BRUNSWICK CORP
For the period ended Mar 29, 2025. Filed Apr 30, 2025.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 29, 2025 · Filed Apr 30, 2025
BC$77.23-2.1%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-28; filed 2024-10-30.
0000014930-24-000157
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-29; filed 2025-04-30.
0000014930-25-000053
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 113 previous paragraphs and 92 current paragraphs.
43 unchanged; 42 reworded; 7 added; 26 removed; 2 previous and 0 current paragraphs rearranged.
Tables are not compared: 16 previous and 16 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (7)
Current report
Known Trends or Uncertainties
Current report
We continue to monitor macroeconomic trends and uncertainties such as recently implemented tariffs along with the potential for new or modified tariffs, and related impacts to consumers, any or all of which could have a material impact on our business, financial condition and results of operations. Refer to Item 1A. Risk Factors for further details.
Current report
Propulsion segment's net sales decreased in the first quarter of 2025 compared to the first quarter of 2024, primarily resulting from continued pipeline management and overall lower wholesale shipments to OEM boat builder customers.
Current report
International sales were 38 percent of the Propulsion segment's net sales in the first quarter of 2025 and decreased 6 percent from the prior year on a GAAP basis. On a constant currency basis, international sales decreased 1 percent.
Current report
International sales were 40 percent of the Navico Group segment's net sales in the first quarter of 2025 and decreased 5 percent from the prior year on a GAAP basis. On a constant currency basis, international sales decreased 2 percent.
Current report
Corporate operating loss in the first quarter of 2025 is flat compared to thefirst quarter of 2024.
Removed paragraphs (26)
Previous report
During the fourth quarter of 2023, we acquired additional Freedom Boat Club franchise operations and territory rights as well as certain marine assets in the Southeast United States for net cash consideration of $16.0 million. On September 1, 2023, the Company acquired all of the issued and outstanding shares of Fliteboard for $88.3 million net cash consideration. Refer to Note 4 – Acquisitionsin the Notes to Condensed Consolidated Financial Statements for further information.
Previous report
Net sales decreased 19 percent during the nine months ended September 28, 2024, when compared with the prior year, due to the same factors described above. Our international net sales decreased 13 percent in the nine months ended September 28, 2024 on a GAAP and constant currency basis.
Previous report
(B) Special tax items during the three and nine months ended September 28, 2024 relate to the discrete income tax expense recorded associated with an increase in the state valuation allowance during the third quarter of 2024.
Previous report
Gross margin decreased 130 basis points in the nine months ended September 28, 2024 when compared to the same prior year period, driven by lower absorption from decreased production levels (100 bps), sales-related drivers (60 bps), depreciation (10 bps) and foreign currency exchange-rate fluctuations (10 bps), partially offset by favorable material and labor costs (30 bps) and acquisitions (20 bps).
Previous report
Selling, general and administrative expense as a percentage of net sales increased 170 basis points during the nine months ended September 28, 2024 when compared with the same prior year period, due to lower sales (290 bps), partially offset by cost control measures across the enterprise, including lower employee compensation costs associated with headcount reductions and lower variable compensation (120 bps). Research and development expense decreased during the nine months ended September 28, 2024 versus the same period in 2023.
Previous report
Propulsion segment's net sales decreased in the third quarter of 2024 compared to the third quarter of 2023, due to lower production rates at OEM boat manufacturers resulting in lower engine orders in the quarter, partially offset by market share gains.
Previous report
Propulsion segment's net sales decreased in the nine months ended September 28, 2024 versus prior year due to the same factors described above.
Previous report
International sales were 37 percent of the Propulsion segment's net sales in the third quarter of 2024 and decreased 19 percent from the prior year on a GAAP basis. On a constant currency basis, international sales decreased 18 percent.
Previous report
International sales were 36 percent of the Propulsion segment's net sales in the nine months ended September 28, 2024 and decreased 14 percent year over year on a GAAP basis. On a constant currency basis, international sales decreased 13 percent.
