Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 36

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 8
Chunk 36
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 cash flow method.  This method estimates a fair value by calculating an estimated discounted future cash flow stream from the hypothetical licensing of the indefinite-lived intangible assets.  If the estimated fair value exceeds the carrying value, no impairment is indicated.  If the estimated fair value is less than the carrying value, impairment is indicated.  This analysis is dependent on management’s best estimates of future revenue and the selection of reasonable discount rates and hypothetical royalty rates. We performed our annual impairment testing as of September 1, 2025 based on quantitative factors and, as a result, no impairment charge was recorded.   Intangible AssetsDirect internal and external costs to develop software used in the provision of services to customers by Water Management Solutions are capitalized and amortized over the six-year estimated useful life of the software, beginning when the software is ready for its intended use.  As of September 30, 2025, the remaining weighted-average amortization period for this software was 4.4 years.  Amortization expense related to such software assets was $2.2 million in 2025, $2.6 million in 2024, and $2.9 million in 2023.  Amortization expense for each of the next five years is expected to be $2.3 million in 2026, $1.8 million in 2027, $1.5 million in 2028, $1.1 million in 2029 and $0.7 million in 2030.As of September 30, 2025, the remaining weighted-average amortization periods for business combination-related finite-lived customer relationships and technology intangible assets were 6.7 years and 6.2 years, respectively.  Amortization expense related to these assets was $5.0 million, $24.9 million and $25.2 million for 2025, 2024 and 2023, respectively.  Amortization expense for each of the next five years is scheduled to be $4.9 million in 2026, $4.7 million in 2027, $4.4 million in 2028, $3.8 million in 2029 and $3.6 million in 2030.Intangible assets are presented below: September 30,  20252024 (in millions)Capitalized internal-use software:Cost$42.3 $40.1 Accumulated amortization(34.4)(32.4)Capital