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Segment Information | 9 Months Ended
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Oct. 01, 2016
Segment Information [Abstract] |
Segment Information | Note 3 –Segment Information During the first quarter of 2016, the Company made changes to its management reporting structure as a result of a change in the way the Chief Executive Officer, who serves as the Chief Operating Decision Maker, manages and evaluates the business, makes key operating decisions, and allocates resources. Previously, the Company had two reportable segments: Plumbing & Refrigeration and OEM. During the first quarter, the Company realigned its operating segments into three reportable segments: Piping Systems, Industrial Metals, and Climate. Management has recast certain prior period amounts to conform to the current period presentation. 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: Domestic Piping Systems Group, Canadian Operations, European Operations, Trading Group, Mueller-Xingrong (the Company's Chinese joint venture), 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. and sold in North America. Outside the U.S., the Canadian Operations manufacture copper tube and line sets and sell the products primarily in the U.S. and 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. Mueller-Xingrong manufactures engineered copper tube primarily for air-conditioning applications in China. 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). During the third quarter of 2016, the segment recognized impairment charges of $3.0 million on fixed assets used for product development. During the second quarter of 2015, the segment recognized approximately $3.4 millon of severance costs related to the reorganization of Yorkshire Copper Tube, acquired 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, 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 and 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 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 Quarter Ended September 26, 2015 |
(In thousands) |  | Piping Systems |  |  | Industrial Metals |  |  | Climate |  |  | Corporate and Eliminations |  |  | Total |
Net sales |  | $ | 367,892 |  |  | $ | 139,472 |  |  | $ | 28,494 |  |  | $ | (674 | ) |  | $ | 535,184 |
Cost of goods sold |  |  | 320,571 |  |  |  | 125,146 |  |  |  | 22,160 |  |  |  | (710 | ) |  |  | 467,167 |
Depreciation and amortization |  |  | 5,430 |  |  |  | 2,154 |  |  |  | 608 |  |  |  | 557 |  |  |  | 8,749 |
Selling, general, and administrative expense |  |  | 16,469 |  |  |  | 3,044 |  |  |  | 2,283 |  |  |  | 10,445 |  |  |  | 32,241 |
Operating income |  |  | 25,422 |  |  |  | 9,128 |  |  |  | 3,443 |  |  |  | (10,966 | ) |  |  | 27,027 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,682 | )
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 164 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 25,509 |
|  | 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 |
|  | For the Nine Months Ended September 26, 2015 |
(In thousands) |  | Piping Systems |  |  | Industrial Metals |  |  | Climate |  |  | Corporate and Eliminations |  |  | Total |
Net sales |  | $ | 1,109,124 |  |  | $ | 435,736 |  |  | $ | 85,803 |  |  | $ | (2,644 | ) |  | $ | 1,628,019 |
Cost of goods sold |  |  | 959,599 |  |  |  | 373,678 |  |  |  | 67,561 |  |  |  | (2,472 | ) |  |  | 1,398,366 |
Depreciation and amortization |  |  | 15,952 |  |  |  | 5,452 |  |  |  | 1,647 |  |  |  | 1,739 |  |  |  | 24,790 |
Selling, general, and administrative expense |  |  | 50,021 |  |  |  | 8,044 |  |  |  | 6,637 |  |  |  | 33,220 |  |  |  | 97,922 |
Asset impairments |  |  | 570 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 570 |
Gain on sale of assets |  |  | (15,376 | ) |  |  | — |  |  |  | — |  |  |  | — |  |  |  | (15,376 | )
Severance |  |  | 3,442 |  |  |  | — |  |  |  | — |  |  |  | — |  |  |  | 3,442 |
Operating income |  |  | 94,916 |  |  |  | 48,562 |  |  |  | 9,958 |  |  |  | (35,131 | ) |  |  | 118,305 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (5,977 | )
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 534 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 112,862 |
(In thousands) |  | October 1, 2016 |  |  | December 26, 2015 |
Segment assets: |  |  |  |  |  |
Piping Systems |  | $ | 855,036 |  |  | $ | 811,343 |
Industrial Metals |  |  | 160,413 |  |  |  | 153,102 |
Climate |  |  | 61,713 |  |  |  | 61,672 |
General Corporate |  |  | 348,959 |  |  |  | 312,684 |
|  | $ | 1,426,121 |  |  | $ | 1,338,801 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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