Overview

We are a leading manufacturer of copper, brass, aluminum, and plastic products.
The range of products we manufacture is broad: copper tube and fittings; line
sets; brass and copper alloy rod, bar, and shapes; aluminum and brass forgings;
aluminum impact extrusions; PEX plastic tube and fittings; refrigeration valves
and fittings; compressed gas valves; pressure vessels; steel nipples; and
insulated flexible duct systems. We also resell brass and plastic plumbing
valves, plastic fittings, malleable iron fittings, faucets, and plumbing
specialty products. Our operations are located throughout the United States and
in Canada, Mexico, Great Britain, South Korea, the Middle East, and China.

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Each of our reportable segments is comprised of certain operating segments which are grouped primarily by the nature of the products offered as follows:

•Piping Systems: The Piping Systems segment is composed of Domestic Piping
Systems Group, Great Lakes Copper, Heatlink Group, European Operations, Trading
Group, Jungwoo-Mueller (our South Korean joint venture), and Mueller Middle East
(our 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.
Great Lakes Copper manufactures copper tube and line sets in Canada and sells
the products primarily in the U.S. and Canada. Heatlink Group manufactures 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 United Kingdom, which is sold throughout Europe. The Trading
Group manufactures pipe nipples and sources products for import distribution in
North America. 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 sells
products to wholesalers in the plumbing and refrigeration markets, distributors
to the manufactured housing and recreational vehicle industries, building
material retailers, and air-conditioning original equipment manufacturers
(OEMs).

•Industrial Metals: The Industrial Metals segment is composed of Brass Rod,
Impacts & Micro Gauge, Brass Value-Added Products, and Precision Tube. The
segment manufactures and sells brass rod, bar, and shapes; aluminum and brass
forgings; aluminum impact extrusions; gas valves and assemblies; and specialty
copper, copper alloy, and aluminum tube. The segment manufactures and sells its
products primarily to domestic OEMs in the industrial, transportation,
construction, heating, ventilation, and air-conditioning, plumbing,
refrigeration, and energy markets.

•Climate: The Climate segment is composed of Refrigeration Products,
Westermeyer, Turbotec, Flex Duct, and Linesets, Inc. The segment manufactures
and sells refrigeration valves and fittings, high pressure components, coaxial
heat exchangers, and insulated HVAC flexible duct systems and line sets. The
segment sells its products primarily to the heating, ventilation,
air-conditioning, and refrigeration markets in the U.S.

New housing starts and commercial construction are important determinants of our
sales to the heating, ventilation, and air-conditioning, refrigeration, and
plumbing markets because the principal end use of a significant portion of our
products is in the construction of single and multi-family housing and
commercial buildings. Repairs and remodeling projects are also important drivers
of underlying demand for these products. In addition, our products are used in
various transportation, automotive, and industrial applications.

According to the U.S. Census Bureau, the August 2022 seasonally adjusted annual
rate of new housing starts was 1.58 million, consistent with the August 2021
rate. The average 30-year fixed mortgage rate was 4.87 percent for the first
nine months of 2022 and 2.96 percent for the twelve months ended December 2021.
The private non-residential construction sector includes offices, industrial,
health care, and retail projects. According to the U.S. Census Bureau, the
seasonally adjusted annual value of private nonresidential construction put in
place was $513.1 billion in August 2022 compared to the August 2021 rate of
$486.2 billion.

Profitability of certain of our product lines depends upon the "spreads" between
the cost of raw material and the selling prices of our products. The open market
prices for copper cathode and copper and brass scrap, for example, influence the
selling price of copper tube and brass rod, two principal products manufactured
by the Company. We attempt to minimize the effects on profitability from
fluctuations in material costs by passing through these costs to our customers;
however, margins of our businesses that account for inventory on a FIFO basis
may be impacted in periods of significant fluctuations in material costs. Our
earnings and cash flow are dependent upon these spreads that fluctuate based
upon market conditions.

