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Segment Information | 12 Months Ended
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Dec. 28, 2019
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: 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 OEMs. During 2019, the segment recognized a gain of $1.2 million on the sale of real property. During 2018, the segment recognized a gain of $1.4 million on the sale of real property and a gain of $0.7 million on the sale of manufacturing equipment. 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. 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 2019, the segment recognized a loss of $0.3 million on the sale of real property and an insurance recovery gain of $0.5 million related to the losses incurred due to the 2017 fire at the brass rod mill in Port Huron, Michigan. During 2018, the segment recognized a gain of $1.3 million on the sale of real property and an insurance recovery gain of $3.7 million related to the losses incurred due to the 2017 fire at the brass rod mill in Port Huron, Michigan. Climate Climate is composed of the following operating segments: Refrigeration Products, Fabricated Tube Products, Westermeyer, Turbotec, ATCO, and Linesets, Inc. These domestic businesses manufacture and fabricate valves, assemblies, high pressure components, coaxial heat exchangers, insulated HVAC flexible duct systems, and line sets 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 2019, 2018, and 2017, no single customer exceeded 10 percent of worldwide sales. The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category:
|  | For the Year Ended December 28, 2019
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 1,271,558 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,271,558 |
Brass rod and forgings |  | — |  |  | 425,573 |  |  | — |  |  | 425,573 |
OEM components, tube & assemblies |  | 29,103 |  |  | 48,104 |  |  | 133,651 |  |  | 210,858 |
Valves and plumbing specialties |  | 241,795 |  |  | — |  |  | — |  |  | 241,795 |
Other |  | — |  |  | 80,695 |  |  | 222,565 |  |  | 303,260 |
|  | $ | 1,542,456 |  |  | $ | 554,372 |  |  | $ | 356,216 |  |  | $ | 2,453,044 |
Intersegment sales |  |  |  |  |  |  |  | (22,428 | )
Net sales |  |  |  |  |  |  |  | $ | 2,430,616 |
|  | For the Year Ended December 29, 2018
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 1,352,875 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,352,875 |
Brass rod and forgings |  | — |  |  | 501,472 |  |  | — |  |  | 501,472 |
OEM components, tube & assemblies |  | 29,578 |  |  | 53,581 |  |  | 139,113 |  |  | 222,272 |
Valves and plumbing specialties |  | 263,180 |  |  | — |  |  | — |  |  | 263,180 |
Other |  | — |  |  | 96,008 |  |  | 89,956 |  |  | 185,964 |
|  | $ | 1,645,633 |  |  | $ | 651,061 |  |  | $ | 229,069 |  |  | $ | 2,525,763 |
Intersegment sales |  |  |  |  |  |  |  | (17,885 | )
Net sales |  |  |  |  |  |  |  | $ | 2,507,878 |
Disaggregation of revenue from contracts with customers (continued):
|  | For the Year Ended December 30, 2017
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 1,238,258 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,238,258 |
Brass rod and forgings |  | — |  |  | 461,603 |  |  | — |  |  | 461,603 |
OEM components, tube & assemblies |  | 94,383 |  |  | 51,707 |  |  | 131,448 |  |  | 277,538 |
Valves and plumbing specialties |  | 232,309 |  |  | — |  |  | — |  |  | 232,309 |
Other |  | — |  |  | 88,821 |  |  | — |  |  | 88,821 |
|  | $ | 1,564,950 |  |  | $ | 602,131 |  |  | $ | 131,448 |  |  | $ | 2,298,529 |
Intersegment sales |  |  |  |  |  |  |  | (32,456 | )
Net sales |  |  |  |  |  |  |  | $ | 2,266,073 |
Summarized geographic information is as follows:
(In thousands) |  | 2019 |  | 2018 |  | 2017
Net sales: |  |  |  |  |  |
United States |  | $ | 1,775,321 |  |  | $ | 1,820,857 |  |  | $ | 1,556,825 |
United Kingdom |  | 230,791 |  |  | 245,458 |  |  | 231,039 |
Canada |  | 285,720 |  |  | 292,798 |  |  | 280,140 |
Asia |  | 64,363 |  |  | 59,730 |  |  | 121,295 |
Mexico |  | 74,421 |  |  | 89,035 |  |  | 76,774 |
|  | $ | 2,430,616 |  |  | $ | 2,507,878 |  |  | $ | 2,266,073 |
