Industry Segments

6 Months Ended

Jun. 29, 2013

Industry Segments [Abstract]

Industry Segments

Note 5 – 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 original equipment manufacturers.

	For the Quarter Ended June 29, 2013
(In thousands)	Plumbing & Refrigeration Segment			OEM Segment		Corporate and Eliminations			Total
Net sales	$	328,673		$	257,044	$	(3,435	)	$	582,282
Cost of goods sold		277,933			226,596		(3,404	)		501,125
Depreciation and amortization		4,443			3,342		543			8,328
Selling, general, and administrative expense		20,382			6,167		8,265			34,814
Insurance settlement		(103,895	)		—		(2,437	)		(106,332	)
Operating income		129,810			20,939		(6,402	)		144,347
Interest expense										(1,101	)
Other income, net										319
Income before income taxes									$	143,565

	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 Six Months Ended June 29, 2013
(In thousands)	Plumbing & Refrigeration Segment			OEM Segment		Corporate and Eliminations			Total
Net sales	$	640,487		$	510,831	$	(9,346	)	$	1,141,972
Cost of goods sold		542,747			450,476		(9,248	)		983,975
Depreciation and amortization		8,689			6,704		1,089			16,482
Selling, general, and administrative expense		40,509			12,389		13,259			66,157
Insurance settlement		(103,895	)		—		(2,437	)		(106,332	)
Operating income		152,437			41,262		(12,009	)		181,690
Interest expense										(1,697	)
Other income, net										3,482
Income before income taxes									$	183,475

	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