Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Jul. 20, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MUELLER INDUSTRIES INC | |
Entity Central Index Key | 89,439 | |
Current Fiscal Year End Date | --12-29 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 57,590,703 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jul. 01, 2017 | [1] | Jun. 30, 2018 | Jul. 01, 2017 | |||
Income Statement [Abstract] | |||||||
Net sales | $ 662,773 | $ 614,266 | $ 1,302,833 | $ 1,192,186 | [1] | ||
Cost of goods sold | 563,820 | 524,311 | 1,109,490 | 1,012,738 | [1] | ||
Depreciation and amortization | 9,006 | 8,595 | 18,462 | 16,950 | [1] | ||
Selling, general, and administrative expense | 38,428 | 36,299 | 72,485 | 71,873 | [1] | ||
(Gain) loss on sale of assets | (409) | (1,631) | 3,060 | (1,631) | |||
Operating income | 51,928 | 46,692 | 99,336 | 92,256 | [1] | ||
Interest expense | (6,073) | (6,442) | (11,982) | (8,973) | [1] | ||
Other income, net | 586 | 342 | 1,146 | 936 | [1] | ||
Income before income taxes | 46,441 | 40,592 | 88,500 | 84,219 | [1] | ||
Income tax expense | (12,411) | (12,650) | (19,806) | (24,579) | [1] | ||
Loss from unconsolidated affiliates, net of foreign tax | (148) | (109) | (10,468) | (1,352) | [1],[2] | ||
Consolidated net income | 33,882 | 27,833 | 58,226 | [1] | 58,288 | [1],[2] | |
Net income attributable to noncontrolling interests | (700) | (200) | (916) | (668) | [1] | ||
Net income attributable to Mueller Industries, Inc. | $ 33,182 | $ 27,633 | $ 57,310 | $ 57,620 | [1] | ||
Weighted average shares for basic earnings per share (in shares) | 56,797 | 56,906 | 56,848 | 56,843 | [1] | ||
Effect of dilutive stock-based awards (in shares) | 514 | 511 | 516 | 585 | [1] | ||
Adjusted weighted average shares for diluted earnings per share (in shares) | 57,311 | 57,417 | 57,364 | 57,428 | [1] | ||
Basic earnings per share (in dollars per share) | $ 0.58 | $ 0.49 | $ 1.01 | $ 1.01 | [1] | ||
Diluted earnings per share (in dollars per share) | 0.58 | 0.48 | 1 | 1 | [1] | ||
Dividends per share (in dollars per share) | $ 0.1 | $ 0.1 | $ 0.2 | $ 8.2 | [1] | ||
[1] | The Condensed Consolidated Statements of Income for the quarter and six months ended July 1, 2017 have been adjusted to reflect the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Income. Refer to Note 1 for further discussion. | ||||||
[2] | The Condensed Consolidated Statement of Cash Flows for the six months ended July 1, 2017 has been adjusted to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The Condensed Consolidated Statements of Cash Flows reflects the changes during the periods in the total of cash, cash equivalents, and restricted cash. Therefore, restricted cash activity is included with cash when reconciling the beginning-of-period and end-of-period total amounts shown. Refer to Note 1 for further discussion. |
CONDENSED CONSOLIDATED STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||||
Statement of Comprehensive Income [Abstract] | |||||||
Consolidated net income | $ 33,882 | $ 27,833 | [1] | $ 58,226 | [1] | $ 58,288 | [1],[2] |
Other comprehensive income (loss), net of tax: | |||||||
Foreign currency translation | (11,622) | 906 | (6,645) | 8,116 | |||
Net change with respect to derivative instruments and hedging activities, net of tax of $(3), $(89), $276, and $(185) | 35 | 261 | (1,027) | 317 | |||
Net change in pension and postretirement obligation adjustments, net of tax of $(322), $172, $(142), and $183 | 950 | (405) | 499 | (365) | |||
Attributable to unconsolidated affiliates, net of tax of $(35), $(704), $81, and $199 | 121 | 1,247 | (280) | (351) | |||
Other, net | 0 | (236) | 0 | (380) | |||
Total other comprehensive (loss) income, net | (10,516) | 1,773 | (7,453) | 7,337 | |||
Consolidated comprehensive income | 23,366 | 29,606 | 50,773 | 65,625 | |||
Comprehensive income attributable to noncontrolling interests | (670) | (386) | (1,063) | (1,503) | |||
Comprehensive income attributable to Mueller Industries, Inc. | $ 22,696 | $ 29,220 | $ 49,710 | $ 64,122 | |||
[1] | The Condensed Consolidated Statements of Income for the quarter and six months ended July 1, 2017 have been adjusted to reflect the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Income. Refer to Note 1 for further discussion. | ||||||
[2] | The Condensed Consolidated Statement of Cash Flows for the six months ended July 1, 2017 has been adjusted to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The Condensed Consolidated Statements of Cash Flows reflects the changes during the periods in the total of cash, cash equivalents, and restricted cash. Therefore, restricted cash activity is included with cash when reconciling the beginning-of-period and end-of-period total amounts shown. Refer to Note 1 for further discussion. |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change with respect to derivative instruments and hedging activities, tax (expense) benefit | $ (3) | $ (89) | $ 276 | $ (185) |
Net actuarial loss on pension and postretirement obligations, tax benefit (expense) | (322) | 172 | (142) | 183 |
Attributable to unconsolidated affiliates, tax benefit (expense) | $ (35) | $ (704) | $ 81 | $ 199 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 281,445 | $ 120,269 |
Accounts receivable, less allowance for doubtful accounts of $760 in 2018 and $980 in 2017 | 333,903 | 244,795 |
Inventories | 294,540 | 327,901 |
Other current assets | 27,625 | 46,150 |
Total current assets | 937,513 | 739,115 |
Property, plant, and equipment, net | 284,836 | 304,321 |
Goodwill, net | 139,012 | 130,293 |
Intangible assets, net | 39,237 | 42,008 |
Investment in unconsolidated affiliates | 70,065 | 76,434 |
Other assets | 25,721 | 28,002 |
Total assets | 1,496,384 | 1,320,173 |
Current liabilities: | ||
Current portion of debt | 59,952 | 16,480 |
Accounts payable | 112,090 | 102,503 |
Accrued wages and other employee costs | 31,550 | 33,546 |
Other current liabilities | 69,882 | 89,723 |
Total current liabilities | 273,474 | 242,252 |
Long-term debt, less current portion | 558,534 | 448,592 |
Pension liabilities | 10,245 | 11,606 |
Postretirement benefits other than pensions | 16,754 | 17,107 |
Environmental reserves | 22,984 | 23,699 |
Deferred income taxes | 19,650 | 19,403 |
Other noncurrent liabilities | 22,654 | 21,486 |
Total liabilities | 924,295 | 784,145 |
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 57,590,703 in 2018 and 57,809,509 in 2017 | 802 | 802 |
Additional paid-in capital | 277,987 | 274,585 |
Retained earnings | 788,753 | 743,503 |
Accumulated other comprehensive loss | (58,101) | (51,056) |
Treasury common stock, at cost | (451,740) | (445,723) |
Total Mueller Industries, Inc. stockholders' equity | 557,701 | 522,111 |
Noncontrolling interests | 14,388 | 13,917 |
Total equity | 572,089 | 536,028 |
Commitments and contingencies | 0 | 0 |
Total liabilities and equity | $ 1,496,384 | $ 1,320,173 |
CONDENSED CONSOLIDATED BALANCE6
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 760 | $ 980 |
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) | 57,590,703 | 57,809,509 |
CONDENSED CONSOLIDATED STATEME7
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | [2] | ||
Cash flows from operating activities | ||||
Consolidated net income | [1] | $ 58,226 | $ 58,288 | |
Reconciliation of consolidated net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 18,622 | 17,093 | ||
Stock-based compensation expense | 3,906 | 3,692 | ||
Loss from unconsolidated affiliates | 10,468 | 1,352 | [1] | |
Gain on sale of business | 0 | (1,631) | ||
Loss on disposals of properties | 2,646 | 81 | ||
Gain on sales of securities | 0 | (611) | ||
Impairment charge | 0 | 411 | ||
Deferred income taxes | (1,260) | 3 | ||
Changes in assets and liabilities: | ||||
Receivables | (90,345) | (47,108) | ||
Inventories | 33,357 | (10,874) | ||
Other assets | 12,405 | (4,723) | ||
Current liabilities | (11,566) | (1,262) | ||
Other liabilities | (1,361) | (1,086) | ||
Other, net | 1,121 | (1,078) | ||
Net cash provided by operating activities | 36,219 | 12,547 | ||
Cash flows from investing activities | ||||
Capital expenditures | (10,882) | (11,908) | ||
Acquisition of businesses, net of cash acquired | (12,467) | (18,419) | ||
Proceeds from sale of business, net of cash sold | 0 | 17,483 | ||
Investment in unconsolidated affiliates | (609) | (1,617) | ||
Proceeds from sales of assets | 11,376 | 1,363 | ||
Proceeds from sales of securities | 0 | 1,787 | ||
Net cash used in investing activities | (12,582) | (11,311) | ||
Cash flows from financing activities | ||||
Dividends paid to stockholders of Mueller Industries, Inc. | (11,360) | (185,539) | ||
Dividends paid to noncontrolling interests | (592) | (2,909) | ||
Repurchase of common stock | (6,575) | 0 | ||
Issuance of long-term debt | 193,247 | 0 | ||
Repayments of long-term debt | (37,107) | (611) | ||
Repayment of debt by consolidated joint ventures, net | (3,100) | (3,320) | ||
Net cash received (used) to settle stock-based awards | 103 | (785) | ||
Net cash provided by (used in) financing activities | 134,616 | (193,164) | ||
Effect of exchange rate changes on cash | (368) | 3,516 | ||
Increase (decrease) in cash, cash equivalents, and restricted cash | 157,885 | (188,412) | ||
Cash, cash equivalents, and restricted cash at the beginning of the period | 126,563 | 360,469 | ||
Cash, cash equivalents, and restricted cash at the end of the period | $ 284,448 | $ 172,057 | ||
[1] | The Condensed Consolidated Statements of Income for the quarter and six months ended July 1, 2017 have been adjusted to reflect the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Income. Refer to Note 1 for further discussion. | |||
[2] | The Condensed Consolidated Statement of Cash Flows for the six months ended July 1, 2017 has been adjusted to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The Condensed Consolidated Statements of Cash Flows reflects the changes during the periods in the total of cash, cash equivalents, and restricted cash. Therefore, restricted cash activity is included with cash when reconciling the beginning-of-period and end-of-period total amounts shown. Refer to Note 1 for further discussion. |
Recent Accounting Standards
Recent Accounting Standards | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) . The ASU permits entities to reclassify tax effects stranded in AOCI as a result of tax reform to retained earnings. The guidance is effective for the Company in interim and annual periods beginning in 2019. Early adoption is permitted and can be applied retrospectively or in the period of adoption. The Company early adopted the ASU during the first quarter of 2018, which resulted in a reclassification of $556 thousand from AOCI to retained earnings during the quarter. In March 2017, the FASB issued 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 Company adopted the ASU during the first quarter of 2018 using a retrospective approach for each period presented, and elected to use the practical expedient that allows the Company to use the amounts previously presented in its Benefit Plans disclosure as the estimation basis for applying the retrospective presentation requirements. Prior to the adoption of the ASU, net periodic benefit cost (income) was reported within selling, general, and administrative expense in the Condensed Consolidated Statements of Income. The prior periods have been revised to conform to the current period presentation, resulting in the reclassification of $111 thousand and $154 thousand of net periodic benefit income from operating income to other income, net for the quarter and six months ended July 1, 2017 , respectively. 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 prospective adoption. Early adoption is permitted. The Company early adopted the ASU during the first quarter of 2018 and the adoption had no 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. The ASU requires revenue to be recognized over time (i.e., throughout the production process) rather than at a point in time (generally upon shipment to the customer) if performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. The Company generates revenue through the manufacture and sale of copper tube and fittings; line sets; brass and copper alloy rod, bar, and shapes; aluminum impact extrusions; plastic fittings and valves; refrigeration valves and fittings; fabricated tubular products; and steel nipples. The Company also resells imported brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products. Given the nature of the Company’s business and product offerings, sales transactions with customers are generally comprised of a single performance obligation that involves delivery of the products identified in the contracts with customers. Performance obligations are generally satisfied at the point in time of shipment and payment is generally due within sixty days. Variable consideration is estimated for future rebates on certain product lines and product returns. The Company records variable consideration as an adjustment to the transaction price in the period it is incurred. Since variable consideration is settled within a short period of time, the time value of money is not significant. The Company also evaluated specific contract terms, primarily within the Industrial Metals and Climate segments, related to the production of customized products and payment rights and determined that there are no significant changes to the timing or nature of revenue recognition under the ASU. As part of the overall evaluation of the standard, the Company has assessed and implemented necessary changes to its accounting policies, practices, and internal controls over financial reporting to support the standard. The Company adopted the ASU during the first quarter of 2018 using the modified retrospective method for all contracts with customers. The adoption did not result in a significant impact on opening retained earnings. Revenue for prior periods have not been adjusted and continue to be reported under Revenue Recognition (Topic 605). No significant judgments were made in the application of the guidance in ASC 606 and there were no material contract assets, contract liabilities, or deferred contract costs as of June 30, 2018 . 