10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 26, 2010

OR

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission file number 1-1370

BRIGGS & STRATTON CORPORATION

(Exact name of registrant as specified in its charter)

Wisconsin	39-0182330
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

12301 West Wirth Street, Wauwatosa, Wisconsin 53222

(Address of Principal Executive Offices) (Zip Code)

414/259-5333

(Registrant’s telephone number, including area code)

Yes  x    No  ¨    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.

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer”, “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer	x	Accelerated filer	¨
Non-accelerated filer	¨  (Do not check if a smaller reporting company)	Smaller reporting company	¨

Yes  ¨    No   x    Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at January 28, 2011
COMMON STOCK, par value $0.01 per share	50,334,811 Shares

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

INDEX

		Page No.
PART I – FINANCIAL INFORMATION
Item 1.	Financial Statements
	Consolidated Condensed Balance Sheets – December 26, 2010 and June 27, 2010		3
	Consolidated Condensed Statements of Operations – Three and Six Months Ended December  26, 2010 and December 27, 2009		5
	Consolidated Condensed Statements of Cash Flows – Six Months Ended December  26, 2010 and December 27, 2009		6
	Notes to Consolidated Condensed Financial Statements		7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations		21
Item 3.	Quantitative and Qualitative Disclosures About Market Risk		25
Item 4.	Controls and Procedures		25
PART II – OTHER INFORMATION
Item 1.	Legal Proceedings		25
Item 1A.	Risk Factors		25
Item 6.	Exhibits		25
Signatures			27
Exhibit Index			28

2

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

PART I - FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

CONSOLIDATED CONDENSED BALANCE SHEETS

(In thousands)

ASSETS

	(Unaudited) December 26, 2010		June 27, 2010
CURRENT ASSETS:
Cash and Cash Equivalents	$	31,481	$	116,554
Accounts Receivable, Net		246,051		286,426
Inventories -
Finished Products and Parts		416,652		278,922
Work in Process		130,641		114,483
Raw Materials		9,180		6,941
Total Inventories		556,473		400,346
Deferred Income Tax Asset		52,299		41,138
Assets Held for Sale		4,000		4,000
Prepaid Expenses and Other Current Assets		33,383		57,179
Total Current Assets		923,687		905,643
OTHER ASSETS:
Goodwill		254,186		252,975
Investments		16,724		19,706
Deferred Loan Costs, Net		5,386		525
Other Intangible Assets, Net		89,964		90,345
Long-Term Deferred Income Tax Asset		64,819		72,492
Other Long-Term Assets, Net		9,385		10,608
Total Other Assets		440,464		446,651
PLANT AND EQUIPMENT:
Cost		995,949		979,898
Less - Accumulated Depreciation		665,705		642,135
Total Plant and Equipment, Net		330,244		337,763
TOTAL ASSETS	$	1,694,395	$	1,690,057

The accompanying notes are an integral part of these statements.

3

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED BALANCE SHEETS (Continued)

(In thousands, except per share data)

LIABILITIES & SHAREHOLDERS’ INVESTMENT

	(Unaudited) December 26, 2010			June 27, 2010
CURRENT LIABILITIES:
Accounts Payable	$	157,408		$	171,495
Short-Term Debt		3,000			3,000
Current Maturity on Long-Term Debt		—			203,460
Accrued Liabilities		161,745			185,556
Total Current Liabilities		322,153			563,511
OTHER LIABILITIES:
Accrued Pension Cost		270,092			274,737
Accrued Employee Benefits		23,117			23,006
Accrued Postretirement Health Care Obligation		126,586			135,978
Other Long-Term Liabilities		25,250			42,248
Long-Term Debt		280,000			—
Total Other Liabilities		725,045			475,969
SHAREHOLDERS’ INVESTMENT:
Common Stock -
Authorized 120,000 shares, $.01 par value, issued 57,854 shares		579			579
Additional Paid-In Capital		79,590			80,353
Retained Earnings		1,070,360			1,090,843
Accumulated Other Comprehensive Loss		(308,097	)		(318,709	)
Treasury Stock at cost, 7,522 and 7,793 shares, respectively		(195,235	)		(202,489	)
Total Shareholders’ Investment		647,197			650,577
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT	$	1,694,395		$	1,690,057

The accompanying notes are an integral part of these statements.

4

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS

(In thousands, except per share data)

(Unaudited)

	Three Months Ended						Six Months Ended
	December 26, 2010			December 27, 2009			December 26, 2010			December 27, 2009
NET SALES	$	450,324		$	393,049		$	784,440		$	717,656
COST OF GOODS SOLD		372,003			322,399			644,125			594,616
Gross Profit		78,321			70,650			140,315			123,040
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES		74,559			60,339			145,015			121,132
Income (Loss) from Operations		3,762			10,311			(4,700	)		1,908
INTEREST EXPENSE		(9,008	)		(7,179	)		(14,165	)		(13,655	)
OTHER INCOME, Net		1,637			1,137			3,073			2,427
Income (Loss) Before Income Taxes		(3,609	)		4,269			(15,792	)		(9,320	)
PROVISION (CREDIT) FOR INCOME TAXES		(2,357	)		1,244			(6,427	)		(3,658	)
NET INCOME (LOSS)	$	(1,252	)	$	3,025		$	(9,365	)	$	(5,662	)
EARNINGS (LOSS) PER SHARE DATA
Average Shares Outstanding		49,702			49,595			49,666			49,594
Basic Earnings (Loss) Per Share	$	(0.03	)	$	0.06		$	(0.19	)	$	(0.12	)
Diluted Average Shares Outstanding		49,702			50,040			49,666			49,594
Diluted Earnings (Loss) Per Share	$	(0.03	)	$	0.06		$	(0.19	)	$	(0.12	)
CASH DIVIDENDS PER SHARE	$	0.11		$	0.11		$	0.22		$	0.22

The accompanying notes are an integral part of these statements.

5

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)

(Unaudited)

	Six Months Ended
	December 26, 2010			December 27, 2009
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Loss	$	(9,365	)	$	(5,662	)
Adjustments to reconcile net loss to net cash used by operating activities:
Depreciation and Amortization		31,080			32,265
Stock Compensation Expense		8,003			5,359
Loss on Disposition of Plant and Equipment		690			1,013
Benefit for Deferred Income Taxes		(3,909	)		(6,216	)
Earnings of Unconsolidated Affiliates		(2,331	)		(1,460	)
Dividends Received from Unconsolidated Affiliates		6,880			4,005
Change in Operating Assets and Liabilities:
Decrease in Accounts Receivable		42,214			44,779
Increase in Inventories		(154,005	)		(118,127	)
Decrease in Other Current Assets		11,897			10,271
(Decrease) Increase in Accounts Payable and Accrued Liabilities		(54,860	)		10,296
Other, Net		(4,944	)		(1,802	)
Net Cash Used by Operating Activities		(128,650	)		(25,279	)
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to Plant and Equipment		(21,341	)		(15,592	)
Proceeds Received on Sale of Plant and Equipment		52			172
Other, Net		—			(144	)
Net Cash Used by Investing Activities		(21,289	)		(15,564	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net Borrowings on Revolver		55,000			69,415
Proceeds from Long-Term Debt Financing		225,000			—
Deferred Loan Costs		(4,994	)		—
Repayments on Long-Term Debt		(203,698	)		(16,483	)
Dividends Paid		(5,537	)		(5,500	)
Net Cash Provided by Financing Activities		65,771			47,432
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS		(905	)		328
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		(85,073	)		6,917
CASH AND CASH EQUIVALENTS, Beginning		116,554			15,992
CASH AND CASH EQUIVALENTS, Ending	$	31,481		$	22,909

The accompanying notes are an integral part of these statements.

