Document and Entity Information
Document and Entity Information - USD ($) | 9 Months Ended | ||
Jun. 30, 2017 | Jul. 31, 2017 | Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |||
Document Fiscal Period Focus | Q3 | ||
Document Period End Date | Jun. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
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 | 158,588,182 | ||
Entity Public Float | $ 1,856,526,077 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 30, 2017 | Sep. 30, 2016 |
Assets: | ||
Cash and cash equivalents | $ 353.2 | $ 195 |
Receivables, net | 140.7 | 131.8 |
Inventories | 141.1 | 130.7 |
Other current assets | 20 | 12.7 |
Current assets held for sale | 0 | 142.1 |
Total current assets | 655 | 612.3 |
Property, plant and equipment, net | 110.1 | 108.4 |
Identifiable intangible assets | 442 | 434.6 |
Other noncurrent assets | 27.1 | 25.4 |
Noncurrent assets held for sale | 0 | 99.9 |
Total assets | 1,234.2 | 1,280.6 |
Liabilities and stockholders' equity: | ||
Current portion of long-term debt | 5.5 | 5.6 |
Accounts payable | 58.7 | 73.7 |
Other current liabilities | 46.9 | 61.7 |
Current liabilities held for sale | 0 | 44.8 |
Total current liabilities | 111.1 | 185.8 |
Long-term debt | 475.7 | 478.8 |
Deferred income taxes | 99 | 109.9 |
Other noncurrent liabilities | 86.1 | 85.8 |
Total noncurrent liabilities held for sale | 0 | 0.8 |
Total liabilities | 771.9 | 861.1 |
Common Stock | 1.6 | 1.6 |
Additional paid-in capital | 1,497.5 | 1,563.9 |
Accumulated deficit | (974.9) | (1,078.9) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (63) | (68.3) |
Total stockholders' equity | 461.2 | 418.3 |
Noncontrolling interest | 1.1 | 1.2 |
Total equity | 462.3 | 419.5 |
Total liabilities and stockholders' equity | $ 1,234.2 | $ 1,280.6 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - shares | Dec. 31, 2015 | Sep. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Series A common stock, shares authorized | 600,000,000 | 600,000,000 |
Series A common stock, shares outstanding | 0 | 161,693,051 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net sales | $ 232.2 | $ 224.7 | $ 599.1 | $ 585 |
Cost of sales | 149.7 | 141.5 | 412.5 | 394.9 |
Gross profit | 82.5 | 83.2 | 186.6 | 190.1 |
Operating expenses: | ||||
Selling, general and administrative | 38.7 | 39.4 | 114.2 | 112.2 |
Pension settlement | 0 | 16.6 | 0 | 16.6 |
Restructuring | 1.2 | 4.6 | 5 | 6.2 |
Total operating expenses | 39.9 | 60.6 | 119.2 | 135 |
Operating income | 42.6 | 22.6 | 67.4 | 55.1 |
Interest expense, net | 5.1 | 6 | 17 | 18 |
Income (loss) before income taxes | 37.5 | 16.6 | 50.4 | 37.1 |
Income tax expense (benefit) | 13.4 | 5.6 | 16.2 | 11.8 |
Income (loss) from continuing operations | 24.1 | 11 | 34.2 | 25.3 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | (0.1) | 4.5 | 69.8 | 12.1 |
Net Income (Loss) Attributable to Parent | $ 24 | $ 15.5 | $ 104 | $ 37.4 |
Continuing operations | $ 0.15 | $ 0.07 | $ 0.21 | $ 0.15 |
Discontinued operations | 0 | 0.03 | 0.44 | 0.08 |
Net loss per basic share: | ||||
Net income (loss) per basic share | 0.15 | 0.10 | 0.65 | 0.23 |
Continuing operations | 0.15 | 0.07 | 0.21 | 0.15 |
Discontinued operations | 0 | 0.02 | 0.43 | 0.08 |
Net loss per diluted share: | ||||
Net income (loss) per diluted share | $ 0.15 | $ 0.09 | $ 0.64 | $ 0.23 |
Weighted average shares outstanding: | ||||
Basic, in shares | 159.1 | 161.6 | 160.6 | 161.2 |
Diluted, in shares | 160.6 | 163.6 | 162.4 | 163.3 |
Dividends declared per share, in dollars per share | $ 0.04 | $ 0 | $ 0.11 | $ 0.07 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Net Income (Loss) Attributable to Parent | $ 24 | $ 15.5 | $ 104 | $ 37.4 |
Other comprehensive income (loss): | ||||
Minimum pension liability | 1 | 7.2 | 3 | (1.2) |
Income tax effects | (0.4) | (2.8) | (1.2) | 0.5 |
Foreign currency translation | 1.2 | (0.2) | 0.7 | 0.8 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | (0.7) | (1.8) | 4.5 | (4.9) |
Income tax effects | 0.3 | 0.7 | (1.7) | 1.9 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | 1.4 | 3.1 | 5.3 | (2.9) |
Other Comprehensive Income (Loss), Net of Tax | 5.3 | |||
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ 25.4 | $ 18.6 | $ 109.3 | $ 34.5 |
Consolidated Statement Of Stock
