(State or other jurisdiction of | (I.R.S. Employer | |||||||
incorporation or organization) | Identification No.) |
December 31, | September 30, | ||||||||||
2019 | 2019 | ||||||||||
(in millions, except share amounts) | |||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Receivables, net | |||||||||||
Inventories | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets | |||||||||||
Other noncurrent assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and equity: | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt | |||||||||||
Deferred income taxes | |||||||||||
Other noncurrent liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (Note 13.) | |||||||||||
Common stock: 600,000,000 shares authorized; 157,889,045 and 157,462,140 shares outstanding at December 31, 2019 and September 30, 2019, respectively | |||||||||||
Additional paid-in capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Company stockholders’ equity | |||||||||||
Noncontrolling interest | |||||||||||
Total equity | |||||||||||
Total liabilities and equity | $ | $ |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
(in millions, except per share amounts) | |||||||||||
Net sales | $ | $ | |||||||||
Cost of sales | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Selling, general and administrative | |||||||||||
Strategic reorganization and other charges | |||||||||||
Total operating expenses | |||||||||||
Operating income | |||||||||||
Other expenses (income): | |||||||||||
Pension costs (benefits) other than service | ( | ( | |||||||||
Interest expense, net | |||||||||||
Walter Energy Accrual | |||||||||||
Net other expense | |||||||||||
Income (loss) before income taxes | ( | ||||||||||
Income tax expense (benefit) | ( | ||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Net income (loss) per share: | |||||||||||
Basic | $ | $ | ( | ||||||||
Diluted | $ | $ | ( | ||||||||
Weighted average shares outstanding: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Dividends declared per share | $ | $ |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
(in millions) | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Other comprehensive income (loss): | |||||||||||
Pension | |||||||||||
Income tax effects | ( | ( | |||||||||
Foreign currency translation | ( | ||||||||||
( | |||||||||||
Comprehensive income (loss) | $ | $ | ( |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
(in millions) | |||||||||||
Common stock | |||||||||||
Balance, beginning of period | $ | $ | |||||||||
Change in common stock at par value | |||||||||||
Balance, end of period | |||||||||||
Additional paid-in-capital | |||||||||||
Balance, beginning of period | |||||||||||
Dividends declared | ( | ( | |||||||||
Buyout of noncontrolling interest | ( | ||||||||||
Shares retained for employee taxes | ( | ( | |||||||||
Stock-based compensation | |||||||||||
Stock issued under stock compensation plan | |||||||||||
Balance, end of period | |||||||||||
Accumulated deficit | |||||||||||
Balance, beginning of period | ( | ( | |||||||||
Net income (loss) | ( | ||||||||||
Balance, end of period | ( | ( | |||||||||
Accumulated other comprehensive income (loss) | |||||||||||
Balance, beginning of period | ( | ( | |||||||||
Other comprehensive income (loss) | ( | ||||||||||
Balance, end of period | ( | ( | |||||||||
Noncontrolling interest | |||||||||||
Balance, beginning of period | |||||||||||
Acquisition of joint venture partner’s interest | ( | ||||||||||
Net income | |||||||||||
Balance, end of period | |||||||||||
Total stockholders' equity | $ | $ |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
(in millions) | |||||||||||
Operating activities: | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization | |||||||||||
Stock-based compensation | |||||||||||
Retirement plans | |||||||||||
Deferred income taxes | ( | ||||||||||
Other, net | ( | ||||||||||
Changes in assets and liabilities: | |||||||||||
Receivables | |||||||||||
Inventories | ( | ( | |||||||||
Other assets | ( | ||||||||||
Accounts payable | ( | ( | |||||||||
Walter Energy Accrual | ( | ||||||||||
Other current liabilities | ( | ( | |||||||||
Long-term liabilities | ( | ( | |||||||||
Net cash (used in) provided by operating activities | ( | ||||||||||
Investing activities: | |||||||||||
Business acquisitions, net of cash received | ( | ||||||||||
Capital expenditures | ( | ( | |||||||||
Proceeds from sales of assets | |||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Financing activities: | |||||||||||
Dividends | ( | ( | |||||||||
Repayment of Krausz debt | ( | ||||||||||
Acquisition of joint venture partner’s interest | ( | ||||||||||
Employee taxes related to stock-based compensation | ( | ( | |||||||||
Common stock issued | |||||||||||
Other | |||||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of currency exchange rate changes on cash | ( | ||||||||||
Net change in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
(in millions) | |||||||||||
Beginning balance | $ | $ | |||||||||
Expense accrued | |||||||||||
Amounts paid | ( | ( | |||||||||
Ending balance | $ | $ |
Assets, net of cash: | |||||
Receivables | $ | ||||
Inventories | |||||
Other current assets | |||||
Property, plant and equipment | |||||
Identified intangible assets: | |||||
Patents | |||||
Customer relationships | |||||
Tradenames | |||||
Favorable leasehold interests | |||||
Goodwill | |||||
Liabilities: | |||||
Accounts payable | ( | ||||
Other current liabilities | ( | ||||
Deferred income taxes | ( | ||||
Fair value of assets acquired, net of liabilities assumed | |||||
Repayment of Krausz debt | ( | ||||
