x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Wisconsin
|
|
39-0182330
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
¨
|
Class
|
|
Outstanding at January 20, 2017
|
COMMON STOCK, par value $0.01 per share
|
|
42,806,705 Shares
|
|
|
Page No.
|
|
|
|
PART I – FINANCIAL INFORMATION
|
|
|
|
|
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Item 1.
|
|
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|
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||
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Item 2.
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||
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Item 3.
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||
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Item 4.
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||
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PART II – OTHER INFORMATION
|
|
|
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Item 1.
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||
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Item 1A.
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||
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Item 2.
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||
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Item 6.
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||
|
|
|
|
|
|
|
|
|
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|
||||
|
|
January 1,
2017 |
|
July 3,
2016 |
||||
CURRENT ASSETS:
|
|
|
|
|
||||
Cash and Cash Equivalents
|
|
$
|
47,327
|
|
|
$
|
89,839
|
|
Accounts Receivable, Net
|
|
222,768
|
|
|
191,678
|
|
||
Inventories -
|
|
|
|
|
||||
Finished Products
|
|
359,490
|
|
|
271,718
|
|
||
Work in Process
|
|
119,638
|
|
|
104,468
|
|
||
Raw Materials
|
|
6,723
|
|
|
9,879
|
|
||
Total Inventories
|
|
485,851
|
|
|
386,065
|
|
||
Deferred Income Tax Asset
|
|
43,150
|
|
|
44,736
|
|
||
Prepaid Expenses and Other Current Assets
|
|
36,010
|
|
|
28,419
|
|
||
Total Current Assets
|
|
835,106
|
|
|
740,737
|
|
||
OTHER ASSETS:
|
|
|
|
|
||||
Goodwill
|
|
161,287
|
|
|
161,568
|
|
||
Investments
|
|
48,298
|
|
|
52,757
|
|
||
Other Intangible Assets, Net
|
|
102,324
|
|
|
104,164
|
|
||
Long-Term Deferred Income Tax Asset
|
|
44,961
|
|
|
53,467
|
|
||
Other Long-Term Assets, Net
|
|
20,171
|
|
|
17,701
|
|
||
Total Other Assets
|
|
377,041
|
|
|
389,657
|
|
||
PLANT AND EQUIPMENT:
|
|
|
|
|
||||
Cost
|
|
1,077,452
|
|
|
1,056,893
|
|
||
Less - Accumulated Depreciation
|
|
746,289
|
|
|
730,620
|
|
||
Total Plant and Equipment, Net
|
|
331,163
|
|
|
326,273
|
|
||
TOTAL ASSETS
|
|
$
|
1,543,310
|
|
|
$
|
1,456,667
|
|
|
|
|
|
|
||||
|
|
January 1,
2017 |
|
July 3,
2016 |
||||
CURRENT LIABILITIES:
|
|
|
|
|
||||
Accounts Payable
|
|
$
|
186,291
|
|
|
$
|
181,152
|
|
Short-Term Debt
|
|
132,100
|
|
|
—
|
|
||
Accrued Liabilities
|
|
127,411
|
|
|
137,149
|
|
||
Total Current Liabilities
|
|
445,802
|
|
|
318,301
|
|
||
OTHER LIABILITIES:
|
|
|
|
|
||||
Accrued Pension Cost
|
|
301,551
|
|
|
310,378
|
|
||
Accrued Employee Benefits
|
|
22,819
|
|
|
23,483
|
|
||
Accrued Postretirement Health Care Obligation
|
|
33,658
|
|
|
38,441
|
|
||
Other Long-Term Liabilities
|
|
43,797
|
|
|
51,099
|
|
||
Long-Term Debt
|
|
221,570
|
|
|
221,339
|
|
||
Total Other Liabilities
|
|
623,395
|
|
|
644,740
|
|
||
SHAREHOLDERS’ INVESTMENT:
|
|
|
|
|
||||
Common Stock - Authorized 120,000 shares, $.01 par value, issued 57,854 shares
|
|
579
|
|
|
579
|
|
||
Additional Paid-In Capital
|
|
68,144
|
|
|
72,020
|
|
||
Retained Earnings
|
|
1,063,500
|
|
|
1,074,437
|
|
||
Accumulated Other Comprehensive Loss
|
|
(336,952
|
)
|
|
(338,450
|
)
|
||
Treasury Stock at cost, 15,047 and 14,675 shares, respectively
|
|
(321,158
|
)
|
|
(314,960
|
)
|
||
Total Shareholders’ Investment
|
|
474,113
|
|
|
493,626
|
|
||
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT
|
|
$
|
1,543,310
|
|
|
$
|
1,456,667
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
NET SALES
|
|
$
|
428,236
|
|
|
$
|
413,379
|
|
|
$
|
715,034
|
|
|
$
|
702,837
|
|
COST OF GOODS SOLD
|
|
332,830
|
|
|
319,036
|
|
|
567,106
|
|
|
556,323
|
|
||||
RESTRUCTURING CHARGES
|
|
—
|
|
|
2,647
|
|
|
—
|
|
|
5,106
|
|
||||
Gross Profit
|
|
95,406
|
|
|
91,696
|
|
|
147,928
|
|
|
141,408
|
|
||||
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
|
|
73,032
|
|
|
72,559
|
|
|
145,095
|
|
|
144,693
|
|
||||
RESTRUCTURING CHARGES
|
|
—
|
|
|
372
|
|
|
—
|
|
|
1,286
|
|
||||
EQUITY IN EARNINGS OF UNCONSOLIDATED AFFILIATES
|
|
3,011
|
|
|
—
|
|
|
6,239
|
|
|
—
|
|
||||
Income (Loss) from Operations
|
|
25,385
|
|
|
18,765
|
|
|
9,072
|
|
|
(4,571
|
)
|
||||
INTEREST EXPENSE
|
|
(5,133
|
)
|
|
(5,013
|
)
|
|
(9,638
|
)
|
|
(9,549
|
)
|
||||
