# Appendix — Brunswick Corp. v. Pueblo Bowl-O-Mat, Inc. > Briefs, arguments, decisions, and more. URL: https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385003_2160%3A08 ## Record - **Collection:** Supreme Court brief - **Document type:** Appendix - **Published:** January 1, 1977 - **Citation:** 429 U.S. 477 ## Text APPENDIX Volume 7. Supreme Court of the United States October Term, 1975. No. 75-904 BRUNSWICK CORPORATION, Petitioner, v. PUEBLO BOWL-O-MAT, INC., BOWL-O-MAT PARAMUS OPERATIONS and HOLIDAY BOWL-O-MAT, INC., Respondents. On Writ of Certiorari to the United States Court of Appeals for the Third Circuit. PETITION FOR CERTIORARI FILED DECEMBER 24, 1975. CERTIORARI GRANTED FEBRUARY 23, 1976. International Printing Co., 711 So. 50th St., Phila., Pa, 19143 — Tel. (215) 727-8711 TABLE OF CONTENTS OF APPENDIX. Vol. 1 Page Relevant Docket Entries in the United States District Court for the District of New Jersey .......-..+eeeeeeeeeees Al Relevant Docket Entries in the United States Court of Appeals for the Third Circuit ...........6--++eeeeees A7 Complaint ........:.cceeeeeeee cence renee eeeeeeeeeenees Al0 Answer and Counterclaim ............0seeeeceeeeeeeeeee A29 Excerpts From Testimony: Danicl Parke Lieblich— rr A56 Voir Dire Examination ............ceseeeeeeees A81 Direct Examination (Continued) ..............+. A87 Voir Dire Examination .............seeeeeeceees Al0ol Direct Examination (Continued) ...............- A103 Voir Dire Examination .............eeeeeeeeees A116 Direct Examination (Continued) .............+-- Al21 Voir Dire Examination ............00eeeeeeeeeee A272 Direct Examination (Continued) ..............+. A274 Voir Dire Examination ...........seeeeeeeeeeees A337 Direct Examination (Continued) ..............-. A341 Vol. 2 Page Cen ie og occ cccccccccccesecescccesees A405 Re-Direct Examination ...........-0-ceeeeeeeees A473 C. Vitolo (Deposition) ........-.6e.eeeeeeeeeeeeeees A475 Diheeet Wemerintae .n.ccccccccccccccsccccoesees A475 CR, gg ccc cc ccceesevetcoeeeceseses A483 wer “driucd Kenney— eee SE, occ cccccessseeccceesesesoees A490 Cross-Examin To coccececcccevecseerceseeenes A516 Milton Mendelson— ee I, goo ccccndssccccccecesvoeeses A538 I ono s 008 Geb sceseséccoccesecess A578 Re-Direct Examination .............eeeeeeeeeees A593 Ro Cocseemineae ... ns ccc cscccscsccccvccees A604 TABLE OF CONTENTS OF APPENDIX (Continued). Page Re-Direct Examination ..... Pere rerrTrT TTT rere A605 Re-Cross-Examination ...... 6.600 ce cece ener enes A607 Re-Direct Examination ..... err eV TTTTTrTy A609 Re-Cross-Examination ......ccccsceeceeeeeneeens A610 Re-Direct Examination .... 6.66.66 cece cence ene A611 Benjamin E, Bensinger (Deposition) .......6..66eeees A612 Direct Examination ....... 660 cc cece eee e ee eeeeee A612 Rex Martin Golobic— Direct Examination ........6.6ccceee eee eeeeeeeee A652 Cross-Examination .....:cccccceceeeeeeeeeeeeees A681 John L. Hanigan (Deposition) ©... 66... ceeeereeeeees A684 Direct Examination .......666 ccc cece eee e renee A684 Ruben A. Dankoff— Direct Examination ......6 666 cc cece cere eens A715 Voir Dive Examination ....... 666 cecc cere eeeeee A755 Direct Examination (Continued) .........666.66065 A757 Cross-Examination .......6cecee eee ee rene eens A760 Re-Direct Examination .......6.66ce cece eee enes A768 Re-Cross-Examination ... 6.6 ccc ce cere rere nnee A782 John L. Hanigan (Deposition) (Resumed) .........+. A784 Direct Examination (Continued) ............ see ATBA Milton Rudo (Deposition) ... 6.6666 cee errr renner eens A795 Direct Examination ......6 660s cc eee ee eee eeenee A795 Vol. 3 Page Richard Davis— Direct Examination ...... 66000 c cere eee eens A805 Cross-Examination .....:cccceceeeeeeeeeeeennees A850 Re-Direct Examination ....... 666600 eues eens A863 DISCUSSION ccc ccc rceeeeeereeeeeeeeeeerseeeeeens A865 John A. Barron Direct Examination .......6csceee eee reer renee A871 Voir Dire Examination .... 6.66: c cece rere ene A879 Direct Examination (Continued) ..........660055 A881 TABLE OF CONTENTS OF APPENDIX (Continued), Vol. 3 Page . 2. 2... i (ds Se eeeereereeerey A882 Direct Examination (Continued) ...........6..055 A884 Vole Dive Hmnmmimatiom 2. ccccccccccccccccccccees A886 Direct Examination (Continued) .............. ., A892 Voir Dire Examination ............... Porrrrree A893 Direct Examination (Continued) ...........6.66655 A902 . 2 2 FPTTTITITITTrTrree A903 Direct Examination (Continued) .............55. A905 ee ED ccc ccncedeeteosaneséuses A906 Direct Examination (Continued) .............4.. A908 Vole Dire Examination ....cccccccscccsccccecens A912 Direct Examination (Continued) ...........6..55 A914 fF 5 rrr rrr Trey A914 Direct Examination (Continued) .............65. A916 Voir Dire Examination ........6..ccceeeeeeeeees A916 Direct Examination (Continued) .............655 A917 . -£ - FPPPTTITTITTTTrrrrrey A926 Direct Examination (Continued) .............6.. A927 ee Ds - cpccnntebeséscccosbeeee A933 Direct Examination (Continued) ...........6...5. A940 Wee GD SID oc cccccccceussooceocceses A949 SED cocccccccccocescceceseseccese A961 En .. .cccceuseveustooeuesse Al0l4 Re-Cross-Examination ........cccceeeeeeeeeeeees Al1018 Milton Rudo— i PD «oc coccgebaseedeacesecseeds Al1019 CEES, occcecusenececsessenseseeeces A1138 Vol, 4 Page Cross-Examination (Continued) ..........6...60004 A1197 Bernard Rudo— ie «06 ceeone000000068066060688 A1276 ED, in dccdbabeasenseueskenesGenent A1307 Re-Direct Examination ....... 06.6000 cecceeeeves A1325 TABLE OF CONTENTS OF APPENDIX (Continued). TABLE OF CONTENTS OF APPENDIX (Continued). Vol. 4 Page fen Kenneth Brooks Abernathy— = Defendant's Notice of Appeal (September 26, 1974) ....... A1571 tar nant ee aaa Opinion of the District Court (November 15, 1974 as a sovessooeooooooereenn” amended November 25, 1974) (Printed as Appendix C Joseph A. Rice— to Petition for Certiorari and Will Not Be Reprinted in Direct Examination ........0ceeeeeereeeeeeneees A1328 the Appendix to the Briefs ) aOR aocrseesseneecvncerteessee i Se ines taped nays, eR .......-.20 TscusslON ccccccccccccccsececceccsceccecusseuseees A1358 ppeals Opinion (August 29, 1975) (Printed as Appendix A to Petition for Certiorari and Will Not Be - — : aie Reprinted in the Appendix to the Briefs ) TecMMMMMRMMIDD. cocccssoxocesososoroeosex ool Court of Appeals Judgment (August 29, 1975) ........0... A573 Re-Direct Examination .......::eecceeeeeeennnes A1428 Vel. & Re-Cross-Examination ......ssseeeeeeeeeeeneeees Al432 ' Daniel Parke Lieblich (Recalled)— Exhibit Pl Plaintiff's Exhibits. Page Direct Examination ......sssscsececeeeeeeenenees eC. adalat le ahhh lhl aaa A1574 Cross-Examination .....0ccceeeeeeeeereeeeennnes A1446 Exhibit PLA ..ccccsesseeceeeeeecneeeeeeeenteneennenes A1575 Discussion ...cccceecceeevereeeerewnneeeees jéaeunet A1449 Exhibit PIB ...iscceccsscesneensenenesenenseneensenss A1577 Summation on Behalf of Defendant ........6+:+0eeeeereee A1450 Exhibit P2 ....cssecscsesceseeenserereeenenrsensesenees A1584 Charge of the Court .....:cccereeeeer eer ernern ere enenns Al451 Exhibit PO ......ccseseeceeeeneneeenenesnseneeneenennss A1587 AM oo eo asedcipesennsnseeannnis A1S43 Babibit PA... scsssccscccrcsccsceeeseecceeceverveess A1503 Defendant's Motion for Directed Verdict or Verdicts at Close Exhibit PS ....ccsssecerescnesceneeneeeneeseeeeneences A1598 of Plaintiff's Case .....cc cc rreeeeee ee eee eee eeeeennes Al544 Exhibit PO ....csscccccvecereveceeeseeeeceeeseeseeeeens A1599 Defendant's Motion for Directed Verdict or Verdicts at Close Bchibit PT ow. ccc ccccccccccccceveseevesveeeseenevesens A1601 of All of the Evidence .......ccceeeeeeeeeeeenenennes A1545 ES to Bo i a ee 41602 District Court Judgment (May 23, 1973) ... see eereeeeee A1546 IN oS a Sos ka Ta i ta A1603 Motion of Defendant for Judgments Notwithstanding the RES ORR PPR ete Pm Noon Raney A1604 Verdicts and in the Alternative for a New Trial ....... A1550 ES EER Eee eee A1623 Opinion of the District Court (September 17, 1973) (Printed RLS eye een ee AIEEE ee ere ere A1624 as Appendix B to Petition for Certiorari and Will Not RN Ns Sue ded Soa 1008 Be Reprinted in the Appendix to the Briefs ) a a RS RRR SEMIS Ses ELI pn District Court Order (October 1, 1973) oc .cce cree eeeenes A1560 Le Gi hala een peer Defendant's Notice of Appeal (October 2, 1973) .......+05 A1562 Rea a he SIN Nee ETS REN SEA MONE ase Court of Appeals Opinion (August 14, 1974)... cs eeeeeees A1563 Fxhibit P20 sy, a! ee ee ee 28 Court of Appeals Amended Judgment (September 5, 1974) .A1566 AG aR en edie a aE ERROR CNT FE A1632 District Court Supplemental Order eee Me A1652 TABLE OF CONTENTS OF APPENDIX (Continued). Vol. 5 Page Exhibit PG2 ......cccccceeeeeeereeeeereeeneeerneereeeee A1661 Exhibit P33 .....ccccccceeeeeeeeeveeeeeeenseeaaeeeneees A1662 Exhibit P84 on... cece re eeeeeeeneeeeeeeeenanneneeenneees A1663 Exhibit PB ......cccececreeeeeeeeeeeeesereeeeeeeneeeee A1666 Exhibit P06 .....ccececcerceeeneeeeeeeeeenneeeneeeneees A1667 Exhibit P37 ......ccccceeeeeereeeeereenneeeeeeeeennneee A1668 Exhibit P88 ....cccce cc eeeereeeeeeererenneeeeeesseenees A1669 Exhibit PQQ ......ccccseeneeeeereeeeernenneeeeeenennees Al1671 Exhibit P40 .....ccccccceeeereeereereeesseneeeseeeenees A1672 Exhibit P4l ......cccccecceereeerereeeueeeeeeeennrenees A1673 Exhibit P42 .....ccccececceeeneeeeeeereneeeeneueeeenees Al1674 Exhibit P44 .....cccccececeeeeeeeeeenenrneeseeennanneee A1675 Exhibit P45 ....cccccccccereeeeeeeeeeeeeerreernennnnees A1676 Vol, 6 Page Exhibit P46 ....c ccc ce cece cee bereeeeeeeeeeeeeeeenneneee A1683 Exhibit P47 .....cccceceeceeeereereeerneeeeeenneeeeneee A1700 Exhibit P48 ....cccccceceeceeeeereeeneeaneeeenenenneees A1T717 Exhibit P40 ......cccrcceeeeeeereeeeeneneeseereneneeeee ALT" Exhibit PSO ....cccccceeeeeeeeeeeeerereeeeererenneenees A1735 Exhibit P52 ......cccceeceeeeeeereceenseeeneenennnneeee A1736 Exhibit PBS .....ccccccccseeeeeeeenreeeneeeeereneneeeee A1737 Exhibit PSS ....c.ccccereeeeereeeeeeereeenreenaenreeeee A1738 Exhibit PBQ .....ccccccceveees eeerewneeereeerennereees A1740 Exhibit POO ....ccccccereevenereeeenenerereeeureeeeeeee A174l Exhibit P61] ......cccceeceeererererereeeereenennanneees A1742 Exhibit P62 ......cecccecvvsevrereeeeeeeeeerneeeeerrees A1743 Exhibit P63 .....cccccceeeeeeeereeeneeenereeeennneeeees Al744 Exhibit P64 .......+. citchidadeseeuseaseersupevisesssss A1745 Exhibit POS .....ccccceeesereeereeeeeneeererernaneenees A1765 Exhibit P66 ....ccsccceeecvcnvvveesneerereseenenerenees A1766 Exhibit POT on. cscescccccccescevecccvvcvesseeeesererees A1776 Exhibit P68 ......sscccereveeeeeeeeeerreeerenerraeneeees A1797 TABLE OF CONTENTS OF APPENDIX (Continued). Page ED oc cccccdecccececsccescccsccsceoeescesesoese A1799 =” 0 BRPPPTTETTTITITITITILEPITITiTerT ii A1800 " l GPPPPPTITrTTirririrrirrrrirriri iil A1802 ' .. PEPPRPETUPCTITITITTTITTTTTITT TTL A1835 "") PRPPPrrerrrrrrrrrrririirriii rire iit A1836 ““"S , BPPPPPPTTTTCTTITITITITITITTT LLL Tt ttt. A1838 - - Bev, SRPPPPPTTTTITITITILILITILE Tri A1839 OS SPPPPrTrrriTrrerririrrrrirri iii ii tit A1843 NS BRPPPPPTTTUTTTTTTTTrrrererereeeee iy A1847 "| GRRPPPPTTTTTTTTTrrirrrrrririi ri A1850 ""'* . BPPPTTTTTTTTTTTITITITiTTiriri ri A1864 Vol. 7 Defendant's Exhibits. Page Oe. . civccdoncdscceecécoesonceecesncéeecesesees A1866 ee | WPPPPPPPTTTITTTITTTTTITLI TT A1867 Batfielt DG nn ccc cccccccccccevccecereeecesevvens wTTTTTy A1878 ee OE. .cccccccccccccsececsecccosccceoeccseses .. + A1879 Exhibit DB ......:ss000 ciddesddenssesnaeneeceseneehes A1880 eh , PRETPETTTTTTTTTITTTTTITI TILL TLL A1881 eS PPPPPPTTTTTTTTTITTITITITTT TTT A1882 Batetiete DLL ....ccccccccccccccccccccccescsevcccvecvvens A1883 Batlle DUB nc ccccccccccccvcccvccescvvcens PTT TTT T Ty A1884 NS operetion. “- (OA - a cox Thones, Vice Presiéexnt er ze 8%. ~=Eé le ot .27es6 iw t ao = Thess “rey exe vitel with you es our customers = 38 scha0 ove escéing o ° . > “» 2 ~ - -- ~ ‘se £ =. —* + ~& 23 meeting 2-tenés 2c =o soe 2 = 7 we $ prev é = — -\> cece ad = wer A1804 Exhibit P74 —_——[_____— éivisisz.* =: i” * ss , vi ‘ o 44 1?) ‘ = m x cc] en 0 ” f W >» vi 1] ” . “” wt LT hed o & 4 & “4 2 (a °o x 2) — 4? > ri 4 ™ n - » @ ig te ~ °o +? " " % v4 et 1% w AS ‘ C4) s3 9° ~~ $3 Ww o i re A1803 Exhibit P74 5S 0 o wt ” s 4 | a 1) > Pa] hd u w = A: % + * 0 4 ha a +) Mt oO 3 oP) ™» ” b% ~~ oO . 4 °o 4 »” © 53 “ At ol w ” “S el ) by) M% 33 ” 4K P ] "1 wo vt ”) at it | ' 1 $3 15 “1 iV) 3) ” ” ws 3 ot Vv Q 7] 4 ™ DH *1 & 1?) ™ + +7] vt td y) ) rp) ? at » Hi et e) ” st th 2 | : rS silo 8 ° cS} ot $3 + “a J =f LT) a 0 S1 “ it 7) 6s ee 8. a - re | “) * ‘3 at “242, IF thsught they Rel For wsssSes Ss Ore 4= Sothered | wo ote Se ete ee = o 2a, ster, = -s5 convincse, sate tevins Susckes | | “ish “es rusiishee on the 2izet oF screech &z.¢ uss éteengsions with nim, thic uss & Geos fee sxc 23 “8s fecsived ty over 159,550 ‘snsrohsisers, Eruq = {LETC | : some tninzr thst ee Soule tontTTl sete TS Th6 LSs.engs 22° ver octis: my Csstry. ‘ raat ConpSnr Sesently estosLiszee & ‘ nexinoer tats, I neé 25 peers “ich this , beulins fentar Opitation: Livisten. In sééition te conpeny in Tee stS7-7 exé en2 ths selling cf equspnens. PreveGens eltonomic evclesuzicn, =Urssercrt Cours!elixs, azeet To esé thovsht wats. eves, frankly, o2cter = Sct eni prscstlons. Sle FSF ‘soxlint propotetcrs, the ‘etok ené they bat © chance 79.7624 TO Zé adocout this erg «het the zosiz “ere, = tepyroscned this with & lot nS KL! Sué. I don't =—_ Cais vas in cur annuel stotezent pubdlisheé wass it nox. I Gon't profess te xnow it noe. I ex nm Xerck. : resiiza everyone écasa't -esé sll the leerning, end I huve Lesernes é greet €esl, because +t — worés in é2 exncal siatezent. “e have not kept i¢ «s ts ¢ cizZerent wesiness shen the tesiness - heve seer & secret. ané if ony of you vere in ettencarce a= our | Ccing for 25 yeers.. = say this se you with sone knov~ stookholéers' meeting, es I recall, Jeck Séxtgen vas +eCze bur leex of expertexce, *2 2 ay. | : e+ cor mseting end it _vas_leve= éiscusseé- in the “all p ow ve have celieé this nex éivision ‘4 Street Journel axné ctner papers, “shy 5.C.0.5.2" ' Ee 7 Sexlinz Centers Operetions Tivision. It is & sepereve Rotter zeny sonths of exharstive stuéy, *e estebdliisheé =.C.5.5. to operete certein bowling center Mo zet into «*Lt our sctual odjectives | $e whose ownership can't cr ven't meet theiz odlsgations : we, 2 sks To. Oe ee ap ow arenes see a tor 6 variety of ressors. You fellows have run into o> oo 4 ‘ °: +O ass +his and knox whereo?® I talk. 2.C.0.D. will operete ie . ° . , > ‘¥ ° ‘ A e theco vantutos until they tre turnet over te sincere and Zinsucisily otpabie Snvaestcrs. his Cecticion %e thought te sure conpolicd to use 76 protect the ér.tereits o2 ocr stsexholiders 6420 tS protect the valve © my a: o ‘: " ~~ a experlence, = em cee & & it7. ssre sf? she turnzsts ond 6.0 oF the eiLsoeugelos. Eos dour she signizicance of 2.5.0.5. te you es opiretors and te che tndustry. ff “sve =ede stre statements here. In sn8lyzing our sosttion, we decided to approach +e sicnizicance @s to why 6 pecple Zail in the “povlins testzuess? “ané the first thing thet comes to us is cepizelizetion. Pecple with low covn psy.ants and high mont... peyzents Just mn : am” een't meet Theis colizetions unde> 72187's business. 