Previous report
Operating earnings for the nine months ended September 28, 2024 decreased versus prior year as result of the same factors described above.
Previous report
Engine P&A segment's net sales decreased in the nine months ended September 28, 2024 versus prior year as strong second quarter results only partially offset the lower sales in the first and third quarters of 2024.
Previous report
International sales were 30 percent of the Engine P&A segment's net sales in the third quarter of 2024 and increased 4 percent from the prior year on a GAAP and constant currency basis.
Previous report
Operating earnings for the nine months ended September 28, 2024 increased as a result of the same factors described above.
Previous report
Navico Group segment's net sales decreased in the nine months ended September 28, 2024 versus prior year as a result of the same factors described above.
Previous report
International sales were 42 percent of the Navico Group segment's net sales in the third quarter of 2024 and increased 2 percent from the prior year on a GAAP basis. On a constant currency basis, international sales increased 1 percent.
Previous report
International sales were 41 percent of the Navico Group segment's net sales in the nine months ended September 28, 2024 and decreased 4 percent year over year on a GAAP and constant currency basis.
Previous report
Operating earnings for the nine months ended September 28, 2024 decreased as a result of the same factors described above.
Previous report
Boat segment's net sales decreased in the nine months ended September 28, 2024 versus prior year due to the same factors described above.
Previous report
International sales were 16 percent of the Boat segment's net sales in the third quarter of 2024 and decreased 34 percent on a GAAP and constant currency basis versus the same periods in 2023.
Previous report
Operating earnings in the nine months ended September 28, 2024 decreased due to the same factors above.
Previous report
Corporate operating loss in the third quarter of 2024 decreased when compared to thethird quarter of 2023, driven by lower variable compensation along with the impact of the IT security incident in the prior year.
Previous report
Corporate operating loss decreased in the nine months ended September 28, 2024 versus prior year, driven by lower variable compensation along with the impact of both the IT security incident and restructuring charges in the prior year.
Previous report
2023 Cash Flow
Previous report
Net cash provided by operating activities of continuing operations in the nine months ended September 30, 2023 totaled $458.1 million versus $313.8 million in the comparable period of 2022. The increase is primarily due to decreases in working capital usage, partially offset by lower net earnings.
Previous report
The primary drivers of net cash provided by operating activities of continuing operations in the nine months ended September 30, 2023 were net earnings, net of non-cash items, partially offset by working capital usage. Accounts and notes receivable increased $26.9 million, primarily due to timing of collections. Inventory decreased $15.6 million, driven by reductions in production to manage pipeline levels. Accounts payable decreased $141.2 million, primarily due to lower purchasing resulting from reduced production. Accrued expenses decreased $25.0 million, primarily driven by a reduction in our derivative liability position.
Previous report
Net cash used for investing activities was $309.9 million, which included $233.1 million of capital expenditures and $89.6 million of cash paid for acquisitions, partially offset by $10.6 million of sales of property, plant and equipment and $3.8 million of sales or maturities of marketable securities. Our capital spending was focused on investments in capacity expansion, new products and technologies.
Reworded paragraphs (42)
Previous wording
Net sales decreased 20 percent during the third quarter of 2024 when compared with the third quarter of 2023, as the impact of continued lower wholesale ordering by dealers and OEMs, combined with higher discounts in certain business segments, was only partially offset by annual price increases and benefits from well-received new products. As anticipated, our Propulsion segment delivered lower sales and operating earnings versus the third quarter of 2023, but we continue to outpace the market at retail and have gained 420 basis points of U.S. outboard engine share in the quarter. Our Engine Parts and Accessories (Engine P&A) segment had another strong quarter, with record operating margins of 26%, and with both the Products and Distribution businesses contributing to margin expansion, despite slightly lower sales. The completed transition of engines parts and accessories distribution to our new, state-of-the-art facility in Brownsburg, Indiana continues to provide efficiency and delivery time benefits, enabling modest international sales growth versus the prior year quarter. As anticipated, our Navico Group segment had lower sales and operating earnings versus the third quarter of 2023 due to continued soft marine OEM order rates and retailers delaying aftermarket orders until closer to the holiday selling season, which was partially offset by slightly higher sales in the Europe, Middle East and Africa region. Our Boat segment had sales and operating earnings below the third quarter of 2023, consistent with lower planned production levels and fewer manufacturing days due to the extended summer shutdowns. Our international net sales decreased 13 percent and 12 percent in the third quarter on a GAAP and constant currency basis, respectively.
