Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 78

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 78
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 foreign exchange impacts, partially offset by approximately 3% inflation.  SG&A as a percentage of net sales was 15.3% and 18.0% for the three months ended March 31, 2025 and March 31, 2024, respectively.

Strategic reorganization and other charges for the three months ended March 31, 2025 were $2.4 million and consisted of expenses associated with our leadership transition, non-cash asset impairment and certain transaction-related expenses.  Strategic reorganization and other charges for the three months ended March 31, 2024 were $3.2 million and consisted of expenses associated with our leadership transition, severance and certain transaction-related expenses. 

Net interest expense for the three months ended March 31, 2025 was $2.3 million as compared with $3.6 million in the prior year period, a decrease of $1.3 million or 36.1%, primarily due to higher interest income.  The components of net interest expense are as shown below: 

Three months endedMarch 31,20252024 (in millions)4.0% Senior Notes$4.5 $4.5 Deferred financing costs amortization0.2 0.2 ABL Agreement0.2 0.3 Capitalized interest(0.1)— Other interest expense0.3 0.1 Total interest expense5.1 5.1 Interest income(2.8)(1.5)Interest expense, net$2.3 $3.6 

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below:

 Three months endedMarch 31,20252024U.S. federal statutory income tax rate21.0 %21.0 %Adjustments to reconcile to the effective tax rate:State income taxes, net of federal benefit3.9 3.4 Excess tax (benefit) deficit related to stock-based compensation(1.0)— Tax credits(1.6)(2.1)Global Intangible Low-Taxed Income0.3 0.2 Foreign income tax rate differential(0.4)(0.8)Nondeductible compensation1.4 1.0 Uncertain tax positions0.3 0.5 Other0.3 1.6 Effective income tax rate24.2 %24.8 %

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