Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 30, 2019 | Apr. 19, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | MUELLER INDUSTRIES INC | |
Entity Central Index Key | 0000089439 | |
Current Fiscal Year End Date | --12-28 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 56,626,486 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Statement [Abstract] | ||
Net sales | $ 611,781 | $ 640,060 |
Cost of goods sold | 511,393 | 545,670 |
Depreciation and amortization | 10,555 | 9,456 |
Selling, general, and administrative expense | 40,653 | 34,057 |
Asset impairment | 0 | 3,469 |
Operating income | 49,180 | 47,408 |
Interest expense | (6,954) | (5,909) |
Other (expense) income, net | (172) | 560 |
Income before income taxes | 42,054 | 42,059 |
Income tax expense | (9,546) | (7,395) |
Loss from unconsolidated affiliates, net of foreign tax | (15,369) | (10,320) |
Consolidated net income | 17,139 | 24,344 |
Net income attributable to noncontrolling interests | (1,416) | (216) |
Net income attributable to Mueller Industries, Inc. | $ 15,723 | $ 24,128 |
Weighted average shares for basic earnings per share (in shares) | 55,728 | 56,900 |
Effect of dilutive stock-based awards (in shares) | 526 | 517 |
Adjusted weighted average shares for diluted earnings per share (in shares) | 56,254 | 57,417 |
Basic earnings per share (in dollars per share) | $ 0.28 | $ 0.42 |
Diluted earnings per share (in dollars per share) | 0.28 | 0.42 |
Dividends per share (in dollars per share) | $ 0.1 | $ 0.1 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Consolidated net income | $ 17,139 | $ 24,344 |
Other comprehensive income, net of tax: | ||
Foreign currency translation | 6,057 | 4,977 |
Net change with respect to derivative instruments and hedging activities, net of tax of $(343) and $279 | 1,257 | (1,062) |
Net change in pension and postretirement obligation adjustments, net of tax of $107 and $180 | (246) | (451) |
Attributable to unconsolidated affiliates, net of tax of $(13) and $116 | 47 | (401) |
Total other comprehensive income, net | 7,115 | 3,063 |
Consolidated comprehensive income | 24,254 | 27,407 |
Comprehensive income attributable to noncontrolling interests | (1,620) | (393) |
Comprehensive income attributable to Mueller Industries, Inc. | $ 22,634 | $ 27,014 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net change with respect to derivative instruments and hedging activities, tax (expense) benefit | $ (343) | $ 279 |
Net actuarial loss on pension and postretirement obligations, tax benefit (expense) | 107 | 180 |
Attributable to unconsolidated affiliates, tax benefit (expense) | $ (13) | $ 116 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 97,596 | $ 72,616 |
Accounts receivable, less allowance for doubtful accounts of $812 in 2019 and $836 in 2018 | 309,765 | 273,417 |
Inventories | 344,850 | 329,795 |
Other current assets | 32,322 | 26,790 |
Total current assets | 784,533 | 702,618 |
Property, plant, and equipment, net | 369,710 | 370,633 |
Operating lease right-of-use assets | 29,515 | 0 |
Goodwill, net | 153,106 | 150,335 |
Intangible assets, net | 61,558 | 61,971 |
Investments in unconsolidated affiliates | 50,733 | 58,042 |
Other assets | 25,898 | 25,950 |
Total assets | 1,475,053 | 1,369,549 |
Current liabilities: | ||
Current portion of debt | 5,001 | 7,101 |
Accounts payable | 107,301 | 103,754 |
Accrued wages and other employee costs | 29,621 | 38,549 |
Current portion of operating lease liabilities | 4,737 | 0 |
Other current liabilities | 73,869 | 83,397 |
Total current liabilities | 220,529 | 232,801 |
Long-term debt, less current portion | 559,836 | 489,597 |
Pension liabilities | 13,573 | 14,237 |
Postretirement benefits other than pensions | 14,802 | 14,818 |
Environmental reserves | 20,025 | 20,009 |
Deferred income taxes | 18,940 | 16,615 |
Noncurrent operating lease liabilities | 25,437 | 0 |
Other noncurrent liabilities | 19,989 | 18,212 |
Total liabilities | 893,131 | 806,289 |
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 56,626,441 in 2019 and 56,702,997 in 2018 | 802 | 802 |
Additional paid-in capital | 278,800 | 276,849 |
Retained earnings | 834,798 | 824,737 |
Accumulated other comprehensive loss | (72,881) | (79,792) |
Treasury common stock, at cost | (476,121) | (474,240) |
Total Mueller Industries, Inc. stockholders' equity | 565,398 | 548,356 |
Noncontrolling interests | 16,524 | 14,904 |
Total equity | 581,922 | 563,260 |
Commitments and contingencies | 0 | 0 |
Total liabilities and equity | $ 1,475,053 | $ 1,369,549 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 812 | $ 836 |
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) | 56,626,441 | 56,702,997 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Cash flows from operating activities | ||
Consolidated net income | $ 17,139 | $ 24,344 |
Reconciliation of consolidated net income to net cash used in operating activities: | ||
Depreciation and amortization | 10,635 | 9,536 |
Stock-based compensation expense | 2,007 | 1,912 |
Loss from unconsolidated affiliates | 15,369 | 10,320 |
Loss (gain) on disposals of properties | 37 | (676) |
Impairment charge | 0 | 3,469 |
Deferred income tax benefit | (225) | (940) |
Changes in assets and liabilities, net of effects of business acquired: | ||
Receivables | (34,067) | (72,843) |
Inventories | (13,335) | 3,504 |
Other assets | (7,530) | 20,967 |
Current liabilities | (15,885) | (23,898) |
Other liabilities | 741 | (1,845) |
Other, net | 441 | (365) |
Net cash used in operating activities | (24,673) | (26,515) |
Cash flows from investing activities | ||
Capital expenditures | (6,834) | (5,517) |
Acquisition of business, net of cash acquired | 0 | (12,466) |
Investments in unconsolidated affiliates | (8,000) | (609) |
Proceeds from sales of assets | 4 | 708 |
Net cash used in investing activities | (14,830) | (17,884) |
Cash flows from financing activities | ||
Dividends paid to stockholders of Mueller Industries, Inc. | (5,574) | (5,679) |
Repurchase of common stock | (1,763) | (6,575) |
Issuance of long-term debt | 100,557 | 41,754 |
Repayments of long-term debt | (30,472) | (15,903) |
Repayment of debt by consolidated joint ventures, net | (2,121) | (3,342) |
Net cash (used) received to settle stock-based awards | (175) | 50 |
Net cash provided by financing activities | 60,452 | 10,305 |
Effect of exchange rate changes on cash | 919 | 1,289 |
Increase (decrease) in cash, cash equivalents, and restricted cash | 21,868 | (32,805) |
Cash, cash equivalents, and restricted cash at the beginning of the period | 77,138 | 126,563 |
Cash, cash equivalents, and restricted cash at the end of the period | $ 99,006 | $ 93,758 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Noncontrolling Interest [Member] |
Balance at beginning of year (in shares) at Dec. 30, 2017 | 80,183 | 22,373 | |||||
Balance at beginning of year at Dec. 30, 2017 | $ 802 | $ 274,585 | $ 743,503 | $ (51,056) | $ (445,723) | $ 13,917 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under incentive stock option plans (in shares) | (6) | ||||||
Issuance of shares under incentive stock option plans | (48) | $ 114 | |||||
Stock-based compensation expense | 1,912 | ||||||
Issuance of restricted stock (in shares) | (1) | ||||||
Issuance of restricted stock | (20) | $ 20 | |||||
Net income attributable to Mueller Industries, Inc. | $ 24,128 | 24,128 | |||||
Dividends paid or payable to stockholders of Mueller Industries, Inc. | (5,756) | ||||||
Reclassification of stranded effects of the Act | (556) | 556 | |||||
Total other comprehensive income attributable to Mueller Industries, Inc. | 3,063 | 2,886 | |||||
Repurchase of common stock (in shares) | 252 | ||||||
Repurchase of common stock | $ (6,592) | ||||||
Net income attributable to noncontrolling interests | (216) | 216 | |||||
Foreign currency translation | 4,977 | 177 | |||||
Balance at end of year (in shares) at Mar. 31, 2018 | 80,183 | 22,618 | |||||
Balance at end of year at Mar. 31, 2018 | $ 802 | 276,429 | 761,319 | (47,614) | $ (452,181) | 14,310 | |
Balance at beginning of year (in shares) at Dec. 29, 2018 | 80,183 | 23,480 | |||||
Balance at beginning of year at Dec. 29, 2018 | 563,260 | $ 802 | 276,849 | 824,737 | (79,792) | $ (474,240) | 14,904 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under incentive stock option plans (in shares) | 0 | ||||||
Issuance of shares under incentive stock option plans | (56) | $ (118) | |||||
