Industry Segments

9 Months Ended

Oct. 01, 2011

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 September 29, 2012
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	297,913	$	221,468	$	(5,216	)	$	514,165
Cost of goods sold		257,978		196,789		(5,049	)		449,718
Depreciation and amortization		4,044		3,437		389			7,870
Selling, general, and administrative expense		18,298		6,821		7,001			32,120
Operating income	$	17,593	$	14,421	$	(7,557	)		24,457
Interest expense									(353	)
Other income, net									219
Income before income taxes								$	24,323

	For the Quarter Ended October 1, 2011
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	325,776	$	266,560	$	(6,527	)	$	585,809
Cost of goods sold		285,242		245,223		(6,481	)		523,984
Depreciation and amortization		4,859		3,519		338			8,716
Selling, general, and administrative expense		21,791		5,646		6,808			34,245
Operating income	$	13,884	$	12,172	$	(7,192	)		18,864
Interest expense									(2,822	)
Other income, net									102
Income before income taxes								$	16,144

	For the Nine Months Ended September 29, 2012
(In thousands)	Plumbing & Refrigeration Segment			OEM Segment		Corporate and Eliminations			Total
Net sales	$	944,955		$	760,995	$	(20,018	)	$	1,685,932
Cost of goods sold		808,631			676,635		(19,522	)		1,465,744
Depreciation and amortization		12,340			9,908		1,070			23,318
Selling, general, and administrative expense		57,028			20,249		19,932			97,209
Insurance settlement		(1,500	)		-		-			(1,500	)
Operating income	$	68,456		$	54,203	$	(21,498	)		101,161
Interest expense										(5,711	)
Other income, net										963
Income before income taxes									$	96,413

	For the Nine Months Ended October 1, 2011
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	1,053,434	$	899,982	$	(27,003	)	$	1,926,413
Cost of goods sold		904,470		809,959		(26,694	)		1,687,735
Depreciation and amortization		16,042		10,590		949			27,581
Selling, general, and administrative expense		64,565		18,799		19,580			102,944
Litigation settlement		-		-		(10,500	)		(10,500	)
Operating income	$	68,357	$	60,634	$	(10,338	)		118,653
Interest expense									(9,004	)
Other expense, net									1,425
Income before income taxes								$	111,074