Form 10-Q - Quarterly report [Sections 13 or 15(d)]

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 December 31, 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 156,177,315 shares of common stock of the registrant outstanding at February 5, 2024.

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ITEM		PAGE
PART I.	FINANCIAL INFORMATION
Item 1.	Financial Statements
	Unaudited Condensed Consolidated Balance Sheets - December 31, 2023 and September 30, 2023	3
	Unaudited Condensed Consolidated Statements of Operations - Three Months Ended December 31, 2023 and 2022	4
	Unaudited Condensed Consolidated Statements of Comprehensive Income - Three Months Ended December 31, 2023 and 2022	5
	Unaudited Condensed Consolidated Statements of Stockholders' Equity - Three Months Ended December 31, 2023 and 2022	6
	Unaudited Condensed Consolidated Statements of Cash Flows - Three Months Ended December 31, 2023 and 2022	7
	Notes to the Unaudited Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	22
Item 4.	Controls and Procedures	29

PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
I tem 5.	O ther Information	31
Item 6.	Exhibits	32
	Signatures	32

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PART I

Item 1. FINANCIAL STATEMENTS

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


	December 31,		September 30,
	2023		2023
	(in millions, except share amounts)
Assets:
Cash and cash equivalents	$	216.7	$	160.3
Receivables, net of allowance for credit losses of $7.5 million and $7.3 million	167.9		217.1
Inventories, net	311.3		297.9
Other current assets	33.5		31.5
Total current assets	729.4		706.8
Property, plant and equipment, net	308.4		311.7
Intangible assets, net	329.3		334.0
Goodwill, net	98.3		93.7
Other noncurrent assets	63.4		58.8
Total assets	$	1,528.8	$	1,505.0

Liabilities and stockholders’ equity:
Current portion of long-term debt	$	0.6	$	0.7
Accounts payable	108.9		102.9
Other current liabilities	112.1		115.2
Total current liabilities	221.6		218.8
Long-term debt	446.8		446.7
Deferred income taxes	71.1		73.8
Other noncurrent liabilities	58.1		54.2
Total liabilities	797.6		793.5

Commitments and contingencies (Note 10.)

Preferred stock: par value $0.01 per share; 60,000,000 shares authorized; none outstanding at December 31, 2023, and September 30, 2023	—		—
Common stock: par value $0.01 per share; 600,000,000 shares authorized; 156,112,060 and 155,871,932 shares outstanding at December 31, 2023, and September 30, 2023, respectively	1.6		1.6
Additional paid-in capital	1,231.9		1,240.4
Accumulated deficit	(467.5)		(481.8)
Accumulated other comprehensive loss	(34.8)		(48.7)
Total stockholders' equity	731.2		711.5
Total liabilities and stockholders' equity	$	1,528.8	$	1,505.0

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

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MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)


	Three months ended
	December 31,
	2023		2022

	(in millions, except per share amounts)
Net sales	$	256.4	$	314.8
Cost of sales	170.1		221.6
Gross profit	86.3		93.2
Operating expenses:
Selling, general and administrative	56.9		62.9
Strategic reorganization and other charges (benefits)	6.6		(3.7)
Total operating expenses	63.5		59.2
Operating income	22.8		34.0
Other expenses:
Pension expense other than service	1.0		0.9
Interest expense, net	3.3		3.7
Other expense	1.6		—
Total other expenses, net	5.9		4.6
Income before income taxes	16.9		29.4
Income tax expense	2.6		6.9
Net income	$	14.3	$	22.5

Net income per share:
Basic	$	0.09	$	0.14
Diluted	$	0.09	$	0.14

Weighted average shares outstanding:
Basic	156.0		156.4
Diluted	156.7		157.0

Dividends declared per share	$	0.064	$	0.061

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

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MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


	Three months ended
	December 31,
	2023		2022

	(in millions)
Net income	$	14.3	$	22.5
Other comprehensive income, net of income tax:
Pension actuarial amortization	0.6		0.6
Foreign currency translation	13.3		4.0
Total other comprehensive income, net of income tax	13.9		4.6
Comprehensive income	$	28.2	$	27.1

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

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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, 2023	$	1.6	$	1,240.4	$	(481.8)	$	(48.7)	$	711.5
Net income	—		—		14.3		—		14.3
Dividends declared	—		(10.0)		—		—		(10.0)
Stock-based compensation	—		2.6		—		—		2.6
Shares retained for employee taxes	—		(1.5)		—		—		(1.5)
Common stock issued	—		0.4		—		—		0.4

Other comprehensive income, net of tax	—		—		—		13.9		13.9
Balance at December 31, 2023	$	1.6	$	1,231.9	$	(467.5)	$	(34.8)	$	731.2


	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

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

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MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Three months ended
	December 31,
	2023		2022
	(in millions)
Operating activities:
Net income	$	14.3	$	22.5
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation	9.5		7.8
Amortization	6.9		7.0
Gain on sale of assets	(0.1)		(4.0)
Stock-based compensation	2.6		1.8
Pension cost	1.2		1.1
Deferred income taxes	(3.4)		(0.9)
Inventory reserve provision	2.1		1.2
Other, net	0.3		0.5
Changes in assets and liabilities:
Receivables, net	49.7		26.4
Inventories	(14.6)		(36.1)
Other assets	(6.1)		(3.6)
Accounts payable	5.7		(19.6)
Other current liabilities	(3.6)		(8.4)
Other noncurrent liabilities	3.4		(2.2)
Net cash provided by (used in) operating activities	67.9		(6.5)
Investing activities:
Capital expenditures	(5.7)		(9.9)

Proceeds from sale of assets	0.1		5.1
Net cash used in investing activities	(5.6)		(4.8)
Financing activities:


Dividends paid	(10.0)		(9.5)
Employee taxes related to stock-based compensation	(1.5)		(1.5)
Common stock issued	0.4		0.6



Payments for finance lease obligations	(0.2)		(0.1)
Net cash used in financing activities	(11.3)		(10.5)
Effect of currency exchange rate changes on cash	5.4		0.9
Net change in cash and cash equivalents	56.4		(20.9)
Cash and cash equivalents at beginning of period	160.3		146.5
Cash and cash equivalents at end of period	$	216.7	$	125.6

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

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	Three months ended
	December 31,
	2023		2022

	(in millions)
Supplemental cash flow information:
Cash paid for interest, net	$	7.6	$	8.6
Cash paid for income taxes, net	$	0.8	$	0.2

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

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MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

AS OF AND FOR THE THREE MONTHS ENDED DECEMBER 31, 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. 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, and pressure management and control products and solutions. 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.

Our condensed 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 that affect the reported amounts of assets, liabilities, sales and expenses as well as in the disclosure of contingent assets and liabilities for the reporting periods. Actual results could differ from those estimates. All significant intercompany balances and transactions have been eliminated. These condensed consolidated financial statements do not include all information required by GAAP for complete financial statements and 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, 2023. 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, 2023 was derived from our audited financial statements.

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 most of Canada generally face weather conditions that restrict significant construction activity. Therefore, the results of operations for the three months ending December 31, 2023 are not necessarily indicative of operating results that may be achieved for any other interim period or the full year.

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.

Accounting Pronouncements Not Yet Adopted

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2023-07 “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures” (“ASU 2023-07”). ASU 2023-07 requires public business entities that disclose information on their reportable segments to provide additional information on their significant expense categories and “other segment items,” which represent the difference between segment revenue less significant segment expense and a segment’s measure of profit or loss. A description of “other segment items” is also required. Further, certain segment related disclosures that were limited to annual disclosure are now required for interim periods. Finally, public business entities are required to disclose the title and position of their Chief Operating Decision Maker (“CODM”) and explain how the CODM uses the reported measures of profit or loss to assess segment performance. This guidance is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Upon adoption, ASU 2023-07 should be applied retrospectively to all prior periods. We do not expect ASU 2023-07 to have a material impact on our financial statements and related disclosures.

In December 2023, the FASB issued ASU No 2023-09 “Income Taxes (Topic 740): Improvements to Tax Disclosures” (“ASU 2023-09”). ASU 2023-09 requires public business entities to disclose a tabular rate reconciliation utilizing percentages and reporting currency amounts in specific categories with certain reconciling items at or above the specified 5% threshold to improve the transparency and comparability of disclosures. Additionally, entities are required to disclose the year to date amount of income taxes paid, net of refunds received, disaggregated by federal (national), state, and foreign jurisdictions. Disclosure of all individual jurisdictions where income taxes paid, net of refunds received, is 5% or more of the total is also required. This guidance is effective for fiscal years beginning after December 15, 2024 with early adoption permitted. Upon adoption, ASU 2023-09 should be applied on a prospective basis while retrospective application is permitted. We do not expect ASU 2023-09 to have a material impact on our financial statements and our related disclosures.

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Strategic Reorganization and Other Charges

During the three months ended December 31, 2023, we recorded approximately $6.6 million in Strategic reorganization and other charges, primarily consisting of $1.5 million of expenses related to the cybersecurity incidents, expenses associated with our previously announced leadership transition as well as other transaction-related expenses. During the three months ended December 31, 2022, we recorded a $4.0 million gain, before tax, on the sale of the Aurora, Illinois facility which was partially offset by transaction-related costs. Activity in accrued strategic reorganization and other charges, reported as part of Other current liabilities, is presented below:


	Three months ended
	December 31,
	2023		2022
	(in millions)
Beginning balance	$	6.6	$	3.3
Amounts accrued	6.6		(3.7)
Amounts (paid) received, net	(5.4)		1.1
Ending balance	$	7.8	$	0.7

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.

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 were expensed as incurred and were immaterial to the financial statements.

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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 certainty 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:


	December 31,		September 30,
	2023		2023

	(in millions)
Billed receivables	$	167.5	$	218.1
Unbilled receivables	7.9		6.3
Gross customer receivables	175.4		224.4
Allowance for credit losses	(7.5)		(7.3)
Receivables, net	$	167.9	$	217.1

Deferred revenue	$	8.4	$	9.2

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 and products or 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.

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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 in the form of assurance-type warranties, which provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These warranties cannot be purchased separately from our products. On limited products, we offer extended warranties which may be purchased separately.

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 accounted for as fulfillment costs and are expensed to Cost of sales within our condensed consolidated statement of operations 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 have applied the practical expedient to expense them as incurred and therefore do not capitalize the related costs.

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
	December 31,
	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	3.0		3.4
Excess tax deficit related to stock-based compensation	0.8		0.7
Tax credits	(2.7)		(1.6)
Global Intangible Low-Taxed Income	1.3		0.8
Foreign income tax rate differential	(1.8)		(1.6)
Nondeductible compensation	1.4		0.5
Uncertain tax positions	(8.8)		—
Valuation allowances	0.4		(0.2)
Other	0.8		0.5

Effective income tax rate	15.4	%	23.5	%

At December 31, 2023 and September 30, 2023, the gross liabilities for unrecognized income tax benefits were $3.7 million and $5.0 million, respectively, and are included in Other noncurrent liabilities.

