Company: MWA
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001350593-25-000043
Chunk: 60

Company: Mueller Water Products, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 60
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 back any commissions in the event of product returns, cancellations or lost collections.  Disaggregation of Revenue

Refer to Note 8. for information regarding disaggregation of our revenues from contracts with customers by reportable segment and by geographical region based on customer location.  Economic factors may impact the nature, amount, timing and certainty of our revenue and cash flows.    

Note 3. Income Taxes 

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below: Three months endedNine months endedJune 30,June 30,2025202420252024U.S. federal statutory income tax rate21.0 %21.0 %21.0 %21.0 %Adjustments to reconcile to the effective tax rate:State income taxes, net of federal benefit4.0 3.5 4.0 3.5 Excess tax benefit related to stock-based compensation— — (1.2)— Tax credits(1.4)(1.8)(1.4)(1.8)Global Intangible Low-Taxed Income0.3 (0.1)0.3 (0.1)Foreign income tax rate differential(0.6)(0.4)(0.6)(0.4)Nondeductible compensation1.5 1.0 1.5 1.0 Uncertain tax positions0.3 0.4 0.3 (0.7)Valuation allowances0.4 0.7 0.4 0.4 Other1.6 0.9 0.7 0.9 Effective income tax rate27.1 %25.2 %25.0 %23.8 %At June 30, 2025 and September 30, 2024, the gross liabilities for unrecognized income tax benefits were $3.6 million and $3.0 million, respectively, and are included in Other noncurrent liabilities.During the nine months ended June 30, 2024, we recorded $1.6 million in income tax benefits due to the release of an uncertain tax position that expired on December 31, 2023.

On July 4, 2025, the U.S. government enacted H.R. 1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”).  OBBBA includes significant provisions,