6

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS

(Unaudited)

1. General Information

The accompanying unaudited consolidated condensed financial statements have been prepared in accordance with the rules and regulations of the Securities and Exchange Commission and therefore do not include all information and footnotes necessary for a fair presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. The year-end condensed balance sheet data was derived from audited financial statements, but also does not include all disclosures required by accounting principles generally accepted in the United States. However, in the opinion of Briggs & Stratton Corporation (the Company), adequate disclosures have been presented to prevent the information from being misleading, and all adjustments necessary to present fair statements of the results of operations and financial position have been included. All of these adjustments are of a normal recurring nature. These consolidated condensed financial statements should be read in conjunction with the financial statements and the notes thereto which were included in our latest Annual Report on Form 10-K.

2. New Accounting Pronouncements

In June 2009, the FASB issued new guidance that changes the approach to determining the primary beneficiary of a variable interest entity (VIE) and requires companies to more frequently assess whether they must consolidate VIEs. This standard was effective for the Company’s first quarter of fiscal 2011. As of June 28, 2010 and subsequently, the Company evaluated all entities that fall within the scope of this new guidance, including the Company’s investments in joint ventures, to determine whether consolidation of these entities was required. As a result of this evaluation, the Company has determined that it is not required to consolidate any of its joint ventures.

3. 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 December 26, 2010 and at June 27, 2010, 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.

4. Earnings (Loss) Per Share

The calculation of earnings per share for common stock below excludes the income attributable to the unvested share units from the numerator and excludes the dilutive impact of those units from the denominator.

Shares outstanding used to compute diluted earnings per share for the three months ended December 26, 2010 excluded approximately 385,000 shares of restricted and deferred stock and outstanding options to purchase approximately 4,900,000 shares of common stock, as their inclusion would have been anti-dilutive. Shares outstanding used to compute diluted earnings per share for the six months ended December 26, 2010 excluded approximately 362,000 shares of restricted and deferred stock and outstanding options to purchase approximately 4,700,000 shares of common stock, as their inclusion would have been anti-dilutive. Shares outstanding used to compute diluted earnings per share for the three months ended December 27, 2009 excluded outstanding options to purchase approximately 4,600,000 shares of common stock because the options’ exercise price was greater than the average market price of the common shares. Shares outstanding used to compute diluted earnings per share for the six months ended December 27, 2009 excluded approximately 346,000 shares for restricted and deferred stock and outstanding options to purchase approximately 4,400,000 shares of common stock as their inclusion would have been anti-dilutive.

7

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Information on earnings (loss) per share is as follows (in thousands):

	Three Months Ended						Six Months Ended
	December 26, 2010			December 27, 2009			December 26, 2010			December 27, 2009
Net Income (Loss)	$	(1,252	)	$	3,025		$	(9,365	)	$	(5,662	)
Less: Dividends Attributable to Unvested Shares		(112	)		(74	)		(182	)		(149	)
Net Income (Loss) available to Common Shareholders	$	(1,364	)	$	2,951		$	(9,547	)	$	(5,811	)
Average Shares of Common Stock Outstanding		49,702			49,595			49,666			49,594
Diluted Average Shares of Common Stock Outstanding		49,702			50,040			49,666			49,594
Basic Earnings (Loss) Per Share	$	(0.03	)	$	0.06		$	(0.19	)	$	(0.12	)
Diluted Earnings (Loss) Per Share	$	(0.03	)	$	0.06		$	(0.19	)	$	(0.12	)

5. Comprehensive Income

Comprehensive income is a more inclusive financial reporting method that includes certain financial information that has not been recognized in the calculation of net income. Comprehensive income is defined as net income and other changes in shareholders’ investment from transactions and events other than with shareholders. Total comprehensive income is as follows (in thousands):

	Three Months Ended						Six Months Ended
	December 26, 2010			December 27, 2009			December 26, 2010			December 27, 2009
Net Income (Loss)	$	(1,252	)	$	3,025		$	(9,365	)	$	(5,662	)
Cumulative Translation Adjustments		1,283			(1,184	)		10,508			4,975
Unrealized Gain (Loss) on Derivative Instruments, net of tax		(1,474	)		3,430			(8,312	)		3,015
Unrecognized Pension & Postretirement Obligation, net of tax		3,944			2,464			8,416			4,928
Total Comprehensive Income	$	2,501		$	7,735		$	1,247		$	7,256

The components of Accumulated Other Comprehensive Loss, net of tax, are as follows (in thousands):

	December 26, 2010			June 27, 2010
Cumulative Translation Adjustments	$	14,480		$	3,972
Unrealized Loss on Derivative Instruments		187			8,499
Unrecognized Pension & Postretirement Obligation		(322,764	)		(331,180	)
Accumulated Other Comprehensive Loss	$	(308,097	)	$	(318,709	)

6. Investments

Investments represent the Company’s investment in its 30% and 50% owned joint ventures. Such investments are accounted for under the equity method of accounting. As of December 26, 2010 and June 27, 2010, the Company’s investment in these joint ventures totaled $16.7 million and $19.7 million, respectively.

On June 28, 2010, the Company adopted new amendments included within Accounting Standards Codification Topic 810 (ASC 810) that, among other changes, revised the approach to determine the primary beneficiary of a variable interest entity (VIE) and requires companies to more frequently assess whether they must consolidate VIEs. The amendments replaced the existing quantitative approach for identifying the primary beneficiary with a qualitative approach. The determination of the primary beneficiary, the party that must consolidate the VIE, was amended to reflect the party that has the power to direct the activities that most economically affect the entity.

8

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

As of June 28, 2010 and subsequently, the Company evaluated all entities that fall within the scope of the amended ASC 810, including the Company’s investments in joint ventures, to determine whether consolidation of these entities was required. As a result of this evaluation, the Company has determined that it is not required to consolidate any of its joint ventures.

7. Pension and Postretirement Benefits

The Company has noncontributory defined benefit retirement plans and postretirement plans covering certain employees. The following tables summarize the plans’ income and expense for the periods indicated (in thousands):

	Pension Benefits						Other Postretirement Benefits
	Three Months Ended						Three Months Ended
	December 26, 2010			December 27, 2009			December 26, 2010			December 27, 2009
Components of Net Periodic (Income) Expense:
Service Cost	$	3,121		$	2,914		$	117		$	120
Interest Cost on Projected Benefit Obligation		14,143			15,149			1,707			2,840
Expected Return on Plan Assets		(19,202	)		(20,264	)		—			—
Amortization of:
Transition Obligation		2			2			—			—
Prior Service Cost (Credit)		765			756			(757	)		(230	)
Actuarial Loss		4,408			693			2,359			2,534
Net Periodic (Income) Expense	$	3,237		$	(750	)	$	3,426		$	5,264

	Pension Benefits						Other Postretirement Benefits
	Six Months Ended						Six Months Ended
	December 26, 2010			December 27, 2009			December 26, 2010			December 27, 2009
Components of Net Periodic (Income) Expense:
Service Cost	$	6,787		$	5,636		$	243		$	314
Interest Cost on Projected Benefit Obligation		28,344			30,372			3,546			5,632
Expected Return on Plan Assets		(38,487	)		(40,510	)		—			—
Amortization of:
Transition Obligation		4			4			—			—
Prior Service Cost (Credit)		1,530			1,534			(1,739	)		(460	)
Actuarial Loss		8,885			1,586			5,141			5,103
Net Periodic (Income) Expense	$	7,063		$	(1,378	)	$	7,191		$	10,589

The Company expects to make benefit payments of approximately $2.8 million attributable to its non-qualified pension plans during fiscal 2011. During the first six months of fiscal 2011, the Company made payments of approximately $1.4 million for its non-qualified pension plans. The Company anticipates making benefit payments of approximately $25.9 million for its other postretirement benefit plans during fiscal 2011. During the first six months of fiscal 2011, the Company made payments of $14.2 million for its other postretirement benefit plans.

