x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Wisconsin | 39-0182330 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Yes x No o | 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. |
Large accelerated filer | x | Accelerated filer | ¨ |
Non-accelerated filer | o (Do not check if a smaller reporting company) | Smaller reporting company | ¨ |
Yes o No x | Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). |
Class | Outstanding at November 4, 2011 | |
COMMON STOCK, par value $0.01 per share | 50,063,870 Shares |
Page No. | ||
PART I – FINANCIAL INFORMATION | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II – OTHER INFORMATION | ||
Item 1. | ||
Item 1A. | ||
Item 2. | ||
Item 6. | ||
(Unaudited) | ||||||||
October 2, 2011 | July 3, 2011 | |||||||
CURRENT ASSETS: | ||||||||
Cash and Cash Equivalents | $ | 138,244 | $ | 209,639 | ||||
Accounts Receivable, Net | 232,370 | 249,358 | ||||||
Inventories - | ||||||||
Finished Products and Parts | 351,350 | 292,527 | ||||||
Work in Process | 131,658 | 127,358 | ||||||
Raw Materials | 9,120 | 7,206 | ||||||
Total Inventories | 492,128 | 427,091 | ||||||
Deferred Income Tax Asset | 42,858 | 42,163 | ||||||
Assets Held for Sale | 4,000 | 4,000 | ||||||
Prepaid Expenses and Other Current Assets | 25,173 | 36,413 | ||||||
Total Current Assets | 934,773 | 968,664 | ||||||
OTHER ASSETS: | ||||||||
Goodwill | 201,901 | 202,940 | ||||||
Investments | 21,203 | 21,017 | ||||||
Debt Issuance Costs, Net | 4,685 | 4,919 | ||||||
Other Intangible Assets, Net | 88,372 | 89,275 | ||||||
Long-Term Deferred Income Tax Asset | 24,874 | 31,001 | ||||||
Other Long-Term Assets, Net | 9,380 | 9,102 | ||||||
Total Other Assets | 350,415 | 358,254 | ||||||
PLANT AND EQUIPMENT: | ||||||||
Cost | 1,032,073 | 1,026,967 | ||||||
Less - Accumulated Depreciation | 698,969 | 687,667 | ||||||
Total Plant and Equipment, Net | 333,104 | 339,300 | ||||||
TOTAL ASSETS | $ | 1,618,292 | $ | 1,666,218 |
(Unaudited) | ||||||||
October 2, 2011 | July 3, 2011 | |||||||
CURRENT LIABILITIES: | ||||||||
Accounts Payable | $ | 172,710 | $ | 183,733 | ||||
Short-Term Debt | 3,000 | 3,000 | ||||||
Accrued Liabilities | 143,966 | 157,650 | ||||||
Total Current Liabilities | 319,676 | 344,383 | ||||||
OTHER LIABILITIES: | ||||||||
Accrued Pension Cost | 189,117 | 191,417 | ||||||
Accrued Employee Benefits | 24,173 | 24,100 | ||||||
Accrued Postretirement Health Care Obligation | 113,067 | 116,092 | ||||||
Other Long-Term Liabilities | 26,734 | 27,283 | ||||||
Long-Term Debt | 225,000 | 225,000 | ||||||
Total Other Liabilities | 578,091 | 583,892 | ||||||
SHAREHOLDERS’ INVESTMENT: | ||||||||
Common Stock - Authorized 120,000 shares, $.01 par value, issued 57,854 shares | 579 | 579 | ||||||
Additional Paid-In Capital | 78,973 | 79,354 | ||||||
Retained Earnings | 1,082,079 | 1,092,864 | ||||||
Accumulated Other Comprehensive Loss | (249,445 | ) | (243,498 | ) | ||||
Treasury Stock at cost, 7,467 and 7,793 shares, respectively | (191,661 | ) | (191,356 | ) | ||||
Total Shareholders’ Investment | 720,525 | 737,943 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT | $ | 1,618,292 | $ | 1,666,218 |
Three Months Ended | ||||||||
October 2, 2011 | September 26, 2010 | |||||||
NET SALES | $ | 397,297 | $ | 334,116 | ||||
COST OF GOODS SOLD | 331,243 | 272,122 | ||||||
Gross Profit | 66,054 | 61,994 | ||||||
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 67,677 | 70,456 | ||||||
Loss from Operations | (1,623 | ) | (8,462 | ) | ||||
INTEREST EXPENSE | (4,338 | ) | (5,157 | ) | ||||
OTHER INCOME, Net | 1,794 | 1,435 | ||||||
Loss Before Income Taxes | (4,167 | ) | (12,184 | ) | ||||
PROVISION (CREDIT) FOR INCOME TAXES | 1,053 | (4,070 | ) | |||||
NET LOSS | $ | (5,220 | ) | $ | (8,114 | ) | ||
EARNINGS (LOSS) PER SHARE DATA | ||||||||
Weighted Average Shares Outstanding | 49,818 | 49,665 | ||||||
Basic Earnings (Loss) Per Share | $ | (0.10 | ) | $ | (0.16 | ) | ||
Diluted Average Shares Outstanding | 49,818 | 49,665 | ||||||
Diluted Earnings (Loss) Per Share | $ | (0.10 | ) | $ | (0.16 | ) | ||
DIVIDENDS PER SHARE | $ | 0.11 | $ | 0.11 |
Three Months Ended | ||||||||
October 2, 2011 | September 26, 2010 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net Loss | $ | (5,220 | ) | $ | (8,114 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and Amortization | 16,119 | 15,501 | ||||||
Stock Compensation Expense | 2,548 | 5,498 | ||||||
(Gain) Loss on Disposition of Plant and Equipment | (14 | ) | 360 | |||||
Provision (Benefit) for Deferred Income Taxes | 3,507 | (3,011 | ) | |||||
Earnings of Unconsolidated Affiliates | (1,356 | ) | (890 | ) | ||||
Dividends Received from Unconsolidated Affiliates | 1,500 | 3,250 | ||||||
Change in Operating Assets and Liabilities: | ||||||||
Decrease in Accounts Receivable | 13,503 | 93,877 | ||||||
Increase in Inventories | (65,287 | ) | (107,887 | ) | ||||
Decrease in Other Current Assets | 20,870 | 10,465 | ||||||
Decrease in Accounts Payable and Accrued Liabilities | (39,057 | ) | (60,210 | ) | ||||
Other, Net | (3,384 | ) | (4,326 | ) | ||||
Net Cash Used in Operating Activities | (56,271 | ) | (55,487 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Additions to Plant and Equipment | (10,230 | ) | (9,391 | ) | ||||
