Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Apr. 02, 2016 | Apr. 25, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MUELLER INDUSTRIES INC | |
Entity Central Index Key | 89,439 | |
Current Fiscal Year End Date | --12-31 | |
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 | 57,126,707 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Apr. 2, 2016 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Mar. 28, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||
Net sales | $ 532,809 | $ 537,242 |
Cost of goods sold | 446,642 | 460,834 |
Depreciation and amortization | 8,920 | 7,853 |
Selling, general, and administrative expense | 35,780 | 32,831 |
Operating income | 41,467 | 35,724 |
Interest expense | (1,848) | (2,076) |
Other income, net | 245 | 105 |
Income before income taxes | 39,864 | 33,753 |
Income tax expense | (14,121) | (11,413) |
Income from unconsolidated affiliates | 2,922 | 0 |
Consolidated net income | 28,665 | 22,340 |
Net income attributable to noncontrolling interest | (35) | (362) |
Net income attributable to Mueller Industries, Inc. | $ 28,630 | $ 21,978 |
Weighted average shares for basic earnings per share (in shares) | 56,467 | 56,193 |
Effect of dilutive stock-based awards (in shares) | 495 | 731 |
Adjusted weighted average shares for diluted earnings per share (in shares) | 56,962 | 56,924 |
Basic earnings per share (in dollars per share) | $ 0.51 | $ 0.39 |
Diluted earnings per share (in dollars per share) | 0.50 | 0.39 |
Dividends per share (in dollars per share) | $ 0.075 | $ 0.075 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Mar. 28, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Consolidated net income | $ 28,665 | $ 22,340 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation | (1,111) | (8,404) |
Net change with respect to derivative instruments and hedging activities, net of tax of $(221) in 2016 and $274 in 2015 | 594 | (198) |
Net actuarial loss on pension and postretirement obligations, net of tax of $(398) in 2016 and $(501) in 2015 | 1,172 | 1,416 |
Other, net | 14 | (27) |
Total other comprehensive income (loss) | 669 | (7,213) |
Comprehensive income | 29,334 | 15,127 |
Comprehensive loss attributable to noncontrolling interest | 739 | 345 |
Comprehensive income attributable to Mueller Industries, Inc. | $ 30,073 | $ 15,472 |
CONDENSED STATEMENTS OF COMPREH
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Mar. 28, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Net change with respect to derivative instruments and hedging activities, tax | $ (221) | $ 274 |
Net actuarial loss on pension and postretirement obligations, tax | $ (398) | $ (501) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Apr. 02, 2016 | Dec. 26, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 270,149 | $ 274,844 |
Accounts receivable, less allowance for doubtful accounts of $496 in 2016 and $623 in 2015 | 275,881 | 251,571 |
Inventories | 240,608 | 239,378 |
Other current assets | 34,123 | 34,608 |
Total current assets | 820,761 | 800,401 |
Property, plant, and equipment, net | 278,481 | 280,224 |
Goodwill, net | 121,112 | 120,252 |
Intangible assets, net | 40,617 | 40,636 |
Investment in unconsolidated affiliates | 68,822 | 65,900 |
Other assets | 31,227 | 31,388 |
Total assets | 1,361,020 | 1,338,801 |
Current liabilities: | ||
Current portion of debt | 4,583 | 11,760 |
Accounts payable | 98,324 | 88,051 |
Accrued wages and other employee costs | 27,974 | 35,636 |
Other current liabilities | 71,727 | 73,982 |
Total current liabilities | 202,608 | 209,429 |
Long-term debt, less current portion | 206,000 | 204,250 |
Pension liabilities | 16,319 | 17,449 |
Postretirement benefits other than pensions | 17,396 | 17,427 |
Environmental reserves | 20,932 | 20,943 |
Deferred income taxes | 8,310 | 7,161 |
Other noncurrent liabilities | 2,973 | 2,440 |
Total liabilities | 474,538 | 479,099 |
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 57,126,707 in 2016 and 57,158,608 in 2015 | 802 | 802 |
Additional paid-in capital | 273,576 | 271,158 |
Retained earnings | 1,087,927 | 1,063,543 |
Accumulated other comprehensive loss | (53,547) | (54,990) |
Treasury common stock, at cost | (453,954) | (453,228) |
Total Mueller Industries, Inc. stockholders' equity | 854,804 | 827,285 |
Noncontrolling interest | 31,678 | 32,417 |
Total equity | $ 886,482 | $ 859,702 |
Commitments and contingencies | ||
Total liabilities and equity | $ 1,361,020 | $ 1,338,801 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Apr. 02, 2016 | Dec. 26, 2015 |
Current assets: | ||
Allowance for doubtful accounts | $ 496 | $ 623 |
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) | 57,126,707 | 57,158,608 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Mar. 28, 2015 | |
Cash flows from operating activities | ||
Consolidated net income | $ 28,665 | $ 22,340 |
Reconciliation of consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,011 | 8,015 |
Stock-based compensation expense | 1,236 | 1,349 |
Equity in earnings of unconsolidated affiliates | (2,922) | 0 |
(Gain) loss on disposal of properties | (23) | 1 |
Deferred income taxes | 1,895 | (570) |
