Company: MWA
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001350593-25-000012
Chunk: 29

Company: Mueller Water Products, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part I, Item 1
Chunk 29
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2 million.  Refer to Note 5. Retirement Plans for further information.  For the three months ended December 31, 2024, foreign currency translation included in the condensed consolidated statements of comprehensive income was $1.3 million net of no income tax.

Note 10.  Commitments and Contingencies

We are involved in various legal proceedings that have arisen in the normal course of operations, including the proceedings summarized below.  We provide for costs relating to these matters when a loss is probable and the amount is reasonably estimable.  Legal and administrative costs related to these matters are expensed as incurred.  The effect of the outcome of these matters on our financial statements cannot be predicted with certainty as any such effect depends on the amount and timing of the resolution of such matters.  Other than the litigation described below, we do not believe that any of our outstanding litigation would have a materially adverse effect on our financial position, results of operations, cash flows or liquidity. Environmental.  We are subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the operations at many of our properties and with respect to remediating environmental conditions that may exist at our own or other properties.  We accrue for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and reasonably estimable. In the acquisition agreement pursuant to which a predecessor to Tyco International plc, now Johnson Controls International plc (“Tyco”), sold our businesses to a previous owner in August 1999, Tyco agreed to indemnify us and our affiliates, among other things, for all “Excluded Liabilities.”  Excluded Liabilities include, among other things, substantially all liabilities relating to the time prior to August 1999, including environmental liabilities.  The indemnity survives indefinitely.  Tyco’s indemnity does not cover liabilities to the extent caused by us or the operation of our businesses after August 1999, nor does it cover liabilities arising with respect to businesses or sites acquired after August 1999.  Since 2007, Tyco has engaged in multiple corporate restructurings, split-offs and divestitures.  While none of these transactions directly affects the indemnification obligations of the Tyco indemnitors under the 1999 acquisition agreement, the result of such transactions is that the assets of, and control over, such Tyco indemnitors has changed.  Should any of these Tyco indemnitors become financially unable or fail to comply with the terms