Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 28, 2013 | Oct. 23, 2013 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MUELLER INDUSTRIES INC | |
Entity Central Index Key | 89439 | |
Current Fiscal Year End Date | -16 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 28,274,201 | |
Document Fiscal Year Focus | 2013 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Sep-13 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||||
Net sales | $528,854 | $514,165 | $1,670,826 | $1,685,932 |
Cost of goods sold | 456,302 | 449,718 | 1,440,277 | 1,465,744 |
Depreciation and amortization | 7,882 | 7,870 | 24,364 | 23,318 |
Selling, general, and administrative expense | 32,921 | 32,120 | 99,078 | 97,209 |
Gain on sale of plastic fittings manufacturing assets | -39,765 | 0 | -39,765 | 0 |
Impairment charges | 4,304 | 0 | 4,304 | 0 |
Insurance settlement | 0 | 0 | -106,332 | -1,500 |
Operating income | 67,210 | 24,457 | 248,900 | 101,161 |
Interest expense | -1,243 | -353 | -2,940 | -5,711 |
Other income, net | 842 | 219 | 4,324 | 963 |
Income before income taxes | 66,809 | 24,323 | 250,284 | 96,413 |
Income tax expense | -26,816 | -8,753 | -92,015 | -29,486 |
Consolidated net income | 39,993 | 15,570 | 158,269 | 66,927 |
Net income attributable to noncontrolling interest | -129 | -59 | -1,053 | -900 |
Net income attributable to Mueller Industries, Inc. | $39,864 | $15,511 | $157,216 | $66,027 |
Weighted average shares for basic earnings per share (in shares) | 27,894 | 37,505 | 27,852 | 37,849 |
Effect of dilutive stock-based awards (in shares) | 361 | 452 | 369 | 444 |
Adjusted weighted average shares for diluted earnings per share (in shares) | 28,255 | 37,957 | 28,221 | 38,293 |
Basic earnings per share (in dollars per share) | $1.43 | $0.41 | $5.64 | $1.74 |
Diluted earnings per share (in dollars per share) | $1.41 | $0.41 | $5.57 | $1.72 |
Dividends per share (in dollars per share) | $0.13 | $0.10 | $0.38 | $0.30 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||||||
Consolidated net income | $39,993 | $15,570 | $158,269 | $66,927 | ||||
Other comprehensive income, net of tax: | ||||||||
Foreign currency translation | 6,738 | 4,973 | 770 | 7,172 | ||||
Net change with respect to derivative instruments and hedging activities | 531 | [1] | 648 | [2] | 1,005 | [3] | 957 | [4] |
Net actuarial loss on pension and postretirement obligations | -186 | [5] | 252 | [6] | 1,975 | [7] | 1,388 | [8] |
Other, net | 22 | 16 | 105 | 20 | ||||
Total other comprehensive income | 7,105 | 5,889 | 3,855 | 9,537 | ||||
Consolidated comprehensive income | 47,098 | 21,459 | 162,124 | 76,464 | ||||
Comprehensive (income) loss attributable to noncontrolling interest | -186 | -40 | -1,613 | 990 | ||||
Comprehensive income attributable to Mueller Industries, Inc. | $46,912 | $21,419 | $160,511 | $77,454 | ||||
[1] | Net of tax of $(280) | |||||||
[2] | Net of tax of $(388) | |||||||
[3] | Net of tax of $(607) | |||||||
[4] | Net of tax of $(554) | |||||||
[5] | Net of tax of $(3) | |||||||
[6] | Net of tax of $(178) | |||||||
[7] | Net of tax of $(963) | |||||||
[8] | Net of tax of $(777) |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Net change with respect to derivative instruments and hedging activities, tax | ($280) | ($388) | ($607) | ($554) |
Net actuarial loss on pension and postretirement obligations, tax | ($3) | ($178) | ($963) | ($777) |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $322,177 | $198,934 |
Accounts receivable, less allowance for doubtful accounts of $1,429 in 2013 and $1,644 in 2012 | 312,919 | 271,093 |
Inventories | 234,081 | 229,434 |
Current deferred income taxes | 28,957 | 26,438 |
Other current assets | 26,209 | 21,295 |
Total current assets | 924,343 | 747,194 |
Property, plant, and equipment, net | 222,751 | 233,263 |
Goodwill | 94,048 | 104,579 |
Other assets | 19,479 | 19,119 |
Total assets | 1,260,621 | 1,104,155 |
Current liabilities: | ||
Current portion of debt | 33,036 | 27,570 |
Accounts payable | 76,725 | 87,574 |
Accrued wages and other employee costs | 33,845 | 34,378 |
Other current liabilities | 100,566 | 109,174 |
Total current liabilities | 244,172 | 258,696 |
Long-term debt, less current portion | 206,550 | 207,300 |
Pension liabilities | 32,474 | 35,187 |
Postretirement benefits other than pensions | 19,731 | 19,832 |
Environmental reserves | 22,435 | 22,597 |
Deferred income taxes | 39,698 | 20,910 |
Other noncurrent liabilities | 1,141 | 1,667 |
Total liabilities | 566,201 | 566,189 |
Mueller Industries, Inc. stockholders' equity: | ||
Preferred stock - $1.00 par value; shares authorized 5,000,000; none outstanding | 0 | 0 |
Common stock - $.01 par value; shares authorized 100,000,000; issued 40,091,502; outstanding 28,272,201 in 2013 and 28,099,635 in 2012 | 401 | 401 |
Additional paid-in capital | 266,738 | 267,826 |
Retained earnings | 896,428 | 749,777 |
Accumulated other comprehensive loss | -39,327 | -42,623 |
Treasury common stock, at cost | -462,491 | -468,473 |
Total Mueller Industries, Inc. stockholders' equity | 661,749 | 506,908 |
Noncontrolling interest | 32,671 | 31,058 |
Total equity | 694,420 | 537,966 |
Commitments and contingencies | ||
Total Liabilities and Equity | $1,260,621 | $1,104,155 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Sep. 28, 2013 | Dec. 29, 2012 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ||
Allowance for doubtful accounts | $1,429 | $1,644 |
Mueller Industries, Inc. stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $1 | $1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 40,091,502 | 40,091,502 |
Common stock, shares outstanding (in shares) | 28,272,201 | 28,099,635 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 |
Cash flows from operating activities | ||
Consolidated net income | $158,269 | $66,927 |
Reconciliation of consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 24,583 | 23,713 |
Stock-based compensation expense | 4,560 | 3,042 |
Insurance settlements | -106,332 | -1,500 |
Insurance proceeds - noncapital related | 32,395 | 14,250 |
Gain on sale of plastics fittings manufacturing assets | -39,765 | 0 |
(Gain) loss on disposal of properties | -3,316 | 175 |
Impairment charge | 4,304 | 0 |
Deferred income taxes | 14,152 | 2,319 |
Income tax benefit from exercise of stock options | -670 | -517 |
Changes in assets and liabilities, net of business acquired: | ||
Receivables | -38,370 | -15,779 |
Inventories | -4,566 | 585 |
Other assets | 4,886 | -8,434 |
Current liabilities | 19,649 | -21,120 |
Other liabilities | -297 | 7,834 |
Other, net | 508 | 1,271 |
Net cash provided by operating activities | 69,990 | 72,766 |
Cash flows from investing activities | ||
Capital expenditures | -33,402 | -43,841 |
Acquisition of business | 0 | -11,503 |
Insurance proceeds for property and equipment | 29,910 | 42,250 |
Net (deposits into) withdrawals from restricted cash balances | -2,473 | 6,908 |
Proceeds from the sales of assets | 64,966 | 502 |
Net provided by (used in) investing activities | 59,001 | -5,684 |
Cash flows from financing activities | ||
Dividends paid to stockholders of Mueller Industries, Inc. | -10,449 | -11,415 |
Debt issuance cost | -50 | 0 |
Issuance of long-term debt | 0 | 200,000 |
Issuance (repayment) of debt by joint venture, net | 4,940 | -28,955 |
Net cash used to settle stock-based awards | -337 | -740 |
Repurchase of common stock | 0 | -427,448 |
Repayments of long-term debt | -750 | -148,926 |
Income tax benefit from exercise of stock options | 670 | 517 |
Net cash used in financing activities | -5,976 | -416,967 |
Effect of exchange rate changes on cash | 228 | 1,478 |
Increase (decrease) in cash and cash equivalents | 123,243 | -348,407 |
Cash and cash equivalents at the beginning of the period | 198,934 | 514,162 |
Cash and cash equivalents at the end of the period | $322,177 | $165,755 |
Earnings_per_Common_Share
Earnings per Common Share | 9 Months Ended |
Sep. 28, 2013 | |
Earnings per Common Share [Abstract] | |
Earnings per Common Share | Note 1 – Earnings per Common Share |
Basic per share amounts have been computed based on the average number of common shares outstanding. Diluted per share amounts reflect the increase in average common shares outstanding that would result from the assumed exercise of outstanding stock options and vesting of restricted stock awards, computed using the treasury stock method. Approximately 136 thousand stock based awards were excluded from the computation of diluted earnings per share for the quarter ended September 28, 2013 because they were antidilutive. | |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 28, 2013 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 2 – Commitments and Contingencies |
The Company is involved in certain litigation as a result of claims that arose in the ordinary course of business, which management believes will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company may also realize the benefit of certain legal claims and litigation in the future; these gain contingencies are not recognized in the Condensed Consolidated Financial Statements. | |
U.K. Actions Relating to the European Commission’s 2004 Copper Tube Decision and 2006 Copper Fittings Decision | |