During the three months ended December 31, 2023, we recorded $1.6 million in income tax benefits due to the release of an uncertain tax position that expired on December 31, 2023.

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Note 4. Borrowing Arrangements

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


	December 31,		September 30,
	2023		2023

	(in millions)
4.0% Senior Notes	$	450.0	$	450.0
Finance leases	1.1		1.3
Total debt	451.1		451.3
Less: deferred financing costs	3.7		3.9
Less: current portion of long-term debt	0.6		0.7
Long-term debt	$	446.8	$	446.7

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 borrowings 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.

In December 2023, we obtained a waiver under our ABL (“ABL Waiver”) to provide for additional time associated with certain technical reporting requirements that were delayed as a result of the cybersecurity incident announced on October 28, 2023. Under the ABL Waiver, the maximum aggregate amount of borrowings and other credit extensions under the ABL was limited to $50.0 million at any time outstanding until all of the required reports were delivered. During our first fiscal quarter of 2024, we delivered the required reports and on February 6, 2024, the ABL Waiver was terminated. Accordingly, we are no longer subject to any additional restrictions or borrowing limitations under the ABL including the $50.0 million temporary limit on credit extensions.

Borrowings under the ABL bear interest at a floating rate equal to the Secured Overnight Financing Rate (“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 100 to 125 basis points. At December 31, 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 December 31, 2023 data was $162.4 million, as reduced by $12.4 million of outstanding letters of credit and $0.2 million of accrued fees and expenses. However, during the waiver period, credit extensions were temporarily limited to $50.0 million as set forth in the waiver.

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. 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 $413.0 million at December 31, 2023.

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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 December 31, 2023.

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 as set forth in the Indenture. Upon a change of control, as defined in the Indenture, 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 Plan

We have a defined benefit plan (“Pension Plan”) that we fund in accordance with its requirements in amounts sufficient to satisfy the minimum funding requirements of applicable laws. The Pension Plan provides benefits based on years of service and compensation or at stated amounts for each year of service with an annual measurement date of September 30.

The components of net periodic cost for our Pension Plan are presented below:


	Three months ended
	December 31,
	2023		2022
	(in millions)
Service cost	$	0.2	$	0.2
Pension expense other than service:
Interest cost	3.5		3.5
Expected return on plan assets	(3.3)		(3.5)
Amortization of actuarial net loss	0.8		0.9
Pension expense other than service	1.0		0.9
Net periodic cost	$	1.2	$	1.1

The amortization of actuarial losses, net of income tax, is recorded as a component of Other comprehensive income. For the three months ended December 31, 2023 and 2022, the amortization of actuarial net loss is shown net of income tax of $0.2 million and $0.3 million, respectively, in the condensed consolidated statements of comprehensive income.

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 three months ended December 31, 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, 2023
MRSUs	136,983	$	18.11	$	2.5
PRSUs	136,983	13.22		1.8
Restricted stock units	161,943	13.27		2.1
Phantom Plan instruments	230,523	13.22		3.0
Non-qualified stock options	457,356	3.96		1.8
Employee stock purchase plan instruments	31,139	$	3.48	0.1
Total - Quarter ended December 31, 2023				$	11.3

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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 28, 2023
Variables used in determining grant date fair value:
Dividend yield						2.00%
Risk-free rate						4.50%
Expected term (in years)						2.84

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 December 31, 2023, the outstanding Phantom Plan instruments had a fair value of $14.40 per instrument and our liability for Phantom Plan instruments was $2.0 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 28, 2023
Variables used in determining grant date fair value:
Dividend yield			1.94%
Risk-free rate			4.33%
Expected term (in years)			6.00

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.

Restricted stock units generally vest ratably over the life of the award, usually three years, on each anniversary date of the original grant. Compensation expense for restricted stock units is recognized between the grant date and the vesting date (or the date on which a participant becomes Retirement-eligible, if sooner) on a straight line basis for each tranche of each award. Fair values of restricted stock units are determined using the closing price of our common stock on the respective grant date.

Employee stock purchase plan instruments are shares of our common stock purchased by employees under the Mueller Water Products Inc. 2006 Employee Stock Purchase Plan (“ESPP”). Generally, all full-time, active employees are eligible to participate in the ESPP, subject to certain restrictions. Employee purchases are funded through payroll deductions, and excess payroll withholdings are returned to the employee. The price for the shares purchased under the ESPP is 85% of the lower of the closing price on the first day or the last day of the offering period.

We issued 168,897 shares of common stock to settle PRSUs vested during the three months ended December 31, 2023.

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Additionally, we issued 146,760 shares of common stock to settle restricted stock units vested during the three months ended December 31, 2023. Finally, we issued 3,582 shares of common stock to settle stock options exercised during the three months ended December 31, 2023. Common shares totaling 109,961 were surrendered to us to pay the applicable tax withholding obligations of equity award participants for the three months ended December 31, 2023.

Operating income included stock-based compensation expense of $2.6 million and $2.7 million during the three months ended December 31, 2023 and 2022, respectively. At December 31, 2023, there was approximately $16.8 million of unrecognized compensation expense related to stock-based compensation arrangements, which will be expensed through December 2026.

We excluded 712,164 and 1,274,371 stock-based compensation instruments from the calculations of diluted earnings per share in the three months ended December 31, 2023 and 2022, respectively, since their inclusion would have been antidilutive.

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Note 7. Supplemental Balance Sheet Information

Selected supplemental asset information is presented below:


	December 31,		September 30,
	2023		2023

	(in millions)
Inventories:
Purchased components and raw materials	$	169.0	$	176.9
Work in process, net	66.5		60.0
Finished goods, net	75.8		61.0
Inventories, net	$	311.3	$	297.9

Other current assets:
Prepaid expenses	$	18.4	$	17.8
Non-trade receivables	2.4		1.7
Maintenance and repair supplies and tooling	4.4		4.1
Income taxes	0.8		0.8
Workers' compensation reimbursement receivable	1.8		2.2
Other current assets	5.7		4.9
Total other current assets	$	33.5	$	31.5

Property, plant and equipment:
Land	$	6.5	$	6.4
Buildings	118.0		117.2
Machinery and equipment	528.2		525.8
Construction in progress	40.5		36.9
Total property, plant and equipment	693.2		686.3
Accumulated depreciation	(384.8)		(374.6)
Property, plant and equipment, net	$	308.4	$	311.7

Other noncurrent assets:
Operating lease right-of-use assets	$	29.9	$	23.6
Maintenance and repair supplies and tooling	21.8		21.1
Workers' compensation reimbursement receivable	2.4		2.4
Pension asset	6.2		6.6
Note receivable	1.8		1.8
Deferred financing fees	0.6		0.7
Other noncurrent assets	0.7		2.6
Total other noncurrent assets	$	63.4	$	58.8

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Selected supplemental liability information is presented below:


	December 31,		September 30,
	2023		2023

	(in millions)
Other current liabilities:
Compensation and benefits	$	25.3	$	33.8
Customer rebates	18.0		14.6
Income taxes payable	15.2		8.5
Warranty accrual	10.0		8.6
Deferred revenue	8.4		9.2
Returned goods accrual	6.3		6.7
Taxes other than income taxes	0.7		2.0
Operating lease liabilities	5.3		4.9
Workers' compensation accrual	4.3		4.0
Strategic reorganization and other charges liabilities	7.8		6.6
Interest payable	0.8		5.3
Other current liabilities	10.0		11.0
Total other current liabilities	$	112.1	$	115.2

Other noncurrent liabilities:
Operating lease liabilities	$	25.8	$	19.8
Warranty accrual	6.7		7.1
Transition tax liability	3.1		3.1
Uncertain tax position liability	3.7		5.0
NMTC liability	3.9		3.9
Workers' compensation accrual	5.6		5.9
Asset retirement obligation	4.2		4.2

Deferred development grant	2.5		2.5
Other noncurrent liabilities	2.6		2.7
Total other noncurrent liabilities	$	58.1	$	54.2

Goodwill

Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis on September 1 of each fiscal year or more frequently 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 three months ended December 31, 2023, in millions:


Balance at September 30, 2023:
Goodwill	$	817.8
Accumulated impairment	(724.1)
Goodwill, net	93.7
Activity during the three months ended December 31, 2023:
Change in foreign currency exchange rates	4.6
Balance at December 31, 2023	$	98.3

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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, and pressure management and control products and solutions. Summarized financial information for our segments is presented below:


	Three months ended
	December 31,
	2023		2022

	(in millions)
Net revenue, excluding intercompany:
Water Flow Solutions	$	141.3	$	165.6
Water Management Solutions	115.1		149.2
	$	256.4	$	314.8
Operating income (loss):
Water Flow Solutions	$	27.2	$	24.2
Water Management Solutions	15.1		19.6
Corporate	(19.5)		(9.8)
	$	22.8	$	34.0
Depreciation and amortization:
Water Flow Solutions	$	9.3	$	7.7
Water Management Solutions	7.0		7.0
Corporate	0.1		0.1
	$	16.4	$	14.8
Strategic reorganization and other charges (benefits):
Water Flow Solutions	$	0.2	$	—
Water Management Solutions	—		—
Corporate	6.4		(3.7)
	$	6.6	$	(3.7)
Capital expenditures:
Water Flow Solutions	$	3.9	$	7.8
Water Management Solutions	1.8		2.1
Corporate	—		—
	$	5.7	$	9.9
Water Flow Solutions disaggregated revenue:
Central	$	38.5	$	44.0
Northeast	28.3		31.3
Southeast	37.1		33.4
West	30.6		49.2
United States	134.5		157.9
Canada	4.8		4.4
Other international locations	2.0		3.3
	$	141.3	$	165.6
Water Management Solutions disaggregated revenue:
Central	$	29.2	$	41.5
Northeast	26.8		31.2
Southeast	28.4		33.3
West	20.0		29.1
United States	104.4		135.1
Canada	5.7		7.3
Other international locations	5.0		6.8
	$	115.1	$	149.2

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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, 2023	$	(28.5)	$	(20.2)	$	(48.7)
Current period other comprehensive income	0.6		13.3		13.9
Balance at December 31, 2023	$	(27.9)	$	(6.9)	$	(34.8)

For the three months ended December 31, 2023, pension actuarial amortization included in the condensed consolidated statements of comprehensive income as a component of pension expense other than service was $0.8 million, net of income tax of $0.2 million. Refer to Note 5. Retirement Plans for further information. For the three months ended December 31, 2023, foreign currency translation included in the condensed consolidated statements of comprehensive income was $13.3 million, net of no 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 December 31, 2023.

