Mueller Industries (MLI) 10-Q 28 Jul 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 02, 2016	Jul. 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		57,172,780
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Jul. 2, 2016

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract]
Net sales	$ 544,071	$ 555,593	$ 1,076,880	$ 1,092,835
Cost of goods sold	456,060	470,365	902,702	931,199
Depreciation and amortization	9,061	8,188	17,981	16,041
Selling, general, and administrative expense	34,514	33,420	70,294	66,251
Gain on sale of assets	0	(15,376)	0	(15,376)
Severance	0	3,442	0	3,442
Operating income	44,436	55,554	85,903	91,278
Interest expense	(1,692)	(2,219)	(3,540)	(4,295)
Other income, net	515	265	760	370
Income before income taxes	43,259	53,600	83,123	87,353
Income tax expense	(14,005)	(19,738)	(28,126)	(31,151)
(Loss) income from unconsolidated affiliates, net of tax	(995)	0	1,927	0
Consolidated net income	28,259	33,862	56,924	56,202
Net income attributable to noncontrolling interests	(462)	(211)	(497)	(573)
Net income attributable to Mueller Industries, Inc.	$ 27,797	$ 33,651	$ 56,427	$ 55,629
Weighted average shares for basic earnings per share (in shares)	56,511	56,247	56,489	56,220
Effect of dilutive stock-based awards (in shares)	418	743	456	737
Adjusted weighted average shares for diluted earnings per share (in shares)	56,929	56,990	56,945	56,957
Basic earnings per share (in dollars per share)	$ 0.49	$ 0.60	$ 1	$ 0.99
Diluted earnings per share (in dollars per share)	0.49	0.59	0.99	0.98
Dividends per share (in dollars per share)	$ 0.100	$ 0.075	$ 0.175	$ 0.150

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jul. 02, 2016		Jun. 27, 2015		Jul. 02, 2016		Jun. 27, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Consolidated net income	$ 28,259		$ 33,862		$ 56,924		$ 56,202
Other comprehensive income (loss), net of tax:
Foreign currency translation	(10,186)		7,056		(11,297)		(1,348)
Net change with respect to derivative instruments and hedging activities	700	[1]	(903)	[2]	1,294	[3]	(1,101)	[4]
Net actuarial (gain) loss on pension and postretirement obligations	1,530	[5]	(647)	[6]	2,702	[7]	769	[8]
Attributable to unconsolidated affiliates	1,438	[9]	0		1,438	[9]	0
Other, net	9		34		23		7
Total other comprehensive (loss) income	(6,509)		5,540		(5,840)		(1,673)
Consolidated comprehensive income	21,750		39,402		51,084		54,529
Comprehensive loss attributable to noncontrolling interests	123		520		862		175
Comprehensive income attributable to Mueller Industries, Inc.	$ 21,873		$ 39,922		$ 51,946		$ 54,704
[1]	Net of tax of $(266)
[2]	Net of tax of $166
[3]	Net of tax of $(487)
[4]	Net of tax of $440
[5]	Net of tax of $(522)
[6]	Net of tax of $216
[7]	Net of tax of $(920)
[8]	Net of tax of $(286)
[9]	Net of tax of $(812)

CONDENSED STATEMENTS OF COMPREH

CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net change with respect to derivative instruments and hedging activities, tax	$ (266)	$ 166	$ (487)	$ 440
Net actuarial (gain) loss on pension and postretirement obligations, tax	(522)	$ 216	(920)	$ (286)
Attributable to unconsolidated affiliates, tax	$ (812)		$ (812)

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Current assets:
Cash and cash equivalents	$ 283,161	$ 274,844
Accounts receivable, less allowance for doubtful accounts of $565 in 2016 and $623 in 2015	305,332	251,571
Inventories	249,954	239,378
Other current assets	27,276	34,608
Total current assets	865,723	800,401
Property, plant, and equipment, net	297,939	280,224
Goodwill, net	128,339	120,252
Intangible assets, net	39,050	40,636
Investment in unconsolidated affiliates	70,077	65,900
Other assets	19,347	31,388
Total assets	1,420,475	1,338,801
Current liabilities:
Current portion of debt	16,226	11,760
Accounts payable	105,138	88,051
Accrued wages and other employee costs	31,199	35,636
Other current liabilities	65,387	73,982
Total current liabilities	217,950	209,429
Long-term debt, less current portion	213,646	204,250
Pension liabilities	15,435	17,449
Postretirement benefits other than pensions	17,268	17,427
Environmental reserves	20,830	20,943
Deferred income taxes	13,644	7,161
Other noncurrent liabilities	2,930	2,440
Total liabilities	501,703	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 57,167,406 in 2016 and 57,158,608 in 2015	802	802
Additional paid-in capital	274,928	271,158
Retained earnings	1,110,010	1,063,543
Accumulated other comprehensive loss	(59,472)	(54,990)
Treasury common stock, at cost	(453,613)	(453,228)
Total Mueller Industries, Inc. stockholders' equity	872,655	827,285
Noncontrolling interests	46,117	32,417
Total equity	918,772	859,702
Commitments and contingencies
Total liabilities and equity	$ 1,420,475	$ 1,338,801

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Current assets:
Allowance for doubtful accounts	$ 565	$ 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)	57,167,406	57,158,608

