Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Oct. 01, 2016 | Oct. 24, 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 | 57,378,695 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Oct. 1, 2016 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Sep. 26, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) [Abstract] | ||||
Net sales | $ 506,584 | $ 535,184 | $ 1,583,464 | $ 1,628,019 |
Cost of goods sold | 424,668 | 467,167 | 1,327,370 | 1,398,366 |
Depreciation and amortization | 9,016 | 8,749 | 26,997 | 24,790 |
Selling, general, and administrative expense | 32,413 | 32,241 | 102,707 | 97,922 |
Asset impairments | 3,000 | 0 | 3,000 | 570 |
Gain on sale of assets | 0 | 0 | 0 | (15,376) |
Severance | 0 | 0 | 0 | 3,442 |
Operating income | 37,487 | 27,027 | 123,390 | 118,305 |
Interest expense | (1,830) | (1,682) | (5,370) | (5,977) |
Other income, net | 120 | 164 | 880 | 534 |
Income before income taxes | 35,777 | 25,509 | 118,900 | 112,862 |
Income tax expense | (10,837) | (5,223) | (38,963) | (36,374) |
Income (loss) from unconsolidated affiliates, net of tax | 1,122 | (2,191) | 3,049 | (2,191) |
Consolidated net income | 26,062 | 18,095 | 82,986 | 74,297 |
Net income attributable to noncontrolling interests | (84) | (295) | (581) | (868) |
Net income attributable to Mueller Industries, Inc. | $ 25,978 | $ 17,800 | $ 82,405 | $ 73,429 |
Weighted average shares for basic earnings per share (in shares) | 56,631 | 56,375 | 56,536 | 56,272 |
Effect of dilutive stock-based awards (in shares) | 586 | 598 | 589 | 690 |
Adjusted weighted average shares for diluted earnings per share (in shares) | 57,217 | 56,973 | 57,125 | 56,962 |
Basic earnings per share (in dollars per share) | $ 0.46 | $ 0.32 | $ 1.46 | $ 1.30 |
Diluted earnings per share (in dollars per share) | 0.45 | 0.31 | 1.44 | 1.29 |
Dividends per share (in dollars per share) | $ 0.100 | $ 0.075 | $ 0.275 | $ 0.225 |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Oct. 01, 2016 | Sep. 26, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | |||||
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||||||
Consolidated net income | $ 26,062 | $ 18,095 | $ 82,986 | $ 74,297 | ||||
Other comprehensive income (loss), net of tax: | ||||||||
Foreign currency translation | (4,304) | (12,153) | (15,601) | (13,501) | ||||
Net change with respect to derivative instruments and hedging activities | (139) | [1] | (915) | [2] | 1,155 | [3] | (2,016) | [4] |
Net decrease in minimum pension and postretirement obligation adjustments | 743 | [5] | 1,231 | [6] | 3,445 | [7] | 2,000 | [8] |
Attributable to unconsolidated affiliates | 5,112 | [9] | 0 | 6,550 | [10] | 0 | ||
Other, net | 54 | (53) | 77 | (46) | ||||
Total other comprehensive income (loss) | 1,466 | (11,890) | (4,374) | (13,563) | ||||
Consolidated comprehensive income | 27,528 | 6,205 | 78,612 | 60,734 | ||||
Comprehensive (income) loss attributable to noncontrolling interests | (480) | 709 | 382 | 534 | ||||
Comprehensive income attributable to Mueller Industries, Inc. | $ 27,048 | $ 6,914 | $ 78,994 | $ 61,268 | ||||
[1] | Net of tax of $(119) | |||||||
[2] | Net of tax of $575 | |||||||
[3] | Net of tax of $(606) | |||||||
[4] | Net of tax of $1,014 | |||||||
[5] | Net of tax of $(255) | |||||||
[6] | Net of tax of $(429) | |||||||
[7] | Net of tax of $(1,175) | |||||||
[8] | Net of tax of $(715) | |||||||
[9] | Net of tax of $(2,888) | |||||||
[10] | Net of tax of $(3,700) |
CONDENSED STATEMENTS OF COMPREH
CONDENSED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Sep. 26, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||||
Net change with respect to derivative instruments and hedging activities, tax | $ (119) | $ 575 | $ (606) | $ 1,014 |
Net actuarial loss on pension and postretirement obligations, tax | (255) | $ (429) | (1,175) | $ (715) |
Attributable to unconsolidated affiliates, tax | $ (2,888) | $ (3,700) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Oct. 01, 2016 | Dec. 26, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 297,793 | $ 274,844 |
Accounts receivable, less allowance for doubtful accounts of $554 in 2016 and $623 in 2015 | 295,672 | 251,571 |
Inventories | 251,130 | 239,378 |
Other current assets | 28,999 | 34,608 |
Total current assets | 873,594 | 800,401 |
Property, plant, and equipment, net | 289,074 | 280,224 |
Goodwill, net | 128,004 | 120,252 |
Intangible assets, net | 37,386 | 40,636 |
Investment in unconsolidated affiliates | 79,199 | 65,900 |
Other assets | 18,864 | 31,388 |
Total assets | 1,426,121 | 1,338,801 |
Current liabilities: | ||
Current portion of debt | 16,907 | 11,760 |
Accounts payable | 92,451 | 88,051 |
Accrued wages and other employee costs | 34,447 | 35,636 |
Other current liabilities | 58,395 | 73,982 |
Total current liabilities | 202,200 | 209,429 |
Long-term debt, less current portion | 213,847 | 204,250 |
Pension liabilities | 14,517 | 17,449 |
Postretirement benefits other than pensions | 17,021 | 17,427 |
Environmental reserves | 20,708 | 20,943 |
Deferred income taxes | 19,106 | 7,161 |
Other noncurrent liabilities | 2,118 | 2,440 |
Total liabilities | 489,517 | 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 57,378,695 in 2016 and 57,158,608 in 2015 | 802 | 802 |
Additional paid-in capital | 271,476 | 271,158 |
Retained earnings | 1,130,249 | 1,063,543 |
Accumulated other comprehensive loss | (58,401) | (54,990) |
Treasury common stock, at cost | (450,354) | (453,228) |
Total Mueller Industries, Inc. stockholders' equity | 893,772 | 827,285 |
Noncontrolling interests | 42,832 | 32,417 |
Total equity | 936,604 | 859,702 |
Commitments and contingencies | ||
Total liabilities and equity | $ 1,426,121 | $ 1,338,801 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Oct. 01, 2016 | Dec. 26, 2015 |
Current assets: | ||
Allowance for doubtful accounts | $ 554 | $ 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) | 57,378,695 | 57,158,608 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Oct. 01, 2016 | Sep. 26, 2015 | |
Cash flows from operating activities | ||
Consolidated net income | $ 82,986 | $ 74,297 |