Mueller Industries, Inc., WTC Holding Company, Inc., DENO Holding Company, Inc., Mueller Europe, Limited, and DENO Acquisition EURL (the Mueller entities) have received letters from counsel for IMI plc and IMI Kynoch Limited (IMI) and from counsel for Boliden AB (Boliden) concerning contribution proceedings by IMI and Boliden against the Mueller entities regarding copper tube. In the Competition Appeal Tribunal (the CAT) in the United Kingdom, IMI and Boliden have been served with claims by 21 claimants, all companies within the Travis Perkins Group (TP and the TP Claimants). The TP Claimants are seeking follow-on damages arising out conduct described in the European Commission’s September 3, 2004, decision regarding copper tube. The claims purport to arise from the findings of the European Commission as set forth in that decision. | |
Mueller Industries, Inc., Mueller Europe, Limited, and WTC Holding Company, Inc. also have received a letter from counsel for IMI concerning contribution proceedings by IMI against those three Mueller entities regarding copper fittings. In the High Court, IMI has been served with claims by 21 TP Claimants. The TP Claimants are seeking follow-on damages arising out of conduct described in the European Commission’s September 20, 2006, decision regarding copper fittings. The claims similarly purport to arise from the findings of the European Commission as set forth in that decision. | |
The letters confirm that IMI and Boliden have commenced legal proceedings against the Mueller entities, and in those proceedings are claiming a contribution for any follow-on damages. IMI and Boliden have formally served their claims on the Mueller entities. | |
While the TP Claimants have provided their preliminary calculations of aggregate claimed damages for the copper tube claim and the copper fittings claim, Mueller does not believe these matters will have a material affect on the Condensed Consolidated Financial Statements for the contribution claims. | |
As to the claims arising from the Copper Tube Decision brought in the CAT, following the CAT’s grant of approval, the case has now been transferred to the High Court. Mueller’s defenses in response to the contribution claims brought by IMI and Boliden were served on March 15, 2013. A case management conference is to be held on or about November 28, 2013. | |
As to the claims arising from the Copper Fittings Decision, these proceedings have been stayed until the next case management conference which is to take place on December 16, 2013. | |
At this time, the Company does not believe that this matter will have a material impact on its financial position, results of operations, or cash flows. | |
Lead Refinery Site | |
U.S.S. Lead Refinery, Inc. (Lead Refinery), a non-operating wholly owned subsidiary of Mining Remedial Recovery Company, has conducted corrective action and interim remedial activities and studies (collectively, Site Activities) at Lead Refinery’s East Chicago, Indiana site pursuant to the Resource Conservation and Recovery Act. Site Activities, which began in December 1996, have been substantially concluded. Lead Refinery is required to perform monitoring and maintenance activities with respect to Site Activities pursuant to a post-closure permit issued by the Indiana Department of Environmental Management effective as of March 2, 2013. Lead Refinery spent approximately $0.1 million annually in 2012, 2011 and 2010 with respect to this site. Approximate costs to comply with the post-closure permit, including associated general and administrative costs, are between $2.4 million and $3.6 million over the next 20 years. | |
On April 9, 2009, pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the Environmental Protection Agency (EPA) added the Lead Refinery site, and properties surrounding the Lead Refinery site, to the National Priorities List (NPL). The NPL is a list of priority sites where the EPA has determined that there has been a release or threatened release of hazardous substances that warrant investigation and, if appropriate, remedial action. The NPL does not assign liability to any party including the owner or operator of a property placed on the NPL. The placement of a site on the NPL does not necessarily mean that remedial action must be taken. On July 17, 2009, Lead Refinery received a written notice from the EPA that the agency is of the view that Lead Refinery may be a potentially responsible party (PRP) under CERCLA in connection with the release or threat of release of hazardous substances including lead into properties surrounding the Lead Refinery site. The EPA has identified two other PRPs in connection with the release or threat of release of hazardous substances into properties surrounding the Lead Refinery site. PRPs under CERCLA include current and former owners and operators of a site, persons who arranged for disposal or treatment of hazardous substances at a site, or persons who accepted hazardous substances for transport to a site. In November 2012, the EPA adopted a remedy in connection with properties surrounding the Lead Refinery site. The EPA has estimated that the cost to implement the November 2012 remedy will be $29.9 million. | |
The Company monitors EPA releases and periodically communicates with the EPA to inquire of the status of the investigation and cleanup of the Lead Refinery site. As of September 28, 2013, the EPA has not conducted an investigation of the Lead Refinery site, proposed remedies for the Lead Refinery site, or informed Lead Refinery that it is a PRP at the Lead Refinery site. Until the extent of any remedial action is determined for the Lead Refinery site, the Company is unable to determine the likelihood of a material adverse outcome or the amount or range of a potential loss with respect to placement of the Lead Refinery site and adjacent properties on the NPL. Lead Refinery lacks the financial resources needed to undertake any investigations or remedial action that may be required by the EPA pursuant to CERCLA. | |
Other | |
Guarantees, in the form of letters of credit, are issued by the Company generally to assure the payment of insurance deductibles and certain retiree health benefits. The terms of the Company’s guarantees are generally one year but are renewable annually as required. These letters are primarily backed by the Company’s revolving credit facility. The maximum payments that the Company could be required to make under its guarantees at September 28, 2013, were $10.0 million. | |
Insurance_Claims
Insurance Claims | 9 Months Ended |
Sep. 28, 2013 | |
Insurance Claims [Abstract] | |
Insurance Claims | Note 3 – Insurance Claims |
Wynne, Arkansas Manufacturing Operation | |
In September 2011, a portion of the Company’s Wynne, Arkansas manufacturing operation was damaged by fire. Certain inventories, production equipment, and building structures were extensively damaged. During the second quarter of 2013, the Company settled the claim with its insurer for total proceeds of $127.3 million, net of the deductible of $0.5 million. As a result of the settlement with its insurer, all proceeds received and all costs previously deferred (which were recorded as other current liabilities in prior periods) were recognized, resulting in a pre-tax gain of $106.3 million in the second quarter of 2013, or $2.33 per diluted share after tax. | |
Fulton, Mississippi Copper Tube Facility | |
In July 2009, there was an explosion at the Company’s copper tube facility in Fulton, Mississippi resulting in damage to certain production equipment. In the first quarter of 2012, the Company settled the business interruption portion of this claim and recognized a $1.5 million gain. | |
Inventories
Inventories | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Note 4 – Inventories | ||||||||
(In thousands) | September 28, 2013 | December 29, 2012 | |||||||
Raw materials and supplies | $ | 49,705 | $ | 46,114 | |||||
Work-in-process | 48,075 | 40,951 | |||||||
Finished goods | 142,710 | 148,014 | |||||||
Valuation reserves | (6,409 | ) | (5,645 | ) | |||||
Inventories | $ | 234,081 | $ | 229,434 | |||||
During 2011, inventory quantities valued using the last-in, first-out (LIFO) method declined which resulted in liquidation of LIFO inventory layers. This liquidation resulted from intercompany sales; therefore, the gain from the LIFO liquidation of approximately $8.0 million was deferred. During the first quarter of 2012, the Company sold this inventory to third parties and recognized the gain. This recognition resulted in a reduction of approximately $8.0 million to cost of sales, or $0.13 per diluted share after tax. | |||||||||
Industry_Segments
Industry Segments | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Industry Segments [Abstract] | |||||||||||||||||
Industry Segments | Note 5 – Industry Segments | ||||||||||||||||
The Company’s reportable segments are Plumbing & Refrigeration and Original Equipment Manufacturers (OEM). For disclosure purposes, as permitted under Accounting Standards Codification (ASC) 280, Segment Reporting, certain operating segments are aggregated into reportable segments. The Plumbing & Refrigeration segment is composed of Standard Products (SPD), European Operations, and Mexican Operations. The OEM segment is composed of Industrial Products (IPD), Engineered Products (EPD), and Jiangsu Mueller–Xingrong Copper Industries Limited (Mueller-Xingrong). These segments are classified primarily by the markets for their products. Performance of segments is generally evaluated by their operating income. Intersegment transactions are generally conducted on an arms-length basis. | |||||||||||||||||