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015
Cash flows from operating activities
Consolidated net income	$ 56,924	$ 56,202
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization	18,162	16,293
Stock-based compensation expense	2,874	2,966
Equity in earnings of unconsolidated affiliates	(1,927)	0
Gain on disposal of assets	(555)	(15,392)
Impairment charges	0	570
Deferred income taxes	3,548	(1,445)
Income tax benefit from exercise of stock options	(186)	(146)
Changes in assets and liabilities, net of businesses acquired:
Receivables	(52,334)	(24,304)
Inventories	1,176	(5,252)
Other assets	17,009	6,963
Current liabilities	(1,314)	(19,629)
Other liabilities	(1,440)	(415)
Other, net	(72)	739
Net cash provided by operating activities	41,865	17,150
Cash flows from investing activities
Capital expenditures	(10,248)	(15,969)
Acquisition of businesses, net of cash acquired	(20,533)	(35,978)
Net withdrawals from restricted cash balances	1,508	3,486
Proceeds from sales of assets	1,482	5,518
Net cash used in investing activities	(27,791)	(42,943)
Cash flows from financing activities
Repayments of long-term debt	(500)	(500)
Dividends paid to stockholders of Mueller Industries, Inc.	(9,887)	(8,435)
Issuance (repayment) of debt by joint ventures, net	4,426	(17,750)
Issuance of debt	2,000	0
Net cash received to settle stock-based awards	326	125
Income tax benefit from exercise of stock options	186	146
Net cash used in financing activities	(3,449)	(26,414)
Effect of exchange rate changes on cash	(2,308)	(780)
Increase (decrease) in cash and cash equivalents	8,317	(52,987)
Cash and cash equivalents at the beginning of the period	274,844	352,134
Cash and cash equivalents at the end of the period	$ 283,161	$ 299,147

Earnings per Common Share

Earnings per Common Share	6 Months Ended
	Jul. 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 418 thousand and 24 thousand stock options were excluded from the computation of diluted earnings per share for the quarters ended July 2, 2016 and June 27, 2015, respectively, because they were antidilutive.

Acquisitions and Dispositions

Acquisitions and Dispositions	6 Months Ended
	Jul. 02, 2016
Acquisitions and Dispositions [Abstract]
Acquisitions and Dispositions	Note 2 – Acquisitions and Dispositions Acquisitions On April 26, 2016, the Company entered into an agreement providing for the purchase of a 60.0 percent equity interest in Jungwoo Metal Ind. Co., LTD (Jungwoo-Mueller) for approximately $21.8 million in cash. Jungwoo-Mueller manufactures copper-based pipe joining products and is headquartered in Seoul, South Korea and serves markets worldwide. It complements the Company's existing copper fittings businesses in the Piping Systems segment and is reported in the Company's Condensed Consolidated Financial Statements one month in arrears. This acquisition was accounted for using the acquisition method of accounting whereby the total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on respective fair values. The fair value of the assets acquired totaled $50.1 million, consisting primarily of property, plant, and equipment of $25.9 million, inventories of $15.8 million, accounts receivable of $5.6 million, other current assets of $1.5 million and cash of $1.3 million. The fair value of the liabilities assumed totaled $17.3 million, consisting primarily of long-term debt of $8.7 million, accounts payable of $7.3 million, pension liabilities of $0.8 million, and other current liabilities of $0.5 million. Of the remaining purchase price, $3.6 million was allocated to non-deductible goodwill. The noncontrolling interest in Jungwoo-Mueller is $14.6 million. The purchase price allocation is provisional as of July 2, 2016 and subject to change upon completion of the final valuation of the long-lived assets and noncontrolling interest during the measurement period. During the second quarter of 2015, the Company recognized approximately $3.4 million of severance costs related to the reorganization of Yorkshire Copper Tube, acquired in 2014. The valuations of businesses acquired during 2015 have been finalized. During the second quarter of 2016, a deferred tax liability of $4.1 million was recorded that resulted from a basis difference in the long-lived assets acquired from Great Lakes Copper Ltd. This resulted in an increase in goodwill. There were no changes to the purchase price allocations for Turbotec Products, Inc. or Sherwood Valve, LLC from the amounts presented in the Company's 2015 Annual Report on Form 10-K. Dispositions On June 1, 2015, the Company sold certain assets. Simultaneously, the Company entered into a lease agreement with the purchaser of the assets for their continued use for a period of approximately 22 months (Lease Period). The total sales price was $20.2 million, of which $5.0 million was received on June 1, 2015; the Company will receive $5.0 million on December 30, 2016 and the remaining $10.2 million will be received at the end of the Lease Period. This transaction resulted in a pre-tax gain of $15.4 million in the second quarter of 2015, or 17 cents per diluted share after tax. This gain was recognized in the Plumbing & Refrigeration segment.

Segment Information

Segment Information	6 Months Ended
	Jul. 02, 2016
Segment Information [Abstract]
Segment Information	Note 3 –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 first 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, Mueller-Xingrong (the Company's Chinese joint venture), and Jungwoo-Mueller (the Company's South Korean 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 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 July 2, 2016 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 388,662 $ 127,737 $ 31,359 $ (3,687 ) $ 544,071 Cost of goods sold 333,356 104,874 22,448 (4,618 ) 456,060 Depreciation and amortization 5,787 2,120 618 536 9,061 Selling, general, and administrative expense 16,560 3,619 2,456 11,879 34,514 Operating income 32,959 17,124 5,837 (11,484 ) 44,436 Interest expense (1,692 ) Other income, net 515 Income before taxes $ 43,259 For the Quarter Ended June 27, 2015 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 379,750 $ 145,228 $ 31,498 $ (883 ) $ 555,593 Cost of goods sold 326,338 120,808 24,134 (915 ) 470,365 Depreciation and amortization 5,335 1,643 614 596 8,188 Selling, general, and administrative expense 16,776 2,302 2,500 11,842 33,420 Gain on sale of assets (15,376 ) — — — (15,376 ) Severance 3,442 — — — 3,442 Operating income 43,235 20,475 4,250 (12,406 ) 55,554 Interest expense (2,219 ) Other income, net 265 Income before taxes $ 53,600 Segment information (continued): For the Six Months Ended July 2, 2016 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 757,552 $ 262,258 $ 62,065 $ (4,995 ) $ 1,076,880 Cost of goods sold 647,148 214,103 46,153 (4,702 ) 902,702 Depreciation and amortization 11,436 4,255 1,217 1,073 17,981 Selling, general, and administrative expense 34,850 6,864 4,979 23,601 70,294 Operating income 64,118 37,036 9,716 (24,967 ) 85,903 Interest expense (3,540 ) Other income, net 760 Income before taxes $ 83,123 For the Six Months Ended June 27, 2015 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 741,232 $ 296,264 $ 57,309 $ (1,970 ) $ 1,092,835 Cost of goods sold 639,028 248,532 45,401 (1,762 ) 931,199 Depreciation and amortization 10,522 3,298 1,039 1,182 16,041 Selling, general, and administrative expense 34,122 5,000 4,354 22,775 66,251 Gain on sale of assets (15,376 ) — — — (15,376 ) Severance 3,442 — — — 3,442 Operating income 69,494 39,434 6,515 (24,165 ) 91,278 Interest expense (4,295 ) Other income, net 370 Income before taxes $ 87,353 (In thousands) July 2, 2016 December 26, 2015 Segment assets: Piping Systems $ 863,138 $ 811,343 Industrial Metals 160,655 153,102 Climate 66,383 61,672 General Corporate 330,299 312,684 $ 1,420,475 $ 1,338,801