Reconciliation of consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 27,267 | 25,132 |
Stock-based compensation expense | 4,553 | 4,611 |
Equity in (earnings) losses of unconsolidated affiliates | (3,049) | 2,191 |
Gain on disposal of assets | (747) | (14,875) |
Impairment charges | 3,000 | 570 |
Deferred income taxes | 6,491 | (8,262) |
Income tax benefit from exercise of stock options | 0 | (953) |
Changes in assets and liabilities, net of businesses acquired: | ||
Receivables | (45,780) | 5,249 |
Inventories | (914) | 29,901 |
Other assets | 14,428 | 4,302 |
Current liabilities | (15,998) | (27,580) |
Other liabilities | (2,101) | 740 |
Other, net | 450 | 145 |
Net cash provided by operating activities | 70,586 | 95,468 |
Cash flows from investing activities | ||
Capital expenditures | (15,632) | (22,502) |
Acquisition of businesses, net of cash acquired | (20,533) | (107,405) |
Net withdrawals from restricted cash balances | 1,177 | 1,822 |
Investment in unconsolidated affiliates | 0 | (65,900) |
Proceeds from sales of assets | 5,301 | 5,521 |
Net cash used in investing activities | (29,687) | (188,464) |
Cash flows from financing activities | ||
Dividends paid to stockholders of Mueller Industries, Inc. | (15,555) | (12,669) |
Dividends paid to noncontrolling interests | (3,765) | 0 |
Issuance of long-term debt | 2,000 | 0 |
Issuance (repayment) of debt by joint ventures, net | 5,006 | (21,597) |
Net cash used to settle stock-based awards | (1,356) | (718) |
Repayments of long-term debt | (769) | (750) |
Income tax benefit from exercise of stock options | 0 | 953 |
Net cash used in financing activities | (14,439) | (34,781) |
Effect of exchange rate changes on cash | (3,511) | (3,612) |
Increase (decrease) in cash and cash equivalents | 22,949 | (131,389) |
Cash and cash equivalents at the beginning of the period | 274,844 | 352,134 |
Cash and cash equivalents at the end of the period | $ 297,793 | $ 220,745 |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Oct. 01, 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 218 thousand and 383 thousand stock-based awards were excluded from the computation of diluted earnings per share for the quarters ended October 1, 2016 and September 26, 2015, respectively, because they were antidilutive. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 9 Months Ended |
Oct. 01, 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 $20.5 million in cash. Jungwoo-Mueller, which manufactures copper-based pipe joining products, 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 $48.8 million, consisting primarily of property, plant, and equipment of $25.9 million, inventories of $15.8 million, accounts receivable of $5.6 million, and other current assets of $1.5 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 October 1, 2016 and subject to change upon completion of the final valuation of the long-lived assets and noncontrolling interest during the measurement period. The valuations of certain businesses acquired in 2015 were finalized during 2016. 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, March 31, 2017. 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 Piping Systems segment. |
Segment Information
Segment Information | 9 Months Ended |
Oct. 01, 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. Management has recast certain prior period amounts to conform to the current period presentation. Each of the reportable segments is composed of certain operating segments that are aggregated primarily by the nature of products offered as follows: 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. and sold in North America. 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 the European Operations manufacture copper tube in the U.K. which is sold primarily in Europe. The Trading Group manufactures pipe nipples and imports and resells brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products in the U.S. and Mexico. Mueller-Xingrong manufactures engineered copper tube primarily for air-conditioning applications in China. Jungwoo-Mueller manufactures copper-based joining products that are sold worldwide. The Piping Systems segment's products are sold primarily to plumbing, refrigeration, and air-conditioning wholesalers, hardware wholesalers and co-ops, building product retailers, and air-conditioning original equipment manufacturers (OEMs). During the third quarter of 2016, the segment recognized impairment charges of $3.0 million on fixed assets used for product development. During the second quarter of 2015, the segment recognized approximately $3.4 millon of severance costs related to the reorganization of Yorkshire Copper Tube, acquired in 2014. 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 October 1, 2016 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 351,557 $ 131,350 $ 30,003 $ (6,326 ) $ 506,584 Cost of goods sold 301,867 107,512 22,210 (6,921 ) 424,668 Depreciation and amortization 5,905 1,964 612 535 9,016 Selling, general, and administrative expense 16,647 3,125 2,357 10,284 32,413 Asset impairments 3,000 — — — 3,000 Operating income 24,138 18,749 4,824 (10,224 ) 37,487 Interest expense (1,830 ) Other income, net 120 Income before income taxes $ 35,777 For the Quarter Ended September 26, 2015 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 367,892 $ 139,472 $ 28,494 $ (674 ) $ 535,184 Cost of goods sold 320,571 125,146 22,160 (710 ) 467,167 Depreciation and amortization 5,430 2,154 608 557 8,749 Selling, general, and administrative expense 16,469 3,044 2,283 10,445 32,241 Operating income 25,422 9,128 3,443 (10,966 ) 27,027 Interest expense (1,682 ) Other income, net 164 Income before income taxes $ 25,509 For the Nine Months Ended October 1, 2016 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,109,109 $ 393,608 $ 92,068 $ (11,321 ) $ 1,583,464 Cost of goods sold 949,015 321,615 68,363 (11,623 ) 1,327,370 Depreciation and amortization 17,341 6,219 1,829 1,608 26,997 Selling, general, and administrative expense 51,497 9,989 7,336 33,885 102,707 Asset impairments 3,000 — — — 3,000 Operating income 