Current wording
Net sales decreased 11 percent during the first quarter of 2025 when compared with the first quarter of 2024, as the impact of continued lower wholesale ordering by dealers and OEMs and prudent pipeline management throughout the channel was only partially offset by modest annual price increases and benefits from well-received new products. Our Propulsion segment delivered sequentially improved sales and operating earnings versus the fourth quarter of 2024, although below first quarter 2024 levels, as anticipated. Sales to U.S. boat OEMs were strong as our customer builders increased production levels ahead of the primary retail season and engine pipelines remain at appropriate levels. Our Engine Parts and Accessories (Engine P&A) segment had another strong quarter, with solid year-over-year operating earnings and operating margin growth despite slightly lower sales. This primarily aftermarket-based business continues to derive its success from stable boating participation and the world's largest marine distribution network, which delivered sales growth of 2 percent through continued distribution market share gains resulting from our ability to support same day or next day deliveries to most locations in the world. Our Navico Group segment had flat sales and slightly lower operating earnings versus the first quarter of 2024 as aftermarket sales to dealers and retailers remained strong, but OEM orders were pressured. Navico Group delivered sequential sales growth versus fourth quarter 2024 as its recently launched new products continue to gain momentum and market acceptance. Our Boat segment had sales and operating earnings below the first quarter of 2024, consistent with lower planned wholesale shipments, but sales grew mid-single digits versus fourth quarter 2024 as anticipated. Our international net sales decreased 10 percent and 6 percent in the first quarter on a GAAP and constant currency basis, respectively.
Previous wording
Operating earnings in the third quarter of 2024 were $98.4 million and $125.9 million on a GAAP and As Adjusted basis, respectively. This compares to operating earnings during the third quarter of 2023 of $196.1 million and $230.1 million on a GAAP and As Adjusted basis, respectively.
Current wording
Operating earnings in the first quarter of 2025 were $56.3 million and $72.1 million on a GAAP and As Adjusted basis, respectively. This compares to operating earnings during the first quarter of 2024 of $110.6 million and $141.5 million on a GAAP and As Adjusted basis, respectively. Operating earnings were down versus prior year as a result of the impact of lower sales, lower absorption from decreased production levels, and the negative impact of changes in foreign currency exchange rates, partially offset by new product momentum, annual price increases and ongoing cost control measures throughout the enterprise.
Previous wording
Changes in Foreign Currency Rates. Percentage changes in net sales expressed in constant currency reflect the impact that changes in currency exchange rates had on comparisons of net sales. To determine this information, net sales transacted in currencies other than the U.S. dollar have been translated to U.S. dollars using the average exchange rates that were in effect during the comparative period. The percentage change in net sales expressed on a constant currency basis better reflects the changes in the underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations. Approximately 26 percent of our annual net sales are transacted in a currency other than the U.S. dollar. Our most material exposures include sales in Euros, Canadian dollars, Australian dollars, and Brazilian real.
Current wording
Changes in Foreign Currency Rates. Percentage changes in net sales expressed in constant currency reflect the impact that changes in currency exchange rates had on comparisons of net sales. To determine this information, net sales transacted in currencies other than the U.S. dollar have been translated to U.S. dollars using the average exchange rates that were in effect during the comparative period. The percentage change in net sales expressed on a constant currency basis better reflects the changes in the underlying business trends, excluding the impact of translation arising from foreign currency exchange rate fluctuations. Approximately 23 percent of our annual net sales are transacted in a currency other than the U.S. dollar. Our most material exposures include sales in Euros, Canadian dollars, Australian dollars, and Brazilian real.
