Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Feb. 19, 2021 | Jun. 27, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 26, 2020 | ||
Current Fiscal Year End Date | --12-26 | ||
Document Transition Report | false | ||
Entity File Number | 1-6770 | ||
Entity Registrant Name | MUELLER INDUSTRIES, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 25-0790410 | ||
Entity Address, Address Line One | 150 Schilling Boulevard | ||
Entity Address, Address Line Two | Suite 100 | ||
Entity Address, City or Town | Collierville | ||
Entity Address, State or Province | TN | ||
Entity Address, Postal Zip Code | 38017 | ||
City Area Code | 901 | ||
Local Phone Number | 753-3200 | ||
Title of 12(b) Security | Common Stock, $0.01 Par Value | ||
Trading Symbol | MLI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,346,053,993 | ||
Entity Common Stock, Shares Outstanding | 57,115,648 | ||
Documents Incorporated by Reference | Portions of the following document are incorporated by reference into this Report: Registrant’s Definitive Proxy Statement for the 2021 Annual Meeting of Stockholders, scheduled to be mailed on or about March 25, 2021 (Part III). | ||
Entity Central Index Key | 0000089439 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Statement [Abstract] | |||
Net sales | $ 2,398,043 | $ 2,430,616 | $ 2,507,878 |
Cost of goods sold | 1,966,161 | 2,035,610 | 2,150,400 |
Depreciation and amortization | 44,843 | 42,693 | 39,555 |
Selling, general, and administrative expense | 159,483 | 162,358 | 148,888 |
Litigation settlement, net | (22,053) | 0 | 0 |
Gain on sale of assets, net | 0 | (963) | (253) |
Impairment charges | 3,771 | 0 | 0 |
Insurance recovery | 0 | (485) | (3,681) |
Operating income | 245,838 | 191,403 | 172,969 |
Interest expense | (19,247) | (25,683) | (25,199) |
Environmental expense | (4,454) | (1,321) | (1,320) |
Pension plan termination expense | (17,835) | 0 | 0 |
Other income, net | 4,887 | 1,684 | 3,967 |
Income before income taxes | 209,189 | 166,083 | 150,417 |
Income tax expense | (55,321) | (35,257) | (30,952) |
Loss from unconsolidated affiliates, net of foreign tax | (10,219) | (24,594) | (12,645) |
Consolidated net income | 143,649 | 106,232 | 106,820 |
Net income attributable to noncontrolling interests | (4,156) | (5,260) | (2,361) |
Net income attributable to Mueller Industries, Inc. | $ 139,493 | $ 100,972 | $ 104,459 |
Weighted average shares for basic earnings per share (in shares) | 55,821 | 55,798 | 56,782 |
Effect of dilutive stock-based awards (in shares) | 569 | 545 | 487 |
Adjusted weighted average shares for diluted earnings per share (in shares) | 56,390 | 56,343 | 57,269 |
Basic earnings per share (in dollars per share) | $ 2.50 | $ 1.81 | $ 1.84 |
Diluted earnings per share (in dollars per share) | 2.47 | 1.79 | 1.82 |
Dividends per share (in dollars per share) | $ 0.40 | $ 0.40 | $ 0.40 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Consolidated net income | $ 143,649 | $ 106,232 | $ 106,820 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation | 10,350 | 7,409 | (16,876) |
Net change with respect to derivative instruments and hedging activities, net of tax of $(146), $(195), and $318 | 508 | 690 | (1,173) |
Net change in pension and postretirement obligation adjustments, net of tax of $(1,560), $(671), and $670 | 4,652 | 3,112 | (3,339) |
Attributable to unconsolidated affiliates, net of tax of $38, $244, and $2,522 | (132) | (839) | (8,686) |
Total other comprehensive income (loss), net | 15,378 | 10,372 | (30,074) |
Consolidated comprehensive income | 159,027 | 116,604 | 76,746 |
Comprehensive income attributable to noncontrolling interests | (5,647) | (4,610) | (1,579) |
Comprehensive income attributable to Mueller Industries, Inc. | $ 153,380 | $ 111,994 | $ 75,167 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Derivative instruments, tax | $ (146) | $ (195) | $ 318 |
Pension & OPEB obligations, tax | (1,560) | (671) | 670 |
Attributable to unconsolidated affiliates, tax | $ 38 | $ 244 | $ 2,522 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 119,075 | $ 97,944 |
Accounts receivable, less allowance for doubtful accounts of $1,538 in 2020 and $770 in 2019 | 357,532 | 269,943 |
Inventories | 315,002 | 292,107 |
Other current assets | 33,752 | 33,778 |
Total current assets | 825,361 | 693,772 |
Property, plant, and equipment, net | 376,572 | 363,128 |
Operating lease right-of-use assets | 29,301 | 26,922 |
Goodwill, net | 167,764 | 153,276 |
Intangible assets, net | 77,207 | 60,082 |
Investment in unconsolidated affiliates | 37,976 | 48,363 |
Other noncurrent assets | 14,387 | 25,397 |
Total Assets | 1,528,568 | 1,370,940 |
Current liabilities: | ||
Current portion of debt | 41,283 | 7,530 |
Accounts payable | 147,741 | 85,644 |
Accrued wages and other employee costs | 46,299 | 41,673 |
Current portion of operating lease liabilities | 6,259 | 5,250 |
Other current liabilities | 98,061 | 94,190 |
Total current liabilities | 339,643 | 234,287 |
Long-term debt, less current portion | 286,593 | 378,724 |
Pension liabilities | 13,552 | 9,126 |
Postretirement benefits other than pensions | 13,289 | 13,082 |
Environmental reserves | 21,256 | 19,972 |
Deferred income taxes | 16,842 | 21,094 |
Noncurrent operating lease liabilities | 21,602 | 22,388 |
Other noncurrent liabilities | 14,731 | 10,131 |
Total liabilities | 727,508 | 708,804 |
Mueller Industries, Inc. stockholders' equity: | ||
Preferred stock - $1.00 par value; shares authorized 5,000,000; none outstanding | 0 | 0 |
Common stock - $.01 par value; shares authorized 100,000,000; issued 80,183,004; outstanding 57,087,432 in 2020 and 56,949,246 in 2019 | 802 | 802 |
Additional paid-in capital | 280,051 | 278,609 |
Retained earnings | 1,019,694 | 903,070 |
Accumulated other comprehensive loss | (54,883) | (68,770) |
Treasury common stock, at cost | (468,919) | (470,243) |
Total Mueller Industries, Inc. stockholders' equity | 776,745 | 643,468 |
Noncontrolling interests | 24,315 | 18,668 |
Total equity | 801,060 | 662,136 |
Commitments and contingencies | 0 | 0 |
Total Liabilities and Equity | $ 1,528,568 | $ 1,370,940 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 1,538 | $ 770 |
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, issued (in shares) | 80,183,004 | 80,183,004 |
Common stock, outstanding (in shares) | 57,087,432 | 56,949,246 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Operating activities: | |||
Consolidated net income | $ 143,649 | $ 106,232 | $ 106,820 |
Reconciliation of consolidated net income to net cash provided by operating activities: | |||
Depreciation | 38,715 | 37,337 | 35,118 |
Amortization of intangibles | 6,128 | 5,356 | 4,437 |
Amortization of debt issuance costs | 319 | 318 | 318 |
Loss from unconsolidated affiliates | 10,219 | 24,594 | 12,645 |
Insurance proceeds - noncapital related | 0 | 485 | 2,306 |
Change in the fair value of contingent consideration | 0 | 3,625 | 0 |
Insurance recovery | 0 | (485) | (3,681) |
Stock-based compensation expense | 8,570 | 8,744 | 8,035 |
Provision for doubtful accounts receivable | 1,208 | (80) | (286) |
Non-cash pension plan termination expense | 11,642 | 0 | 0 |
Loss (gain) on disposals of assets | 132 | (963) | (253) |
Impairment charges | 3,771 | 0 | 0 |
Deferred income tax (benefit) expense | (4,046) | (428) | 170 |
Changes in assets and liabilities, net of effects of businesses acquired: | |||
Receivables | (76,404) | 6,585 | (11,056) |
Inventories | 5,207 | 39,561 | 27,512 |
Other assets | 20,609 | (15,639) | 14,353 |
Current liabilities | 74,097 | (7,076) | (15,680) |
Other liabilities | (1,142) | (7,944) | (14,769) |
Other, net | 2,399 | 322 | 1,903 |
Net cash provided by operating activities | 245,073 | 200,544 | 167,892 |
Investing activities: | |||
Proceeds from sale of assets, net of cash transferred | 181 | 3,240 | 18,703 |
Acquisition of businesses, net of cash acquired | (72,648) | 3,465 | (167,677) |
Capital expenditures | (43,885) | (31,162) | (38,481) |
Issuance of notes receivable | (9,270) | 0 | 0 |
Insurance proceeds - capital related | 0 | 0 | 1,968 |
Investments in unconsolidated affiliates | 0 | (16,000) | (1,609) |
Net cash used in investing activities | (125,622) | (40,457) | (187,096) |
Financing activities: | |||
Dividends paid to stockholders of Mueller Industries, Inc. | (22,341) | (22,325) | (22,705) |
Dividends paid to noncontrolling interests | 0 | (846) | (592) |
Issuance of long-term debt | 190,038 | 100,658 | 204,233 |
Repayments of long-term debt | (246,898) | (206,718) | (172,002) |
Repayment of debt by consolidated joint ventures, net | (259) | (4,305) | (2,915) |
Repurchase of common stock | (5,574) | (1,763) | (33,562) |
Payment of contingent consideration | (7,000) | (3,170) | 0 |
Net cash used to settle stock-based awards | (230) | (1,225) | (726) |
Net cash used in financing activities | (92,264) | (139,694) | (28,269) |
Effect of exchange rate changes on cash | 2,147 | 511 | (1,952) |
Increase (decrease) in cash, cash equivalents, and restricted cash | 29,334 | 20,904 | (49,425) |
Cash, cash equivalents, and restricted cash at the beginning of the year | 98,042 | 77,138 | 126,563 |
Cash, cash equivalents, and restricted cash at the end of the year | $ 127,376 | $ 98,042 | $ 77,138 |
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) | (57) | ||||||
Issuance of shares under incentive stock option plans | (278) | $ 1,136 | |||||
Stock-based compensation expense | 8,035 | ||||||
Issuance of restricted stock (in shares) | (273) | ||||||
Issuance of restricted stock | (5,493) | $ 5,493 | |||||
Net income attributable to Mueller Industries, Inc. | $ 104,459 | 104,459 | |||||
Dividends paid or payable to stockholders of Mueller Industries, Inc. | (23,009) | ||||||
Reclassification of stranded effects of the Act | (556) | 556 | |||||
Other adjustments | 340 | ||||||
Total other comprehensive income (loss) attributable to Mueller Industries, Inc. | (30,074) | (29,292) | |||||
Repurchase of common stock (in shares) | 1,437 | ||||||
Repurchase of common stock | $ (35,146) | ||||||
Dividends paid to noncontrolling interests | 592 | (592) | |||||
Net income attributable to noncontrolling interests | (2,361) | 2,361 | |||||
Foreign currency translation | (16,876) | (782) | |||||
Balance at end of year (in shares) at Dec. 29, 2018 | 80,183 | 23,480 | |||||
Balance at end of year at Dec. 29, 2018 | $ 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) | (94) | ||||||
Issuance of shares under incentive stock option plans | (644) | $ 1,908 | |||||
Stock-based compensation expense | 8,744 | ||||||
Issuance of restricted stock (in shares) | (314) | ||||||
Issuance of restricted stock | (6,340) | $ 6,340 | |||||
Net income attributable to Mueller Industries, Inc. | 100,972 | 100,972 | |||||
Dividends paid or payable to stockholders of Mueller Industries, Inc. | (22,639) | ||||||
Total other comprehensive income (loss) attributable to Mueller Industries, Inc. | 10,372 | 11,022 | |||||
Repurchase of common stock (in shares) | 162 | ||||||
Repurchase of common stock | $ (4,251) | ||||||
Dividends paid to noncontrolling interests | 846 | (846) | |||||
Net income attributable to noncontrolling interests | (5,260) | 5,260 | |||||
Foreign currency translation | 7,409 | (650) | |||||
Balance at end of year (in shares) at Dec. 28, 2019 | 80,183 | 23,234 | |||||
Balance at end of year at Dec. 28, 2019 | 662,136 | $ 802 | 278,609 | 903,070 | (68,770) | $ (470,243) | 18,668 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Issuance of shares under incentive stock option plans (in shares) | (71) | ||||||
Issuance of shares under incentive stock option plans | (745) | $ 515 | |||||
Stock-based compensation expense | 8,570 | ||||||
Issuance of restricted stock (in shares) | (315) | ||||||
Issuance of restricted stock | (6,383) | $ 6,383 | |||||
Net income attributable to Mueller Industries, Inc. | 139,493 | 139,493 | |||||
Dividends paid or payable to stockholders of Mueller Industries, Inc. | (22,869) | ||||||
Total other comprehensive income (loss) attributable to Mueller Industries, Inc. | 15,378 | 13,887 | |||||
Repurchase of common stock (in shares) | 248 | ||||||
Repurchase of common stock | $ (5,574) | ||||||
Dividends paid to noncontrolling interests | 0 | 0 | |||||
Net income attributable to noncontrolling interests | (4,156) | 4,156 | |||||
Foreign currency translation | 10,350 | 1,491 | |||||
Balance at end of year (in shares) at Dec. 26, 2020 | 80,183 | 23,096 | |||||
Balance at end of year at Dec. 26, 2020 | $ 801,060 | $ 802 | $ 280,051 | $ 1,019,694 | $ (54,883) | $ (468,919) | $ 24,315 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations The principal business of Mueller Industries, Inc. is the manufacture and sale of copper tube and fittings; line sets; PEX plastic tube and fittings; steel nipples; brass and copper alloy rod, bar, and shapes; aluminum and brass forgings; aluminum impact extrusions; compressed gas valves; refrigeration valves and fittings; fabricated tubular products; pressure vessels; coaxial heat exchangers; insulated flexible duct systems; brazed manifolds; headers; and distributor assemblies. The Company also resells brass and plastic plumbing valves, plastic fittings, malleable iron fittings, faucets, and plumbing specialty products. The Company markets its products to the HVAC, plumbing, refrigeration, hardware, and other industries. Mueller’s operations are located throughout the United States and in Canada, Mexico, Great Britain, South Korea, the Middle East, and China. Fiscal Years The Company’s fiscal year consists of 52 weeks ending on the last Saturday of December. These dates were December 26, 2020, December 28, 2019, and December 29, 2018. Basis of Presentation The Consolidated Financial Statements include the accounts of Mueller Industries, Inc. and its majority-owned subsidiaries. The noncontrolling interest represents a private ownership interest of 40 percent of Jungwoo Metal Ind. Co., LTD (Jungwoo-Mueller). Revenue Recognition Given the nature of the Company’s business and product offerings, sales transactions with customers are generally comprised of a single performance obligation that involves delivery of the products identified in the contracts with customers. Performance obligations are generally satisfied at the point in time of shipment and payment is generally due within sixty days. Variable consideration is estimated for future rebates on certain product lines and product returns. The Company records variable consideration as an adjustment to the transaction price in the period it is incurred. Since variable consideration is settled within a short period of time, the time value of money is not significant. The cost of shipping product to customers is expensed as incurred as a component of cost of goods sold. The Company’s Domestic Piping Systems Group engages in certain transactions where it acts as an agent. Revenue from these transactions is recorded on a net basis. See “ Note 3 – Segment Information ” for additional information on disaggregation of revenue from contracts with customers. Acquisitions Accounting for acquisitions requires the Company to recognize separately from goodwill the assets acquired and liabilities assumed at their acquisition date fair values. Goodwill is measured as the excess of the purchase price over the net amount allocated to the identifiable assets acquired and liabilities assumed. While management uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. The operating results generated by the acquired businesses are included in the Consolidated Statements of Income from their respective dates of acquisition. Acquisition related costs are expensed as incurred. See “ Note 2 – Acquisitions ” for additional information. Cash Equivalents and Restricted Cash Temporary investments with original maturities of three months or less are considered to be cash equivalents. These investments are stated at cost. At December 26, 2020 and December 28, 2019, temporary investments consisted of money market mutual funds, commercial paper, bank repurchase agreements, and U.S. and foreign government securities totaling approximately $13.3 million and $0.5 million, respectively. 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. See “ Note 4 – Cash, Cash Equivalents, and Restricted Cash ” for additional information. Allowance for Doubtful Accounts The Company routinely grants credit to many of its customers without collateral. The risk of credit loss in trade receivables is substantially mitigated by the credit evaluation process. The Company provides an allowance for receivables that may not be fully collected. In circumstances where the Company is aware of a customer’s inability to meet their financial obligations (e.g., bankruptcy filings or substantial credit rating downgrades), it records an allowance for doubtful accounts against amounts due to reduce the net recognized receivable to the amount it believes most likely will be collected. For all other customers, the Company recognizes an allowance for doubtful accounts based on its historical collection experience and the impact of current economic conditions. If circumstances change (e.g., greater than expected defaults or an unexpected material change in a major customer’s ability to meet their financial obligations), the Company could change its estimate of the recoverability of amounts due by a material amount. Historically, credit losses have been within management’s expectations. The balance for uncollectible accounts was $1.5 million and $0.8 million as of December 26, 2020 and December 28, 2019, respectively. Inventories The Company’s inventories are valued at the lower-of-cost-or-market. The material component of its U.S. copper tube and copper fittings inventories is valued on a LIFO basis and the non-material components of U.S. copper tube and copper fittings inventories are valued on a FIFO basis. The material component of its U.K. and Canadian copper tube inventories are valued on a FIFO basis. The material component of its brass rod and forgings inventories are valued on a FIFO basis. Certain inventories are valued on an average cost basis. Elements of cost in finished goods inventory in addition to the cost of material include depreciation, amortization, utilities, maintenance, production wages, and transportation costs. The market price of copper cathode and scrap is subject to volatility. During periods when open market prices decline below net book value, the Company may need to provide an allowance to reduce the carrying value of its inventory. In addition, certain items in inventory may be considered obsolete and, as such, the Company may establish an allowance to reduce the carrying value of those items to their net realizable value. Changes in these estimates related to the value of inventory, if any, may result in a materially adverse impact on the Company’s reported financial position or results of operations. The Company recognizes the impact of any changes in estimates, assumptions, and judgments in income in the period in which it is determined. See “ Note 5 – Inventories ” for additional information. 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 The Company has certain vehicle leases that are financing; however, these leases are deemed immaterial for disclosure. See “ Note 8 – Leases ” for additional information. Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. Depreciation of buildings, machinery, and equipment is provided on the straight-line method over the estimated useful lives ranging from 20 to 40 years for buildings and five The Company continually evaluates these assets to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. See “ Note 9 – Property, Plant, and Equipment, Net ” for additional information. Goodwill Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Several factors give rise to goodwill in business acquisitions, such as the expected benefit from synergies of the combination and the existing workforce of the acquired business. Goodwill is evaluated annually for possible impairment as of the first day of the fourth quarter unless circumstances indicate the need to accelerate the timing of the evaluation. In the evaluation of goodwill impairment, management performs a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, management compares the fair value of a reporting unit with its carrying amount and will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. Fair value for the Company’s reporting units is determined using a combination of the income and market approaches (level 3 within the fair value hierarchy), incorporating market participant considerations and management’s assumptions on revenue growth rates, operating margins, discount rates and expected capital expenditures. The market approach measures the fair value of a business through the analysis of publicly traded companies or recent sales of similar businesses. The income approach uses a discounted cash flow model to estimate the fair value of reporting units based on expected cash flows (adjusted for capital investment required to support operations) and a terminal value. This cash flow stream is discounted to its present value to arrive at a fair value for each reporting unit. Future earnings are estimated using the Company’s most recent annual projections, applying a growth rate to future periods. Those projections are directly impacted by the condition of the markets in which the Company’s businesses participate. The discount rate selected for the reporting units is generally based on rates of return available for comparable companies at the date of valuation. Fair value determinations may include both internal and third-party valuations. See “ Note 10 – Goodwill and Other Intangible Assets ” for additional information. Investments in Unconsolidated Affiliates The Company owns a 50 percent interest in an unconsolidated affiliate that acquired Tecumseh Products Company (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 Consolidated Statements of Income. The Company’s proportionate share of the investees’ other comprehensive income (loss), net of income taxes, is recorded in the Consolidated Statements of Comprehensive Income and 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 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 Company also owns a 40 percent interest in Mueller Middle East BSC. The investments in unconsolidated affiliates are assessed periodically for impairment and written down when the carrying amount is not considered fully recoverable. See “ Note 11 – Investments in Unconsolidated Affiliates ” for additional information. Self-Insurance Accruals The Company is primarily self-insured for workers’ compensation claims and benefits paid under certain employee health care programs. Accruals are primarily based on estimated undiscounted cost of claims, which includes incurred but not reported claims, and are classified as accrued wages and other employee costs. Pension and Other Postretirement Benefit Plans The Company sponsors several qualified and nonqualified pension and other postretirement benefit plans in the U.S. and certain foreign locations. The Company recognizes the overfunded or underfunded status of the plans as an asset or liability in the Consolidated Balance Sheets with changes in the funded status recorded through comprehensive income in the year in which those changes occur. The obligations for these plans are determined by actuaries and affected by the assumptions, including discount rates, expected long-term return on plan assets for defined benefit pension plans, and certain employee-related factors, such as retirement age and mortality. The Company evaluates its assumptions periodically and makes adjustments as necessary. The expected return on plan assets is determined using the market value of plan assets. Differences between assumed and actual returns are amortized to the market value of assets on a straight-line basis over the average remaining service period of the plan participants using the corridor approach. The corridor approach defers all actuarial gains and losses resulting from variances between actual results and actuarial assumptions. These unrecognized gains and losses are amortized when the net gains and losses exceed 10 percent of the greater of the market value of the plan assets or the projected benefit obligation. The amount in excess of the corridor is amortized over the average remaining service period of the plan participants. For 2020, the average remaining service period for the pension plans was 11.5 years. See “ Note 13 – Benefit Plans ” for additional information. Environmental Reserves and Environmental Expenses The Company recognizes an environmental liability when it is probable the liability exists and the amount is reasonably estimable. The Company estimates the duration and extent of its remediation obligations based upon reports of outside consultants, internal and third party estimates and analyses of cleanup costs and ongoing monitoring costs, communications with regulatory agencies, and changes in environmental law. If the Company were to determine that its estimates of the duration or extent of its environmental obligations were no longer accurate, it would adjust environmental liabilities accordingly in the period that such determination is made. Estimated future expenditures for environmental remediation are not discounted to their present value. Environmental expenses that relate to ongoing operations are included as a component of cost of goods sold. Environmental expenses related to non-operating properties are presented below operating income in the Consolidated Statements of Income. See “ Note 14 – Commitments and Contingencies ” for additional information. Earnings