OTHER INCOME, Net
|
|
381
|
|
|
2,383
|
|
|
836
|
|
|
3,838
|
|
||||
Income (Loss) Before Income Taxes
|
|
20,633
|
|
|
16,135
|
|
|
270
|
|
|
(10,282
|
)
|
||||
PROVISION (CREDIT) FOR INCOME TAXES
|
|
5,382
|
|
|
3,575
|
|
|
(833
|
)
|
|
(4,671
|
)
|
||||
NET INCOME (LOSS)
|
|
$
|
15,251
|
|
|
$
|
12,560
|
|
|
$
|
1,103
|
|
|
$
|
(5,611
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
EARNINGS (LOSS) PER SHARE
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
0.02
|
|
|
$
|
(0.13
|
)
|
Diluted
|
|
0.35
|
|
|
0.28
|
|
|
0.02
|
|
|
(0.13
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING
|
|
|
|
|
|
|
|
|
||||||||
Basic
|
|
42,081
|
|
|
43,374
|
|
|
42,287
|
|
|
43,426
|
|
||||
Diluted
|
|
42,142
|
|
|
43,470
|
|
|
42,337
|
|
|
43,426
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
DIVIDENDS PER SHARE
|
|
$
|
0.140
|
|
|
$
|
0.135
|
|
|
$
|
0.280
|
|
|
$
|
0.270
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
Net Income (Loss)
|
|
$
|
15,251
|
|
|
$
|
12,560
|
|
|
$
|
1,103
|
|
|
$
|
(5,611
|
)
|
Other Comprehensive Income (Loss):
|
|
|
|
|
|
|
|
|
||||||||
Cumulative Translation Adjustments
|
|
(8,051
|
)
|
|
(1,710
|
)
|
|
(6,450
|
)
|
|
(14,183
|
)
|
||||
Unrealized Gain (Loss) on Derivative Instruments, Net of Tax
|
|
2,815
|
|
|
(950
|
)
|
|
2,768
|
|
|
(1,301
|
)
|
||||
Unrecognized Pension & Postretirement Obligation, Net of Tax
|
|
2,620
|
|
|
2,360
|
|
|
5,180
|
|
|
4,553
|
|
||||
Gain on Marketable Securities, Net of Tax
|
|
—
|
|
|
2,363
|
|
|
—
|
|
|
2,363
|
|
||||
Other Comprehensive Income (Loss)
|
|
(2,616
|
)
|
|
2,063
|
|
|
1,498
|
|
|
(8,568
|
)
|
||||
Total Comprehensive Income (Loss)
|
|
$
|
12,635
|
|
|
$
|
14,623
|
|
|
$
|
2,601
|
|
|
$
|
(14,179
|
)
|
|
|
Six Months Ended
|
||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
||||
Net Income (Loss)
|
|
$
|
1,103
|
|
|
$
|
(5,611
|
)
|
Adjustments to Reconcile Net Income (Loss) to Net Cash Used in Operating Activities:
|
|
|
|
|
||||
Depreciation and Amortization
|
|
28,156
|
|
|
26,856
|
|
||
Stock Compensation Expense
|
|
2,826
|
|
|
3,204
|
|
||
Loss on Disposition of Plant and Equipment
|
|
331
|
|
|
249
|
|
||
Provision for Deferred Income Taxes
|
|
4,315
|
|
|
2,435
|
|
||
Equity in Earnings of Unconsolidated Affiliates
|
|
(6,239
|
)
|
|
(3,187
|
)
|
||
Dividends Received from Unconsolidated Affiliates
|
|
8,186
|
|
|
4,436
|
|
||
Non-Cash Restructuring Charges
|
|
—
|
|
|
1,611
|
|
||
Change in Operating Assets and Liabilities:
|
|
|
|
|
||||
Accounts Receivable
|
|
(36,077
|
)
|
|
28,924
|
|
||
Inventories
|
|
(99,787
|
)
|
|
(127,537
|
)
|
||
Other Current Assets
|
|
1,203
|
|
|
3,649
|
|
||
Accounts Payable, Accrued Liabilities and Income Taxes
|
|
(25,089
|
)
|
|
(25,552
|
)
|
||
Other, Net
|
|
(7,240
|
)
|
|
(8,112
|
)
|
||
Net Cash Used in Operating Activities
|
|
(128,312
|
)
|
|
(98,635
|
)
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
||||
Capital Expenditures
|
|
(31,163
|
)
|
|
(25,843
|
)
|
||
Proceeds Received on Disposition of Plant and Equipment
|
|
1,009
|
|
|
997
|
|
||
Cash Paid for Acquisition, Net of Cash Acquired
|
|
—
|
|
|
(2,174
|
)
|
||
Proceeds on Sale of Investment in Marketable Securities
|
|
3,343
|
|
|
—
|
|
||
Net Cash Used in Investing Activities
|
|
(26,811
|
)
|
|
(27,020
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
||||
Net Borrowings on Revolver
|
|
132,100
|
|
|
93,243
|
|
||
Treasury Stock Purchases
|
|
(15,153
|
)
|
|
(24,903
|
)
|
||
Payment of Acquisition Contingent Liability
|
|
(813
|
)
|
|
—
|
|
||
Stock Option Exercise Proceeds and Tax Benefits
|
|
4,243
|
|
|
7,230
|
|
||
Cash Dividends Paid
|
|
(6,039
|
)
|
|
(5,992
|
)
|
||
Net Cash Provided by Financing Activities
|
|
114,338
|
|
|
69,578
|
|
||
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS
|
|
(1,727
|
)
|
|
(1,946
|
)
|
||
NET DECREASE IN CASH AND CASH EQUIVALENTS
|
|
(42,512
|
)
|
|
(58,023
|
)
|
||
CASH AND CASH EQUIVALENTS, Beginning
|
|
89,839
|
|
|
118,390
|
|
||
CASH AND CASH EQUIVALENTS, Ending
|
|
$
|
47,327
|
|
|
$
|
60,367
|
|
|
|
Three Months Ended January 1, 2017
|
||||||||||||||
|
|
Cumulative Translation Adjustments
|
|
Derivative Financial Instruments
|
|
Pension and Postretirement Benefit Plans
|
|
Total
|
||||||||
Beginning Balance
|
|
$
|
(22,262
|
)
|
|
$
|
(1,599
|
)
|
|
$
|
(310,475
|
)
|
|
$
|
(334,336
|
)
|
Other Comprehensive Income (Loss) Before Reclassification
|
|
(8,051
|
)
|
|
4,149
|
|
|
—
|
|
|
(3,902
|
)
|
||||
Income Tax Benefit (Expense)
|
|
—
|
|
|
(1,556
|
)
|
|
—
|
|
|
(1,556
|
)
|
||||
Net Other Comprehensive Income (Loss) Before Reclassifications
|
|
(8,051
|
)
|
|
2,593
|
|
|
—
|
|
|
(5,458
|
)
|
||||
Reclassifications:
|
|
|
|
|
|
|
|
|
|
|||||||
Realized (Gains) Losses - Foreign Currency Contracts (1)
|
|
—
|
|
|
18
|
|
|
—
