MUELLER INDUSTRIES INCMLI

MUELLER INDUSTRIES INC Goodwill & Intangibles Disclosure

10-KFiled Feb 25, 20262 min read
Goodwill and Other Intangible Assets
Goodwill

The changes in the carrying amount of goodwill by segment were as follows:

(In thousands)Piping SystemsIndustrial MetalsClimateTotal
Goodwill$172,806 $8,854 $21,652 $203,312 
Accumulated impairment charges(40,552)(8,853)(2,087)(51,492)
Balance at December 30, 2023:132,254 1 19,565 151,820 
Additions (1)
15,107 146,137 — 161,244 
Currency translation(1,899)— — (1,899)
Balance at December 28, 2024:145,462 146,138 19,565 311,165 
Reductions (2)
(14,449)— — (14,449)
Currency translation1,472 — — 1,472 
Balance at December 27, 2025:    
Goodwill173,037 154,991 21,652 349,680 
Accumulated impairment charges(40,552)(8,853)(2,087)(51,492)
Goodwill, net$132,485 $146,138 $19,565 $298,188 
(1) Includes acquisitions of Nehring and Elkhart businesses.
(2) Includes finalization of the purchase price allocation adjustment for Elkhart of $14.4 million.

Reporting units with recorded goodwill include Domestic Piping Systems Group, B&K LLC, Great Lakes, European Operations, Jungwoo-Mueller, Mueller Middle East, Westermeyer, Flex Duct, and Nehring.  Several factors give rise to goodwill in the Company’s acquisitions, such as the expected benefit from synergies of the combination and the existing workforce of the acquired businesses. 

For 2025, the Company utilized a qualitative assessment in the annual goodwill impairment testing for all reporting units except the Nehring Electrical Works reporting unit. Based on the qualitative assessment, the Company concluded that it was more likely than not that the fair value of those reporting units exceeded their respective carrying values. The Company chose to perform a quantitative impairment analysis in the fourth quarter of 2025 for its Nehring Electrical Works reporting unit. As a result of the quantitative analysis, no impairment loss was recognized for the goodwill of the reporting unit.
Other Intangible Assets

The carrying amount of intangible assets at December 27, 2025 was as follows:

 
(In thousands)
Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Customer relationships$261,316 $(39,414)$221,902 
Non-compete agreements2,951 (2,472)479 
Patents and technology16,464 (9,925)6,539 
Trade names and licenses75,480 (17,483)57,997 
Other1,715 (1,552)163 
Other intangible assets$357,926 $(70,846)$287,080 

The carrying amount of intangible assets at December 28, 2024 was as follows:

 
(In thousands)
Gross Carrying AmountAccumulated AmortizationNet Carrying Amount
Customer relationships$259,831 $(25,403)$234,428 
Non-compete agreements2,847 (2,229)618 
Patents and technology16,385 (8,915)7,470 
Trade names and licenses74,816 (10,975)63,841 
Other1,715 (1,715)— 
Other intangible assets$355,594 $(49,237)$306,357 

Amortization expense for intangible assets was $20.8 million in 2025, $13.9 million in 2024, and $5.0 million in 2023.  Future amortization expense is estimated as follows:

(In thousands)Amount
  
2026$20,435 
202720,433 
202820,195 
202918,896 
203018,045 
Thereafter189,076 
  
Expected amortization expense$287,080 

Historical Timeline

Fiscal YearFiled
2025Feb 25, 2026Showing above
2024Feb 26, 2025
2023Feb 28, 2024
2022Feb 28, 2023
2021Feb 23, 2022
2020Feb 24, 2021
2019Feb 26, 2020
2018Feb 27, 2019
2017Feb 28, 2018
2016Feb 24, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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