4 o>, who cauceé it? I% bes HOS ~@ can't £0 * @ | 3 te back. Sut se don't have to mseke ‘she sen0 mistaxes ina "Se Gena0 seople uto Co not promote this business, Kho che future. Shis busts toctsse the guy “ho te, under Copiteiiced creates Heves os she 2n6Uetry. vel Ff you fove oxperterncce chic. “Ltn Kinhor Coun peycens an¢ closing these sleces of tesinets, your sesizecs becomes Bose Valucbic SeoLsld, TElISus, we these is) any wind oF poles, yes =e7 so':8 3 torgsin, oF sone CF yeu ho wlee SS en,ond, Sot Ssalely you est 2 etsrcare oY evalustion of your business, in low-priced used acelpnent hurts your Sustness, it Hay HOt ceen 80 now bat o'm sure if you thizk etout ‘t, it 16 true. This ‘46 our thinking end it ts of sisnificence to you in C8; ‘zeligation. "he gecoré tecson why businesses Tail is soor nanagenext. ‘These tezxs gonerslily con't apply ney t0 the bovling Susiress, by the way, dut @pply to all sustiness. =F = have a =senagexen* thet hurts you, tt horte the manuract urer exé it hurts the industry. ——— do uct compete Zor the recreation Geller, hurt &ll of us. “her there ts tzs2Zect ive nanagenext, I think ue are sll s2Zoctec. @ think t het pert cf cur fod ix 4 cpereting estadiishzents vill te to suze bovling sore 86S = atzrective to maned to help mexe vovling more ; 3" | “REET RADY AVAN ADEE | et et ; ts e) et —“ preblens anc will perait us to test ané Snplenent new == tustnese builéing 6nd menagerent techniques which ve Bu , be e oe : e a*e . a - e 2233 as ~olr"s - 3323 a ox etoe ~6 osc e=é as be 4 ad sinsgzs - *-* e > e ._2 eo a + \tfe's wo WELLS im SESS SS Set GS Crests & CSuUSsse a e -*. I > = -_ ef teaizcl towlins SonteS Bens ss tsm ee - evs teste uw 71ls I Bovs Sean ners oUr coxmpeny is insercete 4 “&¢ - oa a ° - => ené S's ours FOU Vere eS escos $633 wen So sus ¢utcoe - — efi ¥ ¥ . 2*? _~=— ection: ané ten we sperSscte gexcersiiy. at Tas grese=t vs - -- . - + ~ “_— Gexas, where we suppesecly hireeé ao manager 2rcsa sc=e —- = vid 4944%3 SL8lV c be mac. * *,93% .%* e -~ Laéy in Alva, Cxlanexs. Sn2 sc5 © vizns * = “7. * 7 9 * 2 . v? “We xere wrong. IF can cscure you She pecn-€ wc were * _ - - . - * ° * a - 7 sospencitiz Zor is 2SVEe Seem svopitly chestisec. “€ cf States, teceaucse I thins & hkeve & reevonsitiliity =s = % eaterzete WS SK the cperevicns of vse pecpie here. 3% 42 a very risté policy. Trengiy, 2 in0% ce 20 excéssions. There =cy 5 bus e . = know c2 mome. ALE Shs Riviag os =enssee=s is ¢€onre by the home cortices ete 22 cri iz met Gone st the iccel level. Ger zerezer> at @ towling estoblisnment canno% hire envore excepting a porter co xschsnic. Fe cat- not bite emcther comsge> Zor us. ts, he cannot éc. * Sexes seople “ers t¢ “rou nen meny places me ere ceing ° capitcsl seeds, cgutpment, onc tusléeines. Ser se % > 3-7 ~F «e#vie epee ts ae “= £59 a~7 737 a 3° Ft as - aw. ve Ao tw a vudes bs ed So eee Oe ésiicess —_ eco8 “- . 2 oe ..« se _— 2 ame « e ~ 2 é e . _*~ ferelotrent im the tustzecs is & Sititon 459 s2322ca. =e * -- ~-* ae > oad - %~e co* 2 “es Ad wen Sse uz t 7et 20% cf shis mares wSGlLEé te 209 atultsGs. KF ~ * e = a « a a4 - -- - bd Pes set torts. cf Sraunsctek Ls cniy 209 =tlites,. end ae °. o* - dem Pd ~~ 4 ° ~~ @ e > wits cll ste Seetertis and cveryesins else Nae Tave. So = ésr's know hen we com ever éominatve This incus sry. esstetiy s 2insz02ai potas so vies, = ct counting a= tescnt, w2 €on'*t intené 4s costs sowlinzr nealchy ent prozitabdle. 222 Spesase cur centers. Sur vrimery interest is ts have che tewling business nealecny ‘on lecel end neticnel levels, ané anyshing else re can, $ : => $9, =¢= tc Ueneré. “Te hove nothing %téc ané shey E 4 - ® 2 * src reciily avstlcosie. “ e . *- 2 - o en We sill ecoperste “tSK ony Se FSG == ° - d . qe - - 2 _— eve Loecl srousviens you Tle lism us tS Come 22. 5Ce - * % ce - = — -. @ © “y a “2 “sve Seer Lnvisce SS Sorsicipste om SSE 72 o7658S6~- e e e a «% ~ => Scil tsev, you may snow sére S9Se% ints then = €Ce ° . > - = - a = e ~~ “- o . Coster Suiancon invites us she «6 “ove beer invites ~ as @anteo te 2 nase S27656S..62 “s nave wierze€ wits oe “-- -—, Vas us ere sot piczixg up sre gooé places. Te are picsing up the places that Leck cenzgenent cr cepitsi. ncll as the everege. ‘This is ei. we heps % éo. I: cy i “ an ts oO 7) it) oy) = = uw CS ve 2ccs _— Der a en - = owe -S>5 gta ta eee & ore a. ‘ Oe, m2 r €& w2o%~l cheicrer> Tusa Fou C&R. Osher businesses nave. Eons VATosE = Valse Sirestone hes Zeelers cné suey oun thet> own stores. They werk cn ScheltZzer & “arx éses thite 2 o.3. éces t2is. Tae =.C.a. Tube Divisic= eellis wtetr Televisiox=r Stvistc= -~2 selis *heir> competitcrs. M25 tg E%fcerens t= she bonling business tecetse 2% poet never existed telore, Dut, Zclloms, Ke heve teen Zorceé Set ue €on't pey ony acre nor less “han yeu _ a a* rt «7 ave éc. , : ' . . ; “ You shoulé esr sone c2 the argurcenss we Keve earcouné the ersice. - gon'+ sce these geys =ues —— pid 249b4X3 618LV 7] uo > & ww g % . ' ~ i 4 4 years acs. fz evalvcting a business. hia. aa ee omy mete. 5 Sonnss ges cu Stex “42% t2¢ clisesseE Cr @s sist retbly ony tote Thom She prspersioncete shire — * * Pod co? the tusiness shat = heve. iz = seve Uw o> har? $2 a Pet ee Se 2 stte ~*e ae %% * + scchly mot inverestsé im Seeeang Fase ecsvaudlisarenss. = pewettclie is cer scle. The sniy exception to thas zt this moment % AISC houses thst ue tec over =3 = chetn end thet's deceuse c? sons 2 éntntstrctive. ésteils thet eti12 heave rot deer werized cut end it vt12 Louses we Leve cre cveileble for - . ” Pelions, besce =DCa cur principle 2c ' weiue ené tc-csep your srcéues veluadle, we ere not geize to ecll shise except es EoCimE™ Susincsscs. Te “esd Bét going tc mete ths mistaxes ve “€2é ts OS ee Je ate coing tc require 307 50% down. “Te cre geting sc fell thes Ce @ wusizess tests ef eny Czner sueiness is nerselly 2cl¢é, bascé upon »rcozits, excss Zilch maxe ené cther consiéerstions you wel Vr , pid 2$944%3 O28LV ee l eclieé it ineffective sansgenent. | ! | : - ‘, . ) sctenzial. Te hepe, one xe écn's knen yet deccuce, 2, LEVY: There were 6¢sceussicns in this GScé, Ve Hove cniy deen in ¢ $$ gil trree things you are telx- six ez eignt weexs of trelninsg who have never been ooo e Sanke ng edcut. And T this ené based upon cur evaluation = a Stee \*e écllers dbenind Erunswice & carry Pes on for a stert at 6 = : ‘ i > \ +. | @i69,900. Ze have cver c SS-Lane nceuse we wovlé sell > ai fer $400,000, $497,000, seteclly, with $200,600 sun. a ee Se | 2, TIV¥: In ccther ucrés, you zulé de 4m @ US-Lanc acese? Couré she Prspe>ty etstcré to . £m @ position ts set the price hich encugh sce yeu Pey shes? eoulén's e€21 ther. SR. EUDGs Yes. Et*s ect cus 2cesal. | "BR. RUDCs Is £4 legical tc ncke the sexe ' “7 bo . ann « - dia eet ano pp eis gee igs itil | thing quer eve 'Ghs 2@ sale. You require 50% to 50f mistexe the seconé tine? | . 3 i écoun. A2t whet price? 8 —-- sani: otal ere | re YR, IDVY: It's logical te meke ancther ; Rm. RUDC: She price +s baseé upon cash .mistexe the seconé tine. | ; . m Zl sw presi ané return cn investnexns, ané they «ill . | wR. EUDC: Yes, it ise 5 run 2rem & te 24--lane kouse ané we try to cecize I ‘ ‘ . IR. Ts2acSox: ir. Ruéo partially answereé d wR. WILLIAMS: Milt, in your ¢iscussicn ysu serticneé that you viould xeep shese estadlistments until you fine a suitedie purcheser 2cr then, ané “sur to six years, which is ‘he tren you citeé th evereze time thet they “wcure keep an euscrodile G€cntersnid. Maetis whet Gencreal Fotors founée. a? =- wreTtte i ~ Lua eSs per) you have eny ses Lixit or eces Dransxick have eny sét linit as tc the tine you ssulé Keep these, o> is it just a metter c? en in- Gefinite pericd cf tine? | | BR. RUDC: “Te have not set a limit. Renemder, this is new to ts. Maybde've have mace a. mistexe.” Maybe we ere cn the right read. There eculd ; be a Lot cz things. I =2y de locking for a jcb a year “rez ucx ex€ senstate else may be cperating this: .. tusiness deceuse I'r not écirg it well. Our Company - ané she nanagenen* cf cw Company expect is to be a put one profitable basis. This I can tell ycu. ‘ime elone will ansxer this. I can't tetl you she tire axnd I icvlé be silly +o stay here in such s pericé cf . cpera tion. It is cne cf these things we haven't communicated with you pecple. The fact is, we just we ee vld 24944%3 S28LV --establishrents, ———_——— ea sterteé oné we really éidn'* “nen om cperaticns. Howaré ané I ked lenck a nenth ceo ené this is cne mite I cculé te “ellcoxns whe excs>S Chat =e shculé elz% to yor ené yeu unéerstend why ve ere in it. - a ee “is 3.C6.0.,° kaé azsy sinttas af type cf cperating ccxpany cr have you t2é eny scetucd c2 remning es County Asscetaticns sctre “yo, SRATTAN: I have @ little semcry ¢ 'S. BUDS: . I had juss come with the | Cerpeny. Te were stii eperocving 2 ccuple. “3. 3HG5 SEs SOSH. 4 o>. EINDEZ: —_- vid 24944X3 L28lv _— nea - 1R. BINDED: You have a 95.06 2ree coupen ">, BUDO: It's sete up ct ten é477erens cclors. Ie you tol Zer 12 weexs in cre cf shese ° e efter huguss 15, if- ccorrectly, +t cre care cf temling a weex For ten weess *reresi ver. Shes pespie éen'+s core in exe dowd che seme. Te thing pecple stll esre in enc bozl exné xe chink in the Zall of the year, ween pley tes teen c2f = she less four cr five years this will s*izeiate pecple *c ccze in. It is not e metter cf ali c= “nes used et one tine. ‘It fs cne game © weex that can de utilized. If you went to talx adoct give-ssays, I. knew pecple in | Svensville, Indians, where they ere giving anay nink csats ané trips tc urcpe. I éca't know the difterexce dDetween give-everys end prenc tics. I sey = shis dSusizess £6 ts will se nrezictaesle. IF 28 Sat fntenticn tc ¢c ‘wnat. ~st me cs you 2 Cuesticn. i= you are inc rexzet ané eonebscéy ts running boning Sor 252 en2 you ore gECsire sof, €o ue have @ right tc “rive CeRrzius GCLD3-2¢: You mean, ycu are cpereting in the erea? a | MR. RUSC: Ve ere in Inétena. If we're ia Inéiena, I undersverd we're tn trouble. Te're _opereting et 50¢ exé this san is selling tsowling for 7S. STEPLN: dust es we cen't egree cn pricing, I éen'+ think we can e2=€€ either on what eremetion is, which we will ergege in ené which we mn cur judgment we think prenactica is ct © 13 «ct -t |) a es «ct > * geocé Zor us end dowling gererelly, I don'* think we skevlé cr cen te retaineé fren resorting to it because Pe. x : - . vid 24944x3 LESLYV yes éGon't lize it, 2egslly, you knew. CHEATER AT SCISSERG: «Te E€on'’S wens to ree - £ -e 72 «wm you e= - - i - 3 “s: Ss “¢rers you hone «ill poy pou ecen Tonvn Cver © periceé nd ~stwe = o - - oe 2 -- “.? — ~%e 2 Cl Sitse eeR you errive é€% on you ‘uéromens wrest 2S - > 2 2s 72 — ~— . ~ _- @scé Zor dewling Frexetion eré it helps tc Duy @ substentiel mumber> cf these cther pecple cut cf tusiness if it shenlé, seems «© nme screwhere along *he lize ‘seredcdy hes a rigtt sc say scnething. 2. StSPas: You ere bringing it tc cur astenticn in ter=s cf cur coun self-interest. a ‘ER. EVDO: Our interest is your interest. Any cf cur oromsticzs ere aveiledle +c any cf the vecple who “went to utilize shen. In fect, in cne gpecizic case a whole asscciatica aécpteé shis. epee st CEALENIN GOLDSERG: Well, Xilt, with these King c2 pronstiozs we éon't meeé ary self-help. "2. TEVY: TWhst are you ¢cing tc promcte ~—-*2e + as . °. nen Sewlers? You are in the bewlizg business, what ‘gre you écing to promcte new dewlers? wR. HUDO: Im the State cf indiana, * ee a ee ” "ies « * “i . pld F4944X3 cesly in the Zive or six teuns we heve been in, ve have foun the operstors there never even uent into the echcols. his is 2 ehoin c= six estetlishnents ue took over, svo 16's exe Four 24's. Ané Iues to14 in these toxnas they heé never epproesheé the schocsls. They éién'+ évVen Ancu whOt they kere tS contect.. Ye heve cone tn >a et og wu '; Q ™ tf en om :° % oO mn: .¢) if (by et ty (b ) a i! om ct +4 3 ™ s you Go. cate aaures shat Beve van écne in érees where they neve some into the schools? =O: Speciticsliy, we heve run ieermn To Soul" ené telesnene solicitations, tre heve =u2 éoor-to-door Soiicitaticns. te ere cing the sane things, exéctiy the séme things. tné it's our intention CRATRYAT GOLDSERS: I guess I got the vhing off the treck there. Pia, xo RALEIGAE: z éon't 1ixe 4-letter words and esrecielly I don't like this "free." Xtlt, you menvtioneé this is e meW experiexce to yen, that you pinpointed tuo houses, @ 24-lsare house end @ 50-lene mouse ené with the so-called Gown peyxents yous eid it “oule pey of? 7 in seven yeers. Tou haven't experienceé the stuxxer months yet, © ; ‘a ao MR. EUSO: of seicg it wes & lixited deal, vld 349b4x] cesiv = bsseé this on our operetions fro= Merch threugh ay on sme mouse. I agree with you. tut i2 scmedoty7 wentec te ovuy thex today, this is the price we weulé sell for tases strictly sn cur lizited éee1. Feople heve seié ve ésn'’t “ext t9 sell trem. --sePF = DP £18 eo : o> te fass. We Tickets also be purchased from sports RAGES ENTRY ss EVERY SUNDAY Hy jar Nas teen ~ i mw an may be pur I've ever seen,” seid Chauncey. end Cone Jona MacLeod o ‘ATE ANY BOWLER AM. = * tly at 8 p.rh. Those at the head table will be four previous ho said Brunswick had seven : . vo See . waen Cc ne ny , nt mt why we recipients of the award. They are Sian Bahasen, or a the state a ™ BOWL DAILY HIGH $2.25 = D2 ia ~~ Super - _ Bob Boozer, Rob Devaney and Bob Gibson. = before the firm decided to gelnt perfermence. his be DOUSLES SERIES s10 ‘ he said to ihe cheers 0 . a the tushers’ 68 esncen. “mw atom had . . e ‘igure that 1,50 bowlers ; , (714) 623-0702 Complete Brecklost © 3 a ‘awd, many of “4 B ll W ld R cer lane” is needed to make a The i rs, Cespite a ae © Seep Ciaee on - on a l ou equire facility success’, ke said. %? Tore than two bam re five hours. height per mas in toeir State HorsestoRun ,iirgxer gases lieved the area was better than 1500 boar lene. seesieie tenes line, outredounced the Sc 43-39, Lee grabbed 12, one than Adams, the Sooner sonal :eader in Chat Cepar “+ Uveters eained the Could jd Honoxed tecreqgtiey fav) = 9EBLYV Werte» Lincein Bureev. Reem 1, Executive Guiding. “m ““ahesevq oare tracks to Qld 24944X] - list ."" he said. ' uty ' fa s were at Red Park at 7:55 pam. when am arrived from ‘Dules In- onal Alrport, only a few away in suburban Vir- although team officials made known they didn’t i big reception. 