,675,000 $ 47,746,000
Depreciation 42,950,000 47,222,000 41,113,000
13
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BRIGGS & STRATTON CORPORATION
EXHIBIT INDEX
1994 ANNUAL REPORT ON FORM 10-K
Exhibit
Number Description
- - - -------- ------------
3.1 Articles of Incorporation.
(Filed as Exhibit 3.1 to the Company's Report on Form 8-B dated
October 12, 1992, and incorporated by reference herein.)
3.2 Bylaws.
(Filed as Exhibit 3.2 to the Company's Report on Form 8-B dated October 12,
1992 and incorporated by reference herein.)
4 Rights Agreement dated as of December 20, 1989, between Briggs &
Stratton Corporation and First Wisconsin Trust Company which includes the form
of Right Certificate as Exhibit A and the Summary of Rights to Purchase Common
Shares as Exhibit B.
(Filed as Exhibit 1 to the Company's Report on Form
8-K dated December 20, 1989 and incorporated by reference herein.)
10.0 Forms of Officer Employment Agreements.
(Filed as Exhibit 10.0 to the Company's Annual Report on Form 10-K for fiscal
year ended June 27, 1993 and incorporated by reference herein.)
10.1 Survivor Annuity Plan.
(Filed as Exhibit 10.1 to the Company's Annual Report on Form 10-K for fiscal
year ended June 30, 1986 and incorporated by reference herein.)
10.2 Supplemental Retirement Program.
(Filed as Exhibit 10.3 to the Company's Annual Report on Form 10-K for fiscal
year ended June 30, 1990 and incorporated by reference herein.)
10.3 Economic Value Added Incentive Compensation Plan.
(Filed as Exhibit 10.3 to the Company's Annual Report on Form 10-K for fiscal
year ended June 27, 1993 and incorporated by reference herein.)
10.4 Form of Change of Control Employment Agreements.
(Filed as Exhibit 10.4 to the Company's Annual Report on Form 10-K for fiscal
year ended June 27, 1993 and incorporated by reference herein.)
10.5 Trust Agreement with an independent trustee to provide payments
under various compensation agreements with company employees upon the occurrence
of a change in control.
(Filed as Exhibit 10.1 to the Company's Report on Form
10-Q for the quarter ended October 1, 1989, and incorporated by reference herein.)
10.6 Stock Incentive Plan.
(Filed as Exhibit A to the Company's 1993 Annual Meeting Proxy Statement, which
was filed as Exhibit 100A to the Company's Annual Report on Form 10-K for fiscal
year ended June 27, 1993 and incorporated by reference herein.)
10.7 Leveraged Stock Option Program
(Filed as Exhibit 10.7 to the Company's Annual Report on Form 10-K for fiscal
year ended June 27, 1993 and incorporated by reference herein.)
10.8 Deferred Compensation Agreement
(Filed herewith.)
13 Annual Report to Shareholders for Year Ended July 3, 1994.
(Filed herewith solely to the extent specific portions thereof are incorporated
herein by reference.)
14
17
Exhibit
Number Description
- - - ------ -------------
21 Subsidiaries of the Registrant.
(Filed as Exhibit 22 to the Company's Annual Report on Form 10-K for fiscal
year ended June 27, 1993 and incorporated by reference herein.)
23 Consent of Independent Public Accountants.
(Filed herewith.)
24 Power of Attorney
(Included in the Signature Page of this report.)
27 Financial Data Schedule
(Filed herewith.)
15