Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Jun. 30, 2015 | Jul. 31, 2015 | Mar. 31, 2015 | |
Document And Entity Information [Abstract] | |||
Document Fiscal Period Focus | Q3 | ||
Document Period End Date | Jun. 30, 2015 | ||
Document Fiscal Year Focus | 2,015 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Registrant Name | Mueller Water Products, Inc. | ||
Entity Central Index Key | 1,350,593 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-Q | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 160,496,841 | ||
Entity Public Float | $ 1,553,391,965 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2015 | Sep. 30, 2014 |
Assets: | ||
Cash and cash equivalents | $ 61.4 | $ 161.1 |
Receivables, net | 166.8 | 182.1 |
Inventories | 228.6 | 198 |
Deferred income taxes | 28 | 38.6 |
Other current assets | 20.9 | 44.1 |
Total current assets | 505.7 | 623.9 |
Property, plant and equipment, net | 145.1 | 146.3 |
Identifiable intangible assets | 514.1 | 533.6 |
Other noncurrent assets | 32.5 | 13.3 |
Total assets | 1,197.4 | 1,317.1 |
Liabilities and stockholders' equity: | ||
Current portion of long-term debt | 6 | 46.2 |
Accounts payable | 83.1 | 116 |
Other current liabilities | 58.8 | 82.2 |
Total current liabilities | 147.9 | 244.4 |
Long-term debt | 491.2 | 499.4 |
Deferred income taxes | 132 | 150.4 |
Other noncurrent liabilities | 86.4 | 71.3 |
Total liabilities | 857.5 | 965.5 |
Common Stock | 1.6 | 1.6 |
Additional paid-in capital | 1,576.4 | 1,582.8 |
Accumulated deficit | (1,165.1) | (1,173.7) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (74.5) | (60.7) |
Total stockholders' equity | 338.4 | 350 |
Noncontrolling interest | 1.5 | 1.6 |
Total equity | 339.9 | 351.6 |
Total liabilities and stockholders' equity | $ 1,197.4 | $ 1,317.1 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Jun. 30, 2015 | Sep. 30, 2013 |
Statement of Financial Position [Abstract] | ||
Series A common stock, shares authorized | 600,000,000 | 600,000,000 |
Series A common stock, shares outstanding | 160,441,839 | 159,760,671 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 301 | $ 318.5 | $ 853.1 | $ 864 |
Cost of sales | 204.8 | 221.2 | 603.5 | 617.4 |
Gross profit | 96.2 | 97.3 | 249.6 | 246.6 |
Operating expenses: | ||||
Selling, general and administrative | 52.9 | 55.3 | 163.7 | 162.5 |
Provision for Doubtful Accounts | 11.6 | 0 | 11.6 | 0 |
Restructuring | 0.2 | 0.2 | 9.1 | 3 |
Total operating expenses | 64.7 | 55.5 | 184.4 | 165.5 |
Operating income | 31.5 | 41.8 | 65.2 | 81.1 |
Interest expense, net | 6.3 | 12.5 | 21.8 | 37.6 |
Loss on early extinguishment of debt | 0 | 0 | 31.3 | 0 |
Income (loss) before income taxes | 25.2 | 29.3 | 12.1 | 43.5 |
Income tax expense (benefit) | 8.7 | 10.8 | 3.5 | 14.2 |
Net income (loss) | $ 16.5 | $ 18.5 | $ 8.6 | $ 29.3 |
Net loss per basic share: | ||||
Net income (loss) per basic share | $ 0.10 | $ 0.12 | $ 0.05 | $ 0.18 |
Net loss per diluted share: | ||||
Net income (loss) per diluted share | $ 0.10 | $ 0.11 | $ 0.05 | $ 0.18 |
Weighted average shares outstanding: | ||||
Basic, in shares | 160.8 | 159.5 | 160.5 | 159 |
Diluted, in shares | 163.5 | 162.2 | 163.3 | 161.9 |
Dividends declared per share, in dollars per share | $ 0.0200 | $ 0.0175 | $ 0.0550 | $ 0.0525 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net Income (Loss) Attributable to Parent | $ 16.5 | $ 18.5 | $ 8.6 | $ 29.3 |
Other comprehensive income (loss): | ||||
Minimum pension liability | (5.2) | (4.9) | (15.7) | (14.7) |
Income tax effects | 2 | 1.9 | 6.1 | 5.7 |
Foreign currency translation | 1 | 2.1 | (4.7) | (1.9) |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 0.9 | 0 | 0.9 | 0 |
Income tax effects | (0.4) | 0 | (0.4) | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (1.7) | (0.9) | (13.8) | (10.9) |
Other Comprehensive Income (Loss), Net of Tax | (13.8) | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 14.8 | $ 17.6 | $ (5.2) | $ 18.4 |
Consolidated Statement Of Stock
Consolidated Statement Of Stockholders' Equity - 9 months ended Jun. 30, 2015 - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Noncontrolling Interest [Member] |
Balance at Sep. 30, 2014 | $ 351.6 | $ 1.6 | $ 1,582.8 | $ (1,173.7) | $ (60.7) | $ 1.6 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | (8.8) | 0 | (8.8) | 0 | 0 | 0 |
Stock repurchased under buyback program | (5) | 0 | (5) | 0 | 0 | 0 |
Stock-based compensation | 3.7 | 0 | 3.7 | 0 | 0 | 0 |
Excess tax benefit on stock option exercises | 3.2 | 0 | 3.2 | 0 | 0 | 0 |
Shares retained for employee taxes | (2.4) | 0 | 0 | 0 | 0 | |
Stock issued under stock compensation plans | 2.9 | 0 | 2.9 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | (13.8) | 0 | 0 | 0 | (13.8) | 0 |
Net Income (Loss) Attributable to Parent | 8.6 | 0 | 0 | 0 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | (0.1) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 8.5 | |||||
Balance at Jun. 30, 2015 | $ 339.9 | $ 1.6 | $ 1,576.4 | $ (1,165.1) | $ (74.5) | $ 1.5 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Income (Loss) Attributable to Parent | $ 8.6 | $ 29.3 |
Adjustments to reconcile net income (loss) to income (loss) from continuing operations: | ||
Depreciation | 21.2 | 20.3 |
Amortization | 22 | 22.2 |
Loss on Walter receivable | 11.6 | |
Loss on early extinguishment of debt | 31.3 | 0 |
Stock-based compensation expense | 3.6 | 5.2 |
Deferred income taxes | 1.1 | 13.4 |
Retirement plans | 0.4 | 1 |
Other, net | 4.8 | 3 |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables | 13 | (18.9) |
Inventories | (33.3) | 16.2 |
Other current assets and other noncurrent assets | (2) | 1.3 |
Accounts payable and other liabilities | (63.1) | (32) |
Net cash provided by (used in) operating activities | 19.2 | 61 |
Investing activities: | ||
Capital expenditures | (26.3) | (25.5) |