Income tax benefit from exercise of stock options | (96) | (69) |
Changes in assets and liabilities: | ||
Receivables | (25,089) | (36,692) |
Inventories | (1,631) | 7,534 |
Other assets | (370) | 9,257 |
Current liabilities | 655 | (7,389) |
Other liabilities | (704) | (131) |
Other, net | (291) | 245 |
Net cash provided by operating activities | 10,336 | 3,890 |
Cash flows from investing activities | ||
Capital expenditures | (5,892) | (7,392) |
Net withdrawals from (deposits into) restricted cash | 84 | (12,593) |
Proceeds from sales of assets | 1 | 492 |
Net cash used in investing activities | (5,807) | (19,493) |
Cash flows from financing activities | ||
Repayments of long-term debt | (250) | (250) |
Dividends paid to stockholders of Mueller Industries, Inc. | (4,236) | (4,216) |
Repayment of debt by joint venture, net | (7,024) | (3,817) |
Issuance of debt | 2,000 | 0 |
Net cash used to settle stock-based awards | 361 | 93 |
Income tax benefit from exercise of stock options | 96 | 69 |
Net cash used in financing activities | (9,053) | (8,121) |
Effect of exchange rate changes on cash | (171) | (1,516) |
Decrease in cash and cash equivalents | (4,695) | (25,240) |
Cash and cash equivalents at the beginning of the period | 274,844 | 352,134 |
Cash and cash equivalents at the end of the period | $ 270,149 | $ 326,894 |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Apr. 02, 2016 | |
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 579 thousand and 180 thousand stock-based awards were excluded from the computation of diluted earnings per share for the quarters ended April 2, 2016 and March 28, 2015, respectively, because they were antidilutive. |
Segment Information
Segment Information | 3 Months Ended |
Apr. 02, 2016 | |
Segment Information [Abstract] | |
Segment Information | Note 2 –Segment Information During the first quarter of 2016, the Company made changes to its management reporting structure as a result of a change in the way the Chief Executive Officer, who serves as the Chief Operating Decision Maker, manages and evaluates the business, makes key operating decisions, and allocates resources. Previously, the Company had two reportable segments: Plumbing & Refrigeration and OEM. During the quarter, the Company realigned its operating segments into three reportable segments: Piping Systems, Industrial Metals, and Climate. Piping Systems Piping Systems is composed of the following operating segments: Domestic Piping Systems Group, Canadian Operations, European Operations, Trading Group, and Mueller-Xingrong, the Company's Chinese joint venture. The Domestic Piping Systems Group manufactures copper tube and fittings, plastic fittings, and line sets. These products are manufactured in the U.S. Outside the U.S., the Canadian Operations manufacture copper tube and line sets in Canada and sell the products primarily in the U.S. and Canada, and Industrial Metals Industrial Metals is composed of the following operating segments: Brass Rod & Copper Bar Products, Impacts & Micro Gauge, and Brass Value-Added Products. These businesses manufacture brass rod, impact extrusions, and forgings, as well as a wide variety of end products including plumbing brass, automotive components, valves, fittings, and gas assemblies. These products are manufactured in the U.S. and sold primarily to OEMs in the U.S, many of which are in the industrial, construction, heating, ventilation, and air-conditioning, plumbing, and refrigeration markets. Climate Climate is composed of the following operating segments: Refrigeration Products, Fabricated Tube Products, Westermeyer, and Turbotec. These domestic businesses manufacture and fabricate valves and assemblies primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S. Summarized segment information is as follows: For the Quarter Ended April 2, 2016 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 368,890 $ 134,521 $ 30,706 $ (1,308 ) $ 532,809 Cost of goods sold 313,792 109,229 23,705 (84 ) 446,642 Depreciation and amortization 5,649 2,135 599 537 8,920 Selling, general, and administrative expense 18,290 3,245 2,523 11,722 35,780 Operating income 31,159 19,912 3,879 (13,483 ) 41,467 Interest expense (1,848 ) Other income, net 245 Income before taxes $ 39,864 For the Quarter Ended March 28, 2015 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 361,482 $ 151,036 $ 25,811 $ (1,087 ) $ 537,242 Cost of goods sold 312,690 127,724 21,267 (847 ) 460,834 Depreciation and amortization 5,187 1,655 425 586 7,853 Selling, general, and administrative expense 17,346 2,698 1,854 10,933 32,831 Operating income 26,259 18,959 2,265 (11,759 ) 35,724 Interest expense (2,076 ) Other income, net 105 Income before taxes $ 33,753 (In thousands) April 2, 2016 December 26, 2015 Segment assets: Piping Systems $ 815,400 $ 811,343 Industrial Metals 193,662 174,897 Climate 41,172 39,876 General Corporate 310,786 312,685 $ 1,361,020 $ 1,338,801 |
Inventories
Inventories | 3 Months Ended |
Apr. 02, 2016 | |
Inventories [Abstract] | |
