Mueller Industries (MLI) 10-Q 26 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Apr. 01, 2017	Apr. 21, 2017
Document and Entity Information [Abstract]
Entity Registrant Name	MUELLER INDUSTRIES INC
Entity Central Index Key	89,439
Current Fiscal Year End Date	--12-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Apr. 1, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Amendment Flag	false
Entity Common Stock, Shares Outstanding		57,602,082

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Income Statement [Abstract]
Net sales	$ 577,920	$ 532,809
Cost of goods sold	488,427	446,642
Depreciation and amortization	8,355	8,920
Selling, general, and administrative expense	35,531	35,780
Operating income	45,607	41,467
Interest expense	(2,531)	(1,848)
Other income, net	551	245
Income before income taxes	43,627	39,864
Income tax expense	(11,929)	(14,121)
(Loss) income from unconsolidated affiliates, net of tax	(1,243)	2,922
Consolidated net income	30,455	28,665
Net income attributable to noncontrolling interests	(468)	(35)
Net income attributable to Mueller Industries, Inc.	$ 29,987	$ 28,630
Weighted average shares for basic earnings per share (in shares)	56,780	56,467
Effect of dilutive stock-based awards (in shares)	658	495
Adjusted weighted average shares for diluted earnings per share (in shares)	57,438	56,962
Basic earnings per share (in dollars per share)	$ 0.53	$ 0.51
Diluted earnings per share (in dollars per share)	0.52	0.50
Dividends per share (in dollars per share)	$ 8.10	$ 0.075

CONDENSED CONSOLIDATED STATEME3

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Statement of Comprehensive Income [Abstract]
Consolidated net income	$ 30,455	$ 28,665
Other comprehensive income (loss), net of tax:
Foreign currency translation	7,210	(1,111)
Net change with respect to derivative instruments and hedging activities, net of tax of $(96) in 2017 and $(221) in 2016	56	594
Net change in pension and postretirement obligation adjustments, net of tax of $11 in 2017 and $(398) in 2016	40	1,172
Attributable to unconsolidated affiliates, net of tax of $903 in 2017	(1,598)	0
Other, net	(144)	14
Total other comprehensive income, net	5,564	669
Consolidated comprehensive income	36,019	29,334
Comprehensive (income) loss attributable to noncontrolling interests	(1,117)	739
Comprehensive income attributable to Mueller Industries, Inc.	$ 34,902	$ 30,073

CONDENSED CONSOLIDATED STATEME4

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Statement of Comprehensive Income [Abstract]
Net change with respect to derivative instruments and hedging activities, tax (expense) benefit	$ (96)	$ (221)
Net actuarial loss on pension and postretirement obligations, tax benefit (expense)	11	$ (398)
Attributable to unconsolidated affiliates, tax benefit	$ 903

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 146,891	$ 351,317
Accounts receivable, less allowance for doubtful accounts of $962 in 2017 and $637 in 2016	312,095	256,291
Inventories	251,958	242,013
Other current assets	45,141	44,702
Total current assets	756,085	894,323
Property, plant, and equipment, net	296,360	295,231
Goodwill, net	124,272	123,993
Intangible assets, net	35,573	36,168
Investment in unconsolidated affiliates	73,367	77,110
Other assets	19,264	20,651
Total assets	1,304,921	1,447,476
Current liabilities:
Current portion of debt	14,939	13,655
Accounts payable	117,251	103,175
Accrued wages and other employee costs	28,348	35,121
Other current liabilities	71,150	67,041
Total current liabilities	231,688	218,992
Long-term debt, less current portion	489,787	213,709
Pension liabilities	14,429	14,890
Postretirement benefits other than pensions	16,583	16,383
Environmental reserves	20,993	21,208
Deferred income taxes	18,249	19,573
Other noncurrent liabilities	6,447	6,284
Total liabilities	798,176	511,039
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 57,602,082 in 2017 and 57,395,209 in 2016	802	802
Additional paid-in capital	273,129	273,345
Retained earnings	705,240	1,141,831
Accumulated other comprehensive loss	(62,041)	(66,956)
Treasury common stock, at cost	(449,255)	(450,338)
Total Mueller Industries, Inc. stockholders' equity	467,875	898,684
Noncontrolling interests	38,870	37,753
Total equity	506,745	936,437
Commitments and contingencies	0	0
Total liabilities and equity	$ 1,304,921	$ 1,447,476

CONDENSED CONSOLIDATED BALANCE6

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Current assets:
Allowance for doubtful accounts	$ 962	$ 637
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)	57,602,082	57,395,209

CONDENSED CONSOLIDATED STATEME7

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Cash flows from operating activities
Consolidated net income	$ 30,455	$ 28,665
Reconciliation of consolidated net income to net cash provided by operating activities:
Depreciation and amortization	8,419	9,011
Stock-based compensation expense	1,736	1,236
Loss (income) from unconsolidated affiliates	1,243	(2,922)
Gain on disposals of assets	(16)	(23)
Gain on sales of securities	(254)	0
Deferred income taxes	(80)	1,895
Income tax benefit from exercise of stock options	0	(96)
Changes in assets and liabilities, net of businesses acquired:
Receivables	(53,756)	(25,089)
Inventories	(6,991)	(1,631)
Other assets	1,205	(370)
Current liabilities	8,215	655
Other liabilities	(668)	(704)
Other, net	(930)	(291)
Net cash (used in) provided by operating activities	(11,422)	10,336
Cash flows from investing activities
Capital expenditures	(7,345)	(5,892)
Net (deposits in) withdrawals from restricted cash balances	(1,403)	84
Proceeds from sales of securities	192	1
Proceeds from sales of securities	1,444	0
Net cash used in investing activities	(7,112)	(5,807)
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.	(179,848)	(4,236)
Issuance of long-term debt	0	2,000
Repayment of debt by consolidated joint ventures, net	(7,367)	(7,024)
Net cash (used) received to settle stock-based awards	(870)	361
Repayments of long-term debt	(306)	(250)
Income tax benefit from exercise of stock options	0	96
Net cash used in financing activities	(188,391)	(9,053)
Effect of exchange rate changes on cash	2,499	(171)
Decrease in cash and cash equivalents	(204,426)	(4,695)
Cash and cash equivalents at the beginning of the period	351,317	274,844
Cash and cash equivalents at the end of the period	$ 146,891	$ 270,149

