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Segment Information | 9 Months Ended
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Sep. 25, 2021
Segment Reporting [Abstract] |
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, Heatlink Group, European Operations, Trading Group, an d Jungwoo-Mueller (the Company’s South Korean joint venture). The Domestic Piping Systems Group manufactures and distributes 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. European Operations manufactures 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 original equipment manufacturers (OEMs). 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. Climate Climate is composed of the following operating segments: Refrigeration Products, Westermeyer, Turbotec, Flex Duct, and Linesets, Inc. These domestic businesses manufacture 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. Summarized segment information is as follows:
|  | For the Quarter Ended September 25, 2021
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 688,200 |  |  | $ | 182,245 |  |  | $ | 122,252 |  |  | $ | (10,449) |  |  | $ | 982,248 |
Cost of goods sold |  | 506,703 |  |  | 158,822 |  |  | 89,175 |  |  | (10,435) |  |  | 744,265 |
Depreciation and amortization |  | 5,547 |  |  | 1,661 |  |  | 2,484 |  |  | 1,176 |  |  | 10,868 |
Selling, general, and administrative expense |  | 23,751 |  |  | 2,710 |  |  | 9,521 |  |  | 12,542 |  |  | 48,524 |
Gain on sale of businesses |  | — |  |  | — |  |  | — |  |  | (54,759) |  |  | (54,759) |
Operating income |  | 152,199 |  |  | 19,052 |  |  | 21,072 |  |  | 41,027 |  |  | 233,350 |
Interest expense |  |  |  |  |  |  |  |  |  | (1,116) |
Other (expense) income, net |  |  |  |  |  |  |  |  |  | (2,548) |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 229,686 |
|  | For the Quarter Ended September 26, 2020
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 409,414 |  |  | $ | 118,831 |  |  | $ | 97,604 |  |  | $ | (6,744) |  |  | $ | 619,105 |
Cost of goods sold |  | 339,904 |  |  | 95,717 |  |  | 70,450 |  |  | (5,291) |  |  | 500,780 |
Depreciation and amortization |  | 5,362 |  |  | 1,774 |  |  | 2,547 |  |  | 1,069 |  |  | 10,752 |
Selling, general, and administrative expense |  | 19,285 |  |  | 2,992 |  |  | 6,451 |  |  | 9,618 |  |  | 38,346 |
Operating income |  | 44,863 |  |  | 18,348 |  |  | 18,156 |  |  | (12,140) |  |  | 69,227 |
Interest expense |  |  |  |  |  |  |  |  |  | (4,885) |
Other income, net |  |  |  |  |  |  |  |  |  | 522 |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 64,864 |
Segment information (continued):
|  | For the Nine Months Ended September 25, 2021
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 1,947,564 |  |  | $ | 527,137 |  |  | $ | 364,986 |  |  | $ | (26,699) |  |  | $ | 2,812,988 |
Cost of goods sold |  | 1,515,335 |  |  | 455,112 |  |  | 269,560 |  |  | (27,612) |  |  | 2,212,395 |
Depreciation and amortization |  | 17,272 |  |  | 5,098 |  |  | 7,866 |  |  | 3,521 |  |  | 33,757 |
Selling, general, and administrative expense |  | 71,152 |  |  | 8,529 |  |  | 23,781 |  |  | 34,429 |  |  | 137,891 |
Gain on sale of businesses |  | — |  |  | — |  |  | — |  |  | (54,759) |  |  | (54,759) |
Operating income |  | 343,805 |  |  | 58,398 |  |  | 63,779 |  |  | 17,722 |  |  | 483,704 |
Interest expense |  |  |  |  |  |  |  |  |  | (7,451) |
Redemption premium |  |  |  |  |  |  |  |  |  | (5,674) |
Other income, net |  |  |  |  |  |  |  |  |  | (1,288) |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 469,291 |
|  | For the Nine Months Ended September 26, 2020
( In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 1,128,467 |  |  | $ | 338,652 |  |  | $ | 276,983 |  |  | $ | (21,910) |  |  | $ | 1,722,192 |
Cost of goods sold |  | 931,339 |  |  | 285,788 |  |  | 206,083 |  |  | (10,556) |  |  | 1,412,654 |
Depreciation and amortization |  | 16,517 |  |  | 5,771 |  |  | 7,770 |  |  | 2,830 |  |  | 32,888 |
Selling, general, and administrative expense |  | 57,998 |  |  | 8,690 |  |  | 19,607 |  |  | 31,454 |  |  | 117,749 |
