10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒    QUARTERLY REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

☐    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-32892

MUELLER WATER PRODUCTS, INC.

(Exact name of registrant as specified in its charter)

Delaware	20-3547095
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1200 Abernathy Road N.E.

Suite 1200

Atlanta, GA 30328

(Address of principal executive offices)

(770) 206-4200

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common stock, par value $0.01	MWA	New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer     ☒      Accelerated filer     ☐

Non-accelerated filer    ☐    Smaller reporting company ☐     Emerging growth company    ☐ 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☒ No

There were 156,485,455 shares of common stock of the registrant outstanding at July 31, 2023.

TABLE OF CONTENTS

ITEM		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets - June 30, 2023 and September 30, 2022	3
	Unaudited Condensed Consolidated Statements of Operations - Three and Nine Months Ended June 30, 2023 and 2022	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income - Three and Nine Months Ended June 30, 2023 and 2022	5
	Unaudited Condensed Consolidated Statements of Stockholders' Equity - Three and Nine Months Ended June 30, 2023 and 2022	6
	Unaudited Condensed Consolidated Statements of Cash Flows - Nine Months Ended June 30, 2023 and 2022	8
	Notes to the Unaudited Condensed Consolidated Financial Statements	10
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	24
Item 4.	Controls and Procedures	34
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	35
Item 1A.	Risk Factors	35
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	35
Item 6.	Exhibits	35
	Signatures	35

2

PART I

Item 1.     FINANCIAL STATEMENTS

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

	June 30,		September 30,
	2023		2022
	(in millions, except share amounts)
Assets:
Cash and cash equivalents	$	141.2	$	146.5
Receivables, net of allowance for credit losses of $6.4 million and $5.6 million	210.3		228.0
Inventories, net	312.7		278.7
Other current assets	27.2		26.8
Total current assets	691.4		680.0
Property, plant and equipment, net	306.9		301.6
Intangible assets, net	341.9		361.2
Goodwill, net	97.0		98.6
Other noncurrent assets	56.1		56.7
Total assets	$	1,493.3	$	1,498.1
Liabilities and stockholders’ equity:
Current portion of long-term debt	$	0.8	$	0.8
Accounts payable	101.0		122.8
Other current liabilities	98.1		117.4
Total current liabilities	199.9		241.0
Long-term debt	446.7		446.1
Deferred income taxes	80.0		86.3
Other noncurrent liabilities	52.5		55.4
Total liabilities	779.1		828.8
Commitments and contingencies (Note 10.)
Preferred stock: par value $0.01 per share; 60,000,000 shares authorized; none outstanding at June 30, 2023, and September 30, 2022	—		—
Common stock: par value $0.01 per share; 600,000,000 shares authorized; 156,424,123 and 155,844,138 shares outstanding at June 30, 2023, and September 30, 2022, respectively	1.6		1.6
Additional paid-in capital	1,257.2		1,279.6
Accumulated deficit	(499.0)		(567.3)
Accumulated other comprehensive loss	(45.6)		(44.6)
Total stockholders' equity	714.2		669.3
Total liabilities and stockholders' equity	$	1,493.3	$	1,498.1

The accompanying notes are an integral part of the condensed consolidated financial statements.

3

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in millions, except per share amounts)
Net sales	$	326.6	$	333.2	$	974.3	$	916.0
Cost of sales	226.5		234.9		683.2		637.3
Gross profit	100.1		98.3		291.1		278.7
Operating expenses:
Selling, general and administrative	60.6		60.8		187.7		175.1
Strategic reorganization and other charges	3.9		0.6		0.9		3.6
Total operating expenses	64.5		61.4		188.6		178.7
Operating income	35.6		36.9		102.5		100.0
Other expenses (income):
Pension expense (benefit) other than service	0.9		(0.9)		2.8		(2.9)
Interest expense, net	3.8		4.2		11.4		13.0
Net other expenses	4.7		3.3		14.2		10.1
Income before income taxes	30.9		33.6		88.3		89.9
Income tax expense	6.4		7.1		20.0		20.4
Net income	$	24.5	$	26.5	$	68.3	$	69.5
Net income per share:
Basic	$	0.16	$	0.17	$	0.44	$	0.44
Diluted	$	0.16	$	0.17	$	0.44	$	0.44
Weighted average shares outstanding:
Basic	156.4		157.0		156.2		157.6
Diluted	157.2		157.6		156.8		158.3
Dividends declared per share	$	0.061	$	0.058	$	0.183	$	0.174

The accompanying notes are an integral part of the condensed consolidated financial statements.

4

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in millions)
Net income	$	24.5	$	26.5	$	68.3	$	69.5
Other comprehensive income (loss), net of income tax:
Pension actuarial amortization	0.8		0.3		2.0		1.0
Foreign currency translation	(4.9)		(17.6)		(3.0)		(15.5)
Total other comprehensive loss	(4.1)		(17.3)		(1.0)		(14.5)
Comprehensive income	$	20.4	$	9.2	$	67.3	$	55.0

The accompanying notes are an integral part of the condensed consolidated financial statements.

5

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 

(UNAUDITED)

	Common   stock		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive (loss) income		Total
	(in millions)
Balance at September 30, 2022	$	1.6	$	1,279.6	$	(567.3)	$	(44.6)	$	669.3
Net income	—		—		22.5		—		22.5
Dividends declared	—		(9.5)		—		—		(9.5)
Stock-based compensation	—		1.8		—		—		1.8
Shares retained for employee taxes	—		(1.5)		—		—		(1.5)
Common stock issued	—		0.6		—		—		0.6
Other comprehensive income, net of tax	—		—		—		4.6		4.6
Balance at December 31, 2022	$	1.6	$	1,271.0	$	(544.8)	$	(40.0)	$	687.8
Net income	—		—		21.3		—		21.3
Dividends declared	—		(9.5)		—		—		(9.5)
Stock-based compensation	—		2.4		—		—		2.4
Common stock issued	—		0.4		—		—		0.4
Other comprehensive loss, net of tax	—		—		—		(1.5)		(1.5)
Balance at March 31, 2023	$	1.6	$	1,264.3	$	(523.5)	$	(41.5)	$	700.9
Net income	—		—		24.5		—		24.5
Dividends declared	—		(9.6)		—		—		(9.6)
Stock-based compensation	—		1.7		—		—		1.7
Shares retained for employee taxes	—		(0.1)		—		—		(0.1)
Common stock issued	—		0.9		—		—		0.9
Other comprehensive loss, net of tax	—		—		—		(4.1)		(4.1)
Balance at June 30, 2023	$	1.6	$	1,257.2	$	(499.0)	$	(45.6)	$	714.2

The accompanying notes are an integral part of the condensed consolidated financial statements.

6

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY 

(UNAUDITED)

	Common   stock		Additional paid-in capital		Accumulated deficit		Accumulated other comprehensive (loss) income		Total
	(in millions)
Balance at September 30, 2021	$	1.6	$	1,342.2	$	(643.9)	$	(5.0)	$	694.9
Net income	—		—		19.4		—		19.4
Dividends declared	—		(9.2)		—		—		(9.2)
Stock-based compensation	—		2.0		—		—		2.0
Shares retained for employee taxes	—		(1.9)		—		—		(1.9)
Stock repurchased under buyback program	—		(20.0)		—		—		(20.0)
Common stock issued	—		0.7		—		—		0.7
Other comprehensive income, net of tax	—		—		—		6.0		6.0
Balance at December 31, 2021	$	1.6	$	1,313.8	$	(624.5)	$	1.0	$	691.9
Net income	—		—		23.6		—		23.6
Dividends declared	—		(9.1)		—		—		(9.1)
Stock-based compensation	—		2.4		—		—		2.4
Shares retained for employee taxes	—		0.1		—		—		0.1
Common stock issued	—		0.4		—		—		0.4
Other comprehensive loss, net of tax	—		—		—		(3.2)		(3.2)
Balance at March 31, 2022	$	1.6	$	1,307.6	$	(600.9)	$	(2.2)	$	706.1
Net income	—		—		26.5		—		26.5
Dividends declared	—		(9.1)		—		—		(9.1)
Stock-based compensation	—		2.2		—		—		2.2
Shares retained for employee taxes	—		(0.1)		—		—		(0.1)
Stock repurchased under buyback program	—		(5.0)		—		—		(5.0)
Common stock issued	—		0.5		—		—		0.5
Other comprehensive income, net of tax	—		—		—		(17.3)		(17.3)
Balance at June 30, 2022	$	1.6	$	1,296.1	$	(574.4)	$	(19.5)	$	703.8

The accompanying notes are an integral part of the condensed consolidated financial statements.

7

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

	Nine months ended
	June 30,
	2023		2022
	(in millions)
Operating activities:
Net income	$	68.3	$	69.5
Adjustments to reconcile net income to net cash provided by operating activities, net of acquisition:
Depreciation	25.1		23.8
Amortization	21.0		21.1
Gain on sale of assets	(3.7)		—
Stock-based compensation	5.9		6.6
Pension net periodic cost (benefit)	3.4		(1.9)
Deferred income taxes	(6.7)		1.8
Inventory reserves provision	0.4		3.9
Other, net	0.7		0.7
Changes in assets and liabilities, net of acquisition:
Receivables, net	18.2		(10.6)
Inventories	(34.1)		(71.3)
Other assets	(2.0)		(5.5)
Accounts payable	(21.8)		6.7
Other current liabilities	(19.4)		(23.1)
Other noncurrent liabilities	(2.8)		(1.2)
Net cash provided by operating activities	52.5		20.5
Investing activities:
Capital expenditures	(32.4)		(36.7)
Acquisition purchase price adjustment	—		0.2
Proceeds from sale of assets	5.1		—
Net cash used in investing activities	(27.3)		(36.5)
Financing activities:
Dividends paid	(28.6)		(27.4)
Employee taxes related to stock-based compensation	(1.6)		(1.9)
Common stock issued	1.9		1.6
Common stock repurchased under buyback program	—		(25.0)
Payments for finance lease obligations	(0.9)		(0.4)
Net cash used in financing activities	(29.2)		(53.1)
Effect of currency exchange rate changes on cash	(1.3)		(3.5)
Net change in cash and cash equivalents	(5.3)		(72.6)
Cash and cash equivalents at beginning of period	146.5		227.5
Cash and cash equivalents at end of period	$	141.2	$	154.9

The accompanying notes are an integral part of the condensed consolidated financial statements.

8

	Nine months ended
	June 30,
	2023		2022
	(in millions)
Supplemental cash flow information:
Cash paid for interest, net	$	16.5	$	19.3
Cash paid for income taxes, net	$	27.5	$	22.2

The accompanying notes are an integral part of the condensed consolidated financial statements.

9

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2023

(UNAUDITED)

Note 1. Organization and Basis of Presentation

Mueller Water Products, Inc., a Delaware corporation, together with its consolidated subsidiaries, operates in two business segments: Water Flow Solutions and Water Management Solutions. These segments are based on a management reorganization that became effective October 1, 2021. Water Flow Solutions’ portfolio includes iron gate valves, specialty valves and service brass products. Water Management Solutions’ portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, pressure control and software products and services. The “Company,” “we,” “us” or “our” refer to Mueller Water Products, Inc. and its subsidiaries. With regard to the Company’s segments, “we,” “us” or “our” may also refer to the segment being discussed.

On June 14, 2021, we acquired all the outstanding capital stock of i2O Water Ltd (“i2O”), a provider of pressure management solutions to more than 100 water companies in 45 countries. During the three months ended December 31, 2021, we recorded a purchase price adjustment of $0.2 million, resulting in a final purchase price of $19.5 million.

Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require us to make certain estimates and assumptions in recording assets, liabilities, sales and expenses as well as in the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany balances and transactions have been eliminated. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended September 30, 2022. In our opinion, all normal and recurring adjustments that we consider necessary for a fair financial statement presentation have been made. The condensed consolidated balance sheet at September 30, 2022 was derived from our audited financial statements, but it does not include all disclosures required by GAAP.

Our business is seasonal as a result of the impact of cold weather conditions. Net sales and operating income historically have been lowest in the three-month periods ending December 31 and March 31 when the northern United States and all of Canada generally face weather conditions that restrict significant construction activity.

Unless the context indicates otherwise, whenever we refer to a particular year, we mean our fiscal year ended or ending September 30 in that particular calendar year.

Recently Adopted Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” (“ASU 2022-06”). ASU 2022-06 defers the sunset date for applying the reference rate reform relief in Accounting Standards Codification (“ASC”) 848 to December 31, 2024 from December 31, 2022. ASU 2022-06 became effective immediately upon issuance. In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Inter Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. ASU 2020-04 is effective from March 12, 2020, but may be adopted prospectively from a date within an interim period subsequent to March 12, 2020. We evaluated our contracts and the optional expedients provided by ASU 2020-04. We adopted ASU 2020-04 on October 1, 2021 and there was no material impact to our financial statements.

In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. ASU 2019-12 was effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year, with early adoption permitted. We adopted this standard on October 1, 2021 and there was no material impact to our financial statements.

10

Restructuring

Between November 2019 and March 2021, we announced the purchase and closure of several facilities. We purchased a new facility in Kimball, Tennessee to support and enhance our investment in our Chattanooga, Tennessee large casting foundry and closed our facilities in Hammond, Indiana; Woodland, Washington; and Surrey, British Columbia, Canada. We also completed the closure of our facility in Aurora, Illinois during our fiscal year 2022. The majority of the activities from these plants were transferred to our Kimball, Tennessee facility. Additionally, during our fiscal year 2023, we incurred severance costs related to a reorganization of our sales force. In connection with these reorganizations, we recognized certain restructuring costs.

During the nine months ended June 30, 2023, we recorded amounts related to severance and transaction-related costs partially offset by a $4.0 million gain, before tax, on the sale of the Aurora, Illinois facility. Activity in accrued restructuring, reported as part of Other current liabilities, is presented below:

	Nine months ended
	June 30,
	2023		2022
	(in millions)
Beginning balance	$	3.3	$	3.1
Amounts accrued	0.9		0.4
Amounts paid	(2.0)		(3.0)
Ending balance	$	2.2	$	0.5

New Markets Tax Credit Program

On 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 (“NMTC”). The NMTC is a federal program intended to encourage capital investment in qualified lower income communities. Under the NMTC, investors claim federal income tax credits over a period of seven years in connection with qualified investments in the equity of community development entities (“CDE”s), which are privately managed investment institutions that are certified to make qualified low-income community investments, such as in our foundry project.

Under the NMTC, Wells Fargo contributed capital of $4.8 million to an investment fund and we loaned $12.2 million to the fund. Wells Fargo is entitled to the associated tax credits, which are subject to 100% recapture if we do not comply with various regulations and contractual provisions surrounding the foundry project. We have indemnified Wells Fargo for any loss or recapture of tax credits related to the transaction until the seven-year period elapses. We do not anticipate any credit recaptures will be required in connection with this arrangement.

The investment fund contributed $16.5 million cash for a 99.99% stake in a joint venture (“Sub-CDE”) with a CDE. The Sub-CDE then loaned $16.2 million to us, with the use of the loan proceeds restricted to foundry project expenditures. This transaction also includes a put/call provision under which we may be obligated or entitled to repurchase Wells Fargo’s interest in the investment fund. We believe that Wells Fargo will exercise its put option in December 2027 for nominal consideration, resulting in our becoming the sole owner of the investment fund, cancelling the related loans, and recognizing an estimated gain of $3.9 million.

We determined that the investment fund and the Sub-CDE are variable interest entities (“VIEs”) and that we are the primary beneficiary of the VIEs. The ongoing activities of the VIEs, namely collecting and remitting interest and fees and administering NMTC compliance, were contemplated in the initial design of the transaction and are not expected to significantly affect economic performance throughout the life of the VIEs. Additionally, we are obligated to deliver tax benefits and provide various other guarantees to Wells Fargo and to absorb the losses of the VIEs. Wells Fargo does not have a material interest in the underlying economics of the project. Consequently, we have included the financial statements of the VIEs in our consolidated financial statements.

Intercompany transactions between us and the VIEs have been eliminated in consolidation. Wells Fargo’s contribution to the investment fund is consolidated in our financial statements within Other noncurrent liabilities as a result of its redemption features.

11

Direct costs associated with Wells Fargo’s capital contribution were netted against the recorded proceeds, resulting in a net cash contribution of $3.9 million. Other direct costs associated with the transaction were capitalized and are being recognized as interest expense over the seven-year tax credit period. Incremental costs to maintain the structure during the compliance period are expensed as incurred.

Note 2.    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

Refer to Note 8. for disaggregation of our revenues from contracts with customers by reportable segment and by geographical region, which we believe 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

Differences 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 (i.e., 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 of when we expect to recognize revenue. We include current deferred revenue within Other current liabilities in the accompanying condensed consolidated balance sheets. Deferred revenue represents contract liabilities and is recorded when customers remit cash payments in advance of our satisfaction of performance obligations pursuant to 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 revenue:

	June 30,		September 30,
	2023		2022
	(in millions)
Billed receivables	$	211.2	$	230.5
Unbilled receivables	5.5		3.1
Gross customer receivables	216.7		233.6
Allowance for credit losses	(6.4)		(5.6)
Receivables, net	$	210.3	$	228.0
Deferred revenue	$	8.7	$	8.1

12

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 for sales of equipment or product and over time for 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. The transaction price is adjusted for our estimate of variable consideration which may include discounts and rebates. To estimate variable consideration, we apply the expected value or the most likely amount method, based on whichever method most appropriately predicts the amount of consideration we expect to receive. The method applied is typically based on historical experience and known trends. We constrain the amounts of variable consideration that are included in the transaction price, to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or when uncertainties around the variable consideration are resolved.

