Significant Accounting Policies	6 Months Ended
Jul. 04, 2026
Accounting Policies [Abstract]
Significant Accounting Policies	Significant Accounting Policies Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, net sales and expenses and related disclosures of contingent assets and liabilities in the Condensed Consolidated Financial Statements and accompanying notes. These estimates include, but are not limited to: establishing the allowance for expected credit losses; the allowance for slow moving and obsolete inventory; the valuation of goodwill; establishing useful lives for and evaluating the recovery of our finite-life, long-lived assets; recognizing the fair value of assets acquired and liabilities assumed in business combinations; determining the fair value of contingent consideration; accounting for rebates and product warranties; the valuation and expensing for share-based compensation; certain assumptions made in accounting for pension benefits; accounting for contingencies and uncertainties; and accounting for income taxes. Actual results may differ from the estimates used in preparing the Condensed Consolidated Financial Statements. Cash and Cash Equivalents Cash and cash equivalents mainly consist of highly liquid, unrestricted savings, checking and other bank accounts. Accounts Receivable, Net The Company reports accounts receivable net of an allowance for expected credit losses. The Company establishes provisions for expected credit losses based on the Company’s assessment of the collectability of amounts owed to the Company by its customers. Such allowances are included in Selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Loss. In establishing the allowance, the Company considers changes in the financial position of a customer, age of the accounts receivable balances, availability of security, unusual macroeconomic conditions, lien rights and bond rights as well as disputes, if any, with its customers. Uncollectible accounts are written off when a settlement is reached for an amount that is less than the outstanding historical balance, all collection efforts have been exhausted, or any legal action taken by the Company has concluded. The Company’s allowance for expected credit losses was $23.7 million and $20.8 million at July 4, 2026 and December 31, 2025, respectively. Assets Held for Sale The Company records assets held for sale at the lower of the carrying value or fair value less costs to sell. The following criteria are used to determine if property is held for sale: (i) management has the authority and commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition; (iii) there is an active program to locate a buyer and the plan to sell the property has been initiated; (iv) the sale of the property is probable within one year; (v) the property is being actively marketed at a reasonable sale price relative to its current fair value; and (vi) it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. In determining the fair value of the assets less costs to sell, the Company considers factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals and any recent legitimate offers. If the estimated fair value less costs to sell of an asset is less than its current carrying value, the asset is written down to its estimated fair value less costs to sell. As of April 4, 2026, the Company classified certain assets as held for sale, which consisted primarily of land and building assets that were being actively marketed for sale-leaseback. As of the end of the second quarter of 2026, management determined that completion of a sale-leaseback transaction was no longer probable, and those assets, in the amount of $147.0 million, were reclassified to property, plant, and equipment. Also, as of the end of the second quarter of 2026, the Company finalized its decision to dispose of a business within the Siding & Accessories segment. Based on that decision, the asset group, including assets and liabilities, met the criteria for classification as held for sale and were classified as such as of July 4, 2026. The total carrying amount of assets held for sale was $29.1 million as of July 4, 2026, and $147.0 million as of December 31, 2025. The total carrying amount of liabilities held for sale was $29.1 million as of July 4, 2026, and there were none as of December 31, 2025. Equity Method Investments The Company accounts for investments in companies over which it has the ability to exercise significant influence, but not control, using the equity method of accounting. Under the equity method, the Company’s investments are carried at cost and adjusted for the Company’s proportionate share of net income or loss and dividends received. The Company acquired an investment as part of the acquisition of Mueller Supply Company that it accounts for under the equity method of accounting, as the Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investment. The carrying value of the investment was $10.7 million as of July 4, 2026 and $11.0 million as of December 31, 2025. The investment is recognized in Other assets, net on our Condensed Consolidated Balance Sheets for both comparable periods. Impairment of Long-Lived Assets The Company evaluates long-lived assets for impairment, including, but not limited to, property, plant and equipment, lease right-of-use assets, and finite-lived intangible assets, when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable or the assets are being held for sale. Upon the occurrence of a triggering event, the asset is reviewed to assess whether the estimated undiscounted cash flows expected from the use of the asset plus the residual value from the ultimate disposal exceeds the carrying value of the asset. If the carrying value exceeds the estimated recoverable amount, the asset is written down to its estimated fair value, and any resulting impairment loss is reflected within other operating costs in the Consolidated Statements of Loss. During the six months ended July 4, 2026, the Company recognized an impairment charge of approximately $14.9 million related to certain long-lived manufacturing assets following changes in their expected use. The impairment charge was primarily related to property, plant and equipment and construction-in-progress and was recorded in the Impairment of long-lived assets line item in the Consolidated Statements of Loss. Additionally, in connection with the Company's decision to dispose of a business within the Siding & Accessories segment, management evaluated the related asset group for impairment. As a result of this assessment, the Company recorded an impairment charge of approximately $19.3 million to reduce the carrying value of certain long-lived assets to their estimated fair value. The impairment charge was recorded in the Impairment of long-lived assets line item in the Consolidated Statements of Loss. Recent Accounting Pronouncements In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides entities with a practical expedient to simplify the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, Revenue From Contracts With Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. The Company adopted ASU 2025-05 effective January 1, 2026 on a prospective basis and elected to apply the practical expedient. This adoption did not have a material impact on the Company’s consolidated financial statements and disclosures. In November 2024, the FASB issued ASU No. 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which improves disclosure requirements and provides more detailed information about an entity’s expenses, specifically amounts related to purchases of inventory, employee compensation, depreciation, intangible asset amortization and selling expenses, along with qualitative descriptions of certain other types of expenses. This change is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and disclosures. In September 2025, the FASB issued ASU No. 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 modernizes and clarifies the threshold for when an entity is required to start capitalizing software costs and is based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. This change is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. Entities can elect to apply this guidance prospectively, retrospectively, or using a modified transition approach. The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements and disclosures. In November 2025, the FASB issued ASU No. 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements (“ASU 2025-09”). ASU 2025-09 refines and clarifies existing hedge accounting guidance subject to ASC 815 to align financial reporting more closely with an entity’s risk management activities and to address diversity in practice identified by stakeholders. This change is effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted. Entities are to apply this guidance prospectively. The Company is currently evaluating the impact of ASU 2025-09 on its consolidated financial statements and disclosures. In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”). ASU 2025-11 is intended to improve the navigability of the guidance in ASC 270, Interim Reporting, and clarify when it applies. Under the amendments, an entity is subject to ASC 270 if it provides interim financial statements and notes in accordance with GAAP. ASU 2025-11 also addresses the form and content of such financial statements, interim disclosure requirements, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. This change is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. Entities can elect to apply this guidance prospectively or retrospectively. The Company is currently evaluating the impact of ASU 2025-11 on its consolidated financial statements and disclosures.

