Cover
Cover - shares | 6 Months Ended | |
Jun. 29, 2024 | Jul. 19, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 29, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-6770 | |
Entity Registrant Name | MUELLER INDUSTRIES INC | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 25-0790410 | |
Entity Address, Address Line One | 150 Schilling Boulevard | |
Entity Address, Address Line Two | Suite 100 | |
Entity Address, City or Town | Collierville | |
Entity Address, State or Province | TN | |
Entity Address, Postal Zip Code | 38017 | |
City Area Code | 901 | |
Local Phone Number | 753-3200 | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | MLI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 113,324,148 | |
Entity Central Index Key | 0000089439 | |
Current Fiscal Year End Date | --12-28 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | ||
Income Statement [Abstract] | |||||
Net sales | $ 997,745 | $ 896,984 | $ 1,847,399 | $ 1,868,176 | |
Cost of goods sold | 724,990 | 639,272 | 1,333,693 | 1,318,070 | |
Depreciation and amortization | 10,018 | 10,416 | 19,187 | 21,073 | |
Selling, general, and administrative expense | 52,731 | 56,062 | 101,088 | 108,693 | |
Gain on insurance settlement | 0 | (19,466) | 0 | (19,466) | |
Operating income | 210,006 | 210,700 | 393,431 | 439,806 | |
Interest expense | (107) | (135) | (222) | (278) | |
Interest income | 14,383 | 7,732 | 31,628 | 13,967 | |
Realized and unrealized gains on short-term investments | 0 | 20,820 | 365 | 22,730 | |
Other (expense) income, net | (1,356) | 1,841 | (726) | 2,167 | |
Income before income taxes | 222,926 | 240,958 | 424,476 | 478,392 | |
Income tax expense | (58,384) | (62,122) | (110,218) | (123,479) | |
(Loss) income from unconsolidated affiliates, net of foreign tax | (1,095) | 715 | (9,102) | (269) | |
Consolidated net income | 163,447 | 179,551 | 305,156 | 354,644 | |
Net income attributable to noncontrolling interests | (3,282) | (1,840) | (6,628) | (3,694) | |
Net income attributable to Mueller Industries, Inc. | $ 160,165 | $ 177,711 | $ 298,528 | $ 350,950 | |
Weighted average shares for basic earnings per share (in shares) | [1] | 111,216 | 111,320 | 111,316 | 111,354 |
Effect of dilutive stock-based awards (in shares) | [1] | 2,763 | 2,680 | 2,746 | 2,046 |
Adjusted weighted average shares for diluted earnings per share (in shares) | [1] | 113,979 | 114,000 | 114,062 | 113,400 |
Basic earnings per share (in dollars per share) | [1] | $ 1.44 | $ 1.60 | $ 2.68 | $ 3.15 |
Diluted earnings per share (in dollars per share) | [1] | 1.41 | 1.56 | 2.62 | 3.09 |
Dividends per share (in dollars per share) | [1] | $ 0.20 | $ 0.15 | $ 0.40 | $ 0.30 |
[1] Adjusted retroactively to reflect the two-for-one stock split that occurred on October 20, 2023. Refer to Note 2 - Earnings per Common Share for additional information. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (Parenthetical) | Oct. 20, 2023 | Sep. 26, 2023 |
Statement of Financial Position [Abstract] | ||
Stock split conversion ratio | 2 | 2 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Consolidated net income | $ 163,447 | $ 179,551 | $ 305,156 | $ 354,644 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation | (7,871) | 7,725 | (12,026) | 17,976 |
Net change with respect to derivative instruments and hedging activities, net of tax of $214, $775, $121 and $503 | (746) | (2,679) | (419) | (1,725) |
Net change in pension and postretirement obligation adjustments, net of tax of $38, $1, $21 and $12 | (93) | 9 | (57) | 1 |
Attributable to unconsolidated affiliates, net of tax of $65, $(103), $460 and $(476) | (221) | 353 | (1,583) | 1,638 |
Total other comprehensive (loss) income, net | (8,931) | 5,408 | (14,085) | 17,890 |
Consolidated comprehensive income | 154,516 | 184,959 | 291,071 | 372,534 |
Comprehensive income attributable to noncontrolling interests | (2,759) | (1,546) | (5,484) | (3,658) |
Comprehensive income attributable to Mueller Industries, Inc. | $ 151,757 | $ 183,413 | $ 285,587 | $ 368,876 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net change with respect to derivative instruments and hedging activities, tax (expense) benefit | $ 214 | $ 775 | $ 121 | $ 503 |
Net actuarial loss on pension and postretirement obligations, tax benefit (expense) | (38) | (1) | (21) | (12) |
Attributable to unconsolidated affiliates, tax benefit (expense) | $ 65 | $ (103) | $ 460 | $ (476) |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Current assets: | ||
Cash and cash equivalents | $ 825,655 | $ 1,170,893 |
Short-term investments | 0 | 98,146 |
Accounts receivable, less allowance for doubtful accounts of $2,549 in 2024 and $2,830 in 2023 | 522,572 | 351,561 |
Inventories | 406,217 | 380,248 |
Other current assets | 50,347 | 39,173 |
Total current assets | 1,804,791 | 2,040,021 |
Property, plant, and equipment, net | 471,443 | 385,165 |
Operating lease right-of-use assets | 34,534 | 35,170 |
Goodwill, net | 608,919 | 151,820 |
Intangible assets, net | 43,466 | 46,208 |
Investments in unconsolidated affiliates | 77,450 | 83,436 |
Other assets | 25,582 | 17,481 |
Total assets | 3,066,185 | 2,759,301 |
Current liabilities: | ||
Current portion of debt | 785 | 796 |
Accounts payable | 198,537 | 120,485 |
Accrued wages and other employee costs | 42,259 | 55,644 |
Current portion of operating lease liabilities | 8,000 | 7,893 |
Other current liabilities | 137,647 | 132,320 |
Total current liabilities | 387,228 | 317,138 |
Long-term debt, less current portion | 74 | 185 |
Pension liabilities | 2,708 | 2,832 |
Postretirement benefits other than pensions | 8,988 | 9,230 |
Environmental reserves | 14,808 | 15,030 |
Deferred income taxes | 20,023 | 19,134 |
Noncurrent operating lease liabilities | 26,330 | 26,683 |
Other noncurrent liabilities | 33,168 | 10,353 |
Total liabilities | 493,327 | 400,585 |
Mueller Industries, Inc. stockholders' equity: | ||
Preferred stock - $1.00 par value; shares authorized 5,000,000; none outstanding | 0 | 0 |
Common stock - $.01 par value; shares authorized 250,000,000; issued 160,366,008; outstanding 113,403,336 in 2024 and 114,157,918 in 2023 | 1,604 | 1,604 |
Additional paid-in capital | 325,763 | 312,171 |
Retained earnings | 2,847,420 | 2,594,300 |
Accumulated other comprehensive loss | (60,162) | (47,221) |
Treasury common stock, at cost | (568,522) | (523,409) |
Total Mueller Industries, Inc. stockholders' equity | 2,546,103 | 2,337,445 |
Noncontrolling interests | 26,755 | 21,271 |
Total equity | 2,572,858 | 2,358,716 |
Commitments and contingencies | 0 | 0 |
Total liabilities and equity | $ 3,066,185 | $ 2,759,301 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS - (Parenthetical) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Current assets: | ||
Allowance for doubtful accounts | $ 2,549 | $ 2,830 |
Mueller Industries, Inc. stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 |
Common stock, shares issued (in shares) | 160,366,008 | 160,366,008 |
Common stock, shares outstanding (in shares) | 113,403,336 | 114,157,918 |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Cash flows from operating activities | ||
Consolidated net income | $ 305,156 | $ 354,644 |
Reconciliation of consolidated net income to net cash provided by operating activities: | ||
Depreciation and amortization | 19,349 | 21,252 |
Stock-based compensation expense | 13,476 | 12,459 |
Provision for doubtful accounts receivable | (67) | (80) |
Loss from unconsolidated affiliates | 9,102 | 269 |
Dividends from unconsolidated affiliates | 3,541 | 0 |
Insurance proceeds - noncapital related | 15,000 | 9,854 |
Gain on disposals of properties | (1,286) | (141) |
Unrealized gain on short-term investments | 0 | (20,820) |
Gain on sales of securities | (365) | 0 |
Gain on insurance settlement | 0 | (19,466) |
Deferred income tax (benefit) expense | (1,509) | 2,406 |
Changes in assets and liabilities, net of effects of businesses acquired: | ||
Receivables | (132,012) | (77,701) |
Inventories | 6,706 | (12,149) |
Other assets | 8,511 | (5,571) |
Current liabilities | 30,276 | (14,460) |
Other liabilities | (2,375) | (976) |
Other, net | 872 | 1,310 |
Net cash provided by operating activities | 274,375 | 250,830 |
Cash flows from investing activities | ||
Capital expenditures | (25,603) | (29,221) |
Acquisition of businesses, net of cash acquired | (566,577) | 0 |
Investments in unconsolidated affiliates | (8,700) | 0 |
Insurance proceeds - capital related | 0 | 24,646 |
Purchase of short-term investments | 0 | (106,231) |
Purchase of long-term investments | (7,976) | 0 |
Proceeds from the maturity of short-term investments | 0 | 217,863 |
Proceeds from the sale of securities | 96,465 | 0 |
Issuance of notes receivable | (3,800) | 0 |
Proceeds from sales of assets | 3,976 | 142 |
Dividends from unconsolidated affiliates | 0 | 797 |
Net cash (used in) provided by investing activities | (512,215) | 107,996 |
Cash flows from financing activities | ||
Dividends paid to stockholders of Mueller Industries, Inc. | (44,488) | (33,402) |
Repurchase of common stock | (42,994) | (19,303) |
Repayments of debt | (111) | (130) |
Issuance (repayment) of debt by consolidated joint ventures, net | 11 | (143) |
Net cash used to settle stock-based awards | (2,002) | (2,588) |
Net cash used in financing activities | (89,584) | (55,566) |
Effect of exchange rate changes on cash | (4,784) | 4,825 |
(Decrease) increase in cash, cash equivalents, and restricted cash | (332,208) | 308,085 |
Cash, cash equivalents, and restricted cash at the beginning of the period | 1,174,223 | 465,296 |
Cash, cash equivalents, and restricted cash at the end of the period | $ 842,015 | $ 773,381 |
CONDENSED CONSOLIDATED STATEM_6
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated other comprehensive loss | Treasury Stock | Noncontrolling Interest |
Balance at beginning of period at Dec. 31, 2022 | $ 802 | $ 297,270 | $ 2,059,796 | $ (64,175) | $ (502,779) | $ 23,050 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Acquisition of shares under incentive stock option plans | 434 | ||||||
Stock-based compensation expense | 12,459 | ||||||
Issuance of restricted stock | (458) | 458 | |||||
Net income attributable to Mueller Industries, Inc. | $ 350,950 | 350,950 | |||||
Dividends paid or payable to stockholders of Mueller Industries, Inc. | (34,128) | ||||||
Total other comprehensive (loss) income attributable to Mueller Industries, Inc. | 17,890 | 17,926 | |||||
Issuance (acquisition) of shares under incentive stock option plans | (3,022) | ||||||
Repurchase of common stock | (19,303) | ||||||
Net income attributable to noncontrolling interests | (3,694) | 3,694 | |||||
Foreign currency translation | 17,976 | (36) | |||||
Balance at end of period at Jul. 01, 2023 | 802 | 309,705 | 2,376,618 | (46,249) | (524,646) | 26,708 | |
Balance at beginning of period at Apr. 01, 2023 | 802 | 303,133 | 2,215,939 | (51,951) | (505,616) | 25,162 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Acquisition of shares under incentive stock option plans | 208 | ||||||
Stock-based compensation expense | 6,822 | ||||||
Issuance of restricted stock | (458) | 458 | |||||
Net income attributable to Mueller Industries, Inc. | 177,711 | 177,711 | |||||
Dividends paid or payable to stockholders of Mueller Industries, Inc. | (17,032) | ||||||
Total other comprehensive (loss) income attributable to Mueller Industries, Inc. | 5,408 | 5,702 | |||||
Issuance (acquisition) of shares under incentive stock option plans | (185) | ||||||
Repurchase of common stock | (19,303) | ||||||
Net income attributable to noncontrolling interests | (1,840) | 1,840 | |||||
Foreign currency translation | 7,725 | (294) | |||||
Balance at end of period at Jul. 01, 2023 | 802 | 309,705 | 2,376,618 | (46,249) | (524,646) | 26,708 | |
Balance at beginning of period at Dec. 30, 2023 | 2,358,716 | 1,604 | 312,171 | 2,594,300 | (47,221) | (523,409) | 21,271 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Acquisition of shares under incentive stock option plans | 343 | ||||||
Stock-based compensation expense | 13,476 | ||||||
Issuance of restricted stock | (227) | 227 | |||||
