Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 460

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 460
---
0)(0.6)0.3 Tax credits(2.9)(3.3)(3.5)Goodwill impairment— 1.9 — Other1.4 2.9 1.6 Income tax expense$62.5 $47.5 $23.5 The following table summarizes information concerning our gross unrecognized tax benefits:20252024 (in millions)Balance at beginning of year$3.0 $5.0 Increase related to current year positions0.8 0.8 Decrease as a result of statute of limitations lapse(0.6)(2.8)Balance at end of year$3.2 $3.0 Substantially all unrecognized tax benefits would, if recognized, impact the effective tax rate.  We recognize interest related to uncertain tax positions as interest expense and recognize any penalties incurred as a component of Selling, general and administrative expense within our consolidated statements of operations.  As of September 30, 2025, and 2024, we had $0.4 million and $0.4 million, respectively, of accrued interest expense related to unrecognized tax benefits.

F- 21

Table of ContentsIndex to Financial Statements

Deferred income tax balances are presented below: September 30,  20252024 (in millions)Deferred income tax assets:Accrued expenses$18.0 $19.3 Lease liabilities9.1 7.5 Inventories7.9 5.0 State net operating losses1.4 1.9 Net operating losses and credit carryovers16.7 15.9 Stock-based compensation4.8 4.3 Section 174 research and development capitalization30.4 23.1 Other3.0 5.3 Total deferred income tax assets91.3 82.3 Valuation allowance(18.0)(18.0)Total deferred income tax assets, net of valuation allowance73.3 64.3 Deferred income tax liabilities:Intangible assets67.4 68.2 Lease assets7.9 6.7 Basis difference in foreign investment7.0 6.0 Pension4.5 3.0 Property, plant and equipment36.4 34.7 Other1.1 1.1 Total deferred income tax liabilities124.3 119.7 Net deferred