Industry Segments

3 Months Ended

Mar. 29, 2014

Industry Segments [Abstract]

Industry Segments

Note 4 – 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 primarily in Europe.  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 also includes 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.  For the quarter ended March 29, 2014, cost of goods sold included a decrease in accruals related to import duties of $3.1 million.

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.

Summarized segment information is as follows:

	For the Quarter Ended March 29, 2014
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	338,027	$	240,030	$	(3,683	)	$	574,374
Cost of goods sold		289,025		210,403		(3,651	)		495,777
Depreciation and amortization		4,420		3,083		604			8,107
Selling, general, and administrative expense		20,697		5,258		6,228			32,183
Operating income		23,885		21,286		(6,864	)		38,307
Interest expense									(1,026	)
Other income, net									88
Income before income taxes								$	37,369

	For the Quarter Ended March 30, 2013
(In thousands)	Plumbing & Refrigeration Segment		OEM Segment		Corporate and Eliminations			Total
Net sales	$	311,814	$	253,787	$	(5,911	)	$	559,690
Cost of goods sold		264,814		223,880		(5,844	)		482,850
Depreciation and amortization		4,247		3,362		545			8,154
Selling, general, and administrative expense		20,128		6,222		4,993			31,343
Operating income		22,625		20,323		(5,605	)		37,343
Interest expense									(596	)
Other income, net									3,163
Income before income taxes								$	39,910