Segment Information

12 Months Ended

Dec. 30, 2017

Segment Reporting [Abstract]

Segment Information

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, Great Lakes Copper, Heatlink Group, European Operations, Trading Group, 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., Great Lakes Copper manufactures copper tube and line sets in Canada and sells the products primarily in the U.S. and Canada, Heatlink Group produces a complete line of products for PEX plumbing and radiant systems in Canada and sells these products in Canada and the U.S., 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 OEMs.

During 2017, the segment recognized a gain of $1.5 million on the sale of the Company’s interest in Mueller-Xingrong and impairment charges of $1.5 million on certain copper fittings manufacturing equipment.

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

During 2015, the segment recognized approximately $3.4 million of severance costs related to the reorganization of the European Operations as a result of the acquisition of Yorkshire Copper Tube in 2014. 

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, transportation, construction, heating, ventilation, and air-conditioning, plumbing, refrigeration, and energy 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 2017, 2016, and 2015, no single customer exceeded 10 percent of worldwide sales.

Net Sales by Major Product Line:

(In thousands)	2017		2016		2015
Tube and fittings	$	1,260,105	$	1,072,242	$	1,053,761
Brass rod and forgings	450,063		371,237		436,456
OEM components, tube & assemblies	272,567		327,327		342,651
Valves and plumbing specialties	200,409		209,217		198,012
Other	82,929		75,599		69,122
	$	2,266,073	$	2,055,622	$	2,100,002

Geographic Information:

(In thousands)	2017		2016		2015
Net sales:
United States	$	1,556,825	$	1,400,893	$	1,519,456
United Kingdom	231,039		197,039		240,823
Canada	280,140		237,162		97,967
Asia	121,295		149,875		162,664
Mexico	76,774		70,653		79,092
	$	2,266,073	$	2,055,622	$	2,100,002

(In thousands)	2017		2016		2015
Long-lived assets:
United States	$	238,752	$	223,099	$	223,398
United Kingdom	17,661		15,978		19,982
Canada	21,327		18,928		20,460
Asia	25,973		36,722		15,863
Mexico	608		504		521
	$	304,321	$	295,231	$	280,224

Summarized segment information is as follows:

	For the Year Ended December 30, 2017
(In thousands)	Piping Systems			Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	1,564,950		$	602,131	$	131,448	$	(32,456	)	$	2,266,073
Cost of goods sold	1,369,161			506,973		98,851		(34,368		)	1,940,617
Depreciation and amortization	21,777			7,516		2,513		2,138			33,944
Selling, general, and administrative expense	74,479			11,890		9,759		43,452			139,580
Gain on sale of businesses	(1,491		)	—		—		—			(1,491		)
Impairment charges	1,466			—		—		—			1,466
Operating income	99,558			75,752		20,325		(43,678		)	151,957
Interest expense											(19,502		)
Environmental expense											(7,284		)
Other income, net											1,801
Income before income taxes											$	126,972

Segment information (continued):

	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		)
Environmental expense										(1,279		)
Other income, net										1,983
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 businesses	(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		)
Environmental expense											(46		)
Other income, net											2,234
Income before income taxes											$	131,789

Segment information (continued):

(In thousands)	2017		2016		2015
Expenditures for long-lived assets (including those resulting from business acquisitions):
Piping Systems	$	18,124	$	56,286	$	41,900
Industrial Metals	5,322		3,302		16,603
Climate	2,191		2,045		12,373
General Corporate	22,518		55		136
	$	48,155	$	61,688	$	71,012

During the fourth quarter of 2017, the Company took early delivery of a Corporate aircraft to replace its existing aircraft. Subsequent to year-end, the existing aircraft was taken out of service and classified as held-for-sale, and the Company expects to recognize an impairment charge of approximately $3.3 million in the first quarter of 2018. The Company expects to sell the aircraft in 2018.

Segment assets:
Piping Systems	$	801,468	$	826,663	$	811,343
Industrial Metals	212,638		160,478		153,102
Climate	73,458		66,968		61,672
General Corporate	232,609		393,367		312,684
	$	1,320,173	$	1,447,476	$	1,338,801