Litigation settlement, net |  | — |  |  | — |  |  | — |  |  | (21,933) |  |  | (21,933) |
Operating income |  | 122,613 |  |  | 38,403 |  |  | 43,523 |  |  | (23,705) |  |  | 180,834 |
Interest expense |  |  |  |  |  |  |  |  |  | (15,237) |
Other income, net |  |  |  |  |  |  |  |  |  | 3,634 |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 169,231 |
The following table presents total assets attributable to each segment:
(In thousands) |  | September 25, 2021 |  | December 26, 2020
Segment assets: |  |  |  |
Piping Systems |  | $ | 1,142,523 |  |  | $ | 977,937 |
Industrial Metals |  | 186,040 |  |  | 152,683 |
Climate |  | 244,603 |  |  | 258,668 |
General Corporate |  | 155,371 |  |  | 139,280 |
|  | $ | 1,728,537 |  |  | $ | 1,528,568 |
The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category:
|  | For the Quarter Ended September 25, 2021
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 555,161 |  |  | $ | — |  |  | $ | — |  |  | $ | 555,161 |
Brass rod and forgings |  | — |  |  | 143,788 |  |  | — |  |  | 143,788 |
OEM components, tube & assemblies |  | 6,943 |  |  | 12,076 |  |  | 29,627 |  |  | 48,646 |
Valves and plumbing specialties |  | 126,096 |  |  | — |  |  | — |  |  | 126,096 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 92,625 |  |  | 92,625 |
Other |  | — |  |  | 26,381 |  |  | — |  |  | 26,381 |
|  | 688,200 |  |  | 182,245 |  |  | 122,252 |  |  | 992,697 |
Intersegment sales |  |  |  |  |  |  |  | (10,449) |
Net sales |  |  |  |  |  |  |  | $ | 982,248 |
|  | For the Quarter Ended September 26, 2020
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 320,619 |  |  | $ | — |  |  | $ | — |  |  | $ | 320,619 |
Brass rod and forgings |  | — |  |  | 89,487 |  |  | — |  |  | 89,487 |
OEM components, tube & assemblies |  | 7,402 |  |  | 11,215 |  |  | 35,957 |  |  | 54,574 |
Valves and plumbing specialties |  | 81,393 |  |  | — |  |  | — |  |  | 81,393 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 61,647 |  |  | 61,647 |
Other |  | — |  |  | 18,129 |  |  | — |  |  | 18,129 |
|  | 409,414 |  |  | 118,831 |  |  | 97,604 |  |  | 625,849 |
Intersegment sales |  |  |  |  |  |  |  | (6,744) |
Net sales |  |  |  |  |  |  |  | $ | 619,105 |
Disaggregation of revenue from contracts with customers (continued):
|  | For the Nine Months Ended September 25, 2021
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 1,548,392 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,548,392 |
Brass rod and forgings |  | — |  |  | 418,024 |  |  | — |  |  | 418,024 |
OEM components, tube & assemblies |  | 23,954 |  |  | 35,819 |  |  | 111,143 |  |  | 170,916 |
Valves and plumbing specialties |  | 375,218 |  |  | — |  |  | — |  |  | 375,218 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 253,843 |  |  | 253,843 |
Other |  | — |  |  | 73,294 |  |  | — |  |  | 73,294 |
|  | 1,947,564 |  |  | 527,137 |  |  | 364,986 |  |  | 2,839,687 |
Intersegment sales |  |  |  |  |  |  |  | (26,699) |
Net sales |  |  |  |  |  |  |  | $ | 2,812,988 |
|  | For the Nine Months Ended September 26, 2020
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  |  |  | Total
Tube and fittings |  | 878,764 |  |  | — |  |  | — |  |  |  |  | 878,764 |
Brass rod and forgings |  | — |  |  | 253,647 |  |  | — |  |  |  |  | 253,647 |
OEM components, tube & assemblies |  | 49,509 |  |  | 32,524 |  |  | 105,461 |  |  |  |  | 187,494 |
Valves and plumbing specialties |  | 200,194 |  |  | — |  |  | — |  |  |  |  | 200,194 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 171,522 |  |  |  |  | 171,522 |
Other |  | — |  |  | 52,481 |  |  | — |  |  |  |  | 52,481 |
|  | 1,128,467 |  |  | 338,652 |  |  | 276,983 |  |  |  |  | 1,744,102 |
Intersegment sales |  |  |  |  |  |  |  |  |  | (21,910) |
Net sales |  |  |  |  |  |  |  |  |  | $ | 1,722,192 |

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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/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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