88,256 55,785 14,540 (35,191 ) 123,390 Interest expense (5,370 ) Other income, net 880 Income before income taxes $ 118,900 For the Nine Months Ended September 26, 2015 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,109,124 $ 435,736 $ 85,803 $ (2,644 ) $ 1,628,019 Cost of goods sold 959,599 373,678 67,561 (2,472 ) 1,398,366 Depreciation and amortization 15,952 5,452 1,647 1,739 24,790 Selling, general, and administrative expense 50,021 8,044 6,637 33,220 97,922 Asset impairments 570 — — — 570 Gain on sale of assets (15,376 ) — — — (15,376 ) Severance 3,442 — — — 3,442 Operating income 94,916 48,562 9,958 (35,131 ) 118,305 Interest expense (5,977 ) Other income, net 534 Income before income taxes $ 112,862 ( In thousands) October 1, 2016 December 26, 2015 Segment assets: Piping Systems $ 855,036 $ 811,343 Industrial Metals 160,413 153,102 Climate 61,713 61,672 General Corporate 348,959 312,684 $ 1,426,121 $ 1,338,801 |
Inventories
Inventories | 9 Months Ended |
Oct. 01, 2016 | |
Inventories [Abstract] | |
Inventories | Note 4 – Inventories ( In thousands) October 1, 2016 December 26, 2015 Raw materials and supplies $ 63,915 $ 58,987 Work-in-process 37,131 25,161 Finished goods 157,128 161,410 Valuation reserves (7,044 ) (6,180 ) Inventories $ 251,130 $ 239,378 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Oct. 01, 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 (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 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 derivative instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments 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 derivative instruments that are used in hedging transactions are highly effective in offsetting changes in cash flow or fair values of hedged items. When a derivative instrument 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 October 1, 2016, the Company held open futures contracts to purchase approximately $33.1 million of copper over the next 10 months related to fixed price sales orders. The fair value of those futures contracts was a $1.6 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 October 1, 2016, this amount was approximately $350 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. At October 1, 2016, the Company held open futures contracts to sell approximately $6.1 million of copper over the next six months related to copper inventory. The fair value of those futures contracts was a $129 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 on 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 $1.6 million net loss position at October 1, 2016, and there was $1.0 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 the 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 October 1, 2016 December 26, 2015 Balance Sheet Location October 1, 2016 December 26, 2015 Hedging instrument: Commodity contracts - gains Other current assets $ 1,634 $ 60 Other current liabilities $ — $ 238 Commodity contracts - losses Other current assets (23 ) — Other current liabilities (129 ) (1,864 ) Interest rate swap Other assets — — Other liabilities (1,601 ) (1,692 ) Total derivatives (1) $ 1,611 $ 60 $ (1,730 ) $ (3,318 ) (1) Does not include the impact of cash collateral received from or provided to counterparties. The following tables summarize the effects of derivative instruments on the Company's Condensed Consolidated Statements of Income: Quarter Ended Nine Months Ended ( In thousands) Location October 1, 2016 September 26, 2015 October 1, 2016 September 26, 2015 Fair value hedges: (Loss) gain on commodity contracts (qualifying) Cost of goods sold $ (37 ) $ 1,831 $ (420 ) $ 3,300 Gain (loss) on hedged item - Inventory Cost of goods sold 31 (1,943 ) 382 (3,593 ) Quarter Ended Nine Months Ended ( In thousands) Location October 1, 2016 September 26, 2015 October 1, 2016 September 26, 2015 Undesignated derivatives: Gain on commodity contracts (nonqualifying) Cost of goods sold $ 855 $ 1,143 $ 2,676 $ 2,422 The following tables summarize amounts recognized in and reclassified from AOCI during the period: Quarter Ended October 1, 2016 ( In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) (Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (1,434 ) Cost of goods sold $ 814 Interest rate swap 457 Interest expense 58 Other (32 ) Other (2 ) Total $ (1,009 ) Total $ 870 Quarter Ended September 26, 2015 ( In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) (Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (2,046 ) Cost of goods sold $ 1,708 Interest rate swap (632 ) Interest expense 58 Other (7 ) Other 4 Total $ (2,685 ) Total $ 1,770 Nine Months Ended October 1, 2016 ( In thousands) Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) (Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 1,903 Cost of goods sold $ (477 ) Interest rate swap (128 ) Interest expense 186 Other (329 ) Other — Total $ 1,446 Total $ (291 ) Nine Months Ended September 26, 2015 ( In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) (Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (2,931 ) Cost of goods sold $ 2,198 Interest rate swap (1,397 ) Interest expense 189 Other (75 ) Other — Total $ (4,403 ) Total $ 2,387 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 October 1, 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 October 1, 2016 and December 26, 2015, the Company had recorded restricted cash in other current assets of $1.4 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 | 9 Months Ended |
Oct. 01, 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 a 50 percent interest in a second unconsolidated affiliate that provided financing to Tecumseh in conjunction with the acquisition. These investments are recorded 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) June 30, 2016 September 30, 2015 Current assets $ 254,910 $ 251,389 Noncurrent assets 133,200 112,156 Current liabilities 155,406 178,784 Noncurrent liabilities 74,291 63,643 June 30, 2016 ( In thousands) For the Quarter Ended For the Nine Months Ended Net sales $ 146,700 $ 437,200 Gross profit 22,200 59,700 Net income 2,244 6,097 Included in the equity method investees' net income for the nine months ended June 30, 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 $5.7 million. |
