Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2021 | Jan. 31, 2022 | |
Document And Entity Information [Abstract] | ||
Document Fiscal Period Focus | Q1 | |
Document Period End Date | Dec. 31, 2021 | |
Document Fiscal Year Focus | 2021 | |
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 | 156,873,419 | |
Entity Small Business | false | |
Trading Symbol | MWA | |
Title of 12(b) Security | $0.01 par value common stock |
Cover Page Document
Cover Page Document - shares | 3 Months Ended | |
Dec. 31, 2021 | Jan. 31, 2022 | |
Cover Page [Abstract] | ||
Entity Incorporation, State or Country Code | DE | |
Document Type | 10-Q | |
Document Type | true | |
Document Period End Date | Dec. 31, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-32892 | |
Entity Registrant Name | MUELLER WATER PRODUCTS, INC. | |
Entity Tax Identification Number | 20-3547095 | |
Entity Address, Address Line One | 1200 Abernathy Road N.E | |
Entity Address, Address Line Two | Suite 1200 | |
Entity Address, City or Town | Atlanta | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30328 | |
City Area Code | (770) | |
Local Phone Number | 206-4200 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 156,873,419 | |
Trading Symbol | MWA | |
Security Exchange Name | NYSE |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Assets: | ||
Receivables, net | $ 180.4 | $ 212.2 |
Inventories | 209.7 | 184.7 |
Other current assets | 30.6 | 29.3 |
Total current assets | 628 | 653.7 |
Property, plant and equipment, net | 286.9 | 283.4 |
Goodwill | 117.7 | 115.1 |
Identifiable intangible assets | 386.9 | 392.5 |
Other noncurrent assets | 74 | 73.3 |
Total assets | 1,493.5 | 1,518 |
Liabilities and stockholders' equity: | ||
Current portion of long-term debt | 1 | 1 |
Accounts payable | 83.9 | 92 |
Accrued liabilities | 114.4 | 127.1 |
Total current liabilities | 199.3 | 220.1 |
Long-term debt | 445.9 | 445.9 |
Deferred income taxes | 99.3 | 95.1 |
Other noncurrent liabilities | 57.1 | 62 |
Total liabilities | $ 801.6 | $ 823.1 |
Common Stock, Shares, Outstanding | 156,834,758 | 157,955,433 |
Common stock | $ 1.6 | $ 1.6 |
Additional paid-in capital | 1,313.8 | 1,342.2 |
Accumulated deficit | (624.5) | (643.9) |
Accumulated other comprehensive income (loss) | 1 | (5) |
Total equity | 691.9 | 694.9 |
Total liabilities and stockholders' equity | 1,493.5 | 1,518 |
Accounts Receivable, Allowance for Credit Loss, Current | 4.1 | 3.5 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 207.3 | $ 227.5 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2021 | Mar. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Series A common stock, shares authorized | 600,000,000 | 600,000,000 |
Series A common stock, shares outstanding | 156,834,758 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net sales | $ 272.3 | $ 237.4 |
Cost of sales | 184.7 | 159 |
Gross profit | 87.6 | 78.4 |
Operating expenses: | ||
Selling, general and administrative | 56.3 | 49.2 |
Restructuring and other charges | 2.4 | 1.4 |
Total operating expenses | 58.7 | 50.6 |
Operating income | 28.9 | 27.8 |
Non-operating expense: | ||
Pension costs (benefits) other then service | (1) | (0.8) |
Interest expense, net | 4.3 | 6.1 |
Net other expense | 3.3 | 5.3 |
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | 25.6 | 22.5 |
Income tax expense (benefit) | 6.2 | 5.8 |
Net income (loss) | $ 19.4 | $ 16.7 |
Net income (loss) per basic share: | ||
Earnings Per Share, Basic | $ 0.12 | $ 0.11 |
Net income (loss) per diluted share: | ||
Earnings Per Share, Diluted | $ 0.12 | $ 0.11 |
Weighted average shares outstanding: | ||
Basic, in shares | 158,000 | 158,100 |
Diluted, in shares | 158,900 | 158,800 |
Dividends declared per share, in dollars per share | $ 0.058 | $ 0.055 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net income (loss) | $ 19.4 | $ 16.7 |
Other comprehensive income (loss): | ||
Other comprehensive (income) loss, pension, before tax | 0.4 | 0.7 |
Other comprehensive income (loss), pension income tax effects | (0.1) | (0.2) |
Foreign currency translation | 5.7 | 4.5 |
Other comprehensive income (loss), net of tax | 6 | 5 |
Comprehensive income (loss), net of tax | $ 25.4 | $ 21.7 |
Consolidated Statement Of Stock
Consolidated Statement Of Stockholders' Equity - USD ($) $ in Millions | Total | Common stock | Accumulated deficit | Accumulated deficitCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive income (loss) | Additional Paid-in Capital [Member] |
Other comprehensive income (loss), net of tax | $ 5 | |||||
Common stock, dividends, per share, declared | $ 0.055 | |||||
Balance at Sep. 30, 2020 | $ 1.6 | $ (714.2) | (24.7) | $ 1,378 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | 8.7 | |||||
Stock-based compensation | 1.9 | |||||
Shares retained for employee taxes | 0.9 | |||||
Stock repurchased under buyback program | 0 | |||||
Stock issued under stock compensation plans | $ 0 | 0.6 | ||||
Net income (loss) | 16.7 | |||||
Balance at Dec. 31, 2020 | 1.6 | (697.6) | (19.7) | 1,370.9 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity Attributable to Parent | 655.2 | $ (0.1) | ||||
Common stock, value, issued | 1.6 | |||||
Other comprehensive income (loss), net of tax | $ 6 | 6 | ||||
Common stock, dividends, per share, declared | $ 0.058 | |||||
Balance at Sep. 30, 2021 | $ 694.9 | 1.6 | (643.9) | (5) | 1,342.2 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | 9.2 | |||||
Stock-based compensation | 2 | |||||
Shares retained for employee taxes | 1.9 | |||||
Stock repurchased under buyback program | (20) | |||||
Stock issued under stock compensation plans | 0 | 0.7 | ||||
Net income (loss) | 19.4 | |||||
Balance at Dec. 31, 2021 | 691.9 | $ 1.6 | $ (624.5) | $ 1 | $ 1,313.8 | |
Common stock, value, issued | 1.6 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stockholders' Equity Attributable to Parent | $ 691.9 | $ 0 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Net cash provided by (used in) operating activities | ||
Net income (loss) | $ 19.4 | $ 16.7 |
Adjustments to reconcile net income (loss) to income (loss) from continuing operations: | ||
Depreciation | 8 | 7.7 |
Amortization | 7.2 | 7 |
Stock-based compensation expense | 2 | 1.9 |
Retirement plans | (0.7) | (0.5) |
Deferred income taxes | 3.6 | 1.6 |
Inventory write-down | 3.5 | 0.9 |
Other noncash income (expense) | (1) | (0.5) |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables | 31.9 | 24 |
Inventories | (28.3) | (4.8) |
Other current assets and other noncurrent assets | (0.8) | (1.3) |
Accounts payable | (8.4) | (9.4) |
Other current liabilities | (12.8) | (9.9) |
Long-term liabilities | (5.8) | (0.3) |
Net cash provided by (used in) operating activities, total | 19.8 | 34.1 |
Investing activities: | ||
Capital expenditures | (11) | (15.6) |
Payments for (Proceeds from) Other Investing Activities | 0.2 | 0 |
Proceeds from sales of assets | 0 | 0.1 |
Net cash provided by (used in) investing activities, total | (10.8) | (15.5) |
Financing activities: | ||
Dividends paid | (9.2) | (8.7) |
Shares retained for employee taxes | (1.9) | (0.9) |
Common stock issued | 0.7 | 0.6 |
Proceeds from Other Equity | 0 | 3.9 |
Payments of financing costs | 0 | (0.5) |
Stock repurchased under buyback program | (20) | 0 |
Other | (0.1) | (0.2) |
Net cash provided by (used in) financing activities, total | (30.5) | (5.8) |
Effect of currency exchange rate changes on cash | 1.3 | 1.3 |
Net change in cash and cash equivalents | (20.2) | 14.1 |
Cash and cash equivalents at beginning of period | 208.9 | |
Cash and cash equivalents at end of period | 223 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 207.3 | |
Interest Paid, Excluding Capitalized Interest, Operating Activities | 10 | 12.4 |
Income Taxes Paid | $ 0.4 | $ 0.7 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2021 | |
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, net of tax Foreign currency translation Total (in millions) Balance at September 30, 2021 $ (22.2) $ 17.2 $ (5.0) Current period other comprehensive income 0.3 5.7 $ 6.0 Balance at December 31, 2021 $ (21.9) $ 22.9 $ 1.0 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive income (loss) is as follows: Pension, net of tax Foreign currency translation Total (in millions) Balance at September 30, 2021 $ (22.2) $ 17.2 $ (5.0) Current period other comprehensive income 0.3 5.7 $ 6.0 Balance at December 31, 2021 $ (21.9) $ 22.9 $ 1.0 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tabular) | 3 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss | Accumulated other comprehensive income (loss) is as follows: Pension, net of tax Foreign currency translation Total (in millions) Balance at September 30, 2021 $ (22.2) $ 17.2 $ (5.0) Current period other comprehensive income 0.3 5.7 $ 6.0 Balance at December 31, 2021 $ (21.9) $ 22.9 $ 1.0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule Of Accumulated Other Comprehensive Loss) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax, Total | $ (21.9) | $ (22.2) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, after Tax | 0.3 | |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 22.9 | 17.2 |
