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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 24, 2022
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-20220924_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 14, 2022 was 56,864,688.


MUELLER INDUSTRIES, INC.

FORM 10-Q

For the Quarterly Period Ended September 24, 2022
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 24, 2022September 25, 2021September 24, 2022September 25, 2021
Net sales$944,830 $982,248 $3,104,874 $2,812,988 
Cost of goods sold678,637 744,265 2,244,062 2,212,395 
Depreciation and amortization10,850 10,868 32,993 33,757 
Selling, general, and administrative expense50,178 48,524 146,590 137,891 
Gain on sale of assets— — (5,507)— 
Gain on sale of businesses— (54,759)— (54,759)
Operating income205,165 233,350 686,736 483,704 
Interest expense(361)(1,116)(666)(7,451)
Redemption premium— — — (5,674)
Other income (expense), net1,030 (2,548)4,013 (1,288)
Income before income taxes205,834 229,686 690,083 469,291 
Income tax expense(51,035)(60,229)(173,524)(120,996)
Income from unconsolidated affiliates, net of foreign tax1,014 2,799 6,026 131 
Consolidated net income155,813 172,256 522,585 348,426 
Net income attributable to noncontrolling interests(1,271)(1,276)(3,175)(5,507)
Net income attributable to Mueller Industries, Inc.$154,542 $170,980 $519,410 $342,919 
Weighted average shares for basic earnings per share55,589 56,077 55,825 55,979 
Effect of dilutive stock-based awards835 731 796 784 
Adjusted weighted average shares for diluted earnings per share
56,424 56,808 56,621 56,763 
Basic earnings per share$2.78 $3.05 $9.30 $6.13 
Diluted earnings per share$2.74 $3.01 $9.17 $6.04 
Dividends per share$0.25 $0.13 $0.75 $0.39 

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 24, 2022September 25, 2021September 24, 2022September 25, 2021
Consolidated net income$155,813 $172,256 $522,585 $348,426 
Other comprehensive (loss) income, net of tax:    
Foreign currency translation(28,179)(8,569)(44,086)(667)
Net change with respect to derivative instruments and hedging activities, net of tax of $352, $(610), $3,198, and $204
(1,179)2,122 (10,974)(722)
Net change in pension and postretirement obligation adjustments, net of tax of $(573), $(137), $(676), and $(80)
1,608 493 1,729 476 
Attributable to unconsolidated affiliates, net of tax of $56, $(284), $(1,224), and $(642)
(191)977 4,218 2,211 
Total other comprehensive (loss) income, net(27,941)(4,977)(49,113)1,298 
Consolidated comprehensive income127,872 167,279 473,472 349,724 
Comprehensive loss (income) attributable to noncontrolling interests148 (192)(167)(4,077)
Comprehensive income attributable to Mueller Industries, Inc.$128,020 $167,087 $473,305 $345,647 

See accompanying notes to condensed consolidated financial statements.




4

MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)September 24,
2022		December 25,
2021
Assets  
Current assets:  
Cash and cash equivalents
$483,496 $87,924 
Accounts receivable, less allowance for doubtful accounts of $2,691 in 2022 and $2,590 in 2021
441,287 471,859 
Inventories
454,511 430,244 
Other current assets
41,630 28,976 
Total current assets1,420,924 1,019,003 
Property, plant, and equipment, net374,160 385,562 
Operating lease right-of-use assets24,297 23,510 
Goodwill, net156,938 171,330 
Intangible assets, net55,540 61,714 
Investments in unconsolidated affiliates70,439 61,133 
Other assets7,453 6,684 
Total assets$2,109,751 $1,728,936 
Liabilities  
Current liabilities:  
Current portion of debt
$1,123 $811 
Accounts payable
166,978 180,793 
Accrued wages and other employee costs
54,252 49,629 
Current portion of operating lease liabilities
5,271 6,015 
Other current liabilities
147,323 145,191 
Total current liabilities374,947 382,439 
Long-term debt, less current portion1,184 1,064 
Pension liabilities5,419 5,572 
Postretirement benefits other than pensions11,786 11,961 
Environmental reserves15,612 17,678 
Deferred income taxes11,428 14,347 
Noncurrent operating lease liabilities18,431 17,099 
Other noncurrent liabilities16,295 21,813 
Total liabilities455,102 471,973 
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 56,863,688 in 2022 and 57,295,961 in 2021
802 802 
Additional paid-in capital294,402 286,208 
Retained earnings1,935,137 1,458,489 
Accumulated other comprehensive loss(99,452)(53,347)
Treasury common stock, at cost(505,647)(470,034)
Total Mueller Industries, Inc. stockholders' equity1,625,242 1,222,118 
Noncontrolling interests29,407 34,845 
Total equity1,654,649 1,256,963 
Commitments and contingencies— — 
Total liabilities and equity$2,109,751 $1,728,936 

