Equity Method Investment

12 Months Ended

Dec. 26, 2015

Note 7 – Equity Method Investment

During the third quarter of 2015, the Company entered into a joint venture agreement with affiliates of Atlas Holdings LLC to form the Joint Venture, which simultaneously entered into a definitive merger agreement with MA Industrial Sub, Inc. and Tecumseh to commence a cash tender offer to acquire all of the outstanding shares of Tecumseh. On September 21, 2015, the tender offer and back-end merger was completed and Mueller contributed $65.9 million for a 50 percent ownership interest in the Joint Venture. 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 Company accounts for this investment using the equity method of accounting, and the total investment, including net tangible assets, identifiable intangible assets, and goodwill, is classified as the investment in unconsolidated affiliate on the Company's Consolidated Balance Sheets.

The following tables present summarized financial information derived from the Company's equity method investee's consolidated financial statements, which are prepared in accordance with U.S. GAAP. The Company records its proportionate share of the investee's net income one quarter in arrears as equity in earnings of the unconsolidated affiliate in the Consolidated Statements of Income. As such, the balances shown below are as of September 30, 2015. The allocation of the Joint Venture's purchase price is provisional as of December 26, 2015 and therefore subject to change upon final valuation of assets and review of working capital. Changes to the final purchase price allocation could impact the Company's accounting for its equity method investment in the Joint Venture.

(In thousands)	2015

Balance sheet data:
Current assets		$	251,389
Noncurrent assets			112,156
Current liabilities			178,784
Noncurrent liabilities			63,643