Industry Segments

12 Months Ended

Dec. 28, 2013

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 2013, 2012, and 2011, no single customer exceeded 10 percent of worldwide sales.

Net Sales by Major Product Line:

(In thousands)	2013		2012		2011
Tube and fittings	$	972,107	$	986,825	$	1,082,150
Brass rod and forgings		553,896		583,940		662,369
OEM components, tube & assemblies		337,772		335,461		401,623
Valves and plumbing specialties		239,822		231,278		217,985
Other		54,944		52,434		53,670
	$	2,158,541	$	2,189,938	$	2,417,797

Geographic Information:

(In thousands)	2013		2012		2011
Net sales:
United States	$	1,676,385	$	1,696,589	$	1,830,001
United Kingdom		229,659		234,684		272,809
Other		252,497		258,665		314,987
	$	2,158,541	$	2,189,938	$	2,417,797

(In thousands)	2013		2012		2011
Long-lived assets:
United States	$	325,667	$	306,023	$	267,060
United Kingdom		22,159		23,496		23,962
Other		25,224		27,442		29,883
	$	373,050	$	356,961	$	320,905

Net assets of foreign operations at December 28, 2013 included $108.2 million in the United Kingdom, $45.5 million in Mexico, $59.5 million in Luxembourg, and $22.7 million in China.

Segment Information:

	For the Year Ended December 28, 2013
(In thousands)	Plumbing & Refrigeration Segment			OEM Segment		Corporate and Eliminations			Total
Net sales	$	1,225,306		$	947,784	$	(14,549	)	$	2,158,541
Cost of goods sold		1,043,059			833,518		(14,488	)		1,862,089
Depreciation and amortization		17,117			13,025		2,252			32,394
Selling, general, and administrative expense		85,471			24,479		24,964			134,914
Insurance settlement		(103,895	)		—		(2,437	)		(106,332	)
Gain on sale of plastic fittings manufacturing assets		(39,765	)		—		—			(39,765	)
Impairment charges		4,173			131		—			4,304
Operating income		219,146			76,631		(24,840	)		270,937
Interest expense										(3,990	)
Other expense, net										4,451
Income before income taxes									$	271,398

	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

(In thousands)	2013		2012		2011
Expenditures for long-lived assets (including business acquisitions):
Plumbing & Refrigeration	$	47,222	$	24,030	$	12,686
OEM		14,845		24,137		12,586
General corporate		3,253		17,290		361
	$	65,320	$	65,457	$	25,633
Segment assets:
Plumbing & Refrigeration	$	625,371	$	531,429	$	532,458
OEM		305,052		290,058		296,997
General corporate		317,344		282,668		518,149
	$	1,247,767	$	1,104,155	$	1,347,604