Segment Information | Segment Information The Company’s reportable segments are Piping Systems, Industrial Metals, and Climate. Each of the reportable segments is composed of certain operating segments that are aggregated primarily by the nature of products offered as follows: Piping Systems Piping Systems is composed of the following operating segments: Domestic Piping Systems Group (including Elkhart, acquired in fiscal August 2024), Great Lakes Copper, European Operations, Trading Group, Jungwoo-Mueller (the Company’s South Korean joint venture), and Mueller Middle East (the Company’s Bahraini joint venture). The Domestic Piping Systems Group manufactures and distributes copper tube, fittings, and line sets. These products are manufactured in the U.S., sold in the U.S., and exported to markets worldwide. Outside the U.S., Great Lakes Copper manufactures copper tube and line sets in Canada and sells the products primarily in the U.S. and Canada. European Operations manufactures copper tube in the U.K. which is sold primarily in Europe. The Trading Group manufactures pipe nipples and resells brass and plastic plumbing valves, malleable iron fittings, faucets, and plumbing specialty products in the U.S. and Mexico. Jungwoo-Mueller manufactures copper-based joining products that are sold worldwide. Mueller Middle East manufactures copper tube and serves markets in the Middle East and Northern Africa. The Piping Systems segment’s products are sold primarily to plumbing, refrigeration, and air-conditioning wholesalers, hardware wholesalers and co-ops, building product retailers, and air-conditioning OEMs. As disclosed in “ Note 2 – Acquisitions & Dispositions ,” during 2023 the Company exchanged the outstanding common stock of Heatlink Group for an additional equity interest in a limited liability company in the retail distribution business, resulting in the deconsolidation of Heatlink Group and the recognition of a $4.1 million gain. This gain is reported within Corporate and Eliminations. The results of Heatlink Group, prior to deconsolidation, were included within the Piping Systems segment. Industrial Metals Industrial Metals is composed of the following operating segments: Brass Rod, Impacts & Micro Gauge, Brass Value-Added Products, Precision Tube, and Nehring (acquired in fiscal June 2024). These businesses manufacture brass rod, impact extrusions and forgings, specialty copper, copper alloy, and aluminum tube, as well as a wide variety of end products including plumbing brass, automotive components, valves, fittings, gas assemblies, and high-quality wire and cable solutions. These products are manufactured in the U.S. and sold primarily to OEMs and utilities in the U.S., many of which are in the industrial, transportation, construction, heating, ventilation, and air-conditioning, plumbing, refrigeration, energy, telecommunication, and electrical transmission and distribution markets. Climate Climate is composed of the following operating segments: Refrigeration Products, Westermeyer, Turbotec, Flex Duct, and Linesets, Inc. These domestic businesses manufacture and fabricate valves, assemblies, high pressure components, coaxial heat exchangers, insulated HVAC flexible duct systems, and line sets primarily for the heating, ventilation, air-conditioning, and refrigeration markets in the U.S. During 2024 the Company sold two buildings, resulting in gains of $4.5 million recognized in the segment. During 2023 the Company settled the insurance claim related to the August 2022 fire in its Bluffs, Illinois manufacturing operation, resulting in a gain of $19.5 million recognized in the segment. The Company’s chief operating decision maker (CODM) is the chief executive officer. Performance of segments is generally evaluated by their operating income. Summarized product line, geographic, and segment information is shown in the following tables. Unallocated expenses include general corporate expenses, plus certain charges or credits not included in segment activity. Geographic sales data indicates the location from which products are shipped. During 2024, 2023, and 2022, no single customer exceeded 10 percent of worldwide sales. The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category: For the Year Ended December 28, 2024 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 2,063,777 $ — $ — $ 2,063,777 Brass rod, forgings, wire and cable — 695,883 — 695,883 OEM components and valves — 73,197 118,626 191,823 Valves and plumbing specialties 450,319 — — 450,319 Flex duct and other HVAC components — — 369,820 369,820 Other — 49,359 — 49,359 $ 2,514,096 $ 818,439 $ 488,446 $ 3,820,981 Intersegment sales (52,215) Net sales $ 3,768,766 Disaggregation of revenue from contracts with customers (continued): For the Year Ended December 30, 2023 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 1,926,975 $ — $ — $ 1,926,975 Brass rod and forgings — 454,246 — 454,246 OEM components, tube & assemblies — 79,879 120,923 200,802 Valves and plumbing specialties 455,598 — — 455,598 Flex duct and other HVAC components — — 379,867 379,867 Other — 43,750 — 43,750 $ 2,382,573 $ 577,875 $ 500,790 $ 3,461,238 Intersegment sales (40,893) Net sales $ 3,420,345 For the Year Ended December 31, 2022 (In thousands) Piping Systems Industrial Metals Climate Total Tube and fittings $ 2,211,963 $ — $ — $ 2,211,963 Brass rod and forgings — 510,865 — 510,865 OEM components, tube & assemblies — 74,647 121,004 195,651 Valves and plumbing specialties 518,121 — — 518,121 Flex duct and other HVAC components — — 529,303 529,303 Other — 59,177 — 59,177 $ 2,730,084 $ 644,689 $ 650,307 $ 4,025,080 Intersegment sales (42,625) Net sales $ 