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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_____________________________________ 
FORM 10-Q
_____________________________________ 
(Mark One)
xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 30,September 28, 2014
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)
____________________________________________ 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.        Yes  x    No ¨
Indicate by check mark 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 filerxAccelerated filer¨
Non-accelerated filer
o¨  (Do not check if a smaller reporting company)
Smaller reporting company¨
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   Yes  ¨    No x

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 May 2,October 31, 2014
COMMON STOCK, par value $0.01 per share 46,724,22145,365,465 Shares

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
INDEX
 
  Page No.
  
PART I – FINANCIAL INFORMATION 
   
Item 1.
Financial Statements
 
   
 
Condensed Consolidated Balance Sheets – March 30,September 28, 2014 and June 30, 201329, 2014
3
   
 
Condensed Consolidated Statements of Operations – Three and Nine Months Ended March 30,September 28, 2014 and March 31,September 29, 2013
5
   
 
Condensed Consolidated Statements of Comprehensive IncomeLoss – Three and Nine Months Ended March 30,September 28, 2014 and March 31,September 29, 2013
6
   
 
Condensed Consolidated Statements of Cash Flows – NineThree Months Ended March 30,September 28, 2014 and March 31,September 29, 2013
7
   
 
Notes to Condensed Consolidated Financial Statements
8
   
Item 2.
Management’s Discussion and Analysis of Financial Condition and Results of Operations
2826
   
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
3531
   
Item 4.
Controls and Procedures
3531
  
PART II – OTHER INFORMATION 
   
Item 1.
Legal Proceedings
3531
   
Item 1A.
Risk Factors
3531
   
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
3531
   
Item 6.
Exhibits
3632
  
Signatures
3733
  
Exhibit Index
3834

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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)


ASSETS
 
        
 March 30,
2014		 June 30,
2013		 September 28,
2014		 June 29,
2014
CURRENT ASSETS:        
Cash and Cash Equivalents $107,238
 $188,445
 $61,898
 $194,668
Accounts Receivable, Net 338,834
 190,800
 166,313
 220,590
Inventories -        
Finished Products and Parts 279,901
 306,104
 370,028
 268,116
Work in Process 109,372
 96,751
 127,076
 102,431
Raw Materials 6,031
 5,240
 9,784
 5,556
Total Inventories 395,304
 408,095
 506,888
 376,103
Deferred Income Tax Asset 46,697
 47,534
 47,904
 48,958
Prepaid Expenses and Other Current Assets 24,579
 24,107
 39,799
 30,016
Total Current Assets 912,652
 858,981
 822,802
 870,335
OTHER ASSETS:        
Goodwill 147,055
 147,352
 160,976
 144,522
Investments 25,382
 19,764
 27,056
 27,137
Debt Issuance Costs 4,916
 4,710
 4,428
 4,671
Other Intangible Assets, Net 85,728
 87,980
 101,594
 80,317
Long-Term Deferred Income Tax Asset 27,432
 27,544
 291
 15,178
Other Long-Term Assets, Net 14,141
 14,025
 11,458
 10,539
Total Other Assets 304,654
 301,375
 305,803
 282,364
PLANT AND EQUIPMENT:        
Cost 1,018,796
 1,019,355
 1,040,081
 1,035,848
Less - Accumulated Depreciation 740,708
 732,160
 743,160
 738,841
Total Plant and Equipment, Net 278,088
 287,195
 296,921
 297,007
TOTAL ASSETS $1,495,394
 $1,447,551
 $1,425,526
 $1,449,706


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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS (Continued)
(In thousands, except per share data)
(Unaudited)
 

LIABILITIES & SHAREHOLDERS’ INVESTMENT
 
        
 March 30,
2014		 June 30,
2013		 September 28,
2014		 June 29,
2014
CURRENT LIABILITIES:        
Accounts Payable $186,652
 $143,189
 $187,214
 $169,271
Short-Term Debt —
 300
Accrued Liabilities 153,284
 131,266
 140,888
 133,916
Total Current Liabilities 339,936
 274,755
 328,102
 303,187
OTHER LIABILITIES:        
Accrued Pension Cost 138,242
 150,131
 120,569
 126,529
Accrued Employee Benefits 23,616
 23,458
 24,538
 24,491
Accrued Postretirement Health Care Obligation 64,546
 72,695
 56,122
 59,290
Deferred Income Tax Liability 3,906
 —
Other Long-Term Liabilities 38,385
 33,574
 35,256
 38,775
Long-Term Debt 225,000
 225,000
 225,000
 225,000
Total Other Liabilities 489,789
 504,858
 465,391
 474,085
SHAREHOLDERS’ INVESTMENT:        
Common Stock - Authorized 120,000 shares, $.01 par value, issued 57,854 shares 579
 579
 579
 579
Additional Paid-In Capital 77,234
 77,004
 73,100
 78,466
Retained Earnings 1,046,307
 1,042,917
 1,027,469
 1,048,466
Accumulated Other Comprehensive Loss (210,352) (224,928) (199,142) (195,257)
Treasury Stock at cost, 10,969 and 9,901 shares, respectively (248,099) (227,634)
Treasury Stock at cost, 12,111 and 11,536 shares, respectively (269,973) (259,820)
Total Shareholders’ Investment 665,669
 667,938
 632,033
 672,434
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT $1,495,394
 $1,447,551
 $1,425,526
 $1,449,706


The accompanying notes are an integral part of these statements.
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BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
 
 Three Months Ended Nine Months Ended Three Months Ended
 March 30,
2014		 March 31,
2013		 March 30,
2014		 March 31,
2013		 September 28,
2014		 September 29,
2013
NET SALES $628,403
 $637,259
 $1,362,299
 $1,385,345
 $292,629
 $317,304
COST OF GOODS SOLD 498,927
 503,826
 1,106,148
 1,122,804
 238,462
 269,888
RESTRUCTURING CHARGES (774) 6,645
 4,704
 14,970
 6,846
 3,585
Gross Profit 130,250
 126,788
 251,447
 247,571
 47,321
 43,831
ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 74,863
 70,668
 215,402
 205,556
 70,084
 68,762
RESTRUCTURING CHARGES —
 —
 425
 3,435
 955
 —
Income from Operations 55,387
 56,120
 35,620
 38,580
Loss from Operations (23,718) (24,931)
INTEREST EXPENSE (4,720) (4,717) (13,823) (13,802) (4,518) (4,510)
OTHER INCOME, Net 2,295
 1,806
 6,138
 4,660
 2,373
 2,093
Income Before Income Taxes 52,962
 53,209
 27,935
 29,438
PROVISION FOR INCOME TAXES 13,809
 14,693
 7,429
 8,084
NET INCOME $39,153
 $38,516
 $20,506
 $21,354
Loss Before Income Taxes (25,863) (27,348)
CREDIT FOR INCOME TAXES (10,584) (7,999)
NET LOSS $(15,279) $(19,349)
            
EARNINGS PER SHARE        
EARNINGS (LOSS) PER SHARE    
Basic $0.82
 $0.79
 $0.43
 $0.44
 $(0.34) $(0.41)
Diluted 0.82
 0.78
 0.43
 0.44
 (0.34) (0.41)
            
WEIGHTED AVERAGE SHARES OUTSTANDING            
Basic 46,129
 47,336
 46,549
 47,126
 45,113
 46,997
Diluted 46,245
 47,709
 46,615
 47,291
 45,113
 46,997
            
DIVIDENDS PER SHARE $0.12
 $0.12
 $0.36
 $0.36
 $0.125
 $0.12


The accompanying notes are an integral part of these statements.
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CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOMELOSS
(In thousands)
(Unaudited)


 
  Three Months Ended Nine Months Ended
  March 30,
2014		 March 31,
2013		 March 30,
2014		 March 31,
2013
Net Income $39,153
 $38,516
 $20,506
 $21,354
Other Comprehensive Income:        
Cumulative Translation Adjustments 2,212
 3,022
 (1,160) 9,830
Unrealized Gain on Derivative Instruments, Net of Tax 1,381
 1,611
 2,568
 970
Unrecognized Pension & Postretirement Obligation, Net of Tax 4,381
 5,967
 13,168
 32,823
Other Comprehensive Income 7,974
 10,600
 14,576
 43,623
Total Comprehensive Income $47,127
 $49,116
 $35,082
 $64,977
  Three Months Ended
  September 28,
2014		 September 29,
2013
Net Loss $(15,279) $(19,349)
Other Comprehensive Income (Loss):    
Cumulative Translation Adjustments (9,907) 253
Unrealized Gain (Loss) on Derivative Instruments, Net of Tax 3,667
 (281)
Unrecognized Pension & Postretirement Obligation, Net of Tax 2,355
 4,350
Other Comprehensive Income (Loss) (3,885) 4,322
Total Comprehensive Loss $(19,164) $(15,027)



The accompanying notes are an integral part of these statements.
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
 
 Nine Months Ended Three Months Ended
 March 30,
2014		 March 31,
2013		 September 28,
2014		 September 29,
2013
CASH FLOWS FROM OPERATING ACTIVITIES:        
Net Income $20,506
 $21,354
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities:    
Net Loss $(15,279) $(19,349)
Adjustments to Reconcile Net Loss to Net Cash Used in Operating Activities:    
Depreciation and Amortization 38,333
 41,234
 12,939
 13,874
Stock Compensation Expense 5,822
 5,244
 1,605
 3,040
Loss on Disposition of Plant and Equipment 462
 293
 75
 157
Credit for Deferred Income Taxes (8,705) (16,866)
Earnings of Unconsolidated Affiliates (4,277) (3,011)
Provision (Credit) for Deferred Income Taxes 4,558
 (1,418)
Equity in Earnings of Unconsolidated Affiliates (1,887) (1,529)
Dividends Received from Unconsolidated Affiliates 4,069
 4,636
 1,750
 1,500
Cash Contributions to Qualified Pension Plans —
 (29,363)
Non-Cash Restructuring Charges 3,386
 11,930
 5,165
 1,726
Change in Operating Assets and Liabilities:        
Accounts Receivable (147,738) (167,435) 70,347
 20,110
Inventories 11,713
 (19,873) (117,735) (61,310)
Other Current Assets (9,083) 10,571
 8,628
 (9,983)
Accounts Payable, Accrued Liabilities and Income Taxes 76,335
 70,273
 (13,596) 4,515
Other, Net (4,856) (2,766) (5,448) (4,194)
Net Cash Used in Operating Activities (14,033) (73,779) (48,878) (52,861)
CASH FLOWS FROM INVESTING ACTIVITIES:        
Additions to Plant and Equipment (29,471) (26,301) (7,390) (11,650)
Proceeds Received on Disposition of Plant and Equipment 109
 6,705
 172
 28
Cash Paid for Acquisition, Net of Cash Acquired —
 (59,627) (62,056) —
Net Cash Used in Investing Activities (29,362) (79,223) (69,274) (11,622)
CASH FLOWS FROM FINANCING ACTIVITIES:        
Repayments on Short-Term Debt (300) (900) —
 (300)
Net Borrowings on Revolver —
 35,350
 —
 —
Debt Issuance Costs (949) —
Treasury Stock Purchases (30,066) (23,057) (17,761) (9,696)
Stock Option Exercise Proceeds and Tax Benefits 4,361
 19,613
 3,151
 994
Cash Dividends Paid (11,387) (11,499)
Net Cash Provided by (Used in) Financing Activities (38,341) 19,507
Net Cash Used in Financing Activities (14,610) (9,002)
EFFECT OF FOREIGN CURRENCY EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS 529
 (12) (8) 216
NET DECREASE IN CASH AND CASH EQUIVALENTS (81,207) (133,507) (132,770) (73,269)
CASH AND CASH EQUIVALENTS, Beginning 188,445
 156,075
 194,668
 188,445
CASH AND CASH EQUIVALENTS, Ending $107,238
 $22,568
 $61,898
 $115,176


The accompanying notes are an integral part of these statements.
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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. General Information
 
The accompanying unaudited condensed consolidated 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 statement of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. The year-end condensed consolidated 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 fairly present the results of operations and financial position have been included. All of these adjustments are of a normal recurring nature, except as otherwise noted.

Interim results are not necessarily indicative of results for a full year. The information included in these condensed consolidated financial statements should be read in conjunction with the financial statements and the notes thereto that were included in the Company's latest Annual Report on Form 10-K.
2. New Accounting Pronouncements

In February 2013,May 2014, the Financial Accounting StandardsStandard Board (“FASB”("FASB") issued Accounting Standards Update (“ASU”("ASU") No. 2013-02, "Comprehensive Income2014-09, "Revenue from Contracts with Customers (Topic 220): Reporting606)." The core principle of Amounts Reclassified Out of Accumulated Other Comprehensive Income," which requiresthe guidance is that an entity should recognize revenue to present significant reclassifications outdepict the transfer of accumulated other comprehensive income bypromised goods or services to customers in an amount that reflects the respective line items of net income ifconsideration to which the amount being reclassified is required under U.S. GAAPentity expects to be reclassifiedentitled in its entirety to net income. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety from accumulated other comprehensive income to net income in the same reporting period, an entity is required to cross-reference other disclosures required under U.S. GAAP that provide additional detail aboutexchange for those amounts.goods or services. This updateguidance is effective for fiscal years, and interimannual reporting periods within those fiscal years, beginning after December 15, 2012 with earlier adoption2016, including interim periods within that reporting period, under either full or modified retrospective adoption. Early application is not permitted. The amendments inManagement is currently assessing the ASU should be applied prospectively. The Company adopted ASU No. 2013-02 at the beginning of fiscal 2014, and the required new disclosures are presented in Note 3. The adoptionpotential impact of this ASU did not have any impactnew accounting pronouncement on the Company's results of operations, financial position, orand cash flow, as the ASU solely relates to disclosures.