Per Share Basic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share reflects the increase in weighted average common shares outstanding that would result from the assumed exercise of outstanding stock options and vesting of restricted stock awards calculated using the treasury stock method. There were approximately 10 thousand stock-based awards excluded from the computation of diluted earnings per share for the year ended December 26, 2020, because they were antidilutive. There were no awards excluded from the computation of diluted earnings per share for the year ended December 28, 2019. Income Taxes Deferred income tax assets and liabilities are recognized when differences arise between the treatment of certain items for financial statement and tax purposes. Realization of certain components of deferred tax assets is dependent upon the occurrence of future events. The Company records valuation allowances to reduce its deferred tax assets to the amount it believes is more likely than not to be realized. These valuation allowances can be impacted by changes in tax laws, changes to statutory tax rates, and future taxable income levels and are based on the Company’s judgment, estimates, and assumptions regarding those future events. In the event the Company was to determine that it would not be able to realize all or a portion of the net deferred tax assets in the future, it would increase the valuation allowance through a charge to income tax expense in the period that such determination is made. Conversely, if it was to determine that it would be able to realize its deferred tax assets in the future, in excess of the net carrying amounts, the Company would decrease the recorded valuation allowance through a decrease to income tax expense in the period that such determination is made. The Company provides for uncertain tax positions and the related interest and penalties, if any, based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. Tax benefits for uncertain tax positions that are recognized in the financial statements are measured as the largest amount of benefit, determined on a cumulative probability basis, that is more likely than not to be realized upon ultimate settlement. To the extent the Company prevails in matters for which a liability for an uncertain tax position is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. These estimates are highly subjective and could be affected by changes in business conditions and other factors. Changes in any of these factors could have a material impact on future income tax expense. See “ Note 15 – Income Taxes ” for additional information. Taxes Collected from Customers and Remitted to Governmental Authorities Taxes assessed by a governmental authority that are directly imposed on a revenue producing transaction between the Company and its customers, primarily value added taxes in foreign jurisdictions, are accounted for on a net (excluded from revenues and costs) basis. Stock-Based Compensation The Company has in effect stock incentive plans under which stock-based awards have been granted to certain employees and members of its Board of Directors. Stock-based compensation expense is recognized in the Consolidated Statements of Income as a component of selling, general, and administrative expense based on the grant date fair value of the awards. See “ Note 17 – Stock-Based Compensation ” for additional information. Concentrations of Credit and Market Risk Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers comprising the Company’s customer base, and their dispersion across different geographic areas and different industries, including HVAC, plumbing, refrigeration, hardware, automotive, OEMs, and others. The Company minimizes its exposure to base metal price fluctuations through various strategies. Generally, it prices an equivalent amount of copper raw material, under flexible pricing arrangements it maintains with its suppliers, at the time it determines the selling price of finished products to its customers. 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 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 accumulated other comprehensive income (AOCI), to the extent effective, until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivative instruments executed as economic hedges 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 Consolidated Balance Sheets and linking cash flow hedges to specific forecasted transactions or variability of cash flow. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the designated derivative instruments that are used in hedging transactions are highly effective in offsetting changes in cash flow or fair values of hedged items. When a derivative instrument is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable of occurring, hedge accounting is discontinued prospectively in accordance with the derecognition criteria for hedge accounting. The Company primarily executes derivative contracts with major financial institutions. These counterparties expose the Company to credit risk in the event of non-performance. The amount of such exposure is limited to the fair value of the contract plus the unpaid portion of amounts due to the Company pursuant to terms of the derivative instruments, if any. If a downgrade in the credit rating of these counterparties occurs, management believes that this exposure is mitigated by provisions in the derivative arrangements which allow for the legal right of offset of any amounts due to the Company from the counterparties with any amounts payable to the counterparties by the Company. As a result, management considers the risk of loss from counterparty default to be minimal. See “ Note 7 – Derivative Instruments and Hedging Activities ” for additional information. Fair Value of Financial Instruments The carrying amounts for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term maturity of these instruments. The fair value of long-term debt at December 26, 2020 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. Foreign Currency Translation For foreign subsidiaries for which the functional currency is not the U.S. dollar, balance sheet accounts are translated at exchange rates in effect at the end of the year and income statement accounts are translated at average exchange rates for the year. Translation gains and losses are included in equity as a component of AOCI. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in selling, general, and administrative expense in the Consolidated Statements of Income. Included in the Consolidated Statements of Income were net transaction losses of $0.5 million in 2020, gains of $0.2 million in 2019, and losses of $1.0 million in 2018. Use of and Changes in Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (U.S. GAAP) requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include but are not limited to: pension and other postretirement benefit plan obligations, tax liabilities, loss contingencies, litigation claims, environmental reserves, and impairment assessments of long-lived assets (including goodwill). Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Disclosure Framework- Measurement of Credit Losses on Financial Instruments . The ASU significantly changes the current incurred credit loss model under U.S. GAAP, which delays the recognition of credit losses until it is probable a loss has been incurred, to a current expected credit losses model which requires immediate recognition of management estimates of credit losses. The Company adopted the ASU during the first quarter of 2020 using a retrospective approach. The adoption of the ASU did not have a material impact on the Company’s Consolidated Financial Statements. 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 Company adopted the ASU during the first quarter of 2020 using a retrospective approach. The adoption of the ASU did not have a material impact on the Company’s 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 Company adopted the ASU during the first quarter of 2020. 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 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 26, 2020 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions 2020 Acquisitions Kessler On August 3, 2020, the Company entered into an asset purchase agreement with Wieland-Kessler LLC, whereby the Company purchased the Kessler distribution business, which included inventory, manufacturing equipment, and related assets. The total purchase price was $57.2 million in cash paid at closing. The Company treated this as a business combination. The acquired business, Kessler Sales and Distribution, LLC (Kessler), is a distributor of residential and commercial plumbing products. It is reported within and complements the Company’s existing businesses in the Piping Systems segment. For the year ended December 26, 2020, the Company’s total net sales included $55.0 million of revenue recognized by Kessler from the date of acquisition. Shoals On January 17, 2020, the Company entered into a stock purchase agreement pursuant to which the Company acquired all of the outstanding stock of Shoals Tubular, Inc. (Shoals) for approximately $15.4 million in cash at closing, net of working capital adjustments. Shoals is a manufacturer of brazed manifolds, headers, and distributor assemblies used primarily by manufacturers of residential heating and air conditioning units. The acquired business is reported within and complements the Company’s existing businesses in the Climate segment. 2018 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 $158.1 million, net of working capital adjustments. The total purchase price consisted of $151.8 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. For the years ended December 26, 2020 and December 28, 2019, ATCO had net sales of approximately $196.5 million and $190.1 million, respectively. For the year ended December 29, 2018, the Company’s total net sales included $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 Year Ended (In thousands, except per share data) 2018 Net sales $ 2,595,454 Net income 111,482 Basic earnings per share $ 1.96 Diluted earnings per share 1.95 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. Purchase Price Allocations These acquisitions were accounted for using the acquisition method of accounting whereby the total purchase price was allocated to tangible and intangible assets acquired and liabilities assumed based on respective fair values. The following table summarizes the allocation of the purchase price to acquire these businesses, which were financed by available cash balances, as well as the assets acquired and liabilities assumed at the respective acquisition dates. The purchase price allocations for Kessler and Shoals are provisional as of December 26, 2020 and subject to change upon the completion of the final valuation of long-lived assets during the measurement period. (In thousands) Kessler Shoals ATCO Die-Mold Total consideration $ 57,233 $ 15,415 $ 158,100 $ 13,629 Allocated to: Accounts receivable — 660 21,829 1,684 Inventories 25,106 1,809 31,666 1,833 Other current assets — 26 1,051 267 Property, plant, and equipment 3,561 3,700 83,080 3,278 Operating lease right-of-use assets 10,526 — — — Goodwill 11,710 (1) 1,964 (1) 17,236 (1) 4,239 Intangible assets 15,140 7,480 23,360 5,209 Other assets — — 224 — Total assets acquired 66,043 15,639 178,446 16,510 Accounts payable — 217 8,093 710 Current portion of operating lease liabilities 1,692 — — — Other current liabilities — 7 10,187 173 Long-term debt — — 2,066 — Noncurrent operating lease liabilities 7,118 — — — Other noncurrent liabilities — — — 1,998 Total liabilities assumed 8,810 224 20,346 2,881 Net assets acquired 57,233 15,415 $ 158,100 $ 13,629 (1) Tax-deductible goodwill The following details the total intangible assets identified in the allocation of the purchase price at the respective acquisition dates: (In thousands) Estimated Useful Life Kessler Shoals ATCO Die-Mold Intangible asset type: Customer relationships 20 years $ 11,180 $ 4,290 $ 6,550 $ 3,077 Non-compete agreements 3-5 years — 150 — 70 Patents and technology 10-15 years — 2,620 10,570 1,512 Trade names, licenses, and other 5-10 years 3,960 420 4,770 550 Supply contracts 5 years — — 1,470 — Total intangible assets $ 15,140 $ 7,480 $ 23,360 $ 5,209 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 26, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information The Company’s reportable segments are Piping Systems, Industrial Metals, and Climate. Each of the reportable segments is composed of certain operating segments that are aggregated primarily by the nature of products offered as follows: Piping Systems Piping Systems is composed of the following operating segments: Domestic Piping Systems Group, 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 and distributes 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 OEMs. During 2020, the segment recognized fixed asset impairment charges for certain manufacturing equipment of $3.8 million. During 2019, the segment recognized a gain of $1.2 million on the sale of real property. During 2018, the segment recognized a gain of $1.4 million on the sale of real property and a gain of $0.7 million on the sale of manufacturing equipment. 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. During 2019, the segment recognized a loss of $0.3 million on the sale of real property and an insurance recovery gain of $0.5 million related to the losses incurred due to the 2017 fire at the brass rod mill in Port Huron, Michigan. During 2018, the segment recognized a gain of $1.3 million on the sale of real property and an insurance recovery gain of $3.7 million related to the losses incurred due to the 2017 fire at the brass rod mill in Port Huron, Michigan. Climate Climate is composed of the following operating segments: Refrigeration Products, Fabricated Tube Products, Westermeyer, Turbotec, ATCO, Linesets, Inc. and Shoals. These domestic businesses manufacture and fabricate valves, assemblies, high pressure components, coaxial heat exchangers, insulated HVAC flexible duct systems, line sets, brazed manifolds, headers, and distributor assemblies primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S. Performance of segments is generally evaluated by their operating income. Summarized product line, geographic, and segment information is shown in the following tables. Geographic sales data indicates the location from which products are shipped. Unallocated expenses include general corporate expenses, plus certain charges or credits not included in segment activity. During 2020, 2019, and 2018, no single customer exceeded 10 percent of worldwide sales. The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category: For the Year Ended December 26, 2020 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 1,232,724 $ — $ — $ 1,232,724 Brass rod and forgings — 356,547 — 356,547 OEM components, tube & assemblies 56,176 42,127 138,551 236,854 Valves and plumbing specialties 294,102 — — 294,102 Other — 73,485 231,580 305,065 $ 1,583,002 $ 472,159 $ 370,131 $ 2,425,292 Intersegment sales (27,249) Net sales $ 2,398,043 For the Year Ended December 28, 2019 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 1,271,558 $ — $ — $ 1,271,558 Brass rod and forgings — 425,573 — 425,573 OEM components, tube & assemblies 29,103 48,104 133,651 210,858 Valves and plumbing specialties 241,795 — — 241,795 Other — 80,695 222,565 303,260 $ 1,542,456 $ 554,372 $ 356,216 $ 2,453,044 Intersegment sales (22,428) Net sales $ 2,430,616 Disaggregation of revenue from contracts with customers (continued): For the Year Ended December 29, 2018 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 1,352,875 $ — $ — $ 1,352,875 Brass rod and forgings — 501,472 — 501,472 OEM components, tube & assemblies 29,578 53,581 139,113 222,272 Valves and plumbing specialties 263,180 — — 263,180 Other — 96,008 89,956 185,964 $ 1,645,633 $ 651,061 $ 229,069 $ 2,525,763 Intersegment sales (17,885) Net sales $ 2,507,878 Summarized segment information is as follows: For the Year Ended December 26, 2020 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,583,002 $ 472,159 $ 370,131 $ (27,249) $ 2,398,043 Cost of goods sold 1,311,697 398,000 276,274 (19,810) 1,966,161 Depreciation and amortization 23,071 7,528 10,249 3,995 44,843 Selling, general, and administrative expense 78,744 12,566 26,806 41,367 159,483 Litigation settlement, net — — — (22,053) (22,053) Impairment charges 3,771 — — — 3,771 Operating income 165,719 54,065 56,802 (30,748) 245,838 Interest expense (19,247) Pension plan termination expense (17,835) Environmental expense (4,454) Other income, net 4,887 Income before income taxes $ 209,189 Segment information (continued): For the Year Ended December 28, 2019 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,542,456 $ 554,372 $ 356,216 $ (22,428) $ 2,430,616 Cost of goods sold 1,313,980 473,010 273,850 (25,230) 2,035,610 Depreciation and amortization 22,621 7,489 9,298 3,285 42,693 Selling, general, and administrative expense 75,170 12,359 30,385 44,444 162,358 (Gain) loss on sale of assets, net (1,194) 275 (44) — (963) Insurance recovery — (485) — — (485) Operating income 131,879 61,724 42,727 (44,927) 191,403 Interest expense (25,683) Environmental expense (1,321) Other income, net 1,684 Income before income taxes $ 166,083 For the Year Ended December 29, 2018 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,645,633 $ 651,061 $ 229,069 $ (17,885) $ 2,507,878 Cost of goods sold 1,426,729 559,367 182,456 (18,152) 2,150,400 Depreciation and amortization 23,304 7,568 5,569 3,114 39,555 Selling, general, and administrative expense 74,864 13,501 16,926 43,597 148,888 Gain on sale of assets, net (2,093) (1,301) — 3,141 (253) Insurance recovery — (3,681) — — (3,681) Operating income 122,829 75,607 24,118 (49,585) 172,969 Interest expense (25,199) Environmental expense (1,320) Other income, net 3,967 Income before income taxes $ 150,417 Summarized geographic information is as follows: (In thousands) 2020 2019 2018 Net sales: United States $ 1,765,810 $ 1,775,321 $ 1,820,857 United Kingdom 207,754 230,791 245,458 Canada 293,776 285,720 292,798 Asia 58,256 64,363 59,730 Mexico 72,447 74,421 89,035 $ 2,398,043 $ 2,430,616 $ 2,507,878 (In thousands) 2020 2019 2018 Long-lived assets: United States $ 289,508 $ 286,727 $ 295,735 United Kingdom 30,872 18,776 16,313 Canada 29,582 31,429 33,144 Asia 26,107 25,637 24,930 Mexico 503 559 511 $ 376,572 $ 363,128 $ 370,633 (In thousands) 2020 2019 2018 Expenditures for long-lived assets (including those resulting from business acquisitions): Piping Systems $ 39,209 $ 15,505 $ 31,362 Industrial Metals 5,968 9,101 8,066 Climate 5,521 3,845 85,471 General Corporate 448 2,711 37 $ 51,146 $ 31,162 $ 124,936 Segment assets: Piping Systems $ 977,937 $ 796,262 $ 818,303 Industrial Metals 152,683 161,904 173,725 Climate 258,668 249,853 246,851 General Corporate 139,280 162,921 130,670 $ 1,528,568 $ 1,370,940 $ 1,369,549 |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 12 Months Ended |
Dec. 26, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash (In thousands) 2020 2019 Cash & cash equivalents $ 119,075 $ 97,944 Restricted cash included within other current assets 8,198 — Restricted cash included within other assets 103 98 Total cash, cash equivalents, and restricted cash $ 127,376 $ 98,042 |
Inventories
Inventories | 12 Months Ended |
Dec. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) 2020 2019 Raw materials and supplies $ 85,927 $ 85,769 Work-in-process 49,361 48,814 Finished goods 186,785 163,842 Valuation reserves (7,071) (6,318) Inventories $ 315,002 $ 292,107 Inventories valued using the LIFO method totaled $17.3 million at December 26, 2020 and $16.8 million at December 28, 2019. At December 26, 2020 and December 28, 2019, the approximate FIFO cost of such inventories was $108.1 million and $87.8 million, respectively. Additionally, the Company values certain inventories on an average cost basis. At the end of 2020 and 2019, the FIFO value of inventory consigned to others was $6.4 million and $5.5 million, respectively. |
Consolidated Financial Statemen
Consolidated Financial Statement Details | 12 Months Ended |
Dec. 26, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Consolidated Financial Statement Details | Consolidated Financial Statement Details Other Current Liabilities Included in other current liabilities as of December 26, 2020 and December 28, 2019 were the following: (i) accrued discounts, allowances, and customer rebates of $56.0 million and $53.9 million, respectively, (ii) accrued interest of $5.4 million and $6.0 million, respectively, (iii) current taxes payable of $6.3 million and $4.7 million, respectively, (iv) current environmental liabilities of $2.7 million and $0.9 million, respectively, and (v) net loss positions on derivative contracts of $6.3 million and $0.2 million, respectively. In addition, as of December 26, 2020 and December 28, 2019 this included accruals for excise tax of $6.4 million resulting from the termination of the U.S. defined benefit pension plan and contingent consideration arrangements associated with acquired businesses of $7.0 million, respectively. Other Income, Net (In thousands) 2020 2019 2018 Net periodic benefit income $ 3,013 $ 465 $ 2,914 Interest income 1,101 722 624 Other 773 497 429 Other income, net $ 4,887 $ 1,684 $ 3,967 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 26, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company’s earnings and cash flows are subject to fluctuations due to changes in commodity prices, foreign currency exchange rates, and interest rates. The Company uses derivative instruments such as commodity futures contracts, foreign currency forward contracts, and interest rate swaps to manage these exposures. 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 December 26, 2020, the Company held open futures contracts to purchase approximately $5.4 million of copper over the next 12 months related to fixed price sales orders. The fair value of those futures contracts was a $1.2 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 December 26, 2020, this amount was approximately $0.8 million 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 December 26, 2020, the Company held open futures contracts to sell approximately $49.4 million of copper over the next five months related to copper inventory. The fair value of those futures contracts was a $5.8 million 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 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 2020 2019 Balance Sheet Location 2020 2019 Commodity contracts - gains Other current assets $ 1,213 $ 1,435 Other current liabilities $ 68 $ 50 Commodity contracts - losses Other current assets (8) (12) Other current liabilities (5,863) (159) Total derivatives (1) $ 1,205 $ 1,423 $ (5,795) $ (109) (1) Does not include the impact of cash collateral provided to counterparties . The following table summarizes the effects of derivative instruments on the Consolidated Statements of Income: (In thousands) Location 2020 2019 Undesignated derivatives: (Loss) gain on commodity contracts (nonqualifying) Cost of goods sold $ (8,893) $ 2,443 The following tables summarize amounts recognized in and reclassified from AOCI during the period: Year Ended December 26, 2020 (In thousands) Loss Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (4,579) Cost of goods sold $ 5,091 Other (4) Other — Total $ (4,583) Total $ 5,091 Year Ended December 28, 2019 (In thousands) 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 $ 1,161 Cost of goods sold $ (486) Other 15 Other — Total $ 1,176 Total $ (486) 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 December 26, 2020 was not material to the 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 the 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 December 26, 2020 and December 28, 2019, the Company had recorded restricted cash in other current assets of $7.6 million and $0.2 million, respectively, as collateral related to open derivative contracts under the master netting arrangements. |
Leases
Leases | 12 Months Ended |
Dec. 26, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain facilities, vehicles, and equipment which expire on various dates through 2032. The following table includes supplemental information with regards to the Company’s operating leases: (In thousands, except lease term and discount rate) December 26, 2020 December 28, 2019 Operating lease right-of-use assets $ 29,301 $ 26,922 Current portion of operating lease liabilities 6,259 5,250 Noncurrent operating lease liabilities 21,602 22,388 Total operating lease liabilities $ 27,861 $ 27,638 Weighted average discount rate 3.91% 5.82% Weighted average remaining lease term (in years) 5.99 8.35 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 period: For the Year Ended (In thousands) December 28, 2019 December 28, 2019 Operating lease costs $ 7,039 $ 6,818 Short term lease costs 4,734 4,951 Total lease costs $ 11,773 $ 11,769 Cash paid for amounts included in the measurement of lease liabilities $ 7,040 $ 6,703 Maturities of the Company’s operating leases are as follows: (In thousands) Amount 2021 $ 7,353 2022 6,489 2023 4,553 2024 3,382 2025 2,376 2026 and thereafter 7,254 Total lease payments 31,407 Less imputed interest (3,546) Total lease obligations 27,861 Less current obligations (6,259) Noncurrent lease obligations $ 21,602 |
Property, Plant, and Equipment,
Property, Plant, and Equipment, Net | 12 Months Ended |