SPD manufactures copper tube and fittings, plastic fittings, plastic pipe, and line sets. These products are manufactured in the U.S. Outside the U.S., the Company’s European Operations manufacture copper tube, which is sold in Europe and the Middle East. SPD also imports and resells brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products. Mexican Operations consist of pipe nipple manufacturing and import distribution businesses including product lines of malleable iron fittings and other plumbing specialties. The European Operations consist of copper tube manufacturing and the import distribution of fittings, valves, and plumbing specialties primarily in the U.K. and Ireland. The Plumbing & Refrigeration segment’s products are sold primarily to plumbing, refrigeration, and air-conditioning wholesalers, hardware wholesalers and co-ops, and building product retailers. | |||||||||||||||||
IPD manufactures brass rod, impact extrusions, and forgings which are used in a wide variety of end products including plumbing brass, automotive components, valves, and fittings. EPD manufactures and fabricates valves and assemblies primarily for the refrigeration, air-conditioning, and gas appliance markets and specialty copper, copper-alloy, and aluminum tubing. Mueller-Xingrong manufactures engineered copper tube primarily for air-conditioning applications. These products are sold primarily to original equipment manufacturers. | |||||||||||||||||
Summarized segment information is as follows: | |||||||||||||||||
For the Quarter Ended September 28, 2013 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 301,622 | $ | 230,396 | $ | (3,164 | ) | $ | 528,854 | ||||||||
Cost of goods sold | 258,035 | 201,399 | (3,132 | ) | 456,302 | ||||||||||||
Depreciation and amortization | 4,172 | 3,150 | 560 | 7,882 | |||||||||||||
Selling, general, and administrative expense | 20,736 | 5,779 | 6,406 | 32,921 | |||||||||||||
Gain on sale of plastic fittings manufacturing assets | (39,765 | ) | — | — | (39,765 | ) | |||||||||||
Impairment charges | 4,173 | 131 | — | 4,304 | |||||||||||||
Operating income | $ | 54,271 | $ | 19,937 | $ | (6,998 | ) | 67,210 | |||||||||
Interest expense | (1,243 | ) | |||||||||||||||
Other income, net | 842 | ||||||||||||||||
Income before income taxes | $ | 66,809 | |||||||||||||||
Segment information (continued): | |||||||||||||||||
For the Quarter Ended September 29, 2012 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 297,913 | $ | 221,468 | $ | (5,216 | ) | $ | 514,165 | ||||||||
Cost of goods sold | 257,978 | 196,789 | (5,049 | ) | 449,718 | ||||||||||||
Depreciation and amortization | 4,044 | 3,437 | 389 | 7,870 | |||||||||||||
Selling, general, and administrative expense | 18,298 | 6,821 | 7,001 | 32,120 | |||||||||||||
Operating income | $ | 17,593 | $ | 14,421 | $ | (7,557 | ) | 24,457 | |||||||||
Interest expense | (353 | ) | |||||||||||||||
Other income, net | 219 | ||||||||||||||||
Income before income taxes | $ | 24,323 | |||||||||||||||
For the Nine Months Ended September 28, 2013 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 942,109 | $ | 741,227 | $ | (12,510 | ) | $ | 1,670,826 | ||||||||
Cost of goods sold | 800,782 | 651,875 | (12,380 | ) | 1,440,277 | ||||||||||||
Depreciation and amortization | 12,861 | 9,854 | 1,649 | 24,364 | |||||||||||||
Selling, general, and administrative expense | 61,245 | 18,168 | 19,665 | 99,078 | |||||||||||||
Gain on sale of plastic fittings manufacturing assets | (39,765 | ) | — | — | (39,765 | ) | |||||||||||
Impairment charges | 4,173 | 131 | — | 4,304 | |||||||||||||
Insurance settlement | (103,895 | ) | — | (2,437 | ) | (106,332 | ) | ||||||||||
Operating income | $ | 206,708 | $ | 61,199 | $ | (19,007 | ) | 248,900 | |||||||||
Interest expense | (2,940 | ) | |||||||||||||||
Other income, net | 4,324 | ||||||||||||||||
Income before income taxes | $ | 250,284 | |||||||||||||||
Segment information (continued): | |||||||||||||||||
For the Nine Months Ended September 29, 2012 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 944,955 | $ | 760,995 | $ | (20,018 | ) | $ | 1,685,932 | ||||||||
Cost of goods sold | 808,631 | 676,635 | (19,522 | ) | 1,465,744 | ||||||||||||
Depreciation and amortization | 12,340 | 9,908 | 1,070 | 23,318 | |||||||||||||
Selling, general, and administrative expense | 57,028 | 20,249 | 19,932 | 97,209 | |||||||||||||
Insurance settlement | (1,500 | ) | — | — | (1,500 | ) | |||||||||||
Operating income | $ | 68,456 | $ | 54,203 | $ | (21,498 | ) | 101,161 | |||||||||
Interest expense | (5,711 | ) | |||||||||||||||
Other expense, net | 963 | ||||||||||||||||
Income before income taxes | $ | 96,413 | |||||||||||||||
Debt
Debt | 9 Months Ended |
Sep. 28, 2013 | |
Debt [Abstract] | |
Debt | Note 6 – Debt |
On September 24, 2013, Mueller-Xingrong entered into a credit agreement (the JV Credit Agreement) with a syndicate of four banks establishing a secured RMB 450 million, or approximately $74.0 million, revolving credit facility with a maturity date of September 24, 2014. The JV Credit Agreement replaced the previous secured RMB 350 million financing agreement that matured during the quarter. Borrowings outstanding under the JV Credit Agreement, which were $32.0 million at September 28, 2013, are secured by the real property and equipment of Mueller-Xingrong and bear interest at the latest base-lending rate published by the People’s Bank of China, which was 5.88 percent at September 28, 2013. The JV Credit Agreement requires lender consent for the payment of dividends. | |
Employee_Benefits
Employee Benefits | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Employee Benefits [Abstract] | |||||||||||||||||
Employee Benefits | |||||||||||||||||
Note 7 – Employee Benefits | |||||||||||||||||
The Company sponsors several qualified and nonqualified pension plans and other postretirement benefit plans for certain of its employees. The components of net periodic benefit cost are as follows: | |||||||||||||||||
For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||
(In thousands) | September 28, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | |||||||||||||
Pension benefits: | |||||||||||||||||
Service cost | $ | 350 | $ | 339 | $ | 1,051 | $ | 1,016 | |||||||||
Interest cost | 2,023 | 2,185 | 6,070 | 6,556 | |||||||||||||
Expected return on plan assets | (2,845 | ) | (2,721 | ) | (8,535 | ) | (8,165 | ) | |||||||||
Amortization of prior service cost | 1 | 1 | 1 | 1 | |||||||||||||
Amortization of net loss | 984 | 966 | 2,954 | 2,900 | |||||||||||||
Net periodic benefit cost | $ | 513 | $ | 770 | $ | 1,541 | $ | 2,308 | |||||||||
Other benefits: | |||||||||||||||||
Service cost | $ | 69 | $ | 67 | $ | 207 | $ | 200 | |||||||||
Interest cost | 155 | 278 | 467 | 835 | |||||||||||||
Amortization of prior service cost (credit) | 2 | — | 5 | (1 | ) | ||||||||||||
Amortization of net gain | (41 | ) | (7 | ) | (125 | ) | (20 | ) | |||||||||
Net periodic benefit cost | $ | 185 | $ | 338 | $ | 554 | $ | 1,014 | |||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 28, 2013 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8 – Income Taxes |
The Company’s effective tax rate for the third quarter of 2013 was 40 percent compared with 36 percent for the same period last year. Factors that explain the difference between the effective tax rate and what would be computed using the U.S. federal statutory tax rate for the third quarter of 2013 were increases related to: (i) the impairment of goodwill of $1.8 million; (ii) increases in the valuation allowance of $1.0 million; (iii) the provision for state income taxes, net of federal benefit of $1.2 million; and (iv) the effect of foreign adjustments of $0.4 million. These items were partially offset by the U.S. production activities deduction of $1.0 million. | |
The Company’s effective tax rate for the first nine months of 2013 was 37 percent compared with 31 percent for the same period last year. Factors that explain the difference between the effective tax rate and what would be computed using the U.S. federal statutory tax rate for the first nine months were increases related to: (i) goodwill impairment of $1.8 million and (ii) the provision for state income taxes, net of the federal benefit, of $7.4 million. These items were partially offset by reductions related to: (i) the effect of foreign tax rates lower than statutory tax rates and other foreign items of $1.1 million; (ii) decreases in valuation allowances of $0.4 million; and (iii) the U.S. production activities deduction of $3.9 million. | |
The Company’s effective tax rate for the third quarter of 2012 was 36 percent and for the first nine months of 2012 was 31 percent. Factors that explain the difference between the effective tax rate and what would be computed using the U.S. federal statutory tax rate for the first nine months of 2012 were reductions related to: (i) the effect of foreign tax rates lower than statutory tax rates and other foreign items of $3.7 million; (ii) decreases in unrecognized tax benefits of $1.3 million; (iii) decreases in valuation allowances of $0.5 million; and (iv) the U.S. production activities deduction of $2.2 million. These items were partially offset by the provision for state income taxes, net of the federal benefit, of $2.7 million. | |
Total unrecognized tax benefits, including derecognized deferred tax assets, at the end of the third quarter were $2.8 million, none of which would impact the effective tax rate, if recognized. | |