Inventories

Inventories	6 Months Ended
	Jul. 02, 2016
Inventories [Abstract]
Inventories	Note 4 – Inventories (In thousands) July 2, 2016 December 26, 2015 Raw materials and supplies $ 64,206 $ 58,987 Work-in-process 36,604 25,161 Finished goods 154,593 161,410 Valuation reserves (5,449 ) (6,180 ) Inventories $ 249,954 $ 239,378

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	6 Months Ended
	Jul. 02, 2016
Derivative Instruments and Hedging Activities [Abstract]
Derivative Instruments and Hedging Activities	Note 5 – 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 or received (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 July 2, 2016, the Company held open futures contracts to purchase approximately $22.3 million of copper over the next 18 months related to fixed price sales orders. The fair value of those futures contracts was a $1.7 million net gain position, which was determined by obtaining quoted market prices (level 1 within the fair value hierarchy). In the next 12 months, the Company will reclassify into earnings realized gains or losses relating to cash flow hedges. At July 2, 2016, this amount was approximately $979 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 July 2, 2016, the Company held open futures contracts to sell approximately $15.5 million of copper over the next six months related to copper inventory. The fair value of those futures contracts was a $498 thousand net loss position, which was determined by obtaining quoted market prices (level 1 within the fair value hierarchy). 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 $2.4 million loss position at July 2, 2016, and there was $1.5 million of deferred 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 the 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 July 2, 2016 December 26, 2015 Balance Sheet Location July 2, 2016 December 26, 2015 Hedging instrument: Commodity contracts - gains Other current assets $ 1,761 $ 60 Other current liabilities $ 24 $ 238 Commodity contracts - losses Other current assets (85 ) — Other current liabilities (522 ) (1,864 ) Interest rate swap Other assets — — Other liabilities (2,407 ) (1,692 ) Total derivatives (1) $ 1,676 $ 60 $ (2,905 ) $ (3,318 ) (1) The following tables summarize the effects of derivative instruments on our Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended (In thousands) Location July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Fair value hedges: (Loss) gain on commodity contracts (qualifying) Cost of goods sold $ (332 ) $ 1,256 $ (383 ) $ 1,468 Gain (loss) on hedged item - Inventory Cost of goods sold 288 (1,403 ) 350 (1,650 ) Undesignated derivatives: Gain on commodity contracts (nonqualifying) Cost of goods sold 1,326 1,046 1,820 1,279 The following tables summarize amounts recognized in and reclassified from AOCI during the period: Three Months Ended July 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 $ 2,464 Cost of goods sold $ (1,359 ) Interest rate swap (115 ) Interest expense 59 Other (349 ) Other — Total $ 2,000 Total $ (1,300 ) Three Months Ended June 27, 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 $ (1,159 ) Cost of goods sold $ (81 ) Interest rate swap 267 Interest expense 63 Other 7 — Total $ (885 ) $ (18 ) Six Months Ended July 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 $ 3,337 Cost of goods sold $ (1,291 ) Interest rate swap (585 ) Interest expense 128 Other (295 ) Other — Total $ 2,457 $ (1,163 ) Derivative instrument information (continued): Six Months Ended June 27, 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 $ (885 ) Cost of goods sold $ 490 Interest rate swap (765 ) Interest expense 131 Other (72 ) Other — Total $ (1,722 ) $ 621 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 July 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 July 2, 2016 and December 26, 2015, the Company had recorded restricted cash in other current assets of $1.0 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	6 Months Ended
	Jul. 02, 2016
Investment in Unconsolidated Affiliates [Abstract]
Investment in Unconsolidated Affiliates	Note 6 – 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 the third quarter of 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 respective 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 investees' net income or loss one quarter in arrears as income (loss) from unconsolidated affiliates, net of tax, in the Condensed Consolidated Statements of Income. The following tables present summarized financial information derived from the Company's equity method investees' combined consolidated financial statements, which are prepared in accordance with U.S. GAAP. (In thousands) March 31, 2016 September 30, 2015 Current assets $ 248,511 $ 251,389 Noncurrent assets 119,900 112,156 Current liabilities 158,000 178,784 Noncurrent liabilities 70,237 63,643 March 31, 2016 (In thousands) For the Quarter Ended For the Six Months Ended Net sales $ 138,900 $ 290,500 Gross profit 19,500 37,500 Net income (1,990 ) 3,854 Included in the equity method investees' net income for the six months ended March 31, 2016 is a gain of $17.1 million that resulted from the allocation of the purchase price, which was finalized during the quarter ended December 31, 2015. That gain was offset by restructuring and impairment charges of $5.3 million and net losses of $8.0 million.

Benefit Plans

Benefit Plans	6 Months Ended
	Jul. 02, 2016
Benefit Plans [Abstract]
Benefit Plans	Note 7 –Benefit 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 are as follows: For the Quarter Ended For the Six Months Ended (In thousands) July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Pension benefits: Service cost $ 165 $ 228 $ 360 $ 500 Interest cost 1,969 2,027 3,944 4,081 Expected return on plan assets (2,466 ) (2,655 ) (4,932 ) (5,309 ) Amortization of net loss 746 656 1,520 1,370 Net periodic benefit cost $ 414 $ 256 $ 892 $ 642 Other benefits: Service cost $ 60 $ 84 $ 122 $ 180 Interest cost 149 190 305 386 Amortization of prior service (credit) cost (224 ) 1 (448 ) 3 Amortization of net gain (20 ) (16 ) (18 ) (13 ) Net periodic benefit (income) cost $ (35 ) $ 259 $ (39 ) $ 556

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 02, 2016
Commitments and Contingencies [Abstract]
Commitments and Contingencies	Note 8 – 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 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 July 2, 2016 were $7.0 million.

