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Segment Information | 12 Months Ended
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Dec. 30, 2023
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, 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. 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 OEMs. Beginning in fiscal year 2022, the results of Precision Tube are included in the Industrial Metals segment prospectively as the impact to prior periods was not material. The business was previously reported in the Piping Systems segment. This change was made to reflect the Company’s internal management reporting structure. As disclosed in “Note 2 – Acquisitions & Dispositions,” during 2023 the Company exchanged the outstanding common stock of Heatlink Group for an additional equity interest in a limited liability company in the retail distribution business, resulting in the deconsolidation of Heatlink Group and the recognition of a $4.1 million gain. This gain is reported within Corporate and Eliminations. The results of Heatlink Group, prior to deconsolidation, were included within the Piping Systems segment. During 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. 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. During 2021, the segment recognized a gain of $6.5 million on the sale of the Copper Bar business. 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. During 2023 the Company settled the insurance claim related to the August 2022 fire in its Bluffs, Illinois manufacturing operation, resulting in a gain of $19.5 million recognized in the segment. As disclosed in “Note 2 – Acquisitions & Dispositions,” during 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 2023, 2022, and 2021, 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 30, 2023
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 1,926,975 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,926,975 |
Brass rod and forgings |  | — |  |  | 454,246 |  |  | — |  |  | 454,246 |
OEM components and valves |  | — |  |  | 79,879 |  |  | 120,923 |  |  | 200,802 |
Valves and plumbing specialties |  | 455,598 |  |  | — |  |  | — |  |  | 455,598 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 379,867 |  |  | 379,867 |
Other |  | — |  |  | 43,750 |  |  | — |  |  | 43,750 |
|  | $ | 2,382,573 |  |  | $ | 577,875 |  |  | $ | 500,790 |  |  | $ | 3,461,238 |
Intersegment sales |  |  |  |  |  |  |  | (40,893) |
Net sales |  |  |  |  |  |  |  | $ | 3,420,345 |
Disaggregation of revenue from contracts with customers (continued):
|  | For the Year Ended December 31, 2022
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Total
Tube and fittings |  | $ | 2,211,963 |  |  | $ | — |  |  | $ | — |  |  | $ | 2,211,963 |
Brass rod and forgings |  | — |  |  | 510,865 |  |  | — |  |  | 510,865 |
OEM components, tube & assemblies |  | — |  |  | 74,647 |  |  | 121,004 |  |  | 195,651 |
Valves and plumbing specialties |  | 518,121 |  |  | — |  |  | — |  |  | 518,121 |
Flex duct and other HVAC components |  | — |  |  | — |  |  | 529,303 |  |  | 529,303 |
Other |  | — |  |  | 59,177 |  |  | — |  |  | 59,177 |
|  | $ | 2,730,084 |  |  | $ | 644,689 |  |  | $ | 650,307 |  |  | $ | 4,025,080 |
Intersegment sales |  |  |  |  |  |  |  | (42,625) |
Net sales |  |  |  |  |  |  |  | $ | 3,982,455 |
|  | 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 |
Summarized segment information is as follows:
|  | For the Year Ended December 30, 2023
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 2,382,573 |  |  | $ | 577,875 |  |  | $ | 500,790 |  |  | $ | (40,893) |  |  | $ | 3,420,345 |
Cost of goods sold |  | 1,686,792 |  |  | 480,510 |  |  | 311,875 |  |  | (45,666) |  |  | 2,433,511 |
Depreciation and amortization |  | 20,461 |  |  | 7,273 |  |  | 7,567 |  |  | 4,653 |  |  | 39,954 |
Selling, general, and administrative expense |  | 99,823 |  |  | 13,713 |  |  | 28,950 |  |  | 65,686 |  |  | 208,172 |
Gain on sale of businesses |  | — |  |  | — |  |  | — |  |  | (4,137) |  |  | (4,137) |
Impairment charges |  | 6,258 |  |  | — |  |  | — |  |  | — |  |  | 6,258 |