(In thousands) |  | 2019 |  | 2018 |  | 2017
Long-lived assets: |  |  |  |  |  |
United States |  | $ | 286,727 |  |  | $ | 295,735 |  |  | $ | 238,752 |
United Kingdom |  | 18,776 |  |  | 16,313 |  |  | 17,661 |
Canada |  | 31,429 |  |  | 33,144 |  |  | 21,327 |
Asia |  | 25,637 |  |  | 24,930 |  |  | 25,973 |
Mexico |  | 559 |  |  | 511 |  |  | 608 |
|  | $ | 363,128 |  |  | $ | 370,633 |  |  | $ | 304,321 |
Summarized segment information is as follows:
|  | For the Year Ended December 28, 2019
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 1,542,456 |  |  | $ | 554,372 |  |  | $ | 356,216 |  |  | $ | (22,428 | ) |  | $ | 2,430,616 |
Cost of goods sold |  | 1,313,980 |  |  | 473,010 |  |  | 273,850 |  |  | (25,230 | ) |  | 2,035,610 |
Depreciation and amortization |  | 22,621 |  |  | 7,489 |  |  | 9,298 |  |  | 3,285 |  |  | 42,693 |
Selling, general, and administrative expense |  | 75,170 |  |  | 12,359 |  |  | 30,385 |  |  | 44,444 |  |  | 162,358 |
(Gain) loss on sale of assets, net |  | (1,194 | ) |  | 275 |  |  | (44 | ) |  | — |  |  | (963 | )
Insurance recovery |  | — |  |  | (485 | ) |  | — |  |  | — |  |  | (485 | )
Operating income |  | 131,879 |  |  | 61,724 |  |  | 42,727 |  |  | (44,927 | ) |  | 191,403 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  | (25,683 | )
Environmental expense |  |  |  |  |  |  |  |  |  | (1,321 | )
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,684 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 166,083 |
|  | For the Year Ended December 29, 2018
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 1,645,633 |  |  | $ | 651,061 |  |  | $ | 229,069 |  |  | $ | (17,885 | ) |  | $ | 2,507,878 |
Cost of goods sold |  | 1,426,729 |  |  | 559,367 |  |  | 182,456 |  |  | (18,152 | ) |  | 2,150,400 |
Depreciation and amortization |  | 23,304 |  |  | 7,568 |  |  | 5,569 |  |  | 3,114 |  |  | 39,555 |
Selling, general, and administrative expense |  | 74,864 |  |  | 13,501 |  |  | 16,926 |  |  | 43,597 |  |  | 148,888 |
(Gain) loss on sale of assets, net |  | (2,093 | ) |  | (1,301 | ) |  | — |  |  | 3,141 |  |  | (253 | )
Insurance recovery |  | — |  |  | (3,681 | ) |  | — |  |  | — |  |  | (3,681 | )
Operating income |  | 122,829 |  |  | 75,607 |  |  | 24,118 |  |  | (49,585 | ) |  | 172,969 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  | (25,199 | )
Environmental expense |  |  |  |  |  |  |  |  |  | (1,320 | )
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  | 3,967 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 150,417 |
Segment information (continued):
|  | 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 |  | 74,441 |  |  | 13,278 |  |  | 9,759 |  |  | 43,252 |  |  | 140,730 |
Gain on sale of assets, net |  | (1,491 | ) |  | — |  |  | — |  |  | — |  |  | (1,491 | )
Impairment charges |  | 1,466 |  |  | — |  |  | — |  |  | — |  |  | 1,466 |
Operating income |  | 99,596 |  |  | 74,364 |  |  | 20,325 |  |  | (43,478 | ) |  | 150,807 |
Interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  | (19,502 | )
Environmental expense |  |  |  |  |  |  |  |  |  | (7,284 | )
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,951 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 126,972 |
(In thousands) |  | 2019 |  | 2018 |  | 2017
Expenditures for long-lived assets (including those resulting from business acquisitions): |  |  |  |  |  |
Piping Systems |  | $ | 15,505 |  |  | $ | 31,362 |  |  | $ | 18,124 |
Industrial Metals |  | 9,101 |  |  | 8,066 |  |  | 5,322 |
Climate |  | 3,845 |  |  | 85,471 |  |  | 2,191 |
General Corporate |  | 2,711 |  |  | 37 |  |  | 22,518 |
|  | $ | 31,162 |  |  | $ | 124,936 |  |  | $ | 48,155 |
Segment assets: |  |  |  |  |  |  |  |  |
Piping Systems |  | $ | 796,262 |  |  | $ | 818,303 |  |  | $ | 801,468 |
Industrial Metals |  | 161,904 |  |  | 173,725 |  |  | 212,638 |
Climate |  | 249,853 |  |  | 246,851 |  |  | 73,458 |
General Corporate |  | 162,921 |  |  | 130,670 |  |  | 232,609 |
|  | $ | 1,370,940 |  |  | $ | 1,369,549 |  |  | $ | 1,320,173 |

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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