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 Company adopted the ASU during the first quarter of 2018 using a retrospective approach for each period presented. Prior to the adoption of the ASU, the Company presented the change in restricted cash balances separately as a cash flow from investing activity. Upon adoption, the Company included restricted cash in each of the balances of the cash, cash equivalents, and restricted cash at the beginning and end of periods in the Condensed Consolidated Statements of Cash Flows. The prior period has been revised to conform to the current period presentation, and as a result, net cash flows for the six months ended July 1, 2017 increased by $4.5 million . A reconciliation of cash, cash equivalents, and restricted cash as of June 30, 2018 and December 30, 2017 is as follows: (In thousands) June 30, December 30, Cash & cash equivalents $ 281,445 $ 120,269 Restricted cash included within other current assets 2,898 6,189 Restricted cash included within other assets 105 105 Total cash, cash equivalents, and restricted cash $ 284,448 $ 126,563 Amounts included in restricted cash relate to required deposits in brokerage accounts that facilitate the Company’s hedging activities as well as imprest funds for the Company’s self-insured workers’ compensation program. 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 Company adopted the ASU during the first quarter of 2018 and the adoption had no impact on its Condensed Consolidated Financial Statements. Issued 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 in 2019. Early adoption is permitted. Currently the guidance requires a modified retrospective adoption, but in January 2018 the FASB proposed ASU No. 2018-01, Leases (Topic 842), Land Easement Practical Expedient for Transition to Topic 842 , which if approved will allow entities to elect a simplified transition approach whereby they would apply the provisions of the new guidance at the effective date without adjusting the comparative periods presented. The Company is still evaluating the effects that the provisions of the ASU will have on its Condensed Consolidated Financial Statements. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
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 six thousand and four thousand stock-based awards were excluded from the computation of diluted earnings per share for the quarters ended June 30, 2018 and July 1, 2017 , respectively, because they were antidilutive. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 30, 2018 | |
Acquisitions and Dispositions [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisitions Die-Mold On March 31, 2018, the Company entered into a share purchase agreement pursuant to which the Company acquired all of the outstanding shares of Die-Mold Tool Limited (Die-Mold) for approximately $ 14.8 million , net of working capital adjustments. The total purchase price consisted of $12.5 million in cash at closing and a contingent consideration arrangement which requires the Company to pay the former owner up to $2.3 million based on EBITDA growth of the acquired company. Die-Mold, based out of Ontario, Canada, is a manufacturer of plastic PEX and other plumbing-related fittings and an integrated designer and manufacturer of plastic injection tooling. The business complements the Company’s existing businesses within the Piping Systems segment. The fair value of the assets acquired totaled $5.6 million , consisting primarily of property, plant, and equipment of $2.1 million , inventories of $1.9 million , and accounts receivable of $1.6 million . The fair value of the liabilities assumed totaled $0.5 million , consisting primarily of accounts payable of $0.4 million and other current liabilities of $0.1 million . Of the remaining purchase price, $9.7 million was allocated to non-deductible goodwill and intangible assets. The purchase price allocation is provisional as of June 30, 2018 and subject to change upon completion of the final valuation of the long-lived assets, working capital, and contingent consideration during the measurement period. Heatlink Group On May 31, 2017, the Company entered into a share purchase agreement pursuant to which the Company acquired all of the outstanding shares of Pexcor Manufacturing Company Inc. and Heatlink Group Inc. (collectively, Heatlink Group) for approximately $17.2 million , net of working capital adjustments. The total purchase price consisted of $16.3 million in cash at closing and a contingent consideration arrangement which requires the Company to pay the former owners up to $2.2 million based on the EBITDA growth of the acquired business. Heatlink Group, based out of Calgary, Alberta, Canada, produces and sells a complete line of products for PEX plumbing and radiant systems. The business complements the Company’s existing businesses within the Piping Systems segment. The fair value of the assets acquired totaled $9.9 million , consisting primarily of inventories of $4.6 million , accounts receivable of $2.8 million , property, plant, and equipment of $2.0 million , and other current assets of $0.5 million . The fair value of the liabilities assumed totaled $6.0 million , consisting primarily of accounts payable of $3.6 million , other current liabilities of $0.5 million , and deferred taxes of $1.9 million . Of the remaining purchase price, $13.3 million was allocated to non-deductible goodwill and intangible assets. The valuation of the business has been finalized. Changes to the purchase price allocation from the amounts presented in the Company’s 2017 Annual Report on Form 10-K included the valuation of the contingent consideration of $0.9 million and the recognition of a deferred tax liability of $1.9 million that resulted from a basis difference in the long-lived assets acquired. These changes resulted in an increase to goodwill. Disposition Mueller-Xingrong On June 21, 2017, the Company entered into a definitive equity transfer agreement with Jiangsu Xingrong Hi-Tech Co. Ltd. and Jiangsu Baiyang Industries Co. Ltd. (Baiyang), together, the minority partners in Mueller-Xingrong (the Company’s Chinese joint venture), pursuant to which the Company sold its 50.5 percent equity interest in Mueller-Xingrong to Baiyang for approximately $18.3 million . Mueller-Xingrong manufactures engineered copper tube primarily for air-conditioning applications in China and was included in the Piping Systems segment. Mueller-Xingrong reported net sales of $67.3 million and net losses of $9 thousand in 2017 . The carrying value of the assets disposed totaled $56.8 million , consisting primarily of accounts receivable, inventories, and long-lived assets. The carrying value of the liabilities disposed (consisting primarily of current debt and accounts payable), noncontrolling interest, and amounts recognized in accumulated other comprehensive income (AOCI) totaled $36.2 million . Since the disposal constituted a complete liquidation of the Company’s investment in a foreign entity, the Company removed from AOCI and recognized a cumulative translation gain of $3.8 million . As a result of the disposal, the Company recognized a net gain on the sale of this business of $1.6 million in the Condensed Consolidated Financial Statements for both the quarter and six months ended July 1, 2017 . |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
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, Great Lakes Copper, Heatlink Group, Die-Mold, European Operations, Trading Group, and Jungwoo-Mueller (the Company’s South Korean joint venture). The Domestic Piping Systems Group manufactures copper tube, 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., Great Lakes Copper manufactures copper tube and line sets in Canada and sells the products primarily in the U.S. and Canada, Heatlink Group produces a complete line of products for PEX plumbing and radiant systems in Canada and sells these products in Canada and the U.S., Die-Mold manufactures PEX and other plumbing-related fittings and plastic injection tooling in Canada and sells these products in Canada and the U.S., 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. 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, transportation, construction, heating, ventilation, and air-conditioning, plumbing, refrigeration, and energy 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 June 30, 2018 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 453,183 $ 175,891 $ 39,172 $ (5,473 ) $ 662,773 Cost of goods sold 384,821 154,401 30,688 (6,090 ) 563,820 Depreciation and amortization 5,744 1,948 627 687 9,006 Selling, general, and administrative expense 20,599 3,449 2,510 11,870 38,428 (Gain) loss on sale of assets — — — (409 ) (409 ) Operating income 42,019 16,093 5,347 (11,531 ) 51,928 Interest expense (6,073 ) Other income, net 586 Income before income taxes $ 46,441 For the Quarter Ended July 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 422,844 $ 154,504 $ 36,636 $ 282 $ 614,266 Cost of goods sold 364,261 132,972 27,449 (371 ) 524,311 Depreciation and amortization 5,591 1,904 615 485 8,595 Selling, general, and administrative expense 19,831 3,239 2,456 10,773 36,299 (Gain) loss on sale of assets (1,631 ) — — — (1,631 ) Operating income 34,792 16,389 6,116 (10,605 ) 46,692 Interest expense (6,442 ) Other income, net 342 Income before income taxes $ 40,592 Segment information (continued): For the Six Months Ended June 30, 2018 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 884,147 $ 353,223 $ 75,235 $ (9,772 ) $ 1,302,833 Cost of goods sold 757,716 303,824 57,974 (10,024 ) 1,109,490 Depreciation and amortization 11,622 3,851 1,248 1,741 18,462 Selling, general, and administrative expense 39,841 6,822 5,119 20,703 72,485 (Gain) loss on sale of assets — — — 3,060 3,060 Operating income 74,968 38,726 10,894 (25,252 ) 99,336 Interest expense (11,982 ) Other income, net 1,146 Income before income taxes $ 88,500 For the Six Months Ended July 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 821,619 $ 304,341 $ 70,915 $ (4,689 ) $ 1,192,186 Cost of goods sold 708,907 257,015 53,013 (6,197 ) 1,012,738 Depreciation and amortization 10,933 3,802 1,244 971 16,950 Selling, general, and administrative expense 38,028 6,788 4,932 22,125 71,873 (Gain) loss on sale of assets (1,631 ) — — — (1,631 ) Operating income 65,382 36,736 11,726 (21,588 ) 92,256 Interest expense (8,973 ) Other income, net 936 Income before income taxes $ 84,219 The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category: For the Quarter Ended June 30, 2018 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 379,165 $ — $ — $ 379,165 Brass rod and forgings — 135,921 — 135,921 OEM components, tube & assemblies 7,448 14,597 39,172 61,217 Valves and plumbing specialties 66,570 — — 66,570 Other — 25,373 — 25,373 453,183 175,891 39,172 668,246 Intersegment sales (5,473 ) Net sales $ 662,773 For the Quarter Ended July 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 318,433 $ — $ — $ 318,433 Brass rod and forgings — 119,783 — 119,783 OEM components, tube & assemblies 47,709 12,887 36,636 97,232 Valves and plumbing specialties 56,702 — — 56,702 Other — 21,834 — 21,834 422,844 154,504 36,636 613,984 Intersegment sales 282 Net sales $ 614,266 Disaggregation of revenue from contracts with customers (continued): For the Six Months Ended June 30, 2018 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 737,256 $ — $ — $ 737,256 Brass rod and forgings — 272,469 — 272,469 OEM components, tube & assemblies 14,510 29,664 75,235 119,409 Valves and plumbing specialties 132,381 — — 132,381 Other — 51,090 — 51,090 884,147 353,223 75,235 1,312,605 Intersegment sales (9,772 ) Net sales $ 1,302,833 For the Six Months Ended July 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 626,799 $ — $ — $ 626,799 Brass rod and forgings — 233,963 — 233,963 OEM components, tube & assemblies 79,680 26,102 70,915 176,697 Valves and plumbing specialties 115,140 — — 115,140 Other — 44,276 — 44,276 821,619 304,341 70,915 1,196,875 Intersegment sales (4,689 ) Net sales $ 1,192,186 |
Inventories