Stock-based compensation expense | 2,007 | ||||||
Issuance of restricted stock (in shares) | 0 | ||||||
Issuance of restricted stock | 0 | $ 0 | |||||
Net income attributable to Mueller Industries, Inc. | 15,723 | 15,723 | |||||
Dividends paid or payable to stockholders of Mueller Industries, Inc. | (5,662) | ||||||
Reclassification of stranded effects of the Act | 0 | 0 | |||||
Total other comprehensive income attributable to Mueller Industries, Inc. | 7,115 | 6,911 | |||||
Repurchase of common stock (in shares) | 77 | ||||||
Repurchase of common stock | $ (1,763) | ||||||
Net income attributable to noncontrolling interests | (1,416) | 1,416 | |||||
Foreign currency translation | 6,057 | 204 | |||||
Balance at end of year (in shares) at Mar. 30, 2019 | 80,183 | 23,557 | |||||
Balance at end of year at Mar. 30, 2019 | $ 581,922 | $ 802 | $ 278,800 | $ 834,798 | $ (72,881) | $ (476,121) | $ 16,524 |
Recent Accounting Standards
Recent Accounting Standards | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Adopted In July 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements and ASU No. 2018-10, Codification Improvements to Topic 842, Leases . The ASUs clarify how to apply certain aspects of the new leasing standard, ASC 842. ASC 842 requires an entity to recognize a right-of-use asset and lease liability for each lease with a term of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a financing or operating lease. The guidance also requires certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted the ASU during the first quarter of 2019 using a modified retrospective approach and applied the transition provisions at the beginning of the fiscal year. Financial results reported in periods prior to 2018 are unchanged. The Company elected a package of practical expedients, which among other things, does not require the reassessment of lease classification. The Company does not separate lease and non-lease components of contracts. The Company implemented a system to identify its entire population of leases and tested the population for completeness. As of the effective date, the Company recognized noncurrent right-of-use assets of $30.8 million and corresponding current and noncurrent lease liabilities of $4.9 million and $26.6 million , respectively. Issued In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . For employers that sponsor defined benefit pension and/or other postretirement benefit plans, the ASU eliminates requirements for certain disclosures that are no longer considered cost beneficial, requires new disclosures related to the weighted-average interest crediting rate for cash balance plans and explanations for significant gains and losses related to changes in benefit obligations, and clarifies the requirements for entities that provide aggregate disclosures for two or more plans. The ASU will be effective for the annual period beginning in 2020. The updated guidance requires retrospective adoption, and early adoption is permitted. The Company does not expect the adoption of the ASU to have a material impact on its Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The ASU eliminates requirements to disclose the amount and reasons for transfers between level 1 and level 2 of the fair value hierarchy, but requires public companies to disclose changes in unrealized gains and losses for the period included in other comprehensive income (OCI) for recurring level 3 fair value measurements or instruments held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs for level 3 fair value measurements. The ASU will be effective for interim and annual periods beginning in 2020. An entity is permitted to early adopt either the entire standard or only the provisions that eliminate or modify requirements, and can elect to early adopt in interim periods. The guidance on changes in unrealized gains and losses for the period included in OCI for recurring level 3 measurements, the range and weighted average of significant unobservable inputs used to develop level 3 fair value measurements, and the narrative description of measurement uncertainty is applied prospectively. All other amendments should be applied retrospectively. The Company does not expect the adoption of the ASU to have a material impact on its Condensed Consolidated Financial Statements. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 30, 2019 | |
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. |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions ATCO 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 $156.7 million , net of the estimated working capital adjustments. The total purchase price consisted of $151.4 million in cash at closing and 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 business. 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 is reported in the Company’s Climate segment. The fair value of the assets acquired totaled $137.9 million , consisting primarily of property, plant, and equipment of $83.1 million , inventories of $31.7 million , accounts receivable of $21.8 million , other current assets of $1.1 million , and other assets of $0.2 million . The fair value of the liabilities assumed totaled $20.4 million , consisting primarily of accounts payable of $8.1 million , other current liabilities of $10.2 million , and long-term debt of $2.1 million . Of the remaining purchase price, $17.8 million was allocated to tax-deductible goodwill and $21.4 million was allocated to intangible assets, including technology, customer relationships, trade names, and supply contracts. The purchase price allocation is provisional as of March 30, 2019 and subject to change upon completion of the final valuation of the long-lived assets, working capital, and contingent consideration during the measurement period. ATCO had net sales of approximately $45.5 million for the quarter ended March 30, 2019 . For the year ended December 29, 2018 , the Company’s net sales included approximately $90.0 million of revenue recognized by ATCO from the date of acquisition. The following table presents condensed pro forma consolidated results of operations as if the ATCO acquisition has occurred at the beginning of 2018. The pro forma information does not purport to be indicative of the results that would have been obtained if the operations had actually been combined during the periods presented and is not necessarily indicative of operating results to be expected in future periods. The most significant pro forma adjustments to the historical results of operations relate to the application of purchase accounting and the financing structure. For the Quarter Ended (In thousands, except per share data) March 31, 2018 Net sales $ 681,331 Net income 26,463 Basic earnings per share $ 0.47 Diluted earnings per share 0.46 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 $ 13.6 million , net of working capital adjustments. The total purchase price consisted of $12.4 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 business. 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 $7.1 million , consisting primarily of property, plant, and equipment of $3.3 million , inventories of $1.8 million , accounts receivable of $1.7 million , and other current assets of $0.3 million . The fair value of the liabilities assumed totaled $2.9 million , consisting primarily of accounts payable of $0.7 million , other current liabilities of $0.2 million , and deferred taxes of $2.0 million . Of the remaining purchase price, $9.4 million was allocated to non-deductible goodwill and intangible assets. |
Segment Information
Segment Information | 3 Months Ended |
Mar. 30, 2019 | |
