Industry Segments

12 Months Ended

Dec. 27, 2014

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, and line sets. SPD also imports and resells brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products. 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. Mexican Operations consist of pipe nipple manufacturing and import distribution businesses including product lines of malleable iron fittings and other plumbing specialties. 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 2014, 2013, and 2012, no single customer exceeded 10 percent of worldwide sales.

Net Sales by Major Product Line:

(In thousands)	2014		2013		2012
Tube and fittings	$	1,143,164	$	972,107	$	986,825
Brass rod and forgings		556,985		553,896		583,940
OEM components, tube & assemblies		345,991		337,772		335,461
Valves and plumbing specialties		262,504		239,822		231,278
Other		55,583		54,944		52,434
	$	2,364,227	$	2,158,541	$	2,189,938

Geographic Information:

(In thousands)	2014		2013		2012
Net sales:
United States	$	1,752,548	$	1,676,385	$	1,696,589
United Kingdom		326,832		229,659		234,684
Other		284,847		252,497		258,665
	$	2,364,227	$	2,158,541	$	2,189,938

(In thousands)	2014		2013		2012
Long-lived assets:
United States	$	322,178	$	325,667	$	306,023
United Kingdom		43,064		22,159		23,496
Other		21,641		25,224		27,442
	$	386,883	$	373,050	$	356,961

Net assets of foreign operations at December 27, 2014 included $112.6 million in the United Kingdom, $50.4 million in Mexico, $45.7 million in Luxembourg, and $23.9 million in China.

Segment Information:

	For the Year Ended December 27, 2014
(In thousands)	Plumbing & Refrigeration Segment			OEM Segment		Corporate and Eliminations			Total
Net sales	$	1,416,701		$	959,914	$	(12,388	)	$	2,364,227
Cost of goods sold		1,215,282			840,823		(12,386	)		2,043,719
Depreciation and amortization		19,613			11,919		2,203			33,735
Selling, general, and administrative expense		87,539			21,458		22,743			131,740
Gain on sale of assets		(6,259	)		—		—			(6,259	)
Severance		7,296			—		—			7,296
Operating income		93,230			85,714		(24,948	)		153,996
Interest expense										(5,740	)
Other expense, net										(243	)
Income before income taxes									$	148,013

	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 income, 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

(In thousands)	2014		2013		2012
Expenditures for long-lived assets (including business acquisitions):
Plumbing & Refrigeration	$	55,098	$	47,222	$	24,030
OEM		10,788		14,845		24,137
General corporate		400		3,253		17,290
	$	66,286	$	65,320	$	65,457
Segment assets:
Plumbing & Refrigeration	$	664,784	$	625,371	$	531,429
OEM		313,245		305,052		290,058
General corporate		350,067		317,344		282,668
	$	1,328,096	$	1,247,767	$	1,104,155