XML 67 R22.htm IDEA: XBRL DOCUMENT v3.3.0.814
Segment Information
12 Months Ended
Sep. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]
Segment Information
Our operations consist of three business segments: Mueller Co., Anvil and Mueller Technologies. These segments are organized primarily based on products sold and customers served and are consistent with how the segments are managed, how resources are allocated and how information is used by the chief operating decision maker. Mueller Co. manufactures valves for water and gas systems including butterfly, iron gate, tapping, check, knife, plug and ball valves and dry-barrel and wet-barrel fire hydrants. Anvil manufactures and sources a broad range of products including a variety of fittings, couplings, hangers and related products. The Mueller Technologies businesses offer metering, leak detection, pipe condition assessment and other products and services for the water infrastructure industry.
Segment results are not reflective of their results on a stand-alone basis. Intersegment sales and transfers are made at selling prices generally intended to cover costs. Mueller Co. personnel provide certain administrative services, including management of accounts payable and accounts receivable, without any allocation of cost to Mueller Technologies. We do not believe the costs of such administrative services are material to the segments’ results. The determination of segment results excludes certain corporate expenses designated as Corporate because they are not directly attributable to segment operations. Interest expense, loss on early extinguishment of debt and income taxes are not allocated to the segments. Corporate expenses include those costs incurred by our corporate function, such as accounting, treasury, risk management, human resources, legal, tax and other administrative functions and also costs associated with assets and liabilities retained following the sale of U.S. Pipe. Corporate assets principally consist of cash, income tax assets, assets related to the sale of our former U.S. Pipe segment and deferred financing costs. Segment assets consist primarily of receivables, inventories, property, plant and equipment, intangible assets and other noncurrent assets.
Geographical area information is presented below.
 
United States
 
Canada    
 
Other    
 
Total    
 
(in millions)
Net sales:
 
 
 
 
 
 
 
2015
$
1,037.7

 
$
82.7

 
$
44.1

 
$
1,164.5

2014
1,040.6

 
101.1

 
43.0

 
1,184.7

2013
970.9

 
101.5

 
48.4

 
1,120.8

Property, plant and equipment, net:
 
 
 
 
 
 
 
September 30, 2015
$
142.9

 
$
2.7

 
$
3.3

 
$
148.9

September 30, 2014
138.5

 
4.3

 
3.5

 
146.3


Net sales in Canada declined in 2015 compared with 2014 due primarily to the sale of Mueller Co.’s municipal castings business in December 2014.
Approximately 41% of our 2015 gross sales were to our 10 largest customers, and approximately 25% of our 2015 gross sales were to our two largest customers, Ferguson Enterprises, Inc. (“Ferguson Enterprises”) and HD Supply, Inc. (“HD Supply”). Sales to Ferguson Enterprises comprised approximately 13%, 13% and 12% of our total gross sales during 2015, 2014 and 2013, respectively. In 2015, Ferguson Enterprises accounted for approximately 16%, 8% and 2% of gross sales for Mueller Co., Anvil and Mueller Technologies, respectively. Receivables from Ferguson Enterprises totaled $28.2 million and $25.7 million at September 30, 2015 and 2014, respectively. Sales to HD Supply comprised approximately 12%, 11% and 11% of our total gross sales during 2015, 2014, and 2013, respectively. In 2015, HD Supply accounted for approximately 18% and 5% of gross sales for Mueller Co. and Anvil, respectively. Receivables from HD Supply totaled $17.4 million and $17.7 million at September 30, 2015 and 2014, respectively.
Summarized financial information for our segments is presented below.
 
Mueller Co.
 
Anvil    
 
Mueller Technologies
 
Corporate  
 
Total    
 
(in millions)
Net sales, excluding intercompany:
 
 
 
 
 
 
 
 
 
2015
$
702.2

 
$
371.1

 
$
91.2

 
$

 
$
1,164.5

2014
679.1

 
401.4

 
104.2

 

 
1,184.7

2013
632.5

 
391.3

 
97.0

 

 
1,120.8

Intercompany sales:
 
 
 
 
 
 
 
 
 
2015
$
7.2

 
$
0.1

 
$

 
$

 
$
7.3

2014
6.7

 
0.1

 

 

 
6.8

2013
7.4

 
0.1

 

 

 
7.5

Operating income (loss):
 
 
 
 
 
 
 
 
 
2015
$
136.9

 
$
30.0

 
$
(12.9
)
 
$
(44.4
)
 
$
109.6

2014
126.7

 
41.3

 
(4.4
)
 
(39.5
)
 
124.1

2013
100.3

 
40.2

 
(9.0
)
 
(34.2
)
 
97.3

Depreciation and amortization:
 
 
 
 
 
 
 
 
 
2015
$
38.8

 
$
14.7

 
$
4.2

 
$
0.4

 
$
58.1

2014
38.0

 
14.2

 
4.1

 
0.4

 
56.7

2013
38.3

 
14.2

 
6.3

 
0.4

 
59.2

Loss on Walter receivable and restructuring:
 
 
 
 
 
 
 
 
 
2015
$
8.2

 
$
0.4

 
$
0.1

 
$
12.1

 
$
20.8

2014
2.1

 
0.9

 
0.1

 

 
3.1

2013
1.5

 
0.1

 

 
(0.1
)
 
1.5

Capital expenditures:
 
 
 
 
 
 
 
 
 
2015
$
20.5

 
$
10.3

 
$
6.5

 
$
0.2

 
$
37.5

2014
18.8

 
11.6

 
6.1

 
0.4

 
36.9

2013
16.6

 
12.3

 
7.4

 
0.2

 
36.5

Total assets:
 
 
 
 
 
 
 
 
 
September 30, 2015
$
757.7

 
$
255.3

 
$
77.2

 
$
139.6

 
$
1,229.8

September 30, 2014
767.9

 
263.9

 
67.9

 
212.8

 
1,312.5

Intangible assets, net:
 
 
 
 
 
 
 
 
 
September 30, 2015
$
435.5

 
$
54.5

 
$
17.3

 
$

 
$
507.3

September 30, 2014
459.7

 
57.9

 
16.0

 

 
533.6