Consideration paid to seller | $ |
December 31, | September 30, | ||||||||||
2019 | 2019 | ||||||||||
(in millions) | |||||||||||
Billed receivables | $ | $ | |||||||||
Unbilled receivables | |||||||||||
Total customer receivables | $ | $ | |||||||||
Deferred revenues | $ | $ |
Operating lease cost | $ | ||||
Finance lease cost | |||||
Total lease expense | $ |
Cash Flow Information: | |||||
Operating cash flows from operating leases | $ | ||||
Financing cash flows from finance leases | $ |
Balance Sheet Information: | |||||||||||
Right of use assets | Balance Sheet Caption | ||||||||||
Operating leases | Other noncurrent assets | $ | |||||||||
Finance leases | Plant, property and equipment | ||||||||||
Total right of use assets | $ | ||||||||||
Lease liabilities | Balance Sheet Caption | ||||||||||
Operating leases - current | Other current liabilities | $ | |||||||||
Operating leases - noncurrent | Other noncurrent liabilities | ||||||||||
Finance leases - current | Current portion of long-term debt | ||||||||||
Finance leases - noncurrent | Long-term debt | ||||||||||
Total lease liabilities | $ |
Lease term and discount rate: | |||||
Weighted-average remaining lease term (years): | |||||
Operating leases | |||||
Finance leases | |||||
Weighted-average interest rate: | |||||
Operating leases | % | ||||
Finance leases | % |
Operating Leases | Finance Leases | ||||||||||
(in millions) | |||||||||||
2020 | $ | $ | |||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Less: imputed interest | |||||||||||
Present value of lease liabilities | $ | $ |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
U.S. federal statutory income tax rate | % | % | |||||||||
Adjustments to reconcile to the effective tax rate: | |||||||||||
State income taxes, net of federal benefit | |||||||||||
Excess tax (benefits) related to stock compensation | ( | ||||||||||
Tax credits | ( | ||||||||||
Global Intangible Low-taxed Income | ( | ||||||||||
Foreign income taxes | ( | ||||||||||
Valuation allowances | ( | ||||||||||
Other | ( | ||||||||||
23.1 | % | 25.6 | % | ||||||||
Walter Energy Accrual | ( | ( | |||||||||
Remeasurement related to tax law changes | |||||||||||
Effective income tax rate | 22.8 | % | 21.9 | % |
December 31, | September 30, | ||||||||||
2019 | 2019 | ||||||||||
(in millions) | |||||||||||
5.5% Senior Notes | $ | $ | |||||||||
ABL Agreement | |||||||||||
Finance leases | |||||||||||
Less deferred financing costs | |||||||||||
Less current portion | |||||||||||
Long-term debt | $ | $ |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
(in millions) | |||||||||||
Service cost | $ | $ | |||||||||
Pension costs (benefits) other than service: | |||||||||||
Interest cost | |||||||||||
Expected return on plan assets | ( | ( | |||||||||
Amortization of actuarial net loss | |||||||||||
Pension costs (benefits) other than service | ( | ( | |||||||||
Net periodic (benefit) cost | $ | ( | $ |
December 31, 2019 | |||||
Dividend yield | % | ||||
Risk-free rate | % | ||||
Expected term (in years) |
Number granted | Weighted average grant date fair value per instrument | Total grant date fair value (in millions) | ||||||||||||||||||
Restricted stock units | $ | $ | ||||||||||||||||||
Employee stock purchase plan instruments | ||||||||||||||||||||
Phantom Plan awards | ||||||||||||||||||||
PRSUs: 2020 award | ||||||||||||||||||||
2019 award | ||||||||||||||||||||
2018 award | ||||||||||||||||||||
MRSUs | ||||||||||||||||||||
$ |
December 31, | September 30, | ||||||||||
2019 | 2019 | ||||||||||
(in millions) | |||||||||||
Inventories: | |||||||||||
Purchased components and raw material | $ | $ | |||||||||
Work in process | |||||||||||
Finished goods | |||||||||||
$ | $ | ||||||||||
Other current assets: | |||||||||||
Maintenance and repair tooling | $ | $ | |||||||||
Income taxes | |||||||||||
Other | |||||||||||
$ | $ | ||||||||||
Property, plant and equipment: | |||||||||||
Land | $ | $ | |||||||||
Buildings | |||||||||||
Machinery and equipment | |||||||||||
Construction in progress | |||||||||||
Accumulated depreciation | ( | ( | |||||||||
$ | $ | ||||||||||
Other current liabilities: | |||||||||||
Compensation and benefits | $ | $ | |||||||||
Customer rebates | |||||||||||
Taxes other than income taxes | |||||||||||
Warranty | |||||||||||
Income taxes | |||||||||||
Environmental | |||||||||||
Interest | |||||||||||
Restructuring | |||||||||||
Walter Energy Accrual | |||||||||||
Other | |||||||||||
$ | $ |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
(in millions) | |||||||||||
Net sales, excluding intercompany: | |||||||||||
Infrastructure | $ | $ | |||||||||
Technologies | |||||||||||
$ | $ | ||||||||||
Operating income (loss): | |||||||||||
Infrastructure | $ | $ | |||||||||
Technologies | ( | ( | |||||||||
Corporate | ( | ( | |||||||||
$ | $ | ||||||||||
Depreciation and amortization: | |||||||||||
Infrastructure | $ | $ | |||||||||
Technologies | |||||||||||
Corporate | |||||||||||
$ | $ | ||||||||||
Strategic reorganization and other charges: | |||||||||||
Infrastructure | $ | $ | |||||||||
Technologies | |||||||||||
Corporate | |||||||||||
$ | $ | ||||||||||
Capital expenditures: | |||||||||||
Infrastructure | $ | $ | |||||||||
Technologies | |||||||||||
Corporate | |||||||||||
$ | $ | ||||||||||
Infrastructure disaggregated net revenues: | |||||||||||
Central | $ | $ | |||||||||
Northeast | |||||||||||
Southeast | |||||||||||
West | |||||||||||
United States | |||||||||||
Canada | |||||||||||
Other international locations | |||||||||||
$ | $ | ||||||||||
Technologies disaggregated net revenues: | |||||||||||
Central | $ | $ | |||||||||