Dec. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, Net | Property, Plant, and Equipment, Net (In thousands) 2020 2019 Land and land improvements $ 33,602 $ 31,987 Buildings 218,319 203,762 Machinery and equipment 658,613 640,642 Construction in progress 28,631 18,920 939,165 895,311 Less accumulated depreciation (562,593) (532,183) Property, plant, and equipment, net $ 376,572 $ 363,128 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill The changes in the carrying amount of goodwill by segment were as follows: (In thousands) Piping Systems Industrial Metals Climate Total Goodwill $ 168,700 $ 8,854 $ 22,186 $ 199,740 Accumulated impairment charges (40,552) (8,853) — (49,405) Balance at December 29, 2018: 128,148 1 22,186 150,335 Additions (1) 1,999 — — 1,999 Reductions (2) — — (534) (534) Currency translation 1,476 — — 1,476 Balance at December 28, 2019: 131,623 1 21,652 153,276 Additions 11,710 — 1,964 13,674 Currency translation 814 — — 814 Balance at December 26, 2020: Goodwill 184,699 8,854 23,616 217,169 Accumulated impairment charges (40,552) (8,853) — (49,405) Goodwill, net $ 144,147 $ 1 $ 23,616 $ 167,764 (1) Includes finalization of the purchase price allocation adjustment for Die-Mold of $2.0 million. (2) Includes finalization of the purchase price allocation adjustment for ATCO of $0.5 million. Reporting units with recorded goodwill include Domestic Piping Systems Group, B&K LLC, Great Lakes, Heatlink Group, Die-Mold, European Operations, Jungwoo-Mueller, Westermeyer, Turbotec, ATCO, and Shoals . Several factors give rise to goodwill in the Company’s acquisitions, such as the expected benefit from synergies of the combination and the existing workforce of the acquired businesses. There were no impairment charges resulting from the 2020, 2019, or 2018 annual impairment tests as the estimated fair value of each of the reporting units exceeded its carrying value. Other Intangible Assets The carrying amount of intangible assets at December 26, 2020 was as follows: (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 61,068 $ (11,676) $ 49,392 Non-compete agreements 2,689 (2,527) 162 Patents and technology 22,585 (5,672) 16,913 Trade names and licenses 14,631 (4,476) 10,155 Other 1,676 (1,091) 585 Other intangible assets $ 102,649 $ (25,442) $ 77,207 The carrying amount of intangible assets at December 28, 2019 was as follows: (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 44,832 $ (8,773) $ 36,059 Non-compete agreements 2,499 (2,156) 343 Patents and technology 19,804 (4,060) 15,744 Trade names and licenses 10,155 (3,249) 6,906 Other 1,676 (646) 1,030 Other intangible assets $ 78,966 $ (18,884) $ 60,082 Amortization expense for intangible assets was $6.1 million in 2020, $5.4 million in 2019, and $4.4 million in 2018. Future amortization expense is estimated as follows: (In thousands) Amount 2021 $ 6,393 2022 6,311 2023 6,000 2024 5,769 2025 5,743 Thereafter 46,991 Expected amortization expense $ 77,207 |
Investment in Unconsolidated Af
Investment in Unconsolidated Affiliates | 12 Months Ended |
Dec. 26, 2020 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investment in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates Tecumseh The Company owns a 50 percent interest in an unconsolidated affiliate that acquired Tecumseh. The Company also owns a 50 percent interest in a second unconsolidated affiliate that provides financing to Tecumseh. Tecumseh is a global manufacturer of hermetically sealed compressors for residential and specialty air conditioning, household refrigerators and freezers, and commercial refrigeration applications, including air conditioning and refrigeration compressors, as well as condensing units, heat pumps, and complete refrigeration systems. 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) 2020 2019 Current assets $ 167,451 $ 198,559 Noncurrent assets 78,241 87,218 Current liabilities 120,202 147,801 Noncurrent liabilities 50,020 51,219 Net sales $ 384,919 $ 488,270 Gross profit 50,347 58,494 Net loss (20,892) (44,053) The Company’s loss from unconsolidated affiliates, net of foreign tax, for 2020 and 2019 included net losses of $10.4 million and $22.0 million, respectively, 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 $5.0 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 2020 and 2019 included net gains of $0.2 million and net losses of $2.6 million, respectively, for Mueller Middle East. Mueller Middle East manufactures and sells copper coils to certain Mueller subsidiaries. For the year ended December 26, 2020, total sales to Mueller subsidiaries were approximately $37.4 million. |
Debt
Debt | 12 Months Ended |
Dec. 26, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt (In thousands) 2020 2019 Subordinated Debentures with interest at 6.00%, due 2027 $ 284,479 $ 284,479 Revolving Credit Facility with interest at 1.52%, due 2021 35,000 90,000 Jungwoo-Mueller credit facility with interest at 1.90%, due 2021 5,811 — Jungwoo-Mueller credit facility with interest at 2.55%, due 2020 — 5,768 2001 Series IRB's with interest at 1.14%, due 2021 250 1,250 Other 2,555 5,295 328,095 386,792 Less debt issuance costs (219) (538) Less current portion of debt (41,283) (7,530) Long-term debt $ 286,593 $ 378,724 Subordinated Debentures On March 9, 2017, the Company distributed a special dividend of $3.00 in cash and $5.00 in principal amount of the Company’s 6% Subordinated Debentures (Debentures) due March 1, 2027 for each share of common stock outstanding. Interest on the Debentures is payable semiannually on September 1 and March 1. The Debentures are subordinated to all other funded debt of the Company and are callable, in whole or in part, at any time at the option of the Company, subject to declining call premiums during the first five years. The Debentures also grant each holder the right to require the Company to repurchase such holder’s Debentures in the event of a change in control at declining repurchase premiums during the first five years. The Debentures may be redeemed, subject to the conditions set forth above, at the following redemption price (expressed as a percentage of principal amount) plus any accrued but unpaid interest to, but excluding, the redemption date: If redeemed during the 12-month period beginning March 9: Year Redemption Price 2020 103% 2021 102 2022 and thereafter 100 Revolving Credit Facility The Company’s Credit Agreement provides for an unsecured $350.0 million revolving credit facility (Revolving Credit Facility) that matures on December 6, 2021. Borrowings under the Revolving Credit Facility bear interest, at the Company’s option, at LIBOR or Base Rate as defined by the Credit Agreement, plus a variable premium. LIBOR advances may be based upon the one, three, or six-month LIBOR. The variable premium is based upon the Company’s debt to total capitalization ratio, and can range from 112.5 to 162.5 basis points for LIBOR based loans and 12.5 to 62.5 basis points for Base Rate loans. At December 26, 2020, the premium was 137.5 basis points for LIBOR loans and 37.5 basis points for Base Rate loans. Additionally, a commitment fee is payable quarterly on the total commitment less any outstanding loans or issued letters of credit, and varies from 15.0 to 30.0 basis points based upon the Company’s debt to total capitalization ratio. Availability of funds under the Revolving Credit Facility is reduced by the amount of certain outstanding letters of credit, which are used to secure the Company’s payment of insurance deductibles and certain retiree health benefits, totaling approximately $19.4 million at December 26, 2020. Terms of the letters of credit are generally renewable annually. Jungwoo-Mueller Jungwoo-Mueller has several secured revolving credit arrangements with a total borrowing capacity of KRW 25.8 billion (or approximately $23.5 million). Borrowings are secured by the real property and equipment of Jungwoo-Mueller. Covenants contained in the Company’s financing obligations require, among other things, the maintenance of minimum levels of tangible net worth and the satisfaction of certain minimum financial ratios. At December 26, 2020, the Company was in compliance with all debt covenants. Aggregate annual maturities of the Company’s debt are as follows: (In thousands) Amount 2021 $ 41,283 2022 222 2023 222 2024 222 2025 167 Thereafter 285,979 Long-term debt $ 328,095 Net interest expense consisted of the following: (In thousands) 2020 2019 2018 Interest expense $ 19,510 $ 25,957 $ 25,349 Capitalized interest (263) (274) (150) $ 19,247 $ 25,683 $ 25,199 Interest paid in 2020, 2019, and 2018 was $19.8 million, $25.4 million, and $25.2 million, respectively. |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 26, 2020 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans Pension and Other Postretirement Plans The Company sponsors several qualified and nonqualified pension plans and other postretirement benefit plans for certain employees. The following tables provide a reconciliation of the changes in the most significant plans’ benefit obligations and the fair value of the plans’ assets for 2020 and 2019, and a statement of the plans’ aggregate funded status: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Change in benefit obligation: Obligation at beginning of year $ 182,164 $ 166,739 $ 12,653 $ 14,382 Service cost — — 212 260 Interest cost 3,260 5,972 430 609 Actuarial loss (gain) 10,790 17,061 422 (1,860) Plan amendments — — (26) — Benefit payments (9,214) (9,883) (716) (832) Curtailment — — (183) — Settlement (1) (99,585) — — (198) Foreign currency translation adjustment 3,394 2,275 (10) 292 Obligation at end of year 90,809 182,164 12,782 12,653 Change in fair value of plan assets: Fair value of plan assets at beginning of year 183,486 164,603 — — Actual return on plan assets 13,313 26,734 — — Employer contributions — — 716 832 Benefit payments (9,214) (9,883) (716) (832) Settlement (1) (99,585) — — — Surplus assets (1) (12,386) — — — Foreign currency translation adjustment 2,866 2,032 — — Fair value of plan assets at end of year 78,480 183,486 — — Funded (underfunded) status at end of year $ (12,329) $ 1,322 $ (12,782) $ (12,653) (1) In November 2019, the Company’s Board of Directors approved the termination of the U.S. defined benefit pension plan. There were no impacts to consolidated results for 2019. Settlement accounting criteria was met in Q4 2020, therefore, all resulting settlement charges occurred in 2020. The plan termination resulted in incremental benefit payments of approximately $100.0 million and termination costs of $17.8 million, which consisted of an $11.6 million non-cash settlement charge and $6.2 million in federal excise tax on surplus assets returned to the Company of approximately $12.4 million, as of December 26, 2020. The following represents amounts recognized in AOCI (before the effect of income taxes): Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Unrecognized net actuarial loss (gain) $ 26,476 $ 36,195 $ (1,187) $ (1,609) Unrecognized prior service credit — — (2,401) (5,485) The Company sponsors one pension plan in the U.K. which comprised 100 and 43 percent of the above benefit obligation at December 26, 2020 and December 28, 2019, respectively, and 100 and 39 percent of the above plan assets at December 26, 2020 and December 28, 2019, respectively. As of December 26, 2020, $0.9 million of the actuarial net loss and the remainder of the prior service credit will, through amortization, be recognized as components of net periodic benefit cost in 2021. The aggregate status of all overfunded plans is recognized as an asset and the aggregate status of all underfunded plans is recognized as a liability in the Consolidated Balance Sheets. The amounts recognized as a liability are classified as current or long-term on a plan-by-plan basis. Liabilities are classified as current to the extent the actuarial present value of benefits payable within the next 12 months exceeds the fair value of plan assets, with all remaining amounts classified as long-term. As of December 26, 2020 and December 28, 2019, the total funded status of the plans recognized in the Consolidated Balance Sheets was as follows: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Long-term asset $ — $ 8,592 $ — $ — Current liability — — (948) (1,013) Long-term liability (12,329) (7,270) (11,834) (11,640) Total (underfunded) funded status $ (12,329) $ 1,322 $ (12,782) $ (12,653) The components of net periodic benefit cost (income) are as follows: (In thousands) 2020 2019 2018 Pension benefits: Service cost $ — $ — $ 88 Interest cost 3,260 5,972 5,745 Expected return on plan assets (5,704) (8,103) (9,522) Amortization of net loss 2,305 1,950 1,151 Settlement charge 11,642 — — Net periodic benefit cost (income) $ 11,503 $ (181) $ (2,538) Other benefits: Service cost $ 212 $ 260 $ 235 Interest cost 430 609 447 Amortization of prior service credit (519) (902) (902) Amortization of net (gain) loss (193) (88) 92 Curtailment gain (2,591) — — Settlement charge — (2) 38 Net periodic benefit income $ (2,661) $ (123) $ (90) During 2020, the Company recognized a curtailment gain of $2.6 million related to one of its postretirement benefit plans. The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Consolidated Statements of Income. The weighted average assumptions used in the measurement of the Company’s benefit obligations are as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 Discount rate 1.40 % 1.93 % 2.92 % 3.70 % Expected long-term return on plan assets 4.69 % 3.84 % N/A N/A Rate of compensation increases N/A N/A 5.00 % 5.00 % Rate of inflation 3.20 % 3.20 % N/A N/A The weighted average assumptions used in the measurement of the Company’s net periodic benefit cost are as follows: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Discount rate 1.93 % 3.72 % 3.22 % 3.70 % 4.56 % 3.89 % Expected long-term return on plan assets 3.84 % 5.05 % 5.27 % N/A N/A N/A Rate of compensation increases N/A N/A N/A 5.00 % 5.00 % 5.00 % Rate of inflation 3.20 % 3.40 % 3.30 % N/A N/A N/A The Company’s Mexican postretirement plans use the rate of compensation increase in the benefit formulas. Past service in the U.K. pension plan will be adjusted for the effects of inflation. All other pension and postretirement plans use benefit formulas based on length of service. The annual assumed rate of increase in the per capita cost of covered benefits (i.e., health care cost trend rate) is assumed to range from 4.3 to 8.7 percent for 2021, gradually decrease to 4.1 percent through 2040, and remain at that level thereafter. The health care cost trend rate assumption does not have a significant effect on the amounts reported. Pension Assets The weighted average asset allocation of the Company’s pension fund assets are as follows: Pension Plan Assets Asset category 2020 2019 Fixed income securities (includes fixed income mutual funds) — % 55 % Equity securities (includes equity mutual funds) 66 25 Multi-asset securities 24 9 Cash and equivalents (includes money market funds) 1 7 Alternative investments 9 4 Total 100 % 100 % At December 26, 2020, the long-term target allocation, by asset category, of assets of the Company’s defined benefit pension plans was: (i) equity securities and multi-asset securities, including equity index funds – not less than 70 percent; and (ii) alternative investments – not more than 10 percent. The pension plan obligations are long-term and, accordingly, the plan assets are invested for the long-term. Plan assets are monitored periodically. Based upon results, investment managers and/or asset classes are redeployed when considered necessary. None of the plans’ assets are expected to be returned to the Company during the next fiscal year. The assets of the plans do not include investments in securities issued by the Company. The estimated rates of return on plan assets are the expected future long-term rates of earnings on plan assets and are forward-looking assumptions that materially affect pension cost. Establishing the expected future rates of return on pension assets is a judgmental matter. The Company reviews the expected long-term rates of return on an annual basis and revises as appropriate. The expected long-term rate of return on plan assets was 4.69 percent for 2020 and 3.84 percent in 2019. The Company’s investments for its pension plans are reported at fair value. The following methods and assumptions were used to estimate the fair value of the Company’s plan asset investments: Cash and money market funds – Valued at cost, which approximates fair value. Mutual funds – Valued at the net asset value of shares held by the plans at December 26, 2020 and December 28, 2019, respectively, based upon quoted market prices. Limited partnerships – Limited partnerships include investments in various Cayman Island multi-strategy hedge funds. The plans’ investments in limited partnerships are valued at the estimated fair value of the class shares owned by the plans based upon the equity in the estimated fair value of those shares. The estimated fair values of the limited partnerships are determined by the investment managers. In determining fair value, the investment managers of the limited partnerships utilize the estimated net asset valuations of the underlying investment entities. The underlying investment entities value securities and other financial instruments on a mark-to-market or estimated fair value basis. The estimated fair value is determined by the investment managers based upon, among other things, the type of investments, purchase price, marketability, current financial condition, operating results, and other information. The estimated fair values of substantially all of the investments of the underlying investment entities, which may include securities for which prices are not readily available, are determined by the investment managers or management of the respective underlying investment entities and may not reflect amounts that could be realized upon immediate sale. Accordingly, the estimated fair values may differ significantly from the values that would have been used had a ready market existed for these investments. The following table sets forth by level, within the fair value hierarchy, the assets of the plans at fair value: Fair Value Measurements at December 26, 2020 (In thousands) Level 1 Level 2 Level 3 Total Cash and money market funds $ 492 $ — $ — $ 492 Mutual funds (1) — 71,084 — 71,084 Limited partnerships — — 6,904 6,904 Total $ 492 $ 71,084 $ 6,904 $ 78,480 Fair Value Measurements at December 28, 2019 (In thousands) Level 1 Level 2 Level 3 Total Cash and money market funds $ 12,318 $ — $ — $ 12,318 Mutual funds (2) — 163,253 — 163,253 Limited partnerships — — 7,915 7,915 Total $ 12,318 $ 163,253 $ 7,915 $ 183,486 (1) Approximately 76 percent of mutual funds are actively managed funds and approximately 24 percent of mutual funds are index funds. Additionally, 27 percent of the mutual funds’ assets are invested in non-U.S. multi-asset securities and 73 percent in non-U.S. equities. (2) Approximately 80 percent of mutual funds are actively managed funds and approximately 20 percent of mutual funds are index funds. Additionally, 10 percent of the mutual funds’ assets are invested in non-U.S. multi-asset securities, 28 percent in non-U.S. equities, 62 percent in U.S. fixed income securities. The table below reflects the changes in the assets of the plan measured at fair value on a recurring basis using significant unobservable inputs (level 3 of fair value hierarchy) during the year ended December 26, 2020: (In thousands) Limited Partnerships Balance, December 28, 2019 $ 7,915 Surplus assets (1,104) Net appreciation in fair value 93 Balance, December 26, 2020 $ 6,904 Contributions and Benefit Payments The Company does not expect to contribute to the U.K. pension plan, other than to reimburse expenses, and expects to contribute $1.0 million to its other postretirement benefit plans in 2021. The Company expects future benefits to be paid from the plans as follows: (In thousands) Pension Benefits Other Benefits 2021 $ 3,428 $ 947 2022 2,945 942 2023 3,050 1,016 2024 3,160 977 2025 3,273 974 2026-2030 18,210 4,700 Total $ 34,066 $ 9,556 Multiemployer Plan The Company contributes to the IAM National Pension Fund, National Pension Plan (IAM Plan), a multiemployer defined benefit plan. Participation in the IAM Plan was negotiated under the terms of two collective bargaining agreements in Port Huron, Michigan, the Local 218 IAM and Local 44 UAW that expire on May 7, 2023 and June 26, 2022, respectively. The Employer Identification Number for this plan is 51-6031295. The risks of participating in multiemployer plans are different from single-employer plans in the following aspects: (i) assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers; (ii) if a participating employer stops contributing to the plan, the underfunded obligations of the plan may be borne by the remaining participating employers; (iii) if the Company chooses to stop participating in the plan, the Company may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. The Company makes contributions to the IAM Plan trusts that cover certain union employees; contributions by employees are not permitted. Contributions to the IAM Plan were approximately $1.2 million in 2020, $1.2 million in 2019, and $1.3 million in 2018. The Company’s contributions are less than five percent of total employer contributions made to the IAM Plan indicated in the most recently filed Form 5500. Under the Pension Protection Act of 2006, the IAM Plan’s actuary must certify the plan’s zone status annually. Plans in the red zone are generally less than 65 percent funded, plans in the yellow zone are less than 80 percent funded, and plans in the green zone are at least 80 percent funded. If a plan is determined to be in endangered status, red zone or yellow zone, the plan’s trustees must develop a formal plan of corrective action, a Financial Improvement Plan and/or a Rehabilitation Plan. The IAM Plan remains well-funded at over 80 percent, for 2020, and has been certified in the green zone. In 2019, although the IAM Plan was well-funded at 89 percent, it was certified in the yellow zone due to a declining credit balance. However, as a result of a challenging investment environment and the decline of the IAM Plan’s credit balance, the IAM National Pension Plan Board of Trustees voluntarily elected to place the IAM Plan in the red zone. The action was taken to protect the IAM Plan’s participants’ core retirement benefits and strengthen the IAM Plan’s financial health over the long term. 401(k) Plans The Company sponsors voluntary employee savings plans that qualify under Section 401(k) of the Internal Revenue Code of 1986. Compensation expense for the Company’s matching contribution to the 401(k) plans was $5.7 million in 2020, $5.4 million in 2019, and $5.1 million in 2018. The Company match is a cash contribution. Participants direct the investment of their account balances by allocating among a range of asset classes including mutual funds (equity, fixed income, and balanced funds) and money market funds. The plans do not allow direct investment in securities issued by the Company. UMWA Benefit Plans In October 1992, the Coal Industry Retiree Health Benefit Act of 1992 (1992 Act) was enacted. The 1992 Act mandates a method of providing for postretirement benefits to the United Mine Workers of America (UMWA) current and retired employees, including some retirees who were never employed by the Company. In October 1993, beneficiaries were assigned to the Company and the Company began its mandated contributions to the UMWA Combined Benefit Fund, a multiemployer trust. Beginning in 1994, the Company was required to make contributions for assigned beneficiaries under an additional multiemployer trust created by the 1992 Act, the UMWA 1992 Benefit Plan. The ultimate amount of the Company’s liability under the 1992 Act will vary due to factors which include, among other things, the validity, interpretation, and regulation of the 1992 Act, its joint and several obligation, the number of valid beneficiaries assigned, and the extent to which funding for this obligation will be satisfied by transfers of excess assets from the 1950 UMWA pension plan and transfers from the Abandoned Mine Reclamation Fund. Contributions to the plan were $57 thousand, $223 thousand, and $153 thousand for the years ended 2020, 2019, and 2018, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 26, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Environmental The Company is subject to federal, state, local, and foreign environmental laws and regulations. For all properties, the Company has provided and charged to expense $4.2 million in 2020, $1.7 million in 2019, and $2.0 million in 2018 for pending environmental matters. Environmental reserves totaled $24.0 million at December 26, 2020 and $20.9 million at December 28, 2019. As of December 26, 2020, the Company expects to spend $2.7 million in 2021, $0.8 million in 2022, $0.8 million in 2023, $0.9 million in 2024, $0.8 million in 2025, and $18.0 million thereafter for ongoing projects. 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. Construction of the remedy was completed in 2018. 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 the 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. EPA issued an interim record of decision in 2017 and has been remediating properties at the site. 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 2030 to address residual discharges of acid rock drainage. At this site, MRRC spent approximately $1.7 million from 2018 through 2020 for remediation, and currently estimates that it will spend between approximately $13.9 million and $18.0 million over the next 30 years and has accrued a reserve at the low end of this range. 