9

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

The Company is not required to make any contributions to the qualified pension plan during fiscal 2011, but may be required to make contributions in future years depending upon the actual return on plan assets and the funded status of the plan in future periods.

8. Stock Incentives

Stock based compensation is calculated by estimating the fair value of incentive stock awards granted and amortizing the estimated value over the awards’ vesting period. Stock based compensation expense was $2.6 million and $8.0 million for the quarter and six months ended December 26, 2010, respectively. For the quarter and six months ended December 27, 2009, stock based compensation expense was $1.2 million and $5.4 million, respectively. Included in stock based compensation expense for the quarter ended December 26, 2010 was an expense of $1.3 million due to the modification of certain vesting conditions for the Company’s stock incentive awards. The modification of the awards was made in connection with the Company’s previously announced organization changes that involved a planned reduction of salaried employees during the quarter ended December 26, 2010. The Company also recorded expenses of approximately $2.2 million for severance and other related employee separation costs associated with the reduction.

9. Derivative Instruments & Hedging Activity

Derivatives are recorded on the Condensed Consolidated Balance Sheets as assets or liabilities, measured at fair value. The Company enters into derivative contracts designated as cash flow hedges to manage certain foreign currency and commodity exposures.

Changes in the fair value of cash flow hedges to manage the Company’s foreign currency exposure are recorded on the Consolidated Condensed Statements of Operations or as a component of Accumulated Other Comprehensive Loss. The amounts included in Accumulated Other Comprehensive Loss are reclassified into income when the forecasted transactions occur. These forecasted transactions represent the exporting of products for which the Company will receive foreign currency and the importing of products for which it will be required to pay in a foreign currency. Changes in the fair value of all derivatives deemed to be ineffective are recorded as either income or expense in the accompanying Consolidated Condensed Statements of Operations. These instruments generally do not have a maturity of more than twenty-four months.

The Company manages its exposure to fluctuation in the cost of natural gas used by its operating facilities through participation in a third party managed dollar cost averaging program linked to NYMEX futures. As a participant in the program, the Company hedges up to 100% of its anticipated monthly natural gas usage along with a pool of other companies. The Company does not hold any actual futures contracts, and actual delivery of natural gas is not required of the participants in the program. Cash settlements occur on a monthly basis based on the difference between the average dollar price of the underlying NYMEX futures held by the third party and the actual price of natural gas paid by the Company in the period. The fair value of the underlying NYMEX futures is reflected as an asset or liability on the accompanying Consolidated Condensed Balance Sheets. Changes in fair value are reflected as a Component of Accumulated Other Comprehensive Loss, which are reclassified into the income statement as the monthly cash settlements occur and actual natural gas is consumed. These contracts generally do not have a maturity of more than twenty-four months.

The Company manages its exposure to fluctuations in the cost of copper to be used in manufacturing by entering into forward purchase contracts designated as cash flow hedges. The Company hedges up to 100% of its anticipated copper usage, and the fair value of outstanding future contracts is reflected as an asset or liability on the accompanying Consolidated Condensed Balance Sheet based on NYMEX prices. Changes in fair value are reflected as a Component of Accumulated Other Comprehensive Loss if the forward purchase contracts are deemed to be effective. Changes in the fair value of all derivatives deemed to be ineffective are recorded as either income or expense in the accompanying Consolidated Condensed Statements of Operations. Unrealized gains or losses associated with the forward purchase contracts are captured in inventory costs and are realized in the income statement when sales of inventory are made. These instruments generally do not have a maturity of more than twenty-four months.

10

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

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.

As of December 26, 2010, the Company had the following outstanding derivative contracts (in thousands):

Contract		Quantity
Foreign Currency:
Australian Dollar	Sell		36,185	AUD
Canadian Dollar	Sell		10,000	CAD
Euro	Sell		74,000	EUR
Japanese Yen	Buy		675,000	JPY
Commodity:
Copper	Buy		75	Pounds
Natural Gas	Buy		15,417	Therms

As of December 26, 2010 and for the six months then ended, the Company’s derivative contracts had the following impact on the Consolidated Condensed Balance Sheet and the Consolidated Condensed Statements of Operations (in thousands):

	Asset Derivatives
	Balance Sheet Location	Fair Value
		December 26, 2010		June 27, 2010
Foreign currency contracts	Other Current Assets	$	9,129	$	16,440
Commodity contracts	Other Current Assets		94		34
Foreign currency contracts	Other Long-Term Assets, Net		—		1,478
Commodity contracts	Other Long-Term Assets, Net		—		—
		$	9,223	$	17,952
	Liability Derivatives
	Balance Sheet Location	Fair Value
		December 26, 2010		June 27, 2010
Foreign currency contracts	Accrued Liabilities	$	3,163	$	296
Commodity contracts	Accrued Liabilities		2,210		1,377
Foreign currency contracts	Other Long-Term Liabilities		135		—
Commodity contracts	Other Long-Term Liabilities		848		728
		$	6,356	$	2,401

	Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss on Derivatives (Effective Portion)						(Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)		Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Income (Effective Portion)
	December 26, 2010			June 27, 2010					December 26, 2010			December 27, 2009
Foreign currency contracts - sell	$	2,036		$	(7	)		Net Sales	$	1,761		$	(3,674	)
Foreign currency contracts - buy		31			9,771			Cost of Goods Sold		(452	)		363
Commodity contracts		(1,880	)		(1,265	)		Cost of Goods Sold		(1,136	)		(1,777	)
	$	187		$	8,499				$	173		$	(5,088	)

11

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

The entire $0.2 million gain detailed above that is currently recognized in Accumulated Other Comprehensive Loss is expected to be reclassified into the earnings within the next twelve months.

10. 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 December 26, 2010 and June 27, 2010 (in thousands):

			Fair Value Measurement Using
	December 26, 2010		Level 1		Level 2		Level 3
Assets:
Derivatives	$	9,223	$	9,129	$	94	$	—
Liabilities:
Derivatives	$	6,356	$	3,298	$	3,058	$	—
			Fair Value Measurement Using
	June 27, 2010		Level 1		Level 2		Level 3
Assets:
Derivatives	$	17,952	$	17,918	$	34	$	—
Liabilities:
Derivatives	$	2,401	$	296	$	2,105	$	—

11. Warranty

The Company recognizes the cost associated with its standard warranty on Engines and Power Products at the time of sale. The amount recognized is based on historical failure rates and current claim cost experience. The following is a reconciliation of the changes in accrued warranty costs for the reporting period (in thousands):

	Six Months Ended
	December 26, 2010			December 27, 2009
Beginning Balance	$	41,945		$	42,044
Payments		(13,275	)		(16,724	)
Provision for Current Year Warranties		13,631			14,513
Other Adjustments		130			(1,523	)
Ending Balance	$	42,431		$	38,310

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

12. Income Taxes

As of June 27, 2010, the Company had $19.1 million of gross unrecognized tax benefits. Of this amount, $11.1 million represents the portion that, if recognized, would impact the effective tax rate. As of June 27, 2010, the Company had $5.9 million accrued for the payment of interest and penalties. For the first six months ended December 26, 2010, the Company recorded an increase in the tax reserve of $0.1 million. The increase relates to interest rate adjustments year to date. Over the next twelve months it is possible that the Company will settle global tax examinations, which could decrease the amount of unrecognized tax benefits. Due to the various jurisdictions in which the Company files tax returns and the uncertainty regarding the timing of the settlements, the amount of the unrecognized tax benefits cannot be reasonably estimated at this time.