Acquisitions, net of cash acquired | 0.3 | 0 |
Proceeds from Sale of Productive Assets | 4.9 | 1.2 |
Early repayment of debt | (587.7) | 0 |
Net cash provided by (used in) investing activities | (21.1) | (24.3) |
Financing activities: | ||
Debt borrowings | 512.5 | 0 |
Dividends paid | (8.8) | (8.4) |
Excess tax benefit on stock option exercises | 3.2 | 0 |
Payment for stock repurchased under buyback program | (5) | 0 |
Common stock issued | 2.9 | 3.6 |
Shares retained for employee taxes | (2.4) | (3.1) |
Payments of Debt Issuance Costs | 8.5 | 0 |
Other | (0.7) | (0.1) |
Net cash used in financing activities | (94.5) | (8) |
Effect of currency exchange rate changes on cash | (3.3) | (1.4) |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||
Net change in cash and cash equivalents | (99.7) | 27.3 |
Cash and cash equivalents at beginning of period | 161.1 | 123.6 |
Cash and cash equivalents at end of period | $ 61.4 | $ 150.9 |
Organization
Organization | 9 Months Ended |
Jun. 30, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization Mueller Water Products, Inc., a Delaware corporation, together with its consolidated subsidiaries, operates in two business segments: Mueller Co. and Anvil. Mueller Co. manufactures valves for water and gas systems, including butterfly, iron gate, tapping, check, knife, plug and ball valves, as well as dry-barrel and wet-barrel fire hydrants and metering systems, and provides leak detection and pipe condition assessment products and services for the water infrastructure industry. Anvil manufactures and sources a broad range of products, including a variety of fittings, couplings, hangers and related products. The “Company,” “we,” “us” or “our” refer to Mueller Water Products, Inc. and its subsidiaries. With regard to the Company's segments, “we,” “us” or “our” may also refer to the segment being discussed. In July 2014 , Mueller Co. acquired a 49% ownership interest in an industrial valve joint venture for $1.7 million . Due to substantive control features in the operating agreement, all of the joint venture's assets, liabilities and results of operations are included in our consolidated financial statements. In the three and nine months ended June 30, 2015 , the net loss attributable to noncontrolling interest is included in selling, general and administrative expenses. Noncontrolling interest is recorded at its carrying value, which approximates fair value. 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. 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 that affect the reported amounts of assets, liabilities, sales and expenses and the disclosure of contingent assets and liabilities for the reporting periods. Actual results could differ from those estimates. All significant intercompany balances and transactions have been eliminated. In our opinion, all normal and recurring adjustments that we consider necessary for a fair financial statement presentation have been made. Certain reclassifications have been made to previously reported amounts to conform to the current presentation. The condensed consolidated balance sheet data at September 30, 2014 was derived from audited financial statements, but does not include all disclosures required by GAAP. In May 2014, the Financial Accounting Standards Board issued new guidance for the recognition of revenue. This new guidance applies to us beginning with our first quarter of 2019 and early adoption is not permitted. We are in the early stages of evaluating the impact of the adoption of this guidance on our future financial statements and related disclosures and we have not yet reached any conclusions. |
Borrowing Arrangements
Borrowing Arrangements | 9 Months Ended |
Jun. 30, 2015 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements The components of our long-term debt are presented below. June 30, September 30, 2015 2014 (in millions) ABL Agreement $ — $ — Term Loan 495.2 — Senior Unsecured Notes — 178.3 Senior Subordinated Notes — 365.0 Other 2.0 2.3 497.2 545.6 Less current portion (6.0 ) (46.2 ) Long-term debt $ 491.2 $ 499.4 ABL Agreement . At June 30, 2015 , our asset based lending agreement (“ABL Agreement”) consisted of a revolving credit facility for up to $225 million of revolving credit borrowings, swing line loans and letters of credit. The ABL Agreement permits us to increase the size of the credit facility by an additional $150 million in certain circumstances subject to adequate borrowing base availability. We may borrow up to $25 million through swing line loans and may have up to $60 million of letters of credit outstanding. Borrowings under the ABL Agreement bear interest at a floating rate equal to LIBOR, plus a margin ranging from 175 to 225 basis points, or a base rate, as defined in the ABL Agreement, plus a margin ranging from 75 to 125 basis points. At June 30, 2015 , the applicable rate was LIBOR plus 200 basis points. The ABL Agreement terminates on December 18, 2017 . We pay a commitment fee for any unused borrowing capacity under the ABL Agreement of either 37.5 basis points per annum or 25 basis points per annum, based on daily average availability during the previous calendar quarter. At June 30, 2015 , our commitment fee was 37.5 basis points. Our obligations under the ABL Agreement are secured by a first-priority perfected lien on all of our U.S. receivables and inventories, certain cash and other supporting obligations. Borrowings are not subject to any financial maintenance covenants unless excess availability is less than the greater of $22.5 million and 10% of the aggregate commitments under the ABL Agreement. Excess availability based on June 30, 2015 data, as reduced by outstanding letters of credit and accrued fees and expenses of $29.6 million , was $167.9 million . Term Loan . On November 25, 2014 , we entered into a $500.0 million senior secured