Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 447

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 447
---
 the term of the instrument.  Deferred financing costs of $3.5 million as of September 30, 2025, include:  $2.5 million related to the 4.0% Senior Unsecured Notes (“4.0% Senior Notes”), $0.9 million related to the ABL and $0.1 million related to the NMTC transaction which are amortized on a straight-line basis.  These amounts are amortized over the remaining term of the respective debt using the effective interest method or on a straight-line basis.  Refer to Note 7. for disclosures related to our borrowing arrangements.

F- 12

Table of ContentsIndex to Financial Statements

Income Taxes.  Deferred tax liabilities and deferred tax assets are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns.  Such assets and liabilities are determined based on the differences between the financial statement basis and the tax basis of assets and liabilities, using tax rates in effect for the years in which the differences are expected to reverse.  A valuation allowance is provided when, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.We record tax benefits for positions that management believes are more likely than not of being sustained under audit based solely on the technical merits of the associated tax position.  The amount of tax benefit recognized for any position that meets the more-likely-than-not threshold is the largest amount of the tax benefit that we believe is greater than 50% likely of being realized.The Tax Cuts and Jobs Act (“Act”) subjects us to tax on global intangible low-taxed income (“GILTI”) earned by certain of our foreign subsidiaries.  The Act states that we can make an accounting policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred.  We have elected to recognize the tax on GILTI in the period the tax is incurred.Environmental Expenditures.  We capitalize environmental expenditures that increase the life or efficiency of noncurrent assets or that reduce or prevent environmental contamination.  We accrue for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and reasonably estimable.  We are indemnified for certain environmental liabilities that existed as of August 16, 1999 under an agreement with a predecessor to Tyco.  Refer to Note