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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.

FORM 10-Q
☒QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly report ended September 25, 2021
OR
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to ______
Commission file number 1-6770
mli-20210925_g1.jpg
MUELLER INDUSTRIES INC.
(Exact name of registrant as specified in its charter)
Delaware25-0790410
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
150 Schilling BoulevardSuite 100 
ColliervilleTennessee38017
(Address of principal executive offices)(Zip Code)
(901) 753-3200
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolName of exchange on which registered
Common StockMLINYSE
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes   ☒    No   ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  
Yes   ☒    No   ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer☒Accelerated filer☐
Non-accelerated filer☐Smaller reporting company☐
Emerging growth company☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes   ☐    No   ☒

The number of shares of the Registrant’s common stock outstanding as of October 15, 2021 was 57,366,709.


MUELLER INDUSTRIES, INC.

FORM 10-Q

For the Quarterly Period Ended September 25, 2021
As used in this report, the terms “Company,” “Mueller,” and “Registrant” mean Mueller Industries, Inc. and its consolidated subsidiaries taken as a whole, unless the context indicates otherwise.

INDEX
  Page Number
 
   
  
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
   
 
 
   
2

PART I. FINANCIAL INFORMATION

Item 1.  Financial Statements

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

For the Quarter EndedFor the Nine Months Ended
(In thousands, except per share data)September 25, 2021September 26, 2020September 25, 2021September 26, 2020
Net sales$982,248 $619,105 $2,812,988 $1,722,192 
Cost of goods sold744,265 500,780 2,212,395 1,412,654 
Depreciation and amortization10,868 10,752 33,757 32,888 
Selling, general, and administrative expense48,524 38,346 137,891 117,749 
Gain on sale of businesses(54,759)— (54,759)— 
Litigation settlement, net— — — (21,933)
Operating income233,350 69,227 483,704 180,834 
Interest expense(1,116)(4,885)(7,451)(15,237)
Redemption premium— — (5,674)— 
Other (expense) income, net(2,548)522 (1,288)3,634 
Income before income taxes229,686 64,864 469,291 169,231 
Income tax expense(60,229)(15,450)(120,996)(42,623)
Income (loss) from unconsolidated affiliates, net of foreign tax2,799 (5,457)131 (20,213)
Consolidated net income172,256 43,957 348,426 106,395 
Net income attributable to noncontrolling interests(1,276)(1,255)(5,507)(3,322)
Net income attributable to Mueller Industries, Inc.$170,980 $42,702 $342,919 $103,073 
Weighted average shares for basic earnings per share56,077 55,816 55,979 55,805 
Effect of dilutive stock-based awards731 550 784 534 
Adjusted weighted average shares for diluted earnings per share
56,808 56,366 56,763 56,339 
Basic earnings per share$3.05 $0.77 $6.13 $1.85 
Diluted earnings per share$3.01 $0.76 $6.04 $1.83 
Dividends per share$0.13 $0.10 $0.39 $0.30 

See accompanying notes to condensed consolidated financial statements.

3

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

 For the Quarter EndedFor the Nine Months Ended
(In thousands)September 25, 2021September 26, 2020September 25, 2021September 26, 2020
Consolidated net income$172,256 $43,957 $348,426 $106,395 
Other comprehensive (loss) income, net of tax:    
Foreign currency translation(8,569)9,320 (667)(11,514)
Net change with respect to derivative instruments and hedging activities, net of tax of $(610), $(43), $204, and $(53)
2,122 151 (722)192 
Net change in pension and postretirement obligation adjustments, net of tax of $(137), $92, $(80), and $224
493 (170)476 (715)
Attributable to unconsolidated affiliates, net of tax of $(284), $(99), $(642), and $163
977 339 2,211 (564)
Total other comprehensive (loss) income, net(4,977)9,640 1,298 (12,601)
Consolidated comprehensive income167,279 53,597 349,724 93,794 
Comprehensive income attributable to noncontrolling interests(192)(2,207)(4,077)(3,062)
Comprehensive income attributable to Mueller Industries, Inc.$167,087 $51,390 $345,647 $90,732 

See accompanying notes to condensed consolidated financial statements.