term loan (“Term Loan”). We capitalized $8.5 million of debt issuance costs, which are being amortized over the term of the Term Loan using the effective interest rate method. The proceeds from the Term Loan, along with other cash, were used to prepay our 7.375% Senior Subordinated Notes (“Senior Subordinated Notes”) and 8.75% Senior Unsecured Notes (“Senior Unsecured Notes”) and to satisfy and discharge our obligations under the respective indentures. We recorded a loss on early extinguishment of debt of $31.3 million , which consisted of $25.2 million of tender and call premiums, $4.4 million of deferred finance fees and $1.7 million of unamortized discount written off. The Term Loan accrues interest at a floating rate equal to LIBOR, subject to a floor of 0.75% , plus 325 basis points. At June 30, 2015 , the weighted-average effective interest rate was 4.00% . We may voluntarily repay amounts borrowed under the Term Loan at any time. The principal amount of the Term Loan is required to be repaid in quarterly installments of $1.25 million , with any remaining principal due on November 25, 2021 . The Term Loan is guaranteed by substantially all of our U.S. subsidiaries and is secured by essentially all of our assets, although the ABL Agreement has a senior claim on certain collateral securing borrowings thereunder. The Term Loan is reported net of unamortized discount of $2.3 million . Based on quoted market prices, the outstanding Term Loan had a fair value of $497.5 million at June 30, 2015 . The Term Loan contains affirmative and negative operating covenants applicable to us and our restricted subsidiaries. We believe we were compliant with these covenants at June 30, 2015 and expect to remain in compliance through June 30, 2016 . |
Retirement Plans
Retirement Plans | 9 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Retirement Plans | Retirement Plans The components of net periodic benefit cost for our pension plans are as follows. Three months ended Nine months ended June 30, June 30, 2015 2014 2015 2014 (in millions) Service cost $ 0.5 $ 0.4 $ 1.5 $ 1.2 Interest cost 5.0 5.0 15.0 15.0 Expected return on plan assets (6.2 ) (6.0 ) (18.5 ) (17.9 ) Amortization of actuarial net loss 0.8 0.9 2.4 2.7 Net periodic benefit cost $ 0.1 $ 0.3 $ 0.4 $ 1.0 The amortization of actuarial losses, net of tax, is recorded as a component of other comprehensive loss. We contributed $1.1 million to our Canadian pension plans during the nine months ended June 30, 2015 . For financial reporting purposes, our pension plan obligations were 89% funded at September 30, 2014 . |
Stock-based Compensation Plans
Stock-based Compensation Plans | 9 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Stock-based Compensation Plans We have granted various forms of stock-based compensation, including stock options, restricted stock units and both cash-settled and stock-settled performance-based restricted stock units ("PRSUs") under our Amended and Restated 2006 Mueller Water Products, Inc. Stock Incentive Plan (the “2006 Stock Plan”). PRSUs represent a target number of units that may be paid out at the end of a multi-year award cycle consisting of annual performance periods coinciding with our fiscal years. As determined at the date of grant, PRSUs may settle in cash-value equivalent of, or directly in, shares of our common stock. Settlement will range from zero to two times the number of PRSUs granted, depending on our financial performance against predetermined targets. The cash-settled PRSUs granted in the quarter ended December 31, 2012 settled in the quarter ended December 31, 2014 for $4.0 million . The stock-settled PRSUs granted in the quarters ended December 31, 2012, 2013 and 2014 will settle in the quarters ending December 31, 2015, 2016, and 2017, respectively. The stock prices used to value the awards were $5.22 for the 2013 performance period, $8.52 for the 2014 performance period and $9.78 for the 2015 performance period. We have granted Phantom Plan awards under the Mueller Water Products, Inc. Phantom Plan (“Phantom Plan”). At June 30, 2015 , the outstanding Phantom Plan awards had a fair value of $9.10 per award and our liability for Phantom Plan awards was $2.7 million . We granted stock-based compensation awards under the 2006 Stock Plan, the Mueller Water Products, Inc. 2006 Employee Stock Purchase Plan and the Phantom Plan during the nine months ended June 30, 2015 as follows. Number granted Weighted average grant date fair value per instrument Total grant date fair value (in millions) Quarter ended December 31, 2014: Restricted stock units 378,036 $ 9.78 $ 3.7 Employee stock purchase plan instruments 51,574 1.89 0.1 Phantom Plan awards 289,524 9.78 2.8 PRSUs 240,691 9.78 2.4 Quarter ended March 31, 2015: Restricted stock units 40,617 9.97 0.4 Non-qualified stock options 97,119 5.93 0.6 Employee stock purchase plan instruments 56,964 1.96 0.1 Quarter ended June 30, 2015: Employee stock purchase plan instruments 49,010 2.28 0.1 $ 10.2 We recorded stock-based compensation expense of $0.6 million and $2.1 million during the three months ended June 30, 2015 and 2014 , respectively, and $5.9 million and $8.2 million during the nine months ended June 30, 2015 and 2014 , respectively. At June 30, 2015 , there was approximately $5.1 million of unrecognized compensation expense related to stock-based awards. We excluded 1,021,028 and 1,117,275 of stock-based compensation instruments from the calculations of diluted earnings per share for the quarters ended June 30, 2015 and 2014 , respectively, and 993,148 and 1,103,986 for the nine months ended June 30, 2015 and 2014 , respectively, since their inclusion would have been antidilutive. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Jun. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Selected supplemental balance sheet information is presented below. June 30, September 30, 2015 2014 (in millions) Inventories: Purchased components and raw material $ 80.9 $ 72.0 Work in process 41.1 34.5 Finished goods 106.6 91.5 $ 228.6 $ 198.0 Property, plant and equipment: Land $ 9.4 $ 9.6 Buildings 78.1 78.0 Machinery and equipment 345.2 332.9 Construction in progress 17.0 18.7 449.7 439.2 Accumulated depreciation (304.6 ) (292.9 ) $ 145.1 $ 146.3 Other current liabilities: Compensation and benefits $ 29.1 $ 39.5 Customer rebates 11.9 16.9 Taxes other than income taxes 4.1 4.7 Warranty 2.6 2.6 Environmental 2.2 0.1 Income taxes 0.8 0.7 Interest 0.8 10.7 Restructuring 0.1 0.9 Other 7.2 6.1 $ 58.8 $ 82.2 Gross liabilities for unrecognized income tax benefits $ 2.7 $ 2.7 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented below. Minimum pension liability, net of tax Foreign currency translation Derivative instruments, net of tax Total Balance at September 30, 2014 $ (63.1 ) $ 2.4 $ — $ (60.7 ) Current period other comprehensive income (loss) (9.6 ) (4.7 ) 0.5 (13.8 ) Balance at June 30, 2015 $ (72.7 ) $ (2.3 ) $ 0.5 $ (74.5 ) Accumulated other comprehensive loss is presented below. Minimum pension liability, net of tax Foreign currency translation Derivative instruments, net of tax Total Balance at September 30, 2014 $ (63.1 ) $ 2.4 $ — $ (60.7 ) Current period other comprehensive income (loss) (9.6 ) (4.7 ) 0.5 (13.8 ) Balance at June 30, 2015 $ (72.7 ) $ (2.3 ) $ 0.5 $ (74.5 ) |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information Summarized financial information for our segments is presented below. Three months ended Nine months ended June 30, June 30, 2015 2014 2015 2014 (in millions) Net sales, excluding intercompany: Mueller Co. $ 211.8 $ 214.0 $ 575.7 $ 570.3 Anvil 89.2 104.5 277.4 293.7 $ 301.0 $ 318.5 $ 853.1 $ 864.0 Intercompany sales: Mueller Co. $ 1.8 $ 1.6 $ 5.4 $ 4.8 Anvil — — 0.1 0.1 $ 1.8 $ 1.6 $ 5.5 $ 4.9 Operating income (loss): Mueller Co. $ 43.2 $ 42.2 $ 80.4 $ 84.3 Anvil 7.0 9.5 21.4 24.3 Corporate (1) (18.7 ) (9.9 ) (36.6 ) (27.5 ) $ 31.5 $ 41.8 $ 65.2 $ 81.1 Depreciation and amortization: Mueller Co. $ 10.8 $ 10.4 $ 32.1 $ 31.6 Anvil 3.6 3.5 10.8 10.6 Corporate 0.1 0.1 0.3 0.3 $ 14.5 $ 14.0 $ 43.2 $ 42.5 Restructuring: Mueller Co. $ 0.1 $ 0.2 $ 8.3 $ 1.9 Anvil 0.2 — 0.4 1.1 Corporate (0.1 ) — 0.4 — $ 0.2 $ 0.2 $ 9.1 $ 3.0 Capital expenditures: Mueller Co. $ 6.7 $ 5.0 $ 17.7 $ 15.9 Anvil 2.5 2.2 8.5 9.4 Corporate 0.1 — 0.1 0.2 $ 9.3 $ 7.2 $ 26.3 $ 25.5 (1) Includes an $11.6 million loss on the Walter tax-related receivable in the three months and nine months ended June 30, 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2015 | |
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. 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 will have a material adverse effect on our business or prospects. Environmental. We are subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the operations at many of our properties and with respect to remediating environmental conditions that may exist at our own or other properties. We strive to comply with federal, state and local environmental laws and regulations. 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 sold our Mueller Co. and Anvil businesses to the prior owners of these businesses 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. In September 1987, we implemented an Administrative Consent Order (“ACO”) for our Burlington, New Jersey property, which was required under the New Jersey Environmental Cleanup Responsibility Act (now known as the Industrial Site Recovery Act). The ACO required soil and ground-water cleanup, and we completed, and received final approval on, the soil cleanup required by the ACO. We retained this property upon the sale of our former U.S. Pipe segment. We expect ground-water issues as well as issues associated with the demolition of former manufacturing facilities at this site will continue and remediation by us could be required. Long-term ground-water monitoring may also be required, but we do not know how long such monitoring would be required and do not believe monitoring or further remediation costs, if any, will have a material adverse effect on our financial statements. 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. Walter Energy . Each member of the Walter Energy consolidated group, which included us through December 14, 2006, is jointly and severally liable for the federal income tax liability of each other member of the consolidated group for any year in which it is a member of the group at any time during such year. Accordingly, we could be liable in the event any such federal income tax liability is incurred, and not discharged, by any other member of the Walter Energy consolidated group for any period during which we were included in the Walter Energy consolidated group. Walter Energy effectively controlled all of our tax decisions for periods during which we were a member of the Walter Energy consolidated group for federal income tax purposes and certain combined, consolidated or unitary state and local income tax groups. Under the terms of an income tax allocation agreement between us and Walter Energy, dated May 26, 2006, we generally compute our tax liability on a stand-alone basis, but Walter Energy has sole authority to respond to and conduct all tax proceedings (including tax audits) relating to our federal income and combined state tax returns, to file all such tax returns on our behalf and to determine the amount of our liability to (or entitlement to payment from) Walter Energy for such previous periods. A dispute exists with the IRS regarding federal income taxes allegedly owed by the Walter Energy consolidated group from multiple tax years. According to Walter Energy's quarterly report on Form 10-Q filed with the SEC on May 5, 2015 (the "Walter