Inventories | Note 3 – Inventories (In thousands) April 2, 2016 December 26, 2015 Raw materials and supplies $ 53,983 $ 58,987 Work-in-process 37,656 25,161 Finished goods 154,592 161,410 Valuation reserves (5,623 ) (6,180 ) Inventories $ 240,608 $ 239,378 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 3 Months Ended |
Apr. 02, 2016 | |
Derivative Instruments and Hedging Activities [Abstract] | |
Derivative Instruments and Hedging Activities | Note 4 – 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 either a) 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) or b) not designated in a hedge accounting relationship, even though the derivative contract was executed to mitigate an economic exposure, as the Company does not enter into derivative contracts for trading purposes (economic hedge). Changes in the fair value of a derivative instrument 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 instrument 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 April 2, 2016, the Company held open futures contracts to purchase approximately $23.7 million of copper over the next nine months related to fixed price sales orders. The fair value of those futures contracts was a $21 thousand net gain position, which was determined by obtaining quoted market prices (level 1 within the fair value hierarchy). In the next twelve months, the Company will reclassify into earnings realized gains or losses relating to cash flow hedges. At April 2, 2016, this amount was approximately $105 thousand of deferred net losses, net of tax. The Company may also enter into futures contracts to protect the value of inventory against market fluctuations. At April 2, 2016, the Company held open futures contracts to sell approximately $21.0 million of copper over the next four months related to copper inventory. The fair value of those futures contracts was a $307 thousand loss position, which was determined by obtaining quoted market prices (level 1 within the fair value hierarchy). 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 April 2, 2016, the Company held open forward contracts to purchase approximately 2.7 million euros over the next eight months. The fair value of these contracts, which was determined by obtaining quoted market prices (level 1 within the fair value hierarchy), was an $88 thousand gain position. At April 2, 2016, there was $184 thousand of deferred net 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 as of the effective date is 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 within the fair value hierarchy). 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 $2.3 million loss position at April 2, 2016, and there was $1.5 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. The Company presents its 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 April 2, 2016 December 26, 2015 Balance Sheet Location April 2, 2016 December 26, 2015 Hedging instrument: Commodity contracts - gains Other current assets $ 654 $ 60 Other current liabilities $ 122 $ 238 Commodity contracts - losses Other current assets (82 ) — Other current liabilities (979 ) (1,864 ) Foreign currency contracts - gains Other current assets 88 — Other current liabilities — 34 Foreign currency contracts - losses Other current assets — — Other current liabilities — (75 ) Interest rate swap Other assets — — Other liabilities (2,319 ) (1,692 ) Total derivatives (1) $ 660 $ 60 $ (3,176 ) $ (3,359 ) (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 April 2, 2016 March 28, 2015 Fair value hedges: (Loss) gain on commodity contracts (qualifying) Cost of goods sold $ (50 ) $ 213 Gain (loss) on hedged item - Inventory Cost of goods sold 62 (247 ) Undesignated derivatives: Gain on commodity contracts (nonqualifying) Cost of goods sold $ 494 $ 234 The following tables summarize amounts recognized in and reclassified from AOCI during the period: Three Months Ended April 2, 2016 (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 $ 873 Cost of goods sold $ 68 Foreign currency contracts 66 Depreciation expense — Interest rate swap (470 ) Interest expense 69 Other (12 ) Other — Total $ 457 Total $ 137 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 Other (24 ) Other — Total $ (837 ) Total $ 639 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 April 2, 2016 was not material to the Condensed Consolidated Statements of Income. The Company primarily enters into International Swaps and Derivatives Association 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 April 2, 2016 and December 26, 2015, the Company had recorded restricted cash in other current assets of $2.7 million and $2.6 million, respectively, as collateral related to open derivative contracts under the master netting arrangements. |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 3 Months Ended |
Apr. 02, 2016 | |
Investment in Unconsolidated Affiliates [Abstract] | |
