Industry Segments

12 Months Ended

Dec. 26, 2015

Industry Segments [Abstract]

Industry Segments

Note 16 – Industry Segments

The Company's reportable segments are Plumbing & Refrigeration and OEM.  For disclosure purposes, certain operating segments are aggregated into reportable segments.  The Plumbing & Refrigeration segment is composed of Standard Products (SPD), Great Lakes, 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. 

SPD manufactures and sells copper tube, copper and plastic fittings, line sets, and valves and 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., Great Lakes manufactures copper tube and line sets in Canada and sells its products primarily in the U.S. and Canada.European Operations manufacture copper tube in the United Kingdom, which is sold throughout 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 products are sold primarily to plumbing, refrigeration, and air-conditioning wholesales, hardware wholesalers and co-ops, and building material 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 2015, 2014, and 2013, no single customer exceeded 10 percent of worldwide sales.

Net Sales by Major Product Line:

(In thousands)	2015		2014		2013
Tube and fittings	$	1,053,761	$	1,143,164	$	972,107
Brass rod and forgings		436,456		556,985		553,896
OEM components, tube & assemblies		342,651		345,991		337,772
Valves and plumbing specialties		198,012		262,504		239,822
Other		69,122		55,583		54,944
	$	2,100,002	$	2,364,227	$	2,158,541

Geographic Information:

(In thousands)	2015		2014		2013
Net sales:
United States	$	1,519,456	$	1,752,548	$	1,651,138
United Kingdom		240,823		326,832		229,659
Canada		97,967		9,807		13,666
Other		241,756		275,040		264,078
	$	2,100,002	$	2,364,227	$	2,158,541

(In thousands)	2015		2014		2013
Long-lived assets:
United States	$	223,398	$	203,522	$	198,837
United Kingdom		15,248		19,007		21,220
Canada		20,460		—		—
Other		21,118		23,381		24,400
	$	280,224	$	245,910	$	244,457

Segment Information:

	For the Year Ended December 26, 2015
(In thousands)	Plumbing & Refrigeration Segment			OEM Segment		Corporate and Eliminations			Total
Net sales	$	1,260,273		$	849,538	$	(9,809	)	$	2,100,002
Cost of goods sold		1,082,493			736,878		(9,669	)		1,809,702
Depreciation and amortization		19,237			13,535		1,836			34,608
Selling, general, and administrative expense		80,405			26,477		23,476			130,358
Gain on sale of assets		(15,376	)		—		—			(15,376	)
Severance		3,442			—		—			3,442
Operating income		90,072			72,648		(25,452	)		137,268
Interest expense										(7,667	)
Other income, net										2,188
Income before income taxes									$	131,789

	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

(In thousands)	2015		2014		2013
Expenditures for long-lived assets (including business acquisitions):
Plumbing & Refrigeration	$	41,456	$	30,087	$	43,543
OEM		29,420		10,788		14,845
General corporate		136		401		3,254
	$	71,012	$	41,276	$	61,642
Segment assets:
Plumbing & Refrigeration	$	709,447	$	664,784	$	625,371
OEM		302,875		313,245		305,052
General corporate		326,479		350,067		317,344
	$	1,338,801	$	1,328,096	$	1,247,767