Indemnifications. We are a party to contracts in which it is common for us to agree to indemnify third parties for certain liabilities that arise out of or relate to the subject matter of the contract. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by gross negligence or willful misconduct. We cannot estimate the potential amount of future payments under these indemnities until events arise

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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. 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 offer warranties on many of our products, including products related to our metrology business line, which carry an extended warranty in many instances. Our products are often utilized in harsh environmental conditions and are exposed to water and other exogenous factors such as flooding and other environmental conditions that are beyond our control. We periodically monitor and analyze our warranty experience and costs. Accordingly, should specific events or issues occur, additional warranty accruals may also be made relating to those issues or events. Factors considered 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 January 25, 2024, our Board of Directors declared a dividend of $0.064 per share on our common stock, payable on or about February 20, 2024 to stockholders of record at the close of business on February 9, 2024.

As of February 6, 2024, we were in compliance with the required deliverables under the ABL and the waiver period terminated including the $50.0 million temporary limit on credit extensions. See Note 4.

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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 related 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 of Directors 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, including, without limitation, legal, reputational, audit and financial risks resulting from previously reported cybersecurity incidents and possible future cybersecurity incidents, the effectiveness of the Company’s business continuity plans related thereto, and the Company’s ability to recover under its cybersecurity insurance policies; logistical challenges and supply chain disruptions, geopolitical conditions, including the Israel-Hamas war, public health crises, or other events; inventory and in-stock positions of our distributors and end customers; 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 reorganization and related strategic realignment activities; an inability to attract or retain a skilled and diverse workforce, including executive officers, increased competition related to the workforce and labor markets; an inability to protect the Company’s information systems against further 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 charges and claims, and related accommodations; the strength of our brands and reputation; 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 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

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 50% of our fiscal 2023 net sales. Water Management Solutions’ portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, and pressure management and control products and solutions. Water Management Solutions represented 50% of our fiscal 2023 net sales.

Approximately 60% to 65% of our 2023 net sales were associated with the repair and replacement of municipal water infrastructure, approximately 25% to 30% were related to residential construction activity and approximately 5% to 10% of net sales were related to natural gas utilities and industrial applications.

In October 2023, the Israel-Hamas war caused a temporary shutdown of our facility in Ariel, Israel. While we have reopened the facility, the war increases the likelihood of supply interruptions and may hinder our ability to acquire the necessary materials we need to make our products. Supply disruptions from lack of access to materials have impacted, and continue to

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impact, our ability to produce and deliver our products from our facility in Ariel, Israel. Additionally, production has been impacted by labor availability.

As announced on October 28, 2023, we identified a cybersecurity incident impacting certain internal operations and information technology systems. Based on the information reviewed to date, we believe the unauthorized activity has been contained. All of our facilities are operational and have returned to normalized operations.

The cybersecurity incident consisted of unauthorized access and deployment of ransomware by a third party to a portion of our internal information infrastructure. The incident caused temporary disruptions and limitations of access to portions of our business applications supporting aspects of our operations including shipping, receiving and payment functions. Operational delays and investigation and remediation costs in connection with the incident adversely impacted our results for the first quarter of 2024. We have restored the impacted applications and systems. As reported on November 29, 2023, we identified a separate cybersecurity incident, which primarily related to a system that was at the end of its useful life and was already in the process of being replaced in the ordinary course of business.

In the first quarter of fiscal 2024, we incurred approximately $1.5 million of expenses related to the cybersecurity incidents. We continue to analyze and remediate the impacts of the cybersecurity incidents, including making enhancements to our cybersecurity processes and analyzing the data accessed, exfiltrated or otherwise impacted in connection with the cybersecurity incidents.

Although we believe that our channel and customer inventory levels normalized during the first quarter of 2024, the external operating environment remains uncertain. We expect to continue to face challenges emanating from the higher interest rate environment, the Israel-Hamas war, and labor inflation and availability. From a comparable perspective, in fiscal 2023, we benefited from fulfilling an elevated backlog for certain products, which has now become more normalized at lower levels with respect to many of our product lines as we have reduced short-cycle backlog across our portfolio, particularly with regard to iron gate valves and hydrant products. For our fiscal year 2024, we anticipate that consolidated net sales will decrease between 2 and 6 percent as compared with our fiscal year 2023. We anticipate stable demand in the municipal repair and replacement end market despite budgetary pressures on municipalities driven by the aging water infrastructure. Additionally, we anticipate that new residential construction activity will stabilize relative to the challenges in the preceding year where total housing starts decreased 12.9% in fiscal 2023 compared with the prior year according to Census data. In January 2024, Blue Chip Economic Indicators forecasted a 1.5% increase in housing starts for the calendar year 2024 as compared to the calendar year 2023. Finally, we anticipate that high interest rates will continue to impact new lot and land development, depending on the geography.

For the remainder of fiscal 2024, we anticipate that inflation will continue leading to a modest increase in manufacturing costs. We expect external challenges to persist during the balance of our fiscal year 2024. We will continue to monitor the market and economic conditions impacting our business and to take appropriate actions related thereto.

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Results of Operations

Three Months Ended December 31, 2023 Compared to Three Months Ended December 31, 2022


	Three months ended December 31, 2023
	Water Flow Solutions		Water Management Solutions		Corporate		Total

	(in millions)
Net sales	$	141.3	$	115.1	$	—	$	256.4
Gross profit	$	46.6	$	39.7	$	—	$	86.3
Operating expenses:
Selling, general and administrative	19.2		24.6		13.1		56.9
Strategic reorganization and other charges	0.2		—		6.4		6.6
Total operating expenses	19.4		24.6		19.5		63.5
Operating income (loss)	$	27.2	$	15.1	$	(19.5)	22.8
Non-operating expenses:
Pension expense other than service							1.0
Interest expense, net							3.3
Other expense							1.6
Income before income taxes							16.9
Income tax expense							2.6
Net income							$	14.3

	Three months ended December 31, 2022
	Water Flow Solutions		Water Management Solutions		Corporate		Total

	(in millions)
Net sales	$	165.6	$	149.2	$	—	$	314.8
Gross profit	$	46.6	$	46.6	$	—	$	93.2
Operating expenses:
Selling, general and administrative	22.4		27.0		13.5		62.9
Strategic reorganization and other benefits	—		—		(3.7)		(3.7)
Total operating expenses	22.4		27.0		9.8		59.2
Operating income (loss)	$	24.2	$	19.6	$	(9.8)	34.0
Non-operating expenses:

Pension benefit other than service							0.9
Interest expense, net							3.7
Income before income taxes							29.4
Income tax expense							6.9
Net income							$	22.5

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Consolidated Analysis

Net sales in the three months ended December 31, 2023 decreased $58.4 million or 18.6% to $256.4 million as compared with $314.8 million in the prior year period primarily as a result of a decrease in volumes in both Water Flow Solutions and Water Management Solutions, which were partially offset by higher pricing across most product lines.

Gross profit in the three months ended December 31, 2023 decreased $6.9 million or 7.4% to $86.3 million from $93.2 million in the prior year period primarily as a result of lower volumes in both Water Flow Solutions and Water Management Solutions. This decrease was partially offset by higher pricing across most of our product lines, favorable manufacturing performance within both of our segments as well as lower manufacturing and supply chain costs. As a result, Gross margin was 33.7% in the three months ended December 31, 2023 as compared with 29.6% in the prior year period.

Selling, general and administrative expenses (“SG&A”) in the three months ended December 31, 2023 decreased $6.0 million or 9.5% to $56.9 million from $62.9 million in the prior year period primarily due to a decrease in personnel expense and sales commission expense, partially offset by foreign exchange effects and higher costs associated with inflation. SG&A as a percentage of net sales was 22.2% and 20.0% for the three months ended December 31, 2023 and December 31, 2022, respectively.

Strategic reorganization and other charges in the three months ended December 31, 2023 was $6.6 million which primarily consisted of expenses associated with our previously announced leadership transition, approximately $1.5 million of expenses related to the cybersecurity incidents, and certain transaction-related expenses. Strategic reorganization and other charges for the three months ended December 31, 2022 was a benefit of $3.7 million, which primarily consisted of a $4.0 million gain, before tax, on the sale of the Aurora, Illinois facility, which was partially offset by certain transaction-related expenses.

Net interest expense in the three months ended December 31, 2023 declined $0.4 million or 10.8% to $3.3 million as compared with $3.7 million in the prior year period primarily due to higher interest income as a result of higher interest rates, partially offset by lower capitalized interest. The components of net interest expense are provided below:


	Three months ended
	December 31,
	2023		2022

	(in millions)
4.0% Senior Notes	$	4.5	$	4.5
Deferred financing costs amortization	0.3		0.3
ABL Agreement	0.2		0.2
Capitalized interest	(0.1)		(0.7)
Other interest expense	0.2		0.1
Total interest expense	5.1		4.4
Interest income	(1.8)		(0.7)
Interest expense, net	$	3.3	$	3.7

Other expense in the three months ended December 31, 2023 was $1.6 million from the release of an indemnification receivable related to an expired uncertain tax position. There was no Other expense in the three months ended December 31, 2022.

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


	Three months ended
	December 31,
	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	3.0		3.4
Excess tax deficit related to stock-based compensation	0.8		0.7
Tax credits	(2.7)		(1.6)
Global Intangible Low-Taxed Income	1.3		0.8
Foreign income tax rate differential	(1.8)		(1.6)
Nondeductible compensation	1.4		0.5
Uncertain tax positions	(8.8)		—
Valuation allowances	0.4		(0.2)
Other	0.8		0.5
Effective income tax rate	15.4	%	23.5	%

During the three months ended December 31, 2023, we recorded $1.6 million in income tax benefits due to the release of an uncertain tax position that expired on December 31, 2023.

Segment Analysis

Water Flow Solutions

Net sales in the three months ended December 31, 2023 decreased $24.3 million or 14.7% to $141.3 million as compared with $165.6 million in the prior year period primarily as a result of lower volumes for most product lines partially offset by higher pricing across most product lines.

Gross profit in the three months ended December 31, 2023 remained unchanged at $46.6 million as compared with the prior year period. Gross margin was 33.0% in the three months ended December 31, 2023 and 28.1% in the prior year period. This increase was primarily a result of higher pricing across most product lines, favorable manufacturing performance driven by overhead, material and labor efficiencies, as well as lower manufacturing and supply chain costs, which were partially offset by lower volumes across most product lines.

SG&A in the three months ended December 31, 2023 decreased $3.2 million to $19.2 million from $22.4 million in the prior year period primarily as a result of lower personnel expenses and sales commission expense partially offset by higher costs associated with inflation. SG&A as a percentage of net sales was 13.6% and 13.5% in the three months ended December 31, 2023 and 2022, respectively.