Northeast | |||||||||||
Southeast | |||||||||||
West | |||||||||||
United States | |||||||||||
Canada | |||||||||||
Other international locations | |||||||||||
$ | $ |
Pension, net of tax | Foreign currency translation | Total | |||||||||||||||
(in millions) | |||||||||||||||||
Balance at September 30, 2019 | $ | ( | $ | $ | ( | ||||||||||||
Current period other comprehensive income | $ | ||||||||||||||||
Balance at December 31, 2019 | $ | ( | $ | $ | ( |
Three months ended December 31, 2019 | |||||||||||||||||||||||
Infrastructure | Technologies | Corporate | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net sales | $ | 192.8 | $ | 19.8 | $ | — | $ | 212.6 | |||||||||||||||
Gross profit | $ | 68.2 | $ | 4.4 | $ | — | $ | 72.6 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | 32.5 | 6.4 | 11.0 | 49.9 | |||||||||||||||||||
Strategic reorganization and other charges | — | — | 2.4 | 2.4 | |||||||||||||||||||
32.5 | 6.4 | 13.4 | 52.3 | ||||||||||||||||||||
Operating income (loss) | $ | 35.7 | $ | (2.0) | $ | (13.4) | 20.3 | ||||||||||||||||
Non-operating expenses: | |||||||||||||||||||||||
Pension costs (benefits) other than service | (0.7) | ||||||||||||||||||||||
Interest expense, net | 7.4 | ||||||||||||||||||||||
Walter Energy Accrual | 0.2 | ||||||||||||||||||||||
Income before income taxes | 13.4 | ||||||||||||||||||||||
Income tax expense | 3.1 | ||||||||||||||||||||||
Net income | $ | 10.3 | |||||||||||||||||||||
Three months ended December 31, 2018 | |||||||||||||||||||||||
Infrastructure | Technologies | Corporate | Total | ||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Net sales | $ | 172.0 | $ | 20.8 | $ | — | $ | 192.8 | |||||||||||||||
Gross profit | $ | 56.8 | $ | 3.3 | $ | — | $ | 60.1 | |||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Selling, general and administrative | 25.9 | 7.0 | 8.1 | 41.0 | |||||||||||||||||||
Strategic reorganization and other charges | — | — | 3.2 | 3.2 | |||||||||||||||||||
25.9 | 7.0 | 11.3 | 44.2 | ||||||||||||||||||||
Operating income (loss) | $ | 30.9 | $ | (3.7) | $ | (11.3) | 15.9 | ||||||||||||||||
Pension costs (benefits) other than service | (0.1) | ||||||||||||||||||||||
Interest expense, net | 5.5 | ||||||||||||||||||||||
Walter Energy Accrual | 37.4 | ||||||||||||||||||||||
Loss before income taxes | (26.9) | ||||||||||||||||||||||
Income tax benefit | (5.9) | ||||||||||||||||||||||
Net loss | $ | (21.0) |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
(in millions) | |||||||||||
Notes | $ | 6.2 | $ | 6.2 | |||||||
Deferred financing costs amortization | 0.3 | 0.3 | |||||||||
ABL Agreement | 0.1 | 0.1 | |||||||||
Capitalized interest, including adjustment | 1.3 | — | |||||||||
Other interest expense | — | 0.3 | |||||||||
7.9 | 6.9 | ||||||||||
Interest income | (0.5) | (1.4) | |||||||||
Interest expense, net | $ | 7.4 | $ | 5.5 |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
U.S. federal statutory income tax rate | 21.0 | % | 21.0 | % | |||||||
Adjustments to reconcile to the effective tax rate: | |||||||||||
State income taxes, net of federal benefit | 4.5 | 3.3 | |||||||||
Excess tax (benefits) related to stock compensation | (1.5) | 1.3 | |||||||||
Tax credits | (1.1) | 0.4 | |||||||||
Global Intangible Low-taxed Income | 0.1 | (0.1) | |||||||||
Foreign income taxes | (0.7) | — | |||||||||
Valuation allowance | (0.7) | — | |||||||||
Other | 1.5 | (0.3) | |||||||||
23.1 | % | 25.6 | % | ||||||||
Walter Energy accrual | (0.3) | (5.8) | |||||||||
Transition tax | — | 2.1 | |||||||||
Effective income tax rate | 22.8 | % | 21.9 | % |
Three months ended | |||||||||||
December 31, | |||||||||||
2019 | 2018 | ||||||||||
(in millions) | |||||||||||
Collections from customers | $ | 253.6 | $ | 242.3 | |||||||
Disbursements, other than interest and income taxes | (231.4) | (220.4) | |||||||||
Walter Tax accrual payment | (22.2) | — | |||||||||
Interest payments, net | (12.0) | (11.7) | |||||||||
Income tax payments, net | (0.4) | (0.3) | |||||||||
Cash (used in) provided by operating activities | $ | (12.4) | $ | 9.9 |
Moody’s | Standard & Poor’s | ||||||||||||||||||||||
December 31, | September 30, | December 31, | September 30, | ||||||||||||||||||||
2019 | 2019 | 2019 | 2019 | ||||||||||||||||||||
Corporate credit rating | Ba2 | Ba2 | BB | BB | |||||||||||||||||||
ABL Agreement | Not rated | Not rated | Not rated | Not rated | |||||||||||||||||||
Notes | Ba3 | Ba3 | BB | BB | |||||||||||||||||||
Outlook | Stable | Stable | Stable | Stable |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs | Maximum dollar value of shares that may yet be purchased under the plans or programs (in millions) | ||||||||||||||||||||||
October 1-31, 2019 | — | $ | — | — | — | |||||||||||||||||||||
November 1-30, 2019 | 31,656 | 11.25 | — | — | ||||||||||||||||||||||
December 1-31, 2019 | 32,037 | 11.26 | — | — | ||||||||||||||||||||||
Total | 63,693 | $ | — | — | — |
Exhibit No. | Document | |||||||
10.1 | ||||||||
10.20.4 | ||||||||
31.1* | ||||||||
31.2* | ||||||||
32.1* | ||||||||
32.2* | ||||||||
101* | The following financial information from the Quarterly Report on Form 10-Q for the quarter ended December 31, 2019, formatted in XBRL (Extensible Business Reporting Language), (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Other Comprehensive Loss, (iv) the Condensed Consolidated Statements of Stockholders' Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to Condensed Consolidated Financial Statements. |
MUELLER WATER PRODUCTS, INC. | |||||||||||
Date: | February 5, 2020 | By: | /s/ Michael S. Nancarrow | ||||||||
Michael S. Nancarrow | |||||||||||