Consolidated Statement Of Stockholders' Equity - 9 months ended Jun. 30, 2017 - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Noncontrolling Interest [Member] |
Balance at Sep. 30, 2016 | $ 419.5 | $ 1.6 | $ 1,563.9 | $ (1,078.9) | $ (68.3) | $ 1.2 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income (Loss) Attributable to Parent | 104 | 0 | 0 | 0 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | (0.1) | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 103.9 | |||||
Dividends declared | (17.6) | 0 | (17.6) | 0 | 0 | 0 |
Stock repurchased under buyback program | 55 | 0 | 55 | 0 | 0 | 0 |
Shares retained for employee taxes | (2.7) | 0 | 0 | 0 | 0 | |
Stock-based compensation | 3.7 | 0 | 3.7 | 0 | 0 | 0 |
Stock issued under stock compensation plans | 5.2 | 0 | 5.2 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 5.3 | 0 | 0 | 0 | 5.3 | 0 |
Balance at Jun. 30, 2017 | $ 462.3 | $ 1.6 | $ 1,497.5 | $ (974.9) | $ (63) | $ 1.1 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Income (Loss) Attributable to Parent | $ 104 | $ 37.4 |
Less: income (loss) from discontinued operations | (69.8) | (12.1) |
Income (loss) from continuing operations | 34.2 | 25.3 |
Adjustments to reconcile net income (loss) to income (loss) from continuing operations: | ||
Depreciation | 14.9 | 13.4 |
Amortization | 16.2 | 15.9 |
Stock-based compensation expense | 3.5 | 3.5 |
Deferred income taxes | (14.4) | (8.5) |
Retirement plans | 2.6 | 20.2 |
Other, net | 1.4 | 3 |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables | (5.8) | (13) |
Inventories | (4.6) | 4.8 |
Other current assets and other noncurrent assets | (4) | (5.7) |
Accounts payable and other liabilities | (18.6) | (4.5) |
Net cash provided by (used in) operating activities | 25.4 | 54.4 |
Investing activities: | ||
Capital expenditures | (21.6) | (17) |
Net cash provided by (used in) investing activities | (47.4) | (16.8) |
Repayments of debt | 3.7 | 3.8 |
Financing activities: | ||
Dividends paid | (17.6) | (11.3) |
Common stock issued | 5.2 | 2.9 |
Shares retained for employee taxes | (2.7) | (3.2) |
Other | 0.2 | (0.3) |
Net cash used in financing activities | (74.6) | (15.8) |
Operating activities | (42.5) | 19.2 |
Investing activities | 297.2 | (5.6) |
Financing activities | (0.1) | 0 |
Net cash provided by (used in) discontinued operations | 254.6 | 13.6 |
Effect of currency exchange rate changes on cash | 0.2 | (0.2) |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||
Net change in cash and cash equivalents | 158.2 | 35.2 |
Cash and cash equivalents at beginning of period | 195 | 113.1 |
Cash and cash equivalents at end of period | 353.2 | |
Proceeds from sales of assets | 0.2 | 0.2 |
Business acquisitions, net of cash acquired | 26 | 0 |
Deferred financing costs | 1 | 0.1 |
Stock repurchased under buyback program | $ 55 | $ 0 |
Organization
Organization | 9 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Note 1. Organization Mueller Water Products, Inc., a Delaware corporation, together with its consolidated subsidiaries, operates in two business segments: Mueller Co. and Mueller Technologies. 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. Mueller Technologies offers metering systems, leak detection, pipe condition assessment and other related products and services. The “Company,” “we,” “us” or “our” refer to Mueller Water Products, Inc. and its subsidiaries. With regard to the Company’s segments, “we,” “us” or “our” may also refer to the segment being discussed. On January 6, 2017, we sold our former Anvil segment. Anvil's results of operations and the gain from its sale have been classified as discontinued operations, and its assets and liabilities have been classified as held for sale, for all periods presented. Mueller Co. owns a 49% ownership interest in an industrial valve joint venture. 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. 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. The condensed consolidated balance sheet data at September 30, 2016 was derived from audited financial statements, but does not include all disclosures required by GAAP. |
Discontinued Operations, Assets
