Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 177

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 8
Chunk 177
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 and intangibles with finite lives, are amortized and reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets of an asset group may not be recoverable.  An asset group is generally established by identifying the lowest level of cash flows generated by a group of assets that are largely independent of the cash flows of other groups of assets.  Recoverability of an asset group to be held and used is measured by a comparison of the carrying amount of the asset group to estimated undiscounted future cash flows expected to be generated by the asset group.  If the carrying amount of an asset group exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount exceeds the fair value of the asset group.Workers’ Compensation.  Our exposure to workers’ compensation claims is generally limited to $0.8 million per incident.  Liabilities, including those related to claims incurred but not reported, are recorded principally using periodic valuations based on discounted future expected payments and using historical data combined with insurance industry data when historical data is limited.  Our gross workers’ compensation liability, which is included in Other current liabilities and Other noncurrent liabilities, was $10.4 million as of September 30, 2025, and we expect to recover $6.9 million in insurance and reimbursements which is included as a receivable in Other current assets and Other noncurrent assets.  As of September 30, 2024, our gross worker’s compensation liability was $10.4 million and our insurance receivable was $6.5 million.Warranty Costs.  We accrue for costs to repair and/or replace products pursuant to the terms of our assurance warranties.  These costs include labor, materials, equipment, freight and overhead costs.  We accrue for the estimated cost of product warranties at the time of sale.  We monitor and analyze our warranty experience and costs periodically and revise our warranty accruals as necessary.  Factors considered in our accrual analyses include warranty terms, specific claim situations, historical incurred and projected failure rates, the nature of product failures, product and labor costs, and general business conditions. Activity in our accrued warranty, reported within Other current liabilities and Other noncurrent liabilities, is presented below:202520242023 (in millions)Balance at beginning of year$23.6 $15.7 $10.7 Provision charged to expense14.9 13.0 14.8 Warranty utilization(12.