Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 191

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 8
Chunk 191
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 Adjustments to reconcile to income tax expense:State income taxes, net of federal benefit9.0 9.6 1.5 Uncertain tax positions0.2 (2.3)0.5 Nondeductible compensation4.0 2.1 1.8 Nondeductible expenses, other than compensation0.7 0.6 0.9 Valuation allowances0.3 3.0 (0.6)Basis difference in foreign investment— 0.1 0.1 Foreign income taxes(1.6)(0.8)(2.0)Excess tax (benefit) deficit related to stock compensation(2.0)(0.6)0.3 Tax credits(2.9)(3.3)(3.5)Goodwill impairment— 1.9 — Other1.4 2.9 1.6 Income tax expense$62.5 $47.5 $23.5 The following table summarizes information concerning our gross unrecognized tax benefits:20252024 (in millions)Balance at beginning of year$3.0 $5.0 Increase related to current year positions0.8 0.8 Decrease as a result of statute of limitations lapse(0.6)(2.8)Balance at end of year$3.2 $3.0 Substantially all unrecognized tax benefits would, if recognized, impact the effective tax rate.  We recognize interest related to uncertain tax positions as interest expense and recognize any penalties incurred as a component of Selling, general and administrative expense within our consolidated statements of operations.  As of September 30, 2025, and 2024, we had $0.4 million and $0.4 million, respectively, of accrued interest expense related to unrecognized tax benefits.

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Table of ContentsIndex to Financial Statements

Deferred income tax balances are presented below: September 30,  20252024 (in millions)Deferred income tax assets:Accrued expenses$18.0 $19.3 Lease liabilities9.1 7.5 Inventories7.9 5.0 State net operating losses1.4 1.9 Net operating losses and credit carryovers16.7 15.9 Stock-based compensation4.8 4.3 Section 174 research and development capital