Earnings and profitability are also impacted by unit volumes that are subject to
market trends, such as substitute products, imports, technologies, and market
share. We intensively manage our pricing structure while attempting to maximize
profitability. From time-to-time, this practice results in lost sales
opportunities and lower volume. For plumbing systems, plastics are the primary
substitute product; these products represent an increasing share of consumption.
For certain air-conditioning and refrigeration applications, aluminum-based
systems are the primary substitution threat. We cannot predict the acceptance or
the rate of switching that may occur. U.S. consumption of copper tube and brass
rod is still predominantly supplied by U.S. manufacturers. In recent years,
brass rod consumption in the U.S. has declined due to the outsourcing of many
manufactured products to offshore regions.

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Operating results

Consolidated results

The following table compares summary operating results for the first nine months
of 2022 and 2021:

                                     For the Quarter Ended               Percent Change              For the Nine Months Ended               Percent Change
                               September 24,        September 25,                               September 24,          September 25,
(In thousands)                      2022                2021             2022 vs. 2021               2022                  2021              2022 vs. 2021

Net sales                      $   944,830          $  982,248                   (3.8) %       $   3,104,874          $  2,812,988                   10.4  %
Operating income                   205,165             233,350                  (12.1)               686,736               483,704                   42.0
Net income                         154,542             170,980                   (9.6)               519,410               342,919                   51.5


Here are the components of the change in net sales compared to the previous year:

                                              Quarter-to-      Year-to-
                                                 Date            Date
Net selling price in core product lines            (0.4) %        9.1  %
Unit sales volume in core product lines            (9.5)         (5.3)
Acquisitions                                        1.2           1.2
Dispositions                                       (2.1)         (2.8)
Other                                               7.0           8.2

                                                   (3.8) %       10.4  %



The decrease in net sales during the third quarter of 2022 was primarily due to
(i) lower unit sales volume of $93.5 million in our core product lines,
primarily copper tube and brass rod, (ii) a decrease in sales of $20.4 million
as a result of the dispositions of Copper Bar, Die-Mold, FTP, and STI in the
second half of 2021, and (iii) lower net selling prices of $4.0 million in our
core product lines. These decreases were partially offset by (i) an increase in
sales of $69.0 million in our non-core product lines and (ii) sales of $11.5
million recorded by Mueller Middle East (MME), acquired in December 2021.

The increase in net sales during the first nine months of 2022 was primarily due
to (i) higher net selling prices of $255.3 million in our core product lines,
(ii) an increase in sales of $202.9 million in our non-core product lines, (iii)
sales of $33.0 million recorded by MME, and (iv) incremental sales of $27.8
million recorded by H&C Flex (H&C). These increases were partially offset by (i)
lower unit sales volume of $148.6 million in our core product lines and (ii) a
decrease in sales of $78.5 million as a result of the dispositions of Copper
Bar, Die-Mold, FTP, and STI in the second half of 2021.

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Net selling prices generally fluctuate with changes in raw material
costs. Changes in raw material costs are generally passed through to customers
by adjustments to selling prices. The following graph shows the Comex average
copper price per pound by quarter for the current and prior fiscal years:

[[Image Removed: mli-20220924_g2.jpg]]

The following tables compare cost of goods sold and operating expenses as dollar
amounts and as a percent of net sales for the first nine months of 2022 and
2021:

                                                             For the Quarter Ended                    For the Nine Months Ended
                                                       September 24,        September 25,        September 24,          September 25,
(In thousands)                                              2022                2021                  2022                  2021

Cost of goods sold                                     $   678,637         

$744,265 $2,244,062 $2,212,395
Depreciation and amortization

                               10,850              10,868                 32,993                33,757
Selling, general, and administrative expense                50,178              48,524                146,590               137,891
Gain on sale of assets                                           -                   -                 (5,507)                    -
Gain on sale of businesses                                       -             (54,759)                     -               (54,759)

Operating expenses                                     $   739,665          $  748,898          $   2,418,138          $  2,329,284