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. Lead Refinery spent approximately $0.6 million from 2018 through 2020 with respect to this site. Approximate costs to comply with the post-closure permit, including associated general and administrative costs, are estimated at between $1.7 million and $2.4 million over the next 16 years. The Company has recorded a reserve at the low end of this range. 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 remedial investigation and feasibility study remain ongoing. 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 estimated it would 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. As of year-end, the Company has made payments of approximately $7.2 million related to the aforementioned agreement with the other PRPs. 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 and March 2018, separate groups of private plaintiffs sued the Company, Arava, MRRC, and Lead Refinery, along with other defendants, in two civil tort actions relating to the site. The Company, Arava, and MRRC have been voluntarily dismissed from both litigations without prejudice, but Lead Refinery remains a party to each. 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), including, 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 $0.9 million to $1.1 million over the next five years. The Company has recorded a reserve at the low end of this range. 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. Deepwater Horizon Economic and Property Damage Claim During 2020, Mueller Copper Tube Company, a wholly owned subsidiary of the Company, collected approximately $22.1 million related to its claim under the Deepwater Horizon Economic and Property Damage Settlement Program. The collected amount represent settlement proceeds received after the payment of fees and expenses. Guarantees Guarantees, in the form of letters of credit, are issued by the Company generally to assure the payment of insurance deductibles, certain retiree health benefits, and debt at certain unconsolidated affiliates. 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 December 26, 2020 were $22.3 million. Other The Company is involved in certain litigation as a result of claims that arose in the ordinary course of business, which management believes will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. It may also realize the benefit of certain legal claims and litigation in the future; these gain contingencies are not recognized in the Consolidated Financial Statements. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income before income taxes were taxed under the following jurisdictions: (In thousands) 2020 2019 2018 Domestic $ 144,770 $ 112,812 $ 105,455 Foreign 64,419 53,271 44,962 Income before income taxes $ 209,189 $ 166,083 $ 150,417 Income tax expense consists of the following: (In thousands) 2020 2019 2018 Current tax expense: Federal $ 37,964 $ 19,066 $ 17,974 Foreign 16,221 12,727 9,650 State and local 5,182 3,892 3,158 Current tax expense 59,367 35,685 30,782 Deferred tax (benefit) expense: Federal (5,991) 1,725 (1,381) Foreign 90 (2,311) 551 State and local 1,855 158 1,000 Deferred tax (benefit) expense (4,046) (428) 170 Income tax expense $ 55,321 $ 35,257 $ 30,952 The difference between the reported income tax expense and a tax determined by applying the applicable U.S. federal statutory income tax rate to income before income taxes is reconciled as follows: (In thousands) 2020 2019 2018 Expected income tax expense $ 43,930 $ 34,892 $ 31,588 State and local income tax, net of federal benefit 5,949 3,234 3,495 Effect of foreign statutory rates different from U.S. and other foreign adjustments 2,783 (771) 759 Investment in unconsolidated affiliates (387) 538 (2,776) Effect of tax on accumulated foreign earnings — (111) (4,415) Other, net 3,046 (2,525) 2,301 Income tax expense $ 55,321 $ 35,257 $ 30,952 The Tax Cuts and Jobs Act (the Act) was enacted on December 22, 2017. The Act required companies to pay a one-time transition tax on the accumulated earnings of certain foreign subsidiaries. The Company applied the guidance in Staff Accounting Bulletin No. 118 in accounting for the enactment date effects of the Act. During the fourth quarter of 2018, the Company completed its accounting for all of the enactment-date income tax effects of the Act, and following the completion of the analysis of the calculation of the transition tax, the Company recorded a reduction to income tax expense of $4.4 million, or eight cents per diluted share, to reduce this liability. During 2019, the Treasury Department finalized regulation related to the calculation of the transition tax, the impact of which was immaterial to the Company’s Consolidated Financial Statements. The Company continues to assert that the undistributed earnings of most of its foreign subsidiaries are permanently reinvested. No taxes have been accrued with respect to these undistributed earnings or any outside basis differences. The Company has elected to provide for the tax expense related to global intangible low-taxed income (GILTI) in the year the tax is incurred. The Company includes interest and penalties related to income tax matters as a component of income tax expense, none of which was material in 2020, 2019, and 2018. The statute of limitations is open for the Company’s federal tax return for 2015 and for 2017 and all subsequent years. The statutes of limitations for most state returns are open for 2017 and all subsequent years, and some state and foreign returns are also open for some earlier tax years due to differing statute periods. The Internal Revenue Service is currently auditing the Company’s 2015 and 2017 tax returns. While the Company believes that it is adequately reserved for possible audit adjustments, the final resolution of these examinations cannot be determined with certainty and could result in final settlements that differ from current estimates. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: (In thousands) 2020 2019 Deferred tax assets: Inventories $ 13,910 $ 12,247 Other postretirement benefits and accrued items 11,477 9,271 Other reserves 7,782 6,834 Foreign tax attributes 6,250 5,909 State tax attributes, net of federal benefit 21,178 22,395 Stock-based compensation 3,751 3,378 Right of Use Liability 6,034 5,965 Basis difference in unconsolidated affiliates 8,478 6,547 Total deferred tax assets 78,860 72,546 Less valuation allowance (27,199) (23,130) Deferred tax assets, net of valuation allowance 51,661 49,416 Deferred tax liabilities: Property, plant, and equipment 48,990 47,791 Pension — 949 Right of Use Asset 6,157 5,967 Other Liabilities 638 311 Total deferred tax liabilities 55,785 55,018 Net deferred tax liabilities $ (4,124) $ (5,602) As of December 26, 2020, after consideration of the federal impact, the Company had state income tax credit carryforwards of $2.6 million, all of which expire by 2023, and other state income tax credit carryforwards of $9.0 million with unlimited lives. The Company had state net operating loss (NOL) carryforwards with potential tax benefits of $9.6 million, after consideration of the federal impact, expiring between 2021 and 2035. The state tax credit and NOL carryforwards are offset by valuation allowances totaling $12.0 million. As of December 26, 2020, the Company had other foreign tax attributes with potential tax benefits of $4.6 million that have an unlimited life. These attributes were offset by a valuation allowance totaling $3.4 million. The Company also had other foreign tax attributes of $1.6 million, which have limited lives expiring between 2034 and 2040. The Company has also recorded a valuation allowance against deferred tax assets related to the book-tax differences in investments in unconsolidated affiliates. Income taxes paid were approximately $49.3 million in 2020, $41.8 million in 2019, and $38.1 million in 2018. |
Equity
Equity | 12 Months Ended |
Dec. 26, 2020 | |
Equity [Abstract] | |
Equity | EquityThe Company’s Board of Directors has extended, until July 2021, its authorization to repurchase up to 20 million shares of the Company’s common stock through open market transactions or through privately negotiated transactions. The Company has no obligation to purchase any shares and may cancel, suspend, or extend the time period for the purchase of shares at any time. Any purchases will be funded primarily through existing cash and cash from operations. The Company may hold any shares purchased in treasury or use a portion of the repurchased shares for its stock-based compensation plans, as well as for other corporate purposes. From its initial authorization in 1999 through December 26, 2020, the Company has repurchased approximately 6.4 million shares under this authorization. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company has in effect stock incentive plans under which stock-based awards have been granted to certain employees and members of its Board of Directors. Under these existing plans, the Company may grant stock options, restricted stock awards, and performance stock awards. Approximately 1.6 million shares were available for future stock incentive awards at December 26, 2020. During the years ended December 26, 2020, December 28, 2019, and December 29, 2018, the Company recognized stock-based compensation, as a component of selling, general, and administrative expense, in its Consolidated Statements of Income of $8.6 million, $8.7 million, and $8.0 million, respectively. The total compensation expense not yet recognized related to stock incentive awards at December 26, 2020 was $20.8 million, with an average expense recognition period of 3.0 years. The Company generally issues treasury shares when stock options are exercised, or when restricted stock awards or performance stock awards are granted. A summary of the activity and related information follows: Stock Options Restricted Stock Awards Performance Stock Awards (Shares in thousands) Shares Weighted Average Exercise Price Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Beginning of period 939 $ 25.05 764 $ 31.44 $ 298 $ 31.08 Granted 28 24.33 120 29.00 197 29.61 Exercised/Released (158) 15.55 (176) 31.93 — — Forfeited (16) 31.63 (2) 32.36 — — End of period 793 $ 26.81 706 $ 30.89 495 $ 30.50 Stock Options Stock options are generally granted to purchase shares of common stock at an exercise price equal to the average of the high and low market price of the Company’s stock on the grant date. Generally, the awards vest within five years from the grant date. Any unexercised options expire after not more than ten years. The fair value of each option is estimated as a single award and amortized into compensation expense on a straight-line or accrual basis over its vesting period based on its vesting schedule. The Company estimates the fair value of all stock option awards as of the grant date by applying the Black-Scholes-Merton option pricing model. The use of this valuation model in the determination of compensation expense involves certain assumptions that are judgmental and/or highly sensitive including the expected life of the option, stock price volatility, risk-free interest rate, and dividend yield. Additionally, forfeitures are not estimated at the time of valuation; they are recognized as they occur. The weighted average of key assumptions used in determining the fair value of options granted and a discussion of the methodology used to develop each assumption are as follows: 2020 2019 2018 Fair value of stock options on grant date $ 6.81 $ 8.78 $ 9.64 Expected term 7.9 years 7.8 years 7.6 years Expected price volatility 31.9 % 28.6 % 27.2 % Risk-free interest rate 0.6 % 2.4 % 2.9 % Dividend yield 1.7 % 1.4 % 1.3 % Expected term – This is the period of time estimated based on historical experience over which the options granted are expected to remain outstanding. An increase in the expected term will increase compensation expense. Expected price volatility – This is a measure of the amount by which a price has fluctuated or is expected to fluctuate. The Company uses actual historical changes in the market value of its stock to calculate the volatility assumption. Daily market value changes from the grant date over a past period representative of the expected term of the options are used. An increase in the expected price volatility rate will increase compensation expense. Risk-free interest rate – This is the U.S. Treasury rate for the week of the grant, having a term representative of the expected term of the options. An increase in the risk-free rate will increase compensation expense. Dividend yield – This rate is the annual dividends per share as a percentage of the Company’s stock price. An increase in the dividend yield will decrease compensation expense. The total intrinsic value of options exercised was $2.4 million, $1.6 million, and $0.9 million in 2020, 2019, and 2018, respectively. The total fair value of options that vested was $0.7 million, $1.0 million, and $1.0 million in 2020, 2019, and 2018. At December 26, 2020, the aggregate intrinsic value of all outstanding options was $6.4 million with a weighted average remaining contractual term of 5.3 years. Of the outstanding options, 568 thousand are currently exercisable with an aggregate intrinsic value of $5.7 million, a weighted average exercise price of $24.92, and a weighted average remaining contractual term of 4.6 years. Restricted Stock Awards The fair value of each restricted stock award equals the fair value of the Company’s stock on the grant date and is amortized into compensation expense on a straight-line or accrual basis over its vesting period based on its vesting schedule. The weighted average grant-date fair value of awards granted during 2020, 2019, and 2018 was $29.00, $28.64, and $31.95, respectively. The aggregate intrinsic value of outstanding and unvested awards was $24.7 million at December 26, 2020. The total fair value of awards that vested was $5.6 million, $5.6 million, and $3.7 million in 2020, 2019, and 2018, respectively. Performance Stock Awards Performance stock awards require achievement of certain performance criteria which are predefined by the Compensation Committee of the Board of Directors at the time of grant. The fair value of each performance stock award equals the fair value of the Company’s stock on the grant date. Performance stock awards are vested and released at the end of the performance period if the predefined performance criteria are achieved. For all performance stock awards, in the event the certified results equal the predefined performance criteria, the Company will grant the number of shares equal to the target award. In the event the certified results exceed the predefined performance criteria, additional shares up to the maximum award will be granted. In the event the certified results fall below the predefined performance criteria but above the minimum threshold, a reduced number of shares will be granted. If the certified results fall below the minimum threshold, no shares will be granted. In the period it becomes probable that the minimum threshold specified in the award will be achieved, the Company recognizes expense for the proportionate share of the total fair value of the performance stock awards related to the vesting period that has already lapsed for the shares expected to vest and be released. The remaining fair value of the shares expected to vest and be released is expensed on a straight-line basis over the balance of the vesting period. In the event the Company determines it is no longer probable that it will achieve the minimum threshold specified in the award, all of the previously recognized compensation expense is reversed in the period such a determination is made. The weighted average grant-date fair value of awards granted during 2020, 2019, and 2018 was $29.61, $29.11, and $32.28, respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 26, 2020 | |
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 other post-employment benefit liabilities, and other comprehensive income attributable to unconsolidated affiliates. The following table provides changes in AOCI by component, net of taxes and noncontrolling interest (amounts in parentheses indicate debits to AOCI): (In thousands) Cumulative Translation Adjustment Unrealized (Loss) Gain on Derivatives Pension/ Attributable to Unconsol. Affiliates Total Balance at December 29, 2018 $ (54,257) $ (214) $ (24,967) $ (354) $ (79,792) Other comprehensive income (loss) before reclassifications 8,059 1,176 2,315 (839) 10,711 Amounts reclassified from AOCI — (486) 797 — 311 Balance at December 28, 2019 (46,198) 476 (21,855) (1,193) (68,770) Other comprehensive income (loss) before reclassifications 8,859 (4,583) (3,639) (132) 505 Amounts reclassified from AOCI — 5,091 8,291 — 13,382 Balance at December 26, 2020 $ (37,339) $ 984 $ (17,203) $ (1,325) $ (54,883) Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI (In thousands) 2020 2019 2018 Affected Line Item Unrealized losses (gains) on derivatives: Commodity contracts $ 6,337 $ (587) $ (429) Cost of goods sold (1,246) 101 58 Income tax (benefit) expense $ 5,091 $ (486) $ (371) Net of tax and noncontrolling interests Amortization of net loss (gain) and prior service cost on employee benefit plans $ 11,642 $ — $ — Pension plan termination expense (998) 960 341 Other income, net (2,353) (163) (38) Income tax benefit $ 8,291 $ 797 $ 303 Net of tax and noncontrolling interests |
Quarterly Financial Information
Quarterly Financial Information (Unaudited) | 12 Months Ended |
Dec. 26, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | Quarterly Financial Information (Unaudited) (1) (In thousands, except per share data) First Second Third Fourth 2020 Net sales $ 602,919 $ 500,168 $ 619,105 $ 675,851 Gross profit (2) 94,204 97,009 118,325 122,344 Consolidated net income (3) 33,951 28,487 43,957 37,254 Net income attributable to Mueller Industries, Inc. 32,415 27,956 42,702 36,420 Basic earnings per share 0.58 0.50 0.77 0.65 Diluted earnings per share 0.57 0.50 0.76 0.64 Dividends per share 0.10 0.10 0.10 0.10 2019 Net sales $ 611,781 $ 666,394 $ 608,602 $ 543,839 Gross profit (2) 100,388 102,446 97,814 94,358 Consolidated net income 17,139 28,676 30,444 29,973 Net income attributable to Mueller Industries, Inc. 15,723 27,986 29,093 28,170 Basic earnings per share 0.28 0.50 0.52 0.50 Diluted earnings per share 0.28 0.50 0.52 0.50 Dividends per share 0.10 0.10 0.10 0.10 (1) The sum of quarterly amounts may not equal the annual amounts reported due to rounding. In addition, the earnings per share amounts are computed independently for each quarter, while the full year is based on the weighted average shares outstanding. (2) Gross profit is net sales less cost of goods sold, which excludes depreciation and amortization. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 26, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On February 22, 2021, the Company announced that intends to issue on or about February 25, 2021 a notice of full redemption to the holders of its 6% Subordinated Debentures due 2027. On January 29, 2021, the Company entered into an asset purchase agreement with Hart & Cooley LLC, whereby the Company purchased the Hart & Cooley flexible duct business. The total purchase price was $14.0 million in cash paid at closing. The acquisition will expand the Company’s footprint in the air quality and climate control systems market and complement the existing flexible duct business within the Climate segment. |
SCHEDULE II-VALUATION AND QUALI
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 26, 2020 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS | MUELLER INDUSTRIES, INC. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS Years Ended December 26, 2020, December 28, 2019, and December 29, 2018 Additions (In thousands) Balance at beginning of year Charged to costs and expenses Other additions Deductions Balance at end 2020 Allowance for doubtful accounts $ 770 $ 1,208 $ — $ 440 $ 1,538 Environmental reserves $ 20,866 $ 4,242 $ — $ 1,107 $ 24,001 Valuation allowance for deferred tax assets $ 23,130 $ 2,317 $ 1,898 $ 146 $ 27,199 2019 Allowance for doubtful accounts $ 836 $ (81) $ 263 $ 248 $ 770 Environmental reserves $ 23,619 $ 1,659 $ — $ 4,412 $ 20,866 Valuation allowance for deferred tax assets $ 25,311 $ 2,919 $ 290 $ 5,390 $ 23,130 2018 Allowance for doubtful accounts $ 980 $ (286) $ 220 $ 78 $ 836 Environmental reserves $ 28,004 $ 1,981 $ — $ 6,366 $ 23,619 Valuation allowance for deferred tax assets $ 30,316 $ 1,209 $ 150 $ 6,364 $ 25,311 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 26, 2020 | |
Accounting Policies [Abstract] | |
Fiscal Years | Fiscal Years The Company’s fiscal year consists of 52 weeks ending on the last Saturday of December. These dates were December 26, 2020, December 28, 2019, and December 29, 2018. |
Basis of Presentation | Basis of Presentation The Consolidated Financial Statements include the accounts of Mueller Industries, Inc. and its majority-owned subsidiaries. The noncontrolling interest represents a private ownership interest of 40 percent of Jungwoo Metal Ind. Co., LTD (Jungwoo-Mueller). |
Revenue Recognition | Revenue Recognition Given the nature of the Company’s business and product offerings, sales transactions with customers are generally comprised of a single performance obligation that involves delivery of the products identified in the contracts with customers. Performance obligations are generally satisfied at the point in time of shipment and payment is generally due within sixty days. Variable consideration is estimated for future rebates on certain product lines and product returns. The Company records variable consideration as an adjustment to the transaction price in the period it is incurred. Since variable consideration is settled within a short period of time, the time value of money is not significant. The cost of shipping product to customers is expensed as incurred as a component of cost of goods sold. |
Acquisitions | AcquisitionsAccounting for acquisitions requires the Company to recognize separately from goodwill the assets acquired and liabilities assumed at their acquisition date fair values. Goodwill is measured as the excess of the purchase price over the net amount allocated to the identifiable assets acquired and liabilities assumed. While management uses its best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, the estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. The operating results generated by the acquired businesses are included in the Consolidated Statements of Income from their respective dates of acquisition. Acquisition related costs are expensed as incurred. |
Cash Equivalents and Restricted Cash | Cash Equivalents and Restricted Cash Temporary investments with original maturities of three months or less are considered to be cash equivalents. These investments are stated at cost. At December 26, 2020 and December 28, 2019, temporary investments consisted of money market mutual funds, commercial paper, bank repurchase agreements, and U.S. and foreign government securities totaling approximately $13.3 million and $0.5 million, respectively. |
Allowance for Doubtful Accounts | Allowance for Doubtful AccountsThe Company routinely grants credit to many of its customers without collateral. The risk of credit loss in trade receivables is substantially mitigated by the credit evaluation process. The Company provides an allowance for receivables that may not be fully collected. In circumstances where the Company is aware of a customer’s inability to meet their financial obligations (e.g., bankruptcy filings or substantial credit rating downgrades), it records an allowance for doubtful accounts against amounts due to reduce the net recognized receivable to the amount it believes most likely will be collected. For all other customers, the Company recognizes an allowance for doubtful accounts based on its historical collection experience and the impact of current economic conditions. If circumstances change (e.g., greater than expected defaults or an unexpected material change in a major customer’s ability to meet their financial obligations), the Company could change its estimate of the recoverability of amounts due by a material amount. Historically, credit losses have been within management’s expectations. |
Inventories | Inventories The Company’s inventories are valued at the lower-of-cost-or-market. The material component of its U.S. copper tube and copper fittings inventories is valued on a LIFO basis and the non-material components of U.S. copper tube and copper fittings inventories are valued on a FIFO basis. The material component of its U.K. and Canadian copper tube inventories are valued on a FIFO basis. The material component of its brass rod and forgings inventories are valued on a FIFO basis. Certain inventories are valued on an average cost basis. Elements of cost in finished goods inventory in addition to the cost of material include depreciation, amortization, utilities, maintenance, production wages, and transportation costs. |
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 |
Property, Plant, and Equipment | Property, Plant, and Equipment Property, plant, and equipment is stated at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. Depreciation of buildings, machinery, and equipment is provided on the straight-line method over the estimated useful lives ranging from 20 to 40 years for buildings and five |