Foreign currency translation | 5.7 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax | 1 | $ (5) |
Other comprehensive income (loss), net of tax | $ 6 |
Organization
Organization | 3 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization and Basis of Presentation Mueller Water Products, Inc., a Delaware corporation, together with its consolidated subsidiaries, operates in two business segments: Water Flow Solutions and Water Management Solutions. These segments are based on a management reorganization that became effective October 1, 2021; prior period information has been recast to conform to the current presentation. Water Flow Solutions’ product portfolio includes iron gate valves, specialty valves and service brass products. Water Management Solutions’ product and service portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, pressure control and software products. The “Company,” “we,” “us” or “our” refer to Mueller Water Products, Inc. and its subsidiaries, and may also refer to the segment being discussed. On December 3, 2018, we completed our acquisition of Krausz Industries Development Ltd. and subsidiaries (“Krausz”). During the year ended September 30, 2021, we aligned the consolidation of the financial statements of Krausz in the Company’s consolidated financial statements, eliminating the previous inclusion of Krausz financial statements with a one-month reporting lag. In accordance with applicable accounting literature, the elimination of the one-month reporting lag is considered to be a change in accounting principle. We believe this change in accounting principle is preferable as the financial statements of all of our subsidiaries are now reported on the same basis, providing the most current information available. The effect of the elimination of the reporting lag during the year ended September 30, 2021 resulted in an increase of $6.0 million to net sales and an increase of $1.4 million to operating income. We concluded that the effect of this change is not material to the balance sheets, statements of operations, statements of cash flows, net income and earnings per share and therefore have not retrospectively applied this change. On June 14, 2021, we acquired all the outstanding capital stock of i2O Water Ltd (“i2O”), a provider of pressure management solutions to more than 100 water companies in 45 countries. The consolidated balance sheet at September 30, 2021 included the preliminary estimated fair values of the net assets of i2O. The Company is still reviewing the impact of taxes and certain other items. The results of i2O’s operations and cash flows subsequent to the acquisition are included in the Company’s consolidated statement of operations and consolidated statement of cash flows, respectively. Refer to Note 2. for additional disclosures related to the acquisition. Our consolidated financial statements are prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”), which require us to make certain estimates and assumptions in recording assets, liabilities, sales and expenses as well as in the disclosure of contingent assets and liabilities. Actual results could differ from those estimates. All significant intercompany balances and transactions have been eliminated. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended September 30, 2021. 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, 2021 was derived from audited financial statements, but it does not include all disclosures required by GAAP. Our business is seasonal as a result of cold weather conditions. Net sales and operating income historically have been lowest in the three month periods ending December 31 and March 31 when the northern United States and all of Canada generally face weather conditions that restrict significant construction activity. In preparing these financial statements in conformity with GAAP, we have considered and, where appropriate, included the effects of the COVID-19 pandemic on our operations. The pandemic continues to provide significant challenges to the U.S. and global economies. Unless the context indicates otherwise, whenever we refer to a particular year, we mean our fiscal year ended or ending September 30 in that particular calendar year. Recently Adopted Accounting Guidance During 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) 326 - Current Expected Credit Losses to replace the “incurred loss” impairment approach with an “expected loss” approach, which requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. We have completed historical and forward-looking analyses for receivables and adopted this guidance effective October 1, 2020. Upon adoption, there was no material impact to our financial statements. In December 2019, the FASB issued Accounting Standards Update (“ASU”) No. 2019-12, "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes” (“ASU 2019-12”). ASU 2019-12 simplifies the accounting for income taxes by clarifying and amending existing guidance related to the recognition of franchise tax, the evaluation of a step up in the tax basis of goodwill, and the effects of enacted changes in tax laws or rates in the effective tax rate computation, among other clarifications. ASU 2019-12 is effective for public business entities for fiscal years beginning after December 15, 2020, including interim periods within that fiscal year, with early adoption permitted. We adopted this standard on October 1, 2021 and there was no material impact to our financial statements. In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" (“ASU 2020-04”). This guidance provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments apply only to contracts and hedging relationships that reference the London Inter Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued due to reference rate reform. ASU 2020-04 is effective from March 12, 2020, but can be adopted prospectively from a date within an interim period subsequent to March 12, 2020. We evaluated our contracts and the optional expedients provided by ASU 2020-04. We adopted this standard on October 1, 2021 and there was no material impact to our financial statements. Restructuring Since November 2019, we have announced the purchase and closure of several facilities. We purchased a new facility in Kimball, Tennessee to support and enhance our investment in our Chattanooga, Tennessee large casting foundry and closed our facilities in Hammond, Indiana, Woodland, Washington and Surrey, British Columbia, Canada. We also announced the closure of our facility in Aurora, Illinois which we expect to complete by the third quarter of fiscal year 2022. The majority of the activities from these facilities have been, or will be, transferred to our Kimball, Tennessee facility. Activity in accrued restructuring, reported as part of Other current liabilities, is presented below. Three months ended December 31, 2021 2020 (in millions) Beginning balance $ 3.1 $ 2.8 Expenses incurred 1.2 0.2 Amounts paid (1.3) (1.1) Ending balance $ 3.0 $ 1.9 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 3 Months Ended |
Dec. 31, 2021 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers We recognize revenue when control of promised products or services is transferred to our customers, in amounts that reflect the consideration to which we expect to be entitled in exchange for those products or services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. Disaggregation of Revenue We disaggregate our revenues from contracts with customers by reportable segment (see Note 10.) and further by geographical region as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographical region represents the location of the customer. Contract Asset and Liability Balances 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 we expect to receive within one year and therefore is included within Other current liabilities in the accompanying consolidated balance sheets. Deferred revenues represent contract liabilities and are recorded when customers remit cash payments in advance of our satisfaction of performance obligations under contractual arrangements. Contract liabilities are relieved and revenue is recognized when the performance obligation is satisfied. The table below represents the balances of our customer receivables and deferred revenues. December 31, September 30, 2021 2021 (in millions) Billed receivables $ 181.8 $ 213.4 Unbilled receivables 2.7 2.3 Gross customer receivables 184.5 215.7 Allowance for credit losses (4.1) (3.5) Receivables, net $ 180.4 $ 212.2 Deferred revenues $ 7.4 $ 5.4 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Our performance obligations are satisfied at a point in time for sales of equipment or 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. We allocate the transaction price of each contract to the performance obligations on the basis of standalone selling price and recognize revenue when control of the performance obligation transfers to the customer. 