We exclude from the measurement of the transaction price all taxes assessed by a governmental authority.

We do 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.

Revenue for the sale of our products is recognized when the obligations of the terms of our contract are satisfied, which is when the customer is able to direct the use of and obtain substantially all of the benefits from the product, which generally occurs upon shipment when control of the product transfers to the customer.

We offer warranties to our customers which provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These warranties cannot be purchased separately from our products.

Costs to Obtain or Fulfill a Contract

Shipping and handling costs associated with freight activities after the customer has obtained control of a product are included in cost of sales at the time the related revenue is recognized.

We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. Our sales commissions are paid based on a combination of orders and shipments, and we reserve the right to claw back any commissions in case of product returns, cancellations or lost collections. As the expected benefit associated with these incremental costs is generally one year or less based on the nature of the product sold and benefits received, we do not capitalize the related costs and expense them as incurred.

13

Note 3. Income Taxes

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Adjustments to reconcile to the effective tax rate:
State income taxes, net of federal benefit	3.2		3.3		3.2		3.3
Excess tax benefits related to stock-based compensation	—		—		0.2		(0.3)
Tax credits	(3.5)		(3.0)		(2.8)		(3.0)
Global Intangible Low-Taxed Income	1.1		1.1		1.1		1.1
Foreign income tax rate differential	(2.2)		(1.7)		(2.2)		(1.7)
Nondeductible compensation	0.9		0.9		0.9		0.9
Basis difference in foreign investment	—		(0.1)		—		(0.1)
Valuation allowances	—		—		—		0.3
Other	0.2		(0.4)		1.3		1.2
Effective income tax rate	20.7	%	21.1	%	22.7	%	22.7	%

At June 30, 2023 and September 30, 2022, the gross liabilities for unrecognized income tax benefits were $5.3 million and $4.7 million, respectively, and are included in Other noncurrent liabilities.

Note 4. Borrowing Arrangements

The components of our long-term debt are as follows:

	June 30,		September 30,
	2023		2022
	(in millions)
4.0% Senior Notes	$	450.0	$	450.0
Finance leases	1.6		1.6
Total borrowings	451.6		451.6
Less: deferred financing costs	4.1		4.7
Less: current portion of long-term debt	0.8		0.8
Long-term debt	$	446.7	$	446.1

ABL Agreement. Our asset-based lending agreement, as amended, (“ABL”) is provided by a syndicate of banking institutions and consists of a revolving credit facility for up to $175.0 million in borrowing that expires on July 29, 2025. The ABL allows up to $25.0 million of swing line loans and up to $60.0 million of letters of credit. The ABL permits us to increase the size of the credit facility by an additional $150.0 million in certain circumstances subject to adequate borrowing base availability.

On April 5, 2023, we amended the ABL. This amendment replaced LIBOR-based loans with Secured Overnight Financing Rate (“SOFR”) based loans plus an adjustment of 10 basis points, among other immaterial modifications.

Borrowings under the ABL bear interest at a floating rate equal to SOFR plus an adjustment of 10 basis points plus an applicable margin range of 200 to 225 basis points, or a base rate, as defined in the ABL, plus an applicable margin range of from 100 to 125 basis points. At June 30, 2023 the applicable margin for SOFR-based loans was 200 basis points and for base rate loans was 100 basis points.

14

The ABL is subject to mandatory prepayments if total outstanding borrowings under the ABL are greater than the aggregate commitments under the revolving credit facility or if we dispose of overdue accounts receivable in certain circumstances. The borrowing base under the ABL is equal to the sum of (a) 85% of the value of eligible accounts receivable and (b) the lesser of (i) 70% of the value of eligible inventory or (ii) 85% of the net orderly liquidation value of eligible inventory, less certain reserves. Prepayments can be made at any time without penalty.

Substantially all of our United States subsidiaries are borrowers under the ABL and are jointly and severally liable for outstanding borrowings. Our obligations under the ABL are secured by a first-priority perfected lien on all of our United States inventory, accounts receivable, certain cash balances and other supporting assets.

The ABL includes a commitment fee for any unused borrowing capacity of 37.5 basis points per annum. 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. Excess availability based on June 30, 2023 data was $162.3 million, as reduced by $12.5 million of outstanding letters of credit and $0.2 million of accrued fees and expenses.

4.0% Senior Unsecured Notes. On May 28, 2021, we privately issued $450.0 million of 4.0% Senior Unsecured Notes (“4.0% Senior Notes”), which mature on June 15, 2029 and bear interest at 4.0%, paid semi-annually in June and December. We capitalized $5.5 million of financing costs which are being amortized over the term of the 4.0% Senior Notes using the effective interest method. Proceeds from the 4.0% Senior Notes, along with cash on hand, were used to redeem our previously existing 5.5% Unsecured Senior Notes. Substantially all of our United States subsidiaries guarantee the 4.0% Senior Notes, which are subordinate to borrowings under our ABL. Based on quoted market prices, which is a Level 1 measurement, the outstanding 4.0% Senior Notes had a fair value of $400.7 million at June 30, 2023.

An indenture governing the 4.0% Senior Notes (“Indenture”) contains customary covenants and events of default, including covenants that limit our ability to incur certain debt and liens. There are no financial maintenance covenants associated with the Indenture. We believe we were in compliance with these covenants at June 30, 2023.

As set forth in the Indenture, we may redeem some or all of the 4.0% Senior Notes at any time prior to June 15, 2024 at certain “make-whole” redemption prices and on or after June 15, 2024 at specified redemption prices. Additionally, we may redeem up to 40% of the aggregate principal amount of the 4.0% Senior Notes at any time prior to June 15, 2024 with the net proceeds of specified equity offerings at specified redemption prices. Upon a change of control, we would be required to offer to purchase the 4.0% Senior Notes at a price equal to 101% of the outstanding principal amount.

Note 5. Retirement Plans

The components of net periodic costs (benefits) for our pension plans are presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in millions)
Service cost	$	0.2	$	0.3	$	0.6	$	0.9
Pension costs (benefits) other than service:
Interest cost	3.4		2.5		10.4		7.3
Expected return on plan assets	(3.5)		(3.8)		(10.4)		(11.4)
Amortization of actuarial net loss	1.0		0.4		2.8		1.2
Pension costs (benefits) other than service	0.9		(0.9)		2.8		(2.9)
Net periodic costs (benefits)	$	1.1	$	(0.6)	$	3.4	$	(2.0)

The amortization of actuarial losses, net of income tax, is recorded as a component of other comprehensive loss. For each of the three months ended June 30, 2023 and 2022, the amortization of actuarial net loss is shown net of income tax of $0.2 million in the condensed consolidated statements of comprehensive income. For the nine months ended June 30, 2023 and 2022, the amortization of actuarial loss is shown net of income tax of $0.8 million and $0.3 million respectively, in the condensed consolidated statements of comprehensive income.

15

Note 6. Stock-based Compensation Plans

We grant various forms of stock-based compensation, including market-based restricted stock units (“MRSUs”), restricted stock units, stock options and performance-based restricted stock units (“PRSUs”) under our Amended and Restated 2006 Mueller Water Products, Inc. Stock Incentive Plan (the “2006 Stock Plan”), Phantom Plan instruments under our Mueller Water Products, Inc. 2012 Phantom Plan, and Employee stock purchase plan instruments under our 2006 Employee Stock Purchase Plan. Grants issued during the nine months ended June 30, 2023 are as follows:

	Number granted	Weighted average grant date fair value per instrument		Total grant date fair value (in millions)
Quarter ended December 31, 2022
MRSUs	166,284	$	15.08	$	2.5
PRSUs	166,284	11.41		1.9
Restricted stock units	228,692	11.39		2.6
Phantom Plan instruments	267,093	11.41		3.0
Non-qualified stock options	573,279	3.31		1.9
Employee stock purchase plan instruments	47,463	$	2.56	0.1
Total - Quarter ended December 31, 2022				$	12.0
Quarter ended March 31, 2023
Restricted stock units	82,769	$	13.89	$	1.1
Phantom Plan instruments	8,367	13.42		0.1
Employee stock purchase plan instruments	56,066	$	2.21	0.1
Total - Quarter ended March 31, 2023				$	1.3
Quarter ended June 30, 2023
Phantom Plan instruments	7,176	$	13.93	$	0.1
Employee stock purchase plan instruments	45,860	$	2.28	0.1
Total - Quarter ended June 30, 2023				0.2
Total - Year to date ended June 30, 2023				$	13.5

An MRSU award represents a target number of units that may be paid out at the end of a three-year award cycle based on a calculation of our relative total shareholder return (“TSR”) performance as compared with the TSR of a selected peer group. Settlements, in our common shares, will range from zero to two times the number of MRSUs granted, depending on our TSR performance relative to that of the peer group.

Compensation expense attributed to MRSUs is based on the fair value of the awards on their respective grant dates, as determined using a Monte Carlo model. For these awards, compensation expense is recognized even if the awards are not earned or vested. The assumptions used to determine the grant date fair value are indicated below for awards granted to date during the current fiscal year.

	November 29, 2022
Variables used in determining grant date fair value:
Dividend yield	2.20%
Risk-free rate	4.20%
Expected term (in years)	2.83

The expected dividend yield is based on our estimated annual dividend and our stock price history at the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield in effect at the grant date with a term equal to the expected term. The expected term represents the average period of time the units are expected to be outstanding.

16

At June 30, 2023, the outstanding Phantom Plan instruments had a fair value of $16.23 per instrument and our liability for Phantom Plan instruments was $3.5 million and is included within Other current and Other noncurrent liabilities.

Stock options generally vest ratably over three years on each anniversary date. Compensation expense attributed to stock options is based on the fair value of the awards on their respective grant dates, using a Black-Scholes model. The assumptions used to determine the grant date fair value are indicated below for awards granted to date during the current fiscal year.

	November 29, 2022
Variables used in determining grant date fair value:
Dividend yield	1.80%
Risk-free rate	3.89%
Expected term (in years)	6.00

The expected dividend yield is based on our estimated annual dividend and our stock price history at the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield in effect at the grant date with a term equal to the expected term. The expected term represents the average period of time the options are expected to be outstanding.

A PRSU award consists of a target number of units that may be paid out at the end of a three-year award cycle. Settlements, in our common shares, will range from zero to two times the number of PRSUs granted, depending on our financial performance relative to the targets.

We issued 282,472 shares of common stock to settle PRSUs vested during the nine months ended June 30, 2023; no shares of common stock were issued to settle PRSUs vested during the three months ended June 30, 2023. Additionally, we issued 2,098 and 218,121 shares of common stock to settle restricted stock units vested during the three and nine months ended June 30, 2023, respectively. Finally, we issued 2,896 and 64,847 shares of common stock to settle stock options exercised during the three and nine months ended June 30, 2023. Common shares totaling 1,589 and 138,525 were surrendered to us to pay the applicable tax withholding obligations of equity award participants for the three and nine months ended June 30, 2023, respectively.

Operating income included stock-based compensation expense of $2.7 million and $2.5 million during the three months ended June 30, 2023 and 2022, respectively. Operating income included stock-based compensation expense of $8.8 million and $7.6 million during the nine months ended June 30, 2023 and 2022, respectively. At June 30, 2023, there was approximately $11.9 million of unrecognized compensation expense related to stock-based compensation arrangements, which will be expensed through February 2026.

We excluded 249,933 and 892,662 stock-based compensation instruments from the calculations of diluted earnings per share in the three months ended June 30, 2023 and 2022, respectively, and 1,156,428 and 750,343 for the nine months ended June 30, 2023 and 2022, respectively, since their inclusion would have been antidilutive.

17

Note 7. Supplemental Balance Sheet Information

Selected supplemental asset information is presented below:

	June 30,		September 30,
	2023		2022
	(in millions)
Inventories:
Purchased components and raw materials	$	180.2	$	181.8
Work in process, net	64.9		56.8
Finished goods, net	67.6		40.1
Inventories, net	$	312.7	$	278.7
Other current assets:
Prepaid expenses	$	15.6	$	14.6
Non-trade receivables	1.7		1.6
Maintenance and repair supplies and tooling	3.9		2.8
Income taxes	0.8		0.8
Workers' compensation reimbursement receivable	1.5		2.6
Other current assets	3.7		4.4
Total other current assets	$	27.2	$	26.8
Property, plant and equipment:
Land	$	6.6	$	5.7
Buildings	104.0		87.6
Machinery and equipment	505.7		456.0
Construction in progress	59.4		104.7
Total property, plant and equipment	675.7		654.0
Accumulated depreciation	(368.8)		(352.4)
Property, plant and equipment, net	$	306.9	$	301.6
Other noncurrent assets:
Operating lease right-of-use assets	$	25.2	$	26.0
Maintenance and repair supplies and tooling	21.6		20.4
Workers' compensation reimbursement receivable	3.1		3.6
Pension asset	0.1		0.6
Note receivable	1.8		1.7
Deferred financing fees	0.8		1.0
Other noncurrent assets	3.5		3.4
Total other noncurrent assets	$	56.1	$	56.7

18

Selected supplemental liability information is presented below:

	June 30,		September 30,
	2023		2022
	(in millions)
Other current liabilities:
Compensation and benefits	$	33.6	$	40.2
Customer rebates	12.7		16.2
Income taxes payable	6.4		7.5
Warranty accrual	7.9		6.5
Deferred revenue	8.7		8.1
Returned goods accrual	5.7		4.2
Taxes other than income taxes	2.7		4.4
Operating lease liabilities	5.1		4.4
Workers' compensation accrual	3.1		4.6
CARES Act payroll tax liabilities	—		4.4
Restructuring liabilities	2.2		3.3
Environmental liabilities	0.7		0.7
Interest payable	0.8		5.3
Other current liabilities	8.5		7.6
Total other current liabilities	$	98.1	$	117.4
Other noncurrent liabilities:
Operating lease liabilities	$	21.2	$	22.4
Warranty accrual	3.1		4.2
Transition tax liability	3.1		4.1
Uncertain tax position liability	5.3		4.7
NMTC liability	3.9		3.9
Workers' compensation accrual	6.1		6.5
Environmental liabilities	3.6		3.6
Deferred development grant	2.5		2.5
Other noncurrent liabilities	3.7		3.5
Total other noncurrent liabilities	$	52.5	$	55.4

19

Goodwill

Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis each September 1st and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

The following table summarizes information concerning our goodwill, all of which is within our Water Management Solutions segment, during the nine months ended June 30, 2023, in millions:

Balance at September 30, 2022:
Goodwill	$	822.7
Accumulated impairment	(724.1)
Goodwill, net	98.6
Activity during the nine months ended June 30, 2023:
Change in foreign currency exchange rates	(1.6)
Balance at June 30, 2023	$	97.0

20

Note 8. Segment Information

We have two reportable segments, Water Flow Solutions and Water Management Solutions. Water Flow Solutions’ portfolio includes iron gate valves, specialty valves and service brass products. Water Management Solutions’ portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, pressure control and software products and services. Summarized financial information for our segments is presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in millions)
Net sales, excluding intercompany:
Water Flow Solutions	$	150.1	$	195.9	$	472.9	$	534.7
Water Management Solutions	176.5		137.3		501.4		381.3
	$	326.6	$	333.2	$	974.3	$	916.0
Operating income (loss):
Water Flow Solutions	$	12.6	$	38.1	$	52.0	$	104.8
Water Management Solutions	39.0		12.0		90.3		35.1
Corporate	(16.0)		(13.2)		(39.8)		(39.9)
	$	35.6	$	36.9	$	102.5	$	100.0
Depreciation and amortization:
Water Flow Solutions	$	8.2	$	7.6	$	23.7	$	22.5
Water Management Solutions	7.6		7.2		22.3		22.2
Corporate	—		0.1		0.1		0.2
	$	15.8	$	14.9	$	46.1	$	44.9
Strategic reorganization and other charges (benefits):
Water Flow Solutions	$	0.1	$	—	$	0.1	$	—
Water Management Solutions	1.0		—		1.2		0.2
Corporate	2.8		0.6		(0.4)		3.4
	$	3.9	$	0.6	$	0.9	$	3.6
Capital expenditures:
Water Flow Solutions	$	7.5	$	8.1	$	23.1	$	29.6
Water Management Solutions	4.4		2.6		9.3		7.1
Corporate	—		—		—		—
	$	11.9	$	10.7	$	32.4	$	36.7
Water Flow Solutions disaggregated net sales:
Central	$	43.0	$	53.8	$	131.0	$	145.0
Northeast	31.7		29.4		93.4		90.5
Southeast	24.8		44.3		86.8		122.3
West	37.8		47.4		123.4		131.3
United States	137.3		174.9		434.6		489.1
Canada	9.8		18.8		29.2		40.7
Other international locations	3.0		2.2		9.1		4.9
	$	150.1	$	195.9	$	472.9	$	534.7
Water Management Solutions disaggregated net sales:
Central	$	47.4	$	37.7	$	133.2	$	101.1
Northeast	44.3		25.4		116.1		78.1
Southeast	37.1		27.8		109.8		79.6
West	31.2		30.8		93.0		77.8
United States	160.0		121.7		452.1		336.6
Canada	10.0		9.7		29.9		26.0
Other international locations	6.5		5.9		19.4		18.7
	$	176.5	$	137.3	$	501.4	$	381.3

21

Note 9. Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) is as follows:

	Pension actuarial amortization, net of income tax		Foreign currency translation, net of income tax		Total
	(in millions)
Balance at September 30, 2022	$	(36.3)	$	(8.3)	$	(44.6)
Current period other comprehensive income (loss)	2.0		(3.0)		(1.0)
Balance at June 30, 2023	$	(34.3)	$	(11.3)	$	(45.6)

For the nine months ended June 30, 2023, pension actuarial amortization included in the condensed consolidated statements of comprehensive income as a component of pension expense other than service was $2.8 million, net of income tax of $0.8 million. Refer to Note 5. Retirement Plans for further information. For the nine months ended June 30, 2023, foreign currency translation included in the condensed consolidated statements of comprehensive income was $3.0 million, net of $0 income tax.