Net income attributable to Mueller Industries, Inc. | 298,528 | 298,528 | |||||
Dividends paid or payable to stockholders of Mueller Industries, Inc. | (45,408) | ||||||
Total other comprehensive (loss) income attributable to Mueller Industries, Inc. | (14,085) | (12,941) | |||||
Issuance (acquisition) of shares under incentive stock option plans | (2,346) | ||||||
Repurchase of common stock | (42,994) | ||||||
Net income attributable to noncontrolling interests | (6,628) | 6,628 | |||||
Foreign currency translation | (12,026) | (1,144) | |||||
Balance at end of period at Jun. 29, 2024 | 2,572,858 | 1,604 | 325,763 | 2,847,420 | (60,162) | (568,522) | 26,755 |
Balance at beginning of period at Mar. 30, 2024 | 1,604 | 318,684 | 2,709,950 | (51,754) | (554,110) | 23,996 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Acquisition of shares under incentive stock option plans | 61 | ||||||
Stock-based compensation expense | 7,245 | ||||||
Issuance of restricted stock | (227) | 227 | |||||
Net income attributable to Mueller Industries, Inc. | 160,165 | 160,165 | |||||
Dividends paid or payable to stockholders of Mueller Industries, Inc. | (22,695) | ||||||
Total other comprehensive (loss) income attributable to Mueller Industries, Inc. | (8,931) | (8,408) | |||||
Issuance (acquisition) of shares under incentive stock option plans | 425 | ||||||
Repurchase of common stock | (15,064) | ||||||
Net income attributable to noncontrolling interests | (3,282) | 3,282 | |||||
Foreign currency translation | (7,871) | (523) | |||||
Balance at end of period at Jun. 29, 2024 | $ 2,572,858 | $ 1,604 | $ 325,763 | $ 2,847,420 | $ (60,162) | $ (568,522) | $ 26,755 |
Recent Accounting Standards
Recent Accounting Standards | 6 Months Ended |
Jun. 29, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Standards | Recent Accounting Standards Adopted In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The new guidance was issued to clarify existing guidance measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduce new disclosure requirements for applicable equity securities. The ASU was effective for fiscal years beginning after December 15, 2023 for public entities. The guidance requires prospective adoption, and early adoption was permitted. The Company adopted the ASU during the first quarter of 2024. The adoption of the ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Issued In March 2024, the Securities and Exchange Commission issued final rules on the enhancement and standardization of climate-related disclosures. The rules require disclosure of, among other things: material climate-related risks, activities to mitigate or adapt to such risks, governance and management of such risks, and material greenhouse gas (GHG) emissions from operations owned or controlled (Scope 1) and/or indirect emissions from purchased energy consumed in operations (Scope 2). Additionally, the rules require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to certain materiality thresholds. The rules will become effective on a phased-in timeline in fiscal years beginning in 2025. The Company is in the process of analyzing the impact of the rules on its disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The new guidance primarily enhances and expands both the income tax rate reconciliation disclosure and the income taxes paid disclosure. The ASU is effective for annual periods beginning after December 15, 2024 for public entities on a prospective basis. Early adoption is permitted. The Company is in the process of analyzing the impact of the standard on its disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The new guidance requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The ASU applies to all public entities and is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. The guidance requires retrospective adoption, and early adoption is permitted. The Company is in the process of analyzing the impact of the standard on its disclosures. |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 29, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic per share amounts have been computed based on the average number of common shares outstanding. Diluted per share amounts reflect the increase in average common shares outstanding that would re sult from the assumed exercise of outstanding stock options and vesting of restricted and performance stock awards, computed using the treasury stock method. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 6 Months Ended |
Jun. 29, 2024 | |
Business Combinations [Abstract] | |
Acquisitions and Dispositions | Acquisitions and Dispositions Acquisition Nehring Electrical Works Company On April 19, 2024, the Company entered into an equity purchase agreement to acquire Nehring Electrical Works Company and certain of its affiliated companies (collectively, “Nehring”). The transaction closed on May 28, 2024, whereby the Company purchased all of the outstanding equity of Nehring for approximately $594.6 million, net of working capital adjustments. The total purchase price consisted of $566.6 million in cash on hand at closing and a contingent consideration arrangement which requires the Company to pay the sellers up to $25.0 million based on EBITDA growth of the acquired business. Nehring produces high-quality wire and cable solutions for the utility, telecommunication, electrical distribution, and OEM markets. Nehring provides the Company a substantial platform for expansion in the energy infrastructure space. The acquired business is reported in the Company’s Industrial Metals segment. The provisional fair value of the assets acquired totaled $164.5 million, consisting primarily of property, plant, and equipment of $82.4 million, accounts receivable of $44.2 million, inventories of $36.1 million, and other current assets of $1.8 million. The fair value of the liabilities assumed totaled $27.8 million, consisting primarily of accounts payable of $19.6 million and other current liabilities of $8.2 million. Of the remaining purchase price, $457.9 million was allocated to tax-deductible goodwill and intangible assets. The purchase price allocation is provisional as of June 29, 2024 and subject to change upon the completion of the final valuation of the long-lived assets, working capital, and contingent consideration during the measurement period. For the twelve months ended December 31, 2023, Nehring’s annual net sales were approximately $400.0 million. The following table presents condensed pro forma consolidated results of operations as if the Nehring acquisition had occurred at the beginning of the periods presented. The pro forma information does not purport to be indicative of the results that would have been obtained if the operations had actually been combined during the periods presented, and is not necessarily indicative of operating results to be expected in future periods. The most significant pro forma adjustments to the historical results of operations relate to the application of purchase accounting, the financing structure, and estimated income taxes. For the Six Months Ended (In thousands, except per share data) June 29, 2024 July 1, 2023 Net sales $ 1,981,861 $ 2,081,325 Net income 306,525 371,445 Basic earnings per share $ 2.75 $ 3.34 Diluted earnings per share 2.69 3.28 Disposition Heatlink Group On September 2, 2021, the Company entered into a contribution agreement with a limited liability company in the retail distribution business, pursuant to which the Company exchanged the outstanding common stock of Die-Mold for a 17 percent equity interest in the limited liability company. Die-Mold manufactures PEX and other plumbing-related fittings and plastic injection tooling in Canada and sells these products in Canada and the U.S. and was included in the Piping Systems segment. Effective July 3, 2023, the Company transferred 100 percent of the outstanding shares of Heatlink Group, Inc. and Heatlink Group USA, LLC for an additional 11 percent equity interest in the limited liability company. 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. and was included in the Piping Systems segment. Heatlink Group reported net sales of $15.6 million and operating income of $1.7 million in the first half of 2023. As a result of the transaction, the Company recognized a gain of $4.1 million in the third quarter of 2023 based on the excess of the fair value of the consideration received (the 11 percent equity interest) over the carrying value of Heatlink Group. The Company equally weighted an income discounted cash flow approach and market comparable companies approach using an EBITDA multiple to determine the fair value of the consideration received of $26.0 million, which is recognized within the Investments in unconsolidated affiliates line of the Condensed Consolidated Balance Sheet. The excess of the fair value of the deconsolidated subsidiary over its carrying value resulted in the gain. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 29, 2024 | |
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, Precision Tube, and Nehring (acquired in fiscal June 2024). These businesses manufacture brass rod, impact extrusions, 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. 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 June 29, 2024 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 688,469 $ 195,341 $ 130,532 $ (16,597) $ 997,745 Cost of goods sold 500,826 159,265 82,291 (17,392) 724,990 Depreciation and amortization 4,932 2,368 1,646 1,072 10,018 Selling, general, and administrative expense 20,453 4,015 7,602 20,661 52,731 Operating income 162,258 29,693 38,993 (20,938) 210,006 Interest expense (107) Interest income 14,383 Other expense, net (1,356) Income before income taxes $ 222,926 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 Realized and unrealized gains on short-term investments 20,820 Other income, net 1,841 Income before income taxes $ 240,958 Segment information (continued): For the Six Months Ended June 29, 2024 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,278,637 $ 351,408 $ 247,342 $ (29,988) $ 1,847,399 Cost of goods sold 921,767 285,869 157,882 (31,825) 1,333,693 Depreciation and amortization 9,492 4,288 3,241 2,166 19,187 Selling, general, and administrative expense 42,440 7,287 14,651 36,710 101,088 Operating income 304,938 53,964 71,568 (37,039) 393,431 Interest expense (222) Interest income 31,628 Realized and unrealized gains on short-term investments 365 Other expense, net (726) Income before income taxes $ 424,476 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 Realized and unrealized gains on short-term investments 22,730 Other income, net 2,167 Income before income taxes $ 478,392 The following table presents total assets attributable to each segment: (In thousands) June 29, December 30, 2023 Segment assets: Piping Systems $ 1,112,550 $ 1,029,821 Industrial Metals 821,011 157,761 Climate 275,872 252,561 General Corporate 856,752 1,319,158 $ 3,066,185 $ 2,759,301 The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category: For the Quarter Ended June 29, 2024 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 568,849 $ — $ — $ 568,849 Brass rod and forgings — 131,709 — 131,709 OEM components, tube & assemblies — 20,418 30,569 50,987 Valves and plumbing specialties 119,620 — — 119,620 Flex duct and other HVAC components — — 99,963 99,963 Other — 43,214 — 43,214 688,469 195,341 130,532 1,014,342 Intersegment sales (16,597) Net sales $ 997,745 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 Disaggregation of revenue from contracts with customers (continued): For the Six Months Ended June 29, 2024 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 1,047,325 $ — $ — $ 1,047,325 Brass rod and forgings — 255,768 — 255,768 OEM components, tube & assemblies — 39,375 60,586 99,961 Valves and plumbing specialties 231,312 — — 231,312 Flex duct and other HVAC components — — 186,756 186,756 Other — 56,265 — 56,265 1,278,637 351,408 247,342 1,877,387 Intersegment sales (29,988) Net sales $ 1,847,399 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 |
Cash, Cash Equivalents, and Res
Cash, Cash Equivalents, and Restricted Cash | 6 Months Ended |