Water Management Solutions

Net sales in the three months ended December 31, 2023 decreased $34.1 million or 22.9% to $115.1 million as compared with $149.2 million in the prior year period primarily as a result of lower volumes in certain product lines partially offset by higher pricing across most product lines and an increase in volumes in gas products.

Gross profit in the three months ended December 31, 2023 was $39.7 million as compared with $46.6 million in the prior year period. Gross margin increased to 34.5% in the three months ended December 31, 2023 as compared with 31.2% in the prior year period primarily as a result of higher pricing across most products lines, favorable manufacturing performance driven by labor and overhead efficiencies, as well as lower manufacturing and supply chain costs, which were partially offset by lower volumes across most product lines.

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SG&A in the three months ended December 31, 2023 decreased $2.4 million to $24.6 million from $27.0 million in the prior year period primarily due to lower personnel expenses, engineering fees, and sales commission expenses, which were partially offset by unfavorable foreign currency fluctuation and higher costs associated with inflation. SG&A as a percentage of net sales was 21.4% and 18.1% in the three months ended December 31, 2023 and 2022, respectively.

Corporate

SG&A decreased $0.4 million to $13.1 million in the three months ended December 31, 2023 as compared with $13.5 million in the three months ended December 31, 2022 primarily as a result of lower personnel expenses partially offset by unfavorable foreign currency fluctuations, and higher costs associated with inflation.

Liquidity and Capital Resources

We had cash and cash equivalents on hand of $216.7 million at December 31, 2023 and $162.4 million of additional borrowing capacity under our ABL based on December 31, 2023 data. However, during the waiver period, as described more fully below, credit extensions were temporarily limited to $50.0 million. At December 31, 2023, cash and cash equivalents included $78.5 million, $9.2 million, and $6.8 million in Israel, Canada, and China, respectively.

We declared a quarterly dividend of $0.064 per share on January 25, 2024, payable on or about February 20, 2024 to stockholders of record as of February 9, 2024, which will result in an estimated $10.0 million cash outlay.

We did not repurchase any of our outstanding common stock during the three months ended December 31, 2023 under our publicly announced program and had $90.0 million remaining under 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 $67.9 million during the three months ended December 31, 2023 as compared with net cash used in operating activities of $6.5 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. These included a smaller increase in Inventories, higher Receivables collections, and lower Accounts payable turnover partially as a result of payment delays associated with the cybersecurity incidents.

Capital expenditures were $5.7 million in the three months ended December 31, 2023 as compared with $9.9 million in the prior year period. Capital expenditures decreased primarily as a result of lower expenditures associated with the new Decatur foundry as compared with the prior year period. For fiscal year 2024, we have provided guidance that our capital expenditures are expected to be between $45.0 million and $50.0 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 needs, 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 of $175.0 million in borrowing capacity that expires on July 29, 2025. Included in the ABL is the ability 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.

In December 2023, we obtained a waiver under our ABL (“ABL Waiver”) to provide for additional time associated with certain technical reporting requirements that were delayed as a result of the cybersecurity incident announced on October 28, 2023. Under the ABL Waiver, the maximum aggregate amount of borrowings and other credit extensions under the ABL was limited to $50.0 million at any time outstanding until all of the required reports were delivered. During our first fiscal quarter of 2024, we delivered the required reports and on February 6, 2024, the ABL Waiver was terminated. Accordingly, we are no longer subject to any additional restrictions or borrowing limitations under the ABL, including the $50.0 million temporary limit on credit extensions.

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Borrowings under the ABL bear interest at a floating rate equal to the Secured Overnight Financing Rate (“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 December 31, 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 without 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.

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. 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 $413.0 million at December 31, 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. We believe we were in compliance with these covenants at December 31, 2023. There are no financial maintenance covenants associated with 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 as set forth in the Indenture. Upon a change in control, as defined in the Indenture, we would be required to offer to purchase the 4.0% Senior Notes at a price equal to 101% of the outstanding principal amount.

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

Moody’s

Standard & Poor’s

December 31,

September 30,

December 31,

September 30,

2023

Corporate credit rating

Ba1

ABL Agreement

Not rated

4.0% Senior Notes

Ba1

Outlook

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.

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Material Cash Requirements

We enter into a variety of contractual obligations as part of our normal operations in addition to capital expenditures. As of December 31, 2023, we have (i) debt obligations related to our $450.0 million 4.0% Senior Notes which mature in 2029 and include annual cash interest payments of $18.0 million in 2024 through 2029, (ii) cumulative cash obligations of $37.4 million for operating leases through 2033 and $1.1 million for finance leases through 2028, and (iii) purchase obligations for raw materials and other parts of approximately $107.4 million which we expect to incur during the next 12 months and $2.0 million beyond December 31, 2024. Additionally, we may continue to strengthen our systems, cybersecurity training, policies, programs, response plans and other similar measures as a result of the cybersecurity incidents. 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 December 31, 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 December 31, 2023, we had $12.4 million of letters of credit and $13.7 million of surety bonds outstanding.

Seasonality

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 2023 Annual Report on Form 10-K. There have been no changes in the Company’s determination of critical accounting estimates since September 30, 2023.

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 December 31, 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.

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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.

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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 2023 Annual Report on Form 10-K, 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

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 December 31, 2023 pursuant to this authorization, and we had $90.0 million remaining under our share repurchase authorization.

During the three months ended December 31, 2023, 109,961 shares were surrendered to us to pay the tax withholding obligations of participants in connection with the vesting of equity awards.


Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publicly announced plans or programs	Maximum dollar value of shares that may yet be purchased under the plans or programs (in millions)
October 1-31, 2023	129	$	12.58	—	$	90.0
November 1-30, 2023	95,288	13.24		—	90.0
December 1-31, 2023	14,544	13.69		—	$	90.0
Total	109,961	$	13.30	—

Item 5. OTHER INFORMATION

(a) In December 2023, we obtained a waiver under our ABL (“ABL Waiver”) to provide for additional time associated with certain technical reporting requirements that were delayed as a result of the cybersecurity incident announced on October 28, 2023. Under the ABL Waiver, the maximum aggregate amount of borrowings and other credit extensions under the ABL was limited to $50.0 million at any time outstanding until all of the required reports were delivered. During our first fiscal quarter of 2024, we delivered the required reports and on February 6, 2024, the ABL Waiver was terminated. Accordingly, we are no longer subject to any additional restrictions or borrowing limitations under the ABL including the $50.0 million temporary limit on credit extensions.

(c) No officers or directors, as defined in Rule 16a-1(f), adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as defined in Regulation S-K Item 408, during the first quarter of fiscal 2024.

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Item 6. EXHIBITS


Exhibit No.						Document
10.1						Limited Waiver Agreement to Credit Agreement, Dated December 11, 2023, Incorporated by reference to Exhibit 10.19.7 to Mueller Water Products, inc. Form 10-K (File no. 001-32892) filed on December 14, 2023.
10.2*						Notice of Early Termination of Waiver Period, dated February 6, 2024.
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 December 31, 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 or furnished 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:	February 9, 2024	By:	/s/ Suzanne G. Smith
			Suzanne G. Smith
			Chief Accounting Officer

Exhibit 31.1

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: February 9, 2024


/s/ Marietta Edmunds Zakas
Marietta Edmunds Zakas
Chief Executive Officer

Exhibit 31.2

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

I, Steven S. Heinrichs, certify that:

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

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: February 9, 2024


/s/ Steven S. Heinrichs
Steven S. Heinrichs
Chief Financial Officer

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 December 31, 2023 (the “Report”), I, Marietta Edmunds Zakas, 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: February 9, 2024


/s/ Marietta Edmunds Zakas
Marietta Edmunds Zakas
Chief Executive Officer

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 December 31, 2023 (the “Report”), I, Steven S. Heinrichs, 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: February 9, 2024


/s/ Steven S. Heinrichs
Steven S. Heinrichs
Chief Financial Officer

Document and Entity Information - shares	3 Months Ended
Document and Entity Information - shares	Dec. 31, 2023	Feb. 05, 2024
Document And Entity Information [Abstract]
Document Fiscal Period Focus	Q1
Document Period End Date	Dec. 31, 2023
Document Fiscal Year Focus	2024
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		156,177,315
Entity Small Business	false
Title of 12(b) Security	Common stock, par value $0.01
Trading Symbol	MWA
Security Exchange Name	NYSE

Cover Page Document - shares	3 Months Ended
Cover Page Document - shares	Dec. 31, 2023	Feb. 05, 2024
Cover Page [Abstract]
Entity Incorporation, State or Country Code	DE
Document Type	10-Q
Document Type	true
Document Period End Date	Dec. 31, 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		156,177,315
Trading Symbol	MWA
Security Exchange Name	NYSE

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2023	Sep. 30, 2023
Assets:
Cash and cash equivalents	$ 216.7	$ 160.3
Receivables, net	167.9	217.1
Inventories	311.3	297.9
Other current assets	33.5	31.5
Total current assets	729.4	706.8
Property, plant and equipment, net	308.4	311.7
Goodwill	98.3	93.7
Identifiable intangible assets	329.3	334.0
Other noncurrent assets	63.4	58.8
Total assets	1,528.8	1,505.0
Liabilities and stockholders' equity:
Current portion of long-term debt	0.6	0.7
Accounts payable	108.9	102.9
Accrued liabilities	112.1	115.2
Total current liabilities	221.6	218.8
Long-term debt	446.8	446.7
Deferred income taxes	71.1	73.8
Other noncurrent liabilities	58.1	54.2
Total liabilities	797.6	793.5
Commitments and contingencies (Note 10.)
Preferred Stock, Value, Issued	0.0	0.0
Common stock	1.6	1.6
Additional paid-in capital	1,231.9	1,240.4
Accumulated deficit	(467.5)	(481.8)
Accumulated other comprehensive income (loss)	(34.8)	(48.7)
Total equity	731.2	711.5
Total liabilities and stockholders' equity	$ 1,528.8	$ 1,505.0

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Dec. 31, 2023	Sep. 30, 2023
Statement of Financial Position [Abstract]
Accounts Receivable, Allowance for Credit Loss, Current	$ 7.5	$ 7.3
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	156,112,060	155,871,932

Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Income Statement [Abstract]
Net sales	$ 256.4	$ 314.8
Cost of sales	170.1	221.6
Gross profit	86.3	93.2
Operating expenses:
Selling, general and administrative	56.9	62.9
Restructuring and other charges	6.6	(3.7)
Total operating expenses	63.5	59.2
Operating income	22.8	34.0
Non-operating expense:
Pension costs (benefits) other then service	1.0	0.9
Interest expense, net	3.3	3.7
Other expense	1.6	0.0
Net other expense	5.9	4.6
Income before income taxes	16.9	29.4
Income tax expense (benefit)	2.6	6.9
Net income (loss)	$ 14.3	$ 22.5
Net income (loss) per basic share:
Earnings Per Share, Basic	$ 0.09	$ 0.14
Net income (loss) per diluted share:
Earnings Per Share, Diluted	$ 0.09	$ 0.14
Weighted average shares outstanding:
Basic, in shares	156,000	156,400
Diluted, in shares	156,700	157,000
Dividends declared per share, in dollars per share	$ 0.064	$ 0.061

Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ 14.3	$ 22.5
Other comprehensive income (loss):
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax	0.6	0.6
Foreign currency translation	13.3	4.0
Other comprehensive income (loss), net of tax	13.9	4.6
Comprehensive income (loss), net of tax	$ 28.2	$ 27.1

Consolidated Statement Of Stockholders' Equity - USD ($) $ in Millions	Total	Common stock	Additional Paid-in Capital	Accumulated deficit	Accumulated other comprehensive income (loss)
Balance at Sep. 30, 2022	$ 669.3	$ 1.6	$ 1,279.6	$ (567.3)	$ (44.6)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	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 Dec. 31, 2022	687.8	1.6	1,271.0	(544.8)	(40.0)
Balance at Sep. 30, 2023	711.5	1.6	1,240.4	(481.8)	(48.7)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income (loss)	14.3
Dividends declared	(10.0)		(10.0)
Stock-based compensation	2.6		2.6
Shares retained for employee taxes	(1.5)		(1.5)
Common stock issued	0.4		0.4
Other comprehensive income, net of tax	13.9				13.9
Balance at Dec. 31, 2023	$ 731.2	$ 1.6	$ 1,231.9	$ (467.5)	$ (34.8)

Consolidated Statements Of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Net cash provided by (used in) operating activities
Net income (loss)	$ 14.3	$ 22.5
Adjustments to reconcile net income (loss) to income (loss) from continuing operations:
Depreciation	9.5	7.8
Amortization	6.9	7.0
Gain (Loss) on Extinguishment of Debt	(0.1)	(4.0)
Stock-based compensation expense	2.6	1.8
Retirement plans	1.2	1.1
Deferred income taxes	(3.4)	(0.9)
Inventory write-down	2.1	1.2
Other noncash income (expense)	(0.3)	(0.5)
Changes in assets and liabilities, net of acquisitions:
Receivables	49.7	26.4
Inventories	(14.6)	(36.1)
Other current assets and other noncurrent assets	(6.1)	(3.6)
Accounts payable	5.7	(19.6)
Other current liabilities	(3.6)	(8.4)
Long-term liabilities	3.4	(2.2)
Net cash provided by (used in) operating activities, total	67.9	(6.5)
Investing activities:
Capital expenditures	(5.7)	(9.9)
Proceeds from sales of assets	0.1	5.1
Net cash provided by (used in) investing activities, total	(5.6)	(4.8)
Financing activities:
Dividends paid	(10.0)	(9.5)
Shares retained for employee taxes	(1.5)	(1.5)
Common stock issued	0.4	0.6
Other	(0.2)	(0.1)
Net cash provided by (used in) financing activities, total	(11.3)	(10.5)
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents	5.4	0.9
Cash and cash equivalents	216.7	125.6
Interest Paid, Excluding Capitalized Interest, Operating Activities	7.6	8.6
Income Taxes Paid	0.8	0.2
Net change in cash and cash equivalents	$ 56.4	$ (20.9)

Organization

3 Months Ended

Dec. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

Organization and Basis of Presentation

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.

Accounting Pronouncements Not Yet Adopted

Strategic Reorganization and Other Charges


	Three months ended
	December 31,
	2023		2022
	(in millions)
Beginning balance	$	6.6	$	3.3
Amounts accrued	6.6		(3.7)
Amounts (paid) received, net	(5.4)		1.1
Ending balance	$	7.8	$	0.7

Revenue from Contracts with Customers (Notes)

3 Months Ended

Dec. 31, 2023

Revenue from Contracts with Customers [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue from Contracts with Customers

Disaggregation of Revenue

Contract Asset and Liability Balances

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


	December 31,		September 30,
	2023		2023

	(in millions)
Billed receivables	$	167.5	$	218.1
Unbilled receivables	7.9		6.3
Gross customer receivables	175.4		224.4
Allowance for credit losses	(7.5)		(7.3)
Receivables, net	$	167.9	$	217.1

Deferred revenue	$	8.4	$	9.2

Performance Obligations

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

Costs to Obtain or Fulfill a Contract

Income Taxes

3 Months Ended

Dec. 31, 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
	December 31,
	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	3.0		3.4
Excess tax deficit related to stock-based compensation	0.8		0.7
Tax credits	(2.7)		(1.6)
Global Intangible Low-Taxed Income	1.3		0.8
Foreign income tax rate differential	(1.8)		(1.6)
Nondeductible compensation	1.4		0.5
Uncertain tax positions	(8.8)		—
Valuation allowances	0.4		(0.2)
Other	0.8		0.5

Effective income tax rate	15.4	%	23.5	%

During the three months ended December 31, 2023, we recorded $1.6 million in income tax benefits due to the release of an uncertain tax position that expired on December 31, 2023.

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
	December 31,
	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	3.0		3.4
Excess tax deficit related to stock-based compensation	0.8		0.7
Tax credits	(2.7)		(1.6)
Global Intangible Low-Taxed Income	1.3		0.8
Foreign income tax rate differential	(1.8)		(1.6)
Nondeductible compensation	1.4		0.5
Uncertain tax positions	(8.8)		—
Valuation allowances	0.4		(0.2)
Other	0.8		0.5

Effective income tax rate	15.4	%	23.5	%

Borrowing Arrangements

3 Months Ended

Dec. 31, 2023

Long-Term Debt and Lease Obligation [Abstract]

Borrowing Arrangements

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


	December 31,		September 30,
	2023		2023

	(in millions)
4.0% Senior Notes	$	450.0	$	450.0
Finance leases	1.1		1.3
Total debt	451.1		451.3
Less: deferred financing costs	3.7		3.9
Less: current portion of long-term debt	0.6		0.7
Long-term debt	$	446.8	$	446.7

Retirement Plans

3 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Retirement Plans

Retirement Plan

The components of net periodic cost for our Pension Plan are presented below:


	Three months ended
	December 31,
	2023		2022
	(in millions)
Service cost	$	0.2	$	0.2
Pension expense other than service:
Interest cost	3.5		3.5
Expected return on plan assets	(3.3)		(3.5)
Amortization of actuarial net loss	0.8		0.9
Pension expense other than service	1.0		0.9
Net periodic cost	$	1.2	$	1.1

Stock-based Compensation Plans

3 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Share-based Payment Arrangement [Text Block]

Stock-based Compensation Plans


	Number granted	Weighted average grant date fair value per instrument		Total grant date fair value (in millions)
Quarter ended December 31, 2023
MRSUs	136,983	$	18.11	$	2.5
PRSUs	136,983	13.22		1.8
Restricted stock units	161,943	13.27		2.1
Phantom Plan instruments	230,523	13.22		3.0
Non-qualified stock options	457,356	3.96		1.8
Employee stock purchase plan instruments	31,139	$	3.48	0.1
Total - Quarter ended December 31, 2023				$	11.3


						November 28, 2023
Variables used in determining grant date fair value:
Dividend yield						2.00%
Risk-free rate						4.50%
Expected term (in years)						2.84


			November 28, 2023
Variables used in determining grant date fair value:
Dividend yield			1.94%
Risk-free rate			4.33%
Expected term (in years)			6.00

We issued 168,897 shares of common stock to settle PRSUs vested during the three months ended December 31, 2023.

Supplemental Balance Sheet Information

3 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Selected supplemental asset information is presented below:


	December 31,		September 30,
	2023		2023

	(in millions)
Inventories:
Purchased components and raw materials	$	169.0	$	176.9
Work in process, net	66.5		60.0
Finished goods, net	75.8		61.0
Inventories, net	$	311.3	$	297.9

Other current assets:
Prepaid expenses	$	18.4	$	17.8
Non-trade receivables	2.4		1.7
Maintenance and repair supplies and tooling	4.4		4.1
Income taxes	0.8		0.8
Workers' compensation reimbursement receivable	1.8		2.2
Other current assets	5.7		4.9
Total other current assets	$	33.5	$	31.5

Property, plant and equipment:
Land	$	6.5	$	6.4
Buildings	118.0		117.2
Machinery and equipment	528.2		525.8
Construction in progress	40.5		36.9
Total property, plant and equipment	693.2		686.3
Accumulated depreciation	(384.8)		(374.6)
Property, plant and equipment, net	$	308.4	$	311.7

Other noncurrent assets:
Operating lease right-of-use assets	$	29.9	$	23.6
Maintenance and repair supplies and tooling	21.8		21.1
Workers' compensation reimbursement receivable	2.4		2.4
Pension asset	6.2		6.6
Note receivable	1.8		1.8
Deferred financing fees	0.6		0.7
Other noncurrent assets	0.7		2.6
Total other noncurrent assets	$	63.4	$	58.8

Selected supplemental liability information is presented below:


	December 31,		September 30,
	2023		2023

	(in millions)
Other current liabilities:
Compensation and benefits	$	25.3	$	33.8
Customer rebates	18.0		14.6
Income taxes payable	15.2		8.5
Warranty accrual	10.0		8.6
Deferred revenue	8.4		9.2
Returned goods accrual	6.3		6.7
Taxes other than income taxes	0.7		2.0
Operating lease liabilities	5.3		4.9
Workers' compensation accrual	4.3		4.0
Strategic reorganization and other charges liabilities	7.8		6.6
Interest payable	0.8		5.3
Other current liabilities	10.0		11.0
Total other current liabilities	$	112.1	$	115.2

Other noncurrent liabilities:
Operating lease liabilities	$	25.8	$	19.8
Warranty accrual	6.7		7.1
Transition tax liability	3.1		3.1
Uncertain tax position liability	3.7		5.0
NMTC liability	3.9		3.9
Workers' compensation accrual	5.6		5.9
Asset retirement obligation	4.2		4.2

Deferred development grant	2.5		2.5
Other noncurrent liabilities	2.6		2.7
Total other noncurrent liabilities	$	58.1	$	54.2

Goodwill

The following table summarizes information concerning our goodwill, all of which is within our Water Management Solutions segment, during the three months ended December 31, 2023, in millions:


Balance at September 30, 2023:
Goodwill	$	817.8
Accumulated impairment	(724.1)
Goodwill, net	93.7
Activity during the three months ended December 31, 2023:
Change in foreign currency exchange rates	4.6
Balance at December 31, 2023	$	98.3

Segment Information

3 Months Ended

Dec. 31, 2023

Segment Reporting, Measurement Disclosures [Abstract]

Segment Reporting Disclosure [Text Block]

