Segment Information

12 Months Ended

Dec. 28, 2024

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 (including Elkhart, acquired in fiscal August 2024), 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 OEMs.

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.

Industrial Metals

Industrial Metals is composed of the following operating segments: Brass Rod, Impacts & Micro Gauge, Brass Value-Added Products, Precision Tube, and Nehring (acquired in fiscal June 2024).  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, gas assemblies, and high-quality wire and cable solutions.  These products are manufactured in the U.S. and sold primarily to OEMs and utilities in the U.S., many of which are in the industrial, transportation, construction, heating, ventilation, and air-conditioning, plumbing, refrigeration, energy, telecommunication, and electrical transmission and distribution markets.

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, and line sets primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S.

During 2024 the Company sold two buildings, resulting in gains of $4.5 million recognized in the segment. 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.

The Company’s chief operating decision maker (CODM) is the chief executive officer. Performance of segments is generally evaluated by their operating income.  Summarized product line, geographic, and segment information is shown in the following tables. Unallocated expenses include general corporate expenses, plus certain charges or credits not included in segment activity. Geographic sales data indicates the location from which products are shipped.  

During 2024, 2023, and 2022, 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 28, 2024
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
Tube and fittings	$	2,063,777	$	—	$	—	$	2,063,777
Brass rod, forgings, wire and cable	—		695,883		—		695,883
OEM components and valves	—		73,197		118,626		191,823
Valves and plumbing specialties	450,319		—		—		450,319
Flex duct and other HVAC components	—		—		369,820		369,820
Other	—		49,359		—		49,359
	$	2,514,096	$	818,439	$	488,446	$	3,820,981
Intersegment sales							(52,215)
Net sales							$	3,768,766

Disaggregation of revenue from contracts with customers (continued):

	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, tube & assemblies	—		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

	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

Summarized segment information is as follows:

	For the Year Ended December 28, 2024
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
External net sales	$	2,477,729	$	803,277	$	487,760	$	3,768,766
Internal net sales	36,367		15,162		686		52,215
	2,514,096		818,439		488,446		3,820,981
Reconciliation of net sales:
Elimination of intersegment net sales							(52,215)
Total net sales							3,768,766
Less: (1)
Manufacturing costs (2)	1,797,203		697,400		317,263		2,811,866
Sales and marketing expense	27,605		3,822		13,707		45,134
Distribution expense	39,108		2,237		2,137		43,482
Other segment items (3)	32,729		22,420		9,285		64,434
Segment operating income	617,451		92,560		146,054		856,065
Reconciliation of segment operating income:
Corporate expenses							(85,676)
Interest expense							(410)
Interest income							53,468
Realized and unrealized gains on short-term investments							914
Environmental expense							(2,218)
Gain on extinguishment of NMTC liability							1,265
Other expense, net							(2,946)
Income before income taxes							$	820,462
(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown.
(2) Manufacturing costs include material, manufacturing conversion costs, and freight.
(3) Other segment items include administrative employee compensation expense, professional fees, foreign currency exchange gains/losses, other overhead costs, and other items such as gains/losses on sale of assets, impairment charges, and gains on insurance settlements (as applicable).

Segment information (continued):

	For the Year Ended December 30, 2023
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
External net sales	$	2,355,516	$	564,115	$	500,714	$	3,420,345
Internal net sales	27,057		13,760		76		40,893
	2,382,573		577,875		500,790		3,461,238
Reconciliation of net sales:
Elimination of intersegment net sales							(40,893)
Total net sales							3,420,345
Less: (1)
Manufacturing costs (2)	1,703,161		487,245		318,588		2,508,994
Sales and marketing expense	26,549		2,412		13,981		42,942
Distribution expense	36,645		2,331		2,410		41,386
Other segment items (3)	46,979		9,508		(6,053)		50,434
Segment operating income	569,239		76,379		171,864		817,482
Reconciliation of segment operating income:
Corporate expenses							(61,429)
Interest expense							(1,221)
Interest income							38,208
Realized and unrealized gains on short-term investments							41,865
Environmental expense							(825)
Gain on extinguishment of NMTC liability							7,534
Other income, net							3,618
Income before income taxes							$	845,232