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 based typically on historical experience and known trends. We do not recognize variable consideration in the event there are uncertainties in the amount of variable consideration to be paid nor when it is probable there will be a significant reversal in the related revenue. We exclude from the measurement of the transaction price all taxes assessed by a governmental authority. We classify shipping and handling costs, such as freight to our customers’ destinations, as a component of Cost of sales. We have elected to use the practical expedient to not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less. The revenues recognized at a point in time related to the sale of our products are recognized when the obligations of the terms of our contract are satisfied, 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 that provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These cannot be purchased separately. Costs to Obtain or Fulfill a Contract We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. Our commissions are paid based on a combination of orders and shipments, and we reserve the right to claw back any commissions in case of product returns or lost collections. As the expected benefit associated with these incremental costs is generally one year or less based on the nature of the product sold and benefits received, we have applied a practical expedient and therefore do not capitalize the related costs and expense them as incurred. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 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 3.9 4.5 Excess tax benefits related to stock-based compensation (1.0) (0.6) Tax credits (1.2) (1.4) Global Intangible Low-Taxed Income 0.3 0.6 Foreign income tax rate differential (0.7) (0.9) Valuation allowances 1.4 1.5 Other 0.5 1.1 Effective income tax rate 24.2 % 25.8 % |
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, 2021 2020 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 3.9 4.5 Excess tax benefits related to stock-based compensation (1.0) (0.6) Tax credits (1.2) (1.4) Global Intangible Low-Taxed Income 0.3 0.6 Foreign income tax rate differential (0.7) (0.9) Valuation allowances 1.4 1.5 Other 0.5 1.1 Effective income tax rate 24.2 % 25.8 % |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Dec. 31, 2021 | |
Long-term Debt and Lease Obligation [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements The components of our long-term debt are as follows: December 31, September 30, 2021 2021 (in millions) 4.0% Senior Notes $ 450.0 $ 450.0 Finance leases 2.0 2.2 Total borrowings 452.0 452.2 Less deferred financing costs (5.1) (5.3) Less current portion (1.0) (1.0) Long-term debt $ 445.9 $ 445.9 ABL Agreement. Our ABL Agreement consists of a revolving credit facility for up to $175.0 million which includes up to $25.0 million through swing line loans and may have up to $60.0 million of letters of credit. The ABL Agreement 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. Borrowings under the ABL Agreement bear interest at a floating rate equal to LIBOR plus an applicable margin range of 200 to 225 basis points, or a base rate, as defined in the ABL Agreement, plus an applicable margin range of from 100 to 125 basis points. At December 31, 2021 the applicable margin was LIBOR plus 200 basis points. The ABL Agreement is subject to mandatory prepayments if total outstanding borrowings under the ABL Agreement 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 Agreement 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 Agreement and are jointly and severally liable for any outstanding borrowings. Our obligations under the ABL Agreement are secured by a first-priority perfected lien on all of our United States inventories, accounts receivable, certain cash and other related items. The ABL Agreement terminates on July 29, 2025 and 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 or 10% of the Loan Cap as defined in the ABL Agreement. Excess availability based on December 31, 2021 data was $133.8 million, as reduced by $15.0 million of outstanding letters of credit and $1.4 million of accrued fees and expenses. 4.0% Senior Unsecured Notes. On May 28, 2021, we privately issued $450.0 million of 4.0% Senior Unsecured Notes (“4.0% Senior Notes”), which mature on June 15, 2029 and bear interest at 4.0%, paid semi-annually in June and December. We capitalized $5.5 million of financing costs that 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 that are subordinate to borrowings under our ABL Agreement. Based on quoted market prices that are a Level 1 measurement, the outstanding 4.0% Senior Notes had a fair value of $456.9 million at December 31, 2021. |
Derivative Financial Instrument
Derivative Financial Instruments (Notes) | 3 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments In connection with the acquisition of Singer Valve in 2017, we loaned funds to one of our Canadian subsidiaries. Although this intercompany loan has no direct effect on our consolidated financial statements, it creates exposure to currency risk for the Canadian subsidiary. To reduce this exposure, we entered into a U.S. dollar-Canadian dollar swap contract with the Canadian subsidiary and an offsetting Canadian dollar-U.S. dollar swap with a domestic bank. We have not designated these swaps as hedges and the changes in their fair value are included in earnings, offsetting the currency gains and losses associated with the intercompany loan. The values of our currency swap contracts were liabilities of $1.2 million and $1.1 million at December 31, 2021 and September 30, 2021, respectively, and are included in Other current liabilities. |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Retirement Plans The components of net periodic benefit cost for our pension plans are presented below. Three months ended December 31, 2021 2020 (in millions) Service cost $ 0.3 $ 0.4 Pension costs (benefits) other than service: Interest cost 2.4 2.5 Expected return on plan assets (3.8) (3.9) Amortization of actuarial net loss 0.4 0.6 Pension benefits other than service (1.0) (0.8) Net periodic benefit $ (0.7) $ (0.4) The amortization of actuarial losses, net of tax, is recorded as a component of other comprehensive income (loss). |
Stock-based Compensation Plans
Stock-based Compensation Plans | 3 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Share-based Payment Arrangement [Text Block] | Stock-based Compensation Plans We grant various forms of stock-based compensation, including market-based restricted stock units (“MRSUs”), restricted stock units, stock options and performance-based restricted stock units (“PRSUs”) under our Amended and Restated 2006 Mueller Water Products, Inc. Stock Incentive Plan (the “2006 Stock Plan”), Phantom Plan instruments under our Mueller Water Products, Inc. 2012 Phantom Plan, and Employee stock purchase plan instruments under our 2006 Employee Stock Purchase Plan. Grants issued during the three months ended December 31, 2021 are as follows: Number granted Weighted average grant date fair value per instrument Total grant date fair value Quarter ended December 31, 2021 MRSUs 230,089 $ 15.76 $ 3.6 Phantom Plan instruments 199,549 $ 13.64 $ 2.7 Restricted stock units 135,129 $ 13.64 $ 1.8 Non-qualified stock options 457,482 $ 3.43 $ 1.6 PRSUs: 2020 award 57,627 $ 13.81 $ 0.8 Employee stock purchase plan instruments 38,069 $ 3.01 $ 0.1 $ 10.6 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 a selected peer group's TSR. 