Benefit Plans
Benefit Plans | 9 Months Ended |
Oct. 01, 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 (income) are as follows: For the Quarter Ended For the Nine Months Ended (In thousands) October 1, 2016 September 26, 2015 October 1, 2016 September 26, 2015 Pension benefits: Service cost $ 180 $ 250 $ 540 $ 750 Interest cost 1,973 2,041 5,917 6,122 Expected return on plan assets (2,466 ) (2,654 ) (7,398 ) (7,963 ) Amortization of net loss 760 685 2,280 2,055 Net periodic benefit cost $ 447 $ 322 $ 1,339 $ 964 Other benefits: Service cost $ 61 $ 90 $ 183 $ 270 Interest cost 153 193 458 579 Amortization of prior service (credit) cost (224 ) 2 (672 ) 5 Amortization of net gain (9 ) (7 ) (27 ) (20 ) Net periodic benefit (income) cost $ (19 ) $ 278 $ (58 ) $ 834 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Oct. 01, 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. The Company may also realize the benefit of certain legal claims and litigation in the future; these gain contingencies are not recognized in the Condensed Consolidated Financial Statements. 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 October 1, 2016 were $7.0 million. |
Income Taxes
Income Taxes | 9 Months Ended |
Oct. 01, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 9 – Income Taxes The Company's effective tax rate for the third quarter of 2016 was 30 percent compared with 20 percent for the same period last year. The items impacting the effective tax rate for the third quarter of 2016 were primarily attributable to reductions for the U.S. production activities deduction of $0.6 million and the effect of foreign tax rates lower than statutory tax rates of $1.0 million. These items were partially offset by the provision for state income taxes, net of the federal benefit, of $0.6 million. For the third 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 a permanent reduction to the Company's deferred tax liabilities of $4.2 million resulting from the acquisition of a foreign subsidiary and the U.S. production activities deduction of $0.8 million. The Company's effective tax rate for the first nine months of 2016 was 33 percent compared with 32 percent for the same period last year. The items impacting the effective tax rate for the first nine months of 2016 were primarily attributable to reductions for the U.S. production activities deduction of $2.5 million and the effect of foreign tax rates lower than statutory tax rates of $3.5 million. These items were partially offset by the provision for state income taxes, net of the federal benefit, of $2.3 million. For the first nine months 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 reductions to the Company's deferred tax liabilities of $4.2 million and the U.S. production activities deduction of $3.0 million. These items were partially offset by the provision for state income taxes, net of federal benefit, of $2.1 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 2013 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. 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 | 9 Months Ended |
Oct. 01, 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 Nine Months Ended October 1, 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 (14,638 ) 1,446 2,258 6,627 (4,307 ) Amounts reclassified from AOCI — (291 ) 1,187 — 896 Net current-period other comprehensive income (loss) (14,638 ) 1,155 3,445 6,627 (3,411 ) Balance at October 1, 2016 $ (39,411 ) $ (854 ) $ (24,984 ) $ 6,848 $ (58,401 ) For the Nine Months Ended September 26, 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 (12,099 ) (4,403 ) 510 (46 ) (16,038 ) Amounts reclassified from AOCI — 2,387 1,490 — 3,877 Net current-period other comprehensive income (loss) (12,099 ) (2,016 ) 2,000 (46 ) (12,161 ) Balance at September 26, 2015 $ (19,175 ) $ (2,969 ) $ (33,164 ) $ 224 $ (55,084 ) Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended ( In thousands) October 1, 2016 September 26, 2015 Affected line item Unrealized losses (gains) on derivatives: Commodity contracts $ 848 $ 2,339 Cost of goods sold Interest rate swap 91 91 Interest expense (67 ) (664 ) Income tax expense 872 1,766 Net of tax — — Noncontrolling interests $ 872 $ 1,766 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 527 $ 680 Selling, general, and administrative expense (132 ) (188 ) Income tax expense 395 492 Net of tax — — Noncontrolling interests $ 395 $ 492 Net of tax and noncontrolling interests Amount reclassified from AOCI For the Nine Months Ended ( In thousands) October 1, 2016 September 26, 2015 Affected line item Unrealized losses (gains) on derivatives: Commodity contracts $ (1,023 ) $ 2,990 Cost of goods sold Interest rate swap 291 295 Interest expense 441 (898 ) Income tax expense (291 ) 2,387 Net of tax — — Noncontrolling interests $ (291 ) $ 2,387 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 1,581 $ 2,040 Selling, general, and administrative expense (394 ) (550 ) Income tax expense 1,187 1,490 Net of tax — — Noncontrolling interests $ 1,187 $ 1,490 Net of tax and noncontrolling interests |
Noncontrolling Interests
Noncontrolling Interests | 9 Months Ended |
Oct. 01, 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 Dividends paid to noncontrolling interests (3,765 ) Net income attributable to noncontrolling interests 581 Other comprehensive loss attributable to noncontrolling interests, net of tax: Foreign currency translation (963 ) Balance at October 1, 2016 $ 42,832 |
Recently Issued Accounting Stan
Recently Issued Accounting Standards | 9 Months Ended |