Proceeds Received on Disposition of Plant and Equipment | 80 | 33 | ||||||
Net Cash Used in Investing Activities | (10,150 | ) | (9,358 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Net Repayments on Notes Payable and Long-Term Debt | — | (2,500 | ) | |||||
Treasury Stock Purchases | (3,118 | ) | — | |||||
Net Cash Used in Financing Activities | (3,118 | ) | (2,500 | ) | ||||
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS | (1,856 | ) | (1,516 | ) | ||||
NET DECREASE IN CASH AND CASH EQUIVALENTS | (71,395 | ) | (68,861 | ) | ||||
CASH AND CASH EQUIVALENTS, Beginning | 209,639 | 116,554 | ||||||
CASH AND CASH EQUIVALENTS, Ending | $ | 138,244 | $ | 47,693 |
Three Months Ended | |||||||||
October 2, 2011 | September 26, 2010 | ||||||||
Net Loss | $ | (5,220 | ) | $ | (8,114 | ) | |||
Less: Dividends Attributable to Unvested Shares | (80 | ) | (70 | ) | |||||
Net Loss Available to Common Shareholders | $ | (5,300 | ) | $ | (8,184 | ) | |||
Weighted Average Shares Outstanding | 49,818 | 49,665 | |||||||
Diluted Average Shares Outstanding | 49,818 | 49,665 | |||||||
Basic Earnings (Loss) Per Share | $ | (0.10 | ) | $ | (0.16 | ) | |||
Diluted Earnings (Loss) Per Share | $ | (0.10 | ) | $ | (0.16 | ) |
Three Months Ended | |||||||||
October 2, 2011 | September 26, 2010 | ||||||||
Options to Purchase Shares of Common Stock (in thousands) | 4,040 | 3,826 | |||||||
Weighted Average Exercise Price of Options Excluded | $ | 26.59 | $ | 28.08 |
Three Months Ended | |||||||||
October 2, 2011 | September 26, 2010 | ||||||||
Net Loss | $ | (5,220 | ) | $ | (8,114 | ) | |||
Cumulative Translation Adjustments | (10,013 | ) | 9,224 | ||||||
Unrealized Loss on Derivative Instruments, Net of tax | (10 | ) | (6,838 | ) | |||||
Unrecognized Pension & Postretirement Obligation, Net of tax | 4,076 | 4,472 | |||||||
Total Comprehensive Loss | $ | (11,167 | ) | $ | (1,256 | ) |
October 2, 2011 | July 3, 2011 | |||||||
Cumulative Translation Adjustments | $ | 15,976 | $ | 25,989 | ||||
Unrealized Loss on Derivative Instruments | (2,253 | ) | (2,243 | ) | ||||
Unrecognized Pension & Postretirement Obligation | (263,168 | ) | (267,244 | ) | ||||
Accumulated Other Comprehensive Loss | $ | (249,445 | ) | $ | (243,498 | ) |
Three Months Ended | |||||||||
October 2, 2011 | September 26, 2010 | ||||||||
Results of Operations: | |||||||||
Sales | $ | 32,315 | $ | 28,851 | |||||
Cost of Goods Sold | 25,631 | 23,822 | |||||||
Gross Profit | $ | 6,684 | $ | 5,029 | |||||
Net Income | $ | 2,769 | $ | 2,092 |
October 2, 2011 | July 3, 2011 | ||||||||
Financial Position: | |||||||||
Assets: | |||||||||
Current Assets | $ | 54,234 | $ | 51,838 | |||||
Non-Current Assets | 18,504 | 18,292 | |||||||
$ | 72,738 | $ | 70,130 | ||||||
Liabilities: | |||||||||
Current Liabilities | $ | 19,088 | $ | 15,809 | |||||
Non-Current Liabilities | 4,845 | 5,749 | |||||||
$ | 23,933 | $ | 21,558 | ||||||
Equity | $ | 48,805 | $ | 48,572 |
Pension Benefits | Other Postretirement Benefits | |||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||
October 2, 2011 | September 26, 2010 | October 2, 2011 | September 26, 2010 | |||||||||||||
Components of Net Periodic Expense: | ||||||||||||||||
Service Cost | $ | 3,397 | $ | 3,665 | $ | 103 | $ | 126 | ||||||||
Interest Cost on Projected Benefit Obligation | 14,351 | 14,202 | 1,680 | 1,839 | ||||||||||||
Expected Return on Plan Assets | (19,224 | ) | (19,285 | ) | — | — | ||||||||||
Amortization of: | ||||||||||||||||
Transition Obligation | 2 | 2 | — | — | ||||||||||||
Prior Service Cost (Credit) | 725 | 765 | (959 | ) | (982 | ) | ||||||||||
Actuarial Loss | 4,676 | 4,477 | 2,236 | 2,782 | ||||||||||||
Net Periodic Expense | $ | 3,927 | $ | 3,826 | $ | 3,060 | $ | 3,765 |
Contract | Notional Amount | |||||||
October 2, 2011 | July 3, 2011 | |||||||
Interest Rate: | ||||||||
LIBOR Interest Rate (U.S. Dollars) | Fixed | 30,000 | — | |||||
Foreign Currency: | ||||||||
Australian Dollar | Sell | 32,835 | 34,295 | |||||
Canadian Dollar | Sell | 6,500 | 10,700 | |||||
Euro | Sell | 54,500 | 41,500 | |||||
Commodity: | ||||||||
Natural Gas (Therms) | Buy | 9,953 | 11,187 | |||||
Aluminum (Metric Tons) | Buy | 19 | 8 | |||||
Steel (Metric Tons) | Buy | 3 | 1 |
Balance Sheet Location | Asset (Liability) Fair Value | |||||||
October 2, 2011 | July 3, 2011 | |||||||
Interest rate contract | ||||||||
Other Long-Term Liabilities | (342 | ) | — | |||||
Foreign currency contracts | ||||||||
Other Current Assets | 5,258 | 108 | ||||||
Accrued Liabilities | (472 | ) | (3,550 | ) | ||||
Other Long-Term Liabilities | — | (280 | ) | |||||
Commodity contracts | ||||||||
Other Current Assets | — | 26 | ||||||
Accrued Liabilities | (6,414 | ) | (1,937 | ) | ||||
Other Long-Term Liabilities | (205 | ) | (91 | ) | ||||
$ | (2,175 | ) | $ | (5,724 | ) |
Three months ended October 2, 2011 | ||||||||||||||
Recognized in Earnings | ||||||||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income 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 contract | $ | (209 | ) | Net Sales | $ | — | $ | — | ||||||
Foreign currency contracts - sell | 2,128 | Net Sales | (1,494 | ) | — | |||||||||
Foreign currency contracts - buy | — | Cost of Goods Sold | 250 | — | ||||||||||
