Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 100

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 15
Chunk 100
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.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 the term of the instrument.  Deferred financing costs of $3.5 million as of September 30, 2025, include:  $2.5 million related to the 4.0% Senior Unsecured Notes (“4.0% Senior Notes”), $0.9 million related to the ABL and $0.1 million related to the NMTC transaction which are amortized on a straight-line basis.  These amounts are amortized over the remaining term of the respective debt using the effective interest method or on a straight-line basis.  Refer to Note 7. for disclosures related to our borrowing arrangements.

F- 12

Table of ContentsIndex to Financial Statements

Income Taxes.  Deferred tax liabilities and deferred tax assets are recognized for the expected future tax consequences of events that have been included in the financial statements or tax returns.  Such assets and liabilities are determined based on the differences between the financial statement basis and the tax basis of assets and liabilities, using tax rates in effect for the years in which the differences are expected to reverse.  A valuation allowance is provided when, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized.We record tax benefits for positions that management believes are more likely than not of being sustained under audit based solely on the technical merits of the associated tax position.  The amount of tax benefit recognized for any position that meets the more-likely-than-not threshold is the largest amount of the tax benefit that we believe is greater than 50% likely of being realized.The Tax Cuts and Jobs Act (“Act”) subjects us to tax on global intangible low-taxed income (“GILTI”) earned