Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 28, 2015 | Apr. 20, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MUELLER INDUSTRIES INC | |
Entity Central Index Key | 89439 | |
Current Fiscal Year End Date | -14 | |
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 | 56,969,586 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 28-Mar-15 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||
Net sales | $537,242 | $574,374 |
Cost of goods sold | 460,834 | 495,777 |
Depreciation and amortization | 7,853 | 8,107 |
Selling, general, and administrative expense | 32,831 | 32,183 |
Operating income | 35,724 | 38,307 |
Interest expense | -2,076 | -1,026 |
Other income, net | 105 | 88 |
Income before income taxes | 33,753 | 37,369 |
Income tax expense | -11,413 | -12,415 |
Consolidated net income | 22,340 | 24,954 |
Net income attributable to noncontrolling interest | -362 | -248 |
Net income attributable to Mueller Industries, Inc. | $21,978 | $24,706 |
Weighted average shares for basic earnings per share (in shares) | 56,193 | 55,918 |
Effect of dilutive stock-based awards (in shares) | 731 | 853 |
Adjusted weighted average shares for diluted earnings per share (in shares) | 56,924 | 56,771 |
Basic earnings per share (in dollars per share) | $0.39 | $0.44 |
Diluted earnings per share (in dollars per share) | $0.39 | $0.44 |
Dividends per share (in dollars per share) | $0.08 | $0.08 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Consolidated net income | $22,340 | $24,954 |
Other comprehensive (loss) income, net of tax: | ||
Foreign currency translation | -8,404 | 1,167 |
Net change with respect to derivative instruments and hedging activities, net of tax of $274 in 2015 and $590 in 2014 | -198 | -1,116 |
Net actuarial loss on pension and postretirement obligations, net of tax of $(501) in 2015 and $28 in 2014 | 1,416 | 3 |
Other, net | -27 | -15 |
Total other comprehensive (loss) income | -7,213 | 39 |
Comprehensive income | 15,127 | 24,993 |
Comprehensive loss (income) attributable to noncontrolling interest | 345 | -253 |
Comprehensive income attributable to Mueller Industries, Inc. | $15,472 | $24,740 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Net change with respect to derivative instruments and hedging activities, tax | $274 | $590 |
Net actuarial loss on pension and postretirement obligations, tax | ($501) | $28 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $326,894 | $352,134 |
Accounts receivable, less allowance for doubtful accounts of $565 in 2015 and $666 in 2014 | 307,984 | 275,065 |
Inventories | 246,395 | 256,585 |
Other current assets | 59,858 | 57,429 |
Total current assets | 941,131 | 941,213 |
Property, plant, and equipment, net | 244,909 | 245,910 |
Goodwill | 102,582 | 102,909 |
Other assets | 36,208 | 38,064 |
Total assets | 1,324,830 | 1,328,096 |
Current liabilities: | ||
Current portion of debt | 31,676 | 36,194 |
Accounts payable | 100,813 | 100,735 |
Accrued wages and other employee costs | 30,070 | 41,595 |
Other current liabilities | 61,601 | 59,545 |
Total current liabilities | 224,160 | 238,069 |
Long-term debt, less current portion | 205,000 | 205,250 |
Pension liabilities | 18,461 | 20,070 |
Postretirement benefits other than pensions | 21,368 | 21,486 |
Environmental reserves | 21,832 | 21,842 |
Deferred income taxes | 23,100 | 24,556 |
Other noncurrent liabilities | 3,107 | 1,389 |
Total liabilities | 517,028 | 532,662 |
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 80,183,004; outstanding 56,943,098 in 2015 and 56,901,445 in 2014 | 802 | 802 |
Additional paid-in capital | 269,636 | 268,575 |
Retained earnings | 1,010,505 | 992,798 |
Accumulated other comprehensive loss | -49,429 | -42,923 |
Treasury common stock, at cost | -456,651 | -457,102 |
Total Mueller Industries, Inc. stockholders' equity | 774,863 | 762,150 |
Noncontrolling interest | 32,939 | 33,284 |
Total equity | 807,802 | 795,434 |
Commitments and contingencies | ||
Total liabilities and equity | $1,324,830 | $1,328,096 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Current assets: | ||
Allowance for doubtful accounts | $565 | $666 |
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) | 80,183,004 | 80,183,004 |
Common stock, shares outstanding (in shares) | 56,943,098 | 56,901,445 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Cash flows from operating activities | ||
Consolidated net income | $22,340 | $24,954 |
Reconciliation of consolidated net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 8,015 | 8,165 |
Stock-based compensation expense | 1,349 | 1,194 |
Loss (gain) on disposal of properties | 1 | -1,413 |
Deferred income taxes | -570 | -1,484 |
Income tax benefit from exercise of stock options | -69 | -156 |
Changes in assets and liabilities, net of business acquired: | ||
Receivables | -36,692 | -49,482 |
Inventories | 7,534 | -10,055 |
Other assets | 9,257 | -14,467 |
Current liabilities | -7,389 | -1,337 |
Other liabilities | -131 | -989 |
Other, net | 245 | 398 |
Net cash provided by (used in) operating activities | 3,890 | -44,672 |
Cash flows from investing activities | ||
Acquisition of business | 0 | -30,137 |
Capital expenditures | -7,392 | -9,199 |
Net (deposits into) withdrawals from restricted cash | -12,593 | 1,771 |
Proceeds from the sales of assets | 492 | 4,833 |
Net cash used in investing activities | -19,493 | -32,732 |
Cash flows from financing activities | ||
Repayments of long-term debt | -250 | -250 |
Dividends paid to stockholders of Mueller Industries, Inc. | -4,216 | -4,196 |
Repayment of debt by joint venture, net | -3,817 | -1,407 |
Issuance of debt | 0 | 4,373 |
Net cash used to settle stock-based awards | 93 | 224 |
Income tax benefit from exercise of stock options | 69 | 156 |
Net cash used in financing activities | -8,121 | -1,100 |
Effect of exchange rate changes on cash | -1,516 | 179 |
Decrease in cash and cash equivalents | -25,240 | -78,325 |
Cash and cash equivalents at the beginning of the period | 352,134 | 311,800 |
Cash and cash equivalents at the end of the period | $326,894 | $233,475 |
Earnings_per_Common_Share
Earnings per Common Share | 3 Months Ended |
Mar. 28, 2015 | |
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 180 thousand stock-based awards were excluded from the computation of diluted earnings per share for the quarter ended March 28, 2015 because they were antidilutive. |
Commitments_and_Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 28, 2015 | |