In July 2012, the FASB issued ASU No. 2012-02, "Intangibles – Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment,"which permits an entity to first assess qualitative factors to determine whether it is more likely than not that an indefinite-lived intangible asset is impaired before performing quantitative impairment testing. The amendments do not change the measurement of impairment losses. This update is effective for fiscal years beginning after September 15, 2012, with early adoption permitted. The Company adopted ASU No. 2012-02 at the beginning of fiscal 2014. The adoption of this ASU did not have any impact on the Company’s results of operations, financial position or cash flow.

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3. Accumulated Other Comprehensive Income (Loss)
The following tables set forth the changes in accumulated other comprehensive income (loss) (in thousands):
  Three Months Ended March 30, 2014
  Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total
Beginning Balance $8,514
 $(2,486) $(224,354) $(218,326)
Other Comprehensive Income (Loss) Before Reclassification 2,212
 323
 —
 2,535
Income Tax Benefit (Expense) —
 (124) —
 (124)
Net Other Comprehensive Income (Loss) Before Reclassifications 2,212
 199
 —
 2,411
Reclassifications:       

Realized (Gains) Losses - Foreign Currency Contracts (1) —
 448
 —
 448
Realized (Gains) Losses - Commodity Contracts (1) —
 1,165
 —
 1,165
Realized (Gains) Losses - Interest Rate Swaps (1) —
 302
 —
 302
Amortization of Prior Service Costs (Credits) (2) —
 —
 (679) (679)
Amortization of Actuarial Losses (2) —
 —
 7,780
 7,780
Total Reclassifications Before Tax —
 1,915
 7,101
 9,016
Income Tax Expense (Benefit) —
 (733) (2,720) (3,453)
Net Reclassifications —
 1,182
 4,381
 5,563
Other Comprehensive Income (Loss) 2,212
 1,381
 4,381
 7,974
Ending Balance $10,726
 $(1,105) $(219,973) $(210,352)













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 Nine Months Ended March 30, 2014 Three Months Ended September 28, 2014
 Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total
Beginning Balance $11,886
 $(3,673) $(233,141) $(224,928) $13,053
 $(1,084) $(207,226) $(195,257)
Other Comprehensive Income (Loss) Before Reclassification (1,160) (2,757) —
 (3,917) (9,907) 5,818
 —
 (4,089)
Income Tax Benefit (Expense) —
 1,056
 —
 1,056
 —
 (2,211) —
 (2,211)
Net Other Comprehensive Income (Loss) Before Reclassifications (1,160) (1,701) —
 (2,861) (9,907) 3,607
 —
 (6,300)
Reclassifications:               

Realized (Gains) Losses - Foreign Currency Contracts (1) —
 1,197
 —
 1,197
 —
 (393) —
 (393)
Realized (Gains) Losses - Commodity Contracts (1) —
 4,823
 —
 4,823
 —
 179
 —
 179
Realized (Gains) Losses - Interest Rate Swaps (1) —
 899
 —
 899
 —
 311
 —
 311
Amortization of Prior Service Costs (Credits) (2) —
 —
 (2,037) (2,037) —
 —
 (645) (645)
Amortization of Actuarial Losses (2) —
 —
 23,333
 23,333
 —
 —
 4,444
 4,444
Total Reclassifications Before Tax —
 6,919
 21,296
 28,215
 —
 97
 3,799
 3,896
Income Tax Expense (Benefit) —
 (2,650) (8,128) (10,778) —
 (37) (1,444) (1,481)
Net Reclassifications —
 4,269
 13,168
 17,437
 —
 60
 2,355
 2,415
Other Comprehensive Income (Loss) (1,160) 2,568
 13,168
 14,576
 (9,907) 3,667
 2,355
 (3,885)
Ending Balance $10,726
 $(1,105) $(219,973) $(210,352) $3,146
 $2,583
 $(204,871) $(199,142)
(1) Amounts reclassified to net income (loss) are included in net sales or cost of goods sold. See Note 10 for information related to derivative financial instruments.
(2) Amounts reclassified to net income (loss) are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 8 for information related to pension and postretirement benefit plans.


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  Three Months Ended September 29, 2013
  Cumulative Translation Adjustments Derivative Financial Instruments Pension and Postretirement Benefit Plans Total
Beginning Balance $11,886
 $(3,673) $(233,141) $(224,928)
Other Comprehensive Income (Loss) Before Reclassification 253
 (2,710) —
 (2,457)
Income Tax Benefit (Expense) —
 1,038
 —
 1,038
Net Other Comprehensive Income (Loss) Before Reclassifications 253
 (1,672) —
 (1,419)
Reclassifications:       

Realized (Gains) Losses - Foreign Currency Contracts (1) —
 462
 —
 462
Realized (Gains) Losses - Commodity Contracts (1) —
 1,498
 —
 1,498
Realized (Gains) Losses - Interest Rate Swaps (1) —
 295
 —
 295
Amortization of Prior Service Costs (Credits) (2) —
 —
 (679) (679)
Amortization of Actuarial Losses (2) —
 —
 7,729
 7,729
Total Reclassifications Before Tax —
 2,255
 7,050
 9,305
Income Tax Expense (Benefit) —
 (864) (2,700) (3,564)
Net Reclassifications —
 1,391
 4,350
 5,741
Other Comprehensive Income (Loss) 253
 (281) 4,350
 4,322
Ending Balance $12,139
 $(3,954) $(228,791) $(220,606)
(1) Amounts reclassified to net income (loss) are included in net sales or cost of goods sold. See Note 10 for information related to derivative financial instruments.
(2) Amounts reclassified to net income (loss) are included in the computation of net periodic expense, which is presented in cost of goods sold or engineering, selling, general and administrative expenses. See Note 8 for information related to pension and postretirement benefit plans.

4. Acquisitions

On December 7, 2012, Briggs & Stratton Representação de Motores e Produtos de Força do Brasil Ltda., a wholly-owned subsidiary ofAugust 29, 2014, the Company acquired all of the common stockoutstanding shares of Companhia Caetano Branco (“Branco”Allmand Bros., Inc. ("Allmand") of Sao Jose dos Pinhais, BrazilHoldrege, Nebraska for total cash consideration of $59.6$62.1 million,, net of cash acquired. BrancoAllmand is a leading brand in the Braziliandesigner and manufacturer of high quality towable light power equipment market with a broad range of outdoor power equipment used primarily in light commercial applications.towers, industrial heaters, and solar LED arrow boards. Its products are used in a variety of industries, including generators, water pumps, light construction, equipmentroadway, oil and gas, mining, and sporting and special events. Allmand's products are generally powered by diesel engines, are soldand distributed through national and regional equipment rental companies, equipment dealers and distributors. Allmand currently sells its independent networkproducts and service parts in approximately 40 countries. During the first quarter of over 1,200 dealers throughout Brazil. Thefiscal 2015, the Company recorded a preliminary purchase price allocation during fiscal 2013 based on ainitial estimates of fair value appraisal by a third party valuation firm.value. The preliminary purchase price allocation resulted in the recognition of $15.3$17.7 million of goodwill, of which $4.6 million and $10.7 million werewas allocated to the EnginesProducts Segment, and Products Segment, respectively, and $24.0$24.1 million of intangible assets, including $14.6$15.7 million of customer relationships, $8.1 million of tradenames, and $9.4$0.3 million of tradenames.other intangible assets.

The results of operations of BrancoAllmand have been included in the Condensed Consolidated Statements of Operations since the date of acquisition.acquisition, which was approximately one month of the first fiscal quarter. Pro forma financial information and allocation of the preliminary purchase price are not presented as the effects of the acquisition are not material to the Company's consolidated results of operations or financial position.

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5. Restructuring Actions
In fiscalThe restructuring actions announced in 2012 the Company announced plans to reduce manufacturing capacity through closure of its Newbern, Tennessee and Ostrava, Czech Republic plants,were concluded as well as the consolidation of its plants in Poplar Bluff, Missouri and Auburn, Alabama. During fiscal 2012, the Company ceased manufacturing operations at its Newbern, Tennessee and Ostrava, Czech Republic plants, and carried out the consolidation of the Poplar Bluff, Missouri plant. Production of horizontal shaft engines was concluded at the Auburn, Alabama plantplanned during the secondfourth quarter of fiscal 2014. The Company also announced in fiscal 2012 the reduction of approximately 10% of the Company's salaried headcount. In fiscal 2012 and fiscal 2013, the Company implemented the salaried headcount reductions. Additionally, beginning in fiscal 2013, the Company exited the placement of lawn and garden products at national mass retailers. The Engines Segment continues to support lawn and garden equipment OEMs who provide lawn and garden equipment to these retailers. Workforce reductions associated with the Company's restructuring initiatives impacted approximately 1,250 regular and temporary employees globally.

In October 2012, the Board of Directors of the Company authorized an amendment to the Company's defined benefit retirement plans for U.S., non-bargaining employees. The amendment freezes accruals for all non-bargaining employees effective January 1, 2014. The Company recorded a pre-tax curtailment charge of $1.9 million in the second quarter of fiscal 2013 related to the defined benefit plan change.

InDuring the first quarter of fiscal 2013,2015, the Company completedannounced and began implementing restructuring actions to narrow its assortment of lower-priced Snapper consumer lawn and garden equipment and consolidate its Products Segment manufacturing facilities in order to reduce costs. The Company will close its McDonough, Georgia plant in the salesecond half of its dormant manufacturing facilityfiscal 2015 and consolidate production into existing facilities in Jefferson, Wisconsin and a land parcel adjacent to its Ostrava, Czech Republic plant. In the fourth quarter of fiscal 2013, the Company completed the sale of the Ostrava, Czech Republic facility.New York. 

The Company reports restructuring charges associated with manufacturing and related initiatives as costs of goods sold within the Condensed Consolidated Statements of Operations. Restructuring charges reflected as costs of goods sold include, but are not limited to, termination and related costs associated with manufacturing employees, asset impairments and accelerated depreciation relating to manufacturing initiatives, and other costs directly related to the restructuring initiatives implemented. The Company reports all other non-manufacturing related restructuring charges as engineering, selling, general and administrative expenses on the Condensed Consolidated Statements of Operations.

The restructuring actions for the third quarter of fiscal 2014discussed above resulted in pre-tax income of $0.8 million ($0.5 million after tax or $0.01 per diluted share) related to the reduction of an estimated reserve related to plant closure costs. The Company recorded pre-tax charges of $5.1$7.8 million ($3.95.1 million after tax or $0.08$0.11 per diluted share) duringrecorded within the nine months ended March 30, 2014 related toProducts Segment for the restructuring actions discussed above. The Engines Segment recorded pre-tax income of $0.8 million and pre-tax charges of $3.0 million during the thirdfirst quarter and first nine months of fiscal 2014, respectively. The Products Segment recorded no pre-tax restructuring charges during the third quarter and $2.1 million of pre-tax restructuring charges during the first nine months of fiscal 2014.2015.

The following is a rollforward of the restructuring reserve (included in Accrued Liabilities within the Condensed Consolidated Balance Sheets) attributable to all Engines Segment restructuring activities for the nine month period ended March 30, 2014 (in thousands):
  Termination Benefits Other Costs Total
Reserve Balance at June 30, 2013 $99
 $2,575
 $2,674
Provisions 348
 2,699
 3,047
Cash Expenditures (447) (3,233) (3,680)
Other Adjustments (1)
 —
 (2,041) (2,041)
Reserve Balance at March 30, 2014 $—
 $—
 $—
(1)Other adjustments includes $0.5 million of accelerated depreciation and $1.5 million of asset impairments.


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The following is a rollforward of the restructuring reserve (included in Accrued Liabilities within the Condensed Consolidated Balance Sheets) attributable to all Products Segment restructuring activities for the ninethree month period ended March 30,September 28, 2014 (in thousands):
 Termination Benefits Other Costs Total Termination Benefits Other Costs Total
Reserve Balance at June 30, 2013 $94
 $45
 $139
Reserve Balance at June 29, 2014 $—
 $105
 $105
Provisions 256
 1,826
 2,082
 2,391
 5,410
 7,801
Cash Expenditures (229) (325) (554) (224) (351) (575)
Other Adjustments (2)(1)
 —
 (1,546) (1,546) —
 (5,164) (5,164)
Reserve Balance at March 30, 2014 $121
 $—
 $121
Reserve Balance at September 28, 2014 $2,167
 $—
 $2,167
(2)(1) Other adjustments includes $1.5$1.2 million of asset impairments.impairments and $4.0 million of accelerated depreciation.
6. Earnings (Loss) Per Share
    
The Company computes earnings (loss) per share using the two-class method, an earnings allocation formula that determines earnings (loss) per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. The Company’s unvested grants of restricted stock and deferred stock awards contain non-forfeitable rights to dividends (whether paid or unpaid), which are required to be treated as participating securities and included in the computation of basic earnings (loss) per share.