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 24, 2022September 25, 2021
Cash flows from operating activities  
Consolidated net income$522,585 $348,426 
Reconciliation of consolidated net income to net cash provided by operating activities:  
Depreciation and amortization33,261 33,932 
Stock-based compensation expense12,254 7,228 
Provision for doubtful accounts receivable327 1,310 
Income from unconsolidated affiliates(6,026)(131)
Redemption premium— 5,674 
Gain on disposals of properties(7,107)(1,135)
Gain on sale of businesses— (54,759)
Impairment charges— 2,568 
Insurance proceeds - non-capital related1,646 — 
Deferred income tax expense226 6,304 
Changes in assets and liabilities, net of effects of businesses acquired and sold:  
Receivables15,741 (155,103)
Inventories(33,768)(96,505)
Other assets(8,574)(9,335)
Current liabilities(5,331)85,523 
Other liabilities(7,399)8,335 
Other, net(923)(851)
Net cash provided by operating activities516,912 181,481 
Cash flows from investing activities  
Capital expenditures(29,555)(25,547)
Insurance proceeds - capital related3,354 — 
Acquisition of businesses, net of cash acquired— (13,935)
Proceeds from sale of businesses, net of cash sold— 74,250 
Investments in unconsolidated affiliates— (1,613)
Payment received for notes receivable— 8,539 
Proceeds from sales of assets7,841 2,124 
Dividends from unconsolidated affiliates2,091 — 
Net cash (used in) provided by investing activities(16,269)43,818 







6

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

For the Nine Months Ended
(In thousands)September 24, 2022September 25, 2021
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.(41,876)(21,846)
Dividends paid to noncontrolling interests— (9,722)
Repurchase of common stock(38,054)— 
Payment of contingent consideration— (1,250)
Issuance of debt— 475,000 
Repayments of debt(148)(680,572)
Issuance (repayment) of debt by consolidated joint ventures, net406 (4,865)
Net cash (used) received to settle stock-based awards(1,619)219 
  Debt issuance costs—(1,111)
Net cash used in financing activities(81,291)(244,147)
Effect of exchange rate changes on cash(10,310)(377)
Increase (decrease) in cash, cash equivalents, and restricted cash409,042 (19,225)
Cash, cash equivalents, and restricted cash at the beginning of the period90,376 127,376 
Cash, cash equivalents, and restricted cash at the end of the period$499,418 $108,151 

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 24, 2022September 25, 2021September 24, 2022September 25, 2021
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$291,228 $285,148 $286,208 $280,051 
Acquisition (issuance) of shares under incentive stock option plans560 163 853 728 
Stock-based compensation expense7,083 2,411 12,254 7,228 
Issuance of restricted stock(4,469)(4,437)(4,913)(4,722)
Balance at end of period$294,402 $283,285 $294,402 $283,285 
Retained earnings:     
Balance at beginning of period$1,794,811 $1,176,812 $1,458,489 $1,019,694 
Net income attributable to Mueller Industries, Inc.154,542 170,980 519,410 342,919 
Dividends paid or payable to stockholders of Mueller Industries, Inc.(14,216)(7,455)(42,762)(22,276)
Balance at end of period$1,935,137 $1,340,337 $1,935,137 $1,340,337 
Accumulated other comprehensive loss:    
Balance at beginning of period$(72,930)$(48,262)$(53,347)$(54,883)
Total other comprehensive (loss) income attributable to Mueller Industries, Inc.(26,522)(3,893)(46,105)2,728 
Balance at end of period$(99,452)$(52,155)$(99,452)$(52,155)
8