Discontinued Operations, Assets Held for Sale and Divestitures | 9 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 2. Divestiture On January 6, 2017 , we sold our former Anvil segment to affiliates of One Equity Partners for cash proceeds of $305.7 million and the agreement by the purchaser to reimburse us for expenditures to settle certain previously existing liabilities. The table below presents a summary of the sale of Anvil, in millions. Gross cash proceeds $ 305.7 Noncash proceeds 1.9 Total proceeds 307.6 Transaction expenses (8.3 ) Net proceeds 299.3 Assets and liabilities disposed (189.8 ) Gain on sale, pre-tax 109.5 Income tax (41.6 ) Gain on sale, net of tax $ 67.9 The table below presents a summary of the operating results for the Anvil discontinued operations. These operating results do not reflect what they would have been had Anvil not been classified as discontinued operations. Three months ended Nine months ended June 30, June 30, 2017 2016 2017 2016 (in millions) Net sales $ — $ 85.4 $ 83.1 $ 251.4 Cost of sales — 61.5 62.8 180.8 Gross profit — 23.9 20.3 70.6 Operating expenses: Selling, general and administrative 0.1 16.5 17.0 51.4 Other charges — 0.4 0.2 0.4 Total operating expenses 0.1 16.9 17.2 51.8 Income (loss) before income taxes (0.1 ) 7.0 3.1 18.8 Income tax expense — 2.5 1.2 6.7 (0.1 ) 4.5 1.9 12.1 Gain on sale, net of tax — — 67.9 — Income (loss) from discontinued operations $ (0.1 ) $ 4.5 $ 69.8 $ 12.1 The table below presents the components of the balance sheet accounts classified as assets and liabilities held for sale and the related net deferred income tax liability. September 30, 2016 (in millions) Assets: Receivables, net $ 54.9 Inventories 83.1 Other current assets 4.1 Total current assets held for sale 142.1 Property, plant and equipment, net 46.7 Intangible assets 51.4 Other noncurrent assets 1.8 Total noncurrent assets held for sale 99.9 Total assets held for sale $ 242.0 Liabilities: Current portion of long-term debt $ 0.3 Accounts payable 27.1 Other current liabilities 17.4 Total current liabilities held for sale 44.8 Long-term debt 0.4 Other noncurrent liabilities 0.4 Total noncurrent liabilities held for sale 0.8 Total liabilities held for sale $ 45.6 Net deferred income tax liability associated with discontinued operations $ 13.0 |
Acquisition Acquisition
Acquisition Acquisition | 9 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Note 3. Acquisition On February 15, 2017, we acquired Singer Valve, a manufacturer of automatic control valves, and its affiliate that distributes Singer Valve products in the U.S, for an aggregate cash consideration of $26.4 million , net of post-closing adjustments. Singer Valve had net sales of approximately $15 million in calendar 2016 and is included in our Mueller Co. segment. During the third quarter, we also acquired the Chinese affiliate of Singer Valve for $0.2 million in cash. The initial allocation of consideration to the assets and liabilities of these companies, which is still subject to change, is presented below, in millions. Assets acquired and liabilities assumed: Cash $ 0.6 Receivables 1.9 Inventories 5.8 Other current assets 0.5 Property, plant and equipment 1.0 Intangible assets and goodwill 17.7 Accounts payable (0.7 ) Other current liabilities (0.2 ) Consideration paid $ 26.6 We have not yet completed our final valuation of intangible assets, but we expect that any goodwill recognized will be deductible for income tax purposes. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 4. Income Taxes At June 30, 2017 and September 30, 2016 , the gross liabilities for unrecognized income tax benefits were $3.0 million and $2.8 million , respectively. The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below. Three months ended Nine months ended June 30, June 30, 2017 2016 2017 2016 Adjustments to reconcile to the effective tax rate: U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % 35.0 % State tax apportionment change — — 1.7 — State income taxes, net of federal benefit 3.9 4.5 3.9 4.4 Excess tax benefit for stock-based compensation (0.2 ) 0.7 (4.6 ) (1.4 ) Tax credits (1.0 ) (2.2 ) (1.7 ) (2.8 ) U.S. manufacturing deduction (4.7 ) (4.2 ) (4.5 ) (3.7 ) Other 2.7 (0.1 ) 2.3 0.3 Effective tax rate 35.7 % 33.7 % 32.1 % 31.8 % |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below. Three months ended Nine months ended June 30, June 30, 2017 2016 2017 2016 Adjustments to reconcile to the effective tax rate: U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % 35.0 % State tax apportionment change — — 1.7 — State income taxes, net of federal benefit 3.9 4.5 3.9 4.4 Excess tax benefit for stock-based compensation (0.2 ) 0.7 (4.6 ) (1.4 ) Tax credits (1.0 ) (2.2 ) (1.7 ) (2.8 ) U.S. manufacturing deduction (4.7 ) (4.2 ) (4.5 ) (3.7 ) Other 2.7 (0.1 ) 2.3 0.3 Effective tax rate 35.7 % 33.7 % 32.1 % 31.8 % |
