Segment Information

3 Months Ended

Mar. 31, 2018

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, Heatlink Group, Die-Mold, 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 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., Die-Mold manufactures PEX and other plumbing-related fittings and plastic injection tooling 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).

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.

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 March 31, 2018
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	430,964	$	177,332	$	36,063	$	(4,299	)	$	640,060
Cost of goods sold	372,895		149,423		27,286		(3,934		)	545,670
Depreciation and amortization	5,878		1,903		621		1,054			9,456
Selling, general, and administrative expense	19,242		3,373		2,609		8,833			34,057
Asset impairment	—		—		—		3,469			3,469
Operating income	32,949		22,633		5,547		(13,721		)	47,408
Interest expense										(5,909		)
Other income, net										560
Income before income taxes										$	42,059

	For the Quarter Ended April 1, 2017
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations			Total
Net sales	$	398,775	$	149,837	$	34,279	$	(4,971	)	$	577,920
Cost of goods sold	344,646		124,043		25,564		(5,826		)	488,427
Depreciation and amortization	5,342		1,898		629		486			8,355
Selling, general, and administrative expense	18,197		3,549		2,476		11,352			35,574
Operating income	30,590		20,347		5,610		(10,983		)	45,564
Interest expense										(2,531		)
Other income, net										594
Income before income taxes										$	43,627

The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category:

	For the Quarter Ended March 31, 2018
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	358,091	$	—	$	—	$	358,091
Brass rod and forgings	—		136,548		—		136,548
OEM components, tube & assemblies	7,062		15,067		36,063		58,192
Valves and plumbing specialties	65,811		—		—		65,811
Other	—		25,717		—		25,717
	430,964		177,332		36,063		644,359
Intersegment sales							(4,299		)
Net sales							$	640,060

	For the Quarter Ended April 1, 2017
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	308,366	$	—	$	—	$	308,366
Brass rod and forgings	—		114,180		—		114,180
OEM components, tube & assemblies	31,971		13,215		34,279		79,465
Valves and plumbing specialties	58,438		—		—		58,438
Other	—		22,442		—		22,442
	398,775		149,837		34,279		582,891
Intersegment sales							(4,971		)
Net sales							$	577,920