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. | |
United States Department of Commerce Antidumping Review | |
On December 23, 2009, the Department of Commerce (DOC) initiated an antidumping administrative review of the antidumping duty order covering circular welded non-alloy steel pipe and tube from Mexico for the November 1, 2008 through October 31, 2009 period of review. The DOC selected Mueller Comercial de Mexico, S. de R.L. de C.V. (Mueller Comercial) as a respondent in the review. On June 21, 2011, the DOC published the final results of the review and assigned Mueller Comercial an antidumping duty rate of 19.8 percent. On August 22, 2011, the Company appealed the final results to the U.S. Court of International Trade (CIT). On December 21, 2012, the CIT issued a decision upholding the DOC’s final results in part. The CIT issued its final judgment on May 2, 2013. On May 6, 2013, the Company appealed the CIT decision to the U.S. Court of Appeals for the Federal Circuit (Federal Circuit). On May 29, 2014, the Federal Circuit issued its decision vacating the CIT’s decision and remanding the case back to the DOC to reconsider the Company’s rate. The Company and the United States have reached an agreement to settle the appeal. In accordance with that agreement, on February 18, 2015, the DOC published the amended final results of the review and assigned Mueller Comercial an amended antidumping rate of 13.70 percent. The Company anticipates that certain of its subsidiaries will incur antidumping duties on subject imports made during the period of review and, as such, has previously established a reserve of approximately $1.1 million for this matter. | |
Subsequent to October 31, 2009, Mueller Comercial did not ship subject merchandise to the United States. Therefore, there is zero antidumping duty liability for periods of review after October 31, 2009. | |
Guarantees | |
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 March 28, 2015 were $10.2 million. |
Inventories
Inventories | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Note 3 – Inventories | ||||||||
(In thousands) | March 28, 2015 | December 27, 2014 | |||||||
Raw materials and supplies | $ | 53,327 | $ | 53,586 | |||||
Work-in-process | 30,912 | 39,707 | |||||||
Finished goods | 167,033 | 168,481 | |||||||
Valuation reserves | (4,877 | ) | (5,189 | ) | |||||
Inventories | $ | 246,395 | $ | 256,585 | |||||
Industry_Segments
Industry Segments | 3 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Industry Segments [Abstract] | |||||||||||||||||
Industry Segments | Note 4 – 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. | |||||||||||||||||
SPD manufactures copper tube and fittings, plastic fittings, and line sets. These products are manufactured in the U.S. SPD also imports and resells brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products. Outside the U.S., the Company’s European Operations manufacture copper tube, which is sold primarily in Europe. Mexican Operations consist of pipe nipple manufacturing and import distribution businesses including product lines of malleable iron fittings and other plumbing specialties. 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. For the quarter ended March 29, 2014, cost of goods sold included a decrease in accruals related to import duties of $3.1 million. | |||||||||||||||||
IPD manufactures brass rod, impact extrusions, and forgings, as well as 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, gas appliance, and barbecue grill markets and specialty copper, copper-alloy, and aluminum tube. Mueller-Xingrong manufactures engineered copper tube primarily for air-conditioning applications. These products are sold primarily to OEM customers. | |||||||||||||||||
Summarized segment information is as follows: | |||||||||||||||||
For the Quarter Ended March 28, 2015 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 305,017 | $ | 235,317 | $ | (3,092 | ) | $ | 537,242 | ||||||||
Cost of goods sold | 260,463 | 203,433 | (3,062 | ) | 460,834 | ||||||||||||
Depreciation and amortization | 4,523 | 2,855 | 475 | 7,853 | |||||||||||||
Selling, general, and administrative expense | 20,540 | 6,481 | 5,810 | 32,831 | |||||||||||||
Operating income | 19,491 | 22,548 | (6,315 | ) | 35,724 | ||||||||||||
Interest expense | (2,076 | ) | |||||||||||||||
Other income, net | 105 | ||||||||||||||||
Income before income taxes | $ | 33,753 | |||||||||||||||
For the Quarter Ended March 29, 2014 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 338,027 | $ | 240,030 | $ | (3,683 | ) | $ | 574,374 | ||||||||
Cost of goods sold | 289,025 | 210,403 | (3,651 | ) | 495,777 | ||||||||||||
Depreciation and amortization | 4,420 | 3,083 | 604 | 8,107 | |||||||||||||
Selling, general, and administrative expense | 20,697 | 5,258 | 6,228 | 32,183 | |||||||||||||
Operating income | 23,885 | 21,286 | (6,864 | ) | 38,307 | ||||||||||||
Interest expense | (1,026 | ) | |||||||||||||||
Other income, net | 88 | ||||||||||||||||
Income before income taxes | $ | 37,369 | |||||||||||||||
Benefits_Plans
Benefits Plans | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Benefits Plans [Abstract] | |||||||||
Benefits Plans | Note 5 –Benefits Plans | ||||||||
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 (income) are as follows: | |||||||||
For the Quarter Ended | |||||||||
(In thousands) | March 28, 2015 | March 29, 2014 | |||||||
Pension benefits: | |||||||||
Service cost | $ | 272 | $ | 222 | |||||
Interest cost | 2,054 | 2,068 | |||||||
Expected return on plan assets | (2,654 | ) | (3,201 | ) | |||||
Amortization of net loss | 714 | 188 | |||||||
Net periodic benefit cost (income) | $ | 386 | $ | (723 | ) | ||||
Other benefits: | |||||||||
Service cost | $ | 96 | $ | 89 | |||||
Interest cost | 196 | 177 | |||||||
Amortization of prior service cost | 2 | — | |||||||
Amortization of net loss (gain) | 3 | (64 | ) | ||||||
Net periodic benefit cost | $ | 297 | $ | 202 | |||||
Income_Taxes
Income Taxes | 3 Months Ended |
Mar. 28, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 6 – Income Taxes |
The Company’s effective tax rate for the first quarter of 2015 was 34 percent compared with 33 percent for the same period last year. The difference between the effective tax rate and the amount computed using the U.S. federal statutory tax rate for the first quarter of 2015 was primarily attributable to reductions for the U.S. production activities deduction of $1.0 million and the effect of foreign tax rates lower than statutory tax rates of $0.5 million. These items were partially offset by the provision for state income taxes, net of the federal benefit, of $0.8 million. | |
