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Segment Information | 12 Months Ended
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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 |

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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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