Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 20

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 product sold and benefits received, we have applied the practical expedient to expense them as incurred and therefore do not capitalize the related costs.  Our sales commissions are paid based on orders or shipments, and we reserve the right to claw back any commissions in the event of product returns, cancellations or lost collections.  

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Note 3. Income Taxes 

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below: Three months endedSix months endedMarch 31,March 31,2025202420252024U.S. federal statutory income tax rate21.0 %21.0 %21.0 %21.0 %Adjustments to reconcile to the effective tax rate:State income taxes, net of federal benefit3.9 3.4 3.9 3.4 Excess tax (benefit) deficit related to stock-based compensation(1.0)— (2.0)0.1 Tax credits(1.6)(2.1)(1.6)(2.1)Global Intangible Low-Taxed Income0.3 0.2 0.3 0.2 Foreign income tax rate differential(0.4)(0.8)(0.4)(0.8)Nondeductible compensation1.4 1.0 1.4 1.0 Uncertain tax positions0.3 0.5 0.5 (1.6)Valuation allowances— — 0.1 — Other0.3 1.6 0.5 1.5 Effective income tax rate24.2 %24.8 %23.7 %22.7 %At March 31, 2025 and September 30, 2024, the gross liabilities for unrecognized income tax benefits were $3.6 million and $3.0 million, respectively, and are included in Other noncurrent liabilities.During the six months ended March 31, 2024, we recorded $1.6 million in income tax benefits due to the release of an uncertain tax position that expired on December 31, 2023.

Note 4.  Borrowing Arrangements 

The components of our long-term debt are as follows: March 31,September 30,  20252024 (in millions)4.0% Senior Notes$450.0 $450