The Company files a consolidated U.S. federal income tax return and numerous consolidated and separate-company income tax returns in many state, local, and foreign jurisdictions. The statute of limitations is open for the Company’s federal tax return and most state income tax returns for 2010 and all subsequent years. The Internal Revenue Service has audited the Company’s 2009 and 2010 consolidated U.S. federal income tax returns, the results of which were immaterial to the consolidated financial statements. The statutes of limitations for certain state and foreign returns are open for earlier tax years due to ongoing audits and differing statute periods. While the Company believes that it is adequately reserved for possible future audit adjustments, the final resolution of these examinations cannot be determined with certainty and could result in final settlements that differ from current estimates. | |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||
Derivative Instruments and Hedging Activities | Note 9 – Derivative Instruments and Hedging Activities | ||||||||||||||||
Cash Flow Hedges | |||||||||||||||||
Copper and brass represent the largest component of the Company’s variable costs of production. The cost of these materials is subject to global market fluctuations caused by factors beyond the Company’s control. The Company occasionally enters into forward fixed-price arrangements with certain customers; the risk of these arrangements is generally managed with commodity futures contracts. The Company accounts for these futures contracts in accordance with ASC 815, Derivatives and Hedging (ASC 815). These futures contracts have been designated as cash flow hedges. The fair value of open futures contracts is recognized as a component of accumulated other comprehensive income (OCI) until the position is closed, which corresponds to the period when the related hedged transaction is recognized in earnings. Should these contracts no longer meet hedge criteria in accordance with ASC 815, either through lack of effectiveness or because the hedged transaction is no longer probable of occurring, all deferred gains and losses related to the hedge would be immediately reclassified from accumulated other comprehensive income into earnings. In the next 12 months, the Company will reclassify into earnings realized gains or losses on cash flow hedges; at September 28, 2013, the net fair value of these contracts was a $172 thousand loss position. | |||||||||||||||||
At September 28, 2013, the Company held open futures contracts to purchase approximately $18.5 million of copper over the next 18 months related to fixed price sales orders. The fair value of those futures contracts was a $140 thousand loss position, which was determined by obtaining quoted market prices (Level 1 hierarchy as defined by ASC 820, Fair Value Measurements and Disclosures (ASC 820)). | |||||||||||||||||
Derivative instruments designated as cash flow hedges under ASC 815 are reflected in the Condensed Consolidated Financial Statements as follows: | |||||||||||||||||
28-Sep-13 | |||||||||||||||||
(In thousands) | Location | Fair Value | |||||||||||||||
Commodity contracts | Other current liabilities: | Gain positions | $ | 222 | |||||||||||||
Loss positions | (362 | ) | |||||||||||||||
29-Dec-12 | |||||||||||||||||
(In thousands) | Location | Fair Value | |||||||||||||||
Commodity contracts | Other current liabilities: | Gain positions | $ | 172 | |||||||||||||
Loss positions | (420 | ) | |||||||||||||||
The following tables summarize activities related to the Company’s derivative instruments classified as cash flow hedges in accordance with ASC 815: | |||||||||||||||||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion), Net of Tax | |||||||||||||||||
For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||
(In thousands) | September 28, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | |||||||||||||
Commodity contracts | $ | 474 | $ | 562 | $ | (3,056 | ) | $ | 455 | ||||||||
Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion), Net of Tax | |||||||||||||||||
For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||
(In thousands) | September 28, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | |||||||||||||
Commodity contracts: | |||||||||||||||||
Cost of goods sold | $ | 788 | $ | (2 | ) | $ | 3,309 | $ | 428 | ||||||||
Fair Value Hedges | |||||||||||||||||
The Company enters into futures contracts in order to protect the value of inventory against market fluctuations. These futures contracts have been designated as fair value hedges in accordance with ASC 815. For fair value hedges, the changes in value of the hedging instrument, as well as the changes in value of the related hedged item, are reflected in current earnings. Hedge ineffectiveness is reflected in current earnings in the period in which it occurs. | |||||||||||||||||
At September 28, 2013, the Company held open futures contracts to sell approximately $61.0 million of copper over the next six months related to inventory. The fair value of those futures contracts was a $1.2 million loss position and was recorded in other current liabilities. The fair value was determined by obtaining quoted market prices (Level 1 hierarchy as defined by ASC 820). | |||||||||||||||||
Derivative instruments designated as fair value hedges under ASC 815 are reflected in the Condensed Consolidated Financial Statements as follows: | |||||||||||||||||
28-Sep-13 | |||||||||||||||||
(In thousands) | Location | Fair Value | |||||||||||||||
Commodity contracts | Other current liabilities: | Gain positions | $ | 203 | |||||||||||||
Loss positions | (1,355 | ) | |||||||||||||||
29-Dec-12 | |||||||||||||||||
(In thousands) | Location | Fair Value | |||||||||||||||
Commodity contracts | Other current assets: | Gain positions | $ | 1,047 | |||||||||||||
Loss positions | (548 | ) | |||||||||||||||
The following tables summarize the gains (losses) on the Company’s fair value hedges: | |||||||||||||||||
(Losses) Gains on Fair Value Hedges for the | |||||||||||||||||
Three Months Ended September 28, 2013 | |||||||||||||||||
(In thousands) | Location | Amount | |||||||||||||||
(Loss) on the derivatives in designated and qualifying fair value hedges: | |||||||||||||||||
Commodity Contracts | Cost of goods sold | $ | (846 | ) | |||||||||||||
Gain on the hedged item in designated and qualifying fair value hedges: | |||||||||||||||||
Inventory | Cost of goods sold | $ | 1,042 | ||||||||||||||
(Losses) Gains on Fair Value Hedges for the | |||||||||||||||||
Three Months Ended September 29, 2012 | |||||||||||||||||
(In thousands) | Location | Amount | |||||||||||||||
(Loss) on the derivatives in designated and qualifying fair value hedges: | |||||||||||||||||
Commodity Contracts | Cost of goods sold | $ | (2,261 | ) | |||||||||||||
Gain on the hedged item in designated and qualifying fair value hedges: | |||||||||||||||||
Inventory | Cost of goods sold | $ | 2,344 | ||||||||||||||
Gains (Losses) on Fair Value Hedges for the | |||||||||||||||||
Nine Months Ended September 28, 2013 | |||||||||||||||||
(In thousands) | Location | Amount | |||||||||||||||
Gain on the derivatives in designated and qualifying fair value hedges: | |||||||||||||||||
Commodity Contracts | Cost of goods sold | $ | 4,344 | ||||||||||||||
(Loss) on the hedged item in designated and qualifying fair value hedges: | |||||||||||||||||
Inventory | Cost of goods sold | $ | (3,770 | ) | |||||||||||||
(Losses) Gains on Fair Value Hedges for the | |||||||||||||||||
Nine Months Ended September 29, 2012 | |||||||||||||||||
(In thousands) | Location | Amount | |||||||||||||||
(Loss) on the derivatives in designated and qualifying fair value hedges: | |||||||||||||||||
Commodity Contracts | Cost of goods sold | $ | (2,261 | ) | |||||||||||||
Gain on the hedged item in designated and qualifying fair value hedges: | |||||||||||||||||
Inventory | Cost of goods sold | $ | 2,344 | ||||||||||||||
Foreign Currency Hedges | |||||||||||||||||
During 2012 and 2013, the Company entered into contracts to purchase heavy machinery and equipment. These contracts are denominated in euros. In anticipation of entering into these contracts, the Company has entered into forward contracts to purchase euros to protect itself against adverse exchange rate fluctuations. At September 28, 2013, the Company held open forward contracts to purchase approximately 13.7 million euros over the next 18 months. The fair value of these contracts, which was determined by obtaining quoted market prices (Level 1 hierarchy as defined by ASC 820), was not material to the Company’s financial position, results of operations, or cash flows at September 28, 2013. | |||||||||||||||||
Interest Rate Swap | |||||||||||||||||
On February 20, 2013, the Company entered into a two-year forward-starting interest rate swap agreement with an effective date of January 12, 2015, and an underlying notional amount of $200.0 million, pursuant to which the Company receives variable interest payments based on one-month LIBOR and pays fixed interest at a rate of 1.4 percent. Based on the Company’s current variable premium pricing on its Term Loan Facility, the all-in fixed rate on the effective date is 2.7 percent. The interest rate swap will mature on December 11, 2017, and is structured to fix the interest rate risk associated with the Company’s floating-rate, LIBOR-based Term Loan Facility Agreement. The swap was designated and accounted for as a cash flow hedge from inception. | |||||||||||||||||