Income Taxes

Income Taxes	6 Months Ended
	Jul. 02, 2016
Income Taxes [Abstract]
Income Taxes	Note 9 – Income Taxes The Company's effective tax rate for the second quarter of 2016 was 32 percent compared with 37 percent for the same period last year. The items impacting the effective tax rate for the second quarter of 2016 were 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 $1.4 million. These items were partially offset by the provision for state income taxes, net of the federal benefit, of $0.8 million and miscellaneous items totaling $0.5 million. For the second quarter of 2015, the difference between the effective tax rate and the amount computed using the U.S. federal statutory tax rate was primarily attributable to increases for state income taxes, net of the federal benefit, of $1.4 million and miscellaneous items totaling $0.6 million. These items were partially offset by reductions for the U.S. production activities deduction of $1.2 million. The Company's effective tax rate for the first half of 2016 was 34 percent compared with 36 percent for the same period last year. The items impacting the effective tax rate for the first half of 2016 were primarily attributable to reductions for the U.S. production activities deduction of $1.9 million and the effect of foreign tax rates lower than statutory tax rates of $2.5 million. These items were partially offset by the provision for state income taxes, net of the federal benefit, of $1.7 million, and miscellaneous items totaling $1.7 million. For the first half of 2015, the difference between the effective tax rate and what would be computed using the U.S. federal statutory tax rate was attributable to increases for state income taxes, net of the federal benefit, of $2.2 million and miscellaneous other items totaling $1.0 million. These items were partially offset by reductions for the U.S. production activities deduction of $2.2 million and the effect of foreign income taxes lower than statutory tax rates and other foreign adjustments of $0.4 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	6 Months Ended
	Jul. 02, 2016
Accumulated Other Comprehensive Income [Abstract]
Accumulated Other Comprehensive Income	Note 10 – 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, unrealized gains and losses on marketable securities classified as available-for-sale, and other comprehensive income attributable to unconsolidated affiliates. The following table provides changes in AOCI by component, net of taxes and noncontrolling interests (amounts in parentheses indicate debits to AOCI): For the Six Months Ended July 2, 2016 (In thousands) Cumulative Translation Adjustment Unrealized (Losses)/Gains on Derivatives Minimum Pension/OPEB Liability Adjustment Other Total Balance at December 26, 2015 $ (24,773 ) $ (2,009 ) $ (28,429 ) $ 221 $ (54,990 ) Other comprehensive income (loss) before reclassifications (9,939 ) 2,457 1,910 1,461 (4,111 ) Amounts reclassified from AOCI — (1,163 ) 792 — (371 ) Net current-period other comprehensive income (9,939 ) 1,294 2,702 1,461 (4,482 ) Balance at July 2, 2016 $ (34,712 ) $ (715 ) $ (25,727 ) $ 1,682 $ (59,472 ) For the Six Months Ended June 27, 2015 (In thousands) Cumulative Translation Adjustment Unrealized (Losses)/Gains on Derivatives Minimum Pension/OPEB Liability Adjustment Other Total Balance at December 27, 2014 $ (7,076 ) $ (953 ) $ (35,164 ) $ 270 $ (42,923 ) Other comprehensive income (loss) before reclassifications (947 ) (1,722 ) (229 ) 7 (2,891 ) Amounts reclassified from AOCI — 621 998 — 1,619 Net current-period other comprehensive income (947 ) (1,101 ) 769 7 (1,272 ) Balance at June 27, 2015 $ (8,023 ) $ (2,054 ) $ (34,395 ) $ 277 $ (44,195 ) Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Three Months Ended (In thousands) July 2, 2016 June 27, 2015 Affected line item Unrealized losses/(gains) on derivatives: Commodity contracts $ (2,108 ) $ (111 ) Cost of goods sold Interest rate swap 92 98 Interest expense 716 (5 ) Income tax expense (1,300 ) (18 ) Net of tax — — Noncontrolling interests $ (1,300 ) $ (18 ) Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 502 $ 641 Selling, general, and administrative expense (122 ) (164 ) Income tax expense 380 477 Net of tax — — Noncontrolling interests $ 380 $ 477 Net of tax and noncontrolling interests Amount reclassified from AOCI For the Six Months Ended (In thousands) July 2, 2016 June 27, 2015 Affected line item Unrealized losses/(gains) on derivatives: Commodity contracts $ (1,871 ) $ 651 Cost of goods sold Interest rate swap 200 204 Interest expense 508 (234 ) Income tax expense (1,163 ) 621 Net of tax — — Noncontrolling interests $ (1,163 ) $ 621 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 1,054 $ 1,360 Selling, general, and administrative expense (262 ) (362 ) Income tax expense 792 998 Net of tax — — Noncontrolling interests $ 792 $ 998 Net of tax and noncontrolling interests

Noncontrolling Interests

Noncontrolling Interests	6 Months Ended
	Jul. 02, 2016
Noncontrolling Interests [Abstract]
Noncontrolling Interests	Note 11 – Noncontrolling Interests (In thousands) Noncontrolling Interests Balance at December 26, 2015 $ 32,417 Purchase of Jungwoo-Mueller 14,562 Net income attributable to noncontrolling interests 497 Other comprehensive loss attributable to noncontrolling interests, net of tax: Foreign currency translation (1,359 ) Balance at July 2, 2016 $ 46,117

Recently Issued Accounting Stan

Recently Issued Accounting Standards	6 Months Ended
	Jul. 02, 2016
Recently Issued Accounting Standards [Abstract]
Recently Issued Accounting Standards	Note 12 – Recently Issued Accounting Standards In March 2016, the Financial Accounting Standards Board (FASB) issued ASU (Accounting Standards Update) No. 2016-09, 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)