Inventories | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) June 30, December 30, Raw materials and supplies $ 75,307 $ 108,397 Work-in-process 57,472 46,158 Finished goods 169,047 180,143 Valuation reserves (7,286 ) (6,797 ) Inventories $ 294,540 $ 327,901 The decrease in inventories was primarily driven by the use of excess inventory built at the end of 2017 due to a casting outage in our brass rod mill that impaired our ability to melt scrap returns. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments 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 (economic hedge), as the Company does not enter into derivative contracts for trading purposes. 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 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 flows 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 June 30, 2018 , the Company held open futures contracts to purchase approximately $48.2 million of copper over the next 15 months related to fixed price sales orders. The fair value of those futures contracts was a $639 thousand net loss 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 June 30, 2018 , this amount was approximately $215 thousand of deferred net losses , net of tax. The Company may also enter into futures contracts to protect the value of inventory against market fluctuations. At June 30, 2018 , the Company held open futures contracts to sell approximately $0.2 million of copper over the next three months related to copper inventory. The fair value of those futures contracts was an $8 thousand net gain position, which was determined by obtaining quoted market prices (level 1 within the fair value hierarchy). 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 June 30, December 30, Balance Sheet Location June 30, December 30, Commodity contracts - gains Other current assets $ 8 $ 1,014 Other current liabilities $ 148 $ 55 Commodity contracts - losses Other current assets — (5 ) Other current liabilities (787 ) (3,210 ) Total derivatives (1) $ 8 $ 1,009 $ (639 ) $ (3,155 ) (1) Does not include the impact of cash collateral 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 For the Six Months Ended (In thousands) Location June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Fair value hedges: Gain on commodity contracts (qualifying) Cost of goods sold $ — $ — $ 391 $ — Loss on hedged item - inventory Cost of goods sold — — (385 ) — Undesignated derivatives: Gain (loss) on commodity contracts (nonqualifying) Cost of goods sold 2,301 672 8,427 (423 ) The following tables summarize amounts recognized in and reclassified from AOCI during the period: For the Quarter Ended June 30, 2018 (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 $ 52 Cost of goods sold $ 17 Other (34 ) Other — Total $ 18 Total $ 17 For the Quarter Ended July 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 $ (250 ) Cost of goods sold $ 324 Interest rate swap — Interest expense 149 Other 38 Other — Total $ (212 ) Total $ 473 For the Six Months Ended June 30, 2018 (In thousands) Loss Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (743 ) Cost of goods sold $ (275 ) Other (9 ) Other — Total $ (752 ) Total $ (275 ) For the Six Months Ended July 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 $ (813 ) Cost of goods sold $ 676 Interest rate swap — Interest expense 298 Other 156 Other — Total $ (657 ) Total $ 974 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 qualifying open hedge contracts through June 30, 2018 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 June 30, 2018 and December 30, 2017 , the Company had recorded restricted cash in other current assets of $2.1 million and $5.3 million , respectively, as collateral related to open derivative contracts under the master netting arrangements. Long-Term Debt The fair value of long-term debt at June 30, 2018 approximates the carrying value on that date. The estimated fair values were determined based on quoted market prices and the current rates offered for debt with similar terms and maturities. The fair value of long-term debt is classified as level 2 within the fair value hierarchy. This classification is defined as a fair value determined using market-based inputs other than quoted prices that are observable for the liability, either directly or indirectly. |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 6 Months Ended |
Jun. 30, 2018 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliates | Investment in Unconsolidated Affiliates Tecumseh The Company owns a 50 percent interest in an unconsolidated affiliate that acquired Tecumseh Products Company LLC (Tecumseh). The Company also owns a 50 percent interest in a second unconsolidated affiliate that provides financing to Tecumseh. 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’ income or loss, net of foreign taxes, one quarter in arrears as income (loss) from unconsolidated affiliates, net of foreign 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. The U.S. tax effect of the Company’s proportionate share of Tecumseh’s income or loss is recorded in income tax expense in the Condensed Consolidated Statements of Income. In general, the equity investment in unconsolidated affiliates is equal to the current equity investment plus the investees’ 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. (In thousands) June 30, December 30, Current assets $ 236,856 $ 246,127 Noncurrent assets 127,783 139,200 Current liabilities 172,658 174,710 Noncurrent liabilities 58,214 58,334 For the Quarter Ended For the Six Months Ended (In thousands) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Net sales $ 126,205 $ 132,600 $ 250,305 $ 258,900 Gross profit 11,749 19,600 23,849 35,200 Net income (loss) 471 (217 ) (17,860 ) (2,704 ) The Company’s loss from unconsolidated affiliates, net of foreign tax, for the quarter ended June 30, 2018 included net losses of $6.7 million , offset by a gain of $7.0 million related to a settlement with the Brazilian Federal Revenue Agency for Tecumseh. The Company’s loss from unconsolidated affiliates, net of foreign tax, for the six months ended June 30, 2018 included net losses of $12.9 million and charges of $3.0 million related to certain labor claim contingencies, offset by a gain of $7.0 million related to a settlement with the Brazilian Federal Revenue Agency for Tecumseh. Bahrain On December 30, 2015, the Company entered into a joint venture agreement with Cayan Ventures and Bahrain Mumtalakat Holding Company to build a copper tube mill in Bahrain. The business will operate and brand its products under the Mueller Industries family of brands. The Company has invested approximately $4.5 million of cash to date and will be the technical and marketing lead in return for 40 percent ownership in the joint venture. The Company’s loss from unconsolidated affiliates, net of foreign tax, for the quarter and six months ended June 30, 2018 included net losses of $0.5 million and $1.6 million , respectively, for Bahrain. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [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 For the Six Months Ended (In thousands) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Pension benefits: Service cost $ 20 $ 36 $ 44 $ 71 Interest cost 1,465 1,653 2,958 3,318 Expected return on plan assets (2,290 ) (2,186 ) (4,579 ) (4,368 ) Amortization of net loss 235 516 584 1,072 Net periodic benefit (income) cost $ (570 ) $ 19 $ (993 ) $ 93 Other benefits: Service cost $ 56 $ 53 $ 116 $ 109 Interest cost 146 146 294 295 Amortization of prior service credit (225 ) (226 ) (451 ) (451 ) Amortization of net loss (gain) 11 (15 ) 29 (20 ) Net periodic benefit income $ (12 ) $ (42 ) $ (12 ) $ (67 ) The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Income. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2018 | |
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. Environmental Non-operating Properties Southeast Kansas Sites The Kansas Department of Health and Environment (KDHE) has contacted the Company regarding environmental contamination at three former smelter sites in Kansas (Altoona, East La Harpe, and Lanyon). The Company is not a successor to the companies that operated these smelter sites, but is exploring possible settlement with KDHE and other potentially responsible parties (PRP) in order to avoid litigation. Another PRP conducted a site investigation of the Altoona site under a consent decree with KDHE and submitted a removal site evaluation report recommending a remedy. The remedial design plan, which covers both on-site and certain off-site cleanup costs, was approved by the KDHE in 2016. At the East La Harpe site, the Company and two other PRPs conducted a site study evaluation under KDHE supervision and prepared a site cleanup plan approved by KDHE. In 2016, the corporate parent of a third party that the Company understands may owe indemnification obligations to one of the other PRPs in connection with the East La Harpe site filed for protection under Chapter 11 of the U.S. Bankruptcy Code. KDHE has extended the deadline for the PRPs to develop a repository design plan to allow for wetlands permitting to take place. With respect to the Lanyon Site, in 2016, the Company received a general notice letter from the United States Environmental Protection Agency (EPA) asserting that the Company is a PRP, which the Company has denied. The Company’s reserve for its proportionate share of the remediation costs associated with the Southeast Kansas sites is $5.6 million . Shasta Area Mine Sites Mining Remedial Recovery Company (MRRC), a wholly owned subsidiary, owns certain inactive mines in Shasta County, California. MRRC has continued a program, begun in the late 1980s, of implementing various remedial measures, including sealing mine portals with concrete plugs in portals that were discharging water. The sealing program achieved significant reductions in the metal load in discharges from these adits; however, additional reductions are required pursuant to an order issued by the California Regional Water Quality Control Board (QCB). In response to a 1996 QCB Order, MRRC completed a feasibility study in 1997 describing measures designed to mitigate the effects of acid rock drainage. In December 1998, the QCB modified the 1996 order extending MRRC’s time to comply with water quality standards. In September 2002, the QCB adopted a new order requiring MRRC to adopt Best Management Practices (BMP) to control discharges of acid mine drainage, and again extended the time to comply with water quality standards until September 2007. During that time, implementation of BMP further reduced impacts of acid rock drainage; however, full compliance has not been achieved. The QCB is presently renewing MRRC’s discharge permit and will concurrently issue a new order. It is expected that the new 10 -year permit will include an order requiring continued implementation of BMP through 2025 to address residual discharges of acid rock drainage. The Company currently estimates that it will spend between approximately $12.8 million and $17.6 million for remediation at these sites over the next 30 years. Lead Refinery Site U.S.S. Lead Refinery, Inc. (Lead Refinery), a non-operating wholly owned subsidiary of MRRC, has conducted corrective action and interim remedial activities (collectively, Site Activities) at Lead Refinery’s East Chicago, Indiana site pursuant to the Resource Conservation and Recovery Act since December 1996. Although the Site Activities have been substantially concluded, Lead Refinery is required to perform monitoring and maintenance-related activities pursuant to a post-closure permit issued by the Indiana Department of Environmental Management effective as of March 2, 2013. Approximate costs to comply with the post-closure permit, including associated general and administrative costs, are estimated at between $1.8 million and $3.0 million over the next 19 years. On April 9, 2009, pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the U.S. Environmental Protection Agency (EPA) added the Lead Refinery site and surrounding properties to the National Priorities List (NPL). On July 17, 2009, Lead Refinery received a written notice from the EPA indicating that it may be a PRP under CERCLA due to the release or threat of release of hazardous substances including lead into properties surrounding the Lead Refinery NPL site. The EPA identified two other PRPs in connection with that matter. In November 2012, the EPA adopted a remedy for the surrounding properties and in September 2014, the EPA announced that it had entered into a settlement with the two other PRPs whereby they will pay approximately $26.0 million to fund the cleanup of approximately 300 properties surrounding the Lead Refinery NPL site (zones 1 and 3 of operable unit 1) and perform certain remedial action tasks. On November 8, 2016, the Company, its subsidiary Arava Natural Resources Company, Inc. (Arava), and Arava’s subsidiary MRRC each received general notice letters from the EPA asserting that they may be PRPs in connection with the Lead Refinery NPL site. The Company, Arava, and MRRC have denied liability for any remedial action and response costs associated with the Lead Refinery NPL site. In June 2017, the EPA requested that Lead Refinery conduct, and the Company fund, a remedial investigation and feasibility study of operable unit 2 of the Lead Refinery NPL site pursuant to a proposed administrative settlement agreement and order on consent. The Company and Lead Refinery entered into that agreement in September 2017. The Company has made a capital contribution to Lead Refinery to conduct the remedial investigation and feasibility study with respect to operable unit 2 and has provided financial assurance in the amount of $1.0 million . The EPA has also asserted its position that