Earnings per Common Share

Earnings per Common Share	3 Months Ended
	Apr. 01, 2017
Earnings Per Share [Abstract]
Earnings per Common Share	Earnings per Common Share Basic per share amounts have been computed based on the average number of common shares outstanding. Diluted per share amounts reflect the increase in average common shares outstanding that would result from the assumed exercise of outstanding stock options and vesting of restricted stock awards, computed using the treasury stock method. Approximately 579 thousand stock-based awards were excluded from the computation of diluted earnings per share for the quarter ended April 2, 2016 because they were antidilutive.

Special Dividend

Special Dividend	3 Months Ended
	Apr. 01, 2017
Equity [Abstract]
Special Dividend	Special Dividend On March 9, 2017, the Company distributed a special dividend of $3.00 in cash and $5.00 in principal amount of the Company’s 6% Subordinated Debentures (Debentures) due March 1, 2027 for each share of common stock outstanding. Interest on the Debentures is payable semiannually on September 1 and March 1, commencing September 1, 2017. At issuance, the Debentures were recorded at their estimated fair value. The fair value of the Debentures is estimated based on quoted market prices for the same or similar issues, the current rates offered to the Company for debt of the same remaining maturities, or the use of market standard models. The carrying value of the Debentures approximate fair value at April 1, 2017 . The Debentures are subordinated to all other funded debt of the Company and are callable, in whole or in part, at any time at the option of the Company, subject to declining call premiums during the first five years. The Debentures also grant each holder the right to require the Company to repurchase such holder’s Debentures in the event of a change in control at declining repurchase premiums during the first five years. The Debentures may be redeemed, subject to the conditions set forth above, at the following redemption price (expressed as a percentage of principal amount) plus any accrued but unpaid interest to, but excluding, the redemption date: If redeemed during the 12-month period beginning March 9,: Year Redemption Price 2017 106% 2018 105 2019 104 2020 103 2021 102 2022 and thereafter 100 The effect of the special dividend was a decrease in stockholders’ equity of approximately $ 458.7 million , an increase in long-term debt of approximately $ 284.5 million , and a decrease in cash of approximately $ 174.2 million .

Segment Information

Segment Information	3 Months Ended
	Apr. 01, 2017
Segment Reporting [Abstract]
Segment Information	Segment Information Each of the Company’s 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., sold in the U.S, and exported to markets worldwide. 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). 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, assemblies, high pressure components, and coaxial heat exchangers primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S. Summarized segment information is as follows: For the Quarter Ended April 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 398,775 $ 149,837 $ 34,279 $ (4,971 ) $ 577,920 Cost of goods sold 344,646 124,043 25,564 (5,826 ) 488,427 Depreciation and amortization 5,342 1,898 629 486 8,355 Selling, general, and administrative expense 18,421 3,230 2,476 11,404 35,531 Operating income 30,366 20,666 5,610 (11,035 ) 45,607 Interest expense (2,531 ) Other income, net 551 Income before income taxes $ 43,627 Segment information (continued): For the Quarter Ended April 2, 2016 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 368,890 $ 134,521 $ 30,706 $ (1,308 ) $ 532,809 Cost of goods sold 313,792 109,229 23,705 (84 ) 446,642 Depreciation and amortization 5,649 2,135 599 537 8,920 Selling, general, and administrative expense 18,290 3,245 2,523 11,722 35,780 Operating income 31,159 19,912 3,879 (13,483 ) 41,467 Interest expense (1,848 ) Other income, net 245 Income before income taxes $ 39,864

Inventories

Inventories	3 Months Ended
	Apr. 01, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories (In thousands) April 1, 2017 December 31, 2016 Raw materials and supplies $ 66,430 $ 57,387 Work-in-process 28,013 42,227 Finished goods 163,839 149,288 Valuation reserves (6,324 ) (6,889 ) Inventories $ 251,958 $ 242,013

Derivative Instruments and Hedg

Derivative Instruments and Hedging Activities	3 Months Ended
	Apr. 01, 2017
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Instruments and Hedging Activities	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 a hedge of (i) a forecasted transaction or the variability of cash flow to be paid (cash flow hedge) or (ii) 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 that is qualified, designated and highly effective as a cash flow hedge are recorded in stockholders’ equity within 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 derivatives executed as economic hedges and the ineffective portion of designated derivatives 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 April 1, 2017 , the Company held open futures contracts to purchase approximately $20.1 million of copper over the next nine months related to fixed price sales orders. The fair value of those futures contracts was a $178 thousand 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 April 1, 2017 , this amount was approximately $92 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 April 1, 2017 , the Company held open futures contracts to sell approximately $38.6 million of copper over the next six months related to copper inventory. The fair value of those futures contracts was a $293 thousand net gain 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 revolving credit facility, the all-in fixed rate is 2.46 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 at inception. During the fourth quarter of 2016, the Company discontinued hedge accounting prospectively. 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 $295 thousand loss position at April 1, 2017 , and there was $405 thousand of deferred losses , net of tax, included in AOCI that are expected to be reclassified into interest expense over the term of the interest rate swap. 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 April 1, 2017 December 31, 2016 Balance Sheet Location April 1, 2017 December 31, 2016 Hedging instrument: Commodity contracts - gains Other current assets $ 600 $ 1,013 Other current liabilities $ 68 $ 564 Commodity contracts - losses Other current assets — (148 ) Other current liabilities (197 ) (920 ) Interest rate swap Other current assets — — Other current liabilities (295 ) (787 ) Total derivatives (1) $ 600 $ 865 $ (424 ) $ (1,143 ) (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: For the Quarter Ended (In thousands) Location April 1, 2017 April 2, 2016 Fair value hedges: Gain (loss) on commodity contracts (qualifying) Cost of goods sold $ — $ 213 Gain (loss) on hedged item - inventory Cost of goods sold — (247 ) Undesignated derivatives: (Loss) gain on qualifying contracts (nonqualifying) Cost of goods sold (1,095 ) 234 The following tables summarize amounts recognized in and reclassified from AOCI during the period: For the Quarter Ended April 1, 2017 (In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (563 ) Cost of goods sold $ 352 Interest rate swap — Interest expense 149 Other 118 Other — Total $ (445 ) Total $ 501 For the Quarter Ended April 2, 2016 (In thousands) Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 873 Cost of goods sold $ 68 Interest rate swap (470 ) Interest expense 69 Other 54 Other — Total $ 457 Total $ 137 The Company enters into futures and forward contracts that closely match the terms of the underlying transactions. As a result, the ineffective portion of the open hedge contracts through April 1, 2017 was not material to the Condensed Consolidated Statements of Income. The Company primarily enters into International Swaps and Derivatives Association master netting agreements with major financial institutions that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the Company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. The Company does not offset fair value amounts for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral. At April 1, 2017 and December 31, 2016 , the Company had recorded restricted cash in other current assets of $2.0 million and $1.4 million , respectively, as collateral related to open derivative contracts under the master netting arrangements.

