Company: MWA
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001350593-25-000043
Chunk: 142

Company: Mueller Water Products, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 2
Chunk 142
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 dollar versus the Israeli shekel during the quarter, inflation of approximately 3%, higher personnel-related expense and third-party fees, partially offset by lower intangible amortization and engineering expense.  The unfavorable foreign currency impact for the three months ended June 30, 2025 was $7.7 million.  SG&A as a percentage of net sales was 18.7% and 17.2% for the three months ended June 30, 2025 and June 30, 2024, respectively.

Strategic reorganization and other charges for the three months ended June 30, 2025 were $1.0 million and consisted of expenses associated with our leadership transition.  Strategic reorganization and other charges for the three months ended June 30, 2024 were $2.9 million and consisted of expenses associated with non-cash asset impairment, our leadership transition, severance and certain transaction-related expenses. 

Net interest expense for the three months ended June 30, 2025 was $1.7 million as compared with $2.8 million in the prior year period, a decrease of $1.1 million or 39.3%, primarily due to higher interest income.  The components of net interest expense are as shown below: 

Three months endedJune 30,20252024 (in millions)4.0% Senior Notes$4.5 $4.5 Deferred financing costs amortization0.2 0.2 ABL Agreement0.2 0.2 Capitalized interest(0.1)— Other interest expense— 0.2 Total interest expense4.8 5.1 Interest income(3.1)(2.3)Interest expense, net$1.7 $2.8 

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The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below:

 Three months endedJune 30,20252024U.S. federal statutory income tax rate21.0 %21.0 %Adjustments to reconcile to the effective tax rate:State income taxes, net of federal benefit4.0 3.5 Tax credits(1.4)(1.8)Global Intangible Low-Taxed Income0.3 (0.1)Foreign income tax rate differential(0.6)(0.4)Nondeductible compensation1.5 1.0 Uncertain tax positions0.3 0.4