Oct. 01, 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 · Approximately $0.8 million of excess tax benefits was recorded through income tax expense as a discrete item for the three and nine months ended October 1, 2016, adopted on a prospective basis from December 27, 2015. · Excess tax benefits were combined with other income tax cash flows within operating cash flows adopted on a prospective basis rather than as a financing activity. · The Company has elected to change its current policy of estimating forfeitures to a policy of recognizing forfeitures when they occur on a prospective basis from December 27, 2015. 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 In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Segment Information [Abstract] | |
Summary of segment information | Summarized segment information is as follows: For the Quarter Ended October 1, 2016 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 351,557 $ 131,350 $ 30,003 $ (6,326 ) $ 506,584 Cost of goods sold 301,867 107,512 22,210 (6,921 ) 424,668 Depreciation and amortization 5,905 1,964 612 535 9,016 Selling, general, and administrative expense 16,647 3,125 2,357 10,284 32,413 Asset impairments 3,000 — — — 3,000 Operating income 24,138 18,749 4,824 (10,224 ) 37,487 Interest expense (1,830 ) Other income, net 120 Income before income taxes $ 35,777 For the Quarter Ended September 26, 2015 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 367,892 $ 139,472 $ 28,494 $ (674 ) $ 535,184 Cost of goods sold 320,571 125,146 22,160 (710 ) 467,167 Depreciation and amortization 5,430 2,154 608 557 8,749 Selling, general, and administrative expense 16,469 3,044 2,283 10,445 32,241 Operating income 25,422 9,128 3,443 (10,966 ) 27,027 Interest expense (1,682 ) Other income, net 164 Income before income taxes $ 25,509 For the Nine Months Ended October 1, 2016 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,109,109 $ 393,608 $ 92,068 $ (11,321 ) $ 1,583,464 Cost of goods sold 949,015 321,615 68,363 (11,623 ) 1,327,370 Depreciation and amortization 17,341 6,219 1,829 1,608 26,997 Selling, general, and administrative expense 51,497 9,989 7,336 33,885 102,707 Asset impairments 3,000 — — — 3,000 Operating income 88,256 55,785 14,540 (35,191 ) 123,390 Interest expense (5,370 ) Other income, net 880 Income before income taxes $ 118,900 For the Nine Months Ended September 26, 2015 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,109,124 $ 435,736 $ 85,803 $ (2,644 ) $ 1,628,019 Cost of goods sold 959,599 373,678 67,561 (2,472 ) 1,398,366 Depreciation and amortization 15,952 5,452 1,647 1,739 24,790 Selling, general, and administrative expense 50,021 8,044 6,637 33,220 97,922 Asset impairments 570 — — — 570 Gain on sale of assets (15,376 ) — — — (15,376 ) Severance 3,442 — — — 3,442 Operating income 94,916 48,562 9,958 (35,131 ) 118,305 Interest expense (5,977 ) Other income, net 534 Income before income taxes $ 112,862 |
Segment information by assets | ( In thousands) October 1, 2016 December 26, 2015 Segment assets: Piping Systems $ 855,036 $ 811,343 Industrial Metals 160,413 153,102 Climate 61,713 61,672 General Corporate 348,959 312,684 $ 1,426,121 $ 1,338,801 |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Inventories [Abstract] | |
Inventories | ( In thousands) October 1, 2016 December 26, 2015 Raw materials and supplies $ 63,915 $ 58,987 Work-in-process 37,131 25,161 Finished goods 157,128 161,410 Valuation reserves (7,044 ) (6,180 ) Inventories $ 251,130 $ 239,378 |
Derivative Instruments and He22
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Oct. 01, 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 the 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 October 1, 2016 December 26, 2015 Balance Sheet Location October 1, 2016 December 26, 2015 Hedging instrument: Commodity contracts - gains Other current assets $ 1,634 $ 60 Other current liabilities $ — $ 238 Commodity contracts - losses Other current assets (23 ) — Other current liabilities (129 ) (1,864 ) Interest rate swap Other assets — — Other liabilities (1,601 ) (1,692 ) Total derivatives (1) $ 1,611 $ 60 $ (1,730 ) $ (3,318 ) (1) Does not include the impact of cash collateral received from or provided to counterparties. |
Schedule of fair value hedges | The following tables summarize the effects of derivative instruments on the Company's Condensed Consolidated Statements of Income: Quarter Ended Nine Months Ended ( In thousands) Location October 1, 2016 September 26, 2015 October 1, 2016 September 26, 2015 Fair value hedges: (Loss) gain on commodity contracts (qualifying) Cost of goods sold $ (37 ) $ 1,831 $ (420 ) $ 3,300 Gain (loss) on hedged item - Inventory Cost of goods sold 31 (1,943 ) 382 (3,593 ) Quarter Ended Nine Months Ended ( In thousands) Location October 1, 2016 September 26, 2015 October 1, 2016 September 26, 2015 Undesignated derivatives: Gain on commodity contracts (nonqualifying) Cost of goods sold $ 855 $ 1,143 $ 2,676 $ 2,422 |
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: Quarter Ended October 1, 2016 ( In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) (Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (1,434 ) Cost of goods sold $ 814 Interest rate swap 457 Interest expense 58 Other (32 ) Other (2 ) Total $ (1,009 ) Total $ 870 Quarter Ended September 26, 2015 ( In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) (Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (2,046 ) Cost of goods sold $ 1,708 Interest rate swap (632 ) Interest expense 58 Other (7 ) Other 4 Total $ (2,685 ) Total $ 1,770 Nine Months Ended October 1, 2016 ( In thousands) Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) (Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 1,903 Cost of goods sold $ (477 ) Interest rate swap (128 ) Interest expense 186 Other (329 ) Other — Total $ 1,446 Total $ (291 ) Nine Months Ended September 26, 2015 ( In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) (Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (2,931 ) Cost of goods sold $ 2,198 Interest rate swap (1,397 ) Interest expense 189 Other (75 ) Other — Total $ (4,403 ) Total $ 2,387 |
Investment in Unconsolidated 23
Investment in Unconsolidated Affiliates (Tables) | 9 Months Ended |
