Industry Segments

12 Months Ended

Dec. 31, 2011

Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract]

Industry Segments

Note 15 – Industry Segments

The Company's reportable segments are Plumbing & Refrigeration and OEM.  For disclosure purposes, as permitted under ASC 280, Segment Reporting, certain operating segments are aggregated into reportable segments.  The Plumbing & Refrigeration segment is composed of Standard Products (SPD), European Operations, and Mexican Operations.  The OEM segment is composed of Industrial Products (IPD), Engineered Products (EPD), and Mueller-Xingrong.  These segments are classified primarily by the markets for their products.  Performance of segments is generally evaluated by their operating income.  Intersegment transactions are generally conducted on an arms-length basis.

SPD manufactures copper tube and fittings, plastic fittings, plastic pipe, and line sets.  These products are manufactured in the U.S.  Outside the U.S., the Company's European Operations manufacture copper tube, which is sold in Europe and the Middle East.  SPD also imports and resells brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products.  Mexican Operations consist of pipe nipple manufacturing and import distribution businesses including product lines of malleable iron fittings and other plumbing specialties.  The European Operations consist of copper tube manufacturing and the import distribution of fittings, valves, and plumbing specialties primarily in the U.K. and Ireland.  The Plumbing & Refrigeration segment's products are sold primarily to plumbing, refrigeration, and air-conditioning wholesalers, hardware wholesalers and co-ops, and building product retailers.

IPD manufactures brass rod, impact extrusions, and forgings as well as a variety of end products including plumbing brass, automotive components, valves, and fittings.  EPD manufactures and fabricates valves and assemblies for the refrigeration, air-conditioning, gas appliance, and barbecue grill markets and specialty copper, copper-alloy, and aluminum tube.  Mueller-Xingrong manufactures engineered copper tube primarily for air-conditioning applications.  These products are sold primarily to OEM customers.

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.

Worldwide sales to one customer in the Plumbing & Refrigeration segment totaled $175.1 million in 2009, which represented 11 percent of the Company's consolidated net sales.  No other customer accounted for more than 10 percent of consolidated net sales.  During 2010 and 2011, no one customer exceeded 10 percent of worldwide sales.

Net Sales by Major Product Line:

(In thousands)	2011		2010		2009
Tube and fittings	$	1,082,150	$	898,615	$	686,102
Brass rod and forgings		662,369		581,660		418,376
OEM components, tube & assemblies		401,623		327,092		213,905
Valves and plumbing specialties		217,985		204,074		198,333
Other		53,670		48,356		30,509
	$	2,417,797	$	2,059,797	$	1,547,225

Geographic Information:

(In thousands)	2011		2010		2009
Net sales:
United States	$	1,830,001	$	1,567,606	$	1,208,757
United Kingdom		272,809		214,643		173,223
Other		314,987		277,548		165,245
	$	2,417,797	$	2,059,797	$	1,547,225
Long-lived assets:
United States	$	267,060	$	289,714	$	309,986
United Kingdom		23,962		24,088		27,312
Other		29,883		32,880		34,000
	$	320,905	$	346,682	$	371,298

Net assets of foreign operations at December 31, 2011 included $112.0 million in the United Kingdom, $45.3 million in Mexico, $47.9 million in Luxembourg, and $27.3 million in China.

Segment Information:

	For the Year Ended December 31, 2011
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	1,330,435	$	1,119,796	$	(32,434	)	$	2,417,797
Cost of goods sold		1,139,932		1,007,654		(31,909	)		2,115,677
Depreciation and amortization		20,947		14,634		1,284			36,865
Selling, general, and administrative expense		84,795		24,838		26,320			135,953
Litigation settlement		-		-		(10,500	)		(10,500	)
Operating income		84,761		72,670		(17,629	)		139,802
Interest expense									(11,553	)
Other expense, net									1,912
Income before income taxes								$	130,161

Segment Information (continued):

	For the Year Ended December 25, 2010
(In thousands)	Plumbing & Refrigeration Segment			OEM Segment		Corporate and Eliminations			Total
Net sales	$	1,115,614		$	958,855	$	(14,672	)	$	2,059,797
Cost of goods sold		951,170			837,649		(14,008	)		1,774,811
Depreciation and amortization		24,940			14,300		1,124			40,364
Selling, general, and administrative expense		78,573			26,789		25,849			131,211
Insurance settlements		(22,736	)		-		-			(22,736	)
Operating income		83,667			80,117		(27,637	)		136,147
Interest expense										(11,647	)
Other expense, net										(2,650	)
Income before income taxes									$	121,850

	For the Year Ended December 26, 2009
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	892,071	$	664,088	$	(8,934	)	$	1,547,225
Cost of goods sold		744,880		590,361		(8,219	)		1,327,022
Depreciation and amortization		26,289		14,208		1,071			41,568
Selling, general, and administrative expense		74,397		20,501		21,762			116,660
Impairment charges		19,462		10,293		-			29,755
Operating income		27,043		28,725		(23,548	)		32,220
Interest expense									(9,963	)
Other income, net									872
Income before income taxes								$	23,129

(In thousands)	2011		2010		2009
Expenditures for long-lived assets (including business acquisitions):
Plumbing & Refrigeration	$	12,686	$	13,774	$	7,876
OEM		12,586		6,684		6,066
General corporate		361		241		-
	$	25,633	$	20,699	$	13,942
Segment assets:
Plumbing & Refrigeration	$	532,458	$	574,671	$	542,834
OEM		296,997		296,978		284,480
General corporate		518,149		387,347		352,827
	$	1,347,604	$	1,258,996	$	1,180,141