Investment in Unconsolidated Af

Investment in Unconsolidated Affiliates	3 Months Ended
	Apr. 01, 2017
Equity Method Investments and Joint Ventures [Abstract]
Investment in Unconsolidated Affiliates	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 and its proportionate share of the investees’ other comprehensive income (loss), net of income taxes, in the Condensed Consolidated Statements of Comprehensive Income. In general, the equity investment in unconsolidated affiliates is equal to the current equity investment plus the entities’ undistributed earnings. 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. April 1, 2017 December 31, 2016 Current assets $ 231,485 $ 244,323 Noncurrent assets 129,500 130,400 Current liabilities 152,710 148,806 Noncurrent liabilities 62,126 71,681 For the Quarter Ended (In thousands) April 1, 2017 April 2, 2016 Net sales $ 126,300 $ 151,600 Gross profit 15,600 1,800 Net (loss) income (2,487 ) 5,843 The Company’s income from unconsolidated affiliates, net of tax, for the quarter ended April 2, 2016 included a gain of $17.1 million that resulted from the allocation of the purchase price, which was partially offset by restructuring and impairment charges of $5.3 million and net losses of $6.0 million .

Benefit Plans

Benefit Plans	3 Months Ended
	Apr. 01, 2017
Compensation and Retirement Disclosure [Abstract]
Benefit Plans	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 (In thousands) April 1, 2017 April 2, 2016 Pension benefits: Service cost $ 35 $ 195 Interest cost 1,665 1,975 Expected return on plan assets (2,182 ) (2,466 ) Amortization of net loss 556 774 Net periodic benefit cost $ 74 $ 478 Other benefits: Service cost $ 56 $ 62 Interest cost 149 156 Amortization of prior service credit (225 ) (224 ) Amortization of net (gain) loss (5 ) 2 Net periodic benefit income $ (25 ) $ (4 )

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Apr. 01, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	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. Equal Employment Opportunity Commission Matter On October 5, 2016, the Company received a demand letter from the Los Angeles District Office of the United States Equal Employment Opportunity Commission (EEOC). The EEOC alleges that between May 2011 and April 2015, various Company employees were terminated in violation of the Americans with Disabilities Act, and that certain of the Company’s employee leave and attendance policies were discriminatory in nature. On that basis, the EEOC’s letter includes a demand for monetary relief on behalf of an identified class of 20 individuals, and an unidentified class of 150 individuals, in addition to injunctive relief. The Company believes the EEOC’s allegations are without merit. Notwithstanding the Company’s position, in consultation with its liability insurers, the Company entered into a conciliation process with the EEOC for purposes of resolving the claims. On April 12, 2017, the Company received a letter from the EEOC stating that the conciliation process had concluded without a resolution of the claims, and that the matter would be referred to its Legal Department for potential litigation. Due to the procedural stage of this matter, the Company is unable to determine the likelihood of a material adverse outcome in this matter, or the amount or range of a potential loss in excess of any available insurance coverage. Guarantees Guarantees, in the form of letters of credit, are issued by the Company generally to assure the payment of insurance deductibles and certain retiree health benefits. The terms of the guarantees are generally one year but are renewable annually as required. These letters are primarily backed by the Company’s revolving credit facility. The maximum payments that the Company could be required to make under its guarantees at April 1, 2017 were $7.0 million .