Commodity contracts | (4,172 | ) | Cost of Goods Sold | (337 | ) | (30 | ) | |||||||
$ | (2,253 | ) | $ | (1,581 | ) | $ | (30 | ) |
Three months ended September 26, 2010 | ||||||||||||||
Recognized in Earnings | ||||||||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income 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) | |||||||||||
Foreign currency contracts - sell | $ | 3,701 | Net Sales | $ | 1,297 | $ | — | |||||||
Foreign currency contracts - buy | (5 | ) | Cost of Goods Sold | (331 | ) | — | ||||||||
Commodity contracts | (2,035 | ) | Cost of Goods Sold | (313 | ) | 44 | ||||||||
$ | 1,661 | $ | 653 | $ | 44 | |||||||||
Fair Value Measurement Using | ||||||||||||||||
October 2, 2011 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Derivatives | $ | 5,258 | $ | 5,258 | $ | — | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivatives | $ | 7,433 | $ | 472 | $ | 6,961 | $ | — | ||||||||
Fair Value Measurement Using | ||||||||||||||||
July 3, 2011 | Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | ||||||||||||||||
Derivatives | $ | 134 | $ | 108 | $ | 26 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Derivatives | $ | 5,858 | $ | 3,830 | $ | 2,028 | $ | — |
Three Months Ended | ||||||||
October 2, 2011 | September 26, 2010 | |||||||
Beginning Balance | $ | 45,995 | $ | 41,945 | ||||
Payments | (7,816 | ) | (7,737 | ) | ||||
Provision for Current Year Warranties | 6,674 | 6,979 | ||||||
Changes in Estimates | (126 | ) | 14 | |||||
Ending Balance | $ | 44,727 | $ | 41,201 |
Three Months Ended | |||||||||
October 2, 2011 | September 26, 2010 | ||||||||
NET SALES: | |||||||||
Engines | $ | 203,378 | $ | 205,048 | |||||
Power Products | 235,282 | 168,154 | |||||||
Inter-Segment Eliminations | (41,363 | ) | (39,086 | ) | |||||
Total * | $ | 397,297 | $ | 334,116 | |||||
* International sales included in net sales based on product shipment destination | $ | 147,803 | $ | 117,849 | |||||
GROSS PROFIT: | |||||||||
Engines | $ | 36,882 | $ | 42,464 | |||||
Power Products | 27,611 | 17,502 | |||||||
Inter-Segment Eliminations | 1,561 | 2,028 | |||||||
Total | $ | 66,054 | $ | 61,994 | |||||
INCOME (LOSS) FROM OPERATIONS: | |||||||||
Engines | $ | (5,477 | ) | $ | (5,533 | ) | |||
Power Products | 2,293 | (4,957 | ) | ||||||
Inter-Segment Eliminations | 1,561 | 2,028 | |||||||
Total | $ | (1,623 | ) | $ | (8,462 | ) |
October 2, 2011 | July 3, 2011 | |||||||
Revolving Credit Facility | $ | — | $ | — | ||||
6.875% Senior Notes | 225,000 | 225,000 | ||||||
$ | 225,000 | $ | 225,000 |
October 2, 2011 Carrying Amount | Maximum Guarantee | |||||||
6.875% Senior Notes | $ | 225,000 | $ | 225,000 | ||||
Revolving Credit Facility | $ | — | $ | 500,000 |
Briggs & Stratton Corporation | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Current Assets | $ | 493,613 | $ | 349,468 | $ | 242,124 | $ | (150,432 | ) | $ | 934,773 | |||||||||
Investment in Subsidiaries | 612,066 | — | — | (612,066 | ) | — | ||||||||||||||
Non-Current Assets | 445,944 | 225,495 | 46,814 | (34,734 | ) | 683,519 | ||||||||||||||
$ | 1,551,623 | $ | 574,963 | $ | 288,938 | $ | (797,232 | ) | $ | 1,618,292 | ||||||||||
Current Liabilities | $ | 284,254 | $ | 78,033 | $ | 92,618 | $ | (135,229 | ) | $ | 319,676 | |||||||||
Other Long-Term Obligations | 546,844 | 30,066 | 51,118 | (49,937 | ) | 578,091 | ||||||||||||||
Shareholders’ Investment | 720,525 | 466,864 | 145,202 | (612,066 | ) | 720,525 | ||||||||||||||
$ | 1,551,623 | $ | 574,963 | $ | 288,938 | $ | (797,232 | ) | $ | 1,618,292 |
Briggs & Stratton Corporation | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Current Assets | $ | 519,783 | $ | 343,266 | $ | 244,473 | $ | (138,858 | ) | $ | 968,664 | |||||||||
Investment in Subsidiaries | 617,553 | — | — | (617,553 | ) | — | ||||||||||||||
Non-Current Assets | 455,876 | 229,054 | 50,692 | (38,068 | ) | 697,554 | ||||||||||||||
$ | 1,593,212 | $ | 572,320 | $ | 295,165 | $ | (794,479 | ) | $ | 1,666,218 | ||||||||||
Current Liabilities | $ | 292,908 | $ | 88,888 | $ | 95,044 | $ | (132,457 | ) | $ | 344,383 | |||||||||
Other Long-Term Obligations | 562,361 | 20,988 | 45,012 | (44,469 | ) | 583,892 | ||||||||||||||
Shareholders’ Investment | 737,943 | 462,444 | 155,109 | (617,553 | ) | 737,943 | ||||||||||||||
$ | 1,593,212 | $ | 572,320 | $ | 295,165 | $ | (794,479 | ) | $ | 1,666,218 |
Briggs & Stratton Corporation | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 194,082 | $ | 210,567 | $ | 71,480 | $ | (78,832 | ) | $ | 397,297 | |||||||||
Cost of Goods Sold | 160,882 | 188,010 | 61,183 | (78,832 | ) | 331,243 | ||||||||||||||
Gross Profit | 33,200 | 22,557 | 10,297 | — | 66,054 | |||||||||||||||
Engineering, Selling, General and Administrative Expenses | 37,113 | 18,152 | 12,412 | — | 67,677 | |||||||||||||||
Equity in Loss from Subsidiaries | 2,187 | — | — | (2,187 | ) | — | ||||||||||||||
Income (Loss) from Operations | (6,100 | ) | 4,405 | (2,115 | ) | 2,187 | (1,623 | ) | ||||||||||||
Interest Expense | (4,303 | ) | (12 | ) | (23 | ) | — | (4,338 | ) | |||||||||||
Other Income, Net | 1,478 | 92 | 224 | — | 1,794 | |||||||||||||||
Income (Loss) before Income Taxes | (8,925 | ) | 4,485 | (1,914 | ) | 2,187 | (4,167 | ) | ||||||||||||
Provision (Credit) for Income Taxes | (3,705 | ) | 3,601 | 1,157 | — | 1,053 | ||||||||||||||