Investment in Unconsolidated Affiliates | Note 5 – Investment in Unconsolidated Affiliates The Company owns a 50 percent interest in Tecumseh Products Holdings LLC (Joint Venture), an unconsolidated affiliate that acquired Tecumseh Products Company (Tecumseh) during 2015. The Company also owns 50 percent interest in a second unconsolidated affiliate that provided financing to Tecumseh in conjunction with the acquisition. These investments are accounted for using the equity method of accounting as the Company can exercise significant influence but does not own a majority equity interest or otherwise control the repective entities. Under the equity method of accounting, these investments are stated at initial cost and are adjusted for subsequent additional investments and the Company's proportionate share of earnings or losses and distributions. The Company records its proportionate share of the investee's net income or loss one quarter in arrears as income (loss) from unconsolidated affiliates in the Condensed Consolidated Statements of Income. The following tables present summarized financial information derived from the Company's equity method investee's combined consolidated financial statements, which are prepared in accordance with U.S. GAAP. (In thousands) December 31, 2015 September 30, 2015 Current assets $ 225,500 $ 251,389 Noncurrent assets 118,600 112,156 Current liabilities 138,781 178,784 Noncurrent liabilities 71,700 63,643 For the Quarter Ended (In thousands) December 31, 2015 September 30, 2015 Net sales $ 151,600 $ — Gross profit 18,000 — Net income 5,843 — Included in the Joint Venture's net income for the quarter ended December 31, 2015 is a gain of $17.1 million that resulted from the allocation of the purchase price, which was finalized during the quarter. That gain was offset by restructuring and impairment charges of $5.3 million and operating losses of $6.0 million. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Apr. 02, 2016 | |
Benefit Plans [Abstract] | |
Benefit Plans | Note 6 – 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) April 2, 2016 March 28, 2015 Pension benefits: Service cost $ 195 $ 272 Interest cost 1,975 2,054 Expected return on plan assets (2,466 ) (2,654 ) Amortization of net loss 774 714 Net periodic benefit cost $ 478 $ 386 Other benefits: Service cost $ 62 $ 96 Interest cost 156 196 Amortization of prior service (credit) cost (224 ) 2 Amortization of net loss 2 3 Net periodic benefit (income) cost $ (4 ) $ 297 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Apr. 02, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 7 – 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. It 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. 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 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 April 2, 2016 were $6.6 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Apr. 02, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 8 – Income Taxes The Company's effective tax rate for the first quarter of 2016 was 35 percent compared with 34 percent for the same period last year. The items impacting the effective tax rate for the first quarter of 2016 were primarily attributable to reductions for the U.S. production activities deduction of $0.9 million and the effect of foreign tax rates lower than statutory tax rates of $1.1 million. These items were partially offset by the provision for state income taxes, net of the federal benefit, of $0.8 million and the recording of the basis difference in unconsolidated affiliates of $1.0 million. 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. 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 2012 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 is currently auditing the Company's 2013 federal tax return. 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. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 3 Months Ended |
Apr. 02, 2016 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income | Note 9 – 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 April 2, 2016 (In thousands) Cumulative Translation Adjustment Unrealized (Losses)/Gains on Derivatives Minimum Pension/OPEB Liability Adjustment Unrealized Gains on Equity Investments Total Balance at December 26, 2015 $ (24,773 ) $ (2,009 ) $ (28,429 ) $ 221 $ (54,990 ) Other comprehensive income (loss) before reclassifications (337 ) 457 760 14 894 Amounts reclassified from accumulated OCI — 137 412 — 549 Net current-period other comprehensive income (337 ) 594 1,172 14 1,443 Balance at April 2, 2016 $ (25,110 ) $ (1,415 ) $ (27,257 ) $ 235 $ (53,547 ) 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 ) Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended (In thousands) April 2, 2016 March 28, 2015 Affected line item Unrealized losses/(gains) on derivatives: Commodity contracts $ 237 $ 762 Cost of goods sold Interest rate swap 108 106 Interest expense (208 ) (229 ) Income tax expense 137 639 Net of tax — — Noncontrolling interest $ 137 $ 639 Net of tax and noncontrolling interest Amortization of net loss and prior service cost on employee benefit plans $ 552 $ 719 Selling, general, and administrative expense (140 ) (198 ) Income tax expense 412 521 Net of tax — — Noncontrolling interest $ 412 $ 521 Net of tax and noncontrolling interest |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 3 Months Ended |
Apr. 02, 2016 | |
Recently Issued Accounting Standards [Abstract] | |