Goodwill | Goodwill Goodwill is recognized for the excess of the purchase price over the fair value of tangible and identifiable intangible net assets of businesses acquired. Several factors give rise to goodwill in business acquisitions, such as the expected benefit from synergies of the combination and the existing workforce of the acquired business. Goodwill is evaluated annually for possible impairment as of the first day of the fourth quarter unless circumstances indicate the need to accelerate the timing of the evaluation. In the evaluation of goodwill impairment, management performs a qualitative assessment to determine if it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If the qualitative assessment is not conclusive, management compares the fair value of a reporting unit with its carrying amount and will recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, not to exceed the total amount of goodwill allocated to the reporting unit. |
Investment in Unconsolidated Affiliate | Investments in Unconsolidated Affiliates The Company owns a 50 percent interest in an unconsolidated affiliate that acquired Tecumseh Products Company (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 Consolidated Statements of Income. The Company’s proportionate share of the investees’ other comprehensive income (loss), net of income taxes, is recorded in the Consolidated Statements of Comprehensive Income and 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 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 Company also owns a 40 percent interest in Mueller Middle East BSC. |
Self-Insurance Accruals | Self-Insurance Accruals The Company is primarily self-insured for workers’ compensation claims and benefits paid under certain employee health care programs. Accruals are primarily based on estimated undiscounted cost of claims, which includes incurred but not reported claims, and are classified as accrued wages and other employee costs. |
Pension and Other Postretirement Benefit Plans | Pension and Other Postretirement Benefit Plans The Company sponsors several qualified and nonqualified pension and other postretirement benefit plans in the U.S. and certain foreign locations. The Company recognizes the overfunded or underfunded status of the plans as an asset or liability in the Consolidated Balance Sheets with changes in the funded status recorded through comprehensive income in the year in which those changes occur. The obligations for these plans are determined by actuaries and affected by the assumptions, including |
Environmental Reserves and Environmental Expenses | Environmental Reserves and Environmental Expenses The Company recognizes an environmental liability when it is probable the liability exists and the amount is reasonably estimable. The Company estimates the duration and extent of its remediation obligations based upon reports of outside consultants, internal and third party estimates and analyses of cleanup costs and ongoing monitoring costs, communications with regulatory agencies, and changes in environmental law. If the Company were to determine that its estimates of the duration or extent of its environmental obligations were no longer accurate, it would adjust environmental liabilities accordingly in the period that such determination is made. Estimated future expenditures for environmental remediation are not discounted to their present value. |
Earnings Per Share | Earnings Per ShareBasic earnings per share is computed based on the weighted average number of common shares outstanding. Diluted earnings per share reflects the increase in weighted average common shares outstanding that would result from the assumed exercise of outstanding stock options and vesting of restricted stock awards calculated using the treasury stock method. |
Income Taxes | Income Taxes Deferred income tax assets and liabilities are recognized when differences arise between the treatment of certain items for financial statement and tax purposes. Realization of certain components of deferred tax assets is dependent upon the occurrence of future events. The Company records valuation allowances to reduce its deferred tax assets to the amount it believes is more likely than not to be realized. These valuation allowances can be impacted by changes in tax laws, changes to statutory tax rates, and future taxable income levels and are based on the Company’s judgment, estimates, and assumptions regarding those future events. In the event the Company was to determine that it would not be able to realize all or a portion of the net deferred tax assets in the future, it would increase the valuation allowance through a charge to income tax expense in the period that such determination is made. Conversely, if it was to determine that it would be able to realize its deferred tax assets in the future, in excess of the net carrying amounts, the Company would decrease the recorded valuation allowance through a decrease to income tax expense in the period that such determination is made. The Company provides for uncertain tax positions and the related interest and penalties, if any, based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. Tax benefits for uncertain tax positions that are recognized in the financial statements are measured as the largest amount of benefit, determined on a cumulative probability basis, that is more likely than not to be realized upon ultimate settlement. To the extent the Company prevails in matters for which a liability for an uncertain tax position is established or is required to pay amounts in excess of the liability, the Company’s effective tax rate in a given financial statement period may be affected. |
Taxes Collected from Customers and Remitted to Governmental Authorities | Taxes Collected from Customers and Remitted to Governmental Authorities Taxes assessed by a governmental authority that are directly imposed on a revenue producing transaction between the Company and its customers, primarily value added taxes in foreign jurisdictions, are accounted for on a net (excluded from revenues and costs) basis. |
Stock-Based Compensation | Stock-Based CompensationThe Company has in effect stock incentive plans under which stock-based awards have been granted to certain employees and members of its Board of Directors. Stock-based compensation expense is recognized in the Consolidated Statements of Income as a component of selling, general, and administrative expense based on the grant date fair value of the awards. |
Concentrations of Credit and Market Risk | Concentrations of Credit and Market Risk Concentrations of credit risk with respect to accounts receivable are limited due to the large number of customers comprising the Company’s customer base, and their dispersion across different geographic areas and different industries, including HVAC, plumbing, refrigeration, hardware, automotive, OEMs, and others. The Company minimizes its exposure to base metal price fluctuations through various strategies. Generally, it prices an equivalent amount of copper raw material, under flexible pricing arrangements it maintains with its suppliers, at the time it determines the selling price of finished products to its customers. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company’s earnings and cash flows are subject to fluctuations due to changes in commodity prices, foreign currency exchange rates, and interest rates. The Company uses derivative instruments such as commodity futures contracts, foreign currency forward contracts, and interest rate swaps to manage these exposures. All derivatives are recognized in the 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 accumulated other comprehensive income (AOCI), to the extent effective, until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivative instruments executed as economic hedges 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 Consolidated Balance Sheets and linking cash flow hedges to specific forecasted transactions or variability of cash flow. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the designated derivative instruments that are used in hedging transactions are highly effective in offsetting changes in cash flow or fair values of hedged items. When a derivative instrument is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable of occurring, hedge accounting is discontinued prospectively in accordance with the derecognition criteria for hedge accounting. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying amounts for cash and cash equivalents, accounts receivable, and accounts payable approximate fair value due to the short-term maturity of these instruments. |
Foreign Currency Translation | Foreign Currency TranslationFor foreign subsidiaries for which the functional currency is not the U.S. dollar, balance sheet accounts are translated at exchange rates in effect at the end of the year and income statement accounts are translated at average exchange rates for the year. Translation gains and losses are included in equity as a component of AOCI. Transaction gains and losses that arise from exchange rate fluctuations on transactions denominated in a currency other than the functional currency are recognized in selling, general, and administrative expense in the Consolidated Statements of Income. |
Use of and Changes in Estimates | Use of and Changes in Estimates The preparation of financial statements in conformity with generally accepted accounting principles in the United States (U.S. GAAP) requires management to make estimates, assumptions, and judgments that affect the amounts reported in the financial statements and accompanying notes. Management makes its best estimate of the ultimate outcome for these items based on historical trends and other information available when the financial statements are prepared. Changes in estimates are recognized in accordance with the accounting rules for the estimate, which is typically in the period when new information becomes available to management. Areas where the nature of the estimate makes it reasonably possible that actual results could materially differ from amounts estimated include but are not limited to: pension and other postretirement benefit plan obligations, tax liabilities, loss contingencies, litigation claims, environmental reserves, and impairment assessments of long-lived assets (including goodwill). |
Recently Adopted and Issued Accounting Standards | Recently Adopted Accounting Standards In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Disclosure Framework- Measurement of Credit Losses on Financial Instruments . The ASU significantly changes the current incurred credit loss model under U.S. GAAP, which delays the recognition of credit losses until it is probable a loss has been incurred, to a current expected credit losses model which requires immediate recognition of management estimates of credit losses. The Company adopted the ASU during the first quarter of 2020 using a retrospective approach. The adoption of the ASU did not have a material impact on the Company’s Consolidated Financial Statements. 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 Company adopted the ASU during the first quarter of 2020 using a retrospective approach. The adoption of the ASU did not have a material impact on the Company’s 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 Company adopted the ASU during the first quarter of 2020. 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 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Business Combinations [Abstract] | |
Business Acquisition, Pro Forma Information | 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 Year Ended (In thousands, except per share data) 2018 Net sales $ 2,595,454 Net income 111,482 Basic earnings per share $ 1.96 Diluted earnings per share 1.95 |
Schedule of final valuation of the long-lived assets | The following table summarizes the allocation of the purchase price to acquire these businesses, which were financed by available cash balances, as well as the assets acquired and liabilities assumed at the respective acquisition dates. The purchase price allocations for Kessler and Shoals are provisional as of December 26, 2020 and subject to change upon the completion of the final valuation of long-lived assets during the measurement period. (In thousands) Kessler Shoals ATCO Die-Mold Total consideration $ 57,233 $ 15,415 $ 158,100 $ 13,629 Allocated to: Accounts receivable — 660 21,829 1,684 Inventories 25,106 1,809 31,666 1,833 Other current assets — 26 1,051 267 Property, plant, and equipment 3,561 3,700 83,080 3,278 Operating lease right-of-use assets 10,526 — — — Goodwill 11,710 (1) 1,964 (1) 17,236 (1) 4,239 Intangible assets 15,140 7,480 23,360 5,209 Other assets — — 224 — Total assets acquired 66,043 15,639 178,446 16,510 Accounts payable — 217 8,093 710 Current portion of operating lease liabilities 1,692 — — — Other current liabilities — 7 10,187 173 Long-term debt — — 2,066 — Noncurrent operating lease liabilities 7,118 — — — Other noncurrent liabilities — — — 1,998 Total liabilities assumed 8,810 224 20,346 2,881 Net assets acquired 57,233 15,415 $ 158,100 $ 13,629 (1) Tax-deductible goodwill |
Intangible assets identified in the allocation of the purchase price | The following details the total intangible assets identified in the allocation of the purchase price at the respective acquisition dates: (In thousands) Estimated Useful Life Kessler Shoals ATCO Die-Mold Intangible asset type: Customer relationships 20 years $ 11,180 $ 4,290 $ 6,550 $ 3,077 Non-compete agreements 3-5 years — 150 — 70 Patents and technology 10-15 years — 2,620 10,570 1,512 Trade names, licenses, and other 5-10 years 3,960 420 4,770 550 Supply contracts 5 years — — 1,470 — Total intangible assets $ 15,140 $ 7,480 $ 23,360 $ 5,209 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Segment Reporting [Abstract] | |
Net sales by major product line | The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category: For the Year Ended December 26, 2020 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 1,232,724 $ — $ — $ 1,232,724 Brass rod and forgings — 356,547 — 356,547 OEM components, tube & assemblies 56,176 42,127 138,551 236,854 Valves and plumbing specialties 294,102 — — 294,102 Other — 73,485 231,580 305,065 $ 1,583,002 $ 472,159 $ 370,131 $ 2,425,292 Intersegment sales (27,249) Net sales $ 2,398,043 For the Year Ended December 28, 2019 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 1,271,558 $ — $ — $ 1,271,558 Brass rod and forgings — 425,573 — 425,573 OEM components, tube & assemblies 29,103 48,104 133,651 210,858 Valves and plumbing specialties 241,795 — — 241,795 Other — 80,695 222,565 303,260 $ 1,542,456 $ 554,372 $ 356,216 $ 2,453,044 Intersegment sales (22,428) Net sales $ 2,430,616 Disaggregation of revenue from contracts with customers (continued): For the Year Ended December 29, 2018 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 1,352,875 $ — $ — $ 1,352,875 Brass rod and forgings — 501,472 — 501,472 OEM components, tube & assemblies 29,578 53,581 139,113 222,272 Valves and plumbing specialties 263,180 — — 263,180 Other — 96,008 89,956 185,964 $ 1,645,633 $ 651,061 $ 229,069 $ 2,525,763 Intersegment sales (17,885) Net sales $ 2,507,878 |
Summary of segment information | Summarized segment information is as follows: For the Year Ended December 26, 2020 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,583,002 $ 472,159 $ 370,131 $ (27,249) $ 2,398,043 Cost of goods sold 1,311,697 398,000 276,274 (19,810) 1,966,161 Depreciation and amortization 23,071 7,528 10,249 3,995 44,843 Selling, general, and administrative expense 78,744 12,566 26,806 41,367 159,483 Litigation settlement, net — — — (22,053) (22,053) Impairment charges 3,771 — — — 3,771 Operating income 165,719 54,065 56,802 (30,748) 245,838 Interest expense (19,247) Pension plan termination expense (17,835) Environmental expense (4,454) Other income, net 4,887 Income before income taxes $ 209,189 Segment information (continued): For the Year Ended December 28, 2019 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,542,456 $ 554,372 $ 356,216 $ (22,428) $ 2,430,616 Cost of goods sold 1,313,980 473,010 273,850 (25,230) 2,035,610 Depreciation and amortization 22,621 7,489 9,298 3,285 42,693 Selling, general, and administrative expense 75,170 12,359 30,385 44,444 162,358 (Gain) loss on sale of assets, net (1,194) 275 (44) — (963) Insurance recovery — (485) — — (485) Operating income 131,879 61,724 42,727 (44,927) 191,403 Interest expense (25,683) Environmental expense (1,321) Other income, net 1,684 Income before income taxes $ 166,083 For the Year Ended December 29, 2018 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,645,633 $ 651,061 $ 229,069 $ (17,885) $ 2,507,878 Cost of goods sold 1,426,729 559,367 182,456 (18,152) 2,150,400 Depreciation and amortization 23,304 7,568 5,569 3,114 39,555 Selling, general, and administrative expense 74,864 13,501 16,926 43,597 148,888 Gain on sale of assets, net (2,093) (1,301) — 3,141 (253) Insurance recovery — (3,681) — — (3,681) Operating income 122,829 75,607 24,118 (49,585) 172,969 Interest expense (25,199) Environmental expense (1,320) Other income, net 3,967 Income before income taxes $ 150,417 |
Geographic information | Summarized geographic information is as follows: (In thousands) 2020 2019 2018 Net sales: United States $ 1,765,810 $ 1,775,321 $ 1,820,857 United Kingdom 207,754 230,791 245,458 Canada 293,776 285,720 292,798 Asia 58,256 64,363 59,730 Mexico 72,447 74,421 89,035 $ 2,398,043 $ 2,430,616 $ 2,507,878 (In thousands) 2020 2019 2018 Long-lived assets: United States $ 289,508 $ 286,727 $ 295,735 United Kingdom 30,872 18,776 16,313 Canada 29,582 31,429 33,144 Asia 26,107 25,637 24,930 Mexico 503 559 511 $ 376,572 $ 363,128 $ 370,633 |
Segment information by assets | (In thousands) 2020 2019 2018 Expenditures for long-lived assets (including those resulting from business acquisitions): Piping Systems $ 39,209 $ 15,505 $ 31,362 Industrial Metals 5,968 9,101 8,066 Climate 5,521 3,845 85,471 General Corporate 448 2,711 37 $ 51,146 $ 31,162 $ 124,936 Segment assets: Piping Systems $ 977,937 $ 796,262 $ 818,303 Industrial Metals 152,683 161,904 173,725 Climate 258,668 249,853 246,851 General Corporate 139,280 162,921 130,670 $ 1,528,568 $ 1,370,940 $ 1,369,549 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash, cash equivalents and restricted cash | (In thousands) 2020 2019 Cash & cash equivalents $ 119,075 $ 97,944 Restricted cash included within other current assets 8,198 — Restricted cash included within other assets 103 98 Total cash, cash equivalents, and restricted cash $ 127,376 $ 98,042 |
Schedule of cash, cash equivalents and restricted cash | (In thousands) 2020 2019 Cash & cash equivalents $ 119,075 $ 97,944 Restricted cash included within other current assets 8,198 — Restricted cash included within other assets 103 98 Total cash, cash equivalents, and restricted cash $ 127,376 $ 98,042 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | (In thousands) 2020 2019 Raw materials and supplies $ 85,927 $ 85,769 Work-in-process 49,361 48,814 Finished goods 186,785 163,842 Valuation reserves (7,071) (6,318) Inventories $ 315,002 $ 292,107 |
Consolidated Financial Statem_2
Consolidated Financial Statement Details (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other income, net | Other Income, Net (In thousands) 2020 2019 2018 Net periodic benefit income $ 3,013 $ 465 $ 2,914 Interest income 1,101 722 624 Other 773 497 429 Other income, net $ 4,887 $ 1,684 $ 3,967 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
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 2020 2019 Balance Sheet Location 2020 2019 Commodity contracts - gains Other current assets $ 1,213 $ 1,435 Other current liabilities $ 68 $ 50 Commodity contracts - losses Other current assets (8) (12) Other current liabilities (5,863) (159) Total derivatives (1) $ 1,205 $ 1,423 $ (5,795) $ (109) (1) Does not include the impact of cash collateral provided to counterparties . |
Schedule of fair value hedges | The following table summarizes the effects of derivative instruments on the Consolidated Statements of Income: (In thousands) Location 2020 2019 Undesignated derivatives: (Loss) gain on commodity contracts (nonqualifying) Cost of goods sold $ (8,893) $ 2,443 |
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: Year Ended December 26, 2020 (In thousands) Loss Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Loss Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (4,579) Cost of goods sold $ 5,091 Other (4) Other — Total $ (4,583) Total $ 5,091 Year Ended December 28, 2019 (In thousands) 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 $ 1,161 Cost of goods sold $ (486) Other 15 Other — Total $ 1,176 Total $ (486) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
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) December 26, 2020 December 28, 2019 Operating lease right-of-use assets $ 29,301 $ 26,922 Current portion of operating lease liabilities 6,259 5,250 Noncurrent operating lease liabilities 21,602 22,388 Total operating lease liabilities $ 27,861 $ 27,638 Weighted average discount rate 3.91% 5.82% Weighted average remaining lease term (in years) 5.99 8.35 |
Schedule of Operating Lease Cost and Payments | The following table presents certain information related to operating lease costs and cash paid during the period: For the Year Ended (In thousands) December 28, 2019 December 28, 2019 Operating lease costs $ 7,039 $ 6,818 Short term lease costs 4,734 4,951 Total lease costs $ 11,773 $ 11,769 Cash paid for amounts included in the measurement of lease liabilities $ 7,040 $ 6,703 |
Schedule of Maturities of Operating Leases | Maturities of the Company’s operating leases are as follows: (In thousands) Amount 2021 $ 7,353 2022 6,489 2023 4,553 2024 3,382 2025 2,376 2026 and thereafter 7,254 Total lease payments 31,407 Less imputed interest (3,546) Total lease obligations 27,861 Less current obligations (6,259) Noncurrent lease obligations $ 21,602 |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, Net (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, plant, and equipment, net | (In thousands) 2020 2019 Land and land improvements $ 33,602 $ 31,987 Buildings 218,319 203,762 Machinery and equipment 658,613 640,642 Construction in progress 28,631 18,920 939,165 895,311 Less accumulated depreciation (562,593) (532,183) Property, plant, and equipment, net $ 376,572 $ 363,128 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill by segment were as follows: (In thousands) Piping Systems Industrial Metals Climate Total Goodwill $ 168,700 $ 8,854 $ 22,186 $ 199,740 Accumulated impairment charges (40,552) (8,853) — (49,405) Balance at December 29, 2018: 128,148 1 22,186 150,335 Additions (1) 1,999 — — 1,999 Reductions (2) — — (534) (534) Currency translation 1,476 — — 1,476 Balance at December 28, 2019: 131,623 1 21,652 153,276 Additions 11,710 — 1,964 13,674 Currency translation 814 — — 814 Balance at December 26, 2020: Goodwill 184,699 8,854 23,616 217,169 Accumulated impairment charges (40,552) (8,853) — (49,405) Goodwill, net $ 144,147 $ 1 $ 23,616 $ 167,764 (1) Includes finalization of the purchase price allocation adjustment for Die-Mold of $2.0 million. |
Carrying amount of intangible assets | The carrying amount of intangible assets at December 26, 2020 was as follows: (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 61,068 $ (11,676) $ 49,392 Non-compete agreements 2,689 (2,527) 162 Patents and technology 22,585 (5,672) 16,913 Trade names and licenses 14,631 (4,476) 10,155 Other 1,676 (1,091) 585 Other intangible assets $ 102,649 $ (25,442) $ 77,207 The carrying amount of intangible assets at December 28, 2019 was as follows: (In thousands) Gross Carrying Amount Accumulated Amortization Net Carrying Amount Customer relationships $ 44,832 $ (8,773) $ 36,059 Non-compete agreements 2,499 (2,156) 343 Patents and technology 19,804 (4,060) 15,744 Trade names and licenses 10,155 (3,249) 6,906 Other 1,676 (646) 1,030 Other intangible assets $ 78,966 $ (18,884) $ 60,082 |
Amortization expense for intangible assets | Future amortization expense is estimated as follows: (In thousands) Amount 2021 $ 6,393 2022 6,311 2023 6,000 2024 5,769 2025 5,743 Thereafter 46,991 Expected amortization expense $ 77,207 |
Investment in Unconsolidated _2
Investment in Unconsolidated Affiliates (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
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) 2020 2019 Current assets $ 167,451 $ 198,559 Noncurrent assets 78,241 87,218 Current liabilities 120,202 147,801 Noncurrent liabilities 50,020 51,219 Net sales $ 384,919 $ 488,270 Gross profit 50,347 58,494 Net loss (20,892) (44,053) |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | (In thousands) 2020 2019 Subordinated Debentures with interest at 6.00%, due 2027 $ 284,479 $ 284,479 Revolving Credit Facility with interest at 1.52%, due 2021 35,000 90,000 Jungwoo-Mueller credit facility with interest at 1.90%, due 2021 5,811 — Jungwoo-Mueller credit facility with interest at 2.55%, due 2020 — 5,768 2001 Series IRB's with interest at 1.14%, due 2021 250 1,250 Other 2,555 5,295 328,095 386,792 Less debt issuance costs (219) (538) Less current portion of debt (41,283) (7,530) Long-term debt $ 286,593 $ 378,724 |
Debt instrument redemption | If redeemed during the 12-month period beginning March 9: Year Redemption Price 2020 103% 2021 102 2022 and thereafter 100 |
Aggregate annual maturities of debt | Aggregate annual maturities of the Company’s debt are as follows: (In thousands) Amount 2021 $ 41,283 2022 222 2023 222 2024 222 2025 167 Thereafter 285,979 Long-term debt $ 328,095 |
Net interest expense | Net interest expense consisted of the following: (In thousands) 2020 2019 2018 Interest expense $ 19,510 $ 25,957 $ 25,349 Capitalized interest (263) (274) (150) $ 19,247 $ 25,683 $ 25,199 |
Benefit Plans (Tables)