2€ tried 19 warn fans away the Reriskins, fearing a > j}2m on the only access 0 Dulies. ; hian't think “e would have type of turnout after a said Coach George Alien. of the good things about sar has teen Thriller passes—got four ‘lover and Dixon two each. manentertain standpoint, the Rodrers lacks sufficient hijinks— igh the Thrillers have ’. Johnny R and pals may ady with a foothal! wedge on the court when they in- the University of Nebraska maha Fieldbouse tonight 30. z Pruitt, Oklahoma grid ho was supposed to be a °rs cage teammate, re- lly miss@i a plane in on. ehan Bob Rodgers, no re- to Johnny, officiated the and blended in ‘sharply the comedy, il Cheeri ompeted last Vierguad> tid Ein SUES bowling associavons Tickets Available : For Sports Fete Tickets for the Omaha Sportscesters Associa- tion banquet will be on sale until 6 p.m. tocay at City Auditonum The banouet wili be at 7.20 p.m Wednesday at Peony Park. The even wil! feature ex-Oma- han and former Chicago Bears’ runing beck Gele Sayers as the sportscasiers’ men of the year Ex-Green Bay tackle Henry Jordan will be the principal speaker Tickets also may be purchesed from Sports- casiers Those at the head table will be fovr previous recip:enis of the award. They are Stan Bahrscen. Bob Boozer, Bob Devancy and Bob Gibson. Bill Would Require State Horses to Run World-wereid Lincein Burecu, com 2, Executive Gurding A bill to require Nebraska race tracks to have one race a day with Nebraska-bred horses Was introduced Monday in the Legislature by Sen. Harold D. Simpson of Lincoln, who said it is aimed at Ak-Sar-Ben. “The Ak-Sar-Ben Race track in Omaha has used whet you might call subterfuge to avoid this regulation,” Simpson said. He said there is a Racing Commission Tegu- lation requiring one Nebraska-bred race each Gay of race track meeting but that a track can avo’ having such a race on the ground there aren '( enough state horses available. “We have plenty of Nebraska horses now," Simpson said. “I believe this regulation should be given the force of law. It will help a Nebraska industry."’ P Race tracks in the state include Ak-Sar-Ben, Grand Island, Lincoln, Columbus and South Sioux City. The Ak-Sar-Ben meeting is held from May until July, Simpsan said. Officials Exclude Anthem New York (AP) — “The StarSpangied Ban- ner,’’ which has been met with something less than respectful attention by some athletes in recent sports events, will not be on the program for the Olympic Invitational track and field meet at Madison Square Garden. Jesse Abramson, director of the Feb. 16 meet Says the national anthem will not be played because his staff “couldn't find a spot jor it." Abramson said the decision te drop the anthem from the track meet’s program—mak- ing it the first of more than 500 athletic events to gO OM Without the anthem since the new Gar- den opened five years ago—was made last month simicven Co., tne general ron- troctor. ave shootung for a July terine Gete, Doler said, The oowlinz center, the first Brunswick ewned in Nebraska, will be “the most modern in the woric™ when it ovens because it will feature computerized auto- Maic scormme, Chauncey said. Tne system employs auiomatic pinsetiers with sensors that re- lay informatien to computer units for scorekeeping. All the bowler does is identify himself and roll the ball, Chaun- cey said. The Omaha area “‘is the best- lnoking market eres for ba ling I've ever secn,”” said Chauncey, who said Brunswick had seven Cifferent people surveying the area before the firm decided to build “We figure that 1,500 bowlers per lane” is needed to make a facility successful, he said. ‘Anything above that is gravy.” He indicated Brunswick be- leved the area was better than 1,500 per lane. Erunswick Mockingbird Lanes will be the first totally new es- tablishment in Omaha since 1959, when Ames Bowl and Sky Lanes first opened. Sky Lanes re-opened at its original site in 1970 after a fire forced complete rebuilding. Gretna Bowl, built in 1966, is currently the newest estab- lishment in Douglas County, ac- cording to Melonis. The Omaha metropolitan bowling area — which exclude the area east of the Missouri River — now has 26 bowling etablishments and 454 alleys (including Gretna, Elk- horn, Bellevue and Offutt Air Base). The men’s association num- bers around 17,000, with 413 men’s and mixed leagues. The women’s group has about 16,200 bowlers with 222 leagues. “IT think it's marvelous,” said Mrs. Schoon of the new facility. “We have some pretty anti- quated bowling centers here and I think the public likes to go into new and well-kept places to bow |."" She said she hopes area bow!- ing centers will now give more 6:30 p.m. league spots for wom- en. ‘Most now give us 9 p.m. and after, but I think it's safer for men to be out at that time | than women.” in his shooung because of bari.- ing we flu However, he seid his quiz ness had returned afier deser:- nz him dumrp a 6655 loss tw Oklahoma State two rights es lier. The Saturday and Mores; femes are the uni Bic Eighr encounters the Sooners and Huskers have pir\ed Harr:s welcomec the rest — until Jen. 27 and a visit by Mis- souri — “so that I can vet weil.”’ Cipriano credited Harris witn Grabbing important stez!s Sophomore torward Don Jack- son (6&7) is another Husker who was praised by both Cipriana and Coach John MacLeod of Ui- lahoma. * Jackson connected on seven of 13 field goal atiemzis in a 14 point performance. his best in the Kuskers’ 6-§ season The Huskers, despite pivin- up more than two inches in height per man in their front line, outrebounded the Sooners, 43-39, Lee grabbed 12, one fewer than Adams, the Sooners’ sea- sonal leader in that cepzrtment The Huskers gained their first tie at 3-34 on Cal Christine's tip less than a minute into the second half. But the Huskers were to trai! Please turn to Page 20, Col. 4 Hayes’ Plea Is ‘Innocent’ * Pasadena, Calif. (AP) — Ohio State University football Coach Woody Hayes pleaded irnocent Monday to a misdemeznor charge of battery filed atiez an altercation with a press phoio- grapher. The plea was entered in Pesa- dena Municipal Court by attor- ney Andrew R. Edwards Haves, free on his recognizance, Was not present. The charge was fiied after an incident before the New Yezrs Day Rose Bowl game here, in which Los Angeles Times photc- grepher Art Rogers said Hayes pushed a camera into his facc. Rogers claimed he received“a- cial injuries and that his vision was impaired. Municipal Court Judge Sam- vel Laidig granted EdwarJ;’ request for a pretrial hearing. It was set for 9 a.m. Feb. 22. as Jays Invade California hton won, 9 . had 25, Ted | e Ellefson 13° for the Jays.; $ point to a: nd Bobik and > West Coast: with Ralph's} brother, Bobi | Carol, 9 : d teammates ph saidof his, . | cast cage ex-| each a group: ected, includ- from Bobik’ss: ~ .} n Church. } ee ‘haven't seen? 1\ RE ng Section ~~ win three games," so the coast fans may be in for a treat Al Lewis, who flipped 21 poirts against Regis last year, will be absent, rnissing the trip because he left the Wyoming game at the half last Saturday night in the City Auditorium Arena. Al haca't played the first half. The usual starter said Monday that his “teammates were en- thusiastic where I couldn't feel enthusiastic” Curing the 79-€9 win over Wyoming “I know | haven't been play- img as good as | can but | don't like to sit on the bench,” said Al, who is bothered by sinus trouble and I hope he will come back.” Coach Ecd:e Sutton se‘d. “I wouldn't come back :f ary of the players felt | was cheat- ing the team,” Al said. The Jays apparently don’t feel that way. How about the trip? “I just hope they win,” Al said. Creighton Statistics ’ ® a eal G Fe Fee A ad oe 4 i oe aie © ‘ fise Hae gn & 8 it Tw "no« G Eelam " om * SB H Ww s 7 @ ’ ve »” a ® Butter 1) : tu 4 egy ads e 2) 3 ‘ : u W Graves 6 ? ae we a 9Ld 2EGLUX] Lestv . f i ; ' : ak) fr ™, ' , j ’ f : m €: HS i _ / 1 t* - , rr . z _ ue k Lhis vines the bell! “™ 4 orn, « y ™~, / Fiz lColactie-BPelmaliva Jaime 0) , NESE Obs Cn Cie iCeivea JO \ a i* eatin Fe . E> ps a 22 ” +e ; > = : «J WS A a el SPE PL | ew L OIC AE edu Cn HCE a AY e ; ; 4 934,36 PER LANE TO BE SPENT BY COLGATE-PALMOLIVE vA iat FOR EVERY BOWLING LANE IN_THE U.S.A. | } at lf 1 a; 4 4) i FS ays 4 - mao i HERE ARE THE DETAILS: i 4 BOWLING COUPON i\} am : | iT i Ths bowtin e ) \e 1) 100 million coupes good for one free | , (= B00 tyr nn on 14 {game of bowling with the purchase of one game / 4 ¥ with ony Poid — » would be printed on Ajax All-Purpose Liquid, — } P2!ticinating heutie at f 7 yi Cold Power, Detergent, and Falmolive Dishwash- oo. I Centos. es Ex \ \\. ing Liquid. This production would hit the shelf ee { 600d beryoan oy i 4 | \ on or about May 1, 1973 and would be virtually * 2, ’ ' y OTS AM ang ia 4 1 ‘ exhausted by 12/31/73. (/ ao ' .. 4 | Hot wali 4 \i i . - r play, id for leagu { vi 2) «June or July would be National Bowling | * ' | Disieen on F \ Month and the majority of the promotional sup- qa! A\ te % iy Bes Marek 31, 1y76 port for the program would be run during this \\y 3... 7, A = ; i z=> Ol v\our , * Sk ot ae» i poviod. Sf’ | gy | ai y, 3) in support of the program, the following / ' expenditures in media value would be made by ‘ Colgate: Tv +.dvertising $2,000,090 Product Support $1,700,000 Radio 300,090 Display Material 50,000 Print 300,000 Dealer Loader 100,600 Co-op Advertising 100,000 —. : Total $1,850,000 Teil Advertising $2,700,069 Grand Total $4,550,000 4) ‘iowling Proprittors operaiing not less than 7 % of all bowling lanes must , agree fo parficipaie by Febriiary 28, 1973. PROFRIETORS — SEND IN YOUK AGREEMENT TODAY! CS REPRE SOR SP ESTEE LOSISEP SS SOSESEESUSSOSE RH AWS EGON TESOREEEEERS O4EN UNE NEES bSbRRbbO t a . “df National Duckpin Bowling ~, * a Ye oe dhagazesé ors) Congress *# es |W D. C. ote Bae SA OR yee roo S _ Bees a? hey h Sighs © RFE q:* bo Ler a0" © ee “> Oy = Vulcan Corporation Cincinnati, Ohio Women’s International Bowling Congress - , Columbus, Ohio. hal PLAINTIFF'S EXHIBIT £7". Professional Bowlers ‘34%. + + Association » Akron, Ohio . ‘ s . ee ee ath a | 6 om eee oe Volume III, Number IV, September/October 1972 COLGATE-PALMOLIVE TO SPEND $3,000,000 TO PROMOTE BOWLING DURING A 1973 FUN BUCKS PROMOTION. The National Bowling Council and the Colgate-Palmolive Co. have agreed to Sponsor a giant nine-month promotion beginning in April of 1973. Prospective bowlers will find a Fun Buck on Palmolive Dishwashing Liquid, Cold Power, Ajax All Purpose Liquid Cleanser, Wilkinson Shaving Products, and other Colgate household products. This Fun Buck can be taken to a particifating bowling center and exchanged for a A FREE GAME FOR EVERY PAID GAME. Redemption can take place from 9:00 AM to 5:00 PM, seven days a week, plus any other times made available by participating centers. Colgate-Palmolive will place not less than 120 million Fun Bucks on the products involved during the nine-month promotion with a notice or tag on the front, calling attention to the special bowling offer. In addition to $2,250,000 being spent on TV and radio advertising and $750,000 in store and cooperative advertising, Colgate-Palmolive is considering a direct mail piece to more than 15 million households calling attention to the bowling offer. Colgate-Palmolive will also cooperate with the National Bowling Council in advertising in local newspapers listing all participating bowling centers. Bowling proprietors are urged when they receive complete details of this promotion this fall to return the card with their agreement to participate so that NBC can include their bowling centers in these newspaper advertisements. At the BPAA Convention in Honolulu in June,the Fun Bucks Promotion received a very enthusiastic endorsement. According to proprietors there, "Fun Bucks is a natural promotion and should result in a substantial lineage increase over the usual bottom line.” With four times as much money being expended to promote bowling as during the Post Cereals oe Promotion, everyone in the bowling family = cannot help but profit. o> © Ww vo ~~ e*] ~ . PRESIDEN TFAE. Ne. SPORES: & yoy! te —_— - A Z> Tet se o* ~~ sa? hs) wie era “oe 7 4 a 2)- ery o a as ed ohh LL COLOR/FULL PAGE on’Bowling is Fun +-1/5 page listing participating centers P ~ b te mS vB oF ie ae 20 VIM '2 back panels New this year 20 VIM full back panels PLAINTIFF'S EXHIBIT New this yaar 20 MM full front ~~ panel patches Vey pan 60 MILLION eu MILLION Front panel patch & certificate on ail 60 million Front panel patch & certificate on all 60 million 6ld 2$944%3 evsiv 6ld 3$9$4%3 vesly RIN EW THIS EAR SN MTHISPROGAAMIVILPROVIOE TV ADVERTISING PUI Pe MAXIMUM EXPOSURE | devoted | exclusively LE, ee. | nl ete GENERATE TRAFFIC nt “si Promotion Bee ek TAKE FULL ADVANTAGE OF ALL PHASES OF THIS PROGRAM- To insure your Bowling Center will be listed in LIFE and/or LOOK-or newspaper media »~?, an hind @ aisas iMot rt be s ‘ ey ay Ag™AF AID AIT m 2 di . ' ~: . Si t 34> “Aej. x se. O33 | ”- ; we & fr . " y 4 . on ~ 4 -- yy x 1 oc, A ‘ = afte —_ — ~ J = & 7, eS z= ‘ ct ow Dea y =a To = ~~ wo SLAINTIFF s EXHIBIT (>? = . Brunswick CORPORATION OFFICE OF THE CHAIRMAN OF THE BOARO PENCAS Coyonne. ws Dear Stockholders: In the May 1 issue of Forbes Magazine, you may have seen an article about the Company which may have caused you concern as it did us. Attached you will find a news release which, I believe, explains the Company's position. To put it simply, the earnings which we have reported to you are fairly and accurately stated, and reflect the true operating results of the Company. The news media did not accept our release since they consider it to be a part of a private controversy between Forbes and Brunswick Corporation, So we are taking this means to bring it to your attention. Mougo ~ 5401 OLO ORCHARD ROAD / SKOKIE, ILLINOIS 60076 U.S.A. / TELEPHONE 312 - 982 - 6000 O8d 3$944%3 Lvslv \ foes ame aK aoa Bruns WIR con a an a + ba 7 ‘Ss The following statement was issued by Brunswick Corporation April 27, 1972: This week a misleading article about Brunswick appeared in FORBES magazine (May 1 1972) that contained misstatements, distortions, and innuendos reflecting on the quality of the Company’s reported earnings. The Company’s management believes it has an obligation to its shareholders and investing public to set the record straight. The major thrust of the article is a very damaging suggestion that Brunswick’s turnaround pacha pee ee since 1965 are ‘‘not true operating profits,’’ but rather are ‘‘inventory profits’ resulting from the fact that Brunswick ‘‘wrote off too much’’ in 1 96 se = ing boom collapsed.’’ 