Information on earnings (loss) per share is as follows (in thousands, except per share data):
  Three Months Ended Nine Months Ended
  March 30,
2014		 March 31,
2013		 March 30,
2014		 March 31,
2013
Net Income $39,153
 $38,516
 $20,506
 $21,354
Less: Earnings Allocated to Participating Securities (1,150) (1,117) (552) (562)
Net Income Available to Common Shareholders $38,003
 $37,399
 $19,954
 $20,792
Average Shares of Common Stock Outstanding 46,129
 47,336
 46,549
 47,126
Diluted Average Shares Outstanding 46,245
 47,709
 46,615
 47,291
Basic Earnings Per Share $0.82
 $0.79
 $0.43
 $0.44
Diluted Earnings Per Share $0.82
 $0.78
 $0.43
 $0.44
  Three Months Ended
  September 28,
2014		 September 29,
2013
Net Loss $(15,279) $(19,349)
Less: Allocation to Participating Securities (132) (151)
Net Loss Available to Common Shareholders $(15,411) $(19,500)
Average Shares of Common Stock Outstanding 45,113
 46,997
Diluted Average Shares Outstanding 45,113
 46,997
Basic Earnings (Loss) Per Share $(0.34) $(0.41)
Diluted Earnings (Loss) Per Share $(0.34) $(0.41)


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The dilutive effect of the potential exercise of outstanding stock-based awards to acquire common shares is calculated using the treasury stock method. The following options to purchase shares of common stock were excluded from the calculation of diluted earnings (loss) per share as the exercise prices were greater than the average market price of the common shares:
 Three Months Ended Nine Months Ended Three Months Ended
 March 30,
2014		 March 31,
2013		 March 30,
2014		 March 31,
2013		 September 28,
2014		 September 29,
2013
Options to Purchase Shares of Common Stock (in thousands) 508
 1,590
 916
 1,590
 876
 1,348
Weighted Average Exercise Price of Options Excluded $36.68
 $34.13
 $29.62
 $34.13
 $20.31
 $31.88

As a result of the Company incurring a net loss for the three months ended September 28, 2014 and September 29, 2013, potential incremental common shares of 928,601 and 975,316, respectively, were excluded from the calculation of diluted earnings (loss) per share because the effect would have been anti-dilutive.

On August 8, 2012,January 22, 2014, the Board of Directors of the Company authorized up to $50 million in funds associated withfor use in the Company’s common share repurchase program with an expiration date of June 30, 2014.program. On January 22,August 13, 2014, the Board of Directors of the Company authorized up to an additional $50$50 million in funds for use inassociated with the Company’s common share repurchase program with an extension of the expiration date to June 30, 2016.program. As of March 30,September 28, 2014, the total remaining authorization was approximately $50.3 million.$69.5 million with an expiration date of June 30, 2016. The common share repurchase program authorizes the purchase of shares of the Company's common stock on the open market or in private transactions from time to time, depending on market conditions and certain governing loan covenants. During the ninethree months ended March 30,September 28, 2014, the Company repurchased 1,479,626905,164 shares on the open market at an average price of $20.3219.62 per share, as compared to 1,216,325482,926 shares purchased on the open market at an average price of $18.9620.08 per share during the ninethree months ended March 31,September 29, 2013.


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7. Investments

This caption represents the Company’s investments in unconsolidated affiliated companies.

During the third quarter of fiscal 2014, the Company joined with one of its independent distributors to form a venture to distribute service parts. The Company contributed non-cash assets in exchange for receiving an ownership interest in the venture. As a result of the transaction, the Company recorded an investment of $6.5 million. During the first quarter of fiscal 2015, a second independent distributor joined the venture. As a result of the transaction, the Company recorded an additional investment of $2.8 million. The Company will useuses the equity method to account for this investment. Subsequent to the first quarter of fiscal 2015, the venture acquired a third independent distributor.

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8. 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 Pension Benefits Other Postretirement Benefits
 Three Months Ended Three Months Ended Three Months Ended Three Months Ended
 March 30,
2014		 March 31,
2013		 March 30,
2014		 March 31,
2013		 September 28,
2014		 September 29,
2013		 September 28,
2014		 September 29,
2013
Components of Net Periodic Expense:        
Components of Net Periodic Expense (Income):        
Service Cost $1,911
 $3,166
 $83
 $89
 $830
 $1,938
 $85
 $89
Interest Cost on Projected Benefit Obligation 13,436
 12,276
 1,150
 1,199
 12,461
 13,452
 897
 1,149
Expected Return on Plan Assets (18,538) (18,873) —
 —
 (18,687) (18,566) —
 —
Amortization of:                
Transition Obligation —
 2
 —
 —
Prior Service Cost (Credit) 45
 47
 (724) (897) 45
 45
 (690) (724)
Actuarial Loss 6,276
 8,666
 1,504
 1,881
 3,297
 6,270
 1,147
 1,459
Net Periodic Expense $3,130
 $5,284
 $2,013
 $2,272
Net Periodic Expense (Income) $(2,054) $3,139
 $1,439
 $1,973

  Pension Benefits Other Postretirement Benefits
  Nine Months Ended Nine Months Ended
  March 30,
2014		 March 31,
2013		 March 30,
2014		 March 31,
2013
Components of Net Periodic Expense:        
Service Cost $5,735
 $10,138
 $250
 $268
Interest Cost on Projected Benefit Obligation 40,307
 37,878
 3,450
 3,596
Expected Return on Plan Assets (55,614) (56,958) —
 —
Amortization of:        
Transition Obligation —
 6
 —
 —
Prior Service Cost (Credit) 135
 319
 (2,172) (2,692)
Actuarial Loss 18,821
 26,155
 4,512
 5,644
Net Curtailment Loss —
 1,914
 —
 —
Net Periodic Expense $9,384
 $19,452
 $6,040
 $6,816

In October 2012, the Board of Directors of the Company authorizedOn January 1, 2014, an amendment to the Company's defined benefit retirement plans for U.S., non-bargaining employees. The amendment freezesbecame effective that froze accruals for all U.S. non-bargaining employees effectiveemployees. Also, on January 1, 2014. The Company recorded a pre-tax curtailment charge of $1.9 million in the second quarter of fiscal 2013 related to2014, amendments became effective that increased benefits under the defined benefit plan change.contribution plans.

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The Company expects to make benefit payments of $3.13.2 million attributable to its non-qualified pension plans during fiscal 2014.2015. During the first ninethree months of fiscal 2014,2015, the Company made payments of approximately $2.20.5 million for its non-qualified pension plans. The Company anticipates making benefit payments of approximately $15.913.9 million for its other postretirement benefit plans during fiscal 2014.2015. During the first ninethree months of fiscal 2014,2015, the Company made payments of $13.04.5 million for its other postretirement benefit plans.
 
On July 6, 2012, the Moving Ahead for Progress in the 21st Century Act (MAP-21 Act) was signed into law. The MAP-21 Act included certain pension-related provisions, which included changes to the methodology used to determine discount rates for ERISA funding purposes for qualified defined benefit pension plans. Based on historical interest rates, the MAP-21 Act allows plan sponsors to utilize a higher discount rate to value pension liabilities, which results in lower required pension plan contributions under ERISA. During the first ninethree months of fiscal 2014,2015, the Company made no cash contributions to the qualified pension plan. Based upon current regulations and actuarial studies, the Company is required to make no minimum contributions to the qualified pension plan during the remainder of fiscal 2014 or in 2015. The Company may be required to make further contributions in future years depending upon the actual return on plan assets and the funded status of the plan in future periods.
9. Stock Incentives
 
Stock based compensation expense 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 $1.3 million and $5.8$1.6 million for the three and nine months ended March 30,September 28, 2014, respectively.. For the three and nine months ended March 31,September 29, 2013, stock based compensation expense was $1.4 million and $5.2 million, respectively.$3.0 million.

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10. Derivative Instruments & Hedging Activities

The Company enters into derivative contracts designated as cash flow hedges to manage certain interest rate, foreign currency and commodity exposures. Company policy allows derivatives to be used only for identifiable exposures and, therefore, the Company does not enter into hedges for trading purposes where the sole objective is to generate profits.
    
The Company formally designates the financial instrument as a hedge of a specific underlying exposure and documents both the risk management objectives and strategies for undertaking the hedge. The Company formally assesses, both at the inception and at least quarterly thereafter, whether the financial instruments that are used in hedging transactions are effective at offsetting changes in the forecasted cash flows of the related underlying exposure. Because of the high degree of effectiveness between the hedging instrument and the underlying exposure being hedged, fluctuations in the value of the derivative instruments are generally offset by changes in the forecasted cash flows of the underlying exposures being hedged. Derivative financial instruments are recorded on the Condensed Consolidated Balance Sheets as assets or liabilities, measured at fair value. The effective portion of gains or losses on the derivative designated as cash flow hedges are reported as a component of Accumulated Other Comprehensive Income (Loss) (AOCI) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Any ineffective portion of a financial instrument's change in fair value is immediately recognized in earnings.

The Company discontinues hedge accounting prospectively when it determines that the derivative is no longer effective in offsetting cash flows attributable to the hedged risk, the derivative expires or is sold, terminated, or exercised, the cash flow hedge is dedesignated because a forecasted transaction is not probable of occurring, or management determines to remove the designation of the cash flow hedge.

In all situations in which hedge accounting is discontinued and the derivative remains outstanding, the Company continues to carry the derivative at its fair value on the balance sheet and recognizes any subsequent changes in its fair value in earnings. When it is probable that a forecasted transaction will not occur, the Company discontinues hedge accounting and recognizes immediately in earnings gains and losses that were accumulated in other comprehensive income related to the hedging relationship.
    
The Company enters into interest rate swaps to manage a portion of its interest rate risk from financing certain dealer and distributor inventories through a third party financing source. The swaps are designated as cash flow hedges and are used to effectively fix the interest payments to a third party financing source, exclusive of lender

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spreads, ranging from 1.17% to 1.60% for a notional principal amount of $95 million with expiration dates ranging from July 2017 through May 2019.

The Company enters into forward foreign currency contracts to hedge the risk from forecasted third party and intercompany sales or payments denominated in foreign currencies. These obligations generally require the Company to exchange foreign currencies for U.S. Dollars, Australian Dollars, Brazilian Real, Canadian Dollars, Chinese Renminbi, Euros, Japanese Yen or Mexican Pesos. These contracts generally do not have a maturity of more than twenty-four months.
    
The Company uses raw materials that are subject to price volatility. The Company hedges a portion of its exposure to the variability of cash flows associated with commodities used in the manufacturing process by entering into forward purchase contracts or commodity swaps. Derivative contracts designated as cash flow hedges are used by the Company to reduce exposure to variability in cash flows associated with future purchases of natural gas and aluminum.gas. These contracts generally do not have a maturity of more than twenty-four months.
    
The Company has considered the counterparty credit risk related to all its interest rate, foreign currency and commodity derivative contracts and deems any risk of counterparty default to be minimal.
    

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The notional amount of derivative contracts outstanding at the end of the period is indicative of the level of the Company’s derivative activity during the period. As of March 30,September 28, 2014 and June 30, 201329, 2014, the Company had the following outstanding derivative contracts (in thousands):
ContractContract Notional AmountContract Notional Amount
   March 30,
2014		 June 30,
2013		   September 28,
2014		 June 29,
2014
Interest Rate:        
LIBOR Interest Rate (U.S. Dollars) Fixed 95,000
 95,000
 Fixed 95,000
 95,000
Foreign Currency:        
Australian Dollar Sell 13,722
 6,392
 Sell 19,582
 19,904
Brazilian Real Sell 31,621
 —
Canadian Dollar Sell 2,250
 —
 Sell 5,500
 3,100
Chinese Renminbi Buy 157,175
 —
Euro Sell 34,700
 31,000
 Sell 52,650
 49,300
Japanese Yen Buy 620,000
 905,000
 Buy 694,000
 530,000
Mexican Peso Sell 5,000
 3,345
 Sell 9,345
 3,000
Commodity:        
Aluminum (Metric Tons) Buy 4
 18
Natural Gas (Therms) Buy 2,183
 5,423
 Buy 8,735
 5,686

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The location and fair value of derivative instruments reported in the Condensed Consolidated Balance Sheets are as follows (in thousands):
Balance Sheet Location Asset (Liability) Fair Value Asset (Liability) Fair Value
 March 30,
2014		 June 30,
2013		 September 28,
2014		 June 29,
2014
Interest rate contracts        
Other Long-Term Assets $242
 $257
 $185
 $43
Other Long-Term Liabilities (965) (1,020) (780) (1,209)
Foreign currency contracts        
Other Current Assets 337
 1,752
 6,224
 337
Other Long-Term Assets 41
 —
 441
 12
Accrued Liabilities (1,629) (1,138) (374) (665)
Other Long-Term Liabilities —
 (9)
Commodity contracts        
Other Current Assets 129
 —
 3
 39
Accrued Liabilities (505) (3,250) (118) (35)
Other Long-Term Liabilities —
 (5) (24) (14)
 $(2,350) $(3,404) $5,557
 $(1,501)

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The effect of derivative instruments on the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss) is as follows (in thousands):
  Three months ended March 30, 2014
  
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 $15
 Net Sales $(302) $—
Foreign currency contracts - sell 348
 Net Sales (138) —
Foreign currency contracts - buy 170
 Cost of Goods Sold (310) —
Commodity contracts 848
 Cost of Goods Sold (1,165) —
  $1,381
   $(1,915) $—
  Three months ended March 31, 2013
  
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 $203
 Net Sales $—
 $—
Foreign currency contracts - sell 1,952
 Net Sales (12) —
Foreign currency contracts - buy (16) Cost of Goods Sold (786) —
Commodity contracts (528) Cost of Goods Sold (3,207) —
  $1,611
   $(4,005) $—

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 Nine months ended March 30, 2014 Three months ended September 28, 2014
 
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)
 
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 $20
 Net Sales $(899) $—
 $351
 Net Sales $(311) $—
Foreign currency contracts - sell (751) Net Sales (248) —
 3,445
 Net Sales 464
 —
Foreign currency contracts - buy 142
 Cost of Goods Sold (949) —
 (157) Cost of Goods Sold (71) —
Commodity contracts 3,157
 Cost of Goods Sold (4,823) —
 28
 Cost of Goods Sold (179) —
 $2,568
 $(6,919) $—
 $3,667
 $(97) $—

 Nine months ended March 31, 2013 Three months ended September 29, 2013
 
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)
 
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 $(137) Net Sales $—
 $—
 $(250) Net Sales $(295) $—
Foreign currency contracts - sell 118
 Net Sales 77
 —
 (948) Net Sales 5
 —
Foreign currency contracts - buy (278) Cost of Goods Sold (859) —
 39
 Cost of Goods Sold (467) —
Commodity contracts 1,267
 Cost of Goods Sold (7,591) —
 878
 Cost of Goods Sold (1,498) —
 $970
 $(8,373) $—
 $(281) $(2,255) $—

During the next twelve months, the estimated net amount of lossesincome on cash flow hedges as of March 30,September 28, 2014 expected to be reclassified out of AOCI into earnings is $1.14.2 million.
11. 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.