Note 10. 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. Legal and 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 materially adverse effect on our financial position, results of operations, cash flows or liquidity.

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.

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 the Environmental Protection Agency’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. Since the amounts of such costs cannot be reasonably estimated at this time, no amounts have been accrued for this matter at June 30, 2023.

22

The COVID-19 Pandemic. The pandemic has caused, and is likely to continue to cause, severe economic, market and other disruptions to the U.S. and global economies. We have taken action and continue to counter such disruption, and work to protect the safety of our employees. While the extent to which the pandemic continues to affect our results will depend on future developments, the pandemic could result in material effects to our future financial position, results of operations, cash flows and liquidity.

Mass Shooting Event at our Mueller Co. Facility in Albertville, Alabama. On June 15, 2021, we experienced a mass shooting event at our Mueller Co. facility in Albertville, Alabama. Various claims arising from the event have been filed 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 materially adverse effect on our results of operations or cash flows. However, the outcome of these claims, or legal proceedings, and related effects arising from this event cannot be predicted with certainty.

Indemnification. 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 unless 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 financial position, results of operations, cash flows or liquidity.

Note 11. Subsequent Events

On July 26, 2023, our Board of Directors declared a dividend of $0.061 per share on our common stock, payable on or about August 21, 2023 to stockholders of record at the close of business on August 10, 2023.

23

Item 2.MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto that appear elsewhere in this report. This report contains certain statements that may be deemed “forward-looking statements” within the meaning of the federal securities laws. All statements that address activities, events or developments that the Company intends, expects, plans, projects, believes or anticipates will or may occur in the future are forward-looking statements, including, without limitation, statements regarding outlooks, projections, forecasts, expectations, commitments, trend descriptions and the ability to capitalize on trends, value creation, Board and committee composition plans, long-term strategies and the execution or acceleration thereof, operational improvements, inventory positions, the benefits of capital investments, financial or operating performance including improving sales growth and driving increased margins, capital allocation and growth strategy plans, the Company’s product portfolio positioning and the demand for the Company’s products. Forward-looking statements are based on certain assumptions and assessments made by the Company in light of the Company’s experience and perception of historical trends, current conditions and expected future developments.

Actual results and the timing of events may differ materially from those contemplated by the forward-looking statements due to a number of factors, without limitation, including the future impact of the COVID-19 pandemic on the Company’s operations and results, including effects on the financial health of customers (including collections and inventory positions); logistical challenges and supply chain disruptions, geopolitical conditions, or other events; an inability to realize the anticipated benefits from our operational initiatives, including our large capital investments in Chattanooga and Kimball, Tennessee, and Decatur, Illinois, plant closures, and our reorganization and related strategic realignment activities; an inability to attract or retain a skilled and diverse workforce, increased competition related to the workforce and labor markets; an inability to protect the Company’s information systems against service interruption, misappropriation of data or breaches of security; failure to comply with personal data protection and privacy laws; cyclical and changing demand in core markets such as municipal spending, residential construction, and natural gas distribution; government monetary or fiscal policies; the impact of adverse weather conditions; the impact of manufacturing and product performance; the impact of wage, commodity and materials price inflation; foreign exchange rate fluctuations; the impact of warranty claims; an inability to successfully resolve significant legal proceedings or government investigations; compliance with environmental, trade and anti-corruption laws and regulations; climate change and legal or regulatory responses thereto; changing regulatory, trade and tariff conditions; the failure to integrate and/or realize any of the anticipated benefits of recent acquisitions or divestitures; an inability to achieve some or all of our Environmental, Social, and Governance goals; and other factors that are described in the section entitled “RISK FACTORS” in Item 1A of the Company’s most recent Annual Report on Form 10-K and later filings on Form 10-Q, as applicable.

Forward-looking statements do not guarantee future performance and are only as of the date they are made. The Company undertakes no duty to update its forward-looking statements except as required by law. Undue reliance should not be placed on any forward-looking statements. You are advised to review any further disclosures the Company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the U.S. Securities and Exchange Commission.

Overview

Business

Approximately 60% to 65% of our 2022 net sales were associated with repair and replacement directly related to municipal water infrastructure spending, approximately 25% to 30% of net sales were related to residential construction activity and less than 10% of net sales were related to natural gas utilities spending.

We have experienced a variety of external challenges in 2023 including inflation, raw material availability and supply chain disruptions, including from the war in Ukraine and labor challenges. Additionally, due to ongoing inventory destocking by our distribution partners, lead times returning to pre-pandemic levels for most of our products and end markets adjusting to higher interest rates, especially new residential construction, we are seeing lower order rates for many products compared with the prior year. In July 2023, Blue Chip Economic Indicators forecasted an 11.6% decrease in housing starts for the calendar year 2023 as compared to the calendar year 2022. In addition to experiencing lower production volumes at many of our facilities, we continue to incur additional costs at our facilities associated with unfavorable manufacturing performance and labor which have contributed to higher costs to manufacture our products and in our capital expenditures. We expect challenging demand conditions to persist during the balance of our fiscal year 2023. We will continue to closely monitor the challenging market conditions discussed above and the related uncertainties and risks on our business.

24

We have two reportable segments: Water Flow Solutions and Water Management Solutions. Water Flow Solutions’ portfolio includes iron gate valves, specialty valves and service brass products. Water Flow Solutions represented 57% of our fiscal 2022 net sales. Water Management Solutions’ portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, pressure control and software products and services. Water Management Solutions represented 43% of our fiscal 2022 net sales.

Results of Operations

Three Months Ended June 30, 2023 Compared to Three Months Ended June 30, 2022

	Three months ended June 30, 2023
	Water Flow Solutions		Water Management Solutions		Corporate		Total
	(in millions)
Net sales	$	150.1	$	176.5	$	—	$	326.6
Gross profit	$	33.6	$	66.5	$	—	$	100.1
Operating expenses:
Selling, general and administrative	20.9		26.5		13.2		60.6
Strategic reorganization and other charges	0.1		1.0		2.8		3.9
Total operating expenses	21.0		27.5		16.0		64.5
Operating income (loss)	$	12.6	$	39.0	$	(16.0)	35.6
Non-operating expenses:
Pension expense other than service							0.9
Interest expense, net							3.8
Income before income taxes							30.9
Income tax expense							6.4
Net income							$	24.5
	Three months ended June 30, 2022
	Water Flow Solutions		Water Management Solutions		Corporate		Total
	(in millions)
Net sales	$	195.9	$	137.3	$	—	$	333.2
Gross profit	$	60.8	$	37.5	$	—	$	98.3
Operating expenses:
Selling, general and administrative	22.7		25.5		12.6		60.8
Strategic reorganization and other charges	—		—		0.6		0.6
Total operating expenses	22.7		25.5		13.2		61.4
Operating income (loss)	$	38.1	$	12.0	$	(13.2)	36.9
Non-operating expenses:
Pension benefit other than service							(0.9)
Interest expense, net							4.2
Income before income taxes							33.6
Income tax expense							7.1
Net income							$	26.5

25

Consolidated Analysis

Net sales in the three months ended June 30, 2023 decreased $6.6 million or 2.0% to $326.6 million as compared with $333.2 million in the prior year period primarily as a result of a decrease in volume in our Water Flow Solutions segment, which was partially offset by higher pricing across most of our product lines in both our Water Flow Solutions and Water Management Solutions segments as well as an increase in volume in our Water Management Solutions segment.

Gross profit in the three months ended June 30, 2023 increased $1.8 million or 1.8% to $100.1 million from $98.3 million in the prior year period primarily as a result of higher pricing across most of our product lines. This increase was partially offset by overall lower net volume, unfavorable manufacturing performance predominately in Water Flow Solutions as well as inflation. The unfavorable manufacturing performance was due to outsourcing costs, product mix, supply chain disruption and machine downtime mainly in our foundry operations. Additionally, we incurred a $4.5 million warranty accrual charge in the prior year. Gross margin was 30.6% in the three months ended June 30, 2023 as compared with 29.5% in the prior year period.

Selling, general and administrative expenses (“SG&A”) in the three months ended June 30, 2023 decreased $0.2 million or 0.3% to $60.6 million from $60.8 million in the prior year period primarily due to a decrease in personnel expense and software licensing expense, partially offset by higher inflation and foreign exchange. SG&A as a percentage of net sales was 18.6% and 18.2% for the three months ended June 30, 2023 and June 30, 2022, respectively.

Strategic reorganization and other charges in the three months ended June 30, 2023 was $3.9 million which primarily consisted of severance and certain transaction-related expenses. Strategic reorganization and other charges for the three months ended June 30, 2022 was $0.6 million, which primarily consisted of costs associated with the closures of our facilities in Aurora, Illinois and Surrey, British Columbia, Canada.

Net interest expense in the three months ended June 30, 2023 declined $0.4 million or 9.5% to $3.8 million as compared with $4.2 million in the prior year period primarily due to higher interest income as a result of higher interest rates. The components of net interest expense are provided below:

	Three months ended
	June 30,
	2023		2022
	(in millions)
4.0% Senior Notes	$	4.5	$	4.5
Deferred financing costs amortization	0.1		0.2
ABL Agreement	0.3		0.3
Capitalized interest	(0.3)		(0.7)
Other interest expense	0.1		—
Total interest expense	4.7		4.3
Interest income	(0.9)		(0.1)
Interest expense, net	$	3.8	$	4.2

26

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below:

	Three months ended
	June 30,
	2023		2022
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	3.2		3.3
Tax credits	(3.5)		(3.0)
Global Intangible Low-Taxed Income	1.1		1.1
Foreign income tax rate differential	(2.2)		(1.7)
Nondeductible compensation	0.9		0.9
Basis difference in foreign investment	—		(0.1)
Other	0.2		(0.4)
Effective income tax rate	20.7	%	21.1	%

Segment Analysis

Water Flow Solutions

Net sales in the three months ended June 30, 2023 decreased $45.8 million or 23.4% to $150.1 million as compared with $195.9 million in the prior year period primarily as a result of lower volumes for iron gate valve and service brass products partially offset by higher pricing across most product lines and volume growth in specialty valve products.

Gross profit in the three months ended June 30, 2023 decreased $27.2 million or 44.7% to $33.6 million from $60.8 million in the prior year period. This decrease was primarily a result of lower volume, unfavorable sales mix and higher cost of sales associated with unfavorable manufacturing performance, including inefficiencies and start-up costs for the new brass foundry, and inflation, which were partially offset by higher pricing. Gross margin was 22.4% in the three months ended June 30, 2023 and 31.0% in the prior year period.

SG&A in the three months ended June 30, 2023 decreased $1.8 million to $20.9 million from $22.7 million in the prior year period primarily as a result of lower personnel expenses and software licensing expense partially offset by inflation. SG&A as a percentage of net sales was 13.9% and 11.6% in the three months ended June 30, 2023 and 2022, respectively.

Water Management Solutions

Net sales in the three months ended June 30, 2023 increased $39.2 million or 28.6% to $176.5 million as compared with $137.3 million in the prior year period primarily as a result of higher pricing across most product lines and increased volumes mainly in hydrant and water management applications products.

Gross profit in the three months ended June 30, 2023 was $66.5 million as compared with $37.5 million in the prior year period. Gross margin increased to 37.7% in the three months ended June 30, 2023 as compared with 27.3% in the prior year period primarily as a result of higher pricing and increased volumes, which were partially offset by higher cost of sales associated with unfavorable manufacturing performance, largely due to higher costs as a result of outsourcing, as well as inflation.

SG&A in the three months ended June 30, 2023 increased $1.0 million to $26.5 million from $25.5 million in the prior year period primarily due to inflation and unfavorable foreign currency fluctuation, which was partially offset by lower personnel expenses. SG&A as a percentage of net sales was 15.0% and 18.6% in the three months ended June 30, 2023 and 2022, respectively.

27

Corporate

SG&A increased $0.6 million to $13.2 million in the three months ended June 30, 2023 as compared with $12.6 million in the three months ended June 30, 2022 primarily as a result of inflation and unfavorable foreign currency fluctuation partially offset by lower personnel expenses.

28

Nine Months Ended June 30, 2023 Compared to Nine Months Ended June 30, 2022

	Nine months ended June 30, 2023
	Water Flow Solutions		Water Management Solutions		Corporate		Total
	(in millions)
Net sales	$	472.9	$	501.4	$	—	$	974.3
Gross profit	117.4		173.7		—		$	291.1
Operating expenses:
Selling, general and administrative	65.3		82.2		40.2		187.7
Strategic reorganization and other charges (benefits)	0.1		1.2		(0.4)		0.9
Total operating expenses	65.4		83.4		39.8		188.6
Operating income (loss)	$	52.0	$	90.3	$	(39.8)	102.5
Non-operating expenses:
Pension expense other than service							2.8
Interest expense, net							11.4
Income before income taxes							88.3
Income tax expense							20.0
Net income							$	68.3
	Nine months ended June 30, 2022
	Water Flow Solutions		Water Management Solutions		Corporate		Total
	(in millions)
Net sales	$	534.7	$	381.3	$	—	$	916.0
Gross profit	169.9		108.8		—		$	278.7
Operating expenses:
Selling, general and administrative	65.1		73.5		36.5		175.1
Strategic reorganization and other charges	—		0.2		3.4		3.6
Total operating expenses	65.1		73.7		39.9		178.7
Operating income (loss)	$	104.8	$	35.1	$	(39.9)	100.0
Non-operating expenses:
Pension benefit other than service							(2.9)
Interest expense, net							13.0
Income before income taxes							89.9
Income tax expense							20.4
Net income							$	69.5

Consolidated Analysis

Net sales in the nine months ended June 30, 2023 increased $58.3 million or 6.4% to $974.3 million as compared with $916.0 million in the prior period as a result of higher pricing across most product lines and an increase in Water Management Solutions’ volume, partially offset by a decrease in volumes in our Water Flow Solutions segment.

Gross profit in the nine months ended June 30, 2023 increased $12.4 million or 4.4% to $291.1 million from $278.7 million in the prior year period primarily as a result of higher pricing across most product lines, partially offset by net overall lower

29

volume, unfavorable manufacturing performance, including outsourcing costs, and inflation. Additionally, we incurred a $4.5 million warranty accrual charge in the prior year. Gross margin was 29.9% in the nine months ended June 30, 2023 as compared with 30.4% in the prior year period.

SG&A in the nine months ended June 30, 2023 increased $12.6 million or 7.2% to $187.7 million from $175.1 million in the prior year period primarily as a result of higher personnel expenses, inflation, professional fees and increased travel and entertainment expenses, partially offset by lower software licensing expense. SG&A as a percentage of net sales was 19.3% and 19.1% for the nine months ended June 30, 2023 and 2022, respectively.

Strategic reorganization and other charges in the nine months ended June 30, 2023 was $0.9 million which primarily related to severance and certain transaction-related expenses partially offset from a gain on the sale of our Aurora, Illinois facility. Strategic reorganization and other charges in the nine months ended June 30, 2022 was $3.6 million, which primarily related to the Albertville tragedy and termination benefits associated with our facility closures in Aurora, Illinois and Surrey, British Columbia, Canada.

Net interest expense in the nine months ended June 30, 2023 decreased $1.6 million or 12.3% to $11.4 million as compared with the prior year period of $13.0 million primarily as a result of increased interest income associated with higher interest rates. The components of net interest expense are provided below:

	Nine months ended
	June 30,
	2023		2022
	(in millions)
4.0% Senior Notes	$	13.5	$	13.5
Deferred financing costs amortization	0.7		0.7
ABL Agreement	0.7		0.7
Capitalized interest	(1.8)		(1.9)
Other interest expense	0.4		0.3
Total interest expense	13.5		13.3
Interest income	(2.1)		(0.3)
Interest expense, net	$	11.4	$	13.0

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below:

	Nine months ended
	June 30,
	2023		2022
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	3.2		3.3
Excess tax benefits related to stock-based compensation	0.2		(0.3)
Tax credits	(2.8)		(3.0)
Global Intangible Low-Taxed Income	1.1		1.1
Foreign income tax rate differential	(2.2)		(1.7)
Nondeductible compensation	0.9		0.9
Basis difference in foreign investment	—		(0.1)
Valuation allowances	—		0.3
Other	1.3		1.2
Effective income tax rate	22.7	%	22.7	%

30

Segment Analysis

Water Flow Solutions

Net sales in the nine months ended June 30, 2023 decreased $61.8 million or 11.6% to $472.9 million as compared with $534.7 million in the prior year period primarily as a result of lower sales volume of iron gate valve products partially offset by increased pricing across most product lines.