Net Income (Loss) | $ | (5,220 | ) | $ | 884 | $ | (3,071 | ) | $ | 2,187 | $ | (5,220 | ) |
Briggs & Stratton Corporation | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Sales | $ | 192,692 | $ | 150,472 | $ | 70,109 | $ | (79,157 | ) | $ | 334,116 | |||||||||
Cost of Goods Sold | 156,572 | 137,958 | 56,749 | (79,157 | ) | 272,122 | ||||||||||||||
Gross Profit | 36,120 | 12,514 | 13,360 | — | 61,994 | |||||||||||||||
Engineering, Selling, General and Administrative Expenses | 42,456 | 17,345 | 10,655 | — | 70,456 | |||||||||||||||
Equity in Loss from Subsidiaries | 802 | — | — | (802 | ) | — | ||||||||||||||
Income (Loss) from Operations | (7,138 | ) | (4,831 | ) | 2,705 | 802 | (8,462 | ) | ||||||||||||
Interest Expense | (5,104 | ) | (20 | ) | (33 | ) | — | (5,157 | ) | |||||||||||
Other Income (Expense), Net | 1,044 | 138 | 253 | — | 1,435 | |||||||||||||||
Income (Loss) before Income Taxes | (11,198 | ) | (4,713 | ) | 2,925 | 802 | (12,184 | ) | ||||||||||||
Provision (Credit) for Income Taxes | (3,084 | ) | (1,645 | ) | 659 | (4,070 | ) | |||||||||||||
Net Income (Loss) | $ | (8,114 | ) | $ | (3,068 | ) | $ | 2,266 | $ | 802 | $ | (8,114 | ) |
Briggs & Stratton Corporation | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Cash Used in Operating Activities | $ | (39,797 | ) | $ | (6,197 | ) | $ | (19,080 | ) | $ | 8,803 | $ | (56,271 | ) | ||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to Plant and Equipment | (9,044 | ) | (505 | ) | (681 | ) | — | (10,230 | ) | |||||||||||
Proceeds Received from Disposition of Plant and Equipment | 33 | 44 | 3 | — | 80 | |||||||||||||||
Cash Investment in Subsidiary | — | — | 213 | (213 | ) | — | ||||||||||||||
Net Cash Used in Investing Activities | (9,011 | ) | (461 | ) | (465 | ) | (213 | ) | (10,150 | ) | ||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt | (7,610 | ) | 7,592 | 8,821 | (8,803 | ) | — | |||||||||||||
Capital Contributions | — | — | (213 | ) | 213 | — | ||||||||||||||
Treasury Stock Purchases | (3,118 | ) | — | — | — | (3,118 | ) | |||||||||||||
Net Cash Provided by (Used in) Financing Activities | (10,728 | ) | 7,592 | 8,608 | (8,590 | ) | (3,118 | ) | ||||||||||||
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents | — | — | (1,856 | ) | — | (1,856 | ) | |||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (59,536 | ) | 934 | (12,793 | ) | — | (71,395 | ) | ||||||||||||
Cash and Cash Equivalents, Beginning | 158,672 | 1,372 | 49,595 | — | 209,639 | |||||||||||||||
Cash and Cash Equivalents, Ending | $ | 99,136 | $ | 2,306 | $ | 36,802 | $ | — | $ | 138,244 |
Briggs & Stratton Corporation | Guarantor Subsidiary | Non- Guarantor Subsidiaries | Eliminations | Consolidated | ||||||||||||||||
Net Cash Provided by (Used in) Operating Activities | $ | (44,152 | ) | $ | (20,984 | ) | $ | 18,662 | $ | (9,013 | ) | $ | (55,487 | ) | ||||||
Cash Flows from Investing Activities: | ||||||||||||||||||||
Additions to Plant and Equipment | (7,078 | ) | (2,049 | ) | (264 | ) | — | (9,391 | ) | |||||||||||
Proceeds Received from Disposition of Plant and Equipment | 8 | 25 | — | — | 33 | |||||||||||||||
Cash Investment in Subsidiary | (92 | ) | — | — | 92 | — | ||||||||||||||
Net Cash Used in Investing Activities | (7,162 | ) | (2,024 | ) | (264 | ) | 92 | (9,358 | ) | |||||||||||
Cash Flows from Financing Activities: | ||||||||||||||||||||
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt | (36,218 | ) | 23,141 | 1,564 | 9,013 | (2,500 | ) | |||||||||||||
Capital Contributions | — | — | 92 | (92 | ) | — | ||||||||||||||
Net Cash Provided by (Used in) Financing Activities | (36,218 | ) | 23,141 | 1,656 | 8,921 | (2,500 | ) | |||||||||||||
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents | — | — | (1,516 | ) | — | (1,516 | ) | |||||||||||||
Net Increase (Decrease) in Cash and Cash Equivalents | (87,532 | ) | 133 | 18,538 | — | (68,861 | ) | |||||||||||||
Cash and Cash Equivalents, Beginning | 100,880 | 3,675 | 11,999 | — | 116,554 | |||||||||||||||
Cash and Cash Equivalents, Ending | $ | 13,348 | $ | 3,808 | $ | 30,537 | $ | — | $ | 47,693 |
2012 Fiscal Month | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of a Publicly Announced Program (1) | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (1) | ||||||||||
July 4, 2011 to July 31, 2011 | — | $ | — | — | $ | — | ||||||||
August 1, 2011 to August 28, 2011 | 55,000 | 14.11 | 55,000 | 49,223,950 | ||||||||||
August 29, 2011 to October 2, 2011 | 164,200 | 14.27 | 164,200 | 46,880,816 | ||||||||||
Total First Quarter | 219,200 | $ | 14.23 | 219,200 | 46,880,816 |
(1) | On August 10, 2011, the Board of Directors of the Company authorized up to $50 million in funds for use in a common share repurchase program with an expiration of June 30, 2013. |
Exhibit Number | Description | |
4.1 | Multicurrency Credit Agreement, dated as of October 13, 2011, among Briggs & Stratton Corporation, Briggs & Stratton AG, the financial institutions from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K dated October 13, 2011 and incorporated herein by reference) | |
31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 (Filed herewith) | |
31.2 | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 (Filed herewith) | |