                                                                   For the Quarter Ended                             For the Nine Months Ended
                                                       September 24, 2022        September 25, 2021        September 24, 2022        September 25, 2021

Cost of goods sold                                                 71.8  %                   75.8  %                   72.3  %                   78.6  %
Depreciation and amortization                                       1.1                       1.1                       1.1                       1.2
Selling, general, and administrative expense                        5.3                       4.9                       4.7                       5.0
Gain on sale of assets                                                -                         -                      (0.2)                        -
Gain on sale of businesses                                            -                      (5.6)                        -                      (1.9)

Operating expenses                                                 78.3  %                   76.2  %                   77.9  %                   82.9  %


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Q3 2022 vs. Q3 2021

Cost of goods sold decreased in the third quarter of 2022 primarily due to the
factors noted above regarding the change in net sales. Gross margin as a
percentage of sales was 28.2 percent compared with 24.2 percent in the prior
year quarter. The increase in gross margin percent reflects effective price
management in response to higher demand and significant inflation in wages,
consumable, energy, freight, and distribution costs, as well as fluctuating
material costs. Depreciation and amortization was consistent with the third
quarter of 2021. Selling, general, and administrative expense increased in the
third quarter of 2022 primarily as a result of (i) higher employment costs,
including incentive compensation, of $6.1 million and (ii) incremental expenses
of $0.3 million associated with MME. These increases were partially offset by
(i) the absence of asset impairment charges of $2.6 million recorded in the
prior year quarter, (ii) higher foreign currency transaction gains of $2.1
million, and (iii) the absence of expenses associated with Die-Mold, FTP, and
STI of $0.3 million.

Interest expense decreased for the third quarter of 2022 primarily as a result
of there being no borrowings outstanding under the Credit Agreement. We
recognized other income, net, of $1.0 million in the third quarter of 2022
compared to other expenses, net, of $2.5 million in the third quarter of 2021.
This change was primarily due to (i) lower environmental remediation costs at
our non-operating properties and (ii) higher interest income on short-term
investments in the third quarter of 2022.

Our effective tax rate for the third quarter of 2022 was 25 percent compared
with 26 percent for the same period last year. The primary item impacting the
effective tax rate was an increase related to the provision for state income
taxes, net of the federal benefit, of $7.3 million.

For the third quarter of 2021, the difference between the effective tax rate and
the amount computed using the U.S. federal statutory rate was primarily
attributable to (i) increases related to the provision for state income taxes,
net of the federal benefit, of $8.5 million and (ii) the effect of foreign tax
rates higher than statutory tax rates and other foreign adjustments of $5.6
million. These items were partially offset by $2.2 million of other items.

During the third quarters of 2022 and 2021, we recognized revenue of $1.0 million
and $2.8 millionrespectively, on our interests in unconsolidated affiliated companies.

YTD 2022 vs. YTD 2021

Cost of goods sold decreased in the first nine months of 2022 primarily due to
the factors noted above regarding the change in net sales. Gross margin as a
percentage of sales was 27.7 percent compared with 21.4 percent in the prior
year. The combination of strong demand for our products, inflationary pressures,
and industry wide supply constraints contributed to an environment of higher
selling prices and improved margins for the majority of our businesses.
Depreciation and amortization decreased slightly in the first nine months of
2022 primarily as a result of long-lived assets of businesses sold. Selling,
general, and administrative expense increased in the first nine months of 2022
primarily as a result of (i) higher employment costs, including incentive
compensation, of $13.9 million, (ii) incremental expenses associated with H&C
and MME of $2.7 million, and (iii) higher travel and entertainment expense of
$1.2 million. These increases were partially offset by (i) the absence of
expenses associated with Die-Mold, FTP, and STI of $2.9 million, (ii) higher
foreign currency transaction gains of $2.9 million, (iii) the absence of asset
impairment charges of $2.6 million recorded in the prior year, and (iv) a
decrease in bad debt expense of $1.0 million. In addition, during the first nine
months of 2022 we recognized a gain of $5.5 million on the sale of a building.
During the first nine months of 2021 we recognized a gain of $54.8 million on
the sale of FTP, STI, and the majority of Die-Mold.