Borrowing Arrangements
Borrowing Arrangements | 9 Months Ended |
Jun. 30, 2017 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Borrowing Arrangements | Note 5. Borrowing Arrangements The components of our long-term debt are presented below. June 30, September 30, 2017 2016 (in millions) ABL Agreement $ — $ — Term Loan 486.0 489.4 Other 1.5 1.3 487.5 490.7 Less deferred financing costs 6.3 6.3 Less current portion 5.5 5.6 Long-term debt $ 475.7 $ 478.8 ABL Agreement . At June 30, 2017 , 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 125 to 150 basis points, or a base rate, as defined in the ABL Agreement, plus a margin ranging from 25 to 50 basis points. At June 30, 2017 , the applicable rate was LIBOR plus 150 basis points. The ABL Agreement terminates on July 13, 2021 . We pay a commitment fee for any unused borrowing capacity under the ABL Agreement of 25 basis points per annum. Our obligations under the ABL Agreement are secured by a first-priority perfected lien on all of our U.S. receivables and inventories, certain cash and other supporting obligations. Borrowings are not subject to any financial maintenance covenants unless excess availability is less than the greater of $17.5 million and 10% of the Loan Cap as defined in the ABL Agreement. Excess availability based on June 30, 2017 data, as reduced by outstanding letters of credit, swap contract liabilities and accrued fees and expenses of $23.5 million , was $109.5 million . Term Loan . On November 25, 2014 , we entered into a $500.0 million senior secured term loan (“Term Loan”). The proceeds from the Term Loan, along with other cash, were used to prepay our 7.375% Senior Subordinated Notes and 8.75% Senior Unsecured Notes and to satisfy and discharge our obligations under the respective indentures. During the quarter ended March 31, 2017, we amended the Term Loan, resulting in a 75 basis point reduction in the interest rate spread. The Term Loan accrues interest at a floating rate equal to LIBOR, subject to a floor of 0.75% , plus 250 basis points. At June 30, 2017 , the weighted-average effective interest rate was 4.36% . 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 $1.225 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, which was $1.6 million at June 30, 2017 . Based on quoted market prices, the outstanding Term Loan had a fair value of $490.6 million at June 30, 2017 . 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, 2017 and expect to remain in compliance through June 30, 2018 . |
Derivative Financial Instrument
Derivative Financial Instruments Derivative Financial Instruments | 9 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 6. Derivative Financial Instruments We are exposed to interest rate risk that we manage to some extent using derivative instruments. Under our April 2015 interest rate swap contracts, we receive interest calculated using 3-month LIBOR, subject to a floor of 0.75% , and pay fixed interest at 2.341% , on an aggregate notional amount of $150.0 million . These swap contracts effectively fix the cash interest rate on $150.0 million of our borrowings under the Term Loan at 4.841% through September 30, 2021 . We have designated our interest rate swap contracts as cash flow hedges of our future interest payments and elected to apply the “shortcut” method of assessing hedge effectiveness. As a result, the gains and losses on the swap contracts are reported as a component of other comprehensive income or loss and are reclassified into interest expense as the related interest payments are made. During the quarter and nine months ended June 30, 2017 , we included $0.4 million and $1.5 million of such interest expense, respectively, in income from continuing operations. In connection with the acquisition of Singer Valve discussed in Note 3. , Mueller Water Products, Inc. 