The Company files income tax returns in the U.S. and various state and foreign jurisdictions and is regularly audited by federal, state and foreign tax authorities. In the U.S., the Company is no longer subject to U.S. federal income tax examinations before 2009. The Company 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 2000.

13. Commitments and Contingencies

Briggs & Stratton is subject to various unresolved legal actions that arise in the normal course of its business. These actions typically relate to product liability (including asbestos-related liability), patent and trademark matters, and disputes with customers, suppliers, distributors and dealers, competitors and employees.

Starting with the first complaint in June 2004, various plaintiff groups filed complaints in state and federal courts across the country against the Company and other engine and lawnmower manufacturers alleging that the horsepower labels on the products they purchased were inaccurate and that the Company conspired with other engine and lawnmower manufacturers to conceal the true horsepower of these engines (“Horsepower Class Actions”). The Horsepower Class Actions sought to certify unfair trade practice and common law claims for separate classes of all persons in each of the 50 states, Puerto Rico and the District of Columbia who purchased a lawnmower containing a gasoline combustion engine up to 30 horsepower from 1994 to the present. In addition, the complaints sought injunctive relief, compensatory and punitive damages, attorneys’ fees and included nationwide federal antitrust and RICO claims. On December 5, 2008, the Multidistrict Litigation Panel coordinated and transferred the cases to Judge Adelman of the United States District Court for the Eastern District of Wisconsin (In Re: Lawnmower Engine Horsepower Marketing and Sales Practices Litigation, Case No. 2:08-md-01999).

On January 27, 2009, Judge Adelman entered a stay of all litigation so that the parties could conduct mediation in an effort to resolve all outstanding litigation. On February 24, 2010, the Company entered into a Stipulation of Settlement (“Settlement”) that resolves all of the Horsepower Class Actions. Other parties to the Settlement are Sears, Roebuck and Co., Sears Holdings Corporation, Kmart Holdings Corporation, Deere & Company, Tecumseh Products Company, The Toro Company, Electrolux Home Products, Inc. and Husqvarna Outdoor Products, Inc. (now known as Husqvarna Consumer Outdoor Products, N.A., Inc.) (collectively with the Company referred to below as the “Settling Defendants”). All other defendants settled all claims separately. The Settlement resolves all horsepower-labeling claims brought by all persons or entities in the United States who, beginning January 1, 1994 through the date notice of the Settlement is first given, purchased, for use and not for resale, a lawn mower containing a gas combustible engine up to 30 horsepower provided that either the lawn mower or the engine of the lawn mower was manufactured or sold by a Defendant.

As part of the Settlement, the Company denies any and all liability and seeks resolution to avoid further protracted and expensive litigation. The Settling Defendants as a group agreed to pay an aggregate amount of $51 million. However, the monetary contribution of the amount of each of the Settling Defendants is confidential. In addition, the Company, along with the other Settling Defendants, agreed to injunctive relief regarding their future horsepower labeling, as well as procedures that will allow purchasers of lawnmower engines to seek a one-year extended warranty free of charge.

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

On August 16, 2010, Judge Adelman issued a final order approving the Settlement as well as the settlements of all other defendants. Judge Adelman’s opinion found all settlements to be in good faith and dismissed the claims of all class members with prejudice. Prior to the time for filing appeals expired, one class member filed a motion to modify or amend Judge Adelman’s final approval order. This motion was denied on October 28, 2010. In August and September 2010, several class members filed a Notice of Appeal of Judge Adelman’s final approval order to the United States Court of Appeals for the Seventh Circuit. Those appeals are still currently pending. Under the terms of the Settlement, the balance of settlement funds will not be due, and the one-year warranty extension program will not begin, until all appeals from Judge Adelman’s final approval order are exhausted or otherwise resolved.

As a result of the pending Settlement, the Company recorded a total charge of $30.6 million in the third quarter of fiscal year 2010 representing the total of the Company’s monetary portion of the Settlement and the estimated costs of extending the warranty period for one year. The timing of payments required as a result of the Settlement is expected to be within the next twelve months.

On March 19, 2010, new plaintiffs filed a complaint in the Ontario Superior Court of Justice in Canada (Robert Foster et al. v. Sears Canada, Inc. et al., Docket No. 766-2010). On May 3, 2010, other plaintiffs filed a complaint in the Montreal Superior Court in Canada (Eric Liverman, et al. v. Deere & Company, et al., Docket No. 500-06-000507-109). Both Canadian complaints contain allegations and seek relief under Canadian law that are similar to the Horsepower Class Actions. The Company is evaluating the complaints and has not yet filed an answer or other responsive pleading to either one.

On May 14, 2010, the Company notified retirees and certain retirement eligible employees of various changes to the Company-sponsored retiree medical plans. The purpose of the amendments was to better align the plans offered to both hourly and salaried retirees. On August 16, 2010, a putative class of retirees who retired prior to August 1, 2006 and the United Steel Workers filed a complaint in the Eastern District of Wisconsin (Merrill, Weber, Carpenter, et al; United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union, AFL-CIO/CLC v. Briggs & Stratton Corporation; Group Insurance Plan of Briggs & Stratton Corporation; and Does 1 through 20, Docket No. 10-C-0700), contesting the Company’s right to make these changes. In addition to a request for class certification, the complaint seeks an injunction preventing the alleged unilateral termination or reduction in insurance coverage to the class of retirees, a permanent injunction preventing defendants from ever making changes to the retirees’ insurance coverage, restitution with interest (if applicable) and attorneys’ fees and costs. The Company has moved to dismiss the complaint and believes the changes are within its rights.

Although it is not possible to predict with certainty the outcome of these unresolved legal actions or the range of possible loss, the Company believes the unresolved legal actions will not have a material adverse effect on its results of operations, financial position or cash flows.

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

14. 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):

	Three Months Ended						Six Months Ended
	December 26, 2010			December 27, 2009 1			December 26, 2010			December 27, 2009 1
NET SALES:
Engines	$	297,827		$	260,053		$	503,441		$	465,995
Power Products		186,361			164,885			353,949			330,733
Inter-Segment Eliminations		(33,864	)		(31,889	)		(72,950	)		(79,072	)
Total *	$	450,324		$	393,049		$	784,440		$	717,656
*       International sales included in net sales based on product shipment destination	$	208,610		$	163,507		$	326,459		$	260,293
GROSS PROFIT ON SALES:
Engines	$	68,546		$	57,078		$	111,205		$	92,525
Power Products		12,084			16,318			29,391			39,288
Inter-Segment Eliminations		(2,309	)		(2,746	)		(281	)		(8,773	)
Total	$	78,321		$	70,650		$	140,315		$	123,040
INCOME (LOSS) FROM OPERATIONS:
Engines	$	20,186		$	16,944		$	14,849		$	12,079
Power Products		(14,115	)		(3,887	)		(19,268	)		(1,398	)
Inter-Segment Eliminations		(2,309	)		(2,746	)		(281	)		(8,773	)
Total	$	3,762		$	10,311		$	(4,700	)	$	1,908

¹ Prior year amounts have been reclassified to conform to current year presentation. These adjustments relate to the sale of certain products through our foreign subsidiaries that had been reported within the Engines Segment, but are now reported in the Power Products Segment. These adjustments align our segment reporting with current management responsibilities.