The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, net sales and expenses and related disclosures of contingent assets and liabilities in the Condensed Consolidated Financial Statements and accompanying notes. These estimates include, but are not limited to: establishing the allowance for expected credit losses; the allowance for slow moving and obsolete inventory; the valuation of goodwill; establishing useful lives for and evaluating the recovery of our finite-life, long-lived assets; recognizing the fair value of assets acquired and liabilities assumed in business combinations; determining the fair value of contingent consideration; accounting for rebates and product warranties; the valuation and expensing for share-based compensation; certain assumptions made in accounting for pension benefits; accounting for contingencies and uncertainties; and accounting for income taxes. Actual results may differ from the estimates used in preparing the Condensed Consolidated Financial Statements.

The Company reports accounts receivable net of an allowance for expected credit losses. The Company establishes provisions for expected credit losses based on the Company’s assessment of the collectability of amounts owed to the Company by its customers. Such allowances are included in Selling, general and administrative expenses in the Company’s Condensed Consolidated Statements of Loss. In establishing the allowance, the Company considers changes in the financial position of a customer, age of the accounts receivable balances, availability of security, unusual macroeconomic conditions, lien rights and bond rights as well as disputes, if any, with its customers. Uncollectible accounts are written off when a settlement is reached for an amount that is less than the outstanding historical balance, all collection efforts have been exhausted, or any legal action taken by the Company has concluded. The Company’s allowance for expected credit losses was $23.7 million and $20.8 million at July 4, 2026 and December 31, 2025, respectively.

The Company records assets held for sale at the lower of the carrying value or fair value less costs to sell. The following criteria are used to determine if property is held for sale: (i) management has the authority and commits to a plan to sell the property; (ii) the property is available for immediate sale in its present condition; (iii) there is an active program to locate a buyer and the plan to sell the property has been initiated; (iv) the sale of the property is probable within one year; (v) the property is being actively marketed at a reasonable sale price relative to its current fair value; and (vi) it is unlikely that the plan to sell will be withdrawn or that significant changes to the plan will be made. In determining the fair value of the assets less costs to sell, the Company considers factors including current sales prices for comparable assets in the area, recent market analysis studies, appraisals and any recent legitimate offers. If the estimated fair value less costs to sell of an asset is less than its current carrying value, the asset is written down to its estimated fair value less costs to sell.

As of April 4, 2026, the Company classified certain assets as held for sale, which consisted primarily of land and building assets that were being actively marketed for sale-leaseback. As of the end of the second quarter of 2026, management determined that completion of a sale-leaseback transaction was no longer probable, and those assets, in the amount of $147.0 million, were reclassified to property, plant, and equipment.

Also, as of the end of the second quarter of 2026, the Company finalized its decision to dispose of a business within the Siding & Accessories segment. Based on that decision, the asset group, including assets and liabilities, met the criteria for classification as held for sale and were classified as such as of July 4, 2026. The total carrying amount of assets held for sale was $29.1 million as of July 4, 2026, and $147.0 million as of December 31, 2025. The total carrying amount of liabilities held for sale was $29.1 million as of July 4, 2026, and there were none as of December 31, 2025.

