Segment Information

6 Months Ended

Jul. 02, 2016

Segment Information [Abstract]

Segment Information

Note 3 –Segment Information

During the first quarter of 2016, the Company made changes to its management reporting structure as a result of a change in the way the Chief Executive Officer, who serves as the Chief Operating Decision Maker, manages and evaluates the business, makes key operating decisions, and allocates resources.  Previously, the Company had two reportable segments: Plumbing & Refrigeration and OEM.  During the first quarter, the Company realigned its operating segments into three reportable segments: Piping Systems, Industrial Metals, and Climate.  Management has recast certain prior period amounts to conform the current period presentation. Each of the reportable segments is composed of certain operating segments that are aggregated primarily by the nature of products offered as follows:

Piping Systems

Piping Systems is composed of the following operating segments: Domestic Piping Systems Group, Canadian Operations, European Operations, Trading Group, Mueller-Xingrong (the Company's Chinese joint venture), and Jungwoo-Mueller (the Company's South Korean joint venture).  The Domestic Piping Systems Group manufactures copper tube and fittings, plastic fittings, and line sets.  These products are manufactured in the U.S.   Outside the U.S., the Canadian Operations manufacture copper tube and line sets and sell the products primarily in the U.S. and Canada, andthe European Operations manufacture copper tube, which is sold primarily in Europe.  The Trading Group manufactures pipe nipples and imports and resells brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products in the U.S. and Mexico.  Mueller-Xingrong manufactures engineered copper tube primarily for air-conditioning applications in China.  Jungwoo-Mueller manufactures copper-based joining products that are sold worldwide.  The Piping System segment's products are sold primarily to plumbing, refrigeration, and air-conditioning wholesalers, hardware wholesalers and co-ops, building product retailers, and air-conditioning original equipment manufacturers (OEMs).

Industrial Metals

Industrial Metals is composed of the following operating segments: Brass Rod & Copper Bar Products, Impacts & Micro Gauge, and Brass Value-Added Products.  These businesses manufacture brass rod, impact extrusions, and forgings, as well as a wide variety of end products including plumbing brass, automotive components, valves, fittings, and gas assemblies.  These products are manufactured in the U.S. and sold primarily to OEMs in the U.S., many of which are in the industrial, construction, heating, ventilation, and air-conditioning, plumbing, and refrigeration markets.

Climate

Climate is composed of the following operating segments: Refrigeration Products, Fabricated Tube Products, Westermeyer, and Turbotec.  These domestic businesses manufacture and fabricate valves and assemblies primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S.
 

Summarized segment information is as follows:

	For the Quarter Ended July 2, 2016
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	388,662	$	127,737	$	31,359	$	(3,687	)	$	544,071
Cost of goods sold		333,356		104,874		22,448		(4,618	)		456,060
Depreciation and amortization		5,787		2,120		618		536			9,061
Selling, general, and administrative expense		16,560		3,619		2,456		11,879			34,514
Operating income		32,959		17,124		5,837		(11,484	)		44,436
Interest expense											(1,692	)
Other income, net											515
Income before taxes										$	43,259

	For the Quarter Ended June 27, 2015
(In thousands)	Piping Systems			Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	379,750		$	145,228	$	31,498	$	(883	)	$	555,593
Cost of goods sold		326,338			120,808		24,134		(915	)		470,365
Depreciation and amortization		5,335			1,643		614		596			8,188
Selling, general, and administrative expense		16,776			2,302		2,500		11,842			33,420
Gain on sale of assets		(15,376	)		—		—		—			(15,376	)
Severance		3,442			—		—		—			3,442
Operating income		43,235			20,475		4,250		(12,406	)		55,554
Interest expense												(2,219	)
Other income, net												265
Income before taxes											$	53,600

Segment information (continued):

	For the Six Months Ended July 2, 2016
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	757,552	$	262,258	$	62,065	$	(4,995	)	$	1,076,880
Cost of goods sold		647,148		214,103		46,153		(4,702	)		902,702
Depreciation and amortization		11,436		4,255		1,217		1,073			17,981
Selling, general, and administrative expense		34,850		6,864		4,979		23,601			70,294
Operating income		64,118		37,036		9,716		(24,967	)		85,903
Interest expense											(3,540	)
Other income, net											760
Income before taxes										$	83,123

	For the Six Months Ended June 27, 2015
(In thousands)	Piping Systems			Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	741,232		$	296,264	$	57,309	$	(1,970	)	$	1,092,835
Cost of goods sold		639,028			248,532		45,401		(1,762	)		931,199
Depreciation and amortization		10,522			3,298		1,039		1,182			16,041
Selling, general, and administrative expense		34,122			5,000		4,354		22,775			66,251
Gain on sale of assets		(15,376	)		—		—		—			(15,376	)
Severance		3,442			—		—		—			3,442
Operating income		69,494			39,434		6,515		(24,165	)		91,278
Interest expense												(4,295	)
Other income, net												370
Income before taxes											$	87,353

(In thousands)	July 2, 2016		December 26, 2015
Segment assets:
Piping Systems	$	863,138	$	811,343
Industrial Metals		160,655		153,102
Climate		66,383		61,672
General Corporate		330,299		312,684
	$	1,420,475	$	1,338,801