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. The assumptions used to determine the grant-date fair value are indicated below. November 30, 2021 Variables used in determining grant date fair value: Dividend yield 1.70 % Risk-free rate 0.76 % Expected term (in years) 2.83 The expected dividend yield is based on our estimated annual dividend and our stock price history at the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield in effect at the grant date with a term equal to the expected term. The expected term represents the average period of time the units are expected to be outstanding. At December 31, 2021, the outstanding Phantom Plan instruments had a fair value of $14.40 per instrument and our liability for Phantom Plan instruments was $1.9 million and is included within current and 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. November 30, 2021 Dividend yield 1.62 % Risk-free rate 1.33 % Expected term (in years) 6.00 The expected dividend yield is based on our estimated annual dividend and our stock price history at the grant date. The risk-free interest rate is based on the U.S. Treasury zero-coupon yield in effect at the grant date with a term equal to the expected term. The expected term represents the average period of time the options are expected to be outstanding. A PRSU award consists of a number of units that may be paid out at the end of a three-year award cycle consisting of a series of annual performance periods coinciding with our fiscal years. After we establish the financial performance targets related to PRSUs for a given performance period, typically during the first quarter of that fiscal year, we consider that portion of a PRSU award to be granted. Thus, each award consists of a grant in the year of award and grants in the two following years. Settlements, in our common shares, will range from zero to two times the number of PRSUs granted, depending on our financial performance relative to the targets. We issued 240,412 shares of common stock during the three months ended December 31, 2021 to settle PRSUs vested during the period. Additionally, we issued 130,018 and 141,135 shares of common stock to settle restricted stock units vested and stock options exercised, respectively, during the three months ended December 31, 2021. Operating income included stock-based compensation expense of $2.6 million and $2.5 million during the three months ended December 31, 2021 and 2020, respectively. At December 31, 2021, there was approximately $14.5 million of unrecognized compensation expense related to stock-based compensation arrangements and there were 57,627 PRSUs that have been awarded for the 2022 performance period for which performance goal achievement cannot yet be determined. We excluded 277,344 and 258,522 stock-based compensation instruments from the calculations of diluted earnings per share in the three months ended December 31, 2021 and 2020, respectively, since their inclusion would have been antidilutive. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Selected supplemental asset information is presented below. December 31, September 30, 2021 2021 (in millions) Inventories: Purchased components and raw material $ 125.9 $ 100.9 Work in process 41.5 41.6 Finished goods 42.3 42.2 Total inventories $ 209.7 $ 184.7 Other current assets: Prepaid expenses $ 13.8 $ 12.8 Non-trade receivables 10.0 10.7 Maintenance and repair supplies and tooling 2.7 2.9 Income taxes 0.2 0.2 Workers’compensation reimbursement receivable 0.8 0.8 Other current assets 3.1 1.9 Total other current assets $ 30.6 $ 29.3 Property, plant and equipment: Land $ 5.5 $ 6.1 Buildings 84.4 84.6 Machinery and equipment 436.2 433.3 Construction in progress 91.5 83.7 Total property, plant and equipment 617.6 607.7 Accumulated depreciation (330.7) (324.3) Property, plant and equipment, net $ 286.9 $ 283.4 Other noncurrent assets: Operating lease right-of-use assets $ 26.4 $ 27.1 Maintenance and repair supplies and tooling 19.8 19.3 Workers’ compensation reimbursement receivable 2.7 2.7 Pension asset 17.9 16.8 Note receivable 1.8 1.8 Deferred financing fees 1.2 1.3 Other noncurrent assets 4.2 4.3 Total other noncurrent assets $ 74.0 $ 73.3 Selected supplemental liability information is presented below. December 31, September 30, 2021 2021 (in millions) Other current liabilities: Compensation and benefits $ 28.4 $ 44.6 Customer rebates 27.4 19.6 Warranty accrual 5.6 6.7 Deferred revenues 7.4 5.4 Refund liability 5.2 6.0 Taxes other than income taxes 4.6 4.4 Operating lease liabilities 3.6 4.0 Workers’ compensation accrual 2.7 2.6 CARES Act payroll tax liabilities 3.6 3.6 Restructuring liabilities 3.1 3.1 Environmental liabilities — 1.2 Interest payable 0.8 6.2 Income taxes payable 10.8 8.5 Other current liabilities 11.2 11.2 Total other current liabilities $ 114.4 $ 127.1 Other noncurrent liabilities: Operating lease liabilities $ 23.8 $ 24.6 Warranty accrual 3.1 3.0 Transition tax liability 4.7 4.7 Uncertain tax position liability 4.6 4.8 NMTC liability 3.9 3.9 Workers’ compensation accrual 8.1 7.9 Asset retirement obligation 3.6 3.6 CARES Act payroll tax liabilities — 3.6 Deferred development grant 2.5 2.5 Other noncurrent liabilities 2.8 3.4 Total other noncurrent liabilities $ 57.1 $ 62.0 Goodwill Goodwill is tested for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis each September 1 st and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. The following table summarizes information concerning our goodwill balance in the three months ended December 31, 2021, in millions. Balance at September 30, 2021 $ 115.1 Acquisition purchase price adjustment (0.2) Effects of changes in foreign currency exchange rates 2.8 Balance at December 31, 2021 $ 117.7 |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information We adopted a new management structure effective October 1, 2021; prior period information has been recast to conform to the current presentation. The recasting has no effect on our previously reported consolidated balance sheets, consolidated statements of operations, or consolidated statements of cash flows. The two newly named business units and reportable segments are Water Flow Solutions and Water Management Solutions. Water Flow Solutions’ product portfolio includes iron gate valves, specialty valves and service brass products. Water Management Solutions’ product and service portfolio includes fire hydrants, repair and installation, natural gas, metering, leak detection, pressure control and software products. Summarized financial information for our segments is presented below. Three months ended December 31, 2021 2020 (in millions) Net sales, excluding intercompany: Water Flow Solutions $ 154.9 $ 128.8 Water Management Solutions 117.4 108.6 $ 272.3 $ 237.4 Operating income (loss): Water Flow Solutions $ 31.3 $ 23.1 Water Management Solutions 11.4 17.0 Corporate (13.8) (12.3) $ 28.9 $ 27.8 Depreciation and amortization: Water Flow Solutions $ 7.4 $ 7.4 Water Management Solutions 7.7 7.2 Corporate 0.1 0.1 $ 15.2 $ 14.7 Strategic reorganization and other charges: Water Flow Solutions $ — $ 0.1 Water Management Solutions 0.1 — Corporate 2.3 1.3 $ 2.4 $ 1.4 Capital expenditures: Water Flow Solutions $ 9.4 $ 12.3 Water Management Solutions 1.6 3.2 Corporate — 0.1 $ 11.0 $ 15.6 Water Flow Solutions disaggregated net revenues: Central $ 40.5 $ 35.0 Northeast 30.0 24.9 Southeast 37.3 23.1 West 38.1 36.3 United States 145.9 119.3 Canada 7.9 5.7 Other international locations 1.1 3.8 $ 154.9 $ 128.8 Water Management Solutions disaggregated net revenues: Central $ 28.8 $ 26.8 Northeast 24.3 24.4 Southeast 25.5 22.6 West 24.7 22.1 United States 103.3 95.9 Canada 7.6 6.7 Other international locations 6.5 6.0 $ 117.4 $ 108.6 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Commitments and Contingencies We are involved in various legal proceedings that have arisen in the normal course of operations, including the proceedings summarized below. We provide for costs relating to these matters when a loss is probable and the amount is reasonably estimable. Administrative costs related to these matters are expensed as incurred. The effect of the outcome of these matters on our financial statements cannot be predicted with certainty as any such effect depends on the amount and timing of the resolution of such matters. Other than the litigation described below, we do not believe that any of our outstanding litigation would have a 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. On July 13, 2010, Rohcan Investments Limited, the former owner of property leased by Mueller Canada Ltd. and located in Milton, Ontario, filed suit against Mueller Canada Ltd. and its directors seeking C$10.0 million in damages arising from the defendants’ alleged environmental contamination of the property and breach of lease. Mueller Canada Ltd. leased the property from 1988 through 2008. We are pursuing indemnification from a former owner for certain potential liabilities that are alleged in this lawsuit, and we have accrued for other liabilities not covered by indemnification. On December 7, 2011, the Court denied the plaintiff’s motion for summary judgment. The purchaser of U.S. Pipe has been identified as a “potentially responsible party” (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act in connection with a former manufacturing facility operated by U.S. Pipe that was in the vicinity of a proposed Superfund site located in North Birmingham, Alabama. Under the terms of the acquisition agreement relating to our sale of U.S. Pipe, we