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 02, 2016
Segment Information [Abstract]
Summary of segment information	Summarized segment information is as follows: For the Quarter Ended July 2, 2016 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 388,662 $ 127,737 $ 31,359 $ (3,687 ) $ 544,071 Cost of goods sold 333,356 104,874 22,448 (4,618 ) 456,060 Depreciation and amortization 5,787 2,120 618 536 9,061 Selling, general, and administrative expense 16,560 3,619 2,456 11,879 34,514 Operating income 32,959 17,124 5,837 (11,484 ) 44,436 Interest expense (1,692 ) Other income, net 515 Income before taxes $ 43,259 For the Quarter Ended June 27, 2015 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 379,750 $ 145,228 $ 31,498 $ (883 ) $ 555,593 Cost of goods sold 326,338 120,808 24,134 (915 ) 470,365 Depreciation and amortization 5,335 1,643 614 596 8,188 Selling, general, and administrative expense 16,776 2,302 2,500 11,842 33,420 Gain on sale of assets (15,376 ) — — — (15,376 ) Severance 3,442 — — — 3,442 Operating income 43,235 20,475 4,250 (12,406 ) 55,554 Interest expense (2,219 ) Other income, net 265 Income before taxes $ 53,600 Segment information (continued): For the Six Months Ended July 2, 2016 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 757,552 $ 262,258 $ 62,065 $ (4,995 ) $ 1,076,880 Cost of goods sold 647,148 214,103 46,153 (4,702 ) 902,702 Depreciation and amortization 11,436 4,255 1,217 1,073 17,981 Selling, general, and administrative expense 34,850 6,864 4,979 23,601 70,294 Operating income 64,118 37,036 9,716 (24,967 ) 85,903 Interest expense (3,540 ) Other income, net 760 Income before taxes $ 83,123 For the Six Months Ended June 27, 2015 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 741,232 $ 296,264 $ 57,309 $ (1,970 ) $ 1,092,835 Cost of goods sold 639,028 248,532 45,401 (1,762 ) 931,199 Depreciation and amortization 10,522 3,298 1,039 1,182 16,041 Selling, general, and administrative expense 34,122 5,000 4,354 22,775 66,251 Gain on sale of assets (15,376 ) — — — (15,376 ) Severance 3,442 — — — 3,442 Operating income 69,494 39,434 6,515 (24,165 ) 91,278 Interest expense (4,295 ) Other income, net 370 Income before taxes $ 87,353
Segment information by assets	(In thousands) July 2, 2016 December 26, 2015 Segment assets: Piping Systems $ 863,138 $ 811,343 Industrial Metals 160,655 153,102 Climate 66,383 61,672 General Corporate 330,299 312,684 $ 1,420,475 $ 1,338,801

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jul. 02, 2016
Inventories [Abstract]
Inventories	(In thousands) July 2, 2016 December 26, 2015 Raw materials and supplies $ 64,206 $ 58,987 Work-in-process 36,604 25,161 Finished goods 154,593 161,410 Valuation reserves (5,449 ) (6,180 ) Inventories $ 249,954 $ 239,378

Derivative Instruments and He22

Derivative Instruments and Hedging Activities (Tables)	6 Months Ended
	Jul. 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 July 2, 2016 December 26, 2015 Balance Sheet Location July 2, 2016 December 26, 2015 Hedging instrument: Commodity contracts - gains Other current assets $ 1,761 $ 60 Other current liabilities $ 24 $ 238 Commodity contracts - losses Other current assets (85 ) — Other current liabilities (522 ) (1,864 ) Interest rate swap Other assets — — Other liabilities (2,407 ) (1,692 ) Total derivatives (1) $ 1,676 $ 60 $ (2,905 ) $ (3,318 ) (1)
Schedule of fair value hedges	The following tables summarize the effects of derivative instruments on our Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended (In thousands) Location July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Fair value hedges: (Loss) gain on commodity contracts (qualifying) Cost of goods sold $ (332 ) $ 1,256 $ (383 ) $ 1,468 Gain (loss) on hedged item - Inventory Cost of goods sold 288 (1,403 ) 350 (1,650 ) Undesignated derivatives: Gain on commodity contracts (nonqualifying) Cost of goods sold 1,326 1,046 1,820 1,279
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 July 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 $ 2,464 Cost of goods sold $ (1,359 ) Interest rate swap (115 ) Interest expense 59 Other (349 ) Other — Total $ 2,000 Total $ (1,300 ) Three Months Ended June 27, 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 $ (1,159 ) Cost of goods sold $ (81 ) Interest rate swap 267 Interest expense 63 Other 7 — Total $ (885 ) $ (18 ) Six Months Ended July 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 $ 3,337 Cost of goods sold $ (1,291 ) Interest rate swap (585 ) Interest expense 128 Other (295 ) Other — Total $ 2,457 $ (1,163 ) Derivative instrument information (continued): Six Months Ended June 27, 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 $ (885 ) Cost of goods sold $ 490 Interest rate swap (765 ) Interest expense 131 Other (72 ) Other — Total $ (1,722 ) $ 621

Investment in Unconsolidated 23

Investment in Unconsolidated Affiliates (Tables)	6 Months Ended
	Jul. 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 investees' combined consolidated financial statements, which are prepared in accordance with U.S. GAAP. (In thousands) March 31, 2016 September 30, 2015 Current assets $ 248,511 $ 251,389 Noncurrent assets 119,900 112,156 Current liabilities 158,000 178,784 Noncurrent liabilities 70,237 63,643 March 31, 2016 (In thousands) For the Quarter Ended For the Six Months Ended Net sales $ 138,900 $ 290,500 Gross profit 19,500 37,500 Net income (1,990 ) 3,854

Benefit Plans (Tables)