|
|
|
18
|
|
||||
Realized (Gains) Losses - Commodity Contracts (1)
|
|
—
|
|
|
120
|
|
|
—
|
|
|
120
|
|
||||
Realized (Gains) Losses - Interest Rate Swaps (1)
|
|
—
|
|
|
217
|
|
|
—
|
|
|
217
|
|
||||
Amortization of Prior Service Costs (Credits) (2)
|
|
—
|
|
|
—
|
|
|
(618
|
)
|
|
(618
|
)
|
||||
Amortization of Actuarial Losses (2)
|
|
—
|
|
|
—
|
|
|
4,813
|
|
|
4,813
|
|
||||
Total Reclassifications Before Tax
|
|
—
|
|
|
355
|
|
|
4,195
|
|
|
4,550
|
|
||||
Income Tax Expense (Benefit)
|
|
—
|
|
|
(133
|
)
|
|
(1,575
|
)
|
|
(1,708
|
)
|
||||
Net Reclassifications
|
|
—
|
|
|
222
|
|
|
2,620
|
|
|
2,842
|
|
||||
Other Comprehensive Income (Loss)
|
|
(8,051
|
)
|
|
2,815
|
|
|
2,620
|
|
|
(2,616
|
)
|
||||
Ending Balance
|
|
$
|
(30,313
|
)
|
|
$
|
1,216
|
|
|
$
|
(307,855
|
)
|
|
$
|
(336,952
|
)
|
|
|
Three Months Ended December 27, 2015
|
||||||||||||||||||
|
|
Cumulative Translation Adjustments
|
|
Derivative Financial Instruments
|
|
Pension and Postretirement Benefit Plans
|
|
Marketable Securities
|
|
Total
|
||||||||||
Beginning Balance
|
|
$
|
(31,590
|
)
|
|
$
|
861
|
|
|
$
|
(259,012
|
)
|
|
$
|
—
|
|
|
$
|
(289,741
|
)
|
Other Comprehensive Income (Loss) Before Reclassification
|
|
(1,710
|
)
|
|
(6
|
)
|
|
—
|
|
|
3,780
|
|
|
2,064
|
|
|||||
Income Tax Benefit (Expense)
|
|
—
|
|
|
2
|
|
|
—
|
|
|
(1,417
|
)
|
|
(1,415
|
)
|
|||||
Net Other Comprehensive Income (Loss) Before Reclassifications
|
|
(1,710
|
)
|
|
(4
|
)
|
|
—
|
|
|
2,363
|
|
|
649
|
|
|||||
Reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Realized (Gains) Losses - Foreign Currency Contracts (1)
|
|
—
|
|
|
(2,073
|
)
|
|
—
|
|
|
—
|
|
|
(2,073
|
)
|
|||||
Realized (Gains) Losses - Commodity Contracts (1)
|
|
—
|
|
|
260
|
|
|
—
|
|
|
—
|
|
|
260
|
|
|||||
Realized (Gains) Losses - Interest Rate Swaps (1)
|
|
—
|
|
|
298
|
|
|
—
|
|
|
—
|
|
|
298
|
|
|||||
Amortization of Prior Service Costs (Credits) (2)
|
|
—
|
|
|
—
|
|
|
(619
|
)
|
|
—
|
|
|
(619
|
)
|
|||||
Amortization of Actuarial Losses (2)
|
|
—
|
|
|
—
|
|
|
4,397
|
|
|
—
|
|
|
4,397
|
|
|||||
Total Reclassifications Before Tax
|
|
—
|
|
|
(1,515
|
)
|
|
3,778
|
|
|
—
|
|
|
2,263
|
|
|||||
Income Tax Expense (Benefit)
|
|
—
|
|
|
569
|
|
|
(1,418
|
)
|
|
—
|
|
|
(849
|
)
|
|||||
Net Reclassifications
|
|
—
|
|
|
(946
|
)
|
|
2,360
|
|
|
—
|
|
|
1,414
|
|
|||||
Other Comprehensive Income (Loss)
|
|
(1,710
|
)
|
|
(950
|
)
|
|
2,360
|
|
|
2,363
|
|
|
2,063
|
|
|||||
Ending Balance
|
|
$
|
(33,300
|
)
|
|
$
|
(89
|
)
|
|
$
|
(256,652
|
)
|
|
$
|
2,363
|
|
|
$
|
(287,678
|
)
|
|
|
Six Months Ended January 1, 2017
|
||||||||||||||
|
|
Cumulative Translation Adjustments
|
|
Derivative Financial Instruments
|
|
Pension and Postretirement Benefit Plans
|
|
Total
|
||||||||
Beginning Balance
|
|
$
|
(23,863
|
)
|
|
$
|
(1,552
|
)
|
|
$
|
(313,035
|
)
|
|
$
|
(338,450
|
)
|
Other Comprehensive Income (Loss) Before Reclassification
|
|
(6,450
|
)
|
|
3,832
|
|
|
—
|
|
|
(2,618
|
)
|
||||
Income Tax Benefit (Expense)
|
|
—
|
|
|
(1,436
|
)
|
|
—
|
|
|
(1,436
|
)
|
||||
Net Other Comprehensive Income (Loss) Before Reclassifications
|
|
(6,450
|
)
|
|
2,396
|
|
|
—
|
|
|
(4,054
|
)
|
||||
Reclassifications:
|
|
|
|
|
|
|
|
|
|
|||||||
Realized (Gains) Losses - Foreign Currency Contracts (1)
|
|
—
|
|
|
(53
|
)
|
|
—
|
|
|
(53
|
)
|
||||
Realized (Gains) Losses - Commodity Contracts (1)
|
|
—
|
|
|
200
|
|
|
—
|
|
|
200
|
|
||||
Realized (Gains) Losses - Interest Rate Swaps (1)
|
|
—
|
|
|
449
|
|
|
—
|
|
|
449
|
|
||||
Amortization of Prior Service Costs (Credits) (2)
|
|
—
|
|
|
—
|
|
|
(1,237
|
)
|
|
(1,237
|
)
|
||||
Amortization of Actuarial Losses (2)
|
|
—
|
|
|
—
|
|
|
9,527
|
|
|
9,527
|
|
||||
Total Reclassifications Before Tax
|
|
—
|
|
|
596
|
|
|
8,290
|
|
|
8,886
|
|
||||
Income Tax Expense (Benefit)
|
|
—
|
|
|
(224
|
)
|
|
(3,110
|
)
|
|
(3,334
|
)
|
||||
Net Reclassifications
|
|
—
|
|
|
372
|
|
|
5,180
|
|
|
5,552
|
|
||||
Other Comprehensive Income (Loss)
|
|
(6,450
|
)
|
|
2,768
|
|
|
5,180
|
|
|
1,498
|
|
||||
Ending Balance
|
|
$
|
(30,313
|
)
|
|
$
|
1,216
|
|
|
$
|
(307,855
|
)
|
|
$
|
(336,952
|
)
|
|
|
Six Months Ended December 27, 2015
|
||||||||||||||||||
|
|
Cumulative Translation Adjustments
|
|
Derivative Financial Instruments
|
|
Pension and Postretirement Benefit Plans
|
|
Marketable Securities
|
|
Total
|
||||||||||
Beginning Balance
|
|
$
|
(19,117
|
)
|
|
$
|
1,212
|
|
|
$
|
(261,205
|
)
|
|
$
|
—
|
|
|
$
|
(279,110
|
)
|
Other Comprehensive Income (Loss) Before Reclassification
|
|
(14,183
|
)
|
|
2,170
|
|
|
—
|
|
|
3,780
|
|
|
(8,233
|
)
|
|||||
Income Tax Benefit (Expense)
|
|
—
|
|
|
(814
|
)
|
|
—
|
|
|
(1,417
|
)
|
|
(2,231
|
)
|
|||||
Net Other Comprehensive Income (Loss) Before Reclassifications
|
|
(14,183
|
)
|
|
1,356