Form 10-Q"), at March 31, 2015, Walter Energy had $33.0 million of accruals for unrecognized tax benefits on the matters subject to disposition. Walter Energy has stated it believes that all of its current and prior tax filing positions have substantial merit and intends to vigorously defend any tax claims asserted. In addition, Walter Energy stated in the Walter Form 10-Q that it believes that it has sufficient accruals to address any claims, including interest and penalties, and does not believe that any potential difference between the final settlements and the amounts accrued will be material. Walter Energy filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code in July 2015. We are currently monitoring the filing inasmuch as we could be liable for all or a portion of this federal income tax liability if it is incurred, and not discharged, for any period during which we were included in the Walter Energy consolidated group. In accordance with the income tax allocation agreement, Walter Energy used certain tax assets of one of our predecessors in its calendar 2006 tax return for which payment to us is required. The income tax allocation agreement only requires Walter Energy to make the payment upon realization of this tax benefit by receiving a refund or otherwise offsetting taxes due. Walter Energy currently owes us $11.6 million , which includes recent tax audit and amended tax return adjustments, that is payable pending completion of an IRS audit of Walter Energy's 2006 tax year and the related refund of tax from that year. As a result of the aforementioned Chapter 11 petition, we recorded a provision for doubtful accounts of $11.6 million in the quarter ended June 30, 2015. 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 2012 divestiture of our U.S. Pipe segment, 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. Anvil is in a dispute with Victaulic Company (“Victaulic”) regarding two patents held by Victaulic, U.S. Patent 7,086,131 (the “131 Patent”) and U.S. Patent 7,712,796 (the “796 Patent” and collectively with the 131 Patent, the “U.S. Patents”), which Anvil believes are invalid. The U.S. Patents potentially relate to a coupling product currently manufactured and marketed by Anvil. Anvil filed multiple reexamination requests with the U.S. Patent and Trademark Office (the “PTO”) regarding the U.S. Patents, and the PTO granted the requests. Although the PTO examiner initially invalidated most of the claims of the 796 Patent, the PTO examiner affirmed the validity of the 796 Patent in September 2014. In April 2015, the PTO examiner invalidated the original claim of the 131 Patent but found several claims added during reexamination that appear substantially similar to those included in the 796 Patent patentable. The PTO examiners' decisions with respect to the U.S. Patents have been appealed by Anvil and Victaulic. Relatedly, Anvil and Victaulic are engaged in lawsuits in the U.S. District Court for the Northern District of Georgia and in the Federal Court of Toronto, Ontario, Canada. The Georgia District Court litigation has been stayed pending the final outcome of the ongoing reexaminations of the U.S. Patents by the PTO. Although Anvil intends to continue to vigorously contest the validity of the U.S. Patents, as well as Victaulic’s related patents in Canada, and to defend itself against any counterclaims made by Victaulic, the probability of a favorable or unfavorable outcome with respect to these proceedings is unknown. Any number of potential outcomes is possible due to the multiple claims associated with the proceedings, each of which is in different stages and subject to appeal. Further, there are a number of highly complex factual and technical issues involved, and it is uncertain whether a favorable or unfavorable result with respect to a particular ruling or proceeding will impact the other matters in controversy. Accordingly, we have not recorded any accrual with respect to these proceedings and a range of liability is not reasonably estimable. We are party to a number of other lawsuits arising in the ordinary course of business, including product liability cases for products manufactured by us or third parties. 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 future financial statements cannot be predicted with certainty as any such effect depends on the amount and timing of the resolution of such matters. While the results of litigation cannot be predicted with certainty, we believe that the final outcome of such other litigation is not likely to have a materially adverse effect on our business or prospects. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 21, 2015 , our board of directors declared a dividend of $0.02 per share on our common stock, payable on or about August 20, 2015 to stockholders of record at the close of business on August 10, 2015 . |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Components of Long-Term Debt | The components of our long-term debt are presented below. June 30, September 30, 2015 2014 (in millions) ABL Agreement $ — $ — Term Loan 495.2 — Senior Unsecured Notes — 178.3 Senior Subordinated Notes — 365.0 Other 2.0 2.3 497.2 545.6 Less current portion (6.0 ) (46.2 ) Long-term debt $ 491.2 $ 499.4 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for our pension plans are as follows. Three months ended Nine months ended June 30, June 30, 2015 2014 2015 2014 (in millions) Service cost $ 0.5 $ 0.4 $ 1.5 $ 1.2 Interest cost 5.0 5.0 15.0 15.0 Expected return on plan assets (6.2 ) (6.0 ) (18.5 ) (17.9 ) Amortization of actuarial net loss 0.8 0.9 2.4 2.7 Net periodic benefit cost $ 0.1 $ 0.3 $ 0.4 $ 1.0 |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Share-based Compensation [Abstract] | |