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The following table presents information about the Company’s financial assets and liabilities measured at fair value on a recurring basis as of March 30,September 28, 2014 and June 30, 201329, 2014 (in thousands):
   Fair Value Measurements Using   Fair Value Measurements Using
 March 30,
2014		 Level 1 Level 2 Level 3 September 28,
2014		 Level 1 Level 2 Level 3
Assets:                
Derivatives $749
 $—
 $749
 $—
 $6,853
 $—
 $6,853
 $—
Liabilities:                
Derivatives $3,099
 $—
 $3,099
 $—
 $1,296
 $—
 $1,296
 $—
 June 30,
2013		 Level 1 Level 2 Level 3 June 29,
2014		 Level 1 Level 2 Level 3
Assets:                
Derivatives $2,009
 $—
 $2,009
 $—
 $431
 $—
 $431
 $—
Liabilities:                
Derivatives $5,413
 $—
 $5,413
 $—
 $1,932
 $—
 $1,932
 $—

The fair value for Level 2 measurements are based upon the respective quoted market prices for comparable instruments in active markets, which include current market pricing for forward purchases of commodities, foreign currency forwards, and current interest rates.

The Company has currently chosen not to elect the fair value option for any items that are not already required to be measured at fair value in accordance with accounting principles generally accepted in the United States.

The estimated fair value of the Company's Senior Notes (as defined in Note 16) at March 30,September 28, 2014 and June 30, 201329, 2014 was $251.5252.0 million and $250.9251.4 million, respectively, compared to the carrying value of $225.0 million on each date. The estimated fair value of the Senior Notes is based on quoted market prices for similar instruments and is, therefore, classified as Level 2 within the valuation hierarchy. The carrying value of the Revolver (as defined in Note 16) and short-term debt approximates fair value since the underlying rate of interest is variable based upon LIBOR rates.  

The Company believes that the carrying values of cash and cash equivalents, trade receivables, and accounts payable are reasonable estimates of their fair values at March 30,September 28, 2014 and June 30, 201329, 2014 due to the short-term nature of these instruments.
12. Warranty

The Company recognizes the cost associated with its standard warranty on Engines and Products at the time of sale. The general warranty period begins at the time of sale and typically covers two years, but may vary due to product type and geographic location. 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):
 Nine Months Ended Three Months Ended
 March 30,
2014		 March 31,
2013		 September 28,
2014		 September 29,
2013
Beginning Balance $45,037
 $46,013
 $44,744
 $45,037
Payments (20,336) (20,455) (8,178) (8,330)
Provision for Current Year Warranties 20,889
 21,209
 6,251
 5,381
Changes in Estimates (616) (472) (14) 42
Ending Balance $44,974
 $46,295
 $42,803
 $42,130


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13. Income Taxes

The effective tax rate for the thirdfirst quarter of fiscal 20142015 was 26.1%40.9%, compared to 27.6%29.3% for the same respective period of fiscal 2013.2014. The tax rate for the third quarter of fiscal 2014 included a taxpayer election which provided the Company a $2.9 million tax benefit that was previously unavailable as well as a benefit of $0.7 million from income related to foreign operations subject to different statutory tax rates.  The tax rate for the third quarter of fiscal 2013 included benefits for the reenactment of the U.S. federal research and development and other credits in the amount of $1.0 million, foreign tax credits in the amount of $0.5 million, and $1.7 million from income related to foreign operations subject to different statutory rates. The effectivehigher tax rate for the first nine monthsquarter of fiscal 20142015 was 26.6%, compared to 27.5%primarily driven by the reversal of previously recorded reserves as a result of the effective settlement of the Company’s IRS audit for the same respective period of fiscal 2013.its 2009-2010 consolidated income tax returns.

For the ninethree months ended March 30,September 28, 2014, the Company's unrecognized tax benefits increaseddecreased by $0.32.2 million, all of which $0.3 million impacted the current effective tax rate. This amount substantially consists of the aforementioned reversal of reserves.

Income tax returns are filed in the U.S., state, and foreign jurisdictions and related audits occur on a regular basis. In the U.S., theThe Company is no longer subject to U.S. federal income tax examinations before fiscal 20102012 and is currently under audit by U.S. federal and various state jurisdictions. With respect to the Company's major foreign jurisdictions, they are no longer subject to income tax examinations before fiscal 2003.2004.
14. 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.
On March 19, 2010, plaintiffs filed a complaint in the Ontario Superior Court of Justice in Canada (Robert Foster et al. v. Sears Canada, Inc. et al., Court File No. 766-2010) 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. On May 3, 2010, other plaintiffs filed a similar complaint in the Montreal Superior Court in Canada (Eric Liverman, et al. v. Deere & Company, et al., Court File No. 500-06-000507-109). Both proceedings were based on various theories of Canadian law and sought unspecified damages.
On June 27, 2013, the Company entered into a Canadian Lawnmower Class Action National Settlement Agreement (“Settlement”) that resolved all horsepower claims brought by all persons in Canada who purchased lawn mowers in Canada during the class period (defined as January 1, 1994 through December 31, 2012), except certain specified persons. The Settlement was approved by the Ontario Court and the Quebec Court in September 2013, and all payments required by the Company have been made. As a result of the Settlement, the Company recorded a total charge of US $1.9 million as a Litigation Settlement expense on the Statement of Operations in the fourth quarter of fiscal year 2013.
On May 14, 2010, the Company notified retirees and certain retirement eligible employees of various amendments to the Company-sponsored retiree medical plans intended 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 U.S. District Court for the Eastern District of Wisconsin (Merrill,(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)10-C-0700), contesting the Company's right to make these changes. 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. A class has been certified, and discovery is underway inhas been concluded. Each party filed a summary judgment motion on September 22, 2014. Replies to the case.motions are due on November 26, 2014.
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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15. Segment Information

The Company operates two reportable business segments that are managed separately based on fundamental differences in their operations. Beginning in fiscal 2015, the Company is using “segment income (loss)” as the primary measure to evaluate operating performance and allocate capital resources for the Engines and Products Segments. Previously, the Company used income (loss) from operations. Segment income (loss) is defined as income (loss) from operations plus equity in earnings of unconsolidated affiliates. The Company has recast prior year amounts for comparability. Summarized segment data is as follows (in thousands):
 Three Months Ended Nine Months Ended Three Months Ended
 March 30,
2014		 March 31,
2013		 March 30,
2014		 March 31,
2013		 September 28,
2014		 September 29,
2013
NET SALES:            
Engines $452,359
 $451,921
 $901,858
 $890,631
 $153,116
 $183,787
Products 205,160
 231,532
 529,724
 602,323
 166,128
 153,037
Inter-Segment Eliminations (29,116) (46,194) (69,283) (107,609) (26,615) (19,520)
Total * $628,403
 $637,259
 $1,362,299
 $1,385,345
* International sales included in net sales based on product shipment destination $159,989
 $166,722
 $451,985
 $453,335
Total $292,629
 $317,304
GROSS PROFIT:            
Engines $107,930
 $100,981
 $187,423
 $181,980
 $27,800
 $25,236
Products 22,365
 26,546
 62,149
 63,798
 19,384
 17,825
Inter-Segment Eliminations (45) (739) 1,875
 1,793
 137
 770
Total $130,250
 $126,788
 $251,447
 $247,571
 $47,321
 $43,831
INCOME (LOSS) FROM OPERATIONS:        
SEGMENT INCOME (LOSS):    
Engines $60,345
 $57,058
 $50,528
 $48,574
 $(13,677) $(16,557)
Products (4,913) (199) (16,783) (11,787) (8,291) (7,615)
Inter-Segment Eliminations (45) (739) 1,875
 1,793
 137
 770
Total $55,387
 $56,120
 $35,620
 $38,580
 $(21,831) $(23,402)

Pre-tax restructuring charges (income)and acquisition related charges included in gross profit were as follows (in thousands):
 Three Months Ended Nine Months Ended Three Months Ended
 March 30,
2014		 March 31,
2013		 March 30,
2014		 March 31,
2013		 September 28,
2014		 September 29,
2013
PRE-TAX RESTRUCTURING CHARGES (INCOME) INCLUDED IN GROSS PROFIT:        
PRE-TAX RESTRUCTURING CHARGES AND ACQUISITION RELATED CHARGES INCLUDED IN GROSS PROFIT:    
Engines $(774) $5,409
 $2,622
 $7,346
 $—
 $1,765
Products —
 1,236
 2,082
 7,624
 8,018
 1,820
Total $(774) $6,645
 $4,704
 $14,970
 $8,018
 $3,585
    
Pre-tax restructuring charges (income)and acquisition related charges included in segment income (loss) from operations were as follows (in thousands):
 Three Months Ended Nine Months Ended Three Months Ended
 March 30,
2014		 March 31,
2013		 March 30,
2014		 March 31,
2013		 September 28,
2014		 September 29,
2013
PRE-TAX RESTRUCTURING CHARGES (INCOME) INCLUDED IN INCOME (LOSS) FROM OPERATIONS:        
PRE-TAX RESTRUCTURING CHARGES AND ACQUISITION RELATED CHARGES INCLUDED IN SEGMENT INCOME (LOSS):    
Engines $(774) $5,409
 $3,047
 $10,781
 $—
 $1,765
Products —
 1,236
 2,082
 7,624
 9,151
 1,820
Total $(774) $6,645
 $5,129
 $18,405
 $9,151
 $3,585

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16. Debt

The following is a summary of the Company’s long-term indebtedness (in thousands):
 March 30,
2014		 June 30,
2013		 September 28,
2014		 June 29,
2014
Senior Notes $225,000
 $225,000
 $225,000
 $225,000
Multicurrency Credit Agreement —
 —
 —
 —
 $225,000
 $225,000
 $225,000
 $225,000
 
On December 15, 2010, the Company issued $225 million of 6.875% Senior Notes ("Senior Notes") due December 15, 2020.  

On October 13, 2011,21, 2013, the Company entered into aan amendment to its $500 million multicurrency credit agreement (the “Revolver”). On October 21, 2013, the Company entered into an amendment to the Revolver,, which, among other things, extended the maturity of the Revolver from October 13, 2016 to October 21, 2018. The initial maximum availability under the revolving credit facility is $500 million. Availability under the revolving credit facility is reduced by outstanding letters of credit. The Company may from time to time increase the maximum availability under the revolving credit facility by up to $250 million if certain conditions are satisfied. As of March 30, 2014, there were no borrowings under the Revolver. In connection with the amendment to the Revolver in the second quarter of fiscal 2014, the Company incurred approximately $0.9$0.9 million in new debt issuance costs, which are being amortized over the life of the Revolver using the straight-line method. As of September 28, 2014, there were no borrowings under the Revolver.

The Senior Notes and Revolver 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 use proceeds from sales of its assets. The Revolver contains financial covenants that require the Company to maintain a minimum interest coverage ratio and impose a maximum average leverage ratio.