Mueller is a responsible party for the Lead Refinery NPL site, and accordingly is responsible for a share of remedial action and response costs at the site and in the adjacent residential area. In January 2018, the EPA issued two unilateral administrative orders (UAOs) directing the Company, Lead Refinery, and four other PRPs to conduct soil and interior remediation of certain residences at the Lead Refinery NPL site (zones 2 and 3 of operable unit 1). The Company and Lead Refinery have reached agreement with the four other PRPs to implement these two UAOs, with the Company agreeing to pay, on an interim basis, (i) an estimated $4.5 million (subject to potential change through a future reallocation process) of the approximately $25.0 million the PRPs currently estimate it will cost to implement the UAOs, which estimate is subject to change, and (ii) $2.0 million relating to past costs incurred by other PRPs for work conducted at the site. These amounts are included in the Company’s reserve for environmental liabilities as of December 30, 2017. The Company disputes that it was properly named in the UAOs, and has reserved its rights to petition the EPA for reimbursement of any costs incurred to comply with the UAOs upon the completion of the work required therein. In October 2017, a group of private plaintiffs sued the Company, Arava, MRRC, and Lead Refinery, along with other defendants, in a private tort action relating to the site; the Company, Arava, and MRRC were voluntarily dismissed from that litigation without prejudice in March 2018. At this juncture, the Company is unable to determine the likelihood of a material adverse outcome or the amount or range of a potential loss in excess of the current reserve with respect to any remedial action or litigation relating to the Lead Refinery NPL site, either at Lead Refinery’s former operating site (operable unit 2) or the adjacent residential area (operable unit 1). Bonita Peak Mining District Following an August 2015 spill from the Gold King Mine into the Animas River near Silverton, Colorado, the EPA listed the Bonita Peak Mining District on the NPL. Said listing was finalized in September 2016. The Bonita Peak Mining District encompasses 48 mining sites within the Animas River watershed, including the Sunnyside Mine, the American Tunnel, and the Sunbank Group. On or about July 25, 2017, Washington Mining Company (Washington Mining) (a wholly-owned subsidiary of the Company’s wholly-owned subsidiary, Arava), received a general notice letter from the EPA stating that Washington Mining may be a PRP under CERCLA in connection with the Bonita Peak Mining District site and therefore responsible for the remediation of certain portions of the site, along with related costs incurred by the EPA. Shortly thereafter, the Company received a substantively identical letter asserting that it may be a PRP at the Site and similarly responsible for the cleanup of certain portions of the site. The general notice letters identify one other PRP at the site, and do not require specific action by Washington Mining or the Company at this time. At this juncture, the Company is unable to determine the likelihood of a materially adverse outcome or the amount or range of a potential loss with respect to any remedial action related to the Bonita Peak Mining District NPL site. Operating Properties Mueller Copper Tube Products, Inc. In 1999, Mueller Copper Tube Products, Inc. (MCTP), a wholly owned subsidiary, commenced a cleanup and remediation of soil and groundwater at its Wynne, Arkansas plant to remove trichloroethylene, a cleaning solvent formerly used by MCTP. On August 30, 2000, MCTP received approval of its Final Comprehensive Investigation Report and Storm Water Drainage Investigation Report addressing the treatment of soils and groundwater from the Arkansas Department of Environmental Quality (ADEQ). The Company established a reserve for this project in connection with the acquisition of MCTP in 1998. Effective November 17, 2008, MCTP entered into a Settlement Agreement and Administrative Order by Consent to submit a Supplemental Investigation Work Plan (SIWP) and subsequent Final Remediation Work Plan (RWP) for the site. By letter dated January 20, 2010, ADEQ approved the SIWP as submitted, with changes acceptable to the Company. On December 16, 2011, MCTP entered into an amended Administrative Order by Consent to prepare and implement a revised RWP regarding final remediation for the Site. The remediation system was activated in February 2014. Costs to implement the work plans, including associated general and administrative costs, are estimated to approximate $0.8 million to $1.2 million over the next eight years. United States Department of Commerce Antidumping Review On December 24, 2008, the Department of Commerce (DOC) initiated an antidumping administrative review of the antidumping duty order covering circular welded non-alloy steel pipe and tube from Mexico for the November 1, 2007 through October 31, 2008 period of review. The DOC selected Mueller Comercial as a respondent in the review. On April 19, 2010, the DOC published the final results of the review and assigned Mueller Comercial an antidumping duty rate of 48.33 percent . On May 25, 2010, the Company appealed the final results to the U.S. Court of International Trade (CIT). On December 16, 2011, the CIT issued a decision remanding the Department’s final results. While the matter was still pending, the Company and the United States reached an agreement to settle the appeal. Subject to the conditions of the agreement, the Company anticipated that certain of its subsidiaries would incur antidumping duties on subject imports made during the period of review and, as such, established a reserve for this matter. After the lapse of the statutory period of time during which U.S. Customs and Border Protection (CBP) was required, but failed, to liquidate the entries at the settled rate, the Company released the reserve. Between October 30, 2015 and November 27, 2015, CBP sent a series of invoices to Southland Pipe Nipples Co., Inc. (Southland), requesting payment of approximately $3.0 million in duties and interest in connection with 795 import entries made during the November 1, 2007 through October 31, 2008 period. On January 26, 2016 and January 27, 2016, Southland filed protests with CBP in connection with these invoices, noting that CBP’s asserted claims were not made in accordance with applicable law, including statutory provisions governing deemed liquidation. The Company believes in the merits of the legal objections raised in Southland’s protests, and CBP’s response to Southland’s protests is currently pending. Given the procedural posture and issues raised by this legal dispute, the Company cannot estimate the amount of potential duty liability, if any, that may result from CBP’s asserted claims. 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 alleged that between May 2011 and April 2015, various Company employees were terminated in violation of the Americans with Disabilities Act (ADA), and that certain of the Company’s employee leave and attendance policies were discriminatory in nature. Thereafter, the Company, in consultation with its liability insurers, entered into conciliation and mediation efforts with the EEOC for purposes of resolving the claims. At the conclusion of those efforts, the Company and the EEOC reached agreement on a consensual resolution of the EEOC’s claims, which includes both monetary and equitable relief. On June 28, 2018, the EEOC filed a complaint against the Company on behalf of a group of unidentified claimants in the United States District Court for the Central District of California alleging that the Company engaged in unlawful employment practices in violation of the ADA. On July 13, 2018, the District Court approved a Consent Decree between the Company and the EEOC to resolve the EEOC’s claims. The Consent Decree, the term of which shall be two and a half years, provides that the Company shall pay up to $1.0 million in monetary relief to fund individual claims for discrimination under the ADA as approved by the EEOC. That amount is fully within the limits of the Company’s applicable insurance coverage. Pursuant to the Consent Decree, the Company shall also take a series of proactive measures to cultivate a work environment free from unlawful discrimination. Those measures include, among others, assistance with the identification of potential claimants, employee, supervisory and managerial training regarding employee rights under the ADA, revised practices and procedures concerning reasonable workplace accommodations as required by the ADA, and related reporting and recordkeeping. 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 June 30, 2018 were $8.7 million . |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the second quarter of 2018 was 27 percent compared with 31 percent for the same period last year. The items impacting the effective tax rate for the second quarter of 2018 were primarily attributable to the provision for state income taxes, net of the federal benefit, of $1.4 million and miscellaneous items totaling $1.3 million . The Company’s effective tax rate for the second quarter of 2017 was 31 percent . The items impacting the effective tax rate for the second quarter of 2017 were primarily attributable to reductions for the U.S. production activities deduction of $0.9 million and the effect of foreign tax rates lower than statutory tax rates of $1.6 million . These items were partially offset by the provision for state income taxes, net of the federal benefit, of $0.8 million and miscellaneous items totaling $0.2 million . The Company’s effective tax rate for the first half of 2018 was 22 percent compared with 29 percent for the same period last year. The difference between the Company’s effective tax rate and the current U.S. statutory rate of 21 percent is primarily related to the reduction for the impact of investments in unconsolidated affiliates of $3.7 million . This was offset by the provision for state income taxes, net of the federal benefit, of $2.6 million , the inclusion for global intangible low-taxed income of $1.0 million , and miscellaneous items totaling $1.2 million . The Company records the U.S. tax effects of its investment in Tecumseh, an unconsolidated affiliate, in income tax expense in the Condensed Consolidated Statements of Income. The Company’s effective tax rate for the first half of 2017 was 29 percent as compared with the U.S. statutory rate of 35 percent . The items impacting the effective tax rate for the first half of 2017 were primarily attributable to reductions for the U.S. production activities deduction of $1.8 million , the effect of foreign tax rates lower than statutory tax rates of $3.0 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 $1.7 million and miscellaneous items totaling $0.7 million . The Tax Cuts and Jobs Act (the Act) was enacted on December 22, 2017. The Act reduces the U.S. federal corporate income tax rate from 35 percent to 21 percent, requires companies to pay a one-time transition tax on the accumulated earnings of certain foreign subsidiaries, and creates new taxes on certain foreign-sourced earnings. The Company is applying the guidance in SAB 118 in accounting for the enactment date effects of the Act. At December 30, 2017, the Company made a reasonable estimate of the one-time transition tax on accumulated foreign earnings as well as the impact of the Act on its existing deferred tax balances. As discussed below, the Company has not completed its accounting for the tax effects of the Act as of June 30, 2018 . The one-time transition tax is based on the Company’s total post-1986 earnings and profits (E&P) for which the accrual of U.S. income taxes had previously been deferred. The Company recorded a provisional amount for its one-time transition tax liability of $12.9 million at December 30, 2017, and has not adjusted this amount as of June 30, 2018. The Company has not yet completed its calculation of the total post-1986 foreign E&P for these foreign subsidiaries. Further, the transition tax is impacted in part by the amount of those earnings held in cash and other specified assets. Accordingly, the Company’s estimate of the one-time transition tax may change when it finalizes the calculation of post-1986 foreign E&P previously deferred from U.S. federal taxation and finalizes the amounts held in cash or other specified assets. At December 30, 2017, the Company remeasured certain deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21 percent. A provisional tax benefit of $12.1 million was recorded, and no adjustment was recorded to this estimate in the current quarter. The Company is still analyzing certain aspects of the Act and refining its calculations, which could potentially affect the measurement of these balances. The global intangible low-taxed income (GILTI) provisions of the Act impose a tax on the GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred. Given the complexity of the GILTI provisions, the Company is still evaluating the effects of these provisions and has not yet determined the new accounting policy. At June 30, 2018 , because the Company is still assessing the GILTI provisions and future income subject to the GILTI provisions, it has included an estimate of the tax on GILTI related to current-year operations in the forecasted effective tax rate and has not provided additional GILTI on deferred items. 