Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 183

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 8
Chunk 183
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 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, 2025 and $5.7 million as of September 30, 2024.  We estimate that noncurrent deferred revenue will be recognized as follows:  $1.5 million in 2027, $1.3 million in 2028, $0.7 million in 2029, $0.5 million in 2030, $0.4 million in 2031 and $0.6 million thereafter.Performance ObligationsA performance obligation is a promise in a contract to transfer a distinct good or service to a customer.  Our performance obligations are generally satisfied at a point in time for sales of equipment and products and over time for our software hosting and leak detection monitoring services.  Performance obligations are supported by customer contracts which provide 

F- 15

Table of ContentsIndex to Financial Statements

frameworks for the nature of the distinct products or services.  The transaction price is adjusted for our estimate of variable consideration which may include discounts and rebates.  To estimate variable consideration, we apply the expected value or the most likely amount method based on whichever method more appropriately predicts the amount of consideration we expect to receive.  The method applied is typically based on historical experience and known trends.  We include estimated variable consideration in the transaction price only to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur in future periods when the uncertainty associated with the variable consideration is subsequently resolved.  We exclude from the measurement of the transaction price all taxes assessed by a governmental authority.We do not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will