Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 446

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 446
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 value of the asset group.Workers’ Compensation.  Our exposure to workers’ compensation claims is generally limited to $0.8 million per incident.  Liabilities, including those related to claims incurred but not reported, are recorded principally using periodic valuations based on discounted future expected payments and using historical data combined with insurance industry data when historical data is limited.  Our gross workers’ compensation liability, which is included in Other current liabilities and Other noncurrent liabilities, was $10.4 million as of September 30, 2025, and we expect to recover $6.9 million in insurance and reimbursements which is included as a receivable in Other current assets and Other noncurrent assets.  As of September 30, 2024, our gross worker’s compensation liability was $10.4 million and our insurance receivable was $6.5 million.Warranty Costs.  We accrue for costs to repair and/or replace products pursuant to the terms of our assurance warranties.  These costs include labor, materials, equipment, freight and overhead costs.  We accrue for the estimated cost of product warranties at the time of sale.  We monitor and analyze our warranty experience and costs periodically and revise our warranty accruals as necessary.  Factors considered in our accrual analyses include warranty terms, specific claim situations, historical incurred and projected failure rates, the nature of product failures, product and labor costs, and general business conditions. Activity in our accrued warranty, reported within Other current liabilities and Other noncurrent liabilities, is presented below:202520242023 (in millions)Balance at beginning of year$23.6 $15.7 $10.7 Provision charged to expense14.9 13.0 14.8 Warranty utilization(12.9)(5.1)(9.8)Balance at end of year$25.6 $23.6 $15.7 Deferred Financing Costs.  Costs to obtain debt are deferred and amortized to expense over the term of the underlying debt agreement.  When an amendment to the underlying debt or a prepayment occurs, the remaining cost and the period over which the financing costs are amortized are reassessed.Deferred financing costs are offset against the underlying long-term debt in the accompanying consolidated balance sheets.  Deferred financing costs under agreements that do not have outstanding debt such as our asset-based lending agreement (“ABL”), and in other instances, such as our NMTC transaction, are included in Other noncurrent assets consistent with