15. Debt and Separate Financial Information of Subsidiary Guarantor of Indebtedness

In December 2010, the Company issued $225 million of 6.875% Senior Notes due December 15, 2020. The net proceeds of the offering were primarily used to redeem the outstanding principal of the 8.875% Senior Notes due March 15, 2011. In connection with the refinancing and the issuance of the new Senior Notes, the Company incurred approximately $5.0 million in new deferred financing costs, which are being amortized over the life of the new Senior Notes using the effective interest method. In addition, at the time of the refinancing the Company expensed approximately $3.7 million associated with the make-whole terms of the 8.875% Senior Notes, $0.1 million in remaining deferred financing costs and $0.1 million of original issue discount. These amounts are included in interest expense in the Consolidated Statements of Operations.

On July 12, 2007, the Company entered into a $500 million amended and restated multicurrency credit agreement. The Amended Credit Agreement (“Revolver”) provides a revolving credit facility for up to $500 million in revolving loans, including up to $25 million in swing-line loans. The Revolver has a term of five years and all outstanding borrowings on the Revolver are due and payable on July 12, 2012. The Revolver contains covenants that the Company considers usual and customary for an agreement of this type, including a Maximum Total Leverage Ratio and Minimum Interest Coverage Ratio. Certain of the Company’s subsidiaries are required to be guarantors of the Company’s obligations under the Revolver.

The Revolver and the 6.875% Senior Notes contain restrictive covenants. These covenants include restrictions on the Company’s ability to: pay dividends; repurchase shares; incur indebtedness; create liens; enter into sale and leaseback transactions; consolidate or merge with other entities, sell or lease all or substantially all of its assets; and dispose of assets or the proceeds of sales of its assets. The Revolver contains financial covenants that require the Company to maintain a minimum interest coverage ratio and impose a maximum leverage ratio. As of December 26, 2010, the Company was in compliance with these covenants.

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

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

	December 26, 2010 Carrying Amount		Maximum Guarantee
6.875% Senior Notes, due December 15, 2020	$	225,000	$	225,000
Revolving Credit Facility, expiring July 12, 2012	$	55,000	$	500,000

The following condensed supplemental consolidating financial information reflects the summarized financial information of the Company, its Guarantor and Non-Guarantor Subsidiaries (in thousands):

BALANCE SHEET

As of December 26, 2010

(Unaudited)

	Briggs  & Stratton Corporation		Guarantor Subsidiary			Non- Guarantor Subsidiaries		Eliminations			Consolidated
Current Assets	$	479,056	$	367,041		$	254,801	$	(177,211	)	$	923,687
Investment in Subsidiaries		669,415		—			—		(669,415	)		—
Non-Current Assets		470,499		285,671			49,247		(34,709	)		770,708
	$	1,618,970	$	652,712		$	304,048	$	(881,335	)	$	1,694,395
Current Liabilities	$	298,887	$	74,176		$	99,400	$	(150,310	)	$	322,153
Long-Term Debt		305,574		(18,822	)		20,149		(26,901	)		280,000
Other Long-Term Obligations		367,312		77,035			35,407		(34,709	)		445,045
Shareholders’ Investment		647,197		520,323			149,092		(669,415	)		647,197
	$	1,618,970	$	652,712		$	304,048	$	(881,335	)	$	1,694,395

BALANCE SHEET

As of June 27, 2010

	Briggs & Stratton Corp oration		Guarantor Subsidiary		Non- Guarantor Subsidiaries		Eliminations			Consolidated
Current Assets	$	495,891	$	369,714	$	210,764	$	(170,726	)	$	905,643
Investment in Subsidiaries		677,242		—		—		(677,242	)		—
Noncurrent Assets		484,868		284,749		47,399		(32,602	)		784,414
	$	1,658,001	$	654,463	$	258,163	$	(880,570	)	$	1,690,057
Current Liabilities	$	607,295	$	37,530	$	89,412	$	(170,726	)	$	563,511
Other Long-Term Obligations		400,129		74,868		33,573		(32,602	)		475,969
Shareholders’ Investment		650,577		542,065		135,177		(677,242	)		650,577
	$	1,658,001	$	654,463	$	258,163	$	(880,570	)	$	1,690,057

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

STATEMENT OF OPERATIONS

For the Three Months Ended December 26, 2010

(Unaudited)

	Briggs  & Stratton Corporation			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	285,078		$	144,890		$	90,036		$	(69,680	)	$	450,324
Cost of Goods Sold		228,169			142,724			70,790			(69,680	)		372,003
Gross Profit		56,909			2,166			19,246			—			78,321
Engineering, Selling, General and Administrative Expenses		42,500			19,231			12,828			—			74,559
Equity in Loss from Subsidiaries		5,687			—			—			(5,687	)		—
Income (Loss) from Operations		8,722			(17,065	)		6,418			5,687			3,762
Interest Expense		(8,953	)		(17	)		(38	)		—			(9,008	)
Other Income, Net		773			175			689			—			1,637
Income (Loss) before Income Taxes		542			(16,907	)		7,069			5,687			(3,609	)
Provision (Credit) for Income Taxes		1,794			(5,999	)		1,848			—			(2,357	)
Net Income (Loss)	$	(1,252	)	$	(10,908	)	$	5,221		$	5,687		$	(1,252	)

STATEMENT OF OPERATIONS

For the Three Months Ended December 27, 2009

(Unaudited)

	Briggs & Stratton Corporation			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	254,624		$	133,612		$	69,297		$	(64,484	)	$	393,049
Cost of Goods Sold		205,612			127,832			53,439			(64,484	)		322,399
Gross Profit		49,012			5,780			15,858			—			70,650
Engineering, Selling, General and Administrative Expenses		34,458			16,264			9,617			—			60,339
Equity in Loss from Subsidiaries		1,760			—			—			(1,760	)		—
Income (Loss) from Operations		12,794			(10,484	)		6,241			1,760			10,311
Interest Expense		(7,115	)		(24	)		(40	)		—			(7,179	)
Other Income, Net		1,003			29			105			—			1,137
Income (Loss) before Income Taxes		6,682			(10,479	)		6,306			1,760			4,269
Provision (Credit) for Income Taxes		3,657			(3,781	)		1,368			—			1,244
Net Income (Loss)	$	3,025		$	(6,698	)	$	4,938		$	1,760		$	3,025

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

STATEMENT OF OPERATIONS

For the Six Months Ended December 26, 2010

(Unaudited)

	Briggs & Stratton Corporation			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	477,770		$	295,362		$	160,145		$	(148,837	)	$	784,440
Cost of Goods Sold		384,741			280,682			127,539			(148,837	)		644,125
Gross Profit		93,029			14,680			32,606			—			140,315
Engineering, Selling, General and Administrative Expenses		84,956			36,576			23,483			—			145,015
Equity in Loss from Subsidiaries		6,489			—			—			(6,489	)		—
Income (Loss) from Operations		1,584			(21,896	)		9,123			6,489			(4,700	)
Interest Expense		(14,057	)		(37	)		(71	)		—			(14,165	)
Other Income, Net		1,818			313			942			—			3,073
Income (Loss) before Income Taxes		(10,655	)		(21,620	)		9,994			6,489			(15,792	)
Provision (Credit) for Income Taxes		(1,290	)		(7,644	)		2,507			—			(6,427	)
Net Income (Loss)	$	(9,365	)	$	(13,976	)	$	7,487		$	6,489		$	(9,365	)

STATEMENT OF OPERATIONS

For the Six Months Ended December 27, 2009

(Unaudited)