Benefit Plans (Tables)	6 Months Ended
	Jul. 02, 2016
Benefit Plans [Abstract]
Components of net periodic benefit costs	The components of net periodic benefit cost are as follows: For the Quarter Ended For the Six Months Ended (In thousands) July 2, 2016 June 27, 2015 July 2, 2016 June 27, 2015 Pension benefits: Service cost $ 165 $ 228 $ 360 $ 500 Interest cost 1,969 2,027 3,944 4,081 Expected return on plan assets (2,466 ) (2,655 ) (4,932 ) (5,309 ) Amortization of net loss 746 656 1,520 1,370 Net periodic benefit cost $ 414 $ 256 $ 892 $ 642 Other benefits: Service cost $ 60 $ 84 $ 122 $ 180 Interest cost 149 190 305 386 Amortization of prior service (credit) cost (224 ) 1 (448 ) 3 Amortization of net gain (20 ) (16 ) (18 ) (13 ) Net periodic benefit (income) cost $ (35 ) $ 259 $ (39 ) $ 556

Accumulated Other Comprehensi25

Accumulated Other Comprehensive Income (Tables)	6 Months Ended
	Jul. 02, 2016
Accumulated Other Comprehensive Income [Abstract]
Changes in AOCI by component, net of taxes and noncontrolling interest	The following table provides changes in AOCI by component, net of taxes and noncontrolling interests (amounts in parentheses indicate debits to AOCI): For the Six Months Ended July 2, 2016 (In thousands) Cumulative Translation Adjustment Unrealized (Losses)/Gains on Derivatives Minimum Pension/OPEB Liability Adjustment Other Total Balance at December 26, 2015 $ (24,773 ) $ (2,009 ) $ (28,429 ) $ 221 $ (54,990 ) Other comprehensive income (loss) before reclassifications (9,939 ) 2,457 1,910 1,461 (4,111 ) Amounts reclassified from AOCI — (1,163 ) 792 — (371 ) Net current-period other comprehensive income (9,939 ) 1,294 2,702 1,461 (4,482 ) Balance at July 2, 2016 $ (34,712 ) $ (715 ) $ (25,727 ) $ 1,682 $ (59,472 ) For the Six Months Ended June 27, 2015 (In thousands) Cumulative Translation Adjustment Unrealized (Losses)/Gains on Derivatives Minimum Pension/OPEB Liability Adjustment Other Total Balance at December 27, 2014 $ (7,076 ) $ (953 ) $ (35,164 ) $ 270 $ (42,923 ) Other comprehensive income (loss) before reclassifications (947 ) (1,722 ) (229 ) 7 (2,891 ) Amounts reclassified from AOCI — 621 998 — 1,619 Net current-period other comprehensive income (947 ) (1,101 ) 769 7 (1,272 ) Balance at June 27, 2015 $ (8,023 ) $ (2,054 ) $ (34,395 ) $ 277 $ (44,195 )
Reclassification adjustments out of AOCI	Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Three Months Ended (In thousands) July 2, 2016 June 27, 2015 Affected line item Unrealized losses/(gains) on derivatives: Commodity contracts $ (2,108 ) $ (111 ) Cost of goods sold Interest rate swap 92 98 Interest expense 716 (5 ) Income tax expense (1,300 ) (18 ) Net of tax — — Noncontrolling interests $ (1,300 ) $ (18 ) Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 502 $ 641 Selling, general, and administrative expense (122 ) (164 ) Income tax expense 380 477 Net of tax — — Noncontrolling interests $ 380 $ 477 Net of tax and noncontrolling interests Amount reclassified from AOCI For the Six Months Ended (In thousands) July 2, 2016 June 27, 2015 Affected line item Unrealized losses/(gains) on derivatives: Commodity contracts $ (1,871 ) $ 651 Cost of goods sold Interest rate swap 200 204 Interest expense 508 (234 ) Income tax expense (1,163 ) 621 Net of tax — — Noncontrolling interests $ (1,163 ) $ 621 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 1,054 $ 1,360 Selling, general, and administrative expense (262 ) (362 ) Income tax expense 792 998 Net of tax — — Noncontrolling interests $ 792 $ 998 Net of tax and noncontrolling interests

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	6 Months Ended
	Jul. 02, 2016
Noncontrolling Interests [Abstract]
Schedule of noncontrolling interests	(In thousands) Noncontrolling Interests Balance at December 26, 2015 $ 32,417 Purchase of Jungwoo-Mueller 14,562 Net income attributable to noncontrolling interests 497 Other comprehensive loss attributable to noncontrolling interests, net of tax: Foreign currency translation (1,359 ) Balance at July 2, 2016 $ 46,117

Earnings per Common Share (Deta

Earnings per Common Share (Details) - shares shares in Thousands	3 Months Ended
	Jul. 02, 2016	Jun. 27, 2015
Earnings per Common Share [Abstract]
Stock-based awards excluded from the computation of diluted earnings per share (in shares)	418	24

Acquisitions and Dispositions (

Acquisitions and Dispositions (Details) - USD ($) $ / shares in Units, $ in Thousands	Apr. 26, 2016	Jun. 01, 2015	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015	Dec. 26, 2015
Business Acquisition [Line Items]
Noncontrolling interests			$ 46,117		$ 46,117		$ 32,417
Severance			0	$ 3,442	0	$ 3,442
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Cash proceeds from sale of property					1,482	5,518
Pre-tax gain on sale of property			0	15,376	$ 0	$ 15,376
DWV Ontario Manufacturing Assets [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Lease-back term					22 months
Total sales price of property		$ 20,200
Cash proceeds from sale of property		$ 5,000
Payment to be received on December 30, 2016			5,000		$ 5,000
Payment to be received at end of Lease Period			10,200		10,200
Pre-tax gain on sale of property				$ 15,376
Amount of diluted share after tax (in dollars per share)				$ 0.17
Jungwoo Metal Ind. Co., LTD [Member]
Business Acquisition [Line Items]
Equity method investment, ownership percentage	60.00%
Investments in joint venture	$ 21,800
Fair value of assets acquired	50,100
Fair value of assets acquired - property, plant and equipment	25,900
Fair value of assets acquired - inventories	15,800
Fair value of assets acquired - accounts receivables	5,600
Fair value of assets acquired - other current assets	1,500
Fair value of assets acquired - cash	1,300
Fair value of liabilities assumed	17,300
Fair value of liabilities assumed - long term debt	8,700
Fair value of liabilities assumed - accounts payable	7,300
Fair value of liabilities assumed - pension liabilities	800
Fair value of liabilities assumed - other current liabilities	500
Remaining purchase price allocated nontax-deductible goodwill	3,600
Noncontrolling interests	$ 14,600
Great Lakes Copper, Inc [Member]
Business Acquisition [Line Items]
Deferred tax liability			$ 4,100		$ 4,100
KME Yorkshire Limited [Member]
Business Acquisition [Line Items]
Severance				$ 3,400