Schedule of Share-based Compensation, Activity [Table Text Block] | Number granted Weighted average grant date fair value per instrument Total grant date fair value (in millions) Quarter ended December 31, 2014: Restricted stock units 378,036 $ 9.78 $ 3.7 Employee stock purchase plan instruments 51,574 1.89 0.1 Phantom Plan awards 289,524 9.78 2.8 PRSUs 240,691 9.78 2.4 Quarter ended March 31, 2015: Restricted stock units 40,617 9.97 0.4 Non-qualified stock options 97,119 5.93 0.6 Employee stock purchase plan instruments 56,964 1.96 0.1 Quarter ended June 30, 2015: Employee stock purchase plan instruments 49,010 2.28 0.1 $ 10.2 |
Supplemental Balance Sheet In20
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Selected Supplemental Balance Sheet Information [Table Text Block] | ental balance sheet information is presented below. June 30, September 30, 2015 2014 (in millions) Inventories: Purchased components and raw material $ 80.9 $ 72.0 Work in process 41.1 34.5 Finished goods 106.6 91.5 $ 228.6 $ 198.0 Property, plant and equipment: Land $ 9.4 $ 9.6 Buildings 78.1 78.0 Machinery and equipment 345.2 332.9 Construction in progress 17.0 18.7 449.7 439.2 Accumulated depreciation (304.6 ) (292.9 ) $ 145.1 $ 146.3 Other current liabilities: Compensation and benefits $ 29.1 $ 39.5 Customer rebates 11.9 16.9 Taxes other than income taxes 4.1 4.7 Warranty 2.6 2.6 Environmental 2.2 0.1 Income taxes 0.8 0.7 Interest 0.8 10.7 Restructuring 0.1 0.9 Other 7.2 6.1 $ 58.8 $ 82.2 Gross liabilities for unrecognized income tax benefits $ 2.7 $ 2.7 |
Accumulated Other Comprehensi21
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss is presented below. Minimum pension liability, net of tax Foreign currency translation Derivative instruments, net of tax Total Balance at September 30, 2014 $ (63.1 ) $ 2.4 $ — $ (60.7 ) Current period other comprehensive income (loss) (9.6 ) (4.7 ) 0.5 (13.8 ) Balance at June 30, 2015 $ (72.7 ) $ (2.3 ) $ 0.5 $ (74.5 ) Accumulated other comprehensive loss is presented below. Minimum pension liability, net of tax Foreign currency translation Derivative instruments, net of tax Total Balance at September 30, 2014 $ (63.1 ) $ 2.4 $ — $ (60.7 ) Current period other comprehensive income (loss) (9.6 ) (4.7 ) 0.5 (13.8 ) Balance at June 30, 2015 $ (72.7 ) $ (2.3 ) $ 0.5 $ (74.5 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule of Revenue from External Customers and Long-Lived Assets, by Geographical Areas | |
Schedule Of Selected Supplemental Balance Sheet Information | Summarized financial information for our segments is presented below. Three months ended Nine months ended June 30, June 30, 2015 2014 2015 2014 (in millions) Net sales, excluding intercompany: Mueller Co. $ 211.8 $ 214.0 $ 575.7 $ 570.3 Anvil 89.2 104.5 277.4 293.7 $ 301.0 $ 318.5 $ 853.1 $ 864.0 Intercompany sales: Mueller Co. $ 1.8 $ 1.6 $ 5.4 $ 4.8 Anvil — — 0.1 0.1 $ 1.8 $ 1.6 $ 5.5 $ 4.9 Operating income (loss): Mueller Co. $ 43.2 $ 42.2 $ 80.4 $ 84.3 Anvil 7.0 9.5 21.4 24.3 Corporate (1) (18.7 ) (9.9 ) (36.6 ) (27.5 ) $ 31.5 $ 41.8 $ 65.2 $ 81.1 Depreciation and amortization: Mueller Co. $ 10.8 $ 10.4 $ 32.1 $ 31.6 Anvil 3.6 3.5 10.8 10.6 Corporate 0.1 0.1 0.3 0.3 $ 14.5 $ 14.0 $ 43.2 $ 42.5 Restructuring: Mueller Co. $ 0.1 $ 0.2 $ 8.3 $ 1.9 Anvil 0.2 — 0.4 1.1 Corporate (0.1 ) — 0.4 — $ 0.2 $ 0.2 $ 9.1 $ 3.0 Capital expenditures: Mueller Co. $ 6.7 $ 5.0 $ 17.7 $ 15.9 Anvil 2.5 2.2 8.5 9.4 Corporate 0.1 — 0.1 0.2 $ 9.3 $ 7.2 $ 26.3 $ 25.5 (1) Includes an $11.6 million loss on the Walter tax-related receivable in the three months and nine months ended June 30, 2015 . |
Organization (Details)
Organization (Details) $ in Millions | Jul. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2014USD ($) |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | 2 | ||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.00% | ||
Payments to Acquire Interest in Joint Venture | $ 1.7 |
Discontinued Operations, Assets
Discontinued Operations, Assets Held for Sale and Divestitures (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Restructuring | $ 0.2 | $ 0.2 | $ 9.1 | $ 3 | ||
Net sales | $ 301 | 318.5 | 853.1 | 864 | ||
Multiemployer Plans, Withdrawal Obligation | $ 0.9 | $ 0.9 | ||||
Gain (Loss) on Sale of Assets and Asset Impairment Charges | $ 2.5 | |||||
St. Jerome [Member] | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Restructuring | 7.2 | |||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 2.5 | |||||
Environmental Remediation Expense | 2.3 | |||||
Severance Costs | $ 2.4 | |||||
Net sales | $ 11.5 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Sep. 30, 2014 |
Income Tax Disclosure [Abstract] | ||
Unrecognized Tax Benefits | $ 2.7 | $ 2.7 |
Income Taxes (Parenthetical) (D
Income Taxes (Parenthetical) (Details) $ in Millions | 12 Months Ended |
Sep. 30, 2014USD ($) | |
Income Tax Examination [Line Items] | |
Income Tax Examination, Penalties and Interest Expense | $ 0 |
Borrowing Arrangements (Narrati
Borrowing Arrangements (Narrative) (Details) - USD ($) $ in Thousands | Apr. 07, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 |
Derivative, Inception Date | Apr. 7, 2015 | ||||||
Cash and cash equivalents | $ 61,400 | $ 150,900 | $ 61,400 | $ 150,900 | $ 161,100 | $ 123,600 | |
Future maturities of outstanding borrowings | |||||||
Loss on early extinguishment of debt | 0 | $ 0 | 31,300 | 0 | |||
Gain (Loss) on Repurchase of Debt Instrument | (25,200) | ||||||
Write off of Deferred Debt Issuance Cost | 4,400 | ||||||
Write off of Unamortized Discount | 1,700 | ||||||
Payments of Debt Issuance Costs | 8,500 | $ 0 | |||||
Debt Instrument, Unamortized Discount | 2,300 | 2,300 | |||||
Domestic Line of Credit [Member] | |||||||
Revolving credit facility amount | $ (225,000) | (225,000) | |||||
Potential increase size of the credit facility by an additional amount | $ 150,000 | ||||||
Line of Credit Facility, Interest Rate at Period End | 20000.00% | 20000.00% | |||||