Segment Information


	Three months ended
	December 31,
	2023		2022

	(in millions)
Net revenue, excluding intercompany:
Water Flow Solutions	$	141.3	$	165.6
Water Management Solutions	115.1		149.2
	$	256.4	$	314.8
Operating income (loss):
Water Flow Solutions	$	27.2	$	24.2
Water Management Solutions	15.1		19.6
Corporate	(19.5)		(9.8)
	$	22.8	$	34.0
Depreciation and amortization:
Water Flow Solutions	$	9.3	$	7.7
Water Management Solutions	7.0		7.0
Corporate	0.1		0.1
	$	16.4	$	14.8
Strategic reorganization and other charges (benefits):
Water Flow Solutions	$	0.2	$	—
Water Management Solutions	—		—
Corporate	6.4		(3.7)
	$	6.6	$	(3.7)
Capital expenditures:
Water Flow Solutions	$	3.9	$	7.8
Water Management Solutions	1.8		2.1
Corporate	—		—
	$	5.7	$	9.9
Water Flow Solutions disaggregated revenue:
Central	$	38.5	$	44.0
Northeast	28.3		31.3
Southeast	37.1		33.4
West	30.6		49.2
United States	134.5		157.9
Canada	4.8		4.4
Other international locations	2.0		3.3
	$	141.3	$	165.6
Water Management Solutions disaggregated revenue:
Central	$	29.2	$	41.5
Northeast	26.8		31.2
Southeast	28.4		33.3
West	20.0		29.1
United States	104.4		135.1
Canada	5.7		7.3
Other international locations	5.0		6.8
	$	115.1	$	149.2

Accumulated Other Comprehensive Loss

3 Months Ended

Dec. 31, 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, 2023	$	(28.5)	$	(20.2)	$	(48.7)
Current period other comprehensive income	0.6		13.3		13.9
Balance at December 31, 2023	$	(27.9)	$	(6.9)	$	(34.8)

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, 2023	$	(28.5)	$	(20.2)	$	(48.7)
Current period other comprehensive income	0.6		13.3		13.9
Balance at December 31, 2023	$	(27.9)	$	(6.9)	$	(34.8)

Commitments and Contingencies	3 Months Ended
Commitments and Contingencies	Dec. 31, 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 December 31, 2023. Indemnifications. We are a party to contracts in which it is common for us to agree to indemnify third parties for certain liabilities that arise out of or relate to the subject matter of the contract. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by gross negligence or willful misconduct. We cannot estimate the potential amount of future payments under these indemnities until events arise that would trigger a liability under the indemnities. Additionally, in connection with the sale of assets and the divestiture of businesses, such as the divestitures of U.S. Pipe and Anvil, we may agree to indemnify buyers and related parties for certain losses or liabilities incurred by these parties with respect to: (i) the representations and warranties made by us to these parties in connection with the sale and (ii) liabilities related to the pre-closing operations of the assets or business sold. Indemnities related to pre-closing operations generally include certain environmental and tax liabilities and other liabilities not assumed by these parties in the transaction. Indemnities related to the pre-closing operations of sold assets or businesses normally do not represent additional liabilities to us, but simply serve to protect these parties from potential liability associated with our obligations existing at the time of the sale. 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 offer warranties on many of our products, including products related to our metrology business line, which carry an extended warranty in many instances. Our products are often utilized in harsh environmental conditions and are exposed to water and other exogenous factors such as flooding and other environmental conditions that are beyond our control. We periodically monitor and analyze our warranty experience and costs. Accordingly, should specific events or issues occur, additional warranty accruals may also be made relating to those issues or events. Factors considered 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.

Subsequent Events	3 Months Ended
Subsequent Events	Dec. 31, 2023
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events On January 25, 2024, our Board of Directors declared a dividend of $0.064 per share on our common stock, payable on or about February 20, 2024 to stockholders of record at the close of business on February 9, 2024. As of February 6, 2024, we were in compliance with the required deliverables under the ABL and the waiver period terminated including the $50.0 million temporary limit on credit extensions. See Note 4.

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended
Pay vs Performance Disclosure - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022
Pay vs Performance Disclosure
Net income (loss)	$ 14.3	$ 22.5

Insider Trading Arrangements	3 Months Ended
Insider Trading Arrangements	Dec. 31, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

Organization Restructuring Rollforward (Tables)

3 Months Ended

Dec. 31, 2023

Restructuring Cost and Reserve [Line Items]

Restructuring and Related Costs [Table Text Block]

Activity in accrued strategic reorganization and other charges, reported as part of Other current liabilities, is presented below:


	Three months ended
	December 31,
	2023		2022
	(in millions)
Beginning balance	$	6.6	$	3.3
Amounts accrued	6.6		(3.7)
Amounts (paid) received, net	(5.4)		1.1
Ending balance	$	7.8	$	0.7

Revenue from Contracts with Customers (Tables)

3 Months Ended

Dec. 31, 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:


	December 31,		September 30,
	2023		2023

	(in millions)
Billed receivables	$	167.5	$	218.1
Unbilled receivables	7.9		6.3
Gross customer receivables	175.4		224.4
Allowance for credit losses	(7.5)		(7.3)
Receivables, net	$	167.9	$	217.1

Deferred revenue	$	8.4	$	9.2

Income Taxes Rate Reconciliation (Tables)

3 Months Ended

Dec. 31, 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
	December 31,
	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	3.0		3.4
Excess tax deficit related to stock-based compensation	0.8		0.7
Tax credits	(2.7)		(1.6)
Global Intangible Low-Taxed Income	1.3		0.8
Foreign income tax rate differential	(1.8)		(1.6)
Nondeductible compensation	1.4		0.5
Uncertain tax positions	(8.8)		—
Valuation allowances	0.4		(0.2)
Other	0.8		0.5

Effective income tax rate	15.4	%	23.5	%

Borrowing Arrangements (Tables)

3 Months Ended

Dec. 31, 2023

Long-Term Debt and Lease Obligation [Abstract]

Components of Long-Term Debt

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


	December 31,		September 30,
	2023		2023

	(in millions)
4.0% Senior Notes	$	450.0	$	450.0
Finance leases	1.1		1.3
Total debt	451.1		451.3
Less: deferred financing costs	3.7		3.9
Less: current portion of long-term debt	0.6		0.7
Long-term debt	$	446.8	$	446.7

Retirement Plans (Tables)

3 Months Ended

Dec. 31, 2023

Retirement Benefits [Abstract]

Schedule of Net Periodic Benefit Cost

The components of net periodic cost for our Pension Plan are presented below:


	Three months ended
	December 31,
	2023		2022
	(in millions)
Service cost	$	0.2	$	0.2
Pension expense other than service:
Interest cost	3.5		3.5
Expected return on plan assets	(3.3)		(3.5)
Amortization of actuarial net loss	0.8		0.9
Pension expense other than service	1.0		0.9
Net periodic cost	$	1.2	$	1.1

Stock-based Compensation Plans (Tables)

3 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

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

Grants issued during the three months ended December 31, 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, 2023
MRSUs	136,983	$	18.11	$	2.5
PRSUs	136,983	13.22		1.8
Restricted stock units	161,943	13.27		2.1
Phantom Plan instruments	230,523	13.22		3.0
Non-qualified stock options	457,356	3.96		1.8
Employee stock purchase plan instruments	31,139	$	3.48	0.1
Total - Quarter ended December 31, 2023				$	11.3

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 28, 2023
Variables used in determining grant date fair value:
Dividend yield						2.00%
Risk-free rate						4.50%
Expected term (in years)						2.84

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


			November 28, 2023
Variables used in determining grant date fair value:
Dividend yield			1.94%
Risk-free rate			4.33%
Expected term (in years)			6.00

Supplemental Balance Sheet Information (Tables)

3 Months Ended

Dec. 31, 2023

Balance Sheet Related Disclosures [Abstract]

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

Selected supplemental asset information is presented below:


	December 31,		September 30,
	2023		2023

	(in millions)
Inventories:
Purchased components and raw materials	$	169.0	$	176.9
Work in process, net	66.5		60.0
Finished goods, net	75.8		61.0
Inventories, net	$	311.3	$	297.9

Other current assets:
Prepaid expenses	$	18.4	$	17.8
Non-trade receivables	2.4		1.7
Maintenance and repair supplies and tooling	4.4		4.1
Income taxes	0.8		0.8
Workers' compensation reimbursement receivable	1.8		2.2
Other current assets	5.7		4.9
Total other current assets	$	33.5	$	31.5

Property, plant and equipment:
Land	$	6.5	$	6.4
Buildings	118.0		117.2
Machinery and equipment	528.2		525.8
Construction in progress	40.5		36.9
Total property, plant and equipment	693.2		686.3
Accumulated depreciation	(384.8)		(374.6)
Property, plant and equipment, net	$	308.4	$	311.7

Other noncurrent assets:
Operating lease right-of-use assets	$	29.9	$	23.6
Maintenance and repair supplies and tooling	21.8		21.1
Workers' compensation reimbursement receivable	2.4		2.4
Pension asset	6.2		6.6
Note receivable	1.8		1.8
Deferred financing fees	0.6		0.7
Other noncurrent assets	0.7		2.6
Total other noncurrent assets	$	63.4	$	58.8

Schedule of Accrued Liabilities

Selected supplemental liability information is presented below:


	December 31,		September 30,
	2023		2023

	(in millions)
Other current liabilities:
Compensation and benefits	$	25.3	$	33.8
Customer rebates	18.0		14.6
Income taxes payable	15.2		8.5
Warranty accrual	10.0		8.6
Deferred revenue	8.4		9.2
Returned goods accrual	6.3		6.7
Taxes other than income taxes	0.7		2.0
Operating lease liabilities	5.3		4.9
Workers' compensation accrual	4.3		4.0
Strategic reorganization and other charges liabilities	7.8		6.6
Interest payable	0.8		5.3
Other current liabilities	10.0		11.0
Total other current liabilities	$	112.1	$	115.2

Other noncurrent liabilities:
Operating lease liabilities	$	25.8	$	19.8
Warranty accrual	6.7		7.1
Transition tax liability	3.1		3.1
Uncertain tax position liability	3.7		5.0
NMTC liability	3.9		3.9
Workers' compensation accrual	5.6		5.9
Asset retirement obligation	4.2		4.2

Deferred development grant	2.5		2.5
Other noncurrent liabilities	2.6		2.7
Total other noncurrent liabilities	$	58.1	$	54.2

Schedule of Goodwill

The following table summarizes information concerning our goodwill, all of which is within our Water Management Solutions segment, during the three months ended December 31, 2023, in millions:


Balance at September 30, 2023:
Goodwill	$	817.8
Accumulated impairment	(724.1)
Goodwill, net	93.7
Activity during the three months ended December 31, 2023:
Change in foreign currency exchange rates	4.6
Balance at December 31, 2023	$	98.3

Segment Information (Tables)