32.1 | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes- Oxley Act of 2002 (Furnished herewith) | |
32.2 | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes- Oxley Act of 2002 (Furnished herewith) | |
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended October 2, 2011 formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Condensed Balance Sheets, (ii) the Consolidated Condensed Statements of Operations, (iii) the Consolidated Condensed Statements of Cash Flows, and (iv) related Notes to Consolidated Financial Statements |
BRIGGS & STRATTON CORPORATION | |||
(Registrant) | |||
Date: November 10, 2011 | /s/ David J. Rodgers | ||
David J. Rodgers | |||
Senior Vice President and Chief Financial Officer and Duly Authorized Officer |
Exhibit Number | Description | |
4.1 | Multicurrency Credit Agreement, dated as of October 13, 2011, among Briggs & Stratton Corporation, Briggs & Stratton AG, the financial institutions from time to time party thereto and JPMorgan Chase Bank, N.A., as administrative agent (filed as Exhibit 4.1 to the Company's Current Report on Form 8-K dated October 13, 2011 and incorporated herein by reference) | |
31.1 | Certification of Principal Executive Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 (Filed herewith) | |
31.2 | Certification of Principal Financial Officer pursuant to Section 302 of the Sarbanes- Oxley Act of 2002 (Filed herewith) | |
32.1 | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes- Oxley Act of 2002 (Furnished herewith) | |
32.2 | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes- Oxley Act of 2002 (Furnished herewith) | |
101 | The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended October 2, 2011 formatted in Extensible Business Reporting Language (XBRL): (i) the Consolidated Condensed Balance Sheets, (ii) the Consolidated Condensed Statements of Operations, (iii) the Consolidated Condensed Statements of Cash Flows, and (iv) related Notes to Consolidated Financial Statements |
1. | I have reviewed this quarterly report on Form 10-Q of Briggs & Stratton Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a- 15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 10, 2011 | /s/ Todd J. Teske | |
Todd J. Teske | ||
Chief Executive Officer |
1. | I have reviewed this quarterly report on Form 10-Q of Briggs & Stratton Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
4. | The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: November 10, 2011 | /s/ David J. Rodgers | |
David J. Rodgers | ||
Chief Financial Officer |
/s/ Todd J. Teske |
Todd J. Teske |
Chief Executive Officer |
November 10, 2011 |
/s/ David J. Rodgers |
David J. Rodgers |
Chief Financial Officer |
November 10, 2011 |
H`<7-UM3N)D\CNXW
M3PVMG
M`^2YD<&L8UI<]SB:!K6MJ2XG```DG`*&\=>=*X(%AZ]D,N7XZ&, )@42D]
Fair Value Measurements (Details) (Fair Value, Measurements, Recurring [Member], USD $) In Thousands | Oct. 02, 2011 | Jul. 03, 2011 |
---|---|---|
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Assets, Derivatives | $ 5,258 | $ 134 |
Liabilities, Derivatives | 7,433 | 5,858 |
Fair Value Measurements Using Level 1 [Member] | ||
Assets, Derivatives | 5,258 | 108 |
Liabilities, Derivatives | 472 | 3,830 |
Fair Value Measurements Using Level 2 [Member] | ||
Assets, Derivatives | 0 | 26 |
Liabilities, Derivatives | 6,961 | 2,028 |
Fair Value, Inputs, Level 3 [Member] | ||
Assets, Derivatives | 0 | 0 |
Liabilities, Derivatives | $ 0 | $ 0 |
Consolidated Condensed Balance Sheets (Parenthetical) (USD $) In Thousands, except Per Share data | Oct. 02, 2011 | Jul. 03, 2011 |
---|---|---|
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 | 7,467 | 7,793 |
Consolidated Condensed Statements Of Operations (USD $) In Thousands, except Per Share data | 3 Months Ended | |
---|---|---|
Oct. 02, 2011 | Sep. 26, 2010 | |
Income Statement [Abstract] | ||
NET SALES | $ 397,297 | $ 334,116 |
COST OF GOODS SOLD | 331,243 | 272,122 |
Gross Profit | 66,054 | 61,994 |
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 67,677 | 70,456 |
Income (Loss) from Operations | (1,623) | (8,462) |
INTEREST EXPENSE | (4,338) | (5,157) |
OTHER INCOME, Net | 1,794 | 1,435 |
Income (Loss) Before Provision for Income Taxes | (4,167) | (12,184) |
PROVISION (CREDIT) FOR INCOME TAXES | 1,053 | (4,070) |
NET INCOME (LOSS) | $ (5,220) | $ (8,114) |
EARNINGS (LOSS) PER SHARE DATA | ||
Weighted Average Shares Outstanding | 49,818 | 49,665 |
Basic Earnings (Loss) Per Share | $ (0.10) | $ (0.16) |
Diluted Average Shares Outstanding | 49,818 | 49,665 |
Diluted Earnings (Loss) Per Share | $ (0.10) | $ (0.16) |
DIVIDENDS PER SHARE | $ 0.11 | $ 0.11 |
Commitments And Contingencies (Details) (USD $) In Millions | 3 Months Ended | |
---|---|---|
Mar. 28, 2010 | Feb. 16, 2011 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Aggregate amount agreed to be paid by settling defendants | $ 51.0 | |
Litigation Settlement Charge | $ 30.6 |
Earnings (Loss) Per Share (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share |
|
Document And Entity Information | 3 Months Ended | |
---|---|---|
Oct. 02, 2011 | Nov. 04, 2011 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 02, 2011 | |
Document Fiscal Year Focus | 2012 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | BRIGGS & STRATTON CORP | |
