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Segment Information | 9 Months Ended
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Sep. 30, 2023
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, European Operations, Trading Group, Jungwoo-Mueller (the Company’s South Korean joint venture), and Mueller Middle East (the Company’s 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. 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. 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 original equipment manufacturers (OEMs). Industrial Metals Industrial Metals is composed of the following operating segments: Brass Rod, Impacts & Micro Gauge, Brass Value-Added Products, and Precision Tube. These businesses manufacture brass rod, impact extrusions, and forgings, specialty copper, copper alloy, and aluminum tube, 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. The segment manufactures and sells refrigeration valves and fittings, 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 30, 2023
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 568,151 |  |  | $ | 141,012 |  |  | $ | 119,949 |  |  | $ | (9,320) |  |  | $ | 819,792 |
Cost of goods sold |  | 394,736 |  |  | 119,108 |  |  | 76,133 |  |  | (10,919) |  |  | 579,058 |
Depreciation and amortization |  | 5,025 |  |  | 1,835 |  |  | 1,618 |  |  | 1,153 |  |  | 9,631 |
Selling, general, and administrative expense |  | 21,847 |  |  | 3,848 |  |  | 7,352 |  |  | 15,248 |  |  | 48,295 |
Gain on sale of business |  | — |  |  | — |  |  | — |  |  | (4,137) |  |  | (4,137) |
Asset impairments |  | 5,934 |  |  | — |  |  | — |  |  | — |  |  | 5,934 |
Operating income |  | 140,609 |  |  | 16,221 |  |  | 34,846 |  |  | (10,665) |  |  | 181,011 |
Interest expense |  |  |  |  |  |  |  |  |  | (230) |
Interest income |  |  |  |  |  |  |  |  |  | 10,599 |
Unrealized loss on short-term investments |  |  |  |  |  |  |  |  |  | (2,371) |
Other expense, net |  |  |  |  |  |  |  |  |  | (44) |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 188,965 |
|  | For the Quarter Ended September 24, 2022
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 634,808 |  |  | $ | 144,880 |  |  | $ | 174,650 |  |  | $ | (9,508) |  |  | $ | 944,830 |
Cost of goods sold |  | 440,216 |  |  | 128,152 |  |  | 114,850 |  |  | (4,581) |  |  | 678,637 |
Depreciation and amortization |  | 5,516 |  |  | 1,846 |  |  | 2,289 |  |  | 1,199 |  |  | 10,850 |
Selling, general, and administrative expense |  | 21,137 |  |  | 2,805 |  |  | 10,049 |  |  | 16,187 |  |  | 50,178 |
Operating income |  | 167,939 |  |  | 12,077 |  |  | 47,462 |  |  | (22,313) |  |  | 205,165 |
Interest expense |  |  |  |  |  |  |  |  |  | (361) |
Interest income |  |  |  |  |  |  |  |  |  | 1,356 |
Other expense, net |  |  |  |  |  |  |  |  |  | (326) |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 205,834 |
Segment information (continued):
|  | For the Nine Months Ended September 30, 2023
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 1,868,635 |  |  | $ | 452,512 |  |  | $ | 396,857 |  |  | $ | (30,036) |  |  | $ | 2,687,968 |
Cost of goods sold |  | 1,315,212 |  |  | 375,375 |  |  | 242,009 |  |  | (35,468) |  |  | 1,897,128 |
Depreciation and amortization |  | 15,835 |  |  | 5,411 |  |  | 5,973 |  |  | 3,485 |  |  | 30,704 |
Selling, general, and administrative expense |  | 76,049 |  |  | 10,319 |  |  | 22,440 |  |  | 48,180 |  |  | 156,988 |
Gain on sale of business |  | — |  |  | — |  |  | — |  |  | (4,137) |  |  | (4,137) |
Asset impairments |  | 5,934 |  |  | — |  |  | — |  |  | — |  |  | 5,934 |
Gain on insurance settlement |  | — |  |  | — |  |  | (19,466) |  |  | — |  |  | (19,466) |
Operating income |  | 455,605 |  |  | 61,407 |  |  | 145,901 |  |  | (42,096) |  |  | 620,817 |
Interest expense |  |  |  |  |  |  |  |  |  | (508) |
Interest income |  |  |  |  |  |  |  |  |  | 24,566 |
Unrealized gain on short-term investments |  |  |  |  |  |  |  |  |  | 18,449 |
Other income, net |  |  |  |  |  |  |  |  |  | 4,033 |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 667,357 |
|  | For the Nine Months Ended September 24, 2022
( In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 2,163,045 |  |  | $ | 498,367 |  |  | $ | 479,756 |  |  | $ | (36,294) |  |  | $ | 3,104,874 |