4

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)September 25,
2021		December 26,
2020
Assets  
Current assets:  
Cash and cash equivalents
$104,789 $119,075 
Accounts receivable, less allowance for doubtful accounts of $2,687 in 2021 and $1,538 in 2020
493,960 357,532 
Inventories
405,590 315,002 
Other current assets
33,604 33,752 
Total current assets1,037,943 825,361 
Property, plant, and equipment, net370,222 376,572 
Operating lease right-of-use assets24,147 29,301 
Goodwill, net159,988 167,764 
Intangible assets, net63,579 77,207 
Investments in unconsolidated affiliates65,000 37,976 
Other assets7,658 14,387 
Total assets$1,728,537 $1,528,568 
Liabilities  
Current liabilities:  
Current portion of debt
$1,110 $41,283 
Accounts payable
180,509 147,741 
Accrued wages and other employee costs
49,932 46,299 
Current portion of operating lease liabilities
6,193 6,259 
Other current liabilities
142,354 98,061 
Total current liabilities380,098 339,643 
Long-term debt, less current portion121,012 286,593 
Pension liabilities10,901 13,552 
Postretirement benefits other than pensions13,231 13,289 
Environmental reserves20,902 21,256 
Deferred income taxes13,393 16,842 
Noncurrent operating lease liabilities17,399 21,602 
Other noncurrent liabilities25,369 14,731 
Total liabilities602,305 727,508 
Equity  
Mueller Industries, Inc. stockholders' equity:  
Preferred stock - $1.00 par value; shares authorized 5,000,000; none outstanding
— — 
 Common stock - $.01 par value; shares authorized 100,000,000; issued 80,183,004; outstanding 57,367,709 in 2021 and 57,087,432 in 2020
802 802 
Additional paid-in capital283,285 280,051 
Retained earnings1,340,337 1,019,694 
Accumulated other comprehensive loss(52,155)(54,883)
Treasury common stock, at cost(464,707)(468,919)
Total Mueller Industries, Inc. stockholders' equity1,107,562 776,745 
Noncontrolling interests18,670 24,315 
Total equity1,126,232 801,060 
Commitments and contingencies— — 
Total liabilities and equity$1,728,537 $1,528,568 

See accompanying notes to condensed consolidated financial statements.
5

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

 For the Nine Months Ended
(In thousands)September 25, 2021September 26, 2020
Cash flows from operating activities  
Consolidated net income$348,426 $106,395 
Reconciliation of consolidated net income to net cash provided by operating activities:  
Depreciation and amortization33,932 33,127 
Stock-based compensation expense7,228 6,332 
Provision for doubtful accounts receivable1,310 953 
(Income) loss from unconsolidated affiliates(131)20,213 
Redemption premium5,674 — 
(Gain) loss on disposals of properties(1,135)144 
Gain on sale of businesses(54,759)— 
Impairment charges2,568 3,035 
Deferred income tax expense (benefit)6,304 (836)
Changes in assets and liabilities, net of effects of businesses acquired and sold:  
Receivables(155,103)(45,530)
Inventories(96,505)41,598 
Other assets(9,335)9,053 
Current liabilities85,523 25,913 
Other liabilities8,335 (5,813)
Other, net(851)2,294 
Net cash provided by operating activities181,481 196,878 
Cash flows from investing activities  
Capital expenditures(25,547)(29,204)
Acquisition of businesses, net of cash acquired(13,935)(72,648)
Proceeds from sale of businesses, net of cash sold74,250 — 
Investments in unconsolidated affiliates(1,613)— 
Payment received for (issuance of) notes receivable8,539 (9,155)
Proceeds from sales of assets2,124 12 
Net cash provided by (used in) investing activities43,818 (110,995)










MUELLER INDUSTRIES, INC.
6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)

For the Nine Months Ended
(In thousands)September 25, 2021September 26, 2020
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.(21,846)(16,754)
Dividends paid to noncontrolling interests(9,722)— 
Repurchase of common stock— (5,574)
Payment of contingent consideration(1,250)(7,000)
Issuance of debt475,000 150,027 
Repayments of debt(680,572)(186,492)
Repayment of debt by consolidated joint ventures, net(4,865)(299)
Net cash received (used) to settle stock-based awards219 (160)
  Debt issuance costs(1,111)—
Net cash used in financing activities(244,147)(66,252)
Effect of exchange rate changes on cash(377)(3,294)
(Decrease) increase in cash, cash equivalents, and restricted cash(19,225)16,337 
Cash, cash equivalents, and restricted cash at the beginning of the period127,376 98,042 
Cash, cash equivalents, and restricted cash at the end of the period$108,151 $114,379 

See accompanying notes to condensed consolidated financial statements.
7

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)