The fair value of the interest rate swap is estimated based on the present value of the difference between expected cash flows calculated at the contracted interest rate and the expected cash flows at the current market interest rate using observable benchmarks for LIBOR forward rates at the end of the period (Level 2 hierarchy as defined by ASC 820). The effective portion of the mark-to-market gain or loss is reported as a component of accumulated OCI and subsequently reclassified into earnings when the hedged transactions occur and affect earnings. Interest payable and receivable under the swap agreement will be accrued and recorded as an adjustment to interest expense. The fair value of the interest rate swap was a $1.0 million gain position and was recorded in other assets at September 28, 2013. | |||||||||||||||||
The following tables summarize the activity related to the interest rate swap: | |||||||||||||||||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion), Net of Tax | |||||||||||||||||
For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||
(In thousands) | September 28, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | |||||||||||||
Interest rate swap | $ | (747 | ) | $ | — | $ | 649 | $ | — | ||||||||
The Company enters into futures and forward contracts that closely match the terms of the underlying transactions. As a result, the ineffective portion of the open cash flow and fair value hedge contracts through September 28, 2013 was not material to the Condensed Consolidated Statements of Income. | |||||||||||||||||
The Company does not offset the fair value of amounts for derivative instruments and the fair value amounts recognized for the right to reclaim cash collateral. At September 28, 2013, the Company had recorded restricted cash of $2.9 million related to open futures contracts. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 28, 2013 | |
Acquisition [Abstract] | |
Acquisition | Note 10 – Acquisition |
On August 16, 2012, the Company acquired 100 percent of the outstanding stock of Westermeyer Industries, Inc. (Westermeyer) for approximately $11.5 million in cash. Westermeyer, located in Bluffs, Illinois, designs, manufactures, and distributes high-pressure components and accessories for the air-conditioning and refrigeration markets. The acquisition of Westermeyer complements the Company’s existing refrigeration business, a component of the OEM segment. This acquisition was accounted for using the purchase method of accounting, and, as such, the results of operations for Westermeyer have been included in the accompanying Condensed Consolidated Financial Statements from the acquisition date. The fair values of the assets acquired totaled $7.5 million, consisting of receivables of $2.0 million, inventories of $1.9 million, and property, plant, and equipment of $3.6 million. These assets were partially offset by current liabilities of approximately $1.0 million. Of the remaining purchase price, $2.4 million was allocated to goodwill and $2.7 million to other intangible assets. | |
Disposal_of_LongLived_Assets
Disposal of Long-Lived Assets | 9 Months Ended |
Sep. 28, 2013 | |
Sale of Property [Abstract] | |
Sale of Property | Note 11 – Disposal of Long-Lived Assets |
On August 9, 2013, the Company sold certain of its plastic fittings manufacturing assets located in Portage, Michigan and Ft. Pierce, Florida. Simultaneously, the Company entered into a lease agreement with the purchaser of the assets to continue to manufacture and distribute Schedule 40 plastic fittings utilizing the Ft. Pierce assets for a period of approximately eight to 14 months (Transition Period). The total sales price was $66.2 million, of which $61.2 million was received on August 9, 2013; the remaining $5.0 million will be received at the end of the Transition Period. This transaction resulted in a pre-tax gain of $39.8 million in the third quarter of 2013, or 81 cents per diluted share after tax. | |
The net book value of assets disposed was $15.9 million. For goodwill testing purposes, these assets were part of the SPD reporting unit which is a component of the Company’s Plumbing & Refrigeration operating segment. Because these assets met the definition of a business in accordance with ASC 805 Business Combinations, $10.5 million of the SPD reporting unit’s goodwill balance was allocated to the disposal group. The amount of goodwill allocated was based on the relative fair values of the asset group which was disposed and the portion of the SPD reporting unit which was retained. | |
The Company will continue to manufacture and supply plastic drain, waste, and vent (“DWV”) fittings. The Company extended its third party supply agreement to complement its product offering with purchased products the Company does not competitively manufacture with its remaining assets. This supply agreement was originally entered into after the majority of the Company’s plastic manufacturing assets were destroyed in the 2011 fire at its Wynne, Arkansas facility. The extended supply agreement has an initial five-year term. | |
With the decision to cease the Company’s manufacturing operations in Portage, there was an evaluation of the remaining long-lived assets for impairment, and it was determined that the carrying value of the land and building were no longer recoverable. An impairment charge of $3.2 million was recognized during the third quarter of 2013 to adjust the carrying value of the land and building to their estimated fair value. The fair value estimate was determined by obtaining and evaluating recent sales data for similar assets (Level 2 hierarchy as defined by ASC 820). | |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||
Accumulated Other Comprehensive Income | Note 12 – Accumulated Other Comprehensive Income | ||||||||||||||||||||
During the first quarter of 2013, the Company adopted Accounting Standards Update (ASU) No. 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income (ASU 2013-02). Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of accumulated OCI by component. In addition, an entity is required to present significant amounts reclassified out of accumulated OCI by the respective line items of net income. | |||||||||||||||||||||
Changes in accumulated OCI by component, net of taxes and noncontrolling interest, were as follows: | |||||||||||||||||||||
(In thousands) | Cumulative Translation Adjustment | Unrealized (Losses)/Gains on Derivatives | Minimum Pension/OPEB Liability Adjustment | Unrealized Gains on Equity Investments | Total | ||||||||||||||||
29-Dec-12 | $ | (3,033 | ) | $ | (166 | ) | $ | (39,527 | ) | $ | 103 | $ | (42,623 | ) | |||||||
Other comprehensive income before reclassifications | 211 | 4,314 | 79 | 105 | 4,709 | ||||||||||||||||
Amounts reclassified from accumulated OCI | — | (3,309 | ) | 1,896 | — | (1,413 | ) | ||||||||||||||
Net current-period other comprehensive income | 211 | 1,005 | 1,975 | 105 | 3,296 | ||||||||||||||||
28-Sep-13 | $ | (2,822 | ) | $ | 839 | $ | (37,552 | ) | $ | 208 | $ | (39,327 | ) | ||||||||
Reclassification adjustments out of accumulated OCI were as follows: | |||||||||||||||||||||
Amount reclassified from Accumulated OCI | |||||||||||||||||||||
(In thousands) | For the Quarter Ended September 28, 2013 | For the Nine Months Ended September 28, 2013 | Affected Line Item | ||||||||||||||||||
Unrealized gains on derivatives: | |||||||||||||||||||||
Closed positions, commodity contracts | $ | 1,046 | $ | 4,922 | Cost of goods sold | ||||||||||||||||
(258 | ) | (1,613 | ) | Income tax expense | |||||||||||||||||
788 | 3,309 | Net of tax | |||||||||||||||||||
— | — | Noncontrolling interest | |||||||||||||||||||
$ | 788 | $ | 3,309 | Net of tax and noncontrolling interest | |||||||||||||||||
Amortization of employee benefit items: | |||||||||||||||||||||
Amortization of net loss | $ | 946 | $ | 2,835 | Selling, general, and administrative expense | ||||||||||||||||
(318 | ) | (939 | ) | Income tax expense | |||||||||||||||||
628 | 1,896 | Net of tax | |||||||||||||||||||
— | — | Noncontrolling interest | |||||||||||||||||||
$ | 628 | $ | 1,896 | Net of tax and noncontrolling interest | |||||||||||||||||
Subsequent_Event
Subsequent Event | 9 Months Ended |
Sep. 28, 2013 | |
Subsequent Event [Abstract] | |
Subsequent Event [Text Block] | Note 13 – Subsequent Events |
On October 17, 2013, the Company entered into a Stock Purchase Agreement with Commercial Metals Company and Howell Metal Company (“Howell”) providing for the purchase of all of the outstanding capital stock of Howell. Howell manufactures copper tube and line sets for U.S. distribution. The purchase price of $58.5 million was funded by cash on-hand. This is subject to a customary working capital adjustment. For the twelve months ended August 31, 2013, Howell’s net sales for copper tube and line sets were $156.3 million. | |
On October 18, 2013, the Company entered into a definitive agreement with KME Yorkshire Limited (“Yorkshire”) to acquire certain assets and assume certain liabilities of Yorkshire for purposes of acquiring its copper tube business. The consummation of the transaction is subject to the receipt of regulatory approval in the United Kingdom and other customary closing conditions. Yorkshire produces European standard copper distribution tubes. The purchase price will be £18.0 million. In 2012, Yorkshire had annual revenue of £119.0 million. | |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 9 Months Ended |