Jun. 29, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash (In thousands) June 29, December 30, Cash & cash equivalents $ 825,655 $ 1,170,893 Restricted cash included within other current assets 16,258 3,228 Restricted cash included within other assets 102 102 Total cash, cash equivalents, and restricted cash $ 842,015 $ 1,174,223 Amounts included in restricted cash relate to required deposits in brokerage accounts that facilitate the Company’s hedging activities as well as imprest funds for the Company’s self-insured workers’ compensation program. |
Inventories
Inventories | 6 Months Ended |
Jun. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories (In thousands) June 29, December 30, Raw materials and supplies $ 115,258 $ 111,843 Work-in-process 80,599 61,793 Finished goods 222,501 220,629 Valuation reserves (12,141) (14,017) Inventories $ 406,217 $ 380,248 |
Financial Instruments
Financial Instruments | 6 Months Ended |
Jun. 29, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments | Financial Instruments Short-Term Investments The fair value of short-term investments at December 30, 2023, consisting of marketable securities, approximates the carrying value on that date. These marketable securities are stated at fair value and classified as level 1 within the fair value hierarchy. This classification is defined as a fair value determined using observable inputs that reflect quoted prices in active markets for identical assets. Derivative Instruments and Hedging Activities The Company’s earnings and cash flows are subject to fluctuations due to changes in commodity prices, foreign currency exchange rates, and interest rates. The Company uses derivative instruments such as commodity futures contracts, foreign currency forward contracts, and interest rate swaps to manage these exposures. All derivatives are recognized in the Condensed Consolidated Balance Sheets at their fair values. On the date the derivative contract is entered into, it is either a) designated as a hedge of a forecasted transaction or the variability of cash flow to be paid (cash flow hedge) or b) not designated in a hedge accounting relationship, even though the derivative contract was executed to mitigate an economic exposure (economic hedge), as the Company does not enter into derivative contracts for trading purposes. Changes in the fair value of a derivative that is qualified, designated, and highly effective as a cash flow hedge are recorded in stockholders’ equity within AOCI, to the extent effective, until they are reclassified to earnings in the same period or periods during which the hedged transaction affects earnings. Changes in the fair value of undesignated derivatives executed as economic hedges are reported in current earnings. The Company documents all relationships between derivative instruments and hedged items, as well as the risk-management objective and strategy for undertaking various hedge transactions. This process includes linking all derivative instruments that are designated as fair value hedges to specific assets and liabilities in the Condensed Consolidated Balance Sheets and linking cash flow hedges to specific forecasted transactions or variability of cash flow. The Company also assesses, both at the hedge’s inception and on an ongoing basis, whether the designated derivative instruments that are used in hedging transactions are highly effective in offsetting changes in cash flows or fair values of hedged items. When a derivative instrument is determined not to be highly effective as a hedge or the underlying hedged transaction is no longer probable of occurring, hedge accounting is discontinued prospectively in accordance with the derecognition criteria for hedge accounting. Commodity Futures Contracts Copper and brass represent the largest component of the Company’s variable costs of production. The cost of these materials is subject to global market fluctuations caused by factors beyond the Company’s control. The Company occasionally enters into forward fixed-price arrangements with certain customers; the risk of these arrangements is generally managed with commodity futures contracts. These futures contracts have been designated as cash flow hedges. At June 29, 2024, the Company held open futures contracts to purchase approximately $18.5 million of copper over the next 13 months related to fixed price sales orders. The fair value of those futures contracts was a $453 thousand net loss position, which was determined by obtaining quoted market prices (level 1 within the fair value hierarchy). In the next 12 months, the Company will reclassify into earnings realized gains or losses relating to cash flow hedges. At June 29, 2024, this amount was approximately $348 thousand of deferred net losses, net of tax. The Company may also enter into futures contracts to protect the value of inventory against market fluctuations. At June 29, 2024, the Company held $123.4 million open futures contracts to sell copper over the next six months related to copper inventory. The fair value of those futures contracts was a $7.3 million net loss position, which was determined by obtaining quoted market prices (level 1 within the fair value hierarchy). The Company presents its derivative assets and liabilities in the Condensed Consolidated Balance Sheets on a net basis by counterparty. The following table summarizes the location and fair value of the derivative instruments and disaggregates the net derivative assets and liabilities into gross components on a contract-by-contract basis: Asset Derivatives Liability Derivatives Fair Value Fair Value (In thousands) Balance Sheet Location June 29, December 30, Balance Sheet Location June 29, December 30, Commodity contracts - gains Other current assets $ — $ 589 Other current liabilities $ 2,131 $ 16 Commodity contracts - losses Other current assets — (281) Other current liabilities (9,919) (383) Total derivatives (1) $ — $ 308 $ (7,788) $ (367) (1) Does not include the impact of cash collateral provided to counterparties. The following tables summarize the effects of derivative instruments on the Company’s Condensed Consolidated Statements of Income: For the Quarter Ended For the Six Months Ended (In thousands) Location June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Undesignated derivatives: (Loss) gain on commodity contracts (nonqualifying) Cost of goods sold $ (7,146) $ 427 $ (6,658) $ (2,057) The following tables summarize amounts recognized in and reclassified from AOCI during the period: For the Quarter Ended June 29, 2024 (In thousands) Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 462 Cost of goods sold $ (1,197) Other (11) Other — Total $ 451 Total $ (1,197) Amounts recognized in and reclassified from AOCI (continued): For the Quarter Ended July 1, 2023 (In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (1,961) Cost of goods sold $ (742) Other 24 Other — Total $ (1,937) Total $ (742) For the Six Months Ended June 29, 2024 (In thousands) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 1,129 Cost of goods sold $ (1,570) Other 22 Other — Total $ 1,151 Total $ (1,570) For the Six Months Ended July 1, 2023 (In thousands) Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 1,008 Cost of goods sold $ (2,731) Other (2) Other — Total $ 1,006 Total $ (2,731) The Company primarily enters into International Swaps and Derivatives Association master netting agreements with major financial institutions that permit the net settlement of amounts owed under their respective derivative contracts. Under these master netting agreements, net settlement generally permits the Company or the counterparty to determine the net amount payable for contracts due on the same date and in the same currency for similar types of derivative transactions. The master netting agreements generally also provide for net settlement of all outstanding contracts with a counterparty in the case of an event of default or a termination event. The Company does not offset fair value amounts for derivative instruments and fair value amounts recognized for the right to reclaim cash collateral. At June 29, 2024 and December 30, 2023, the Company had recorded restricted cash in other current assets of $16.1 million and $3.2 million, respectively, as collateral related to open derivative contracts under the master netting arrangements. Long-Term Debt The fair value of long-term debt at June 29, 2024 approximates the carrying value on that date. The estimated fair values were determined based on quoted market prices and the current rates offered for debt with similar terms and maturities. The fair |
Investments in Unconsolidated A
Investments in Unconsolidated Affiliates | 6 Months Ended |
Jun. 29, 2024 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments in Unconsolidated Affiliates | Investments in Unconsolidated Affiliates Tecumseh The Company owns a 50 percent interest in an unconsolidated affiliate that acquired Tecumseh Products Company LLC (Tecumseh) and an entity that provides financing to Tecumseh. This investment is recorded using the equity method of accounting, as the Company can exercise significant influence but does not own a majority equity interest or otherwise control the entity. Under the equity method of accounting, this investment is stated at initial cost and is adjusted for subsequent additional investments and the Company’s proportionate share of earnings or losses and distributions. The Company records its proportionate share of the investee’s net income or loss, net of foreign taxes, one quarter in arrears as income (loss) from unconsolidated affiliates, net of foreign tax, in the Condensed Consolidated Statements of Income and its proportionate share of the investee’s other comprehensive income (loss), net of income taxes, in the Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Changes in Equity. The U.S. tax effect of the Company’s proportionate share of Tecumseh’s income or loss is recorded in income tax expense in the Condensed Consolidated Statements of Income. In general, the equity investment in unconsolidated affiliates is equal to the current equity investment plus the investee’s net accumulated losses. The Company’s net loss from unconsolidated affiliates, net of foreign tax, for the quarter ended June 29, 2024 included losses of $4.0 million for Tecumseh. The Company’s net income from unconsolidated affiliates, net of foreign tax, for the quarter ended July 1, 2023 included losses of $0.6 million for Tecumseh. The Company’s net loss from unconsolidated affiliates, net of foreign tax, for the six months ended June 29, 2024 and July 1, 2023 included losses of $14.3 million and $3.0 million , respectively, for Tecumseh. During the first half of 2024, the Company advanced Tecumseh $12.5 million, which was comprised of a capital contribution of $8.7 million and a note receivable of $3.8 million. These advances did not change the Company’s proportionate ownership of Tecumseh. Retail Distribution The Company owns a 28 percent noncontrolling equity interest in a limited liability company in the retail distribution business. This investment is recorded using the equity method of accounting. The Company records its proportionate share of the investee’s net income or loss one month in arrears as income (loss) from unconsolidated affiliates in the Condensed Consolidated Statements of Income. The Company’s proportionate share of the investee’s other comprehensive income (loss), net of income taxes, is recorded in the Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statement of Changes in Equity. The Company’s net loss from unconsolidated affiliates, net of foreign tax, for the quarter ended June 29, 2024 included income of $2.9 million for the retail distribution business. The Company’s net income from unconsolidated affiliates, net of foreign tax, for the quarter ended July 1, 2023 included income of $1.3 million for the retail distribution business. The Company’s net loss from unconsolidated affiliates, net of foreign tax, for the six months ended June 29, 2024 and July 1, 2023 included income of $5.2 million and $2.7 million |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 29, 2024 | |