agreed to indemnify the purchaser for certain environmental liabilities, including those arising out of the former manufacturing site in North Birmingham. Accordingly, the purchaser tendered the matter to us for indemnification, which we accepted. Ultimate liability for the site will depend on many factors that have not yet been determined, including the determination of 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, 2021. The COVID-19 Pandemic. The pandemic has caused, and is likely to continue to cause, severe economic, market and other disruptions to the U.S. and global economies. We have taken action and continue to counter such disruption, and work to protect the safety of our employees. We are uncertain of the potential full magnitude or duration of the business and economic impacts from the unprecedented public health effort to contain and combat the spread of COVID-19, and while the extent to which the pandemic affects our results will depend on future developments, the outbreak could result in material effects to our future financial position, results of operations, cash flows and liquidity. Mass Shooting Event at our Mueller Co. Facility in Albertville, Alabama. On June 15, 2021, we experienced a mass shooting event at our Mueller Co. facility in Albertville, Alabama, in which two employees were killed and two employees were injured. Various claims arising from the event have been filed to date and we anticipate that additional claims may be made and that liability under such claims, if any, is not expected to have a material adverse effect on our results of operations or cash flows. However, the outcome of these claims, or legal proceedings, and related effects arising from this event cannot be predicted with certainty. Indemnifications . We are a party to contracts in which it is common for us to agree to indemnify third parties for certain liabilities that arise out of or relate to the subject matter of the contract. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by gross negligence or willful misconduct. We cannot estimate the potential amount of future payments under these indemnities until events arise that would trigger a liability under the indemnities. Additionally, in connection with the sale of assets and the divestiture of businesses, such as the divestitures of U.S. Pipe and Anvil, we may agree to indemnify buyers and related parties for certain losses or liabilities incurred by these parties with respect to: (i) the representations and warranties made by us to these parties in connection with the sale and (ii) liabilities related to the pre-closing operations of the assets or business sold. Indemnities related to pre-closing operations generally include certain environmental and tax liabilities and other liabilities not assumed by these parties in the transaction. Indemnities related to the pre-closing operations of sold assets or businesses normally do not represent additional liabilities to us, but simply serve to protect these parties from potential liability associated with our obligations existing at the time of the sale. As with any liability, we have accrued for those pre-closing obligations that are considered probable and reasonably estimable. Should circumstances change, increasing the likelihood of payments related to a specific indemnity, we will accrue a liability when future payment is probable and the amount is reasonably estimable. Other Matters. We monitor and analyze our warranty experience and costs periodically and may revise our accruals as necessary. Critical factors in our analyses include warranty terms, specific claim situations, general incurred and projected failure rates, the nature of product failures, product and labor costs, and general business conditions. We are party to a number of lawsuits arising in the ordinary course of business, including product liability cases for products manufactured by us or third parties. While the results of litigation cannot be predicted with certainty, we believe that the final outcome of such other litigation is not likely to have a materially adverse effect on our financial position, results of operations, cash flows or liquidity. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 27, 2022, our Board of Directors declared a dividend of $0.058 per share on our common stock, payable on February 21, 2022 to stockholders of record at the close of business on February 10, 2022 |
Business Combinations and Asset
Business Combinations and Asset Acquisitions | 3 Months Ended |
Dec. 31, 2021 | |
Acquistions [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisitions Acquisition of i2O Water Ltd On June 14, 2021, we acquired all the outstanding capital stock of i2O for $19.7 million, net of cash acquired. The purchase agreement provided for customary final adjustments, including a net working capital adjustment that was completed during the three months ended December 31, 2021, resulting in a purchase price of $19.5 million. We have recognized the assets acquired and liabilities assumed at their estimated acquisition date fair values, with the excess of the purchase price over the estimated fair values of the identifiable net assets acquired recorded as goodwill. The accounting for the business combination is considered to be preliminary. We are still gathering information related to income taxes and certain other items. The results of i2O are included in our Water Management Solutions segment. The goodwill below is attributable to the strategic opportunities and synergies that we expect to arise from the acquisition of i2O and the value of its workforce. The goodwill is nondeductible for income tax purposes. Identified intangible assets consist of customer relationships, non-compete agreements and developed technology with an estimated weighted-average useful life of approximately 12 years and trade names with an indefinite life. Values of intangible assets were determined using a discounted cash flow method. The following is a summary of the preliminary estimated fair values of the net assets acquired (in millions): Assets, net of cash: Receivables $ 0.5 Inventories 0.6 Other current assets 0.9 Identified intangible assets: Tradename 1.8 Customer relationships 2.1 Non-compete agreements 0.1 Developed technology 3.5 Goodwill 11.9 Liabilities: Accounts payable (0.8) Other current liabilities (1.1) Fair value of net assets acquired, net of cash $ 19.5 |
Organization Restructuring Roll
Organization Restructuring Rollforward (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Activity in accrued restructuring, reported as part of Other current liabilities, is presented below. Three months ended December 31, 2021 2020 (in millions) Beginning balance $ 3.1 $ 2.8 Expenses incurred 1.2 0.2 Amounts paid (1.3) (1.1) Ending balance $ 3.0 $ 1.9 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | e table below represents the balances of our customer receivables and deferred revenues. December 31, September 30, 2021 2021 (in millions) Billed receivables $ 181.8 $ 213.4 Unbilled receivables 2.7 2.3 Gross customer receivables 184.5 215.7 Allowance for credit losses (4.1) (3.5) Receivables, net $ 180.4 $ 212.2 Deferred revenues $ 7.4 $ 5.4 |
Income Taxes Rate Reconciliatio
Income Taxes Rate Reconciliation (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 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 3.9 4.5 Excess tax benefits related to stock-based compensation (1.0) (0.6) Tax credits (1.2) (1.4) Global Intangible Low-Taxed Income 0.3 0.6 Foreign income tax rate differential (0.7) (0.9) Valuation allowances 1.4 1.5 Other 0.5 1.1 Effective income tax rate 24.2 % 25.8 % |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 2021 (in millions) 4.0% Senior Notes $ 450.0 $ 450.0 Finance leases 2.0 2.2 Total borrowings 452.0 452.2 Less deferred financing costs (5.1) (5.3) Less current portion (1.0) (1.0) Long-term debt $ 445.9 $ 445.9 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for our pension plans are presented below. Three months ended December 31, 2021 2020 (in millions) Service cost $ 0.3 $ 0.4 Pension costs (benefits) other than service: Interest cost 2.4 2.5 Expected return on plan assets (3.8) (3.9) Amortization of actuarial net loss 0.4 0.6 Pension benefits other than service (1.0) (0.8) Net periodic benefit $ (0.7) $ (0.4) |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 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. November 30, 2021 Dividend yield 1.62 % Risk-free rate 1.33 % Expected term (in years) 6.00 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