Segment Information (Details)

Segment Information (Details) $ in Thousands	3 Months Ended			6 Months Ended		12 Months Ended
	Jul. 02, 2016USD ($)	Apr. 02, 2016Segment	Jun. 27, 2015USD ($)	Jul. 02, 2016USD ($)	Jun. 27, 2015USD ($)	Dec. 26, 2015USD ($)Segment
Segment Information [Abstract]
Number of reportable segments | Segment		3				2
Summary of segment information [Abstract]
Net sales	$ 544,071		$ 555,593	$ 1,076,880	$ 1,092,835
Cost of goods sold	456,060		470,365	902,702	931,199
Depreciation and amortization	9,061		8,188	17,981	16,041
Selling, general, and administrative expense	34,514		33,420	70,294	66,251
Gain on sale of assets	0		(15,376)	0	(15,376)
Severance	0		3,442	0	3,442
Operating income	44,436		55,554	85,903	91,278
Interest expense	(1,692)		(2,219)	(3,540)	(4,295)
Other income, net	515		265	760	370
Income before income taxes	43,259		53,600	83,123	87,353
Segment assets	1,420,475			1,420,475		$ 1,338,801
Piping Systems [Member]
Summary of segment information [Abstract]
Segment assets	863,138			863,138		811,343
Industrial Metals [Member]
Summary of segment information [Abstract]
Segment assets	160,655			160,655		153,102
Climate [Member]
Summary of segment information [Abstract]
Segment assets	66,383			66,383		61,672
General Corporate [Member]
Summary of segment information [Abstract]
Segment assets	330,299			330,299		$ 312,684
Operating Segments [Member] | Piping Systems [Member]
Summary of segment information [Abstract]
Net sales	388,662		379,750	757,552	741,232
Cost of goods sold	333,356		326,338	647,148	639,028
Depreciation and amortization	5,787		5,335	11,436	10,522
Selling, general, and administrative expense	16,560		16,776	34,850	34,122
Gain on sale of assets			(15,376)		(15,376)
Severance			3,442		3,442
Operating income	32,959		43,235	64,118	69,494
Operating Segments [Member] | Industrial Metals [Member]
Summary of segment information [Abstract]
Net sales	127,737		145,228	262,258	296,264
Cost of goods sold	104,874		120,808	214,103	248,532
Depreciation and amortization	2,120		1,643	4,255	3,298
Selling, general, and administrative expense	3,619		2,302	6,864	5,000
Gain on sale of assets			0		0
Severance			0		0
Operating income	17,124		20,475	37,036	39,434
Operating Segments [Member] | Climate [Member]
Summary of segment information [Abstract]
Net sales	31,359		31,498	62,065	57,309
Cost of goods sold	22,448		24,134	46,153	45,401
Depreciation and amortization	618		614	1,217	1,039
Selling, general, and administrative expense	2,456		2,500	4,979	4,354
Gain on sale of assets			0		0
Severance			0		0
Operating income	5,837		4,250	9,716	6,515
Corporate and Eliminations [Member]
Summary of segment information [Abstract]
Net sales	(3,687)		(883)	(4,995)	(1,970)
Cost of goods sold	(4,618)		(915)	(4,702)	(1,762)
Depreciation and amortization	536		596	1,073	1,182
Selling, general, and administrative expense	11,879		11,842	23,601	22,775
Gain on sale of assets			0		0
Severance			0		0
Operating income	$ (11,484)		$ (12,406)	$ (24,967)	$ (24,165)

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Jul. 02, 2016	Dec. 26, 2015
Inventories [Abstract]
Raw materials and supplies	$ 64,206	$ 58,987
Work-in-process	36,604	25,161
Finished goods	154,593	161,410
Valuation reserves	(5,449)	(6,180)
Inventories	$ 249,954	$ 239,378

Derivative Instruments and He31

Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands		6 Months Ended
		Jul. 02, 2016	Dec. 26, 2015
Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Assets fair value	[1]	$ 1,676	$ 60
Liabilities fair value	[1]	(2,905)	(3,318)
Commodity Contracts [Member] | Cash Flow Hedging [Member] | Long [Member]
Derivatives, Fair Value [Line Items]
Open future contracts to purchase copper		$ 22,300
Time period for open copper future contract purchases		18 months
Fair value of future contracts with gain (loss) position		$ 1,700
Commodity Contracts [Member] | Fair Value Hedging [Member] | Short [Member]
Derivatives, Fair Value [Line Items]
Open future contracts to sell copper		$ 15,500
Time period for open copper future contract sales		6 months
Fair value of future contracts with gain (loss) position		$ (498)
Other Current Asset [Member] | Commodity Contracts [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Other current assets: Gain positions		1,761	60
Other current assets: Loss positions		(85)	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		24	238
Other current liability: Loss positions		(522)	(1,864)
Other Liabilities [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member]
Derivatives, Fair Value [Line Items]
Other liabilities: Loss positions		$ (2,407)	$ (1,692)
[1]	Does not include the impact of cash collateral received from or provided to counterparties.