Income Taxes

Income Taxes	3 Months Ended
	Apr. 01, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company’s effective tax rate for the first quarter of 2017 was 27 percent compared with 35 percent for the same period last year. The items impacting the effective tax rate for the first quarter of 2017 were primarily attributable to reductions for the U.S. production activities deduction of $0.9 million ; the effect of foreign tax rates lower than statutory tax rates of $1.4 million ; the tax benefit of equity compensation deductions of $1.7 million ; and the impact of investments in unconsolidated affiliates of $0.8 million . These items were partially offset by the provision for state income taxes, net of the federal benefit, of $0.9 million . The items impacting the effective tax rate for the first quarter of 2016 were primarily attributable to reductions for the U.S. production activities deduction of $0.9 million and the effect of foreign tax rates lower than statutory rates of $1.1 million . These items were partially offset by the provision for state income taxes, net of federal benefit, of $0.8 million and the recording of a basis difference in unconsolidated affiliates of $1.0 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	3 Months Ended
	Apr. 01, 2017
Equity [Abstract]
Accumulated Other Comprehensive Income	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 Quarter Ended April 1, 2017 (In thousands) Cumulative Translation Adjustment Unrealized (Loss) Gain on Derivatives Pension/OPEB Liability Adjustment Unrealized Gain (Loss) on Equity Securities Attributable to Unconsol. Affiliates Total Balance as of December 31, 2016 $ (49,965 ) $ (300 ) $ (23,046 ) 380 $ 5,975 $ (66,956 ) Other comprehensive income (loss) before reclassifications 6,561 (445 ) (222 ) 16 (1,598 ) 4,312 Amounts reclassified from AOCI — 501 262 (160 ) — 603 Net current-period other comprehensive income (loss) 6,561 56 40 (144 ) (1,598 ) 4,915 Balance as of April 1, 2017 $ (43,404 ) $ (244 ) $ (23,006 ) 236 $ 4,377 $ (62,041 ) For the Quarter Ended April 2, 2016 (In thousands) Cumulative Translation Adjustment Unrealized (Loss) Gain on Derivatives Pension/OPEB Liability Adjustment Unrealized Gain on Equity Securities Attributable to Unconsol. Affiliates Total Balance as of December 26, 2015 $ (24,773 ) $ (2,009 ) $ (28,429 ) 221 $ — $ (54,990 ) Other comprehensive (loss) income before reclassifications (337 ) 457 760 14 — 894 Amounts reclassified from AOCI — 137 412 — — 549 Net current-period other comprehensive (loss) income (337 ) 594 1,172 14 — 1,443 Balance as of April 2, 2016 $ (25,110 ) $ (1,415 ) $ (27,257 ) 235 $ — $ (53,547 ) Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended (In thousands) April 1, 2017 April 2, 2016 Affected line item Unrealized losses (gains) on derivatives: Commodity contracts $ 422 $ 237 Cost of goods sold Interest rate swap 232 108 Interest expense (153 ) (208 ) Income tax expense 501 137 Net of tax — — Noncontrolling interests $ 501 $ 137 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 326 $ 552 Selling, general, and administrative expense (64 ) (140 ) Income tax expense 262 412 Net of tax — — Noncontrolling interests $ 262 $ 412 Net of tax and noncontrolling interests Sale of available-for-sale securities $ (254 ) $ — Other income 94 — Income tax expense (160 ) — Net of tax — — Noncontrolling interests $ (160 ) $ — Net of tax and noncontrolling

Noncontrolling Interests

Noncontrolling Interests	3 Months Ended
	Apr. 01, 2017
Noncontrolling Interest [Abstract]
Noncontrolling Interests	Noncontrolling Interests (In thousands) Noncontrolling Interests Balance as of December 31, 2016 $ 37,753 Net income attributable to noncontrolling interests 468 Other comprehensive income attributable to noncontrolling interests, net of tax: Foreign currency translation 649 Balance as of April 1, 2017 $ 38,870

Recently Issued Accounting Stan

Recently Issued Accounting Standards	3 Months Ended
	Apr. 01, 2017
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	Recently Issued Accounting Standards In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The ASU requires employers that sponsor defined benefit pension and/or other postretirement benefit plans to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period and other components of net periodic benefits cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. The guidance is effective for the Company in interim and annual periods beginning in 2018. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued or made available for issuance. The Company does not expect the adoption of the standard to have a material impact on its Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU eliminates step two from the goodwill impairment test and instead requires an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The updated guidance requires a prospective adoption. Early adoption is permitted. The guidance is effective for the Company beginning in 2020. The Company is in the process of evaluating the effects of the provisions of the ASU on its Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The ASU provides guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The updated guidance requires a prospective adoption. Early adoption is permitted. This update will be effective for the Company beginning in 2018. The Company does not expect the provisions of the ASU to have a material impact on its Condensed Consolidated Financial Statements. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . The ASU provides correction or improvement to the guidance previously issued in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . Under the ASU, an entity will recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration that it expects to receive in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for the Company at the beginning of 2018. The Company is in the process of examining contract specific terms within each segment and assessing potential changes to its accounting policies, practices, and internal controls over financial reporting to support the standard. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The guidance will be applied retrospectively and is effective for public business entities in interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the adoption of the standard to have a material impact on its Condensed Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The ASU requires companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. Companies will still be required to defer the income tax effects of intercompany inventory transactions in an exception to the income tax accounting guidance. The guidance is effective for public business entities in annual periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period. The Company is still evaluating the effects that the provisions of the ASU will have on its Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU requires an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a financing or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The ASU will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The updated guidance requires a modified retrospective adoption. The Company is still evaluating the effects that the provision of the ASU will have on its Condensed Consolidated Financial Statements.