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. European Operations manufacture copper tube in the U.K. which is sold primarily in Europe. The Trading Group manufactures pipe nipples 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, Turbotec, and ATCO. These domestic businesses manufacture and fabricate valves, assemblies, high pressure components, coaxial heat exchangers, and insulated HVAC flexible duct systems primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S. Summarized segment information is as follows: For the Quarter Ended March 30, 2019 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 376,492 $ 150,875 $ 89,834 $ (5,420 ) $ 611,781 Cost of goods sold 324,796 126,699 66,829 (6,931 ) 511,393 Depreciation and amortization 5,550 1,844 2,313 848 10,555 Selling, general, and administrative expense 17,897 3,145 8,306 11,305 40,653 Operating income 28,249 19,187 12,386 (10,642 ) 49,180 Interest expense (6,954 ) Other loss, net (172 ) Income before income taxes $ 42,054 For the Quarter Ended March 31, 2018 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 430,964 $ 177,332 $ 36,063 $ (4,299 ) $ 640,060 Cost of goods sold 372,895 149,423 27,286 (3,934 ) 545,670 Depreciation and amortization 5,878 1,903 621 1,054 9,456 Selling, general, and administrative expense 19,242 3,373 2,609 8,833 34,057 Asset impairment — — — 3,469 3,469 Operating income 32,949 22,633 5,547 (13,721 ) 47,408 Interest expense (5,909 ) Other income, net 560 Income before income taxes $ 42,059 The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category: For the Quarter Ended March 30, 2019 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 307,521 $ — $ — $ 307,521 Brass rod and forgings — 115,924 — 115,924 OEM components, tube & assemblies 7,283 13,037 37,243 57,563 Valves and plumbing specialties 61,688 — — 61,688 Other — 21,914 52,591 74,505 376,492 150,875 89,834 617,201 Intersegment sales (5,420 ) Net sales $ 611,781 For the Quarter Ended March 31, 2018 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 358,091 $ — $ — $ 358,091 Brass rod and forgings — 136,548 — 136,548 OEM components, tube & assemblies 7,062 15,067 36,063 58,192 Valves and plumbing specialties 65,811 — — 65,811 Other — 25,717 — 25,717 430,964 177,332 36,063 644,359 Intersegment sales (4,299 ) Net sales $ 640,060 |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 3 Months Ended |
Mar. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash (In thousands) March 30, December 29, Cash & cash equivalents $ 97,596 $ 72,616 Restricted cash included within other current assets 1,302 4,414 Restricted cash included within other assets 108 108 Total cash, cash equivalents, and restricted cash $ 99,006 $ 77,138 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. |
Inventories
Inventories | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) March 30, December 29, Raw materials and supplies $ 101,420 $ 89,641 Work-in-process 60,356 58,643 Finished goods 190,033 188,506 Valuation reserves (6,959 ) (6,995 ) Inventories $ 344,850 $ 329,795 |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 30, 2019 | |
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 March 30, 2019 , the Company held open futures contracts to purchase approximately $32.0 million of copper over the next 14 months related to fixed price sales orders. The fair value of those futures contracts was a $1.3 million net gain position, which was determined by obtaining quoted market prices (level 1 within the fair value hierarchy). In the next 12 months, the Company will reclassify into earnings realized gains or losses relating to cash flow hedges. At March 30, 2019 , this amount was approximately $911 thousand of deferred net gains , net of tax. The Company may also enter into futures contracts to protect the value of inventory against market fluctuations. At March 30, 2019 , the Company held open futures contracts to sell approximately $2.6 million of copper over the next four months related to copper inventory. The fair value of those futures contracts was a $90 thousand net loss 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 March 30, December 29, Balance Sheet Location March 30, December 29, Commodity contracts - gains Other current assets $ 1,366 $ 88 Other current liabilities $ — $ 103 Commodity contracts - losses Other current assets (24 ) (1 ) Other current liabilities (90 ) (1,382 ) Total derivatives (1) $ 1,342 $ 87 $ (90 ) $ (1,279 ) (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 (In thousands) Location March 30, 2019 March 31, 2018 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 on commodity contracts (nonqualifying) Cost of goods sold 1,442 6,126 The following tables summarize amounts recognized in and reclassified from AOCI during the period: For the Quarter Ended March 30, 2019 (In thousands) Gain (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 $ 1,352 Cost of goods sold $ (79 ) Other (16 ) Other — Total $ 1,336 Total $ (79 ) Changes recognized in and reclassified from AOCI (continued): For the Quarter Ended March 31, 2018 (In thousands) (Loss) Gain 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 $ (795 ) Cost of goods sold $ (292 ) Other 25 Other — Total $ (770 ) Total $ (292 ) 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 March 30, 2019 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 March 30, 2019 and December 29, 2018 , the Company had recorded restricted cash in other current assets of $0.5 million and $3.6 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 March 30, 2019 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. |
Leases
Leases | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain manufacturing facilities, distribution centers, office space, and equipment. Leases with an initial term of twelve months or less are not recorded on the balance sheet; expense for these leases is recognized on a straight line-basis over the term of the lease. Most of the Company’s leases include one or more options to renew up to five years and have remaining terms of one to fifteen years. These options are not included in the Company’s valuation of the right-of-use assets as the Company is not reasonably certain to exercise the options. The Company has certain vehicle leases that are financing; however, these leases are deemed immaterial for disclosure. The following table includes supplemental information with regards to the Company’s operating leases: (In thousands, except lease term and discount rate) March 30, 2019 Operating lease right-of-use assets $ 29,515 Current portion of operating lease liabilities 4,737 Noncurrent operating lease liabilities 25,437 Total operating lease liabilities $ 30,174 Weighted average discount rate 4.13 % Weighted average remaining lease term (in years) 9.32 As of the adoption date of ASC 842, discount rates for existing leases were based on an estimate of the Company’s incremental borrowing rate, adjusted for the term of the lease. Some of the Company’s leases include variable lease costs such as taxes, insurance, etc. These costs are immaterial for disclosure. The following table presents certain information related to operating lease costs and cash paid during the quarter. (In thousands) March 30, 2019 Operating lease costs $ 1,627 Short term lease costs 1,490 Total lease costs $ 3,117 Cash paid for amounts included in the measurement of lease liabilities $ 1,585 Maturities of the Company’s operating leases are as follows: (In thousands) March 30, 2019 2019 $ 5,976 2020 5,343 2021 4,383 2022 3,661 2023 2,635 2024 and thereafter 15,361 Total lease payments 37,359 Less imputed interest (7,185 ) Total lease obligations 30,174 Less current obligations (4,737 ) Noncurrent lease obligations $ 25,437 |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 3 Months Ended |
Mar. 30, 2019 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Investments 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’ net 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 and the Condensed Consolidated Statements of Changes in Equity. 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’ net accumulated losses. The following tables present summarized financial information derived from the Company’s equity method investees’ combined consolidated financial statements, which are prepared in accordance with U.S. GAAP. (In thousands) March 30, December 29, Current assets $ 200,129 $ 228,214 Noncurrent assets 107,349 114,257 Current liabilities 161,863 175,371 Noncurrent liabilities 62,814 57,216 For the Quarter Ended (In thousands) March 30, 2019 March 31, 2018 Net sales $ 113,327 $ 124,100 Gross profit 8,006 12,100 Net loss (29,207 ) (18,331 ) The Company’s loss from unconsolidated affiliates, net of foreign tax, for the quarter ended March 30, 2019 included net losses of $14.6 million for Tecumseh. The Company’s loss from unconsolidated affiliates, net of foreign tax, for the quarter ended March 31, 2018 included net losses of $6.2 million and charges of $3.0 million related to certain labor claim contingencies for Tecumseh. Mueller Middle East 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 operates and brands its products under the Mueller Industries family of brands. The Company has invested approximately $4.5 million of cash to date and is the technical and marketing lead with a 40 percent ownership in the joint venture. The Company’s loss from unconsolidated affiliates, net of foreign tax, for the quarters ended March 30, 2019 and March 31, 2018 included net losses of $0.8 million and $1.1 million , respectively, for Mueller Middle East. |