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 2014 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 (Loss) | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) AOCI includes certain foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges, adjustments to pension and OPEB liabilities, unrealized gains and losses on marketable securities classified as available-for-sale, and other comprehensive income attributable to unconsolidated affiliates. The following table provides changes in AOCI by component, net of taxes and noncontrolling interests (amounts in parentheses indicate debits to AOCI): For the Six Months Ended June 30, 2018 (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Derivatives Pension/OPEB Liability Adjustment Unrealized Gain on Equity Securities Attributable to Unconsol. Affiliates Total Balance as of December 30, 2017 $ (38,163 ) $ 847 $ (20,610 ) $ — $ 6,870 $ (51,056 ) Other comprehensive (loss) income before reclassifications (6,793 ) (752 ) 353 — (280 ) (7,472 ) Amounts reclassified from AOCI — (275 ) 146 — — (129 ) Net current-period other comprehensive (loss) income (6,793 ) (1,027 ) 499 — (280 ) (7,601 ) Reclassification of stranded effects of the Act — 112 (1,018 ) — 1,462 556 Balance as of June 30, 2018 $ (44,956 ) $ (68 ) $ (21,129 ) $ — $ 8,052 $ (58,101 ) For the Six Months Ended July 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 11,058 (657 ) (856 ) (1 ) (351 ) 9,193 Amounts reclassified from AOCI (3,777 ) 974 491 (379 ) — (2,691 ) Net current-period other comprehensive income (loss) 7,281 317 (365 ) (380 ) (351 ) 6,502 Balance as of July 1, 2017 $ (42,684 ) $ 17 $ (23,411 ) $ — $ 5,624 $ (60,454 ) Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended For the Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Affected line item Unrealized losses (gains) on derivatives: Commodity contracts $ 19 $ 602 $ (346 ) $ 1,024 Cost of goods sold Interest rate swap — 232 — 464 Interest expense (2 ) (361 ) 71 (514 ) Income tax (benefit) expense $ 17 $ 473 $ (275 ) $ 974 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 21 $ 275 $ 162 $ 601 Other income, net 6 (46 ) (16 ) (110 ) Income tax expense (benefit) $ 27 $ 229 $ 146 $ 491 Net of tax and noncontrolling interests Sale of available-for-sale securities $ — $ (357 ) $ — $ (611 ) Other income, net $ — $ 138 $ — $ 232 Income tax expense $ — $ (219 ) $ — $ (379 ) Net of tax and noncontrolling interests Gain recognized upon sale of business $ — $ (3,777 ) $ — $ (3,777 ) Selling, general, and administrative expense $ — $ — $ — $ — Income tax expense $ — $ (3,777 ) $ — $ (3,777 ) Net of tax and noncontrolling interests |
Noncontrolling Interests
Noncontrolling Interests | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Noncontrolling Interests | Noncontrolling Interests (In thousands) Noncontrolling Interests Balance as of December 30, 2017 $ 13,917 Dividends paid to noncontrolling interests (592 ) Net income attributable to noncontrolling interests 916 Other comprehensive income attributable to noncontrolling interests, net of tax: Foreign currency translation 147 Balance as of June 30, 2018 $ 14,388 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 2, 2018, the Company entered into a stock purchase agreement pursuant to which the Company acquired all of the outstanding capital stock of ATCO Rubber Products, Inc. (ATCO) for approximately $157.7 million in cash, net of working capital adjustments. The transaction also included a contingent consideration arrangement which requires the Company to pay the former owner up to $12.0 million based on EBITDA growth of the acquired company. ATCO is an industry leader in the manufacturing and distribution of insulated HVAC flexible duct systems and will support the Company’s strategy to grow its Climate Products businesses to become a more valuable resource to its HVAC customers. The acquired business will be reported in the Company’s Climate segment. The historical carrying value of the assets acquired totaled $107.2 million , consisting primarily of property, plant, and equipment of $52.1 million , inventories of $32.4 million , accounts receivable of $21.9 million , other current assets of $0.6 million , and other assets of $0.2 million . The historical carrying value of the liabilities assumed totaled $18.1 million , consisting primarily of accounts payable of $8.1 million , other current liabilities of $7.4 million , and other liabilities of $2.6 million . The Company will adjust these assets and liabilities to their fair value as of the closing date in accordance with Accounting Standards Codification 805, Business Combinations . ATCO had revenues of approximately $166.0 million in its fiscal year ending December 31, 2017. The Company’s Credit Agreement provides for an unsecured $350.0 million revolving credit facility which matures on December 6, 2021. Total borrowings under the Credit Agreement were $315.0 million as of June 30, 2018 , which included $150.0 million borrowed on June 29, 2018 to fund the ATCO acquisition. On July 6, 2018 and July 16, 2018, the Company made payments of $50.0 million and $25.0 million , respectively, to reduce the debt outstanding under its Credit Agreement. |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Issued Accounting Standards | Adopted In February 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-02, Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (AOCI) . The ASU permits entities to reclassify tax effects stranded in AOCI as a result of tax reform to retained earnings. The guidance is effective for the Company in interim and annual periods beginning in 2019. Early adoption is permitted and can be applied retrospectively or in the period of adoption. The Company early adopted the ASU during the first quarter of 2018, which resulted in a reclassification of $556 thousand from AOCI to retained earnings during the quarter. In March 2017, the FASB issued 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 Company adopted the ASU during the first quarter of 2018 using a retrospective approach for each period presented, and elected to use the practical expedient that allows the Company to use the amounts previously presented in its Benefit Plans disclosure as the estimation basis for applying the retrospective presentation requirements. Prior to the adoption of the ASU, net periodic benefit cost (income) was reported within selling, general, and administrative expense in the Condensed Consolidated Statements of Income. The prior periods have been revised to conform to the current period presentation, resulting in the reclassification of $111 thousand and $154 thousand of net periodic benefit income from operating income to other income, net for the quarter and six months ended July 1, 2017 , respectively. 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 prospective adoption. Early adoption is permitted. The Company early adopted the ASU during the first quarter of 2018 and the adoption had no 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. The ASU requires revenue to be recognized over time (i.e., throughout the production process) rather than at a point in time (generally upon shipment to the customer) if performance does not create an asset with an alternative use to the entity and the entity has an enforceable right to payment for performance completed to date. The Company generates revenue through the manufacture and sale of copper tube and fittings; line sets; brass and copper alloy rod, bar, and shapes; aluminum impact extrusions; plastic fittings and valves; refrigeration valves and fittings; fabricated tubular products; and steel nipples. The Company also resells imported brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products. Given the nature of the Company’s business and product offerings, sales transactions with customers are generally comprised of a single performance obligation that involves delivery of the products identified in the contracts with customers. Performance obligations are generally satisfied at the point in time of shipment and payment is generally due within sixty days. Variable consideration is estimated for future rebates on certain product lines and product returns. The Company records variable consideration as an adjustment to the transaction price in the period it is incurred. Since variable consideration is settled within a short period of time, the time value of money is not significant. The Company also evaluated specific contract terms, primarily within the Industrial Metals and Climate segments, related to the production of customized products and payment rights and determined that there are no significant changes to the timing or nature of revenue recognition under the ASU. As part of the overall evaluation of the standard, the Company has assessed and implemented necessary changes to its accounting policies, practices, and internal controls over financial reporting to support the standard. The Company adopted the ASU during the first quarter of 2018 using the modified retrospective method for all contracts with customers. The adoption did not result in a significant impact on opening retained earnings. Revenue for prior periods have not been adjusted and continue to be reported under Revenue Recognition (Topic 605). No significant judgments were made in the application of the guidance in ASC 606 and there were no material contract assets, contract liabilities, or deferred contract costs as of June 30, 2018 . 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 Company adopted the ASU during the first quarter of 2018 using a retrospective approach for each period presented. Prior to the adoption of the ASU, the Company presented the change in restricted cash balances separately as a cash flow from investing activity. Upon adoption, the Company included restricted cash in each of the balances of the cash, cash equivalents, and restricted cash at the beginning and end of periods in the Condensed Consolidated Statements of Cash Flows. The prior period has been revised to conform to the current period presentation, and as a result, net cash flows for the six months ended July 1, 2017 increased by $4.5 million . A reconciliation of cash, cash equivalents, and restricted cash as of June 30, 2018 and December 30, 2017 is as follows: (In thousands) June 30, December 30, Cash & cash equivalents $ 281,445 $ 120,269 Restricted cash included within other current assets 2,898 6,189 Restricted cash included within other assets 105 105 Total cash, cash equivalents, and restricted cash $ 284,448 $ 126,563 Amounts included in restricted cash relate to required deposits in brokerage accounts that facilitate the Company’s hedging activities as well as imprest funds for the Company’s self-insured workers’ compensation program. 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 Company adopted the ASU during the first quarter of 2018 and the adoption had no impact on its Condensed Consolidated Financial Statements. Issued 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 in 2019. Early adoption is permitted. Currently the guidance requires a modified retrospective adoption, but in January 2018 the FASB proposed ASU No. 2018-01, Leases (Topic 842), Land Easement Practical Expedient for Transition to Topic 842 , which if approved will allow entities to elect a simplified transition approach whereby they would apply the provisions of the new guidance at the effective date without adjusting the comparative periods presented. The Company is still evaluating the effects that the provisions of the ASU will have on its Condensed Consolidated Financial Statements. |
Recent Accounting Standards (Ta
Recent Accounting Standards (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Cash, Cash Equivalents and Restricted Cash | A reconciliation of cash, cash equivalents, and restricted cash as of June 30, 2018 and December 30, 2017 is as follows: (In thousands) June 30, December 30, Cash & cash equivalents $ 281,445 $ 120,269 Restricted cash included within other current assets 2,898 6,189 Restricted cash included within other assets 105 105 Total cash, cash equivalents, and restricted cash $ 284,448 $ 126,563 |
