Company: MWA
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001350593-25-000043
Chunk: 84

Company: Mueller Water Products, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 84
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8%, primarily due to lower intangible amortization, partially offset by unfavorable foreign currency fluctuation as a result of depreciation of the U.S. dollar compared with the Israeli shekel, as well as higher personnel-related expenses, third-party fees and approximately 3% inflation.  SG&A as a percentage of net sales was 17.2% and 18.8% for the nine months ended June 30, 2025 and June 30, 2024, respectively.

Strategic reorganization and other charges for the nine months ended June 30, 2025 were $5.1 million and consisted of expenses associated with our leadership transition, non-cash asset impairment and certain transaction-related costs.  Strategic reorganization and other charges for the nine months ended June 30, 2024 were $12.7 million and consisted of expenses associated with our leadership transition, certain transaction-related expenses, cybersecurity incidents expense, non-cash asset impairment and severance. 

Net interest expense for the nine months ended June 30, 2025 was $5.6 million as compared with $9.7 million in the prior year period, a decrease of $4.1 million or 42.3%, primarily due to higher interest income.  The components of net interest expense are as shown below: 

Nine months endedJune 30,20252024 (in millions)4.0% Senior Notes$13.5 $13.5 Deferred financing costs amortization0.7 0.7 ABL Agreement0.6 0.7 Capitalized interest(0.3)(0.1)Other interest expense0.4 0.5 Total interest expense14.9 15.3 Interest income(9.3)(5.6)Interest expense, net$5.6 $9.7 

31

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below:

 Nine months endedJune 30,20252024U.S. federal statutory income tax rate21.0 %21.0 %Adjustments to reconcile to the effective tax rate:State income taxes, net of federal benefit4.0 3.5 Excess tax benefit related to stock-based compensation(1.2)— Tax credits(1.4)(1.8)Global Intangible Low-Taxed Income0.3 (0.1)Foreign income tax rate differential(0.6)(