Recently Issued Accounting Standards | Note 10 – Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board (FASB) issued ASU (Accounting Standards Update) No. 2015-09, Compensation – Stock Compensation (Topic 718): Improvement to Employee Share-Based Payment Accounting In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) (ASU 2016-02) In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest (Topic 835-30): Simplifying the Presentation of Debt Issue Costs (ASU 2015-03). The ASU simplifies the presentation of debt issuance costs by requiring debt issuance costs related to a recognized debt liability to be presented on the balance sheet as a direct deduction from the debt liability rather than as a separate asset. I The Company adopted ASU 2015-03 effective December 27, 2015. The adoption of the ASU did not have a material impact on the Company's Condensed Consolidated Financial Statements. In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Subsequent Event
Subsequent Event | 3 Months Ended |
Apr. 02, 2016 | |
Subsequent Event [Abstract] | |
Subsequent Event [Text Block] | Note 11 – Subsequent Event In February 2016, the Company entered into an |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Segment Information [Abstract] | |
Summary of segment information | Summarized segment information is as follows: For the Quarter Ended April 2, 2016 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 368,890 $ 134,521 $ 30,706 $ (1,308 ) $ 532,809 Cost of goods sold 313,792 109,229 23,705 (84 ) 446,642 Depreciation and amortization 5,649 2,135 599 537 8,920 Selling, general, and administrative expense 18,290 3,245 2,523 11,722 35,780 Operating income 31,159 19,912 3,879 (13,483 ) 41,467 Interest expense (1,848 ) Other income, net 245 Income before taxes $ 39,864 For the Quarter Ended March 28, 2015 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 361,482 $ 151,036 $ 25,811 $ (1,087 ) $ 537,242 Cost of goods sold 312,690 127,724 21,267 (847 ) 460,834 Depreciation and amortization 5,187 1,655 425 586 7,853 Selling, general, and administrative expense 17,346 2,698 1,854 10,933 32,831 Operating income 26,259 18,959 2,265 (11,759 ) 35,724 Interest expense (2,076 ) Other income, net 105 Income before taxes $ 33,753 |
Segment information by assets | (In thousands) April 2, 2016 December 26, 2015 Segment assets: Piping Systems $ 815,400 $ 811,343 Industrial Metals 193,662 174,897 Climate 41,172 39,876 General Corporate 310,786 312,685 $ 1,361,020 $ 1,338,801 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Inventories [Abstract] | |
Inventories | (In thousands) April 2, 2016 December 26, 2015 Raw materials and supplies $ 53,983 $ 58,987 Work-in-process 37,656 25,161 Finished goods 154,592 161,410 Valuation reserves (5,623 ) (6,180 ) Inventories $ 240,608 $ 239,378 |
Derivative Instruments and He21
Derivative Instruments and Hedging Activities (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
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 April 2, 2016 December 26, 2015 Balance Sheet Location April 2, 2016 December 26, 2015 Hedging instrument: Commodity contracts - gains Other current assets $ 654 $ 60 Other current liabilities $ 122 $ 238 Commodity contracts - losses Other current assets (82 ) — Other current liabilities (979 ) (1,864 ) Foreign currency contracts - gains Other current assets 88 — Other current liabilities — 34 Foreign currency contracts - losses Other current assets — — Other current liabilities — (75 ) Interest rate swap Other assets — — Other liabilities (2,319 ) (1,692 ) Total derivatives (1) $ 660 $ 60 $ (3,176 ) $ (3,359 ) (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 April 2, 2016 March 28, 2015 Fair value hedges: (Loss) gain on commodity contracts (qualifying) Cost of goods sold $ (50 ) $ 213 Gain (loss) on hedged item - Inventory Cost of goods sold 62 (247 ) Undesignated derivatives: Gain on commodity contracts (nonqualifying) Cost of goods sold $ 494 $ 234 |
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 April 2, 2016 (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 $ 873 Cost of goods sold $ 68 Foreign currency contracts 66 Depreciation expense — Interest rate swap (470 ) Interest expense 69 Other (12 ) Other — Total $ 457 Total $ 137 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 Other (24 ) Other — Total $ (837 ) Total $ 639 |
Investment in Unconsolidated 22
Investment in Unconsolidated Affiliates (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Investment in Unconsolidated Affiliates [Abstract] | |
Summarized financial information derived from the Company's equity method investee's consolidated financial statements | The following tables present summarized financial information derived from the Company's equity method investee's combined consolidated financial statements, which are prepared in accordance with U.S. GAAP. (In thousands) December 31, 2015 September 30, 2015 Current assets $ 225,500 $ 251,389 Noncurrent assets 118,600 112,156 Current liabilities 138,781 178,784 Noncurrent liabilities 71,700 63,643 For the Quarter Ended (In thousands) December 31, 2015 September 30, 2015 Net sales $ 151,600 $ — Gross profit 18,000 — Net income 5,843 — |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