Sep. 28, 2013 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Note 14 – Recently Issued Accounting Standards |
In December 2011, the Financial Accounting Standards Board (FASB) issued amendments to ASU 2011-11, Balance Sheet (Topic 210), Disclosures about Offsetting Assets and Liabilities. The amendments in this update are designed to enhance disclosures by requiring improved information about financial instruments and derivative instruments that are either (a) offset in accordance with certain right to set-off conditions prescribed by current accounting guidance or (b) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current accounting guidance. The amendments to ASU 2011-11 were effective for the first interim or annual period beginning on or after January 1, 2013. The Company does not expect the adoption of ASU 2011-11 to have a material impact on its consolidated financial position, results of operations, or cash flows. |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||
Sep. 28, 2013 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | In thousands) | September 28, 2013 | December 29, 2012 | ||||||
Raw materials and supplies | $ | 49,705 | $ | 46,114 | |||||
Work-in-process | 48,075 | 40,951 | |||||||
Finished goods | 142,710 | 148,014 | |||||||
Valuation reserves | (6,409 | ) | (5,645 | ) | |||||
Inventories | $ | 234,081 | $ | 229,434 | |||||
Industry_Segments_Tables
Industry Segments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Industry Segments [Abstract] | |||||||||||||||||
Summary of segment information | Summarized segment information is as follows: | ||||||||||||||||
For the Quarter Ended September 28, 2013 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 301,622 | $ | 230,396 | $ | (3,164 | ) | $ | 528,854 | ||||||||
Cost of goods sold | 258,035 | 201,399 | (3,132 | ) | 456,302 | ||||||||||||
Depreciation and amortization | 4,172 | 3,150 | 560 | 7,882 | |||||||||||||
Selling, general, and administrative expense | 20,736 | 5,779 | 6,406 | 32,921 | |||||||||||||
Gain on sale of plastic fittings manufacturing assets | (39,765 | ) | — | — | (39,765 | ) | |||||||||||
Impairment charges | 4,173 | 131 | — | 4,304 | |||||||||||||
Operating income | $ | 54,271 | $ | 19,937 | $ | (6,998 | ) | 67,210 | |||||||||
Interest expense | (1,243 | ) | |||||||||||||||
Other income, net | 842 | ||||||||||||||||
Income before income taxes | $ | 66,809 | |||||||||||||||
Segment information (continued): | |||||||||||||||||
For the Quarter Ended September 29, 2012 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 297,913 | $ | 221,468 | $ | (5,216 | ) | $ | 514,165 | ||||||||
Cost of goods sold | 257,978 | 196,789 | (5,049 | ) | 449,718 | ||||||||||||
Depreciation and amortization | 4,044 | 3,437 | 389 | 7,870 | |||||||||||||
Selling, general, and administrative expense | 18,298 | 6,821 | 7,001 | 32,120 | |||||||||||||
Operating income | $ | 17,593 | $ | 14,421 | $ | (7,557 | ) | 24,457 | |||||||||
Interest expense | (353 | ) | |||||||||||||||
Other income, net | 219 | ||||||||||||||||
Income before income taxes | $ | 24,323 | |||||||||||||||
For the Nine Months Ended September 28, 2013 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 942,109 | $ | 741,227 | $ | (12,510 | ) | $ | 1,670,826 | ||||||||
Cost of goods sold | 800,782 | 651,875 | (12,380 | ) | 1,440,277 | ||||||||||||
Depreciation and amortization | 12,861 | 9,854 | 1,649 | 24,364 | |||||||||||||
Selling, general, and administrative expense | 61,245 | 18,168 | 19,665 | 99,078 | |||||||||||||
Gain on sale of plastic fittings manufacturing assets | (39,765 | ) | — | — | (39,765 | ) | |||||||||||
Impairment charges | 4,173 | 131 | — | 4,304 | |||||||||||||
Insurance settlement | (103,895 | ) | — | (2,437 | ) | (106,332 | ) | ||||||||||
Operating income | $ | 206,708 | $ | 61,199 | $ | (19,007 | ) | 248,900 | |||||||||
Interest expense | (2,940 | ) | |||||||||||||||
Other income, net | 4,324 | ||||||||||||||||
Income before income taxes | $ | 250,284 | |||||||||||||||
Segment information (continued): | |||||||||||||||||
For the Nine Months Ended September 29, 2012 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 944,955 | $ | 760,995 | $ | (20,018 | ) | $ | 1,685,932 | ||||||||
Cost of goods sold | 808,631 | 676,635 | (19,522 | ) | 1,465,744 | ||||||||||||
Depreciation and amortization | 12,340 | 9,908 | 1,070 | 23,318 | |||||||||||||
Selling, general, and administrative expense | 57,028 | 20,249 | 19,932 | 97,209 | |||||||||||||
Insurance settlement | (1,500 | ) | — | — | (1,500 | ) | |||||||||||
Operating income | $ | 68,456 | $ | 54,203 | $ | (21,498 | ) | 101,161 | |||||||||
Interest expense | (5,711 | ) | |||||||||||||||
Other expense, net | 963 | ||||||||||||||||
Income before income taxes | $ | 96,413 | |||||||||||||||
Employee_Benefits_Tables
Employee Benefits (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Employee Benefits [Abstract] | |||||||||||||||||
Components of net periodic benefit costs | The Company sponsors several qualified and nonqualified pension plans and other postretirement benefit plans for certain of its employees. The components of net periodic benefit cost are as follows: | ||||||||||||||||
For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||
(In thousands) | September 28, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | |||||||||||||
Pension benefits: | |||||||||||||||||
Service cost | $ | 350 | $ | 339 | $ | 1,051 | $ | 1,016 | |||||||||
Interest cost | 2,023 | 2,185 | 6,070 | 6,556 | |||||||||||||
Expected return on plan assets | (2,845 | ) | (2,721 | ) | (8,535 | ) | (8,165 | ) | |||||||||
Amortization of prior service cost | 1 | 1 | 1 | 1 | |||||||||||||
Amortization of net loss | 984 | 966 | 2,954 | 2,900 | |||||||||||||
Net periodic benefit cost | $ | 513 | $ | 770 | $ | 1,541 | $ | 2,308 | |||||||||
Other benefits: | |||||||||||||||||
Service cost | $ | 69 | $ | 67 | $ | 207 | $ | 200 | |||||||||
Interest cost | 155 | 278 | 467 | 835 | |||||||||||||
Amortization of prior service cost (credit) | 2 | — | 5 | (1 | ) | ||||||||||||
Amortization of net gain | (41 | ) | (7 | ) | (125 | ) | (20 | ) | |||||||||
Net periodic benefit cost | $ | 185 | $ | 338 | $ | 554 | $ | 1,014 | |||||||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||
Derivative instruments designated as cash flow hedges and fair value hedges reflected in the financial statements | Derivative instruments designated as cash flow hedges under ASC 815 are reflected in the Condensed Consolidated Financial Statements as follows: | ||||||||||||||||
28-Sep-13 | |||||||||||||||||
(In thousands) | Location | Fair Value | |||||||||||||||
Commodity contracts | Other current liabilities: | Gain positions | $ | 222 | |||||||||||||
Loss positions | (362 | ) | |||||||||||||||
29-Dec-12 | |||||||||||||||||
(In thousands) | Location | Fair Value | |||||||||||||||
Commodity contracts | Other current liabilities: | Gain positions | $ | 172 | |||||||||||||
Loss positions | (420 | ) | |||||||||||||||
Derivative instruments designated as fair value hedges under ASC 815 are reflected in the Condensed Consolidated Financial Statements as follows: | |||||||||||||||||
28-Sep-13 | |||||||||||||||||
(In thousands) | Location | Fair Value | |||||||||||||||
Commodity contracts | Other current liabilities: | Gain positions | $ | 203 | |||||||||||||
Loss positions | (1,355 | ) | |||||||||||||||
29-Dec-12 | |||||||||||||||||
(In thousands) | Location | Fair Value | |||||||||||||||
Commodity contracts | Other current assets: | Gain positions | $ | 1,047 | |||||||||||||
Loss positions | (548 | ) | |||||||||||||||
Summary of activities related to derivative instruments classified as cash flow hedges | The following tables summarize activities related to the Company’s derivative instruments classified as cash flow hedges in accordance with ASC 815: | ||||||||||||||||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion), Net of Tax | |||||||||||||||||
For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||
(In thousands) | September 28, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | |||||||||||||
Commodity contracts | $ | 474 | $ | 562 | $ | (3,056 | ) | $ | 455 | ||||||||
Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion), Net of Tax | |||||||||||||||||
For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||
(In thousands) | September 28, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | |||||||||||||
Commodity contracts: | |||||||||||||||||
Cost of goods sold | $ | 788 | $ | (2 | ) | $ | 3,309 | $ | 428 | ||||||||
The following tables summarize the activity related to the interest rate swap: | |||||||||||||||||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion), Net of Tax | |||||||||||||||||
For the Quarter Ended | For the Nine Months Ended | ||||||||||||||||
(In thousands) | September 28, 2013 | September 29, 2012 | September 28, 2013 | September 29, 2012 | |||||||||||||
Interest rate swap | $ | (747 | ) | $ | — | $ | 649 | $ | — | ||||||||
Schedule of fair value hedges | The following tables summarize the gains (losses) on the Company’s fair value hedges: | ||||||||||||||||
(Losses) Gains on Fair Value Hedges for the | |||||||||||||||||
Three Months Ended September 28, 2013 | |||||||||||||||||
(In thousands) | Location | Amount | |||||||||||||||
(Loss) on the derivatives in designated and qualifying fair value hedges: | |||||||||||||||||
