Industry Segments

6 Months Ended

Jun. 30, 2012

Industry Segments [Abstract]

Industry Segments

Note 6 - Industry Segments

The Company's reportable segments are Plumbing & Refrigeration and Original Equipment Manufacturers (OEM).  For disclosure purposes, as permitted under Accounting Standards Codification (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 Jiangsu Mueller-Xingrong Copper Industries Limited (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 which are used in a wide variety of end products including plumbing brass, automotive components, valves, and fittings.  EPD manufactures and fabricates valves and assemblies primarily for the refrigeration, air-conditioning, and gas appliance markets and specialty copper, copper-alloy, and aluminum tubing.  Mueller-Xingrong manufactures engineered copper tube primarily for air-conditioning applications.  These products are sold primarily to OEM customers.

Summarized segment information is as follows:

	For the Quarter Ended June 30, 2012
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	331,688	$	268,551	$	(6,140	)	$	594,099
Cost of goods sold		285,182		243,646		(5,977	)		522,851
Depreciation and amortization		4,151		3,412		356			7,919
Selling, general, and administrative expense		19,750		6,436		7,301			33,487
Operating income		22,605		15,057		(7,820	)		29,842
Interest expense									(2,721	)
Other income, net									490
Income before income taxes								$	27,611

	For the Quarter Ended July 2, 2011
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	347,069	$	314,086	$	(8,232	)	$	652,923
Cost of goods sold		296,033		285,944		(8,100	)		573,877
Depreciation and amortization		5,349		3,479		338			9,166
Selling, general, and administrative expense		20,897		5,847		6,586			33,330
Operating income		24,790		18,816		(7,056	)		36,550
Interest expense									(2,834	)
Other income, net									264
Income before income taxes								$	33,980

	For the Six Months Ended June 30, 2012
(In thousands)	Plumbing & Refrigeration Segment			OEM Segment		Corporate and Eliminations			Total
Net sales	$	647,042		$	539,527	$	(14,802	)	$	1,171,767
Cost of goods sold		550,653			479,846		(14,473	)		1,016,026
Depreciation and amortization		8,296			6,471		681			15,448
Selling, general, and administrative expense		38,730			13,428		12,931			65,089
Insurance settlement		(1,500	)		-		-			(1,500	)
Operating income		50,863			39,782		(13,941	)		76,704
Interest expense										(5,358	)
Other income, net										744
Income before income taxes									$	72,090

	For the Six Months Ended July 2, 2011
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	727,658	$	633,422	$	(20,476	)	$	1,340,604
Cost of goods sold		619,228		564,736		(20,213	)		1,163,751
Depreciation and amortization		11,183		7,071		611			18,865
Selling, general, and administrative expense		42,774		13,153		12,772			68,699
Litigation settlement		-		-		(10,500	)		(10,500	)
Operating income		54,473		48,462		(3,146	)		99,789
Interest expense									(6,182	)
Other expense, net									1,323
Income before income taxes								$	94,930