|
|
|
—
|
|
|
2,363
|
|
|
(10,464
|
)
|
|||||
Reclassifications:
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Realized (Gains) Losses - Foreign Currency Contracts (1)
|
|
—
|
|
|
(5,244
|
)
|
|
—
|
|
|
—
|
|
|
(5,244
|
)
|
|||||
Realized (Gains) Losses - Commodity Contracts (1)
|
|
—
|
|
|
392
|
|
|
—
|
|
|
—
|
|
|
392
|
|
|||||
Realized (Gains) Losses - Interest Rate Swaps (1)
|
|
—
|
|
|
600
|
|
|
—
|
|
|
—
|
|
|
600
|
|
|||||
Amortization of Prior Service Costs (Credits) (2)
|
|
—
|
|
|
—
|
|
|
(1,239
|
)
|
|
—
|
|
|
(1,239
|
)
|
|||||
Amortization of Actuarial Losses (2)
|
|
—
|
|
|
—
|
|
|
8,526
|
|
|
—
|
|
|
8,526
|
|
|||||
Total Reclassifications Before Tax
|
|
—
|
|
|
(4,252
|
)
|
|
7,287
|
|
|
—
|
|
|
3,035
|
|
|||||
Income Tax Expense (Benefit)
|
|
—
|
|
|
1,595
|
|
|
(2,734
|
)
|
|
—
|
|
|
(1,139
|
)
|
|||||
Net Reclassifications
|
|
—
|
|
|
(2,657
|
)
|
|
4,553
|
|
|
—
|
|
|
1,896
|
|
|||||
Other Comprehensive Income (Loss)
|
|
(14,183
|
)
|
|
(1,301
|
)
|
|
4,553
|
|
|
2,363
|
|
|
(8,568
|
)
|
|||||
Ending Balance
|
|
$
|
(33,300
|
)
|
|
$
|
(89
|
)
|
|
$
|
(256,652
|
)
|
|
$
|
2,363
|
|
|
$
|
(287,678
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
Net Income (Loss)
|
|
$
|
15,251
|
|
|
$
|
12,560
|
|
|
$
|
1,103
|
|
|
$
|
(5,611
|
)
|
Less: Allocation to Participating Securities
|
|
(332
|
)
|
|
(255
|
)
|
|
(225
|
)
|
|
(217
|
)
|
||||
Net Income (Loss) Available to Common Shareholders
|
|
$
|
14,919
|
|
|
$
|
12,305
|
|
|
$
|
878
|
|
|
$
|
(5,828
|
)
|
Average Shares of Common Stock Outstanding
|
|
42,081
|
|
|
43,374
|
|
|
42,287
|
|
|
43,426
|
|
||||
Diluted Average Shares Outstanding
|
|
42,142
|
|
|
43,470
|
|
|
42,337
|
|
|
43,426
|
|
||||
Basic Earnings (Loss) Per Share
|
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
0.02
|
|
|
$
|
(0.13
|
)
|
Diluted Earnings (Loss) Per Share
|
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
0.02
|
|
|
$
|
(0.13
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
Options to Purchase Shares of Common Stock (in thousands)
|
|
408
|
|
|
1,365
|
|
|
408
|
|
|
408
|
|
||||
Weighted Average Exercise Price of Options Excluded
|
|
$
|
20.82
|
|
|
$
|
19.43
|
|
|
$
|
20.82
|
|
|
$
|
20.82
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
Results of Operations:
|
|
|
|
|
|
|
|
|
||||||||
Sales
|
|
$
|
74,487
|
|
|
$
|
60,274
|
|
|
$
|
150,748
|
|
|
$
|
121,763
|
|
Cost of Goods Sold
|
|
55,097
|
|
|
47,066
|
|
|
113,408
|
|
|
95,024
|
|
||||
Gross Profit
|
|
$
|
19,390
|
|
|
$
|
13,208
|
|
|
$
|
37,340
|
|
|
$
|
26,739
|
|
Net Income
|
|
$
|
5,541
|
|
|
$
|
2,900
|
|
|
$
|
8,940
|
|
|
$
|
7,476
|
|
|
|
January 1,
2017 |
|
July 3,
2016 |
||||
Financial Position:
|
|
|
|
|
||||
Assets:
|
|
|
|
|
||||
Current Assets
|
|
$
|
131,918
|
|
|
$
|
139,673
|
|
Noncurrent Assets
|
|
57,449
|
|
|
59,837
|
|
||
|
|
189,367
|
|
|
199,510
|
|
||
Liabilities:
|
|
|
|
|
||||
Current Liabilities
|
|
$
|
45,436
|
|
|
$
|
43,442
|
|
Noncurrent Liabilities
|
|
28,566
|
|
|
29,178
|
|
||
|
|
74,002
|
|
|
72,620
|
|
||
Equity
|
|
$
|
115,365
|
|
|
$
|
126,890
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
|
Three Months Ended
|
|
Three Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
Components of Net Periodic Expense (Income):
|
|
|
|
|
|
|
|
|
||||||||
Service Cost
|
|
$
|
1,652
|
|
|
$
|
909
|
|
|
$
|
32
|
|
|
$
|
55
|
|
Interest Cost on Projected Benefit Obligation
|
|
10,832
|
|
|
13,013
|
|
|
597
|
|
|
813
|
|
||||
Expected Return on Plan Assets
|
|
(16,095
|
)
|
|
(17,774
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of:
|
|
|
|
|
|
|
|
|
||||||||
Prior Service Cost (Credit)
|
|
45
|
|
|
45
|
|
|
(663
|
)
|
|
(664
|
)
|
||||
Actuarial Loss
|
|
4,276
|
|
|
3,332
|
|
|
661
|
|
|
1,065
|
|
||||
Net Periodic Expense (Income)
|
|
$
|
710
|
|
|
$
|
(475
|
)
|
|
$
|
627
|
|
|
$
|
1,269
|
|
|
|
Pension Benefits
|
|
Other Postretirement Benefits
|
||||||||||||
|
|
Six Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
Components of Net Periodic Expense (Income):
|
|
|
|
|
|
|
|
|
||||||||
Service Cost
|
|
$
|
3,379
|
|
|
$
|
1,766
|
|
|
$
|
95
|
|
|
$
|
131
|
|
Interest Cost on Projected Benefit Obligation
|
|
21,678
|
|
|
26,055
|
|
|
1,191
|
|
|
1,622
|
|
||||
Expected Return on Plan Assets
|
|
(32,213
|
)
|
|
(35,601
|
)
|
|
—
|
|
|
—
|
|
||||
Amortization of:
|
|
|
|
|
|
|
|
|
||||||||
Prior Service Cost (Credit)
|
|
90
|
|
|
90
|
|
|
(1,327
|
)
|
|
(1,329
|
)
|
||||
Actuarial Loss
|
|
8,479
|
|
|
6,504
|
|
|
1,398
|
|
|
2,022
|
|
||||
Net Periodic Expense (Income)
|
|
$
|
1,413
|
|
|
$
|
(1,186
|
)
|
|
$
|
1,357
|
|
|
$
|
2,446
|
|
Contract
|
|
Notional Amount
|
||||||
|
|
|
|
January 1,
2017 |
|
July 3,
2016 |
||
Interest Rate:
|
|
|
|
|
|
|
||
LIBOR Interest Rate (U.S. Dollars)
|
|
Fixed
|
|
157,500
|
|
|
145,000