17. Separate Financial Information of Subsidiary Guarantor of Indebtedness

Under the terms of the Company’s Senior Notes and the Revolver (collectively, the “Domestic Indebtedness”), Briggs & Stratton Power Products Group, LLC, a 100% owned subsidiary of the Company, is the joint and several guarantor of the Domestic Indebtedness (the “Guarantor”). The guarantees are full and unconditional guarantees, except for certain customary limitations. 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):
 March 30, 2014 Carrying Amount 
Maximum
Guarantee
 September 28, 2014 Carrying Amount 
Maximum
Guarantee
Senior Notes $225,000
 $225,000
 $225,000
 $225,000
Multicurrency Credit Agreement $—
 $500,000
 $—
 $500,000

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

CONSOLIDATING BALANCE SHEET
As of March 30,September 28, 2014
(Unaudited)
 
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated 
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
CURRENT ASSETS:                    
Cash and Cash Equivalents $57,558
 $1,969
 $47,711
 $—
 $107,238
 $5,286
 $1,325
 $55,287
 $—
 $61,898
Accounts Receivable, Net 184,125
 113,595
 41,114
 —
 338,834
 39,949
 65,113
 61,251
 —
 166,313
Intercompany Accounts Receivable 17,870
 2,772
 31,439
 (52,081) —
 23,193
 7,916
 40,156
 (71,265) —
Inventories, Net 170,082
 160,119
 65,103
 —
 395,304
 263,039
 162,690
 81,159
 —
 506,888
Deferred Income Tax Asset 30,179
 14,983
 1,535
 —
 46,697
 31,715
 14,315
 1,874
 —
 47,904
Prepaid Expenses and Other Current Assets 11,711
 2,593
 10,275
 —
 24,579
 31,432
 1,983
 6,384
 —
 39,799
Total Current Assets $471,525
 $296,031
 $197,177
 $(52,081) $912,652
 $394,614
 $253,342
 $246,111
 $(71,265) $822,802
OTHER ASSETS:                    
Goodwill $128,300
 $—
 $18,755
 $—
 $147,055
 $128,300
 $—
 $32,676
 $—
 $160,976
Investments 25,382
 —
 —
 —
 25,382
 27,056
 —
 —
 —
 27,056
Investments in Subsidiaries 480,241
 —
 —
 (480,241) —
 515,452
 —
 —
 (515,452) —
Intercompany Note Receivable 56,058
 81,167
 18,927
 (156,152) —
 50,984
 95,772
 17,258
 (164,014) —
Debt Issuance Costs 4,916
 —
 —
 —
 4,916
 4,428
 —
 —
 —
 4,428
Other Intangible Assets, Net —
 61,710
 24,018
 —
 85,728
 —
 55,609
 45,985
 —
 101,594
Long-Term Deferred Income Tax Asset 48,407
 —
 313
 (21,288) 27,432
 27,417
 —
 291
 (27,417) 291
Other Long-Term Assets, Net 10,152
 2,629
 1,360
 —
 14,141
 7,867
 2,134
 1,457
 —
 11,458
Total Other Assets $753,456
 $145,506
 $63,373
 $(657,681) $304,654
 $761,504
 $153,515
 $97,667
 $(706,883) $305,803
PLANT AND EQUIPMENT, NET 220,902
 41,005
 16,181
 —
 278,088
 236,240
 35,162
 25,519
 —
 296,921
TOTAL ASSETS $1,445,883
 $482,542
 $276,731
 $(709,762) $1,495,394
 $1,392,358
 $442,019
 $369,297
 $(778,148) $1,425,526
                    
CURRENT LIABILITIES:                    
Accounts Payable $110,243
 $54,006
 $22,403
 $—
 $186,652
 $103,196
 $47,320
 $36,698
 $—
 $187,214
Intercompany Accounts Payable 19,835
 15,949
 16,297
 (52,081) —
 30,047
 6,124
 35,094
 (71,265) —
Accrued Liabilities 102,751
 35,110
 15,423
 —
 153,284
 84,062
 36,985
 19,841
 —
 140,888
Total Current Liabilities $232,829
 $105,065
 $54,123
 $(52,081) $339,936
 $217,305
 $90,429
 $91,633
 $(71,265) $328,102
OTHER LIABILITIES:                    
Accrued Pension Cost $137,829
 $413
 $—
 $—
 $138,242
 $119,578
 $408
 $583
 $—
 $120,569
Accrued Employee Benefits 23,616
 —
 —
 —
 23,616
 24,538
 —
 —
 —
 24,538
Accrued Postretirement Health Care Obligation 49,657
 14,889
 —
 —
 64,546
 41,770
 14,352
 —
 —
 56,122
Intercompany Note Payable 84,940
 —
 71,212
 (156,152) —
 105,355
 —
 58,659
 (164,014) —
Deferred Income Tax Liabilities —
 20,780
 508
 (21,288) —
 —
 20,874
 10,449
 (27,417) 3,906
Other Long-Term Liabilities 26,343
 11,064
 978
 —
 38,385
 26,779
 7,532
 945
 —
 35,256
Long-Term Debt 225,000
 —
 —
 —
 225,000
 225,000
 —
 —
 —
 225,000
Total Other Liabilities $547,385
 $47,146
 $72,698
 $(177,440) $489,789
 $543,020
 $43,166
 $70,636
 $(191,431) $465,391
TOTAL SHAREHOLDERS’ INVESTMENT: 665,669
 330,331
 149,910
 (480,241) 665,669
 632,033
 308,424
 207,028
 (515,452) 632,033
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT $1,445,883
 $482,542
 $276,731
 $(709,762) $1,495,394
 $1,392,358
 $442,019
 $369,297
 $(778,148) $1,425,526





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CONSOLIDATING BALANCE SHEET
As of June 29, 2014
  
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
CURRENT ASSETS:          
Cash and Cash Equivalents $138,926
 $2,680
 $53,062
 $—
 $194,668
Accounts Receivable, Net 86,099
 100,062
 34,429
 —
 220,590
Intercompany Accounts Receivable 15,987
 3,492
 32,826
 (52,305) —
Inventories, Net 165,159
 146,749
 64,195
 —
 376,103
Deferred Income Tax Asset 33,343
 13,904
 1,711
 —
 48,958
Prepaid Expenses and Other Current Assets 17,436
 3,508
 9,072
 —
 30,016
Total Current Assets $456,950
 $270,395
 $195,295
 $(52,305) $870,335
OTHER ASSETS:          
Goodwill $128,300
 $—
 $16,222
 $—
 $144,522
Investments 27,137
 —
 —
 —
 27,137
Investments in Subsidiaries 470,391
 —
 —
 (470,391) —
Intercompany Note Receivable 49,293
 84,567
 13,876
 (147,736) —
Debt Issuance Costs 4,671
 —
 —
 —
 4,671
Other Intangible Assets, Net —
 55,909
 24,408
 —
 80,317
Long-Term Deferred Income Tax Asset 32,507
 —
 677
 (18,006) 15,178
Other Long-Term Assets, Net 7,120
 2,088
 1,331
 —
 10,539
Total Other Assets $719,419
 $142,564
 $56,514
 $(636,133) $282,364
PLANT AND EQUIPMENT, NET 241,166
 39,863
 15,978
 —
 297,007
TOTAL ASSETS $1,417,535
 $452,822
 $267,787
 $(688,438) $1,449,706
           
CURRENT LIABILITIES:          
Accounts Payable $105,532
 $45,171
 $18,568
 $—
 $169,271
Intercompany Accounts Payable 21,859
 6,002
 24,444
 (52,305) —
Accrued Liabilities 85,735
 31,863
 16,318
 —
 133,916
Total Current Liabilities $213,126
 $83,036
 $59,330
 $(52,305) $303,187
OTHER LIABILITIES:          
Accrued Pension Cost $125,481
 $421
 $627
 $—
 $126,529
Accrued Employee Benefits 24,491
 —
 —
 —
 24,491
Accrued Postretirement Health Care Obligation 44,928
 14,362
 —
 —
 59,290
Intercompany Note Payable 85,343
 —
 62,393
 (147,736) —
Deferred Income Tax Liabilities 

 18,006
 —
 (18,006) —
Other Long-Term Liabilities 26,732
 11,037
 1,006
 —
 38,775
Long-Term Debt 225,000
 —
 —
 —
 225,000
Total Other Liabilities $531,975
 $43,826
 $64,026
 $(165,742) $474,085
TOTAL SHAREHOLDERS’ INVESTMENT: 672,434
 325,960
 144,431
 (470,391) 672,434
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT $1,417,535
 $452,822
 $267,787
 $(688,438) $1,449,706







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CONSOLIDATING BALANCE SHEET
As of June 30, 2013
  
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
CURRENT ASSETS:          
Cash and Cash Equivalents $162,628
 $1,275
 $24,542
 $—
 $188,445
Accounts Receivable, Net 80,017
 80,531
 30,252
 —
 190,800
Intercompany Accounts Receivable 11,987
 5,971
 46,366
 (64,324) —
Inventories, Net 165,600
 175,523
 66,972
 —
 408,095
Deferred Income Tax Asset 32,543
 13,923
 1,068
 —
 47,534
Prepaid Expenses and Other Current Assets 15,194
 1,967
 6,946
 —
 24,107
Total Current Assets $467,969
 $279,190
 $176,146
 $(64,324) $858,981
OTHER ASSETS:          
Goodwill $128,300
 $—
 $19,052
 $—
 $147,352
Investments 19,764
 —
 —
 —
 19,764
Investments in Subsidiaries 520,604
 —
 —
 (520,604) —
Intercompany Note Receivable 45,747
 81,844
 14,486
 (142,077) —
Debt Issuance Costs 4,710
 —
 —
 —
 4,710
Other Intangible Assets, Net —
 62,612
 25,368
 —
 87,980
Long-Term Deferred Income Tax Asset 48,694
 —
 83
 (21,233) 27,544
Other Long-Term Assets, Net 9,810
 2,957
 1,258
 —
 14,025
Total Other Assets $777,629
 $147,413
 $60,247
 $(683,914) $301,375
PLANT AND EQUIPMENT, NET 224,002
 45,475
 17,718
 —
 287,195
TOTAL ASSETS $1,469,600
 $472,078
 $254,111
 $(748,238) $1,447,551
           
CURRENT LIABILITIES:          
Accounts Payable $91,965
 $37,112
 $14,112
 $—
 $143,189
Intercompany Accounts Payable 38,078
 5,197
 21,049
 (64,324) —
Short-Term Debt —
 —
 300
 —
 300
Accrued Liabilities 111,146
 7,452
 12,668
 —
 131,266
Total Current Liabilities $241,189
 $49,761
 $48,129
 $(64,324) $274,755
OTHER LIABILITIES:          
Accrued Pension Cost $149,614
 $472
 $45
 $—
 $150,131
Accrued Employee Benefits 23,458
 —
 —
 —
 23,458
Accrued Postretirement Health Care Obligation 57,298
 15,397
 —
 —
 72,695
Intercompany Note Payable 85,095
 —
 56,982
 (142,077) —
Deferred Income Tax Liabilities —
 21,233
 —
 (21,233) —
Other Long-Term Liabilities 20,008
 12,541
 1,025
 —
 33,574
Long-Term Debt 225,000
 —
 —
 —
 225,000
Total Other Liabilities $560,473
 $49,643
 $58,052
 $(163,310) $504,858
TOTAL SHAREHOLDERS’ INVESTMENT: 667,938
 372,674
 147,930
 (520,604) 667,938
TOTAL LIABILITIES AND SHAREHOLDERS’ INVESTMENT $1,469,600
 $472,078
 $254,111
 $(748,238) $1,447,551


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CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Three Months EndedMarch 30,September 28, 2014
(Unaudited)
 
 
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated 
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
Net Sales $429,788
 $172,493
 $78,767
 $(52,645) $628,403
 $145,579
 $116,938
 $90,816
 $(60,704) $292,629
Cost of Goods Sold 334,097
 158,623
 58,852
 (52,645) 498,927
 123,956
 104,031
 71,179
 (60,704) 238,462
Restructuring Charges (774) —
 —
 —
 (774) —
 6,846
 —
 —
 6,846
Gross Profit 96,465
 13,870
 19,915
 —
 130,250
 21,623
 6,061
 19,637
 —
 47,321
Engineering, Selling, General and Administrative Expenses 43,267
 20,938
 10,658
 —
 74,863
 36,868
 17,657
 15,559
 —
 70,084
Equity in Income from Subsidiaries (3,658) —
 —
 3,658
 —
Restructuring Charges —
 955
 —
 —
 955
Equity in Loss from Subsidiaries 4,721
 —
 —
 (4,721) —
Income (Loss) from Operations 56,856
 (7,068) 9,257
 (3,658) 55,387
 (19,966) (12,551) 4,078
 4,721
 (23,718)
Interest Expense (4,720) 

 —
 —
 (4,720) (4,447) (71) —
 —
 (4,518)
Other Income, Net 2,078
 15
 202
 —
 2,295
 1,926
 460
 (13) —
 2,373
Income (Loss) before Income Taxes 54,214
 (7,053) 9,459
 (3,658) 52,962
 (22,487) (12,162) 4,065
 4,721
 (25,863)
Provision (Credit) for Income Taxes 15,061
 (2,598) 1,346
 —
 13,809
 (7,208) (4,481) 1,105
 —
 (10,584)
Net Income (Loss) $39,153
 $(4,455) $8,113
 $(3,658) $39,153
 $(15,279) $(7,681) $2,960
 $4,721
 $(15,279)
Comprehensive Income (Loss) $47,127
 $(4,542) $9,276
 $(4,734) $47,127
 $(19,164) $(7,407) $(2,500) $9,907
 $(19,164)
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Three Months EndedMarch 31,September 29, 2013
(Unaudited)
 