7 nee The fact is that in 1968 the Company recognized that its reserves were $8,500,000 greater than a but the reversal of this amount was reflected as an extraordinary credit and not as part of operating income. This was clearly disclosed in the Com , mah west seo pany’s 1968 Annual Report Furthermore, no proiit at all was recognized on the resale or lease of repossessed bowling equipment inventories prior to 1968. In 1968, the Company began to reflect resales and leases of repossessed howling equipment in consolidated net sales and revenue, but included only a normal gross margin in operating income. The effect of this change in accounting on 1968 consolidated net earnings was $610,000, or about 3¢ per share and was also clearly disclosed in the 1968 Annual Report to shareholders. Since 1968, the amount of repossessed bowlin ag was declining and earnings from sales and leases of such items have been coe then In addition, the article implies that substantial operating profits have been contributed b retail bowling operations, repossessed and operated by the Company. In fact, to avoid takin additional equipment back into inventory, Brunswick operated such bowling centers and coke the first few years after takeover, suffered significant operating losses and negative cash : — While the retail bowling center operations are now profitable, this was accomplished —— ae a and effort by management coupled with the general turnaround in _ The article also states that several of these repossessed bowling centers have been resold at { ‘ very substantial profits. The Company has resold six retail bowling centers since 1965, of | ye! ’ which four were sold in 1971. “Te net effect on 1971 consolidated n et earnings of center sales was about $200,000. gs of the four (over) O8d 349443 8rsly pA ‘ect’ Vance Cornish” Bill Francis in yo oll? Coetificd Vo. 194509 | | Neturn Feeccint KReemested | Harch 19, 1973 Mir. Vineent Corbelio A2 Iain Str2ct “a4 sta: ** re @ ¥ Lodi, owe vworscy Referoene2: Lease dated Juno 25, 1979 ky an? between ; i *! Mr. Soxrkello and Drunsnick Corperation | me regarding edi Lunes -°* i. Dear ix. Sorb2llo: . : - Whis is te confirm tue toleshone nvcaficction to you by liv. Wildicm Penneia of te Dnamevieh C xporcticn, tha the Prunsviek Cezcoxation vil 2 conse pate tnt in 3 tod i The Internal Revenue Service claim for income taxes discussed in the article was fully foncs 03 of May Bly 1973- . _ Te covered in the 1971 Annual Report and had been previously disclosed by a special press ' . : release last August, when the probability of a substantial claim became known. During the course of the icase, the Eruncwiecl: Ccresration was fore?d to mnké rernirs to the promises for your acvount in the ameownm af $7,031.13, toe which yeu have airondy rcesived ccpics of the bills xopresenting this Wore Note 3 in the 1971 Annual Report said: ‘‘The Company believes that its treatment of the items in question was proper and ir accordance with both the Internal Revenue Code and generally accepted accounting principles. In the opinion of legal counsel the deductions taken by the Company were properly claimed in determining its income tax liability. The Company intends to defend its position vigorously at all appropriate levels of appeal... Management is of the opinion that its reserves for Federal income taxes are adequate and that any adjustments which may ultimately be determined will not materially affect the financial position or results of operations of the Company.’’ © eee oc ? 77. ame 3 DemAb oma bay samt shl. Yervescre, Accordi:siv, we will reir surse ourselves by ecluctiry a mm 8 ”~ - e tee. & - # “s+ +Te. orki anskolinent to the eo. *O% 60 sy WO AVL erty ESF mysog The special tone of malice in the article appears to have been prompted by annoyance at having hate tied been denied a personal interview. Because of the misstatements, distortions, and innuendos in the article and the effect of the allegations on the investing public, Brunswick plans to call this problem to the attention of the Securities and Exchange Commission. Pca oune a mipreucati.ldiva ef the evedit Cunastecnt wlil = a . . - - _* = © . « - : - ~~ -« - » oe . . . ee. ° CANE VOW AM wis &e.. ~ Jw 29 GAnCculs .23 4 Cinceorely. | EST GOPY AVAILABLE vw. We. cotoroun eeperty fc. anictreter 6v8lV hI Aar m x => ~- Ce _ + uv ie “8 1. Both hand dryers are missing and need replacement. > ta Building Exterior 1. Majority of the downspouts are broken and missing and need thorough repair. 2. The entire exterior of the building needs painting. 3. The majority os gutters around the building need repair or replacement. 4. Due to lack of a downspout, a corner of the build- ing at the rear entrance is eroded and needs replastering. 5. Exterior of the building immediately next to the rear entrance needs finishing exterior-wise due to a storeroom addition. | 6. All aluminum doors to.the center need repair and im aggeensuetety Stas instances, doors need re- placement. 7. Roof leaks. Tenant will obtain and provide to Landlord an estimate as to the cost of each item, and at Landlord's option, Landlord may direct Tenant to make the repairs at said’ cost, but all at Landlord's expense. After the completion of said repairs, Tenant will be responsible for the care and maintenance of the Premises as provided in Section 6. L8d 34444x3 L98LY ‘Section 28. SERVICE AGREEMENT. As part of the consideration for the execution of this Lease, the Landlord has required that Tenant execute, concurrently herewith, a Service Agreement by which Tenant agrees to perform certain services to Landlord which will be essential to the successful operation of the cocktail lounge. The parties hereto recognize the importance of such Service Agreement and also recognize the importance of the continued operation of the said cocktail lounge to the success of the bowling coutes business. Landlord agrees to make their pest efforts to keep the license for such lounge in good standing and to make no effort to transfer the said license from the premises. L8d 249443 298LV Section 29. EXISTING OBLIGATIONS OF LANDLORD TO TENANT. Nothing in this Lease shall diminish or modify the obligations of Landlord to Brunswick Corporation under cer- tain contracts for the purchase from Brunswick Corporation of bowling equipment now installed in the Premises. Land- lord agrees that in the event. that Landlord fails to make any payment. required under said contract on the date required, such failure shall be a default under this Lease, and in addi- tion to any other remedies which may be available to Brunswick Corporation arising from said default, Brunswick Corporation may deduct any such delinquent payment and any late charges and interest thereon from rental payments which would other- wise be due under this Lease. L8d 3$944%3 e9slv Recreation Brunswick Comes Back With Non-Bowling Operations THE TOP OFFICER of Brunswick Corp, John Leonard Hanigan, says he never makes earnings forecasts. Naturally reticent, the 58-year-old executive has had plenty of experi- ence dodging questions—he spent 2€ years at Corning Glass where management is known for its re- straint. Hanigan was executive vp of the Dow-Corning unit when he left in 1963 to take over the presidency of then-beleaguered Brunswick. At the time Benjamin Edwerd (Ted) Bensinger moved up to chairman (a : post the 64-year-old Yale man still holds) and in 1966 he gave Hanigan the chief executive title es weil. Forecests aside, Jack Hanigan these days is making a determined effort to talk about Brunswick. On a brief trip to New York from Chicago headquarters recently, he stressed: “This is a different company and a lot of people don’t realize it.” Last year Brunswick derived most of its profits from two non-bowling opera- tions: 85%-owned Sherwood Medi- cal Industries and the 1961-acquired Mercury marine motor division. With sales up 7% to $450,000,000, Brunswick earnings in 1969 totaled $14,470,000 or 78¢ a share vs 68¢. This represents the fourth straight recovery year for Brunswick. Peak profits came in 1961 when the com- pany netted $44,980,000 ($2.58). Bowling revenues then accounted for 70% of business compared to un- der 15% last year. When its auto- -—- matic pinsetter business collapsed, profits crumbied. In 1962 earnings fell 46% and the decline accelerated until! 1965 when the company re- corded a $76,700,000 deficit. That year Brunswick wrote off most of its inventory of repossessed pinsetters and provided for future losses on re- ceivabies. Quiet-spoken Jack Hanigan, who wears metal-framed eyeglasses, says: “It’s a comfort these days to have a solid balance sheet. We have really cleaned it up. Our accounts receiv- able are in strong hands. For the good bowling proprietor, bowling is a helluva good business.” Brunswick stili sells pinsetters, mostly for replacement, and remains the leading maker of bowling sup plies. Brunswick has been No lin bowling for most of its 125-year life and it was in large part to protect this dominance of the equipment field—from alleys to pins to balis— which led it to develop its pinsetter, following AMF’s pioneering Pinspot- ter (IR, May 6). Potential Contributor Interestingly enough, one cause of its woes has turned into a potentially sound profits contributor. The com- pany repossessed a number of bank- rupt bowling centers, mostly in 1965. Under Brunswick tutelage, the 175 centers last year produced a net profit of over $300,000 on revenues estimated around $37,000,000. As depreciation costs decline, the presi- dent believes the operation wiil earn at least $3,000,000 pretax annually by 1973. Brunswick has acquired its way A1864 Exhibit P87 vr into several other fields. In 1959 it bought AS Aloe, a distributor of med- ical supplies and scientific equip ment. Brunswick subsequently pur- chased several small medical equip- ment manufacturers. In 1968 the company consolidated its medical activities, except for the Aloe distri- bution operation, into Sherwood Medical Industries and sold 750,000 shares to the public at 29 (Sherwood now trades on the Amex around 41). Sherwood Disposabies Sherwood, which is consolidated in Brunswick accounts, netted $6,- 450,000 in 1969 on sales of $48,- 700,000. Most of its business is in disposable medica! products like needies, syringes, tubes, procedure kits. Early this year Brunswick sold Aloe to Sherwood for $15,700,000. Aloe has sales in the neighborhood of $60,000,000. Sherwood is now the No 2 hospital supplies distribu- tor after American Hospital Supply. Brunswick's second big profits contributor, the Mercury division, stands No 2 in the industry after Outboard Marine which has both Johnson and Evinrude. President Hanigan notes some softness in stern drives (inboard-outboard motors which range up to 390 hp) and in- béard engines but adds “we've been able to shift that into outboard mo- tors,”” Mercury's main business. Con- corde fibergiess yachts have felt the recession however. The division (once known as Owens Yacht) brings in about 3% of Brunswick sales but sails in a red sea. The consumer products division includes MacGregor sporting goods, investor's Reader * Page 27 — eee oe eee oe ~ ae : Zebco fishing tackle, Australian ski * supolies, Brunswick billiard tables. , In totc,”” the president explains, the division is profitable. But sport- ng goods is simply a matter of marketing—there’s no way to have 3 technical advantage. If you made a club that would drive a ball 450 yards, it would be declared illegal.” Jack Hanigan is a golfer, ‘‘a terrible one,”’ and enjoys bone fishing. The rest of Brunswick is com- prised of the technical division, which does military work, mainly air- craft radomes (radar housing), as well as general R&D for the company, and the international division (12% of sales). Again led by Sherwood and Mer- cury, Brunswick profits in the March quarter improved to 18¢ a share from 14¢. Jack Hanigan says the company has been affected by the Teamster walkouts in the second quarter but only so far as suppliers From tee... an /™ a 7) ~ **. . ‘ ~ ez! ™eo, --. - - ~ . . . ‘* “2 Seok SAE Pees OS Ie SAT ae , hot” 4 ae » = ;' are concerned. Brunswick has ils own fleet of 100 trucks. Wall Street- ers expect full-year earnings to rise at least 15% to 90-to-95¢ a share. Jack Hanigan has a five-year plan which “shows steady earnings im- provement.” However as far as the company is presently constituted, be does not see Brunswick returning to its 1961 profit level in the period: “That would mean. an after-tax re- turn of 25% on current stockholders equity. It’s not possible Nor have prices of the 18,700,000 Big Board-listed “BC’’ shares come close to the glamorous bowling peak levels. A steep climb from 8 in 1959 to 75 in 1961 was followed by a col- lapse to 13 the next year and 6 by 1966. BC recovered to 25 last Sum- mer but, despite the earnings ad- vance, the stock dropped back to a 32-month low of 9% in May and as of last week traded around 13. Brunswick has poured big sums into three new products, two of which should start to return some div- idends this year. It has spent $10,000,000 on Brunsmet, a metal fiber for use in carpets, acous- tical material, hospital uniforms. The fiber neu- tralizes electrical charges and thus is shockfree. Other advantages in car- pets: “It keeps dirt from clinging and is longer wearing.” Brunswick has in- vested $5,000,000 in a computerized bowling " scorer. The $13,000 automatic de- vice also “inserts handicaps, gives a printout of the score and elimi- nates free frames. It takes. care of four lanes at once.” Brunswick hopes to install 500 scorers this year, “‘if we can make that many,” vs 50 in 1969. Most are being sold out- right. The third project, All-Seasons Golf, is more of a financial gamble. So far Brunswick has spent $5,000,- 000 on this computerized indoor golf game. The player drives the ball down what appears to be a fairway but it is actually a panoramic picture projected on ribbons of nylon. A light beam acts as a sensing device, computing the velocity and trajectory of the ball. The picture changes for the various fairway shots. If the ball lands in the rough, the floor turns over and simulates that condition. There are also water holes and sand traps. After the player gets on the apron or green itself, he goes to the next room to chip or putt. When fin- ished he presses a button, the green undulates and stops at random. Then he returns to tee off in the first room. The game pictures nine fairways. Currently Brunswick is market testing “‘the commercial feasibility of the game. We have not made any decision on producing it.”” Brunswick has built nine games and operates them on Woodhaven Boulevard in Queens, in Chicago suburb Lombard, Buffalo and by Fall in Tokyo. The US test lay-outs use portions of Brunswick-owned bowling centers; in Queens three golf games take up the space of seven bowling alleys. The A1865 Exhibit P87 game is usually rented by a foursome —$20 an hour for prime time at the Queens outiet. Jack Hanigan thinks Japan might become the big market. ‘‘There is no land there and golf is a status sym- bol. They even have five-story driving ranges." He adds all research ex- penditures have been expensed so there will be no big writeoffs if any of the new projects flop. President Hanigan has set up cer- tain standards for the company’s various operations. To this end, Brunswick in December sold its $23,- 000,000-sales Schoo! Equipment di- vision for $9,800,000. To Jack Hani- gan, @ Brunswick business “must have a technical advantage or be a major factor in the market or both.” investor's Reader + Page 29 ; Pd ” 4 € - % ¥ ~ Year 1956 1957 1958 1959 1960 1961 1962 1963 1964 1965 1966 1967 1968 1969 "1970 1971 1972 BRUNSWICK CORPORATION -- SUMMARY OF PINSETTER SALES (NEW) AND REPOSSESSIONS OF PINSETTERS -- IN UNITS iW Tite U.S. Sales Repossessions 1,890 no record 7,041 no record ; 10,528 no record , 12,876 | no record 15,232 no record 16,288 300 7,518 1,462 2,978 3,354 1,441 . 