Recently Issued Accounting St20

Recently Issued Accounting Standards (Policies)	3 Months Ended
	Apr. 01, 2017
Accounting Changes and Error Corrections [Abstract]
Recently Issued Accounting Standards	In March 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost . The ASU requires employers that sponsor defined benefit pension and/or other postretirement benefit plans to present the service cost component of net periodic benefit cost in the same income statement line item(s) as other employee compensation costs arising from services rendered during the period and other components of net periodic benefits cost separately from the line item(s) that includes the service cost and outside of any subtotal of operating income. The guidance is effective for the Company in interim and annual periods beginning in 2018. Early adoption is permitted as of the beginning of an annual period for which financial statements have not been issued or made available for issuance. The Company does not expect the adoption of the standard to have a material impact on its Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU eliminates step two from the goodwill impairment test and instead requires an entity to perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. The entity should recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The updated guidance requires a prospective adoption. Early adoption is permitted. The guidance is effective for the Company beginning in 2020. The Company is in the process of evaluating the effects of the provisions of the ASU on its Condensed Consolidated Financial Statements. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business . The ASU provides guidance to assist entities in evaluating whether transactions should be accounted for as acquisitions (or disposals) of assets or businesses. The updated guidance requires a prospective adoption. Early adoption is permitted. This update will be effective for the Company beginning in 2018. The Company does not expect the provisions of the ASU to have a material impact on its Condensed Consolidated Financial Statements. In December 2016, the FASB issued ASU No. 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers . The ASU provides correction or improvement to the guidance previously issued in ASU 2014-09, Revenue from Contracts with Customers (Topic 606) . Under the ASU, an entity will recognize revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration that it expects to receive in exchange for the goods or services. It also requires more detailed disclosures to enable users of financial statements to understand the nature, amount, timing and uncertainty of revenue and cash flows arising from contracts with customers. This guidance is effective for the Company at the beginning of 2018. The Company is in the process of examining contract specific terms within each segment and assessing potential changes to its accounting policies, practices, and internal controls over financial reporting to support the standard. In November 2016, the FASB issued ASU No. 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash . The ASU requires entities to show the changes in the total of cash, cash equivalents, restricted cash, and restricted cash equivalents in the statement of cash flows. As a result, entities will no longer present transfers between cash and cash equivalents and restricted cash and restricted cash equivalents in the statement of cash flows. The guidance will be applied retrospectively and is effective for public business entities in interim and annual periods beginning after December 15, 2017. Early adoption is permitted. The Company does not expect the adoption of the standard to have a material impact on its Condensed Consolidated Financial Statements. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory . The ASU requires companies to account for the income tax effects of intercompany transfers of assets other than inventory when the transfer occurs. Companies will still be required to defer the income tax effects of intercompany inventory transactions in an exception to the income tax accounting guidance. The guidance is effective for public business entities in annual periods beginning after December 15, 2017. Early adoption is permitted as of the beginning of an annual period. The Company is still evaluating the effects that the provisions of the ASU will have on its Condensed Consolidated Financial Statements. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . The ASU requires an entity to recognize a right-of-use asset and lease liability for all leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a financing or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. The ASU will be effective for interim and annual periods beginning after December 15, 2018. Early adoption is permitted. The updated guidance requires a modified retrospective adoption. The Company is still evaluating the effects that the provision of the ASU will have on its Condensed Consolidated Financial Statements.

Special Dividend (Tables)

Special Dividend (Tables)	3 Months Ended
	Apr. 01, 2017
Equity [Abstract]
Debt Instrument Redemption Summary	If redeemed during the 12-month period beginning March 9,: Year Redemption Price 2017 106% 2018 105 2019 104 2020 103 2021 102 2022 and thereafter 100

Segment Information (Tables)

Segment Information (Tables)	3 Months Ended
	Apr. 01, 2017
Segment Reporting [Abstract]
Summary of Segment Information	Summarized segment information is as follows: For the Quarter Ended April 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 398,775 $ 149,837 $ 34,279 $ (4,971 ) $ 577,920 Cost of goods sold 344,646 124,043 25,564 (5,826 ) 488,427 Depreciation and amortization 5,342 1,898 629 486 8,355 Selling, general, and administrative expense 18,421 3,230 2,476 11,404 35,531 Operating income 30,366 20,666 5,610 (11,035 ) 45,607 Interest expense (2,531 ) Other income, net 551 Income before income taxes $ 43,627 Segment information (continued): For the Quarter Ended April 2, 2016 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 368,890 $ 134,521 $ 30,706 $ (1,308 ) $ 532,809 Cost of goods sold 313,792 109,229 23,705 (84 ) 446,642 Depreciation and amortization 5,649 2,135 599 537 8,920 Selling, general, and administrative expense 18,290 3,245 2,523 11,722 35,780 Operating income 31,159 19,912 3,879 (13,483 ) 41,467 Interest expense (1,848 ) Other income, net 245 Income before income taxes $ 39,864

Inventories (Tables)

Inventories (Tables)	3 Months Ended
	Apr. 01, 2017
Inventory Disclosure [Abstract]
Inventories	(In thousands) April 1, 2017 December 31, 2016 Raw materials and supplies $ 66,430 $ 57,387 Work-in-process 28,013 42,227 Finished goods 163,839 149,288 Valuation reserves (6,324 ) (6,889 ) Inventories $ 251,958 $ 242,013

Derivative Instruments and He24

Derivative Instruments and Hedging Activities (Tables)	3 Months Ended
	Apr. 01, 2017
Derivative Instruments and Hedging Activities Disclosure [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 April 1, 2017 December 31, 2016 Balance Sheet Location April 1, 2017 December 31, 2016 Hedging instrument: Commodity contracts - gains Other current assets $ 600 $ 1,013 Other current liabilities $ 68 $ 564 Commodity contracts - losses Other current assets — (148 ) Other current liabilities (197 ) (920 ) Interest rate swap Other current assets — — Other current liabilities (295 ) (787 ) Total derivatives (1) $ 600 $ 865 $ (424 ) $ (1,143 ) (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: For the Quarter Ended (In thousands) Location April 1, 2017 April 2, 2016 Fair value hedges: Gain (loss) on commodity contracts (qualifying) Cost of goods sold $ — $ 213 Gain (loss) on hedged item - inventory Cost of goods sold — (247 ) Undesignated derivatives: (Loss) gain on qualifying contracts (nonqualifying) Cost of goods sold (1,095 ) 234
Summary of Activities Related to Derivative Instruments Classified as Cash Flow Hedges	The following tables summarize amounts recognized in and reclassified from AOCI during the period: For the Quarter Ended April 1, 2017 (In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (563 ) Cost of goods sold $ 352 Interest rate swap — Interest expense 149 Other 118 Other — Total $ (445 ) Total $ 501 For the Quarter Ended April 2, 2016 (In thousands) Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 873 Cost of goods sold $ 68 Interest rate swap (470 ) Interest expense 69 Other 54 Other — Total $ 457 Total $ 137

Investment in Unconsolidated 25

Investment in Unconsolidated Affiliates (Tables)	3 Months Ended
	Apr. 01, 2017
Equity Method Investments and Joint Ventures [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. April 1, 2017 December 31, 2016 Current assets $ 231,485 $ 244,323 Noncurrent assets 129,500 130,400 Current liabilities 152,710 148,806 Noncurrent liabilities 62,126 71,681 For the Quarter Ended (In thousands) April 1, 2017 April 2, 2016 Net sales $ 126,300 $ 151,600 Gross profit 15,600 1,800 Net (loss) income (2,487 ) 5,843

