Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 454

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 454
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 our incremental 

F- 16

Table of ContentsIndex to Financial Statements

borrowing rate to determine the present value of our remaining lease payments.  Our incremental borrowing rate is determined based on information available at the lease commencement date.For all classes of leased assets, we have applied an accounting policy election to exclude short-term leases from recognition in our consolidated balance sheets.  A short-term lease has a term of 12 months or less at the commencement date and does not include a purchase or extension option that is reasonably certain of exercise.  We recognize short-term lease cost in our consolidated statements of operations on a straight-line basis over the lease term. Our short-term lease cost for the year ended September 30, 2025 was $2.6 million.  Short-term lease cost for the years ended September 30, 2024, and 2023 were immaterial.  Our short-term lease commitments as of September 30, 2025, and 2024 are immaterial.We have certain lease contracts with terms and conditions that include variable payments based on changes in facts or circumstances occurring after the commencement date.  These variable lease payments are recognized in our consolidated statements of operations as the obligation is incurred.As of September 30, 2025, any legally-binding minimum lease payments for operating leases signed but not yet commenced, subleases, or leases that impose significant restrictions or covenants, were immaterial.  We did not have any related-party leases or sale-leaseback arrangements as of September 30, 2025, or September 30, 2024.The components of lease cost are presented below:Year ended September 30, 202520242023(in millions)Operating lease cost$7.5 $6.9 $6.3 Finance lease cost1.3 0.9 1.1 Total lease cost$8.8 $7.8 $7.4 Supplemental cash flow information related to leases is presented below:Year ended September 30,20252024(in millions)Operating cash used for operating leases$7.5 $7.0 Financing cash used for finance leases$1.3 $0.9 Supplemental information regarding our lease assets and liabilities is presented below:September 30,20252024(in millions)Right-of-use assets:Operating leasesOther noncurrent assets$27.3 $26.9 Finance leasesPlant, property and equipment4.1 2.