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

For the Quarter EndedFor the Nine Months Ended
(In thousands)September 24, 2022September 25, 2021September 24, 2022September 25, 2021
Treasury stock:    
Balance at beginning of period$(503,448)$(468,784)$(470,034)$(468,919)
Acquisition of shares under incentive stock option plans(2,083)(360)(2,472)(484)
Repurchase of common stock(4,585)— (38,054)(26)
Issuance of restricted stock4,469 4,437 4,913 4,722 
Balance at end of period$(505,647)$(464,707)$(505,647)$(464,707)
Noncontrolling interests:    
Balance at beginning of period$35,160 $28,200 $34,845 $24,315 
Purchase of Mueller Middle East(5,605)— (5,605)— 
Dividends paid to noncontrolling interests— (9,722)— (9,722)
Net income attributable to noncontrolling interests1,271 1,276 3,175 5,507 
Foreign currency translation(1,419)(1,084)(3,008)(1,430)
Balance at end of period$29,407 $18,670 $29,407 $18,670 

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. 

Note 1 – Recent Accounting Standards

Adopted

In January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 Company adopted the ASU during the first quarter of 2022. The adoption of the ASU did not have a material impact on the Company’s Condensed Consolidated Financial Statements.

Issued

In June 2022, the FASB issued ASU No. 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 is effective for fiscal years beginning after December 15, 2023 for public entities. The updated guidance requires prospective 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.

In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): An Amendment of the FASB Accounting Standards Codification. The new guidance was issued to improve accounting for acquired revenue contracts with customers in a business combination by addressing diversity in practice and inconsistency related to the (i) recognition of an acquired contract liability, and (ii) payment terms and their effect on subsequent revenue recognized by the acquirer. The ASU is effective for fiscal years beginning after December 5, 2022 for public entities. The updated guidance requires prospective 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. There were no stock-based awards excluded from the computation of diluted earnings per share for the quarter ended September 24, 2022 because they were antidilutive. Approximately thirty thousand stock-based awards were excluded from the computation of diluted earnings per share for the quarter ended September 25, 2021 because they were antidilutive.

10

Note 3 – Acquisitions and Dispositions

Acquisitions

Mueller Middle East

On December 7, 2021 the Company entered into an agreement providing for the purchase of an additional 15 percent equity interest in Mueller Middle East for a total of 55 percent, for approximately $20.1 million. The total purchase price consisted of $15.8 million in cash paid at closing (net of cash acquired), a gain recognized on the settlement of preexisting relationships of $2.6 million, a contingent consideration arrangement of $1.0 million, and the fair value of the Company’s existing investment in the joint venture of $0.7 million. Mueller Middle East, which manufactures copper tube, is headquartered in Bahrain. This business complements the company’s existing copper tube business in the Piping Systems segment. Prior to entering into this agreement, the Company was the technical and marketing lead with a 40 percent ownership in a joint venture with Cayan Ventures and Bahrain Mumtalakat Holding Company and accounted for this investment under the equity method of accounting. The Company began consolidating this business for financial reporting purposes in December 2021. Mueller Middle East manufactures and sells copper coils to certain Mueller subsidiaries.

The provisional fair value of the assets acquired totaled $44.8 million, consisting primarily of property, plant, and equipment of $26.7 million, accounts receivable of $10.7 million, inventories of $4.7 million, and other assets of $2.7 million. The provisional fair value of the liabilities assumed totaled $16.2 million, consisting primarily of other liabilities of $11.6 million and accounts payable of $4.6 million. Of the remaining purchase price, $1.3 million was allocated to non-deductible goodwill and intangible assets. The noncontrolling interest in Mueller Middle East is $9.8 million. The purchase price allocation is provisional as of September 24, 2022 and subject to change upon completion of the final valuation of the long-lived assets and noncontrolling interest during the measurement period. Changes to the purchase price allocation from the amounts presented in the Company’s Q2 2022 Quarterly Report on Form 10-Q included the valuation of the intangible assets and noncontrolling interest. These changes resulted in a net decrease to goodwill of $3.2 million.

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.

The fair value of tangible assets acquired totaled $15.3 million, consisting primarily of property, plant, and equipment of $10.8 million and inventories of $4.5 million. 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 2021 Annual Report on Form 10-K.

