Company: MWA
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001350593-25-000043
Chunk: 15

Company: Mueller Water Products, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 1
Chunk 15
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2024-03”).  ASU 2024-03 requires public business entities to disclose disaggregated information about certain income statement expense line 

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items.  These expenses include purchases of inventory, employee compensation, depreciation and intangible asset amortization for each income statement line item that contains those expenses.  Additionally, specified expenses, gains or losses that are currently required to be disclosed must now be included in the disaggregated income statement expense line item disclosures and any remaining amounts should be described qualitatively.  There is also a requirement to separately disclose total selling expenses and provide a definition of those expenses.  This guidance is effective for fiscal years beginning after December 15, 2026, and interim periods within fiscal years beginning after December 15, 2027.  Upon adoption, ASU 2024-03 should be applied on a prospective basis while retrospective application is permitted.  We are currently evaluating the impact ASU 2024-03 will have on our financial statements and related disclosures.Strategic Reorganization and Other Charges The Company expects to incur certain costs related to the decommissioning and demolition of its legacy foundry in Decatur, Illinois, the amount of which is not estimable at this time.  During the nine months ended June 30, 2025, we recorded approximately $5.1 million in Strategic reorganization and other charges consisting of expenses associated with our leadership transition, non-cash asset impairment in our Water Flow Solutions segment and certain transaction-related expenses.  During the nine months ended June 30, 2024, we recorded approximately $12.7 million in Strategic reorganization and other charges consisting of expenses associated with our leadership transition, certain transaction-related expenses, cybersecurity incidents expense, non-cash asset impairment in our Water Management Solutions segment and severance.  Activity in accrued Strategic reorganization and other charges, reported as part of Other current liabilities, is presented below: Nine months endedJune 30,20252024(in millions)Beginning balance$3.4 $6.6 Expenses incurred5.1 12.7 Amounts paid and other adjustments, net(6.7)(15.2)Ending balance$1.8 $4.1 New Markets Tax Credit ProgramOn December 22, 2020, we entered into a financing transaction with Wells Fargo Community Investment Holdings, LLC (“Wells Fargo”) related to our brass foundry construction project in Decatur, Illinois under a qualified New Markets Tax Credit program (“NM