Gross profit in the nine months ended June 30, 2023 decreased $52.5 million or 30.9% to $117.4 million from $169.9 million in the prior year period. The decrease was primarily a result of lower volumes, higher cost of sales associated with unfavorable manufacturing performance, including inefficiencies and start-up costs for the new brass foundry and inflation which were partially offset by higher pricing. Gross margin was 24.8% in the nine months ended June 30, 2023 and 31.8% in the prior year period.

SG&A in the nine months ended June 30, 2023 increased $0.2 million or 0.3% to $65.3 million from $65.1 million in the prior year period primarily as a result of inflation partially offset by lower personnel expenses. SG&A as a percentage of net sales was 13.8% and 12.2% in the nine months ended June 30, 2023 and 2022, respectively.

Water Management Solutions

Net sales in the nine months ended June 30, 2023 increased $120.1 million or 31.5% to $501.4 million as compared with $381.3 million in the prior year period primarily as a result of higher pricing across most of the segment’s product lines and increased volumes, mainly in our hydrant products.

Gross profit in the nine months ended June 30, 2023 increased $64.9 million or 59.7% to $173.7 million as compared with $108.8 million in the prior year period. Gross margin increased to 34.6% in the nine months ended June 30, 2023 as compared with 28.5% in the prior year period primarily as a result of higher pricing and higher volumes partially offset by unfavorable manufacturing performance and inflation.

SG&A increased $8.7 million or 11.8% to $82.2 million from $73.5 million in the prior year period primarily as a result of professional fees, inflation, and increased personnel expenses. SG&A as a percentage of net sales was 16.4% and 19.3% in the nine months ended June 30, 2023 and 2022, respectively.

Corporate

SG&A increased $3.7 million or 10.1% to $40.2 million in the nine months ended June 30, 2023 as compared with $36.5 million in the nine months ended June 30, 2022 primarily as a result of inflation and higher personnel expenses.

Liquidity and Capital Resources

We had cash and cash equivalents on hand of $141.2 million at June 30, 2023 and $162.3 million of additional borrowing capacity under our ABL based on June 30, 2023 data. Undistributed earnings from our subsidiaries in Israel, Canada, and China are considered to be permanently invested outside the United States. At June 30, 2023, cash and cash equivalents included $59.7 million, $7.5 million, and $11.1 million in Israel, Canada, and China, respectively.

We declared a quarterly dividend of $0.061 per share on July 26, 2023, payable on or about August 21, 2023 to stockholders of record as of August 10, 2023, which will result in an estimated $9.5 million cash outlay.

We did not repurchase any of our outstanding common stock during the nine months ended June 30, 2023 and had $100.0 million remaining of our share repurchase authorization.

The ABL and 4.0% Senior Notes contain customary representations and warranties, covenants and provisions governing an event of default.  The covenants restrict our ability to engage in certain specified activities, including but not limited to the payment of dividends and the redemption of our common stock.

Net cash provided by operating activities was $52.5 million during the nine months ended June 30, 2023 as compared with net cash provided by operating activities of $20.5 million in the prior year period. The increase in net operating cash flow was primarily driven by improvements in working capital compared with the prior year period, including a lesser increase in Inventories and higher Receivables collections, partially offset by higher Accounts payable turnover.

Capital expenditures were $32.4 million in the nine months ended June 30, 2023 as compared with $36.7 million in the prior year period. Capital expenditures decreased primarily as a result of lower expenditures associated with the new Decatur foundry

31

as compared with the prior year period. For fiscal year 2023, we have provided guidance that our capital expenditures are expected to be between $50.0 million and $55.0 million.

We anticipate that our existing cash, cash equivalents and borrowing capacity combined with our expected operating cash flows will be sufficient to meet our anticipated operating expenses, income tax payments, capital expenditures and debt service obligations as they become due through the twelve months from the date of this filing. However, our ability to make these payments will depend largely on our future operating performance, which may be affected by general economic, financial, competitive, legislative, regulatory, business and other factors beyond our control.

ABL Agreement

Our ABL is provided by a syndicate of banking institutions and consists of a revolving credit facility for up to $175.0 million in borrowings that expires on July 28, 2025. The ABL permits us to borrow up to $25.0 million of swing line loans and up to $60.0 million of letters of credit. The ABL permits us to increase the size of the credit facility by an additional $150.0 million in certain circumstances subject to adequate borrowing base availability.

On April 5, 2023, we amended the ABL. This amendment replaced LIBOR-based loans with SOFR-based loans plus an adjustment of 10 basis points, among other immaterial modifications.

Borrowings under the ABL bear interest at a floating rate equal to SOFR plus an adjustment of 10 basis points plus an applicable margin ranging from 200 to 225 basis points, or a base rate, as defined in the ABL, plus an applicable margin range from 100 to 125 basis points. At June 30, 2023, the applicable margin was 200 basis points for SOFR-based loans, and 100 basis points for base rate loans.

The ABL is subject to mandatory prepayments if total outstanding borrowings under the ABL are greater than the aggregate commitments under the revolving credit facility or if we dispose of overdue accounts receivable in certain circumstances. The borrowing base under the ABL is equal to the sum of (a) 85% of the value of eligible accounts receivable and (b) the lesser of (i) 70% of the value of eligible inventories or (ii) 85% of the net orderly liquidation value of eligible inventory, less certain reserves. Prepayments can be made at any time with no penalty.

Substantially all of our U.S. subsidiaries are borrowers under the ABL and are jointly and severally liable for outstanding borrowings. Our obligations under the ABL are secured by a first-priority perfected lien on all of our U.S. inventories, accounts receivable, certain cash and other related assets.

The ABL includes a commitment fee for any unused borrowing capacity of 37.5 basis points per annum. 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. Excess availability based on June 30, 2023 data was $162.3 million, as reduced by $12.5 million of outstanding letters of credit and $0.2 million of accrued fees and expenses.

4.0% Senior Unsecured Notes

On May 28, 2021, we privately issued $450.0 million of 4.0% Senior Unsecured Notes (“4.0% Senior Notes”), which mature on June 15, 2029 and bear interest at 4.0%, paid semi-annually in June and December. We capitalized $5.5 million of financing costs, which are being amortized over the term of the 4.0% Senior Notes using the effective interest method. Proceeds from the 4.0% Senior Notes, along with cash on hand, were used to redeem previously existing 5.5% Unsecured Senior Notes. Substantially all of our U.S. subsidiaries guarantee the 4.0% Senior Notes, which are subordinate to borrowings under our ABL. Based on quoted market prices, which is a Level 1 measurement, the outstanding 4.0% Senior Notes had a fair value of $400.7 million at June 30, 2023.

An indenture governing the 4.0% Senior Notes (“Indenture”) contains customary covenants and events of default, including covenants that limit our ability to incur certain debt and liens. There are no financial maintenance covenants associated with the Indenture. We believe we were in compliance with these covenants at June 30, 2023.

As set forth in the Indenture, we may redeem some or all of the 4.0% Senior Notes at any time prior to June 15, 2024 at certain “make-whole” redemption prices and on or after June 15, 2024 at specified redemption prices. Additionally, we may redeem up to 40% of the aggregate principal amount of the 4.0% Senior Notes at any time prior to June 15, 2024 with the net proceeds of specified equity offerings at specified redemption prices. Upon a change in control, we would be required to offer to purchase the 4.0% Senior Notes at a price equal to 101% of the outstanding principal amount.

32

Our corporate credit rating and the credit rating for our debt are presented below:

	Moody’s		Standard & Poor’s
	June 30,	September 30,	June 30,	September 30,
	2023	2022	2023	2022
Corporate credit rating	Ba1	Ba1	BB	BB
ABL Agreement	Not rated	Not rated	Not rated	Not rated
4.0% Senior Notes	Ba1	Ba1	BB	BB
Outlook	Stable	Stable	Stable	Stable

These ratings are not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time by the assigning rating agencies.

Material Cash Requirements

We enter into a variety of contractual obligations as part of our normal operations in addition to capital expenditures. As of June 30, 2023, we have (i) debt obligations related to our $450.0 million 4.0% Senior Notes which mature in 2029 and include cash interest payments of $18.0 million in 2023 annually through 2029, (ii) cash obligations of $30.8 million for operating leases through 2033 and $1.6 million for finance leases through 2027, and (iii) purchase obligations for raw materials and other parts of approximately $89.6 million which we expect to incur during the next 12 months. We expect to fund these cash requirements from cash on hand and cash generated from operations.

Off-Balance Sheet Arrangements

We do not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as “structured finance” or “special purpose” entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. In addition, at June 30, 2023 we did not have any undisclosed borrowings, debt, derivative contracts or synthetic leases. Therefore, we were not exposed to any financing, liquidity, market or credit risk that could have arisen had we engaged in such relationships.

We use letters of credit and surety bonds in the ordinary course of business to ensure the performance of contractual obligations. At June 30, 2023, we had $12.5 million of letters of credit and $20.4 million of surety bonds outstanding.

Seasonality

Our business is seasonal as a result of the impact of cold weather conditions. Net sales and operating income historically have been lowest in the three-month periods ending December 31 and March 31 when the northern United States and all of Canada generally face weather conditions that restrict significant construction activity.

Critical Accounting Estimates

The preparation of financial statements in accordance with GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosure of contingent assets and liabilities. These estimates are based upon experience and on various other assumptions we believe to be reasonable under the circumstances. Actual results may differ from these estimates. We consider an accounting estimate to be critical if changes in the estimate that are reasonably likely to occur over time or the use of reasonably different estimates could have a material impact on our financial condition or results of operations. Our critical accounting estimates can be found in the “Critical Accounting Estimates” section in Management’s Discussion and Analysis of Financial Condition and Results of Operations included in the Company’s 2022 Annual Report on Form 10-K. There have been no changes in the Company’s determination of critical accounting policies and estimates since September 30, 2022.

33

Item 4.    CONTROLS AND PROCEDURES

There have been no changes in our internal control over financial reporting which have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting during the quarter ended June 30, 2023.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.

Our Chief Executive Officer and our Chief Financial Officer have concluded, based on an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended) by our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, that such disclosure controls and procedures were effective as of the end of the period covered by this report.

Our management, including our Chief Executive Officer and our Chief Financial Officer, does not expect that our disclosure controls can prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. There are inherent limitations in all control systems, including the realities that judgments in decision-making can be faulty and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of one or more persons. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and, while our disclosure controls and procedures are designed to be effective under circumstances where they should reasonably be expected to operate effectively, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of the inherent limitations in any control system, misstatements due to error or fraud may occur and not be detected.

34

PART II OTHER INFORMATION

Item 1.    LEGAL PROCEEDINGS

Refer to the information provided in Note 10. to the Notes to the Condensed Consolidated Financial Statements presented in Item 1. of Part I of this report.

Item 1A.     RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in PART I, “Item 1A. RISK FACTORS” in our Annual Report, each of which could materially affect our business, financial condition or operating results. These described risks are not the only risks facing us. Additional risks and uncertainties not known to us or that we deem to be immaterial also may materially adversely affect our business, financial condition or operating results.

Item 2.    UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the three months ended June 30, 2023, 1,589 shares were surrendered to us to pay the tax withholding obligations of participants in connection with the vesting of equity awards.

In 2015, we announced the authorization of a stock repurchase program for up to $50.0 million of our common stock. The program does not commit us to a particular timing or quantity of purchases, and we may suspend or discontinue the program at any time. In 2017, we announced an increase to the authorized amount of this program to $250.0 million.

We did not repurchase any shares of our common stock during the three months ended June 30, 2023 pursuant to this authorization, and we had $100.0 million remaining under our share repurchase authorization.

Item 6.     EXHIBITS

Exhibit No.	Document
10.1	Sixth Amendment to Credit Agreement, dated April 5, 2023
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*	The following financial information from the Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in XBRL (Extensible Business Reporting Language), (i) the Unaudited Condensed Consolidated Balance Sheets, (ii) the Unaudited Condensed Consolidated Statements of Operations, (iii) the Unaudited Condensed Consolidated Statements of Comprehensive Income, (iv) the Unaudited Condensed Consolidated Statements of Stockholders' Equity, (v) the Unaudited Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to Unaudited Condensed Consolidated Financial Statements.
104*	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

*     Filed with this quarterly report

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		MUELLER WATER PRODUCTS, INC.
Date:	August 4, 2023	By:	/s/ Suzanne G. Smith
			Suzanne G. Smith
			Chief Accounting Officer

35

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Scott Hall, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Mueller Water Products, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 4, 2023

/s/  Scott Hall

Scott Hall

Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Marietta Edmunds Zakas, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Mueller Water Products, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a)All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: August 4, 2023

/s/ Marietta Edmunds Zakas

Marietta Edmunds Zakas

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the accompanying Quarterly Report on Form 10-Q of Mueller Water Products, Inc. (the “Company”) for the quarter ended June 30, 2023 (the “Report”), I, Scott Hall, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 4, 2023

/s/ Scott Hall

Scott Hall

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the accompanying Quarterly Report on Form 10-Q of Mueller Water Products, Inc. (the “Company”) for the quarter ended June 30, 2023 (the “Report”), I, Marietta Edmunds Zakas, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1)The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: August 4, 2023                    

/s/ Marietta Edmunds Zakas

Marietta Edmunds Zakas

Chief Financial Officer

XML

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Document And Entity Information [Abstract]
Document Fiscal Period Focus	Q3
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2023
Entity Registrant Name	MUELLER WATER PRODUCTS, INC.
Entity Central Index Key	0001350593
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Amendment Flag	false
Entity Common Stock, Shares Outstanding		156,485,455
Entity Small Business	false
Title of 12(b) Security	Common stock, par value $0.01
Trading Symbol	MWA
Security Exchange Name	NYSE

XML

Cover Page Document - shares	9 Months Ended
	Jun. 30, 2023	Jul. 31, 2023
Cover Page [Abstract]
Entity Incorporation, State or Country Code	DE
Document Type	10-Q
Document Type	true
Document Period End Date	Jun. 30, 2023
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		156,485,455
Trading Symbol	MWA
Security Exchange Name	NYSE

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2023	Sep. 30, 2022
Assets:
Cash and cash equivalents	$ 141.2	$ 146.5
Receivables, net	210.3	228.0
Inventories	312.7	278.7
Other current assets	27.2	26.8
Total current assets	691.4	680.0
Property, plant and equipment, net	306.9	301.6
Goodwill	97.0	98.6
Identifiable intangible assets	341.9	361.2
Other noncurrent assets	56.1	56.7
Total assets	1,493.3	1,498.1
Liabilities and stockholders' equity:
Current portion of long-term debt	0.8	0.8
Accounts payable	101.0	122.8
Accrued liabilities	98.1	117.4
Total current liabilities	199.9	241.0
Long-term debt	446.7	446.1
Deferred income taxes	80.0	86.3
Other noncurrent liabilities	52.5	55.4
Total liabilities	779.1	828.8
Commitments and contingencies (Note 10.)
Preferred Stock, Value, Issued	0.0	0.0
Common stock	1.6	1.6
Additional paid-in capital	1,257.2	1,279.6
Accumulated deficit	(499.0)	(567.3)
Accumulated other comprehensive income (loss)	(45.6)	(44.6)
Total equity	714.2	669.3
Total liabilities and stockholders' equity	$ 1,493.3	$ 1,498.1

XML

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current	$ 6.4	$ 5.6
Preferred Stock, Shares Authorized	60,000,000	60,000,000
Preferred Stock, Shares Outstanding	0	0
Preferred Stock, Par or Stated Value Per Share	$ 0.01		$ 0.01
Common Stock, Par or Stated Value Per Share	$ 0.01	$ 0.01
Series A common stock, shares authorized	600,000,000	600,000,000
Common Stock, Shares, Outstanding	156,424,123	155,844,138

XML

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net sales	$ 326.6	$ 333.2	$ 974.3	$ 916.0
Cost of sales	226.5	234.9	683.2	637.3
Gross profit	100.1	98.3	291.1	278.7
Operating expenses:
Selling, general and administrative	60.6	60.8	187.7	175.1
Restructuring and other charges	3.9	0.6	0.9	3.6
Total operating expenses	64.5	61.4	188.6	178.7
Operating income	35.6	36.9	102.5	100.0
Non-operating expense:
Pension costs (benefits) other then service	0.9	(0.9)	2.8	(2.9)
Interest expense, net	3.8	4.2	11.4	13.0
Net other expense	4.7	3.3	14.2	10.1
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest	30.9	33.6	88.3	89.9
Income tax expense (benefit)	6.4	7.1	20.0	20.4
Net income (loss)	$ 24.5	$ 26.5	$ 68.3	$ 69.5
Net income (loss) per basic share:
Earnings Per Share, Basic	$ 0.16	$ 0.17	$ 0.44	$ 0.44
Net income (loss) per diluted share:
Earnings Per Share, Diluted	$ 0.16	$ 0.17	$ 0.44	$ 0.44
Weighted average shares outstanding:
Basic, in shares	156,400	157,000	156,200	157,600
Diluted, in shares	157,200	157,600	156,800	158,300
Dividends declared per share, in dollars per share	$ 0.061	$ 0.058	$ 0.183	$ 0.174