 
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated 
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
Net Sales $429,762
 $199,734
 $77,891
 $(70,128) $637,259
 $174,789
 $117,765
 $70,409
 $(45,659) $317,304
Cost of Goods Sold 335,570
 180,847
 57,537
 (70,128) 503,826
 153,466
 106,804
 55,277
 (45,659) 269,888
Restructuring Charges 5,354
 997
 294
 —
 6,645
 1,870
 228
 1,487
 —
 3,585
Gross Profit 88,838
 17,890
 20,060
 —
 126,788
 19,453
 10,733
 13,645
 —
 43,831
Engineering, Selling, General and Administrative Expenses 41,603
 18,642
 10,423
 —
 70,668
 37,508
 17,598
 13,656
 —
 68,762
Equity in Income from Subsidiaries (8,274) —
 —
 8,274
 —
Equity in Loss from Subsidiaries 5,553
 —
 —
 (5,553) —
Income (Loss) from Operations 55,509
 (752) 9,637
 (8,274) 56,120
 (23,608) (6,865) (11) 5,553
 (24,931)
Interest Expense (4,679) —
 (38) —
 (4,717) (4,494) —
 (16) —
 (4,510)
Other Income (Expense), Net 2,036
 24
 (254) —
 1,806
Other Income, Net 2,192
 90
 (189) —
 2,093
Income (Loss) before Income Taxes 52,866
 (728) 9,345
 (8,274) 53,209
 (25,910) (6,775) (216) 5,553
 (27,348)
Provision (Credit) for Income Taxes 14,350
 (332) 675
 —
 14,693
 (6,561) (2,504) 1,066
 —
 (7,999)
Net Income (Loss) $38,516
 $(396) $8,670
 $(8,274) $38,516
 $(19,349) $(4,271) $(1,282) $5,553
 $(19,349)
Comprehensive Income (Loss) $49,116
 $(272) $8,585
 $(8,313) $49,116
 $(15,027) $(7,119) $177
 $6,942
 $(15,027)







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CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)CASH FLOWS
For the NineThree Months Ended March 30,September 28, 2014
(Unaudited)
 
  
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
Net Sales $855,142
 $425,041
 $229,465
 $(147,349) $1,362,299
Cost of Goods Sold 688,280
 388,123
 177,094
 (147,349) 1,106,148
Restructuring Charges 2,693
 228
 1,783
 —
 4,704
Gross Profit 164,169
 36,690
 50,588
 —
 251,447
Engineering, Selling, General and Administrative Expenses 123,019
 56,628
 35,755
 —
 215,402
Restructuring Charges 77
 —
 348
 —
 425
Equity in Income from Subsidiaries 1,459
 —
 —
 (1,459) —
Income (Loss) from Operations 39,614
 (19,938) 14,485
 1,459
 35,620
Interest Expense (13,796) —
 (27) —
 (13,823)
Other Income, Net 5,882
 199
 57
 —
 6,138
Income (Loss) before Income Taxes 31,700
 (19,739) 14,515
 1,459
 27,935
Provision (Credit) for Income Taxes 11,194
 (7,275) 3,510
 —
 7,429
Net Income (Loss) $20,506
 $(12,464) $11,005
 $1,459
 $20,506
Comprehensive Income (Loss) $35,082
 $(12,747) $11,785
 $962
 $35,082
CONSOLIDATING STATEMENT OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS)
For the Nine Months Ended March 31, 2013
(Unaudited)
  
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
Net Sales $843,473
 $516,262
 $212,207
 $(186,597) $1,385,345
Cost of Goods Sold 677,715
 467,866
 163,820
 (186,597) 1,122,804
Restructuring Charges 7,074
 7,387
 509
 —
 14,970
Gross Profit 158,684
 41,009
 47,878
 —
 247,571
Engineering, Selling, General and Administrative Expenses 122,362
 53,265
 29,929
 —
 205,556
Restructuring Charges 3,435
 —
 —
 —
 3,435
Equity in Income from Subsidiaries (8,596) —
 —
 8,596
 —
Income (Loss) from Operations 41,483
 (12,256) 17,949
 (8,596) 38,580
Interest Expense (13,677) (3) (122) —
 (13,802)
Other Income, Net 4,251
 178
 231
 —
 4,660
Income (Loss) before Income Taxes 32,057
 (12,081) 18,058
 (8,596) 29,438
Provision (Credit) for Income Taxes 10,703
 (4,487) 1,868
 —
 8,084
Net Income (Loss) $21,354
 $(7,594) $16,190
 $(8,596) $21,354
Comprehensive Income (Loss) $64,977
 $(7,972) $20,105
 $(12,133) $64,977





  
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
Net Cash Provided by (Used in) Operating Activities $(62,214) $11,158
 $2,660
 $(482) $(48,878)
Cash Flows from Investing Activities:          
Additions to Plant and Equipment (4,623) (1,358) (1,409) —
 (7,390)
Proceeds Received on Disposition of Plant and Equipment 84
 57
 31
 —
 172
Cash Investment in Subsidiary (4,650) —
 —
 4,650
 —
Cash Paid for Acquisition, Net of Cash Acquired (62,056) —
 —
 —
 (62,056)
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt 14,429
 —
 —
 (14,429) —
Net Cash Provided by (Used in) Investing Activities (56,816) (1,301) (1,378) (9,779) (69,274)
Cash Flows from Financing Activities:          
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt —
 (11,212) (3,217) 14,429
 —
Treasury Stock Purchases (17,761) —
 —
 —
 (17,761)
Stock Option Exercise Proceeds and Tax Benefits 3,151
 —
 —
 —
 3,151
Cash Investment in Subsidiary —
 —
 4,168
 (4,168) —
Net Cash Provided by (Used in) Financing Activities (14,610) (11,212) 951
 10,261
 (14,610)
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents —
 —
 (8) —
 (8)
Net Increase (Decrease) in Cash and Cash Equivalents (133,640) (1,355) 2,225
 —
 (132,770)
Cash and Cash Equivalents, Beginning 138,926
 2,680
 53,062
 —
 194,668
Cash and Cash Equivalents, Ending $5,286
 $1,325
 $55,287
 $—
 $61,898

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CONSOLIDATING STATEMENT OF CASH FLOWS
For the Nine Months EndedMarch 30, 2014
(Unaudited)
  
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
Net Cash Provided by (Used in) Operating Activities $(48,051) $1,925
 $32,093
 $—
 $(14,033)
Cash Flows from Investing Activities:          
Additions to Plant and Equipment (26,474) (1,932) (1,065) —
 (29,471)
Proceeds Received on Disposition of Plant and Equipment 57
 33
 19
 —
 109
Cash Investment in Subsidiary 8,107
 —
 (8,107) —
 —
Net Cash Used in Investing Activities (18,310) (1,899) (9,153) —
 (29,362)
Cash Flows from Financing Activities:          
Repayments on Short-Term Debt —
 —
 (300) —
 (300)
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt (668) 668
 —
 —
 —
Debt Issuance Costs (949) —
 —
 —
 (949)
Treasury Stock Purchases (30,066) —
 —
 —
 (30,066)
Stock Option Exercise Proceeds and Tax Benefits 4,361
 —
 —
 —
 4,361
Cash Dividends Paid (11,387) —
 —
 —
 (11,387)
Net Cash Provided by (Used in) Financing Activities (38,709) 668
 (300) —
 (38,341)
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents —
 —
 529
 —
 529
Net Increase (Decrease) in Cash and Cash Equivalents (105,070) 694
 23,169
 —
 (81,207)
Cash and Cash Equivalents, Beginning 162,628
 1,275
 24,542
 —
 188,445
Cash and Cash Equivalents, Ending $57,558
 $1,969
 $47,711
 $—
 $107,238

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CONSOLIDATING STATEMENT OF CASH FLOWS
For the NineThree Months Ended March 31,September 29, 2013
(Unaudited)
 
 
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated 
Briggs & Stratton
Corporation
 
Guarantor
Subsidiaries
 
Non-Guarantor
Subsidiaries
 Eliminations Consolidated
Net Cash Provided by (Used in) Operating Activities $(135,858) $17,333
 $44,746
 $—
 $(73,779) $(58,591) $(8,847) $14,577
 $—
 $(52,861)
Cash Flows from Investing Activities:                    
Additions to Plant and Equipment (19,924) (4,861) (1,516) —
 (26,301) (10,498) (694) (458) —
 (11,650)
Proceeds Received on Disposition of Plant and Equipment 44
 5,664
 997
 —
 6,705
 26
 2
 —
 —
 28
Cash Investment in Subsidiary (18,195) —
 18,195
 —
 —
 1,570
 —
 (1,570) —
 —
Cash Paid for Acquisition, Net of Cash Acquired —
 —
 (59,627) —
 (59,627)
Net Cash Provided by (Used in) Investing Activities (38,075) 803
 (41,951) —
 (79,223) (8,902) (692) (2,028) —
 (11,622)
Cash Flows from Financing Activities:                    
Repayments on Short-Term Debt —
 —
 (900) —
 (900) —
 —
 (300) —
 (300)
Net Borrowings (Repayments) on Loans, Notes Payable and Long-Term Debt 57,954
 (22,604) —
 —
 35,350
 (9,818) 9,818
 —
 —
 —
Treasury Stock Purchases (23,057) —
 —
 —
 (23,057) (9,696) —
 —
 —
 (9,696)
Stock Option Exercise Proceeds and Tax Benefits 19,613
 —
 —
 —
 19,613
 994
 —
 —
 —
 994
Cash Dividends Paid (11,499) —
 —
 —
 (11,499)
Net Cash Provided by (Used in) Financing Activities 43,011

(22,604) (900) —
 19,507
 (18,520)
9,818
 (300) —
 (9,002)
Effect of Foreign Currency Exchange Rate Changes on Cash and Cash Equivalents —
 —
 (12) —
 (12) —
 —
 216
 —
 216
Net Increase (Decrease) in Cash and Cash Equivalents (130,922) (4,468) 1,883
 —
 (133,507) (86,013) 279
 12,465
 —
 (73,269)
Cash and Cash Equivalents, Beginning 133,108
 5,375
 17,592
 —
 156,075
 162,628
 1,275
 24,542
 —
 188,445
Cash and Cash Equivalents, Ending $2,186
 $907
 $19,475
 $—
 $22,568
 $76,615
 $1,554
 $37,007
 $—
 $115,176
 











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

RESULTS OF OPERATIONS

The following table is a reconciliation of financial results by segment, as reported, to adjusted financial results by segment, excluding restructuring actions and acquisition related charges (in thousands, except per share data):
 Three Months Ended Fiscal March Three Months Ended Fiscal September
 2014 Reported 
Adjustments(1)
 
2014 Adjusted(2)
 2013 Reported 
Adjustments(1)
 
2013 Adjusted(2)
 2015 Reported 
Adjustments(1)
 
2015 Adjusted (2)
 2014 Reported 
Adjustments(1)
 
2014 Adjusted(2)
NET SALES:                        
Engines $452,359
 $—
 $452,359
 $451,921
 $—
 $451,921
 $153,116
 $—
 $153,116
 $183,787
 $—
 $183,787
Products 205,160
 —
 205,160
 231,532
 —
 231,532
 166,128
 —
 166,128
 153,037
 —
 153,037
Inter-Segment Eliminations (29,116) —
 (29,116) (46,194) —
 (46,194) (26,615) —
 (26,615) (19,520) —
 (19,520)
Total $628,403
 $—
 $628,403
 $637,259
 $—
 $637,259
 $292,629
 $—
 $292,629
 $317,304
 $—
 $317,304
GROSS PROFIT:                        
Engines $107,930
 $(774) $107,156
 $100,981
 $5,409
 $106,390
 $27,800
 $—
 $27,800
 $25,236
 $1,765
 $27,001
Products 22,365
 —
 22,365
 26,546
 1,236
 27,782
 19,384
 8,018
 27,402
 17,825
 1,820
 19,645
Inter-Segment Eliminations (45) —
 (45) (739) —
 (739) 137
 —
 137
 770
 —
 770
Total $130,250
 $(774) $129,476
 $126,788
 $6,645
 $133,433
 $47,321
 $8,018
 $55,339
 $43,831
 $3,585
 $47,416
INCOME (LOSS) FROM OPERATIONS:            
SEGMENT INCOME (LOSS) (3):            
Engines $60,345
 $(774) $59,571
 $57,058
 $5,409
 $62,467
 $(13,677) $—
 $(13,677) $(16,557) $1,765
 $(14,792)
Products (4,913) —
 (4,913) (199) 1,236
 1,037
 (8,291) 9,151
 860
 (7,615) 1,820
 (5,795)
Inter-Segment Eliminations (45) —
 (45) (739) —
 (739) 137
 —
 137
 770
 —
 770
Total $55,387
 $(774) $54,613
 $56,120
 $6,645
 $62,765
 $(21,831) $9,151
 $(12,680) $(23,402) $3,585
 $(19,817)
            
Reconciliation from Segment Income (Loss) to Income (Loss) from Operations:            
Equity in Earnings from Unconsolidated Affiliates 1,887
 —
 1,887
 1,529
 —
 1,529
Income (Loss) from Operations $(23,718) $9,151
 $(14,567) $(24,931) $3,585
 $(21,346)
            
INTEREST EXPENSE (4,720) —
 (4,720) (4,717) —
 (4,717) (4,518) —
 (4,518) (4,510) —
 (4,510)
OTHER INCOME, Net 2,295
 —
 2,295
 1,806
 —
 1,806
 2,373
 —
 2,373
 2,093
 —
 2,093
Income (Loss) Before Income Taxes 52,962
 (774) 52,188
 53,209
 6,645
 59,854
 (25,863) 9,151
 (16,712) (27,348) 3,585
 (23,763)
PROVISION FOR INCOME TAXES 13,809
 (271) 13,538
 14,693
 1,276
 15,969
 (10,584) 3,203
 (7,381) (7,999) 734
 (7,265)
Net income $39,153
 $(503) $38,650
 $38,516
 $5,369
 $43,885
 $(15,279) $5,948
 $(9,331) $(19,349) $2,851
 $(16,498)
                        
EARNINGS PER SHARE                        
Basic $0.82
 $(0.01) $0.81
 $0.79
 $0.11
 $0.90
 $(0.34) $0.13
 $(0.21) $(0.41) $0.06
 $(0.35)
Diluted 0.82
 (0.01) 0.81
 0.78
 0.11
 0.89
 (0.34) 0.13
 (0.21) (0.41) 0.06
 (0.35)
(1) For the thirdfirst quarter of fiscal 2015, includes restructuring charges of $7,801 net of $2,730 of taxes and acquisition related charges of $1,350 net of $473 of taxes. For the first quarter of fiscal 2014, includes restructuring incomecharges of $774$3,585 net of $271 of taxes. For the third quarter of fiscal 2013, includes restructuring charges of $6,645 net of $1,276$734 of taxes.
(2) Adjusted financial results are non-GAAP financial measures. The Company believes this information is meaningful to investors as it isolates the impact that restructuring charges and acquisition related charges have on reported financial results and facilitates comparisons between peer companies. The Company may utilize non-GAAP financial measures as a guide in the forecasting, budgeting, and long-term planning process. While the Company believes that adjusted financial results are useful supplemental information, such adjusted financial results are not intended to replace our GAAP financial results and should be read in conjunction with those GAAP results.
(3) The Company defines segment income (loss) as income (loss) from operations plus equity in earnings from unconsolidated affiliates.