|
|
Foreign Currency:
|
|
|
|
|
|
|
||
Australian Dollar
|
|
Sell
|
|
37,058
|
|
|
39,935
|
|
Brazilian Real
|
|
Buy
|
|
26,066
|
|
|
16,436
|
|
Canadian Dollar
|
|
Sell
|
|
14,180
|
|
|
8,675
|
|
Chinese Renminbi
|
|
Buy
|
|
141,025
|
|
|
171,475
|
|
Euro
|
|
Sell
|
|
48,650
|
|
|
41,730
|
|
Japanese Yen
|
|
Buy
|
|
1,500,000
|
|
|
587,000
|
|
Mexican Peso
|
|
Sell
|
|
—
|
|
|
3,500
|
|
Commodity:
|
|
|
|
|
|
|
||
Natural Gas (Therms)
|
|
Buy
|
|
10,022
|
|
|
11,771
|
|
Balance Sheet Location
|
|
Asset (Liability) Fair Value
|
||||||
|
|
January 1,
2017 |
|
July 3,
2016 |
||||
Interest rate contracts
|
|
|
|
|
||||
Other Long-Term Assets
|
|
$
|
2,080
|
|
|
$
|
—
|
|
Accrued Liabilities
|
|
(280
|
)
|
|
—
|
|
||
Other Long-Term Liabilities
|
|
(84
|
)
|
|
(1,367
|
)
|
||
Foreign currency contracts
|
|
|
|
|
||||
Other Current Assets
|
|
4,615
|
|
|
1,356
|
|
||
Other Long-Term Assets
|
|
192
|
|
|
2
|
|
||
Accrued Liabilities
|
|
(2,932
|
)
|
|
(2,601
|
)
|
||
Other Long-Term Liabilities
|
|
(256
|
)
|
|
(185
|
)
|
||
Commodity contracts
|
|
|
|
|
||||
Other Current Assets
|
|
222
|
|
|
—
|
|
||
Other Long-Term Assets
|
|
107
|
|
|
64
|
|
||
Accrued Liabilities
|
|
—
|
|
|
(190
|
)
|
||
Other Long-Term Liabilities
|
|
(12
|
)
|
|
(16
|
)
|
||
|
|
$
|
3,652
|
|
|
$
|
(2,937
|
)
|
|
|
Three Months Ended January 1, 2017
|
||||||||||||
|
|
Amount of Gain (Loss)
Recognized in Other
Comprehensive Income
(Loss) on Derivatives, Net of
Taxes (Effective
Portion)
|
|
Classification of
Gain (Loss)
|
|
Amount of Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
|
|
Recognized in
Earnings
(Ineffective Portion)
|
||||||
Interest rate contracts
|
|
$
|
1,565
|
|
|
Net Sales
|
|
$
|
(217
|
)
|
|
$
|
—
|
|
Foreign currency contracts - sell
|
|
2,079
|
|
|
Net Sales
|
|
706
|
|
|
—
|
|
|||
Foreign currency contracts - buy
|
|
(1,169
|
)
|
|
Cost of Goods Sold
|
|
(724
|
)
|
|
—
|
|
|||
Commodity contracts
|
|
340
|
|
|
Cost of Goods Sold
|
|
(120
|
)
|
|
—
|
|
|||
|
|
$
|
2,815
|
|
|
|
|
$
|
(355
|
)
|
|
$
|
—
|
|
|
|
Three Months Ended December 27, 2015
|
||||||||||||
|
|
Amount of Gain (Loss)
Recognized in Other
Comprehensive Income
(Loss) on Derivatives, Net of
Taxes (Effective
Portion)
|
|
Classification of
Gain (Loss)
|
|
Amount of Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
|
|
Recognized in
Earnings
(Ineffective Portion)
|
||||||
Interest rate contracts
|
|
$
|
329
|
|
|
Net Sales
|
|
$
|
(298
|
)
|
|
$
|
—
|
|
Foreign currency contracts - sell
|
|
(721
|
)
|
|
Net Sales
|
|
2,231
|
|
|
—
|
|
|||
Foreign currency contracts - buy
|
|
(324
|
)
|
|
Cost of Goods Sold
|
|
(158
|
)
|
|
—
|
|
|||
Commodity contracts
|
|
(234
|
)
|
|
Cost of Goods Sold
|
|
(260
|
)
|
|
—
|
|
|||
|
|
$
|
(950
|
)
|
|
|
|
$
|
1,515
|
|
|
$
|
—
|
|
|
|
Six Months Ended January 1, 2017
|
||||||||||||
|
|
Amount of Gain (Loss)
Recognized in Other
Comprehensive Income
(Loss) on Derivatives, Net of
Taxes (Effective
Portion)
|
|
Classification of
Gain (Loss)
|
|
Amount of Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
|
|
Recognized in
Earnings
(Ineffective Portion)
|
||||||
Interest rate contracts
|
|
$
|
1,929
|
|
|
Net Sales
|
|
$
|
(449
|
)
|
|
$
|
—
|
|
Foreign currency contracts - sell
|
|
1,953
|
|
|
Net Sales
|
|
400
|
|
|
—
|
|
|||
Foreign currency contracts - buy
|
|
(1,401
|
)
|
|
Cost of Goods Sold
|
|
(347
|
)
|
|
—
|
|
|||
Commodity contracts
|
|
287
|
|
|
Cost of Goods Sold
|
|
(200
|
)
|
|
—
|
|
|||
|
|
$
|
2,768
|
|
|
|
|
$
|
(596
|
)
|
|
$
|
—
|
|
|
|
Six Months Ended December 27, 2015
|
||||||||||||
|
|
Amount of Gain (Loss)
Recognized in Other
Comprehensive Income
(Loss) on Derivatives, Net of
Taxes (Effective
Portion)
|
|
Classification of
Gain (Loss)
|
|
Amount of Gain (Loss)
Reclassified from
AOCI into Income
(Effective Portion)
|
|
Recognized in
Earnings
(Ineffective Portion)
|
||||||
Interest rate contracts
|
|
$
|
60
|
|
|
Net Sales
|
|
$
|
(600
|
)
|
|
$
|
—
|
|
Foreign currency contracts - sell
|
|
(331
|
)
|
|
Net Sales
|
|
5,538
|
|
|
—
|
|
|||
Foreign currency contracts - buy
|
|
(690
|
)
|
|
Cost of Goods Sold
|
|
(294
|
)
|
|
—
|
|
|||
Commodity contracts
|
|
(340
|
)
|
|
Cost of Goods Sold
|
|
(392
|
)
|
|
—
|
|
|||
|
|
$
|
(1,301
|
)
|
|
|
|
$
|
4,252
|
|
|
$
|
—
|
|
|
|
|
|
Fair Value Measurements Using
|
||||||||||||
|
|
January 1,
2017 |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
$
|
7,216
|
|
|
$
|
—
|
|
|
$
|
7,216
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
$
|
3,564
|
|
|
$
|
—
|
|
|
$
|
3,564
|
|
|
$
|
—
|
|
|
|
July 3,
2016 |
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Assets:
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
$
|
1,422
|
|
|
$
|
—
|
|
|
$
|
1,422
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
|
$
|
4,359
|
|
|
$
|
—
|
|
|