Commodity Contracts | Cost of goods sold | $ | (846 | ) | |||||||||||||
Gain on the hedged item in designated and qualifying fair value hedges: | |||||||||||||||||
Inventory | Cost of goods sold | $ | 1,042 | ||||||||||||||
(Losses) Gains on Fair Value Hedges for the | |||||||||||||||||
Three Months Ended September 29, 2012 | |||||||||||||||||
(In thousands) | Location | Amount | |||||||||||||||
(Loss) on the derivatives in designated and qualifying fair value hedges: | |||||||||||||||||
Commodity Contracts | Cost of goods sold | $ | (2,261 | ) | |||||||||||||
Gain on the hedged item in designated and qualifying fair value hedges: | |||||||||||||||||
Inventory | Cost of goods sold | $ | 2,344 | ||||||||||||||
Gains (Losses) on Fair Value Hedges for the | |||||||||||||||||
Nine Months Ended September 28, 2013 | |||||||||||||||||
(In thousands) | Location | Amount | |||||||||||||||
Gain on the derivatives in designated and qualifying fair value hedges: | |||||||||||||||||
Commodity Contracts | Cost of goods sold | $ | 4,344 | ||||||||||||||
(Loss) on the hedged item in designated and qualifying fair value hedges: | |||||||||||||||||
Inventory | Cost of goods sold | $ | (3,770 | ) | |||||||||||||
(Losses) Gains on Fair Value Hedges for the | |||||||||||||||||
Nine Months Ended September 29, 2012 | |||||||||||||||||
(In thousands) | Location | Amount | |||||||||||||||
(Loss) on the derivatives in designated and qualifying fair value hedges: | |||||||||||||||||
Commodity Contracts | Cost of goods sold | $ | (2,261 | ) | |||||||||||||
Gain on the hedged item in designated and qualifying fair value hedges: | |||||||||||||||||
Inventory | Cost of goods sold | $ | 2,344 |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 28, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | |||||||||||||||||||||
Schedule of changes in accumulated other comprehensive income (AOCI) and Reclassification adjustments out of AOCI | Changes in accumulated OCI by component, net of taxes and noncontrolling interest, were as follows: | ||||||||||||||||||||
(In thousands) | Cumulative Translation Adjustment | Unrealized (Losses)/Gains on Derivatives | Minimum Pension/OPEB Liability Adjustment | Unrealized Gains on Equity Investments | Total | ||||||||||||||||
29-Dec-12 | $ | (3,033 | ) | $ | (166 | ) | $ | (39,527 | ) | $ | 103 | $ | (42,623 | ) | |||||||
Other comprehensive income before reclassifications | 211 | 4,314 | 79 | 105 | 4,709 | ||||||||||||||||
Amounts reclassified from accumulated OCI | — | (3,309 | ) | 1,896 | — | (1,413 | ) | ||||||||||||||
Net current-period other comprehensive income | 211 | 1,005 | 1,975 | 105 | 3,296 | ||||||||||||||||
28-Sep-13 | $ | (2,822 | ) | $ | 839 | $ | (37,552 | ) | $ | 208 | $ | (39,327 | ) | ||||||||
Reclassification adjustments out of accumulated OCI were as follows: | |||||||||||||||||||||
Amount reclassified from Accumulated OCI | |||||||||||||||||||||
(In thousands) | For the Quarter Ended September 28, 2013 | For the Nine Months Ended September 28, 2013 | Affected Line Item | ||||||||||||||||||
Unrealized gains on derivatives: | |||||||||||||||||||||
Closed positions, commodity contracts | $ | 1,046 | $ | 4,922 | Cost of goods sold | ||||||||||||||||
(258 | ) | (1,613 | ) | Income tax expense | |||||||||||||||||
788 | 3,309 | Net of tax | |||||||||||||||||||
— | — | Noncontrolling interest | |||||||||||||||||||
$ | 788 | $ | 3,309 | Net of tax and noncontrolling interest | |||||||||||||||||
Amortization of employee benefit items: | |||||||||||||||||||||
Amortization of net loss | $ | 946 | $ | 2,835 | Selling, general, and administrative expense | ||||||||||||||||
(318 | ) | (939 | ) | Income tax expense | |||||||||||||||||
628 | 1,896 | Net of tax | |||||||||||||||||||
— | — | Noncontrolling interest | |||||||||||||||||||
$ | 628 | $ | 1,896 | Net of tax and noncontrolling interest | |||||||||||||||||
Earnings_per_Common_Share_Deta
Earnings per Common Share (Details) (Stock Based Awards [Member]) | 3 Months Ended |
In Thousands, unless otherwise specified | Sep. 28, 2013 |
Stock Based Awards [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Stock based awards excluded from computation of diluted earnings (in shares) | 136 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 9 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Dec. 29, 2012 | Dec. 31, 2011 | Dec. 25, 2010 |
Other [Abstract] | ||||
Payments required to be made under guarantees, maximum | $10 | |||
Non-Operating Properties [Member] | Lead Refinery Site [Member] | ||||
Lead Refinery Site [Abstract] | ||||
Environmental spending | 0.1 | 0.1 | 0.1 | |
Mitigation estimates minimum | 2.4 | |||
Mitigation estimates maximum | 3.6 | |||
Estimated number of years until mitigation resolution | 20 Years | |||
EPA's estimated cost of site remediation | $29.90 |
Insurance_Claims_Details
Insurance Claims (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | |||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Jun. 29, 2013 | Mar. 31, 2012 | |
Wynne Arkansas Manufacturing Operation [Member] | Fulton Mississippi Copper Tube Facility [Member] | |||||
Business Interruption Loss [Line Items] | ||||||
Proceeds from settlement of insurance claim | $127,300,000 | |||||
Deductible for insurance claim | 500,000 | |||||
Pre-tax gain on insurance settlement | $0 | $0 | $106,332,000 | $1,500,000 | $106,300,000 | $1,500,000 |
Gain per diluted share, after tax (in dollars per share) | $2.33 |
Inventories_Details
Inventories (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2012 | Dec. 31, 2011 | Sep. 28, 2013 | Dec. 29, 2012 | |
Inventories [Abstract] | ||||
Raw materials and supplies | $49,705,000 | $46,114,000 | ||
Work-in-process | 48,075,000 | 40,951,000 | ||
Finished goods | 142,710,000 | 148,014,000 | ||
Valuation reserves | -6,409,000 | -5,645,000 | ||
Inventories | 234,081,000 | 229,434,000 | ||
Deferred LIFO Gain | 8,000,000 | |||
Effect of liquidation of LIFO layers on cost of sales | $8,000,000 | |||
Effect of liquidation of LIFO layers per diluted share after tax (in dollars per share) | $0.13 |
Industry_Segments_Details
Industry Segments (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Summary of segment information [Abstract] | ||||
Net sales | $528,854 | $514,165 | $1,670,826 | $1,685,932 |
Cost of goods sold | 456,302 | 449,718 | 1,440,277 | 1,465,744 |
Depreciation and amortization | 7,882 | 7,870 | 24,364 | 23,318 |
Selling, general, and administrative expense | 32,921 | 32,120 | 99,078 | 97,209 |
Gain on sale of plastics fittings manufacturing assets | -39,765 | 0 | -39,765 | 0 |
Impairment charges | 4,304 | 0 | 4,304 | 0 |
Insurance settlement | 0 | 0 | -106,332 | -1,500 |
Operating income | 67,210 | 24,457 | 248,900 | 101,161 |
Interest expense | -1,243 | -353 | -2,940 | -5,711 |
Other income (expense,) net | 842 | 219 | 4,324 | 963 |
Income before income taxes | 66,809 | 24,323 | 250,284 | 96,413 |
Plumbing and Refrigeration Segment [Member] | ||||
Summary of segment information [Abstract] | ||||
Net sales | 301,622 | 297,913 | 942,109 | 944,955 |
Cost of goods sold | 258,035 | 257,978 | 800,782 | 808,631 |
Depreciation and amortization | 4,172 | 4,044 | 12,861 | 12,340 |
Selling, general, and administrative expense | 20,736 | 18,298 | 61,245 | 57,028 |
Gain on sale of plastics fittings manufacturing assets | -39,765 | -39,765 | ||
Impairment charges | 4,173 | 4,173 | ||
Insurance settlement | -103,895 | -1,500 | ||
Operating income | 54,271 | 17,593 | 206,708 | 68,456 |
OEM Segment [Member] | ||||
Summary of segment information [Abstract] | ||||
Net sales | 230,396 | 221,468 | 741,227 | 760,995 |
Cost of goods sold | 201,399 | 196,789 | 651,875 | 676,635 |
Depreciation and amortization | 3,150 | 3,437 | 9,854 | 9,908 |
Selling, general, and administrative expense | 5,779 | 6,821 | 18,168 | 20,249 |
Gain on sale of plastics fittings manufacturing assets | 0 | 0 | ||
Impairment charges | 131 | 131 | ||
Insurance settlement | 0 | 0 | ||
Operating income | 19,937 | 14,421 | 61,199 | 54,203 |
Corporate and Eliminations [Member] | ||||
Summary of segment information [Abstract] | ||||
Net sales | -3,164 | -5,216 | -12,510 | -20,018 |
Cost of goods sold | -3,132 | -5,049 | -12,380 | -19,522 |
Depreciation and amortization | 560 | 389 | 1,649 | 1,070 |
Selling, general, and administrative expense | 6,406 | 7,001 | 19,665 | 19,932 |
Gain on sale of plastics fittings manufacturing assets | 0 | 0 | ||
Impairment charges | 0 | 0 | ||
Insurance settlement | -2,437 | 0 | ||
Operating income | ($6,998) | ($7,557) | ($19,007) | ($21,498) |
Debt_Details
Debt (Details) (Mueller Xingrong Line of Credit [Member]) | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 24, 2013 | Sep. 24, 2013 |
USD ($) | USD ($) | CNY | |
Bank | |||
Line of Credit Facility [Line Items] | |||
Number of banks in the credit agreement syndicate | 4 | ||
Line of credit facility maximum borrowing capacity | $74 | 450 | |
Maturity date | 24-Sep-14 | ||
Initial line of credit facility maximum borrowing capacity | 350 | ||
Debt, stated interest rate (in hundredths) | 5.88% | ||
Borrowings outstanding | $32 |
Employee_Benefits_Details
Employee Benefits (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Pension benefits [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | $350 | $339 | $1,051 | $1,016 |
Interest cost | 2,023 | 2,185 | 6,070 | 6,556 |
Expected return on plan assets | -2,845 | -2,721 | -8,535 | -8,165 |
Amortization of prior service cost (credit) | 1 | 1 | 1 | 1 |
Amortization of net gain (loss) | 984 | 966 | 2,954 | 2,900 |
