Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 444

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 444
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 which we determine a receivable will not be collected, in whole or in part, we write-off the uncollectible amount against the allowance.  Our judgments of expected credit losses are based on prior collection experience, customer creditworthiness, other current conditions, and forecasts of economic trends which may affect the collectability of the receivables.  Differences in actual rather than expected industry or economic conditions could impact our customers’ ability to pay resulting in actual credit losses differing from the amounts included in the allowance and such differences could be significant.  The following table summarizes information concerning our allowance for credit losses:202520242023 (in millions)Balance at beginning of year$8.3 $7.3 $5.6 Provision charged to expense0.2 2.7 1.9 Write-offs and other(4.9)(1.7)(0.2)Balance at end of year$3.6 $8.3 $7.3 Inventories, net.  Inventories are recorded at the lower of first-in, first-out method cost or estimated net realizable value.  We evaluate our inventory in terms of excess and obsolete exposures.  This evaluation includes such factors as anticipated usage, inventory turnover, inventory levels and ultimate product sales value.  Inventory cost includes an overhead component that is affected by levels of production and actual costs incurred.  We periodically evaluate the effects of production levels and costs capitalized as part of Inventories, net.The following table summarizes information concerning our inventory valuation reserves:202520242023 (in millions)Balance at beginning of year$21.4 $16.8 $16.5 Provision charged to expense11.9 13.3 3.8 Inventory disposed(9.9)(8.7)(3.5)Balance at end of year$23.4 $21.4 $16.8 Maintenance and Repair Supplies and Tooling.  Maintenance and repair supplies and tooling is included in Other current assets and Other noncurrent assets.  Costs for perishable tools and maintenance items are expensed when put into service.  Costs for more durable items are amortized over their estimated useful lives, ranging from 3 to 10 years. Property, Plant and Equipment, net.  Property, plant and equipment is recorded at cost, less accumulated depreciation.  Depreciation is recorded using the straight-line method over the estimated useful lives of the assets once the asset is ready