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, 2021 2021 (in millions) Inventories: Purchased components and raw material $ 125.9 $ 100.9 Work in process 41.5 41.6 Finished goods 42.3 42.2 Total inventories $ 209.7 $ 184.7 Other current assets: Prepaid expenses $ 13.8 $ 12.8 Non-trade receivables 10.0 10.7 Maintenance and repair supplies and tooling 2.7 2.9 Income taxes 0.2 0.2 Workers’compensation reimbursement receivable 0.8 0.8 Other current assets 3.1 1.9 Total other current assets $ 30.6 $ 29.3 Property, plant and equipment: Land $ 5.5 $ 6.1 Buildings 84.4 84.6 Machinery and equipment 436.2 433.3 Construction in progress 91.5 83.7 Total property, plant and equipment 617.6 607.7 Accumulated depreciation (330.7) (324.3) Property, plant and equipment, net $ 286.9 $ 283.4 Other noncurrent assets: Operating lease right-of-use assets $ 26.4 $ 27.1 Maintenance and repair supplies and tooling 19.8 19.3 Workers’ compensation reimbursement receivable 2.7 2.7 Pension asset 17.9 16.8 Note receivable 1.8 1.8 Deferred financing fees 1.2 1.3 Other noncurrent assets 4.2 4.3 Total other noncurrent assets $ 74.0 $ 73.3 |
Schedule of Accrued Liabilities | Selected supplemental liability information is presented below. December 31, September 30, 2021 2021 (in millions) Other current liabilities: Compensation and benefits $ 28.4 $ 44.6 Customer rebates 27.4 19.6 Warranty accrual 5.6 6.7 Deferred revenues 7.4 5.4 Refund liability 5.2 6.0 Taxes other than income taxes 4.6 4.4 Operating lease liabilities 3.6 4.0 Workers’ compensation accrual 2.7 2.6 CARES Act payroll tax liabilities 3.6 3.6 Restructuring liabilities 3.1 3.1 Environmental liabilities — 1.2 Interest payable 0.8 6.2 Income taxes payable 10.8 8.5 Other current liabilities 11.2 11.2 Total other current liabilities $ 114.4 $ 127.1 Other noncurrent liabilities: Operating lease liabilities $ 23.8 $ 24.6 Warranty accrual 3.1 3.0 Transition tax liability 4.7 4.7 Uncertain tax position liability 4.6 4.8 NMTC liability 3.9 3.9 Workers’ compensation accrual 8.1 7.9 Asset retirement obligation 3.6 3.6 CARES Act payroll tax liabilities — 3.6 Deferred development grant 2.5 2.5 Other noncurrent liabilities 2.8 3.4 Total other noncurrent liabilities $ 57.1 $ 62.0 |
Schedule of Goodwill | The following table summarizes information concerning our goodwill balance in the three months ended December 31, 2021, in millions. Balance at September 30, 2021 $ 115.1 Acquisition purchase price adjustment (0.2) Effects of changes in foreign currency exchange rates 2.8 Balance at December 31, 2021 $ 117.7 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule Of Selected Supplemental Balance Sheet Information | mmarized financial information for our segments is presented below. Three months ended December 31, 2021 2020 (in millions) Net sales, excluding intercompany: Water Flow Solutions $ 154.9 $ 128.8 Water Management Solutions 117.4 108.6 $ 272.3 $ 237.4 Operating income (loss): Water Flow Solutions $ 31.3 $ 23.1 Water Management Solutions 11.4 17.0 Corporate (13.8) (12.3) $ 28.9 $ 27.8 Depreciation and amortization: Water Flow Solutions $ 7.4 $ 7.4 Water Management Solutions 7.7 7.2 Corporate 0.1 0.1 $ 15.2 $ 14.7 Strategic reorganization and other charges: Water Flow Solutions $ — $ 0.1 Water Management Solutions 0.1 — Corporate 2.3 1.3 $ 2.4 $ 1.4 Capital expenditures: Water Flow Solutions $ 9.4 $ 12.3 Water Management Solutions 1.6 3.2 Corporate — 0.1 $ 11.0 $ 15.6 Water Flow Solutions disaggregated net revenues: Central $ 40.5 $ 35.0 Northeast 30.0 24.9 Southeast 37.3 23.1 West 38.1 36.3 United States 145.9 119.3 Canada 7.9 5.7 Other international locations 1.1 3.8 $ 154.9 $ 128.8 Water Management Solutions disaggregated net revenues: Central $ 28.8 $ 26.8 Northeast 24.3 24.4 Southeast 25.5 22.6 West 24.7 22.1 United States 103.3 95.9 Canada 7.6 6.7 Other international locations 6.5 6.0 $ 117.4 $ 108.6 |
Business Combinations and Ass_2
Business Combinations and Asset Acquisitions (Tables) | 3 Months Ended |
Dec. 31, 2021 | |
Acquistions [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following is a summary of the preliminary estimated fair values of the net assets acquired (in millions): Assets, net of cash: Receivables $ 0.5 Inventories 0.6 Other current assets 0.9 Identified intangible assets: Tradename 1.8 Customer relationships 2.1 Non-compete agreements 0.1 Developed technology 3.5 Goodwill 11.9 Liabilities: Accounts payable (0.8) Other current liabilities (1.1) Fair value of net assets acquired, net of cash $ 19.5 |
Organization (Details)
Organization (Details) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021USD ($)business_segments | Dec. 31, 2020USD ($) | Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | ||||
Restructuring | $ 3 | $ 1.9 | $ 3.1 | $ 2.8 |
Restructuring and other charges | 2.4 | 1.4 | ||
Payments | 1.3 | 1.1 | ||
Pension costs (benefits) other then service | $ (1) | $ (0.8) | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | ||
Number of Reportable Segments | business_segments | 2 | |||
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 | |||
Mueller Co. [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Restructuring and other charges | $ 0 | $ 0.1 |
Organization Restructuring (Det
Organization Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 3 | $ 1.9 | $ 3.1 | $ 2.8 |
Restructuring and other charges | 2.4 | 1.4 | ||
Payments | (1.3) | (1.1) | ||
Mueller One Project [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and other charges | $ 1.2 | $ 0.2 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | |
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers We recognize revenue when control of promised products or services is transferred to our customers, in amounts that reflect the consideration to which we expect to be entitled in exchange for those products or services. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. Disaggregation of Revenue We disaggregate our revenues from contracts with customers by reportable segment (see Note 10.) and further by geographical region as we believe this best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographical region represents the location of the customer. Contract Asset and Liability Balances 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 we expect to receive within one year and therefore is included within Other current liabilities in the accompanying consolidated balance sheets. Deferred revenues represent contract liabilities and are recorded when customers remit cash payments in advance of our satisfaction of performance obligations under contractual arrangements. Contract liabilities are relieved and revenue is recognized when the performance obligation is satisfied. The table below represents the balances of our customer receivables and deferred revenues. December 31, September 30, 2021 2021 (in millions) Billed receivables $ 181.8 $ 213.4 Unbilled receivables 2.7 2.3 Gross customer receivables 184.5 215.7 Allowance for credit losses (4.1) (3.5) Receivables, net $ 180.4 $ 212.2 Deferred revenues $ 7.4 $ 5.4 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Our performance obligations are satisfied at a point in time for sales of equipment or 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. We allocate the transaction price of each contract to the performance obligations on the basis of standalone selling price and recognize revenue when control of the performance obligation transfers to the customer. 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 based typically on historical experience and known trends. We do not recognize variable consideration in the event there are uncertainties in the amount of variable consideration to be paid nor when it is probable there will be a significant reversal in the related revenue. We exclude from the measurement of the transaction price all taxes assessed by a governmental authority. We classify shipping and handling costs, such as freight to our customers’ destinations, as a component of Cost of sales. We have elected to use the practical expedient to not adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less. The revenues recognized at a point in time related to the sale of our products are recognized when the obligations of the terms of our contract are satisfied, 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 that provide assurance that the products provided will function as intended and comply with any agreed-upon specifications. These cannot be purchased separately. Costs to Obtain or Fulfill a Contract We incur certain incremental costs to obtain a contract, which primarily relate to incremental sales commissions. Our commissions are paid based on a combination of orders and shipments, and we reserve the right to claw back any commissions in case of product returns or lost collections. As the expected benefit associated with these incremental costs is generally one year or less based on the nature of the product sold and benefits received, we have applied a practical expedient and therefore do not capitalize the related costs and expense them as incurred. | |