Benefit Plans (Tables)

Benefit Plans (Tables)	3 Months Ended
	Apr. 01, 2017
Compensation and Retirement Disclosure [Abstract]
Components of Net Periodic Benefit Cost (Income)	The components of net periodic benefit cost (income) are as follows: For the Quarter Ended (In thousands) April 1, 2017 April 2, 2016 Pension benefits: Service cost $ 35 $ 195 Interest cost 1,665 1,975 Expected return on plan assets (2,182 ) (2,466 ) Amortization of net loss 556 774 Net periodic benefit cost $ 74 $ 478 Other benefits: Service cost $ 56 $ 62 Interest cost 149 156 Amortization of prior service credit (225 ) (224 ) Amortization of net (gain) loss (5 ) 2 Net periodic benefit income $ (25 ) $ (4 )

Accumulated Other Comprehensi27

Accumulated Other Comprehensive Income (Tables)	3 Months Ended
	Apr. 01, 2017
Equity [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 Quarter Ended April 1, 2017 (In thousands) Cumulative Translation Adjustment Unrealized (Loss) Gain on Derivatives Pension/OPEB Liability Adjustment Unrealized Gain (Loss) on Equity Securities Attributable to Unconsol. Affiliates Total Balance as of December 31, 2016 $ (49,965 ) $ (300 ) $ (23,046 ) 380 $ 5,975 $ (66,956 ) Other comprehensive income (loss) before reclassifications 6,561 (445 ) (222 ) 16 (1,598 ) 4,312 Amounts reclassified from AOCI — 501 262 (160 ) — 603 Net current-period other comprehensive income (loss) 6,561 56 40 (144 ) (1,598 ) 4,915 Balance as of April 1, 2017 $ (43,404 ) $ (244 ) $ (23,006 ) 236 $ 4,377 $ (62,041 ) For the Quarter Ended April 2, 2016 (In thousands) Cumulative Translation Adjustment Unrealized (Loss) Gain on Derivatives Pension/OPEB Liability Adjustment Unrealized Gain on Equity Securities Attributable to Unconsol. Affiliates Total Balance as of December 26, 2015 $ (24,773 ) $ (2,009 ) $ (28,429 ) 221 $ — $ (54,990 ) Other comprehensive (loss) income before reclassifications (337 ) 457 760 14 — 894 Amounts reclassified from AOCI — 137 412 — — 549 Net current-period other comprehensive (loss) income (337 ) 594 1,172 14 — 1,443 Balance as of April 2, 2016 $ (25,110 ) $ (1,415 ) $ (27,257 ) 235 $ — $ (53,547 )
Reclassification Adjustments Out of AOCI	Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended (In thousands) April 1, 2017 April 2, 2016 Affected line item Unrealized losses (gains) on derivatives: Commodity contracts $ 422 $ 237 Cost of goods sold Interest rate swap 232 108 Interest expense (153 ) (208 ) Income tax expense 501 137 Net of tax — — Noncontrolling interests $ 501 $ 137 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 326 $ 552 Selling, general, and administrative expense (64 ) (140 ) Income tax expense 262 412 Net of tax — — Noncontrolling interests $ 262 $ 412 Net of tax and noncontrolling interests Sale of available-for-sale securities $ (254 ) $ — Other income 94 — Income tax expense (160 ) — Net of tax — — Noncontrolling interests $ (160 ) $ — Net of tax and noncontrolling

Noncontrolling Interests (Table

Noncontrolling Interests (Tables)	3 Months Ended
	Apr. 01, 2017
Noncontrolling Interest [Abstract]
Schedule of Noncontrolling Interests	(In thousands) Noncontrolling Interests Balance as of December 31, 2016 $ 37,753 Net income attributable to noncontrolling interests 468 Other comprehensive income attributable to noncontrolling interests, net of tax: Foreign currency translation 649 Balance as of April 1, 2017 $ 38,870

Earnings per Common Share (Deta

Earnings per Common Share (Details) shares in Thousands	3 Months Ended
	Apr. 02, 2016shares
Earnings Per Share [Abstract]
Stock-based awards excluded from the computation of diluted earnings per share (in shares)	579

Special Dividend - Additional I

Special Dividend - Additional Information (Details) - USD ($) $ / shares in Units, $ in Millions	Mar. 09, 2017	Apr. 01, 2017
Equity [Abstract]
Cash dividend (in dollars per share)	$ 3
Cash dividend, subordinated debentures (in dollars per share)	$ 5
Interest rate of subordinated debentures	6.00%
Decrease in stockholders' equity		$ 458.7
Increase in long-term debt		284.5
Decrease in cash		$ 174.2

Special Dividend - Debt Instrum

Special Dividend - Debt Instrument Redemption (Details) - Subordinated Debt [Member]	3 Months Ended
	Apr. 01, 2017
2017 [Member]
Debt Instrument, Redemption [Line Items]
Redemption price (percent)	106.00%
2018 [Member]
Debt Instrument, Redemption [Line Items]
Redemption price (percent)	105.00%
2019 [Member]
Debt Instrument, Redemption [Line Items]
Redemption price (percent)	104.00%
2020 [Member]
Debt Instrument, Redemption [Line Items]
Redemption price (percent)	103.00%
2021 [Member]
Debt Instrument, Redemption [Line Items]
Redemption price (percent)	102.00%
2022 and thereafter
Debt Instrument, Redemption [Line Items]
Redemption price (percent)	100.00%