Benefit Plans (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Retirement Benefits [Abstract] | |
Reconciliation of the changes in the plans' benefit obligations and the fair value of the plans assets | The following tables provide a reconciliation of the changes in the most significant plans’ benefit obligations and the fair value of the plans’ assets for 2020 and 2019, and a statement of the plans’ aggregate funded status: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Change in benefit obligation: Obligation at beginning of year $ 182,164 $ 166,739 $ 12,653 $ 14,382 Service cost — — 212 260 Interest cost 3,260 5,972 430 609 Actuarial loss (gain) 10,790 17,061 422 (1,860) Plan amendments — — (26) — Benefit payments (9,214) (9,883) (716) (832) Curtailment — — (183) — Settlement (1) (99,585) — — (198) Foreign currency translation adjustment 3,394 2,275 (10) 292 Obligation at end of year 90,809 182,164 12,782 12,653 Change in fair value of plan assets: Fair value of plan assets at beginning of year 183,486 164,603 — — Actual return on plan assets 13,313 26,734 — — Employer contributions — — 716 832 Benefit payments (9,214) (9,883) (716) (832) Settlement (1) (99,585) — — — Surplus assets (1) (12,386) — — — Foreign currency translation adjustment 2,866 2,032 — — Fair value of plan assets at end of year 78,480 183,486 — — Funded (underfunded) status at end of year $ (12,329) $ 1,322 $ (12,782) $ (12,653) (1) In November 2019, the Company’s Board of Directors approved the termination of the U.S. defined benefit pension plan. There were no impacts to consolidated results for 2019. Settlement accounting criteria was met in Q4 2020, therefore, all resulting settlement charges occurred in 2020. The plan termination resulted in incremental benefit payments of approximately $100.0 million and termination costs of $17.8 million, which consisted of an $11.6 million non-cash |
Amounts recognized in accumulated OCI (before the effect of income taxes) | The following represents amounts recognized in AOCI (before the effect of income taxes): Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Unrecognized net actuarial loss (gain) $ 26,476 $ 36,195 $ (1,187) $ (1,609) Unrecognized prior service credit — — (2,401) (5,485) |
Funded status of the plans recognized | As of December 26, 2020 and December 28, 2019, the total funded status of the plans recognized in the Consolidated Balance Sheets was as follows: Pension Benefits Other Benefits (In thousands) 2020 2019 2020 2019 Long-term asset $ — $ 8,592 $ — $ — Current liability — — (948) (1,013) Long-term liability (12,329) (7,270) (11,834) (11,640) Total (underfunded) funded status $ (12,329) $ 1,322 $ (12,782) $ (12,653) |
Components of net periodic benefit costs | The components of net periodic benefit cost (income) are as follows: (In thousands) 2020 2019 2018 Pension benefits: Service cost $ — $ — $ 88 Interest cost 3,260 5,972 5,745 Expected return on plan assets (5,704) (8,103) (9,522) Amortization of net loss 2,305 1,950 1,151 Settlement charge 11,642 — — Net periodic benefit cost (income) $ 11,503 $ (181) $ (2,538) Other benefits: Service cost $ 212 $ 260 $ 235 Interest cost 430 609 447 Amortization of prior service credit (519) (902) (902) Amortization of net (gain) loss (193) (88) 92 Curtailment gain (2,591) — — Settlement charge — (2) 38 Net periodic benefit income $ (2,661) $ (123) $ (90) |
Weighted average assumptions used in the measurement of the Company's benefit obligation and net periodic benefit cost are as follows | The weighted average assumptions used in the measurement of the Company’s benefit obligations are as follows: Pension Benefits Other Benefits 2020 2019 2020 2019 Discount rate 1.40 % 1.93 % 2.92 % 3.70 % Expected long-term return on plan assets 4.69 % 3.84 % N/A N/A Rate of compensation increases N/A N/A 5.00 % 5.00 % Rate of inflation 3.20 % 3.20 % N/A N/A The weighted average assumptions used in the measurement of the Company’s net periodic benefit cost are as follows: Pension Benefits Other Benefits 2020 2019 2018 2020 2019 2018 Discount rate 1.93 % 3.72 % 3.22 % 3.70 % 4.56 % 3.89 % Expected long-term return on plan assets 3.84 % 5.05 % 5.27 % N/A N/A N/A Rate of compensation increases N/A N/A N/A 5.00 % 5.00 % 5.00 % Rate of inflation 3.20 % 3.40 % 3.30 % N/A N/A N/A |
Weighted average asset allocation of the Company’s pension fund assets are as follows | The weighted average asset allocation of the Company’s pension fund assets are as follows: Pension Plan Assets Asset category 2020 2019 Fixed income securities (includes fixed income mutual funds) — % 55 % Equity securities (includes equity mutual funds) 66 25 Multi-asset securities 24 9 Cash and equivalents (includes money market funds) 1 7 Alternative investments 9 4 Total 100 % 100 % |
Plan assets at fair value within the fair value hierarchy, by level | The following table sets forth by level, within the fair value hierarchy, the assets of the plans at fair value: Fair Value Measurements at December 26, 2020 (In thousands) Level 1 Level 2 Level 3 Total Cash and money market funds $ 492 $ — $ — $ 492 Mutual funds (1) — 71,084 — 71,084 Limited partnerships — — 6,904 6,904 Total $ 492 $ 71,084 $ 6,904 $ 78,480 Fair Value Measurements at December 28, 2019 (In thousands) Level 1 Level 2 Level 3 Total Cash and money market funds $ 12,318 $ — $ — $ 12,318 Mutual funds (2) — 163,253 — 163,253 Limited partnerships — — 7,915 7,915 Total $ 12,318 $ 163,253 $ 7,915 $ 183,486 (1) Approximately 76 percent of mutual funds are actively managed funds and approximately 24 percent of mutual funds are index funds. Additionally, 27 percent of the mutual funds’ assets are invested in non-U.S. multi-asset securities and 73 percent in non-U.S. equities. (2) Approximately 80 percent of mutual funds are actively managed funds and approximately 20 percent of mutual funds are index funds. Additionally, 10 percent of the mutual funds’ assets are invested in non-U.S. multi-asset securities, 28 percent in non-U.S. equities, 62 percent in U.S. fixed income securities. |
Plan assets measured at fair value using significant unobservable inputs | The table below reflects the changes in the assets of the plan measured at fair value on a recurring basis using significant unobservable inputs (level 3 of fair value hierarchy) during the year ended December 26, 2020: (In thousands) Limited Partnerships Balance, December 28, 2019 $ 7,915 Surplus assets (1,104) Net appreciation in fair value 93 Balance, December 26, 2020 $ 6,904 |
Future benefit plans payments | The Company expects future benefits to be paid from the plans as follows: (In thousands) Pension Benefits Other Benefits 2021 $ 3,428 $ 947 2022 2,945 942 2023 3,050 1,016 2024 3,160 977 2025 3,273 974 2026-2030 18,210 4,700 Total $ 34,066 $ 9,556 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of income before income taxes | The components of income before income taxes were taxed under the following jurisdictions: (In thousands) 2020 2019 2018 Domestic $ 144,770 $ 112,812 $ 105,455 Foreign 64,419 53,271 44,962 Income before income taxes $ 209,189 $ 166,083 $ 150,417 |
Components of income tax expense | Income tax expense consists of the following: (In thousands) 2020 2019 2018 Current tax expense: Federal $ 37,964 $ 19,066 $ 17,974 Foreign 16,221 12,727 9,650 State and local 5,182 3,892 3,158 Current tax expense 59,367 35,685 30,782 Deferred tax (benefit) expense: Federal (5,991) 1,725 (1,381) Foreign 90 (2,311) 551 State and local 1,855 158 1,000 Deferred tax (benefit) expense (4,046) (428) 170 Income tax expense $ 55,321 $ 35,257 $ 30,952 |
Income tax reconciliation | The difference between the reported income tax expense and a tax determined by applying the applicable U.S. federal statutory income tax rate to income before income taxes is reconciled as follows: (In thousands) 2020 2019 2018 Expected income tax expense $ 43,930 $ 34,892 $ 31,588 State and local income tax, net of federal benefit 5,949 3,234 3,495 Effect of foreign statutory rates different from U.S. and other foreign adjustments 2,783 (771) 759 Investment in unconsolidated affiliates (387) 538 (2,776) Effect of tax on accumulated foreign earnings — (111) (4,415) Other, net 3,046 (2,525) 2,301 Income tax expense $ 55,321 $ 35,257 $ 30,952 |
Components of deferred tax assets and liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below: (In thousands) 2020 2019 Deferred tax assets: Inventories $ 13,910 $ 12,247 Other postretirement benefits and accrued items 11,477 9,271 Other reserves 7,782 6,834 Foreign tax attributes 6,250 5,909 State tax attributes, net of federal benefit 21,178 22,395 Stock-based compensation 3,751 3,378 Right of Use Liability 6,034 5,965 Basis difference in unconsolidated affiliates 8,478 6,547 Total deferred tax assets 78,860 72,546 Less valuation allowance (27,199) (23,130) Deferred tax assets, net of valuation allowance 51,661 49,416 Deferred tax liabilities: Property, plant, and equipment 48,990 47,791 Pension — 949 Right of Use Asset 6,157 5,967 Other Liabilities 638 311 Total deferred tax liabilities 55,785 55,018 Net deferred tax liabilities $ (4,124) $ (5,602) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Weighted average assumptions used in calculating fair value of stock options | The weighted average of key assumptions used in determining the fair value of options granted and a discussion of the methodology used to develop each assumption are as follows: 2020 2019 2018 Fair value of stock options on grant date $ 6.81 $ 8.78 $ 9.64 Expected term 7.9 years 7.8 years 7.6 years Expected price volatility 31.9 % 28.6 % 27.2 % Risk-free interest rate 0.6 % 2.4 % 2.9 % Dividend yield 1.7 % 1.4 % 1.3 % |
Summary of the stock option activity | A summary of the activity and related information follows: Stock Options Restricted Stock Awards Performance Stock Awards (Shares in thousands) Shares Weighted Average Exercise Price Shares Weighted Average Grant Date Fair Value Shares Weighted Average Grant Date Fair Value Beginning of period 939 $ 25.05 764 $ 31.44 $ 298 $ 31.08 Granted 28 24.33 120 29.00 197 29.61 Exercised/Released (158) 15.55 (176) 31.93 — — Forfeited (16) 31.63 (2) 32.36 — — End of period 793 $ 26.81 706 $ 30.89 495 $ 30.50 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Equity [Abstract] | |
Changes in AOCI by component, net of taxes and noncontrolling interest | The following table provides changes in AOCI by component, net of taxes and noncontrolling interest (amounts in parentheses indicate debits to AOCI): (In thousands) Cumulative Translation Adjustment Unrealized (Loss) Gain on Derivatives Pension/ Attributable to Unconsol. Affiliates Total Balance at December 29, 2018 $ (54,257) $ (214) $ (24,967) $ (354) $ (79,792) Other comprehensive income (loss) before reclassifications 8,059 1,176 2,315 (839) 10,711 Amounts reclassified from AOCI — (486) 797 — 311 Balance at December 28, 2019 (46,198) 476 (21,855) (1,193) (68,770) Other comprehensive income (loss) before reclassifications 8,859 (4,583) (3,639) (132) 505 Amounts reclassified from AOCI — 5,091 8,291 — 13,382 Balance at December 26, 2020 $ (37,339) $ 984 $ (17,203) $ (1,325) $ (54,883) |
Reclassification adjustments out of AOCI | Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI (In thousands) 2020 2019 2018 Affected Line Item Unrealized losses (gains) on derivatives: Commodity contracts $ 6,337 $ (587) $ (429) Cost of goods sold (1,246) 101 58 Income tax (benefit) expense $ 5,091 $ (486) $ (371) Net of tax and noncontrolling interests Amortization of net loss (gain) and prior service cost on employee benefit plans $ 11,642 $ — $ — Pension plan termination expense (998) 960 341 Other income, net (2,353) (163) (38) Income tax benefit $ 8,291 $ 797 $ 303 Net of tax and noncontrolling interests |
Quarterly Financial Informati_2
Quarterly Financial Information (Unaudited) (Tables) | 12 Months Ended |
Dec. 26, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly financial information (Unaudited) | (In thousands, except per share data) First Second Third Fourth 2020 Net sales $ 602,919 $ 500,168 $ 619,105 $ 675,851 Gross profit (2) 94,204 97,009 118,325 122,344 Consolidated net income (3) 33,951 28,487 43,957 37,254 Net income attributable to Mueller Industries, Inc. 32,415 27,956 42,702 36,420 Basic earnings per share 0.58 0.50 0.77 0.65 Diluted earnings per share 0.57 0.50 0.76 0.64 Dividends per share 0.10 0.10 0.10 0.10 2019 Net sales $ 611,781 $ 666,394 $ 608,602 $ 543,839 Gross profit (2) 100,388 102,446 97,814 94,358 Consolidated net income 17,139 28,676 30,444 29,973 Net income attributable to Mueller Industries, Inc. 15,723 27,986 29,093 28,170 Basic earnings per share 0.28 0.50 0.52 0.50 Diluted earnings per share 0.28 0.50 0.52 0.50 Dividends per share 0.10 0.10 0.10 0.10 (1) The sum of quarterly amounts may not equal the annual amounts reported due to rounding. In addition, the earnings per share amounts are computed independently for each quarter, while the full year is based on the weighted average shares outstanding. (2) Gross profit is net sales less cost of goods sold, which excludes depreciation and amortization. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Noncontrolling Interest [Line Items] | |||
Temporary investments | $ 13,300 | $ 500 | |
Allowance for doubtful accounts | $ 1,538 | $ 770 | |
Operating lease renewal term | 5 years | ||
Specified percentage over which unrecognized gains and losses are amortized | 10.00% | ||
Average remaining service period for the pension plans | 11 years 6 months | ||
Stock-based awards excluded from the computation of diluted earnings per share (in shares) | 10,000 | 0 | |
Foreign currency transaction gains (losses) | $ (500) | $ 200 | $ (1,000) |
Minimum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Operating lease, lease term | 1 year | ||
Maximum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Operating lease, lease term | 15 years | ||
Tecumseh Products Holdings LLC [Member] | |||
Noncontrolling Interest [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Second Unconsolidated Affiliate [Member] | |||
Noncontrolling Interest [Line Items] | |||
Equity method investment, ownership percentage | 50.00% | ||
Mueller Middle East BSC [Member] | |||
Noncontrolling Interest [Line Items] | |||
Equity method investment, ownership percentage | 40.00% | ||
Building [Member] | Minimum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Building [Member] | Maximum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Machinery and Equipment [Member] | Minimum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Machinery and Equipment [Member] | Maximum [Member] | |||
Noncontrolling Interest [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Jungwoo Metal Ind. Co., LTD [Member] | |||
Noncontrolling Interest [Line Items] | |||
Non-controlling ownership interest | 40.00% |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Aug. 03, 2020 | Jan. 17, 2020 | Jul. 02, 2018 | Mar. 31, 2018 | Dec. 26, 2020 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 |
Business Acquisition [Line Items] | ||||||||
Cash paid for acquisition | $ 72,648 | $ (3,465) | $ 167,677 | |||||
Wieland-Kessler LLC Asset Acquisition [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Asset acquisition, cash paid | $ 57,200 | |||||||
Asset acquisition, revenue from acquiree | $ 55,000 | |||||||
Total consideration paid | 57,233 | |||||||
Net assets acquired | $ 57,233 | |||||||
Shoals Tubular, Inc. [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration paid | $ 15,415 | |||||||
Net assets acquired | $ 15,415 | |||||||
ATCO Rubber Product [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration paid | $ 158,100 | |||||||
Cash paid for acquisition | 151,800 | |||||||
Contingent consideration, range of outcomes, high | 12,000 | |||||||
Revenues of acquired company | $ 196,500 | $ 190,100 | ||||||
Net sales since acquisition | $ 90,000 | |||||||
Net assets acquired | $ 158,100 | |||||||
Die-Mold [Member] | ||||||||
Business Acquisition [Line Items] | ||||||||
Total consideration paid | $ 13,629 | |||||||
Contingent consideration, range of outcomes, high | 2,300 | |||||||
Net assets acquired | 13,629 | |||||||
Cash paid for acquisition | $ 12,400 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information (Details) - ATCO Rubber Product [Member] $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 29, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Net sales | $ | $ 2,595,454 |
Net income | $ | $ 111,482 |
Basic earnings per share (in dollars per share) | $ / shares | $ 1.96 |
Diluted earnings per share (in dollars per share) | $ / shares | $ 1.95 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identifiable Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Aug. 03, 2020 | Jan. 17, 2020 | Jul. 02, 2018 | Mar. 31, 2018 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 |
Business Acquisition [Line Items] | |||||||
Goodwill | $ 167,764 | $ 153,276 | $ 150,335 | ||||
Wieland-Kessler LLC Asset Acquisition [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration | $ 57,233 | ||||||
Accounts receivable | 0 | ||||||
Inventories | 25,106 | ||||||
Other current assets | 0 | ||||||
Property, plant, and equipment | 3,561 | ||||||
Operating lease right-of-use assets | 10,526 | ||||||
Goodwill, tax deductible amount | 11,710 | ||||||
Goodwill | 11,710 | ||||||
Intangible assets | 15,140 | ||||||
Other assets | 0 | ||||||
Total assets acquired | 66,043 | ||||||
Accounts payable | 0 | ||||||
Other current liabilities | 0 | ||||||
Long-term debt | 0 | ||||||
Other noncurrent liabilities | 0 | ||||||
Total liabilities assumed | 8,810 | ||||||
Net assets acquired | 57,233 | ||||||
Asset acquisition, cash paid | $ 57,200 | ||||||
Shoals Tubular, Inc. [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration | $ 15,415 | ||||||
Accounts receivable | 660 | ||||||
Inventories | 1,809 | ||||||
Other current assets | 26 | ||||||
Property, plant, and equipment | 3,700 | ||||||
Operating lease right-of-use assets | 0 | ||||||
Goodwill, tax deductible amount | 1,964 | ||||||
Goodwill | 1,964 | ||||||
Intangible assets | 7,480 | ||||||
Other assets | 0 | ||||||
Total assets acquired | 15,639 | ||||||
Accounts payable | 217 | ||||||
Other current liabilities | 7 | ||||||
Long-term debt | 0 | ||||||
Other noncurrent liabilities | 0 | ||||||
Total liabilities assumed | 224 | ||||||
Net assets acquired | $ 15,415 | ||||||
ATCO Rubber Product [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration | $ 158,100 | ||||||
Accounts receivable | 21,829 | ||||||
Inventories | 31,666 | ||||||
Other current assets | 1,051 | ||||||
Property, plant, and equipment | 83,080 | ||||||
Operating lease right-of-use assets | 0 | ||||||
Goodwill, tax deductible amount | 17,236 | ||||||
Goodwill | 17,236 | ||||||
Intangible assets | 23,360 | ||||||
Other assets | 224 | ||||||
Total assets acquired | 178,446 | ||||||
Accounts payable | 8,093 | ||||||
Other current liabilities | 10,187 | ||||||
Long-term debt | 2,066 | ||||||
Other noncurrent liabilities | 0 | ||||||
Total liabilities assumed | 20,346 | ||||||
Net assets acquired | $ 158,100 | ||||||
Die-Mold [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Total consideration | $ 13,629 | ||||||
Accounts receivable | 1,684 | ||||||
Inventories | 1,833 | ||||||
Other current assets | 267 | ||||||
Property, plant, and equipment | 3,278 | ||||||
Operating lease right-of-use assets | 0 | ||||||
Goodwill, tax deductible amount | 4,239 | ||||||
Goodwill | 4,239 | ||||||
Intangible assets | 5,209 | ||||||
Other assets | 0 | ||||||
Total assets acquired | 16,510 | ||||||
Accounts payable | 710 | ||||||
Other current liabilities | 173 | ||||||
Long-term debt | 0 | ||||||
Other noncurrent liabilities | 1,998 | ||||||
Total liabilities assumed | 2,881 | ||||||
Net assets acquired | $ 13,629 |
Acquisitions - Schedule of Inta
Acquisitions - Schedule of Intangible Assets Identified (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 26, 2020 | Aug. 03, 2020 | Jan. 17, 2020 | Jul. 02, 2018 | Mar. 31, 2018 | |
Wieland-Kessler LLC Asset Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 15,140 | ||||
Shoals Tubular, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 7,480 | ||||
ATCO Rubber Product [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 23,360 | ||||
Die-Mold [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 5,209 | ||||
Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 20 years | ||||
Customer Relationships [Member] | Wieland-Kessler LLC Asset Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 11,180 | ||||
Customer Relationships [Member] | Shoals Tubular, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 4,290 | ||||
Customer Relationships [Member] | ATCO Rubber Product [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 6,550 | ||||
Customer Relationships [Member] | Die-Mold [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 3,077 | ||||
Noncompete Agreements [Member] | Wieland-Kessler LLC Asset Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 0 | ||||
Noncompete Agreements [Member] | Shoals Tubular, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 150 | ||||
Noncompete Agreements [Member] | ATCO Rubber Product [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 0 | ||||
Noncompete Agreements [Member] | Die-Mold [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 70 | ||||
Patents and technology [Member] | Wieland-Kessler LLC Asset Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 0 | ||||
Patents and technology [Member] | Shoals Tubular, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 2,620 | ||||
Patents and technology [Member] | ATCO Rubber Product [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 10,570 | ||||
Patents and technology [Member] | Die-Mold [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 1,512 | ||||
Trade names and licenses [Member] | Wieland-Kessler LLC Asset Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 3,960 | ||||
Trade names and licenses [Member] | Shoals Tubular, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 420 | ||||
Trade names and licenses [Member] | ATCO Rubber Product [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 4,770 | ||||
Trade names and licenses [Member] | Die-Mold [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | 550 | ||||
Supply Contracts [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 5 years | ||||
Supply Contracts [Member] | Wieland-Kessler LLC Asset Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 0 | ||||
Supply Contracts [Member] | Shoals Tubular, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 0 | ||||
Supply Contracts [Member] | ATCO Rubber Product [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 1,470 | ||||
Supply Contracts [Member] | Die-Mold [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets | $ 0 | ||||
Minimum [Member] | Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 3 years | ||||
Minimum [Member] | Patents and technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 10 years | ||||
Minimum [Member] | Trade names and licenses [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 5 years | ||||
Maximum [Member] | Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 5 years | ||||
Maximum [Member] | Patents and technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 15 years | ||||
Maximum [Member] | Trade names and licenses [Member] | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, useful life | 10 years |
Segment Information - Narrative
Segment Information - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenue from External Customer [Line Items] | |||
Impairment charges | $ 3,771 | $ 0 | $ 0 |
Gain on sale of manufacturing equipment | (132) | 963 | 253 |
Non-cash pension plan termination expense | 11,642 | 0 | 0 |
Gain (loss) on sale of assets | 0 | 963 | 253 |
Piping Systems [Member] | |||
Revenue from External Customer [Line Items] | |||
Impairment charges | 3,800 | ||
Gain on sale of real property | 1,200 | 1,400 | |
Gain on sale of manufacturing equipment | 700 | ||
Operating Segments [Member] | Piping Systems [Member] | |||
Revenue from External Customer [Line Items] | |||
Impairment charges | 3,771 | ||
Gain (loss) on sale of assets | 1,194 | 2,093 | |
Operating Segments [Member] | Industrial Metals [Member] | |||
Revenue from External Customer [Line Items] | |||
Impairment charges | $ 0 | ||
Gain (loss) on sale of assets | (275) | 1,301 | |
Insurance recovery | $ 500 | $ 3,700 |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | $ 675,851 | $ 619,105 | $ 500,168 | $ 602,919 | $ 543,839 | $ 608,602 | $ 666,394 | $ 611,781 | $ 2,398,043 | $ 2,430,616 | $ 2,507,878 |
Cost of goods sold | 1,966,161 | 2,035,610 | 2,150,400 | ||||||||
Depreciation and amortization | 44,843 | 42,693 | 39,555 | ||||||||
Selling, general, and administrative expense | 159,483 | 162,358 | 148,888 | ||||||||
Gain on sale of assets, net | 0 | (963) | (253) | ||||||||
Litigation settlement, net | (22,053) | 0 | 0 | ||||||||
Insurance recovery | 0 | (485) | (3,681) | ||||||||
Impairment charges | 3,771 | 0 | 0 | ||||||||
Operating income | 245,838 | 191,403 | 172,969 | ||||||||
Interest expense | (19,247) | (25,683) | (25,199) | ||||||||
Pension plan termination expense | (17,835) | 0 | 0 | ||||||||
Environmental expense | (4,454) | (1,321) | (1,320) | ||||||||
Other income, net | 4,887 | 1,684 | 3,967 | ||||||||
Income before income taxes | 209,189 | 166,083 | 150,417 | ||||||||
Expenditures for long-lived assets | 51,146 | 31,162 | 124,936 | ||||||||
Segment assets | 1,528,568 | 1,370,940 | 1,528,568 | 1,370,940 | 1,369,549 | ||||||
Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 2,425,292 | 2,453,044 | 2,525,763 | ||||||||
Intersegment Eliminations [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | (27,249) | (22,428) | (17,885) | ||||||||