Segment information (continued):

	For the Year Ended December 31, 2022
(In thousands)	Piping Systems		Industrial Metals		Climate		Total
External net sales	$	2,706,065	$	627,270	$	649,120	$	3,982,455
Internal net sales	24,019		17,419		1,187		42,625
	2,730,084		644,689		650,307		4,025,080
Reconciliation of net sales:
Elimination of intersegment net sales							(42,625)
Total net sales							3,982,455
Less: (1)
Manufacturing costs (2)	1,960,977		550,040		425,236		2,936,253
Sales and marketing expense	24,292		2,358		19,131		45,781
Distribution expense	35,772		2,368		2,687		40,827
Other segment items (3)	37,981		7,459		15,186		60,626
Segment operating income	671,062		82,464		188,067		941,593
Reconciliation of segment operating income:
Corporate expenses							(64,444)
Interest expense							(810)
Interest income							6,457
Realized and unrealized gains on short-term investments							2,918
Environmental expense							(1,298)
Pension plan termination expense							(13,100)
Other income, net							4,715
Income before income taxes							$	876,031

Other segment disclosures:

	For the Year Ended December 28, 2024
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Unallocated		Total
Depreciation and amortization (4)	$	20,048	$	21,511	$	6,535	$	5,039	$	53,133
Loss (gain) on sale of assets, net	257		—		(4,471)		(1,566)		(5,780)
Expenditures for long-lived assets (including those resulting from business acquisitions)	26,433		138,211		8,533		11,762		184,939
Segment assets	1,167,955		812,751		264,738		1,045,462		3,290,906
(4) The amount of depreciation and amortization disclosed by reportable segment is included within the other segment expense captions, such as manufacturing costs or other segment items.

Other segment disclosures (continued):

	For the Year Ended December 30, 2023
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Unallocated		Total
Depreciation and amortization (4)	$	20,461	$	7,273	$	7,567	$	4,653	$	39,954
Gain on sale of businesses	—		—		—		(4,137)		(4,137)
Impairment charges	6,258		—		—		—		6,258
Gain on insurance settlement	—		—		(19,466)		—		(19,466)
Expenditures for long-lived assets (including those resulting from business acquisitions)	19,118		9,406		15,407		10,094		54,025
Segment assets	1,029,821		157,761		252,561		1,319,158		2,759,301

	For the Year Ended December 31, 2022
(In thousands)	Piping Systems		Industrial Metals		Climate		Corporate and Unallocated		Total
Depreciation and amortization (4)	$	22,193	$	7,647	$	9,174	$	4,717	$	43,731
Gain on sale of assets, net	—		—		—		(6,373)		(6,373)
Expenditures for long-lived assets (including those resulting from business acquisitions)	20,694		6,905		2,611		7,429		37,639
Segment assets	1,088,940		160,702		279,940		712,817		2,242,399

Summarized geographic information is as follows:

(In thousands)	2024		2023		2022
Net sales:
United States	$	2,826,574	$	2,572,141	$	2,965,053
United Kingdom	280,726		270,128		297,582
Canada	344,614		339,682		410,679
Asia and the Middle East	231,092		153,816		217,750
Mexico	85,760		84,578		91,391
Total net sales	$	3,768,766	$	3,420,345	$	3,982,455

Long-lived assets:	2024		2023		2022
United States	$	412,294	$	273,604	$	266,571
United Kingdom	37,876		40,045		36,474
Canada	15,597		18,152		23,354
Asia and the Middle East	48,115		50,725		51,193
Mexico	1,249		2,639		2,358
Total long-lived assets	$	515,131	$	385,165	$	379,950