Company: MWA
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001350593-25-000012
Chunk: 15

Company: Mueller Water Products, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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 Income - Expense Disaggregation Disclosures (Subtopic 220-40):  Disaggregation of Income Statement Expenses” (“ASU 2024-03”).  ASU 2024-03 requires public business entities to disclose disaggregated information about certain income statement expense line 

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items.  These expenses include purchases of inventory, employee compensation, depreciation and intangible asset amortization for each income statement line item that contains those expenses.  Additionally, specified expenses, gains or losses that are currently required to be disclosed must now be included in the disaggregated income statement expense line item disclosures and any remaining amounts should be described qualitatively.  There is also a requirement to separately disclose total selling expenses and provide a definition of those expenses.  This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.  Upon adoption, ASU 2024-03 should be applied on a prospective basis while retrospective application is permitted.  We are currently evaluating the impact ASU 2024-03 will have on our financial statements and related disclosures.Status of U.S. Securities and Exchange Commission (“SEC”) Climate Disclosure RulesIn March 2024, the SEC adopted final rules on the enhancement and standardization of climate-related disclosures, which were to become effective on a phased-in timeline in fiscal years beginning in 2025.  However, in April 2024, due to legal challenges to the rule, the SEC voluntarily stayed implementation of the final rules.  If the rules survive judicial review and are not effectively rescinded by the SEC, they will require registrants to disclose certain climate-related information, including Scope 1 and Scope 2 greenhouse gas emissions and other climate-related topics, in registration statements and annual reports.  Additionally, the rules would require disclosure in the notes to the financial statements of the effects of severe weather events and other natural conditions, subject to materiality thresholds.  Strategic Reorganization and Other Charges The Company expects to incur certain costs related to the decommissioning and probable demolition of its legacy foundry in Decatur, Illinois, the amount of which is not estimable at this time.  During the three months ended December 31, 2024, we recorded approximately $1.7 million in Strategic reorganization and other charges consisting of expenses associated with our leadership transition and severance.  During the three months ended December 31, 2023, we recorded approximately $6.6