Segment Information

6 Months Ended

Jun. 27, 2020

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, 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 sells these products in Canada and the U.S. European Operations manufacture copper tube in the U.K. which is sold primarily in Europe.  The Trading Group manufactures pipe nipples 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, Turbotec, ATCO, Linesets, Inc., and STI.  These domestic businesses manufacture and fabricate valves, assemblies, high pressure components, coaxial heat exchangers, insulated HVAC flexible duct systems, line sets, brazed manifolds, headers, and distributor assemblies primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S.

Summarized segment information is as follows:

	For the Quarter Ended June 27, 2020
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	334,040	$	88,619	$	86,107	$	(8,598)	$	500,168
Cost of goods sold	272,271		75,274		64,540		(8,926)		403,159
Depreciation and amortization	5,456		1,995		2,757		889		11,097
Selling, general, and administrative expense	15,239		2,477		6,457		9,443		33,616
Operating income	41,074		8,873		12,353		(10,004)		52,296
Interest expense									(4,973)
Other income, net									2,834
Income before income taxes									$	50,157

	For the Quarter Ended June 29, 2019
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	425,865	$	147,719	$	96,081	$	(3,271)	$	666,394
Cost of goods sold	364,332		127,950		74,849		(3,183)		563,948
Depreciation and amortization	5,652		1,838		2,128		860		10,478
Selling, general, and administrative expense	19,985		3,020		6,069		11,372		40,446
Operating income	35,896		14,911		13,035		(12,320)		51,522
Interest expense									(7,033)
Other income, net									462
Income before income taxes									$	44,951

Segment information (continued):

	For the Six Months Ended June 27, 2020
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	719,053	$	219,821	$	179,379	$	(15,166)	$	1,103,087
Cost of goods sold	591,435		190,071		135,633		(5,265)		911,874
Depreciation and amortization	11,155		3,997		5,223		1,761		22,136
Selling, general, and administrative expense	35,678		5,698		13,156		21,836		76,368
Asset impairments	3,035		—		—		—		3,035
Litigation settlement, net	—		—		—		(21,933)		(21,933)
Operating income	77,750		20,055		25,367		(11,565)		111,607
Interest expense									(10,352)
Other income, net									3,112
Income before income taxes									$	104,367

	For the Six Months Ended June 29, 2019
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	802,357	$	298,594	$	185,915	$	(8,691)	$	1,278,175
Cost of goods sold	689,128		254,649		141,678		(10,114)		1,075,341
Depreciation and amortization	11,202		3,682		4,441		1,708		21,033
Selling, general, and administrative expense	37,882		6,165		14,375		22,677		81,099
Operating income	64,145		34,098		25,421		(22,962)		100,702
Interest expense									(13,987)
Other income, net									290
Income before income taxes									$	87,005

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

	For the Quarter Ended June 27, 2020
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	256,016	$	—	$	—	$	256,016
Brass rod and forgings	—		64,490		—		64,490
OEM components, tube & assemblies	16,812		10,427		32,931		60,170
Valves and plumbing specialties	61,212		—		—		61,212
Other	—		13,702		53,176		66,878
	334,040		88,619		86,107		508,766
Intersegment sales							(8,598)
Net sales							$	500,168

	For the Quarter Ended June 29, 2019
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	358,473	$	—	$	—	$	358,473
Brass rod and forgings	—		114,082		—		114,082
OEM components, tube & assemblies	7,444		12,852		36,965		57,261
Valves and plumbing specialties	59,948		—		—		59,948
Other	—		20,785		59,116		79,901
	425,865		147,719		96,081		669,665
Intersegment sales							(3,271)
Net sales							$	666,394

	For the Six Months Ended June 27, 2020
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	558,145	$	—	$	—	$	558,145
Brass rod and forgings	—		164,160		—		164,160
OEM components, tube & assemblies	42,107		21,309		69,504		132,920
Valves and plumbing specialties	118,801		—		—		118,801
Other	—		34,352		109,875		144,227
	719,053		219,821		179,379		1,118,253
Intersegment sales							(15,166)
Net sales							$	1,103,087

Disaggregation of revenue from contracts with customers (continued):

	For the Six Months Ended June 29, 2019
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	665,994	$	—	$	—	$	665,994
Brass rod and forgings	—		230,006		—		230,006
OEM components, tube & assemblies	14,727		25,889		74,208		114,824
Valves and plumbing specialties	121,636		—		—		121,636
Other	—		42,699		111,707		154,406
	802,357		298,594		185,915		1,286,866
Intersegment sales							(8,691)
Net sales							$	1,278,175