4,592 ok 5,996 244 | 3,658 295 1,688 112 716 118 783 173 290 : 72 116 1,048 | 50 LG 3$944%3 998LV eeretese eeeaenees | 7 A1867 _ INTERSTATE LANES Exhibit DIA ; RAMSEY NJ as oS eeslaniienalanele ’ REGION = 2 OLSTRICT = 25 TENPIN 40 r ae - & BY PROFIT OR LOSS - STATEMENT PAGE NO, 1 DECEMBER 1972 : _ PROGRAM LP282-C2 CURRENT MONTH ACTIVITY YEAR TO DATE ACTIVITY . - % a - > he o7 a +S =r wy td eer rene = “- - - - ACCOUNT DESCRIPTION ACCOUNT CURRENT CURRENT LAST YEAR CURRENT CURRENT AST YEAR ; bt ng: Oe, CO — ACTUAL ACTUAL _ BUDGET | aAcTUsL Ses 9. UES a ee SOPs PEASE De ee a p S8t*GROSS REVENUESS## . Tie se Me PE ee Se, Ce Pe ne TEN PIN REVENUE bias + Ee es shee Ff REE Saks. Sees 4 ytcmemuerd es 749 i 1716 3 -285 2 > @OULT TOURNAMENT 31010202 t, cy Se Pe ae ae |, 420 33 ‘FEN PIN JR LGE REVEN 31010300 2362 3.6 135G¢ , 203. 2390 3.9 16973 3.3 9325 1-8 15562 3.2 TEN PIN JR OPEN REV 31616460 “3063 408 ~+* Bee Wee 4.8 23853 4.7 27225 5.4 2742 S.7 JUNIOR SPECIAL 31015401 296 5 ACG 1 327 . 3223 6 1740 3 1952 4 - JUNIOR TOURNAMENT 312010462 153 i) 75¢ 1.2 128 2 324 i 7006 1-4 262 g --* SCHOOLS — 919010403 Somme trees OTe eg SO Fer rin cays ¢ —-- 9° ~~ 399 . = peg aay | TOTAL TEN PIN REVENUE 36819 57.8 34283 61.9 296242 59.4% 285052 59.0 | +o sz: ei VE Bee ne ee ee ss ie eS oe ie ee ee TOTAL BOWLING REVENUE . 36619 57-8 34283 58.6 35170 56.8 61.9 296242 $9.4 255552 53.0 POS Ee eee — Qe TE ee, eee ee Ie ees a% oe aes ol OT SS ee pats" Ctet Sie AL Bee eee Se ae eS SS Fe p Sees i fe. LD ae eat eels sane = . ?-; SHOE RENTAL ms" + eee. | ETE oo ae a oe em . Aes. OTN oop A , Sie ee - aa ca : | . SHOE RENTAL REV 32010100 . 1769 228 1625 [ ee 2.8 152068 3.0 15032 3-0 15316 32 LOCKER RENTAL REV 32¢1920¢ 69 Sg 49 1 482 .. a 4c3 1 TOTAL SHOE RENTAL 1829 209 1625 2-8 1765 2.8 15690 3-1 15492 3el 15719 3-3 peey « _ °. SS ho TI : So =" 7 “as BI oa Se A “FFT ee Sa ee re ey 5" rn Ae A [ qeeeer 2s peng: 0 22) Ore Tope neg PRO SHOP ‘ 7 yates 7 ¢ ; : ct ie : . ‘ PRO SHOP REVENUE 32023100 4464 7-0 1656 228 3598 5.8 13626 2e7 14768 2-9 15161 Bel ‘SHIRT SALES 320293°0 15% 3 250 4 205 3 1178 2 2075 a 861 2 TROPHY SALES 32€ 2040C 3 ; 2631 5 65¢ | 1461 3 BALL PLUG € REPAIR 326206CC 63 1 48 1 609 1 168 TOTAL PRO SHOP q 4371 6.9 1906 3.3 3851 6.2 18044 3-5 17493 3-5 17651 37 7 e. aa gt: nye . Soca ” sos - mie pe age. tc: es aetethaaon tt a3 : : BILLIAROS : : a 7 BILLEAROS REVENUE 32C3010C 1119 1.8 1217 2-0 1541 2-5 9356 1.8 11193 22 411663 2! VENDING MACHINES %. . 3351C20C 3 ICE CREAM REVENUE 33C1C4CC 76 1 7é SNACK VENOING MACHIN33-106C0 322 5S 116 1 2866 6 92¢ 1 224 BP OO Oe dis A1868 INTERSTATE LANES 10s Exhibit DIA ' RAW SEY -NJ — - REGION = 1 DISTRICT = 25 TENPIN 4C ae ie J aed PROFIT OR LOSS - STATEMENT PAGE NO. 2 DECEMBER 1972 PROGRAM LPC80-C2 - Paes = CURRENT MONTH ACTIVITY Fe YEAR TO DATE ACTIVITY " ACCOUNT DESCRIPTION ACCOUNT CURRENT CURRENT LAST YEAR CURRENT CURRENT LAST YEAR = “NO. = ACTUAL —— BUOGET ACTUAL ACTUAL BUDGET ACTUAL BALL CLEANING MACHIN33G10960 is 12° 26 Bok ae 199 114 GAME & MISC MACHIN 33011300 528 . . Ps 528 1 g LUSTRE KING MACHINE 33011100 144 2 ics ti‘( 42219 ‘8.3 «48950 9.8 44693 902 DRAFT BEER REVENUE 34C10200 . 2708 4.2 2967 5.0 3052 4.9 22903 4e5 24643 4.9 24537 Sel BCTILE BEER REVENUE 34510300 2539 4.0 2306 3.9 2394 3.9 21123 401 18466 3.6 19533 4.0 TOTAL BAR REVENUE: = ee Biase, ce AT? u3er ca: | ame “18.9 — 86245 aS et a ae “18.4 «= 887631864 FOOD REVENUE _——_—ae Ss . PETES SETAE EM PBA F SIS oT die 54 8 — She SPT Sate me - - sb. - 5 En Ande see _ FOOO REVENUE 34022100 6151 $.7 69ec 0s 6696 9.8 S2021 2000 $6060 22.2 54553 Dhe3 TOTAL FOOD REVENUE 6151 9.7 6580 11.9 6696 98 _—S1C2E 10.0 S80CD 1le2 54553 he 4d Brobens — ae ess :g* 4". --3 aeapan * Ae Ee “ee TOTAL FOOD AND BEV. REVENUE | 17405 2763. 28347 BAH 17796 «=. 28.7 «137266 2669 147993 2947 «= BEERS = 2906 RENT INCOME eae. Mth SPD pea te | RENT INCOME-BUILDI 35016600 ~ OOPS RT SR EE SB 20 ot i tr TOTAL RENT INCOME aR Ree Oe co tt et YS SRE 20 | * COMMISSIONS REVENUE | | COMM. VENDING MACHIN35C20100 658 1.3 625 1.2 1129 1.8 7687 1-5 570% el 5911 1-2 "COMM, TELEPHONE 35620200 on 27 ; "= gle i 305 325 1 TOTAL COMMISSIONS REVENUE 658 Oe 1.1 1147 1.9 8003 1.6 6065 L-2 6236 1.3 " TOTAL TOTAL GROSS REVENUE 63735 17669 «$8465 CoD «=» 94H NDS SE9ESO «= NOCD AVOTIR =D = 483946 100.0 I TF SE Ne “_ PR PPR 8 OT ———— es He A1869 INTERSTATE LANES . 1029 Exhibit ‘DIA - RAMSEY NJ Pe NE VEE REGION = 1 OLSTRICT = 25 TENPIN 40 — ——— — + —- —+- ee ee —_ —>———--- 5 ~ 8 PROFET OR LOSS — STATEMENT PAGE NO. 3 DECEMBER 1972 spay PROGRAM 1280-02 CURRENT PONTH ACTIVITY YEAR TO OATE ACTEVITY it - ba we °c Oe Sees ~ Ve ' my ACCOUNT OESCRIPTION ACCOUNT CURRENT CuRREWT ‘. LAST YEARR CURRENT CuRREST LAST YEAR WO. ACTUAL BUDGET acTuat _ ACTUAL 7 eu0cet ACTUAL -* * -- -=- - —_——— : -.-+ . vw e —_ » ss ee fh: -_-_- —— ee — - ——— ~- -- - ——_— . . o . P ? | Se89COST OF GOODS*+ss iE SSE ee ae eee nie a ee "tay - PRO SHOP COST : Ear. 8 Gao y 2 ie ts Sate Re eeu ree mE _ j PRO SHOP COSTS 42020100 2153 48.2 994 60.0 2496 69.3 6363 61.3 gees 60.0 eco? 60.0 S SHIRT COSTS 42020300 608 ~ 381.3 2380 8©=s- 75-2 184 89.9 ~124G 105-3 1557 oe 66.2 TROPHY COSTS 42023430 45 $812.C 74 1449 55.2 3S 66-0 21493 102-2 : TOTAL PRO SHOP COST 2806 4 3=«_ 64.1 1n82 08396 62-3 2754 110511052 61.2 108E> 61-7 12261 63-2 . WENOING COST 2 Se og RT ae | ex Tak. ied eh. fer aT re 7 se , SNACK VENDING MACH CST4301C6CC 101 33.4 “en 38.7 55 54-6 454 68-6 BOWLERS AID COSTS 43011200 444 36404 36 65-4 199 - 777 100.9 yee 65-5 702 1 ’ TOTAL VENDING COST 7 $45 45.7 (36-4 | be 34.2% _ 856 : 48-3 , 7 _—-=; -_———_--— 2 . ee ——ees E e ee er ee a = IP PP Lt oa = -_— Sa. 7s =. = eI REF 2 s =} ~—F-> 8 = 7 on. 7. '? — aa sn =" ~~ - 3 oe i= Me sa = -. > = = 2 L = ° o: (FS BSW Ne Sie Tal : 4 . ie ys . 7 ry 4 : LIQUOR COSTS 44015100 * «2236020 38%220CS—«C 2) C22 3695 4301 “quite 26.4 107F= 22-6 11319 24.8 > DRAFT BEER COSTS 44010200 1163 42.9 $20 312-2 1260 42e2 5929 3=«-_ «25.8 763% #369 6156 25.¢ : BOTTLE BEER COSTS 44010300 1244 . 48.9 625 35-0 1014 42.3 604C 28.5 6442 35-C $828 29.8 : TOTAL BAR COST =fs i! 6688” 6802 3067 26.9 4969 4204 23147 = 2608. 2485R 27-0 23103 26.0 -® aa =. cas’ ee ee de ee tat aft a8 r a >. hs tee =. age ~ ap 3 , a oe “tz ote! . : ; 0 fo te Soe Se MI ie ce i eA ee A ea ne ea oeewigpee* oaks : PF SO 85 8 PUES Saet. Fee > ect a ame | eee Sete 8 pene Be A ee ge BS Oe et ee Ee z 3Sis eee. % ; : RET Le RTS ee a Se ee. xoch oe ate ES 2 De Se sf “_ sd : FOoO0D cost 2¢ . oe et ee ee et ee DS * 2 . ee a er ee ee er Ne aed ee ae ne we SS OCT NS 2 te ee eee ee eS Si ocean ee Se ee > FOOD COSTS 44020106 3851 = 626 2443 935-0 3347 54.8 192938 37-3 196CR 3500 19339 3560 : TOTAL FOOD COST) 3851 6266 = 2443 3502 $947 $609 29088 «373° 1960E Sek _19139 350k LETTE AGE eae Lee a ee Ba a ee Ea ARIAL, Ta TOTAL FOOD AND BEV. COST «ss i | ee “e316 14.3, 421s, (866 = 4444S He 42242 9-3 : YOTAL TOTAL COST OF GOODS -§=—S=§=s A847 == SoS) 0 TBO 3326 9269 S248 _ —s 55223. 403 = ORZE 3304 54259 3303 *@sFIXED & CNTRL EXP.** - RENT EXPENSE . RENT BUILDING 66C1G1C60 5195 €.2 “853 8.3 4850 7.6 52848 10.4 50468 10-1 $0457 Ce pe 66010200 1506- 3 = ENT-BAR CORPS 66010400 TOTAL RENT EXPENSE 5195 8.2 “853 8.3 4850 %7.8 51348 13.1 5646E Bde 50547 10-5 (08 ican a ee ES DAR ee ra ae DEPRECIATION EXPENSE ; A1870 INTERSTATE LANES 1020 pi 2 ine ————_$——— — wie RAMSEY NJ EE gs) 7 ; » REGION = 1 DISTRICT = 2 ' YENPIN 40 7 Be $s : | . | f i pe plage! PROFIT OR LOSS - STATEMENT PAGE NO. & OECEMBER 1972 aa “ . PROGRAM LPO80-C2 » . ; 2 us eS S85 iliac so CURRENT MONTH ACTIVITY . . ___- YEAR TO DATE ACTIVITY eres »- ACCOUNT DESCRIPTION ACCOUNT CURRENT CURRENT LAST YEAR CURRENT | : CURRENT LAST YEAR ee NO. ACTUAL _ BUDGET __- ACTUAL actuan/ «ss BUNGET ACTUAL P .~ DEPR-LEASEHOLO IMPRO66030100 370 6 330 a 350 6 2243 4 2244 4 2380 5 ) DEPR-AUTO PINSETTERS66039300 965 1-5 975 1-6 1332 2-2 6562 1.3 6630 1-3 2509 5 | DEPR-BOWL EQUIPMENT 66030500 320 5 321 5 312 5 2176 4 2184 4 2344 5 S DEPR-CARPETS 6603060C +4340 2 ~ 141 ae 1860 . 952 2 954 i 1224 3 , + DEPR-DRAPES 66030700 4 1005 2 65 _ DEPR-SIGNS 66¢ 36 800 1s 10 102 68 DEPR-OFFICE EQUIPMEN66030900 ##§ 100 S Se [3 Fe : Oe | eee 1 656 714 i DEPR-MISC. EQUIPMENT66031000 195 3 i146 2 216 3 _ 1326 5 1623 2 1145 2 DEPR VENDING 660312C0 30 =a. oe ens 1 . 312 y 238 306 i - DEPR REB EQUIP 66033000 25 ee at qs cilia Wee a “155 : Tors DEPRECIATION EXPENSE 2160 3-4 2675 35 2597 4.2 19528 3-0 14149 2-8 10910 2-3 a a RRO ak SSRN. BEE ; — TSR eo Ps ro ei ii Be, Se LICENSES & TAX EXPENSE gt RN RP MIE re SC nae AEE LE Ge ig A ATEN BN RAE ETE ee aoe LISCENSES BOWLING | 66040100 60 ROO ch get BE es Tee? a soso 8s O88 2 LICENSES-REST.AND 846604°2CC 65 a, a ee a ee ne i ~ 624 1 670 i ' - LECENSES-BILLIARDS 66640300 hs ; 30 x» ; STATE FRANCHISE TA 66042000 * 30 , * PROP. TAK-PERSONAL 66042100 . 16% 9 FS MG cas. ee Oe, 8 “ware BOG4 © oe 6 Sn oe | | een Bees |) | 4 Foran Cicenses © AN ENPENSE =” M4e0 B06 Ooh 88. 8 BO sti Gok Tener Fee Tt ieee Ute ea fi NIMEER yget ORE ES S CORO Fae Cede a ’ INSURANCE | : "BERE INSURANCE eeoscice §=——s«a 50 “Ses “RES > 80 1 1660 3 1600 3 eee 2 : TOTAL INSURANCE a eT Te A905 8 ia Pag ee ct a ne et ‘$--- 2 . ~ite —_ oa SP ee per 3 es Ape fala * 3 n 33 : 2 td fe eos "ees pat SELL ee a : : ; TOTAL FIXED EXPENSE 770) Lie? 7448 12-7 7659 12.4 71771 14-1 70055 14.0 65685 13.6 : PAYROLL EXPENSE = ey > i ee pi li ee > a eS vii ee’ Se ae me ee meagre ee ow LW A Se te ee: ale ag eae 8 ' PAYROLL~ADMIN. 67010101 2453 5.2 2375 5-9 2166 4.9 22025 5-9 247C0 7.0 22889 6-7 | PAYROLL-OPERATIONAL 67010102 1944 4e1 1981 4-9 1983 4 26 40% 19765 5-3 17537 5.0 16207 4.7 PAYROLL-MAINTENANCE 67010103 1019 2-1 1490 304 1347 320 15558 4.1 14560 41 11231 3-3 PAYROLL -PORTERS 67Cicic4s 2391 Sel 920 202 1392 361 19065 5-1 8736 24 10249 3-0 ; PAYROLL-PINCHASERS 67010105 1435 3.C 1150 2-8 1017 23 11152 2-9 11960 304 14220 4el : TOTAL PAYROLL ADJ H/0 ON 628 0a? | eo ts - TOTAL | 10070 21-7 78626 19.5 7905 17.9 88413 23.7 77493 22-06 74796 21-9 PAYROLL BARTENDER 67c 12201 1483 13.1 1250 10.9 1329 11.3 12348 1423 1161¢ 11.9 11247 12-6 — ae 7 A1871 - ENTERSTATE CANES oe ii acatas lant nae RAMSEY as , Exhibit DIA | | REGION = 2 DISTRICT = 25 EET ee _TENPIN 40 ey | 2 | R = * * PROFLT OR LOSS - STATEMENT PAGE NO. S OECENMBER 1972 , «PROGRAM «LPCRO-02. a a ee GURRENT MONTH ACTIVITY we? WEAR TO OATE ACTIVITY Wed Ped ACCOUNT DESCRIPTION ACCOUNT CURRENT CURRENT LAST YEAR CURRENT oo CURRENT LAST YEAR ; % NO. — ACTUAL BUDGET ACTUAL actual ssi ACTUAL PAYROLL WAITRESS 67010202 $20 4.5 387 3-3 3059 305 3992 403 2565 2.8 TOTAL pedis ager: = 8988 1770 15.5 1716 14.6 15407 1768 = 15002 16.3 13612 15.5 oT % aw iv AR i ae : Phiek) 2 5 » pe Stow 7 amas wc = re ‘3 5S in iied ake Bs a ea de Ps es ik LE Satons is miechigt eae we gid edie. an a vene § PAYROLL COOKS 67010362. 544 7.7 262 406 « 2152 402 $295 9.4 2305 402 PAYROLL WAITRESS 67010303 1164 18.9 1125 1661 1548 25.3 9161 17.9 10205 16.2 12324 8 §=—«._- 22-5 : TOTAL eee ee = 18.9 1669 2329 _ 1830 _ 3000 E1312 2201 aca 2746 14629 g 26.8 * “ex Giawere fe " Sig AS, eaete oo ees, SS - es. gap Jes ak - E nee ee ae oy” ge ee ee Sus os “ . Jig VISE Be “hag B sagt af Rage a oe eh 3 “Rew * =e a 2 “9: “it, a2 ty Sa _ pee Tae , east re wre Rae ioe EAs eae Re. Y £u . TOTAL PAYROLL EXPENSE =~ = 29282 20.7 ~ 18265 1903 “41451 16.5 115132 2266 += 107998 217 «103237 = 21 ' ds P ss . , ’ : , te: Bale dae Ba @rtu.o% - PAYROLL TAX EXPENSE A ET ITT FPS RL ee ct Rieti a TL ee. ee Sen ee : PAYROLL TAX-SOWLING . 6702¢100° s7 @ 2-7! FOO Bet: 7 SO 8 6. Bees “det 6970 Bed 5762 | PAYROLL TAX-84R 67020200 161 9 5190 8 | a OO 8 eee. 8 8 ? ! PAYROLL TAX-RESTAURANT67023300 Tass 1s0° 2> 108” 2 969 2° "139 2 1007 2 - TOTAL PAYROLL TAX EXPENSE ry) 1.3 1613 1.7 733 Le2 EEA 8 , 88 t9 7ese 1.6 © oun oom, 4> me Pes e-- i, ae om - + . me aT. Gt a at z “ = P >: , gee! EMPLOVEE BENEFITS ExP | See are Bete Bet at-F A 67030100 a “* ae eh nee S 2 “ 970 2 756 1 946 2 TOTAL INSURANCE - OTHER —: + 3 6 343 6 365 6 3855 —(i‘ 3556 T3006 . j i ae me ae Tl = FAIR ad TE Teen ack” mila “wie”: ie Sis oo Be an ae eee oF S ae: y ;. i PROFIT OR LOSS ~- STATEMENT PAGE NO. 6 OECEMBER 1972 . PROGRAM LPO8O-C2 >. - CURRENT MONTH ACTIVITY YEAR TO OATE ACTIVITY i . «2 > qe r ee * - oe -.° : ? TKS s. ES or.* fas SA 2 : « p ACCOUNT DESCRIPTION ACCOUNT CURRENT CURRENT GaST VEAR CURRENT CURRENT LAST YEAR : aie ad ot ACTUAL — BUDGET ; ACTUAL ACTUAL BUDGET _ ACTUAL , * :. > JANITORIAL CONTRAC 67060101 gh TS ES ae ST CER ee 828 oe TET oe ee BB me ’ 47060103 tin’ SRE SS See ESAT Bs Mees OY See PE eS - 67 ; i GARBAGE COLLECTION 67060105 240 . o - Blé i 160 a 55 : 960 ? 1200 2 : 950 : 2 : SIGN CONTRACTS 67063106 ns" palit EN ee ke a Se ake 5 ae anda cami ee, PEST CONTROL 6706C 107 36 | 15 16 107 1546 104 FIRE EXTINGUISHER 7660106 : 14 151 ' A. - TOTAL cae Re Ve 26 the lo ate A3t “eo 2 gaan. 3 er. a 3420 | fe Seats 1356 3 ~~ 1287 ot : ne +e Re Bra, BED Lat feat, ey re bmi o> pcb ate ‘ 3 : , Te Ms . fe a - - SMALL roots 67060200 e4 a ee OY —— ae ze ) > PINSETTER PARTS/LABDSTCEL30C 1335 201 462 ~ PINSETTER MAINT. S$UP670604°50 * -" GAME PARTS REPLACENNSTO60SOO >: Cane MAINT. SUPPL IESSTC Sees . LESURFACING 67C60700 * ~~ JAMTTORIAL EQUIPT/RERTCEDROC » > PIM MAINTENANCE 6706¢ 900 , @IELEARO EQUIPT REM 67061000 - ~ REFRIG.EQUIPT REM 67661100 © ». REST. EQUIPT. R & AM S7O612C0 ‘- BAR EQUIPT. REM 67661300 : MEAT-A/C R ER - 67061560 /: BUELOING R ER 67061600 _ EXTERIOR LANO ROR 67661700 FRAMEMASTER R& MH 67G6180C ,. BUS REPAIRS 6 MAINT.670619C0 VEMOING MACHINE R & 67062000 - $IGN REPAIRS & MAINT6TC62200 ee. oY ee - QFFICE EQUIPT. & & ME70625CC - 66 o4 40 - OTHER REPAIRS/MAINT.6706990C 12 ae 120 125 - TOTAL REPAIRS & MAINTENANCE 4647 -%e3 1422 2-4 2306 37 ne 25263 * FeO «44572 2.9 ana? 2-8 i ey OE ee as ae eee eer ees : adie sa Lai ere 0-0 7 ian OPERATING SUPPLIES ' : BOWLING SUPPLIES 67675190 1013 1.6 346 5 161 3 3115 a 3620 7 1892. 