For the first quarter of 2014, the difference between the effective tax rate and what would be computed using the U.S. federal statutory tax rate was attributable to reductions related to the U.S. production activities deduction of $1.2 million and decreases in valuation allowances of $0.9 million. These items were partially offset by the provision for state income taxes, net of the federal benefit, of $1.3 million. | |
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 2011 and all subsequent years and is open for certain state and foreign returns for earlier tax years due to ongoing audits and differing statute periods. The Internal Revenue Service has audited the 2012 federal income tax return, the results of which were immaterial to the Company’s financial position, results of operations, and cash flows. 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 | 3 Months Ended | ||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||
Derivative Instruments and Hedging Activities | Note 7 – Derivative Instruments and Hedging Activities | ||||||||||||||||||
The Company’s earnings and cash flows are subject to fluctuations due to changes in commodity prices, foreign currency exchange rates, and interest rates. The Company uses derivative instruments such as commodity futures contracts, foreign currency forward contracts, and interest rate swaps to manage these exposures. | |||||||||||||||||||
All derivatives are recognized in the Condensed Consolidated Balance Sheets at their fair value. On the date the derivative contract is entered into, it is designated as (i) a hedge of a forecasted transaction or the variability of cash flow to be paid (cash flow hedge), or (ii) a hedge of the fair value of a recognized asset or liability (fair value hedge). Changes in the fair value of a derivative that is qualified, designated and highly effective as a cash flow hedge are recorded in accumulated other comprehensive income (AOCI), to the extent effective, until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of a derivative that is qualified, designated and highly effective as a fair value hedge, along with the gain or loss on the hedged recognized asset or liability that is attributable to the hedged risk, are recorded in current earnings. Changes in the fair value of undesignated derivative instruments and the ineffective portion of designated derivative instruments are reported in current earnings. | |||||||||||||||||||
The Company documents all relationships between hedging instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivatives that are designated as fair value hedges to specific assets and liabilities in the Condensed Consolidated Balance Sheets and linking cash flow hedges to specific forecasted transactions or variability of cash flow. | |||||||||||||||||||
The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the designated derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flow or fair values of hedged items. When a derivative is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable of occurring, hedge accounting is discontinued prospectively, in accordance with the derecognition criteria for hedge accounting. | |||||||||||||||||||
Commodity Futures Contracts | |||||||||||||||||||
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. These futures contracts have been designated as cash flow hedges. | |||||||||||||||||||
At March 28, 2015, the Company held open futures contracts to purchase approximately $32.4 million of copper over the next nine months related to fixed price sales orders. The fair value of those futures contracts was a $354 thousand net gain position, which was determined by obtaining quoted market prices (Level 1 hierarchy as defined by ASC 820, Fair Value Measurements and Disclosures (ASC 820)). In the next twelve months, the Company will reclassify into earnings realized gains or losses relating to cash flow hedges. At March 28, 2015, this amount was approximately $317 thousand of deferred net gains, net of tax. | |||||||||||||||||||
The Company may also enter into futures contracts to protect the value of inventory against market fluctuations. These futures contracts have been designated as fair value hedges. | |||||||||||||||||||
At March 28, 2015, the Company held open futures contracts to sell approximately $20.1 million of copper over the next four months related to copper inventory. The fair value of those futures contracts was a $181 thousand gain position, which was determined by obtaining quoted market prices (Level 1 hierarchy as defined by ASC 820). | |||||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||||
The Company has entered into certain contracts to purchase heavy machinery and equipment denominated in euros. In anticipation of entering into these contracts, the Company entered into forward contracts to purchase euros to protect itself against adverse foreign exchange rate fluctuations. | |||||||||||||||||||
At March 28, 2015, the Company held open forward contracts to purchase approximately 326 thousand euros over the next four months. The fair value of these contracts, which was determined by obtaining quoted market prices (Level 1 hierarchy as defined by ASC 820), was a $9 thousand loss position. At March 28, 2015, there was $101 thousand of deferred gains, net of tax, included in AOCI that are expected to be reclassified into depreciation expense over the useful life of the heavy machinery and equipment. | |||||||||||||||||||
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 was 2.7 percent. The interest rate swap will mature on December 11, 2017, and is structured to offset 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). Interest payable and receivable under the swap agreement is accrued and recorded as an adjustment to interest expense. The fair value of the interest rate swap was a $2.4 million loss position at March 28, 2015, and there was $1.6 million of deferred net losses, net of tax, included in AOCI that are expected to be reclassified into interest expense over the term of the hedged item. | |||||||||||||||||||
We present our derivative assets and liabilities in our Condensed Consolidated Balance Sheets on a net basis by counterparty. The following table summarizes the location and fair value of the derivative instruments and disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis: | |||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