Retirement Benefits [Abstract] | |
Benefit Plans | Benefit Plans The Company sponsors several qualified and nonqualified pension plans and other postretirement benefit plans for certain of its employees. The components of net periodic benefit cost (income) are as follows: For the Quarter Ended For the Six Months Ended (In thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Pension benefits: Interest cost $ 582 $ 595 $ 1,163 $ 1,189 Expected return on plan assets (604) (842) (1,208) (1,683) Amortization of net loss 33 — 66 — Net periodic benefit cost (income) $ 11 $ (247) $ 21 $ (494) Other benefits: Service cost $ 55 $ 50 $ 109 $ 101 Interest cost 130 128 261 256 Amortization of prior service cost (credit) — — (1) (1) Amortization of net gain (100) (99) (197) (196) Net periodic benefit cost $ 85 $ 79 $ 172 $ 160 The components of net periodic benefit cost (income) other than the service cost component are included in other income, net in the Condensed Consolidated Statements of Income. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 29, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company is involved in certain litigation as a result of claims that arose in the ordinary course of business, which management believes will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows. The Company may also realize the benefit of certain legal claims and litigation in the future; these gain contingencies are not recognized in the Condensed Consolidated Financial Statements. Environmental Non-operating Properties Southeast Kansas Sites The Kansas Department of Health and Environment (KDHE) has contacted the Company regarding environmental contamination at three former smelter sites in Kansas (Altoona, East La Harpe, and Lanyon). The Company is not a successor to the companies that operated these smelter sites, but is exploring possible settlement with KDHE and other potentially responsible parties (PRP) in order to avoid litigation. In February 2022, the Company reached a settlement with another PRP relating to these three sites. Under the terms of that agreement, the Company paid $5.6 million, which was previously reserved, in exchange for the other PRP’s agreement to conduct or fund any required remediation within the geographic boundaries of the three sites (namely, the parcel(s) on which the former smelters were located), plus coverage of certain off-site areas (namely, contamination that migrated by surface water runoff or air emissions from the Altoona or East La Harpe site, and smelter materials located within 50 feet of the geographic boundary of each site). The settlement does not cover certain matters, including potential liability related to the remediation of the town of Iola which is not estimable at this time. The other PRP will also provide an indemnity that would cover third-party cleanup claims for those sites, subject to a time limit and a cap. Altoona. Another PRP conducted a site investigation of the Altoona site under a consent decree with KDHE and submitted a removal site evaluation report recommending a remedy. The remedial design plan, which covers both on-site and certain off-site cleanup costs, was approved by the KDHE in 2016. Construction of the remedy was completed in 2018. Under the terms of the settlement with the other PRP, the Company expects the operations and maintenance costs for this remedy to be paid for entirely by the other PRP. East La Harpe. At the East La Harpe site, the Company and two other PRPs conducted a site study evaluation under KDHE supervision and prepared a site cleanup plan approved by KDHE. In December 2018, KDHE provided a draft agreement which contemplates the use of funds KDHE obtained from two other parties (Peabody Energy and Blue Tee) to fund part of the remediation, and removes Blue Tee from the PRPs’ agreement with KDHE. Pursuant to the terms of the settlement with the other PRP noted above, the Company expects the remediation to be conducted and paid for entirely by the other PRP, and for the other PRP to negotiate and enter into an agreement with KDHE. Lanyon. With respect to the Lanyon Site, in 2016, the Company received a general notice letter from the United States Environmental Protection Agency (EPA) asserting that the Company is a PRP, which the Company has denied. EPA issued an interim record of decision in 2017 and has been remediating properties at the site. Approximately 1,371 properties were to be remediated. In August 2023, EPA issued a five-year review indicating that the cleanup of approximately 300 remaining residential properties would be completed in 2026. A record of decision concerning the cleanup is scheduled for May 2025. Shasta Area Mine Sites Mining Remedial Recovery Company (MRRC), a wholly owned subsidiary, owns certain inactive mines in Shasta County, California. MRRC has continued a program, begun in the late 1980s, of implementing various remedial measures, including sealing mine portals with concrete plugs in portals that were discharging water. The sealing program achieved significant reductions in the metal load in discharges from these adits; however, additional reductions are required pursuant to an order issued by the California Regional Water Quality Control Board (QCB). In response to a 1996 QCB Order, MRRC completed a feasibility study in 1997 describing measures designed to mitigate the effects of acid rock drainage. In December 1998, the QCB modified the 1996 order extending MRRC’s time to comply with water quality standards. In September 2002, the QCB adopted a new order requiring MRRC to adopt Best Management Practices (BMP) to control discharges of acid mine drainage, and again extended the time to comply with water quality standards until September 2007. During that time, implementation of BMP further reduced impacts of acid rock drainage; however, full compliance has not been achieved. The QCB is presently renewing MRRC’s discharge permit and will concurrently issue a new order. It is expected that the new 10-year permit will include an order requiring continued implementation of BMP through 2033 to address residual discharges of acid rock drainage. The Company currently estimates that it will spend between approximately $14.1 million and $16.1 million for remediation at these sites over the next 30 years and has accrued a reserve at the low end of this range. Lead Refinery Site U.S.S. Lead Refinery, Inc. (Lead Refinery), a non-operating wholly owned subsidiary of MRRC, has conducted corrective action and interim remedial activities (collectively, Site Activities) at Lead Refinery’s East Chicago, Indiana site pursuant to the Resource Conservation and Recovery Act since December 1996. Although the Site Activities have been substantially concluded, Lead Refinery is required to perform monitoring and maintenance-related activities pursuant to a post-closure permit issued by the Indiana Department of Environmental Management effective as of March 2, 2013. Approximate costs to comply with the post-closure permit, including associated general and administrative costs, are estimated at between $1.6 million and $2.2 million over the next 13 years. The Company has recorded a reserve at the low end of this range. On April 9, 2009, pursuant to the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA), the U.S. Environmental Protection Agency (EPA) added the Lead Refinery site and surrounding properties to the National Priorities List (NPL). On July 17, 2009, Lead Refinery received a written notice from the EPA indicating that it may be a PRP under CERCLA due to the release or threat of release of hazardous substances including lead into properties surrounding the Lead Refinery NPL site. The EPA identified two other PRPs in connection with that matter. In November 2012, the EPA adopted a remedy for the surrounding properties and in September 2014, the EPA announced that it had entered into a settlement with the two other PRPs whereby they will pay approximately $26.0 million to fund the cleanup of approximately 300 properties surrounding the Lead Refinery NPL site (zones 1 and 3 of operable unit 1) and perform certain remedial action tasks. On November 8, 2016, the Company, its subsidiary Arava Natural Resources Company, Inc. (Arava), and Arava’s subsidiary MRRC each received general notice letters from the EPA asserting that they may be PRPs in connection with the Lead Refinery NPL site. The Company, Arava, and MRRC have denied liability for any remedial action and response costs associated with the Lead Refinery NPL site. In June 2017, the EPA requested that Lead Refinery conduct, and the Company fund, a remedial investigation and feasibility study (RI/FS) of operable unit 2 of the Lead Refinery NPL site pursuant to a proposed administrative settlement agreement and order on consent. The Company and Lead Refinery entered into that agreement in September 2017. The Company has made a capital contribution to Lead Refinery to conduct the RI/FS with respect to operable unit 2 and has provided financial assurance in the amount of $1.0 million. The RI/FS remains ongoing, and the Company has reserved currently estimated costs associated with its completion. The EPA has also asserted its position that the Company is a responsible party for the Lead Refinery NPL site, and accordingly is responsible for a share of remedial action and response costs at both operable units 1 and 2 of the site. In January 2018, the EPA issued two unilateral administrative orders (UAOs) directing the Company, Lead Refinery, and four other PRPs to conduct soil and interior remediation of certain residences at the Lead Refinery NPL site (zones 2 and 3 of operable unit 1). Subsequent thereto, the Company and Lead Refinery have reached agreement with the four other PRPs to implement these two UAOs, with the Company agreeing to pay, on an interim basis, (i) an estimated $4.5 million (subject to potential change through a future reallocation process) of the approximately $25.0 million the PRPs then estimated it would cost to implement the UAOs, which estimate is subject to change, and (ii) $2.0 million relating to past costs incurred by other PRPs for work conducted at the site, as well as the possibility of up to $0.7 million in further payments for ongoing work by those PRPs. As of June 29, 2024, the Company has made payments of approximately $7.6 million related to the aforementioned agreement with the other PRPs. The Company disputes that it was properly named in the UAOs. In March 2022, Lead Refinery entered into an administrative settlement agreement and order on consent with the EPA, along with the four other PRPs, which involves payment of certain past and future costs relating to operable unit 1, in exchange for certain releases and contribution protection for the Company, Lead Refinery, and their respective affiliates relating to that operable unit. The settlement became effective in September 2022. The Company reserved $3.3 million for this settlement at the end of 2021. In March 2018, a group of private plaintiffs sued the Company, Arava, MRRC, and Lead Refinery, along with other defendants, in civil tort action relating to the site. The Company, Arava, and MRRC have been voluntarily dismissed from that litigation without prejudice. In July 2024, Lead Refinery was granted partial judgment on the pleadings with respect to plaintiffs’ amended complaint and reached an agreement to settle the litigation for a payment of approximately $0.1 million. At this juncture, the Company is unable to determine the likelihood of a material adverse outcome or the amount or range of a potential loss in excess of the current reserve with respect to any remedial action or other litigation relating to the Lead Refinery NPL site, either at Lead Refinery’s former operating site (operable unit 2) or the adjacent residential area (operable unit 1), including, but not limited to, EPA oversight costs for which the EPA may attempt to seek reimbursement from the Company, and past costs for which other PRPs may attempt to seek contribution from the Company. Bonita Peak Mining District Following