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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 June 25, 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-20220625_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 filerAccelerated filer
Non-accelerated filerSmaller 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 July 15, 2022 was 56,683,718.



MUELLER INDUSTRIES, INC.

FORM 10-Q

For the Quarterly Period Ended June 25, 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 Six Months Ended
(In thousands, except per share data)June 25, 2022June 26, 2021June 25, 2022June 26, 2021
Net sales$1,150,042 $1,012,592 $2,160,044 $1,830,740 
Cost of goods sold820,914 799,712 1,565,425 1,468,130 
Depreciation and amortization11,302 11,134 22,143 22,889 
Selling, general, and administrative expense48,956 43,932 96,412 89,367 
Gain on sale of assets  (5,507) 
Operating income268,870 157,814 481,571 250,354 
Interest expense(147)(1,866)(305)(6,335)
Redemption premium (5,674) (5,674)
Other income, net2,203 683 2,983 1,260 
Income before income taxes270,926 150,957 484,249 239,605 
Income tax expense(68,290)(39,006)(122,489)(60,767)
Income (loss) from unconsolidated affiliates, net of foreign tax4,888 (1,019)5,012 (2,668)
Consolidated net income207,524 110,932 366,772 176,170 
Net income attributable to noncontrolling interests(972)(2,100)(1,904)(4,231)
Net income attributable to Mueller Industries, Inc.$206,552 $108,832 $364,868 $171,939 
Weighted average shares for basic earnings per share55,787 55,946 55,943 55,931 
Effect of dilutive stock-based awards741 866 776 811 
Adjusted weighted average shares for diluted earnings per share
56,528 56,812 56,719 56,742 
Basic earnings per share$3.70 $1.95 $6.52 $3.07 
Diluted earnings per share$3.65 $1.92 $6.43 $3.03 
Dividends per share$0.25 $0.13 $0.50 $0.26 

See accompanying notes to condensed consolidated financial statements.

3


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

 For the Quarter EndedFor the Six Months Ended
(In thousands)June 25, 2022June 26, 2021June 25, 2022June 26, 2021
Consolidated net income$207,524 $110,932 $366,772 $176,170 
Other comprehensive (loss) income, net of tax:    
Foreign currency translation(17,120)3,515 (15,907)7,902 
Net change with respect to derivative instruments and hedging activities, net of tax of $3,450, $961, $2,846, and $814
(11,886)(3,337)(9,795)(2,844)
Net change in pension and postretirement obligation adjustments, net of tax of $31, $1, $(103), and $57
(299)74 121 (17)
Attributable to unconsolidated affiliates, net of tax of $(656), $219, $(1,280), and $(358)
2,261 (753)4,409 1,234 
Total other comprehensive (loss) income, net(27,044)(501)(21,172)6,275 
Consolidated comprehensive income180,480 110,431 345,600 182,445 
Comprehensive loss (income) attributable to noncontrolling interests584 (1,333)(315)(3,885)
Comprehensive income attributable to Mueller Industries, Inc.$181,064 $109,098 $345,285 $178,560 

See accompanying notes to condensed consolidated financial statements.




4


MUELLER INDUSTRIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)June 25,
2022
December 25,
2021
Assets  
Current assets:  
Cash and cash equivalents
$202,501 $87,924 
Accounts receivable, less allowance for doubtful accounts of $2,577 in 2022 and $2,590 in 2021
611,578 471,859 
Inventories
475,951 430,244 
Other current assets
45,726 28,976 
Total current assets1,335,756 1,019,003 
Property, plant, and equipment, net388,139 385,562 
Operating lease right-of-use assets22,870 23,510 
Goodwill, net162,630 171,330 
Intangible assets, net60,508 61,714 
Investments in unconsolidated affiliates70,225 61,133 
Other assets6,844 6,684 
Total assets$2,046,972 $1,728,936 
Liabilities  
Current liabilities:  
Current portion of debt
$1,112 $811 
Accounts payable
208,869 180,793 
Accrued wages and other employee costs
43,586 49,629 
Current portion of operating lease liabilities
5,725 6,015 
Other current liabilities
159,479 145,191 
Total current liabilities418,771 382,439 
Long-term debt, less current portion1,131 1,064 
Pension liabilities4,684 5,572 
Postretirement benefits other than pensions11,924 11,961 
Environmental reserves16,300 17,678 
Deferred income taxes11,712 14,347 
Noncurrent operating lease liabilities15,899 17,099 
Other noncurrent liabilities20,928 21,813 
Total liabilities501,349 471,973 
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 56,730,133 in 2022 and 57,295,961 in 2021
802 802 
Additional paid-in capital291,228 286,208 
Retained earnings1,794,811 1,458,489 
Accumulated other comprehensive loss(72,930)(53,347)
Treasury common stock, at cost(503,448)(470,034)
Total Mueller Industries, Inc. stockholders' equity1,510,463 1,222,118 
Noncontrolling interests35,160 34,845 
Total equity1,545,623 1,256,963 
Commitments and contingencies  
Total liabilities and equity$2,046,972 $1,728,936 