Chief Accounting Officer |
/s/ Scott Hall | ||
Scott Hall | ||
Chief Executive Officer |
/s/ Marietta Edmunds Zakas | ||
Marietta Edmunds Zakas | ||
Chief Financial Officer |
/s/ Scott Hall | ||
Scott Hall | ||
Chief Executive Officer |
/s/ Marietta Edmunds Zakas | ||
Marietta Edmunds Zakas | ||
Chief Financial Officer |
Organization (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Oct. 03, 2019 |
Jul. 31, 2014 |
Dec. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2018 |
Mar. 31, 2018 |
|
Segment Reporting Information [Line Items] | ||||||
Beginning balance | $ 1.7 | $ 0.9 | ||||
Restructuring | 2.4 | 3.2 | ||||
Payments | 0.5 | 1.1 | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 51.00% | 49.00% | ||||
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | $ (0.7) | $ (0.1) | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% | |||
Payments to Acquire Interest in Joint Venture | $ 2.2 | $ 0.0 | $ 1.7 | |||
Mueller Co. [Member] | ||||||
Segment Reporting Information [Line Items] | ||||||
Restructuring | $ 0.0 | $ 0.0 |
Borrowing Arrangements (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt and Lease Obligation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-Term Debt | The components of our long-term debt are presented below.
|
Accumulated Other Comprehensive Loss (Tabular) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss is presented below.
|
Acquisitions and Divestitures (Notes) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combination Disclosure [Text Block] | Business Combinations Acquisition of Krausz On December 3, 2018, we completed our acquisition of Krausz, a manufacturer of pipe couplings, grips and clamps with operations in the United States and Israel, for $140.7 million, net of cash acquired, including the assumption and simultaneous repayment of certain debt of $13.2 million. The acquisition of Krausz was financed with cash on hand. We have recognized the assets acquired and liabilities assumed at their estimated acquisition date fair values, with the excess of the purchase price over the estimated fair values of the identifiable net assets acquired recorded as goodwill. The accounting for the business combination is considered final. During the quarter, we reduced property, plant and equipment by $0.3 million, which resulted in an increase in goodwill of $0.3 million. The following is a summary of the fair values of the net assets acquired (in millions):
The goodwill above is attributable to the strategic opportunities and synergies that we expect to arise from the acquisition of Krausz and the value of its workforce. The goodwill is nondeductible for income tax purposes. The intangible assets of $47.7 million consist of indefinite-lived tradenames and patents, customer relationships and favorable leasehold interests with an estimated weighted average useful life of approximately 12 years. We determined the values of the intangible assets using discounted cash flow methods.
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Commitments and Contingencies (Details) $ in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | 9 Months Ended | |
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Dec. 31, 2019
USD ($)
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Mar. 31, 2019
USD ($)
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Mar. 31, 2018
USD ($)
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Jun. 30, 2019
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Loss Contingency, Damages Sought, Value | $ 450.0 | $ 10.0 | ||
Income Tax Examination, Penalties Accrued | 22.2 | |||
IRS-Walter Energy Claim 1 [Member] | ||||
Loss Contingency, Damages Sought, Value | 554.3 | |||
IRS-Walter Energy Claim 2 [Member] | ||||
Loss Contingency, Damages Sought, Value | $ 860.4 | |||
Product Concentration Risk [Member] | ||||
Operating Leases | ||||
Product Warranty Expense | $ 14.1 | $ 9.8 |
Retirement Plans (Narrative) (Details) $ in Millions |
3 Months Ended |
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Dec. 31, 2019
USD ($)
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Decrease in accumulated other comprehensive loss net of tax | $ 0.5 |
Income Taxes Income Tax Rate Reconciliation (Details) |
3 Months Ended | 6 Months Ended | |
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Dec. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
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Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% |
Adjustments to reconcile to the effective tax rate: | |||
State income taxes, net of federal benefit | 4.50% | 3.30% | |
Valuation allowance adjustment related to stock compensation | (0.70%) | 0.00% | |
Tax benefits from stock compensation | (1.50%) | (1.30%) | |
Tax credits | (1.10%) | (0.40%) | |
Effective Income Tax Rate Reconciliation, GILTI, percent | 0.10% | (0.10%) | |
Other | 1.50% | (0.30%) | |
Walter Energy accrual | (0.30%) | (5.80%) | |
Change in rate for deferred taxes | 0.00% | 2.10% | |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (0.70%) | 0.00% |
Acquisitions and Divestitures (Tables) |
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Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following is a summary of the fair values of the net assets acquired (in millions):
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Borrowing Arrangements |
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Long-term Debt and Lease Obligation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowing Arrangements | Borrowing Arrangements The components of our long-term debt are presented below.