Entity Central Index Key | 0000014195 | |
Current Fiscal Year End Date | --07-01 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 50,063,870 |
Derivative Instruments and Hedging Activities Balance Sheet Location (Details) (USD $) In Thousands | Oct. 02, 2011 | Jul. 03, 2011 |
---|---|---|
Derivatives, Fair Value [Line Items] | ||
Derivative Assets (Liabilities), at Fair Value, Net | $ (2,175) | $ (5,724) |
Other Long-Term Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | (342) | 0 |
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net | 0 | (280) |
Price Risk Cash Flow Hedge Derivative, at Fair Value, Net | (205) | (91) |
Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net | 5,258 | 108 |
Price Risk Cash Flow Hedge Derivative, at Fair Value, Net | 0 | 26 |
Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign Currency Cash Flow Hedge Derivative at Fair Value, Net | (472) | (3,550) |
Price Risk Cash Flow Hedge Derivative, at Fair Value, Net | $ (6,414) | $ (1,937) |
Investments (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Results Of Operations Of Unconsolidated Affiliated Companies | Unaudited results of operations of unconsolidated affiliated companies for the three months ended October 2, 2011 and September 26, 2010:
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Balance Sheets Of Unconsolidated Affiliated Companies | Unaudited balance sheets of unconsolidated affiliated companies as of October 2, 2011 and July 3, 2011:
|
Derivative Instruments and Hedging Activities Notional Amounts (Details) (USD $) In Thousands | Oct. 02, 2011 | Jul. 03, 2011 |
---|---|---|
Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | $ 30,000 | $ 0 |
Australian Dollar, Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | 32,835 | 34,295 |
Canadian Dollar, Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | 6,500 | 10,700 |
Euro, Sell [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | 54,500 | 41,500 |
Natural Gas [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | 9,953 | 11,187 |
Aluminum [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | 19 | 8 |
Steel [Member] | ||
Derivative [Line Items] | ||
Notional Amount of Derivatives | $ 3 | $ 1 |
"+ text.join( "
\n" ) +"
" + text[p] + "
\n"; } } }else{ formatted = '' + raw + '
'; } html = ''+ "\n"+''+ "\n"+''+ "\n"+' formatted: '+ ( this.Default == 'raw' ? 'as Filed' : 'with Text Wrapped' ) +''+ "\n"+' | '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
'+ "\n"+' | '+ "\n"+' '+ "\n"+'
Pension and Postretirement Benefits | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
The Company expects to make benefit payments of approximately $2.7 million attributable to its non-qualified pension plans during fiscal 2012. During the first quarter of fiscal 2012, the Company made payments of approximately $0.9 million for its non-qualified pension plans. The Company anticipates making benefit payments of approximately $24.1 million for its other postretirement benefit plans during fiscal 2012. During the first quarter of fiscal 2012, the Company made payments of $4.7 million for its other postretirement benefit plans. The Company is required to make minimum contributions to the qualified pension plan of approximately $30.2 million during fiscal 2012. The Company may be required to make further contributions in future years depending upon the actual return on plan assets and the funded status of the plan in future periods. |
Pension and Postretirement Benefits (Tables) | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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):
|
Comprehensive Loss Comprehensive Loss (Details) (USD $) In Thousands | 3 Months Ended | |
---|---|---|
Oct. 02, 2011 | Sep. 26, 2010 | |
Net Loss | $ (5,220) | $ (8,114) |
Cumulative Translation Adjustments | (10,013) | 9,224 |
Unrealized Loss on Derivative Instruments, Net of tax | (10) | (6,838) |
Unrealized Pension & Postretirement Obligation, Net of tax | 4,076 | 4,472 |
Total Comprehensive Loss | $ (11,167) | $ (1,256) |
Comprehensive Loss Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Loss, net of tax, are as follows (in thousands):
|
Income Taxes (Notes) | 3 Months Ended |
---|---|
Oct. 02, 2011 | |
Income Tax Expense (Benefit) [Abstract] | |
Income Taxes | Income Taxes As of July 3, 2011, the Company had $12.0 million of gross unrecognized tax benefits. Of this amount, $9.9 million represents the portion that, if recognized, would impact the effective tax rate. As of July 3, 2011, the Company had $5.7 million accrued for the payment of interest and penalties. For the three months ended October 2, 2011, the Company recorded an increase to the tax reserve of $0.1 million. There is a reasonable possibility that approximately $4.7 million of the current remaining unrecognized tax benefits may be recognized by the end of fiscal year 2012 as a result of a lapse in the statute of limitations in certain foreign jurisdictions. The Company's annual effective tax rate reflects its best estimate of financial operating results and the estimated impact of foreign currency exchange rates. Changes in the mix of pretax income from all tax jurisdictions in which the Company operates will have an impact on the Company's effective tax rate. The fiscal 2012 estimated annual tax rate is based on the latest tax law changes. 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 no longer subject to U.S. federal income tax examinations before fiscal 2009 and is currently under audit by various state and foreign jurisdictions. With respect to the Company's major foreign jurisdictions, it is no longer subject to tax examinations before fiscal 2001. |
