Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 30

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 8
Chunk 30
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, 2027, and interim periods within those annual reporting periods.  Early adoption is permitted at the beginning of an annual period. Upon adoption, ASU 2025-06 may be applied on a retrospective, prospective or modified prospective basis, with a cumulative effect adjustment to retained earnings required for retrospective or modified prospective adoption.  We are currently evaluating the impact ASU 2025-06 will have on our financial statements and related disclosures.

F- 14

Table of ContentsIndex to Financial Statements

Note 3.    Revenue from Contracts with Customers

We recognize revenue when control of promised products or services is transferred to our customers, in amounts that reflect the consideration to which we expect to be entitled in exchange for those products or services.  We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable.  We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each customer contract or arrangement.The table below presents the balances of our customer receivables and deferred revenue: September 30,  20252024 (in millions)Billed receivables$210.8 $212.7 Unbilled receivables4.7 4.5      Gross customer receivables215.5 217.2 Allowance for credit losses(3.6)(8.3)     Receivables, net$211.9 $208.9 Deferred revenue$12.1 $12.8 Contract 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 classified as Other current liabilities or Other noncurrent liabilities in the accompanying consolidated balance sheets based on the timing of when we expect to recognize revenue.  Deferred revenue represents contract liabilities and is recorded when customers remit cash payments in advance of our satisfaction of performance obligations under contractual arrangements.  Contract liabilities are reversed when the performance obligation is satisfied and