Benefit Plans
Benefit Plans | 3 Months Ended |
Mar. 30, 2019 | |
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 (In thousands) March 30, 2019 March 31, 2018 Pension benefits: Service cost $ — $ 24 Interest cost 1,467 1,493 Expected return on plan assets (2,076 ) (2,289 ) Amortization of net loss 530 349 Net periodic benefit income $ (79 ) $ (423 ) Other benefits: Service cost $ 64 $ 60 Interest cost 153 148 Amortization of prior service credit (226 ) (226 ) Amortization of net (gain) loss (8 ) 18 Net periodic benefit income $ (17 ) $ — The components of net periodic benefit cost (income) other than the service cost component are included in other (expense) income, net in the Condensed Consolidated Statements of Income. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 30, 2019 | |
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. Altoona. 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. East La Harpe. 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 (Peabody Energy) of a third party that the Company understands may owe indemnification obligations to one of the other PRPs (Blue Tee) 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. In December 2018, KDHE provided a draft agreement which contemplates the use of funds KDHE obtained from two other parties (Peabody Energy and Blue Tee) to fund part of the remediation, and removes Blue Tee from the PRPs’ agreement with KDHE. The Company is currently negotiating the terms of that draft agreement. Lanyon. 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 these three 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 2029 to address residual discharges of acid rock drainage. The Company currently estimates that it will spend between approximately $12.8 million and $17.5 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 $1.7 million and $2.1 million over the next 18 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, as well as the possibility of up to $0.7 million in further payments for ongoing work by those PRPs, $0.4 million of which has been incurred by those PRPs and paid for by the Company to date. As of March 30, 2019 , the Company has made payments of approximately $5.7 million related to the aforementioned agreement with the other PRPs and has included $1.3 million in the reserve for environmental liabilities. 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. A second civil action asserting similar claims was filed against the Company, Arava, MRRC, and Lead Refinery in September 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), but not limited to EPA oversight costs for which EPA may attempt to seek reimbursement from the Company, and past costs for which other PRPs may attempt to seek contribution from the Company. 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 $0.7 million to $1.1 million over the next seven 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. Deepwater Horizon Economic and Property Damage Claim In November 2018, an Appeal Panel of the Deepwater Horizon Economic and Property Damage Settlement Program approved an award to Mueller Copper Tube Company, Inc., a wholly owned subsidiary of the Company, of $27.4 million . In January 2019, the United States District Court for the Eastern District of Louisiana denied discretionary review of the award, and an appeal of the award is currently pending before the United States Court of Appeals for the Fifth Circuit. The award, if upheld, is subject to the Company’s payment of contingency-based legal and advisory fees of approximately 20 percent of the total award amount. Any recovery following the payment of such fees and any applicable taxes will be recognized as income when settled. There can be no assurance that the Company will receive such award, and it is possible such award will be materially reduced or reversed in its entirety upon appeal. 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 March 30, 2019 were $7.6 million . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the first quarter of 2019 was 23 percent compared with 18 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 an increase in the transition tax calculation of $1.5 million for the effects of final regulations issued during the first quarter of 2019 ; the provision for state income taxes, net of the federal benefit, of $1.1 million ; and other items of $0.7 million . These increases were partially offset by the recognition of a $2.6 million benefit related to an increased tax loss on the sale of a foreign subsidiary in a prior period. The Company’s effective tax rate for the first quarter of 2018 was 18 percent . The items impacting the effective tax rate for the first quarter of 2018 were primarily attributable to a reduction for the impact of tax benefits from losses on investments in unconsolidated affiliates of $3.9 million , partially offset by increases related to the provision for state income taxes, net of the federal benefit, of $1.2 million , and other items of $1.2 million . The Tax Cuts and Jobs Act (the Act), enacted on December 22, 2017, requires companies to pay a one-time transition tax on the accumulated earnings of certain foreign subsidiaries. In January 2019, the Treasury Department issued final regulations related to the calculation of the transition tax. As a result of the guidance provided in these regulations, the Company recorded additional income tax expense of $1.5 million and recognized a $2.6 million benefit on the sale of a foreign subsidiary included in the transition tax. 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 2015 and all subsequent years and is open for certain state and foreign returns for earlier tax years due to ongoing audits and differing statute periods. The Internal Revenue Service is currently auditing the Company’s 2015 federal consolidated return. While the Company believes that it is adequately reserved for possible future audit adjustments, the final resolution of these examinations cannot be determined with certainty and could result in final settlements that differ from current estimates. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 30, 2019 | |
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, and other comprehensive income attributable to unconsolidated affiliates. The following tables provide changes in AOCI by component, net of taxes and noncontrolling interests (amounts in parentheses indicate debits to AOCI): For the Quarter Ended March 30, 2019 (In thousands) Cumulative Translation Adjustment Unrealized (Loss) Gain on Derivatives Pension/OPEB Liability Adjustment Attributable to Unconsol. Affiliates Total Balance as of December 29, 2018 $ (54,257 ) $ (214 ) $ (24,967 ) $ (354 ) $ (79,792 ) Other comprehensive income (loss) before reclassifications 5,853 1,336 (489 ) 47 6,747 Amounts reclassified from AOCI — (79 ) 243 — 164 Net current-period other comprehensive income (loss) 5,853 1,257 (246 ) 47 6,911 Balance as of March 30, 2019 $ (48,404 ) $ 1,043 $ (25,213 ) $ (307 ) $ (72,881 ) For the Quarter Ended March 31, 2018 (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Derivatives Pension/OPEB Liability Adjustment Attributable to Unconsol. Affiliates Total Balance as of December 30, 2017 $ (38,163 ) $ 847 $ (20,610 ) $ 6,870 $ (51,056 ) Other comprehensive income (loss) before reclassifications 4,800 (770 ) (570 ) (401 ) 3,059 Amounts reclassified from AOCI — (292 ) 119 — (173 ) Net current-period other comprehensive income (loss) 4,800 (1,062 ) (451 ) (401 ) 2,886 Reclassification of stranded effects of the Act — 112 (1,018 ) 1,462 556 Balance as of March 31, 2018 $ (33,363 ) $ (103 ) $ (22,079 ) $ 7,931 $ (47,614 ) Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended (In thousands) March 30, 2019 March 31, 2018 Affected line item Unrealized gains on derivative commodity contracts $ (96 ) $ (365 ) Cost of goods sold 17 73 Income tax expense $ (79 ) $ (292 ) Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 296 $ 141 Other income, net (53 ) (22 ) Income tax benefit $ 243 $ 119 Net of tax and noncontrolling interests |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 3 Months Ended |
