Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 57

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 57
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 payments in advance of our satisfaction of performance obligations pursuant to contractual arrangements.  Contract liabilities are reversed when the performance obligation is satisfied and revenue is recognized.  Deferred revenue primarily consists of amounts related to monitoring, leak detection, software and hosting services.  During the three months ended March 31, 2025 and 2024, we recognized approximately $2.3 million and $1.9 million, respectively, of revenue that was previously deferred.  For the six months ended March 31, 2025 and 2024, we recognized approximately $4.6 million and $4.2 million of revenue that was previously deferred.  Additionally, during the three months ended March 31, 2025 and 2024, we recorded approximately $2.1 million and $2.4 million, respectively, of additional deferred revenue.  For the six months ended March 31, 2025 and 2024, we recorded approximately $4.2 million and $3.9 million, respectively, of additional deferred revenue.  We estimate that noncurrent deferred revenue will be recognized as follows: $1.0 million in 2026, $1.3 million in 2027, $1.2 million in 2028, $0.7 million in 2029, $0.5 million in 2030 and $0.8 million thereafter.

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The table below represents the balances of our customer receivables and deferred revenue:March 31,September 30, 20252024(in millions)Billed receivables$216.4 $212.7 Unbilled receivables7.0 4.5 Gross customer receivables223.4 217.2 Allowance for credit losses(8.1)(8.3)Receivables, net$215.3 $208.9 Deferred revenue$12.4 $12.8 Performance ObligationsA performance obligation is a promise in a contract to transfer a distinct good or service to the customer.  Our performance obligations are generally satisfied at a point in time for sales of equipment and products or over time for our software hosting and leak detection monitoring services.  Performance obligations are supported by customer contracts which provide frameworks for the nature of the distinct products or services.  The transaction price is adjusted for our estimate of variable consideration which may include discounts and rebates.  To estimate variable consideration, we apply the expected value or the most likely