Interest expense decreased for the first nine months of 2022 primarily as a
result of the redemption of our Subordinated Debentures during the second
quarter of 2021 and there being no borrowings outstanding under the Credit
Agreement in the third quarter of 2022. In addition, we recognized expense of
$5.7 million for a redemption premium related to our Subordinated Debentures
redeemed during the first nine months of 2021. We recognized other income, net,
of $4.0 million in the first nine months of 2022 compared to other expenses,
net, of $1.3 million the first nine months of 2021. This change was primarily
due to (i) lower environmental remediation costs at our non-operating
properties, (ii) a curtailment gain related to our benefit plans recognized
during the first nine months of 2022, and (iii) higher interest income on
short-term investments in the first nine months of 2022.

Our effective tax rate for the first nine months of 2022 was 25 percent compared
with 26 percent for the same period last year. The items impacting the effective
tax rate are primarily (i) increases related to the provision for state income
taxes, net of the federal benefit, of $24.2 million and (ii) the effect of
foreign tax rates higher than statutory tax rates and other foreign adjustments
of $4.3 million.

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For the first nine months of 2021, the items impacting the effective tax rate
were (i) increases related to the provision for state income taxes, net of the
federal benefit, of $16.3 million, and (ii) the effect of foreign tax rates
higher than statutory tax rates and other foreign adjustments of $8.7 million.
These increases were partially offset by $2.5 million of other items.

In the first nine months of 2022 and the first nine months of 2021, we recognized revenue of $6.0 million and $0.1 millionrespectively, on our interests in unconsolidated affiliated companies.

Piping Systems Segment

The following table compares summary operating results for the first nine months of 2022 and 2021 for our Piping Systems segment operations:

                                     For the Quarter Ended               Percent Change              For the Nine Months Ended               Percent Change
                               September 24,        September 25,                               September 24,          September 25,
(In thousands)                      2022                2021             2022 vs. 2021               2022                  2021              2022 vs. 2021

Net sales                      $   634,808          $  688,200                   (7.8) %       $   2,163,045          $  1,947,564                   11.1  %
Operating income                   167,939             152,199                   10.3                540,006               343,805                   57.1


Here are the components of the change in net sales compared to the previous year:

                                              Quarter-to-      Year-to-
                                                 Date            Date
Net selling price in core product lines             1.2  %       12.5  %
Unit sales volume in core product lines           (11.4)         (6.0)
Acquisitions                                        1.7           1.7
Dispositions                                       (0.4)         (0.6)
Other                                               1.1           3.5

                                                   (7.8) %       11.1  %



The decrease in net sales during the third quarter of 2022 was primarily
attributable to (i) lower unit sales volume of $77.5 million in the segment's
core product lines, primarily copper tube, and (ii) a decrease in sales of $3.0
million as a result of the disposition of Die-Mold in the third quarter of 2021.
These decreases were partially offset by (i) sales of $11.5 million recorded by
MME, (ii) an increase in sales of $10.5 million in the segment's non-core
product lines, and (iii) higher net selling prices in the segment's core product
lines of $8.0 million.

Net sales during the first nine months of 2022 increased primarily as a result
of (i) higher net selling prices in the segment's core product lines of $240.5
million, (ii) an increase in sales of $71.7 million in the segment's non-core
product lines, and (iii) sales of $33.0 million recorded by MME. These increases
were partially offset by (i) lower unit sales volume of $116.1 million in the
segment's core product lines and (ii) a decrease in sales of $10.9 million as a
result of the disposition of Die-Mold in the third quarter of 2021.