For the Quarter EndedFor the Nine Months Ended
(In thousands)September 25, 2021September 26, 2020September 25, 2021September 26, 2020
Common stock:    
Balance at beginning of period$802 $802 $802 $802 
Balance at end of period$802 $802 $802 $802 
Additional paid-in capital:    
Balance at beginning of period$285,148 $281,856 $280,051 $278,609 
Acquisition (issuance) of shares under incentive stock option plans163 (229)728 (896)
Stock-based compensation expense2,411 2,134 7,228 6,332 
Issuance of restricted stock(4,437)(6,098)(4,722)(6,382)
Balance at end of period$283,285 $277,663 $283,285 $277,663 
Retained earnings:     
Balance at beginning of period$1,176,812 $951,992 $1,019,694 $903,070 
Net income attributable to Mueller Industries, Inc.170,980 42,702 342,919 103,073 
Dividends paid or payable to stockholders of Mueller Industries, Inc.(7,455)(5,711)(22,276)(17,160)
Balance at end of period$1,340,337 $988,983 $1,340,337 $988,983 
Accumulated other comprehensive loss:    
Balance at beginning of period$(48,262)$(89,799)$(54,883)$(68,770)
Total other comprehensive (loss) income attributable to Mueller Industries, Inc.(3,893)8,688 2,728 (12,341)
Balance at end of period$(52,155)$(81,111)$(52,155)$(81,111)
8

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)

For the Quarter EndedFor the Nine Months Ended
(In thousands)September 25, 2021September 26, 2020September 25, 2021September 26, 2020
Treasury stock:    
Balance at beginning of period$(468,784)$(474,170)$(468,919)$(470,243)
(Acquisition) issuance of shares under incentive stock option plans(360)(644)(484)719 
Repurchase of common stock— — (26)(5,574)
Issuance of restricted stock4,437 6,098 4,722 6,382 
Balance at end of period$(464,707)$(468,716)$(464,707)$(468,716)
Noncontrolling interests:    
Balance at beginning of period$28,200 $19,523 $24,315 $18,668 
Dividends paid to noncontrolling interests(9,722)— (9,722)— 
Net income attributable to noncontrolling interests1,276 1,255 5,507 3,322 
Foreign currency translation(1,084)952 (1,430)(260)
Balance at end of period$18,670 $21,730 $18,670 $21,730 

See accompanying notes to condensed consolidated financial statements.

9

MUELLER INDUSTRIES, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

General

Certain information and footnote disclosures normally included in annual financial statements prepared in accordance with accounting principles generally accepted in the United States (U.S. GAAP) have been condensed or omitted.  Results of operations for the interim periods presented are not necessarily indicative of results which may be expected for any other interim period or for the year as a whole.  This Quarterly Report on Form 10-Q should be read in conjunction with the Company’s Annual Report on Form 10-K, including the annual financial statements incorporated therein.

The accompanying unaudited interim financial statements include all normal recurring adjustments which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented herein.  Certain prior year balances have been reclassified to conform to the current year presentation.

Note 1 – Recent Accounting Standards

Adopted

In October 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-10, Codification Improvements: An Amendment of the FASB Accounting Standards Codification. The ASU facilitates updates to the Accounting Standards Codification for technical corrections such as conforming amendments, clarifications to guidance, simplifications to wording or structure of guidance, and other minor improvements. The Company adopted the ASU during the first quarter of 2021 using a retrospective approach. The adoption of the ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying the Interactions between Topic 321, Topic 323, and Topic 815. The new guidance addresses accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The Company adopted the ASU during the first quarter of 2021 using a prospective approach. The adoption of the ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes. The new guidance affects general principles within Topic 740, Income Taxes. The amendments of ASU 2019-12 are meant to simplify and reduce the cost of accounting for income taxes. The Company adopted the ASU during the first quarter of 2021 using a prospective approach. The adoption of the ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

Issued

In January 2021, the FASB issued ASU No. 2021-01, Reference Rate Reform (Topic 848): An Amendment of the FASB Accounting Standards Codification. The new guidance was issued in response to concerns about structural risks of interbank offered rates, and, particularly, the risk of cessation of the London Interbank Offered Rate (LIBOR). Regulators in numerous jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. The ASU is effective in 2021 but can be applied through December 31, 2022. The updated guidance requires retrospective adoption, and early adoption is permitted. The Company does not expect the adoption of the ASU to have a material impact on its Condensed Consolidated Financial Statements.

Note 2 – 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 result from the assumed exercise of outstanding stock options and vesting of restricted stock awards, computed using the treasury stock method. Approximately 30 thousand and three thousand stock-based awards were excluded from the computation of diluted earnings per share for the quarters ended September 25, 2021 and September 26, 2020, respectively, because they were antidilutive.

