Segment Information

12 Months Ended

Sep. 30, 2012

Segment Reporting, Measurement Disclosures [Abstract]

Segment Information

Segment Information

Our operations consist of two business segments: Mueller Co. and Anvil. These segments are organized based on products sold and customers served and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision maker. Mueller Co. manufactures valves for water and gas systems including butterfly, iron gate, tapping, check, plug and ball valves, dry-barrel and wet-barrel fire hydrants and a broad range of metering, leak detection, pipe condition assessment and other products and services for the water infrastructure industry. Anvil manufactures and sources a broad range of products including a variety of fittings, couplings, hangers and related products.

Intersegment sales and transfers are made at selling prices generally intended to cover costs. The determination of segment results does not reflect allocations of certain corporate expenses not directly attributable to segment operations and intersegment sales and expenses, which are designated as Corporate. Interest, loss on early extinguishment of debt and income taxes are not allocated to business segments. Corporate expenses include those costs incurred by our corporate function, such as accounting, treasury, risk management, human resources, legal, tax and other administrative functions. Therefore, segment results are not reflective of their results on a stand-alone basis. Corporate assets principally consist of cash, income tax assets, receivables related to the sale of our former U.S. Pipe segment and deferred financing fees. Segment assets consist primarily of receivables, inventories, property, plant and equipment and identifiable intangible assets.

Geographical area information is presented below.

	United States		Canada		Other		Total
	(in millions)
Net sales:
2012	$	872.3	$	112.4	$	39.2	$	1,023.9
2011	834.0		113.5		17.1		964.6
2010	805.7		141.6		12.4		959.7
Property, plant and equipment, net:
September 30, 2012	$	136.0	$	5.6	$	3.1	$	144.7
September 30, 2011	136.6		5.8		3.3		145.7

Approximately 36% of our 2012 gross sales were to our 10 largest distributors, and approximately 22% of our 2012 gross sales were to our two largest distributors, Ferguson Enterprises, Inc. (“Ferguson Enterprises”) and HD Supply, Inc. (“HD Supply”). Sales to Ferguson Enterprises comprised approximately 12%, 12% and 13% of our total gross sales during 2012, 2011 and 2010, respectively. In 2012, Ferguson Enterprises accounted for approximately 14% and 8% of gross sales for Mueller Co and Anvil, respectively. Receivables from Ferguson Enterprises totaled $22.4 million and $15.4 million at September 30, 2012 and 2011, respectively. Sales to HD Supply comprised approximately 10%, 10% and 10% of our total gross sales during 2012, 2011, and 2010. In 2012, HD Supply accounted for approximately 15% and 4% of gross sales for Mueller Co. and Anvil, respectively. Receivables from HD Supply totaled $16.4 million and $15.3 million at September 30, 2012 and 2011, respectively.

Summarized financial information for our segments is presented below.

	Mueller Co.		Anvil		Corporate			Total
	(in millions)
Net sales, excluding intercompany:
2012	$	652.4	$	371.5	$	—		$	1,023.9
2011	605.5		359.1		—			964.6
2010	612.8		346.9		—			959.7
Intercompany sales:
2012	$	7.3	$	0.1	$	—		$	7.4
2011	8.7		0.1		—			8.8
2010	15.4		0.4		—			15.8
Operating income (loss):
2012	$	57.7	$	37.3	$	(30.9	)	$	64.1
2011	53.8		31.8		(32.9		)	52.7
2010	81.0		22.1		(33.4		)	69.7
Depreciation and amortization:
2012	$	45.7	$	14.3	$	0.6		$	60.6
2011	47.7		14.5		0.9			63.1
2010	49.7		15.4		0.5			65.6
Restructuring and impairment:
2012	$	2.5	$	0.3	$	—		$	2.8
2011	1.4		1.2		1.0			3.6
2010	0.1		0.5		—			0.6
Capital expenditures:
2012	$	20.0	$	11.4	$	—		$	31.4
2011	14.8		7.5		0.8			23.1
2010	15.6		6.0		0.2			21.8
Total assets:
September 30, 2012	$	843.0	$	258.7	$	139.2		$	1,240.9
September 30, 2011	843.5		258.2		383.3			1,485.0
Identifiable intangible assets, net:
September 30, 2012	$	508.7	$	65.0	$	—		$	573.7
September 30, 2011	534.5		67.9		—			602.4