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Segment Information | 12 Months Ended
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Dec. 25, 2021
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, European Operations, Trading Group, Jungwoo-Mueller (the Company’s South Korean joint venture), and Mueller Middle East (our Bahraini 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 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. Mueller Middle East manufactures copper tube and serves markets in the Middle East and Northern Africa. 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. As disclosed in “Note 2 – Acquisitions & Dispositions,” during September 2021 the Company exchanged the outstanding common stock of Die-Mold for an equity interest in a limited liability company in the retail distribution business, resulting in the deconsolidation of Die-Mold and the recognition of a $4.7 million gain. This gain is reported within Corporate and Eliminations. The results of Die-Mold, prior to deconsolidation, were included within the Piping Systems segment. During 2020, the segment recognized fixed asset impairment charges for certain manufacturing equipment of $3.8 million. During 2019, the segment recognized a gain of $1.2 million on the sale of real property. Industrial Metals Industrial Metals is composed of the following operating segments: Brass Rod, 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 2021, the segment recognized a gain of $6.5 million on the sale of the Copper Bar business. 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. Climate Climate is composed of the following operating segments: Refrigeration Products, Westermeyer, Turbotec, Flex Duct, and Linesets, Inc. These domestic businesses manufacture and fabricate valves, assemblies, high pressure components, coaxial heat exchangers, insulated HVAC flexible duct systems, line sets, brazed manifolds, headers, and distributor assemblies primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S. As disclosed in “Note 2 – Acquisitions & Dispositions,” during July 2021 the Company sold the assets of FTP and all of the outstanding stock of STI, resulting in a gain of $46.6 million. This gain is reported within Corporate and Eliminations. The results of FTP and STI, prior to the sale, were included within the Climate segment. During 2021 the segment recognized impairment charges on goodwill and long-lived assets of $2.8 million. 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 2021, 2020, and 2019, 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 25, 2021
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 2,055,639 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,055,639 |
Brass rod and forgings |  | — |  |  | 565,870 |  |  | — |  |  | 565,870 |
OEM components, tube & assemblies |  | 32,557 |  |  | 48,572 |  |  | 137,564 |  |  | 218,693 |
Valves and plumbing specialties |  | 511,834 |  |  | — |  |  | — |  |  | 511,834 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 357,850 |  |  | 357,850 |
Other |  | — |  |  | 88,921 |  |  | — |  |  | 88,921 |
|  | $ | 2,600,030 |  |  | $ | 703,363 |  |  | $ | 495,414 |  |  | $ | 3,798,807 |
Intersegment sales |  |  |  |  |  |  |  | (29,462) |
Net sales |  |  |  |  |  |  |  | $ | 3,769,345 |
|  | For the Year Ended December 26, 2020
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 1,232,724 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,232,724 |
Brass rod and forgings |  | — |  |  | 356,547 |  |  | — |  |  | 356,547 |
OEM components, tube & assemblies |  | 56,176 |  |  | 42,127 |  |  | 138,551 |  |  | 236,854 |
Valves and plumbing specialties |  | 294,102 |  |  | — |  |  | — |  |  | 294,102 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 231,580 |  |  | 231,580 |
Other |  | — |  |  | 73,485 |  |  | — |  |  | 73,485 |
|  | $ | 1,583,002 |  |  | $ | 472,159 |  |  | $ | 370,131 |  |  | $ | 2,425,292 |
Intersegment sales |  |  |  |  |  |  |  | (27,249) |
Net sales |  |  |  |  |  |  |  | $ | 2,398,043 |
Disaggregation of revenue from contracts with customers (continued):
|  | 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 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 222,565 |  |  | 222,565 |
Other |  | — |  |  | 80,695 |  |  | — |  |  | 80,695 |
|  | $ | 1,542,456 |  |  | $ | 554,372 |  |  | $ | 356,216 |  |  | $ | 2,453,044 |