Mar. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted and Issued Accounting Standards | Adopted In July 2018, the Financial Accounting Standards Board (FASB) issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements and ASU No. 2018-10, Codification Improvements to Topic 842, Leases . The ASUs clarify how to apply certain aspects of the new leasing standard, ASC 842. ASC 842 requires an entity to recognize a right-of-use asset and lease liability for each lease with a term of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a financing or operating lease. The guidance also requires certain quantitative and qualitative disclosures about leasing arrangements. The Company adopted the ASU during the first quarter of 2019 using a modified retrospective approach and applied the transition provisions at the beginning of the fiscal year. Financial results reported in periods prior to 2018 are unchanged. The Company elected a package of practical expedients, which among other things, does not require the reassessment of lease classification. The Company does not separate lease and non-lease components of contracts. The Company implemented a system to identify its entire population of leases and tested the population for completeness. As of the effective date, the Company recognized noncurrent right-of-use assets of $30.8 million and corresponding current and noncurrent lease liabilities of $4.9 million and $26.6 million , respectively. Issued In August 2018, the FASB issued ASU No. 2018-14, Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans . For employers that sponsor defined benefit pension and/or other postretirement benefit plans, the ASU eliminates requirements for certain disclosures that are no longer considered cost beneficial, requires new disclosures related to the weighted-average interest crediting rate for cash balance plans and explanations for significant gains and losses related to changes in benefit obligations, and clarifies the requirements for entities that provide aggregate disclosures for two or more plans. The ASU will be effective for the annual period beginning in 2020. The updated guidance requires retrospective adoption, and early adoption is permitted. The Company does not expect the adoption of the ASU to have a material impact on its Condensed Consolidated Financial Statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . The ASU eliminates requirements to disclose the amount and reasons for transfers between level 1 and level 2 of the fair value hierarchy, but requires public companies to disclose changes in unrealized gains and losses for the period included in other comprehensive income (OCI) for recurring level 3 fair value measurements or instruments held at the end of the reporting period and the range and weighted average used to develop significant unobservable inputs for level 3 fair value measurements. The ASU will be effective for interim and annual periods beginning in 2020. An entity is permitted to early adopt either the entire standard or only the provisions that eliminate or modify requirements, and can elect to early adopt in interim periods. The guidance on changes in unrealized gains and losses for the period included in OCI for recurring level 3 measurements, the range and weighted average of significant unobservable inputs used to develop level 3 fair value measurements, and the narrative description of measurement uncertainty is applied prospectively. All other amendments should be applied retrospectively. The Company does not expect the adoption of the ASU to have a material impact on its Condensed Consolidated Financial Statements. |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Business Combinations [Abstract] | |
Summary of Condensed Pro Forma Consolidated Results of Operations as if Acquisition Occurred at Beginning of Period | The following table presents condensed pro forma consolidated results of operations as if the ATCO acquisition has occurred at the beginning of 2018. The pro forma information does not purport to be indicative of the results that would have been obtained if the operations had actually been combined during the periods presented and is not necessarily indicative of operating results to be expected in future periods. The most significant pro forma adjustments to the historical results of operations relate to the application of purchase accounting and the financing structure. For the Quarter Ended (In thousands, except per share data) March 31, 2018 Net sales $ 681,331 Net income 26,463 Basic earnings per share $ 0.47 Diluted earnings per share 0.46 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | Summarized segment information is as follows: For the Quarter Ended March 30, 2019 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 376,492 $ 150,875 $ 89,834 $ (5,420 ) $ 611,781 Cost of goods sold 324,796 126,699 66,829 (6,931 ) 511,393 Depreciation and amortization 5,550 1,844 2,313 848 10,555 Selling, general, and administrative expense 17,897 3,145 8,306 11,305 40,653 Operating income 28,249 19,187 12,386 (10,642 ) 49,180 Interest expense (6,954 ) Other loss, net (172 ) Income before income taxes $ 42,054 For the Quarter Ended March 31, 2018 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 430,964 $ 177,332 $ 36,063 $ (4,299 ) $ 640,060 Cost of goods sold 372,895 149,423 27,286 (3,934 ) 545,670 Depreciation and amortization 5,878 1,903 621 1,054 9,456 Selling, general, and administrative expense 19,242 3,373 2,609 8,833 34,057 Asset impairment — — — 3,469 3,469 Operating income 32,949 22,633 5,547 (13,721 ) 47,408 Interest expense (5,909 ) Other income, net 560 Income before income taxes $ 42,059 |
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 March 30, 2019 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 307,521 $ — $ — $ 307,521 Brass rod and forgings — 115,924 — 115,924 OEM components, tube & assemblies 7,283 13,037 37,243 57,563 Valves and plumbing specialties 61,688 — — 61,688 Other — 21,914 52,591 74,505 376,492 150,875 89,834 617,201 Intersegment sales (5,420 ) Net sales $ 611,781 For the Quarter Ended March 31, 2018 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 358,091 $ — $ — $ 358,091 Brass rod and forgings — 136,548 — 136,548 OEM components, tube & assemblies 7,062 15,067 36,063 58,192 Valves and plumbing specialties 65,811 — — 65,811 Other — 25,717 — 25,717 430,964 177,332 36,063 644,359 Intersegment sales (4,299 ) Net sales $ 640,060 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | (In thousands) March 30, December 29, Cash & cash equivalents $ 97,596 $ 72,616 Restricted cash included within other current assets 1,302 4,414 Restricted cash included within other assets 108 108 Total cash, cash equivalents, and restricted cash $ 99,006 $ 77,138 |
Restrictions on Cash and Cash Equivalents | (In thousands) March 30, December 29, Cash & cash equivalents $ 97,596 $ 72,616 Restricted cash included within other current assets 1,302 4,414 Restricted cash included within other assets 108 108 Total cash, cash equivalents, and restricted cash $ 99,006 $ 77,138 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | (In thousands) March 30, December 29, Raw materials and supplies $ 101,420 $ 89,641 Work-in-process 60,356 58,643 Finished goods 190,033 188,506 Valuation reserves (6,959 ) (6,995 ) Inventories $ 344,850 $ 329,795 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
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 March 30, December 29, Balance Sheet Location March 30, December 29, Commodity contracts - gains Other current assets $ 1,366 $ 88 Other current liabilities $ — $ 103 Commodity contracts - losses Other current assets (24 ) (1 ) Other current liabilities (90 ) (1,382 ) Total derivatives (1) $ 1,342 $ 87 $ (90 ) $ (1,279 ) (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 (In thousands) Location March 30, 2019 March 31, 2018 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 on commodity contracts (nonqualifying) Cost of goods sold 1,442 6,126 |
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 March 30, 2019 (In thousands) Gain (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 $ 1,352 Cost of goods sold $ (79 ) Other (16 ) Other — Total $ 1,336 Total $ (79 ) Changes recognized in and reclassified from AOCI (continued): For the Quarter Ended March 31, 2018 (In thousands) (Loss) Gain 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 $ (795 ) Cost of goods sold $ (292 ) Other 25 Other — Total $ (770 ) Total $ (292 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Leases [Abstract] | |