Benefit 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) April 2, 2016 March 28, 2015 Pension benefits: Service cost $ 195 $ 272 Interest cost 1,975 2,054 Expected return on plan assets (2,466 ) (2,654 ) Amortization of net loss 774 714 Net periodic benefit cost $ 478 $ 386 Other benefits: Service cost $ 62 $ 96 Interest cost 156 196 Amortization of prior service (credit) cost (224 ) 2 Amortization of net loss 2 3 Net periodic benefit (income) cost $ (4 ) $ 297 |
Accumulated Other Comprehensi24
Accumulated Other Comprehensive Income (Tables) | 3 Months Ended |
Apr. 02, 2016 | |
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 April 2, 2016 (In thousands) Cumulative Translation Adjustment Unrealized (Losses)/Gains on Derivatives Minimum Pension/OPEB Liability Adjustment Unrealized Gains on Equity Investments Total Balance at December 26, 2015 $ (24,773 ) $ (2,009 ) $ (28,429 ) $ 221 $ (54,990 ) Other comprehensive income (loss) before reclassifications (337 ) 457 760 14 894 Amounts reclassified from accumulated OCI — 137 412 — 549 Net current-period other comprehensive income (337 ) 594 1,172 14 1,443 Balance at April 2, 2016 $ (25,110 ) $ (1,415 ) $ (27,257 ) $ 235 $ (53,547 ) 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 ) |
Reclassification adjustments out of accumulated OCI | Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended (In thousands) April 2, 2016 March 28, 2015 Affected line item Unrealized losses/(gains) on derivatives: Commodity contracts $ 237 $ 762 Cost of goods sold Interest rate swap 108 106 Interest expense (208 ) (229 ) Income tax expense 137 639 Net of tax — — Noncontrolling interest $ 137 $ 639 Net of tax and noncontrolling interest Amortization of net loss and prior service cost on employee benefit plans $ 552 $ 719 Selling, general, and administrative expense (140 ) (198 ) Income tax expense 412 521 Net of tax — — Noncontrolling interest $ 412 $ 521 Net of tax and noncontrolling interest |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares shares in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Mar. 28, 2015 | |
Earnings per Common Share [Abstract] | ||
Stock-based awards excluded from the computation of diluted earnings per share (in shares) | 579 | 180 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Apr. 02, 2016USD ($)Segment | Mar. 28, 2015USD ($) | Dec. 26, 2015USD ($)Segment | |
Segment Information [Abstract] | |||
Number of reportable segments | Segment | 3 | 2 | |
Summary of segment information [Abstract] | |||
Net sales | $ 532,809 | $ 537,242 | |
Cost of goods sold | 446,642 | 460,834 | |
Depreciation and amortization | 8,920 | 7,853 | |
Selling, general, and administrative expense | 35,780 | 32,831 | |
Operating income | 41,467 | 35,724 | |
Interest expense | (1,848) | (2,076) | |
Other income, net | 245 | 105 | |
Income before income taxes | 39,864 | 33,753 | |
Segment assets | 1,361,020 | $ 1,338,801 | |
Piping Systems [Member] | |||
Summary of segment information [Abstract] | |||
Segment assets | 815,400 | 811,343 | |
Industrial Metals [Member] | |||
Summary of segment information [Abstract] | |||
Segment assets | 193,662 | 174,897 | |
Climate [Member] | |||
Summary of segment information [Abstract] | |||
Segment assets | 41,172 | 39,876 | |
General Corporate [Member] | |||
Summary of segment information [Abstract] | |||
Segment assets | 310,786 | $ 312,685 | |
Operating Segments [Member] | Piping Systems [Member] | |||
Summary of segment information [Abstract] | |||
Net sales | 368,890 | 361,482 | |
Cost of goods sold | 313,792 | 312,690 | |
Depreciation and amortization | 5,649 | 5,187 | |
Selling, general, and administrative expense | 18,290 | 17,346 | |
Operating income | 31,159 | 26,259 | |
Operating Segments [Member] | Industrial Metals [Member] | |||
Summary of segment information [Abstract] | |||
Net sales | 134,521 | 151,036 | |
Cost of goods sold | 109,229 | 127,724 | |
Depreciation and amortization | 2,135 | 1,655 | |
Selling, general, and administrative expense | 3,245 | 2,698 | |
Operating income | 19,912 | 18,959 | |
Operating Segments [Member] | Climate [Member] | |||
Summary of segment information [Abstract] | |||
Net sales | 30,706 | 25,811 | |
Cost of goods sold | 23,705 | 21,267 | |
Depreciation and amortization | 599 | 425 | |
Selling, general, and administrative expense | 2,523 | 1,854 | |
Operating income | 3,879 | 2,265 | |
Corporate and Eliminations [Member] | |||
Summary of segment information [Abstract] | |||
Net sales | (1,308) | (1,087) | |
Cost of goods sold | (84) | (847) | |
Depreciation and amortization | 537 | 586 | |
Selling, general, and administrative expense | 11,722 | 10,933 | |
Operating income | $ (13,483) | $ (11,759) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Apr. 02, 2016 | Dec. 26, 2015 |
Inventories [Abstract] | ||
Raw materials and supplies | $ 53,983 | $ 58,987 |
Work-in-process | 37,656 | 25,161 |
Finished goods | 154,592 | 161,410 |
Valuation reserves | (5,623) | (6,180) |
Inventories | $ 240,608 | $ 239,378 |
Derivative Instruments and He28