4 BILLIARO SUPPLIES 670679200 23 51 i 185 1 ie _ 236 | _ 170 BUS SUPPLIES 67C 76360 4 67 | 49 aa ees || 900 1 290 1 RESTAURANT SUPPLIES 67070400 615 1.3 385 6 694 lel 3597 7 4004 o 2989 . BAR SUPPLIES 67CT0S5CC 288 5 46 43 i 754 1 460 358 1 LIGHTING SUPPLIES 67672706 207 3 69 1 105 2 844 2 716 1 461 1 JANITORIAL SUPPLIES 6706768CC 346 5 144 2 242 4 1647 3 1496 2 1355 3 NURSERY SUPPLIES 67070990 19 153 196 87 A th am A A A CS TE TE A , CT ee ae ae Te a a, |e el A1873 _ ENTERSTATE LANES 1620 Exhibit DIA | RAMSEY NJ Seeeeenpee eee REGION = 2 DISTRICT = 25 fin A Serra ae mee a ’ TENPIN 4C6 —————— nn pa j : A a ai Seu £. _ PROFIT OR LOSS - STATEMENT PAGE NO. 7 DECEMBER 1972 PROGRAM LPCBO0-02 CURRENT MONTH ACTIVITY YEAR ro OATE ACTIVITY ACCOUNT DESCRIPTION ACCOUNT CURRENT CURRENT LAST YEAR CURRENT CURRENT LAST YEAR Se ee ee. _ su0GeT «ACTUAL ACTUAL BUDGET ACTUAL : OFFICE SUPPLIES 67¢7100¢ 24 “TE B®: “>> Bee i POSTAGE SUPPLIES 67GOT1LICC 50 1 ae 1 1 4 DUPLICATING SUPPLIES67C 71206 eS JS ny ge i ie i glee ayes PIN AMORTIZATION 67071306 410 oS ee é ee ee ed ~~~ 6248 —e.-~- ae he 272¢ 6 _ WENOING SUPPLIS @TO716CC | A > QOTHER SUPPLIES 67079900 1 i i . TOTAL OPERATING peptone - one ama d - - - - - ~ - , - - — op e a me . aa : - * J rg * oe — =! VV 7 Z ra ~* n af ln ‘>. => 9 . . j > ‘ ‘ Fy : . ‘ - . . ; :? * . il : gA f . , a ee . : ee St ‘. = ‘ _ “ i : ’ . . ~ SA om ’ > -. - .* — ~~ ; + —=s , a A % 7 > : ” a : -J . > . ae ¢ 4 oe Fee ty Pt: > _* b . : : 7 he en ave’ . f : > aw + @@e- **. pha Aye tk "ox wities | “-quecercrty WATER - a a = r3: OTHER . -— -" SVOTAL UTERATHES “COMMUNICATION EXPENSE 20 SF T € T BASE CHARGES 67100100 208—~—SC 3 > T&T =-TOLL CHARGE 67100200 193 3 8 “TOTAL COMMUNICATION EXPENSE + ae. “"~ 1866 4 4900 . 2083 , . ; a . . - ” : OUTSIDE SERVICES gO MA ee, ly ci Be eee Td My oe ee, TPRE . CASUAL SERVICE-SOW 67110200 133°. 2 1 | 2 ap CASUAL SERVICE-REB = = 67110200 ic * eae, peers 2» 184 fis: DETECTIVE SERVICES 67110400 18 1 254 1 LEGAL SERVICES 67110500 70 -e 95 2 158 840 1 466 1 PROP. TAX AOMIN. 67110600 _ 24 —s 24 7 250 | 248 250 1 TOTAL OUTSIDE SERVICES 691 =—s_ ell 12 2 260 4 3956 8 1272 3 2227 5 : SALES TAX EXPENSE i ; ar ‘ SALES TAx-PRO SHOP 67120100 226- 4 192- 3 846- 2 843- 2 SALES TAX-REB 67120200 | 47- 1 174 3 13- L17- - 7 ee, — 4° A1874 Exhibit DIA —— INTERSTATE LANES ° 1620 RAMSEY NJ reas - REGION = 1b OISTRICT = 25 a TENPIN 40 | : ) Gs; OMMPET GA LOSS © STATONENE OOES Me 8 OECEMBER 1972 _ ff: PROGRAM LPC8C-02 : VEAR TO DATE ACTIVITY ia anh an es CURRENT MONTH ACTIVITY ACCOUNT CURRENT CURRENT LAST YEAR CURREN CURRENT ‘LAST YEAR wo. ACTUAL «= = BUG ET “ACTUAL ACTUAL puoceT = ACTUAL a eee. en ee ae a — -_ = ACCOUNT DESCRIPTION : posite ~ 67120300 ri RT, ge ae eg ea _ | SALES TAX OTHER 67120660 89 f yt ee aes 2 SRO 4 917 2 oT EE gee? OCR 2 | g TOTAL SALES TAX EXPENSE 1 64- 9. eee acts ial : See iol Ss EN es oe a et - a ee ee ae = tots Sat t-- ~ - ADVERTISING & PROMOTN ge SHIRTS 67130401 COACH SHIRTS 67130402 . om pee Ba BP. —— ~ se + BERST LINE TROPHIES 67130501 - JUNIOR TROPHIES ", 67130503 | ; TOTAL al il a ae ee Minette: = TOTAL 7 = . = a 1 sa i oe > BILLIARDS PROMOTIO 671310013 Sas ; Te aD ed slo vf. #85 ; a ea, - BAR PROMOTION -~ Seertits tea ay aa Rae 1 Ree ope i . LOCAL TOURN EXPENS 67131401 . eR ao : 32 eet fae? ee 43 | NEWSPAPER AOVERTSI 67131501 25 aye 2 eds 3 fa _ 7-3 @3A31503 a - e Te Te a Fade: ert 67131504 Sn fo Soa gk ties pie fa ee Be ef Lt age: Ena coach, Mee MAGAZINE AOVERTISI 67131505 a SEER ahi eee eee eee O88 Ts pe ay: (ee, ees BSD . 2 a ) 2775 5 2086 . 4 °&«174 + . BOWLING PROMOTION 67231508 1453 2-3 198 3 766 1-3 TOTAL 1478 2-3 196 3 1023 1.7 3336 7. 2056 . as el ted wets ae Tt dena rts qapee eee - ; . » + - j -- - - *- . Geeiwes oo +0 oti ae ~~ 9 iGs ts ol Cae Sc etitahdt AT Sie ~~ *2ee o ome 4 — . ede et ~ - : + a i — -" CASH SHORT/OVER BO 67140150 205 : CASH SHORT/OVER RE 67140206 37 132 3 1 ROBBERY LOSSES 6714040C ; 3 FREIGHT 67140600 83 1 12 54 129 276 2 4- ; 97- 16- CASH RPTS OUT OF 8 6714270C 11s- 346 _— w NN = me re NR ee wa ee eae -e—- oe 67146800 ; : 6714490 7 . | | x Ms 2 ee 253 A1875 INTERSTATE LANES 1020 Exhibit DIA RAMSEY NJ PE Ps: REGION = 1 OISTRICT = 25 - - . — — TENPIN 46 | PROFIT OR LOSS - STATEMENT PAGE NOW 9 OECEMBER 1972 PROGRAM LPO8C-02 Mere es > | (CURRENT MONTH ACTIVITY ee : : YEAR TO DATE ACTIVLTY ACCOUNT DESCRIPTION ACCOUNT CURRENT CURRENT LAST YEAR CURRENT CURRENT Last YEAR NO. ACTUAL BUDGET ACTUAL ACTUAL BUDGET ACTUAL | PURCHASE DISCOUNTS 67141060 26- 15- * 90- - 92- ' INVOICES IN TRANSI 67141266 | 1600- 2.5 1600- 2-6 . J NSF CHECKS 67141300 §- 5 8 C/D OUT OF BALANCE 6714190¢ 23- 1 ; ms wtp aR oe - «8 MISC EXPENSE 67149900 4- 6 298 227- _ ENVALTO ACCOUNT P& 67149996 117 2 24 117 > TOTAL OTHER OPERATING “2326 201 so “ts oe 2-2 2075 4 120 1287 3 TOTAL CONTROLLABLE EXPENSE 26669 41-8 — 1890C 32.3 19667 31.7 212522 41-7 186426 37-4 174810 36.2 ToT FIXED & CNTRL EXP “7 ""ga930 53.6 26348 4521 © 27326 4401 284293 55.8 256481 S1-4 240695 49.8 TOTAL GROSS MARGIN FOR COMP 17758 27-9 25328 $303 «= 23352. 3767 170434 33-4 186109 37.3 188592 39.0 pte oii A ON i i i a a a sige este chat 8 dag Te ee a 1 { @OMISC INCOME & EXP.8* — STE oe eee SE TT Ls hee rorress —c ALLOC. HOME OFFICE EXP Fig hg fhe a Ae peed | Pee - @LLOC OF HO EXP . 77610100 4.2 2693 27976 5.5 28004 5.6 24024 5.0 FOTAL ALLOC. KOME OFFICE EXP hee? 2693 27976 5.5 28004 5.6 24624 5.0 oll, — - FOAL TOT RISC INCOME & EXP 2690. fe 2693 456 772310 '~ B67 BTOTS «Se (88008 5.6 24024 5.0 & oc Se ee i ay Set fat RES ES bm, ¢ As : — + —, —_ 7 antennas ie ele ol ae ad asia Se Sa oe oe cmekactesenl. ‘ale nv Al is ah ™ : : eeprov FEO & ST TAX** 2 hcl ke Ailes Ee Sa eS a - INTEREST EXPENSE “= CT Te | ; INTEREST EXPENSE 81026100 z 10 86 y TOTAL INTEREST EXPENSE Paes Xp os Hey et ic te Ba 86 PROV FOR ST INCOME TAX - PROV STATE INC TAX 82016100 69 1 1048 1-7 2222 ry 1249 3 TOTAL PROV FOR ST INCOME TAX 69 L 1048 1.7 2222 4 1249 3 - prov FOR FED INCOME TX FED INCOME TAX 83010100 1733 2.7 2116 3.6 8566 13.8 16958 3.3 220C0 4.4 20666 4.3 A1876 INTERSTATE LANES © 1020 Exhibit DIA RAMSEY NJ Sa aan : | ae Aa a = eS .) a eee ’ REGION = 1 DISTRICT = 25 TENPIN 4C j ee oa PROFIT OR LOSS - STATEMENT PAGE NO- 10 OECEMBER 1972 PROGRAM LPCSC-02 : . nS 2 ae ea CURRENT MONTH ACTIVITY _—o-. | TO DATE ACTIVITY ’ gCCOUNT DESCRIPTION ACCOUNT CURRENT CURRENT LAST YEAR CURRENT CURRENT LAST YEAR MO. ACTUAL BUDGET ACTUAL | ac TUAL ‘BUDGET ACTUAL —_ TOTAL PROV FOR FED INCOME TX 1733. 2.7 2116 3.6 8566 13.8 16958 3-3 22000 het 20666 4.3 \ . OFS Goes ee. ne : si “95 33 He Ee Toga > A ae Ree ‘ 4 : | TOT PROV FEO & ST eo 0UlU 2116 3.6 9614 15.5 ,be380 3.8 22cc0 44 22001 4.5 TOTAL PROFIT O 13266 20.8 20519 35.1 11427 18.4 a 24.2 136105 27-3 142567 29-5 ewe Owes; API Rie, eee high Wa eT. - oe. 2 pag —™ —. a re ae a a At” alin ee tag i a | fede So es eos. 3 ati fee os ae ae tel EPA os co : ' eeeeeee, INEAGES*E see raeaneainanairet ies ” = ee er ee ae SE oe + Te SS aoe eS ‘TEN PIN LINEAGE % TEN PIN AO LGE LINES.99CICICC 32521 53.6 29390 55.0 274478 56.6 245900 53-5 . - ADULT OPEN 90010200 12333 20.3 13500 25-3 ~——"e TT 125909 «© «2569 =: 124100 27.0 a aa ADULT SPECIAL 900102061 535 9 300 - seh bee eee BUSS & 3126 7 ; feat FS ADULT TOURNAMENT ~~ 90610292 “s : a . os! OTB 1 600 1 | ee TEN PIN JR LGE LINES.90019350 4439 Te3 ~27C0 5.1 poe ——~31745 665 18650 &el a JUNIOR OPEN 900104C0 $334 6.8 55C0 10.3 43032 8.9 49500 10.8 ? 9 * JUNIOR SPECIAL 90010401 534 4 200 4 6211 4.3 3480 8 - JUNIOR TOURNAMENT 90016402 297 “~$ “8500 208 "Ere ee, 082 - 2 14900 «340 (oe ee ee eres > $CHOOLS 90010403 ti areB SF Bee ** 6 "3: SS ee 2134 . 600 1 haf _YVOTAL TEN PIN LINEAGE @ 55993 9204 "$3900 20000 - == Jere ari FOOTE 10009 459950 100-0 ee oe _ TOTAL PAID LINEAGE $5993 204 53300 100-0 ——————— lll CU 100.C d eunnenn cunts 00. C880 Oe M. Oe Ee BO ce cae 6 - AVERAGE PRICE GROSS REV. 1.14 1.19 1-05 1.08 FREE LINEAGE TEN PIN eT ee oa 5 2 ht to ers Ne SS ee eee 2 TEN PIN FREE EMPLOYEESOLLOLOO 19¢ 3 1645 3 | : \ TEN PIN FREE PROM. 902102C0 99 2 oy tat 2 ibs =~ yeese, Oe 6 ) } igh TEN PIN FREE INSTR. 9CLIC360 : 87 oe — TEN PIN FREE WARM UP 9C1LIC4CC 1456 24 11294 2-3 TEN PAN FREE RM 9C110566 29 ‘ TEN PIN FREE WALK OUTOSLIS6OC 51 1 191 : TEN PIN FREE BREAKAGESOLLOTCO 1225 2-0 19316- 420 TOTAL TEN PIN FREE LINEAGE 3021 5.° — 30T6~ 6 TOTAL FREE LINEAGE 3021 5.0 36 76- 6 ; eee Gee INTERSTATE LANES RAMSEY Lt REGION = 12 OISTRICT = 25 TENPIN 4C - PROFIT OR LOSS - STATEMENT PAGE NO. CURRENT MONTH ACTIVITY 1l OECEMBER 1972 t =- YEAR TO OATE ACTIVITY TOTAL LINEAGE ACCOUNT SESCREPT TSN INVALID LINEAGE TOTAL ie 6S eee —_— 99909996 “ACCOUNT CURRENT CURRENT nC. acTuat BUDGET 1615 2.7 ~~ VNSETOS. Begs 1615 2.7 (pee Se -*+.3 - . ‘ eee — en. tat te 2 ee oh ee ~ ol af fe a ee ea ee « ~ .+.ifera —, 9° —-- - - : e ° 5° ? . = 7 - — ": . " ‘ = st. ?-2 —— . ed - -— — ee et - oe «memo —_——-. -——— = . ——~ -- - 7 . 763 — > 3] | en oe 547 : co ™~ % 7 o” | 4 ‘ : 2 : ' sz | | 196i 1962 9631964 GS 9861967 BED «ID «IGT! = sg72 2° _ eos | ———__———————— —— ~ ne aooEEOEOEOEOEOEOEOEOEEEEeEEEEeeeeeeeeeeeeeeeeeeeee,.,.,—LOeeS Sti‘ ———— BRUNSWICK CORPORATION -- NET TRANSFERS* OF PINSETTERS TO BCO BRUNSWICK CORPORATION -- : | FOR OPERATION, 1965-1972 | (ao THE u-S. NUMBER OF BOWLING CENTERS BCO COMMENCED OPERATING AND NUMBER DISPOSED OF BY SALE, | Year Units | LEASE OR DEACTIVATION BY BCO, 1965-1972 - “4 1965 ae 3,639 . jo THE oniTed SrATe | | 1966 1,320 | ; - Commenced Disposed Net Operated 1967 ca 50 Operating of Transfers Year-End 1968 | -4 1965 12h 0 124 124 1969 72 1966 50 13 37 161 1970 140 1967 15 | 14 1 162 1971 -64 1968 9 a “i 163 1972 88 | 1969 10 8 2 165 | ; 4 169 * Total transfers less deactivations, aa v wf | 1971 h- ! 7 -3 166 sales and leases, casualty losses, ; o 1 2 1 and other removals. i eet A ee, | | | Total 222 54 xe aa => 4 . Co ~~ ; a > © # 1 Destroyed by fire. i ur oOo BRUNSWICK CORPORATION -- BOWLING CENTER OPERATIONS (DOMESTIC) -- CONSOLIDATED STATEMENT OF CASH FLOW 7 FROM OPERATIONS, 1965-1972 12 Months Ended December 31 1965 ($2,681,000) 1966 -’ : pen (177,000) 1967 —_- . . 543 ,000 1968 | 1,919,000 1969 | | 2,927,000 1970 -_ | 4,589,000 1971 | 6,942,000 1972 8,471,000 * Figures in ( ) are negative. va tnd 4/1 . 60 34444x3 _ 288ly A1883 Exhibit DI] _ — : — bearUawtZUN Bhsisavae 44 - —— 00) - } —— - = 7 ; . , ; , wi, tia | BRUNSWICK CORPORATION -- } : : BOWLING CENTER OPERATIONS (DOMESTIC) -- . NUMBER AND PERCENTAGE OF CENTERS WITH POSITIVE OR NEGATIVE CASH FLOWS FROM OPERATIONS | Cras 1965-1972 | ¥ :1965__ 1966 _ __1967 a 1969_ 1970 1971 __1972, No. _% No. _% Mo. _% No. _% NO. 2h m2: Ma ak. Me dk Positive | one | Cash | : | : Flow 35 (28.2) 87 ( 56) 102 (- 63) 109 (66.8) 127 (76.9) 143 (84.6) 154 (¢ 93) 15% (91.7) Negative 3 | | : : Cash | ? | | ' - Flow a9 (71.8) 74 ( 46) 60 ¢ 37) 54 (33.2) 38 (23.1) 26 (15.4) a ( 7) 1&6 (8.3) #Total 124 (100) 161 (100) 162 (100) 163 (100) 165 (100) 169. (100) 166 (100) 168 (1 ’ a. : . <> : *® Centers in operation at year end A1884 " Exhibit D13 a : F, --—_—_e— - dew weak Basidvad 35 Pn a oa a il nile ee a | a a oe: ee ne ee | a oe $320,736 100.0 $030,530 100.0 178,790 100.0 $132,118 100.0 $100,997 100.0 976,986 100.0 =O, Bag. 100.8 = 4A, BEO 100.0 oe ee eS ee ee ue 8 6.5 ee facounte Pilipevess — ee ee oe ee eee ee ee a oe a re SS 5,778 100.0 8,907 160.0 3,699 8-8 2955 100.0 2,260 100.0 1,919 169.0. 1,580 200.8 1,258 109.0 a wa a 08S en 108 a5 ~ ar o 38 “ — ee BRUNSWICK CORPORATION BRUNSWICK EXHIBIT 16A ESTIMATED ORIGINAL AVERAGE COST TO BRUNSWICK OF LANES AND. PINSETTERS TRANSFERRED TO BCO CENTERS IN 1965 IN THE UNITED STATES Lane = | Pinsetter Hrect Costs: Manufacturing Costs.,. $ 1,630 $ 2,860 Installation Costs 7 745 a 276 $3,136 ‘otal Direct Costs - SS 2 ' ee ee eC m ~ — ~ a ~ tad o ~ oa Db S88LV BRUNSWICK CORPORATION -- ALLOCATION TO BOWLING CENTER OPERATIONS (U.S.) OF A SHARE OF BRUNSWICK'S CASH NEEDS, 1965-1975, FOR PAYMENTS ON LOANS OB- TAINED PRIOR TO 1965 RELATED TO DOMESTIC BOWLING EQUIPMENT RECEIVABLES ee Balance Owed at December 31, 1964 ' 14? | ° on Loans Related to Domestic i Bowling Receivables Pa » iJ $ 243,535,035 a® 7 a, 2 ‘ Domestic Bowling Equipment “a Receivables at December 31, 1964 $ 364,178,884 Ratio of Loans to Receivables 66.9% Unpaid Principal Balances of Receivables on Equipment Taken Over for Operation in | 1965 by BCO ; 3 36 523 991 Portion of Loans Allocated to All Equipment mh (3,615 Lanes) Taken Over for Operation by er BCO in 1965 (66.9% of $ 36,523,991) $24,435,000 Annual Payments, 1965-1970, and Cash Need, 1971-1975, Per Lane 3 Based on 3,615 Lanes, : and Payout of $24,435,000 Plus Interest Year Principal Interest Total 1965 $ 856 $ 390 $ 1,246 1966 1,435 323 , 1,758 1967 678 249 927 1968 1,168 184 1,352 1969 443 139 582 1970 443 114 $57 1971 393 89 482 1972 459 62 521 1973 428 37 . 465 1974 388 14 402. 1975 — a | — | Total $ 6,741 . $_1,602 $ 8,343 i. | ' ow: tliels | O20 34944%3 988LV oo ae ANNUAL REPORT 1965 OFC 349b4X3 L88lV BOARD OF DIRECTORS L. A. APPLEY B. E. BENSINGER R. F. BENSINGER A. R. CAHILL J. L. HANIGAN Ww. M. HEYMANN 8. P. JACOBSON E. C. KIEKHAEFER 8. E. MEYERS J. T. RETTALIATA J. G. SEVCIK E. A. STEPHAN R. E. STRAUS L. H. SWANLUND H. J. SZOLD CORPORATE OFFICERS B. E. BENSINGER J. L. HANIGAN 8. P. JACOBSON A. R. CAHILL c. BE. ERB E. C. KIEKHAEFER E. VANNEMAN, JR. President, American Management Association, New York Chairman of the Board and Chief Executive Officer Retired Chairman of the Board Vice President, Finance President Director, The First National Bank of Chicago Senior Vice President Vice President Retired Executive Vice President President, Illinois Institute of Technology, Chicago President, Burton-Dizie Corporation, Chicago Partner, Mayer, Friedlich, Spiess, Tierney, Brown & Platt, Chicago, General Counsel Chairman of the Board of Directors, American National Bank and.Trust Company of Chicago Retired Vice President, Finance Partner, Lehman Brothers, New York Chairman of the Board and Chief Executive Officer President Senior Vice President Vice President, Finance Vice President Vice President Vice President Vice President Vice President Vice President Treasurer Controller Secretary Assisiani |ice President Assistant Vice President O€G 34944%3 Bssly DIVISIONS AND SUBSIDIARIES BOWLING DIVISION—Chicago. Iilinois BOWLING CENTER OPERATIONS DIVISION — Chicago. lilinois Operating 134 bowling centers in the United States and Canede KIEKHAEFER CORPORATION—Fond du Lac. Wisconsin INTERNATIONAL MERCURY : | OUTBOAROS LTO.—Fond du Lac, Wisconsin | KIEKHAEFER MEACURY of } CANADA LIMITED—Toronto, Canada KIEKHAEFER MERCURY of AUSTRALIA PTY. LIMITED—Sydney, Australie MERCURY OUTBOARDS INTERNATIONAL PTY. LIMITEO—Melbourne, Australia MACGREGOR/BRUNSWICK DIVISION (formerly SPORTS DIVISION) —Evendale (Cincinnati), Ohio BRUNSWICK-ROYAL. INC.—Ponce, Puerto Rico OWENS YACHT DIVISION—Baltimore. Maryland ZEBCO DIVISION—Tulsa, Oklahoma ee a, ol HIGHLIGHTS . 314,876,000" $302.21 7,000° | Net sales and revenues....------ 000°" "" HEALTH AND SCIENCE | niet earnings (0G8)..-sccceececseesceees (76,832,000) 002,000 HEALTH and SCIENCE DIVISION—St. Louis, Missouri so: uipment, includ- ALOE INTERNATIONAL. INC.—St. Louis, Missouri Additions to plant and o¢ of * sriccwick CABORATORIS. ine St Lut, Mimow ng in 1008 eat inventory v0 Brest > St i 2 : : ROEHR CHEMICALS. INC.