Schedule of Cash, Cash Equivalents and Restricted Cash | A reconciliation of cash, cash equivalents, and restricted cash as of June 30, 2018 and December 30, 2017 is as follows: (In thousands) June 30, December 30, Cash & cash equivalents $ 281,445 $ 120,269 Restricted cash included within other current assets 2,898 6,189 Restricted cash included within other assets 105 105 Total cash, cash equivalents, and restricted cash $ 284,448 $ 126,563 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Summarized segment information is as follows: For the Quarter Ended June 30, 2018 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 453,183 $ 175,891 $ 39,172 $ (5,473 ) $ 662,773 Cost of goods sold 384,821 154,401 30,688 (6,090 ) 563,820 Depreciation and amortization 5,744 1,948 627 687 9,006 Selling, general, and administrative expense 20,599 3,449 2,510 11,870 38,428 (Gain) loss on sale of assets — — — (409 ) (409 ) Operating income 42,019 16,093 5,347 (11,531 ) 51,928 Interest expense (6,073 ) Other income, net 586 Income before income taxes $ 46,441 For the Quarter Ended July 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 422,844 $ 154,504 $ 36,636 $ 282 $ 614,266 Cost of goods sold 364,261 132,972 27,449 (371 ) 524,311 Depreciation and amortization 5,591 1,904 615 485 8,595 Selling, general, and administrative expense 19,831 3,239 2,456 10,773 36,299 (Gain) loss on sale of assets (1,631 ) — — — (1,631 ) Operating income 34,792 16,389 6,116 (10,605 ) 46,692 Interest expense (6,442 ) Other income, net 342 Income before income taxes $ 40,592 Segment information (continued): For the Six Months Ended June 30, 2018 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 884,147 $ 353,223 $ 75,235 $ (9,772 ) $ 1,302,833 Cost of goods sold 757,716 303,824 57,974 (10,024 ) 1,109,490 Depreciation and amortization 11,622 3,851 1,248 1,741 18,462 Selling, general, and administrative expense 39,841 6,822 5,119 20,703 72,485 (Gain) loss on sale of assets — — — 3,060 3,060 Operating income 74,968 38,726 10,894 (25,252 ) 99,336 Interest expense (11,982 ) Other income, net 1,146 Income before income taxes $ 88,500 For the Six Months Ended July 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 821,619 $ 304,341 $ 70,915 $ (4,689 ) $ 1,192,186 Cost of goods sold 708,907 257,015 53,013 (6,197 ) 1,012,738 Depreciation and amortization 10,933 3,802 1,244 971 16,950 Selling, general, and administrative expense 38,028 6,788 4,932 22,125 71,873 (Gain) loss on sale of assets (1,631 ) — — — (1,631 ) Operating income 65,382 36,736 11,726 (21,588 ) 92,256 Interest expense (8,973 ) Other income, net 936 Income before income taxes $ 84,219 |
Disaggregation of Revenue From Contracts with Customers | The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category: For the Quarter Ended June 30, 2018 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 379,165 $ — $ — $ 379,165 Brass rod and forgings — 135,921 — 135,921 OEM components, tube & assemblies 7,448 14,597 39,172 61,217 Valves and plumbing specialties 66,570 — — 66,570 Other — 25,373 — 25,373 453,183 175,891 39,172 668,246 Intersegment sales (5,473 ) Net sales $ 662,773 For the Quarter Ended July 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 318,433 $ — $ — $ 318,433 Brass rod and forgings — 119,783 — 119,783 OEM components, tube & assemblies 47,709 12,887 36,636 97,232 Valves and plumbing specialties 56,702 — — 56,702 Other — 21,834 — 21,834 422,844 154,504 36,636 613,984 Intersegment sales 282 Net sales $ 614,266 Disaggregation of revenue from contracts with customers (continued): For the Six Months Ended June 30, 2018 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 737,256 $ — $ — $ 737,256 Brass rod and forgings — 272,469 — 272,469 OEM components, tube & assemblies 14,510 29,664 75,235 119,409 Valves and plumbing specialties 132,381 — — 132,381 Other — 51,090 — 51,090 884,147 353,223 75,235 1,312,605 Intersegment sales (9,772 ) Net sales $ 1,302,833 For the Six Months Ended July 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 626,799 $ — $ — $ 626,799 Brass rod and forgings — 233,963 — 233,963 OEM components, tube & assemblies 79,680 26,102 70,915 176,697 Valves and plumbing specialties 115,140 — — 115,140 Other — 44,276 — 44,276 821,619 304,341 70,915 1,196,875 Intersegment sales (4,689 ) Net sales $ 1,192,186 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | (In thousands) June 30, December 30, Raw materials and supplies $ 75,307 $ 108,397 Work-in-process 57,472 46,158 Finished goods 169,047 180,143 Valuation reserves (7,286 ) (6,797 ) Inventories $ 294,540 $ 327,901 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 June 30, December 30, Balance Sheet Location June 30, December 30, Commodity contracts - gains Other current assets $ 8 $ 1,014 Other current liabilities $ 148 $ 55 Commodity contracts - losses Other current assets — (5 ) Other current liabilities (787 ) (3,210 ) Total derivatives (1) $ 8 $ 1,009 $ (639 ) $ (3,155 ) (1) Does not include the impact of cash collateral provided to counterparties. |
Schedule of Fair Value Hedges | The following tables summarize the effects of derivative instruments on the Company’s Condensed Consolidated Statements of Income: For the Quarter Ended For the Six Months Ended (In thousands) Location June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Fair value hedges: Gain on commodity contracts (qualifying) Cost of goods sold $ — $ — $ 391 $ — Loss on hedged item - inventory Cost of goods sold — — (385 ) — Undesignated derivatives: Gain (loss) on commodity contracts (nonqualifying) Cost of goods sold 2,301 672 8,427 (423 ) |
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 June 30, 2018 (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 $ 52 Cost of goods sold $ 17 Other (34 ) Other — Total $ 18 Total $ 17 For the Quarter Ended July 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 $ (250 ) Cost of goods sold $ 324 Interest rate swap — Interest expense 149 Other 38 Other — Total $ (212 ) Total $ 473 For the Six Months Ended June 30, 2018 (In thousands) Loss Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (743 ) Cost of goods sold $ (275 ) Other (9 ) Other — Total $ (752 ) Total $ (275 ) For the Six Months Ended July 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 $ (813 ) Cost of goods sold $ 676 Interest rate swap — Interest expense 298 Other 156 Other — Total $ (657 ) Total $ 974 |
Investment in Unconsolidated 26
Investment in Unconsolidated Affiliates (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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. (In thousands) June 30, December 30, Current assets $ 236,856 $ 246,127 Noncurrent assets 127,783 139,200 Current liabilities 172,658 174,710 Noncurrent liabilities 58,214 58,334 For the Quarter Ended For the Six Months Ended (In thousands) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Net sales $ 126,205 $ 132,600 $ 250,305 $ 258,900 Gross profit 11,749 19,600 23,849 35,200 Net income (loss) 471 (217 ) (17,860 ) (2,704 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Retirement Benefits [Abstract] | |
Components of Net Periodic Benefit Cost (Income) | The components of net periodic benefit cost (income) are as follows: For the Quarter Ended For the Six Months Ended (In thousands) June 30, 2018 July 1, 2017 June 30, 2018 July 1, 2017 Pension benefits: Service cost $ 20 $ 36 $ 44 $ 71 Interest cost 1,465 1,653 2,958 3,318 Expected return on plan assets (2,290 ) (2,186 ) (4,579 ) (4,368 ) Amortization of net loss 235 516 584 1,072 Net periodic benefit (income) cost $ (570 ) $ 19 $ (993 ) $ 93 Other benefits: Service cost $ 56 $ 53 $ 116 $ 109 Interest cost 146 146 294 295 Amortization of prior service credit (225 ) (226 ) (451 ) (451 ) Amortization of net loss (gain) 11 (15 ) 29 (20 ) Net periodic benefit income $ (12 ) $ (42 ) $ (12 ) $ (67 ) |
Accumulated Other Comprehensi28
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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 Six Months Ended June 30, 2018 (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Derivatives Pension/OPEB Liability Adjustment Unrealized Gain on Equity Securities Attributable to Unconsol. Affiliates Total Balance as of December 30, 2017 $ (38,163 ) $ 847 $ (20,610 ) $ — $ 6,870 $ (51,056 ) Other comprehensive (loss) income before reclassifications (6,793 ) (752 ) 353 — (280 ) (7,472 ) Amounts reclassified from AOCI — (275 ) 146 — — (129 ) Net current-period other comprehensive (loss) income (6,793 ) (1,027 ) 499 — (280 ) (7,601 ) Reclassification of stranded effects of the Act — 112 (1,018 ) — 1,462 556 Balance as of June 30, 2018 $ (44,956 ) $ (68 ) $ (21,129 ) $ — $ 8,052 $ (58,101 ) For the Six Months Ended July 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 11,058 (657 ) (856 ) (1 ) (351 ) 9,193 Amounts reclassified from AOCI (3,777 ) 974 491 (379 ) — (2,691 ) Net current-period other comprehensive income (loss) 7,281 317 (365 ) (380 ) (351 ) 6,502 Balance as of July 1, 2017 $ (42,684 ) $ 17 $ (23,411 ) $ — $ 5,624 $ (60,454 ) |
Reclassification Adjustments Out of AOCI | Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended For the Six Months Ended (In thousands) June 30, July 1, June 30, July 1, Affected line item Unrealized losses (gains) on derivatives: Commodity contracts $ 19 $ 602 $ (346 ) $ 1,024 Cost of goods sold Interest rate swap — 232 — 464 Interest expense (2 ) (361 ) 71 (514 ) Income tax (benefit) expense $ 17 $ 473 $ (275 ) $ 974 Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 21 $ 275 $ 162 $ 601 Other income, net 6 (46 ) (16 ) (110 ) Income tax expense (benefit) $ 27 $ 229 $ 146 $ 491 Net of tax and noncontrolling interests Sale of available-for-sale securities $ — $ (357 ) $ — $ (611 ) Other income, net $ — $ 138 $ — $ 232 Income tax expense $ — $ (219 ) $ — $ (379 ) Net of tax and noncontrolling interests Gain recognized upon sale of business $ — $ (3,777 ) $ — $ (3,777 ) Selling, general, and administrative expense $ — $ — $ — $ — Income tax expense $ — $ (3,777 ) $ — $ (3,777 ) Net of tax and noncontrolling interests |
Noncontrolling Interests (Table
Noncontrolling Interests (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Noncontrolling Interest [Abstract] | |
Schedule of Noncontrolling Interests | (In thousands) Noncontrolling Interests Balance as of December 30, 2017 $ 13,917 Dividends paid to noncontrolling interests (592 ) Net income attributable to noncontrolling interests 916 Other comprehensive income attributable to noncontrolling interests, net of tax: Foreign currency translation 147 Balance as of June 30, 2018 $ 14,388 |
Recent Accounting Standards - A
Recent Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification of stranded effects of the Act | $ 556 | ||||
Increase in cash flows | $ 157,885 | $ (188,412) | [1] | ||
ASU 2016-18 [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Increase in cash flows | 4,500 | ||||
Operating Income [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification of net periodic benefit income | $ 111 | 154 | |||
Other Income [Member] | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification of net periodic benefit income | $ (111) | $ (154) | |||
[1] | The Condensed Consolidated Statement of Cash Flows for the six months ended July 1, 2017 has been adjusted to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The Condensed Consolidated Statements of Cash Flows reflects the changes during the periods in the total of cash, cash equivalents, and restricted cash. Therefore, restricted cash activity is included with cash when reconciling the beginning-of-period and end-of-period total amounts shown. Refer to Note 1 for further discussion. |
Recent Accounting Standards - R
Recent Accounting Standards - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 | Jul. 01, 2017 | [1] | Dec. 31, 2016 | [1] |
Accounting Changes and Error Corrections [Abstract] | ||||||
Cash & cash equivalents | $ 281,445 | $ 120,269 | ||||
Restricted cash included within other current assets | 2,898 | 6,189 | ||||
Restricted cash included within other assets | 105 | 105 | ||||
Total cash, cash equivalents, and restricted cash | $ 284,448 | $ 126,563 | $ 172,057 | $ 360,469 | ||
[1] | The Condensed Consolidated Statement of Cash Flows for the six months ended July 1, 2017 has been adjusted to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The Condensed Consolidated Statements of Cash Flows reflects the changes during the periods in the total of cash, cash equivalents, and restricted cash. Therefore, restricted cash activity is included with cash when reconciling the beginning-of-period and end-of-period total amounts shown. Refer to Note 1 for further discussion. |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - shares shares in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Earnings Per Share [Abstract] | ||
Stock-based awards excluded from the computation of diluted earnings per share (in shares) | 6 | 4 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Acquisitions (Details) - USD ($) $ in Millions | Mar. 31, 2018 | May 31, 2017 |
Die-Mold [Member] | ||
Business Acquisition [Line Items] | ||
Consideration transferred net of working capital adjustments | $ 14.8 | |
Cash portion of acquisition price | 12.5 | |
Maximum possible contingent consideration | 2.3 | |
Fair value of assets acquired | 5.6 | |
Fair value of property, plant and equipment acquired | 2.1 | |
Fair value of inventories acquired | 1.9 | |
Fair value of accounts receivable acquired | 1.6 | |
Fair value of liabilities acquired | 0.5 | |
Fair value of accounts payable acquired | 0.4 | |
Fair value of other current liabilities acquired | 0.1 | |
Allocation to non-deductible goodwill and intangible assets | $ 9.7 | |
Pexcor/Heatlink [Member] | ||
Business Acquisition [Line Items] | ||
Consideration transferred net of working capital adjustments | $ 17.2 | |
Cash portion of acquisition price | 16.3 | |
Maximum possible contingent consideration | 2.2 | |
Fair value of assets acquired | 9.9 | |
Fair value of property, plant and equipment acquired | 2 | |
Fair value of inventories acquired | 4.6 | |
Fair value of accounts receivable acquired | 2.8 | |
Fair value of liabilities acquired | 6 | |
Fair value of accounts payable acquired | 3.6 | |
Fair value of other current liabilities acquired | 0.5 | |
Allocation to non-deductible goodwill and intangible assets | 13.3 | |
Fair value of other current assets acquired | 0.5 | |
Fair value of deferred taxes acquired | 1.9 | |