3 Months Ended

Dec. 31, 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
	December 31,
	2023		2022

	(in millions)
Net revenue, excluding intercompany:
Water Flow Solutions	$	141.3	$	165.6
Water Management Solutions	115.1		149.2
	$	256.4	$	314.8
Operating income (loss):
Water Flow Solutions	$	27.2	$	24.2
Water Management Solutions	15.1		19.6
Corporate	(19.5)		(9.8)
	$	22.8	$	34.0
Depreciation and amortization:
Water Flow Solutions	$	9.3	$	7.7
Water Management Solutions	7.0		7.0
Corporate	0.1		0.1
	$	16.4	$	14.8
Strategic reorganization and other charges (benefits):
Water Flow Solutions	$	0.2	$	—
Water Management Solutions	—		—
Corporate	6.4		(3.7)
	$	6.6	$	(3.7)
Capital expenditures:
Water Flow Solutions	$	3.9	$	7.8
Water Management Solutions	1.8		2.1
Corporate	—		—
	$	5.7	$	9.9
Water Flow Solutions disaggregated revenue:
Central	$	38.5	$	44.0
Northeast	28.3		31.3
Southeast	37.1		33.4
West	30.6		49.2
United States	134.5		157.9
Canada	4.8		4.4
Other international locations	2.0		3.3
	$	141.3	$	165.6
Water Management Solutions disaggregated revenue:
Central	$	29.2	$	41.5
Northeast	26.8		31.2
Southeast	28.4		33.3
West	20.0		29.1
United States	104.4		135.1
Canada	5.7		7.3
Other international locations	5.0		6.8
	$	115.1	$	149.2

Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Dec. 31, 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, 2023	$	(28.5)	$	(20.2)	$	(48.7)
Current period other comprehensive income	0.6		13.3		13.9
Balance at December 31, 2023	$	(27.9)	$	(6.9)	$	(34.8)

Organization (Narrative) (Details) $ in Millions	3 Months Ended
Organization (Narrative) (Details) $ in Millions	Dec. 31, 2023 USD ($) business_segments	Dec. 31, 2022 USD ($)	Sep. 30, 2023 USD ($)	Sep. 30, 2022 USD ($)
Segment Reporting Information [Line Items]
Restructuring	$ 7.8	$ 0.7	$ 6.6	$ 3.3
Restructuring Reserve, Accrual Adjustment	6.6	(3.7)
Gain (Loss) on Sale of Properties		4.0
Restructuring and other charges	6.6	(3.7)
Pension costs (benefits) other then service	$ 1.0	$ 0.9
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Number of Reportable Segments \| business_segments	2
Other Sundry Liabilities, Noncurrent	$ 3.9
Proceeds from Other Equity, Gross Amount	4.8
Intercompany Loan related to NMTC	12.2
Investment Fund Contribution for NMTC	16.5
Sub-CDE loan from NMTC	16.2
Cybersecurity Related
Segment Reporting Information [Line Items]
Restructuring Reserve, Accrual Adjustment	1.5
Mueller Co. [Member]
Segment Reporting Information [Line Items]
Restructuring and other charges	$ 0.2	$ 0.0

Organization Restructuring (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Restructuring Reserve [Roll Forward]
Beginning balance	$ 6.6	$ 3.3
Amounts accrued	6.6	(3.7)
Amounts (paid) received, net	5.4	(1.1)
Ending balance	$ 7.8	$ 0.7

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

3 Months Ended

Dec. 31, 2023

Sep. 30, 2023

Revenue from External Customer [Line Items]

Revenue from Contract with Customer [Text Block]

Revenue from Contracts with Customers

Disaggregation of Revenue

Contract Asset and Liability Balances

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


	December 31,		September 30,
	2023		2023

	(in millions)
Billed receivables	$	167.5	$	218.1
Unbilled receivables	7.9		6.3
Gross customer receivables	175.4		224.4
Allowance for credit losses	(7.5)		(7.3)
Receivables, net	$	167.9	$	217.1

Deferred revenue	$	8.4	$	9.2

Performance Obligations

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

Costs to Obtain or Fulfill a Contract

Billed Contracts Receivable

$ 167.5

$ 218.1

Deferred Revenue

8.4

9.2

Unbilled receivables

7.9

6.3

Total customer receivables

175.4

224.4

Accounts Receivable, Allowance for Credit Loss, Current

7.5

7.3

Receivables, Net, Current

$ 167.9

$ 217.1

Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
Income Taxes (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits	$ 3.7		$ 5.0
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
State income taxes, net of federal benefit	3.00%	3.40%
Tax credits	(2.70%)	(1.60%)
Other	0.80%	0.50%
Other Expense
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits, Income Tax Indemnification Asset, Expense	$ 1.6
Income Tax Information [Line Items]
Unrecognized Tax Benefits, Income Tax Indemnification Asset, Expense	$ 1.6

Income Taxes Income Tax Rate Reconciliation (Details)	3 Months Ended
Income Taxes Income Tax Rate Reconciliation (Details)	Dec. 31, 2023	Dec. 31, 2022
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	21.00%	21.00%
Adjustments to reconcile to the effective tax rate:
State income taxes, net of federal benefit	3.00%	3.40%
Tax benefits from stock compensation	0.80%	0.70%
Tax credits	(2.70%)	(1.60%)
Effective Income Tax Rate Reconciliation, GILTI, percent	1.30%	0.80%
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent	(1.80%)	(1.60%)
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-Based Payment Arrangement, Percent	1.40%	0.50%
Effective Income Tax Rate Reconciliation, Uncertain Tax Positions	(8.80%)	0.00%
Valuation allowance adjustment related to stock compensation	0.40%	(0.20%)
Other	0.80%	0.50%
Effective income tax rate	15.40%	23.50%

Borrowing Arrangements (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Jun. 30, 2021	Feb. 06, 2024	Sep. 30, 2023	May 28, 2021
Long-term Debt, Gross	$ 451.1			$ 451.3
Outstanding letter of credit accrued fees and expenses	0.2
Future maturities of outstanding borrowings
Outstanding letters of credit	12.4
Domestic Line of Credit [Member]
Revolving credit facility amount	(175.0)
Future maturities of outstanding borrowings
Line of Credit Facility, Maximum Borrowing Capacity	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%
Line of Credit Facility, Borrowing Base, Percentage of Eligible Inventory	70.00%
Line of Credit Facility, Borrowing Base, Percentage of Net Orderly Liquidation Value of Eligible Inventory	85.00%
Line of Credit Facility, Covenant, Percent of Loan Cap	10.00%
Unsecured Debt [Member]
Long-term Debt, Gross					$ 450.0
Debt Instrument, Interest Rate, Stated Percentage	4.00%
Future maturities of outstanding borrowings
Payments of debt issuance costs		$ 5.5
Financial Liabilities Fair Value Disclosure	$ 413.0
Debt Instrument, Redemption Price, Percentage	40.00%
Debt Instrument, Redemption Price Upon Change In Control, Percentage	101.00%
Swing Line Loans [Member]
Revolving credit facility amount	$ (25.0)
Future maturities of outstanding borrowings
Line of Credit Facility, Maximum Borrowing Capacity	25.0
Letters Of Credit Outstanding [Member]
Revolving credit facility amount	(60.0)
Future maturities of outstanding borrowings
Line of Credit Facility, Maximum Borrowing Capacity	60.0
Revolving Credit Facility
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses	162.4
Future maturities of outstanding borrowings
Aggregate commitments availability	17.5
Line of Credit Facility, Remaining Borrowing Capacity	162.4
Revolving Credit Facility, ABL Waiver, Through February 2024
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses	50.0
Future maturities of outstanding borrowings
Line of Credit Facility, Remaining Borrowing Capacity	$ 50.0
Revolving Credit Facility, ABL Waiver, Through February 2024 \| Subsequent Event [Member]
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses			$ 50.0
Future maturities of outstanding borrowings
Line of Credit Facility, Remaining Borrowing Capacity			$ 50.0
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%
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%
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%

Borrowing Arrangements (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions	Dec. 31, 2023	Sep. 30, 2023	May 28, 2021
Long-term Debt, Gross	$ 451.1	$ 451.3
Deferred financing costs	3.7	3.9
Current portion of long-term debt	0.6	0.7
Long-term debt	446.8	446.7
Unsecured Debt [Member]
4.0% Senior Notes	450.0	450.0
Long-term Debt, Gross			$ 450.0
Other [Member]
Finance Lease, Liability	$ 1.1	$ 1.3

Retirement Plans (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Retirement Benefits [Abstract]
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax	$ 0.2	$ 0.3

Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Defined Benefit Plan, Service Cost	$ 0.2	$ 0.2
Defined Benefit Plan, Interest Cost	3.5	3.5
Defined Benefit Plan, Expected Return (Loss) on Plan Assets	(3.3)	(3.5)
Amortization of actuarial net loss	0.8	0.9
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost	1.0	0.9
Net periodic benefit cost	1.2	1.1
Other comprehensive income (loss), pension income tax effects	$ (0.2)	$ (0.3)

Stock-based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Millions		3 Months Ended
	Nov. 28, 2023	Dec. 31, 2023 USD ($) $ / shares shares	Dec. 31, 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	2.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	4.50%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	2 years 10 months 2 days
Share-based Payment Arrangement, Expense \| $		$ 2.6	$ 2.7
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount \| $		$ 16.8
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount		712,164	1,274,371
Share-Based Payment Arrangement, Shares Withheld for Tax Withholding Obligation		109,961
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		$ 13.22
Granted, shares		230,523
Share-based compensation liability \| $		$ 2.0
Share Based Compensation Arrangement By Share Based Payment Award, Fair Value \| $ / shares		$ 14.40
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		$ 13.22
Granted, shares		136,983
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period		3 years
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture		168,897
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		$ 13.27
Granted, shares		161,943
Share-Based Compensation Arrangement by Share-Based Payment Award, Award Requisite Service Period		3 years
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period		146,760
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		$ 18.11
Granted, shares		136,983
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	1.94%
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value \| $ / shares		$ 3.96
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	4.33%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	6 years
Granted, shares		457,356
Shares Issued, Shares, Share-Based Payment Arrangement, before Forfeiture		3,582
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period		3 years
Employee Stock [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		$ 3.48
Granted, shares		31,139
Share-Based Compensation Arrangement by Share-Based Payment Award, Discount from Market Price, Offering Date		85.00%
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

Stock-based Compensation Plans Grants Table (Details) - USD ($) $ / shares in Units, $ in Millions		3 Months Ended
	Nov. 28, 2023	Dec. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		$ 11.3
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	2.00%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	4.50%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	2 years 10 months 2 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		161,943
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 13.27
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		$ 2.1
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		31,139
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 3.48
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		$ 0.1
Phantom Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		230,523
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 13.22
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		$ 3.0
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		136,983
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 13.22
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		$ 1.8
Market Based Performance Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		136,983
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 18.11
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		457,356
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value		$ 3.96
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture		$ 1.8
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate	1.94%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate	4.33%
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	6 years

