Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 18

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 18
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 Asset and Liability BalancesDifferences in the timing of revenue recognition, billing and cash collection result in customer receivables, advance payments and billings in excess of revenue recognized.  Customer receivables include amounts billed and currently due from customers as well as unbilled amounts including contract assets.  Amounts are billed in accordance with contractual terms and unbilled amounts arise when the timing of billing differs from the timing of revenue recognized.Advance payments and billings in excess of revenue are recognized and recorded as deferred revenue and are classified as Other current liabilities or Other noncurrent liabilities in the accompanying condensed consolidated balance sheets based on the timing of when we expect to recognize revenue.  Refer to Note 7. for current and noncurrent amounts.  Deferred revenue represents contract liabilities and is recorded when customers remit cash payments in advance of our satisfaction of performance obligations pursuant to contractual arrangements.  Contract liabilities are reversed when the performance obligation is satisfied and revenue is recognized.  Deferred revenue primarily consists of amounts related to monitoring, leak detection, software and hosting services.  During the three months ended March 31, 2025 and 2024, we recognized approximately $2.3 million and $1.9 million, respectively, of revenue that was previously deferred.  For the six months ended March 31, 2025 and 2024, we recognized approximately $4.6 million and $4.2 million of revenue that was previously deferred.  Additionally, during the three months ended March 31, 2025 and 2024, we recorded approximately $2.1 million and $2.4 million, respectively, of additional deferred revenue.  For the six months ended March 31, 2025 and 2024, we recorded approximately $4.2 million and $3.9 million, respectively, of additional deferred revenue.  We estimate that noncurrent deferred revenue will be recognized as follows: $1.0 million in 2026, $1.3 million in 2027, $1.2 million in 2028, $0.7 million in 2029, $0.5 million in 2030 and $0.8 million thereafter.

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The table below represents the balances of our customer receivables and deferred revenue:March 31,September 30, 20252024(in millions)Billed receivables$216.4 $212.7 Unbilled receivables7.0 4.5 Gross customer rece