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The following tables compare cost of goods sold and operating expenses as dollar
amounts and as a percent of net sales for the first nine months of 2022 and
2021:

                                                             For the Quarter Ended                    For the Nine Months Ended
                                                       September 24,        September 25,        September 24,          September 25,
(In thousands)                                              2022                2021                  2022                  2021

Cost of goods sold                                     $   440,216         

$506,703 $1,539,493 $1,515,335
Depreciation and amortization

                                5,516               5,547                 16,846                17,272
Selling, general, and administrative expense                21,137              23,751                 66,700                71,152

Operating expenses                                     $   466,869          $  536,001          $   1,623,039          $  1,603,759



                                                                    For the Quarter Ended                               For the Nine Months Ended
                                                         September 24, 2022         September 25, 2021        September 24, 2022        September 25, 2021

Cost of goods sold                                                    69.3  %                   73.6  %                   71.2  %                   77.8  %
Depreciation and amortization                                          0.9                       0.8                       0.8                       0.8
Selling, general, and administrative expense                           3.3                       3.5                       3.0                       3.7

Operating expenses                                                    73.5  %                   77.9  %                   75.0  %                   82.3  %



The decrease in cost of goods sold during the third quarter of 2022 was
primarily due to the decrease in the average cost of copper, our principal raw
material.  Gross margin as a percentage of sales was 30.7 percent compared with
26.4 percent in the prior year quarter. The increase in gross margin percent
reflects effective price management in response to significant inflation in
wages, consumable, freight, and distribution costs, as well as fluctuating
material costs. Depreciation and amortization was consistent with the third
quarter of 2021. Selling, general, and administrative expense decreased for the
third quarter of 2022 primarily as a result of (i) higher foreign currency
transaction gains of $2.2 million and (ii) lower employment costs, including
incentive compensation, of $0.7 million. These decreases were partially offset
by expenses associated with MME of $0.3 million.

The increase in cost of goods sold during the first nine months of 2022 was
primarily due to the factors noted above regarding the change in net sales.
Gross margin as a percentage of sales was 28.8 percent compared with 22.2
percent in the prior year. Depreciation and amortization decreased slightly in
the first nine months of 2022 primarily as a result of long-lived assets of
businesses sold, partially offset by depreciation and amortization of the
long-lived assets of MME. Selling, general, and administrative expense decreased
for the first nine months of 2022 primarily as a result of (i) higher foreign
currency transaction gains of $2.9 million, (ii) the absence of expenses of $1.6
million associated with the write-off of vendor deposits in the first nine
months of 2021, (iii) lower expenses of $0.5 million associated with businesses
disposed, and (iv) lower employment costs, including incentive compensation, of
$0.4 million. These decreases were partially offset by expenses associated with
MME of $0.9 million.

Industrial Metals Segment

The following table compares summary operating results for the first nine months
of 2022 and 2021 for the businesses comprising our Industrial Metals segment:

                                     For the Quarter Ended               Percent Change              For the Nine Months Ended              Percent Change
                               September 24,        September 25,                                September 24,         September 25,
(In thousands)                      2022                2021             2022 vs. 2021               2022                  2021             2022 vs. 2021

Net sales                      $   144,880          $  182,245                  (20.5) %       $      498,367          $  527,137                   (5.5) %
Operating income                    12,077              19,052                  (36.6)                 59,504              58,398                    1.9



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Here are the components of the change in net sales compared to the previous year:

                                              Quarter-to-      Year-to-
                                                 Date            Date
Net selling price in core product lines            (6.7) %        2.8  %
Unit sales volume in core product lines            (8.8)         (6.1)

Dispositions                                       (6.9)         (6.1)
Other                                               1.9           3.9

                                                  (20.5) %       (5.5) %



The decrease in net sales during the third quarter of 2022 was primarily due to
(i) lower unit sales volume of $15.9 million in the segment's core product
lines, primarily brass rod and forgings, (ii) a decrease in sales of $12.5
million as a result of the disposition of Copper Bar in the fourth quarter of
2021, and (iii) lower net selling prices of $12.1 million in the segment's core
product lines.