Corporate Segment [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | (27,249) | (22,428) | (17,885) | ||||||||
Cost of goods sold | (19,810) | (25,230) | (18,152) | ||||||||
Depreciation and amortization | 3,995 | 3,285 | 3,114 | ||||||||
Selling, general, and administrative expense | 41,367 | 44,444 | 43,597 | ||||||||
Gain on sale of assets, net | 0 | 3,141 | |||||||||
Litigation settlement, net | (22,053) | ||||||||||
Insurance recovery | 0 | 0 | |||||||||
Impairment charges | 0 | ||||||||||
Operating income | (30,748) | (44,927) | (49,585) | ||||||||
Expenditures for long-lived assets | 448 | 2,711 | 37 | ||||||||
Segment assets | 139,280 | 162,921 | 139,280 | 162,921 | 130,670 | ||||||
Piping Systems [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Impairment charges | 3,800 | ||||||||||
Piping Systems [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 1,583,002 | 1,542,456 | 1,645,633 | ||||||||
Cost of goods sold | 1,311,697 | 1,313,980 | 1,426,729 | ||||||||
Depreciation and amortization | 23,071 | 22,621 | 23,304 | ||||||||
Selling, general, and administrative expense | 78,744 | 75,170 | 74,864 | ||||||||
Gain on sale of assets, net | (1,194) | (2,093) | |||||||||
Litigation settlement, net | 0 | ||||||||||
Insurance recovery | 0 | 0 | |||||||||
Impairment charges | 3,771 | ||||||||||
Operating income | 165,719 | 131,879 | 122,829 | ||||||||
Expenditures for long-lived assets | 39,209 | 15,505 | 31,362 | ||||||||
Segment assets | 977,937 | 796,262 | 977,937 | 796,262 | 818,303 | ||||||
Industrial Metals [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 472,159 | 554,372 | 651,061 | ||||||||
Cost of goods sold | 398,000 | 473,010 | 559,367 | ||||||||
Depreciation and amortization | 7,528 | 7,489 | 7,568 | ||||||||
Selling, general, and administrative expense | 12,566 | 12,359 | 13,501 | ||||||||
Gain on sale of assets, net | 275 | (1,301) | |||||||||
Litigation settlement, net | 0 | ||||||||||
Insurance recovery | (485) | (3,681) | |||||||||
Impairment charges | 0 | ||||||||||
Operating income | 54,065 | 61,724 | 75,607 | ||||||||
Expenditures for long-lived assets | 5,968 | 9,101 | 8,066 | ||||||||
Segment assets | 152,683 | 161,904 | 152,683 | 161,904 | 173,725 | ||||||
Climate [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 370,131 | 356,216 | 229,069 | ||||||||
Cost of goods sold | 276,274 | 273,850 | 182,456 | ||||||||
Depreciation and amortization | 10,249 | 9,298 | 5,569 | ||||||||
Selling, general, and administrative expense | 26,806 | 30,385 | 16,926 | ||||||||
Gain on sale of assets, net | (44) | 0 | |||||||||
Litigation settlement, net | 0 | ||||||||||
Insurance recovery | 0 | 0 | |||||||||
Impairment charges | 0 | ||||||||||
Operating income | 56,802 | 42,727 | 24,118 | ||||||||
Expenditures for long-lived assets | 5,521 | 3,845 | 85,471 | ||||||||
Segment assets | $ 258,668 | $ 249,853 | 258,668 | 249,853 | 246,851 | ||||||
Tube and fittings [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 1,232,724 | 1,271,558 | 1,352,875 | ||||||||
Tube and fittings [Member] | Piping Systems [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 1,232,724 | 1,271,558 | 1,352,875 | ||||||||
Tube and fittings [Member] | Industrial Metals [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Tube and fittings [Member] | Climate [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Brass rod and forgings [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 356,547 | 425,573 | 501,472 | ||||||||
Brass rod and forgings [Member] | Piping Systems [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Brass rod and forgings [Member] | Industrial Metals [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 356,547 | 425,573 | 501,472 | ||||||||
Brass rod and forgings [Member] | Climate [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
OEM components, tube and assemblies [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 236,854 | 210,858 | 222,272 | ||||||||
OEM components, tube and assemblies [Member] | Piping Systems [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 56,176 | 29,103 | 29,578 | ||||||||
OEM components, tube and assemblies [Member] | Industrial Metals [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 42,127 | 48,104 | 53,581 | ||||||||
OEM components, tube and assemblies [Member] | Climate [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 138,551 | 133,651 | 139,113 | ||||||||
Valves and plumbing specialties [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 294,102 | 241,795 | 263,180 | ||||||||
Valves and plumbing specialties [Member] | Piping Systems [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 294,102 | 241,795 | 263,180 | ||||||||
Valves and plumbing specialties [Member] | Industrial Metals [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Valves and plumbing specialties [Member] | Climate [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Other products [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 305,065 | 303,260 | 185,964 | ||||||||
Other products [Member] | Piping Systems [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 0 | 0 | 0 | ||||||||
Other products [Member] | Industrial Metals [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | 73,485 | 80,695 | 96,008 | ||||||||
Other products [Member] | Climate [Member] | Operating Segments [Member] | |||||||||||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||||||||
Net sales | $ 231,580 | $ 222,565 | $ 89,956 |
Segment Information - Schedule
Segment Information - Schedule of Geographic Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 675,851 | $ 619,105 | $ 500,168 | $ 602,919 | $ 543,839 | $ 608,602 | $ 666,394 | $ 611,781 | $ 2,398,043 | $ 2,430,616 | $ 2,507,878 |
Long-lived assets | 376,572 | 363,128 | 376,572 | 363,128 | 370,633 | ||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 1,765,810 | 1,775,321 | 1,820,857 | ||||||||
Long-lived assets | 289,508 | 286,727 | 289,508 | 286,727 | 295,735 | ||||||
United Kingdom [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 207,754 | 230,791 | 245,458 | ||||||||
Long-lived assets | 30,872 | 18,776 | 30,872 | 18,776 | 16,313 | ||||||
Canada [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 293,776 | 285,720 | 292,798 | ||||||||
Long-lived assets | 29,582 | 31,429 | 29,582 | 31,429 | 33,144 | ||||||
Asia [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 58,256 | 64,363 | 59,730 | ||||||||
Long-lived assets | 26,107 | 25,637 | 26,107 | 25,637 | 24,930 | ||||||
Mexico [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | 72,447 | 74,421 | 89,035 | ||||||||
Long-lived assets | $ 503 | $ 559 | $ 503 | $ 559 | $ 511 |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 30, 2017 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 119,075 | $ 97,944 | ||
Restricted cash included within other current assets | 8,198 | 0 | ||
Restricted cash included within other assets | 103 | 98 | ||
Total cash, cash equivalents, and restricted cash | $ 127,376 | $ 98,042 | $ 77,138 | $ 126,563 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 85,927 | $ 85,769 |
Work-in-process | 49,361 | 48,814 |
Finished goods | 186,785 | 163,842 |
Valuation reserves | (7,071) | (6,318) |
Inventories | $ 315,002 | $ 292,107 |
Inventories - Narrative (Detail
Inventories - Narrative (Details) - USD ($) $ in Millions | Dec. 26, 2020 | Dec. 28, 2019 |
Inventory Disclosure [Abstract] | ||
LIFO inventory amount | $ 17.3 | $ 16.8 |
FIFO cost of inventories | 108.1 | 87.8 |
FIFO value of inventory consigned to others | $ 6.4 | $ 5.5 |
Consolidated Financial Statem_3
Consolidated Financial Statement Details (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Other Current Liabilities [Abstract] | |||
Accrued discounts and allowances | $ 56,000 | $ 53,900 | |
Accrued interest | 5,400 | 6,000 | |
Taxes payable, current | 6,300 | 4,700 | |
Environmental expense, non operating properties | 2,700 | 900 | |
Net loss positions on derivative contracts | 6,300 | 200 | |
Accruals for excise tax | 6,400 | ||
Accruals for contingent consideration arrangements | 7,000 | ||
Other (Expense) Income, Net [Abstract] | |||
Net periodic benefit income | 3,013 | 465 | $ 2,914 |
Interest income | 1,101 | 722 | 624 |
Other | 773 | 497 | 429 |
Other income, net | $ 4,887 | $ 1,684 | $ 3,967 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Derivative [Line Items] | ||
Restricted cash in other current assets as collateral related to open derivative contracts | $ 7.6 | $ 0.2 |
Commodity Contract [Member] | ||
Derivative [Line Items] | ||
Deferred net gains (losses), net of tax, included in AOCI | 0.8 | |
Cash Flow Hedging [Member] | Commodity Contract [Member] | Long [Member] | ||
Derivative [Line Items] | ||
Open future contracts to purchase copper | $ 5.4 | |
Time period for open copper future contract | 12 months | |
Fair value of future contracts with gain (loss) position | $ 1.2 | |
Fair Value Hedging [Member] | Commodity Contract [Member] | Short [Member] | ||
Derivative [Line Items] | ||
Fair value of future contracts with gain (loss) position | (5.8) | |
Open future contracts to sell copper | $ 49.4 | |
Time period for open copper future contract sales | 5 months |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Derivative Assets and Liabilities (Details) - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Derivatives, Fair Value [Line Items] | ||
Assets fair value | $ 1,205 | $ 1,423 |
Liabilities fair value | (5,795) | (109) |
Other Current Asset [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other current assets: Gain positions | 1,213 | 1,435 |
Other current assets: Loss positions | (8) | (12) |
Other Current Liabilities [Member] | Commodity Contract [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Other current liability: Gain positions | 68 | 50 |
Other current liability: Loss positions | $ (5,863) | $ (159) |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Effects on Statement of Income and Amounts Recognized In and Reclassified From AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax | $ (4,583) | $ 1,176 |
Gain (Loss) Reclassified from AOCI (Effective Portion), Net of Tax | 5,091 | (486) |
Commodity Contract [Member] | Not Designated as Hedging Instrument [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
(Loss) gain on commodity contracts (nonqualifying) | (8,893) | 2,443 |
Commodity Contract [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax | (4,579) | 1,161 |
Commodity Contract [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Reclassified from AOCI (Effective Portion), Net of Tax | 5,091 | (486) |
Other [Member] | Cash Flow Hedging [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax | (4) | 15 |
Other [Member] | Cash Flow Hedging [Member] | Other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
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 | Dec. 26, 2020 | Dec. 28, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 29,301 | $ 26,922 |
Current portion of operating lease liabilities | 6,259 | 5,250 |
Noncurrent operating lease liabilities | 21,602 | 22,388 |
Total operating lease liabilities | $ 27,861 | $ 27,638 |
Weighted average discount rate (as a percent) | 3.91% | 5.82% |
Weighted average remaining lease term (in years) | 5 years 11 months 26 days | 8 years 4 months 6 days |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Leases [Abstract] | ||
Operating lease costs | $ 7,039 | $ 6,818 |
Short term lease costs | 4,734 | 4,951 |
Total lease costs | 11,773 | 11,769 |
Cash paid for amounts included in the measurement of lease liabilities | $ 7,040 | $ 6,703 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Leases (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Leases [Abstract] | ||
2021 | $ 7,353 | |
2022 | 6,489 | |
2023 | 4,553 | |
2024 | 3,382 | |
2025 | 2,376 | |
2026 and thereafter | 7,254 | |
Total lease payments | 31,407 | |
Less imputed interest | (3,546) | |
Total operating lease liabilities | 27,861 | $ 27,638 |
Less current obligations | (6,259) | (5,250) |
Noncurrent lease obligations | $ 21,602 | $ 22,388 |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 939,165 | $ 895,311 | |
Less accumulated depreciation | (562,593) | (532,183) | |
Property, plant, and equipment, net | 376,572 | 363,128 | |
Depreciation | 38,715 | 37,337 | $ 35,118 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 33,602 | 31,987 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 218,319 | 203,762 | |
Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | 658,613 | 640,642 | |
Construction in Progress [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, gross | $ 28,631 | $ 18,920 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Changes in Carrying Amount of Goodwill (Details) - USD ($) | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Goodwill [Roll Forward] | |||
Goodwill | $ 199,740,000 | ||
Accumulated impairment charges, beginning of year | (49,405,000) | ||
Goodwill, net, beginning balance | $ 153,276,000 | 150,335,000 | |
Additions | 13,674,000 | 1,999,000 | |
Reduction | (534,000) | ||
Currency translation | 814,000 | 1,476,000 | |
Goodwill | 217,169,000 | $ 199,740,000 | |
Accumulated impairment loss, end of year | (49,405,000) | (49,405,000) | |
Goodwill, net, ending balance | 167,764,000 | 153,276,000 | 150,335,000 |
Impairment charges | 0 | 0 | 0 |
Die-Mold [Member] | |||
Goodwill [Roll Forward] | |||
Purchase price allocation adjustments | 2,000,000 | ||
ATCO Rubber Product [Member] | |||
Goodwill [Roll Forward] | |||
Purchase price allocation adjustments | 500,000 | ||
Piping Systems [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 168,700,000 | ||
Accumulated impairment charges, beginning of year | (40,552,000) | ||
Goodwill, net, beginning balance | 131,623,000 | 128,148,000 | |
Additions | 11,710,000 | 1,999,000 | |
Reduction | 0 | ||
Currency translation | 814,000 | 1,476,000 | |
Goodwill | 184,699,000 | 168,700,000 | |
Accumulated impairment loss, end of year | (40,552,000) | (40,552,000) | |
Goodwill, net, ending balance | 144,147,000 | 131,623,000 | 128,148,000 |
Industrial Metals [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 8,854,000 | ||
Accumulated impairment charges, beginning of year | (8,853,000) | ||
Goodwill, net, beginning balance | 1,000 | 1,000 | |
Additions | 0 | 0 | |
Reduction | 0 | ||
Currency translation | 0 | 0 | |
Goodwill | 8,854,000 | 8,854,000 | |
Accumulated impairment loss, end of year | (8,853,000) | (8,853,000) | |
Goodwill, net, ending balance | 1,000 | 1,000 | 1,000 |
Climate [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill | 22,186,000 | ||
Accumulated impairment charges, beginning of year | 0 | ||
Goodwill, net, beginning balance | 21,652,000 | 22,186,000 | |
Additions | 1,964,000 | 0 | |
Reduction | (534,000) | ||
Currency translation | 0 | 0 | |
Goodwill | 23,616,000 | 22,186,000 | |
Accumulated impairment loss, end of year | 0 | 0 | |
Goodwill, net, ending balance | $ 23,616,000 | $ 21,652,000 | $ 22,186,000 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Carrying amount of intangible assets [Abstract] | |||
Net Carrying Amount | $ 77,207 | ||
Amortization | 6,100 | $ 5,400 | $ 4,400 |
Customer relationships [Member] | |||
Carrying amount of intangible assets [Abstract] | |||
Gross Carrying Amount | 61,068 | 44,832 | |
Accumulated Amortization | (11,676) | (8,773) | |
Net Carrying Amount | 49,392 | 36,059 | |
Non-compete agreements [Member] | |||
Carrying amount of intangible assets [Abstract] | |||
Gross Carrying Amount | 2,689 | 2,499 | |
Accumulated Amortization | (2,527) | (2,156) | |
Net Carrying Amount | 162 | 343 | |
Patents and technology [Member] | |||
Carrying amount of intangible assets [Abstract] | |||
Gross Carrying Amount | 22,585 | 19,804 | |
Accumulated Amortization | (5,672) | (4,060) | |
Net Carrying Amount | 16,913 | 15,744 | |
Trade names and licenses [Member] | |||
Carrying amount of intangible assets [Abstract] | |||
Gross Carrying Amount | 14,631 | 10,155 | |
Accumulated Amortization | (4,476) | (3,249) | |
Net Carrying Amount | 10,155 | 6,906 | |
Other [Member] | |||
Carrying amount of intangible assets [Abstract] | |||
Gross Carrying Amount | 1,676 | 1,676 | |
Accumulated Amortization | (1,091) | (646) | |
Net Carrying Amount | 585 | 1,030 | |
Other intangible assets [Member] | |||
Carrying amount of intangible assets [Abstract] | |||
Gross Carrying Amount | 102,649 | 78,966 | |
Accumulated Amortization | (25,442) | (18,884) | |
Net Carrying Amount | $ 77,207 | $ 60,082 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Future Amortization Expense (Details) $ in Thousands | Dec. 26, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
2021 | $ 6,393 |
2022 | 6,311 |
2023 | 6,000 |
2024 | 5,769 |
2025 | 5,743 |
Thereafter | 46,991 |
Expected amortization expense | $ 77,207 |
Investment in Unconsolidated _3
Investment in Unconsolidated Affiliates - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | 60 Months Ended | |||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | Dec. 26, 2020 | |
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Net gains (losses) from unconsolidated affiliates | $ 37,254 | $ 43,957 | $ 28,487 | $ 33,951 | $ 29,973 | $ 30,444 | $ 28,676 | $ 17,139 | $ 143,649 | $ 106,232 | $ 106,820 | |
Tecumseh Products Holdings LLC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Interest in joint venture | 50.00% | 50.00% | 50.00% | |||||||||
Net gains (losses) from unconsolidated affiliates | $ (10,400) | (22,000) | ||||||||||
Second Unconsolidated Affiliate [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Interest in joint venture | 50.00% | 50.00% | 50.00% | |||||||||
Cayan Ventures and Bahrain Mumtalakat Holding Company [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Interest in joint venture | 40.00% | 40.00% | 40.00% | |||||||||
Cash invested in joint venture | $ 5,000 | |||||||||||
Mueller Middle East BSC [Member] | ||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||
Interest in joint venture | 40.00% | 40.00% | 40.00% | |||||||||
Net gains (losses) from unconsolidated affiliates | $ 200 | $ (2,600) | ||||||||||
Sales to subsidiaries | $ 37,400 |
Investment in Unconsolidated _4
Investment in Unconsolidated Affiliates - Summary of Financial Information of Equity Method Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Balance sheet data [Abstract] | |||||||||||
Current assets | $ 825,361 | $ 693,772 | $ 825,361 | $ 693,772 | |||||||
Current liabilities | 339,643 | 234,287 | 339,643 | 234,287 | |||||||
Income statement data [Abstract] | |||||||||||
Net sales | 675,851 | $ 619,105 | $ 500,168 | $ 602,919 | 543,839 | $ 608,602 | $ 666,394 | $ 611,781 | 2,398,043 | 2,430,616 | $ 2,507,878 |
Gross profit | 122,344 | 118,325 | 97,009 | 94,204 | 94,358 | 97,814 | 102,446 | 100,388 | |||
Net gains (losses) from unconsolidated affiliates | 37,254 | $ 43,957 | $ 28,487 | $ 33,951 | 29,973 | $ 30,444 | $ 28,676 | $ 17,139 | 143,649 | 106,232 | $ 106,820 |
Equity Method Investment, Nonconsolidated Investee or Group of Investees [Member] | |||||||||||
Balance sheet data [Abstract] | |||||||||||
Current assets | 167,451 | 198,559 | 167,451 | 198,559 | |||||||
Noncurrent assets | 78,241 | 87,218 | 78,241 | 87,218 | |||||||
Current liabilities | 120,202 | 147,801 | 120,202 | 147,801 | |||||||
Noncurrent liabilities | $ 50,020 | $ 51,219 | 50,020 | 51,219 | |||||||
Income statement data [Abstract] | |||||||||||
Net sales | 384,919 | 488,270 | |||||||||
Gross profit | 50,347 | 58,494 | |||||||||
Net gains (losses) from unconsolidated affiliates | $ (20,892) | $ (44,053) |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 328,095 | $ 386,792 |
Less debt issuance costs | (219) | (538) |
Less current portion of debt | (41,283) | (7,530) |
Long-term debt | $ 286,593 | 378,724 |
Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Debt, stated interest rate (as a percent) | 6.00% | |
Long-term debt, gross | $ 284,479 | 284,479 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt, stated interest rate (as a percent) | 1.52% | |
Long-term debt, gross | $ 35,000 | 90,000 |
Jungwoo Mueller Line of Credit Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt, stated interest rate (as a percent) | 1.90% | |
Long-term debt, gross | $ 5,811 | 0 |
Jungwoo Mueller Line of Credit Due 2020 [Member] | ||
Debt Instrument [Line Items] | ||
Debt, stated interest rate (as a percent) | 2.55% | |
Long-term debt, gross | $ 0 | 5,768 |
2001 Series IRB's With Interest at 1.23% Due 2021 [Member] | ||
Debt Instrument [Line Items] | ||
Debt, stated interest rate (as a percent) | 1.14% | |
Long-term debt, gross | $ 250 | 1,250 |
Other [Member] | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 2,555 | $ 5,295 |
Debt - Narrative (Details)
Debt - Narrative (Details) | Mar. 09, 2017$ / shares | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 26, 2020KRW (₩) |
Debt Instrument [Line Items] | |||||
Cash dividend (in dollars per share) | $ / shares | $ 3 | ||||
Cash dividend, subordinated debentures (in dollars per share) | $ / shares | $ 5 | ||||
Interest paid | $ 19,800,000 | $ 25,400,000 | $ 25,200,000 | ||
Subordinated Debt [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt, stated interest rate (as a percent) | 6.00% | 6.00% | |||
Debt instrument, call feature, period, latest | 5 years | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility, current borrowing capacity | $ 350,000,000 | ||||
Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Outstanding letters of credit | 19,400,000 | ||||
Jungwoo-Mueller [Member] | |||||
Debt Instrument [Line Items] | |||||
Line of credit facility maximum borrowing capacity | $ 23,500,000 | ₩ 25,800,000,000 | |||
Minimum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility commitment fee | 0.15% | ||||
Maximum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Credit facility commitment fee | 0.30% | ||||
LIBOR [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.375% | ||||
LIBOR [Member] | Minimum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.125% | ||||
LIBOR [Member] | Maximum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 1.625% | ||||
Base Rate [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.375% | ||||
Base Rate [Member] | Minimum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.125% | ||||
Base Rate [Member] | Maximum [Member] | Credit Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 0.625% |
Debt - Redemption Schedule (Det
Debt - Redemption Schedule (Details) - Subordinated Debt [Member] | 12 Months Ended |
Dec. 26, 2020 | |
2020 [Member] | |
Debt Instrument [Line Items] | |
Redemption Price | 103.00% |
2021 [Member] | |
Debt Instrument [Line Items] | |
Redemption Price | 102.00% |
2022 and thereafter [Member] | |
Debt Instrument [Line Items] | |
Redemption Price | 100.00% |
Debt - Aggregate Annual Maturit
Debt - Aggregate Annual Maturities (Details) $ in Thousands | Dec. 26, 2020USD ($) |
Long-term Debt, Fiscal Year Maturity [Abstract] | |
2021 | $ 41,283 |
2022 | 222 |
2023 | 222 |
2024 | 222 |
2025 | 167 |
Thereafter | 285,979 |
Long-term debt | $ 328,095 |
Debt - Net Interest Expense (De
Debt - Net Interest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |||
Interest expense | $ 19,510 | $ 25,957 | $ 25,349 |
Capitalized interest | (263) | (274) | (150) |
Net interest expense | $ 19,247 | $ 25,683 | $ 25,199 |
Benefit Plans - Benefit Plan In
Benefit Plans - Benefit Plan Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Change in fair value of plan assets: | |||
Beginning balance | $ 183,486 | ||
Surplus assets | 12,400 | ||
Ending balance | 78,480 | $ 183,486 | |
Incremental benefit payments | 100,000 | ||
Actuarial net loss | $ 900 | ||
Payable maximum period to be considered current | 12 months | ||
Components of net periodic benefit cost [Abstract] | |||
Net periodic benefit (income) cost | $ (3,013) | (465) | $ (2,914) |
Weighted average assumptions in net periodic benefit calculations [Abstract] | |||
Ultimate health care cost trend rate | 4.10% | ||
Minimum [Member] | |||
Weighted average assumptions in net periodic benefit calculations [Abstract] | |||
Annual assumed rate of increase in the per capita cost of covered benefits | 4.30% | ||
Maximum [Member] | |||
Weighted average assumptions in net periodic benefit calculations [Abstract] | |||
Annual assumed rate of increase in the per capita cost of covered benefits | 8.70% | ||
Pension Plan [Member] | |||
Change in benefit obligation [Roll Forward] | |||
Obligation at beginning of year | $ 182,164 | 166,739 | |
Service cost | 0 | 0 | 88 |
Interest cost | 3,260 | 5,972 | 5,745 |
Actuarial loss (gain) | 10,790 | 17,061 | |
Plan amendments | 0 | 0 | |
Benefit payments | (9,214) | (9,883) | |
Curtailment | 0 | 0 | |
Settlement | (99,585) | 0 | |
Foreign currency translation adjustment | 3,394 | 2,275 | |
Obligation at end of year | 90,809 | 182,164 | 166,739 |
Change in fair value of plan assets: | |||
Beginning balance | 183,486 | 164,603 | |
Actual return on plan assets | 13,313 | 26,734 | |
Employer contributions | 0 | 0 | |
Benefit payments | (9,214) | (9,883) | |
Settlement | (99,585) | 0 | |
Surplus assets | 12,386 | 0 | |
Foreign currency translation adjustment | 2,866 | 2,032 | |
Ending balance | 78,480 | 183,486 | 164,603 |
Funded (underfunded) status at end of year | (12,329) | 1,322 | |
Plan termination, termination costs | 17,800 | ||
Plan termination, federal excise tax | 6,200 | ||
Unrecognized net actuarial loss (gain) | 26,476 | 36,195 | |
Unrecognized prior service credit | 0 | 0 | |
Funded status of the plans recognized [Abstract] | |||
Long-term asset | 0 | 8,592 | |
Current liability | 0 | 0 | |
Long-term liability | (12,329) | (7,270) | |
Total (underfunded) funded status | (12,329) | 1,322 | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | 0 | 0 | 88 |