(In thousands) | Balance Sheet Location | 28-Mar-15 | 27-Dec-14 | Balance Sheet Location | 28-Mar-15 | 27-Dec-14 | |||||||||||||
Hedging instrument: | |||||||||||||||||||
Commodity contracts - gains | Other current assets | $ | 941 | $ | 99 | Other current liabilities | $ | 310 | $ | 15 | |||||||||
Commodity contracts - losses | Other current assets | (102 | ) | (4 | ) | Other current liabilities | (614 | ) | (832 | ) | |||||||||
Foreign currency contracts | Other current assets | — | — | Other current liabilities | (9 | ) | (81 | ) | |||||||||||
Interest rate swap | Other assets | — | — | Other liabilities | (2,436 | ) | (927 | ) | |||||||||||
Total derivatives (1) | $ | 839 | $ | 95 | $ | (2,749 | ) | $ | (1,825 | ) | |||||||||
(1) Does not include the impact of cash collateral provided to counterparties. | |||||||||||||||||||
The following tables summarize the effects of derivative instruments in our Condensed Consolidated Statements of Income: | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
(In thousands) | Location | 28-Mar-15 | 29-Mar-14 | ||||||||||||||||
Fair value hedges: | |||||||||||||||||||
Gain on commodity contracts (qualifying) | Cost of goods sold | $ | 213 | $ | 6,291 | ||||||||||||||
Loss on hedged item - Inventory | Cost of goods sold | (247 | ) | (5,800 | ) | ||||||||||||||
Undesignated derivatives: | |||||||||||||||||||
Gain on commodity contracts (nonqualifying) | Cost of goods sold | $ | 234 | $ | 1,538 | ||||||||||||||
The following tables summarize amounts recognized in and reclassified from AOCI during the period: | |||||||||||||||||||
Three Months Ended March 28, 2015 | |||||||||||||||||||
(In thousands) | Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax | Classification Gains (Losses) | Loss (Gain) | ||||||||||||||||
Reclassified from AOCI (Effective Portion), Net of Tax | |||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||
Commodity contracts | $ | 274 | Cost of goods sold | $ | 571 | ||||||||||||||
Foreign currency contracts | (55 | ) | Depreciation expense | — | |||||||||||||||
Interest rate swap | (1,032 | ) | Interest expense | 68 | |||||||||||||||
Three Months Ended March 29, 2014 | |||||||||||||||||||
(In thousands) | (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | Classification Gains (Losses) | Loss (Gain) | ||||||||||||||||
Reclassified from AOCI (Effective Portion), Net of Tax | |||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||
Commodity contracts | $ | (1,010 | ) | Cost of goods sold | $ | 291 | |||||||||||||
Foreign currency contracts | 22 | Depreciation expense | (174 | ) | |||||||||||||||
Interest rate swap | (245 | ) | Interest expense | — | |||||||||||||||
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 hedge contracts through March 28, 2015 was not material to the Condensed Consolidated Statements of Income. | |||||||||||||||||||
The Company primarily enters into International Swaps and Derivatives Association (ISDA) master netting agreements with major financial institutions that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the Company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. The Company does not offset fair value amounts for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral. At March 28, 2015 and December 27, 2014, the Company had recorded restricted cash in other current assets of $1.7 million and $0.5 million, respectively, as collateral related to open derivative contracts under the master netting arrangements. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income | 3 Months Ended | |||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||
Accumulated Other Comprehensive Income | Note 8 – Accumulated Other Comprehensive Income | |||||||||||||||||||
AOCI includes certain foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges, adjustments to pension and OPEB liabilities, and unrealized gains and losses on marketable securities classified as available-for-sale. | ||||||||||||||||||||
The following table provides changes in AOCI by component, net of taxes and noncontrolling interest (amounts in parentheses indicate debits to AOCI): | ||||||||||||||||||||
For the Quarter Ended March 28, 2015 | ||||||||||||||||||||
(In thousands) | Cumulative Translation Adjustment | Unrealized (Losses)/Gains on Derivatives | Minimum Pension/OPEB Liability Adjustment | Unrealized Gains on Equity Investments | Total | |||||||||||||||
Balance at December 27, 2014 | $ | (7,076 | ) | $ | (953 | ) | $ | (35,164 | ) | $ | 270 | $ | (42,923 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (7,697 | ) | (837 | ) | 895 | (27 | ) | (7,666 | ) | |||||||||||
Amounts reclassified from accumulated OCI | — | 639 | 521 | — | 1,160 | |||||||||||||||
Net current-period other comprehensive income | (7,697 | ) | (198 | ) | 1,416 | (27 | ) | (6,506 | ) | |||||||||||
Balance at March 28, 2015 | $ | (14,773 | ) | $ | (1,151 | ) | $ | (33,748 | ) | $ | 243 | $ | (49,429 | ) | ||||||
For the Quarter Ended March 29, 2014 | ||||||||||||||||||||
(In thousands) | Cumulative Translation Adjustment | Unrealized (Losses)/Gains on Derivatives | Minimum Pension/OPEB Liability Adjustment | Unrealized Gains on Equity Investments | Total | |||||||||||||||
Balance at December 28, 2013 | $ | (462 | ) | $ | 1,546 | $ | (12,158 | ) | $ | 255 | $ | (10,819 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 1,162 | (1,233 | ) | (107 | ) | (15 | ) | (193 | ) | |||||||||||
Amounts reclassified from accumulated OCI | — | 117 | 110 | — | 227 | |||||||||||||||
Net current-period other comprehensive income | 1,162 | (1,116 | ) | 3 | (15 | ) | 34 | |||||||||||||
Balance at March 29, 2014 | $ | 700 | $ | 430 | $ | ) | $ | 240 | $ | (10,785 | ) | |||||||||
(12,155 | ||||||||||||||||||||
Reclassification adjustments out of accumulated OCI were as follows: | ||||||||||||||||||||
Amount reclassified from AOCI | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
(In thousands) | 28-Mar-15 | 29-Mar-14 | Affected line item | |||||||||||||||||
Unrealized losses/(gains) on derivatives: | ||||||||||||||||||||
Commodity contracts | $ | 762 | $ | 357 | Cost of goods sold | |||||||||||||||
Foreign currency contracts | — | (276 | ) | Depreciation Expense | ||||||||||||||||
Interest rate swap | 106 | — | Interest expense | |||||||||||||||||
(229 | ) | 36 | Income tax (expense) benefit | |||||||||||||||||
639 | 117 | Net of tax | ||||||||||||||||||