The decrease in net sales during the first nine months of 2022 was primarily due
to (i) lower unit sales volume of $32.4 million in the segment's core product
lines and (ii) a decrease in sales of $32.0 million as a result of the
disposition of Copper Bar in the fourth quarter of 2021. These decreases were
partially offset by (i) higher net selling prices of $14.9 million in the
segment's core product lines and (ii) an increase in sales of $5.6 million in
the segment's non-core product lines.

The following tables compare cost of goods sold and operating expenses as dollar
amounts and as a percent of net sales for the first nine months of 2022 and
2021:

                                                             For the Quarter Ended                    For the Nine Months Ended
                                                       September 24,        September 25,         September 24,         September 25,
(In thousands)                                              2022                2021                  2022                  2021

Cost of goods sold                                     $   128,152         

$158,822 $424,802 $455,112
Depreciation and amortization

                                1,846               1,661                   5,636               5,098
Selling, general, and administrative expense                 2,805               2,710                   8,425               8,529

Operating expenses                                     $   132,803          $  163,193          $      438,863          $  468,739



                                                                   For the Quarter Ended                             For the Nine Months Ended
                                                       September 24, 2022        September 25, 2021        September 24, 2022        September 25, 2021

Cost of goods sold                                                 88.5  %                   87.1  %                   85.2  %                   86.3  %
Depreciation and amortization                                       1.3                       0.9                       1.1                       1.0
Selling, general, and administrative expense                        1.9                       1.5                       1.8                       1.6

Operating expenses                                                 91.7  %                   89.5  %                   88.1  %                   88.9  %



The decrease in cost of goods sold during the third quarter of 2022 was
primarily due to the factors noted above regarding the change in net sales.
Gross margin as a percentage of sales was 11.5 percent compared with 12.9
percent in the prior year quarter. Depreciation and amortization and selling,
general, and administrative expense were consistent with the third quarter of
2021.

The decrease in cost of goods sold during the first nine months of 2022 was
primarily due to the factors noted above regarding the change in net sales.
Gross margin as a percentage of sales was 14.8 percent compared with 13.7
percent in the prior year. Depreciation and amortization increased slightly
during the first nine months of 2022 as a result of long-lived assets placed
into service. Selling, general, and administrative expense were consistent with
the first nine months of 2021.

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Climate segment

The following table compares the summarized operating results for the first nine months of 2022 and 2021 for the activities comprising our Climate segment:

                                     For the Quarter Ended               Percent Change              For the Nine Months Ended              Percent Change
                               September 24,        September 25,                                September 24,         September 25,
(In thousands)                      2022                2021             2022 vs. 2021               2022                  2021             2022 vs. 2021

Net sales                      $   174,650          $  122,252                   42.9  %       $      479,756          $  364,986                   31.4  %
Operating income                    47,462              21,072                  125.2                 134,909              63,779                  111.5



Sales for the third quarter of 2022 increased primarily as a result of strong
demand and an increase in price in certain product lines.  These increases were
partially offset by a decrease in sales of $4.9 million as a result of the
dispositions of FTP and STI during the third quarter of 2021.

Sales for the first nine months of 2022 increased primarily as a result of an
increase in volume and price in certain product lines, as well as incremental
sales of $27.8 million recorded by H&C.  These increases were partially offset
by a decrease in sales of $35.6 million as a result of the dispositions of FTP
and STI during the third quarter of 2021.

The following tables compare cost of goods sold and operating expenses as dollar
amounts and as a percent of net sales for the first nine months of 2022 and
2021:

                                                               For the Quarter Ended                    For the Nine Months Ended
                                                         September 24,        September 25,         September 24,         September 25,
(In thousands)                                                2022                2021                  2022                  2021

Cost of goods sold                                       $   114,850       

$89,175 $311,917 $269,560
Depreciation and amortization

                                  2,289               2,484                   6,989               7,866
Selling, general and administrative expense                   10,049               9,521                  25,941              23,781

Operating expenses                                       $   127,188          $  101,180          $      344,847          $  301,207