Billed Contracts Receivable | $ 181.8 | $ 213.4 |
Deferred Revenue | 7.4 | 5.4 |
Unbilled receivables | 2.7 | 2.3 |
Total customer receivables | 184.5 | 215.7 |
Accounts Receivable, Allowance for Credit Loss, Current | 4.1 | 3.5 |
Receivables, Net, Current | $ 180.4 | $ 212.2 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Unrecognized Tax Benefits | $ 4.6 | $ 4.8 | |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | |
State income taxes, net of federal benefit | 3.90% | 4.50% | |
Tax benefits from stock compensation | (1.00%) | (0.60%) | |
Tax credits | (1.20%) | (1.40%) | |
Other | 0.50% | 1.10% |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
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 | 3.90% | 4.50% |
Valuation allowance adjustment related to stock compensation | 1.40% | 1.50% |
Tax benefits from stock compensation | (1.00%) | (0.60%) |
Tax credits | (1.20%) | (1.40%) |
Effective Income Tax Rate Reconciliation, GILTI, percent | 0.30% | 0.60% |
Other | 0.50% | 1.10% |
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | (0.70%) | (0.90%) |
Borrowing Arrangements (Narrati
Borrowing Arrangements (Narrative) (Details) - USD ($) | 3 Months Ended | ||||
Dec. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Jun. 12, 2018 | |
Outstanding letter of credit accrued fees and expenses | $ 1,400,000 | ||||
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses | 133.8 | ||||
Cash and cash equivalents | $ 223,000,000 | $ 208,900,000 | |||
Future maturities of outstanding borrowings | |||||
Line of Credit Facility, Remaining Borrowing Capacity | 133.8 | ||||
Outstanding letters of credit | 15,000,000 | ||||
Domestic Line of Credit [Member] | |||||
Revolving credit facility amount | $ (175,000,000) | ||||
Line of Credit Facility, Interest Rate at Period End | 200.00% | ||||
Future maturities of outstanding borrowings | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 175,000,000 | ||||
Potential increase size of the credit facility by an additional amount | 150,000,000 | ||||
Unsecured Debt [Member] | |||||
Long-term Debt, Gross | $ 450,000,000 | ||||
Future maturities of outstanding borrowings | |||||
Payments of debt issuance costs | $ 5,500,000 | ||||
Swing Line Loans [Member] | |||||
Revolving credit facility amount | (25,000,000) | ||||
Future maturities of outstanding borrowings | |||||
Line of Credit Facility, Maximum Borrowing Capacity | 25,000,000 | ||||
Letters Of Credit Outstanding [Member] | |||||
Revolving credit facility amount | (60,000,000) | ||||
Future maturities of outstanding borrowings | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 60,000,000 | ||||
5.5% Senior Notes | |||||
Debt Instrument, Interest Rate, Effective Percentage | 4.00% | ||||
Future maturities of outstanding borrowings | |||||
Financial Liabilities Fair Value Disclosure | $ 456,900,000 | ||||
Minimum [Member] | Domestic Line of Credit [Member] | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 37.50% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Long-term Debt [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 100.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Domestic Line of Credit [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 200.00% | ||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Domestic Line of Credit [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 225.00% | ||||
Base Rate [Member] | Maximum [Member] | Domestic Line of Credit [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 125.00% |
Borrowing Arrangements (Compone
Borrowing Arrangements (Components Of Long-Term Debt) (Details) - USD ($) | Dec. 31, 2021 | Sep. 30, 2021 |
Debt instrument | $ 452,000,000 | $ 452,200,000 |
Deferred financing costs | (5,100,000) | (5,300,000) |
Current portion of long-term debt | (1,000,000) | (1,000,000) |
Long-term debt | 445,900,000 | 445,900,000 |
Line of Credit Facility, Remaining Borrowing Capacity | 133.8 | |
Unsecured Debt [Member] | ||
5.5% Senior Notes | 450,000,000 | 450,000,000 |
Other [Member] | ||
Debt instrument | $ 2,000,000 | $ 2,200,000 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - Foreign Exchange Contract [Member] - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Derivative [Line Items] | ||
Other noncurrent liabilities | $ 1.1 | |
Derivative Asset, Noncurrent | $ 1.2 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Defined Benefit Plan, Service Cost | $ 0.3 | $ 0.4 |
Defined Benefit Plan, Interest Cost | 2.4 | 2.5 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (3.8) | (3.9) |
Amortization of actuarial net loss | 0.4 | 0.6 |
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | (1) | (0.8) |
Net periodic benefit cost | $ (0.7) | $ (0.4) |
Stock-based Compensation Plan_2
Stock-based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Millions | Nov. 30, 2021 | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)shares |
Share-based Payment Arrangement, Expense | $ | $ 2.6 | $ 2.5 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ | $ 14.5 | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 277,344 | 258,522 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.70% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.76% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 9 months 29 days | ||
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 | 1.70% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.76% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 9 months 29 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 141,135 | ||
Phantom Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other than Option, Nonvested, Intrinsic Value | $ / shares | $ 14.40 | ||
Share-based compensation liability | $ | $ 1.9 | ||
Granted, shares | 199,549 | ||
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 | $ 13.64 | ||
Granted, shares | 199,549 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 240,412 | ||
Share-based compensation, units awarded but not yet granted | 57,627 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 130,018 | ||
Granted, shares | 135,129 | ||
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 | $ 13.64 | ||
Granted, shares | 135,129 | ||
Market Based Performance Shares | |||
Granted, shares | 230,089 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 15.76 | ||
Granted, shares | 230,089 | ||
Equity Option | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.62% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.33% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years | ||
Granted, shares | 457,482 | ||
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 | 1.62% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ / shares | $ 3.43 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.33% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years | ||
Granted, shares | 457,482 | ||
Minimum [Member] | Performance Shares [Member] | |||
Performance Factors | 0 | ||
Minimum [Member] | Market Based Performance Shares | |||
Performance Factors | 0 | ||
Maximum [Member] | Performance Shares [Member] | |||
Performance Factors | 2 | ||
Maximum [Member] | Market Based Performance Shares | |||
Performance Factors | 2 | ||
Share-based Payment Arrangement, Tranche Two [Member] | Performance Shares [Member] | |||
Granted, shares | 57,627 | ||
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 | $ 13.81 | ||
Granted, shares | 57,627 |
Stock-based Compensation Plan_3
Stock-based Compensation Plans Grants Table (Details) - USD ($) $ / shares in Units, $ in Thousands | Nov. 30, 2021 | Dec. 31, 2021 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 10,600 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.70% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.76% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 2 years 9 months 29 days | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 135,129 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 13.64 | |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 1,800 | |
Employee Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 38,069 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.01 | |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 100 | |
Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 199,549 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 13.64 | |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 2,700 | |
Market Based Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 230,089 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 15.76 | |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 3,600 | |
