MUELLER INDUSTRIES INCMLI
MUELLER INDUSTRIES INC Income Taxes Disclosure
Income Taxes
The components of income before income taxes were taxed under the following jurisdictions:
| (In thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Domestic | $ | 891,985 | $ | 672,625 | $ | 722,153 | ||||||||||||||
| Foreign | 120,377 | 147,837 | 123,079 | |||||||||||||||||
| Income before income taxes | $ | 1,012,362 | $ | 820,462 | $ | 845,232 | ||||||||||||||
Income tax expense consists of the following:
| (In thousands) | 2025 | 2024 | 2023 | |||||||||||||||||
| Current tax expense: | ||||||||||||||||||||
| Federal | $ | 168,263 | $ | 136,248 | $ | 144,111 | ||||||||||||||
| Foreign | 28,671 | 37,269 | 39,167 | |||||||||||||||||
| State and local | 43,852 | 32,426 | 32,694 | |||||||||||||||||
| Current tax expense | 240,786 | 205,943 | 215,972 | |||||||||||||||||
| Deferred tax expense (benefit): | ||||||||||||||||||||
| Federal | 2,248 | 1,617 | 4,806 | |||||||||||||||||
| Foreign | 2,789 | 3,285 | 270 | |||||||||||||||||
| State and local | 1,528 | (5,769) | (286) | |||||||||||||||||
| Deferred tax expense (benefit) | 6,565 | (867) | 4,790 | |||||||||||||||||
| Income tax expense | $ | 247,351 | $ | 205,076 | $ | 220,762 | ||||||||||||||
The difference between the reported income tax expense and a tax determined by applying the applicable U.S. federal statutory income tax rate to income before income taxes is reconciled as follows:
| (In thousands) | 2025 | 2024 | 2023 | |||||||||||||||||||||||||||||||||||
| Amount | Percent | Amount | Percent | Amount | Percent | |||||||||||||||||||||||||||||||||
| Expected income tax expense | $ | 212,568 | 21.00 | % | $ | 172,297 | 21.00 | % | $ | 177,499 | 21.00 | % | ||||||||||||||||||||||||||
| State and local income tax, net of federal benefit | 36,172 | 3.57 | % | 19,847 | 2.42 | % | 25,542 | 3.02 | % | |||||||||||||||||||||||||||||
| Foreign tax effects: | ||||||||||||||||||||||||||||||||||||||
| Canada | — | — | % | — | — | % | 10,318 | 1.22 | % | |||||||||||||||||||||||||||||
| Other foreign jurisdictions | 6,208 | 0.61 | % | 9,308 | 1.13 | % | 4,201 | 0.50 | % | |||||||||||||||||||||||||||||
| Other, net | (7,597) | (0.75) | % | 3,624 | 0.44 | % | 3,202 | 0.38 | % | |||||||||||||||||||||||||||||
| Income tax expense | $ | 247,351 | 24.43 | % | $ | 205,076 | 25.00 | % | $ | 220,762 | 26.12 | % | ||||||||||||||||||||||||||
State taxes in CA, IL, MI, and MS made up the majority (greater than 50 percent) of the tax effect in the state and local income tax category.
The Company continues to assert that a portion of the undistributed earnings of its foreign subsidiaries are permanently reinvested. No taxes have been accrued with respect to these undistributed earnings or any outside basis differences. The Company has accrued appropriate taxes for any undistributed earnings that are not considered permanently reinvested. The Company has elected to provide for the tax expense related to global intangible low-taxed income (GILTI) in the year the tax is incurred.
The international tax framework introduced by the Organisation for Economic Co-operation and Development under its Pillar Two initiative includes a global minimum tax of 15 percent. Legislation adopting these provisions has been enacted in certain jurisdictions where the Company operates and was effective beginning in the Company's 2024 fiscal year. The Company has assessed this legislation, and the Pillar Two provisions do not have a material impact on the Company’s income tax expense in
2025 or 2024. The One Big Beautiful Bill Act, which was passed in 2025, had no material impact on the Company’s Consolidated Financial Statements.
The Company includes interest and penalties related to income tax matters as a component of income tax expense, none of which was material in 2025, 2024, and 2023.
The statute of limitations is open for the Company’s federal tax return for 2022 and all subsequent years. Most state and foreign returns are open for 2022 and all subsequent years, and some state and foreign returns are also open for some earlier tax years due to differing statute periods. While the Company believes that it is adequately reserved for possible audit adjustments, the final resolution of these examinations cannot be determined with certainty and could result in final settlements that differ from current estimates.
The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities are presented below:
| (In thousands) | 2025 | 2024 | ||||||||||||
| Deferred tax assets: | ||||||||||||||
| Inventories | $ | 17,173 | $ | 17,296 | ||||||||||
| Other postretirement benefits and accrued items | 14,158 | 16,202 | ||||||||||||
| Other reserves | 7,570 | 6,870 | ||||||||||||
| Foreign tax attributes | 4,696 | 4,676 | ||||||||||||
| State tax attributes, net of federal benefit | 2,459 | 3,932 | ||||||||||||
| Stock-based compensation | 4,834 | 5,100 | ||||||||||||
| Lease liability | 5,656 | 6,230 | ||||||||||||
| Basis difference in unconsolidated affiliates | 10,552 | 11,649 | ||||||||||||
| Total deferred tax assets | 67,098 | 71,955 | ||||||||||||
| Less valuation allowance | (15,686) | (16,692) | ||||||||||||
| Deferred tax assets, net of valuation allowance | 51,412 | 55,263 | ||||||||||||
| Deferred tax liabilities: | ||||||||||||||
| Property, plant, and equipment | 52,166 | 52,405 | ||||||||||||
| Lease asset | 6,044 | 6,670 | ||||||||||||
| Other liabilities | 15,284 | 10,198 | ||||||||||||
| Total deferred tax liabilities | 73,494 | 69,273 | ||||||||||||
| Net deferred tax liabilities | $ | (22,082) | $ | (14,010) | ||||||||||
As of December 27, 2025, the Company had state net operating loss (NOL) carryforwards with potential tax benefits of $2.5 million, after consideration of the federal impact, expiring between 2032 and 2036.
As of December 27, 2025, the Company had other foreign tax attributes with potential tax benefits of $3.6 million, which have an unlimited life, and attributes with potential benefits of $1.1 million that expire between 2034 and 2041; all of these foreign attributes were fully offset by a valuation allowance. The Company has also recorded a valuation allowance against deferred tax assets related to the basis differences in investments in unconsolidated affiliates.
Income taxes paid were approximately $245.8 million in 2025, which included federal tax payments of $165.3 million, state and local tax payments of $43.5 million, Canadian tax payments of $19.3 million, and other foreign tax payments of $17.7 million. The federal tax payment amount includes $107.0 million paid for the purchase of federal transferable tax credits.
Income taxes paid were approximately $210.4 million in 2024, which included federal tax payments of $143.5 million, state and local tax payments of $34.3 million, Canadian tax payments of $18.6 million, and other foreign tax payments of $14.0 million.
Income taxes paid were approximately $219.6 million in 2023, which included federal tax payments of $143.5 million, state and local tax payments of $33.3 million, Canadian tax payments of $28.7 million, and other foreign tax payments of $14.1 million.Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Feb 28, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 23, 2022 | |
| 2020 | Feb 24, 2021 | |
| 2019 | Feb 26, 2020 | |
| 2018 | Feb 27, 2019 | |
| 2017 | Feb 28, 2018 | |
| 2016 | Feb 24, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.