                                                                     For the Quarter Ended                             For the Nine Months Ended
                                                         September 24, 2022        September 25, 2021        September 24, 2022        September 25, 2021

Cost of goods sold                                                   65.8  %                   72.9  %                   65.0  %                   73.9  %
Depreciation and amortization                                         1.3                       2.0                       1.5                       2.2
Selling, general and administrative expense                           5.7                       7.9                       5.4                       6.4

Operating expenses                                                   72.8  %                   82.8  %                   71.9  %                   82.5  %



Cost of goods sold increased during the third quarter of 2022, consistent with
the increase in net sales.  Gross margin as a percentage of sales was 34.2
percent compared with 27.1 percent in the prior year quarter. The increase in
gross margin percent reflects effective price management in response to
significant inflation in wages, consumable, freight, and distribution costs, as
well as fluctuations in material costs. Depreciation and amortization decreased
by $0.2 million as a result of long-lived assets of businesses sold. Selling,
general, and administrative expense increased primarily due to (i) higher agent
commissions of $2.7 million and (ii) higher employment costs, including
incentive compensation, of $0.8 million. These increases were partially offset
by (i) the absence of asset impairment charges of $2.6 million recorded in the
prior year quarter and (ii) the absence of expenses associated with FTP and STI
of $0.3 million.

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Cost of goods sold increased during the first nine months of 2022 primarily due
to factors noted above regarding the change in net sales.  Gross margin as a
percentage of sales was 35.0 percent compared with 26.1 percent in the prior
year. The increase in gross margin percent reflects effective price management
in response to significant inflation in wages, consumable, freight, and
distribution costs, as well as fluctuations in material costs. Depreciation and
amortization decreased as a result of long-lived assets of businesses sold.
Selling, general, and administrative expense increased for the first nine months
of 2022 as a result of (i) higher agent commissions of $3.8 million, (ii)
incremental expenses associated with H&C of $1.8 million., and (iii) higher
employment costs, including incentive compensation, of $1.6 million. These
increases were partially offset by (i) the absence of asset impairment charges
of $2.6 million recorded in the prior year and (ii) the absence of expenses
associated with FTP and STI of $2.4 million.

Cash and capital resources

The following table presents selected financial information for the first nine
months of 2022 and 2021:

(In thousands)                                              2022           2021

Increase (decrease) in:
Cash, cash equivalents, and restricted cash              $ 409,042      $ 

(19,225)

Property, plant, and equipment, net                        (11,402)        

(6,350)

Total debt                                                     432       

(205,754)

Working capital, net of cash and current debt               14,153        

146 240

Net cash provided by operating activities                  516,912        

181 481

Net cash (used) from investing activities (16,269) 43,818 Net cash used in financing activities

                      (81,291)      

(244,147)

Cash flow from operating activities

During the nine months ended September 24, 2022, net cash provided by operating
activities was primarily attributable to (i) consolidated net income of $522.6
million, (ii) depreciation and amortization of $33.3 million, (iii) a decrease
in accounts receivable of $15.7 million, and (iv) stock-based compensation
expense of $12.3 million. These increases were partially offset by (i) an
increase in inventories of $33.8 million, (ii) an increase in other assets of
$8.6 million, (iii) a decrease in other liabilities of $7.4 million, (iv) the
gain of $7.1 million recognized on the sale of assets, (v) equity in earnings of
unconsolidated affiliates of $6.0 million, and (vi) a decrease in current
liabilities of $5.3 million.

During the nine months ended September 25, 2021, net cash provided by operating
activities was primarily attributable to (i) consolidated net income of $348.4
million, (ii) an increase in current liabilities of $85.5 million, (iii)
depreciation and amortization of $33.9 million, (iv) stock-based compensation
expense of $7.2 million, and (v) the redemption premium of $5.7 million related
to our Subordinated Debentures. These increases were largely offset by (i) an
increase in accounts receivable of $155.1 million, (ii) an increase in
inventories of $96.5 million, and (iii) the gain of $54.8 million recognized on
the sale of Die-Mold, FTP, and STI. The fluctuations of accounts receivable,
inventories, and current liabilities were primarily due to increased sales
volume in certain businesses and higher material costs during the first nine
months of 2021.