Cost of goods sold |  | 1,539,493 |  |  | 424,802 |  |  | 311,917 |  |  | (32,150) |  |  | 2,244,062 |
Depreciation and amortization |  | 16,846 |  |  | 5,636 |  |  | 6,989 |  |  | 3,522 |  |  | 32,993 |
Selling, general, and administrative expense |  | 66,700 |  |  | 8,425 |  |  | 25,941 |  |  | 45,524 |  |  | 146,590 |
Gain on sale of assets |  | — |  |  | — |  |  | — |  |  | (5,507) |  |  | (5,507) |
Operating income |  | 540,006 |  |  | 59,504 |  |  | 134,909 |  |  | (47,683) |  |  | 686,736 |
Interest expense |  |  |  |  |  |  |  |  |  | (666) |
Interest income |  |  |  |  |  |  |  |  |  | 1,619 |
Other income, net |  |  |  |  |  |  |  |  |  | 2,394 |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 690,083 |
The following table presents total assets attributable to each segment:
(In thousands) |  | September 30, 2023 |  | December 31, 2022
Segment assets: |  |  |  |
Piping Systems |  | $ | 1,083,888 |  |  | $ | 1,088,940 |
Industrial Metals |  | 168,608 |  |  | 160,702 |
Climate |  | 257,832 |  |  | 279,940 |
General Corporate |  | 1,153,413 |  |  | 712,817 |
|  | $ | 2,663,741 |  |  | $ | 2,242,399 |
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 30, 2023
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 457,164 |  |  | $ | — |  |  | $ | — |  |  | $ | 457,164 |
Brass rod and forgings |  | — |  |  | 112,164 |  |  | — |  |  | 112,164 |
OEM components, tube & assemblies |  | — |  |  | 18,823 |  |  | 29,293 |  |  | 48,116 |
Valves and plumbing specialties |  | 110,987 |  |  | — |  |  | — |  |  | 110,987 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 90,656 |  |  | 90,656 |
Other |  | — |  |  | 10,025 |  |  | — |  |  | 10,025 |
|  | 568,151 |  |  | 141,012 |  |  | 119,949 |  |  | 829,112 |
Intersegment sales |  |  |  |  |  |  |  | (9,320) |
Net sales |  |  |  |  |  |  |  | $ | 819,792 |
|  | For the Quarter Ended September 24, 2022
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 520,842 |  |  | $ | — |  |  | $ | — |  |  | $ | 520,842 |
Brass rod and forgings |  | — |  |  | 114,956 |  |  | — |  |  | 114,956 |
OEM components, tube & assemblies |  | — |  |  | 16,819 |  |  | 30,180 |  |  | 46,999 |
Valves and plumbing specialties |  | 113,966 |  |  | — |  |  | — |  |  | 113,966 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 144,470 |  |  | 144,470 |
Other |  | — |  |  | 13,105 |  |  | — |  |  | 13,105 |
|  | 634,808 |  |  | 144,880 |  |  | 174,650 |  |  | 954,338 |
Intersegment sales |  |  |  |  |  |  |  | (9,508) |
Net sales |  |  |  |  |  |  |  | $ | 944,830 |
Disaggregation of revenue from contracts with customers (continued):
|  | For the Nine Months Ended September 30, 2023
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 1,520,104 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,520,104 |
Brass rod and forgings |  | — |  |  | 356,067 |  |  | — |  |  | 356,067 |
OEM components, tube & assemblies |  | — |  |  | 62,405 |  |  | 95,702 |  |  | 158,107 |
Valves and plumbing specialties |  | 348,531 |  |  | — |  |  | — |  |  | 348,531 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 301,155 |  |  | 301,155 |
Other |  | — |  |  | 34,040 |  |  | — |  |  | 34,040 |
|  | 1,868,635 |  |  | 452,512 |  |  | 396,857 |  |  | 2,718,004 |
Intersegment sales |  |  |  |  |  |  |  | (30,036) |
Net sales |  |  |  |  |  |  |  | $ | 2,687,968 |
|  | For the Nine Months Ended September 24, 2022
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  |  |  | Total
Tube and fittings |  | 1,766,931 |  |  | — |  |  | — |  |  |  |  | 1,766,931 |
Brass rod and forgings |  | — |  |  | 394,277 |  |  | — |  |  |  |  | 394,277 |
OEM components, tube & assemblies |  | — |  |  | 57,169 |  |  | 91,798 |  |  |  |  | 148,967 |
Valves and plumbing specialties |  | 396,114 |  |  | — |  |  | — |  |  |  |  | 396,114 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 387,958 |  |  |  |  | 387,958 |
Other |  | — |  |  | 46,921 |  |  | — |  |  |  |  | 46,921 |
|  | 2,163,045 |  |  | 498,367 |  |  | 479,756 |  |  |  |  | 3,141,168 |
Intersegment sales |  |  |  |  |  |  |  |  |  | (36,294) |
Net sales |  |  |  |  |  |  |  |  |  | $ | 3,104,874 |

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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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
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