— | — | Noncontrolling interest | ||||||||||||||||||
$ | 639 | $ | 117 | Net of tax and noncontrolling | ||||||||||||||||
interest | ||||||||||||||||||||
Amortization of net loss and prior service cost on employee benefit plans | $ | 719 | $ | 124 | Selling, general, and administrative | |||||||||||||||
expense | ||||||||||||||||||||
(198 | ) | (14 | ) | Income tax expense | ||||||||||||||||
521 | 110 | Net of tax | ||||||||||||||||||
— | — | Noncontrolling interest | ||||||||||||||||||
$ | 521 | $ | 110 | Net of tax and noncontrolling | ||||||||||||||||
interest | ||||||||||||||||||||
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 28, 2015 | |
Acquisitions [Abstract] | |
Acquisitions | Note 9 – Acquisitions |
On October 18, 2013, the Company entered into a definitive agreement with KME Yorkshire Limited to acquire certain assets and assume certain liabilities of its copper tube business. Yorkshire Copper Tube (Yorkshire) produces European standard copper distribution tubes. This transaction received regulatory approval in the United Kingdom on February 11, 2014 and closed on February 28, 2014. The purchase price was approximately $30.1 million, paid in cash. The acquisition of Yorkshire complements the Company’s existing copper tube businesses in the Plumbing & Refrigeration segment. In 2012, Yorkshire had annual revenue of approximately $196.1 million. During the third quarter of 2014, the purchase price allocation, including all fair value measurements, was finalized. The fair value of the assets acquired totaled $20.7 million, consisting primarily of inventories of $17.6 million, property, plant, and equipment of $2.1 million, and other current assets of $1.0 million. The fair value of the liabilities assumed totaled $15.6 million, consisting primarily of accounts payable and accrued expenses of $15.2 million and other current liabilities of $0.4 million. Of the remaining purchase price, $8.1 million was allocated to tax-deductible goodwill and $16.9 million was allocated to other intangible assets. | |
The Company expects to recognize approximately $2.7 million of severance costs related to the reorganization of Yorkshire during the remainder of 2015. | |
On March 30, 2015, subsequent to the end of the first quarter, the Company entered into a Stock Purchase Agreement with Turbotec Products, Inc. (Turbotec) providing for the purchase of all of the outstanding capital stock of Turbotec for approximately $14.2 million in cash, net of working capital adjustments. Turbotec manufactures coaxial heat exchangers and twisted tubes for the HVAC, geothermal, refrigeration, swimming pool heat pump, marine, ice machine, commercial boiler, and heat reclamation markets. The acquisition of Turbotec complements the Company’s existing refrigeration business, a component of the OEM segment. For the twelve months ended March 31, 2015, Turbotec’s net sales were approximately $21.8 million. |
Recently_Issued_Accounting_Sta
Recently Issued Accounting Standards | 3 Months Ended |
Mar. 28, 2015 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Note 10 – Recently Issued Accounting Standards |
In May 2014, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). The ASU will supersede virtually all existing revenue recognition guidance under U.S. GAAP and will be effective for annual reporting periods beginning after December 15, 2016. The fundamental principles of the new guidance are that companies should recognize revenue in a manner that reflects the timing of the transfer of services to customers and the amount of revenue recognized reflects the consideration that a company expects to receive for the goods and services provided. The new guidance establishes a five-step approach for the recognition of revenue. The Company is in the process of evaluating the impact of ASU 2014-09 on its Consolidated Financial Statements. |
Inventories_Tables
Inventories (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | (In thousands) | March 28, 2015 | December 27, 2014 | ||||||
Raw materials and supplies | $ | 53,327 | $ | 53,586 | |||||
Work-in-process | 30,912 | 39,707 | |||||||
Finished goods | 167,033 | 168,481 | |||||||
Valuation reserves | (4,877 | ) | (5,189 | ) | |||||
Inventories | $ | 246,395 | $ | 256,585 | |||||
Industry_Segments_Tables
Industry Segments (Tables) | 3 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Industry Segments [Abstract] | |||||||||||||||||
Summary of segment information | Summarized segment information is as follows: | ||||||||||||||||
For the Quarter Ended March 28, 2015 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 305,017 | $ | 235,317 | $ | (3,092 | ) | $ | 537,242 | ||||||||
Cost of goods sold | 260,463 | 203,433 | (3,062 | ) | 460,834 | ||||||||||||
Depreciation and amortization | 4,523 | 2,855 | 475 | 7,853 | |||||||||||||
Selling, general, and administrative expense | 20,540 | 6,481 | 5,810 | 32,831 | |||||||||||||
Operating income | 19,491 | 22,548 | (6,315 | ) | 35,724 | ||||||||||||
Interest expense | (2,076 | ) | |||||||||||||||
Other income, net | 105 | ||||||||||||||||
Income before income taxes | $ | 33,753 | |||||||||||||||
For the Quarter Ended March 29, 2014 | |||||||||||||||||
(In thousands) | Plumbing & Refrigeration Segment | OEM | Corporate and Eliminations | Total | |||||||||||||
Segment | |||||||||||||||||
Net sales | $ | 338,027 | $ | 240,030 | $ | (3,683 | ) | $ | 574,374 | ||||||||
Cost of goods sold | 289,025 | 210,403 | (3,651 | ) | 495,777 | ||||||||||||
Depreciation and amortization | 4,420 | 3,083 | 604 | 8,107 | |||||||||||||
Selling, general, and administrative expense | 20,697 | 5,258 | 6,228 | 32,183 | |||||||||||||
Operating income | 23,885 | 21,286 | (6,864 | ) | 38,307 | ||||||||||||
Interest expense | (1,026 | ) | |||||||||||||||
Other income, net | 88 | ||||||||||||||||
Income before income taxes | $ | 37,369 | |||||||||||||||
Benefits_Plans_Tables
Benefits Plans (Tables) | 3 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Benefits Plans [Abstract] | |||||||||
Components of net periodic benefit costs | The components of net periodic benefit cost (income) are as follows: | ||||||||
For the Quarter Ended | |||||||||
(In thousands) | March 28, 2015 | March 29, 2014 | |||||||
Pension benefits: | |||||||||
Service cost | $ | 272 | $ | 222 | |||||
Interest cost | 2,054 | 2,068 | |||||||
Expected return on plan assets | (2,654 | ) | (3,201 | ) | |||||
Amortization of net loss | 714 | 188 | |||||||
Net periodic benefit cost (income) | $ | 386 | $ | (723 | ) | ||||