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NET SALES

Consolidated net sales for the thirdfirst quarter of fiscal 20142015 were $628.4$292.6 million, a decrease of $8.9$24.7 million or 1.4%7.8% from the thirdfirst quarter of fiscal 2013, due2014. The decrease primarily relates to lower sales of generatorsengines resulting from higher channel inventories in North America and thelower sales of engines that power them.for snow thrower OEM customers in Europe due to adequate inventories following last season. The quarterly impact of lower replenishment following fewer weather related events creating demand for generators and the related engines was an estimateddecrease in net sales decrease of $25 million. This decrease was partially offset by higher sales of engines used on U.S.pressure washers, snow throwers, lawn and garden equipment and increased snow thrower sales due to higher snowfall amounts in North America this winter.

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the Allmand acquisition.

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES

Engines Segment fiscal 2014 third quarter net sales were $452.4of $153.1 million which was $0.4 million or 0.1% higher thanin the thirdfirst quarter of fiscal 2013.2015 decreased $30.7 million or 16.7% from the prior year. Total engine volumes shipped in the quarter were alsodecreased by 18.7% or approximately the same between years at 3.2 million units.200,000 engines. Net sales decreased as anticipated due to higher channel inventories in North America at the end of the current lawn and garden season and lower shipments into the European market for snow throwers.

Products Segment net sales of $166.1 million in the first quarter of fiscal 2015 increased onby $13.1 million or 9% from the prior year. This increase was due to higher sales of engines used onpressure washers, commercial lawn and garden equipment forand snow throwers in the North AmericanAmerica market partially offset by lower sales of engines used in generators and for products in Latin America and Australia.

Products Segment fiscal 2014 third quarter net sales were $205.2 million, a decrease of $26.4 million or 11.4% from the third quarter of fiscal 2013. This decrease was due to lower sales of generators as a result of fewer weather related events during fiscal 2014, decreased sales of lawn and garden equipment due to exiting sales of lawn and garden equipment to mass retailers and a delay in the selling season, and unfavorable foreign exchange due to the devaluationone month of the Australian Dollar and Brazilian Real.Allmand acquisition. Partially offsetting these decreasesthe increase were higher netlower sales of snow throwers in Europe following last year’s mild winter and related service partslower generator sales due to higher snowfall amounts in North America this winter.adequate channel inventories and no major storm activity.

GROSS PROFIT

The consolidated gross profit percentage was 20.7%16.2% in the thirdfirst quarter of fiscal 2014,2015, an increase from 19.9%13.8% in the same period last year.

The Engines Segment gross profit percentage was 23.9%18.2% in the thirdfirst quarter of fiscal 2014,2015, higher than the 22.3%13.7% in the thirdfirst quarter of fiscal 2013.2014. The Engines Segment adjusted gross profit percentage for the thirdfirst quarter of 20142015 was 23.7%18.2%, which was slightly higher compared tothan the third14.7% in the first quarter of fiscal 2013. The increase was primarily due to 4% higher production during the third quarter, which improved2014. Engines Segment adjusted gross profit percentagemargins improved 350 basis points year over year on higher manufacturing volume, improved efficiency and lower retirement plan expense. Engines produced were higher by 0.3%, as well as12% in the quarter benefitting adjusted gross margins by approximately 230 basis points. Engine production was increased to support higher demand for large engines for riding equipment to support pre-building of products related to the closure of the McDonough, Georgia facility. In addition, plant efficiency improvements, cost reductions and a favorable mix of engines produced benefitted adjusted gross margins by approximately 130 basis points. The previously announced retirement plan changes, which were implemented in January of calendar 2014, improved productfiscal 2015 adjusted gross margins by $2.2 million, or 150 basis points. Partially offsetting this improvement was unfavorable sales mix of larger engines.that reduced adjusted gross margins by 160 basis points.

The Products Segment gross profit percentage was 10.9%11.7% for the thirdfirst quarter of fiscal 2014, down2015, slightly up from 11.5%11.6% in the thirdfirst quarter of fiscal 2013.2014. The Products Segment adjusted gross profit percentage for the thirdfirst quarter of 20142015 was 10.9%16.5%, which was 1.1% lower3.7% higher than the adjusted gross profit percentage for the thirdfirst quarter of fiscal 2013. The decrease was2014. Products adjusted gross profit margins increased by 370 basis points year over year due to improved sales mix and higher manufacturing throughput. Favorable sales mix improved adjusted gross margins by 220 basis points due to a focus on selling higher margin lawn and garden equipment and the benefit of one month of the Allmand acquisition. In addition, manufacturing throughput increased year over year by 55% benefitting adjusted gross margins by approximately 190 basis points. Throughput is increased due to higher snow thrower production for channel refill in the North America market and higher production of pressure washers and riding mowers to facilitate the upcoming closure of the McDonough, Georgia plant. Offsetting the increase in adjusted gross profit margins was an unfavorable foreign exchange impact on gross profit percentage of approximately 1.3% and a 6.5% reduction in manufacturing throughput that led to an unfavorable absorption impact on gross profit percentage of approximately 0.7%. Partially offsetting this reduction were increases to gross profit percentage of 0.5%40 basis points primarily due to improved manufacturing efficiencies, including incremental restructuring savings and improved product sales mix through the U.S. dealer channel.devaluation of the Australian dollar.

ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Engineering, selling, general and administrative expenses were $74.970.1 million in the thirdfirst quarter of fiscal 2014,2015, an increase of $4.21.3 million or 5.9%1.9% from the thirdfirst quarter of fiscal 2013.2014.

The Engines Segment engineering, selling, general and administrative expenses were $47.6$42.9 million in the thirdfirst quarter of fiscal 2014, an increase2015, a decrease of $3.7$0.4 million from the thirdfirst quarter of fiscal 2013.2014. The increasedecrease was primarily due to increased compensation expense and higher sales and marketing expense in our international regions.

The Products Segment fiscal 2014 third quarter engineering, selling, general and administrative expenses were $27.3 million, an increase of $0.6 million from the third quarter of fiscal 2013. The increase was mainly due to increased compensation expense and higher advertising related to new product launches.











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The following table is a reconciliation of financial results by segment, as reported, to adjusted financial results by segment, excluding restructuring actions (in thousands, except per share data):
  Nine Months Ended Fiscal March
  2014 Reported 
Adjustments(1)
 
2014 Adjusted(2)
 2013 Reported 
Adjustments(1)
 
2013 Adjusted(2)
NET SALES:            
Engines $901,858
 $—
 $901,858
 $890,631
 $—
 $890,631
Products 529,724
 —
 529,724
 602,323
 —
 602,323
Inter-Segment Eliminations (69,283) —
 (69,283) (107,609) —
 (107,609)
Total $1,362,299
 $—
 $1,362,299
 $1,385,345
 $—
 $1,385,345
GROSS PROFIT:            
Engines $187,423
 $2,622
 $190,045
 $181,980
 $7,346
 $189,326
Products 62,149
 2,082
 64,231
 63,798
 7,624
 71,422
Inter-Segment Eliminations 1,875
 —
 1,875
 1,793
 —
 1,793
Total $251,447
 $4,704
 $256,151
 $247,571
 $14,970
 $262,541
INCOME (LOSS) FROM OPERATIONS:            
Engines $50,528
 $3,047
 $53,575
 $48,574
 $10,781
 $59,355
Products (16,783) 2,082
 (14,701) (11,787) 7,624
 (4,163)
Inter-Segment Eliminations 1,875
 —
 1,875
 1,793
 —
 1,793
Total $35,620
 $5,129
 $40,749
 $38,580
 $18,405
 $56,985
INTEREST EXPENSE (13,823) —
 (13,823) (13,802) —
 (13,802)
OTHER INCOME, Net 6,138
 —
 6,138
 4,660
 —
 4,660
Income Before Income Taxes 27,935
 5,129
 33,064
 29,438
 18,405
 47,843
PROVISION FOR INCOME TAXES 7,429
 1,186
 8,615
 8,084
 5,392
 13,476
Net income $20,506
 $3,943
 $24,449
 $21,354
 $13,013
 $34,367
             
EARNINGS PER SHARE            
Basic $0.43
 $0.08
 $0.51
 $0.44
 $0.28
 $0.72
Diluted 0.43
 0.08
 0.51
 0.44
 0.27
 0.71
(1) For the first nine months of fiscal 2014, includes restructuring charges of $5,129 net of $1,186 of taxes. For the first nine months of fiscal 2013, includes restructuring charges of $18,405 net of $5,392 of taxes.
(2) Adjusted financial results are non-GAAP financial measures. The Company believes this information is meaningful to investors as it isolates the impact that restructuring charges have on reported financial results and facilitates comparisons between peer companies. The Company may utilize non-GAAP financial measures as a guide in the forecasting, budgeting, and long-term planning process. While the Company believes that adjusted financial results are useful supplemental information, such adjusted financial results are not intended to replace our GAAP financial results and should be read in conjunction with those GAAP results.

NET SALES

For the first nine months of fiscal 2014, consolidated net sales were $1.36 billion, a decrease of $23.0 million or 1.7% when compared to the same period a year ago.

Engines Segment net sales for the first nine months of fiscal 2014 were $901.9 million, which was $11.2 million or 1.3% higher than the same period a year ago. The increase was primarily due to higher North American sales of engines used on lawn and garden equipment and related service parts due to strong demand stemming from late season growing conditions as well as the anticipated increased retail demand for the upcoming lawn and garden season. The increase was partially offset by lower sales of engines used in generators due to the lack of storm activity during the first nine months of fiscal 2014. The first nine months net sales impact due to fewer storms was approximately $90 million. Hurricanes Isaac and Sandy occurred during fiscal 2013.

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Products Segment net sales for the first nine months of fiscal 2014 were $529.7 million, a decrease of $72.6 million or 12.1% from the same period a year ago. The decrease in net sales was due to lower sales of standby and portable generators due to no landed hurricanes during fiscal 2014 and unfavorable foreign exchange predominantly due to the Australian Dollar and the Brazilian Real. This decrease was partially offset by higher net sales from the Branco acquisition.

GROSS PROFIT

The consolidated gross profit percentage was 18.5% for the first nine months of fiscal 2014, an increase from 17.9% in the same period last year.

The Engines Segment gross profit percentage was 20.8% for the first nine months of fiscal 2014, up from 20.4% for the first nine months of fiscal 2013. The Engines Segment adjusted gross profit percentage for the first nine months of 2014 was 21.1%, which was 0.2% lower compared to the first nine months of fiscal 2013. The decrease was primarily due to a 6% reduction in manufacturing throughput; however, production mix was favorable as proportionately more large engines were built. The decrease in gross profit percentage was partially offset by a favorable sales mix of higher margin large engines and the margin contributed by Branco.previously announced retirement plan changes.

The Products Segment gross profit percentage was 11.7% for thefiscal 2015 first nine months of fiscal 2014, up from 10.6% for the first nine months of fiscal 2013. The Products Segment adjusted gross profit percentage for the first nine months of 2014 was 12.1%, which was 0.2% higher compared to the first nine months of fiscal 2013. The increase was primarily related to a 0.7% benefit from improved manufacturing efficiencies and incremental footprint restructuring savings of $1.3 million. The adjusted gross profit percentage also benefited from the additional margin from Branco. Partially offsetting the increase was a 0.5% unfavorable impact from foreign exchange.

ENGINEERING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES

Engineering, selling, general and administrative expenses were $215.4 million for the first nine months of fiscal 2014, an increase of $9.8 million or 4.8% from the first nine months of fiscal 2013.

The Engines Segmentquarter engineering, selling, general and administrative expenses were $136.5$28.1 million, in the first nine months of fiscal 2014, an increase of $6.5 million. The increase was primarily due to increased compensation costs, higher advertising costs to support new product launches, and the added expenses related to Branco, partially offset by lower retirement plan expenses of $2.6 million.