The Company accounts for investments in companies over which it has the ability to exercise significant influence, but not control, using the equity method of accounting. Under the equity method, the Company’s investments are carried at cost and adjusted for the Company’s proportionate share of net income or loss and dividends received. The Company acquired an investment as part of the acquisition of Mueller Supply Company that it accounts for under the equity method of accounting, as the Company possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investment. The carrying value of the investment was $10.7 million as of July 4, 2026 and $11.0 million as of December 31, 2025. The investment is recognized in Other assets, net on our Condensed Consolidated Balance Sheets for both comparable periods.

The Company evaluates long-lived assets for impairment, including, but not limited to, property, plant and equipment, lease right-of-use assets, and finite-lived intangible assets, when events or changes in circumstances indicate that the carrying value of such assets may not be recoverable or the assets are being held for sale. Upon the occurrence of a triggering event, the asset is reviewed to assess whether the estimated undiscounted cash flows expected from the use of the asset plus the residual value from the ultimate disposal exceeds the carrying value of the asset. If the carrying value exceeds the estimated recoverable amount, the asset is written down to its estimated fair value, and any resulting impairment loss is reflected within other operating costs in the Consolidated Statements of Loss.

During the six months ended July 4, 2026, the Company recognized an impairment charge of approximately $14.9 million related to certain long-lived manufacturing assets following changes in their expected use. The impairment charge was primarily related to property, plant and equipment and construction-in-progress and was recorded in the Impairment of long-lived assets line item in the Consolidated Statements of Loss.

Additionally, in connection with the Company's decision to dispose of a business within the Siding & Accessories segment, management evaluated the related asset group for impairment. As a result of this assessment, the Company recorded an impairment charge of approximately $19.3 million to reduce the carrying value of certain long-lived assets to their estimated fair value. The impairment charge was recorded in the Impairment of long-lived assets line item in the Consolidated Statements of Loss.

In July 2025, the FASB issued ASU No. 2025-05, Financial Instruments — Credit Losses (Topic 326): Measurement of Credit Losses for Accounts Receivable and Contract Assets (“ASU 2025-05”). ASU 2025-05 provides entities with a practical expedient to simplify the estimation of expected credit losses for current accounts receivable and current contract assets that arise from transactions accounted for under ASC 606, Revenue From Contracts With Customers. Under this practical expedient, an entity is allowed to assume that the current conditions it has applied in determining credit loss allowances for current accounts receivable and current contract assets remain unchanged for the remaining life of those assets. The Company adopted ASU 2025-05 effective January 1, 2026 on a prospective basis and elected to apply the practical expedient. This adoption did not have a material impact on the Company’s consolidated financial statements and disclosures.

In November 2024, the FASB issued ASU No. 2024-03, Income Statement — Reporting Comprehensive Income — Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses (“ASU 2024-03”), which improves disclosure requirements and provides more detailed information about an entity’s expenses, specifically amounts related to purchases of inventory, employee compensation, depreciation, intangible asset amortization and selling expenses, along with qualitative descriptions of certain other types of expenses. This change is effective for annual periods beginning after December 15, 2026 and interim periods within fiscal years beginning after December 15, 2027. The Company is currently evaluating the impact of ASU 2024-03 on its consolidated financial statements and disclosures.

In September 2025, the FASB issued ASU No. 2025-06, Intangibles — Goodwill and Other — Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software (“ASU 2025-06”). ASU 2025-06 modernizes and clarifies the threshold for when an entity is required to start capitalizing software costs and is based on when (i) management has authorized and committed to funding the software project and (ii) it is probable that the project will be completed and the software will be used to perform the function intended. This change is effective for annual reporting periods beginning after December 15, 2027, and interim reporting periods within those annual reporting periods, with early adoption permitted. Entities can elect to apply this guidance prospectively, retrospectively, or using a modified transition approach. The Company is currently evaluating the impact of ASU 2025-06 on its consolidated financial statements and disclosures.

In November 2025, the FASB issued ASU No. 2025-09, Derivatives and Hedging (Topic 815): Hedge Accounting Improvements (“ASU 2025-09”). ASU 2025-09 refines and clarifies existing hedge accounting guidance subject to ASC 815 to align financial reporting more closely with an entity’s risk management activities and to address diversity in practice identified by stakeholders. This change is effective for annual reporting periods beginning after December 15, 2026, and interim periods within those annual reporting periods, with early adoption permitted. Entities are to apply this guidance prospectively. The Company is currently evaluating the impact of ASU 2025-09 on its consolidated financial statements and disclosures.

In December 2025, the FASB issued ASU No. 2025-11, Interim Reporting (Topic 270): Narrow-Scope Improvements (“ASU 2025-11”). ASU 2025-11 is intended to improve the navigability of the guidance in ASC 270, Interim Reporting, and clarify when it applies. Under the amendments, an entity is subject to ASC 270 if it provides interim financial statements and notes in accordance with GAAP. ASU 2025-11 also addresses the form and content of such financial statements, interim disclosure requirements, and establishes a principle under which an entity must disclose events since the end of the last annual reporting period that have a material impact on the entity. This change is effective for interim reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. Entities can elect to apply this guidance prospectively or retrospectively. The Company is currently evaluating the impact of ASU 2025-11 on its consolidated financial statements and disclosures.