Previous wording
The following table sets forth certain amounts, ratios and relationships calculated from the Condensed Consolidated Statements of Comprehensive Income for the three and nine months ended:
Current wording
The following table sets forth certain amounts, ratios and relationships calculated from the Condensed Consolidated Statements of Comprehensive Income for the three months ended:
Previous wording
The following is a reconciliation of our non-GAAP measures, adjusted operating earnings and adjusted diluted earnings per common share from continuing operations for the three and nine months ended September 28, 2024 when compared with the same prior year comparative period:
Current wording
The following is a reconciliation of our non-GAAP measures, adjusted operating earnings and adjusted diluted earnings per common share from continuing operations for the three months ended March 29, 2025 when compared with the same prior year comparative period:
Previous wording
(A) We incurred non-recurring costs related to the 2023 IT security incident during the nine months ended September 28, 2024 as well as during the three and nine months ended September 30, 2023.
Current wording
(A) We incurred non-recurring costs related to the 2023 IT security incident during the three months ended March 30, 2024.
Previous wording
Net sales decreased 20 percent during the third quarter and 19 percent during the nine months ended September 28, 2024 when compared with the same prior year periods. The components of the consolidated net sales change were as follows:
Current wording
Net sales decreased 11 percent during the first quarter when compared with the same prior year period. The components of the consolidated net sales change were as follows:
Previous wording
Gross margin decreased 170 basis points in the third quarter of 2024 when compared to the same prior year period, driven by sales-related drivers (200 bps), lower absorption from decreased production levels (100 bps), depreciation (10 bps) and foreign currency exchange-rate fluctuations (10 bps), partially offset by favorable material and labor costs (130 bps) and acquisitions (20 bps).
Current wording
Gross margin decreased 250 basis points in the first quarter of 2025 when compared to the same prior year period, driven by lower absorption from decreased production levels (240 bps), increased warranty costs (130 bps), sales-related drivers (50 bps), and foreign currency exchange-rate fluctuations (40 bps), partially offset by favorable labor costs (200 bps) and acquisitions (10 bps).
Previous wording
Selling, general and administrative expense as a percentage of net sales increased 250 basis points during the third quarter of 2024 when compared with the same prior year period, due to lower sales (300 bps), partially offset by cost control measures across the enterprise, including lower employee compensation costs associated with headcount reductions and lower variable compensation (50 bps). Research and development expense decreased in the third quarter of 2024 versus the same period in 2023.
Current wording
Selling, general and administrative expense as a percentage of net sales increased 210 basis points during the first quarter of 2025 when compared with the same prior year period due to lower sales. Research and development expense decreased in the first quarter of 2025 versus the same period in 2024.
Previous wording
We recorded Restructuring, exit and impairment charges of $12.2 million and $33.6 million during the three and nine months ended September 28, 2024, respectively. We recorded Restructuring, exit and impairment charges of $16.3 million and $39.7 million during the three and nine months ended September 30, 2023, respectively. We estimate the 2024 actions to date will result in approximately $20.0 million of annualized cost savings. Refer to Note 3 – Restructuring, Exit and Impairment Activities in the Notes to Condensed Consolidated Financial Statements for further information.
Current wording
We recorded Restructuring, exit and impairment charges of $1.1 million and $13.5 million during the three months ended March 29, 2025 and March 30, 2024 respectively. First quarter 2025 actions are not expected to result in material annualized cost savings. Refer to Note 3 – Restructuring, Exit and Impairment Activities in the Notes to Condensed Consolidated Financial Statements for further information.