Segment Information - Summary o

Segment Information - Summary of Segment Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Summary of segment information [Abstract]
Net sales	$ 577,920	$ 532,809
Cost of goods sold	488,427	446,642
Depreciation and amortization	8,355	8,920
Selling, general, and administrative expense	35,531	35,780
Operating income	45,607	41,467
Interest expense	(2,531)	(1,848)
Other income, net	551	245
Income before income taxes	43,627	39,864
Operating Segments [Member] | Piping Systems [Member]
Summary of segment information [Abstract]
Net sales	398,775	368,890
Cost of goods sold	344,646	313,792
Depreciation and amortization	5,342	5,649
Selling, general, and administrative expense	18,421	18,290
Operating income	30,366	31,159
Operating Segments [Member] | Industrial Metals [Member]
Summary of segment information [Abstract]
Net sales	149,837	134,521
Cost of goods sold	124,043	109,229
Depreciation and amortization	1,898	2,135
Selling, general, and administrative expense	3,230	3,245
Operating income	20,666	19,912
Operating Segments [Member] | Climate [Member]
Summary of segment information [Abstract]
Net sales	34,279	30,706
Cost of goods sold	25,564	23,705
Depreciation and amortization	629	599
Selling, general, and administrative expense	2,476	2,523
Operating income	5,610	3,879
Corporate and Eliminations [Member]
Summary of segment information [Abstract]
Net sales	(4,971)	(1,308)
Cost of goods sold	(5,826)	(84)
Depreciation and amortization	486	537
Selling, general, and administrative expense	11,404	11,722
Operating income	$ (11,035)	$ (13,483)

Inventories (Details)

Inventories (Details) - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials and supplies	$ 66,430	$ 57,387
Work-in-process	28,013	42,227
Finished goods	163,839	149,288
Valuation reserves	(6,324)	(6,889)
Inventories	$ 251,958	$ 242,013

Derivative Instruments and He34

Derivative Instruments and Hedging Activities - Additional Information (Details) - USD ($)	Jan. 12, 2015	Apr. 01, 2017	Dec. 31, 2016
Derivative [Line Items]
Restricted cash in other current assets as collateral related to open derivative contracts		$ 2,000,000	$ 1,400,000
Commodity Contracts [Member]
Derivative [Line Items]
Deferred net gains (losses), net of tax, included in AOCI		92,000
Interest Rate Swap [Member]
Derivative [Line Items]
Deferred net gains (losses), net of tax, included in AOCI		$ (405,000)
Period of interest rate swap	2 years
Notional amount	$ 200,000,000
Interest rate swap, fixed interest rate	1.40%
Term loan facility, all-in fixed interest rate		2.46%
Cash Flow Hedging [Member] | Commodity Contracts [Member] | Long [Member]
Derivative [Line Items]
Open option contracts written, at fair value		$ 20,100,000
Time period for open copper future contract purchases		9 months
Fair value of future contracts with gain (loss) position		$ 178,000
Cash Flow Hedging [Member] | Interest Rate Swap [Member] | Long [Member]
Derivative [Line Items]
Fair value of future contracts with gain (loss) position		(295,000)
Fair Value Hedging [Member] | Commodity Contracts [Member] | Short [Member]
Derivative [Line Items]
Fair value of future contracts with gain (loss) position		293,000
Open future contracts to sell copper		$ 38,600,000
Time period for open copper future contract sales		6 months

Derivative Instruments and He35

Derivative Instruments and Hedging Activities - Summary of Location and Fair Value (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	Apr. 01, 2017	Dec. 31, 2016
Derivatives, Fair Value [Line Items]
Total derivative assets	$ 600	$ 865
Total derivative liabilities	(424)	(1,143)
Other Current Assets [Member] | Commodity Contracts [Member]
Derivatives, Fair Value [Line Items]
Other current assets: Gain positions	600	1,013
Other current assets: Loss positions	0	(148)
Other Current Assets [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Other current assets: Loss positions	0	0
Other Current Liabilities [Member] | Commodity Contracts [Member]
Derivatives, Fair Value [Line Items]
Other current liability: Gain positions	68	564
Other current liability: Loss positions	(197)	(920)
Other Current Liabilities [Member] | Interest Rate Swap [Member]
Derivatives, Fair Value [Line Items]
Other current liability: Loss positions	$ (295)	$ (787)

Derivative Instruments and He36

Derivative Instruments and Hedging Activities - Effects of Derivative Instruments on Statements of Income (Details) - Cost of Goods Sold [Member] - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Commodity Contracts [Member] | Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on the derivatives in designated and qualifying fair value hedges	$ 0	$ 213
Commodity Contracts [Member] | Not Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain on commodity contracts (non-qualifying)	(1,095)	234
Inventories [Member] | Fair Value Hedging [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on the derivatives in designated and qualifying fair value hedges	$ 0	$ (247)

Derivative Instruments and He37

Derivative Instruments and Hedging Activities - Amounts Recognized in and Reclassified from AOCI (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax	$ (445)	$ 457
Loss Reclassified from AOCI (Effective Portion), Net of Tax	501	137
Commodity Contracts [Member]
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax	(563)	873
Commodity Contracts [Member] | Cost of Goods Sold [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Loss Reclassified from AOCI (Effective Portion), Net of Tax	352	68
Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax	0	(470)
Interest Rate Swap [Member] | Interest Expense [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Loss Reclassified from AOCI (Effective Portion), Net of Tax	149	69
Other [Member]
Derivative Instruments, Gain (Loss) [Line Items]
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax	118	54
Loss Reclassified from AOCI (Effective Portion), Net of Tax	$ 0	$ 0

Investment in Unconsolidated 38

Investment in Unconsolidated Affiliates - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Schedule of Equity Method Investments [Line Items]
Net loss	$ 2,487	$ (5,843)
Tecumseh Products Holdings LLC [Member]
Schedule of Equity Method Investments [Line Items]
Interest in the joint venture, ownership percentage	50.00%
Gain resulted from the allocation of the purchase price included in Joint Venture's net income		17,100
Restructuring and impairment charges		5,300
Net loss		$ 6,000
Second Unconsolidated Affiliate [Member]
Schedule of Equity Method Investments [Line Items]
Interest in the joint venture, ownership percentage	50.00%

Investment in Unconsolidated 39

Investment in Unconsolidated Affiliates - Summarized Financial Information Derived from Equity Method Investees' Consolidated Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016	Dec. 31, 2016
Balance sheet data [Abstract]
Current assets	$ 231,485		$ 244,323
Noncurrent assets	129,500		130,400
Current liabilities	152,710		148,806
Noncurrent liabilities	62,126		$ 71,681
Income statement data [Abstract]
Net sales	126,300	$ 151,600
Gross profit	15,600	1,800
Net (loss) income	$ (2,487)	$ 5,843