Derivative Instruments and Hedging Activities (Details) $ in Thousands, € in Millions | 3 Months Ended | |||
Apr. 02, 2016USD ($) | Apr. 02, 2016EUR (€) | Dec. 26, 2015USD ($) | ||
Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Assets fair value | [1] | $ 660 | $ 60 | |
Liabilities fair value | [1] | (3,176) | (3,359) | |
Commodity Contracts [Member] | Cash Flow Hedging [Member] | Long [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Open future contracts to purchase copper | $ 23,700 | |||
Time period for open copper future contract purchases | 9 months | |||
Fair value of future contracts with gain (loss) position | $ 21 | |||
Commodity Contracts [Member] | Fair Value Hedging [Member] | Short [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Open future contracts to sell copper | $ 21,000 | |||
Time period for open copper future contract sales | 4 months | |||
Fair value of future contracts with gain (loss) position | $ (307) | |||
Foreign Currency Contracts [Member] | Cash Flow Hedging [Member] | Long [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Open forward contracts to purchase copper | € | € 2.7 | |||
Time period for open copper forward contract purchases | 8 months | |||
Fair value of forward contracts with gain loss position | $ 88 | |||
Other Current Asset [Member] | Commodity Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other current assets: Gain positions | 654 | 60 | ||
Other current assets: Loss positions | (82) | 0 | ||
Other Current Asset [Member] | Foreign Currency Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other current assets: Gain positions | 88 | 0 | ||
Other current assets: Loss 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 | 122 | 238 | ||
Other current liability: Loss positions | (979) | (1,864) | ||
Other Current Liabilities [Member] | Foreign Currency Contracts [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other current liability: Gain positions | 0 | 34 | ||
Other current liability: Loss positions | 0 | (75) | ||
Other Liabilities [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | ||||
Derivatives, Fair Value [Line Items] | ||||
Other liabilities: Loss positions | $ (2,319) | $ (1,692) | ||
[1] | Does not include the impact of cash collateral provided to counterparties. |
Derivative Instruments and He29
Derivative Instruments and Hedging Activities Part 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Apr. 02, 2016 | Mar. 28, 2015 | Dec. 26, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Restricted cash in other current assets as collateral related to open derivative contracts | $ 2,700 | $ 2,600 | |
Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | 457 | $ (837) | |
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | 137 | 639 | |
Commodity Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Deferred net gains (losses), net of tax, included in AOCI | (105) | ||
Commodity Contracts [Member] | Not Designated as Hedging Instrument [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain on commodity contracts (non-qualifying) | 494 | 234 | |
Commodity Contracts [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | 873 | 274 | |
Commodity Contracts [Member] | Cash Flow Hedging [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | 68 | 571 | |
Commodity Contracts [Member] | Fair Value Hedging [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on the derivatives in designated and qualifying fair value hedges | (50) | 213 | |
Foreign Currency Contracts [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Deferred net gains (losses), net of tax, included in AOCI | 184 | ||
Foreign Currency Contracts [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | 66 | (55) | |
Foreign Currency Contracts [Member] | Cash Flow Hedging [Member] | Depreciation Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | 0 | 0 | |
Inventory [Member] | Fair Value Hedging [Member] | Cost of Goods Sold [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) on the derivatives in designated and qualifying fair value hedges | 62 | (247) | |
Interest Rate Swap [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Notional amount | $ 200,000 | ||
Period of interest rate swap | 2 years | ||
Interest rate swap, fixed interest rate | 1.40% | ||
Term loan facility, all-in fixed interest rate | 2.70% | ||
Interest rate swap maturity date | Dec. 11, 2017 | ||
Deferred net gains (losses), net of tax, included in AOCI | $ (1,500) | ||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | (470) | (1,032) | |
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | Interest Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | 69 | 68 | |
Other [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | (12) | (24) | |
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | $ 0 | $ 0 |
Investment in Unconsolidated 30
Investment in Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2015 | Sep. 30, 2015 | Apr. 02, 2016 | |
Balance sheet data [Abstract] | |||
Current assets | $ 225,500 | $ 251,389 | |
Noncurrent assets | 118,600 | 112,156 | |
Current liabilities | 138,781 | 178,784 | |