5.5% Senior Unsecured Notes. On June 12, 2018, we privately issued $450.0 million of 5.5% Senior Unsecured Notes (“Notes”), which mature in 2026 and bear interest at 5.5%. We capitalized $6.6 million of financing costs, which are being amortized over the term of the Notes using the effective interest method. Proceeds from the Notes, along with other cash, were used to repay our Term Loan. Substantially all of our U.S. subsidiaries guarantee the Notes, which are subordinate to borrowings under the ABL. Based on quoted market prices, the outstanding Notes had a fair value of $473.6 million at December 31, 2019. ABL Agreement. At December 31, 2019, our asset based lending agreement (“ABL Agreement”) consisted of a revolving credit facility for up to $175 million of revolving credit borrowings, swing line loans and letters of credit. The ABL Agreement permits us to increase the size of the credit facility by an additional $150 million in certain circumstances subject to adequate borrowing base availability. We may borrow up to $25 million through swing line loans and we are permitted to issue up to $60 million of letters of credit. Borrowings under the ABL Agreement bear interest at a floating rate equal to LIBOR, plus a margin ranging from 125 to 150 basis points, or a base rate, as defined in the ABL Agreement, plus a margin ranging from 25 to 50 basis points. At December 31, 2019, the applicable rate was LIBOR plus 125 basis points. The ABL Agreement terminates on July 13, 2021. We pay a commitment fee for any unused borrowing capacity under the ABL Agreement of 25 basis points per annum. Our obligations under the ABL Agreement are secured by a first-priority perfected lien on all of our U.S. receivables and inventories, certain cash and other supporting obligations. Borrowings are not subject to any financial maintenance covenants unless excess availability is less than the greater of $17.5 million and 10% of the Loan Cap as defined in the ABL Agreement. Excess availability based on December 31, 2019 data, as reduced by outstanding letters of credit and accrued fees and expenses of $14.5 million, was $122.0 million.
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Cover Page Document - shares |
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Dec. 31, 2019 |
Jan. 31, 2020 |
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Cover Page [Abstract] | ||
Entity Incorporation, State or Country Code | DE | |
Document Type | 10-Q | |
Document Type | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Entity File Number | 001-32892 | |
Entity Registrant Name | MUELLER WATER PRODUCTS, INC. | |
Entity Tax Identification Number | 20-3547095 | |
Entity Address, Address Line One | 1200 Abernathy Road N.E | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30328 | |
City Area Code | (770) | |
Local Phone Number | 206-4200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 158,035,863 | |
Trading Symbol | MWA | |
Security Exchange Name | NYSE |
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions |
3 Months Ended | |
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Dec. 31, 2019 |
Dec. 31, 2018 |
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Net Income (Loss) Attributable to Parent | $ 10.3 | $ (21.0) |
Other comprehensive income (loss): | ||
Minimum pension liability | 0.7 | 0.5 |
Income tax effects | (0.2) | (0.1) |
Foreign currency translation | 3.5 | (1.2) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 4.0 | (0.8) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 14.3 | $ (21.8) |
Segment Information |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | Segment Information Summarized financial information for our segments is presented below.