Net periodic benefit cost | 513 | 770 | 1,541 | 2,308 |
Other benefits [Member] | ||||
Components of net periodic benefit cost [Abstract] | ||||
Service cost | 69 | 67 | 207 | 200 |
Interest cost | 155 | 278 | 467 | 835 |
Amortization of prior service cost (credit) | 2 | 0 | 5 | -1 |
Amortization of net gain (loss) | -41 | -7 | -125 | -20 |
Net periodic benefit cost | $185 | $338 | $554 | $1,014 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 |
Income Taxes [Abstract] | ||||
Effective tax rate (in hundredths) | 40.00% | 36.00% | 37.00% | 31.00% |
Impairment of goodwill | $1.80 | $1.80 | ||
Increase (decrease) in valuation allowances | 1 | -0.4 | -0.5 | |
Provision for state income taxes, net of federal benefit | 1.2 | 7.4 | 2.7 | |
Effect of foreign adjustments | 0.4 | 1.1 | 3.7 | |
Deduction due to U.S. production activities | 1 | 3.9 | 2.2 | |
Unrecognized tax benefits | $2.80 | $1.30 | $2.80 | $1.30 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) (USD $) | 9 Months Ended | |||||
Sep. 28, 2013 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | Dec. 29, 2012 | Sep. 28, 2013 | |
Interest Rate Swap [Member] | Other Current Asset [Member] | Other Current Liabilities [Member] | Other Current Liabilities [Member] | Other Current Liabilities [Member] | ||
Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | |||
Fair Value Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Fair Value Hedging [Member] | |||
Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | ||||||
Net value in OCI to be reclassified into earnings in next twelve months | $172,000 | |||||
Open future contracts to purchase copper | 18,500,000 | |||||
Time period for open copper future contract purchases | 18 months | |||||
Fair value of future contracts with loss position | 140,000 | |||||
Derivatives, Fair Value [Line Items] | ||||||
Other assets: gain positions | 1,000,000 | |||||
Other current assets: gain positions | 1,047,000 | |||||
Other current assets: loss positions | -548,000 | |||||
Other current liability: gain positions | 222,000 | 172,000 | 203,000 | |||
Other current liability: loss positions | -362,000 | -420,000 | -1,355,000 | |||
Open future contracts to sell copper | 61,000,000 | |||||
Time period for open future contract sales | 6 months | |||||
Restricted cash related to open future contracts | $2,900,000 |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities Part 2 (Details) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||||||||
Sep. 28, 2013 | Sep. 28, 2013 | Jan. 12, 2015 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Feb. 20, 2013 | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | |
USD ($) | EUR (€) | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Inventory [Member] | Inventory [Member] | Inventory [Member] | Inventory [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||
Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | USD ($) | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |||||
USD ($) | USD ($) | USD ($) | USD ($) | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | USD ($) | USD ($) | USD ($) | USD ($) | ||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||
Gain (Loss) Recognized in Accumulated OCI (Effective Portion), Net of Tax | $474,000 | $562,000 | ($3,056,000) | $455,000 | ($747,000) | $0 | $649,000 | $0 | |||||||||||||||||
Loss (Gain) Reclassified from Accumulated OCI into Income (Effective Portion), Net of Tax | 788,000 | -2,000 | 3,309,000 | 428,000 | |||||||||||||||||||||
Fair value of futures contracts loss position | 1,200,000 | ||||||||||||||||||||||||
Gain (loss) on the derivatives in designated and qualifying fair value hedges | -846,000 | -2,261,000 | 4,344,000 | -2,261,000 | 1,042,000 | 2,344,000 | -3,770,000 | 2,344,000 | |||||||||||||||||
Open forward contracts to purchase | 13,700,000 | ||||||||||||||||||||||||
Time period for open forward contracts to purchase | 18 months | 18 months | |||||||||||||||||||||||
Period of interest rate swap | 2 years | ||||||||||||||||||||||||
Interest rate swap, notional amount | $200,000,000 | ||||||||||||||||||||||||
Interest rate swap, fixed interest rate (in hundredths) | 1.40% | ||||||||||||||||||||||||
Term Loan Facility, all-in fixed interest rate (in hundredths) | 2.70% | ||||||||||||||||||||||||
Interest rate swap, maturity date | 11-Dec-17 |
Acquisitions_Details
Acquisitions (Details) (Westermeyer Industries, Inc. [Member], USD $) | Aug. 16, 2012 |
In Millions, unless otherwise specified | |
Westermeyer Industries, Inc. [Member] | |
Business Acquisition [Line Items] | |
Portion of outstanding stock acquired (in hundredths) | 100.00% |
Cost of acquisition | $11.50 |
Fair value of assets acquired | 7.5 |
Fair value of assets acquired - receivables | 2 |
Fair value of assets acquired - inventories | 1.9 |
Fair value of assets acquired - property, plant and equipment | 3.6 |
Fair value of assets acquired - current liabilities | 1 |
Remaining purchase price allocated to goodwill | 2.4 |
Remaining purchase price allocated to other intangible assets | $2.70 |
Disposal_of_LongLived_Assets_D
Disposal of Long-Lived Assets (Details) (USD $) | 3 Months Ended | 9 Months Ended |
Sep. 28, 2013 | Sep. 28, 2013 | |
Sale of Property [Abstract] | ||
Total sale price of property | $66,200,000 | |
Cash proceeds from the sales of property | 61,200,000 | 61,200,000 |
Amount receivable due to sale of property | 5,000,000 | |
Pre-tax gain from sale of property | 39,800,000 | |
Amount of pre-diluted share after tax | 0.81 | |
Extended supply agreement term | 5 years | |
Net book value of assets disposed | 15,900,000 | 15,900,000 |
Goodwill allocated to disposal group. | 10,500,000 | 10,500,000 |
Impairment charge recognized on fair value of disposed assets. | $3,200,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | ||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | ($42,623) | |||||||
Other comprehensive income before reclassifications | 4,709 | |||||||
Amounts reclassified from accumulated OCI | -1,413 | |||||||
Net current-period other comprehensive income | 3,296 | |||||||
Ending balance | -39,327 | -39,327 | ||||||
Reclassification adjustments out of accumulated OCI [Abstract] | ||||||||
Cost of goods sold | -456,302 | -449,718 | -1,440,277 | -1,465,744 | ||||
Net of tax and noncontrolling interest | 531 | [1] | 648 | [2] | 1,005 | [3] | 957 | [4] |
Selling, general, and administrative expense | 32,921 | 32,120 | 99,078 | 97,209 | ||||
Amounts reclassified from accumulated other comprehensive income to: [Member] | ||||||||
Reclassification adjustments out of accumulated OCI [Abstract] | ||||||||
Cost of goods sold | 1,046 | 4,922 | ||||||
Income tax expense | -258 | -1,613 | ||||||
Net of tax | 788 | 3,309 | ||||||
Noncontrolling interest | 0 | 0 | ||||||
Net of tax and noncontrolling interest | 788 | 3,309 | ||||||
Selling, general, and administrative expense | 946 | 2,835 | ||||||
Income tax expense (benefit) | -318 | -939 | ||||||
Net of tax | 628 | 1,896 | ||||||
Noncontrolling interest | 0 | 0 | ||||||
Net of tax and noncontrolling interest | 628 | 1,896 | ||||||
Cumulative translation adjustment [Member] | ||||||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | -3,033 | |||||||
Other comprehensive income before reclassifications | 211 | |||||||
Amounts reclassified from accumulated OCI | 0 | |||||||
Net current-period other comprehensive income | 211 | |||||||
Ending balance | -2,822 | -2,822 | ||||||
Unrealized (losses)/gains on derivatives [Member] | ||||||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | -166 | |||||||
Other comprehensive income before reclassifications | 4,314 | |||||||
Amounts reclassified from accumulated OCI | -3,309 | |||||||
Net current-period other comprehensive income | 1,005 | |||||||
Ending balance | 839 | 839 | ||||||
Minimum pension/OPEB liability adjustment [Member] | ||||||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | -39,527 | |||||||
Other comprehensive income before reclassifications | 79 | |||||||
Amounts reclassified from accumulated OCI | 1,896 | |||||||
Net current-period other comprehensive income | 1,975 | |||||||
Ending balance | -37,552 | -37,552 | ||||||
Unrealized gains on equity investments [Member] | ||||||||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||||||||
Beginning balance | 103 | |||||||
Other comprehensive income before reclassifications | 105 | |||||||
Amounts reclassified from accumulated OCI | 0 | |||||||
Net current-period other comprehensive income | 105 | |||||||
Ending balance | $208 | $208 | ||||||
[1] | Net of tax of $(280) | |||||||
[2] | Net of tax of $(388) | |||||||
[3] | Net of tax of $(607) | |||||||
[4] | Net of tax of $(554) |
Subsequent_Event_Details
Subsequent Event (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | 12 Months Ended | ||||
Sep. 28, 2013 | Sep. 29, 2012 | Sep. 28, 2013 | Sep. 29, 2012 | Aug. 31, 2013 | Oct. 17, 2013 | Dec. 31, 2012 | Oct. 18, 2013 | |
USD ($) | USD ($) | USD ($) | USD ($) | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | Subsequent Event [Member] | |
Howell Metal Company [Member] | Howell Metal Company [Member] | KME Yorkshire Limited [Member] | KME Yorkshire Limited [Member] | |||||
USD ($) | USD ($) | GBP (£) | GBP (£) | |||||
Subsequent Event [Line Items] | ||||||||
Purchase price of Capital Stock | $58,500,000 | |||||||
Net sales | 528,854,000 | 514,165,000 | 1,670,826,000 | 1,685,932,000 | 156,300,000 | 119,000,000 | ||
Purchase price | £ 18,000,000 |