Segment Information

9 Months Ended

Sep. 30, 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 manufactured 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 September 30, 2017
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	384,078	$	147,578	$	32,488	$	(13,781	)	$	550,363
Cost of goods sold	340,191		120,021		24,111		(13,061		)	471,262
Depreciation and amortization	5,290		1,845		636		495			8,266
Selling, general, and administrative expense	17,873		2,667		2,312		10,424			33,276
Operating income	20,724		23,045		5,429		(11,639		)	37,559
Interest expense										(5,237		)
Other (expense) income, net										(458		)
Income before income taxes										$	31,864

Segment Information (continued):

	For the Quarter Ended October 1, 2016
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	351,557	$	131,350	$	30,003	$	(6,326	)	$	506,584
Cost of goods sold	301,867		107,512		22,210		(6,921		)	424,668
Depreciation and amortization	5,905		1,964		612		535			9,016
Selling, general, and administrative expense	16,647		3,125		2,357		10,284			32,413
Asset impairments	3,000		—		—		—			3,000
Operating income	24,138		18,749		4,824		(10,224		)	37,487
Interest expense										(1,830		)
Other income, net										120
Income before income taxes										$	35,777

	For the Nine Months Ended September 30, 2017
( In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	1,205,697	$	451,919	$	103,403	$	(18,470	)	$	1,742,549
Cost of goods sold	1,049,098		377,036		77,124		(19,258		)	1,484,000
Depreciation and amortization	16,223		5,647		1,880		1,466			25,216
Selling, general, and administrative expense	54,293		8,761		7,244		32,655			102,953
Asset impairments	411		—		—		—			411
Operating income	85,672		60,475		17,155		(33,333		)	129,969
Interest expense										(14,210		)
Other income, net										324
Income before income taxes										$	116,083

Segment Information (continued):

	For the Nine Months Ended October 1, 2016
( In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	1,109,109	$	393,608	$	92,068	$	(11,321	)	$	1,583,464
Cost of goods sold	949,015		321,615		68,363		(11,623		)	1,327,370
Depreciation and amortization	17,341		6,219		1,829		1,608			26,997
Selling, general, and administrative expense	51,497		9,989		7,336		33,885			102,707
Asset impairments	3,000		—		—		—			3,000
Operating income	88,256		55,785		14,540		(35,191		)	123,390
Interest expense										(5,370		)
Other income, net										880
Income before income taxes										$	118,900