XML

Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Net income (loss)	$ 24.5	$ 26.5	$ 68.3	$ 69.5
Other comprehensive income (loss):
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	0.8	0.3	2.0	1.0
Foreign currency translation	(4.9)	(17.6)	(3.0)	(15.5)
Other comprehensive income (loss), net of tax	(4.1)	(17.3)	(1.0)	(14.5)
Comprehensive income (loss), net of tax	$ 20.4	$ 9.2	$ 67.3	$ 55.0

XML

Consolidated Statement Of Stockholders' Equity - USD ($) $ in Millions	Total	Common stock	Accumulated deficit	Accumulated other comprehensive income (loss)	Additional Paid-in Capital [Member]
Balance at Sep. 30, 2021	$ 694.9	$ 1.6	$ (643.9)	$ (5.0)	$ 1,342.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(9.2)				(9.2)
Stock-based compensation	2.0				2.0
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation	(1.9)				(1.9)
Treasury Stock, Value, Acquired, Cost Method	(20.0)				(20.0)
Stock issued under stock compensation plans	0.7				0.7
Net income (loss)			19.4
Balance at Dec. 31, 2021	691.9		(624.5)	1.0	1,313.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	19.4
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ 6.0			6.0
Common stock, dividends, per share, declared	$ 0.174
Balance at Sep. 30, 2021	$ 694.9	1.6	(643.9)	(5.0)	1,342.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	69.5
Balance at Jun. 30, 2022	703.8	1.6	(574.4)	(19.5)	1,296.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(14.5)
Balance at Dec. 31, 2021	691.9		(624.5)	1.0	1,313.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(9.1)				(9.1)
Stock-based compensation	2.4				2.4
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation	0.1				0.1
Stock issued under stock compensation plans	0.4				0.4
Net income (loss)			23.6
Balance at Mar. 31, 2022	706.1	1.6	(600.9)	(2.2)	1,307.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	23.6
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ (3.2)			(3.2)
Common stock, dividends, per share, declared	$ 0.058
Dividends declared	$ (9.1)				(9.1)
Stock-based compensation	2.2				2.2
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation	(0.1)				(0.1)
Treasury Stock, Value, Acquired, Cost Method	(5.0)				(5.0)
Stock issued under stock compensation plans	0.5				0.5
Net income (loss)	26.5		26.5
Balance at Jun. 30, 2022	703.8	1.6	(574.4)	(19.5)	1,296.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	26.5
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(17.3)			(17.3)
Common stock, value, issued	1.6
Balance at Sep. 30, 2022	669.3	1.6	(567.3)	(44.6)	1,279.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(9.5)				(9.5)
Stock-based compensation	1.8				1.8
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation	(1.5)				(1.5)
Stock issued under stock compensation plans	0.6				0.6
Net income (loss)	22.5
Balance at Dec. 31, 2022	687.8	1.6	(544.8)	(40.0)	1,271.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	22.5
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	4.6			4.6
Other comprehensive income (loss), net of tax	$ (1.0)
Common stock, dividends, per share, declared	$ 0.183
Balance at Sep. 30, 2022	$ 669.3	1.6	(567.3)	(44.6)	1,279.6
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	68.3
Balance at Jun. 30, 2023	714.2	1.6	(499.0)	(45.6)	1,257.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(1.0)
Balance at Dec. 31, 2022	687.8	1.6	(544.8)	(40.0)	1,271.0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(9.5)				(9.5)
Stock-based compensation	2.4				2.4
Stock issued under stock compensation plans	0.4				0.4
Net income (loss)	21.3
Balance at Mar. 31, 2023	700.9	1.6	(523.5)	(41.5)	1,264.3
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	21.3
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	$ (1.5)			(1.5)
Common stock, dividends, per share, declared	$ 0.061
Dividends declared	$ (9.6)				(9.6)
Stock-based compensation	1.7				1.7
Share-Based Payment Arrangement, Decrease for Tax Withholding Obligation	(0.1)				(0.1)
Stock issued under stock compensation plans	0.9				0.9
Net income (loss)	24.5
Balance at Jun. 30, 2023	714.2	$ 1.6	$ (499.0)	(45.6)	$ 1,257.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	24.5
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	(4.1)			$ (4.1)
Common stock, value, issued	$ 1.6

XML

Consolidated Statements Of Cash Flows $ in Millions	9 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)
Net cash provided by (used in) operating activities
Net income (loss)	$ 68.3	$ 69.5
Adjustments to reconcile net income (loss) to income (loss) from continuing operations:
Depreciation	25.1	23.8
Amortization	21.0	21.1
Gain (Loss) on Extinguishment of Debt	(3.7)	0.0
Stock-based compensation expense	5.9	6.6
Retirement plans	3.4	(1.9)
Deferred income taxes	(6.7)	1.8
Inventory write-down	0.4	3.9
Other noncash income (expense)	(0.7)	(0.7)
Changes in assets and liabilities, net of acquisitions:
Receivables	18.2	(10.6)
Inventories	(34.1)	(71.3)
Other current assets and other noncurrent assets	(2.0)	(5.5)
Accounts payable	(21.8)	6.7
Other current liabilities	(19.4)	(23.1)
Long-term liabilities	(2.8)	(1.2)
Net cash provided by (used in) operating activities, total	52.5	20.5
Investing activities:
Capital expenditures	(32.4)	(36.7)
Payments for (Proceeds from) Other Investing Activities	0.0	0.2
Proceeds from sales of assets	5.1	0.0
Net cash provided by (used in) investing activities, total	(27.3)	(36.5)
Financing activities:
Dividends paid	(28.6)	(27.4)
Shares retained for employee taxes	(1.6)	(1.9)
Common stock issued	1.9	1.6
Stock repurchased under buyback program	0.0	(25.0)
Other	(0.9)	(0.4)
Net cash provided by (used in) financing activities, total	(29.2)	(53.1)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	(1.3)	(3.5)
Cash and cash equivalents at end of period		154.9
Cash and cash equivalents	141.2
Interest Paid, Excluding Capitalized Interest, Operating Activities	16.5	19.3
Income Taxes Paid	27.5	22.2
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect	$ (5.3)	$ (72.6)

XML

Organization

9 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization and Basis of Presentation

Mueller Water Products, Inc., a Delaware corporation, together with its consolidated subsidiaries, operates in two business segments: Water Flow Solutions and Water Management Solutions. These segments are based on a management reorganization that became effective October 1, 2021. Water Flow Solutions’ portfolio includes iron gate valves, specialty valves and service brass products. Water Management Solutions’ portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, pressure control and software products and services. The “Company,” “we,” “us” or “our” refer to Mueller Water Products, Inc. and its subsidiaries. With regard to the Company’s segments, “we,” “us” or “our” may also refer to the segment being discussed.

On June 14, 2021, we acquired all the outstanding capital stock of i2O Water Ltd (“i2O”), a provider of pressure management solutions to more than 100 water companies in 45 countries. During the three months ended December 31, 2021, we recorded a purchase price adjustment of $0.2 million, resulting in a final purchase price of $19.5 million.

Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require us to make certain estimates and assumptions in recording assets, liabilities, sales and expenses as well as in the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany balances and transactions have been eliminated. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended September 30, 2022. In our opinion, all normal and recurring adjustments that we consider necessary for a fair financial statement presentation have been made. The condensed consolidated balance sheet at September 30, 2022 was derived from our audited financial statements, but it does not include all disclosures required by GAAP.

Our business is seasonal as a result of the impact of cold weather conditions. Net sales and operating income historically have been lowest in the three-month periods ending December 31 and March 31 when the northern United States and all of Canada generally face weather conditions that restrict significant construction activity.

Unless the context indicates otherwise, whenever we refer to a particular year, we mean our fiscal year ended or ending September 30 in that particular calendar year.

Recently Adopted Accounting Pronouncements

In December 2022, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848” (“ASU 2022-06”). ASU 2022-06 defers the sunset date for applying the reference rate reform relief in Accounting Standards Codification (“ASC”) 848 to December 31, 2024 from December 31, 2022. ASU 2022-06 became effective immediately upon issuance. In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Inter Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. ASU 2020-04 is effective from March 12, 2020, but may be adopted prospectively from a date within an interim period subsequent to March 12, 2020. We evaluated our contracts and the optional expedients provided by ASU 2020-04. We adopted ASU 2020-04 on October 1, 2021 and there was no material impact to our financial statements.

In December 2019, the FASB issued ASU No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. ASU 2019-12 was effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year, with early adoption permitted. We adopted this standard on October 1, 2021 and there was no material impact to our financial statements.

Restructuring

Between November 2019 and March 2021, we announced the purchase and closure of several facilities. We purchased a new facility in Kimball, Tennessee to support and enhance our investment in our Chattanooga, Tennessee large casting foundry and closed our facilities in Hammond, Indiana; Woodland, Washington; and Surrey, British Columbia, Canada. We also completed the closure of our facility in Aurora, Illinois during our fiscal year 2022. The majority of the activities from these plants were transferred to our Kimball, Tennessee facility. Additionally, during our fiscal year 2023, we incurred severance costs related to a reorganization of our sales force. In connection with these reorganizations, we recognized certain restructuring costs.

During the nine months ended June 30, 2023, we recorded amounts related to severance and transaction-related costs partially offset by a $4.0 million gain, before tax, on the sale of the Aurora, Illinois facility. Activity in accrued restructuring, reported as part of Other current liabilities, is presented below:

	Nine months ended
	June 30,
	2023		2022
	(in millions)
Beginning balance	$	3.3	$	3.1
Amounts accrued	0.9		0.4
Amounts paid	(2.0)		(3.0)
Ending balance	$	2.2	$	0.5

XML

Revenue from Contracts with Customers (Notes)

9 Months Ended

Jun. 30, 2023

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

Refer to Note 8. for disaggregation of our revenues from contracts with customers by reportable segment and by geographical region, which we believe 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

Differences 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 (i.e., 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 of when we expect to recognize revenue. We include current deferred revenue within Other current liabilities in the accompanying condensed consolidated balance sheets. Deferred revenue represents contract liabilities and is recorded when customers remit cash payments in advance of our satisfaction of performance obligations pursuant to 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 revenue:

	June 30,		September 30,
	2023		2022
	(in millions)
Billed receivables	$	211.2	$	230.5
Unbilled receivables	5.5		3.1
Gross customer receivables	216.7		233.6
Allowance for credit losses	(6.4)		(5.6)
Receivables, net	$	210.3	$	228.0
Deferred revenue	$	8.7	$	8.1

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 for sales of equipment or product and over time for 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. The transaction price is adjusted for our estimate of variable consideration which may include discounts and rebates. To estimate variable consideration, we apply the expected value or the most likely amount method, based on whichever method most appropriately predicts the amount of consideration we expect to receive. The method applied is typically based on historical experience and known trends. We constrain the amounts of variable consideration that are included in the transaction price, to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or when uncertainties around the variable consideration are resolved.

We exclude from the measurement of the transaction price all taxes assessed by a governmental authority.

We do 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.

Revenue for the sale of our products is recognized when the obligations of the terms of our contract are satisfied, which is when the customer is able to direct the use of and obtain substantially all of the benefits from the product, which generally occurs upon shipment when control of the product transfers to the customer.

We offer warranties to our customers which provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These warranties cannot be purchased separately from our products.

Costs to Obtain or Fulfill a Contract

Shipping and handling costs associated with freight activities after the customer has obtained control of a product are included in cost of sales at the time the related revenue is recognized.

We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. Our sales commissions are paid based on a combination of orders and shipments, and we reserve the right to claw back any commissions in case of product returns, cancellations or lost collections. As the expected benefit associated with these incremental costs is generally one year or less based on the nature of the product sold and benefits received, we do not capitalize the related costs and expense them as incurred.

XML

Income Taxes

9 Months Ended

Jun. 30, 2023

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Adjustments to reconcile to the effective tax rate:
State income taxes, net of federal benefit	3.2		3.3		3.2		3.3
Excess tax benefits related to stock-based compensation	—		—		0.2		(0.3)
Tax credits	(3.5)		(3.0)		(2.8)		(3.0)
Global Intangible Low-Taxed Income	1.1		1.1		1.1		1.1
Foreign income tax rate differential	(2.2)		(1.7)		(2.2)		(1.7)
Nondeductible compensation	0.9		0.9		0.9		0.9
Basis difference in foreign investment	—		(0.1)		—		(0.1)
Valuation allowances	—		—		—		0.3
Other	0.2		(0.4)		1.3		1.2
Effective income tax rate	20.7	%	21.1	%	22.7	%	22.7	%

At June 30, 2023 and September 30, 2022, the gross liabilities for unrecognized income tax benefits were $5.3 million and $4.7 million, respectively, and are included in Other noncurrent liabilities.

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

The reconciliation between the U.S. federal statutory income tax rate and the effective income tax rate is presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Adjustments to reconcile to the effective tax rate:
State income taxes, net of federal benefit	3.2		3.3		3.2		3.3
Excess tax benefits related to stock-based compensation	—		—		0.2		(0.3)
Tax credits	(3.5)		(3.0)		(2.8)		(3.0)
Global Intangible Low-Taxed Income	1.1		1.1		1.1		1.1
Foreign income tax rate differential	(2.2)		(1.7)		(2.2)		(1.7)
Nondeductible compensation	0.9		0.9		0.9		0.9
Basis difference in foreign investment	—		(0.1)		—		(0.1)
Valuation allowances	—		—		—		0.3
Other	0.2		(0.4)		1.3		1.2
Effective income tax rate	20.7	%	21.1	%	22.7	%	22.7	%

XML

Borrowing Arrangements

9 Months Ended

Jun. 30, 2023

Long-Term Debt and Lease Obligation [Abstract]

Borrowing Arrangements

Borrowing Arrangements

The components of our long-term debt are as follows:

	June 30,		September 30,
	2023		2022
	(in millions)
4.0% Senior Notes	$	450.0	$	450.0
Finance leases	1.6		1.6
Total borrowings	451.6		451.6
Less: deferred financing costs	4.1		4.7
Less: current portion of long-term debt	0.8		0.8
Long-term debt	$	446.7	$	446.1

ABL Agreement. Our asset-based lending agreement, as amended, (“ABL”) is provided by a syndicate of banking institutions and consists of a revolving credit facility for up to $175.0 million in borrowing that expires on July 29, 2025. The ABL allows up to $25.0 million of swing line loans and up to $60.0 million of letters of credit. The ABL permits us to increase the size of the credit facility by an additional $150.0 million in certain circumstances subject to adequate borrowing base availability.

On April 5, 2023, we amended the ABL. This amendment replaced LIBOR-based loans with Secured Overnight Financing Rate (“SOFR”) based loans plus an adjustment of 10 basis points, among other immaterial modifications.

Borrowings under the ABL bear interest at a floating rate equal to SOFR plus an adjustment of 10 basis points plus an applicable margin range of 200 to 225 basis points, or a base rate, as defined in the ABL, plus an applicable margin range of from 100 to 125 basis points. At June 30, 2023 the applicable margin for SOFR-based loans was 200 basis points and for base rate loans was 100 basis points.

The ABL is subject to mandatory prepayments if total outstanding borrowings under the ABL are greater than the aggregate commitments under the revolving credit facility or if we dispose of overdue accounts receivable in certain circumstances. The borrowing base under the ABL is equal to the sum of (a) 85% of the value of eligible accounts receivable and (b) the lesser of (i) 70% of the value of eligible inventory or (ii) 85% of the net orderly liquidation value of eligible inventory, less certain reserves. Prepayments can be made at any time without penalty.

Substantially all of our United States subsidiaries are borrowers under the ABL and are jointly and severally liable for outstanding borrowings. Our obligations under the ABL are secured by a first-priority perfected lien on all of our United States inventory, accounts receivable, certain cash balances and other supporting assets.

The ABL includes a commitment fee for any unused borrowing capacity of 37.5 basis points per annum. 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. Excess availability based on June 30, 2023 data was $162.3 million, as reduced by $12.5 million of outstanding letters of credit and $0.2 million of accrued fees and expenses.

4.0% Senior Unsecured Notes. On May 28, 2021, we privately issued $450.0 million of 4.0% Senior Unsecured Notes (“4.0% Senior Notes”), which mature on June 15, 2029 and bear interest at 4.0%, paid semi-annually in June and December. We capitalized $5.5 million of financing costs which are being amortized over the term of the 4.0% Senior Notes using the effective interest method. Proceeds from the 4.0% Senior Notes, along with cash on hand, were used to redeem our previously existing 5.5% Unsecured Senior Notes. Substantially all of our United States subsidiaries guarantee the 4.0% Senior Notes, which are subordinate to borrowings under our ABL. Based on quoted market prices, which is a Level 1 measurement, the outstanding 4.0% Senior Notes had a fair value of $400.7 million at June 30, 2023.

An indenture governing the 4.0% Senior Notes (“Indenture”) contains customary covenants and events of default, including covenants that limit our ability to incur certain debt and liens. There are no financial maintenance covenants associated with the Indenture. We believe we were in compliance with these covenants at June 30, 2023.

As set forth in the Indenture, we may redeem some or all of the 4.0% Senior Notes at any time prior to June 15, 2024 at certain “make-whole” redemption prices and on or after June 15, 2024 at specified redemption prices. Additionally, we may redeem up to 40% of the aggregate principal amount of the 4.0% Senior Notes at any time prior to June 15, 2024 with the net proceeds of specified equity offerings at specified redemption prices. Upon a change of control, we would be required to offer to purchase the 4.0% Senior Notes at a price equal to 101% of the outstanding principal amount.

