Segment Information

9 Months Ended

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