See accompanying notes to condensed consolidated financial statements.
5


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

 For the Six Months Ended
(In thousands)June 25, 2022June 26, 2021
Cash flows from operating activities  
Consolidated net income$366,772 $176,170 
Reconciliation of consolidated net income to net cash provided by operating activities:  
Depreciation and amortization22,322 22,975 
Stock-based compensation expense5,171 4,817 
Provision for doubtful accounts receivable151 1,280 
(Income) loss from unconsolidated affiliates(5,012)2,668 
Redemption premium 5,674 
Gain on disposals of properties(6,800)(819)
Deferred income tax (benefit) expense(373)3,252 
Changes in assets and liabilities, net of effects of businesses acquired and sold:  
Receivables(146,438)(190,944)
Inventories(49,354)(63,949)
Other assets(6,095)(5,482)
Current liabilities28,906 50,456 
Other liabilities(4,283)3,429 
Other, net(433)(247)
Net cash provided by operating activities204,534 9,280 
Cash flows from investing activities  
Capital expenditures(23,248)(17,978)
Acquisition of businesses, net of cash acquired (13,935)
Payment received for (issuance of) notes receivable 8,539 
Proceeds from sales of assets7,561 1,730 
Dividends from unconsolidated affiliates1,609  
Net cash used in investing activities(14,078)(21,644)















6





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

For the Six Months Ended
(In thousands)June 25, 2022June 26, 2021
Cash flows from financing activities
Dividends paid to stockholders of Mueller Industries, Inc.(27,968)(14,546)
Repurchase of common stock(33,469) 
Issuance of debt 425,000 
Repayments of debt(111)(400,497)
Issuance of debt by consolidated joint ventures, net360 463 
Net cash (used) received to settle stock-based awards(95)414 
  Debt issuance costs(1,111)
Net cash (used in) provided by financing activities(61,283)9,723 
Effect of exchange rate changes on cash(2,234)987 
Increase (decrease) in cash, cash equivalents, and restricted cash126,939 (1,654)
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$217,315 $125,722 

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 Six Months Ended
(In thousands)June 25, 2022June 26, 2021June 25, 2022June 26, 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$288,802 $282,713 $286,208 $280,051 
Acquisition (issuance) of shares under incentive stock option plans272 12 293 565 
Stock-based compensation expense2,598 2,708 5,171 4,817 
Issuance of restricted stock(444)(285)(444)(285)
Balance at end of period$291,228 $285,148 $291,228 $285,148 
Retained earnings:     
Balance at beginning of period$1,602,496 $1,075,410 $1,458,489 $1,019,694 
Net income attributable to Mueller Industries, Inc.206,552 108,832 364,868 171,939 
Dividends paid or payable to stockholders of Mueller Industries, Inc.(14,237)(7,430)(28,546)(14,821)
Balance at end of period$1,794,811 $1,176,812 $1,794,811 $1,176,812 
Accumulated other comprehensive loss:    
Balance at beginning of period$(47,442)$(48,528)$(53,347)$(54,883)
Total other comprehensive (loss) income attributable to Mueller Industries, Inc.(25,488)266 (19,583)6,621 
Balance at end of period$(72,930)$(48,262)$(72,930)$(48,262)
8


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

For the Quarter EndedFor the Six Months Ended
(In thousands)June 25, 2022June 26, 2021June 25, 2022June 26, 2021
Treasury stock:    
Balance at beginning of period$(474,258)$(469,251)$(470,034)$(468,919)
(Acquisition) issuance of shares under incentive stock option plans(137)182 (389)(124)
Repurchase of common stock(29,497) (33,469)(26)
Issuance of restricted stock444 285 444 285 
Balance at end of period$(503,448)$(468,784)$(503,448)$(468,784)
Noncontrolling interests:    
Balance at beginning of period$35,744 $26,867 $34,845 $24,315 
Net income attributable to noncontrolling interests972 2,100 1,904 4,231 
Foreign currency translation(1,556)(767)(1,589)(346)
Balance at end of period$35,160 $28,200 $35,160 $28,200 