Other benefits: | |||||||||
Service cost | $ | 96 | $ | 89 | |||||
Interest cost | 196 | 177 | |||||||
Amortization of prior service cost | 2 | — | |||||||
Amortization of net loss (gain) | 3 | (64 | ) | ||||||
Net periodic benefit cost | $ | 297 | $ | 202 | |||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended | ||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||||||||||||||
Derivative instruments designated as cash flow hedges reflected in the financial statements | The following table summarizes the location and fair value of the derivative instruments and disaggregates our net derivative assets and liabilities into gross components on a contract-by-contract basis: | ||||||||||||||||||
Asset Derivatives | Liability Derivatives | ||||||||||||||||||
Fair Value | Fair Value | ||||||||||||||||||
(In thousands) | Balance Sheet Location | 28-Mar-15 | 27-Dec-14 | Balance Sheet Location | 28-Mar-15 | 27-Dec-14 | |||||||||||||
Hedging instrument: | |||||||||||||||||||
Commodity contracts - gains | Other current assets | $ | 941 | $ | 99 | Other current liabilities | $ | 310 | $ | 15 | |||||||||
Commodity contracts - losses | Other current assets | (102 | ) | (4 | ) | Other current liabilities | (614 | ) | (832 | ) | |||||||||
Foreign currency contracts | Other current assets | — | — | Other current liabilities | (9 | ) | (81 | ) | |||||||||||
Interest rate swap | Other assets | — | — | Other liabilities | (2,436 | ) | (927 | ) | |||||||||||
Total derivatives (1) | $ | 839 | $ | 95 | $ | (2,749 | ) | $ | (1,825 | ) | |||||||||
(1) Does not include the impact of cash collateral provided to counterparties. | |||||||||||||||||||
Schedule of fair value hedges | The following tables summarize the effects of derivative instruments in our Condensed Consolidated Statements of Income: | ||||||||||||||||||
Three Months Ended | |||||||||||||||||||
(In thousands) | Location | 28-Mar-15 | 29-Mar-14 | ||||||||||||||||
Fair value hedges: | |||||||||||||||||||
Gain on commodity contracts (qualifying) | Cost of goods sold | $ | 213 | $ | 6,291 | ||||||||||||||
Loss on hedged item - Inventory | Cost of goods sold | (247 | ) | (5,800 | ) | ||||||||||||||
Undesignated derivatives: | |||||||||||||||||||
Gain on commodity contracts (nonqualifying) | Cost of goods sold | $ | 234 | $ | 1,538 | ||||||||||||||
Summary of activities related to derivative instruments classified as cash flow hedges | The following tables summarize amounts recognized in and reclassified from AOCI during the period: | ||||||||||||||||||
Three Months Ended March 28, 2015 | |||||||||||||||||||
(In thousands) | Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax | Classification Gains (Losses) | Loss (Gain) | ||||||||||||||||
Reclassified from AOCI (Effective Portion), Net of Tax | |||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||
Commodity contracts | $ | 274 | Cost of goods sold | $ | 571 | ||||||||||||||
Foreign currency contracts | (55 | ) | Depreciation expense | — | |||||||||||||||
Interest rate swap | (1,032 | ) | Interest expense | 68 | |||||||||||||||
Three Months Ended March 29, 2014 | |||||||||||||||||||
(In thousands) | (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | Classification Gains (Losses) | Loss (Gain) | ||||||||||||||||
Reclassified from AOCI (Effective Portion), Net of Tax | |||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||
Commodity contracts | $ | (1,010 | ) | Cost of goods sold | $ | 291 | |||||||||||||
Foreign currency contracts | 22 | Depreciation expense | (174 | ) | |||||||||||||||
Interest rate swap | (245 | ) | Interest expense | — |
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended | |||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||
Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||
Changes in accumulated OCI by component, net of taxes and noncontrolling interest | The following table provides changes in AOCI by component, net of taxes and noncontrolling interest (amounts in parentheses indicate debits to AOCI): | |||||||||||||||||||
For the Quarter Ended March 28, 2015 | ||||||||||||||||||||
(In thousands) | Cumulative Translation Adjustment | Unrealized (Losses)/Gains on Derivatives | Minimum Pension/OPEB Liability Adjustment | Unrealized Gains on Equity Investments | Total | |||||||||||||||
Balance at December 27, 2014 | $ | (7,076 | ) | $ | (953 | ) | $ | (35,164 | ) | $ | 270 | $ | (42,923 | ) | ||||||
Other comprehensive income (loss) before reclassifications | (7,697 | ) | (837 | ) | 895 | (27 | ) | (7,666 | ) | |||||||||||
Amounts reclassified from accumulated OCI | — | 639 | 521 | — | 1,160 | |||||||||||||||
Net current-period other comprehensive income | (7,697 | ) | (198 | ) | 1,416 | (27 | ) | (6,506 | ) | |||||||||||
Balance at March 28, 2015 | $ | (14,773 | ) | $ | (1,151 | ) | $ | (33,748 | ) | $ | 243 | $ | (49,429 | ) | ||||||
For the Quarter Ended March 29, 2014 | ||||||||||||||||||||
(In thousands) | Cumulative Translation Adjustment | Unrealized (Losses)/Gains on Derivatives | Minimum Pension/OPEB Liability Adjustment | Unrealized Gains on Equity Investments | Total | |||||||||||||||
Balance at December 28, 2013 | $ | (462 | ) | $ | 1,546 | $ | (12,158 | ) | $ | 255 | $ | (10,819 | ) | |||||||
Other comprehensive income (loss) before reclassifications | 1,162 | (1,233 | ) | (107 | ) | (15 | ) | (193 | ) | |||||||||||
Amounts reclassified from accumulated OCI | — | 117 | 110 | — | 227 | |||||||||||||||
Net current-period other comprehensive income | 1,162 | (1,116 | ) | 3 | (15 | ) | 34 | |||||||||||||
Balance at March 29, 2014 | $ | 700 | $ | 430 | $ | ) | $ | 240 | $ | (10,785 | ) | |||||||||
(12,155 | ||||||||||||||||||||
Reclassification adjustments out of accumulated OCI | Reclassification adjustments out of accumulated OCI were as follows: | |||||||||||||||||||
Amount reclassified from AOCI | ||||||||||||||||||||
For the Quarter Ended | ||||||||||||||||||||
(In thousands) | 28-Mar-15 | 29-Mar-14 | Affected line item | |||||||||||||||||
Unrealized losses/(gains) on derivatives: | ||||||||||||||||||||
Commodity contracts | $ | 762 | $ | 357 | Cost of goods sold | |||||||||||||||
Foreign currency contracts | — | (276 | ) | Depreciation Expense | ||||||||||||||||
Interest rate swap | 106 | — | Interest expense | |||||||||||||||||
(229 | ) | 36 | Income tax (expense) benefit | |||||||||||||||||
639 | 117 | Net of tax | ||||||||||||||||||
— | — | Noncontrolling interest | ||||||||||||||||||
$ | 639 | $ | 117 | Net of tax and noncontrolling | ||||||||||||||||
