BRUNSWICK CORPBC

BRUNSWICK CORP Fair Value Disclosure

10-KFiled Feb 13, 20262 min read
Fair Value Measurements
Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. Valuation techniques used to measure fair value must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a fair value hierarchy based on three levels of inputs, of which the first two are considered observable and the last unobservable.
 
•Level 1 - Quoted prices in active markets for identical assets or liabilities. These are typically obtained from real-time quotes for transactions in active exchange markets involving identical assets or liabilities.

•Level 2 - Inputs, other than quoted prices included within Level 1, which are observable for the asset or liability, either directly or indirectly. These are typically obtained from readily available pricing sources for comparable instruments.

•Level 3 - Unobservable inputs for which there is little or no market activity for the asset or liability. These inputs reflect the reporting entity's own assumptions of the data that market participants would use in pricing the asset or liability, based on the best information available in the circumstances.

The following table summarizes the Company's financial assets and liabilities measured at fair value on a recurring basis:
Fair Value
(in millions)Fair Value LevelDecember 31, 2025December 31, 2024
Cash equivalents1$0.4 $12.3 
Short-term investments in marketable securities10.8 0.8 
Restricted cash118.1 16.9 
Derivative assets213.3 22.1 
Derivative liabilities258.2 9.4 
Deferred compensation11.1 1.0 
Deferred compensation222.6 19.2 
Liabilities measured at net asset value15.6 14.3 

Fair Value of Other Financial Instruments. The carrying values of the Company’s short-term financial instruments, including cash and cash equivalents and accounts and notes receivable, approximate their fair values because of the short maturity of these instruments. The fair value of the Company’s long-term debt, including current maturities, and short-term debt was determined using Level 1 and Level 2 inputs described above. The fair value and carrying value of long-term debt, including current maturities, and short term debt as of December 31, 2025 and December 31, 2024, was as follows:

(in millions)December 31, 2025December 31, 2024
Fair Value$2,004.9 $2,161.3 
Carrying Value2,118.0 2,370.2 

Refer to Note 12 – Financial Instruments for additional information related to the fair value of derivative assets and liabilities by class.
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Historical Timeline

Fiscal YearFiled
2025Feb 13, 2026Showing above
2024Feb 14, 2025
2023Feb 16, 2024
2022Feb 16, 2023
2021Feb 16, 2022
2020Feb 16, 2021
2019Feb 18, 2020
2018Feb 19, 2019
2017Feb 20, 2018
2016Feb 17, 2017
2015Feb 17, 2016

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.

Other Available Disclosures

Income TaxesRevenueEarnings Per ShareGoodwill & IntangiblesLeasesSegmentsDebtCommitmentsStock CompensationNew StandardsPay vs Performance