XML

Retirement Plans

9 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Retirement Plans

Retirement Plans

The components of net periodic costs (benefits) for our pension plans are presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in millions)
Service cost	$	0.2	$	0.3	$	0.6	$	0.9
Pension costs (benefits) other than service:
Interest cost	3.4		2.5		10.4		7.3
Expected return on plan assets	(3.5)		(3.8)		(10.4)		(11.4)
Amortization of actuarial net loss	1.0		0.4		2.8		1.2
Pension costs (benefits) other than service	0.9		(0.9)		2.8		(2.9)
Net periodic costs (benefits)	$	1.1	$	(0.6)	$	3.4	$	(2.0)

The amortization of actuarial losses, net of income tax, is recorded as a component of other comprehensive loss. For each of the three months ended June 30, 2023 and 2022, the amortization of actuarial net loss is shown net of income tax of $0.2 million in the condensed consolidated statements of comprehensive income. For the nine months ended June 30, 2023 and 2022, the amortization of actuarial loss is shown net of income tax of $0.8 million and $0.3 million respectively, in the condensed consolidated statements of comprehensive income.

XML

Stock-based Compensation Plans

9 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Share-based Payment Arrangement [Text Block]

Stock-based Compensation Plans

We grant various forms of stock-based compensation, including market-based restricted stock units (“MRSUs”), restricted stock units, stock options and performance-based restricted stock units (“PRSUs”) under our Amended and Restated 2006 Mueller Water Products, Inc. Stock Incentive Plan (the “2006 Stock Plan”), Phantom Plan instruments under our Mueller Water Products, Inc. 2012 Phantom Plan, and Employee stock purchase plan instruments under our 2006 Employee Stock Purchase Plan. Grants issued during the nine months ended June 30, 2023 are as follows:

	Number granted	Weighted average grant date fair value per instrument		Total grant date fair value (in millions)
Quarter ended December 31, 2022
MRSUs	166,284	$	15.08	$	2.5
PRSUs	166,284	11.41		1.9
Restricted stock units	228,692	11.39		2.6
Phantom Plan instruments	267,093	11.41		3.0
Non-qualified stock options	573,279	3.31		1.9
Employee stock purchase plan instruments	47,463	$	2.56	0.1
Total - Quarter ended December 31, 2022				$	12.0
Quarter ended March 31, 2023
Restricted stock units	82,769	$	13.89	$	1.1
Phantom Plan instruments	8,367	13.42		0.1
Employee stock purchase plan instruments	56,066	$	2.21	0.1
Total - Quarter ended March 31, 2023				$	1.3
Quarter ended June 30, 2023
Phantom Plan instruments	7,176	$	13.93	$	0.1
Employee stock purchase plan instruments	45,860	$	2.28	0.1
Total - Quarter ended June 30, 2023				0.2
Total - Year to date ended June 30, 2023				$	13.5

An MRSU award represents a target number of units that may be paid out at the end of a three-year award cycle based on a calculation of our relative total shareholder return (“TSR”) performance as compared with the TSR of a selected peer group. Settlements, in our common shares, will range from zero to two times the number of MRSUs granted, depending on our TSR performance relative to that of the peer group.

Compensation expense attributed to MRSUs is based on the fair value of the awards on their respective grant dates, as determined using a Monte Carlo model. For these awards, compensation expense is recognized even if the awards are not earned or vested. The assumptions used to determine the grant date fair value are indicated below for awards granted to date during the current fiscal year.

	November 29, 2022
Variables used in determining grant date fair value:
Dividend yield	2.20%
Risk-free rate	4.20%
Expected term (in years)	2.83

The expected dividend yield is based on our estimated annual dividend and our stock price history at the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield in effect at the grant date with a term equal to the expected term. The expected term represents the average period of time the units are expected to be outstanding.

At June 30, 2023, the outstanding Phantom Plan instruments had a fair value of $16.23 per instrument and our liability for Phantom Plan instruments was $3.5 million and is included within Other current and Other noncurrent liabilities.

Stock options generally vest ratably over three years on each anniversary date. Compensation expense attributed to stock options is based on the fair value of the awards on their respective grant dates, using a Black-Scholes model. The assumptions used to determine the grant date fair value are indicated below for awards granted to date during the current fiscal year.

	November 29, 2022
Variables used in determining grant date fair value:
Dividend yield	1.80%
Risk-free rate	3.89%
Expected term (in years)	6.00

The expected dividend yield is based on our estimated annual dividend and our stock price history at the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield in effect at the grant date with a term equal to the expected term. The expected term represents the average period of time the options are expected to be outstanding.

A PRSU award consists of a target number of units that may be paid out at the end of a three-year award cycle. Settlements, in our common shares, will range from zero to two times the number of PRSUs granted, depending on our financial performance relative to the targets.

We issued 282,472 shares of common stock to settle PRSUs vested during the nine months ended June 30, 2023; no shares of common stock were issued to settle PRSUs vested during the three months ended June 30, 2023. Additionally, we issued 2,098 and 218,121 shares of common stock to settle restricted stock units vested during the three and nine months ended June 30, 2023, respectively. Finally, we issued 2,896 and 64,847 shares of common stock to settle stock options exercised during the three and nine months ended June 30, 2023. Common shares totaling 1,589 and 138,525 were surrendered to us to pay the applicable tax withholding obligations of equity award participants for the three and nine months ended June 30, 2023, respectively.

Operating income included stock-based compensation expense of $2.7 million and $2.5 million during the three months ended June 30, 2023 and 2022, respectively. Operating income included stock-based compensation expense of $8.8 million and $7.6 million during the nine months ended June 30, 2023 and 2022, respectively. At June 30, 2023, there was approximately $11.9 million of unrecognized compensation expense related to stock-based compensation arrangements, which will be expensed through February 2026.

We excluded 249,933 and 892,662 stock-based compensation instruments from the calculations of diluted earnings per share in the three months ended June 30, 2023 and 2022, respectively, and 1,156,428 and 750,343 for the nine months ended June 30, 2023 and 2022, respectively, since their inclusion would have been antidilutive.

XML

Supplemental Balance Sheet Information

3 Months Ended

Jun. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Supplemental Balance Sheet Information

Selected supplemental asset information is presented below:

	June 30,		September 30,
	2023		2022
	(in millions)
Inventories:
Purchased components and raw materials	$	180.2	$	181.8
Work in process, net	64.9		56.8
Finished goods, net	67.6		40.1
Inventories, net	$	312.7	$	278.7
Other current assets:
Prepaid expenses	$	15.6	$	14.6
Non-trade receivables	1.7		1.6
Maintenance and repair supplies and tooling	3.9		2.8
Income taxes	0.8		0.8
Workers' compensation reimbursement receivable	1.5		2.6
Other current assets	3.7		4.4
Total other current assets	$	27.2	$	26.8
Property, plant and equipment:
Land	$	6.6	$	5.7
Buildings	104.0		87.6
Machinery and equipment	505.7		456.0
Construction in progress	59.4		104.7
Total property, plant and equipment	675.7		654.0
Accumulated depreciation	(368.8)		(352.4)
Property, plant and equipment, net	$	306.9	$	301.6
Other noncurrent assets:
Operating lease right-of-use assets	$	25.2	$	26.0
Maintenance and repair supplies and tooling	21.6		20.4
Workers' compensation reimbursement receivable	3.1		3.6
Pension asset	0.1		0.6
Note receivable	1.8		1.7
Deferred financing fees	0.8		1.0
Other noncurrent assets	3.5		3.4
Total other noncurrent assets	$	56.1	$	56.7

Selected supplemental liability information is presented below:

	June 30,		September 30,
	2023		2022
	(in millions)
Other current liabilities:
Compensation and benefits	$	33.6	$	40.2
Customer rebates	12.7		16.2
Income taxes payable	6.4		7.5
Warranty accrual	7.9		6.5
Deferred revenue	8.7		8.1
Returned goods accrual	5.7		4.2
Taxes other than income taxes	2.7		4.4
Operating lease liabilities	5.1		4.4
Workers' compensation accrual	3.1		4.6
CARES Act payroll tax liabilities	—		4.4
Restructuring liabilities	2.2		3.3
Environmental liabilities	0.7		0.7
Interest payable	0.8		5.3
Other current liabilities	8.5		7.6
Total other current liabilities	$	98.1	$	117.4
Other noncurrent liabilities:
Operating lease liabilities	$	21.2	$	22.4
Warranty accrual	3.1		4.2
Transition tax liability	3.1		4.1
Uncertain tax position liability	5.3		4.7
NMTC liability	3.9		3.9
Workers' compensation accrual	6.1		6.5
Environmental liabilities	3.6		3.6
Deferred development grant	2.5		2.5
Other noncurrent liabilities	3.7		3.5
Total other noncurrent liabilities	$	52.5	$	55.4

Goodwill

Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis each September 1st and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value.

The following table summarizes information concerning our goodwill, all of which is within our Water Management Solutions segment, during the nine months ended June 30, 2023, in millions:

Balance at September 30, 2022:
Goodwill	$	822.7
Accumulated impairment	(724.1)
Goodwill, net	98.6
Activity during the nine months ended June 30, 2023:
Change in foreign currency exchange rates	(1.6)
Balance at June 30, 2023	$	97.0

XML

Accumulated Other Comprehensive Loss

9 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Comprehensive Income (Loss) Note [Text Block]

Accumulated Other Comprehensive Income (Loss)

Accumulated other comprehensive income (loss) is as follows:

	Pension actuarial amortization, net of income tax		Foreign currency translation, net of income tax		Total
	(in millions)
Balance at September 30, 2022	$	(36.3)	$	(8.3)	$	(44.6)
Current period other comprehensive income (loss)	2.0		(3.0)		(1.0)
Balance at June 30, 2023	$	(34.3)	$	(11.3)	$	(45.6)

For the nine months ended June 30, 2023, pension actuarial amortization included in the condensed consolidated statements of comprehensive income as a component of pension expense other than service was $2.8 million, net of income tax of $0.8 million. Refer to Note 5. Retirement Plans for further information. For the nine months ended June 30, 2023, foreign currency translation included in the condensed consolidated statements of comprehensive income was $3.0 million, net of $0 income tax.

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

Accumulated other comprehensive income (loss) is as follows:

	Pension actuarial amortization, net of income tax		Foreign currency translation, net of income tax		Total
	(in millions)
Balance at September 30, 2022	$	(36.3)	$	(8.3)	$	(44.6)
Current period other comprehensive income (loss)	2.0		(3.0)		(1.0)
Balance at June 30, 2023	$	(34.3)	$	(11.3)	$	(45.6)

For the nine months ended June 30, 2023, pension actuarial amortization included in the condensed consolidated statements of comprehensive income as a component of pension expense other than service was $2.8 million, net of income tax of $0.8 million. Refer to Note 5. Retirement Plans for further information. For the nine months ended June 30, 2023, foreign currency translation included in the condensed consolidated statements of comprehensive income was $3.0 million, net of $0 income tax.

XML

Segment Information

9 Months Ended

Jun. 30, 2023

Segment Reporting, Measurement Disclosures [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Information

We have two reportable segments, Water Flow Solutions and Water Management Solutions. Water Flow Solutions’ portfolio includes iron gate valves, specialty valves and service brass products. Water Management Solutions’ portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, pressure control and software products and services. Summarized financial information for our segments is presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in millions)
Net sales, excluding intercompany:
Water Flow Solutions	$	150.1	$	195.9	$	472.9	$	534.7
Water Management Solutions	176.5		137.3		501.4		381.3
	$	326.6	$	333.2	$	974.3	$	916.0
Operating income (loss):
Water Flow Solutions	$	12.6	$	38.1	$	52.0	$	104.8
Water Management Solutions	39.0		12.0		90.3		35.1
Corporate	(16.0)		(13.2)		(39.8)		(39.9)
	$	35.6	$	36.9	$	102.5	$	100.0
Depreciation and amortization:
Water Flow Solutions	$	8.2	$	7.6	$	23.7	$	22.5
Water Management Solutions	7.6		7.2		22.3		22.2
Corporate	—		0.1		0.1		0.2
	$	15.8	$	14.9	$	46.1	$	44.9
Strategic reorganization and other charges (benefits):
Water Flow Solutions	$	0.1	$	—	$	0.1	$	—
Water Management Solutions	1.0		—		1.2		0.2
Corporate	2.8		0.6		(0.4)		3.4
	$	3.9	$	0.6	$	0.9	$	3.6
Capital expenditures:
Water Flow Solutions	$	7.5	$	8.1	$	23.1	$	29.6
Water Management Solutions	4.4		2.6		9.3		7.1
Corporate	—		—		—		—
	$	11.9	$	10.7	$	32.4	$	36.7
Water Flow Solutions disaggregated net sales:
Central	$	43.0	$	53.8	$	131.0	$	145.0
Northeast	31.7		29.4		93.4		90.5
Southeast	24.8		44.3		86.8		122.3
West	37.8		47.4		123.4		131.3
United States	137.3		174.9		434.6		489.1
Canada	9.8		18.8		29.2		40.7
Other international locations	3.0		2.2		9.1		4.9
	$	150.1	$	195.9	$	472.9	$	534.7
Water Management Solutions disaggregated net sales:
Central	$	47.4	$	37.7	$	133.2	$	101.1
Northeast	44.3		25.4		116.1		78.1
Southeast	37.1		27.8		109.8		79.6
West	31.2		30.8		93.0		77.8
United States	160.0		121.7		452.1		336.6
Canada	10.0		9.7		29.9		26.0
Other international locations	6.5		5.9		19.4		18.7
	$	176.5	$	137.3	$	501.4	$	381.3

XML

Commitments and Contingencies

9 Months Ended

Jun. 30, 2023

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. Legal and 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 materially adverse effect on our financial position, results of operations, cash flows or liquidity.

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.

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 the Environmental Protection Agency’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. Since the amounts of such costs cannot be reasonably estimated at this time, no amounts have been accrued for this matter at June 30, 2023.

The COVID-19 Pandemic. The pandemic has caused, and is likely to continue to cause, severe economic, market and other disruptions to the U.S. and global economies. We have taken action and continue to counter such disruption, and work to protect the safety of our employees. While the extent to which the pandemic continues to affect our results will depend on future developments, the pandemic could result in material effects to our future financial position, results of operations, cash flows and liquidity.

Mass Shooting Event at our Mueller Co. Facility in Albertville, Alabama. On June 15, 2021, we experienced a mass shooting event at our Mueller Co. facility in Albertville, Alabama. Various claims arising from the event have been filed 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 materially adverse effect on our results of operations or cash flows. However, the outcome of these claims, or legal proceedings, and related effects arising from this event cannot be predicted with certainty.

Indemnification. 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 unless 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 financial position, results of operations, cash flows or liquidity.

XML

Subsequent Events	9 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On July 26, 2023, our Board of Directors declared a dividend of $0.061 per share on our common stock, payable on or about August 21, 2023 to stockholders of record at the close of business on August 10, 2023

XML

Organization Restructuring Rollforward (Tables)	9 Months Ended
	Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring and Related Costs [Table Text Block]

XML

Revenue from Contracts with Customers (Tables)

9 Months Ended

Jun. 30, 2023

Accounts, Notes, Loans and Financing Receivable [Line Items]

Schedule of Accounts, Notes, Loans and Financing Receivable

The table below represents the balances of our customer receivables and deferred revenue:

	June 30,		September 30,
	2023		2022
	(in millions)
Billed receivables	$	211.2	$	230.5
Unbilled receivables	5.5		3.1
Gross customer receivables	216.7		233.6
Allowance for credit losses	(6.4)		(5.6)
Receivables, net	$	210.3	$	228.0
Deferred revenue	$	8.7	$	8.1

XML

Income Taxes Rate Reconciliation (Tables)

9 Months Ended

Jun. 30, 2023

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 income tax rate is presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
U.S. federal statutory income tax rate	21.0	%	21.0	%	21.0	%	21.0	%
Adjustments to reconcile to the effective tax rate:
State income taxes, net of federal benefit	3.2		3.3		3.2		3.3
Excess tax benefits related to stock-based compensation	—		—		0.2		(0.3)
Tax credits	(3.5)		(3.0)		(2.8)		(3.0)
Global Intangible Low-Taxed Income	1.1		1.1		1.1		1.1
Foreign income tax rate differential	(2.2)		(1.7)		(2.2)		(1.7)
Nondeductible compensation	0.9		0.9		0.9		0.9
Basis difference in foreign investment	—		(0.1)		—		(0.1)
Valuation allowances	—		—		—		0.3
Other	0.2		(0.4)		1.3		1.2
Effective income tax rate	20.7	%	21.1	%	22.7	%	22.7	%

XML

Borrowing Arrangements (Tables)

9 Months Ended

Jun. 30, 2023

Long-Term Debt and Lease Obligation [Abstract]

Components of Long-Term Debt

The components of our long-term debt are as follows:

	June 30,		September 30,
	2023		2022
	(in millions)
4.0% Senior Notes	$	450.0	$	450.0
Finance leases	1.6		1.6
Total borrowings	451.6		451.6
Less: deferred financing costs	4.1		4.7
Less: current portion of long-term debt	0.8		0.8
Long-term debt	$	446.7	$	446.1

XML

Retirement Plans (Tables)

9 Months Ended

Jun. 30, 2023

Retirement Benefits [Abstract]

Schedule of Net Periodic Benefit Cost

The components of net periodic costs (benefits) for our pension plans are presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in millions)
Service cost	$	0.2	$	0.3	$	0.6	$	0.9
Pension costs (benefits) other than service:
Interest cost	3.4		2.5		10.4		7.3
Expected return on plan assets	(3.5)		(3.8)		(10.4)		(11.4)
Amortization of actuarial net loss	1.0		0.4		2.8		1.2
Pension costs (benefits) other than service	0.9		(0.9)		2.8		(2.9)
Net periodic costs (benefits)	$	1.1	$	(0.6)	$	3.4	$	(2.0)

XML

Stock-based Compensation Plans (Tables)

9 Months Ended

Jun. 30, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Share-based Payment Arrangement, Activity [Table Text Block]

Grants issued during the nine months ended June 30, 2023 are as follows:

	Number granted	Weighted average grant date fair value per instrument		Total grant date fair value (in millions)
Quarter ended December 31, 2022
MRSUs	166,284	$	15.08	$	2.5
PRSUs	166,284	11.41		1.9
Restricted stock units	228,692	11.39		2.6
Phantom Plan instruments	267,093	11.41		3.0
Non-qualified stock options	573,279	3.31		1.9
Employee stock purchase plan instruments	47,463	$	2.56	0.1
Total - Quarter ended December 31, 2022				$	12.0
Quarter ended March 31, 2023
Restricted stock units	82,769	$	13.89	$	1.1
Phantom Plan instruments	8,367	13.42		0.1
Employee stock purchase plan instruments	56,066	$	2.21	0.1
Total - Quarter ended March 31, 2023				$	1.3
Quarter ended June 30, 2023
Phantom Plan instruments	7,176	$	13.93	$	0.1
Employee stock purchase plan instruments	45,860	$	2.28	0.1
Total - Quarter ended June 30, 2023				0.2
Total - Year to date ended June 30, 2023				$	13.5

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

The assumptions used to determine the grant date fair value are indicated below for awards granted to date during the current fiscal year.

