Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 82

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 82
---
 months ended March 31, 2025 were $4.1 million and consisted of expenses associated with our leadership transition, non-cash asset impairment and certain transaction-related costs.  Strategic reorganization and other charges for the six months ended March 31, 2024 were $9.8 million and consisted of expenses associated with our leadership transition, severance, certain transaction-related costs, as well as cybersecurity incidents expense. 

Net interest expense for the six months ended March 31, 2025 was $3.9 million as compared with $6.9 million in the prior year period, a decrease of $3.0 million or 43.5%, primarily due to higher interest income.  The components of net interest expense are as shown below: 

Six months endedMarch 31,20252024 (in millions)4.0% Senior Notes$9.0 $9.0 Deferred financing costs amortization0.5 0.5 ABL Agreement0.4 0.5 Capitalized interest(0.2)(0.1)Other interest expense0.4 0.3 Total interest expense10.1 10.2 Interest income(6.2)(3.3)Interest expense, net$3.9 $6.9 

30

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

 Six months endedMarch 31,20252024U.S. federal statutory income tax rate21.0 %21.0 %Adjustments to reconcile to the effective tax rate:State income taxes, net of federal benefit3.9 3.4 Excess tax (benefit) deficit related to stock-based compensation(2.0)0.1 Tax credits(1.6)(2.1)Global Intangible Low-Taxed Income0.3 0.2 Foreign income tax rate differential(0.4)(0.8)Nondeductible compensation1.4 1.0 Uncertain tax positions0.5 (1.6)Valuation allowances0.1 — Other0.5 1.5 Effective income tax rate23.7 %22.7 %

Segment Analysis 

Water Flow Solutions

Net sales for the six months ended March 31, 2025 were $390.8 million as compared with $347.1 million in the prior year period, an increase of