10

Note 3 – Acquisitions and Dispositions

Acquisitions

H&C Flex

On December 20, 2020, the Company entered into an asset purchase agreement with Hart & Cooley LLC. The transaction closed on January 29, 2021, whereby the Company purchased the Hart & Cooley flexible duct business, which included inventory, manufacturing equipment, and related assets for approximately $15.3 million. The total purchase price consisted of $14.0 million in cash paid at closing and a contingent consideration arrangement of $1.3 million. The Company treated this as a business combination. The acquired business, H&C Flex, is a manufacturer and distributor of insulated HVAC flexible duct systems. It is reported within and complements the Company’s existing businesses in the Climate segment.

As of September 25, 2021, the provisional fair value of tangible assets acquired totaled $15.3 million, consisting primarily of property, plant, and equipment of $10.8 million and inventory of $4.5 million. Of the remaining purchase price, $0.1 million was allocated to tax-deductible goodwill. During the second quarter of 2021, there was a change in the valuation that resulted in an increase in property, plant, and equipment of $2.4 million, a decrease in goodwill of $1.0 million, and the recognition of contingent consideration of $1.4 million. The purchase price allocation is provisional as of September 25, 2021 and subject to change upon completion of the final valuation of the assets and contingent consideration during the measurement period.

Kessler Sales and Distribution, LLC

On August 3, 2020, the Company entered into an asset purchase agreement with Wieland-Kessler LLC, whereby the Company purchased the Kessler distribution business, which included inventory, manufacturing equipment, and related assets. The total purchase price was $57.2 million in cash paid at closing. The Company treated this as a business combination. The acquired business, Kessler Sales and Distribution, LLC, is a distributor of residential and commercial plumbing products. It is reported within and complements the Company’s existing businesses in the Piping Systems segment.

The fair value of tangible assets acquired totaled $27.3 million, consisting primarily of inventory. Of the remaining purchase price, $29.9 million was allocated to tax-deductible goodwill and intangible assets. During the second quarter of 2021, there was a change in the valuation that resulted in a decrease in property, plant, and equipment and an increase in goodwill of $1.4 million. During the first quarter of 2021, there was a change in the valuation that resulted in a decrease in goodwill and an increase in intangible assets of $1.5 million. The valuation of the business has been finalized as of September 25, 2021.

Shoals Tubular, Inc.

On January 17, 2020, the Company entered into a stock purchase agreement pursuant to which the Company acquired all of the outstanding stock of Shoals Tubular, Inc. (STI) for approximately $15.3 million, net of working capital adjustments. The total purchase price consisted of $15.3 million in cash at closing. STI is a manufacturer of brazed manifolds, headers, and distributor assemblies used primarily by manufacturers of residential heating and air conditioning units. The acquired business is reported within and complements the Company’s existing businesses in the Climate segment.

The fair value of the tangible assets acquired totaled $6.2 million, consisting primarily of property, plant, and equipment of $3.7 million, inventories of $1.8 million, and accounts receivable of $0.7 million. The fair value of the liabilities assumed totaled $0.2 million, consisting primarily of accounts payable. Of the remaining purchase price, $9.3 million was allocated to tax-deductible goodwill and intangible assets. The valuation of the business has been finalized. There were no material changes to the purchase price allocation from the amounts presented in the Company’s 2020 Annual Report on Form 10-K.

Dispositions

Die-Mold

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. Die-Mold reported net sales of $10.9 million and net income of $1.6 million for the first nine months of 2021 compared to net sales of $10.4 million and net income of $1.4 million in the first nine months of 2020. As a result of the transaction, the Company recognized a gain of $4.7 million based on the excess of the fair value of the consideration received (the 17 percent equity interest) over the carrying value of Die-Mold. The Company utilized a market comparable companies approach using an
11

EBITDA multiple to determine the fair value of the consideration received of $24.0 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.

Fabricated Tube Products and Shoals Tubular, Inc.

