Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 241

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 8
Chunk 241
---
 policy election to either recognize deferred taxes for temporary differences expected to reverse as GILTI in future years or provide for the tax expense related to GILTI in the year the tax is incurred.  We have elected to recognize the tax on GILTI in the period the tax is incurred.Environmental Expenditures.  We capitalize environmental expenditures that increase the life or efficiency of noncurrent assets or that reduce or prevent environmental contamination.  We accrue for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and reasonably estimable.  We are indemnified for certain environmental liabilities that existed as of August 16, 1999 under an agreement with a predecessor to Tyco.  Refer to Note 15. for additional disclosures regarding our environmental liabilities.Revenue Recognition.  Refer to Note 3. for disclosures regarding our revenues.Stock-based Compensation.  Compensation expense for stock-based awards granted to employees and directors is based on the fair value at the grant dates for our stock-settled share awards and is based on the fair value at each reporting date for our cash-settled share awards.  Stock-based compensation expense is included within Selling, general and administrative expense within our consolidated statements of operations.  Refer to Note 10. for more information regarding our stock-based compensation.Research and Development.  Research and development costs are expensed as incurred.Advertising.  Advertising costs are expensed as incurred. Translation of Foreign Currency.  Foreign reporting entities are remeasured into local currencies with the effect reflected in the consolidated statements of operations.  Assets and liabilities of our businesses whose functional currencies are not denominated in the United States dollar are translated into United States dollars using currency exchange rates at the balance sheet date.  Revenues and expenses are translated at average currency exchange rates during the period.  Foreign currency translation gains and losses are reported as a component of accumulated other comprehensive income (loss).  Gains and losses resulting from foreign currency transactions are included in earnings as incurred.   For the years ended September 30, 2025 and September 30, 2024, we recorded a foreign exchange loss of $9.5 million and $2.2 million, respectively.  For the year ended September 30, 2023, we recorded a foreign exchange gain of $3.3 million.Recently Adopted Accounting PronouncementsIn November 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023