Previous wording
We recorded Equity earnings of $1.6 million and $7.0 million in the three and nine months ended September 28, 2024, respectively, which were primarily related to our marine and technology-related joint ventures. This compares with Equity losses of $(17.3) million and $(12.9) million in the three and nine months ended September 30, 2023, respectively, which were primarily related to the impairment charge taken related to our investment in TN-BC Holdings LLC.
Current wording
We recorded Equity earnings of $2.2 million and $2.5 million in the three months ended March 29, 2025 and March 30, 2024, respectively, which were primarily related to our marine and technology-related joint ventures.
Previous wording
We recognized $(1.1) million and $(1.9) million of Other (expense) income, net in the three and nine months ended September 28, 2024, respectively. This compares with $6.0 million and $6.9 million of Other (expense) income, net in the three and nine months ended September 30, 2023, respectively. Other (expense) income, net primarily includes remeasurement gains and losses resulting from changes in foreign currency rates and other postretirement benefit costs.
Current wording
We recognized $1.3 million and $0.0 million of Other income, net in the three months ended March 29, 2025 and March 30, 2024, respectively. Other income, net primarily includes remeasurement gains and losses resulting from changes in foreign currency rates and other postretirement benefit costs.
Previous wording
Net interest expense increased for the three and nine months ended September 28, 2024 when compared with the same prior year period due to an increase in average daily debt outstanding, which was influenced by the timing of debt issuances. Refer to Note 12 – Debt in the Notes to Condensed Consolidated Financial Statements and Note 14 – Debt in the Notes to Consolidated Financial Statements in the 2023 Form 10-K.
Current wording
Net interest expense increased for the three months ended March 29, 2025 when compared with the same prior year period due to an increase in average daily debt outstanding, which was influenced by the timing of debt issuances. We also recognized a loss on early extinguishment of debt related to the redemption of our 2049 Notes. Refer to Note 12 – Debt in the Notes to Condensed Consolidated Financial Statements and Note 14 – Debt in the Notes to Consolidated Financial Statements in the 2024 Form 10-K.
Previous wording
We recognized an Income tax provision for the three and nine months ended September 28, 2024 of $22.6 million and $68.9 million, respectively, compared to $46.2 million and $181.5 million for the three and nine months ended September 30, 2023, respectively. The decrease in the Income tax provision for the three months ended September 28, 2024 is primarily due to lower pretax income. The decrease in the Income tax provision for the nine months ended September 28, 2024 is primarily due to the prior year intercompany sale of certain intellectual property rights and lower pretax income. We have also evaluated the effects of Pillar Two legislation and concluded that the tax effects are not material to the financial statements. Refer to Note 11 – Income Taxesin the Notes to Condensed Consolidated Financial Statements for further information.
Current wording
We recognized an Income tax provision for the three months ended March 29, 2025 of $7.9 million, compared to $18.6 million, for the three months ended March 30, 2024. The decrease in the Income tax provision for the three months ended March 29, 2025 is primarily due to lower pretax income. We have also evaluated the effects of Pillar Two legislation and concluded that the tax effects are not material to the financial statements. Refer to Note 11 – Income Taxesin the Notes to Condensed Consolidated Financial Statements for further information.
Previous wording
The effective tax rate, which is calculated as the Income tax provision as a percentage of Earnings before income taxes, was 32.3 percent and 23.8 percent for the three and nine months ended September 28, 2024, respectively. The effective tax rate for the three and nine months ended September 30, 2023 was 28.9 percent and 33.4 percent, respectively.
Current wording
The effective tax rate, which is calculated as the Income tax provision as a percentage of Earnings before income taxes, was 28.1 percent and 21.4 percent for the three months ended March 29, 2025 and March 30, 2024, respectively.
Previous wording
Due to the factors described in the preceding paragraphs, Operating earnings, Net earnings from continuing operations, and Diluted earnings per common share from continuing operations decreased during both the three and nine months ended September 28, 2024 when compared with the same prior year period.