an August 2015 spill from the Gold King Mine into the Animas River near Silverton, Colorado, the EPA listed the Bonita Peak Mining District on the NPL. Said listing was finalized in September 2016. The Bonita Peak Mining District encompasses 48 mining sites within the Animas River watershed, including the Sunnyside Mine, the American Tunnel, and the Sunbank Group. On or about July 25, 2017, Washington Mining Company (Washington Mining) (a wholly-owned subsidiary of the Company’s wholly-owned subsidiary, Arava), received a general notice letter from the EPA stating that Washington Mining may be a PRP under CERCLA in connection with the Bonita Peak Mining District site and therefore responsible for the remediation of certain portions of the site, along with related costs incurred by the EPA. Shortly thereafter, the Company received a substantively identical letter asserting that it may be a PRP at the site and similarly responsible for the cleanup of certain portions of the site. The general notice letters identify one other PRP at the site, and do not require specific action by Washington Mining or the Company at this time. At this juncture, the Company is unable to determine the likelihood of a materially adverse outcome or the amount or range of a potential loss with respect to any remedial action related to the Bonita Peak Mining District NPL site. Operating Properties Mueller Copper Tube Products, Inc. In 1999, Mueller Copper Tube Products, Inc. (MCTP), a wholly owned subsidiary, commenced a cleanup and remediation of soil and groundwater at its Wynne, Arkansas plant to remove trichloroethylene, a cleaning solvent formerly used by MCTP. On August 30, 2000, MCTP received approval of its Final Comprehensive Investigation Report and Storm Water Drainage Investigation Report addressing the treatment of soils and groundwater from the Arkansas Department of Environmental Quality (ADEQ). The Company established a reserve for this project in connection with the acquisition of MCTP in 1998. Effective November 17, 2008, MCTP entered into a Settlement Agreement and Administrative Order by Consent to submit a Supplemental Investigation Work Plan (SIWP) and subsequent Final Remediation Work Plan (RWP) for the site. By letter dated January 20, 2010, ADEQ approved the SIWP as submitted, with changes acceptable to the Company. On December 16, 2011, MCTP entered into an amended Administrative Order by Consent to prepare and implement a revised RWP regarding final remediation for the Site. The remediation system was activated in February 2014. Costs to implement the work plans, including associated general and administrative costs, are estimated to approximate $0.4 million over the next two years. United States Department of Commerce Antidumping Review On December 24, 2008, the Department of Commerce (DOC) initiated an antidumping administrative review of the antidumping duty order covering circular welded non-alloy steel pipe and tube from Mexico for the November 1, 2007 through October 31, 2008 period of review. The DOC selected Mueller Comercial as a respondent in the review. On April 19, 2010, the DOC published the final results of the review and assigned Mueller Comercial an antidumping duty rate of 48.33 percent. On May 25, 2010, the Company appealed the final results to the U.S. Court of International Trade (CIT). On December 16, 2011, the CIT issued a decision remanding the Department’s final results. While the matter was still pending, the Company and the United States reached an agreement to settle the appeal. Subject to the conditions of the agreement, the Company anticipated that certain of its subsidiaries would incur antidumping duties on subject imports made during the period of review and, as such, established a reserve for this matter. After the lapse of the statutory period of time during which U.S. Customs and Border Protection (CBP) was required, but failed, to liquidate the entries at the settled rate, the Company released the reserve. Between October 30, 2015 and November 27, 2015, CBP sent a series of invoices to Southland Pipe Nipples Co., Inc. (Southland), requesting payment of approximately $3.0 million in duties and interest in connection with 795 import entries made during the November 1, 2007 through October 31, 2008 period. On January 26, 2016 and January 27, 2016, Southland filed protests with CBP in connection with these invoices, noting that CBP’s asserted claims were not made in accordance with applicable law, including statutory provisions governing deemed liquidation. The Company believes in the merits of the legal objections raised in Southland’s protests, and CBP’s response to Southland’s protests is currently pending. Given the procedural posture and issues raised by this legal dispute, the Company cannot estimate the amount of potential duty liability, if any, that may result from CBP’s asserted claims. Guarantees Guarantees, in the form of letters of credit, are issued by the Company generally to assure the payment of insurance deductibles, certain retiree health benefits, and debt at certain unconsolidated affiliates. The terms of the guarantees are generally one year but are renewable annually as required. These letters are primarily backed by the Company’s revolving credit facility. The maximum payments that the Company could be required to make under its guarantees at June 29, 2024 were $28.9 million. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 29, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company’s effective tax rate for the second quarter of 2024 was 26 percent compared with 26 percent for the same period last year. The primary items impacting the effective tax rate for the second quarter of 2024 were increases related to the provision for state income taxes, net of the federal benefit, of $6.1 million, the effect of foreign tax rates higher than statutory tax rates and other foreign adjustments of $2.3 million, and other items of $3.2 million. The items impacting the effective tax rate for the second quarter of 2023 were increases related to the provision for state income taxes, net of the federal benefit, of $7.1 million and the effect of foreign tax rates higher than statutory tax rates and other foreign adjustments of $2.6 million. The Company’s effective tax rate for the first half of 2024 was 26 percent compared with 26 percent for the same period last year. The items impacting the effective tax rate for the first half of 2024 were increases related to the provision for state income taxes, net of the federal benefit, of $12.0 million, the effect of foreign tax rates higher than statutory tax rates and other foreign adjustments of $3.9 million, and other items of $5.3 million. The items impacting the effective tax rate for the first half of 2023 were increases related to the provision for state income taxes, net of the federal benefit, of $15.0 million and the effect of foreign tax rates higher than statutory tax rates and other foreign adjustments of $4.6 million. The Company files a consolidated U.S. federal income tax return and numerous consolidated and separate-company income tax returns in many state, local, and foreign jurisdictions. The statute of limitations is open for the Company’s federal tax return for 2020 and all subsequent years. The statutes of limitations for most state returns are open for 2020 and all subsequent years, and some state and foreign returns are also open for some earlier tax years due to differing statute periods. While the Company believes that it is adequately reserved for possible audit adjustments, the final resolution of these examinations cannot be determined with certainty and could result in final settlements that differ from current estimates. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) AOCI includes certain foreign currency translation adjustments from those subsidiaries not using the U.S. dollar as their functional currency, net deferred gains and losses on certain derivative instruments accounted for as cash flow hedges, adjustments to pension and OPEB liabilities, and other comprehensive income attributable to unconsolidated affiliates. The following tables provide changes in AOCI by component, net of taxes and noncontrolling interests (amounts in parentheses indicate debits to AOCI): For the Six Months Ended June 29, 2024 (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Derivatives Pension/OPEB Liability Adjustment Attributable to Unconsol. Affiliates Total Balance as of December 30, 2023 $ (48,076) $ 213 $ (2,630) $ 3,272 $ (47,221) Other comprehensive (loss) income before reclassifications (10,882) 1,151 37 (1,583) (11,277) Amounts reclassified from AOCI — (1,570) (94) — (1,664) Net current-period other comprehensive loss (10,882) (419) (57) (1,583) (12,941) Balance as of June 29, 2024 $ (58,958) $ (206) $ (2,687) $ 1,689 $ (60,162) For the Six Months Ended July 1, 2023 (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Derivatives Pension/OPEB Liability Adjustment Attributable to Unconsol. Affiliates Total Balance as of December 31, 2022 $ (69,238) $ 1,486 $ 1,222 $ 2,355 $ (64,175) Other comprehensive income before reclassifications 18,012 1,006 148 1,638 20,804 Amounts reclassified from AOCI — (2,731) (147) — (2,878) Net current-period other comprehensive income (loss) 18,012 (1,725) 1 1,638 17,926 Balance as of July 1, 2023 $ (51,226) $ (239) $ 1,223 $ 3,993 $ (46,249) Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended For the Six Months Ended (In thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Affected line item Unrealized gains on derivative commodity contracts $ (1,531) $ (960) $ (2,014) $ (3,511) Cost of goods sold 334 218 444 780 Income tax expense $ (1,197) $ (742) $ (1,570) $ (2,731) Net of tax and noncontrolling interests Amortization of net (gain) loss and prior service (credit) cost on employee benefit plans $ (67) $ (99) $ (132) $ (197) Other (expense) income, net 19 25 38 50 Income tax expense $ (48) $ (74) $ (94) $ (147) Net of tax and noncontrolling interests |
Insurance Claims
Insurance Claims | 6 Months Ended |
Jun. 29, 2024 | |
Insurance [Abstract] | |
Insurance Claims | Insurance Claim In March 2023, a portion of the Company’s Covington, Tennessee manufacturing operation was damaged by a tornado. The extent of the damage to inventories, production equipment, and building structures is currently being assessed. The total value of the loss, including business interruption, cannot be determined at this time, but is expected to be covered by property and business interruption insurance subject to customary deductibles. Any gain resulting from insurance proceeds for property damage in excess of the net book value of the related property will be recognized in income upon settlement of the claim. In addition, the Company has deferred recognition of direct, identifiable costs associated with this matter. These costs will also be recognized upon settlement of the insurance claim. As of June 29, 2024, the Company has received advances totaling $25.0 million from the insurance company for this claim, of which $15.0 million was received during 2024. These advances, net of the book value of damaged inventories, equipment, and buildings and direct cleanup and other out of pocket costs t otaled $13.4 million, c lassified as other current liabilities on the Condensed Consolidated Balance Sheet at June 29, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pay vs Performance Disclosure | ||||
Net income attributable to Mueller Industries, Inc. | $ 160,165 | $ 177,711 | $ 298,528 | $ 350,950 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 29, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Recent Accounting Standards (Po
Recent Accounting Standards (Policies) | 6 Months Ended |
Jun. 29, 2024 | |
Accounting Changes and Error Corrections [Abstract] | |