$
|
4,359
|
|
|
$
|
—
|
|
|
|
Six Months Ended
|
||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
||||
Beginning Balance
|
|
$
|
44,367
|
|
|
$
|
48,006
|
|
Payments
|
|
(14,754
|
)
|
|
(15,301
|
)
|
||
Provision for Current Year Warranties
|
|
10,569
|
|
|
12,161
|
|
||
Changes in Estimates
|
|
(625
|
)
|
|
(45
|
)
|
||
Ending Balance
|
|
$
|
39,557
|
|
|
$
|
44,821
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
NET SALES:
|
|
|
|
|
|
|
|
|
||||||||
Engines
|
|
$
|
260,737
|
|
|
$
|
262,007
|
|
|
$
|
415,235
|
|
|
$
|
412,090
|
|
Products
|
|
190,701
|
|
|
172,497
|
|
|
341,497
|
|
|
335,038
|
|
||||
Inter-Segment Eliminations
|
|
(23,202
|
)
|
|
(21,125
|
)
|
|
(41,698
|
)
|
|
(44,291
|
)
|
||||
Total*
|
|
$
|
428,236
|
|
|
$
|
413,379
|
|
|
$
|
715,034
|
|
|
$
|
702,837
|
|
* International sales included in net sales based on product shipment destination
|
|
$
|
158,727
|
|
|
$
|
152,676
|
|
|
$
|
268,614
|
|
|
$
|
244,216
|
|
GROSS PROFIT:
|
|
|
|
|
|
|
|
|
||||||||
Engines
|
|
$
|
61,573
|
|
|
$
|
65,635
|
|
|
$
|
92,559
|
|
|
$
|
89,411
|
|
Products
|
|
33,178
|
|
|
26,744
|
|
|
56,129
|
|
|
53,888
|
|
||||
Inter-Segment Eliminations
|
|
655
|
|
|
(683
|
)
|
|
(760
|
)
|
|
(1,891
|
)
|
||||
Total
|
|
$
|
95,406
|
|
|
$
|
91,696
|
|
|
$
|
147,928
|
|
|
$
|
141,408
|
|
SEGMENT INCOME (LOSS):
|
|
|
|
|
|
|
|
|
||||||||
Engines
|
|
$
|
17,922
|
|
|
$
|
20,782
|
|
|
$
|
6,269
|
|
|
$
|
28
|
|
Products
|
|
6,808
|
|
|
417
|
|
|
3,563
|
|
|
479
|
|
||||
Inter-Segment Eliminations
|
|
655
|
|
|
(683
|
)
|
|
(760
|
)
|
|
(1,891
|
)
|
||||
Total
|
|
$
|
25,385
|
|
|
$
|
20,516
|
|
|
$
|
9,072
|
|
|
$
|
(1,384
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Reconciliation from Segment Income (Loss) to Income (Loss) Before Income Taxes:
|
|
|
|
|
|
|
|
|
||||||||
Equity in Earnings of Unconsolidated Affiliates
|
|
—
|
|
|
1,751
|
|
|
—
|
|
|
3,187
|
|
||||
Income (Loss) from Operations
|
|
$
|
25,385
|
|
|
$
|
18,765
|
|
|
$
|
9,072
|
|
|
$
|
(4,571
|
)
|
INTEREST EXPENSE
|
|
(5,133
|
)
|
|
(5,013
|
)
|
|
(9,638
|
)
|
|
(9,549
|
)
|
||||
OTHER INCOME, Net
|
|
381
|
|
|
2,383
|
|
|
836
|
|
|
3,838
|
|
||||
Income (Loss) Before Income Taxes
|
|
20,633
|
|
|
16,135
|
|
|
270
|
|
|
(10,282
|
)
|
||||
PROVISION (CREDIT) FOR INCOME TAXES
|
|
5,382
|
|
|
3,575
|
|
|
(833
|
)
|
|
(4,671
|
)
|
||||
Net Income (Loss)
|
|
$
|
15,251
|
|
|
$
|
12,560
|
|
|
$
|
1,103
|
|
|
$
|
(5,611
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
Engines
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
464
|
|
Products
|
|
—
|
|
|
2,647
|
|
|
—
|
|
|
4,892
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
2,647
|
|
|
$
|
—
|
|
|
$
|
5,356
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
January 1,
2017 |
|
December 27,
2015 |
|
January 1,
2017 |
|
December 27,
2015 |
||||||||
Engines
|
|
$
|
—
|
|
|
$
|
1,975
|
|
|
$
|
—
|
|
|
$
|
4,179
|
|
Products
|
|
—
|
|
|
3,019
|
|
|
—
|
|
|
5,314
|
|
||||
Total
|
|
$
|
—
|
|
|
$
|
4,994
|
|
|
$
|
—
|
|
|
$
|
9,493
|
|
|
|
January 1,
2017 |
|
July 3,
2016 |
||||
Multicurrency Credit Agreement
|
|
$
|
132,100
|
|
|
$
|
—
|
|
Total Short-Term Debt
|
|
$
|
132,100
|
|
|
$
|
—
|
|
|
|
|
|
|
||||
6.875% Senior Notes
|
|
$
|
223,149
|
|
|
$
|
223,149
|
|
Unamortized Debt Issuance Costs associated with 6.875% Senior Notes
|
|
1,579
|
|
|
1,810
|
|
||
Total Long-Term Debt
|
|
$
|
221,570
|
|
|
$
|
221,339
|
|
|
|
Three Months Ended Fiscal December
|
||||||||||||||||||||||
|
|
2017 Reported
|
|
Adjustments
|
|
2017 Adjusted
(2)
|
|
2016 Reported
|
|
Adjustments
(1)
|
|
2016 Adjusted
(2)
|
||||||||||||
Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Engines
|
|
$
|
61,573
|
|
|
$
|
—
|
|
|
$
|
61,573
|
|
|
$
|
65,635
|
|
|
$
|
—
|
|
|
$
|
65,635
|
|
Products
|
|
33,178
|
|
|
—
|
|
|
33,178
|
|
|
26,744
|
|
|
2,647
|
|
|
29,391
|
|
||||||
Inter-Segment Eliminations
|
|
655
|
|
|
—
|
|
|
655
|
|
|
(683
|
)
|
|
—
|
|
|
(683
|
)
|
||||||
Total
|
|
$
|
95,406
|
|
|
$
|
—
|
|
|
$
|
95,406
|
|
|
$
|
91,696
|
|
|
$
|
2,647
|
|
|
$
|
94,343
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Engineering, Selling, General and Administrative Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Engines
|
|
$
|
45,706
|
|
|
$
|
—
|
|
|
$
|
45,706
|
|
|
$
|
46,214
|
|
|
$
|
1,975
|
|
|
$
|
44,239
|
|
Products
|
|
27,326
|
|
|
—
|
|
|
27,326
|
|
|
26,345
|
|
|
—
|
|
|
26,345
|
|
||||||
Total
|
|
$
|
73,032
|
|
|
$
|
—
|
|
|
$
|
73,032
|
|
|
$
|
72,559
|
|
|
$
|
1,975
|
|
|
$
|
70,584
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment Income (3):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Engines
|
|
$
|
17,922
|
|
|
$
|
—
|
|
|
$
|
17,922
|
|
|
$
|
20,782
|
|
|
$
|
1,975
|
|
|
$
|
22,757
|
|
Products
|
|
6,808
|
|
|
—
|
|
|
6,808
|
|
|
417
|
|
|
3,019
|
|
|