Interest cost | 3,260 | 5,972 | 5,745 |
Expected return on plan assets | (5,704) | (8,103) | (9,522) |
Amortization of net (gain) loss | 2,305 | 1,950 | 1,151 |
Settlement charge | 11,642 | 0 | 0 |
Net periodic benefit (income) cost | $ 11,503 | $ (181) | $ (2,538) |
Weighted average assumptions in benefit obligations calculations [Abstract] | |||
Discount rate | 1.40% | 1.93% | |
Expected long-term return on plan assets | 4.69% | 3.84% | |
Rate of inflation | 3.20% | 3.20% | |
Weighted average assumptions in net periodic benefit calculations [Abstract] | |||
Discount rate | 1.93% | 3.72% | 3.22% |
Expected long-term return on plan assets | 3.84% | 5.05% | 5.27% |
Rate of inflation | 3.20% | 3.40% | 3.30% |
Other Postretirement Benefits Plan [Member] | |||
Change in benefit obligation [Roll Forward] | |||
Obligation at beginning of year | $ 12,653 | $ 14,382 | |
Service cost | 212 | 260 | $ 235 |
Interest cost | 430 | 609 | 447 |
Actuarial loss (gain) | 422 | (1,860) | |
Plan amendments | (26) | 0 | |
Benefit payments | (716) | (832) | |
Curtailment | (183) | 0 | |
Settlement | 0 | (198) | |
Foreign currency translation adjustment | (10) | 292 | |
Obligation at end of year | 12,782 | 12,653 | 14,382 |
Change in fair value of plan assets: | |||
Beginning balance | 0 | 0 | |
Actual return on plan assets | 0 | 0 | |
Employer contributions | 716 | 832 | |
Benefit payments | (716) | (832) | |
Settlement | 0 | 0 | |
Surplus assets | 0 | 0 | |
Foreign currency translation adjustment | 0 | 0 | |
Ending balance | 0 | 0 | 0 |
Funded (underfunded) status at end of year | (12,782) | (12,653) | |
Unrecognized net actuarial loss (gain) | (1,187) | (1,609) | |
Unrecognized prior service credit | (2,401) | (5,485) | |
Funded status of the plans recognized [Abstract] | |||
Long-term asset | 0 | 0 | |
Current liability | (948) | (1,013) | |
Long-term liability | (11,834) | (11,640) | |
Total (underfunded) funded status | (12,782) | (12,653) | |
Components of net periodic benefit cost [Abstract] | |||
Service cost | 212 | 260 | 235 |
Interest cost | 430 | 609 | 447 |
Amortization of net (gain) loss | (193) | (88) | 92 |
Amortization of prior service credit | (519) | (902) | (902) |
Curtailment gain | (2,591) | 0 | 0 |
Settlement charge | 0 | (2) | 38 |
Net periodic benefit (income) cost | $ (2,661) | $ (123) | $ (90) |
Weighted average assumptions in benefit obligations calculations [Abstract] | |||
Discount rate | 2.92% | 3.70% | |
Rate of compensation increases | 5.00% | 5.00% | |
Weighted average assumptions in net periodic benefit calculations [Abstract] | |||
Discount rate | 3.70% | 4.56% | 3.89% |
Rate of compensation increases | 5.00% | 5.00% | 5.00% |
Foreign Plan [Member] | Pension Plan [Member] | |||
Change in fair value of plan assets: | |||
Percent of above benefit obligation on company sponsored UK pension plan | 100.00% | 43.00% | |
Percent above plan assets on company sponsored UK pension plan | 100.00% | 39.00% |
Benefit Plans - Pension Assets
Benefit Plans - Pension Assets by Percentage (Details) - Pension Plan [Member] | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Asset category [Abstract] | ||
Total plan assets (as a percent) | 100.00% | 100.00% |
Expected long-term rate of return on plan assets | 4.69% | 3.84% |
Fixed Income Funds [Member] | ||
Asset category [Abstract] | ||
Total plan assets (as a percent) | 0.00% | 55.00% |
Equity Securities [Member] | ||
Asset category [Abstract] | ||
Total plan assets (as a percent) | 66.00% | 25.00% |
Multi-Asset [Member] | ||
Asset category [Abstract] | ||
Total plan assets (as a percent) | 24.00% | 9.00% |
Cash and Cash Equivalents [Member] | ||
Asset category [Abstract] | ||
Total plan assets (as a percent) | 1.00% | 7.00% |
Alternative Investments [Member] | ||
Asset category [Abstract] | ||
Total plan assets (as a percent) | 9.00% | 4.00% |
Maximum [Member] | Equity Securities [Member] | ||
Asset category [Abstract] | ||
Total plan assets (as a percent) | 70.00% | |
Maximum [Member] | Alternative Investments [Member] | ||
Asset category [Abstract] | ||
Total plan assets (as a percent) | 10.00% |
Benefit Plans - Pension Asset_2
Benefit Plans - Pension Assets by Fair Value Level (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | $ 78,480 | $ 183,486 |
Approximate percentage of mutual funds actively managed | 76.00% | 80.00% |
Approximate percentage of mutual funds indexed funds | 24.00% | 20.00% |
Percentage of mutual funds' assets invested in U.S equities | 27.00% | 10.00% |
Percent of mutual funds assets invested in non US equities | 73.00% | 28.00% |
Percent of mutual funds assets invested in US fixed income securities | 62.00% | |
Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | $ 492 | $ 12,318 |
Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 71,084 | 163,253 |
Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 6,904 | 7,915 |
Cash and Cash Equivalents [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 492 | 12,318 |
Cash and Cash Equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 492 | 12,318 |
Cash and Cash Equivalents [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 0 | 0 |
Cash and Cash Equivalents [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 0 | 0 |
Mutual Funds [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 71,084 | 163,253 |
Mutual Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 0 | 0 |
Mutual Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 71,084 | 163,253 |
Mutual Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 0 | 0 |
Limited Partnerships [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 6,904 | 7,915 |
Limited Partnerships [Member] | Level 1 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 0 | 0 |
Limited Partnerships [Member] | Level 2 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | 0 | 0 |
Limited Partnerships [Member] | Level 3 [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Long-term asset | $ 6,904 | $ 7,915 |
Benefit Plans - Assets of the P
Benefit Plans - Assets of the Plan Measured at Fair Value on a Recurring Basis Using Significant Unobservable Inputs (Details) $ in Thousands | 12 Months Ended |
Dec. 26, 2020USD ($) | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Beginning balance | $ 183,486 |
Ending balance | 78,480 |
Pension Plan [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Beginning balance | 183,486 |
Ending balance | 78,480 |
Fair Value, Inputs, Level 3 [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Beginning balance | 7,915 |
Ending balance | 6,904 |
Fair Value, Inputs, Level 3 [Member] | Pension Plan [Member] | Limited Partner [Member] | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward] | |
Beginning balance | 7,915 |
Surplus assets | (1,104) |
Net appreciation in fair value | 93 |
Ending balance | $ 6,904 |
Benefit Plans - Contributions a
Benefit Plans - Contributions and Benefit Payments (Details) $ in Thousands | Dec. 26, 2020USD ($) |
Pension Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
2021 | $ 3,428 |
2022 | 2,945 |
2023 | 3,050 |
2024 | 3,160 |
2025 | 3,273 |
2026-2030 | 18,210 |
Total | 34,066 |
Other Postretirement Benefits Plan [Member] | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |
Company's expected contribution to benefit plans in next fiscal year | 1,000 |
2021 | 947 |
2022 | 942 |
2023 | 1,016 |
2024 | 977 |
2025 | 974 |
2026-2030 | 4,700 |
Total | $ 9,556 |
Benefit Plans - Contributions_2
Benefit Plans - Contributions and Benefit Payments, Multiemployer Plan, 401(k) Plans and UMWA Benefit Plans (Details) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020USD ($)bargain_agreement | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | |
IAM Plan Trusts [Abstract] | |||
Number of collective bargaining agreements | bargain_agreement | 2 | ||
Multiemployer plan, contributions | $ 1,200 | $ 1,200 | $ 1,300 |
Maximum percentage of employer contributions (less than) | 5.00% | ||
Multiemployer plans, funded status (as a percent) | 80.00% | 89.00% | |
401 (k) Plan [Abstract] | |||
Compensation expense for the Company's matching contribution | $ 5,700 | $ 5,400 | 5,100 |
Contributions to UMWA 1992 Benefit Plan | $ 57 | $ 223 | $ 153 |
Commitments and Contingencies -
Commitments and Contingencies - Environmental (Details) $ in Millions | 1 Months Ended | 12 Months Ended | 24 Months Ended | 36 Months Ended | ||||||
Jan. 31, 2018USD ($)unilateral_administrative_order | Sep. 30, 2014USD ($)property | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Dec. 28, 2019USD ($) | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) | Dec. 26, 2020smelter_site | Dec. 26, 2020potentially_responsible_party | |
Site Contingency [Line Items] | ||||||||||
Environmental expense | $ 4.2 | $ 1.7 | $ 2 | |||||||
Environmental reserves | 24 | $ 20.9 | $ 20.9 | $ 24 | $ 20.9 | |||||
Expected environmental expenditures for 2021 | 2.7 | 2.7 | ||||||||
Expected environmental expenditures for 2022 | 0.8 | 0.8 | ||||||||
Expected environmental expenditures for 2023 | 0.8 | 0.8 | ||||||||
Expected environmental expenditures for 2024 | 0.9 | 0.9 | ||||||||
Expected environmental expenditures for 2025 | 0.8 | 0.8 | ||||||||
Expected environmental expenditures after 2025 | 18 | 18 | ||||||||
East La Harpe [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Number of parties involved in settlement negotiations | 3 | 2 | ||||||||
Southeast Kansas Sites [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Environmental reserves | $ 5.6 | 5.6 | ||||||||
Number of parties involved in settlement negotiations | smelter_site | 3 | |||||||||
Shasta Area Mine Sites [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Period of permit, implementation of Best Management Practices | 10 years | |||||||||
Environmental remediation expense spending | $ 1.7 | |||||||||
Estimated number of years until mitigation resolution | 30 years | |||||||||
Shasta Area Mine Sites [Member] | Minimum [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Mitigation estimates | $ 13.9 | |||||||||
Shasta Area Mine Sites [Member] | Maximum [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Mitigation estimates | 18 | |||||||||
Lead Refinery Site [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Environmental expense | 0.6 | |||||||||
Lead Refinery Site [Abstract] | ||||||||||
EPA's estimated cost of site remediation | $ 26 | |||||||||
Number of surrounding properties | property | 300 | |||||||||
Site contingency, financial guarantee | 1 | $ 1 | ||||||||
Lead Refinery Site [Member] | Minimum [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Mitigation estimates | 1.7 | |||||||||
Lead Refinery Site [Member] | Maximum [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Mitigation estimates | 2.4 | |||||||||
Lead Refinery NPL Site [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Environmental reserves | $ 4.5 | |||||||||
Lead Refinery Site [Abstract] | ||||||||||
Number of UAOs issued | unilateral_administrative_order | 2 | |||||||||
Site contingency, total costs | $ 25 | |||||||||
Site contingency, amount agreed upon to pay PRPs for past costs | $ 2 | |||||||||
Possible further payments for ongoing work by PRPs | 0.7 | |||||||||
Payments for unilateral administrative orders | $ 7.2 | |||||||||
Mueller Copper Tube Products, Inc. [Member] | Minimum [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Mitigation estimates | 0.9 | |||||||||
Mueller Copper Tube Products, Inc. [Member] | Maximum [Member] | ||||||||||
Site Contingency [Line Items] | ||||||||||
Mitigation estimates | $ 1.1 |
Commitments and Contingencies_2
Commitments and Contingencies - United States Department of Commerce Antidumping Review (Details) | 1 Months Ended | 12 Months Ended | ||||
Nov. 27, 2015USD ($) | Dec. 26, 2020USD ($) | Dec. 28, 2019USD ($) | Dec. 29, 2018USD ($) | Oct. 31, 2008Import_entry | Apr. 19, 2010 | |
Loss Contingencies [Line Items] | ||||||
Litigation settlement, net | $ (22,053,000) | $ 0 | $ 0 | |||
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 request for interest and duties | $ 3,000,000 | |||||
Number of import entries | Import_entry | 795 | |||||
Deepwater Horizon Economic and Property Damage Claim [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Litigation settlement, net | $ (22,100,000) | |||||
Letter of Credit | ||||||
Loss Contingencies [Line Items] | ||||||
Letters of credit, guarantees, renewal period | 1 year | |||||
Letter of Credit | Revolving Credit Facility | ||||||
Loss Contingencies [Line Items] | ||||||
Outstanding letters of credit | $ 22,300,000 |
Income Taxes - Components of In
Income Taxes - Components of Income Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 144,770 | $ 112,812 | $ 105,455 |
Foreign | 64,419 | 53,271 | 44,962 |
Income before income taxes | $ 209,189 | $ 166,083 | $ 150,417 |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Current tax expense: | |||
Federal | $ 37,964 | $ 19,066 | $ 17,974 |
Foreign | 16,221 | 12,727 | 9,650 |
State and local | 5,182 | 3,892 | 3,158 |
Current tax expense | 59,367 | 35,685 | 30,782 |
Deferred tax (benefit) expense: | |||
Federal | (5,991) | 1,725 | (1,381) |
Foreign | 90 | (2,311) | 551 |
State and local | 1,855 | 158 | 1,000 |
Deferred tax (benefit) expense | (4,046) | (428) | 170 |
Income tax expense | $ 55,321 | $ 35,257 | $ 30,952 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Expected income tax expense | $ 43,930 | $ 34,892 | $ 31,588 |
State and local income tax, net of federal benefit | 5,949 | 3,234 | 3,495 |
Effect of foreign statutory rates different from U.S. and other foreign adjustments | 2,783 | (771) | 759 |
Investment in unconsolidated affiliates | (387) | 538 | (2,776) |
Effect of tax on accumulated foreign earnings | 0 | (111) | (4,415) |
Other, net | 3,046 | (2,525) | 2,301 |
Income tax expense | $ 55,321 | $ 35,257 | $ 30,952 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Income Tax Disclosure [Abstract] | |||
Effect of tax on accumulated foreign earnings | $ 0 | $ 111 | $ 4,415 |
Earnings per diluted share, impact of TCJA (in dollars per share) | $ 0.08 | ||
State income tax credit carryforwards with expiration | 2,600 | ||
Other state income tax credit carryforwards with unlimited life | 9,000 | ||
State net operating loss carryforwards with potential tax benefits | 9,600 | ||
Valuation allowances | 12,000 | ||
Federal and foreign tax attributes with unlimited life | 4,600 | ||
Federal and foreign tax attributes with potential tax benefits | 1,600 | ||
Federal and foreign tax attributes, valuation allowance | 3,400 | ||
Income taxes paid | $ 49,300 | $ 41,800 | $ 38,100 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 26, 2020 | Dec. 28, 2019 |
Deferred tax assets: | ||
Inventories | $ 13,910 | $ 12,247 |
Other postretirement benefits and accrued items | 11,477 | 9,271 |
Other reserves | 7,782 | 6,834 |
Foreign tax attributes | 6,250 | 5,909 |
State tax attributes, net of federal benefit | 21,178 | 22,395 |
Stock-based compensation | 3,751 | 3,378 |
Right of Use Liability | 6,034 | 5,965 |
Basis difference in unconsolidated affiliates | 8,478 | 6,547 |
Total deferred tax assets | 78,860 | 72,546 |
Less valuation allowance | (27,199) | (23,130) |
Deferred tax assets, net of valuation allowance | 51,661 | 49,416 |
Deferred tax liabilities: | ||
Property, plant, and equipment | 48,990 | 47,791 |
Pension | 0 | 949 |
Right of Use Asset | 6,157 | 5,967 |
Other Liabilities | 638 | 311 |
Total deferred tax liabilities | 55,785 | 55,018 |
Net deferred tax liabilities | $ (4,124) | $ (5,602) |
Equity (Details)
Equity (Details) | Dec. 26, 2020shares |
Equity [Abstract] | |
Authorization to repurchase shares of common stock (in shares) | 20,000,000 |
Shares repurchased (in shares) | 6,400,000 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense | $ 8.6 | $ 8.7 | $ 8 |
Compensation for stock awards not yet recognized | $ 20.8 | ||
Compensation recognition period | 3 years | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future issuance (in shares) | 1,600 | ||
Total intrinsic value of options exercised | $ 2.4 | 1.6 | 0.9 |
Fair value of options vested | 0.7 | $ 1 | $ 1 |
Aggregate intrinsic value of all outstanding options | $ 6.4 | ||
Weighted average remaining contractual term of all outstanding options | 5 years 3 months 18 days | ||
Outstanding options, exercisable (in shares) | 568 | ||
Aggregate intrinsic value of current exercisable shares | $ 5.7 | ||
Weighted average exercise price (in dollars per share) | $ 24.92 | ||
Weighted average remaining contractual term | 4 years 7 months 6 days | ||
Weighted average grant-date fair value of options granted (in dollars per share) | $ 6.81 | $ 8.78 | $ 9.64 |
Stock Options [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options vesting period | 5 years | ||
Stock options expiration period | 10 years | ||
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of options vested | $ 5.6 | $ 5.6 | $ 3.7 |
Weighted average grant date fair value of awards granted (in dollars per share) | $ 29 | $ 28.64 | $ 31.95 |
Aggregate intrinsic value | $ 24.7 | ||
Performance Stock Awards [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value of awards granted (in dollars per share) | $ 29.61 | ||
Aggregate intrinsic value | $ 17.2 | ||
Weighted average grant-date fair value of options granted (in dollars per share) | $ 29.61 | $ 29.11 | $ 32.28 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Award Activity (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Stock Options [Member] | |||
Options outstanding [Roll Forward] | |||
Beginning balance (in shares) | 939 | ||
Granted (in shares) | 28 | ||
Exercised (in shares) | (158) | ||
Forfeited (in shares) | (16) | ||
Ending balance (in shares) | 793 | 939 | |
Weighted average exercise price [Roll Forward] | |||
Beginning balance (in dollars per share) | $ 25.05 | ||
Granted (in dollars per share) | 24.33 | ||
Exercised (in dollars per share) | 15.55 | ||
Forfeited (in dollars per share) | 31.63 | ||
Ending balance (in dollars per share) | $ 26.81 | $ 25.05 | |
Restricted Stock [Member] | |||
Restricted stock [Roll Forward] | |||
Beginning balance (in shares) | 764 | ||
Granted (in shares) | 120 | ||
Exercised (in shares) | (176) | ||
Forfeited (in shares) | (2) | ||
Ending balance (in shares) | 706 | 764 | |
Weighted average grant date fair value [Abstract] | |||
Beginning balance (in dollars per share) | $ 31.44 | ||
Granted (in dollars per share) | 29 | $ 28.64 | $ 31.95 |
Exercised (in dollars per share) | 31.93 | ||
Forfeited (in dollars per share) | 32.36 | ||
Ending balance (in dollars per share) | $ 30.89 | $ 31.44 | |
Performance Stock Awards [Member] | |||
Restricted stock [Roll Forward] | |||
Beginning balance (in shares) | 298 | ||
Granted (in shares) | 197 | ||
Exercised (in shares) | 0 | ||
Forfeited (in shares) | 0 | ||
Ending balance (in shares) | 495 | 298 | |
Weighted average grant date fair value [Abstract] | |||
Beginning balance (in dollars per share) | $ 31.08 | ||
Granted (in dollars per share) | 29.61 | ||
Exercised (in dollars per share) | 0 | ||
Forfeited (in dollars per share) | 0 | ||
Ending balance (in dollars per share) | $ 30.50 | $ 31.08 |
Stock-Based Compensation - Assu
Stock-Based Compensation - Assumptions in Determining Fair Value of Options Granted (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value of stock options on grant date (in dollars per share) | $ 6.81 | $ 8.78 | $ 9.64 |
Expected term (in years) | 7 years 10 months 24 days | 7 years 9 months 18 days | 7 years 7 months 6 days |
Expected price volatility (as a percent) | 31.90% | 28.60% | 27.20% |
Risk-free interest rate (as a percent) | 0.60% | 2.40% | 2.90% |
Dividend yield (as a percent) | 1.70% | 1.40% | 1.30% |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Changes in AOCI by Component (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 26, 2020 | Dec. 28, 2019 | |
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | $ 662,136 | |
Balance at end of year | 801,060 | $ 662,136 |
Cumulative Translation Adjustment [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | (46,198) | (54,257) |
Other comprehensive income (loss) before reclassifications | 8,859 | 8,059 |
Amounts reclassified from AOCI | 0 | 0 |
Balance at end of year | (37,339) | (46,198) |
Unrealized Gain (Loss) on Derivatives [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | 476 | (214) |
Other comprehensive income (loss) before reclassifications | (4,583) | 1,176 |
Amounts reclassified from AOCI | 5,091 | (486) |
Balance at end of year | 984 | 476 |
Minimum Pension/OPEB Liability Adjustment [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | (21,855) | (24,967) |
Other comprehensive income (loss) before reclassifications | (3,639) | 2,315 |
Amounts reclassified from AOCI | 8,291 | 797 |
Balance at end of year | (17,203) | (21,855) |
Accumulated Other Comprehensive Income Attributable to Unconsolidated Affiliates [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | (1,193) | (354) |
Other comprehensive income (loss) before reclassifications | (132) | (839) |
Amounts reclassified from AOCI | 0 | 0 |
Balance at end of year | (1,325) | (1,193) |
AOCI Attributable to Parent [Member] | ||
Changes in accumulated other comprehensive income [Roll Forward] | ||
Balance at beginning of year | (68,770) | (79,792) |
Other comprehensive income (loss) before reclassifications | 505 | 10,711 |
Amounts reclassified from AOCI | 13,382 | 311 |
Balance at end of year | $ (54,883) | $ (68,770) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassification Adjustments out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Reclassification Adjustments out of AOCI [Abstract] | |||||||||||
Cost of goods sold | $ 1,966,161 | $ 2,035,610 | $ 2,150,400 | ||||||||
Income tax (benefit) expense | 55,321 | 35,257 | 30,952 | ||||||||
Net of tax and noncontrolling interests | $ (36,420) | $ (42,702) | $ (27,956) | $ (32,415) | $ (28,170) | $ (29,093) | $ (27,986) | $ (15,723) | (139,493) | (100,972) | (104,459) |
Other income, net | (4,887) | (1,684) | (3,967) | ||||||||
Pension Plan [Member] | |||||||||||
Reclassification Adjustments out of AOCI [Abstract] | |||||||||||
Pension plan termination expense | 11,642 | 0 | 0 | ||||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Amount Reclassified from AOCI [Member] | |||||||||||
Reclassification Adjustments out of AOCI [Abstract] | |||||||||||
Income tax (benefit) expense | (1,246) | 101 | 58 | ||||||||
Net of tax and noncontrolling interests | 5,091 | (486) | (371) | ||||||||
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member] | Amount Reclassified from AOCI [Member] | |||||||||||
Reclassification Adjustments out of AOCI [Abstract] | |||||||||||
Income tax (benefit) expense | (2,353) | (163) | (38) | ||||||||
Net of tax and noncontrolling interests | 8,291 | 797 | 303 | ||||||||
Other income, net | (998) | 960 | 341 | ||||||||
Commodity Contract [Member] | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | Amount Reclassified from AOCI [Member] | |||||||||||
Reclassification Adjustments out of AOCI [Abstract] | |||||||||||
Cost of goods sold | $ 6,337 | $ (587) | $ (429) |
Quarterly Financial Informati_3
Quarterly Financial Information (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 26, 2020 | Sep. 26, 2020 | Jun. 27, 2020 | Mar. 28, 2020 | Dec. 28, 2019 | Sep. 28, 2019 | Jun. 29, 2019 | Mar. 30, 2019 | Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net sales | $ 675,851 | $ 619,105 | $ 500,168 | $ 602,919 | $ 543,839 | $ 608,602 | $ 666,394 | $ 611,781 | $ 2,398,043 | $ 2,430,616 | $ 2,507,878 |
Gross profit | 122,344 | 118,325 | 97,009 | 94,204 | 94,358 | 97,814 | 102,446 | 100,388 | |||
Consolidated net income | 37,254 | 43,957 | 28,487 | 33,951 | 29,973 | 30,444 | 28,676 | 17,139 | 143,649 | 106,232 | 106,820 |
Net income attributable to Mueller Industries, Inc. | $ 36,420 | $ 42,702 | $ 27,956 | $ 32,415 | $ 28,170 | $ 29,093 | $ 27,986 | $ 15,723 | $ 139,493 | $ 100,972 | $ 104,459 |
Basic earnings per share (in dollars per share) | $ 0.65 | $ 0.77 | $ 0.50 | $ 0.58 | $ 0.50 | $ 0.52 | $ 0.50 | $ 0.28 | $ 2.50 | $ 1.81 | $ 1.84 |
Diluted earnings per share (in dollars per share) | 0.64 | 0.76 | 0.50 | 0.57 | 0.50 | 0.52 | 0.50 | 0.28 | 2.47 | 1.79 | 1.82 |
Dividends per share (in dollars per share) | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.10 | $ 0.40 | $ 0.40 | $ 0.40 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | Jan. 29, 2021 | Dec. 26, 2020 |
Subordinated Debt [Member] | ||
Subsequent Event [Line Items] | ||
Debt, stated interest rate (as a percent) | 6.00% | |
Subsequent Event [Member] | Asset Purchase Agreement with Hart & Cooley LLC [Member] | ||
Subsequent Event [Line Items] | ||
Asset acquisition, cash paid | $ 14 |
SCHEDULE II-VALUATION AND QUA_2
SCHEDULE II-VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 26, 2020 | Dec. 28, 2019 | Dec. 29, 2018 | |
SEC Schedule, 12-09, Allowance, Credit Loss [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 770 | $ 836 | $ 980 |
Charged to costs and expenses | 1,208 | (81) | (286) |
Other additions | 0 | 263 | 220 |
Deductions | 440 | 248 | 78 |
Balance at end of year | 1,538 | 770 | 836 |
Environmental Reserves [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 20,866 | 23,619 | 28,004 |
Charged to costs and expenses | 4,242 | 1,659 | 1,981 |
Other additions | 0 | 0 | 0 |
Deductions | 1,107 | 4,412 | 6,366 |
Balance at end of year | 24,001 | 20,866 | 23,619 |
SEC Schedule, 12-09, Valuation Allowance, Deferred Tax Asset [Member] | |||
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | 23,130 | 25,311 | 30,316 |
Charged to costs and expenses | 2,317 | 2,919 | 1,209 |
Other additions | 1,898 | 290 | 150 |
Deductions | 146 | 5,390 | 6,364 |
Balance at end of year | $ 27,199 | $ 23,130 | $ 25,311 |