Company: MWA
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001350593-25-000043
Chunk: 20

Company: Mueller Water Products, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 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 endedNine months endedJune 30,June 30,2025202420252024U.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 benefit4.0 3.5 4.0 3.5 Excess tax benefit related to stock-based compensation— — (1.2)— Tax credits(1.4)(1.8)(1.4)(1.8)Global Intangible Low-Taxed Income0.3 (0.1)0.3 (0.1)Foreign income tax rate differential(0.6)(0.4)(0.6)(0.4)Nondeductible compensation1.5 1.0 1.5 1.0 Uncertain tax positions0.3 0.4 0.3 (0.7)Valuation allowances0.4 0.7 0.4 0.4 Other1.6 0.9 0.7 0.9 Effective income tax rate27.1 %25.2 %25.0 %23.8 %At June 30, 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 nine months ended June 30, 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.

On July 4, 2025, the U.S. government enacted H.R. 1, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”).  OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act enacted in 2017, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.  We are currently assessing its impact on our consolidated financial statements.  We do not expect the OBBBA to have a material impact on our financial statements or our estimated