Oct. 01, 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) June 30, 2016 September 30, 2015 Current assets $ 254,910 $ 251,389 Noncurrent assets 133,200 112,156 Current liabilities 155,406 178,784 Noncurrent liabilities 74,291 63,643 June 30, 2016 ( In thousands) For the Quarter Ended For the Nine Months Ended Net sales $ 146,700 $ 437,200 Gross profit 22,200 59,700 Net income 2,244 6,097 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 9 Months Ended |
Oct. 01, 2016 | |
Benefit Plans [Abstract] | |
Components of net periodic benefit costs (income) | The components of net periodic benefit cost (income) are as follows: For the Quarter Ended For the Nine Months Ended (In thousands) October 1, 2016 September 26, 2015 October 1, 2016 September 26, 2015 Pension benefits: Service cost $ 180 $ 250 $ 540 $ 750 Interest cost 1,973 2,041 5,917 6,122 Expected return on plan assets (2,466 ) (2,654 ) (7,398 ) (7,963 ) Amortization of net loss 760 685 2,280 2,055 Net periodic benefit cost $ 447 $ 322 $ 1,339 $ 964 Other benefits: Service cost $ 61 $ 90 $ 183 $ 270 Interest cost 153 193 458 579 Amortization of prior service (credit) cost (224 ) 2 (672 ) 5 Amortization of net gain (9 ) (7 ) (27 ) (20 ) Net periodic benefit (income) cost $ (19 ) $ 278 $ (58 ) $ 834 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Oct. 01, 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 Nine Months Ended October 1, 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 (14,638 ) 1,446 2,258 6,627 (4,307 ) Amounts reclassified from AOCI — (291 ) 1,187 — 896 Net current-period other comprehensive income (loss) (14,638 ) 1,155 3,445 6,627 (3,411 ) Balance at October 1, 2016 $ (39,411 ) $ (854 ) $ (24,984 ) $ 6,848 $ (58,401 ) For the Nine Months Ended September 26, 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 (12,099 ) (4,403 ) 510 (46 ) (16,038 ) Amounts reclassified from AOCI — 2,387 1,490 — 3,877 Net current-period other comprehensive income (loss) (12,099 ) (2,016 ) 2,000 (46 ) (12,161 ) Balance at September 26, 2015 $ (19,175 ) $ (2,969 ) $ (33,164 ) $ 224 $ (55,084 ) |
Reclassification adjustments out of AOCI | Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended ( In thousands) October 1, 2016 September 26, 2015 Affected line item Unrealized losses (gains) on derivatives: Commodity contracts $ 848 $ 2,339 Cost of goods sold Interest rate swap 91 91 Interest expense (67 ) (664 ) Income tax expense 872 1,766 Net of tax — — Noncontrolling interests $ 872 $ 1,766 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 527 $ 680 Selling, general, and administrative expense (132 ) (188 ) Income tax expense 395 492 Net of tax — — Noncontrolling interests $ 395 $ 492 Net of tax and noncontrolling interests Amount reclassified from AOCI For the Nine Months Ended ( In thousands) October 1, 2016 September 26, 2015 Affected line item Unrealized losses (gains) on derivatives: Commodity contracts $ (1,023 ) $ 2,990 Cost of goods sold Interest rate swap 291 295 Interest expense 441 (898 ) Income tax expense (291 ) 2,387 Net of tax — — Noncontrolling interests $ (291 ) $ 2,387 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 1,581 $ 2,040 Selling, general, and administrative expense (394 ) (550 ) Income tax expense 1,187 1,490 Net of tax — — Noncontrolling interests $ 1,187 $ 1,490 Net of tax and noncontrolling interests |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 9 Months Ended |
Oct. 01, 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 Dividends paid to noncontrolling interests (3,765 ) Net income attributable to noncontrolling interests 581 Other comprehensive loss attributable to noncontrolling interests, net of tax: Foreign currency translation (963 ) Balance at October 1, 2016 $ 42,832 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares shares in Thousands | 3 Months Ended | |
Oct. 01, 2016 | Sep. 26, 2015 | |
Earnings per Common Share [Abstract] | ||
Stock-based awards excluded from the computation of diluted earnings per share (in shares) | 218 | 383 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 26, 2016 | Jun. 01, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | Jun. 27, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | Jul. 02, 2016 | Dec. 26, 2015 |
Business Acquisition [Line Items] | |||||||||
Noncontrolling interests | $ 42,832 | $ 42,832 | $ 32,417 | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||
Cash proceeds from sale of property | 5,301 | $ 5,521 | |||||||
Pre-tax gain on sale of property | 0 | $ 0 | $ 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 | $ 20,500 | ||||||||
Fair value of assets acquired | 48,800 | ||||||||
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 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 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Oct. 01, 2016USD ($) | Apr. 02, 2016Segment | Sep. 26, 2015USD ($) | Oct. 01, 2016USD ($) | Sep. 26, 2015USD ($) | Dec. 26, 2015USD ($)Segment | |
Segment Information [Abstract] | ||||||
Number of reportable segments | Segment | 3 | 2 | ||||
Summary of segment information [Abstract] | ||||||
Net sales | $ 506,584 | $ 535,184 | $ 1,583,464 | $ 1,628,019 | ||
Cost of goods sold | 424,668 | 467,167 | 1,327,370 | 1,398,366 | ||
Depreciation and amortization | 9,016 | 8,749 | 26,997 | 24,790 | ||
Selling, general, and administrative expense | 32,413 | 32,241 | 102,707 | 97,922 | ||
Asset impairments | 3,000 | 0 | 3,000 | 570 | ||
Gain on sale of assets | 0 | 0 | 0 | (15,376) | ||
Severance | 0 | 0 | 0 | 3,442 | ||
Operating income | 37,487 | 27,027 | 123,390 | 118,305 | ||
Interest expense | (1,830) | (1,682) | (5,370) | (5,977) | ||
Other income, net | 120 | 164 | 880 | 534 | ||
Income before income taxes | 35,777 | 25,509 | 118,900 | 112,862 | ||
Segment assets | 1,426,121 | 1,426,121 | $ 1,338,801 | |||
Piping Systems [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Segment assets | 855,036 | 855,036 | 811,343 | |||
Industrial Metals [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Segment assets | 160,413 | 160,413 | 153,102 | |||
Climate [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Segment assets | 61,713 | 61,713 | 61,672 | |||
General Corporate [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Segment assets | 348,959 | 348,959 | $ 312,684 | |||
