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, Pexcor & Heatlink, European Operations, Trading Group, 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., sold in the U.S, and exported to markets worldwide. Outside the U.S., Great Lakes Copper manufactures copper tube and line sets and sells the products primarily in the U.S. and Canada, Pexcor & Heatlink produce a complete line of products for PEX plumbing and radiant systems in 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. 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). The Company disposed of Mueller-Xingrong (the Company’s Chinese joint venture) on June 21, 2017. This business manufactures engineered copper tube primarily for air-conditioning applications in China. 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, assemblies, high pressure components, and coaxial heat exchangers primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S. Summarized segment information is as follows: For the Quarter Ended July 1, 2017 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 422,844 $ 154,504 $ 36,636 $ 282 $ 614,266 Cost of goods sold 364,261 132,972 27,449 (371 ) 524,311 Depreciation and amortization 5,591 1,904 615 485 8,595 Selling, general, and administrative expense 18,410 2,864 2,456 10,827 34,557 Operating income 34,582 16,764 6,116 (10,659 ) 46,803 Interest expense (6,442 ) Other income, net 231 Income before income taxes $ 40,592 Segment information (continued): For the Quarter Ended July 2, 2016 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 388,662 $ 127,737 $ 31,359 $ (3,687 ) $ 544,071 Cost of goods sold 333,356 104,874 22,448 (4,618 ) 456,060 Depreciation and amortization 5,787 2,120 618 536 9,061 Selling, general, and administrative expense 16,560 3,619 2,456 11,879 34,514 Operating income 32,959 17,124 5,837 (11,484 ) 44,436 Interest expense (1,692 ) Other income, net 515 Income before income taxes $ 43,259 For the Six Months Ended July 1, 2017 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 821,619 $ 304,341 $ 70,915 $ (4,689 ) $ 1,192,186 Cost of goods sold 708,907 257,015 53,013 (6,197 ) 1,012,738 Depreciation and amortization 10,933 3,802 1,244 971 16,950 Selling, general, and administrative expense 36,831 6,094 4,932 22,231 70,088 Operating income 64,948 37,430 11,726 (21,694 ) 92,410 Interest expense (8,973 ) Other income, net 782 Income before income taxes $ 84,219 Segment information (continued): For the Six Months Ended July 2, 2016 ( In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 757,552 $ 262,258 $ 62,065 $ (4,995 ) $ 1,076,880 Cost of goods sold 647,148 214,103 46,153 (4,702 ) 902,702 Depreciation and amortization 11,436 4,255 1,217 1,073 17,981 Selling, general, and administrative expense 34,850 6,864 4,979 23,601 70,294 Operating income 64,118 37,036 9,716 (24,967 ) 85,903 Interest expense (3,540 ) Other income, net 760 Income before income taxes $ 83,123 |