—Long Island City. New York bowling equipment inventory 1 31,517,000 11,873.000 ROEHA F PRODUCTS } COMPANY. INC. — DeLand . Florida wick-operated centers. ...-- 5-5-5505" weesene 4 10.324,000 H - l» anal . : ‘ . HEALTH and SCIENCE DIVISION of BRUNSWICK Depreciation, amortisation, etc.....------ CORPORATION (U.K.) LIMITED (formerly EDUCATION Net earnings (loss)....-----ssreerrnn = - ay SCHOOL EQUIPMENT DIVISION—Kalemazoo, Michigan Backs VARED. ...-ccvccecccersoverscreee® ° #260,902,000 968. DEFENSE PRODUCTS DIVISION—Muskegon, Michigan Working capital senegensesonssenecetes 62,820,000 INDUSTRIAL PRODUCTS DIVISION—Muskegon. Michigan Plant and equipment, net.....---205000 76,158,000 Oeu. ; Total annte......eceeceseereees saiadan 612,148,000 650,908,000 | OTHER | het eh cegialaglals ait 82.860,000 48.977.000 ' A. Mot. REAL ESTATE CORPORATION—Chicago, IIlinows pany ane Bd dncceusioil 203,067,000 266,839,000 BRUNSWICK INTERNATIONAL FINANCE A. G.—Zurich, Switzerland Long-term .. «DOUG... --- sss se errr 131,581,000 207,641,000 BRUNSWICK PROPERTIES. INC.—Chicago. Illinois Shareholders’ equity..------- sss 18,179,931 COMMUNITY RESOURCES DIVISION—Chicago. IHlinois Number of shares outetanding......--- +>: 18,288,404 pee NEW PRODUCTS DIVISION—Chicago, Illinois - ef Sc cwsanosoukedh 92.362 94.622 INTERNATIONAL | 16,780 — BRUNSBOWL PTY. LIMITED—Sydney. N. S. W., Australia BRUNSWICK A G.—Zurich. Switrerjand BRUNSWICK BELGIUM. S. A — Brussels, Belgium . “BRUNSWICK” BOWLING GmbH —Berlin. West Germany BRUNSWICK of CANADA LIMITED —Cooksville, Ontario. Canede BRUNSWICK CORPORATION (U.K) LIMITED—London, Engiend BRUNSWICK DANSK-AMERIKANSK A/S— Copenhagen. Denmark BRUNSWICK FAR EAST INCORPORATED—Tokyo, Japan BRUNSWICK FRANCE (S.a.r.1.)—Paris, France BRUNSWICK GmbH —Frenkfurt/Main, West Germany BRUNSWICK GESELLSCHAFT m.b.H.—Vienna, Auswis - BRUNSWICK INTERNATIONAL. C. A—Carecas, Venezusia BRUNSWICK INTERNATIONAL GmbH —Duesseidor!. West Germany | BRUNSWICK of IRELAND LIMITED—Dubiin, ireland i BRUNSWICK ISRAEL LIMITED —Te! Aviv, isree! BRUNSWICK ITALIANA S.pA — Rome. italy BRUNSWICK de MEXICO. S. A de C. V.—Mexico. O.F.. Mexico BRUNSWICK NEDERLAND N.V.—Breda. The Netherlands BRUNSWICK de! PERU SA —Lima. Peru BRUNSWICK’S SVENSKA A/B —Stockholm. Sweden NIPPON BRUNSWICK K.K.—Tokyo, Jepen NORSK BRUNSWICK A/S—Osto. Norway ? OY BRUNSWICK FINLANO—Heisingi, Finiend TOWN & COUNTRY BOWLING CENTRES LIMITED—London. England Does not include repossessed bowling equipment sles of e $16,693,000 in 1965 end #19.636,000 in 1964. O€G 2'9b4XZ 688 LV ‘ Oca 34944%S O68LV | | TO THE SHAREHOLDERS: By far the most important event that occurred in 1965 was the decision to adjust inventory values and reserves for possible losses on receivables, as announced in a special letter to shareholders on December 14, 1965. This action resulted in a net loss for the year of $76,932,000 after relate’ aocome tax credits. The operating results before the very large year-end adjustments are not separately stated. However, operating results, excluding year-end adjustments, would have been almost the same as in 1964, or essentially a breakeven. These adjustments were made almost entirely within the bowling segment of your Company’s business. In the United States and Canada, the lack of any significant demand in the market for bowling capite! goods, both new and used, became evident late in 1965 after the normal selling season. Also, import restrictions and tightening of credit, coupled with a decline of bowler interest in some areas, made it clear that the market abroad is not likely to expand as the domestic market did in the late Fifties and early Sixties. Your management does not relish reporting loss at any time, particularly one of this magnitude. It should be recognized, however, that the steps taken in view of the situation as it now exists, together with the continuing of vigorous collection efforts, will relieve future operations from burdens of the past. t As a consequence of the year-end adjustments, the Company filed a refund claim of $18,225,000 for Federal income taxes paid in prior years. When received, these funds will be applied to debt reduction. Also, a new loan agreement was entered into with the banks and insurance companies which combined most of the domestic long-term debt under a single loan agreement amounting to $190,000,000 payable over the next ten years. Looking to the future, three additional actions taken in 1965 should enhance the long-term prospects of the Company: ® The first was the establishment of a corporate Technical and New Business Division. This division consists of a research team; a Product Development and Engineering organization, which has already contributed some significant new products to the operating divisions; and a New Products group, which will develop marketing and manufacturing capabilities for new products. Currently, the New Products unit is deeply involved in the pilot production and‘marketing of Brunsmet, Brunswick’s new metallic filament. ® The second significant development was the formation of the @ of0 34944%3 L68lV 14 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS / December 31, 1965 NOTE 1—PRINCIPLES OF CONSOLIDATION: The consolidat- ed financial statements include the accounts of the Com- pany and all its domestic and foreign subsidiaries. NOTE 2—LOSSES FROM BOWLING OPERATIONS: As a result of the decline in the world-wide market for bowling equipment during 1965. the Company and its subsidiaries made appropriate adjustments to recognize the reduced value of equipment repossessed in 1965 and to give effect to possible future repossessions of bowling equipment at reduced values. The Company and its subsidiaries also wrote down bowling equipment inventories at year-end and provided for estimated losses on the termination of certain bowling operations throughout the world. Sub- stantially all of the net loss for 1965 resulted from these developments. NOTE 3—INCOME TAXES: The Company and its subsidiaries have followed, for book purposes. the practice of recording income from sales financed by long-term installment notes receivable when customers take delivery of bowling lanes. automatic pinsetters and related products. This practice, which is known as the “accrual basis.” is the income- reporting method followed by most companies. For income tax purposes. the Company and its subsidiaries follow the “installment basis” of reporting income from such sales. Income taxes applicable to installment sales have been provided on the basis of book income at the tax rate in effect in the year of sale. These taxes are payable over the terms of installment notes receivable as payments are received from customers. Accordingly. deferred income taxes of $28,330,000 at December 31. 1965 (after reflecting the income tax effect of the substantial bowling losses charged against 1965 operations) will not be payabie until future years. The loss in 1965 also resulted in carry- back refund claims af $1 8.225.000 for Federal income taxes paid in prior years. Because of reductions in the United States Federal income tax rates, the provision (credits) for income taxes includes credits of $2,300,000 in 1965, and $1,100,000 in 1964, for the difference between income taxes at the current rate and the amount of deferred income taxes previously provided at higher rates. NOTE 4—INSTALLMENT NOTES: Instaliment notes receiv- able are stated at principal balances after deducting un- earned interest of $61.559.000 in 1965, and $80,273,000 in 1964: such interest will not be realized to the extent that the instaliment notes are not coflected. NOTE 6—REPOSSESSED BOWUNG EQUIPMENT: Net sales in the accompanying consolidated statements of earnings do not include repossessed bowling equipment sales of $15,693,000 in 1965, and $19,636,000 in 1964. When equipment is _ the difference between the unpaid principal balance of the related instaliment note receivable and the inventory carrying value is deducted from the reserve for possible losses on receivables. When the equipment is subsequently resold, the excess of the sales price over the inventory value is added to the reserve for possible losses on receivables. While the quantities of repossessed bowling equipment included in finished goods inventories were greater at December 31. 1965. such equipment was carried at $3.527.000 compared with $1 7,685,000 at December 31. 1964, based on estimated realizable values. after reflecting the 1965 adjustments (see Note 2). NOTE 6—RESERVES FOR POSSIBLE LOSSES ON RECEIVABLES: During 1965. the provision for possible losses on receiv- ables totaled $111,.362,000 and repossessions and other charges against the reserves. less recoveries, were $71.265.000. NOTE 7—NOTES PAYASLE—SANK. INSURANCE COMPANIES. ETC. (CANADIAN SUBSIDIARY)—SECURED: in March, 1966. a Canadian subsidiary entered into an amended loan agreement to reduce its bank and insurance company notes payable from $18,850,000 to $11,000,000 by applying 4 related collateral cash deposit. Under the amended agree- ment the notes payable are secured vy 2 pledge of all Canadian instaliment notes receivable (with principal bal- ances of $32,338,000 at December 31. 1965). and the col- lections thereon, after certain expenses 8s defined. are restricted to the payment of interest and principal on the notes payable. The amended agreement provides for mini- mum principal payments of $2,000,000 annually through 1969 and $1,000,000 thereafter through 1972. The notes payable have been guaranteed by the parent company. NOTE 8—LONG-TERM NOTES PAYABLE—UNSECURED: In December, 1965, the Company repaid $10,000,000 of $100.000,000 borrowed from a group of banks under a revolving credit agreement. As @ consequence of the sdjustments made by the Company and its subsidiaries in 1965 (see Note 2), it became necessary to renegotiate certain of the terms and conditions of the loan agreements covering the Company's long-term indebtedness to banks and insurance compa- nies. As a result of these negotiations, a new loan agree- ment was entered into in March, 1966. which, by its terms. superseded all prior agreements with the banks and insurance companies and combined the $90,000,000 bal- ance of bank loans with $100,000,000 of insurance company loans into one loan agreement. This agreement provides for 5%% promissory notes with principal payments ranging from $24,000,000 to $1 4,000,000 per year through 1975. Principal amounts of $20,000,000 are payable on December 15. 1966; in addition, the refund of Federal income taxes ($18,226.000—see Note 3) when received will be payable on the notes. Other unsecured notes payable of $1 ,905,000 are out- standing. Interest rates on these notes range from 4% to 6%% with final maturities in 1981. rate being applicable to certain foreign notes), and annual principal payments through 1988 range from $137,000 to $1,770,000. MOTE 10—DEBENTURES: The Compeny has outstanding $25.623,000 of 4%% convertible subordinated debentures. with annual sinking fund requirements of $1,500,000 beginning in 1971. A subsidiary has issued $5.000.000 of 5%% collateral trust debentures, with annual sinking fund requirements of $600,000 beginning in 1969; substan- tially all the asse’ of this subsidiary have been pledged to secure these debentures. NOTE 11—DIVIDEND AND OTHER RESTRICTIONS: The March, 1966. loan agreement with banks and insurance companies and agreements relating to the C.1.T. Corpora- debentures contain dividend, working capital, foreign in- el O€G 349443 Z268LV vestment, net worth and various other restrictions. Cash dividends may be paid only to the extent of 25% of con- solidated net income of the Company and its domestic subsidiaries, as defined, in any fiscal year, and only if various ratio, working capital and debt reduction tests have been met. As of December 31, 1965. no consolidated earnings retained in the business were available for pay- ment of cash dividends or for acquisitions of capital stock. NOTE 12—DEFERRED COMPENSATION: Under various em- ployee bonus plans, addiiional compensation of officers and employees earned in 1962 and prior years ts payable in future years in aggregate annual amounts ranging from $224,000 to $59,000. No bonus was earned under these plans in 1965. NOTE 13—COMMON STOCK: In 1965. options for 106.000 shares were granted. under a stock option plan, at not less than the highest market price on the dates of grant. and options for 65.719 shares were canceled or expired. Options for 4.000 shares were exercised during the year. At December 31, 1965. 432.072 shares of common stock were reserved for issuance to officers and key employees under options outstanding at prices ranging from $3.30 to $57.75 per share, of which options for 227.209 shares were exercisable. All options expire within ten years OF less from date of grant. The Company's stock option plans have now expired and no further options may be granted thereunder. Under the employees’ stock purchase plan (which ex- cludes key management employees). 124.157 shares of common stock are reserved for issuance to eligible em- ployees. in 1965, the Company granted rights and employ- ees purchased 88.171 shares at 85% of market at dates of grant. The Company issued 16,302 additional shares of com- mon stock in 1965 in connection with the acquisitions of Biological Research, inc. in 1961 and Ortho Chemical Corporation in 1962. The acquisition agreement for Ortho Chemical Corporation provides that additional shares of common stock may be issued in the years 1966-1968, depending on operating results of the successor company. At December 31. 1965. 502.427 shares of common stock were reserved for the conversion of convertible sub- ordinated debentures at $50.66 per share. NOTE 14—LEGAL MATTERS: A number of lawsuits and claims are pending against the Company and its subsidi- aries. Based upon the opinions of counsel as to the ultimate disposition of these matters, management believes that the liability. if any, will not be material. The Federal Trade Commission has requested certain information concerning the Company's operation of re- possessed bowling establishments throughout the coun- try. In the opinion of counsel, these operations are lawful and not in contravention of any Federal law or regulation. NOTE 16—LONG-TERM LEASES: As of December 31, 1965, the Company and its subsidiaries had entered into various lease agreements with terms of more than three years, which expire on various dates to 1987. Aggregate rentals are approximately $3.400.000 annually. These leases are for space in general offices, branches, factories, ware- houses. service centers and certain Brunswick-operated bowling centers. NOTE 16—UNFUNDED PAST-SERVICE COSTS: The Company and its subsidiaries maintain pension and retirement plans, which provide for retirement benefits based on service, for substantially all salaried and hourly employees. The Com- pany is providing for the current and past-service Costs of these plans based upon actuarial determinations. The unfunded past-service costs under these plans were approximately $11,000,000 at December 31. 