Segment Information

6 Months Ended

Jul. 01, 2017

Segment Reporting [Abstract]

Segment Information

Segment Information

Each of the Company’s 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, Great Lakes Copper, Pexcor & Heatlink, European Operations, Trading Group, 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., sold in the U.S, and exported to markets worldwide.   Outside the U.S., Great Lakes Copper manufactures copper tube and line sets and sells the products primarily in the U.S. and Canada, Pexcor & Heatlink produce a complete line of products for PEX plumbing and radiant systems in Canada, and the 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.  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).

The Company disposed of Mueller-Xingrong (the Company’s Chinese joint venture) on June 21, 2017. This business manufactures engineered copper tube primarily for air-conditioning applications in China.

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, assemblies, high pressure components, and coaxial heat exchangers 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 1, 2017
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	422,844	$	154,504	$	36,636	$	282		$	614,266
Cost of goods sold	364,261		132,972		27,449		(371		)	524,311
Depreciation and amortization	5,591		1,904		615		485			8,595
Selling, general, and administrative expense	18,410		2,864		2,456		10,827			34,557
Operating income	34,582		16,764		6,116		(10,659		)	46,803
Interest expense										(6,442		)
Other income, net										231
Income before income taxes										$	40,592

Segment information (continued):

	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 income taxes										$	43,259

	For the Six Months Ended July 1, 2017
( In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	821,619	$	304,341	$	70,915	$	(4,689	)	$	1,192,186
Cost of goods sold	708,907		257,015		53,013		(6,197		)	1,012,738
Depreciation and amortization	10,933		3,802		1,244		971			16,950
Selling, general, and administrative expense	36,831		6,094		4,932		22,231			70,088
Operating income	64,948		37,430		11,726		(21,694		)	92,410
Interest expense										(8,973		)
Other income, net										782
Income before income taxes										$	84,219

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 income taxes										$	83,123