Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information [Abstract]

Segment Information

Note 3 –Segment Information

The Company's reportable segments are Piping Systems, Industrial Metals, and Climate.  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: DPS, Canadian Operations, European Operations, Trading Group, Mueller-Xingrong (the Company's Chinese joint venture), and Jungwoo-Mueller (the Company's South Korean joint venture).  DPS manufactures copper tube and fittings, plastic fittings, and line sets.  These products are manufactured in the U.S., sold in the U.S., and exported to markets worldwide.  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 in the U.K. 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 Systems 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).

During 2016, the segment recognized impairment charges of $6.1 million on fixed assets used for product development.

The segment recognized approximately $3.4 million of severance costs related to the reorganization of Yorkshire during 2015, compared to $7.3 million in 2014.  The Company does not expect to incur further severance costs for the rationalization of the business.

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.

During 2016, the segment recognized impairment charges of $0.7 million on fixed assets related to the rationalization of Sherwood.

Climate

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

Performance of segments is generally evaluated by their operating income.  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 2016, 2015, and 2014, no single customer exceeded 10 percent of worldwide sales.

Net Sales by Major Product Line:

(In thousands)	2016		2015		2014
Tube and fittings	$	1,072,242	$	1,053,761	$	1,143,164
Brass rod and forgings		371,237		436,456		556,985
OEM components, tube & assemblies		327,327		342,651		345,991
Valves and plumbing specialties		209,217		198,012		262,504
Other		75,599		69,122		55,583
	$	2,055,622	$	2,100,002	$	2,364,227

Geographic Information:

(In thousands)	2016		2015		2014
Net sales:
United States	$	1,400,893	$	1,519,456	$	1,752,548
United Kingdom		197,039		240,823		326,832
Canada		237,162		97,967		9,807
Asia		149,875		162,664		194,495
Mexico		70,653		79,092		80,545
	$	2,055,622	$	2,100,002	$	2,364,227

(In thousands)	2016		2015		2014
Long-lived assets:
United States	$	223,099	$	223,398	$	203,522
United Kingdom		15,978		19,982		21,766
Canada		18,928		20,460		—
Asia		36,722		15,863		19,765
Mexico		504		521		857
	$	295,231	$	280,224	$	245,910

Summarized segment information is as follows:

	For the Year Ended December 31, 2016
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	1,429,589	$	521,060	$	119,758	$	(14,785	)	$	2,055,622
Cost of goods sold		1,228,949		420,905		89,927		(16,282	)		1,723,499
Depreciation and amortization		22,421		8,162		2,437		2,113			35,133
Selling, general, and administrative expense		68,218		13,162		9,661		46,458			137,499
Impairment charges		6,115		663		—		—			6,778
Operating income		103,886		78,168		17,733		(47,074	)		152,713
Interest expense											(7,387	)
Other income, net											704
Income before income taxes										$	146,030

	For the Year Ended December 26, 2015
(In thousands)	Piping Systems			Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	1,436,689		$	567,467	$	110,727	$	(14,881	)	$	2,100,002
Cost of goods sold		1,245,929			491,567		86,894		(14,688	)		1,809,702
Depreciation and amortization		22,559			7,503		2,257		2,289			34,608
Selling, general, and administrative expense		66,903			10,955		9,117		43,383			130,358
Gain on sale of assets		(15,376	)		—		—		—			(15,376	)
Severance		3,442			—		—		—			3,442
Operating income		113,232			57,442		12,459		(45,865	)		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)	Piping Systems			Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	1,622,921		$	659,847	$	99,336	$	(17,877	)	$	2,364,227
Cost of goods sold		1,409,581			572,979		79,099		(17,940	)		2,043,719
Depreciation and amortization		22,221			6,998		1,845		2,671			33,735
Selling, general, and administrative expense		71,524			7,660		7,363		45,193			131,740
Gain on sale of assets		(6,259	)		—		—		—			(6,259	)
Severance		7,296			—		—		—			7,296
Operating income		118,558			72,210		11,029		(47,801	)		153,996
Interest expense												(5,740	)
Other expense, net												(243	)
Income before income taxes											$	148,013

(In thousands)	2016		2015		2014
Expenditures for long-lived assets (including those resulting from business acquisitions):
Piping Systems	$	56,286	$	41,900	$	30,727
Industrial Metals		3,302		16,603		7,965
Climate		2,045		12,373		2,183
General Corporate		55		136		401
	$	61,688	$	71,012	$	41,276
Segment assets:
Piping Systems	$	826,663	$	811,343	$	786,229
Industrial Metals		160,478		153,102		159,572
Climate		66,968		61,672		38,268
General Corporate		393,367		312,684		344,027
	$	1,447,476	$	1,338,801	$	1,328,096