Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 175

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 8
Chunk 175
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 and Cash Equivalents.  All highly liquid investments with maturities of 90 days or less when purchased are classified as cash equivalents.  Where there is no right of offset against cash balances, outstanding checks are included in Accounts payable.Receivables, net.  Receivables are amounts due from customers.  To reduce credit risk, credit investigations are generally performed prior to accepting orders from new customers and, when necessary, we require letters of credit, bonds or other instruments to ensure payment.We present trade receivables net of expected customer discounts and an allowance for credit losses.  Our consolidated statements of operations include the expected credit losses either arising or changing during the period for our receivables.  In the period in which we determine a receivable will not be collected, in whole or in part, we write-off the uncollectible amount against the allowance.  Our judgments of expected credit losses are based on prior collection experience, customer creditworthiness, other current conditions, and forecasts of economic trends which may affect the collectability of the receivables.  Differences in actual rather than expected industry or economic conditions could impact our customers’ ability to pay resulting in actual credit losses differing from the amounts included in the allowance and such differences could be significant.  The following table summarizes information concerning our allowance for credit losses:202520242023 (in millions)Balance at beginning of year$8.3 $7.3 $5.6 Provision charged to expense0.2 2.7 1.9 Write-offs and other(4.9)(1.7)(0.2)Balance at end of year$3.6 $8.3 $7.3 Inventories, net.  Inventories are recorded at the lower of first-in, first-out method cost or estimated net realizable value.  We evaluate our inventory in terms of excess and obsolete exposures.  This evaluation includes such factors as anticipated usage, inventory turnover, inventory levels and ultimate product sales value.  Inventory cost includes an overhead component that is affected by levels of production and actual costs incurred.  We periodically evaluate the effects of production levels and costs capitalized as part of Inventories, net.The following table summarizes information concerning our inventory valuation reserves:202520242023 (in millions)Balance at beginning of year$21.4 $16.8 $16.5 Provision charged to expense11.9 13.3 3.8 Inventory disposed(9