Benefit Plans (Details)

Benefit Plans (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Pension Benefits [Member]
Components of net periodic benefit cost (income) [Abstract]
Service cost	$ 35	$ 195
Interest cost	1,665	1,975
Expected return on plan assets	(2,182)	(2,466)
Amortization of net (gain) loss	556	774
Net periodic benefit income	74	478
Other Benefits [Member]
Components of net periodic benefit cost (income) [Abstract]
Service cost	56	62
Interest cost	149	156
Amortization of prior service credit	(225)	(224)
Amortization of net (gain) loss	(5)	2
Net periodic benefit income	$ (25)	$ (4)

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	Oct. 05, 2016individual	Apr. 01, 2017USD ($)
Loss Contingencies [Line Items]
Term of guarantees		1 year
Payments required to be made under guarantees, maximum | $		$ 7
Equal Employment Opportunity Commission Matter [Member]
Loss Contingencies [Line Items]
Number of identified individuals	20
Number of unidentified individuals	150

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Millions	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Income Tax Disclosure [Abstract]
Effective tax rate	27.00%	35.00%
Reduction for U.S. production activities	$ 0.9	$ 0.9
Effect of foreign adjustments	1.4	1.1
Tax benefit of equity compensation deductions	1.7
Impact of investments in unconsolidated affiliates	0.8
Provision for state income taxes, net of federal benefits	$ 0.9	0.8
Basis difference in unconsolidated affiliates		$ 1

Accumulated Other Comprehensi43

Accumulated Other Comprehensive Income - Changes by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	$ 936,437
Total other comprehensive income, net	5,564	$ 669
Ending balance	506,745
Total [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	(66,956)	(54,990)
Other comprehensive income (loss) before reclassifications	4,312	894
Amounts reclassified from AOCI	603	549
Total other comprehensive income, net	4,915	1,443
Ending balance	(62,041)	(53,547)
Cumulative Translation Adjustment [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	(49,965)	(24,773)
Other comprehensive income (loss) before reclassifications	6,561	(337)
Amounts reclassified from AOCI	0	0
Total other comprehensive income, net	6,561	(337)
Ending balance	(43,404)	(25,110)
Unrealized (Losses) Gains on Derivatives [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	(300)	(2,009)
Other comprehensive income (loss) before reclassifications	(445)	457
Amounts reclassified from AOCI	501	137
Total other comprehensive income, net	56	594
Ending balance	(244)	(1,415)
Minimum Pension/OPEB Liability Adjustment [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	(23,046)	(28,429)
Other comprehensive income (loss) before reclassifications	(222)	760
Amounts reclassified from AOCI	262	412
Total other comprehensive income, net	40	1,172
Ending balance	(23,006)	(27,257)
Unrealized Gains on Equity Securities [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	380	221
Other comprehensive income (loss) before reclassifications	16	14
Amounts reclassified from AOCI	(160)	0
Total other comprehensive income, net	(144)	14
Ending balance	236	235
Attributable to Unconsolidated Affiliates [Member]
Changes in accumulated other comprehensive income [Roll Forward]
Beginning balance	5,975	0
Other comprehensive income (loss) before reclassifications	(1,598)	0
Amounts reclassified from AOCI	0	0
Total other comprehensive income, net	(1,598)	0
Ending balance	$ 4,377	$ 0

Accumulated Other Comprehensi44

Accumulated Other Comprehensive Income - Reclassification Adjustments Out of AOCI (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Reclassification adjustments out of AOCI [Abstract]
Cost of goods sold	$ (488,427)	$ (446,642)
Interest expense	(2,531)	(1,848)
Selling, general, and administrative expense	(35,531)	(35,780)
Other income, net	551	245
Income tax expense	(11,929)	(14,121)
Consolidated net income	30,455	28,665
Noncontrolling interests	468	35
Net income attributable to Mueller Industries, Inc.	29,987	28,630
Unrealized (Losses) Gains on Derivatives [Member] | Amount Reclassified from AOCI [Member]
Reclassification adjustments out of AOCI [Abstract]
Cost of goods sold	422	237
Interest expense	232	108
Income tax expense	(153)	(208)
Consolidated net income	501	137
Noncontrolling interests	0	0
Net income attributable to Mueller Industries, Inc.	501	137
Amortization of Net Loss and Prior Service Cost on Employee Benefit Plans [Member] | Amount Reclassified from AOCI [Member]
Reclassification adjustments out of AOCI [Abstract]
Selling, general, and administrative expense	326	552
Income tax expense	(64)	(140)
Consolidated net income	262	412
Noncontrolling interests	0	0
Net income attributable to Mueller Industries, Inc.	262	412
Sale of Available-For-Sale Securities [Member] | Amount Reclassified from AOCI [Member]
Reclassification adjustments out of AOCI [Abstract]
Other income, net	(254)	0
Income tax expense	94	0
Consolidated net income	(160)	0
Accumulated Net Investment Gain (Loss) Attributable to Noncontrolling Interest [Member] | Amount Reclassified from AOCI [Member]
Reclassification adjustments out of AOCI [Abstract]
Noncontrolling interests	0	0
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | Amount Reclassified from AOCI [Member]
Reclassification adjustments out of AOCI [Abstract]
Net income attributable to Mueller Industries, Inc.	$ (160)	$ 0

Noncontrolling Interests (Detai

Noncontrolling Interests (Details) - USD ($) $ in Thousands	3 Months Ended
	Apr. 01, 2017	Apr. 02, 2016
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward]
Balance at December 31, 2016	$ 37,753
Net income attributable to noncontrolling interests	468	$ 35
Other comprehensive income attributable to noncontrolling interests, net of tax:
Foreign currency translation	649
Balance at April 1, 2017	$ 38,870