Derivative Instruments and He32

Derivative Instruments and Hedging Activities Part 2 (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015	Dec. 26, 2015
Derivative Instruments, Gain (Loss) [Line Items]
Restricted cash in other current assets as collateral related to open derivative contracts	$ 1,000		$ 1,000		$ 2,600
Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax	2,000	$ (885)	2,457	$ (1,722)
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax	(1,300)	(18)	(1,163)	621
Commodity Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Deferred net gains (losses), net of tax, included in AOCI	979		979
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)	1,326	1,046	1,820	1,279
Commodity Contracts [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax	2,464	(1,159)	3,337	(885)
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	(1,359)	(81)	(1,291)	490
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	(332)	1,256	(383)	1,468
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	288	(1,403)	350	(1,650)
Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Notional amount	$ 200,000		$ 200,000
Period of interest rate swap			2 years
Interest rate swap, fixed interest rate	1.40%		1.40%
Term loan facility, all-in fixed interest rate	2.70%		2.70%
Interest rate swap maturity date			Dec. 11, 2017
Deferred net gains (losses), net of tax, included in AOCI	$ (1,500)		$ (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	(115)	267	(585)	(765)
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	59	63	128	131
Other [Member] | Cash Flow Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax	(349)	7	(295)	(72)
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax	$ 0	$ 0	$ 0	$ 0

Investment in Unconsolidated 33

Investment in Unconsolidated Affiliates (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2016	Jul. 02, 2016	Sep. 30, 2015
Balance sheet data [Abstract]
Current assets	$ 248,511	$ 248,511		$ 251,389
Noncurrent assets	119,900	119,900		112,156
Current liabilities	158,000	158,000		178,784
Noncurrent liabilities	70,237	70,237		$ 63,643
Income statement data [Abstract]
Net sales	138,900	290,500
Gross profit	19,500	37,500
Net income	$ (1,990)	3,854
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		(8,000)
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		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Pension Benefits [Member]
Components of net periodic benefit cost [Abstract]
Service cost	$ 165	$ 228	$ 360	$ 500
Interest cost	1,969	2,027	3,944	4,081
Expected return on plan assets	(2,466)	(2,655)	(4,932)	(5,309)
Amortization of net gain (loss)	746	656	1,520	1,370
Net periodic benefit (income) cost	414	256	892	642
Other Benefits [Member]
Components of net periodic benefit cost [Abstract]
Service cost	60	84	122	180
Interest cost	149	190	305	386
Amortization of prior service (credit) cost	(224)	1	(448)	3
Amortization of net gain (loss)	(20)	(16)	(18)	(13)
Net periodic benefit (income) cost	$ (35)	$ 259	$ (39)	$ 556

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	6 Months Ended
	Jul. 02, 2016USD ($)
Commitments and Contingencies [Abstract]
Term of guarantees	1 year
Payments required to be made under guarantees, maximum	$ 7

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Income Taxes [Abstract]
Effective tax rate	32.00%	37.00%	34.00%	36.00%
Reduction for U.S. production activities	$ 1	$ 1.2	$ 1.9	$ 2.2
Provision for state income taxes, net of federal benefits	0.8	1.4	1.7	2.2
Income tax expense benefit miscellaneous and other	0.5	$ 0.6	1.7	1
Effect of foreign adjustments	$ 1.4		$ 2.5	$ 0.4

Accumulated Other Comprehensi37

Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance			$ 827,285
Other comprehensive income (loss) before reclassifications			(4,111)	$ (2,891)
Amounts reclassified from AOCI			(371)	1,619
Total other comprehensive (loss) income			(4,482)	(1,272)
Ending balance	$ 872,655		872,655
Reclassification adjustments out of AOCI [Abstract]
Cost of goods sold	(456,060)	$ (470,365)	(902,702)	(931,199)
Selling, general, and administrative expense	(34,514)	(33,420)	(70,294)	(66,251)
Interest expense	(1,692)	(2,219)	(3,540)	(4,295)
Income tax benefit (expense)	(14,005)	(19,738)	(28,126)	(31,151)
Net of tax	27,797	33,651	56,427	55,629
Noncontrolling interests	(462)	(211)	(497)	(573)
Consolidated net income	28,259	33,862	56,924	56,202
AOCI Including Portion Attributable to Noncontrolling Interest [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance			(54,990)	(42,923)
Ending balance	(59,472)	(44,195)	(59,472)	(44,195)
Cumulative Translation Adjustment [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance			(24,773)	(7,076)
Other comprehensive income (loss) before reclassifications			(9,939)	(947)
Amounts reclassified from AOCI			0	0
Total other comprehensive (loss) income			(9,939)	(947)
Ending balance	(34,712)	(8,023)	(34,712)	(8,023)
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			2,457	(1,722)
Amounts reclassified from AOCI			(1,163)	621
Total other comprehensive (loss) income			1,294	(1,101)
Ending balance	(715)	(2,054)	(715)	(2,054)
Unrealized (Losses)/Gains on Derivatives [Member] | Amount Reclassified from AOCI [Member]
Reclassification adjustments out of AOCI [Abstract]
Cost of goods sold	(2,108)	(111)	(1,871)	651
Interest expense	92	98	200	204
Income tax benefit (expense)	716	(5)	508	(234)
Net of tax	(1,300)	(18)	(1,163)	621
Noncontrolling interests	0	0	0	0
Consolidated net income	(1,300)	(18)	(1,163)	621
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			1,910	(229)
Amounts reclassified from AOCI			792	998
Total other comprehensive (loss) income			2,702	769
Ending balance	(25,727)	(34,395)	(25,727)	(34,395)
Minimum Pension/OPEB Liability Adjustment [Member] | Amount Reclassified from AOCI [Member]
Reclassification adjustments out of AOCI [Abstract]
Selling, general, and administrative expense	502	641	1,054	1,360
Income tax benefit (expense)	(122)	(164)	(262)	(362)
Net of tax	380	477	792	998
Noncontrolling interests	0	0	0	0
Consolidated net income	380	477	792	998
Other [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance			221	270
Other comprehensive income (loss) before reclassifications			1,461	7
Amounts reclassified from AOCI			0	0
Total other comprehensive (loss) income			1,461	7
Ending balance	$ 1,682	$ 277	$ 1,682	$ 277

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 02, 2016	Jun. 27, 2015	Jul. 02, 2016	Jun. 27, 2015
Noncontrolling Interest [Line Items]
Balance at December 26, 2015			$ 32,417
Purchase of Jungwoo-Mueller			14,562
Net income attributable to noncontrolling interests	$ 462	$ 211	497	$ 573
Other comprehensive loss attributable to noncontrolling interests, net of tax [Abstract]
Foreign currency translation			(1,359)
Balance at July 2, 2016	$ 46,117		$ 46,117