Agreement termination date | Dec. 18, 2017 | ||||||
Aggregate commitments availability | $ 22,500 | ||||||
Aggregate commitments availability, percentage | 10.00% | ||||||
Outstanding letter of credit accrued fees and expenses | $ 29,600 | $ 29,600 | |||||
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses | 167,900 | $ 167,900 | |||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 3750.00% | ||||||
Swing Line Loans [Member] | |||||||
Revolving credit facility amount | (25,000) | $ (25,000) | |||||
Letters Of Credit Outstanding [Member] | |||||||
Revolving credit facility amount | (60,000) | (60,000) | |||||
Secured Debt [Member] | |||||||
Long-term Debt, Gross | $ 500,000 | $ 500,000 | |||||
Debt Instrument, Basis Spread on Variable Rate | 32500.00% | ||||||
Debt Instrument, Interest Rate, Effective Percentage | 4.00% | 4.00% | |||||
Debt Instrument, Periodic Payment, Principal | $ 1,250 | ||||||
Agreement termination date | Nov. 25, 2021 | ||||||
Future maturities of outstanding borrowings | |||||||
Financial Liabilities Fair Value Disclosure | $ 497,500 | $ 497,500 | |||||
Minimum [Member] | Domestic Line of Credit [Member] | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 2500.00% | ||||||
Maximum [Member] | Domestic Line of Credit [Member] | |||||||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 3750.00% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Secured Debt [Member] | |||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 0.75% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Long-term Debt [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 7500.00% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Domestic Line of Credit [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 17500.00% | ||||||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Domestic Line of Credit [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 22500.00% | ||||||
Base Rate [Member] | Maximum [Member] | Domestic Line of Credit [Member] | |||||||
Debt Instrument, Basis Spread on Variable Rate | 12500.00% |
Borrowing Arrangements (Compone
Borrowing Arrangements (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Sep. 30, 2014 |
Debt instrument | $ 497.2 | $ 545.6 |
Current portion of long-term debt | (6) | (46.2) |
Long-term debt | 491.2 | 499.4 |
Domestic Line of Credit [Member] | ||
Debt instrument | 0 | 0 |
Secured Debt [Member] | ||
Debt instrument | 495.2 | 0 |
Senior Notes [Member] | ||
Debt instrument | 0 | 178.3 |
Senior Subordinated Notes [Member] | ||
Debt instrument | 0 | 365 |
Other [Member] | ||
Debt instrument | $ 2 | $ 2.3 |
Derivative Financial Instrument
Derivative Financial Instruments (Details) - USD ($) $ in Millions | Apr. 07, 2015 | Jun. 30, 2015 | Sep. 30, 2021 | Sep. 30, 2016 |
Derivative [Line Items] | ||||
Derivative, Inception Date | Apr. 7, 2015 | |||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 0.9 | |||
Secured Debt [Member] | ||||
Derivative [Line Items] | ||||
Long-term Debt, Gross | $ 500 | |||
Debt Instrument, Interest Rate, Effective Percentage | 4.00% | |||
Debt Instrument, Basis Spread on Variable Rate | 32500.00% | |||
Scenario, Forecast [Member] | ||||
Derivative [Line Items] | ||||
HedgePeriodStart | Sep. 30, 2016 | |||
Derivative, Cap Interest Rate | 0.75% | |||
Derivative, Fixed Interest Rate | 2.341% | |||
Derivative, Amount of Hedged Item | $ 150 | |||
Derivative, Maturity Date | Sep. 30, 2021 | |||
Scenario, Forecast [Member] | Secured Debt [Member] | ||||
Derivative [Line Items] | ||||
Long-term Debt, Gross | $ 150 | |||
Debt Instrument, Interest Rate, Effective Percentage | 5.591% |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
Decrease in accumulated other comprehensive loss net of tax | $ (9.6) | |
Defined Benefit Plan, Funded Percentage | 89.00% | |
UNITED STATES | ||
Defined Benefit Plan, Contributions by Employer | $ 1.1 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Defined Benefit Plan, Service Cost | $ 0.5 | $ 0.4 | ||
Defined Benefit Plan, Interest Cost | 5 | 5 | ||
Defined Benefit Plan, Expected Return on Plan Assets | (6.2) | (6) | ||
Amortization of actuarial net loss | 0.8 | 0.9 | ||
Net periodic benefit cost | $ 0.1 | $ 0.3 | $ 0.4 | $ 1 |
Pension Plan [Member] | ||||
Defined Benefit Plan, Service Cost | 1.5 | 1.2 | ||
Defined Benefit Plan, Interest Cost | 15 | 15 | ||
Defined Benefit Plan, Expected Return on Plan Assets | (18.5) | (17.9) | ||
Amortization of actuarial net loss | $ (2.4) | $ (2.7) |
Stock-based Compensation Plan32
Stock-based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015USD ($)$ / sharesshares | Dec. 31, 2014shares | Jun. 30, 2014USD ($)shares | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($)shares | Sep. 30, 2014$ / shares | Sep. 30, 2013$ / shares | |
Allocated Share-based Compensation Expense | $ 0.6 | $ 2.1 | $ 5.9 | $ 8.2 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 5.1 | $ 5.1 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | shares | 1,021,028 | 1,117,275 | 993,148 | 1,103,986 | |||
Phantom Share Units (PSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 289,524 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share | $ / shares | $ 9.10 | $ 9.10 | |||||
Share-based compensation liability | $ 2.7 | $ 2.7 | |||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | shares | 240,691 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ / shares | $ 9.78 | $ 9.78 | $ 8.52 | $ 5.22 | |||
Cash-settled Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Share-based Liabilities Paid | $ 4 | ||||||
Minimum [Member] | Performance Shares [Member] | |||||||
Performance Factor | 0 | ||||||
Maximum [Member] | Performance Shares [Member] | |||||||
Performance Factor | 2 |
Stock-based Compensation Plan33