3,436
|
|
||||||
Inter-Segment Eliminations
|
|
655
|
|
|
—
|
|
|
655
|
|
|
(683
|
)
|
|
—
|
|
|
(683
|
)
|
||||||
Total
|
|
$
|
25,385
|
|
|
$
|
—
|
|
|
$
|
25,385
|
|
|
$
|
20,516
|
|
|
$
|
4,994
|
|
|
$
|
25,510
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reconciliation from Segment Income to Income Before Income Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in Earnings of Unconsolidated Affiliates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,751
|
|
|
—
|
|
|
1,751
|
|
||||||
Income from Operations
|
|
$
|
25,385
|
|
|
$
|
—
|
|
|
$
|
25,385
|
|
|
$
|
18,765
|
|
|
$
|
4,994
|
|
|
$
|
23,759
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income Before Income Taxes
|
|
20,633
|
|
|
—
|
|
|
20,633
|
|
|
16,135
|
|
|
4,994
|
|
|
21,129
|
|
||||||
Provision for Income Taxes
|
|
5,382
|
|
|
—
|
|
|
5,382
|
|
|
3,575
|
|
|
2,417
|
|
|
5,992
|
|
||||||
Net Income
|
|
$
|
15,251
|
|
|
$
|
—
|
|
|
$
|
15,251
|
|
|
$
|
12,560
|
|
|
$
|
2,577
|
|
|
$
|
15,137
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
|
$
|
0.35
|
|
|
$
|
—
|
|
|
$
|
0.35
|
|
|
$
|
0.28
|
|
|
$
|
0.06
|
|
|
$
|
0.34
|
|
Diluted
|
|
0.35
|
|
|
—
|
|
|
0.35
|
|
|
0.28
|
|
|
0.06
|
|
|
0.34
|
|
|
|
Six Months Ended Fiscal December
|
||||||||||||||||||||||
|
|
2017 Reported
|
|
Adjustments
|
|
2017 Adjusted
(2)
|
|
2016 Reported
|
|
Adjustments
(1)
|
|
2016 Adjusted
(2)
|
||||||||||||
Gross Profit:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Engines
|
|
$
|
92,559
|
|
|
$
|
—
|
|
|
$
|
92,559
|
|
|
$
|
89,411
|
|
|
$
|
464
|
|
|
$
|
89,875
|
|
Products
|
|
56,129
|
|
|
—
|
|
|
56,129
|
|
|
53,888
|
|
|
4,892
|
|
|
58,780
|
|
||||||
Inter-Segment Eliminations
|
|
(760
|
)
|
|
—
|
|
|
(760
|
)
|
|
(1,891
|
)
|
|
—
|
|
|
(1,891
|
)
|
||||||
Total
|
|
$
|
147,928
|
|
|
$
|
—
|
|
|
$
|
147,928
|
|
|
$
|
141,408
|
|
|
$
|
5,356
|
|
|
$
|
146,764
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Engineering, Selling, General and Administrative Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Engines
|
|
$
|
90,161
|
|
|
$
|
—
|
|
|
$
|
90,161
|
|
|
$
|
90,514
|
|
|
$
|
2,825
|
|
|
$
|
87,689
|
|
Products
|
|
54,934
|
|
|
—
|
|
|
54,934
|
|
|
54,179
|
|
|
26
|
|
|
54,153
|
|
||||||
Total
|
|
$
|
145,095
|
|
|
$
|
—
|
|
|
$
|
145,095
|
|
|
$
|
144,693
|
|
|
$
|
2,851
|
|
|
$
|
141,842
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Segment Income (Loss)(3):
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Engines
|
|
$
|
6,269
|
|
|
$
|
—
|
|
|
$
|
6,269
|
|
|
$
|
28
|
|
|
$
|
4,179
|
|
|
$
|
4,207
|
|
Products
|
|
3,563
|
|
|
—
|
|
|
3,563
|
|
|
479
|
|
|
5,314
|
|
|
5,793
|
|
||||||
Inter-Segment Eliminations
|
|
(760
|
)
|
|
—
|
|
|
(760
|
)
|
|
(1,891
|
)
|
|
—
|
|
|
(1,891
|
)
|
||||||
Total
|
|
$
|
9,072
|
|
|
$
|
—
|
|
|
$
|
9,072
|
|
|
$
|
(1,384
|
)
|
|
$
|
9,493
|
|
|
$
|
8,109
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Reconciliation from Segment Income (Loss) to Income (Loss) Before Income Taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Equity in Earnings of Unconsolidated Affiliates
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,187
|
|
|
—
|
|
|
3,187
|
|
||||||
Income (Loss) from Operations
|
|
$
|
9,072
|
|
|
$
|
—
|
|
|
$
|
9,072
|
|
|
$
|
(4,571
|
)
|
|
$
|
9,493
|
|
|
$
|
4,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Income (Loss) Before Income Taxes
|
|
270
|
|
|
|
|
270
|
|
|
(10,282
|
)
|
|
9,493
|
|
|
(789
|
)
|
|||||||
Provision (Credit) for Income Taxes
|
|
(833
|
)
|
|
—
|
|
|
(833
|
)
|
|
(4,671
|
)
|
|
3,945
|
|
|
(726
|
)
|
||||||
Net Income (Loss)
|
|
$
|
1,103
|
|
|
$
|
—
|
|
|
$
|
1,103
|
|
|
$
|
(5,611
|
)
|
|
$
|
5,548
|
|
|
$
|
(63
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Earnings (Loss) Per Share
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Basic
|
|
$
|
0.02
|
|
|
$
|
—
|
|
|
$
|
0.02
|
|
|
$
|
(0.13
|
)
|
|
$
|
0.12
|
|
|
$
|
(0.01
|
)
|
Diluted
|
|
0.02
|
|
|
—
|
|
|
0.02
|
|
|
(0.13
|
)
|
|
0.12
|
|
|
(0.01
|
)
|
2017 Fiscal Month
|
|
Total Number of Shares Purchased
|
|
Average Price Paid per Share
|
|
Total Number of Shares Purchased as Part of a Publicly Announced Program (a)
|
|
Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (1)
|
||||||
October 3, 2016 to October 30, 2016
|
|
231,679
|
|
|
$
|
18.96
|
|
|
231,679
|
|
|
$
|
37,153,378
|
|
October 31, 2016 to November 27, 2016
|
|
106,444
|
|
|
18.63
|
|
|
106,444
|
|
|
35,170,031
|
|
||
November 28, 2016 to January 1, 2017
|
|
5,836
|
|
|
20.99
|
|
|
5,836
|
|
|
35,047,551
|
|
||
Total Second Quarter
|
|
343,959
|
|
|
$
|
18.89
|
|
|
343,959
|
|
|
$
|
35,047,551
|
|
(a)
|
On April 21, 2016, the Board of Directors authorized up to $50 million in funds for use in the common share repurchase program with an expiration date of June 29, 2018.