	November 29, 2022
Variables used in determining grant date fair value:
Dividend yield	2.20%
Risk-free rate	4.20%
Expected term (in years)	2.83

The assumptions used to determine the grant date fair value are indicated below for awards granted to date during the current fiscal year.

	November 29, 2022
Variables used in determining grant date fair value:
Dividend yield	1.80%
Risk-free rate	3.89%
Expected term (in years)	6.00

XML

Supplemental Balance Sheet Information (Tables)

3 Months Ended

Jun. 30, 2023

Balance Sheet Related Disclosures [Abstract]

Schedule Of Selected Supplemental Balance Sheet Information [Table Text Block]

Selected supplemental asset information is presented below:

	June 30,		September 30,
	2023		2022
	(in millions)
Inventories:
Purchased components and raw materials	$	180.2	$	181.8
Work in process, net	64.9		56.8
Finished goods, net	67.6		40.1
Inventories, net	$	312.7	$	278.7
Other current assets:
Prepaid expenses	$	15.6	$	14.6
Non-trade receivables	1.7		1.6
Maintenance and repair supplies and tooling	3.9		2.8
Income taxes	0.8		0.8
Workers' compensation reimbursement receivable	1.5		2.6
Other current assets	3.7		4.4
Total other current assets	$	27.2	$	26.8
Property, plant and equipment:
Land	$	6.6	$	5.7
Buildings	104.0		87.6
Machinery and equipment	505.7		456.0
Construction in progress	59.4		104.7
Total property, plant and equipment	675.7		654.0
Accumulated depreciation	(368.8)		(352.4)
Property, plant and equipment, net	$	306.9	$	301.6
Other noncurrent assets:
Operating lease right-of-use assets	$	25.2	$	26.0
Maintenance and repair supplies and tooling	21.6		20.4
Workers' compensation reimbursement receivable	3.1		3.6
Pension asset	0.1		0.6
Note receivable	1.8		1.7
Deferred financing fees	0.8		1.0
Other noncurrent assets	3.5		3.4
Total other noncurrent assets	$	56.1	$	56.7

Schedule of Accrued Liabilities

Selected supplemental liability information is presented below:

	June 30,		September 30,
	2023		2022
	(in millions)
Other current liabilities:
Compensation and benefits	$	33.6	$	40.2
Customer rebates	12.7		16.2
Income taxes payable	6.4		7.5
Warranty accrual	7.9		6.5
Deferred revenue	8.7		8.1
Returned goods accrual	5.7		4.2
Taxes other than income taxes	2.7		4.4
Operating lease liabilities	5.1		4.4
Workers' compensation accrual	3.1		4.6
CARES Act payroll tax liabilities	—		4.4
Restructuring liabilities	2.2		3.3
Environmental liabilities	0.7		0.7
Interest payable	0.8		5.3
Other current liabilities	8.5		7.6
Total other current liabilities	$	98.1	$	117.4
Other noncurrent liabilities:
Operating lease liabilities	$	21.2	$	22.4
Warranty accrual	3.1		4.2
Transition tax liability	3.1		4.1
Uncertain tax position liability	5.3		4.7
NMTC liability	3.9		3.9
Workers' compensation accrual	6.1		6.5
Environmental liabilities	3.6		3.6
Deferred development grant	2.5		2.5
Other noncurrent liabilities	3.7		3.5
Total other noncurrent liabilities	$	52.5	$	55.4

Schedule of Goodwill

The following table summarizes information concerning our goodwill, all of which is within our Water Management Solutions segment, during the nine months ended June 30, 2023, in millions:

Balance at September 30, 2022:
Goodwill	$	822.7
Accumulated impairment	(724.1)
Goodwill, net	98.6
Activity during the nine months ended June 30, 2023:
Change in foreign currency exchange rates	(1.6)
Balance at June 30, 2023	$	97.0

XML

Accumulated Other Comprehensive Loss (Tables)

9 Months Ended

Jun. 30, 2023

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule Of Accumulated Other Comprehensive Loss

Accumulated other comprehensive income (loss) is as follows:

	Pension actuarial amortization, net of income tax		Foreign currency translation, net of income tax		Total
	(in millions)
Balance at September 30, 2022	$	(36.3)	$	(8.3)	$	(44.6)
Current period other comprehensive income (loss)	2.0		(3.0)		(1.0)
Balance at June 30, 2023	$	(34.3)	$	(11.3)	$	(45.6)

For the nine months ended June 30, 2023, pension actuarial amortization included in the condensed consolidated statements of comprehensive income as a component of pension expense other than service was $2.8 million, net of income tax of $0.8 million. Refer to Note 5. Retirement Plans for further information. For the nine months ended June 30, 2023, foreign currency translation included in the condensed consolidated statements of comprehensive income was $3.0 million, net of $0 income tax.

XML

Segment Information (Tables)

9 Months Ended

Jun. 30, 2023

Segment Reporting, Measurement Disclosures [Abstract]

Schedule Of Selected Supplemental Balance Sheet Information

Summarized financial information for our segments is presented below:

	Three months ended				Nine months ended
	June 30,				June 30,
	2023		2022		2023		2022
	(in millions)
Net sales, excluding intercompany:
Water Flow Solutions	$	150.1	$	195.9	$	472.9	$	534.7
Water Management Solutions	176.5		137.3		501.4		381.3
	$	326.6	$	333.2	$	974.3	$	916.0
Operating income (loss):
Water Flow Solutions	$	12.6	$	38.1	$	52.0	$	104.8
Water Management Solutions	39.0		12.0		90.3		35.1
Corporate	(16.0)		(13.2)		(39.8)		(39.9)
	$	35.6	$	36.9	$	102.5	$	100.0
Depreciation and amortization:
Water Flow Solutions	$	8.2	$	7.6	$	23.7	$	22.5
Water Management Solutions	7.6		7.2		22.3		22.2
Corporate	—		0.1		0.1		0.2
	$	15.8	$	14.9	$	46.1	$	44.9
Strategic reorganization and other charges (benefits):
Water Flow Solutions	$	0.1	$	—	$	0.1	$	—
Water Management Solutions	1.0		—		1.2		0.2
Corporate	2.8		0.6		(0.4)		3.4
	$	3.9	$	0.6	$	0.9	$	3.6
Capital expenditures:
Water Flow Solutions	$	7.5	$	8.1	$	23.1	$	29.6
Water Management Solutions	4.4		2.6		9.3		7.1
Corporate	—		—		—		—
	$	11.9	$	10.7	$	32.4	$	36.7
Water Flow Solutions disaggregated net sales:
Central	$	43.0	$	53.8	$	131.0	$	145.0
Northeast	31.7		29.4		93.4		90.5
Southeast	24.8		44.3		86.8		122.3
West	37.8		47.4		123.4		131.3
United States	137.3		174.9		434.6		489.1
Canada	9.8		18.8		29.2		40.7
Other international locations	3.0		2.2		9.1		4.9
	$	150.1	$	195.9	$	472.9	$	534.7
Water Management Solutions disaggregated net sales:
Central	$	47.4	$	37.7	$	133.2	$	101.1
Northeast	44.3		25.4		116.1		78.1
Southeast	37.1		27.8		109.8		79.6
West	31.2		30.8		93.0		77.8
United States	160.0		121.7		452.1		336.6
Canada	10.0		9.7		29.9		26.0
Other international locations	6.5		5.9		19.4		18.7
	$	176.5	$	137.3	$	501.4	$	381.3

XML

Organization (Details) $ in Millions	3 Months Ended			9 Months Ended
	Jun. 30, 2023 USD ($) business_segments	Jun. 30, 2022 USD ($)	Dec. 31, 2021 USD ($)	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)
Segment Reporting Information [Line Items]
Restructuring	$ 2.2	$ 0.5		$ 2.2	$ 0.5	$ 3.3	$ 3.1
Restructuring and other charges	3.9	0.6		0.9	3.6
Payments				2.0	3.0
Pension costs (benefits) other then service	$ 0.9	$ (0.9)		$ 2.8	$ (2.9)
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%		21.00%	21.00%
Number of Reportable Segments | business_segments	2
Payments for (Proceeds from) Previous Acquisition			$ 19.5
Payments for Previous Acquisition			$ 0.2
Other Sundry Liabilities, Noncurrent	$ 3.9			$ 3.9
Proceeds from Other Equity, Gross Amount	4.8			4.8
Intercompany Loan related to NMTC	12.2			12.2
Investment Fund Contribution for NMTC	16.5			16.5
Sub-CDE loan from NMTC	16.2			16.2
Mueller Co. [Member]
Segment Reporting Information [Line Items]
Restructuring and other charges	$ 0.1	$ 0.0		$ 0.1	$ 0.0

XML

Organization Restructuring (Details) - USD ($) $ in Millions	3 Months Ended			9 Months Ended
	Jun. 30, 2023	Dec. 31, 2022	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]
Restructuring	$ 2.2		$ 0.5	$ 2.2	$ 0.5	$ 3.3	$ 3.1
Restructuring and other charges	$ 3.9		$ 0.6	0.9	3.6
Payments				$ (2.0)	$ (3.0)
Gain (Loss) on Sale of Properties		$ 4.0

XML

Borrowing Arrangements (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Restructuring Cost and Reserve [Line Items]
Restructuring Reserve, Accrual Adjustment	$ 0.9	$ 0.4

XML

Revenue from Contracts with Customers (Details) - USD ($)
$ in Millions

9 Months Ended

Jun. 30, 2023

Sep. 30, 2022

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

Refer to Note 8. for disaggregation of our revenues from contracts with customers by reportable segment and by geographical region, which we believe 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

Differences 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 (i.e., 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 of when we expect to recognize revenue. We include current deferred revenue within Other current liabilities in the accompanying condensed consolidated balance sheets. Deferred revenue represents contract liabilities and is recorded when customers remit cash payments in advance of our satisfaction of performance obligations pursuant to 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 revenue:

	June 30,		September 30,
	2023		2022
	(in millions)
Billed receivables	$	211.2	$	230.5
Unbilled receivables	5.5		3.1
Gross customer receivables	216.7		233.6
Allowance for credit losses	(6.4)		(5.6)
Receivables, net	$	210.3	$	228.0
Deferred revenue	$	8.7	$	8.1

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 for sales of equipment or product and over time for 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. The transaction price is adjusted for our estimate of variable consideration which may include discounts and rebates. To estimate variable consideration, we apply the expected value or the most likely amount method, based on whichever method most appropriately predicts the amount of consideration we expect to receive. The method applied is typically based on historical experience and known trends. We constrain the amounts of variable consideration that are included in the transaction price, to the extent that it is probable that a significant reversal in the amount of cumulative revenue recognized will not occur or when uncertainties around the variable consideration are resolved.

We exclude from the measurement of the transaction price all taxes assessed by a governmental authority.

We do 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.

Revenue for the sale of our products is recognized when the obligations of the terms of our contract are satisfied, which is when the customer is able to direct the use of and obtain substantially all of the benefits from the product, which generally occurs upon shipment when control of the product transfers to the customer.

We offer warranties to our customers which provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These warranties cannot be purchased separately from our products.

Costs to Obtain or Fulfill a Contract

Shipping and handling costs associated with freight activities after the customer has obtained control of a product are included in cost of sales at the time the related revenue is recognized.

We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. Our sales commissions are paid based on a combination of orders and shipments, and we reserve the right to claw back any commissions in case of product returns, cancellations or lost collections. As the expected benefit associated with these incremental costs is generally one year or less based on the nature of the product sold and benefits received, we do not capitalize the related costs and expense them as incurred.

Billed Contracts Receivable

$ 211.2

$ 230.5

Deferred Revenue

8.7

8.1

Unbilled receivables

5.5

3.1

Total customer receivables

216.7

233.6

Accounts Receivable, Allowance for Credit Loss, Current

6.4

5.6

Receivables, Net, Current

$ 210.3

$ 228.0

XML

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits	$ 5.3		$ 5.3		$ 4.7
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%	21.00%	21.00%
State income taxes, net of federal benefit	3.20%	3.30%	3.20%	3.30%
Tax credits	(3.50%)	(3.00%)	(2.80%)	(3.00%)
Other	0.20%	(0.40%)	1.30%	1.20%

XML

Income Taxes Income Tax Rate Reconciliation (Details)	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%	21.00%	21.00%
Adjustments to reconcile to the effective tax rate:
State income taxes, net of federal benefit	3.20%	3.30%	3.20%	3.30%
Valuation allowance adjustment related to stock compensation	0.00%	0.00%	0.00%	0.30%
Tax benefits from stock compensation	0.00%	0.00%	0.20%	(0.30%)
Tax credits	(3.50%)	(3.00%)	(2.80%)	(3.00%)
Effective Income Tax Rate Reconciliation, GILTI, percent	1.10%	1.10%	1.10%	1.10%
Other	0.20%	(0.40%)	1.30%	1.20%
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent	(2.20%)	(1.70%)	(2.20%)	(1.70%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-Based Payment Arrangement, Percent	0.90%	0.90%	0.90%	0.90%
Effective income tax rate reconciliation, basis difference in foreign investment	0.00%	(0.10%)	0.00%	(0.10%)
Effective income tax rate	20.70%	21.10%	22.70%	22.70%

XML

Borrowing Arrangements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2021	Jun. 30, 2023	Sep. 30, 2022	Jun. 30, 2022	May 28, 2021
Long-term Debt, Gross	$ 451.6		$ 451.6	$ 451.6
Outstanding letter of credit accrued fees and expenses	0.2		0.2
Cash and cash equivalents					$ 154.9
Future maturities of outstanding borrowings
Outstanding letters of credit	12.5		12.5
Domestic Line of Credit [Member]
Revolving credit facility amount	(175.0)		(175.0)
Future maturities of outstanding borrowings
Line of Credit Facility, Maximum Borrowing Capacity	$ 175.0		175.0
Potential increase size of the credit facility by an additional amount			$ 150.0
Line of Credit Facility, Borrowing Base, Percentage of Eligible Accounts Receivable	85.00%		85.00%
Line of Credit Facility, Borrowing Base, Percentage of Eligible Inventory	70.00%		70.00%
Line of Credit Facility, Borrowing Base, Percentage of Net Orderly Liquidation Value of Eligible Inventory	85.00%		85.00%
Line of Credit Facility, Covenant, Percent of Loan Cap	10.00%		10.00%
Unsecured Debt [Member]
Long-term Debt, Gross						$ 450.0
Future maturities of outstanding borrowings
Payments of debt issuance costs		$ 5.5
Swing Line Loans [Member]
Revolving credit facility amount	$ (25.0)		$ (25.0)
Future maturities of outstanding borrowings
Line of Credit Facility, Maximum Borrowing Capacity	25.0		25.0
Letters Of Credit Outstanding [Member]
Revolving credit facility amount	(60.0)		(60.0)
Future maturities of outstanding borrowings
Line of Credit Facility, Maximum Borrowing Capacity	$ 60.0		$ 60.0
5.5% Senior Notes
Debt Instrument, Interest Rate, Effective Percentage	4.00%		4.00%
Future maturities of outstanding borrowings
Financial Liabilities Fair Value Disclosure	$ 400.7		$ 400.7
Debt Instrument, Redemption Price, Percentage			40.00%
Debt Instrument, Redemption Price Upon Change In Control, Percentage			101.00%
Revolving Credit Facility
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses	162.3		$ 162.3
Future maturities of outstanding borrowings
Aggregate commitments availability			17.5
Line of Credit Facility, Remaining Borrowing Capacity	$ 162.3		$ 162.3
Minimum [Member] | Domestic Line of Credit [Member]
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage			0.375%
Base Rate [Member] | Domestic Line of Credit [Member]
Line of Credit Facility, Interest Rate at Period End	1.00%		1.00%
Base Rate [Member] | Minimum [Member] | Domestic Line of Credit [Member]
Debt Instrument, Basis Spread on Variable Rate			1.00%
Base Rate [Member] | Maximum [Member] | Domestic Line of Credit [Member]
Debt Instrument, Basis Spread on Variable Rate			1.25%
Secured Overnight Financing Rate | Domestic Line of Credit [Member]
Debt Instrument, Basis Spread on Variable Rate	0.10%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Domestic Line of Credit [Member]
Line of Credit Facility, Interest Rate at Period End	2.00%		2.00%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Minimum [Member] | Domestic Line of Credit [Member]
Debt Instrument, Basis Spread on Variable Rate			2.00%
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | Maximum [Member] | Domestic Line of Credit [Member]
Debt Instrument, Basis Spread on Variable Rate			2.25%