	Briggs & Stratton Corporation			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Sales	$	445,856		$	278,831		$	129,294		$	(136,325	)	$	717,656
Cost of Goods Sold		374,975			258,229			97,737			(136,325	)		594,616
Gross Profit		70,881			20,602			31,557			—			123,040
Engineering, Selling, General and Administrative Expenses		69,214			32,294			19,624			—			121,132
Equity in Earnings from Subsidiaries		(2,345	)		—			—			2,345			—
Income (Loss) from Operations		4,012			(11,692	)		11,933			(2,345	)		1,908
Interest Expense		(13,505	)		(51	)		(99	)		—			(13,655	)
Other Income, Net		2,303			117			7			—			2,427
Income (Loss) before Income Taxes		(7,190	)		(11,626	)		11,841			(2,345	)		(9,320	)
Provision (Credit) for Income Taxes		(1,528	)		(4,176	)		2,046			—			(3,658	)
Net Income (Loss)	$	(5,662	)	$	(7,450	)	$	9,795		$	(2,345	)	$	(5,662	)

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

STATEMENT OF CASH FLOWS

For the Six Months Ended December 26, 2010

(Unaudited)

	Briggs & Stratton Corporation			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Cash Provided (Used) by Operating Activities	$	(87,292	)	$	(42,444	)	$	6,752		$	(5,666	)	$	(128,650	)
Cash Flows from Investing Activities:
Additions to Plant and Equipment		(15,933	)		(4,141	)		(1,267	)		—			(21,341	)
Cash Paid for Acquisition, Net of Cash Received		—			—			—			—			—
Proceeds Received on Sale of Plant and Equipment		14			27			11			—			52
Cash Investment in Subsidiary		(92	)		—			—			92			—
Net Cash Used by Investing Activities		(16,011	)		(4,114	)		(1,256	)		92			(21,289	)
Cash Flows from Financing Activities:
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt		15,944			44,875			9,817			5,666			76,302
Deferred Loan Costs		(4,994	)											(4,994	)
Dividends Paid		(5,537	)		—			—			—			(5,537	)
Capital Contributions Received		—			—			92			(92	)		—
Net Cash Provided by Financing Activities		5,413			44,875			9,909			5,574			65,771
Effect of Foreign Currency Exchange Rate
Changes on Cash and Cash Equivalents		—			—			(905	)		—			(905	)
Net Increase (Decrease) in Cash and Cash Equivalents		(97,890	)		(1,683	)		14,500			—			(85,073	)
Cash and Cash Equivalents, Beginning		100,880			3,675			11,999			—			116,554
Cash and Cash Equivalents, Ending	$	2,990		$	1,992		$	26,499		$	—		$	31,481

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

STATEMENT OF CASH FLOWS

For the Six Months Ended December 27, 2009

(Unaudited)

	Briggs & Stratton Corporation			Guarantor Subsidiary			Non- Guarantor Subsidiaries			Eliminations			Consolidated
Net Cash Provided (Used) by Operating Activities	$	5,457		$	(18,979	)	$	(8,661	)	$	(3,096	)	$	(25,279	)
Cash Flows from Investing Activities:
Additions to Plant and Equipment		(8,296	)		(5,500	)		(1,796	)		—			(15,592	)
Proceeds Received on Sale of Plant and Equipment		158			2			12			—			172
Cash Investment in Subsidiary		(9,519	)		—			613			8,906			—
Other, net		(144	)		—			—			—			(144	)
Net Cash Used by Investing Activities		(17,801	)		(5,498	)		(1,171	)		8,906			(15,564	)
Cash Flows from Financing Activities:
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt		21,467			26,248			2,121			3,096			52,932
Dividends Paid		(5,500	)		—			—			—			(5,500	)
Capital Contributions Received		—			—			8,906			(8,906	)		—
Net Cash Provided by Financing Activities		15,967			26,248			11,027			(5,810	)		47,432
Effect of Foreign Currency Exchange Rate
Changes on Cash and Cash Equivalents		—			—			328			—			328
Net Increase in Cash and Cash Equivalents		3,623			1,771			1,523			—			6,917
Cash and Cash Equivalents, Beginning		1,541			1,301			13,150			—			15,992
Cash and Cash Equivalents, Ending	$	5,164		$	3,072		$	14,673		$	—		$	22,909

In prior periods the Company reported eliminations of intercompany gross profit and other income (expense) in the Eliminations column within the “Separate Financial Information of Subsidiary Guarantor of Indebtedness” footnote. Under accounting principles generally accepted in the United States applicable to equity method accounting, these amounts should be reflected in the Briggs & Stratton Corporation (the “Parent”) column. In the current period the Company has revised these disclosures to reflect the elimination of intercompany gross profit and other income (expense) within the Parent column. The impact of the revision for the three and six months ended December 27, 2009 was a decrease of $4.7 million and $9.1 million to net income (loss) of the Parent column, respectively. The offsetting impact was to the Eliminations column. The Company considers these revisions to be immaterial to the Separate Financial Information of Subsidiary Guarantor of Indebtedness as a whole.

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following is management's discussion and analysis of the Company’s financial condition and results of operations for the periods included in the accompanying consolidated condensed financial statements:

RESULTS OF OPERATIONS

SALES

Consolidated net sales for the second quarter of fiscal 2011 were $450.3 million, an increase of $57.3 million or 14.6% when compared to the same period a year ago.

Second quarter fiscal 2011 net sales for the Engines Segment were $297.8 million, a $37.8 million or 14.5% increase from the second quarter of fiscal 2010. This increase from the same quarter last year is primarily due to higher international engine shipments to European and Asian OEMs, partially offset by slightly lower sales domestically as U.S. OEMs and retailers continue to focus on lean inventory levels prior to the spring selling season.

Second quarter fiscal 2011 Power Products Segment net sales were $186.4 million, a $21.5 million or 13.0% increase from the second quarter of fiscal 2010. This improvement was due primarily to increased unit shipment volumes of snow throwers, ZTRs and pressure washers, offset by reduced shipment volumes of portable generators as a result of lower consumer demand.

Consolidated net sales for the first six months of fiscal 2011 were $784.4 million, an increase of $66.8 million or 9.3% when compared to the same period a year ago.

Engines Segment net sales for the first six months of fiscal 2011 were $503.4 million, a $37.5 million or 8.0% increase compared to the first six months of fiscal 2010. This increase from the same period last year is primarily due to higher international engine shipments to European and Asian OEMs, partially offset by lower engine sales domestically and a reduction of intercompany sales of engines to our Power Products segment due to lower sales and production of pressure washers and portable generators.

Power Products Segment net sales for the first six months of fiscal 2011 were $353.9 million, a $23.2 million or 7.0% increase compared to the first six months of fiscal 2010. This improvement was due primarily to increased unit shipment volumes of snow throwers and ZTRs, offset by reduced shipment volumes of pressure washers and portable generators as a result of lower consumer demand and retailers closely managing inventories in these categories.

GROSS PROFIT MARGIN

The consolidated gross profit margin was 17.4% in the second quarter of fiscal 2011, down from 18.0% in the same period last year.

The Engines Segment gross profit margin increased to 23.0% in the second quarter of fiscal 2011 from 21.9% in the second quarter of fiscal 2010. This improvement was primarily due to favorable product mix and slightly increased engine pricing, partially offset by higher material costs and increased salaries and benefits including a $2.2 million increase in pension benefits expense.

The Power Products Segment gross profit margin decreased to 6.5% for the second quarter of fiscal 2011 from 9.9% in the second quarter of fiscal 2010. The decline between years is due to higher manufacturing spending and lower absorption primarily related to a 59% decrease in production of portable generators. The higher manufacturing spending is attributed to higher material costs, manufacturing inefficiencies in launching new products, increased warranty expense, and increased freight expense.

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

The consolidated gross profit margin for the first six months of fiscal 2011 improved to 17.9% from 17.1% in the first six months of fiscal 2010.