1965. 7 eae CREDIT AND COLLECTION were rescheduled to reflect a $6,000,000 reduction of debt, which amount was paid in March, 1966. The new domestic loan agreement contains covenants that are more restrictive than those in the former agreements. For this reason, and because it is desirable for the Company to reduce debt as rapidly as possible, it is not likely that any dividends will be paid for some time. In spite of the severity of the loss resulting from the year-end adjustments, the action taken should produce certain benefits for the Company. For example, a Federal income tax carryback refund claim of $18,225,000 arising from the 1965 loss will improve the Company's financial position through cash recovery and earlier reduction of debt. Furthermore, additional net tax credits of $33,425,000 will have the effect of reducing future tax payments which the Company otherwise would have been required to make. However, these latter credits will have no effect on the income statements of the Company in the future because they have been reflected in the 1965 financial statements as a reduction in deferred income taxes payable. The write-down of bowling equipment inventories and the increase in reserves should not be interpreted as any lessening of interest in the bowling industry. To the contrary, diligent efforts will continue to be made to sell new and used equipment on a sound financial basis for operation in promising locations and to promote the sport of bowling. Installment notes receivable principal balances were $319,050,000 at December 31, 1965, down $121,634,000 from $440,684,000 at December 31, 1964. Accounts receivable were $60,532,000 at December 31, 1965, compared with $56,745,000 at the prior year-end, an increase aa | TO THE SHAREHOLDERS AND DIRECTORS OF BRUNSWICK CORPORATION: ACCOUNTANTS’ OPINION of $3,787,000. Brunswick enjoys a substantial cash flow from collections on bowling | We have examined the consolidated balance sheet of BRUNSWICK CORPORATION F ‘ . “In 1966, tl Hecti } (a Delaware corporation) AND SUBSIDIARIES as of December 31, 1965, and the related consolidated statements of earnings. capital surplus and earnings retained covered the following uses and totaled........ ceeceesee ... -$87,119,000 | in the business for the year then ended. Our examination was made in accordance - with generally accepted auditing standards, and accorpingly included such tests of the accounting records and such other auditing procedures as we considered necessary Payments on debt in 1965— in the circumstances. We had made @ similar examination for the preceding year. C.L.T. borrowings........----+-- $20,935,000 In Our opinion, the accompanying consolidated balance sheet and consolidated ' Bank borrowings . ae eee 10 ,000,000 statements of earnings. capital surplus and earnings retained in the business present fairly the financial position of Brunswick Corporation and Subsidiaries as of December Mortgages and other..........--- 5,160,000 31. 1965, and the results of their operations for the year then ended, in conformity , Total payments on borrowings. ...... $36,104,000 with generally accepted accounting principles applied on a basis consistent with - Interest paid on borrowings. ..... . . 2 520 ,000 that of the preceding year. : Arthur Andersen & Co. Path... ccccecces cncbedewneess seewes ..... $4,624,000 | m Chicago. lilinois March 23, 1966. = fa Collections available for other purposes. ...........---: ... $82,495,000 — A “o w m 2 5 Oo i— > -——— co rT — © 16 | ao © ‘ 6 o w |o — Se me ee Bee be a & AGS BRUNSWICK CORPORATION AND SUBSIDIARIES The remaining $32,495,000, when combined with funds generated from other sources, was sufficient to finance the Company’s additions to fixed assets; to pay state, local and Federal income taxes of $8,753,000 | (principally by subsidiary companies); to meet general operating needs; and also to produce a net increase of $9,879,000 in cash and marketable | : securities at the end of 1965, compared with December 31, 1964. In March, 1966, Brunswick of Canada Ltd., paid $6,000,000 of its long-term loans, leaving a balance of $11,000,000, and at the same time, retired its | outstanding bank loans of $1,850,000. In many instances, Brunswick was able to assist customers in the orderly retirement of their debts from revenues generated by their | a Re NON EN A LS TG. bowling centers. However, not all customer problems could be resolved on a financially prudent basis. Therefore, despite the Company’s earnest COMPARATIVE FINANCIA DATA FOR TEN YEARS (in thousands of dollars) efforts to reach mutually satisfactory arrangements, repossessions 1965 and inventories of used equipment increased. SALES AND EARNINGS YEAR ENDED DECEMBER 31—(A) Net anles and revenues. ........ «6.6... eee ees 6314,876 PLANT AND EQUIPMENT Additions to plant, equipment and leasehold improvements totaled RMD, . .. cccnocsansdbvaconss¥es (76,932) $31,517,000 in 1965, an increase of $19,644,000 over the $11,873,000 expended during 1964. Most of this increase resulted from the transfers of repossessed bowling equipment from installment notes receivable and inventories to Brunswick-operated centers. These transfers did not require any outlay of cash. Depreciation, amortization, etc., amounted to $14,758,000 in 1965. Cash and marketable securities.............-- ¢ 40,171 | Notes and accounts receivable, net............ 280,740 SHAREHOLDERS’ EQUITY Shareholders’ equity was $131,581,000 at the end of 1965 compared Fewemterdes. 0.05. cece cece eee cccceesescnes 79,247 with $207,641,000 at December 31, 1964. The decrease resulted from the — and equipment, net........-..----+-++ Pwo very lange charges against 1065 earnings. The book value ofthe | Noe partis ad img Woes... ROR? common stock at December 31, 1965, was $7.19 per share on 18,288,404 | shares outstanding, compared with $11.42 per share on 18,179,931 shares outstanding at the end of 1964. MANAGEMENT CHANGES Mr. 8. P. Jacobson, corporate Senior Vice President, has assumed Cea oe | responsibility for the Technical and New Business Division. He was Additions to plant and — pecocccesons yes () previously in charge of the Bowling and International Divisions of - Bammings (loss) per share of common stock (C). (4.21) the Company. : Dividends per share of common stock (C)...... - Book value per share of common stock (C)..... 7.19 Mr. J. F. Urbanek, corporate Vice President, was named President of the Bowling Division, which now includes the former ; International Division. ete ‘Mr. J. F. Meyerhoff was elected corporate Controller, replacing : Mr. Urbanek in this position. Mr. J. W. Kelly was appointed President, MacGregor/Brunswick | Division. Mr. R. G. Bensinger was appointed President of the new Community Resources Division and Assistant Vice President of the Company. O€G 34944X3 S68LV of | timanininan O€G 34944X3 968LV ~ @ ome « ** BRUNSWICK CORPORATION AND SUBSIDIARIES | | | | | | | . : | CONSOLIDATED BALANCE swears / as of December 31, 1965 and 1964 | A ES Le en 1964 1963 1962 1961 1960 1969 1968 1987 \9ee | ASSETS ~ 1964 ) CURRENT ASSETS: $302,217 $315.653 $359.343 $426,865 $404,343 $349,208 $280,644 $198,080 $128.664 | : . , 602 (10,109) 24,307 44,982 38,243 31,075 18,063 9.646 7.716 Cash (including Sunes — a —_ ~~ pe applied » anzenene Marketable securities, at cost which approximates market ($4,671,000 in 1965 pledged for collateral trust debentures) 7.562.000 Federal income tax refund claims (Notes 3 and 8)......... -_ Notes and accounts receivable— : Installment notes, at principal balances including $ 30,292 $ 38,454 $ 36.976 $ 21,178 $ 25.465 $ 12,624 $ 9.703 $ 4913 @ 4,384 | $227,928,000 in 1965 and $315, 188,000 in 1964 due after 448.684 497.992 564.267 543.749 414.617 283.419 179.844 93.598 21.749 = one year (principal wo of $100,204,000 in 1965 and 97,420 84.851 89,130 76,647 79,308 58,750 43,776 31,079 30.230 ; | $153,740,000 in 1964, plus unearned interest thereon, as- 62.820 62,017 59.058 43,534 34,861 29.536 19,332 13,588 11.554 signed to C.1.T. Corporation and others) (Notes 4 and 7) 440,684,000 650.908 697.514 759.899 692.962 , 561.107 389.880 . 256,523 147.708 73.620 I. oon 605600 0000's 000sGsenesensceneseseuseces 566.745.0000 315.816 349.455 358.924 299.148 259.264 163,666 111,289 61.836 8.760 Lese—Reserves for possible losses on receivables (Note 6) (48,745,000) Be A SE LS TTT AT oa | Finished goods (Note 5)... .... 6-6 e cece eee n ees 62,364,000 I. Be ccnanctenscccecsecsccossoscsis 22.780,000 materials muppligg een nee 12,276,000 $11.873 $15,634 $23,840 $16,870 $13,399 $14,853 $10,387 $4,436 $3,056 mee ont — 10.324 9.877 7.585 6.570 5.360 3.802 3.379 2.671 1,897 Total curvemt Qanets..... oo. ccc c ccc eee eeeces $676.396.000 0.03 (0.56) 1.36 2.56 2.20 1.83 1.19 0.79. 0.68 os 0.30 0.60 0.45 0.32 0.22 0.13 0.07(D) 0.06(D) 11.42 11.41 12.25 11.39 9.04 6.64 4.95 4.17 3.68 PREPAID EXPEMG 9S AND OTHER ASSETS.............--.--- 11.692,000 } } BEST COPY AVAILABLE 3 PLANT AND EQUIPMENT, at cost (Note 9): (A) Date for companies scquired on » pooting-ef-interests basis have been (C) Based on Wee, member Of Soames of cach vour-end. after | Land ensnaahinreidabentinacs cennescediietl 3.664,000 included for all penods where signicamt. Deta for all other ecquired reflecnng sto ck dividends. stock splits and of shares of com- - ae ia : eee EEE mon stack in connection with mergers on 0 peoting-cf-inteream basis Buildings, machinery and equipment.............-....++- 103,872,000 | : 0) Plus 6% stock dividend. tl (B) In 1965, the additons to plant end equipment inciude the tanster of -” | Lese— Reserves for depreciation, amortisation, etc........ _(44.706.000) | repossessed bowling equipment inventory to Brunswick -opersted | 908.000 centers. m $650. e ~« —EE = MOM TA St | -@ | al ct 4 — > = a ; = ro ; e 1 a oo w 9 10 S | Ma Pk aac a sl ll RR LIABILITIES - 4966 CURRENT LIABILITIES: Notes payable— Banks and other—principally secured.................. $ 1,965,000 Bank, insurance companies, etc. (Canadian subadiary)— ee oe cu vdbeedeekaeeensannenmen , 1.850.000 C.1.T. Corporation—secured....... 1... cece ee eeee 43,536.000 Current maturities of long-term notes.................. 1.627,000 MeRSERAD GREED. 2. 00s ccccccccccccsccceccsccosonccese 25.286.000 Agawand GUBGREED. ... . 2... e ec cccccescccccccccccseseces 16,568.000 Income taxes (Note 3)— a na ia neal cial 18.597.000 a ta aa eg ea Seen 67,000,000 ee ee I oo o.oo oc ccescuscccccncess $176.428,000 LONG-TERM LIABILITIES Notes payable— SE CODED. .. .cocccccccccscccbocecccccessses $204.471,000 I, ooo. ounssseneccesectecsounesesesone 30,371,000 434% convertible subordinated debentures, due 1981 SITE, 0.04 6u 66666060060 00000eeseenensennocadesses 26.623.000 5% % collateral trust debentures, due 1978 (Note 10)... ... 5.000.000 Deferred compensation (Note 12)... ......... 66. sce eens 1.374.000 $266.839 000 CAPITAL STOCK AND SURPLUS: Commen stock, without nominal or par value; suthorised 25,000,000 shares; issued and outstanding, 1965— 18,288,404 shares; 1964—18,179,931 shares (Note 13)... . * 13,636,000 GERBER, ... cn ncccpencscccccccceseseccesccessesed 49.241.000 Earnings retained im the business (Note 11)............... _144,765,000 $207,641 .000 The eccompenying notes on pages 14 and 15 ere an integral pert of these Delence sheets. —_—>- - Of0 34944%3 668LV 1 BRUNSWICK CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF EARNINGS / for the years ended December $1, 1965 and 1964 ba alll 4 - al INCOME ee IIE, ooo sc icccccccccccccoceseessseoss $302.21 7.000° i . i eedeeddniacsbeedeeetnauneeeun 22.961.000 . ccccnccccoecsdocesesscsosoocesses $326, 168,000 COSTS AND EXPENSES Cost of sales I, .. .ccoevecoeesooesooceeseoseses $218.786,000 Selling and administrative expenses... .........-- 66-660 s> 71,738,000 Fntevent GUPGMED. .. «2. 2c cece cece ccccccccccccceeseceees 21,717,000 Provision for estimated losses on receivables.............. 9.253.000 Write-down of bowling inventories............-. 6 ese ees- _ Estimated losses on termination of foreign bowling operations = Other expenses, met... 2.6... e cence ener eee ee ce eees 2.582.000 Provimon (credits) for Federal, state and foreign income taxes eS ee 490,000 Tota] costs and expenses (including depreciation, amortisation, etc., of $14,758,000 in 1966 and $10,324,000 im 1064)... 2. cee eens $324.566.000 NET EARNINGS (L088) for the year (Note 2)...............- ¢ 602,000 _———————————— "Dees not netude repomemed bowting equipment ales of $15,683,000 in 1966 aad $19,636,000 ia 1984 (Note 5). The eccompanying notes on peges 14 and 16 a7e en integra! pert of these statements O€0 34q};4x3 O06LV CONSOLIDATED STATEMENT OF CAPITAL SURPLUS for the year ended December 31, 1965 awl a aoe. ise Sid PAE te: BALANCE AT DECEMBER 31, 1964... eee ere ee ennns 548,241 000 EXCESS OF QUOTED VALUE OR SELLING PRICE OVER RECORDED VALUE OF: Common stock issued for companies sequired in prior years (16,302 shares) (Note 13)... ....-- +. eee r eee rere ene 167,000 Common stock sold under stock option (4,000 shares) and employees’ stock purchase (88,171 shares) plans (Note 13) 624,000 BALANCE AT DECEMBER 31, 1966........---->> ee ne $60,032,000 ;_______—_—___4 CONSOLIDATED bra TEMENT OF EARNINGS RETAINED IN THE BUSINESS for the year ended December $1, 19665 BALANCE AT DECEMBER 31, 1064... .. 2.2... cc ceeceeeceeeeeeereeeeeenenes 6144, 766,000 MET (LOSS) FOR THE YEAR (Mote 2)... . --------ceseeeneeeesereeneneees (76,832,008) BALANCE AT DECEMBER 31, 1906 (Note 11). ........---.ececceceeeeereeeees © 67,433,000 ° ;—______—___4 The accompanying notes on pages 14 and 16 ere an integra! pert of these statements. O€G 34954%3 —_ w LO6LV NOTES TO CONSOLIDATED FINANCIAL STATEMENTS / December 31, 1965 NOTE 1— PRINCIPLES OF CONSOUIDATION: The consolidat- ed financial statements include the accounts of the Com- pany and ail its domestic and foreign subsidiaries. MOTE 2—LOSSES FROM SOWLING OPERATIONS: Ase result of the decline in the world-wide market for bowling to possible future repossessions of bowling equipment at reduced values. The Company and its subsidiaries siso cra vowing opavons tought wt. Sb developments. NOTE 3—INCOME TAXES: The Company and its subsidiaries have followed. for book purposes. the practice of recording income from sales financed by long-term installment notes receivable when customers take delivery of bowling lanes. automatic pinsetiers and related products [Text truncated at 120,000 characters. The full text is on the page linked above.] --- Source: Frix Law Library, https://www.frixlaw.com/law-library/documents/brief%3Amicro_IA40385003_2160%3A08. Public record. Not legal advice.