Current wording
Due to the factors described in the preceding paragraphs, Operating earnings, Net earnings from continuing operations, and Diluted earnings per common share from continuing operations decreased during the three months ended March 29, 2025 when compared with the same prior year period.
Previous wording
The following table sets forth Propulsion segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three and nine months ended:
Current wording
The following table sets forth Propulsion segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three months ended:
Previous wording
Propulsion segment's operating earnings in the third quarter of 2024 decreased when compared to the third quarter of 2023, primarily due to the impact of lower net sales and lower absorption from declines in production, partially offset by cost control measures.
Current wording
Propulsion segment's operating earnings in the first quarter of 2025 decreased when compared to the first quarter of 2024, due to the impact of sales declines and lower absorption from decreased production levels, partially offset by cost control measures.
Previous wording
The following table sets forth Engine P&A segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three and nine months ended:
Current wording
The following table sets forth Engine P&A segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three months ended:
Previous wording
Engine P&A segment's net sales decreased in the third quarter of 2024 compared to the third quarter of 2023, due to slightly lower sales in our Product and Distribution businesses.
Current wording
Engine P&A segment's net sales decreased in the first quarter of 2025 compared to the first quarter of 2024, due to slightly lower shipments.
Previous wording
International sales were 29 percent of the Engine P&A segment's net sales in the nine months ended September 28, 2024 and increased 2 percent from the prior year on a GAAP basis. On a constant currency basis, international sales increased 3 percent in the nine months ended September 28, 2024.
Current wording
International sales were 29 percent of the Engine P&A segment's net sales in the first quarter of 2025 and decreased 10 percent from the prior year on a GAAP basis. On a constant currency basis, international sales decreased 6 percent.
Previous wording
Engine P&A segment's operating earnings in the third quarter of 2024 increased compared to the third quarter of 2023, resulting from the efficient performance of operations in Brownsburg, Indiana and cost control across the business.
Current wording
Engine P&A segment's operating earnings in the first quarter of 2025 increased compared to the first quarter of 2024, resulting from the efficient operation of the business and slightly lower cost inflation.
Previous wording
The following table sets forth Navico Group segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three and nine months ended:
Current wording
The following table sets forth Navico Group segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three months ended:
Previous wording
Navico Group segment's net sales decreased in the third quarter of 2024 compared to the third quarter of 2023, primarily driven by reduced sales to marine OEMs resulting from lower boat production levels to match retail ordering patterns, partially offset by slight international sales growth and strong new product momentum.
Current wording
Navico Group segment's net sales decreased in the first quarter of 2025 compared to the first quarter of 2024, primarily driven by reduced sales to marine and RV OEMs resulting from lower customer OEM production levels, mostly offset by strong aftermarket sales and new product momentum.
Previous wording
Navico Group segment's operating earnings in the third quarter of 2024 decreased when compared to the third quarter of 2023, as the impact from lower sales was only partially offset by lower operating expenses.
Current wording
Navico Group segment's operating earnings in the first quarter of 2025 decreased when compared to the first quarter of 2024 due to the impact from lower sales.
Previous wording
The following table sets forth Boat segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three and nine months ended:
Current wording
The following table sets forth Boat segment results and a reconciliation to our non-GAAP measure of adjusted operating earnings for the three months ended:
Previous wording
Boat segment's net sales decreased in the third quarter of 2024 compared to the third quarter of 2023, resulting from lower wholesale orders, as its channel partners continued to order cautiously, along with higher incentives and discounting, partially offset by the favorable impact of modest model-year pricing.
Current wording
Boat segment's net sales decreased in the first quarter of 2025 compared to the first quarter of 2024, resulting from anticipated cautious wholesale ordering patterns by dealers, which was only partially offset by the favorable impact of modest model-year price increases.
Previous wording
International sales were 20 percent of the Boat segment's net sales in the nine months ended September 28, 2024 and decreased 32 percent year over year on a GAAP and constant currency basis.