Dispositions

Copper Bar

On October 25, 2021, the Company sold its Copper Bar business for approximately $10.1 million. This business manufactured copper bar products used primarily by original equipment manufacturers (OEMs) in the U.S. and was included in the Industrial Metals segment. The carrying value of the assets disposed totaled $3.6 million, consisting primarily of inventories and long-lived assets. Copper Bar reported net sales of $14.8 million and operating income of $0.1 million in the third quarter of 2021 and net sales of $39.6 million and an operating loss of $0.1 million in the first nine months of 2021.

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 $3.0 million and operating income of $0.8 million in the third quarter of 2021 and net sales of $10.9 million and operating income of $2.2 million in the first nine months of 2021. As a result of the transaction, the Company recognized a gain of $4.7 million in the third quarter of 2021 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
11

comparable companies approach using an EBITDA multiple to determine the fair value of the consideration received of $22.8 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 Shoals Tubular, Inc. (STI) for approximately $75.7 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 $5.1 million and operating income of $0.5 million in the third quarter of 2021 and net sales of $37.0 million and operating income of $5.4 million in the first nine months of 2021. The carrying value of the assets disposed totaled $32.7 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 $46.6 million during the third quarter of 2021 on the sale of these businesses in the Condensed Consolidated 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, 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. 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.  Mueller Middle East manufactures copper tube and serves markets in the Middle East and Northern Africa. The Piping Systems segment’s products are sold primarily to plumbing, refrigeration, and air-conditioning wholesalers, hardware wholesalers and co-ops, building product retailers, and air-conditioning OEMs.

Beginning in fiscal year 2022, the results of Precision Tube are included in the Industrial Metals segment prospectively as the impact to prior periods was not material. The business was previously reported in the Piping Systems segment. This change was made to reflect the Company’s internal management reporting structure.

Industrial Metals

Industrial Metals is composed of the following operating segments: Brass Rod, Impacts & Micro Gauge, Brass Value-Added Products, and Precision Tube.  These businesses manufacture brass rod, impact extrusions, and forgings, specialty copper, copper alloy, and aluminum tube, as well as a wide variety of end products including plumbing brass, automotive components, valves, fittings, and gas assemblies.  These products are manufactured in the U.S. and sold primarily to OEMs in the U.S., many of which are in the industrial, transportation, construction, heating, ventilation, and air-conditioning, plumbing, refrigeration, and energy markets.

Climate

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

12

Summarized segment information is as follows:

 For the Quarter Ended September 24, 2022
(In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$634,808 $144,880 $174,650 $(9,508)$944,830 
Cost of goods sold440,216 128,152 114,850 (4,581)678,637 
Depreciation and amortization5,516 1,846 2,289 1,199 10,850 
Selling, general, and administrative expense21,137 2,805 10,049 16,187 50,178 
Operating income167,939 12,077 47,462 (22,313)205,165 
Interest expense    (361)
Other income (expense), net    1,030 
Income before income taxes    $205,834 

 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 loss, net    (2,548)
Income before income taxes    $229,686 

13

Segment information (continued):

For the Nine Months Ended September 24, 2022
(In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$2,163,045 $498,367 $479,756 $(36,294)$3,104,874 
Cost of goods sold1,539,493 424,802 311,917 (32,150)2,244,062 
Depreciation and amortization16,846 5,636 6,989 3,522 32,993 
Selling, general, and administrative expense66,700 8,425 25,941 45,524 146,590 
Gain on sale of assets— — (5,507)(5,507)
Operating income540,006 59,504 134,909 (47,683)686,736 
Interest expense(666)
Other income, net4,013 
Income before income taxes$690,083 

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 loss, net(1,288)
Income before income taxes$469,291 

14

The following table presents total assets attributable to each segment:

(In thousands)September 24, 2022December 25, 2021
Segment assets:
Piping Systems$1,169,693 $1,160,272 
Industrial Metals169,385 173,290 
Climate287,387 250,107 
General Corporate483,286 145,267 
$2,109,751 $1,728,936 

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 24, 2022
(In thousands)Piping SystemsIndustrial MetalsClimateTotal
Tube and fittings$520,842 $— $— $520,842 
Brass rod and forgings—