interest | ||||||||||||||||||||
Amortization of net loss and prior service cost on employee benefit plans | $ | 719 | $ | 124 | Selling, general, and administrative | |||||||||||||||
expense | ||||||||||||||||||||
(198 | ) | (14 | ) | Income tax expense | ||||||||||||||||
521 | 110 | Net of tax | ||||||||||||||||||
— | — | Noncontrolling interest | ||||||||||||||||||
$ | 521 | $ | 110 | Net of tax and noncontrolling | ||||||||||||||||
interest | ||||||||||||||||||||
Earnings_per_Common_Share_Deta
Earnings per Common Share (Details) (Stock Option [Member]) | 3 Months Ended |
In Thousands, unless otherwise specified | Mar. 28, 2015 |
Stock Option [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 180 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Feb. 18, 2015 | Jun. 21, 2011 |
Loss Contingencies [Line Items] | |||
Term of guarantees | 1 year | ||
Payments required to be made under guarantees, maximum | $10.20 | ||
United States Department of Commerce Antidumping Review [Member] | |||
Loss Contingencies [Line Items] | |||
Assignment of antidumping duty rate on U.S. imports by Company subsidiaries (in hundredths) | 13.70% | 19.80% | |
Reserve for Antidumping Duties | $1.10 |
Inventories_Details
Inventories (Details) (USD $) | Mar. 28, 2015 | Dec. 27, 2014 |
In Thousands, unless otherwise specified | ||
Inventories [Abstract] | ||
Raw materials and supplies | $53,327 | $53,586 |
Work-in-process | 30,912 | 39,707 |
Finished goods | 167,033 | 168,481 |
Valuation reserves | -4,877 | -5,189 |
Inventories | $246,395 | $256,585 |
Industry_Segments_Details
Industry Segments (Details) (USD $) | 3 Months Ended | |
Mar. 28, 2015 | Mar. 29, 2014 | |
Industry Segments [Abstract] | ||
Decrease in accruals related to import duties included in cost of goods sold | $3,100,000 | |
Summary of segment information [Abstract] | ||
Net sales | 537,242,000 | 574,374,000 |
Cost of goods sold | 460,834,000 | 495,777,000 |
Depreciation and amortization | 7,853,000 | 8,107,000 |
Selling, general, and administrative expense | 32,831,000 | 32,183,000 |
Operating income | 35,724,000 | 38,307,000 |
Interest expense | -2,076,000 | -1,026,000 |
Other income, net | 105,000 | 88,000 |
Income before income taxes | 33,753,000 | 37,369,000 |
Corporate and Eliminations [Member] | ||
Summary of segment information [Abstract] | ||
Net sales | -3,092,000 | -3,683,000 |
Cost of goods sold | -3,062,000 | -3,651,000 |
Depreciation and amortization | 475,000 | 604,000 |
Selling, general, and administrative expense | 5,810,000 | 6,228,000 |
Operating income | -6,315,000 | -6,864,000 |
Plumbing and Refrigeration Segment [Member] | Operating Segments [Member] | ||
Summary of segment information [Abstract] | ||
Net sales | 305,017,000 | 338,027,000 |
Cost of goods sold | 260,463,000 | 289,025,000 |
Depreciation and amortization | 4,523,000 | 4,420,000 |
Selling, general, and administrative expense | 20,540,000 | 20,697,000 |
Operating income | 19,491,000 | 23,885,000 |
OEM Segment [Member] | Operating Segments [Member] | ||
Summary of segment information [Abstract] | ||
Net sales | 235,317,000 | 240,030,000 |
Cost of goods sold | 203,433,000 | 210,403,000 |
Depreciation and amortization | 2,855,000 | 3,083,000 |
Selling, general, and administrative expense | 6,481,000 | 5,258,000 |
Operating income | $22,548,000 | $21,286,000 |
Benefits_Plans_Details
Benefits Plans (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Pension Benefits [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | $272 | $222 |
Interest cost | 2,054 | 2,068 |
Expected return on plan assets | -2,654 | -3,201 |
Amortization of net loss (gain) | 714 | 188 |
Net periodic benefit cost (income) | 386 | -723 |
Other Benefits [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | 96 | 89 |
Interest cost | 196 | 177 |
Amortization of prior service cost | 2 | 0 |
Amortization of net loss (gain) | 3 | -64 |
Net periodic benefit cost (income) | $297 | $202 |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Income Taxes [Abstract] | ||
Effective tax rate (in hundredths) | 34.00% | 33.00% |
Reduction for U.S. production activities | $1 | $1.20 |
Increase (decrease) in valuation allowances | -0.9 | |
Provision for state income taxes, net of federal benefit | 0.8 | 1.3 |
Effect of foreign adjustments | $0.50 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities (Details) (USD $) | 3 Months Ended | |||
Mar. 28, 2015 | Dec. 27, 2014 | |||
Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets fair value | $839,000 | [1] | $95,000 | [1] |
Liabilities fair value | -2,749,000 | [1] | -1,825,000 | [1] |
Commodity Contracts [Member] | Cash Flow Hedging [Member] | Long [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Open future contracts to purchase copper | 32,400,000 | |||
Time period for open copper future contract purchases | 9 months | |||
Fair value of future contracts with gain (loss) position | 354,000 | |||
Commodity Contracts [Member] | Fair Value Hedging [Member] | Short [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Open future contracts to sell copper | 20,100,000 | |||
Time period for open copper future contract sales | 4 months | |||
Fair value of future contracts with gain (loss) position | 181,000 | |||
Other Current Asset [Member] | Commodity Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other current assets: Gain positions | 941,000 | 99,000 | ||
Other current assets: Loss positions | -102,000 | -4,000 | ||
Other Current Asset [Member] | Foreign Currency Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other current assets: Gain positions | 0 | 0 | ||
Other Assets [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other assets: Gain positions | 0 | 0 | ||
Other Current Liabilities [Member] | Commodity Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other current liability: Gain positions | 310,000 | 15,000 | ||
Other current liability: Loss positions | -614,000 | -832,000 | ||
Other Current Liabilities [Member] | Foreign Currency Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other current liability: Loss positions | -9,000 | -81,000 | ||
Other Liabilities [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other liabilities: Loss positions | ($2,436,000) | ($927,000) | ||
[1] | Does not include the impact of cash collateral received from or provided to counterparties. |
Derivative_Instruments_and_Hed3
Derivative Instruments and Hedging Activities Part 2 (Details) | Mar. 28, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 | Feb. 20, 2013 | Mar. 28, 2015 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 28, 2015 | Mar. 29, 2014 |