Recently Adopted and Issued Accounting Standards | Adopted In June 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions . The new guidance was issued to clarify existing guidance measuring the fair value of an equity security subject to contractual restrictions that prohibit the sale of an equity security and introduce new disclosure requirements for applicable equity securities. The ASU was effective for fiscal years beginning after December 15, 2023 for public entities. The guidance requires prospective adoption, and early adoption was permitted. The Company adopted the ASU during the first quarter of 2024. The adoption of the ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements. Issued In March 2024, the Securities and Exchange Commission issued final rules on the enhancement and standardization of climate-related disclosures. The rules require disclosure of, among other things: material climate-related risks, activities to mitigate or adapt to such risks, governance and management of such risks, and material greenhouse gas (GHG) emissions from operations owned or controlled (Scope 1) and/or indirect emissions from purchased energy consumed in operations (Scope 2). Additionally, the rules require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to certain materiality thresholds. The rules will become effective on a phased-in timeline in fiscal years beginning in 2025. The Company is in the process of analyzing the impact of the rules on its disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The new guidance primarily enhances and expands both the income tax rate reconciliation disclosure and the income taxes paid disclosure. The ASU is effective for annual periods beginning after December 15, 2024 for public entities on a prospective basis. Early adoption is permitted. The Company is in the process of analyzing the impact of the standard on its disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The new guidance requires a public entity to disclose significant segment expenses and other segment items on an annual and interim basis and to provide in interim periods all disclosures about a reportable segment’s profit or loss and assets that are currently required annually. The ASU applies to all public entities and is effective for fiscal years beginning after December 15, 2023, and for interim periods beginning after December 15, 2024. The guidance requires retrospective adoption, and early adoption is permitted. The Company is in the process of analyzing the impact of the standard on its disclosures. |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Business Combinations [Abstract] | |
Summary of Condensed Pro Forma Consolidated Results of Operations as if Acquisition Occurred at Beginning of Period | The following table presents condensed pro forma consolidated results of operations as if the Nehring acquisition had occurred at the beginning of the periods presented. The pro forma information does not purport to be indicative of the results that would have been obtained if the operations had actually been combined during the periods presented, and is not necessarily indicative of operating results to be expected in future periods. The most significant pro forma adjustments to the historical results of operations relate to the application of purchase accounting, the financing structure, and estimated income taxes. For the Six Months Ended (In thousands, except per share data) June 29, 2024 July 1, 2023 Net sales $ 1,981,861 $ 2,081,325 Net income 306,525 371,445 Basic earnings per share $ 2.75 $ 3.34 Diluted earnings per share 2.69 3.28 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information | Summarized segment information is as follows: For the Quarter Ended June 29, 2024 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 688,469 $ 195,341 $ 130,532 $ (16,597) $ 997,745 Cost of goods sold 500,826 159,265 82,291 (17,392) 724,990 Depreciation and amortization 4,932 2,368 1,646 1,072 10,018 Selling, general, and administrative expense 20,453 4,015 7,602 20,661 52,731 Operating income 162,258 29,693 38,993 (20,938) 210,006 Interest expense (107) Interest income 14,383 Other expense, net (1,356) Income before income taxes $ 222,926 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 Realized and unrealized gains on short-term investments 20,820 Other income, net 1,841 Income before income taxes $ 240,958 Segment information (continued): For the Six Months Ended June 29, 2024 (In thousands) Piping Systems Industrial Metals Climate Corporate and Eliminations Total Net sales $ 1,278,637 $ 351,408 $ 247,342 $ (29,988) $ 1,847,399 Cost of goods sold 921,767 285,869 157,882 (31,825) 1,333,693 Depreciation and amortization 9,492 4,288 3,241 2,166 19,187 Selling, general, and administrative expense 42,440 7,287 14,651 36,710 101,088 Operating income 304,938 53,964 71,568 (37,039) 393,431 Interest expense (222) Interest income 31,628 Realized and unrealized gains on short-term investments 365 Other expense, net (726) Income before income taxes $ 424,476 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 Realized and unrealized gains on short-term investments 22,730 Other income, net 2,167 Income before income taxes $ 478,392 The following table presents total assets attributable to each segment: (In thousands) June 29, December 30, 2023 Segment assets: Piping Systems $ 1,112,550 $ 1,029,821 Industrial Metals 821,011 157,761 Climate 275,872 252,561 General Corporate 856,752 1,319,158 $ 3,066,185 $ 2,759,301 |
Schedule of Disaggregation of Revenue From Contracts with Customers | The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category: For the Quarter Ended June 29, 2024 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 568,849 $ — $ — $ 568,849 Brass rod and forgings — 131,709 — 131,709 OEM components, tube & assemblies — 20,418 30,569 50,987 Valves and plumbing specialties 119,620 — — 119,620 Flex duct and other HVAC components — — 99,963 99,963 Other — 43,214 — 43,214 688,469 195,341 130,532 1,014,342 Intersegment sales (16,597) Net sales $ 997,745 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 Disaggregation of revenue from contracts with customers (continued): For the Six Months Ended June 29, 2024 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 1,047,325 $ — $ — $ 1,047,325 Brass rod and forgings — 255,768 — 255,768 OEM components, tube & assemblies — 39,375 60,586 99,961 Valves and plumbing specialties 231,312 — — 231,312 Flex duct and other HVAC components — — 186,756 186,756 Other — 56,265 — 56,265 1,278,637 351,408 247,342 1,877,387 Intersegment sales (29,988) Net sales $ 1,847,399 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 |
Cash, Cash Equivalents, and R_2
Cash, Cash Equivalents, and Restricted Cash (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | (In thousands) June 29, December 30, Cash & cash equivalents $ 825,655 $ 1,170,893 Restricted cash included within other current assets 16,258 3,228 Restricted cash included within other assets 102 102 Total cash, cash equivalents, and restricted cash $ 842,015 $ 1,174,223 |
Schedule of Restrictions on Cash and Cash Equivalents | (In thousands) June 29, December 30, Cash & cash equivalents $ 825,655 $ 1,170,893 Restricted cash included within other current assets 16,258 3,228 Restricted cash included within other assets 102 102 Total cash, cash equivalents, and restricted cash $ 842,015 $ 1,174,223 |
Inventories (Tables)
Inventories (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | (In thousands) June 29, December 30, Raw materials and supplies $ 115,258 $ 111,843 Work-in-process 80,599 61,793 Finished goods 222,501 220,629 Valuation reserves (12,141) (14,017) Inventories $ 406,217 $ 380,248 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments Designated as Cash Flow Hedges Reflected in the Financial Statements | The following table summarizes the location and fair value of the derivative instruments and disaggregates the net derivative assets and liabilities into gross components on a contract-by-contract basis: Asset Derivatives Liability Derivatives Fair Value Fair Value (In thousands) Balance Sheet Location June 29, December 30, Balance Sheet Location June 29, December 30, Commodity contracts - gains Other current assets $ — $ 589 Other current liabilities $ 2,131 $ 16 Commodity contracts - losses Other current assets — (281) Other current liabilities (9,919) (383) Total derivatives (1) $ — $ 308 $ (7,788) $ (367) (1) Does not include the impact of cash collateral provided to counterparties. |
Schedule of Fair Value Hedges | The following tables summarize the effects of derivative instruments on the Company’s Condensed Consolidated Statements of Income: For the Quarter Ended For the Six Months Ended (In thousands) Location June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Undesignated derivatives: (Loss) gain on commodity contracts (nonqualifying) Cost of goods sold $ (7,146) $ 427 $ (6,658) $ (2,057) |
Schedule of Activities Related to Derivative Instruments Classified as Cash Flow Hedges | The following tables summarize amounts recognized in and reclassified from AOCI during the period: For the Quarter Ended June 29, 2024 (In thousands) Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 462 Cost of goods sold $ (1,197) Other (11) Other — Total $ 451 Total $ (1,197) Amounts recognized in and reclassified from AOCI (continued): For the Quarter Ended July 1, 2023 (In thousands) (Loss) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ (1,961) Cost of goods sold $ (742) Other 24 Other — Total $ (1,937) Total $ (742) For the Six Months Ended June 29, 2024 (In thousands) Gain Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 1,129 Cost of goods sold $ (1,570) Other 22 Other — Total $ 1,151 Total $ (1,570) For the Six Months Ended July 1, 2023 (In thousands) Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax Classification Gains (Losses) Gain Reclassified from AOCI (Effective Portion), Net of Tax Cash flow hedges: Commodity contracts $ 1,008 Cost of goods sold $ (2,731) Other (2) Other — Total $ 1,006 Total $ (2,731) |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Retirement Benefits [Abstract] | |
Schedule of Components of Net Periodic Benefit Cost (Income) | The components of net periodic benefit cost (income) are as follows: For the Quarter Ended For the Six Months Ended (In thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Pension benefits: Interest cost $ 582 $ 595 $ 1,163 $ 1,189 Expected return on plan assets (604) (842) (1,208) (1,683) Amortization of net loss 33 — 66 — Net periodic benefit cost (income) $ 11 $ (247) $ 21 $ (494) Other benefits: Service cost $ 55 $ 50 $ 109 $ 101 Interest cost 130 128 261 256 Amortization of prior service cost (credit) — — (1) (1) Amortization of net gain (100) (99) (197) (196) Net periodic benefit cost $ 85 $ 79 $ 172 $ 160 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 29, 2024 | |
Equity [Abstract] | |
Schedule of Changes in AOCI by Component, Net of Taxes and Noncontrolling Interest | The following tables provide changes in AOCI by component, net of taxes and noncontrolling interests (amounts in parentheses indicate debits to AOCI): For the Six Months Ended June 29, 2024 (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Derivatives Pension/OPEB Liability Adjustment Attributable to Unconsol. Affiliates Total Balance as of December 30, 2023 $ (48,076) $ 213 $ (2,630) $ 3,272 $ (47,221) Other comprehensive (loss) income before reclassifications (10,882) 1,151 37 (1,583) (11,277) Amounts reclassified from AOCI — (1,570) (94) — (1,664) Net current-period other comprehensive loss (10,882) (419) (57) (1,583) (12,941) Balance as of June 29, 2024 $ (58,958) $ (206) $ (2,687) $ 1,689 $ (60,162) For the Six Months Ended July 1, 2023 (In thousands) Cumulative Translation Adjustment Unrealized Gain (Loss) on Derivatives Pension/OPEB Liability Adjustment Attributable to Unconsol. Affiliates Total Balance as of December 31, 2022 $ (69,238) $ 1,486 $ 1,222 $ 2,355 $ (64,175) Other comprehensive income before reclassifications 18,012 1,006 148 1,638 20,804 Amounts reclassified from AOCI — (2,731) (147) — (2,878) Net current-period other comprehensive income (loss) 18,012 (1,725) 1 1,638 17,926 Balance as of July 1, 2023 $ (51,226) $ (239) $ 1,223 $ 3,993 $ (46,249) |
