Investment in Unconsolidated Affiliates

12 Months Ended

Dec. 29, 2018

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)	2018			2017
Current assets	$	228,214		$	246,127
Noncurrent assets	114,257			139,200
Current liabilities	175,371			174,710
Noncurrent liabilities	57,216			58,334
Net sales	$	509,517		$	556,600
Gross profit	59,385			75,600
Net loss	(20,049		)	(4,153		)

The Company’s loss from unconsolidated affiliates, net of foreign tax, for 2018 included net losses of $14.0 million and charges of $3.0 million related to certain labor claim contingencies, offset by a gain of $7.0 million related to a settlement with the Brazilian Federal Revenue Agency for Tecumseh.

Mueller Middle East

On December 30, 2015, the Company entered into a joint venture agreement with Cayan Ventures and Bahrain Mumtalakat Holding Company to build a copper tube mill in Bahrain. The business operates and brands its products under the Mueller Industries family of brands. The Company has invested approximately $4.5 million of cash to date and is the technical and marketing lead with a 40 percent ownership in the joint venture.

The Company’s loss from unconsolidated affiliates, net of foreign tax, for 2018 included net losses of $2.6 million for Mueller Middle East.