Investment in Unconsolidated Affiliates

12 Months Ended

Dec. 30, 2017

Equity Method Investments and Joint Ventures [Abstract]

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)	2017			2016

Current assets	$	246,127		$	244,323
Noncurrent assets	139,200			130,400
Current liabilities	174,710			148,806
Noncurrent liabilities	58,334			71,681

Net sales	$	556,600		$	579,400
Gross profit	75,600			79,600
Net (loss) income	(4,153		)	3,720

Included in the equity method investees’ net income for 2016 is a gain of $17.1 million that resulted from the allocation of the purchase price, which was finalized during Tecumseh’s quarter ended December 31, 2015. That gain was offset by restructuring and impairment charges of $5.3 million and net losses of $8.1 million.

On December 30, 2015, the Company entered into a joint venture agreement with Cayan Ventures and Bahrain Mumtalakat Holding Company to build a copper tube mill in Bahrain. The business will operate and brand its products under the Mueller Industries family of brands. The Company has invested approximately $3.9 million of cash to date and will be the technical and marketing lead in return for 40 percent ownership in the joint venture.