Operating Segments [Member] | Piping Systems [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Net sales | 351,557 | 367,892 | 1,109,109 | 1,109,124 | ||
Cost of goods sold | 301,867 | 320,571 | 949,015 | 959,599 | ||
Depreciation and amortization | 5,905 | 5,430 | 17,341 | 15,952 | ||
Selling, general, and administrative expense | 16,647 | 16,469 | 51,497 | 50,021 | ||
Asset impairments | 3,000 | 3,000 | 570 | |||
Gain on sale of assets | (15,376) | |||||
Severance | 3,442 | |||||
Operating income | 24,138 | 25,422 | 88,256 | 94,916 | ||
Operating Segments [Member] | Industrial Metals [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Net sales | 131,350 | 139,472 | 393,608 | 435,736 | ||
Cost of goods sold | 107,512 | 125,146 | 321,615 | 373,678 | ||
Depreciation and amortization | 1,964 | 2,154 | 6,219 | 5,452 | ||
Selling, general, and administrative expense | 3,125 | 3,044 | 9,989 | 8,044 | ||
Asset impairments | 0 | 0 | 0 | |||
Gain on sale of assets | 0 | |||||
Severance | 0 | |||||
Operating income | 18,749 | 9,128 | 55,785 | 48,562 | ||
Operating Segments [Member] | Climate [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Net sales | 30,003 | 28,494 | 92,068 | 85,803 | ||
Cost of goods sold | 22,210 | 22,160 | 68,363 | 67,561 | ||
Depreciation and amortization | 612 | 608 | 1,829 | 1,647 | ||
Selling, general, and administrative expense | 2,357 | 2,283 | 7,336 | 6,637 | ||
Asset impairments | 0 | 0 | 0 | |||
Gain on sale of assets | 0 | |||||
Severance | 0 | |||||
Operating income | 4,824 | 3,443 | 14,540 | 9,958 | ||
Corporate and Eliminations [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Net sales | (6,326) | (674) | (11,321) | (2,644) | ||
Cost of goods sold | (6,921) | (710) | (11,623) | (2,472) | ||
Depreciation and amortization | 535 | 557 | 1,608 | 1,739 | ||
Selling, general, and administrative expense | 10,284 | 10,445 | 33,885 | 33,220 | ||
Asset impairments | 0 | 0 | 0 | |||
Gain on sale of assets | 0 | |||||
Severance | 0 | |||||
Operating income | $ (10,224) | $ (10,966) | $ (35,191) | $ (35,131) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Oct. 01, 2016 | Dec. 26, 2015 |
Inventories [Abstract] | ||
Raw materials and supplies | $ 63,915 | $ 58,987 |
Work-in-process | 37,131 | 25,161 |
Finished goods | 157,128 | 161,410 |
Valuation reserves | (7,044) | (6,180) |
Inventories | $ 251,130 | $ 239,378 |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Oct. 01, 2016 | Dec. 26, 2015 | ||
Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Assets fair value | [1] | $ 1,611 | $ 60 |
Liabilities fair value | [1] | (1,730) | (3,318) |
Commodity Contracts [Member] | Cash Flow Hedging [Member] | Long [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Open future contracts to purchase copper | $ 33,100 | ||
Time period for open copper future contract purchases | 10 months | ||
Fair value of future contracts with gain (loss) position | $ 1,600 | ||
Commodity Contracts [Member] | Fair Value Hedging [Member] | Short [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Open future contracts to sell copper | $ 6,100 | ||
Time period for open copper future contract sales | 6 months | ||
Fair value of future contracts with gain (loss) position | $ (129) | ||
Other Current Asset [Member] | Commodity Contracts [Member] | Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Other current assets: Gain positions | 1,634 | 60 | |
Other current assets: Loss positions | (23) | 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 | 0 | 238 | |
Other current liability: Loss positions | (129) | (1,864) | |
Other Liabilities [Member] | Interest Rate Swap [Member] | Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Other liabilities: Loss positions | $ (1,601) | $ (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 | 9 Months Ended | |||
Oct. 01, 2016 | Sep. 26, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | Dec. 26, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Restricted cash in other current assets as collateral related to open derivative contracts | $ 1,400 | $ 1,400 | $ 2,600 | ||
Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | (1,009) | $ (2,685) | 1,446 | $ (4,403) | |
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | 870 | 1,770 | (291) | 2,387 | |
Commodity Contracts [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Deferred net gains (losses), net of tax, included in AOCI | 350 | 350 | |||
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) | 855 | 1,143 | 2,676 | 2,422 | |
Commodity Contracts [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | (1,434) | (2,046) | 1,903 | (2,931) | |
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 | 814 | 1,708 | (477) | 2,198 | |
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 | (37) | 1,831 | (420) | 3,300 | |
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 | 31 | (1,943) | $ 382 | (3,593) | |
Interest Rate Swap [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
Period of interest rate swap | 2 years | ||||
Notional amount | $ 200,000 | $ 200,000 | |||
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 | $ (1,000) | $ (1,000) | |||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | 457 | (632) | (128) | (1,397) | |
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 | 58 | 58 | 186 | 189 | |
Other [Member] | Cash Flow Hedging [Member] | |||||
Derivative Instruments, Gain (Loss) [Line Items] | |||||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | (32) | (7) | (329) | (75) | |
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | $ (2) | $ 4 | $ 0 | $ 0 |
Investment in Unconsolidated 33
Investment in Unconsolidated Affiliates (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2016 | Oct. 01, 2016 | Sep. 30, 2015 | |
Balance sheet data [Abstract] | ||||
Current assets | $ 254,910 | $ 254,910 | $ 251,389 | |
Noncurrent assets | 133,200 | 133,200 | 112,156 | |
Current liabilities | 155,406 | 155,406 | 178,784 | |
Noncurrent liabilities | 74,291 | 74,291 | $ 63,643 | |
Income statement data [Abstract] | ||||
Net sales | 146,700 | 437,200 | ||
Gross profit | 22,200 | 59,700 | ||