XML

Borrowing Arrangements (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Sep. 30, 2022	May 28, 2021
Long-term Debt, Gross	$ 451.6	$ 451.6
Deferred financing costs	4.1	4.7
Current portion of long-term debt	0.8	0.8
Long-term debt	446.7	446.1
Unsecured Debt [Member]
5.5% Senior Notes	450.0	450.0
Long-term Debt, Gross			$ 450.0
Other [Member]
Finance Lease, Liability	$ 1.6	$ 1.6

XML

Derivative Financial Instruments (Details) - USD ($) $ in Millions	Jun. 30, 2023	Sep. 30, 2022
Derivative [Line Items]
Long-term Debt, Gross	$ 451.6	$ 451.6

XML

Retirement Plans (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Retirement Benefits [Abstract]
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax	$ 0.2	$ (0.2)	$ 0.8	$ (0.3)

XML

Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Defined Benefit Plan, Service Cost	$ 0.2	$ 0.3	$ 0.6	$ 0.9
Defined Benefit Plan, Interest Cost	3.4	2.5	10.4	7.3
Defined Benefit Plan, Expected Return (Loss) on Plan Assets	(3.5)	(3.8)	(10.4)	(11.4)
Amortization of actuarial net loss	1.0	0.4	2.8	1.2
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost	0.9	(0.9)	2.8	(2.9)
Net periodic benefit cost	$ 1.1	$ (0.6)	$ 3.4	$ (2.0)

XML

Stock-based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Millions		3 Months Ended				9 Months Ended
	Nov. 29, 2022	Jun. 30, 2023 USD ($) $ / shares shares	Mar. 31, 2023 $ / shares shares	Dec. 31, 2022 $ / shares shares	Jun. 30, 2022 USD ($) shares	Jun. 30, 2023 USD ($) $ / shares shares	Jun. 30, 2022 USD ($) shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	2.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	4.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	2 years 9 months 29 days
Share-based Payment Arrangement, Expense | $		$ 2.7			$ 2.5	$ 8.8	$ 7.6
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $		$ 11.9				$ 11.9
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		249,933			892,662	1,156,428	750,343
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		1,589				138,525
Phantom Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares		$ 13.93	$ 13.42	$ 11.41
Granted, shares		7,176	8,367	267,093
Share-based compensation liability | $		$ 3.5				$ 3.5
Share Based Compensation Arrangement By Share Based Payment Award, Fair Value | $ / shares		$ 16.23				$ 16.23
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares				$ 11.41
Granted, shares				166,284
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period						3 years
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture		0				282,472
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares			$ 13.89	$ 11.39
Granted, shares			82,769	228,692
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		2,098				218,121
Market Based Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares				$ 15.08
Granted, shares				166,284
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period						3 years
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	1.80%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares				$ 3.31
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	3.89%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	6 years
Granted, shares				573,279
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture		2,896				64,847
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period						3 years
Minimum [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance Factors						0
Minimum [Member] | Market Based Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance Factors						0
Maximum [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance Factors						2
Maximum [Member] | Market Based Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Performance Factors						2

XML

Stock-based Compensation Plans Grants Table (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended			9 Months Ended
	Nov. 29, 2022	Jun. 30, 2023	Mar. 31, 2023	Dec. 31, 2022	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		$ 0.2	$ 1.3	$ 12.0	$ 13.5
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	2.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	4.20%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	2 years 9 months 29 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares			82,769	228,692
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value			$ 13.89	$ 11.39
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture			$ 1.1	$ 2.6
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		45,860	56,066	47,463
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 2.28	$ 2.21	$ 2.56
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		$ 0.1	$ 0.1	$ 0.1
Phantom Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		7,176	8,367	267,093
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 13.93	$ 13.42	$ 11.41
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		$ 0.1	$ 0.1	$ 3.0
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares				166,284
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value				$ 11.41
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture				$ 1.9
Market Based Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares				166,284
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value				$ 15.08
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture				$ 2.5
Share-based Payment Arrangement, Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares				573,279
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value				$ 3.31
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture				$ 1.9
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	1.80%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	3.89%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	6 years

XML

Supplemental Balance Sheet Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2023	Sep. 30, 2022	Sep. 30, 2021
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	$ 141.2	$ 146.5	$ 227.5
Inventories:
Purchased components and raw material	180.2	181.8
Work in process	64.9	56.8
Finished goods	67.6	40.1
Inventories, net	312.7	278.7
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid Expense	15.6	14.6
Nontrade Receivables	1.7	1.6
Maintenance and repair tooling	3.9	2.8
Income taxes	0.8	0.8
Nontrade Receivables, Current	1.5	2.6
Other	3.7	4.4
Other	27.2	26.8
Property, plant and equipment:
Land	6.6	5.7
Buildings	104.0	87.6
Machinery and equipment	505.7	456.0
Construction in progress	59.4	104.7
Property, plant and equipment, gross	675.7	654.0
Accumulated depreciation	(368.8)	(352.4)
Property, plant and equipment net	306.9	301.6
Other Assets, Noncurrent [Abstract]
Operating lease, Right-of-Use asset	25.2	26.0
us-Maintenance, repair and tooling supplies	21.6	20.4
Nontrade Receivables, Noncurrent	3.1	3.6
Assets for Plan Benefits, Defined Benefit Plan	0.1	0.6
Other Receivables	1.8	1.7
Debt Issuance Costs, Noncurrent, Net	0.8	1.0
Other Assets, Miscellaneous, Noncurrent	3.5	3.4
Other noncurrent assets	56.1	56.7
Goodwill, Foreign Currency Translation Gain (Loss)	(1.6)
Goodwill	$ 97.0	$ 98.6

XML

Supplemental Balance Sheet Information (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Millions	Jun. 30, 2023	Sep. 30, 2022
Other current liabilities:
Compensation and benefits	$ 33.6	$ 40.2
Customer rebates	12.7	16.2
Accrued Income Taxes	6.4	7.5
Warranty accrual	7.9	6.5
Deferred Revenue	8.7	8.1
Customer Refund Liability, Current	5.7	4.2
Accrual for Taxes Other than Income Taxes	2.7	4.4
Operating lease liability, current	5.1	4.4
Workers' Compensation Liability, Current	3.1	4.6
CARES Act deferral, current portion	0.0	4.4
Restructuring reserve, current	2.2	3.3
Environmental	0.7	0.7
Interest Payable	0.8	5.3
Other Liabilities, Current	8.5	7.6
Accrued liabilities	98.1	117.4
Other Liabilities, Noncurrent [Abstract]
Operating lease liability, noncurrent	21.2	22.4
Product Warranty Accrual, Noncurrent	3.1	4.2
Transition Tax Liability	3.1	4.1
Unrecognized Tax Benefits	5.3	4.7
New market tax credit liabilities	3.9	3.9
Workers' Compensation Liability, Noncurrent	6.1	6.5
Accrued Environmental Loss Contingencies, Noncurrent	3.6	3.6
Grant yet to be earned	2.5	2.5
Other Accrued Liabilities, Noncurrent	3.7	3.5
Other Liabilities, Noncurrent, Total	$ 52.5	$ 55.4

XML

Supplemental Balance Sheet Information (Goodwill) (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2023	Sep. 30, 2022
Statement of Financial Position [Abstract]
Goodwill	$ 97.0	$ 98.6
Goodwill, Gross		822.7
Goodwill, Impaired, Accumulated Impairment Loss		$ (724.1)
Goodwill, Foreign Currency Translation Gain (Loss)	$ (1.6)

XML

Accumulated Other Comprehensive Loss (Schedule Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax	$ (34.3)		$ (34.3)		$ (36.3)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax			2.0
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	(11.3)		(11.3)		(8.3)
Foreign currency translation	(4.9)	$ (17.6)	(3.0)	$ (15.5)
Accumulated other comprehensive income (loss)	(45.6)		(45.6)		$ (44.6)
Other comprehensive income (loss), net of tax			(1.0)
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax			(3.0)
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax			0.0
Minimum pension liability			2.8
Other comprehensive income (loss), pension income tax effects	$ (0.2)	$ 0.2	$ (0.8)	$ 0.3

XML

Segment Information (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Segment Reporting Information [Line Items]
Restructuring and other charges	$ 3.9	$ 0.6	$ 0.9	$ 3.6
Operating income	35.6	36.9	102.5	100.0
Depreciation, Depletion and Amortization	15.8	14.9	46.1	44.9
Payments to Acquire Productive Assets	11.9	10.7	32.4	36.7
Net sales	326.6	333.2	974.3	916.0
Mueller Co. [Member]
Segment Reporting Information [Line Items]
Restructuring and other charges	0.1	0.0	0.1	0.0
Operating income	12.6	38.1	52.0	104.8
Depreciation, Depletion and Amortization	8.2	7.6	23.7	22.5
Payments to Acquire Productive Assets	7.5	8.1	23.1	29.6
Net sales	150.1	195.9	472.9	534.7
Mueller Co. [Member] | Central Region [Member]
Segment Reporting Information [Line Items]
Net sales	43.0	53.8	131.0	145.0
Mueller Co. [Member] | Northeast Region [Member] [Member]
Segment Reporting Information [Line Items]
Net sales	31.7	29.4	93.4	90.5
Mueller Co. [Member] | Southeast Region [Member]
Segment Reporting Information [Line Items]
Net sales	24.8	44.3	86.8	122.3
Mueller Co. [Member] | Western Region [Member]
Segment Reporting Information [Line Items]
Net sales	37.8	47.4	123.4	131.3
Mueller Co. [Member] | UNITED STATES
Segment Reporting Information [Line Items]
Net sales	137.3	174.9	434.6	489.1
Mueller Co. [Member] | CANADA
Segment Reporting Information [Line Items]
Net sales	9.8	18.8	29.2	40.7
Mueller Co. [Member] | Other International Locations [Member]
Segment Reporting Information [Line Items]
Net sales	3.0	2.2	9.1	4.9
Corporate
Segment Reporting Information [Line Items]
Restructuring and other charges	2.8	0.6	(0.4)	3.4
Operating income	(16.0)	(13.2)	(39.8)	(39.9)
Depreciation, Depletion and Amortization	0.0	0.1	0.1	0.2
Payments to Acquire Productive Assets	0.0	0.0	0.0	0.0
Mueller Technologies [Member]
Segment Reporting Information [Line Items]
Restructuring and other charges	1.0	0.0	1.2	(0.2)
Operating income	39.0	12.0	90.3	35.1
Depreciation, Depletion and Amortization	7.6	7.2	22.3	22.2
Payments to Acquire Productive Assets	4.4	2.6	9.3	7.1
Net sales	176.5	137.3	501.4	381.3
Mueller Technologies [Member] | Central Region [Member]
Segment Reporting Information [Line Items]
Net sales	47.4	37.7	133.2	101.1
Mueller Technologies [Member] | Northeast Region [Member] [Member]
Segment Reporting Information [Line Items]
Net sales	44.3	25.4	116.1	78.1
Mueller Technologies [Member] | Southeast Region [Member]
Segment Reporting Information [Line Items]
Net sales	37.1	27.8	109.8	79.6
Mueller Technologies [Member] | Western Region [Member]
Segment Reporting Information [Line Items]
Net sales	31.2	30.8	93.0	77.8
Mueller Technologies [Member] | UNITED STATES
Segment Reporting Information [Line Items]
Net sales	160.0	121.7	452.1	336.6
Mueller Technologies [Member] | CANADA
Segment Reporting Information [Line Items]
Net sales	10.0	9.7	29.9	26.0
Mueller Technologies [Member] | Other International Locations [Member]
Segment Reporting Information [Line Items]
Net sales	$ 6.5	$ 5.9	$ 19.4	$ 18.7

XML

Segment Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022	Sep. 30, 2022
Segment Reporting Information [Line Items]
Net sales	$ 326.6	$ 333.2	$ 974.3	$ 916.0
Operating income	35.6	36.9	102.5	100.0
Depreciation and amortization	15.8	14.9	46.1	44.9
Restructuring and other charges	3.9	0.6	0.9	3.6
Payments to Acquire Productive Assets	11.9	10.7	32.4	36.7
Total assets	1,493.3		1,493.3		$ 1,498.1
Intangible intangible assets, net	341.9		341.9		$ 361.2
Mueller Co. [Member]
Segment Reporting Information [Line Items]
Net sales	150.1	195.9	472.9	534.7
Operating income	12.6	38.1	52.0	104.8
Depreciation and amortization	8.2	7.6	23.7	22.5
Restructuring and other charges	0.1	0.0	0.1	0.0
Payments to Acquire Productive Assets	7.5	8.1	23.1	29.6
Mueller Co. [Member] | Central Region [Member]
Segment Reporting Information [Line Items]
Net sales	43.0	53.8	131.0	145.0
Mueller Co. [Member] | Northeast Region [Member] [Member]
Segment Reporting Information [Line Items]
Net sales	31.7	29.4	93.4	90.5
Mueller Co. [Member] | Southeast Region [Member]
Segment Reporting Information [Line Items]
Net sales	24.8	44.3	86.8	122.3
Mueller Co. [Member] | Western Region [Member]
Segment Reporting Information [Line Items]
Net sales	37.8	47.4	123.4	131.3
Mueller Co. [Member] | CANADA
Segment Reporting Information [Line Items]
Net sales	9.8	18.8	29.2	40.7
Mueller Co. [Member] | Other International Locations [Member]
Segment Reporting Information [Line Items]
Net sales	3.0	2.2	9.1	4.9
Mueller Co. [Member] | UNITED STATES
Segment Reporting Information [Line Items]
Net sales	137.3	174.9	434.6	489.1
Mueller Technologies [Member]
Segment Reporting Information [Line Items]
Net sales	176.5	137.3	501.4	381.3
Operating income	39.0	12.0	90.3	35.1
Depreciation and amortization	7.6	7.2	22.3	22.2
Restructuring and other charges	1.0	0.0	1.2	(0.2)
Payments to Acquire Productive Assets	4.4	2.6	9.3	7.1
Mueller Technologies [Member] | Central Region [Member]
Segment Reporting Information [Line Items]
Net sales	47.4	37.7	133.2	101.1
Mueller Technologies [Member] | Northeast Region [Member] [Member]
Segment Reporting Information [Line Items]
Net sales	44.3	25.4	116.1	78.1
Mueller Technologies [Member] | Southeast Region [Member]
Segment Reporting Information [Line Items]
Net sales	37.1	27.8	109.8	79.6
Mueller Technologies [Member] | Western Region [Member]
Segment Reporting Information [Line Items]
Net sales	31.2	30.8	93.0	77.8
Mueller Technologies [Member] | CANADA
Segment Reporting Information [Line Items]
Net sales	10.0	9.7	29.9	26.0
Mueller Technologies [Member] | Other International Locations [Member]
Segment Reporting Information [Line Items]
Net sales	6.5	5.9	19.4	18.7
Mueller Technologies [Member] | UNITED STATES
Segment Reporting Information [Line Items]
Net sales	$ 160.0	$ 121.7	$ 452.1	$ 336.6

XML

Subsequent Events (Details) - $ / shares				3 Months Ended		9 Months Ended
	Aug. 21, 2023	Aug. 10, 2023	Jul. 26, 2023	Jun. 30, 2023	Jun. 30, 2022	Jun. 30, 2023	Jun. 30, 2022
Subsequent Event [Line Items]
Dividends declared per share, in dollars per share				$ 0.061	$ 0.058	$ 0.183	$ 0.174
Domestic Line of Credit [Member] | Secured Overnight Financing Rate
Subsequent Event [Line Items]
Debt Instrument, Basis Spread on Variable Rate				0.10%
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends Payable, Date Declared			Jul. 26, 2023
Dividends declared per share, in dollars per share			$ 0.061
Dividends Payable, Date to be Paid	Aug. 21, 2023
Dividends Payable, Date of Record		Aug. 10, 2023

XML

Business Combinations and Asset Acquisitions (Details) - USD ($) $ in Millions	9 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Acquistions [Abstract]
Payments to Acquire Businesses, Net of Cash Acquired	$ 0.0	$ (0.2)