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Derivative Financial Instruments (Details) - USD ($) $ in Millions |
Dec. 31, 2019 |
Sep. 30, 2019 |
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Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Other noncurrent liabilities | $ 0.6 | $ 0.3 |
Income Taxes (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Sep. 30, 2019 |
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Income Tax Disclosure [Abstract] | ||||
Unrecognized Tax Benefits | $ 3.5 | $ 3.3 | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 35.00% | |
State income taxes, net of federal benefit | 4.50% | 3.30% | ||
Tax benefits from stock compensation | (1.50%) | (1.30%) | ||
Tax credits | (1.10%) | (0.40%) | ||
Other | 1.50% | (0.30%) | ||
Walter Energy accrual | (0.30%) | (5.80%) |
Derivative Financial Instruments (Notes) |
3 Months Ended |
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Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments In connection with the acquisition of Singer Valve in 2017, we loaned funds to one of our Canadian subsidiaries. Although this intercompany loan has no direct effect on our consolidated financial statements, it creates exposure to currency risk for the Canadian subsidiary. To reduce this exposure, we entered into a U.S. dollar-Canadian dollar swap contract with the Canadian subsidiary and an offsetting Canadian dollar-U.S. dollar swap with a domestic bank. We have not designated these swaps as hedges and the changes in their fair values are included in earnings, where they offset the currency gains and losses associated with the intercompany loan. The values of our currency swap contracts were liabilities of $0.6 million and $0.3 million as of December 31, 2019 and September 30, 2019, respectively, and are included in other noncurrent liabilities in our Condensed Consolidated Balance Sheets. |
Commitments and Contingencies |
3 Months Ended |
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Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies We are involved in various legal proceedings that have arisen in the normal course of operations, including the proceedings summarized below. We provide for costs relating to these matters when a loss is probable and the amount is reasonably estimable. Administrative costs related to these matters are expensed as incurred. The effect of the outcome of these matters on our financial statements cannot be predicted with certainty as any such effect depends on the amount and timing of the resolution of such matters. Other than the litigation described below, we do not believe that any of our outstanding litigation would have a material adverse effect on our business or prospects. Environmental. We are subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the operations at many of our properties and with respect to remediating environmental conditions that may exist at our own or other properties. We accrue for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and reasonably estimable. In the acquisition agreement pursuant to which a predecessor to Tyco International plc, now Johnson Controls International plc (“Tyco”), sold our businesses to a previous owner in August 1999, Tyco agreed to indemnify us and our affiliates, among other things, for all “Excluded Liabilities.” Excluded Liabilities include, among other things, substantially all liabilities relating to the time prior to August 1999, including environmental liabilities. The indemnity survives indefinitely. Tyco’s indemnity does not cover liabilities to the extent caused by us or the operation of our businesses after August 1999, nor does it cover liabilities arising with respect to businesses or sites acquired after August 1999. Since 2007, Tyco has engaged in multiple corporate restructurings, split-offs and divestitures. While none of these transactions directly affects the indemnification obligations of the Tyco indemnitors under the 1999 acquisition agreement, the result of such transactions is that the assets of, and control over, such Tyco indemnitors has changed. Should any of these Tyco indemnitors become financially unable or fail to comply with the terms of the indemnity, we may be responsible for such obligations or liabilities. On July 13, 2010, Rohcan Investments Limited, the former owner of property leased by Mueller Canada Ltd. and located in Milton, Ontario, filed suit against Mueller Canada Ltd. and its directors seeking C$10.0 million in damages arising from the defendants’ alleged environmental contamination of the property and breach of lease. Mueller Canada Ltd. leased the property from 1988 through 2008. We are pursuing indemnification from a former owner for certain potential liabilities that are alleged in this lawsuit, and we have accrued for other liabilities not covered by indemnification. On December 7, 2011, the Court denied the plaintiff’s motion for summary judgment. The purchaser of U.S. Pipe has been identified as a “potentially responsible party” (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act in connection with a former manufacturing facility operated by U.S. Pipe that was in the vicinity of a proposed Superfund site located in North Birmingham, Alabama. Under the terms of the acquisition agreement relating to our sale of U.S. Pipe, we agreed to indemnify the purchaser for certain environmental liabilities, including those arising out of the former manufacturing site in North Birmingham. Accordingly, the purchaser tendered the matter to us for indemnification, which we accepted. Ultimate liability for the site will depend on many factors that have not yet been determined, including the determination of EPA’s remediation costs, the number and financial viability of the other PRPs (there are four other PRPs currently) and the determination of the final allocation of the costs among the PRPs. Accordingly, because the amount of such costs cannot be reasonably estimated at this time, no amounts have been accrued for this matter at December 31, 2019. Walter Energy. We were a member of the Walter Energy, Inc (“Walter Energy”) federal tax consolidated group through December 14, 2006, at which time the Company was spun-off from Walter Energy. Until our spin-off from Walter Energy, we joined in the filing of Walter Energy’s consolidated federal income tax return for each taxable year during which we were a member of the consolidated group. As a result, we were jointly and severally liable for the federal income tax liability, if any, of the consolidated group for each of those years. In July 2015, Walter Energy filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Alabama (“Bankruptcy Case”). The Internal Revenue Service (“IRS”) alleged that Walter Energy owed substantial amounts (“Walter Tax Liability”), and on January 11, 2016, the IRS filed a proof of claim in the Bankruptcy Case, alleging that Walter Energy owed taxes, interest and penalties in an aggregate amount of $554.3 million. In the proof of claim, the IRS included an alternative calculation in an aggregate amount of $860.4 million. On November 5, 2019, we agreed to be bound by a settlement agreement between the bankruptcy trustee in the Bankruptcy Case and the IRS to resolve the Walter Tax Liability. On November 18, 2019, the settlement agreement was approved by the U.S. Bankruptcy Court in the Northern District of Alabama. Under the terms of the settlement agreement, we contributed approximately $22.2 million to the settlement. All appeal periods have expired, and our liabilities with respect to the Walter Tax Liability have been fully resolved. Chapman v. Mueller Water Products, et al. In 2017, our warranty analyses identified that certain Technologies radio products produced prior to 2017 and installed in particularly harsh environments had been failing at higher than expected rates. During the quarter ended March 31, 2017, we conducted additional testing of these products and revised our estimates of warranty expenses. As a result, we recorded additional warranty expense of $9.8 million in the second quarter of 2017. During the quarter ended June 30, 2018, we completed a similar