Net income | $ 2,244 | 6,097 | ||
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 | (5,700) | |||
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 | 9 Months Ended | ||
Oct. 01, 2016 | Sep. 26, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | |
Pension Benefits [Member] | ||||
Components of net periodic benefit cost (income) [Abstract] | ||||
Service cost | $ 180 | $ 250 | $ 540 | $ 750 |
Interest cost | 1,973 | 2,041 | 5,917 | 6,122 |
Expected return on plan assets | (2,466) | (2,654) | (7,398) | (7,963) |
Amortization of net (gain) loss | 760 | 685 | 2,280 | 2,055 |
Net periodic benefit (income) cost | 447 | 322 | 1,339 | 964 |
Other Benefits [Member] | ||||
Components of net periodic benefit cost (income) [Abstract] | ||||
Service cost | 61 | 90 | 183 | 270 |
Interest cost | 153 | 193 | 458 | 579 |
Amortization of prior service (credit) cost | (224) | 2 | (672) | 5 |
Amortization of net (gain) loss | (9) | (7) | (27) | (20) |
Net periodic benefit (income) cost | $ (19) | $ 278 | $ (58) | $ 834 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
Oct. 01, 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 | 9 Months Ended | ||
Oct. 01, 2016 | Sep. 26, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | |
Income Taxes [Abstract] | ||||
Effective tax rate | 30.00% | 20.00% | 33.00% | 32.00% |
Reduction in deferred tax liabilities | $ 4.2 | $ 4.2 | ||
Reduction for U.S. production activities | $ 0.6 | $ 0.8 | $ 2.5 | 3 |
Effect of foreign adjustments | 1 | 3.5 | ||
Provision for state income taxes, net of federal benefits | $ 0.6 | $ 2.3 | $ 2.1 |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Sep. 26, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | |
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Beginning balance | $ 827,285 | |||
Other comprehensive income (loss) before reclassifications | (4,307) | $ (16,038) | ||
Amounts reclassified from AOCI | 896 | 3,877 | ||
Net current-period other comprehensive income (loss) | (3,411) | (12,161) | ||
Ending balance | $ 893,772 | 893,772 | ||
Reclassification adjustments out of AOCI [Abstract] | ||||
Cost of goods sold | (424,668) | $ (467,167) | (1,327,370) | (1,398,366) |
Selling, general, and administrative expense | (32,413) | (32,241) | (102,707) | (97,922) |
Interest expense | (1,830) | (1,682) | (5,370) | (5,977) |
Income tax expense | (10,837) | (5,223) | (38,963) | (36,374) |
Net income attributable to Mueller Industries, Inc. | 25,978 | 17,800 | 82,405 | 73,429 |
Noncontrolling interests | 84 | 295 | 581 | 868 |
Consolidated net income | 26,062 | 18,095 | 82,986 | 74,297 |
AOCI Including Portion Attributable to Noncontrolling Interest [Member] | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Beginning balance | (54,990) | (42,923) | ||
Ending balance | (58,401) | (55,084) | (58,401) | (55,084) |
Cumulative Translation Adjustment [Member] | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Beginning balance | (24,773) | (7,076) | ||
Other comprehensive income (loss) before reclassifications | (14,638) | (12,099) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Net current-period other comprehensive income (loss) | (14,638) | (12,099) | ||
Ending balance | (39,411) | (19,175) | (39,411) | (19,175) |
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 | 1,446 | (4,403) | ||
Amounts reclassified from AOCI | (291) | 2,387 | ||
Net current-period other comprehensive income (loss) | 1,155 | (2,016) | ||
Ending balance | (854) | (2,969) | (854) | (2,969) |
Unrealized (Losses) Gains on Derivatives [Member] | Amount Reclassified from AOCI [Member] | ||||
Reclassification adjustments out of AOCI [Abstract] | ||||
Cost of goods sold | 848 | 2,339 | (1,023) | 2,990 |
Interest expense | 91 | 91 | 291 | 295 |
Income tax expense | (67) | (664) | 441 | (898) |
Net income attributable to Mueller Industries, Inc. | 872 | 1,766 | (291) | 2,387 |
Noncontrolling interests | 0 | 0 | 0 | 0 |
Consolidated net income | 872 | 1,766 | (291) | 2,387 |
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 | 2,258 | 510 | ||
Amounts reclassified from AOCI | 1,187 | 1,490 | ||
Net current-period other comprehensive income (loss) | 3,445 | 2,000 | ||
Ending balance | (24,984) | (33,164) | (24,984) | (33,164) |
Minimum Pension/OPEB Liability Adjustment [Member] | Amount Reclassified from AOCI [Member] | ||||
Reclassification adjustments out of AOCI [Abstract] | ||||
Selling, general, and administrative expense | 527 | 680 | 1,581 | 2,040 |
Income tax expense | (132) | (188) | (394) | (550) |
Net income attributable to Mueller Industries, Inc. | 395 | 492 | 1,187 | 1,490 |
Noncontrolling interests | 0 | 0 | 0 | 0 |
Consolidated net income | 395 | 492 | 1,187 | 1,490 |
Other [Member] | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Beginning balance | 221 | 270 | ||
Other comprehensive income (loss) before reclassifications | 6,627 | (46) | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Net current-period other comprehensive income (loss) | 6,627 | (46) | ||
Ending balance | $ 6,848 | $ 224 | $ 6,848 | $ 224 |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Sep. 26, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | |
Noncontrolling Interests [Abstract] | ||||
Balance at December 26, 2015 | $ 32,417 | |||
Purchase of Jungwoo-Mueller | 14,562 | |||
Dividends paid to noncontrolling interests | (3,765) | $ 0 | ||
Net income attributable to noncontrolling interests | $ 84 | $ 295 | 581 | $ 868 |
Other comprehensive loss attributable to noncontrolling interests, net of tax [Abstract] | ||||
Foreign currency translation | (963) | |||
Balance at October 1, 2016 | $ 42,832 | $ 42,832 |
Recently Issued Accounting St39
Recently Issued Accounting Standards (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Oct. 01, 2016 | Sep. 26, 2015 | Oct. 01, 2016 | Sep. 26, 2015 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Income tax benefit | $ 10,837 | $ 5,223 | $ 38,963 | $ 36,374 |
New Accounting Pronouncement, Early Adoption, Effect [Member] | ||||
New Accounting Pronouncement, Early Adoption [Line Items] | ||||
Income tax benefit | $ (800) | $ (800) |