Supplemental Balance Sheet Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions	Dec. 31, 2023	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 216.7	$ 160.3	$ 125.6	$ 146.5
Inventories:
Purchased components and raw material	169.0	176.9
Work in process	66.5	60.0
Finished goods	75.8	61.0
Inventories, net	311.3	297.9
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid Expense	18.4	17.8
Nontrade Receivables	2.4	1.7
Maintenance and repair tooling	4.4	4.1
Income taxes	0.8	0.8
Nontrade Receivables, Current	1.8	2.2
Other	5.7	4.9
Other	33.5	31.5
Property, plant and equipment:
Land	6.5	6.4
Buildings	118.0	117.2
Machinery and equipment	528.2	525.8
Construction in progress	40.5	36.9
Property, plant and equipment, gross	693.2	686.3
Accumulated depreciation	(384.8)	(374.6)
Property, plant and equipment net	308.4	311.7
Other Assets, Noncurrent [Abstract]
Operating lease, Right-of-Use asset	29.9	23.6
us-Maintenance, repair and tooling supplies	21.8	21.1
Nontrade Receivables, Noncurrent	2.4	2.4
Assets for Plan Benefits, Defined Benefit Plan	6.2	6.6
Other Receivables	1.8	1.8
Debt Issuance Costs, Noncurrent, Net	0.6	0.7
Other Assets, Miscellaneous, Noncurrent	0.7	2.6
Other noncurrent assets	$ 63.4	$ 58.8

Supplemental Balance Sheet Information (Schedule of Accrued Liabilities) (Details) - USD ($) $ in Millions	Dec. 31, 2023	Sep. 30, 2023
Other current liabilities:
Compensation and benefits	$ 25.3	$ 33.8
Customer rebates	18.0	14.6
Accrued Income Taxes	15.2	8.5
Warranty accrual	10.0	8.6
Deferred Revenue	8.4	9.2
Customer Refund Liability, Current	6.3	6.7
Accrual for Taxes Other than Income Taxes	0.7	2.0
Operating lease liability, current	5.3	4.9
Workers' Compensation Liability, Current	4.3	4.0
Restructuring reserve, current	7.8	6.6
Interest Payable	0.8	5.3
Other Liabilities, Current	10.0	11.0
Accrued liabilities	112.1	115.2
Other Liabilities, Noncurrent [Abstract]
Operating lease liability, noncurrent	25.8	19.8
Product Warranty Accrual, Noncurrent	6.7	7.1
Transition Tax Liability	3.1	3.1
Unrecognized Tax Benefits	3.7	5.0
New market tax credit liabilities	3.9	3.9
Workers' Compensation Liability, Noncurrent	5.6	5.9
Accrued Environmental Loss Contingencies, Noncurrent	4.2	4.2
Grant yet to be earned	2.5	2.5
Other Accrued Liabilities, Noncurrent	2.6	2.7
Other Liabilities, Noncurrent, Total	$ 58.1	$ 54.2

Supplemental Balance Sheet Information (Goodwill) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Sep. 30, 2023
Statement of Financial Position [Abstract]
Goodwill, Gross		$ 817.8
Goodwill, Impaired, Accumulated Impairment Loss		(724.1)
Goodwill	$ 98.3	$ 93.7
Goodwill, Foreign Currency Translation Gain (Loss)	$ 4.6

Segment Information (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022
Segment Reporting Information [Line Items]
Restructuring and other charges	$ 6.6	$ (3.7)
Operating income	22.8	34.0
Depreciation, Depletion and Amortization	16.4	14.8
Payments to Acquire Productive Assets	5.7	9.9
Net sales	256.4	314.8
Mueller Co. [Member]
Segment Reporting Information [Line Items]
Restructuring and other charges	0.2	0.0
Operating income	27.2	24.2
Depreciation, Depletion and Amortization	9.3	7.7
Payments to Acquire Productive Assets	3.9	7.8
Net sales	141.3	165.6
Mueller Co. [Member] \| Central Region [Member]
Segment Reporting Information [Line Items]
Net sales	38.5	44.0
Mueller Co. [Member] \| Northeast Region [Member] [Member]
Segment Reporting Information [Line Items]
Net sales	28.3	31.3
Mueller Co. [Member] \| Southeast Region [Member]
Segment Reporting Information [Line Items]
Net sales	37.1	33.4
Mueller Co. [Member] \| Western Region [Member]
Segment Reporting Information [Line Items]
Net sales	30.6	49.2
Mueller Co. [Member] \| UNITED STATES
Segment Reporting Information [Line Items]
Net sales	134.5	157.9
Mueller Co. [Member] \| CANADA
Segment Reporting Information [Line Items]
Net sales	4.8	4.4
Mueller Co. [Member] \| Other International Locations [Member]
Segment Reporting Information [Line Items]
Net sales	2.0	3.3
Corporate
Segment Reporting Information [Line Items]
Restructuring and other charges	6.4	(3.7)
Operating income	(19.5)	(9.8)
Depreciation, Depletion and Amortization	0.1	0.1
Payments to Acquire Productive Assets	0.0	0.0
Mueller Technologies [Member]
Segment Reporting Information [Line Items]
Restructuring and other charges	0.0	0.0
Operating income	15.1	19.6
Depreciation, Depletion and Amortization	7.0	7.0
Payments to Acquire Productive Assets	1.8	2.1
Net sales	115.1	149.2
Mueller Technologies [Member] \| Central Region [Member]
Segment Reporting Information [Line Items]
Net sales	29.2	41.5
Mueller Technologies [Member] \| Northeast Region [Member] [Member]
Segment Reporting Information [Line Items]
Net sales	26.8	31.2
Mueller Technologies [Member] \| Southeast Region [Member]
Segment Reporting Information [Line Items]
Net sales	28.4	33.3
Mueller Technologies [Member] \| Western Region [Member]
Segment Reporting Information [Line Items]
Net sales	20.0	29.1
Mueller Technologies [Member] \| UNITED STATES
Segment Reporting Information [Line Items]
Net sales	104.4	135.1
Mueller Technologies [Member] \| CANADA
Segment Reporting Information [Line Items]
Net sales	5.7	7.3
Mueller Technologies [Member] \| Other International Locations [Member]
Segment Reporting Information [Line Items]
Net sales	$ 5.0	$ 6.8

Segment Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Segment Reporting Information [Line Items]
Net sales	$ 256.4	$ 314.8
Operating income	22.8	34.0
Depreciation and amortization	16.4	14.8
Restructuring and other charges	6.6	(3.7)
Payments to Acquire Productive Assets	5.7	9.9
Total assets	1,528.8		$ 1,505.0
Intangible intangible assets, net	329.3		$ 334.0
Mueller Co. [Member]
Segment Reporting Information [Line Items]
Net sales	141.3	165.6
Operating income	27.2	24.2
Depreciation and amortization	9.3	7.7
Restructuring and other charges	0.2	0.0
Payments to Acquire Productive Assets	3.9	7.8
Mueller Co. [Member] \| Central Region [Member]
Segment Reporting Information [Line Items]
Net sales	38.5	44.0
Mueller Co. [Member] \| Northeast Region [Member] [Member]
Segment Reporting Information [Line Items]
Net sales	28.3	31.3
Mueller Co. [Member] \| Southeast Region [Member]
Segment Reporting Information [Line Items]
Net sales	37.1	33.4
Mueller Co. [Member] \| Western Region [Member]
Segment Reporting Information [Line Items]
Net sales	30.6	49.2
Mueller Co. [Member] \| CANADA
Segment Reporting Information [Line Items]
Net sales	4.8	4.4
Mueller Co. [Member] \| Other International Locations [Member]
Segment Reporting Information [Line Items]
Net sales	2.0	3.3
Mueller Co. [Member] \| UNITED STATES
Segment Reporting Information [Line Items]
Net sales	134.5	157.9
Mueller Technologies [Member]
Segment Reporting Information [Line Items]
Net sales	115.1	149.2
Operating income	15.1	19.6
Depreciation and amortization	7.0	7.0
Restructuring and other charges	0.0	0.0
Payments to Acquire Productive Assets	1.8	2.1
Mueller Technologies [Member] \| Central Region [Member]
Segment Reporting Information [Line Items]
Net sales	29.2	41.5
Mueller Technologies [Member] \| Northeast Region [Member] [Member]
Segment Reporting Information [Line Items]
Net sales	26.8	31.2
Mueller Technologies [Member] \| Southeast Region [Member]
Segment Reporting Information [Line Items]
Net sales	28.4	33.3
Mueller Technologies [Member] \| Western Region [Member]
Segment Reporting Information [Line Items]
Net sales	20.0	29.1
Mueller Technologies [Member] \| CANADA
Segment Reporting Information [Line Items]
Net sales	5.7	7.3
Mueller Technologies [Member] \| Other International Locations [Member]
Segment Reporting Information [Line Items]
Net sales	5.0	6.8
Mueller Technologies [Member] \| UNITED STATES
Segment Reporting Information [Line Items]
Net sales	$ 104.4	$ 135.1

Accumulated Other Comprehensive Loss (Schedule Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2023	Dec. 31, 2022	Sep. 30, 2023
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax	$ (27.9)		$ (28.5)
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax	0.6
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	(6.9)		(20.2)
Foreign currency translation	13.3	$ 4.0
Accumulated other comprehensive income (loss)	(34.8)		$ (48.7)
Other comprehensive income (loss), net of tax	13.9
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, before Tax	13.3
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	0.0
Minimum pension liability	0.8
Other comprehensive income (loss), pension income tax effects	$ (0.2)	$ (0.3)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions			3 Months Ended
	Feb. 20, 2024	Jan. 25, 2024	Dec. 31, 2023	Dec. 31, 2022	Feb. 06, 2024
Subsequent Event [Line Items]
Dividends declared per share, in dollars per share			$ 0.064	$ 0.061
Domestic Line of Credit [Member] \| Secured Overnight Financing Rate
Subsequent Event [Line Items]
Debt Instrument, Basis Spread on Variable Rate			0.10%
Revolving Credit Facility, ABL Waiver, Through February 2024
Subsequent Event [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity			$ 50.0
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends Payable, Date Declared		Jan. 25, 2024
Dividends declared per share, in dollars per share		$ 0.064
Dividends Payable, Date to be Paid	Feb. 20, 2024
Dividends Payable, Date of Record	Feb. 09, 2024
Subsequent Event [Member] \| Revolving Credit Facility, ABL Waiver, Through February 2024
Subsequent Event [Line Items]
Line of Credit Facility, Remaining Borrowing Capacity					$ 50.0

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