analysis and determined, based on this new information, that certain other Technologies products had been failing at higher-than-expected rates as well and that the average cost to repair or replace certain products under warranty was higher than previously estimated. As a result, in the third quarter of 2018, we recorded additional warranty expense of $14.1 million associated with such products. Related to the above warranty expenses, on April 11, 2019, an alleged stockholder filed a putative class action lawsuit against Mueller Water Products, Inc. and certain of our former and current officers (collectively, the “Defendants”) in the U.S. District Court for the Southern District of New York. The proposed class consists of all persons and entities that acquired our securities between May 9, 2016 and August 6, 2018 (the “Class Period”). The complaint alleges violations of the federal securities laws, including, among other things, that we made materially false and/or misleading statements and failed to disclose material adverse facts about our business, operations, and prospects during the proposed Class Period. The plaintiff seeks compensatory damages and attorneys’ fees and costs but does not specify the amount. Accordingly, we cannot reasonably estimate the amount of any cost or liabilities related to this matter and therefore no amounts have been accrued related to this matter as of December 31, 2019. Defendants filed their motion to dismiss on November 1, 2019 and second motion to dismiss (in response to the second amended complaint filed on December 24, 2019) on January 31, 2020. We believe the allegations are without merit and intend to vigorously defend against the claims. However, the outcome of this legal proceeding cannot be predicted with certainty. City of Jackson, MS v. Siemens Industry, Inc., et al. On or about August 22, 2013, Mueller Systems, LLC (“Mueller Systems”) entered into an agreement with Siemens Industries, Inc (“Siemens”) to provide automated meter infrastructure (“AMI”) products and services to Siemens as part of Siemens’ project for the City of Jackson, MS (the “City”). This project included products and services for the City’s water treatment plants, sewer lines and billing system, which were provided by parties other than Mueller Systems (the “Project”). On June 11, 2018, the City filed a lawsuit against Siemens and several of its contractors (excluding Mueller Systems) for multiple claims related to the Project, including claims for fraud, negligence, breach of implied warranty of good workmanship, negligent representation, civil conspiracy, unjust enrichment, breach of contract and breach of covenant of good faith and fair dealing (“Siemens Lawsuit”). In the Siemens Lawsuit, the City alleged damages in excess of $450.0 million. On November 12, 2019, the City filed an amended complaint, adding Mueller Systems as a defendant in the Siemens Lawsuit. Mueller Systems is reviewing the claims to determine the portion, if any, of the City’s alleged damages that may be related to Mueller Systems’ AMI products and services. However, there remains a high degree of uncertainty around these claims, as well as their potential effect on Mueller Systems’ future operations, earnings, cash flows and financial condition. Accordingly, at this time, it is not practicable to estimate the magnitude and timing of any possible obligations or payments. Mass Shooting Event at our Henry Pratt Facility in Aurora, Illinois. On February 15, 2019, we experienced a mass shooting event at our Henry Pratt facility in Aurora, Illinois, in which five employees were killed and one employee and six law enforcement officers were injured. Various workers’ compensation claims arising from the event have been made to date, and we anticipate that additional claims may be made, and that liability under such claims, if any, is not expected to have a material adverse effect on our results of operations or cash flows. However, the possibility of other legal proceedings, and any related effects, arising from this event cannot be predicted with certainty. Indemnifications. We are a party to contracts in which it is common for us to agree to indemnify third parties for certain liabilities that arise out of or relate to the subject matter of the contract. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by gross negligence or willful misconduct. We cannot estimate the potential amount of future payments under these indemnities until events arise that would trigger a liability under the indemnities. Additionally, in connection with the sale of assets and the divestiture of businesses, such as the divestitures of U.S. Pipe and Anvil, we may agree to indemnify buyers and related parties for certain losses or liabilities incurred by these parties with respect to: (i) the representations and warranties made by us to these parties in connection with the sale and (ii) liabilities related to the pre-closing operations of the assets or business sold. Indemnities related to pre-closing operations generally include certain environmental and tax liabilities and other liabilities not assumed by these parties in the transaction. Indemnities related to the pre-closing operations of sold assets or businesses normally do not represent additional liabilities to us, but simply serve to protect these parties from potential liability associated with our obligations existing at the time of the sale. As with any liability, we have accrued for those pre-closing obligations that are considered probable and reasonably estimable. Should circumstances change, increasing the likelihood of payments related to a specific indemnity, we will accrue a liability when future payment is probable and the amount is reasonably estimable. Other Matters. We monitor and analyze our warranty experience and costs periodically and may revise our accruals as necessary. Critical factors in our analyses include warranty terms, specific claim situations, general incurred and projected failure rates, the nature of product failures, product and labor costs, and general business conditions. We are party to a number of lawsuits arising in the ordinary course of business, including product liability cases for products manufactured by us or third parties. While the results of litigation cannot be predicted with certainty, we believe that the final outcome of such other litigation is not likely to have a materially adverse effect on our business or prospects.
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Revenue from Contracts with Customers (Tables) |
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Schedule of Financing Receivables, Minimum Payments [Table Text Block] | The table below represents the balances of our customer receivables and deferred revenues.
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Revenue from Contracts with Customers (Details) - USD ($) $ in Millions |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 |
Dec. 31, 2018 |
Sep. 30, 2019 |
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Revenue from External Customer [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] | 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 contract or arrangement with a customer. Disaggregation of Revenue We disaggregate our revenues from contracts with customers by reportable segment (Note 11.) and further by geographical region as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographical region represents the location of the customer. Contract Asset and Liability Balances The timing of revenue recognition, billings and cash collections results 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 (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, the majority of which is classified as current based on the timing when we expect to recognize revenue. We include current deferred revenue as part of our accrued expenses. Deferred revenues represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements. Contract liabilities are reversed when the performance obligation is satisfied and revenue is recognized. The table below represents the balances of our customer receivables and deferred revenues.
Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Our performance obligations are satisfied at a point in time as related to sales of equipment or over time as related to our software hosting and leak detection monitoring services. Performance obligations are supported by customer contracts, which provide frameworks for the nature of the distinct products or services. We allocate the transaction price of each contract to the performance obligations on the basis of standalone selling price and recognize revenue when, or as, control of the performance obligation transfers to the customers. We have elected to use the practical expedient to not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less. Revenues from products and services transferred to customers at a point in time represented 98% of our revenues in the three months ended December 31, 2019 and 2018. The revenues recognized at a point in time related to the sale of our products was recognized when the obligations of the terms of our contract were satisfied, which generally occurs upon shipment, when control of the product transfers to the customer. Revenues from products and services transferred to customers over time represented 2% of our revenues in the three months ended December 31, 2019 and 2018. We offer warranties to our customers in the form of assurance-type warranties, which provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These cannot be purchased separately. There was no change to our warranty accounting as a result of the implementation of the new revenue standard and we will continue to use our current cost accrual method in accordance with GAAP. Costs to Obtain or Fulfill a Contract We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. Our commissions are paid based on orders and shipments and we reserve the right to claw back any commissions in case of product returns or lost collections. As the expected benefit associated with these incremental costs is one year or less based on the nature of the product sold and benefits received, we have applied a practical expedient and therefore do not capitalize the related costs and expense them as incurred, consistent with our previous accounting treatment.
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Billed Contracts Receivable | $ 129.2 | $ 171.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred Revenue | 4.4 | 4.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unbilled receivables | 5.2 | 4.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total customer receivables | $ 134.4 | $ 175.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred at Point in Time [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of Revenue by Recognition Timing | 98.00% | 98.00% | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Transferred over Time [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from External Customer [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of Revenue by Recognition Timing | 2.00% | 2.00% |
Segment Information (Tables) |
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Segment Reporting, Measurement Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Selected Supplemental Balance Sheet Information | Summarized financial information for our segments is presented below.
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Income Taxes Rate Reconciliation (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below.
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Revenue from Contracts with Customers (Notes) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contracts with Customers [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Text Block] | 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 contract or arrangement with a customer. Disaggregation of Revenue We disaggregate our revenues from contracts with customers by reportable segment (Note 11.) and further by geographical region as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographical region represents the location of the customer. Contract Asset and Liability Balances The timing of revenue recognition, billings and cash collections results 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 (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, the majority of which is classified as current based on the timing when we expect to recognize revenue. We include current deferred revenue as part of our accrued expenses. Deferred revenues represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements. Contract liabilities are reversed when the performance obligation is satisfied and revenue is recognized. The table below represents the balances of our customer receivables and deferred revenues.
Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Our performance obligations are satisfied at a point in time as related to sales of equipment or over time as related to our software hosting and leak detection monitoring services. Performance obligations are supported by customer contracts, which provide frameworks for the nature of the distinct products or services. We allocate the transaction price of each contract to the performance obligations on the basis of standalone selling price and recognize revenue when, or as, control of the performance obligation transfers to the customers. We have elected to use the practical expedient to not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less. Revenues from products and services transferred to customers at a point in time represented 98% of our revenues in the three months ended December 31, 2019 and 2018. The revenues recognized at a point in time related to the sale of our products was recognized when the obligations of the terms of our contract were satisfied, which generally occurs upon shipment, when control of the product transfers to the customer. Revenues from products and services transferred to customers over time represented 2% of our revenues in the three months ended December 31, 2019 and 2018. We offer warranties to our customers in the form of assurance-type warranties, which provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These cannot be purchased separately. There was no change to our warranty accounting as a result of the implementation of the new revenue standard and we will continue to use our current cost accrual method in accordance with GAAP. Costs to Obtain or Fulfill a Contract We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. Our commissions are paid based on orders and shipments and we reserve the right to claw back any commissions in case of product returns or lost collections. As the expected benefit associated with these incremental costs is one year or less based on the nature of the product sold and benefits received, we have applied a practical expedient and therefore do not capitalize the related costs and expense them as incurred, consistent with our previous accounting treatment.
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Subsequent Events (Details) - $ / shares |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Feb. 20, 2020 |
Feb. 10, 2020 |
Jan. 30, 2020 |
Jan. 29, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
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Subsequent Event [Line Items] | ||||||
Dividends declared per share, in dollars per share | $ 0.0525 | $ 0.0500 | ||||
Subsequent Event [Member] | ||||||
Subsequent Event [Line Items] | ||||||
Dividends Payable, Date Declared | Jan. 30, 2020 | |||||
Dividends declared per share, in dollars per share | $ 0.0525 | |||||
Dividends Payable, Date to be Paid | Feb. 20, 2020 | |||||
Dividends Payable, Date of Record | Feb. 10, 2020 |
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Dec. 31, 2019 |
Dec. 31, 2018 |
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Defined Benefit Plan, Service Cost | $ 0.4 | $ 0.4 |
Defined Benefit Plan, Interest Cost | 2.8 | 3.5 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (4.2) | (4.1) |
Amortization of actuarial net loss | 0.7 | 0.5 |
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | (0.7) | (0.1) |
Net periodic benefit cost | $ (0.3) | $ 0.3 |
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