Noncurrent liabilities | 71,700 | 63,643 | |
Income statement data [Abstract] | |||
Net sales | 151,600 | 0 | |
Gross profit | 18,000 | 0 | |
Net income | 5,843 | $ 0 | |
Tecumseh Products Holdings LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in the joint venture, ownership percentage | 50.00% | ||
Income statement data [Abstract] | |||
Net income | (6,000) | ||
Gain resulted from the allocation of the purchase price included in Joint Venture's net income | 17,100 | ||
Restructuring and impairment charges | $ 5,300 | ||
Second Unconsolidated Affiliate [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in the joint venture, ownership percentage | 50.00% |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Mar. 28, 2015 | |
Pension Benefits [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | $ 195 | $ 272 |
Interest cost | 1,975 | 2,054 |
Expected return on plan assets | (2,466) | (2,654) |
Amortization of net loss | 774 | 714 |
Net periodic benefit (income) cost | 478 | 386 |
Other Benefits [Member] | ||
Components of net periodic benefit cost [Abstract] | ||
Service cost | 62 | 96 |
Interest cost | 156 | 196 |
Amortization of prior service cost (credit) | (224) | 2 |
Amortization of net loss | 2 | 3 |
Net periodic benefit (income) cost | $ (4) | $ 297 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 3 Months Ended |
Apr. 02, 2016USD ($) | |
Commitments and Contingencies [Abstract] | |
Term of guarantees | 1 year |
Payments required to be made under guarantees, maximum | $ 6.6 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Apr. 02, 2016 | Mar. 28, 2015 | |
Income Taxes [Abstract] | ||
Effective tax rate | 35.00% | 34.00% |
Reduction for U.S. production activities | $ 0.9 | $ 1 |
Provision for state income taxes, net of federal benefits | 0.8 | 0.8 |
Effect of foreign adjustments | 1.1 | $ 0.5 |
Effective income tax rate reconciliation equity in earnings losses of unconsolidated affiliate | $ 1 |
Accumulated Other Comprehensi34
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Apr. 02, 2016 | Mar. 28, 2015 | |
Changes in accumulated other comprehensive income [Roll Forward] | ||
Beginning balance | $ (54,990) | $ (42,923) |
Other comprehensive income (loss) before reclassifications | 894 | (7,666) |
Amounts reclassified from accumulated OCI | 549 | 1,160 |
Net current-period other comprehensive income | 1,443 | (6,506) |
Ending balance | (53,547) | (49,429) |
Reclassification adjustments out of AOCI [Abstract] | ||
Cost of goods sold | (446,642) | (460,834) |
Interest expense | (1,848) | (2,076) |
Net of tax and noncontrolling interest | 594 | (198) |
Selling, general, and administrative expense | (35,780) | (32,831) |
Cumulative Translation Adjustment [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Beginning balance | (24,773) | (7,076) |
Other comprehensive income (loss) before reclassifications | (337) | (7,697) |
Amounts reclassified from accumulated OCI | 0 | 0 |
Net current-period other comprehensive income | (337) | (7,697) |
Ending balance | (25,110) | (14,773) |
Unrealized (Losses)/Gains on Derivatives [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Beginning balance | (2,009) | (953) |
Other comprehensive income (loss) before reclassifications | 457 | (837) |
Amounts reclassified from accumulated OCI | 137 | 639 |
Net current-period other comprehensive income | 594 | (198) |
Ending balance | (1,415) | (1,151) |
Unrealized (Losses)/Gains on Derivatives [Member] | Amount Reclassified from AOCI [Member] | ||
Reclassification adjustments out of AOCI [Abstract] | ||
Cost of goods sold | 237 | 762 |
Interest expense | 108 | 106 |
Income tax expense | (208) | (229) |
Net of tax | 137 | 639 |
Noncontrolling interest | 0 | 0 |
Net of tax and noncontrolling interest | 137 | 639 |
Minimum Pension/OPEB Liability Adjustment [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Beginning balance | (28,429) | (35,164) |
Other comprehensive income (loss) before reclassifications | 760 | 895 |
Amounts reclassified from accumulated OCI | 412 | 521 |
Net current-period other comprehensive income | 1,172 | 1,416 |
Ending balance | (27,257) | (33,748) |
Minimum Pension/OPEB Liability Adjustment [Member] | Amount Reclassified from AOCI [Member] | ||
Reclassification adjustments out of AOCI [Abstract] | ||
Selling, general, and administrative expense | 552 | 719 |
Income tax expense | (140) | (198) |
Net of tax | 412 | 521 |
Noncontrolling interest | 0 | 0 |
Net of tax and noncontrolling interest | 412 | 521 |
Unrealized Gains on Equity Investments [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Beginning balance | 221 | 270 |
Other comprehensive income (loss) before reclassifications | 14 | (27) |
Amounts reclassified from accumulated OCI | 0 | 0 |
Net current-period other comprehensive income | 14 | (27) |
Ending balance | $ 235 | $ 243 |
Subsequent Event (Details)
Subsequent Event (Details) - Jungwoo Metal Ind. Co., LTD [Member] $ in Millions, ₩ in Billions | Apr. 26, 2016USD ($) | Apr. 26, 2016KRW (₩) |
Subsequent Event [Line Items] | ||
Equity method investment, ownership percentage | 60.00% | 60.00% |
Investments in joint venture | $ 22 | ₩ 25 |