Supplemental Information Regarding Operating Leases | The following table includes supplemental information with regards to the Company’s operating leases: (In thousands, except lease term and discount rate) March 30, 2019 Operating lease right-of-use assets $ 29,515 Current portion of operating lease liabilities 4,737 Noncurrent operating lease liabilities 25,437 Total operating lease liabilities $ 30,174 Weighted average discount rate 4.13 % Weighted average remaining lease term (in years) 9.32 |
Schedule of Operating Lease Cost and Payments | The following table presents certain information related to operating lease costs and cash paid during the quarter. (In thousands) March 30, 2019 Operating lease costs $ 1,627 Short term lease costs 1,490 Total lease costs $ 3,117 Cash paid for amounts included in the measurement of lease liabilities $ 1,585 |
Schedule of Maturities of Operating Leases | Maturities of the Company’s operating leases are as follows: (In thousands) March 30, 2019 2019 $ 5,976 2020 5,343 2021 4,383 2022 3,661 2023 2,635 2024 and thereafter 15,361 Total lease payments 37,359 Less imputed interest (7,185 ) Total lease obligations 30,174 Less current obligations (4,737 ) Noncurrent lease obligations $ 25,437 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
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) March 30, December 29, Current assets $ 200,129 $ 228,214 Noncurrent assets 107,349 114,257 Current liabilities 161,863 175,371 Noncurrent liabilities 62,814 57,216 For the Quarter Ended (In thousands) March 30, 2019 March 31, 2018 Net sales $ 113,327 $ 124,100 Gross profit 8,006 12,100 Net loss (29,207 ) (18,331 ) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
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 (In thousands) March 30, 2019 March 31, 2018 Pension benefits: Service cost $ — $ 24 Interest cost 1,467 1,493 Expected return on plan assets (2,076 ) (2,289 ) Amortization of net loss 530 349 Net periodic benefit income $ (79 ) $ (423 ) Other benefits: Service cost $ 64 $ 60 Interest cost 153 148 Amortization of prior service credit (226 ) (226 ) Amortization of net (gain) loss (8 ) 18 Net periodic benefit income $ (17 ) $ — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 30, 2019 | |
Equity [Abstract] | |
Changes in AOCI by Component, Net of Taxes and Noncontrolling Interest | The following tables provide changes in AOCI by component, net of taxes and noncontrolling interests (amounts in parentheses indicate debits to AOCI): For the Quarter Ended March 30, 2019 (In thousands) Cumulative Translation Adjustment Unrealized (Loss) Gain on Derivatives Pension/OPEB Liability Adjustment Attributable to Unconsol. Affiliates Total Balance as of December 29, 2018 $ (54,257 ) $ (214 ) $ (24,967 ) $ (354 ) $ (79,792 ) Other comprehensive income (loss) before reclassifications 5,853 1,336 (489 ) 47 6,747 Amounts reclassified from AOCI — (79 ) 243 — 164 Net current-period other comprehensive income (loss) 5,853 1,257 (246 ) 47 6,911 Balance as of March 30, 2019 $ (48,404 ) $ 1,043 $ (25,213 ) $ (307 ) $ (72,881 ) For the Quarter Ended March 31, 2018 (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Derivatives Pension/OPEB Liability Adjustment Attributable to Unconsol. Affiliates Total Balance as of December 30, 2017 $ (38,163 ) $ 847 $ (20,610 ) $ 6,870 $ (51,056 ) Other comprehensive income (loss) before reclassifications 4,800 (770 ) (570 ) (401 ) 3,059 Amounts reclassified from AOCI — (292 ) 119 — (173 ) Net current-period other comprehensive income (loss) 4,800 (1,062 ) (451 ) (401 ) 2,886 Reclassification of stranded effects of the Act — 112 (1,018 ) 1,462 556 Balance as of March 31, 2018 $ (33,363 ) $ (103 ) $ (22,079 ) $ 7,931 $ (47,614 ) |
Reclassification Adjustments Out of AOCI | Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended (In thousands) March 30, 2019 March 31, 2018 Affected line item Unrealized gains on derivative commodity contracts $ (96 ) $ (365 ) Cost of goods sold 17 73 Income tax expense $ (79 ) $ (292 ) Net of tax and noncontrolling interests Amortization of net loss and prior service cost on employee benefit plans $ 296 $ 141 Other income, net (53 ) (22 ) Income tax benefit $ 243 $ 119 Net of tax and noncontrolling interests |
Recent Accounting Standards - A
Recent Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Jan. 01, 2019 | Dec. 29, 2018 |
Accounting Changes and Error Corrections [Abstract] | |||
Operating lease right-of-use assets | $ 29,515 | $ 30,800 | $ 0 |
Current portion of operating lease liabilities | 4,737 | 4,900 | 0 |
Noncurrent operating lease liabilities | $ 25,437 | $ 26,600 | $ 0 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Millions | Jul. 02, 2018 | Mar. 31, 2018 | Mar. 30, 2019 | Dec. 29, 2018 |
ATCO [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred net of working capital adjustments | $ 156.7 | |||
Cash portion of acquisition price | 151.4 | |||
Maximum possible contingent consideration | 12 | |||
Fair value of assets acquired | 137.9 | |||
Fair value of property, plant and equipment acquired | 83.1 | |||
Fair value of inventories acquired | 31.7 | |||
Fair value of accounts receivable acquired | 21.8 | |||
Fair value of other current assets acquired | 1.1 | |||
Fair value of other assets acquired | 0.2 | |||
Fair value of liabilities acquired | 20.4 | |||
Fair value of accounts payable acquired | 8.1 | |||
Fair value of other current liabilities acquired | 10.2 | |||
Fair value of long-term debt acquired | 2.1 | |||
Tax-deductible goodwill | 17.8 | |||
Fair value of intangible assets acquired | $ 21.4 | |||
Revenues of acquired entity for last annual period | $ 45.5 | $ 90 | ||
Die-Mold [Member] | ||||
Business Acquisition [Line Items] | ||||
Consideration transferred net of working capital adjustments | $ 13.6 | |||
Cash portion of acquisition price | 12.4 | |||
Maximum possible contingent consideration | 2.3 | |||
Fair value of assets acquired | 7.1 | |||
Fair value of property, plant and equipment acquired | 3.3 | |||
Fair value of inventories acquired | 1.8 | |||
Fair value of accounts receivable acquired | 1.7 | |||
Fair value of other current assets acquired | 0.3 | |||
Fair value of liabilities acquired | 2.9 | |||
Fair value of accounts payable acquired | 0.7 | |||
Fair value of other current liabilities acquired | 0.2 | |||
Fair value of deferred taxes acquired | 2 | |||
Allocation to non-deductible goodwill and intangible assets | $ 9.4 |
Acquisitions - Condensed Pro Fo
Acquisitions - Condensed Pro Forma Consolidated Results of Operations (Details) - ATCO [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net sales | $ | $ 681,331 |
Net income | $ | $ 26,463 |
Basic earnings per share (in dollars per share) | $ / shares | $ 0.47 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 0.46 |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Summary of segment information [Abstract] | ||
Net sales | $ 611,781 | $ 640,060 |
Cost of goods sold | 511,393 | 545,670 |
Depreciation and amortization | 10,555 | 9,456 |
Selling, general, and administrative expense | 40,653 | 34,057 |
Asset impairment | 0 | 3,469 |
Operating income | 49,180 | 47,408 |
Interest expense | (6,954) | (5,909) |
Other income (expense), net | (172) | 560 |
Income before income taxes | 42,054 | 42,059 |
Operating Segments [Member] | ||
Summary of segment information [Abstract] | ||
Net sales | 617,201 | 644,359 |
Operating Segments [Member] | Piping Systems [Member] | ||
Summary of segment information [Abstract] | ||
Net sales | 376,492 | 430,964 |
Cost of goods sold | 324,796 | 372,895 |
Depreciation and amortization | 5,550 | 5,878 |
Selling, general, and administrative expense | 17,897 | 19,242 |
Asset impairment | 0 | |
Operating income | 28,249 | 32,949 |
Operating Segments [Member] | Industrial Metals [Member] | ||
Summary of segment information [Abstract] | ||
Net sales | 150,875 | 177,332 |
Cost of goods sold | 126,699 | 149,423 |
Depreciation and amortization | 1,844 | 1,903 |
Selling, general, and administrative expense | 3,145 | 3,373 |
Asset impairment | 0 | |
Operating income | 19,187 | 22,633 |
Operating Segments [Member] | Climate [Member] | ||
Summary of segment information [Abstract] | ||