Stock-based Compensation Plans Grants Table - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Granted, Value, Share-based Compensation, Gross | $ 10.2 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 40,617 | 378,036 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 9.97 | $ 9.78 | ||
Stock Granted, Value, Share-based Compensation, Gross | $ 0.4 | $ 3.7 | ||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 97,119 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 5.93 | |||
Stock Granted, Value, Share-based Compensation, Gross | $ 0.6 | |||
Employee Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 49,010 | 56,964 | 51,574 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 2.28 | $ 1.96 | $ 1.89 | |
Stock Granted, Value, Share-based Compensation, Gross | $ 0.1 | $ 0.1 | $ 0.1 | |
Phantom Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 289,524 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 9.78 | |||
Stock Granted, Value, Share-based Compensation, Gross | $ 2.8 | |||
Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 240,691 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 9.78 | |||
Stock Granted, Value, Share-based Compensation, Gross | $ 2.4 |
Supplemental Balance Sheet In34
Supplemental Balance Sheet Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Jun. 30, 2015 | Sep. 30, 2014 |
Unrecognized Tax Benefits | $ 2.7 | $ 2.7 |
Inventories: | ||
Purchased components and raw material | 80.9 | 72 |
Work in process | 41.1 | 34.5 |
Finished goods | 106.6 | 91.5 |
Inventories, net | 228.6 | 198 |
Property, plant and equipment: | ||
Land | 9.4 | 9.6 |
Buildings | 78.1 | 78 |
Machinery and equipment | 345.2 | 332.9 |
Construction in progress | 17 | 18.7 |
Property, plant and equipment, gross | 449.7 | 439.2 |
Accumulated depreciation | (304.6) | (292.9) |
Property, plant and equipment net | 145.1 | 146.3 |
Other current liabilities: | ||
Compensation and benefits | 29.1 | 39.5 |
Customer rebates | 11.9 | 16.9 |
Interest | 0.8 | 10.7 |
Taxes other than income taxes | 4.1 | 4.7 |
Warranty | 2.6 | 2.6 |
Environmental | 2.2 | 0.1 |
Income taxes | 0.8 | 0.7 |
Restructuring | 0.1 | 0.9 |
Other | 7.2 | 6.1 |
Other current liabilities | $ 58.8 | $ 82.2 |
Accumulated Other Comprehensi35
Accumulated Other Comprehensive Loss (Schedule Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | $ (63.1) | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | 2.4 | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 0 | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (74.5) | (74.5) | $ (60.7) | ||
Minimum pension liability, net of tax | (9.6) | ||||
Foreign currency translation | 1 | $ 2.1 | (4.7) | $ (1.9) | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 0.5 | ||||
Other Comprehensive Income (Loss), Net of Tax | (13.8) | ||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | (72.7) | (72.7) | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (2.3) | (2.3) | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | 0.5 | 0.5 | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (74.5) | $ (74.5) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 9 Months Ended |
Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | |
Number of Reportable Segments | 2 |
Segment Information (Schedule O
Segment Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Segment Reporting Information [Line Items] | |||||
Net sales, excluding intercompany | $ 301 | $ 318.5 | $ 853.1 | $ 864 | |
2,013 | 1.8 | 1.6 | 5.5 | 4.9 | |
Operating income | 31.5 | 41.8 | 65.2 | 81.1 | |
Depreciation and amortization | 14.5 | 14 | 43.2 | 42.5 | |
Restructuring | 0.2 | 0.2 | 9.1 | 3 | |
Payments to Acquire Productive Assets | 9.3 | 7.2 | 26.3 | 25.5 | |
Total assets | 1,197.4 | 1,197.4 | $ 1,317.1 | ||
Intangible intangible assets, net | 514.1 | 514.1 | $ 533.6 | ||
Mueller Co. [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, excluding intercompany | 211.8 | 214 | 575.7 | 570.3 | |
2,013 | 1.8 | 1.6 | 5.4 | 4.8 | |
Operating income | 43.2 | 42.2 | 80.4 | 84.3 | |
Depreciation and amortization | 10.8 | 10.4 | 32.1 | 31.6 | |
Restructuring | 0.1 | 0.2 | 8.3 | 1.9 | |
Payments to Acquire Productive Assets | 6.7 | 5 | 17.7 | 15.9 | |
Anvil [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, excluding intercompany | 89.2 | 104.5 | 277.4 | 293.7 | |
2,013 | 0 | 0 | 0.1 | 0.1 | |
Operating income | 7 | 9.5 | 21.4 | 24.3 | |
Depreciation and amortization | 3.6 | 3.5 | 10.8 | 10.6 | |
Restructuring | 0.2 | 0 | 0.4 | 1.1 | |
Payments to Acquire Productive Assets | 2.5 | 2.2 | 8.5 | 9.4 | |
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | (18.7) | (9.9) | (36.6) | (27.5) | |
Depreciation and amortization | 0.1 | 0.1 | 0.3 | 0.3 | |
Restructuring | (0.1) | 0 | 0.4 | 0 | |
Payments to Acquire Productive Assets | $ 0.1 | $ 0 | $ 0.1 | $ 0.2 |
Commitments and Contingencies (
Commitments and Contingencies (Details) CAD in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2015CAD | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | |
Loss Contingency, Damages Sought, Value | CAD | CAD 10 | |||||
Amount payable pending completion of an IRS audit | $ 11.6 | $ 11.6 | ||||
Operating Leases | ||||||
Proceeds from Sale of Productive Assets | 4.9 | $ 1.2 | ||||
Provision for Doubtful Accounts | $ 11.6 | $ 0 | $ 11.6 | $ 0 | ||
Prior To 1995 [member] | ||||||
Walter Energy tax assessment | $ 33 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Aug. 20, 2015 | Aug. 10, 2015 | Jul. 22, 2015 | Jul. 21, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Subsequent Event [Line Items] | ||||||||
Dividends declared, in dollars per share | $ 0.0200 | $ 0.0175 | $ 0.0550 | $ 0.0525 | ||||
Subsequent Event [Member] | ||||||||
Subsequent Event [Line Items] | ||||||||
Dividends Payable, Date Declared | Jul. 21, 2015 | |||||||
Dividends declared, in dollars per share | $ 0.0200 | |||||||
Dividends Payable, Date to be Paid | Aug. 20, 2015 | |||||||
Dividends Payable, Date of Record | Aug. 10, 2015 |