Schedule of Reclassification Adjustments Out of AOCI | Reclassification adjustments out of AOCI were as follows: Amount reclassified from AOCI For the Quarter Ended For the Six Months Ended (In thousands) June 29, 2024 July 1, 2023 June 29, 2024 July 1, 2023 Affected line item Unrealized gains on derivative commodity contracts $ (1,531) $ (960) $ (2,014) $ (3,511) Cost of goods sold 334 218 444 780 Income tax expense $ (1,197) $ (742) $ (1,570) $ (2,731) Net of tax and noncontrolling interests Amortization of net (gain) loss and prior service (credit) cost on employee benefit plans $ (67) $ (99) $ (132) $ (197) Other (expense) income, net 19 25 38 50 Income tax expense $ (48) $ (74) $ (94) $ (147) Net of tax and noncontrolling interests |
Earnings per Common Share (Deta
Earnings per Common Share (Details) | Oct. 20, 2023 | Sep. 26, 2023 shares | Jun. 29, 2024 shares | Dec. 30, 2023 shares | Sep. 25, 2023 shares |
Earnings Per Share [Abstract] | |||||
Common stock, shares authorized (in shares) | 250,000,000 | 250,000,000 | 250,000,000 | 100,000,000 | |
Stock split conversion ratio | 2 | 2 | |||
Dividend issued | 1 |
Acquisitions and Dispositions -
Acquisitions and Dispositions - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
May 28, 2024 | Jul. 03, 2023 | Jun. 29, 2024 | Sep. 30, 2023 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | Sep. 02, 2021 | |
Business Acquisition [Line Items] | |||||||||
Net sales | $ 997,745 | $ 896,984 | $ 1,847,399 | $ 1,868,176 | |||||
Heatlink Group, Inc. | Disposal Group, Disposed of by Means Other than Sale, Not Discontinued Operations, Exchange | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership interest transferred (as a percent) | 100% | ||||||||
Net sales of disposed of business | 15,600 | ||||||||
Operating income | $ 1,700 | ||||||||
Gain (loss) on disposal of businesses | $ 4,100 | ||||||||
Consideration for sale of businesses | $ 26,000 | ||||||||
Nehring Electrical Works Company | |||||||||
Business Acquisition [Line Items] | |||||||||
Consideration transferred net of working capital adjustments | $ 594,600 | ||||||||
Cash portion of acquisition price | 566,600 | ||||||||
Contingent earn out | 25,000 | ||||||||
Fair value of assets acquired | 164,500 | ||||||||
Fair value of property, plant and equipment acquired | 82,400 | ||||||||
Fair value of accounts receivable acquired | 44,200 | ||||||||
Fair value of inventories acquired | 36,100 | ||||||||
Fair value of other current assets acquired | 1,800 | ||||||||
Fair value of liabilities acquired | 27,800 | ||||||||
Fair value of accounts payable acquired | 19,600 | ||||||||
Fair value of other current liabilities acquired | 8,200 | ||||||||
Tax deductible goodwill and intangible assets | $ 457,900 | ||||||||
Net sales | $ 400,000 | ||||||||
Retail Distribution Business | |||||||||
Business Acquisition [Line Items] | |||||||||
Ownership interest acquired (as a percent) | 11% | 17% |
Acquisitions - Condensed Pro Fo
Acquisitions - Condensed Pro Forma Consolidated Results of Operations (Details) - Nehring Electrical Works Company - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | |
Jun. 29, 2024 | Jul. 01, 2023 | |
Business Acquisition [Line Items] | ||
Net sales | $ 1,981,861 | $ 2,081,325 |
Net income | $ 306,525 | $ 371,445 |
Basic earnings per share (in dollars per share) | $ 2.75 | $ 3.34 |
Diluted earnings per share (in dollars per share) | $ 2.69 | $ 3.28 |
Segment Information - Schedule
Segment Information - Schedule of Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | Dec. 30, 2023 | |
Summary of segment information [Abstract] | |||||
Net sales | $ 997,745 | $ 896,984 | $ 1,847,399 | $ 1,868,176 | |
Cost of goods sold | 724,990 | 639,272 | 1,333,693 | 1,318,070 | |
Depreciation and amortization | 10,018 | 10,416 | 19,187 | 21,073 | |
Selling, general, and administrative expense | 52,731 | 56,062 | 101,088 | 108,693 | |
Gain on insurance settlement | 0 | (19,466) | 0 | (19,466) | |
Operating income | 210,006 | 210,700 | 393,431 | 439,806 | |
Interest expense | (107) | (135) | (222) | (278) | |
Interest income | 14,383 | 7,732 | 31,628 | 13,967 | |
Realized and unrealized gains on short-term investments | 0 | 20,820 | 365 | 22,730 | |
Other (expense) income, net | (1,356) | 1,841 | (726) | 2,167 | |
Income before income taxes | 222,926 | 240,958 | 424,476 | 478,392 | |
Assets | 3,066,185 | 3,066,185 | $ 2,759,301 | ||
Operating Segments | |||||
Summary of segment information [Abstract] | |||||
Net sales | 1,014,342 | 908,225 | 1,877,387 | 1,888,892 | |
Operating Segments | Piping Systems | |||||
Summary of segment information [Abstract] | |||||
Net sales | 688,469 | 638,005 | 1,278,637 | 1,300,484 | |
Cost of goods sold | 500,826 | 452,866 | 921,767 | 920,476 | |
Depreciation and amortization | 4,932 | 5,252 | 9,492 | 10,810 | |
Selling, general, and administrative expense | 20,453 | 28,745 | 42,440 | 54,202 | |
Gain on insurance settlement | 0 | 0 | |||
Operating income | 162,258 | 151,142 | 304,938 | 314,996 | |
Assets | 1,112,550 | 1,112,550 | 1,029,821 | ||
Operating Segments | Industrial Metals | |||||
Summary of segment information [Abstract] | |||||
Net sales | 195,341 | 146,266 | 351,408 | 311,500 | |
Cost of goods sold | 159,265 | 123,097 | 285,869 | 256,267 | |
Depreciation and amortization | 2,368 | 1,804 | 4,288 | 3,576 | |
Selling, general, and administrative expense | 4,015 | 3,394 | 7,287 | 6,471 | |
Gain on insurance settlement | 0 | 0 | |||
Operating income | 29,693 | 17,971 | 53,964 | 45,186 | |
Assets | 821,011 | 821,011 | 157,761 | ||
Operating Segments | Climate | |||||
Summary of segment information [Abstract] | |||||
Net sales | 130,532 | 123,954 | 247,342 | 276,908 | |
Cost of goods sold | 82,291 | 77,064 | 157,882 | 165,876 | |
Depreciation and amortization | 1,646 | 2,202 | 3,241 | 4,355 | |
Selling, general, and administrative expense | 7,602 | 7,087 | 14,651 | 15,088 | |
Gain on insurance settlement | (19,466) | (19,466) | |||
Operating income | 38,993 | 57,067 | 71,568 | 111,055 | |
Assets | 275,872 | 275,872 | 252,561 | ||
Corporate and Eliminations | |||||
Summary of segment information [Abstract] | |||||
Net sales | (16,597) | (11,241) | (29,988) | (20,716) | |
Cost of goods sold | (17,392) | (13,755) | (31,825) | (24,549) | |
Depreciation and amortization | 1,072 | 1,158 | 2,166 | 2,332 | |
Selling, general, and administrative expense | 20,661 | 16,836 | 36,710 | 32,932 | |
Gain on insurance settlement | 0 | 0 | |||
Operating income | (20,938) | $ (15,480) | (37,039) | $ (31,431) | |
Assets | $ 856,752 | $ 856,752 | $ 1,319,158 |
Segment Information - Schedul_2
Segment Information - Schedule of Disaggregation of Revenue From Contracts with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ 997,745 | $ 896,984 | $ 1,847,399 | $ 1,868,176 |
Operating Segments | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 1,014,342 | 908,225 | 1,877,387 | 1,888,892 |
Operating Segments | Piping Systems | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 688,469 | 638,005 | 1,278,637 | 1,300,484 |
Operating Segments | Industrial Metals | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 195,341 | 146,266 | 351,408 | 311,500 |
Operating Segments | Climate | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 130,532 | 123,954 | 247,342 | 276,908 |
Operating Segments | Tube and fittings | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 568,849 | 518,712 | 1,047,325 | 1,062,940 |
Operating Segments | Tube and fittings | Piping Systems | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 568,849 | 518,712 | 1,047,325 | 1,062,940 |
Operating Segments | Tube and fittings | Industrial Metals | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | Tube and fittings | Climate | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | Brass rod and forgings | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 131,709 | 113,563 | 255,768 | 243,903 |
Operating Segments | Brass rod and forgings | Piping Systems | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | Brass rod and forgings | Industrial Metals | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 131,709 | 113,563 | 255,768 | 243,903 |
Operating Segments | Brass rod and forgings | Climate | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | OEM components, tube & assemblies | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 50,987 | 54,080 | 99,961 | 109,991 |
Operating Segments | OEM components, tube & assemblies | Piping Systems | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | OEM components, tube & assemblies | Industrial Metals | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 20,418 | 21,073 | 39,375 | 43,582 |
Operating Segments | OEM components, tube & assemblies | Climate | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 30,569 | 33,007 | 60,586 | 66,409 |
Operating Segments | Valves and plumbing specialties | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 119,620 | 119,293 | 231,312 | 237,544 |
Operating Segments | Valves and plumbing specialties | Piping Systems | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 119,620 | 119,293 | 231,312 | 237,544 |
Operating Segments | Valves and plumbing specialties | Industrial Metals | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | Valves and plumbing specialties | Climate | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | Flex duct and other HVAC components | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 99,963 | 90,947 | 186,756 | 210,499 |
Operating Segments | Flex duct and other HVAC components | Piping Systems | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | Flex duct and other HVAC components | Industrial Metals | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | Flex duct and other HVAC components | Climate | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 99,963 | 90,947 | 186,756 | 210,499 |
Operating Segments | Other | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 43,214 | 11,630 | 56,265 | 24,015 |
Operating Segments | Other | Piping Systems | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Operating Segments | Other | Industrial Metals | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 43,214 | 11,630 | 56,265 | 24,015 |
Operating Segments | Other | Climate | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | 0 | 0 | 0 | 0 |
Intersegment sales | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Net sales | $ (16,597) | $ (11,241) | $ (29,988) | $ (20,716) |
Cash, Cash Equivalents, and R_3
Cash, Cash Equivalents, and Restricted Cash - Schedule of Cash and Cash Equivalents and Restrictions on Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 | Jul. 01, 2023 | Dec. 31, 2022 |
Cash and Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 825,655 | $ 1,170,893 | ||
Restricted cash included within other current assets | 16,258 | 3,228 | ||
Restricted cash included within other assets | 102 | 102 | ||
Total cash, cash equivalents, and restricted cash | $ 842,015 | $ 1,174,223 | $ 773,381 | $ 465,296 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 115,258 | $ 111,843 |
Work-in-process | 80,599 | 61,793 |
Finished goods | 222,501 | 220,629 |
Valuation reserves | (12,141) | (14,017) |
Inventories | $ 406,217 | $ 380,248 |
Financial Instruments - Narrati
Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 29, 2024 | Dec. 30, 2023 | |
Derivative [Line Items] | ||
Restricted cash in other current assets as collateral related to open derivative contracts | $ 16,100 | $ 3,200 |
Commodity contracts | ||
Derivative [Line Items] | ||
Deferred net losses, net of tax, included in AOCI | (348) | |
Cash Flow Hedging | Commodity contracts | Long | ||
Derivative [Line Items] | ||
Open option contracts written, at fair value | $ 18,500 | |
Time period for open copper future contract purchases | 13 months | |
Fair value of future contracts with net gain (loss) position | $ (453) | |
Fair Value Hedging | Commodity contracts | Short | ||
Derivative [Line Items] | ||
Fair value of future contracts with net gain (loss) position | (7,300) | |
Open future contracts to sell copper | $ 123,400 | |
Time period for open copper future contract sales | 6 months |
Financial Instruments - Schedul
