Segment Information

6 Months Ended

Jul. 01, 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, 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).

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 July 1, 2023
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	638,005	$	146,266	$	123,954	$	(11,241)	$	896,984
Cost of goods sold	452,866		123,097		77,064		(13,755)		639,272
Depreciation and amortization	5,252		1,804		2,202		1,158		10,416
Selling, general, and administrative expense	28,745		3,394		7,087		16,836		56,062
Gain on insurance settlement	—		—		(19,466)		—		(19,466)
Operating income	151,142		17,971		57,067		(15,480)		210,700
Interest expense									(135)
Interest income									7,732
Unrealized gain on short-term investments									20,820
Other income, net									1,841
Income before income taxes									$	240,958

Segment information (continued):

	For the Quarter Ended June 25, 2022
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	824,807	$	179,175	$	164,484	$	(18,424)	$	1,150,042
Cost of goods sold	585,090		150,940		103,110		(18,226)		820,914
Depreciation and amortization	5,930		1,846		2,348		1,178		11,302
Selling, general, and administrative expense	22,208		2,221		8,279		16,248		48,956
Operating income	211,579		24,168		50,747		(17,624)		268,870
Interest expense									(147)
Interest income									103
Other income, net									2,100
Income before income taxes									$	270,926

	For the Six Months Ended July 1, 2023
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	1,300,484	$	311,500	$	276,908	$	(20,716)	$	1,868,176
Cost of goods sold	920,476		256,267		165,876		(24,549)		1,318,070
Depreciation and amortization	10,810		3,576		4,355		2,332		21,073
Selling, general, and administrative expense	54,202		6,471		15,088		32,932		108,693
Gain on insurance settlement	—		—		(19,466)		—		(19,466)
Operating income	314,996		45,186		111,055		(31,431)		439,806
Interest expense									(278)
Interest income									13,967
Unrealized gain on short-term investments									20,820
Other income, net									4,077
Income before income taxes									$	478,392

Segment information (continued):

	For the Six Months Ended June 25, 2022
( In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Eliminations		Total
Net sales	$	1,528,237	$	353,487	$	305,106	$	(26,786)	$	2,160,044
Cost of goods sold	1,099,277		296,650		197,067		(27,569)		1,565,425
Depreciation and amortization	11,330		3,790		4,700		2,323		22,143
Selling, general, and administrative expense	45,563		5,620		15,892		29,337		96,412
Gain on sale of assets	—		—		—		(5,507)		(5,507)
Operating income	372,067		47,427		87,447		(25,370)		481,571
Interest expense									(305)
Interest income									263
Other income, net									2,720
Income before income taxes									$	484,249

The following table presents total assets attributable to each segment:

(In thousands)	July 1, 2023		December 31, 2022
Segment assets:
Piping Systems	$	1,218,810	$	1,088,940
Industrial Metals	165,534		160,702
Climate	263,666		279,940
General Corporate	928,410		712,817
	$	2,576,420	$	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 July 1, 2023
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	518,712	$	—	$	—	$	518,712
Brass rod and forgings	—		113,563		—		113,563
OEM components, tube & assemblies	—		21,073		33,007		54,080
Valves and plumbing specialties	119,293		—		—		119,293
Flex duct and other HVAC components	—		—		90,947		90,947
Other	—		11,630		—		11,630
	638,005		146,266		123,954		908,225
Intersegment sales							(11,241)
Net sales							$	896,984

	For the Quarter Ended June 25, 2022
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	674,579	$	—	$	—	$	674,579
Brass rod and forgings	—		142,788		—		142,788
OEM components, tube & assemblies	—		20,254		32,526		52,780
Valves and plumbing specialties	150,228		—		—		150,228
Flex duct and other HVAC components	—		—		131,958		131,958
Other	—		16,133		—		16,133
	824,807		179,175		164,484		1,168,466
Intersegment sales							(18,424)
Net sales							$	1,150,042

Disaggregation of revenue from contracts with customers (continued):

	For the Six Months Ended July 1, 2023
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	1,062,940	$	—	$	—	$	1,062,940
Brass rod and forgings	—		243,903		—		243,903
OEM components, tube & assemblies	—		43,582		66,409		109,991
Valves and plumbing specialties	237,544		—		—		237,544
Flex duct and other HVAC components	—		—		210,499		210,499
Other	—		24,015		—		24,015
	1,300,484		311,500		276,908		1,888,892
Intersegment sales							(20,716)
Net sales							$	1,868,176

	For the Six Months Ended June 25, 2022
(In thousands)	Piping Systems	Industrial Metals	Climate	Total
Tube and fittings	1,246,089	—	—	1,246,089
Brass rod and forgings	—	279,321	—	279,321
OEM components, tube & assemblies	—	40,350	61,618	101,968
Valves and plumbing specialties	282,148	—	—	282,148
Flex duct and other HVAC components	—	—	243,488	243,488
Other	—	33,816	—	33,816
	1,528,237	353,487	305,106	2,186,830
Intersegment sales				(26,786)
Net sales				$	2,160,044