Equity Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 457,482 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 3.43 | |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 1,600 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 1.62% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 1.33% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 years | |
Share-based Payment Arrangement, Tranche Two [Member] | Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted, shares | 57,627 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 13.81 | |
Shares Granted, Value, Share-based Payment Arrangement, before Forfeiture | $ 800 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Sep. 30, 2021 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 207.3 | $ 227.5 |
Inventories: | ||
Purchased components and raw material | 125.9 | 100.9 |
Work in process | 41.5 | 41.6 |
Finished goods | 42.3 | 42.2 |
Inventories, net | 209.7 | 184.7 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid Expense | 13.8 | 12.8 |
Nontrade Receivables | 10 | 10.7 |
Maintenance and repair tooling | 2.7 | 2.9 |
Income taxes | 0.2 | 0.2 |
Other Receivables | 0.8 | 0.8 |
Other | 3.1 | 1.9 |
Other | 30.6 | 29.3 |
Property, plant and equipment: | ||
Land | 5.5 | 6.1 |
Buildings | 84.4 | 84.6 |
Machinery and equipment | 436.2 | 433.3 |
Construction in progress | 91.5 | 83.7 |
Property, plant and equipment, gross | 617.6 | 607.7 |
Accumulated depreciation | (330.7) | (324.3) |
Property, plant and equipment net | 286.9 | 283.4 |
Other Assets, Noncurrent [Abstract] | ||
Operating lease, Right-of-Use asset | 26.4 | 27.1 |
us-Maintenance, repair and tooling supplies | 19.8 | 19.3 |
Nontrade Receivables, Noncurrent | 2.7 | 2.7 |
Assets for Plan Benefits, Defined Benefit Plan | 17.9 | 16.8 |
Notes Receivable, Related Parties, Noncurrent | 1.8 | 1.8 |
Debt Issuance Costs, Noncurrent, Net | 1.2 | 1.3 |
Other Assets, Miscellaneous, Noncurrent | 4.2 | 4.3 |
Other noncurrent assets | 74 | 73.3 |
Goodwill, Foreign Currency Translation Gain (Loss) | 2.8 | |
Goodwill | 117.7 | $ 115.1 |
Goodwill, Acquired During Period | $ (0.2) |
Schedule of Accrued Liabilities
Schedule of Accrued Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Sep. 30, 2021 |
Other current liabilities: | ||
Compensation and benefits | $ 28.4 | $ 44.6 |
Customer rebates | 27.4 | 19.6 |
Warranty | 5.6 | 6.7 |
Deferred Revenue | 7.4 | 5.4 |
Customer Refund Liability, Current | 5.2 | 6 |
Accrual for Taxes Other than Income Taxes | 4.6 | 4.4 |
Operating lease liability, current | 3.6 | 4 |
Estimated Litigation Liability, Current | 2.7 | 2.6 |
CARES Act deferral, current portion | 3.6 | 3.6 |
Restructuring reserve, current | 3.1 | 3.1 |
Environmental | 0 | 1.2 |
Interest Payable | 0.8 | 6.2 |
Accrued Income Taxes | 10.8 | 8.5 |
Other Liabilities, Current | 11.2 | 11.2 |
Accrued liabilities | 114.4 | 127.1 |
Other Liabilities, Noncurrent [Abstract] | ||
Operating lease liability, noncurrent | 23.8 | 24.6 |
Standard Product Warranty Accrual, Noncurrent | 3.1 | 3 |
CARES Act Deferrals | 0 | 3.6 |
Transition Tax Liability | 4.7 | 4.7 |
Unrecognized Tax Benefits | 4.6 | 4.8 |
New market tax credit liabilities | 3.9 | 3.9 |
Workers' Compensation Liability, Noncurrent | 8.1 | 7.9 |
Asset Retirement Obligation | 3.6 | 3.6 |
Grant yet to be earned | 2.5 | 2.5 |
Other Accrued Liabilities, Noncurrent | 2.8 | 3.4 |
Other Liabilities, Noncurrent, Total | $ 57.1 | $ 62 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | $ 2.4 | $ 1.4 |
Operating income | 28.9 | 27.8 |
Depreciation, Depletion and Amortization | 15.2 | 14.7 |
Payments to Acquire Productive Assets | 11 | 15.6 |
Net sales | 272.3 | 237.4 |
Mueller Co. [Member] | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | 0 | 0.1 |
Operating income | 31.3 | 23.1 |
Depreciation, Depletion and Amortization | 7.4 | 7.4 |
Payments to Acquire Productive Assets | 9.4 | 12.3 |
Net sales | 154.9 | 128.8 |
Mueller Co. [Member] | Central Region [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | 40.5 | 35 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | 2.3 | 1.3 |
Operating income | (13.8) | (12.3) |
Depreciation, Depletion and Amortization | 0.1 | 0.1 |
Payments to Acquire Productive Assets | 0 | 0.1 |
Mueller Technologies [Member] | ||
Segment Reporting Information [Line Items] | ||
Restructuring and other charges | 0.1 | 0 |
Operating income | 11.4 | 17 |
Depreciation, Depletion and Amortization | 7.7 | 7.2 |
Payments to Acquire Productive Assets | 1.6 | 3.2 |
Net sales | 117.4 | 108.6 |
Mueller Technologies [Member] | Central Region [Member] | ||
Segment Reporting Information [Line Items] | ||
Net sales | $ 28.8 | $ 26.8 |
Segment Information (Schedule O
Segment Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Net sales | $ 272.3 | $ 237.4 | |
Operating income | 28.9 | 27.8 | |
Depreciation and amortization | 15.2 | 14.7 | |
Restructuring and other charges | 2.4 | 1.4 | |
Payments to Acquire Productive Assets | 11 | 15.6 | |
Total assets | 1,493.5 | $ 1,518 | |
Intangible intangible assets, net | 386.9 | $ 392.5 | |
Mueller Co. [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 154.9 | 128.8 | |
Operating income | 31.3 | 23.1 | |
Depreciation and amortization | 7.4 | 7.4 | |
Restructuring and other charges | 0 | 0.1 | |
Payments to Acquire Productive Assets | 9.4 | 12.3 | |
Mueller Co. [Member] | Central Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 40.5 | 35 | |
Mueller Co. [Member] | Northeast Region [Member] [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 30 | 24.9 | |
Mueller Co. [Member] | Southeast Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 37.3 | 23.1 | |
Mueller Co. [Member] | Western Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 38.1 | 36.3 | |
Mueller Co. [Member] | CANADA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 7.9 | 5.7 | |
Mueller Co. [Member] | Other International Locations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 1.1 | 3.8 | |
Mueller Co. [Member] | UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Net sales | 145.9 | 119.3 | |
Mueller Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 117.4 | 108.6 | |
Operating income | 11.4 | 17 | |
Depreciation and amortization | 7.7 | 7.2 | |
Restructuring and other charges | 0.1 | 0 | |
Payments to Acquire Productive Assets | 1.6 | 3.2 | |
Mueller Technologies [Member] | Central Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 28.8 | 26.8 | |
Mueller Technologies [Member] | Northeast Region [Member] [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 24.3 | 24.4 | |
Mueller Technologies [Member] | Southeast Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 25.5 | 22.6 | |
Mueller Technologies [Member] | Western Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 24.7 | 22.1 | |
Mueller Technologies [Member] | CANADA | |||
Segment Reporting Information [Line Items] | |||
Net sales | 7.6 | 6.7 | |
Mueller Technologies [Member] | Other International Locations [Member] | |||
Segment Reporting Information [Line Items] | |||
Net sales | 6.5 | 6 | |
Mueller Technologies [Member] | UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Net sales | $ 103.3 | $ 95.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2012CAD ($) | |
Loss Contingency, Damages Sought, Value | $ 10 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Feb. 21, 2022 | Feb. 10, 2022 | Jan. 27, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | |||||
Dividends declared per share, in dollars per share | $ 0.058 | $ 0.055 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends Payable, Date Declared | Jan. 27, 2022 | ||||
Dividends declared per share, in dollars per share | $ 0.058 | ||||
Dividends Payable, Date to be Paid | Feb. 21, 2022 | ||||
Dividends Payable, Date of Record | Feb. 10, 2022 |
Business Combinations and Ass_3
Business Combinations and Asset Acquisitions (Details) | 3 Months Ended |
Dec. 31, 2021USD ($) | |
Acquistions [Abstract] | |
Payments to Acquire Businesses, Net of Cash Acquired | $ 19.7 |
Receivables | 500,000 |
Inventories | 600,000 |
Other current assets | 900,000 |
Indefinite-lived Intangible Assets Acquired | 1,800,000 |
Goodwill | 11,900,000 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (800,000) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | (1,100,000) |
Consideration paid considered as cash flow used in financing | 19,500,000 |
Other Payments to Acquire Businesses | 19.5 |
Customer-Related Intangible Assets [Member] | |
Acquistions [Abstract] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,100,000 |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 2,100,000 |
Noncompete Agreements | |
Acquistions [Abstract] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 100,000 |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 100,000 |
Developed Technology Rights | |
Acquistions [Abstract] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 3,500,000 |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 3,500,000 |