Financial Instruments - Schedule of Derivative Instruments Designated as Cash Flow Hedges Reflected in the Financial Statements (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands | Jun. 29, 2024 | Dec. 30, 2023 |
Derivatives, Fair Value [Line Items] | ||
Total derivative assets | $ 0 | $ 308 |
Total derivative liabilities | (7,788) | (367) |
Other current assets | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Other current assets: Gain positions | 0 | 589 |
Other current assets: Loss positions | 0 | (281) |
Other current liabilities | Commodity contracts | ||
Derivatives, Fair Value [Line Items] | ||
Other current liability: Gain positions | 2,131 | 16 |
Other current liability: Loss positions | $ (9,919) | $ (383) |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Fair Value Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Commodity contracts | Cost of goods sold | Not Designated as Hedging Instrument | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
(Loss) gain on commodity contracts (nonqualifying) | $ (7,146) | $ 427 | $ (6,658) | $ (2,057) |
Financial Instruments - Sched_3
Financial Instruments - Schedule of Activities Related to Derivative Instruments Classified as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax | $ (746) | $ (2,679) | $ (419) | $ (1,725) |
Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax | 451 | (1,937) | 1,151 | 1,006 |
Gain Reclassified from AOCI (Effective Portion), Net of Tax | (1,197) | (742) | (1,570) | (2,731) |
Commodity contracts | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax | 462 | (1,961) | 1,129 | 1,008 |
Commodity contracts | Cash Flow Hedging | Cost of goods sold | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain Reclassified from AOCI (Effective Portion), Net of Tax | (1,197) | (742) | (1,570) | (2,731) |
Other | Cash Flow Hedging | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Gain (Loss) Recognized in AOCI (Effective Portion), Net of Tax | (11) | 24 | 22 | (2) |
Gain Reclassified from AOCI (Effective Portion), Net of Tax | $ 0 | $ 0 | $ 0 | $ 0 |
Investments in Unconsolidated_2
Investments in Unconsolidated Affiliates - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Schedule of Equity Method Investments [Line Items] | ||||
Net income (losses) | $ 163,447 | $ 179,551 | $ 305,156 | $ 354,644 |
Retail Distribution Business | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net income (losses) | 2,900 | 1,300 | 5,200 | 2,700 |
Tecumseh Products Holdings LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Net income (losses) | $ (4,000) | $ (600) | (14,300) | $ (3,000) |
Advances to affiliates | 12,500 | |||
Tecumseh Products Holdings LLC | Capital Contribution | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Advances to affiliates | 8,700 | |||
Tecumseh Products Holdings LLC | Note Receivable | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Advances to affiliates | $ 3,800 | |||
Tecumseh Products Holdings LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Interest in the joint venture, ownership percentage | 50% | 50% | ||
Retail Distribution Business | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Interest in the joint venture, ownership percentage | 28% | 28% |
Benefit Plans - Schedule of Com
Benefit Plans - Schedule of Components of Net Periodic Benefit Cost (Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Pension Benefits | ||||
Components of net periodic benefit cost (income) [Abstract] | ||||
Interest cost | $ 582 | $ 595 | $ 1,163 | $ 1,189 |
Expected return on plan assets | (604) | (842) | (1,208) | (1,683) |
Amortization of net gain (loss) | 33 | 0 | 66 | 0 |
Net periodic benefit cost (income) | 11 | (247) | 21 | (494) |
Other Benefits | ||||
Components of net periodic benefit cost (income) [Abstract] | ||||
Service cost | 55 | 50 | 109 | 101 |
Interest cost | 130 | 128 | 261 | 256 |
Amortization of prior service cost (credit) | 0 | 0 | (1) | (1) |
Amortization of net gain (loss) | (100) | (99) | (197) | (196) |
Net periodic benefit cost (income) | $ 85 | $ 79 | $ 172 | $ 160 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 1 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||
Jul. 24, 2024 USD ($) | Mar. 31, 2022 potentially_responsible_party | Feb. 28, 2022 USD ($) smelter_site ft | Jan. 31, 2018 USD ($) potentially_responsible_party unilateralAdministrativeOrder | Nov. 27, 2015 USD ($) | Aug. 31, 2015 mining_site | Jun. 29, 2024 USD ($) potentially_responsible_party smelter_site property | Oct. 31, 2008 import_entry | Dec. 25, 2021 USD ($) | Dec. 31, 2018 potentially_responsible_party | Nov. 08, 2016 USD ($) | Apr. 19, 2010 | |
Loss Contingencies [Line Items] | ||||||||||||
Term of guarantees | 1 year | |||||||||||
Payments required to be made under guarantees, maximum | $ 28.9 | |||||||||||
United States Department of Commerce Antidumping Review | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Assignment of antidumping duty rate on U.S. imports by Company subsidiaries (as a percent) | 48.33% | |||||||||||
Payment for interest and duties | $ 3 | |||||||||||
Number of import entries | import_entry | 795 | |||||||||||
Southeast Kansas Sites | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Accrual for environmental loss contingencies, gross | $ 5.6 | |||||||||||
Geographic boundary of sites | ft | 50 | |||||||||||
Southeast Kansas Sites | Non operating Properties | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of former smelter sites | smelter_site | 3 | 3 | ||||||||||
Number of parties involved in settlement negotiations | potentially_responsible_party | 2 | |||||||||||
Southeast Kansas Sites - Lanyon | Operating Properties | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of properties in remediation | property | 1,371 | |||||||||||
Number of surrounding properties | property | 300 | |||||||||||
Shasta Area Mine Sites | Non operating Properties | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Period of permit, implementation of best management practices | 10 years | |||||||||||
Estimated remediation costs, term | 30 years | |||||||||||
Shasta Area Mine Sites | Non operating Properties | Minimum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimated remediation costs | $ 14.1 | |||||||||||
Shasta Area Mine Sites | Non operating Properties | Maximum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimated remediation costs | $ 16.1 | |||||||||||
Lead Refinery Site | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Financial guarantee | $ 1 | |||||||||||
Lead Refinery Site | Non operating Properties | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of parties involved in settlement negotiations | potentially_responsible_party | 2 | |||||||||||
Estimated remediation costs, term | 13 years | |||||||||||
Amount other PRPs will pay to fund cleanup | $ 26 | |||||||||||
Number of surrounding properties | property | 300 | |||||||||||
Lead Refinery Site | Non operating Properties | Minimum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimated remediation costs | $ 1.6 | |||||||||||
Lead Refinery Site | Non operating Properties | Maximum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimated remediation costs | 2.2 | |||||||||||
Lead Refinery NPL Site | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of UAOs | unilateralAdministrativeOrder | 2 | |||||||||||
Number of PRPs | potentially_responsible_party | 4 | 4 | ||||||||||
Environmental reserves | $ 4.5 | |||||||||||
Site contingency, total costs | 25 | |||||||||||
Site contingency, amount agreed upon to pay PRPs for past costs | 2 | |||||||||||
Site contingency, additional reimbursement of past costs | $ 0.7 | |||||||||||
Contingency charge | $ 7.6 | |||||||||||
Reserve for settlement | $ 3.3 | |||||||||||
Lead Refinery NPL Site | Subsequent Event | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Litigation settlement | $ 0.1 | |||||||||||
Bonita Peak Mining District | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Number of mining sites | mining_site | 48 | |||||||||||
Mueller Copper Tube Products, Inc. | Operating Properties | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimated remediation costs, term | 2 years | |||||||||||
Mueller Copper Tube Products, Inc. | Operating Properties | Minimum | ||||||||||||
Loss Contingencies [Line Items] | ||||||||||||
Estimated remediation costs | $ 0.4 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 26% | 26% | 26% | 26% |
Provision for state income taxes, net of federal benefits | $ 6.1 | $ 7.1 | $ 12 | $ 15 |
Effect of foreign tax rates differential | 2.3 | $ 2.6 | 3.9 | $ 4.6 |
Other items | $ 3.2 | $ 5.3 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Changes in AOCI by Component, Net of Taxes and Noncontrolling Interest (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | $ 2,358,716 | |||
Total other comprehensive (loss) income, net | $ (8,931) | $ 5,408 | (14,085) | $ 17,890 |
Balance at end of period | 2,572,858 | 2,572,858 | ||
Total | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | (51,754) | (51,951) | (47,221) | (64,175) |
Other comprehensive (loss) income before reclassifications | (11,277) | 20,804 | ||
Amounts reclassified from AOCI | (1,664) | (2,878) | ||
Total other comprehensive (loss) income, net | (8,408) | 5,702 | (12,941) | 17,926 |
Balance at end of period | (60,162) | (46,249) | (60,162) | (46,249) |
Cumulative Translation Adjustment | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | (48,076) | (69,238) | ||
Other comprehensive (loss) income before reclassifications | (10,882) | 18,012 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Total other comprehensive (loss) income, net | (10,882) | 18,012 | ||
Balance at end of period | (58,958) | (51,226) | (58,958) | (51,226) |
Unrealized Gain (Loss) on Derivatives | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | 213 | 1,486 | ||
Other comprehensive (loss) income before reclassifications | 1,151 | 1,006 | ||
Amounts reclassified from AOCI | (1,570) | (2,731) | ||
Total other comprehensive (loss) income, net | (419) | (1,725) | ||
Balance at end of period | (206) | (239) | (206) | (239) |
Pension/OPEB Liability Adjustment | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | (2,630) | 1,222 | ||
Other comprehensive (loss) income before reclassifications | 37 | 148 | ||
Amounts reclassified from AOCI | (94) | (147) | ||
Total other comprehensive (loss) income, net | (57) | 1 | ||
Balance at end of period | (2,687) | 1,223 | (2,687) | 1,223 |
Attributable to Unconsol. Affiliates | ||||
Changes in accumulated other comprehensive income [Roll Forward] | ||||
Balance at beginning of period | 3,272 | 2,355 | ||
Other comprehensive (loss) income before reclassifications | (1,583) | 1,638 | ||
Amounts reclassified from AOCI | 0 | 0 | ||
Total other comprehensive (loss) income, net | (1,583) | 1,638 | ||
Balance at end of period | $ 1,689 | $ 3,993 | $ 1,689 | $ 3,993 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Schedule of Reclassification Adjustments Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 29, 2024 | Jul. 01, 2023 | Jun. 29, 2024 | Jul. 01, 2023 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | $ 58,384 | $ 62,122 | $ 110,218 | $ 123,479 |
Net of tax and noncontrolling interests | (160,165) | (177,711) | (298,528) | (350,950) |
Other (expense) income, net | (1,356) | 1,841 | (726) | 2,167 |
Unrealized gains on derivative commodity contracts | Amount reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Cost of goods sold | (1,531) | (960) | (2,014) | (3,511) |
Income tax expense | 334 | 218 | 444 | 780 |
Net of tax and noncontrolling interests | (1,197) | (742) | (1,570) | (2,731) |
Amortization of net (gain) loss and prior service (credit) cost on employee benefit plans | Amount reclassified from AOCI | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Income tax expense | 19 | 25 | 38 | 50 |
Net of tax and noncontrolling interests | (48) | (74) | (94) | (147) |
Other (expense) income, net | $ (67) | $ (99) | $ (132) | $ (197) |
Insurance Claims (Details)
Insurance Claims (Details) $ in Millions | 6 Months Ended |
Jun. 29, 2024 USD ($) | |
Insurance [Abstract] | |
Insurance advances | $ 25 |
Proceeds from insurance settlement received | 15 |
Insurance advances, net | $ 13.4 |