3,982,455 Summarized segment information is as follows: For the Year Ended December 28, 2024 (In thousands) Piping Systems Industrial Metals Climate Total External net sales $ 2,477,729 $ 803,277 $ 487,760 $ 3,768,766 Internal net sales 36,367 15,162 686 52,215 2,514,096 818,439 488,446 3,820,981 Reconciliation of net sales: Elimination of intersegment net sales (52,215) Total net sales 3,768,766 Less: (1) Manufacturing costs (2) 1,797,203 697,400 317,263 2,811,866 Sales and marketing expense 27,605 3,822 13,707 45,134 Distribution expense 39,108 2,237 2,137 43,482 Other segment items (3) 32,729 22,420 9,285 64,434 Segment operating income 617,451 92,560 146,054 856,065 Reconciliation of segment operating income: Corporate expenses (85,676) Interest expense (410) Interest income 53,468 Realized and unrealized gains on short-term investments 914 Environmental expense (2,218) Gain on extinguishment of NMTC liability 1,265 Other expense, net (2,946) Income before income taxes $ 820,462 (1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the CODM. Intersegment expenses are included within the amounts shown. (2) Manufacturing costs include material, manufacturing conversion costs, and freight. (3) Other segment items include administrative employee compensation expense, professional fees, foreign currency exchange gains/losses, other overhead costs, and other items such as gains/losses on sale of assets, impairment charges, and gains on insurance settlements (as applicable). Segment information (continued): For the Year Ended December 30, 2023 (In thousands) Piping Systems Industrial Metals Climate Total External net sales $ 2,355,516 $ 564,115 $ 500,714 $ 3,420,345 Internal net sales 27,057 13,760 76 40,893 2,382,573 577,875 500,790 3,461,238 Reconciliation of net sales: Elimination of intersegment net sales (40,893) Total net sales 3,420,345 Less: (1) Manufacturing costs (2) 1,703,161 487,245 318,588 2,508,994 Sales and marketing expense 26,549 2,412 13,981 42,942 Distribution expense 36,645 2,331 2,410 41,386 Other segment items (3) 46,979 9,508 (6,053) 50,434 Segment operating income 569,239 76,379 171,864 817,482 Reconciliation of segment operating income: Corporate expenses (61,429) Interest expense (1,221) Interest income 38,208 Realized and unrealized gains on short-term investments 41,865 Environmental expense (825) Gain on extinguishment of NMTC liability 7,534 Other income, net 3,618 Income before income taxes $ 845,232 Segment information (continued): For the Year Ended December 31, 2022 (In thousands) Piping Systems Industrial Metals Climate Total External net sales $ 2,706,065 $ 627,270 $ 649,120 $ 3,982,455 Internal net sales 24,019 17,419 1,187 42,625 2,730,084 644,689 650,307 4,025,080 Reconciliation of net sales: Elimination of intersegment net sales (42,625) Total net sales 3,982,455 Less: (1) Manufacturing costs (2) 1,960,977 550,040 425,236 2,936,253 Sales and marketing expense 24,292 2,358 19,131 45,781 Distribution expense 35,772 2,368 2,687 40,827 Other segment items (3) 37,981 7,459 15,186 60,626 Segment operating income 671,062 82,464 188,067 941,593 Reconciliation of segment operating income: Corporate expenses (64,444) Interest expense (810) Interest income 6,457 Realized and unrealized gains on short-term investments 2,918 Environmental expense (1,298) Pension plan termination expense (13,100) Other income, net 4,715 Income before income taxes $ 876,031 Other segment disclosures: For the Year Ended December 28, 2024 (In thousands) Piping Systems Industrial Metals Climate Corporate and Unallocated Total Depreciation and amortization (4) $ 20,048 $ 21,511 $ 6,535 $ 5,039 $ 53,133 Loss (gain) on sale of assets, net 257 — (4,471) (1,566) (5,780) Expenditures for long-lived assets (including those resulting from business acquisitions) 26,433 138,211 8,533 11,762 184,939 Segment assets 1,167,955 812,751 264,738 1,045,462 3,290,906 (4) The amount of depreciation and amortization disclosed by reportable segment is included within the other segment expense captions, such as manufacturing costs or other segment items. Other segment disclosures (continued): For the Year Ended December 30, 2023 (In thousands) Piping Systems Industrial Metals Climate Corporate and Unallocated Total Depreciation and amortization (4) $ 20,461 $ 7,273 $ 7,567 $ 4,653 $ 39,954 Gain on sale of businesses — — — (4,137) (4,137) Impairment charges 6,258 — — — 6,258 Gain on insurance settlement — — (19,466) — (19,466) Expenditures for long-lived assets (including those resulting from business acquisitions) 19,118 9,406 15,407 10,094 54,025 Segment assets 1,029,821 157,761 252,561 1,319,158 2,759,301 For the Year Ended December 31, 2022 (In thousands) Piping Systems Industrial Metals Climate Corporate and Unallocated Total Depreciation and amortization (4) $ 22,193 $ 7,647 $ 9,174 $ 4,717 $ 43,731 Gain on sale of assets, net — — — (6,373) (6,373) Expenditures for long-lived assets (including those resulting from business acquisitions) 20,694 6,905 2,611 7,429 37,639 Segment assets 1,088,940 160,702 279,940 712,817 2,242,399 Summarized geographic information is as follows: (In thousands) 2024 2023 2022 Net sales: United States $ 2,826,574 $ 2,572,141 $ 2,965,053 United Kingdom 280,726 270,128 297,582 Canada 344,614 339,682 410,679 Asia and the Middle East 231,092 153,816 217,750 Mexico 85,760 84,578 91,391 Total net sales $ 3,768,766 $ 3,420,345 $ 3,982,455 Long-lived assets: 2024 2023 2022 United States $ 412,294 $ 273,604 $ 266,571 United Kingdom 37,876 40,045 36,474 Canada 15,597 18,152 23,354 Asia and the Middle East 48,115 50,725 51,193 Mexico 1,249 2,639 2,358 Total long-lived assets $ 515,131 $ 385,165 $ 379,950 |