Gain on insurance settlement |  | — |  |  | — |  |  | (19,466) |  |  | — |  |  | (19,466) |
Operating income |  | 569,239 |  |  | 76,379 |  |  | 171,864 |  |  | (61,429) |  |  | 756,053 |
Interest expense |  |  |  |  |  |  |  |  |  | (1,221) |
Interest income |  |  |  |  |  |  |  |  |  | 38,208 |
Realized and unrealized gains on short-term investments |  |  |  |  |  |  |  | 41,865 |
Gain on extinguishment of NMTC liability |  |  |  |  |  |  |  |  |  | 7,534 |
Environmental expense |  |  |  |  |  |  |  |  |  | (825) |
Other income, net |  |  |  |  |  |  |  |  |  | 3,618 |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 845,232 |
|  | For the Year Ended December 31, 2022
(In thousands) |  | Piping Systems |  | Industrial Metals |  | Climate |  | Corporate and Eliminations |  | Total
Net sales |  | $ | 2,730,084 |  |  | $ | 644,689 |  |  | $ | 650,307 |  |  | $ | (42,625) |  |  | $ | 3,982,455 |
Cost of goods sold |  | 1,943,174 |  |  | 543,004 |  |  | 416,953 |  |  | (38,269) |  |  | 2,864,862 |
Depreciation and amortization |  | 22,193 |  |  | 7,647 |  |  | 9,174 |  |  | 4,717 |  |  | 43,731 |
Selling, general, and administrative expense |  | 93,655 |  |  | 11,574 |  |  | 36,113 |  |  | 61,744 |  |  | 203,086 |
Gain on sale of assets |  | — |  |  | — |  |  | — |  |  | (6,373) |  |  | (6,373) |
Operating income |  | 671,062 |  |  | 82,464 |  |  | 188,067 |  |  | (64,444) |  |  | 877,149 |
Interest expense |  |  |  |  |  |  |  |  |  | (810) |
Interest income |  |  |  |  |  |  |  |  |  | 6,457 |
Pension plan termination expense |  |  |  |  |  |  |  |  |  | (13,100) |
Realized and unrealized gains on short-term investments |  |  |  |  |  |  |  | 2,918 |
Environmental expense |  |  |  |  |  |  |  |  |  | (1,298) |
Other income, net |  |  |  |  |  |  |  |  |  | 4,715 |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 876,031 |
Segment information (continued):
|  | 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) |
Interest income |  |  |  |  |  |  |  |  |  | 353 |
Redemption premium |  |  |  |  |  |  |  |  |  | (5,674) |
Environmental expense |  |  |  |  |  |  |  |  |  | (5,053) |
Other income, net |  |  |  |  |  |  |  |  |  | 3,377 |
Income before income taxes |  |  |  |  |  |  |  |  |  | $ | 641,139 |
Summarized geographic information is as follows:
(In thousands) |  | 2023 |  | 2022 |  | 2021
Net sales: |  |  |  |  |  |
United States |  | $ | 2,572,141 |  |  | $ | 2,965,053 |  |  | $ | 2,791,571 |
United Kingdom |  | 270,128 |  |  | 297,582 |  |  | 330,908 |
Canada |  | 339,682 |  |  | 410,679 |  |  | 469,652 |
Asia and the Middle East |  | 153,816 |  |  | 217,750 |  |  | 83,217 |
Mexico |  | 84,578 |  |  | 91,391 |  |  | 93,997 |
|  | $ | 3,420,345 |  |  | $ | 3,982,455 |  |  | $ | 3,769,345 |
Long-lived assets: |  | 2023 |  | 2022 |  | 2021
United States |  | $ | 273,604 |  |  | $ | 266,571 |  |  | $ | 272,903 |
United Kingdom |  | 40,045 |  |  | 36,474 |  |  | 36,529 |
Canada |  | 18,152 |  |  | 23,354 |  |  | 26,422 |
Asia and the Middle East |  | 50,725 |  |  | 51,193 |  |  | 48,742 |
Mexico |  | 2,639 |  |  | 2,358 |  |  | 966 |
|  | $ | 385,165 |  |  | $ | 379,950 |  |  | $ | 385,562 |
(In thousands) |  | 2023 |  | 2022 |  | 2021
Expenditures for long-lived assets (including those resulting from business acquisitions): |  |  |  |  |  |
Piping Systems |  | $ | 19,118 |  |  | $ | 20,694 |  |  | $ | 43,429 |
Industrial Metals |  | 9,406 |  |  | 6,905 |  |  | 5,744 |
Climate |  | 15,407 |  |  | 2,611 |  |  | 12,428 |
General Corporate |  | 10,094 |  |  | 7,429 |  |  | 3,521 |
|  | $ | 54,025 |  |  | $ | 37,639 |  |  | $ | 65,122 |
(In thousands) |  | 2023 |  | 2022 |  | 2021
Segment assets: |  |  |  |  |  |
Piping Systems |  | $ | 1,029,821 |  |  | $ | 1,088,940 |  |  | $ | 1,160,272 |
Industrial Metals |  | 157,761 |  |  | 160,702 |  |  | 173,290 |
Climate |  | 252,561 |  |  | 279,940 |  |  | 250,107 |
General Corporate |  | 1,319,158 |  |  | 712,817 |  |  | 145,267 |
|  | $ | 2,759,301 |  |  | $ | 2,242,399 |  |  | $ | 1,728,936 |

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