Valuation of contingent consideration | $ 0.9 |
Acquisitions and Dispositions34
Acquisitions and Dispositions - Dispositions (Details) - USD ($) $ in Thousands | Jun. 21, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Net loss | $ (471) | $ 217 | $ 17,860 | $ 2,704 | |||
Gain on sale of business | $ 0 | 1,631 | [1] | ||||
Mueller-Xingrong [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Ownership percentage | 50.50% | ||||||
Net sales | $ 67,300 | ||||||
Net loss | $ 9 | ||||||
Mueller-Xingrong [Member] | Disposed of by sale [Member] | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Proceeds from divestiture of interest in joint venture | $ 18,300 | ||||||
Assets disposed of | 56,800 | ||||||
Liabilities disposed of | 36,200 | ||||||
Cumulative translation gain as a result of sale | $ 3,800 | ||||||
Gain on sale of business | $ 1,600 | $ 1,600 | |||||
[1] | The Condensed Consolidated Statement of Cash Flows for the six months ended July 1, 2017 has been adjusted to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The Condensed Consolidated Statements of Cash Flows reflects the changes during the periods in the total of cash, cash equivalents, and restricted cash. Therefore, restricted cash activity is included with cash when reconciling the beginning-of-period and end-of-period total amounts shown. Refer to Note 1 for further discussion. |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |||
Summary of segment information [Abstract] | ||||||
Net sales | $ 662,773 | $ 614,266 | [1] | $ 1,302,833 | $ 1,192,186 | [1] |
Cost of goods sold | 563,820 | 524,311 | [1] | 1,109,490 | 1,012,738 | [1] |
Depreciation and amortization | 9,006 | 8,595 | [1] | 18,462 | 16,950 | [1] |
Selling, general, and administrative expense | 38,428 | 36,299 | [1] | 72,485 | 71,873 | [1] |
(Gain) loss on sale of assets | (409) | (1,631) | [1] | 3,060 | (1,631) | |
Asset impairment | 0 | 411 | [2] | |||
Operating income | 51,928 | 46,692 | [1] | 99,336 | 92,256 | [1] |
Interest expense | (6,073) | (6,442) | [1] | (11,982) | (8,973) | [1] |
Other income, net | 586 | 342 | [1] | 1,146 | 936 | [1] |
Income before income taxes | 46,441 | 40,592 | [1] | 88,500 | 84,219 | [1] |
Operating Segments [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Net sales | 668,246 | 613,984 | 1,312,605 | 1,196,875 | ||
Operating Segments [Member] | Piping Systems [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Net sales | 453,183 | 422,844 | 884,147 | 821,619 | ||
Cost of goods sold | 384,821 | 364,261 | 757,716 | 708,907 | ||
Depreciation and amortization | 5,744 | 5,591 | 11,622 | 10,933 | ||
Selling, general, and administrative expense | 20,599 | 19,831 | 39,841 | 38,028 | ||
(Gain) loss on sale of assets | 0 | (1,631) | 0 | (1,631) | ||
Operating income | 42,019 | 34,792 | 74,968 | 65,382 | ||
Operating Segments [Member] | Industrial Metals [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Net sales | 175,891 | 154,504 | 353,223 | 304,341 | ||
Cost of goods sold | 154,401 | 132,972 | 303,824 | 257,015 | ||
Depreciation and amortization | 1,948 | 1,904 | 3,851 | 3,802 | ||
Selling, general, and administrative expense | 3,449 | 3,239 | 6,822 | 6,788 | ||
(Gain) loss on sale of assets | 0 | 0 | 0 | 0 | ||
Operating income | 16,093 | 16,389 | 38,726 | 36,736 | ||
Operating Segments [Member] | Climate [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Net sales | 39,172 | 36,636 | 75,235 | 70,915 | ||
Cost of goods sold | 30,688 | 27,449 | 57,974 | 53,013 | ||
Depreciation and amortization | 627 | 615 | 1,248 | 1,244 | ||
Selling, general, and administrative expense | 2,510 | 2,456 | 5,119 | 4,932 | ||
(Gain) loss on sale of assets | 0 | 0 | 0 | 0 | ||
Operating income | 5,347 | 6,116 | 10,894 | 11,726 | ||
Corporate and Eliminations [Member] | ||||||
Summary of segment information [Abstract] | ||||||
Net sales | (5,473) | 282 | (9,772) | (4,689) | ||
Cost of goods sold | (6,090) | (371) | (10,024) | (6,197) | ||
Depreciation and amortization | 687 | 485 | 1,741 | 971 | ||
Selling, general, and administrative expense | 11,870 | 10,773 | 20,703 | 22,125 | ||
(Gain) loss on sale of assets | (409) | 0 | 3,060 | 0 | ||
Operating income | $ (11,531) | $ (10,605) | $ (25,252) | $ (21,588) | ||
[1] | The Condensed Consolidated Statements of Income for the quarter and six months ended July 1, 2017 have been adjusted to reflect the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Income. Refer to Note 1 for further discussion. | |||||
[2] | The Condensed Consolidated Statement of Cash Flows for the six months ended July 1, 2017 has been adjusted to reflect the adoption of ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash. The Condensed Consolidated Statements of Cash Flows reflects the changes during the periods in the total of cash, cash equivalents, and restricted cash. Therefore, restricted cash activity is included with cash when reconciling the beginning-of-period and end-of-period total amounts shown. Refer to Note 1 for further discussion. |
Segment Information - Net Sales
Segment Information - Net Sales by Major Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | $ 662,773 | $ 614,266 | [1] | $ 1,302,833 | $ 1,192,186 | [1] |
Operating Segments [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 668,246 | 613,984 | 1,312,605 | 1,196,875 | ||
Operating Segments [Member] | Piping Systems [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 453,183 | 422,844 | 884,147 | 821,619 | ||
Operating Segments [Member] | Industrial Metals [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 175,891 | 154,504 | 353,223 | 304,341 | ||
Operating Segments [Member] | Climate [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 39,172 | 36,636 | 75,235 | 70,915 | ||
Operating Segments [Member] | Tube and fittings [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 379,165 | 318,433 | 737,256 | 626,799 | ||
Operating Segments [Member] | Tube and fittings [Member] | Piping Systems [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 379,165 | 318,433 | 737,256 | 626,799 | ||
Operating Segments [Member] | Tube and fittings [Member] | Industrial Metals [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Tube and fittings [Member] | Climate [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Brass rod and forgings [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 135,921 | 119,783 | 272,469 | 233,963 | ||
Operating Segments [Member] | Brass rod and forgings [Member] | Piping Systems [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Brass rod and forgings [Member] | Industrial Metals [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 135,921 | 119,783 | 272,469 | 233,963 | ||
Operating Segments [Member] | Brass rod and forgings [Member] | Climate [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | OEM components, tube and assemblies [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 61,217 | 97,232 | 119,409 | 176,697 | ||
Operating Segments [Member] | OEM components, tube and assemblies [Member] | Piping Systems [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 7,448 | 47,709 | 14,510 | 79,680 | ||
Operating Segments [Member] | OEM components, tube and assemblies [Member] | Industrial Metals [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 14,597 | 12,887 | 29,664 | 26,102 | ||
Operating Segments [Member] | OEM components, tube and assemblies [Member] | Climate [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 39,172 | 36,636 | 75,235 | 70,915 | ||
Operating Segments [Member] | Valves and plumbing specialties [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 66,570 | 56,702 | 132,381 | 115,140 | ||
Operating Segments [Member] | Valves and plumbing specialties [Member] | Piping Systems [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 66,570 | 56,702 | 132,381 | 115,140 | ||
Operating Segments [Member] | Valves and plumbing specialties [Member] | Industrial Metals [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Valves and plumbing specialties [Member] | Climate [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Other products [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 25,373 | 21,834 | 51,090 | 44,276 | ||
Operating Segments [Member] | Other products [Member] | Piping Systems [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Operating Segments [Member] | Other products [Member] | Industrial Metals [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 25,373 | 21,834 | 51,090 | 44,276 | ||
Operating Segments [Member] | Other products [Member] | Climate [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | 0 | 0 | 0 | 0 | ||
Intersegment Sales [Member] | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Net sales | $ (5,473) | $ 282 | $ (9,772) | $ (4,689) | ||
[1] | The Condensed Consolidated Statements of Income for the quarter and six months ended July 1, 2017 have been adjusted to reflect the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Income. Refer to Note 1 for further discussion. |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 75,307 | $ 108,397 |
Work-in-process | 57,472 | 46,158 |
Finished goods | 169,047 | 180,143 |
Valuation reserves | (7,286) | (6,797) |
Inventories | $ 294,540 | $ 327,901 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Dec. 30, 2017 | |
Derivative [Line Items] | ||
Restricted cash in other current assets as collateral related to open derivative contracts | $ 2,100 | $ 5,300 |
Commodity Contracts [Member] | ||
Derivative [Line Items] | ||
Deferred net losses, net of tax, included in AOCI | 215 | |
Cash Flow Hedging [Member] | Commodity Contracts [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Open option contracts written, at fair value | $ 48,200 | |
Time period for open copper future contract purchases | 15 months | |
Fair value of future contracts with (loss) gain position | $ (639) | |
Fair Value Hedging [Member] | Commodity Contracts [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Fair value of future contracts with (loss) gain position | 8 | |
Open future contracts to sell copper | $ 200 | |
Time period for open copper future contract sales | 3 months |
Financial Instruments - Summary
Financial Instruments - Summary of Location and Fair Value (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 30, 2017 |
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | $ 8 | $ 1,009 |
Total derivative liabilities | (639) | (3,155) |
Other Current Assets [Member] | Commodity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other current assets: Gain positions | 8 | 1,014 |
Other current assets: Loss positions | 0 | (5) |
Other Current Liabilities [Member] | Commodity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other current liability: Gain positions | 148 | 55 |
Other current liability: Loss positions | $ (787) | $ (3,210) |
Financial Instruments - Effects
Financial Instruments - Effects of Derivative Instruments on Statements of Income (Details) - Cost of Goods Sold [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Commodity Contracts [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain on the derivatives in designated and qualifying fair value hedges | $ 0 | $ 0 | $ 391 | $ 0 |
Commodity Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (loss) on commodity contracts (nonqualifying) | 2,301 | 672 | 8,427 | (423) |
Inventories [Member] | Fair Value Hedging [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain on the derivatives in designated and qualifying fair value hedges | $ 0 | $ 0 | $ (385) | $ 0 |
Financial Instruments - Amounts
Financial Instruments - Amounts Recognized in and Reclassified from AOCI (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | $ 18 | $ (212) | $ (752) | $ (657) |
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | 17 | 473 | (275) | 974 |
Commodity Contracts [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | 52 | (250) | (743) | (813) |
Commodity Contracts [Member] | Cost of Goods Sold [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | 17 | 324 | (275) | 676 |
Interest Rate Swap [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | 0 | 0 | ||
Interest Rate Swap [Member] | Interest Expense [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | 149 | 298 | ||
Other [Member] | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | (34) | 38 | (9) | 156 |
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Investment in Unconsolidated 42
Investment in Unconsolidated Affiliates - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 30 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||
Net loss | $ (471) | $ 217 | $ 17,860 | $ 2,704 | |
Tecumseh Products Holdings LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in the joint venture, ownership percentage | 50.00% | 50.00% | 50.00% | ||
Net loss | $ 6,700 | $ 12,900 | |||
Gain from settlement with tax authority | $ 7,000 | $ 7,000 | |||
Second Unconsolidated Affiliate [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in the joint venture, ownership percentage | 50.00% | 50.00% | 50.00% | ||
Cayan Ventures and Bahrain Mumtalakat Holding Company [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Interest in the joint venture, ownership percentage | 40.00% | 40.00% | 40.00% | ||
Net loss | $ 500 | $ 1,600 | |||
Cash invested to acquire joint venture interest | $ 4,500 | ||||
Labor Claim [Member] | Tecumseh Products Holdings LLC [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Contingency charge | $ (3,000) |