Cash flow from investing activities

The major component of net cash used in investing activities during the nine
months ended September 24, 2022 was capital expenditures of $29.6 million. This
use was partially offset by (i) proceeds from the sale of properties of $7.8
million, (ii) insurance proceeds for property and equipment of $3.4 million, and
(iii) dividends received from unconsolidated affiliates of $2.1 million.

The major components of net cash provided by investing activities during the
nine months ended September 25, 2021 included (i) proceeds from the sale of FTP
and STI, net of cash sold, of $74.3 million and (ii) payments received on notes
receivable of $8.5 million. These sources were partially offset by (i) capital
expenditures of $25.5 million and (ii) $13.9 million for the purchase of H&C,
net of cash acquired.

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Cash flow from financing activities

For the nine months ended September 24, 2022net cash used in financing activities consisted mainly of (i) $41.9 million used for the payment of regular quarterly dividends to shareholders of the Company and (ii) $38.1 million used to redeem common shares.

For the nine months ended September 25, 2021, net cash used in financing
activities consisted of (i) $390.0 million used to reduce the debt outstanding
under our Credit Agreement, (ii) $290.2 million used for the redemption of the
Subordinated Debentures, (iii) $21.8 million used for the payment of regular
quarterly dividends to stockholders of the Company, and (iv) $9.7 million used
for the payment of dividends to noncontrolling interests. These uses were
largely offset by the issuance of debt under our Credit Agreement of $475.0
million.

Liquidity and prospects

We estimate that cash from operations, funds available under the credit agreement and cash on hand will be sufficient to meet our liquidity needs, including working capital, capital expenditures and payment obligations. debt.

From September 24, 2022we have had $483.5 million cash and $366.9 million available to be drawn under the credit agreement. Our current ratio was 3.8 to 1.

We have significant environmental remediation obligations which we expect to pay
over future years. Cash used for environmental remediation activities was
approximately $7.6 million during the first nine months of 2022, which included
a $5.6 million settlement related to the Southeast Kansas Sites. We expect to
spend approximately $5.5 million over the next twelve months for ongoing
environmental remediation activities.

The Company declared a quarterly cash dividend of 25.0 cents per common share
during the first, second, and third quarters of 2022 and 13.0 cents per common
share during the first, second, and third quarters of 2021,
respectively. Payment of dividends in the future is dependent upon our financial
condition, cash flows, capital requirements, earnings, and other factors.

long-term debt

From September 24, 2022the Company’s total debt was $2.3 million i.e. 0.1% of its total capitalization.

The Company's Credit Agreement provides for an unsecured $400.0 million
revolving credit facility, which matures March 31, 2026. There were no
borrowings outstanding under the Credit Agreement as of September 24, 2022. The
Credit Agreement backed approximately $33.1 million in letters of credit at the
end of the third quarter of 2022.

Covenants contained in the Company's financing obligations require, among other
things, the maintenance of minimum levels of tangible net worth and the
satisfaction of certain minimum financial ratios. As of September 24, 2022, the
Company was in compliance with all of its debt covenants.

Share buyback program

The Board of Directors has extended, until July 2023, the authorization to
repurchase up to 20 million shares of the Company's common stock through open
market transactions or through privately negotiated transactions. We may cancel,
suspend, or extend the time period for the repurchase of shares at any time. Any
repurchases will be funded primarily through existing cash and cash from
operations. We may hold any shares repurchased in treasury or use a portion of
the repurchased shares for our stock-based compensation plans, as well as for
other corporate purposes. From its initial authorization in 1999 through
September 24, 2022, the Company has repurchased approximately 7.2 million shares
under this authorization.

Contractual Cash Obligations

There have been no material changes to our contractual cash obligations reported to December 25, 2021.

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