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 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. Approximately eight thousand and five thousand stock-based awards were excluded from the computation of diluted earnings per share for the quarters ended June 25, 2022 and June 26, 2021, respectively, 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 $15.6 million, consisting primarily of other liabilities of $11.0 million and accounts payable of $4.6 million. Of the remaining purchase price, $6.3 million was allocated to non-deductible goodwill and intangible assets. The noncontrolling interest in Mueller Middle East is $15.4 million. The purchase price allocation is provisional as of June 25, 2022 and subject to change upon completion of the final valuation of the long-lived assets and noncontrolling interest during the measurement period.

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 $13.4 million and an operating loss of $0.1 million in the second quarter of 2021 and net sales of $24.8 million and an operating loss of $0.2 million in the first half 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 $4.0 million and operating income of $0.8 million in the second quarter of 2021 and net sales of $7.9 million and operating income of $1.4 million in the first half 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 comparable companies approach using an EBITDA multiple to determine the fair value of the consideration received of $22.8 million, which is
11


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 $17.1 million and operating income of $2.8 million in the second quarter of 2021 and net sales of $31.8 million and operating income of $5.0 million in the first half 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 June 25, 2022
(In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$824,807 $179,175 $164,484 $(18,424)$1,150,042 
Cost of goods sold585,090 150,940 103,110 (18,226)820,914 
Depreciation and amortization5,930 1,846 2,348 1,178 11,302 
Selling, general, and administrative expense22,208 2,221 8,279 16,248 48,956 
Operating income211,579 24,168 50,747 (17,624)268,870 
Interest expense    (147)
Other income, net    2,203 
Income before income taxes    $270,926 

 For the Quarter Ended June 26, 2021
(In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$711,616 $180,040 $131,708 $(10,772)$1,012,592 
Cost of goods sold558,278 155,399 96,303 (10,268)799,712 
Depreciation and amortization5,515 1,694 2,753 1,172 11,134 
Selling, general, and administrative expense23,315 2,448 7,280 10,889 43,932 
Operating income124,508 20,499 25,372 (12,565)157,814 
Interest expense    (1,866)
Redemption premium(5,674)
Other income, net    683 
Income before income taxes    $150,957 

13


Segment information (continued):

For the Six Months Ended June 25, 2022
(In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$1,528,237 $353,487 $305,106 $(26,786)$2,160,044 
Cost of goods sold1,099,277 296,650 197,067 (27,569)1,565,425 
Depreciation and amortization11,330 3,790 4,700 2,323 22,143 
Selling, general, and administrative expense45,563 5,620 15,892 29,337 96,412 
Gain on sale of assets   (5,507)(5,507)
Operating income372,067 47,427 87,447 (25,370)481,571 
Interest expense(305)
Other income, net2,983 
Income before income taxes$484,249 

For the Six Months Ended June 26, 2021
(In thousands)Piping SystemsIndustrial MetalsClimateCorporate and EliminationsTotal
Net sales$1,259,364 $344,892 $242,734 $(16,250)$1,830,740 
Cost of goods sold1,008,632 296,290 180,385 (17,177)1,468,130 
Depreciation and amortization11,725 3,437 5,382 2,345 22,889 
Selling, general, and administrative expense47,401 5,819 14,260 21,887 89,367 
Operating income191,606 39,346 42,707 (23,305)250,354 
Interest expense(6,335)
Redemption premium(5,674)
Other income, net1,260 
Income before income taxes$239,605 

14


The following table presents total assets attributable to each segment:

(In thousands)June 25, 2022December 25, 2021
Segment assets:
Piping Systems$1,298,116 $1,160,272 
Industrial Metals195,907 173,290 
Climate288,776 250,107 
General Corporate264,173 145,267 
$2,046,972 $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 June 25, 2022
(In thousands)Piping SystemsIndustrial MetalsClimateTotal
Tube and fittings$674,579 $ $ $674,579 
Brass rod and forgings 142,788  142,788 
OEM components, tube & assemblies 20,254 32,526 52,780 
Valves and plumbing specialties150,228   150,228 
Flex duct and other HVAC components  131,958 131,958 
Other 16,133  16,133