The Engines Segment gross profit margin increased to 22.1% for the first six months of fiscal 2011 from 19.9% in the first six months of fiscal 2010. This improvement was primarily due to slightly increased engine pricing and improved production, partially offset by higher freight expense and increased salaries and benefits. The increase in salaries and benefits includes a $4.9 million increase in pension benefits expense and $2.2 million attributed to temporary reductions in salaries and 401(k) match implemented in the first half of fiscal 2010.

The Power Products Segment gross profit margin decreased to 8.3% for the first six months of fiscal 2011 from 11.9% in the first six months of fiscal 2010. This decline between years resulted from higher manufacturing spending, lower absorption primarily related to the decreased production of portable generators and pressure washers, as well as increased expenses related to salaries and benefits. The increase in manufacturing spending relates to transition costs from the closure of our Jefferson manufacturing facility, higher material costs, manufacturing inefficiencies in launching new products, increased warranty expense, and increased freight expense. The increase in salaries and benefits includes $0.8 million attributable to temporary reductions in salaries and 401(k) match implemented in the first half of fiscal 2010.

ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Engineering, selling, general and administrative expenses were $74.6 million in the second quarter of fiscal 2011, an increase of $14.2 million or 23.6% from the second quarter of fiscal 2010. The increase is due to higher salaries and benefits expenses that include a $1.8 million increase in pension benefits expense as well as $3.3 million of severance and other related employee separation costs associated with a planned reduction of salaried employees during the second quarter ended December 26, 2010.

Engineering, selling, general and administrative expenses were $145.0 million for the first six months of fiscal 2011, an increase of $23.9 million or 19.7% from the first six months of fiscal 2010. The increase is due to higher salaries and benefits expenses that include a $3.5 million increase in pension benefits expense, increased salaries and 401(k) company match benefits of $2.2 million, which have been fully restored since being temporarily reduced early in the second quarter of fiscal 2010, as well as $3.3 million of severance and other related employee separation costs associated with a planned reduction of salaried employees during the second quarter ended December 26, 2010.

INTEREST EXPENSE

Interest expense was higher for the second quarter and the first six months of fiscal 2011 due to a $3.9 million redemption premium on the 8.875% Senior Notes and the write off of related deferred financing costs, partially offset by lower average outstanding borrowings.

PROVISION FOR INCOME TAXES

The second quarter and first six months effective tax rate benefit for fiscal 2011 was 65.3% and 40.7%, respectively, versus the 29.1% effective tax rate and 39.2% effective tax rate benefit in the same respective periods last year. The increase in the second quarter of fiscal 2011 effective tax rate benefit over the prior year was the result of recognizing the benefit of the research & development credit, which was extended by federal tax legislature enacted on December 17, 2010.

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

LIQUIDITY AND CAPITAL RESOURCES

Cash used by operating activities was $128.7 million and $25.3 million in the first six months of fiscal 2011 and fiscal 2010, respectively. This change was primarily attributable to approximately $102.0 million greater working capital requirements compared to the first six months of fiscal 2010, which was primarily due to a $65.2 million decrease in accounts payable and accrued liabilities and a $35.9 million increase in inventory.

Cash used by investing activities was $21.3 million and $15.6 million in the first six months of fiscal 2011 and fiscal 2010, respectively. The $5.7 million increase was primarily the result of higher purchases of plant and equipment compared to the first six months of last year.

Cash provided by financing activities was $65.8 million and $47.4 million in the first six months of fiscal 2011 and fiscal 2010, respectively. The increase is primarily due to the issuance of $225 million aggregate principal amount of 6.875% Senior Notes due December 15, 2020 during the second quarter of fiscal 2011, the net proceeds of which were primarily used to redeem the $203.7 million outstanding principal amount of the 8.875% Senior Notes due March 15, 2011. The Company incurred $5.0 million of deferred financing costs in connection with the issuance of the 6.875% Senior Notes.

FUTURE LIQUIDITY AND CAPITAL RESOURCES

In December 2010, the Company issued $225 million aggregate principal amount of 6.875% Senior Notes due December 2020. Net proceeds were primarily used to redeem the remaining outstanding principal of the 8.875% Senior Notes due March 2011.

On July 12, 2007, the Company entered into a $500 million amended and restated multicurrency credit agreement. The Amended Credit Agreement (“Revolver”) provides a revolving credit facility for up to $500 million in revolving loans, including up to $25 million in swing-line loans. The Company used proceeds from the Revolver to pay off the remaining amounts outstanding under the Company’s variable rate term notes issued in February 2005 with various financial institutions, retire the 7.25% senior notes that were due in September 2007 and fund seasonal working capital requirements and other financing needs. The Revolver has a term of five years and all outstanding borrowings on the Revolver are due and payable on July 12, 2012. As of December 26, 2010, there were borrowings of $55.0 million on the Revolver.

Briggs & Stratton expects capital expenditures to be approximately $60 million in fiscal 2011. These anticipated expenditures reflect our plans to continue to reinvest in efficient equipment and innovative new products.

The Company is not required to make any contributions to the qualified pension plan during fiscal 2011, but may be required to make contributions in future years depending upon the actual return on plan assets and the funded status of the plan in future periods.

Management believes that available cash, cash generated from operations, existing lines of credit and access to debt markets will be adequate to fund Briggs & Stratton’s operating and capital requirements for the foreseeable future.

The Revolver and the 6.875% Senior Notes contain restrictive covenants. These covenants include restrictions on the Company’s ability to: pay dividends; repurchase shares; incur indebtedness; create liens; enter into sale and leaseback transactions; consolidate or merge with other entities, sell or lease all or substantially all of its assets; and dispose of assets or the proceeds of sales of its assets. The Revolver contains financial covenants that require the Company to maintain a minimum interest coverage ratio and impose a maximum leverage ratio. As of December 26, 2010, the Company was in compliance with these covenants, and expects to be in compliance with all covenants during the remainder of fiscal 2011.

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

OFF-BALANCE SHEET ARRANGEMENTS

There have been no material changes since the August 26, 2010 filing of the Company’s Annual Report on Form 10-K.

CONTRACTUAL OBLIGATIONS

There have been no material changes since the August 26, 2010 filing of the Company’s Annual Report on Form 10-K, other than the issuance of $225 million aggregate principal amount of 6.875% Senior Notes due December 15, 2020 during the second quarter of fiscal 2011, the net proceeds of which were primarily used to redeem the $203.7 million outstanding principal amount of the 8.875% Senior Notes due March 15, 2011.

CRITICAL ACCOUNTING POLICIES

There have been no material changes in the Company’s critical accounting policies since the August 26, 2010 filing of its Annual Report on Form 10-K. As discussed in our annual report, the preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions about future events that affect the amounts reported in the financial statements and accompanying notes. Future events and their effects cannot be determined with absolute certainty. Therefore, the determination of estimates requires the exercise of judgment. Actual results inevitably will differ from those estimates, and such differences may be material to the financial statements.

The most significant accounting estimates inherent in the preparation of our financial statements include a goodwill assessment, estimates as to the realizability of accounts receivable and inventory assets, as well as estimates used in the determination of liabilities related to customer rebates, pension obligations, postretirement benefits, warranty, product liability, group health insurance, litigation and taxation. Various assumptions and other factors underlie the determination of these significant estimates. The process of determining significant estimates is fact specific and takes into account factors such as historical experience, current and expected economic conditions, product mix, and, in some instances, actuarial techniques. The Company re-evaluates these significant factors as facts and circumstances change.

NEW ACCOUNTING PRONOUNCEMENTS

A discussion of new accounting pronouncements is included in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q under the heading New Accounting Pronouncements and incorporated herein by reference.