Assets Held For Sale | 3 Months Ended |
---|---|
Oct. 02, 2011 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Assets Held For Sale | Assets Held for Sale On July 1, 2009 the Company announced a plan to close its Jefferson and Watertown, WI manufacturing facilities in fiscal 2010. At October 2, 2011 and at July 3, 2011, the Company had $4.0 million included in Assets Held for Sale in its Consolidated Balance Sheets consisting of certain assets related to the Jefferson, WI production facility. Prior to the closure, the facility manufactured all portable generator and pressure washer products marketed and sold by the Company within its Power Products Segment. |
Earnings (Loss) Per Share Earnings (Loss) Per Share Information (Details) (USD $) In Thousands, except Per Share data | 3 Months Ended | |
---|---|---|
Oct. 02, 2011 | Sep. 26, 2010 | |
Net Loss | $ (5,220) | $ (8,114) |
Less: Dividends Attributable To Unvested Shares | (80) | (70) |
Net Loss Available to Common Shareholders | $ (5,300) | $ (8,184) |
Weighted Average Shares Outstanding | 49,818 | 49,665 |
Diluted Average Shares Outstanding | 49,818 | 49,665 |
Basic Earnings (Loss) Per Share | $ (0.10) | $ (0.16) |
Diluted Earnings (Loss) Per Share | $ (0.10) | $ (0.16) |
Derivative Instruments and Hedging Activities | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 on the Consolidated Balance Sheets as assets or liabilities, measured at fair value. The effective portion of gains or losses on the derivative designated as cash flow hedges are reported as a component of Accumulated Other Comprehensive 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 entered into an interest rate swap to manage a portion of its interest rate risk from financing certain dealer and distributor inventories through a third party financing source. The swap is designated as a cash flow hedge and is used to effectively fix the interest payments to a third party financing source, exclusive of lender spreads, at 1.6% for a notional principal amount of $30.0 million through July 2017. The Company periodically 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, Euros, Australian Dollars or Canadian Dollars. 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, aluminum and steel. These contracts generally do not have a maturity of more than twenty-four months. The Company has considered the counterparty credit risk related to all its foreign currency and commodity derivative contracts and does not deem any counterparty credit risk material at this time. The notional amount of derivative contracts outstanding at the end of the period is indicative of the level of the Company’s derivative activity during the period. As of October 2, 2011 and July 3, 2011, the Company had the following outstanding derivative contracts (in thousands):
The location and fair value of derivative instruments reported in the Consolidated Condensed Balance Sheets are as follows (in thousands):
The effect of derivatives designated as hedging instruments on the Consolidated Condensed Statements of Operations is as follows:
During the next twelve months, the amount of the October 2, 2011 Accumulated Other Comprehensive Loss balance that is expected to be reclassified into earnings is expected to be $1.8 million. |
Segment Information | 3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2011 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information The Company operates two reportable business segments that are managed separately based on fundamental differences in their operations. Summarized segment data is as follows (in thousands):
|
Fair Value Measurements (Notes) | 3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Oct. 02, 2011 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2011 and July 3, 2011 (in thousands):
|
D1.;L[8W8!2/SWAK/KPU^2,IV=/BY/KY+D9G[%
M95)^F9Q]=V"%2/6`_24E[L9G9].#BZ=FFV3/RRK)>W-IOC>D_T8F9R,IY=GD
MZ/S4,EMU(@R+SO[YY[N+WG4Z3$[G-P`+GIR\J0=X74X.?4HO3R8#OKXNTLM?
M7X$U3V>V^N5[V7]U=[2ZO4E_?55FPYL!B'DV'6?*A=XHK]+OU4G6__65A6NC
MC^1_/MOIK>8G`:^RZO;NM_FO6;_^_3)+BY.)..D#76:4,&__\]5O4?T?HDC&
M;\Z6+Y[=ZFS%O>[N=),6V:B_?']`I:@LD/TW`$R>(GR*Q6R4^V-+%Z5Y_^X2
M%)U&9.&2V9&'XBS<>O;3'62;4$0?41=1K"%A3T=1GF*V/Q3_NO/BOQ3HU,\&
MXRK[FEZDO7&155E:NN^]P;B?]GTQ&IK1\&9<)54VRC] XZ+,#^S_][1.+V6D2S[$N<`1*,H$@U]@H+'Q
MO!J+$AF2XP&2D,3^-@-/3=Q$9,!'0Q[Y\XQ\.B-!V[N/PTG&12DOAG$%()'/
M+T.CO\`O`\F@#*_>YN2C.">_=_()E=`6V'P'6".D.B)I.%6^(A]*Q+D1?)KS
M,B`^AGA_%&=$.Z?\=)*<4BQIO^XQY`DP!%0Q$L,24HE;HAFHBXP.EFP&'BM0
MP0`8"A*33W4ZG:D]8U%'/HFZSF0L#DH__W+R6AE?XS6EA;=Z>)]I*-^XV.-2
MZ[F]G4I$0$V#\#.=@'<%&`/QD>&MO',*)HN^M4#;KN5.;*US_A,B7>!%)A#@
M`Z^*`1DB\N!N;.0WL'F4`QL04$@#&LA^94,\'A5<.RISR\<"H6G50.]E>BU`
MPSM8&D@#FU4*7J"]_`Y\@7F`0Y:`0Y1%8<0+,"H-B%S&&.9/(&RHTV'6`@N9
M3=&Z=;H(/@"(>-I-@W8BE9B&]"WTW1AYTTM#_\+U&WC<`N(EV`!$GTB)@OL?