|
Exhibit
Number
|
|
Description
|
|
|
|
10.1
|
|
Supplemental Employee Retirement Plan, as amended and restated effective as of January 1, 2017 (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 January 1, 2017 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Cash Flows, and (v) related Notes to Condensed Consolidated Financial Statements
|
|
|
|
BRIGGS & STRATTON CORPORATION
|
|
|
|
|
(Registrant)
|
|
|
|
|
|
|
Date:
|
February 2, 2017
|
|
/s/ Mark A. Schwertfeger
|
|
|
|
|
Mark A. Schwertfeger
|
|
|
|
|
Senior Vice President and Chief Financial Officer and
Duly Authorized Officer
|
|
Exhibit
Number
|
|
Description
|
|
|
|
10.1
|
|
Supplemental Employee Retirement Plan, as amended and restated effective as of January 1, 2017 (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 January 1, 2017 formatted in Extensible Business Reporting Language (XBRL): (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Comprehensive Income (Loss), (iv) the Condensed Consolidated Statements of Cash Flows, and (v) related Notes to Condensed Consolidated Financial Statements
|
ARTICLE I
|
GENERAL 1
|
1.1
|
Code 1
|
1.2
|
Committee 1
|
1.3
|
Deferred Compensation Plan 1
|
1.4
|
Disability 1
|
1.5
|
Employer 2
|
1.6
|
Plan 2
|
1.7
|
Pension Plan 2
|
1.8
|
Separation from Service 2
|
1.9
|
Service 4
|
ARTICLE II
|
ELIGIBILITY 4
|
2.1
|
Persons Eligible As Participants Under The Plan 4
|
ARTICLE III
|
RETIREMENT BENEFITS 4
|
3.1
|
Time of Commencement and Amount 4
|
3.2
|
Manner of Payment 6
|
3.3
|
Pre-retirement Spousal Survivor Annuity 6
|
3.4
|
Pre-retirement Death Benefit 7
|
3.5
|
Six Month Delay in Benefit Commencement 8
|
3.6
|
Interpretation 8
|
3.7
|
Delayed Distribution 9
|
3.8
|
Inclusion in Income Under Section 409A 9
|
|
i
|
|
3.9
|
Domestic Relations Order 9
|
3.10
|
De Minimis Amounts 10
|
ARTICLE IV
|
AMENDMENT AND TERMINATION 10
|
4.1
|
Amendment and Termination 10
|
ARTICLE V
|
ADMINISTRATION 10
|
5.1
|
In General 10
|
5.2
|
Committee Discretion 11
|
5.3
|
Committee Members' Conflict of Interest 11
|
5.4
|
Governing Law 11
|
5.5
|
Expenses 11
|
5.6
|
Minor or Incompetent Payees 11
|
5.7
|
Withholding 11
|
5.8
|
Indemnification 12
|
ARTICLE VI
|
BENEFITS UNFUNDED 12
|
6.1
|
Unsecured Claim 12
|
6.2
|
Grantor Trust Only 12
|
QB\5955251.3
|
ii
|
|
ARTICLE VII
|
NONALIENATION OF BENEFITS 13
|
ARTICLE VIII
|
CLAIMS PROCEDURE 13
|
8.1
|
Claims 13
|
8.2
|
Timing of Notification of Claim Determination 13
|
8.3
|
Manner and Content of Notification of Claim Determination 13
|
8.4
|
Appeal Procedure 14
|
8.5
|
Timing of Notification of Claim Determination on Appeal 14
|
8.6
|
Manner and Content of Notification of Claim Determination on Appeal 14
|
8.7
|
Disability Claims 14
|
ARTICLE IX
|
MISCELLANEOUS 15
|
9.1
|
No Right to Continued Employment 15
|
9.2
|
Impact on Other Plans 15
|
9.3
|
Severability 15
|
9.4
|
Gender and Number 15
|
9.5
|
Evidence Conclusive 15
|
9.6
|
Status of Plan Under ERISA 15
|
9.7
|
Name and Address Changes 15
|
9.8
|
Limitations on Provisions 16
|
9.9
|
Identity of Payee 16
|
9.10
|
Transfer 16
|
QB\5955251.3
|
iii
|
|
(a)
|
to construe and interpret the Plan and to make equitable adjustments for any mistakes or errors made in the administration thereof;
|
(b)
|
to prescribe such procedures, rules and regulations as it shall deem necessary or proper for the efficient administration of the Plan or any of its duties hereunder;
|
(c)
|
to decide questions of eligibility and determine the amount, manner and time of payment of any benefits and to direct the payment of the same by the Employer;
|
(d)
|
to prescribe the form and manner of application for any benefits hereunder and forms to be used in the general administration hereof; and
|
(e)
|
to receive from the Employer and Participants or their beneficiaries such information as shall be necessary for the proper administration of the Plan.
|
(a)
|
The specific reason or reasons for the adverse determination;
|
(b)
|
Reference to the specific plan provisions on which the determination is based;
|
(c)
|
A description of any additional material or information necessary for the claimant to perfect the claim and an explanation of why such material or information is necessary; and
|
(d)
|
A description of the plan's claim appeal procedures and the time limits applicable to such procedures, including a statement of the claimant's right to bring a civil action under Section 502(a) of the Employee Retirement Income Security Act of 1974, as amended, ("ERISA") following an adverse claim determination on appeal.
|
(a)
|
The specific reason or reasons for the adverse determination;
|
(b)
|
Reference to the specific plan provisions on which the determination is based;
|
(c)
|
A statement that the claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and other information relevant to the claimant's claim for benefits.
|
(d)
|
A statement of the claimant's right to bring an action under section 502(a) of ERISA.
|
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, 2017
|
|
/s/ Todd J. Teske
|
|
|
|
Todd J. Teske
|
|
|
|
Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q of Briggs & Stratton Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, 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, 2017
|
|
/s/ Mark A. Schwertfeger
|
|
|
|
Mark A. Schwertfeger
|
|
|
|
Chief Financial Officer
|
/s/ Todd J. Teske
|
Todd J. Teske
|
Chief Executive Officer
|
February 2, 2017
|
/s/ Mark A. Schwertfeger
|
Mark A. Schwertfeger
|
Chief Financial Officer
|
February 2, 2017
|