Segment Information

3 Months Ended

Mar. 26, 2022

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, 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. 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.  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).

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.

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. These domestic businesses manufacture 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 March 26, 2022
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	703,430	$	174,312	$	140,622	$	(8,362)	$	1,010,002
Cost of goods sold	514,187		145,710		93,957		(9,343)		744,511
Depreciation and amortization	5,400		1,944		2,352		1,145		10,841
Selling, general, and administrative expense	23,355		3,399		7,613		13,089		47,456
Gain on sale of assets	—		—		—		(5,507)		(5,507)
Operating income	160,488		23,259		36,700		(7,746)		212,701
Interest expense									(158)
Other income, net									780
Income before income taxes									$	213,323

	For the Quarter Ended March 27, 2021
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	547,748	$	164,852	$	111,026	$	(5,478)	$	818,148
Cost of goods sold	450,354		140,891		84,082		(6,909)		668,418
Depreciation and amortization	6,210		1,743		2,629		1,173		11,755
Selling, general, and administrative expense	24,086		3,371		6,980		10,998		45,435
Operating income	67,098		18,847		17,335		(10,740)		92,540
Interest expense									(4,469)
Other income, net									577
Income before income taxes									$	88,648

The following table presents total assets attributable to each segment:

(In thousands)	March 26, 2022		December 25, 2021
Segment assets:
Piping Systems	$	1,275,856	$	1,160,272
Industrial Metals	199,157		173,290
Climate	272,308		250,107
General Corporate	198,629		145,267
	$	1,945,950	$	1,728,936

The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category:

	For the Quarter Ended March 26, 2022
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	571,510	$	—	$	—	$	571,510
Brass rod and forgings	—		136,533		—		136,533
OEM components, tube & assemblies	—		20,096		29,092		49,188
Valves and plumbing specialties	131,920		—		—		131,920
Flex duct and other HVAC components	—		—		111,530		111,530
Other	—		17,683		—		17,683
	703,430		174,312		140,622		1,018,364
Intersegment sales							(8,362)
Net sales							$	1,010,002

	For the Quarter Ended March 27, 2021
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	426,139	$	—	$	—	$	426,139
Brass rod and forgings	—		131,262		—		131,262
OEM components, tube & assemblies	8,555		11,033		38,067		57,655
Valves and plumbing specialties	113,054		—		—		113,054
Flex duct and other HVAC components	—		—		72,959		72,959
Other	—		22,557		—		22,557
	547,748		164,852		111,026		823,626
Intersegment sales							(5,478)
Net sales							$	818,148