MBSR!5%-!ESN[!+((LUIM64:;M*IFB$\@D1SP$A`+'A!/)9D2X9 [;;?;>0M]'U+=L"X7,8XP+C[54L&RTA@JFHXGP
M1%NQ^8S/MBUAFC[!'`6!"'P1.`LJD-4S?`INE2;#LQSCS<0@V$74(\0+'19B
MB'MMTFINQNA*)AE&V#Y&6NPQ2-F\_X]XX-N<$>X'CB\8IA!,@/GT3)L)"ZWL
M.A#+W.WP^U71XJGJ2026R2T?%+_CV7[H($%)306+.X39:XP$89H,O?B55L`)
M\AW;$80C\#`]$XFY1'!_=;O[B`FQV:LQ0XI(Z#H..)C"E>EQX1PDUU_9A)`'
M!ON&:9X4_N%2/@\/*RY1W!)/9"A8GE]'1>Q%93SY&'U74Y@GD&_TMA=IE#@$
M674)LY#I^CQT7>++Y"&78`)6S#GYZ=[]C.4\^<_)35P:O\6WQJ?\)MI 8W1
M(#7TXSV_;0`R6=WOL*&!:M/`,'U.`H]`V#/-P'=$.@2&FMSU&T,#8G+U^`!P
MO\EG`.$Q&2"!#F)O6P%S3 L*I/?XI/\&LD-;T`6$K8M^Y&O;HU
MX2XL^0Z;1J.M+IO<:R+9[Q2L("(0$8AH*1$UZ^K2VH"(0$1P/&D2Q;#OJ%KG
M\%`%#P=9766\K8L>R'(X_`.->)LITS"Z365K*E@L4!CX"K<83*"1(/7"I,HS
MT3L41;;)\`/MG1QE&U)03BBGKI$,4$XH9SEN)H0X8&VPY;._NB!I ZA@PU$!N.CEY'#U(JD
M7A@#-[3!%UA2QE^$-A[*%\Q%+7EP*E@4+1>*^X5"E)"FH1`D^"X4,BB'H_?#
M23&^@?IPQI)7H'SQ:7(X@$M-*]PW\"Y=8@-$%JP-!DOOE<(X>.\I@/-!"$I@
M\FS,E(3P66*TC/'J9O<'@O_)=@N$8PCY6`324M09KC"8Y@*(M[P1U^X."%GZ
M^7`\GN:#;O%X;.+&(&E(5HB7E*"HL`G*$@ZS&/P9K2/R4=C.@2]M]>[=BC+!
M&NMY8]NLPDL9P#F((I$S1!BC@3-P$\N1)"H&Y(&Q!G7
M,/&30#GR3D>,Z$)4(P)J*).SAX@*2=Y),;JPPQ'DO$`!M_KR6B$M#*$.AF-B
MO%`0P$5,J#7>.XHE1[H1NC7&NRG`]A*"DZ[/O23R@49L-:23D'!P*?U,0H:\
MQ0TU/D#"\FQ0GI9=8&UWG@_.BL/!OP:CHCN$K_^OZ)WD?UJ@U=-R`E[WL +?O5M'(Z'&5GLUU2H-S1965+109YXN5P7(S7:/!R
M-/Q<]D"#U=GY'5>?G.>3["*?3$&UV;#A7&)V?8`[J51VD?]97DPOLOQS7O;S
M3[-+3&%X1C60];97FN),,:`")
MJZ&HZJ(Z5?5ZA&:2`P
M$8(SQQ'"11;&+3M0T!6:'7;>YZ"^ZR#7#/P0A\Q%?N"[K(4T])SP/J1TMW/-
M(X?U*)U>&S%AA'EF>
M=9<\S=:8INV//"6]_S:W__=3#8$SEOT^C40>EVGA?DVK[NH?1?[K+"[CO"[*
M3[-AE28IW".J=_+LHP<.9#=,+6)!I!M4CTS/-1BP1MU0UW4>\?`NCQ9C?(\C
M\"@6/\0E7$(-C?/;#7R9OFTQR@V?,X-ZCADPA[=\6::V,G;@T#A_JK'SBUPF
MRK*2&V;I),WEQTV#9]J>;]O,-OU(LQW/BD(G;)G4=<]8.>W=YEQ_*B9WT4[0
MQD`+F:GKKF=[U`PLQU8,&KKI&RL`P3BGC.X;(`Z@GC1T0Z"?FX'A!0`P7#-A
MY!CS;1YJGL%7,MT][CR#V*L5W54PM]:H!AN::N\2#P@$U3,LF9Z[K^&O5T
MF&D_$9.[J"=U-"=@5'>`1^`)O(*OJU&T0]]U5QADNNV8_(D8W-5!^`9S(FH:
MMNY:-N6:[RH>N>;Z%@_N\FA:MN%LSV(@AG605J.LJ&;E/,RX-Y+HZ`J89QE&
MP`'_`M]QK(AIH0EP",:47J/Z'8)X
M5$
VGEW2=EL_SG*EG$1GLZ"Z])HXL"ULK_4I8V)JH-='G
M)]+M<@"`YNU%//CSLLAGV=#,->;%Z3>#09*,1@A?Y]J$>E6:'E-/]*7X
MH;3D72,-E@4L"U@66,L"KLLM"U@6L"SP%;,`1M1R@.4`RP%?,P<0UW+`8\=1
M#F@L;Y_`MJ=1UR,LYF"-LR+_(QF8G:_S=?W.^PMX]>8#KNPX:;_CI.0IQTFW
M6&JP![YBQY3WM]3P+EP.Q>7V'<]8[[+>M>Q=!!'K7=:[K'?MP;N.7=G;$F+K
M7-:YK',M.I>DGG6NO>6XKRN5-6MDZ\3U0U+-BJQ.9L=QYC0GW-G1PJ=GHA='
M.-]C[Y@0UK>MW+;["QHZ_<%ZC/68AWF,[&W>V7J,]9A7[C$WE2A);VG3H3C`
MOM-#ZQ?6+[Y&O["SEW<`JR8YJ/Y7/3GIY".[/?(I&$;:%`WY;GV;;C
M!E@`6#`H+/!<%^J!7W6JS%0=[,N+]#"^9ZU*X9QP2VL[3)W/:,`+[,(@:#O\"+!
IB'7P]OYLF(1!Z,<'8X
MNWS_NA3\HPY^KB=T(=HXZHR=G%H+Z>[3B\))R(L5"MP'[K/]`I<7X_73%4%]
M])39OA+ES$_&Y*^$!23DY&K*\H<'?D=.1FEX'Z82-5XCFVI';^GKK#=_C$IT
MZ%24"[%#I5[)O4Y5)*9W::