Net sales | 89,834 | 36,063 |
Cost of goods sold | 66,829 | 27,286 |
Depreciation and amortization | 2,313 | 621 |
Selling, general, and administrative expense | 8,306 | 2,609 |
Asset impairment | 0 | |
Operating income | 12,386 | 5,547 |
Corporate and Eliminations [Member] | ||
Summary of segment information [Abstract] | ||
Net sales | (5,420) | (4,299) |
Cost of goods sold | (6,931) | (3,934) |
Depreciation and amortization | 848 | 1,054 |
Selling, general, and administrative expense | 11,305 | 8,833 |
Asset impairment | 3,469 | |
Operating income | $ (10,642) | $ (13,721) |
Segment Information - Net Sales
Segment Information - Net Sales by Major Product Line (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ 611,781 | $ 640,060 |
Operating Segments [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 617,201 | 644,359 |
Operating Segments [Member] | Piping Systems [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 376,492 | 430,964 |
Operating Segments [Member] | Industrial Metals [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 150,875 | 177,332 |
Operating Segments [Member] | Climate [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 89,834 | 36,063 |
Operating Segments [Member] | Tube and fittings [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 307,521 | 358,091 |
Operating Segments [Member] | Tube and fittings [Member] | Piping Systems [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 307,521 | 358,091 |
Operating Segments [Member] | Tube and fittings [Member] | Industrial Metals [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 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 |
Operating Segments [Member] | Brass rod and forgings [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 115,924 | 136,548 |
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 |
Operating Segments [Member] | Brass rod and forgings [Member] | Industrial Metals [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 115,924 | 136,548 |
Operating Segments [Member] | Brass rod and forgings [Member] | Climate [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 0 | 0 |
Operating Segments [Member] | OEM components, tube and assemblies [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 57,563 | 58,192 |
Operating Segments [Member] | OEM components, tube and assemblies [Member] | Piping Systems [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 7,283 | 7,062 |
Operating Segments [Member] | OEM components, tube and assemblies [Member] | Industrial Metals [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 13,037 | 15,067 |
Operating Segments [Member] | OEM components, tube and assemblies [Member] | Climate [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 37,243 | 36,063 |
Operating Segments [Member] | Valves and plumbing specialties [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 61,688 | 65,811 |
Operating Segments [Member] | Valves and plumbing specialties [Member] | Piping Systems [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 61,688 | 65,811 |
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 |
Operating Segments [Member] | Valves and plumbing specialties [Member] | Climate [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 0 | 0 |
Operating Segments [Member] | Other products [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 74,505 | 25,717 |
Operating Segments [Member] | Other products [Member] | Piping Systems [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 0 | 0 |
Operating Segments [Member] | Other products [Member] | Industrial Metals [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 21,914 | 25,717 |
Operating Segments [Member] | Other products [Member] | Climate [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | 52,591 | 0 |
Intersegment Sales [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net sales | $ (5,420) | $ (4,299) |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 | Mar. 31, 2018 | Dec. 30, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 97,596 | $ 72,616 | ||
Restricted cash included within other current assets | 1,302 | 4,414 | ||
Restricted cash included within other assets | 108 | 108 | ||
Total cash, cash equivalents, and restricted cash | $ 99,006 | $ 77,138 | $ 93,758 | $ 126,563 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 101,420 | $ 89,641 |
Work-in-process | 60,356 | 58,643 |
Finished goods | 190,033 | 188,506 |
Valuation reserves | (6,959) | (6,995) |
Inventories | $ 344,850 | $ 329,795 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Dec. 29, 2018 | |
Derivative [Line Items] | ||
Restricted cash in other current assets as collateral related to open derivative contracts | $ 500 | $ 3,600 |
Commodity Contracts [Member] | ||
Derivative [Line Items] | ||
Deferred net losses, net of tax, included in AOCI | 911 | |
Cash Flow Hedging [Member] | Commodity Contracts [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Open option contracts written, at fair value | $ 32,000 | |
Time period for open copper future contract purchases | 14 months | |
Fair value of future contracts with net loss position | $ 1,300 | |
Fair Value Hedging [Member] | Commodity Contracts [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Fair value of future contracts with net loss position | (90) | |
Open future contracts to sell copper | $ 2,600 | |
Time period for open copper future contract sales | 4 months |
Financial Instruments - Summary
Financial Instruments - Summary of Location and Fair Value (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Mar. 30, 2019 | Dec. 29, 2018 |
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | $ 1,342 | $ 87 |
Total derivative liabilities | (90) | (1,279) |
Other Current Assets [Member] | Commodity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other current assets: Gain positions | 1,366 | 88 |
Other current assets: Loss positions | (24) | (1) |
Other Current Liabilities [Member] | Commodity Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other current liability: Gain positions | 0 | 103 |
Other current liability: Loss positions | $ (90) | $ (1,382) |
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 | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Commodity Contracts [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on the derivatives in designated and qualifying fair value hedges | $ 0 | $ 391 |
Commodity Contracts [Member] | Not Designated as Hedging Instrument [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain on commodity contracts (nonqualifying) | 1,442 | 6,126 |
Inventories [Member] | Fair Value Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on the derivatives in designated and qualifying fair value hedges | $ 0 | $ (385) |
Financial Instruments - Amounts
Financial Instruments - Amounts Recognized in and Reclassified from AOCI (Details) - Cash Flow Hedging [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | $ 1,336 | $ (770) |
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | (79) | (292) |
Commodity Contracts [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | 1,352 | (795) |
Commodity Contracts [Member] | Cost of Goods Sold [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | (79) | (292) |
Other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax | (16) | 25 |
(Gain) Loss Reclassified from AOCI (Effective Portion), Net of Tax | $ 0 | $ 0 |
Leases - Summary of Supplementa
Leases - Summary of Supplemental Operating Lease Information (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Jan. 01, 2019 | Dec. 29, 2018 |
Lessee, Lease, Description [Line Items] | |||
Operating lease renewal term | 5 years | ||
Weighted average remaining lease term (in years) | 9 years 3 months 26 days | ||
Operating lease right-of-use assets | $ 29,515 | $ 30,800 | $ 0 |
Current portion of operating lease liabilities | 4,737 | 4,900 | 0 |
Noncurrent operating lease liabilities | 25,437 | $ 26,600 | $ 0 |
Total operating lease liabilities | $ 30,174 | ||
Weighted average discount rate (as a percent) | 4.13% | ||
Minimum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term (in years) | 1 year | ||
Maximum [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Weighted average remaining lease term (in years) | 15 years |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Cost (Details) $ in Thousands | 3 Months Ended |
Mar. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating lease costs | $ 1,627 |