Current wording
International sales were 20 percent of the Boat segment's net sales in the first quarter of 2025 and decreased 20 percent from the prior year on a GAAP basis. On a constant currency basis, international sales decreased by 18 percent.
Previous wording
Boat segment's operating earnings in the third quarter of 2024 decreased when compared to the third quarter of 2023, as the impact of the net sales declines and lower absorption from the reduced production was only partially offset by pricing and continued cost control.
Current wording
Boat segment's operating earnings in the first quarter of 2025 decreased when compared to the first quarter of 2024, as the impact of the net sales declines and lower absorption from the reduced production was only partially offset by pricing and continued cost control measures.
Previous wording
The following table sets forth Corporate/Other results and a reconciliation to our non-GAAP measure of adjusted operating loss for the three and nine months ended:
Current wording
The following table sets forth Corporate/Other results and a reconciliation to our non-GAAP measure of adjusted operating loss for the three months ended:
Previous wording
The following table sets forth an analysis of free cash flow for the nine months ended:
Current wording
The following table sets forth an analysis of free cash flow for the three months ended:
Previous wording
Net cash provided by operating activities of continuing operations in the nine months ended September 28, 2024 totaled $137.5 million compared to $458.1 million in the nine months ended September 30, 2023. The decrease is primarily due to working capital and lower net earnings. Working capital is defined as Accounts and notes receivable, Inventories and Prepaid expenses and other, net of Accounts payable and Accrued expenses as presented in the Condensed Consolidated Balance Sheets, excluding the impact of acquisitions and non-cash adjustments.
Current wording
Net cash used for operating activities of continuing operations in the three months ended March 29, 2025 totaled $13.4 million compared to $148.1 million in the three months ended March 30, 2024. The improvement is primarily due to less working capital usage. Working capital is defined as Accounts and notes receivable, Inventories and Prepaid expenses and other, net of Accounts payable and Accrued expenses as presented in the Condensed Consolidated Balance Sheets, excluding the impact of acquisitions and non-cash adjustments.
Previous wording
The primary drivers of net cash provided by operating activities of continuing operations in the nine months ended September 28, 2024 was net earnings, net of non-cash items, partially offset by working capital. Accounts and notes receivable increased $11.2 million, primarily due to the timing of collections. Inventory increased $16.8 million due to lower sales and the impact of seasonal inventory build. Accounts payable decreased $166.3 million, primarily due to lower purchasing resulting from reduced production and timing of payments. Accrued expenses decreased $123.9 million, primarily driven by lower accrued variable compensation expense.
Current wording
The primary drivers of net cash used for operating activities of continuing operations in the three months ended March 29, 2025 was working capital partially offset by net earnings, net of non-cash items. Accounts and notes receivable increased $116.1 million, primarily due to the timing of collections and inventory increased $52.2 million due to seasonal inventory build.
Previous wording
Net cash used for investing activities was $154.0 million and primarily related to $137.1 million of capital expenditures and $80.9 million of purchases of marketable securities, partially offset by $82.1 million of sales or maturities of marketable securities. Our capital spending was focused on investments in new products and technologies.
Current wording
Net cash used for investing activities was $35.0 million and primarily related to $37.7 million of capital expenditures. Our capital spending was focused on investments in new products and technologies.
Previous wording
Net cash used for financing activities was $147.0 million and primarily related to payments of long-term debt including current maturities, common stock repurchases and cash dividends paid to common shareholders, partially offset by short-term and long-term debt issuances.
Current wording
Net cash provided by financing activities was $77.9 million and primarily related to proceeds from issuances of short-term debt partially offset by payments of long-term debt including current maturities, common stock repurchases and cash dividends paid to common shareholders.