The Products Segment engineering, selling, general and administrative expenses were $78.9 million in the first nine months of fiscal 2014, an increase of $3.3$2.7 million from the first nine monthsquarter of fiscal 2013.2014. The increase was mainly attributabledue to additional expenses from Branco,$1.5 million related to the Allmand acquisition and increased compensation expense, and higher advertising costs related to new product launches, partially offset by favorable foreign exchange.$1.2 million in savings related to the restructuring initiative announced in July 2014.

ACQUISITION

The Company announced on August 29, 2014, that it had completed the acquisition of Allmand Bros., Inc. for approximately $62 million in cash, net of cash acquired. Allmand is a leading designer and manufacturer of high quality towable light towers, industrial heaters, and solar LED arrow boards. Allmand, which is included within our Products Segment, has annual net sales of approximately $80 million.

INTEREST EXPENSE

Interest expense for the thirdfirst quarter and first nine months of fiscal 20142015 was comparable to the same periodsperiod a year ago.

PROVISION FOR INCOME TAXES

The effective tax rate for the third quarter of fiscal 2014 was 26.1% compared to 27.6% for the same respective period of fiscal 2013.  The tax rate for the third quarter of fiscal 2014 included a taxpayer election which provided the Company a $2.9 million tax benefit that was previously unavailable as well as a benefit of $0.7 million from income related to foreign operations subject to different statutory tax rates.  The tax rate for the third quarter of fiscal 2013 included benefits for the reenactment of the U.S. federal research and development and other credits in the amount of $1.0 million, foreign tax credits in the amount of $0.5 million, and $1.7 million from income related to foreign operations subject to different statutory rates. The effective tax rate for the first nine monthsquarter of fiscal 20142015 was 26.6%40.9%, compared to 27.5%29.3% for the same respective period last year. The higher tax rate for the first quarter of fiscal 2013.2015 was primarily driven by the reversal of previously recorded reserves as a result of the effective settlement of the Company’s IRS audit for its 2009-2010 consolidated income tax returns.




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RESTRUCTURING ACTIONS

In fiscalThe restructuring actions announced in 2012 the Company announced plans to reduce manufacturing capacity through closure of its Newbern, Tennessee and Ostrava, Czech Republic plants,were concluded as well as the consolidation of its plants in Poplar Bluff, Missouri and Auburn, Alabama. During fiscal 2012, the Company ceased manufacturing operations at its Newbern, Tennessee and Ostrava, Czech Republic plants, and carried out the consolidation of the Poplar Bluff, Missouri plant. Production of horizontal shaft engines was concluded at the Auburn, Alabama plantplanned during the secondfourth quarter of fiscal 2014. The Company also announced inDuring the first quarter of fiscal 2012 the reduction of approximately 10% of the Company's salaried headcount. In fiscal 2012 and fiscal 2013,2015, the Company implemented the salaried headcount reductions. Additionally, beginning in fiscal 2013, the Company exited the placementannounced and began implementing restructuring actions to narrow its assortment of lawn and garden products at national mass retailers. The Engines Segment continues to supportlower-priced Snapper consumer lawn and garden equipment OEMs who provide lawn and garden equipmentconsolidate its Products segment manufacturing facilities in order to these retailers.

In October 2012, the Board of Directors of the Company authorized an amendment to the Company's defined benefit retirement plans for U.S., non-bargaining employees. The amendment freezes accruals for all non-bargaining employees effective January 1, 2014.reduce costs. The Company recorded a pre-tax curtailment charge of $1.9 millionwill close its McDonough, Georgia plant in the second quarterhalf of fiscal 2013 related to the defined benefit plan change.
The previously announced restructuring actions are nearing their conclusion as planned. The restructuring actions for the third quarter resulted2015 and consolidate production into existing facilities in pre-tax income of $0.8 million related to the reduction of an estimated reserve related to plant closure costs. Net pre-taxWisconsin and New York.  Pre-tax restructuring costs for the first nine monthsquarter of fiscal 20142015 were $5.1 million; the$7.8 million and pre-tax savings were $1.2 million. Pre-tax restructuring cost estimates for fiscal 20142015 remain unchanged at $6$30 million to $8$37 million. Incremental pre-tax restructuringTotal annual cost savings for the first nine monthsas a result of fiscal 2014 were $1.8 million; the incremental savings estimate for fiscal 2014 also remains unchanged at $2these actions are anticipated to be approximately $15 million to $4 million.$20 million with approximately $5 million to $7 million expected to be realized in fiscal 2015 and the remainder realized in fiscal 2016.

LIQUIDITY AND CAPITAL RESOURCES
    
Cash flows used in operating activities for the first ninethree months of fiscal 20142015 were $14.048.9 million compared to $73.852.9 million in the first ninethree months of fiscal 2013.2014. The slight improvement in operating cash flows was primarily related to changesan improved net loss and a decrease in working capital needs in fiscal 2014 associated with improvements in managing outstanding accounts receivable due to lower sales, partially offset by higher inventory levels and reducing required inventory levels. In addition, no contributions to the pension plan were made in fiscal 2014 compared to $29.4 million in the first nine months of fiscal 2013.accounts payable.

Cash flows used in investing activities were $29.469.3 million and $79.211.6 million during the first ninethree months of fiscal 20142015 and fiscal 2013,2014, respectively. The $49.8$57.7 million decreaseincrease in cash used in investing activities was primarily related to $59.6$62.1 million of cash paid for the BrancoAllmand acquisition during the secondfirst quarter of fiscal 2013.2015. The decreaseincrease was partially offset by $6.6$4.3 million of lower proceeds received on dispositions ofadditions to plant and equipment during fiscal 20142015 compared to fiscal 2013 when the Company sold the dormant manufacturing facility in Jefferson, Wisconsin and a land parcel adjacent to the Ostrava, Czech Republic plant.2014.

Cash flows used in financing activities were $38.314.6 million during the first ninethree months of fiscal 20142015 as compared to $19.5$9.0 million of cash flows provided byused in financing activities during the first ninethree months of fiscal 2013.2014. The $57.8$5.6 million increase in cash used in financing activities was primarily attributable to $15.2 million of lower stock option exercise proceeds in fiscal 2014 compared to fiscal 2013, $35.4 million of lower net borrowings on the revolver in fiscal 2014 compared to the same period a year ago, and $7$8.1 million of higher treasury stock purchases in fiscal 20142015 compared to fiscal 2013.2014, partially offset by $2.2 million of higher stock option exercise proceeds in fiscal 2015 compared to fiscal 2014.


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FUTURE LIQUIDITY AND CAPITAL RESOURCES

On December 15, 2010, the Company issued $225 million of 6.875% Senior Notes ("Senior Notes") due December 15, 2020.  

On October 13, 2011,21, 2013, the Company entered into aan amendment to its $500 million multicurrency credit agreement (the “Revolver”). On October 21, 2013, the Company entered into an amendment to the Revolver,, which, among other things, extended the maturity of the Revolver from October 13, 2016 to October 21, 2018. The initial maximum availability under the revolving credit facility is $500 million. Availability under the revolving credit facility is reduced by outstanding letters of credit. The Company may from time to time increase the maximum availability under the revolving credit facility

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by up to $250 million if certain conditions are satisfied. As of March 30,September 28, 2014, there were no borrowings under the Revolver.

On August 8, 2012January 22, 2014 the Board of Directors of the Company authorized up to $50 million in funds associated with the common share repurchase program with an expiration date of June 30, 2014.program. On January 22,August 13, 2014, the Board of Directors of the Company authorized up to an additional $50 million in funds for use in the Company’s common share repurchase program with an extension of the expiration date to June 30, 2016.program. As of March 30,September 28, 2014, the total remaining authorization was approximately $50.3 million.$69.5 million with an expiration date of June 30, 2016. The common share repurchase program authorizes the purchase of shares of the Company's common stock on the open market or in private transactions from time to time, depending on market conditions and certain governing loan covenants. During the ninethree months ended March 30,September 28, 2014, the Company repurchased 1,479,626905,164 shares on the open market at an average price of $20.3219.62 per share.

The Company expects capital expenditures to be approximately $45$60 million to $50$65 million in fiscal 2014.2015. These anticipated expenditures reflect our plans to continue to reinvest in efficient equipment and innovative new products.

During the first ninethree months of fiscal 2014,2015, the Company made no cash contributions to the qualified pension plan. Based upon current regulations and actuarial studies, the Company estimates that it will make no required minimum contributions to the qualified pension plan during the remainder of fiscal 2014 or in fiscal 2015. The Company may be required to make further contributions in future years depending upon the actual return on plan assets and the funded status of the plan in future periods.

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

The Revolver and the 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 use proceeds from 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 March 30,September 28, 2014, the Company was in compliance with these covenants, and expects to be in compliance with all covenants during the remainder of fiscal 2014.2015.

OFF-BALANCE SHEET ARRANGEMENTS

There have been no material changes since the August 27, 201326, 2014 filing of the Company’s Annual Report on Form 10-K.

CONTRACTUAL OBLIGATIONS

There have been no material changes since the August 27, 201326, 2014 filing of the Company’s Annual Report on Form 10-K except that subsequent to the filing10-K.

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Table of the Company's Annual Report on Form 10-K, on October 21, 2013, the Company entered into an amendment to the Revolver, which, among other things, extended the maturity of the Revolver from October 13, 2016 to October 21, 2018.Contents

BRIGGS & STRATTON CORPORATION AND SUBSIDIARIES


CRITICAL ACCOUNTING POLICIES

There have been no material changes in the Company’s critical accounting policies since the August 27, 201326, 2014 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.


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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 Condensed Consolidated Financial Statements of this Form 10-Q under the heading New"New Accounting PronouncementsPronouncements" and is incorporated herein by reference.

OTHER MATTERS

The Labor Agreement with United Steelworkers Local 2-232 expired on July 31, 2013. The agreement covered 395 hourly employees in our Wauwatosa and Menomonee Falls, Wisconsin facilities. Membership of the union ratified a new Labor Agreement on October 30, 2013. The new Agreement took effect on October 30, 2013 and expires on July 31, 2017.

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 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. We are not undertaking any obligation to update any forward-looking statements or other statements we may make even though these statements may be affected by events or circumstances occurring after the forward-looking statements or other statements were made.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
There have been no material changes since the August 27, 201326, 2014 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 thirdfirst 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 Condensed Consolidated Financial Statements of this Form 10-Q under the heading Commitments"Commitments and ContingenciesContingencies" and is incorporated herein by reference.
ITEM 1A. RISK FACTORS
There have been no material changes since the August 27, 201326, 2014 filing of the Company’s Annual Report on Form 10-K.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
    
The table below sets forth the information with respect to purchases made by or on behalf of the Company of its common stock during the quarterly period ended March 30,September 28, 2014.
2014 Fiscal Month Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of a Publicly Announced Program (1) Approximate Dollar Value of Shares that May Yet Be Purchased Under  the Program (1)
December 30, 2013 to January 26, 2014 105,838
 $21.58
 105,838
 $56,981,409
January 27, 2014 to February 23, 2014 150,641
 21.20
 150,641
 53,787,820
February 24, 2014 to March 30, 2014 156,700
 22.35
 156,700
 50,285,575
Total Third Quarter 413,179
 $21.73
 413,179
 $50,285,575
2015 Fiscal Month Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of a Publicly Announced Program (1) Approximate Dollar Value of Shares that May Yet Be Purchased Under  the Program (1)
June 30, 2014 to July 27, 2014 348,869
 $19.80
 348,869
 $30,394,716
July 28, 2014 to August 24, 2014 397,108
 19.15
 397,108
 72,790,098
August 25, 2014 to September 28, 2014 159,187
 20.42
 159,187
 69,539,499
Total FIrst Quarter 905,164
 $19.62
 905,164
 $69,539,499
(1)
On August 8, 2012January 22, 2014 the Board of Directors of the Company authorized up to $50 million in funds associated with the common share repurchase program with an expiration date of June 30, 2014.program. On January 22,August 13, 2014, the Board of Directors of the Company authorized up to an additional $50 million in funds for use in the Company’s common share repurchase program with an extension of the expiration date toof June 30, 2016.

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ITEM 6. EXHIBITS
 
Exhibit
Number
 Description
10.1Stock Option and Stock Award Program, as amended through October 15, 2014 (Filed herewith)
10.2Form of 2014 Omnibus Incentive Plan Stock Option Agreement (Filed herewith)
10.3Form of 2014 Omnibus Incentive Plan Restricted Stock Award Agreement (Filed herewith)
10.4Form of 2014 Omnibus Incentive Plan Restricted Stock Unit Award Agreement (Filed herewith)
10.5Form of 2014 Omnibus Incentive Plan Performance Share Unit Award Agreement (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 March 30,September 28, 2014 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

 

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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:May 6,November 5, 2014 /s/ David J. Rodgers 
   David J. Rodgers 
   
Senior Vice President and Chief Financial Officer and
Duly Authorized Officer
 
 

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EXHIBIT INDEX
 
Exhibit
Number
 Description
10.1Stock Option and Stock Award Program, as amended through October 15, 2014 (Filed herewith)
10.2Form of 2014 Omnibus Incentive Plan Stock Option Agreement (Filed herewith)
10.3Form of 2014 Omnibus Incentive Plan Restricted Stock Award Agreement (Filed herewith)
10.4Form of 2014 Omnibus Incentive Plan Restricted Stock Unit Award Agreement (Filed herewith)
10.5Form of 2014 Omnibus Incentive Plan Performance Share Unit Award Agreement (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 March 30,September 28, 2014 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

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