CAUTIONARY STATEMENT ON FORWARD-LOOKING STATEMENTS

This report contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. The words “believe”, “estimate”, “expect”, “forecast”, “intend”, “plan”, “project”, and similar expressions are intended to identify forward-looking statements. The forward-looking statements are based on the company’s current views and assumptions and involve risks and uncertainties that include, among other things, the ability to successfully forecast demand for our products; changes in interest rates and foreign exchange rates; the effects of weather on the purchasing patterns of consumers and original equipment manufacturers (OEMs); actions of engine

24

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

manufacturers and OEMs with whom we compete; changes in laws and regulations; changes in customer and OEM demand; changes in prices of raw materials and parts that we purchase; changes in domestic and foreign economic conditions; the ability to bring new productive capacity on line efficiently and with good quality; outcomes of legal proceedings and claims; and other factors disclosed from time to time in our SEC filings or otherwise, including the factors discussed in Item 1A, Risk Factors, of the company’s Annual Report on Form 10-K and in its periodic reports on Form 10-Q.

ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

There have been no material changes since the August 26, 2010, filing of the Company’s Annual Report on Form 10-K.

ITEM 4. CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this report. Based on such evaluation, the Company’s Chief Executive Officer and Chief Financial Officer have concluded that, as of the end of such period, the Company’s disclosure controls and procedures are effective in recording, processing, summarizing and reporting, on a timely basis, information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act.

INTERNAL CONTROL OVER FINANCIAL REPORTING

There has not been any change in the Company’s internal control over financial reporting during the second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings

A discussion of legal proceedings is included in the Notes to Consolidated Condensed Financial Statements of this Form 10-Q under the heading Commitments and Contingencies and incorporated herein by reference.

ITEM 1A. RISK FACTORS

There have been no material changes since the August 26, 2010, filing of the Company’s Annual Report on Form 10-K.

ITEM 6. EXHIBITS

Exhibit Number	Description
4.1	Indenture, dated December 20, 2010, among Briggs & Stratton Corporation, Briggs & Stratton Power Products Group, LLC and Wells Fargo Bank, National Association, as Trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K/A dated December 15, 2010 and incorporated herein by reference)

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

4.2	First Supplemental Indenture, dated December 20, 2010, among Briggs & Stratton Corporation, Briggs & Stratton Power Products Group, LLC and Wells Fargo Bank, National Association, as Trustee (filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K/A dated December 15, 2010 and incorporated herein by reference)
10.1	Underwriting Agreement, dated December 15, 2010, among Briggs & Stratton Corporation, Briggs & Stratton Power Products Group, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the several underwriters named therein (filed as Exhibit 1.1 to the Company’s Current Report on Form 8-K dated December 15, 2010 and incorporated herein by reference)
10.5	Briggs & Stratton Corporation Summary of Director Compensation, adopted by the Board of Directors on January 26, 2011 (Filed herewith)
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 December 26, 2010 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, tagged as blocks of text.

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	BRIGGS & STRATTON CORPORATION
	(Registrant)
Date: February 2, 2011	/s/ David J. Rodgers
	David J. Rodgers
	Senior Vice President and Chief Financial Officer and Duly Authorized Officer

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

EXHIBIT INDEX

Exhibit Number	Description
4.1	Indenture, dated December 20, 2010, among Briggs & Stratton Corporation, Briggs & Stratton Power Products Group, LLC and Wells Fargo Bank, National Association, as Trustee (filed as Exhibit 4.1 to the Company’s Current Report on Form 8-K/A dated December 15, 2010 and incorporated herein by reference)
4.2	First Supplemental Indenture, dated December 20, 2010, among Briggs & Stratton Corporation, Briggs & Stratton Power Products Group, LLC and Wells Fargo Bank, National Association, as Trustee (filed as Exhibit 4.2 to the Company’s Current Report on Form 8-K/A dated December 15, 2010 and incorporated herein by reference)
10.1	Underwriting Agreement, dated December 15, 2010, among Briggs & Stratton Corporation, Briggs & Stratton Power Products Group, LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated, as representative of the several underwriters named therein (filed as Exhibit 1.1 to the Company’s Current Report on Form 8-K dated December 15, 2010 and incorporated herein by reference)
10.5	Briggs & Stratton Corporation Summary of Director Compensation, adopted by the Board of Directors on January 26, 2011 (Filed herewith)
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 December 26, 2010 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, tagged as blocks of text.

28

EX-10.5

Exhibit 10.5

BRIGGS & STRATTON CORPORATION

Form 10-Q for Quarterly Period Ended December 26, 2010

Exhibit 10.5

SUMMARY OF DIRECTOR COMPENSATION

Effective January 26, 2011

DIRECTOR COMPENSATION

Each nonemployee director receives an annual retainer fee of $150,000, of which $75,000 is payable in cash and $75,000 is payable in deferred shares of the company’s common stock. In addition, the chairs of the Audit, Compensation, Finance and Nominating & Governance Committees each receives $10,000 in deferred stock annually, and each member of the Audit Committee receives $5,000 in deferred stock annually.

The deferred shares are credited to the director’s account in the Deferred Compensation Plan for Directors (the “Plan”). They vest when the director retires as a director. While the director is serving on the board, the stock accrues additional shares of deferred stock in lieu of a cash dividend. Under the Plan, any nonemployee director may also elect to defer receipt of all or a portion of his or her director’s cash compensation until any date but no later than the year in which the director attains the age of 73 years. Participants may elect to have cash deferred amounts (1) credited with interest quarterly at 80% of the prevailing prime rate, or (2) converted into common share units based on the deferral date closing price of the company’s common stock. Any balance in the common stock account will be credited with an amount equivalent to any dividend paid on the common stock, which will be converted into additional common share units. Common share units may be distributed in cash or stock at the election of the directors.

Nonemployee directors are provided with $150,000 of coverage under Briggs & Stratton’s Business Travel Accident Plan while on corporate business.

Nonemployee directors are encouraged to use company products to enhance their understanding and appreciation of the company’s business. Each such director may purchase at retail up to $10,000 annually of company products and products powered by the company’s engines. The company reimburses directors for the purchase price of these products. The amount of the reimbursement is included in the director’s taxable income.

EX-31.1

Exhibit 31.1

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Form 10-Q for Quarterly Period Ended December 26, 2010

EXHIBIT 31.1

Certification of Principal Executive Officer

I, Todd J. Teske, certify that:

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: February 2, 2011	/s/ Todd J. Teske
	Todd J. Teske
	Chief Executive Officer

EX-31.2

Exhibit 31.2

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Form 10-Q for Quarterly Period Ended December 26, 2010

EXHIBIT 31.2

Certification of Principal Financial Officer

I, David J. Rodgers, certify that:

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: February 2, 2011	/s/ David J. Rodgers
	David J. Rodgers
	Chief Financial Officer

EX-32.1

Exhibit 32.1

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Form 10-Q for Quarterly Period Ended December 26, 2010

EXHIBIT 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Briggs & Stratton Corporation (the "Company") on Form 10-Q for the quarter ended December 26, 2010, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, Todd J. Teske, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Todd J. Teske

Todd J. Teske

Chief Executive Officer

February 2, 2011

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

Exhibit 32.2

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Form 10-Q for Quarterly Period Ended December 26, 2010

EXHIBIT 32.2

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Briggs & Stratton Corporation (the "Company") on Form 10-Q for the quarter ended December 26, 2010, as filed with the Securities and Exchange Commission on the date hereof (the "Report"), I, David J. Rodgers, Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that to the best of my knowledge:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ David J. Rodgers

David J. Rodgers

Chief Financial Officer

February 2, 2011

This certification accompanies this Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and shall not be deemed filed by the Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

A signed original of this written statement required by Section 906 has been provided to the Company and will be retained by the Company and furnished to the Securities and Exchange Commission or its staff upon request.