Intersegment sales |  |  |  |  |  |  |  | (22,428) |
Net sales |  |  |  |  |  |  |  | $ | 2,430,616 |
Summarized segment information is as follows:
|  | For the Year Ended December 25, 2021 |
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total |
Net sales |  | $ | 2,600,030 |  |  | $ | 703,363 |  |  | $ | 495,414 |  |  | $ | (29,462) |  |  | $ | 3,769,345 |  |
Cost of goods sold |  | 1,996,610 |  |  | 605,715 |  |  | 367,343 |  |  | (30,679) |  |  | 2,938,989 |  |
Depreciation and amortization |  | 23,384 |  |  | 6,929 |  |  | 10,379 |  |  | 4,698 |  |  | 45,390 |  |
Selling, general, and administrative expense |  | 93,749 |  |  | 11,698 |  |  | 29,327 |  |  | 49,278 |  |  | 184,052 |  |
Gain on sale of businesses |  | — |  |  | (6,454) |  |  | — |  |  | (51,306) |  |  | (57,760) |  |
Impairment charges |  | — |  |  | — |  |  | 2,829 |  |  | — |  |  | 2,829 |  |
Operating income |  | 486,287 |  |  | 85,475 |  |  | 85,536 |  |  | (1,453) |  |  | 655,845 |  |
Interest expense |  |  |  |  |  |  |  |  |  | (7,709) |  |
Redemption premium |  |  |  |  |  |  |  |  |  | (5,674) |  |
Environmental expense |  |  |  |  |  |  |  |  |  | (5,053) |  |
Other income, net |  |  |  |  |  |  |  |  |  | 3,730 |  |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 641,139 |  |
Segment information (continued):
|  | For the Year Ended December 26, 2020 |
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total |
Net sales |  | $ | 1,583,002 |  |  | $ | 472,159 |  |  | $ | 370,131 |  |  | $ | (27,249) |  |  | $ | 2,398,043 |  |
Cost of goods sold |  | 1,311,697 |  |  | 398,000 |  |  | 276,274 |  |  | (19,810) |  |  | 1,966,161 |  |
Depreciation and amortization |  | 23,071 |  |  | 7,528 |  |  | 10,249 |  |  | 3,995 |  |  | 44,843 |  |
Selling, general, and administrative expense |  | 78,744 |  |  | 12,566 |  |  | 26,806 |  |  | 41,367 |  |  | 159,483 |  |
Litigation settlement, net |  | — |  |  | — |  |  | — |  |  | (22,053) |  |  | (22,053) |  |
Impairment charges |  | 3,771 |  |  | — |  |  | — |  |  | — |  |  | 3,771 |  |
Operating income |  | 165,719 |  |  | 54,065 |  |  | 56,802 |  |  | (30,748) |  |  | 245,838 |  |
Interest expense |  |  |  |  |  |  |  |  |  | (19,247) |  |
Pension plan termination expense |  |  |  |  |  |  |  |  |  | (17,835) |  |
Environmental expense |  |  |  |  |  |  |  |  |  | (4,454) |  |
Other income, net |  |  |  |  |  |  |  |  |  | 4,887 |  |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 209,189 |  |
|  | 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 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 |
Summarized geographic information is as follows:
(In thousands) |  | 2021 |  | 2020 |  | 2019
Net sales: |  |  |  |  |  |
United States |  | $ | 2,791,571 |  |  | $ | 1,765,810 |  |  | $ | 1,775,321 |
United Kingdom |  | 330,908 |  |  | 207,754 |  |  | 230,791 |
Canada |  | 469,652 |  |  | 293,776 |  |  | 285,720 |
Asia |  | 83,217 |  |  | 58,256 |  |  | 64,363 |
Mexico |  | 93,997 |  |  | 72,447 |  |  | 74,421 |
|  | $ | 3,769,345 |  |  | $ | 2,398,043 |  |  | $ | 2,430,616 |
Long-lived assets: |  | 2021 |  | 2020 |  | 2019
United States |  | $ | 272,903 |  |  | $ | 289,508 |  |  | $ | 286,727 |
United Kingdom |  | 36,529 |  |  | 30,872 |  |  | 18,776 |
Canada |  | 26,422 |  |  | 29,582 |  |  | 31,429 |
Asia |  | 48,742 |  |  | 26,107 |  |  | 25,637 |
Mexico |  | 966 |  |  | 503 |  |  | 559 |
|  | $ | 385,562 |  |  | $ | 376,572 |  |  | $ | 363,128 |
(In thousands) |  | 2021 |  | 2020 |  | 2019
Expenditures for long-lived assets (including those resulting from business acquisitions): |  |  |  |  |  |
Piping Systems |  | $ | 43,429 |  |  | $ | 39,209 |  |  | $ | 15,505 |
Industrial Metals |  | 5,744 |  |  | 5,968 |  |  | 9,101 |
Climate |  | 12,428 |  |  | 5,521 |  |  | 3,845 |
General Corporate |  | 3,521 |  |  | 448 |  |  | 2,711 |
|  | $ | 65,122 |  |  | $ | 51,146 |  |  | $ | 31,162 |
Segment assets: |  |  |  |  |  |
Piping Systems |  | $ | 1,160,272 |  |  | $ | 977,937 |  |  | $ | 796,262 |
Industrial Metals |  | 173,290 |  |  | 152,683 |  |  | 161,904 |
Climate |  | 250,107 |  |  | 258,668 |  |  | 249,853 |
General Corporate |  | 145,267 |  |  | 139,280 |  |  | 162,921 |
|  | $ | 1,728,936 |  |  | $ | 1,528,568 |  |  | $ | 1,370,940 |

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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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