Investment in Unconsolidated 43
Investment in Unconsolidated Affiliates - Summarized Financial Information Derived from Equity Method Investees' Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
Balance sheet data [Abstract] | |||||
Current assets | $ 236,856 | $ 236,856 | $ 246,127 | ||
Noncurrent assets | 127,783 | 127,783 | 139,200 | ||
Current liabilities | 172,658 | 172,658 | 174,710 | ||
Noncurrent liabilities | 58,214 | 58,214 | $ 58,334 | ||
Income statement data [Abstract] | |||||
Net sales | 126,205 | $ 132,600 | 250,305 | $ 258,900 | |
Gross profit | 11,749 | 19,600 | 23,849 | 35,200 | |
Net income (loss) | $ 471 | $ (217) | $ (17,860) | $ (2,704) |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Pension Benefits [Member] | ||||
Components of net periodic benefit cost (income) [Abstract] | ||||
Service cost | $ 20 | $ 36 | $ 44 | $ 71 |
Interest cost | 1,465 | 1,653 | 2,958 | 3,318 |
Expected return on plan assets | (2,290) | (2,186) | (4,579) | (4,368) |
Amortization of net loss (gain) | 235 | 516 | 584 | 1,072 |
Net periodic benefit (income) cost | (570) | 19 | (993) | 93 |
Other Benefits [Member] | ||||
Components of net periodic benefit cost (income) [Abstract] | ||||
Service cost | 56 | 53 | 116 | 109 |
Interest cost | 146 | 146 | 294 | 295 |
Amortization of prior service credit | (225) | (226) | (451) | (451) |
Amortization of net loss (gain) | 11 | (15) | 29 | (20) |
Net periodic benefit (income) cost | $ (12) | $ (42) | $ (12) | $ (67) |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) | Jul. 13, 2018USD ($) | Jan. 31, 2018USD ($)unilateral_administrative_orders | Jun. 30, 2018USD ($)Import_entryproperty | Jun. 30, 2018potentially_responsible_party | Jun. 30, 2018smelter_site | Nov. 08, 2016USD ($) | Apr. 19, 2010 |
Loss Contingencies [Line Items] | |||||||
Term of guarantees | 1 year | ||||||
Payments required to be made under guarantees, maximum | $ 8,700,000 | ||||||
United States Department of Commerce Antidumping Review [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Assignment of antidumping duty rate on U.S. imports by Company subsidiaries | 48.33% | ||||||
Payment for interest and duties | $ 3,000,000 | ||||||
Number of import entries | Import_entry | 795 | ||||||
Unlawful Employment Practices [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Term of consent decree | 2 years 6 months | ||||||
Subsequent Event [Member] | Unlawful Employment Practices [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Maximum amount to be paid to fund discrimination claims | $ 1,000,000 | ||||||
Southeast Kansas Sites [Member] | Non operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Number of parties involved in settlement negotiations | 2 | 3 | |||||
Environmental reserves | $ 5,600,000 | ||||||
Shasta Area Mine Sites [Member] | Non operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Period of permit, implementation of Best Management Practices | 10 years | ||||||
Estimated remediation costs, term | 30 years | ||||||
Lead Refinery Site [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Financial guarantee | $ 1,000,000 | ||||||
Lead Refinery Site [Member] | Non operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated remediation costs, term | 19 years | ||||||
Amount 2 other PRPs will pay to fund cleanup | $ 26,000,000 | ||||||
Number of surrounding properties | property | 300 | ||||||
Lead Refinery NPL Site [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Environmental reserves | $ 4,500,000 | ||||||
Number of UAOs | unilateral_administrative_orders | 2 | ||||||
Site contingency, total costs | $ 25,000,000 | ||||||
Site contingency, amount agreed upon to pay PRPs for past costs | $ 2,000,000 | ||||||
Mueller Copper Tube Products, Inc. [Member] | Operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated remediation costs, term | 8 years | ||||||
Minimum [Member] | Shasta Area Mine Sites [Member] | Non operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated remediation costs | $ 12,800,000 | ||||||
Minimum [Member] | Lead Refinery Site [Member] | Non operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated remediation costs | 1,800,000 | ||||||
Minimum [Member] | Mueller Copper Tube Products, Inc. [Member] | Operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated remediation costs | 800,000 | ||||||
Maximum [Member] | Shasta Area Mine Sites [Member] | Non operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated remediation costs | 17,600,000 | ||||||
Maximum [Member] | Lead Refinery Site [Member] | Non operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated remediation costs | 3,000,000 | ||||||
Maximum [Member] | Mueller Copper Tube Products, Inc. [Member] | Operating Properties [Member] | |||||||
Loss Contingencies [Line Items] | |||||||
Estimated remediation costs | $ 1,200,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | Dec. 30, 2017 | |
Income Tax Disclosure [Abstract] | |||||
Effective tax rate | 27.00% | 31.00% | 22.00% | 29.00% | |
Impact of investments in unconsolidated affiliates | $ 3.7 | $ 0.8 | |||
Provision for state income taxes, net of federal benefits | $ 1.4 | $ 0.8 | 2.6 | 1.7 | |
Global intangible low-taxed income | 1 | ||||
Other items | $ 1.3 | 0.2 | $ 1.2 | $ 0.7 | |
Statutory income tax rate | 21.00% | 35.00% | |||
Reduction for U.S. production activities | 0.9 | $ 1.8 | |||
Effect of foreign adjustments | $ 1.6 | 3 | |||
Tax benefit of equity compensation deductions | $ 1.7 | ||||
One-time transition tax liability | $ 12.9 | $ 12.9 | |||
Provisional tax benefit | $ 12.1 | $ 12.1 |
Accumulated Other Comprehensi47
Accumulated Other Comprehensive Income (Loss) - Changes by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Mar. 31, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |
Changes in accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | $ 536,028 | $ 536,028 | |||
Total other comprehensive (loss) income, net | $ (10,516) | $ 1,773 | (7,453) | $ 7,337 | |
Reclassification of stranded effects of the Act | 556 | ||||
Ending balance | 572,089 | 572,089 | |||
Total [Member] | |||||
Changes in accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (51,056) | (51,056) | (66,956) | ||
Other comprehensive (loss) income before reclassifications | (7,472) | 9,193 | |||
Amounts reclassified from AOCI | (129) | (2,691) | |||
Total other comprehensive (loss) income, net | (7,601) | 6,502 | |||
Reclassification of stranded effects of the Act | 556 | ||||
Ending balance | (58,101) | (60,454) | (58,101) | (60,454) | |
Cumulative Translation Adjustment [Member] | |||||
Changes in accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (38,163) | (38,163) | (49,965) | ||
Other comprehensive (loss) income before reclassifications | (6,793) | 11,058 | |||
Amounts reclassified from AOCI | 0 | (3,777) | |||
Total other comprehensive (loss) income, net | (6,793) | 7,281 | |||
Reclassification of stranded effects of the Act | 0 | ||||
Ending balance | (44,956) | (42,684) | (44,956) | (42,684) | |
Unrealized (Loss) Gain on Derivatives [Member] | |||||
Changes in accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | 847 | 847 | (300) | ||
Other comprehensive (loss) income before reclassifications | (752) | (657) | |||
Amounts reclassified from AOCI | (275) | 974 | |||
Total other comprehensive (loss) income, net | (1,027) | 317 | |||
Reclassification of stranded effects of the Act | 112 | ||||
Ending balance | (68) | 17 | (68) | 17 | |
Pension/OPEB Liability Adjustment [Member] | |||||
Changes in accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | (20,610) | (20,610) | (23,046) | ||
Other comprehensive (loss) income before reclassifications | 353 | (856) | |||
Amounts reclassified from AOCI | 146 | 491 | |||
Total other comprehensive (loss) income, net | 499 | (365) | |||
Reclassification of stranded effects of the Act | (1,018) | ||||
Ending balance | (21,129) | (23,411) | (21,129) | (23,411) | |
Unrealized Gain (Loss) on Equity Securities [Member] | |||||
Changes in accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | 0 | 0 | 380 | ||
Other comprehensive (loss) income before reclassifications | 0 | (1) | |||
Amounts reclassified from AOCI | 0 | (379) | |||
Total other comprehensive (loss) income, net | 0 | (380) | |||
Reclassification of stranded effects of the Act | 0 | ||||
Ending balance | 0 | 0 | 0 | 0 | |
Attributable to Unconsolidated Affiliates [Member] | |||||
Changes in accumulated other comprehensive income [Roll Forward] | |||||
Beginning balance | $ 6,870 | 6,870 | 5,975 | ||
Other comprehensive (loss) income before reclassifications | (280) | (351) | |||
Amounts reclassified from AOCI | 0 | 0 | |||
Total other comprehensive (loss) income, net | (280) | (351) | |||
Reclassification of stranded effects of the Act | 1,462 | ||||
Ending balance | $ 8,052 | $ 5,624 | $ 8,052 | $ 5,624 |
Accumulated Other Comprehensi48
Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Jul. 01, 2017 | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of goods sold | $ 563,820 | $ 524,311 | [1] | $ 1,109,490 | $ 1,012,738 | [1] |
Interest expense | 6,073 | 6,442 | [1] | 11,982 | 8,973 | [1] |
Other income, net | (586) | (342) | [1] | (1,146) | (936) | [1] |
Income tax (benefit) expense | 12,411 | 12,650 | [1] | 19,806 | 24,579 | [1] |
Net of tax and noncontrolling interests | (33,182) | (27,633) | [1] | (57,310) | (57,620) | [1] |
Selling, general, and administrative expense | 38,428 | 36,299 | [1] | 72,485 | 71,873 | [1] |
Unrealized losses (gains) on derivatives [Member] | Amount Reclassified from AOCI [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Cost of goods sold | 19 | 602 | (346) | 1,024 | ||
Interest expense | 0 | 232 | 0 | 464 | ||
Income tax (benefit) expense | (2) | (361) | 71 | (514) | ||
Net of tax and noncontrolling interests | 17 | 473 | (275) | 974 | ||
Amortization of net loss and prior service cost on employee benefit plans [Member] | Amount Reclassified from AOCI [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other income, net | 21 | 275 | 162 | 601 | ||
Income tax (benefit) expense | 6 | (46) | (16) | (110) | ||
Net of tax and noncontrolling interests | 27 | 229 | 146 | 491 | ||
Sale of available-for-sale securities [Member] | Amount Reclassified from AOCI [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Other income, net | 0 | (357) | 0 | (611) | ||
Income tax (benefit) expense | 0 | 138 | 0 | 232 | ||
Net of tax and noncontrolling interests | 0 | (219) | 0 | (379) | ||
Gain recognized upon sale of business [Member] | Amount Reclassified from AOCI [Member] | ||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||
Income tax (benefit) expense | 0 | 0 | 0 | 0 | ||
Net of tax and noncontrolling interests | 0 | (3,777) | 0 | (3,777) | ||
Selling, general, and administrative expense | $ 0 | $ (3,777) | $ 0 | $ (3,777) | ||
[1] | The Condensed Consolidated Statements of Income for the quarter and six months ended July 1, 2017 have been adjusted to reflect the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Income. Refer to Note 1 for further discussion. |
Noncontrolling Interests (Detai
Noncontrolling Interests (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jul. 01, 2017 | [1] | Jun. 30, 2018 | Jul. 01, 2017 | [1] | |
Stockholders' Equity Attributable to Noncontrolling Interest [Roll Forward] | ||||||
Balance as of December 30, 2017 | $ 13,917 | |||||
Dividends paid to noncontrolling interests | (592) | |||||
Net income attributable to noncontrolling interests | $ 700 | $ 200 | 916 | $ 668 | ||
Other comprehensive income attributable to noncontrolling interests, net of tax: | ||||||
Foreign currency translation | 147 | |||||
Balance as of June 30, 2018 | $ 14,388 | $ 14,388 | ||||
[1] | The Condensed Consolidated Statements of Income for the quarter and six months ended July 1, 2017 have been adjusted to reflect the adoption of ASU 2017-07, Compensation - Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost. The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Income. Refer to Note 1 for further discussion. |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Millions | Jul. 16, 2018 | Jul. 06, 2018 | Jul. 02, 2018 | Jun. 30, 2018 | Jun. 29, 2018 |
Subsequent Event [Line Items] | |||||
Long-term line of credit | $ 315 | ||||
ATCO Rubber Product [Member] | |||||
Subsequent Event [Line Items] | |||||
Long-term line of credit | $ 150 | ||||
ATCO Rubber Product [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Cash payment for acquisition | $ 157.7 | ||||
Maximum possible contingent consideration | 12 | ||||
Fair value of assets acquired | 107.2 | ||||
Fair value of property, plant and equipment acquired | 52.1 | ||||
Fair value of inventories acquired | 32.4 | ||||
Fair value of accounts receivable acquired | 21.9 | ||||
Fair value of other current assets acquired | 0.6 | ||||
Fair value of other assets acquired | 0.2 | ||||
Fair value of liabilities acquired | 18.1 | ||||
Fair value of accounts payable acquired | 8.1 | ||||
Fair value of other current liabilities acquired | 7.4 | ||||
Fair value of other liabilities acquired | 2.6 | ||||
Revenues of acquired entity | $ 166 | ||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Repayment of line of credit | $ 25 | $ 50 | |||
Line of Credit [Member] | Revolving Credit Facility [Member] | |||||
Subsequent Event [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 350 |