Short term lease costs | 1,490 |
Total lease costs | 3,117 |
Cash paid for amounts included in the measurement of lease liabilities | $ 1,585 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Lease Payments (Details) - USD ($) $ in Thousands | Mar. 30, 2019 | Jan. 01, 2019 | Dec. 29, 2018 |
Leases [Abstract] | |||
2019 | $ 5,976 | ||
2020 | 5,343 | ||
2021 | 4,383 | ||
2022 | 3,661 | ||
2023 | 2,635 | ||
2024 and thereafter | 15,361 | ||
Total lease payments | 37,359 | ||
Less imputed interest | (7,185) | ||
Total operating lease liabilities | 30,174 | ||
Less current obligations | (4,737) | $ (4,900) | $ 0 |
Noncurrent lease obligations | $ 25,437 | $ 26,600 | $ 0 |
Investments in Unconsolidated_3
Investments in Unconsolidated Affiliates - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 39 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | Mar. 30, 2019 | |
Schedule of Equity Method Investments [Line Items] | |||
Net loss | $ 29,207 | $ 18,331 | |
Tecumseh Products Holdings LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in the joint venture, ownership percentage | 50.00% | 50.00% | |
Net loss | $ 14,600 | 6,200 | |
Second Unconsolidated Affiliate [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in the joint venture, ownership percentage | 50.00% | 50.00% | |
Mueller Middle East [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Interest in the joint venture, ownership percentage | 40.00% | 40.00% | |
Net loss | $ 800 | 1,100 | |
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 |
Investments in Unconsolidated_4
Investments in Unconsolidated Affiliates - Summarized Financial Information Derived from Equity Method Investees' Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 30, 2019 | Mar. 31, 2018 | Dec. 29, 2018 | |
Balance sheet data [Abstract] | |||
Current assets | $ 200,129 | $ 228,214 | |
Noncurrent assets | 107,349 | 114,257 | |
Current liabilities | 161,863 | 175,371 | |
Noncurrent liabilities | 62,814 | $ 57,216 | |
Income statement data [Abstract] | |||
Net sales | 113,327 | $ 124,100 | |
Gross profit | 8,006 | 12,100 | |
Net loss | $ (29,207) | $ (18,331) |
Benefit Plans (Details)
Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Pension Benefits [Member] | ||
Components of net periodic benefit cost (income) [Abstract] | ||
Service cost | $ 0 | $ 24 |
Interest cost | 1,467 | 1,493 |
Expected return on plan assets | (2,076) | (2,289) |
Amortization of net (gain) loss | 530 | 349 |
Net periodic benefit income | (79) | (423) |
Other Benefits [Member] | ||
Components of net periodic benefit cost (income) [Abstract] | ||
Service cost | 64 | 60 |
Interest cost | 153 | 148 |
Amortization of prior service credit | (226) | (226) |
Amortization of net (gain) loss | (8) | 18 |
Net periodic benefit income | $ (17) | $ 0 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | Jul. 13, 2018USD ($) | Nov. 30, 2018USD ($) | Jan. 31, 2018USD ($)unilateral_administrative_orders | Nov. 27, 2015USD ($) | Mar. 30, 2019USD ($)property | Oct. 31, 2008Import_entry | Mar. 31, 2019USD ($) | Mar. 30, 2019potentially_responsible_party | Mar. 30, 2019smelter_site | Nov. 08, 2016USD ($) | Apr. 19, 2010 |
Loss Contingencies [Line Items] | |||||||||||
Term of guarantees | 1 year | ||||||||||
Payments required to be made under guarantees, maximum | $ 7,600,000 | ||||||||||
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 | ||||||||||
Maximum amount to be paid to fund discrimination claims | $ 1,000,000 | ||||||||||
Deepwater Horizon Economic and Property Damage Claim [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Amount awarded to the Company | $ 27,400,000 | ||||||||||
Gain contingency, legal and advisory fees, percent of total award amount | 20.00% | ||||||||||
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] | |||||||||||
Number of parties involved in settlement negotiations | potentially_responsible_party | 2 | ||||||||||
Estimated remediation costs, term | 18 years | ||||||||||
Amount 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 | $ 1,300,000 | |||||||||
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 | ||||||||||
Site contingency, additional reimbursement of past costs | $ 700,000 | ||||||||||
Site contingency, amount paid to date for reimbursement of costs | $ 400,000 | ||||||||||
Contingency charge | $ 5,700,000 | ||||||||||
Mueller Copper Tube Products, Inc. [Member] | Operating Properties [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated remediation costs, term | 7 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 | 1,700,000 | ||||||||||
Minimum [Member] | Mueller Copper Tube Products, Inc. [Member] | Operating Properties [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated remediation costs | 700,000 | ||||||||||
Maximum [Member] | Shasta Area Mine Sites [Member] | Non operating Properties [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated remediation costs | 17,500,000 | ||||||||||
Maximum [Member] | Lead Refinery Site [Member] | Non operating Properties [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated remediation costs | 2,100,000 | ||||||||||
Maximum [Member] | Mueller Copper Tube Products, Inc. [Member] | Operating Properties [Member] | |||||||||||
Loss Contingencies [Line Items] | |||||||||||
Estimated remediation costs | $ 1,100,000 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 23.00% | 18.00% |
Increase (decrease) in one-time transition tax liability | $ 1.5 | |
Provision for state income taxes, net of federal benefits | 1.1 | $ 1.2 |
Effective income tax rate reconciliation, other adjustments | 0.7 | 1.2 |
Adjustment to provisional tax calculation | $ 2.6 | |
Impact of investments in unconsolidated affiliates | $ 3.9 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | $ 563,260 | |
Total other comprehensive income, net | 7,115 | $ 3,063 |
Balance at end of year | 581,922 | |
Cumulative Translation Adjustment [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | (54,257) | (38,163) |
Other comprehensive income (loss) before reclassifications | 5,853 | 4,800 |
Amounts reclassified from AOCI | 0 | 0 |
Total other comprehensive income, net | 5,853 | 4,800 |
Reclassification of stranded effects of the Act | 0 | |
Balance at end of year | (48,404) | (33,363) |
Unrealized (Loss) Gain on Derivatives [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | (214) | 847 |
Other comprehensive income (loss) before reclassifications | 1,336 | (770) |
Amounts reclassified from AOCI | (79) | (292) |
Total other comprehensive income, net | 1,257 | (1,062) |
Reclassification of stranded effects of the Act | 112 | |
Balance at end of year | 1,043 | (103) |
Pension/OPEB Liability Adjustment [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | (24,967) | (20,610) |
Other comprehensive income (loss) before reclassifications | (489) | (570) |
Amounts reclassified from AOCI | 243 | 119 |
Total other comprehensive income, net | (246) | (451) |
Reclassification of stranded effects of the Act | (1,018) | |
Balance at end of year | (25,213) | (22,079) |
Attributable to Unconsolidated Affiliates [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | (354) | 6,870 |
Other comprehensive income (loss) before reclassifications | 47 | (401) |
Amounts reclassified from AOCI | 0 | 0 |
Total other comprehensive income, net | 47 | (401) |
Reclassification of stranded effects of the Act | 1,462 | |
Balance at end of year | (307) | 7,931 |
Total [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | (79,792) | (51,056) |
Other comprehensive income (loss) before reclassifications | 6,747 | 3,059 |
Amounts reclassified from AOCI | 164 | (173) |
Total other comprehensive income, net | 6,911 | 2,886 |
Reclassification of stranded effects of the Act | 556 | |
Balance at end of year | $ (72,881) | $ (47,614) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 30, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Cost of goods sold | $ 511,393 | $ 545,670 |
Income tax (benefit) expense | 9,546 | 7,395 |
Other income, net | 172 | (560) |
Net of tax and noncontrolling interests | (15,723) | (24,128) |
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 | (96) | (365) |
Income tax (benefit) expense | 17 | 73 |
Net of tax and noncontrolling interests | (79) | (292) |
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] | ||
Income tax (benefit) expense | (53) | (22) |
Other income, net | 296 | 141 |
Net of tax and noncontrolling interests | $ 243 | $ 119 |