On July 28, 2021, the Company entered into a purchase agreement with J.W. Harris Co., Inc. and Lincoln Electric Holdings, Inc., pursuant to which the Company sold the assets of Fabricated Tube Products (FTP) and all of the outstanding stock of STI for approximately $78.2 million. These businesses manufacture and fabricate valves and assemblies, brazed manifolds, headers, and distributor assemblies used primarily by manufacturers of residential heating and air conditioning units in the U.S. and were included in the Climate segment. They reported combined net sales of $37.0 million and net income of $5.5 million in the first nine months of 2021 compared to combined net sales of $38.3 million and net income of $4.8 million in the first nine months of 2020. The carrying value of the assets disposed totaled $31.7 million, consisting primarily of accounts receivable, inventories, and long-lived assets. The carrying value of the liabilities disposed totaled $3.6 million, consisting primarily of accounts payable. As a result of the transaction, the Company recognized a pre-tax gain of $50.1 million on the sale of these businesses in the Condensed Consolidating Financial Statements.

Note 4 – 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, Heatlink Group, European Operations, Trading Group, and Jungwoo-Mueller (the Company’s South Korean 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. 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. 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.  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 & Copper Bar Products, Impacts & Micro Gauge, and Brass Value-Added Products.  These businesses manufacture brass rod, impact extrusions, and forgings, as well as a wide variety of end products including plumbing brass, automotive components, valves, fittings, and gas assemblies.  These products are manufactured in the U.S. and sold primarily to OEMs in the U.S., many of which are in the industrial, transportation, construction, heating, ventilation, and air-conditioning, plumbing, refrigeration, and energy markets.

Climate

Climate is composed of the following operating segments: Refrigeration Products, Westermeyer, Turbotec, Flex Duct, and Linesets, Inc.  These domestic businesses manufacture 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.

12

Summarized segment information is as follows:

 For the Quarter Ended September 25, 2021
(In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$688,200 $182,245 $122,252 $(10,449)$982,248 
Cost of goods sold506,703 158,822 89,175 (10,435)744,265 
Depreciation and amortization5,547 1,661 2,484 1,176 10,868 
Selling, general, and administrative expense23,751 2,710 9,521 12,542 48,524 
Gain on sale of businesses— — — (54,759)(54,759)
Operating income152,199 19,052 21,072 41,027 233,350 
Interest expense    (1,116)
Other (expense) income, net    (2,548)
Income before income taxes    $229,686 

 For the Quarter Ended September 26, 2020
(In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$409,414 $118,831 $97,604 $(6,744)$619,105 
Cost of goods sold339,904 95,717 70,450 (5,291)500,780 
Depreciation and amortization5,362 1,774 2,547 1,069 10,752 
Selling, general, and administrative expense19,285 2,992 6,451 9,618 38,346 
Operating income44,863 18,348 18,156 (12,140)69,227 
Interest expense    (4,885)
Other income, net    522 
Income before income taxes    $64,864 

13

Segment information (continued):

 For the Nine Months Ended September 25, 2021
(In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$1,947,564 $527,137 $364,986 $(26,699)$2,812,988 
Cost of goods sold1,515,335 455,112 269,560 (27,612)2,212,395 
Depreciation and amortization17,272 5,098 7,866 3,521 33,757 
Selling, general, and administrative expense71,152 8,529 23,781 34,429 137,891 
Gain on sale of businesses— — — (54,759)(54,759)
Operating income343,805 58,398 63,779 17,722 483,704 
Interest expense    (7,451)
Redemption premium(5,674)
Other income, net    (1,288)
Income before income taxes    $469,291 

For the Nine Months Ended September 26, 2020
( In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$1,128,467 $338,652 $276,983 $(21,910)$1,722,192 
Cost of goods sold931,339 285,788 206,083 (10,556)1,412,654 
Depreciation and amortization16,517 5,771 7,770 2,830 32,888 
Selling, general, and administrative expense57,998 8,690 19,607 31,454 117,749 
Litigation settlement, net— — — (21,933)(21,933)
Operating income122,613 38,403 43,523 (23,705)180,834 
Interest expense(15,237)
Other income, net3,634 
Income before income taxes$169,231 

14

The following table presents total assets attributable to each segment:

(In thousands)September 25, 2021December 26, 2020
Segment assets:
Piping Systems$1,142,523 $977,937 
Industrial Metals186,040 152,683 
Climate244,603 258,668 
General Corporate155,371 139,280 
$1,728,537 $1,528,568 

The following tables represent a disaggregation of revenue from contracts with customers, along with the reportable segment for each category:

For the Quarter Ended September 25, 2021
(In thousands)Piping SystemsIndustrial MetalsClimateTotal
Tube and fittings$555,161 $— $— $555,161 
Brass rod and forgings— 143,788 — 143,788 
OEM components, tube & assemblies6,943 12,076 29,627 48,646 
Valves and plumbing specialties126,096 — — 126,096