Segment Information

6 Months Ended

Jun. 26, 2021

Segment Reporting [Abstract]

Segment Information

Segment InformationEach 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, Die-Mold, European Operations, Trading Group, and 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. Die-Mold manufactures PEX and other plumbing-related fittings and plastic injection tooling 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, Fabricated Tube Products, Westermeyer, Turbotec, Flex Duct, Linesets, Inc., and STI.  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.

Summarized segment information is as follows:

	For the Quarter Ended June 26, 2021
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	711,616	$	180,040	$	131,708	$	(10,772)	$	1,012,592
Cost of goods sold	558,278		155,399		96,303		(10,268)		799,712
Depreciation and amortization	5,515		1,694		2,753		1,172		11,134
Selling, general, and administrative expense	23,315		2,448		7,280		10,889		43,932
Operating income	124,508		20,499		25,372		(12,565)		157,814
Interest expense									(1,866)
Redemption premium									(5,674)
Other income, net									683
Income before income taxes									$	150,957

Segment information (continued):

	For the Quarter Ended June 27, 2020
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	334,040	$	88,619	$	86,107	$	(8,598)	$	500,168
Cost of goods sold	272,271		75,274		64,540		(8,926)		403,159
Depreciation and amortization	5,456		1,995		2,757		889		11,097
Selling, general, and administrative expense	15,239		2,477		6,457		9,443		33,616
Operating income	41,074		8,873		12,353		(10,004)		52,296
Interest expense									(4,973)
Other income, net									2,834
Income before income taxes									$	50,157

	For the Six Months Ended June 26, 2021
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	1,259,364	$	344,892	$	242,734	$	(16,250)	$	1,830,740
Cost of goods sold	1,008,632		296,290		180,385		(17,177)		1,468,130
Depreciation and amortization	11,725		3,437		5,382		2,345		22,889
Selling, general, and administrative expense	47,401		5,819		14,260		21,887		89,367
Operating income	191,606		39,346		42,707		(23,305)		250,354
Interest expense									(6,335)
Redemption premium									(5,674)
Other income, net									1,260
Income before income taxes									$	239,605

Segment information (continued):

	For the Six Months Ended June 27, 2020
( In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	719,053	$	219,821	$	179,379	$	(15,166)	$	1,103,087
Cost of goods sold	591,435		190,071		135,633		(5,265)		911,874
Depreciation and amortization	11,155		3,997		5,223		1,761		22,136
Selling, general, and administrative expense	35,678		5,698		13,156		21,836		76,368
Asset impairments	3,035		—		—		—		3,035
Litigation settlement, net	—		—		—		(21,933)		(21,933)
Operating income	77,750		20,055		25,367		(11,565)		111,607
Interest expense									(10,352)
Other income, net									3,112
Income before income taxes									$	104,367

The following table presents total assets attributable to each segment:

(In thousands)	June 26, 2021		December 26, 2020
Segment assets:
Piping Systems	$	1,222,336	$	977,937
Industrial Metals	173,227		152,683
Climate	272,318		258,668
General Corporate	121,556		139,280
	$	1,789,437	$	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 June 26, 2021
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	567,092	$	—	$	—	$	567,092
Brass rod and forgings	—		142,974		—		142,974
OEM components, tube & assemblies	8,456		12,710		43,449		64,615
Valves and plumbing specialties	136,068		—		—		136,068
Flex duct and other HVAC components	—		—		88,259		88,259
Other	—		24,356		—		24,356
	711,616		180,040		131,708		1,023,364
Intersegment sales							(10,772)
Net sales							$	1,012,592

	For the Quarter Ended June 27, 2020
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	256,016	$	—	$	—	$	256,016
Brass rod and forgings	—		64,490		—		64,490
OEM components, tube & assemblies	16,812		10,427		32,931		60,170
Valves and plumbing specialties	61,212		—		—		61,212
Flex duct and other HVAC components	—		—		53,176		53,176
Other	—		13,702		—		13,702
	334,040		88,619		86,107		508,766
Intersegment sales							(8,598)
Net sales							$	500,168

Disaggregation of revenue from contracts with customers (continued):

	For the Six Months Ended June 26, 2021
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	993,231	$	—	$	—	$	993,231
Brass rod and forgings	—		274,236		—		274,236
OEM components, tube & assemblies	17,011		23,743		81,516		122,270
Valves and plumbing specialties	249,122		—		—		249,122
Flex duct and other HVAC components	—		—		161,218		161,218
Other	—		46,913		—		46,913
	1,259,364		344,892		242,734		1,846,990
Intersegment sales							(16,250)
Net sales							$	1,830,740

	For the Six Months Ended June 27, 2020
(In thousands)	Piping Systems	Industrial Metals	Climate	Total
Tube and fittings	558,145	—	—	558,145
Brass rod and forgings	—	164,160	—	164,160
OEM components, tube & assemblies	42,107	21,309	69,504	132,920
Valves and plumbing specialties	118,801	—	—	118,801
Flex duct and other HVAC components	—	—	109,875	109,875
Other	—	34,352	—	34,352
	719,053	219,821	179,379	1,118,253
Intersegment sales				(15,166)
Net sales				$	1,103,087