USD ($) | USD ($) | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Commodity Contracts [Member] | Foreign Currency Contracts [Member] | Foreign Currency Contracts [Member] | Foreign Currency Contracts [Member] | Foreign Currency Contracts [Member] | Foreign Currency Contracts [Member] | Foreign Currency Contracts [Member] | Inventory [Member] | Inventory [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | |
USD ($) | Not Designated as Hedging Instrument [Member] | Not Designated as Hedging Instrument [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] | USD ($) | EUR (€) | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Fair Value Hedging [Member] | Fair Value Hedging [Member] | USD ($) | USD ($) | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | Cash Flow Hedging [Member] | |||
Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | USD ($) | USD ($) | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | USD ($) | USD ($) | Depreciation Expense [Member] | Depreciation Expense [Member] | Cost of Goods Sold [Member] | Cost of Goods Sold [Member] | USD ($) | USD ($) | Interest Expense [Member] | Interest Expense [Member] | ||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | ||||||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||||||||||||||||||||||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | $274,000 | ($1,010,000) | ($55,000) | $22,000 | ($1,032,000) | ($245,000) | |||||||||||||||||||
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | 571,000 | 291,000 | 0 | -174,000 | 68,000 | 0 | |||||||||||||||||||
Gain (loss) on the derivatives in designated and qualifying fair value hedges | 213,000 | 6,291,000 | -247,000 | -5,800,000 | |||||||||||||||||||||
Gain (loss) on undesignated derivatives | 234,000 | 1,538,000 | |||||||||||||||||||||||
Notional amount | 326,000 | 200,000,000 | |||||||||||||||||||||||
Time period for open forward contracts to purchase | 4 months | 4 months | |||||||||||||||||||||||
Period of interest rate swap | 2 years | ||||||||||||||||||||||||
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 | ||||||||||||||||||||||||
Deferred net gains (losses), net of tax, included in AOCI | 317,000 | 101,000 | -1,600,000 | ||||||||||||||||||||||
Restricted cash in other current assets as collateral related to open derivative contracts | $1,700,000 | $500,000 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Details) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | ($42,923) | ($10,819) |
Other comprehensive income (loss) before reclassifications | -7,666 | -193 |
Amounts reclassified from accumulated OCI | 1,160 | 227 |
Net current-period other comprehensive income | -6,506 | 34 |
Ending balance | -49,429 | -10,785 |
Reclassification adjustments out of AOCI [Abstract] | ||
Cost of goods sold | -460,834 | -495,777 |
Depreciation expense | -8,015 | -8,165 |
Interest expense | -2,076 | -1,026 |
Net of tax and noncontrolling interest | -198 | -1,116 |
Selling, general, and administrative expense | -32,831 | -32,183 |
Cumulative Translation Adjustment [Member] | ||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | -7,076 | -462 |
Other comprehensive income (loss) before reclassifications | -7,697 | 1,162 |
Amounts reclassified from accumulated OCI | 0 | 0 |
Net current-period other comprehensive income | -7,697 | 1,162 |
Ending balance | -14,773 | 700 |
Unrealized Losses/(Gains) on Derivatives [Member] | ||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | -953 | 1,546 |
Other comprehensive income (loss) before reclassifications | -837 | -1,233 |
Amounts reclassified from accumulated OCI | 639 | 117 |
Net current-period other comprehensive income | -198 | -1,116 |
Ending balance | -1,151 | 430 |
Unrealized Losses/(Gains) on Derivatives [Member] | Amount Reclassified from AOCI [Member] | ||
Reclassification adjustments out of AOCI [Abstract] | ||
Cost of goods sold | 762 | 357 |
Depreciation expense | 0 | -276 |
Interest expense | 106 | 0 |
Income tax (expense) benefit | -229 | 36 |
Net of tax | 639 | 117 |
Noncontrolling interest | 0 | 0 |
Net of tax and noncontrolling interest | 639 | 117 |
Minimum Pension/OPEB Liability Adjustment [Member] | ||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | -35,164 | -12,158 |
Other comprehensive income (loss) before reclassifications | 895 | -107 |
Amounts reclassified from accumulated OCI | 521 | 110 |
Net current-period other comprehensive income | 1,416 | 3 |
Ending balance | -33,748 | -12,155 |
Minimum Pension/OPEB Liability Adjustment [Member] | Amount Reclassified from AOCI [Member] | ||
Reclassification adjustments out of AOCI [Abstract] | ||
Selling, general, and administrative expense | 719 | 124 |
Income tax expense | -198 | -14 |
Net of tax | 521 | 110 |
Noncontrolling interest | 0 | 0 |
Net of tax and noncontrolling interest | 521 | 110 |
Unrealized Gains on Equity Investments [Member] | ||
Changes In Accumulated Other Comprehensive Income [Roll Forward] | ||
Beginning balance | 270 | 255 |
Other comprehensive income (loss) before reclassifications | -27 | -15 |
Amounts reclassified from accumulated OCI | 0 | 0 |
Net current-period other comprehensive income | -27 | -15 |
Ending balance | $243 | $240 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 0 Months Ended | 12 Months Ended | 0 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Feb. 28, 2014 | Dec. 29, 2012 | Mar. 30, 2015 | Mar. 31, 2015 | Mar. 28, 2015 |
KME Yorkshire Limited [Member] | |||||
Business Acquisition [Line Items] | |||||
Cost of acquisition | $30.10 | ||||
Pro forma net sales | 196.1 | ||||
Fair value of assets acquired | 20.7 | ||||
Fair value of assets acquired - inventories | 17.6 | ||||
Fair value of assets acquired - property, plant and equipment | 2.1 | ||||
Fair value of assets acquired - other current assets | 1 | ||||
Fair value of liabilities assumed | 15.6 | ||||
Fair value of liabilities assumed - accounts payable and accrued expenses | 15.2 | ||||
Fair value of liabilities assumed - other current liabilities | 0.4 | ||||
Remaining purchase price allocated to goodwill | 8.1 | ||||
Remaining purchase price allocated to other intangible assets | 16.9 | ||||
Expected additional expenses to be incurred | 2.7 | ||||
Turbotec Products, Inc. [Member] | Subsequent Event [Member] | |||||
Business Acquisition [Line Items] | |||||
Cost of acquisition | 14.2 | ||||
Pro forma net sales | $21.80 |