Industry Segments

12 Months Ended

Dec. 29, 2012

Industry 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.

During 2012, 2011, and 2010, no one customer exceeded 10 percent of worldwide sales.

Net Sales by Major Product Line:

(In thousands)	2012		2011		2010
Tube and fittings	$	986,825	$	1,082,150	$	898,615
Brass rod and forgings		583,940		662,369		581,660
OEM components, tube & assemblies		335,461		401,623		327,092
Valves and plumbing specialties		231,278		217,985		204,074
Other		52,434		53,670		48,356
	$	2,189,938	$	2,417,797	$	2,059,797

Geographic Information:

(In thousands)	2012		2011		2010
Net sales:
United States	$	1,696,589	$	1,830,001	$	1,567,606
United Kingdom		234,684		272,809		214,643
Other		258,665		314,987		277,548
	$	2,189,938	$	2,417,797	$	2,059,797

(In thousands)	2012		2011		2010
Long-lived assets:
United States	$	306,023	$	267,060	$	289,714
United Kingdom		23,496		23,962		24,088
Other		27,442		29,883		32,880
	$	356,961	$	320,905	$	346,682

Net assets of foreign operations at December 29, 2012 included $92.7 million in the United Kingdom, $48.7 million in Mexico, $57.9 million in Luxembourg, and $28.8 million in China.

Segment Information:

	For the Year Ended December 29, 2012
(In thousands)	Plumbing & Refrigeration Segment			OEM Segment		Corporate and Eliminations			Total
Net sales	$	1,238,230		$	974,606	$	(22,898	)	$	2,189,938
Cost of goods sold		1,060,755			866,404		(22,696	)		1,904,463
Depreciation and amortization		16,513			13,435		1,547			31,495
Selling, general, and administrative expense		75,448			27,680		26,328			129,456
Litigation settlement		—			—		(4,050	)		(4,050	)
Insurance settlement		(1,500	)		—		—			(1,500	)
Severance		—			—		3,369			3,369
Operating income		87,014			67,087		(27,396	)		126,705
Interest expense										(6,890	)
Other expense, net										539
Income before income taxes									$	120,354

	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

	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

(In thousands)	2012		2011		2010
Expenditures for long-lived assets (including business acquisitions):
Plumbing & Refrigeration	$	24,030	$	12,686	$	13,774
OEM		27,066		12,586		6,684
General corporate		17,290		361		241
	$	68,386	$	25,633	$	20,699
Segment assets:
Plumbing & Refrigeration	$	531,429	$	532,458	$	574,671
OEM		290,058		296,997		296,978
General corporate		282,668		518,149		387,347
	$	1,104,155	$	1,347,604	$	1,258,996