Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 451

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 451
---
 products or services.  We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable.  We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each customer contract or arrangement.The table below presents the balances of our customer receivables and deferred revenue: September 30,  20252024 (in millions)Billed receivables$210.8 $212.7 Unbilled receivables4.7 4.5      Gross customer receivables215.5 217.2 Allowance for credit losses(3.6)(8.3)     Receivables, net$211.9 $208.9 Deferred revenue$12.1 $12.8 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 classified as Other current liabilities or Other noncurrent liabilities in the accompanying 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 under 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 is presented below:  September 30, 20252024(in millions)Balance at beginning of year$12.8 $9.2 Revenue deferred9.5 12.2 Previously deferred revenue recognized(10.2)(8.6)Balance at end of year$12.1 $12.8 Current deferred revenue was $7.1 million as of September 30, 2025 and $7.1 million as of September 30, 2024.  Noncurrent deferred revenue was $5.0 million as of September 30,