Segment Information

12 Months Ended

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