Previous wording
Cash, cash equivalents and mark etable securities totaled $284.9 millionas of September 28, 2024, a decrease of $183.7 million from $468.6 million as of December 31, 2023, and a decrease of $46.8 million from $331.7 million as of September 30, 2023. Total debt as of September 28, 2024, December 31, 2023 and September 30, 2023 was $2,571.9 million, $2,430.4 million and $2,431.0 million, respectively. Our debt-to-capitalization ratio was 56 percent as of September 28, 2024, an increase from 54 percent as of both December 31, 2023 and September 30, 2023.
Current wording
Cash, cash equivalents and mark etable securities totaled $287.5 millionas of March 29, 2025, an increase of $17.7 million from $269.8 million as of December 31, 2024, and a decrease of $261.7 million from $549.2 million as of March 30, 2024. Total debt as of March 29, 2025, December 31, 2024 and March 30, 2024 was $2,484.1 million, $2,340.6 million and $2,827.3 million, respectively. Our debt-to-capitalization ratio was 57 percentas of March 29, 2025 compared to 55 percent at December 31, 2024 and 58 percent as of March 30, 2024.
Previous wording
There were no borrowings under the Revolving Credit Agreement (Credit Facility) during the nine months ended September 28, 2024 and we did not have any borrowings outstanding as of September 28, 2024. Available borrowing capacity under the Credit Facility as of September 28, 2024 totaled $747.0 million, net of $3.0 million of letters of credit outstanding. During the nine months ended September 28, 2024, the maximum amount utilized under the CP Program was $245.0 million, and as of September 28, 2024, the Company had $195.0 million of borrowings outstanding under the CP Program. Refer to Note 12 – Debt in the Notes to Condensed Consolidated Financial Statements and Note 14 - Debt in the Notes to Consolidated Financial Statements in the 2023 Form 10-K, for further details.
Current wording
There were no borrowings under the Revolving Credit Agreement (Credit Facility) during the three months ended March 29, 2025 and we did not have any borrowings outstanding as of March 29, 2025. Available borrowing capacity under the Credit Facility as of March 29, 2025 totaled $997.0 million, net of $3.0 million of letters of credit outstanding. During the three months ended March 29, 2025, the maximum amount utilized under the CP Program was $445.5 million, and as of March 29, 2025, the Company had $380.0 million of borrowings outstanding under the CP Program. Refer to Note 12 – Debt in the Notes to Condensed Consolidated Financial Statements and Note 14 - Debt in the Notes to Consolidated Financial Statements in the 2023 Form 10-K, for further details.
Previous wording
We continue to moderate our capital spending and now anticipate approximately $165 million of capital expenditures for the year. We have also revised our share repurchase plan and now anticipate share repurchases of approximately $200 million in 2024.
Current wording
We slightly moderated our expected capital spending and now anticipate approximately $150 million of capital expenditures for the year. We continue to target share repurchases of approximately $80 million in 2025.
Previous wording
There were no material changes in our environmental regulatory requirements since the filing of our 2023 Form 10-K.
Current wording
There were no material changes in our environmental regulatory requirements since the filing of our 2024 Form
Previous wording
Recent accounting pronouncements that have been adopted during the nine months ended September 28, 2024, or will be adopted in future periods, are included in Note 1 – Significant Accounting Policies in the Notes to Condensed Consolidated Financial Statements.
Current wording
Recent accounting pronouncements that have been adopted during the three months ended March 29, 2025, or will be adopted in future periods, are included in Note 1 – Significant Accounting Policies in the Notes to Condensed Consolidated Financial Statements.
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Previous report — wording carried elsewhere
Operating earnings in the nine months ended September 28, 2024 were $367.3 million and $448.2 million on a GAAP and As Adjusted basis, respectively. This compares to operating earnings during the nine months ended September 30, 2023 of $626.6 million and $727.4 million on a GAAP and As Adjusted basis, respectively.
Previous report — wording carried elsewhere
Net cash used for financing activities was $402.9 million and primarily related to common stock repurchases, cash dividends paid to common stockholders and payments of long-term debt including current maturities.