Company: MWA
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001350593-25-000043
Chunk: 18

Company: Mueller Water Products, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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3 $7.3 Provision (reversed) charged to expense(0.2)2.3 Write-offs and other(2.8)(1.7)Ending balance$5.3 $7.9 

12

Contract Asset and Liability BalancesDifferences in the timing of revenue recognition, billing and cash collection result in customer receivables, advance payments and billings in excess of revenue recognized.  Customer receivables include amounts billed and currently due from customers as well as unbilled amounts including contract assets.  Amounts are billed in accordance with contractual terms and unbilled amounts arise when the timing of billing differs from the timing of revenue recognized.Advance payments and billings in excess of revenue are recognized and recorded as deferred revenue and are classified as Other current liabilities or Other noncurrent liabilities in the accompanying condensed consolidated balance sheets based on the timing of when we expect to recognize revenue.  Deferred revenue represents contract liabilities and is recorded when customers remit cash 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.  Activity in deferred revenue during the period is as follows:Nine months endedJune 30,20252024(in millions)Beginning balance$12.8 $9.2 Revenue deferred during the period6.2 6.9 Previously deferred revenue recognized during the period(7.7)(5.0)Ending balance$11.3 $11.1 Current deferred revenue was $5.8 million as of June 30, 2025.  Noncurrent deferred revenue was $5.5 million as of June 30, 2025.  We estimate that noncurrent deferred revenue will be recognized as follows: $0.7 million in 2026, $1.5 million in 2027, $1.2 million in 2028, $0.7 million in 2029, $0.5 million in 2030 and $0.9 million thereafter.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