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, where they offset the currency gain or loss associated with the intercompany loan. The fair values of the swap contracts are presented below. June 30, September 30, 2017 2016 (in millions) Interest rate swap contracts, designated as cash flow hedges: Other current liabilities $ 1.3 $ 2.0 Other noncurrent liabilities 1.5 5.3 Total liability $ 2.8 $ 7.3 Currency swap contracts, not designated as hedges: Other noncurrent liabilities $ 0.8 $ — The fair values and the classification of the fair values of the interest rate swaps between current and noncurrent portions are based on calculated cash flows using publicly available interest rate forward rate yield curve information, but amounts due at the actual settlement dates are dependent on actual rates in effect at the settlement dates and may differ significantly from amounts shown above. The fair values of the currency swaps are as reported to us by the bank counterparty, which we believe to be a reliable source. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Retirement Plans | Note 7. Retirement Plans During March 2017, the Financial Accounting Standards Board issued Accounting Standards Update No. 2017-07 (“ASU 2017-07”). This amendment to GAAP will require us to exclude the components of net periodic benefit cost other than service cost from operating income on October 1, 2018, with early adoption permitted. We plan to adopt this amendment on October 1, 2017, and this adoption will require reclassification of 2017 and 2016 results. The components of net periodic benefit cost for our pension plans and the effects this adoption will have on operating income are presented below. Three months ended Nine months ended June 30, June 30, 2017 2016 2017 2016 (in millions) Service cost $ 0.5 $ 0.5 $ 1.5 $ 1.3 Components of net periodic benefit cost that will be excluded from operating income upon adoption of ASU 2017-07: Interest cost 3.6 5.0 10.8 15.1 Expected return on plan assets (4.2 ) (4.9 ) (12.7 ) (15.1 ) Amortization of actuarial net loss 1.0 0.7 3.0 2.3 Pension settlement — 16.6 — 16.6 0.4 17.4 1.1 18.9 Net periodic benefit cost $ 0.9 $ 17.9 $ 2.6 $ 20.2 The amortization of actuarial losses, net of tax, is recorded as a component of other comprehensive loss. During the 2016 third quarter, our U.S. pension plan (“Plan”) completed a pension obligation settlement program targeting vested, terminated participants not yet receiving benefits. Approximately 75% of eligible participants accepted settlement offers. The Plan distributed assets totaling $58.5 million and remeasured its liabilities in June 2016. We incurred a non-cash charge of $16.6 million as a result of the program, which had an immaterial impact on the Plan’s funded ratio. |
Capital Stock Capital Stock
Capital Stock Capital Stock | 9 Months Ended |
Jun. 30, 2017 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Note 8. Capital Stock Common stock share activity is presented below. Shares outstanding at September 30, 2016 161,693,051 Shares repurchased (4,581,227 ) Exercise of stock options 872,452 Vesting of restricted stock units, net of shares withheld for taxes 256,155 Settlement of performance-based restricted stock units, net of shares withheld for taxes 160,063 Exercise of employee stock purchase plan instruments 113,693 Shares outstanding at June 30, 2017 158,514,187 In February 2017, we entered into an accelerated share repurchase agreement with Bank of America, N.A. paid them $50 million . We subsequently received 4,139,255 shares of our common stock based on the average of the daily volume-weighted average prices of our common stock over the purchase period, less a fixed discount . In May 2017 and June 2017, we repurchased an additional 441,972 shares of our common stock for a total cost of $5.0 million through open market purchases. |
Stock-based Compensation Plans
Stock-based Compensation Plans | 9 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | Note 9. 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 (“2006 Stock Plan”). We have also granted cash-settled Phantom Plan instruments under the Mueller Water Products, Inc. Phantom Plan (“Phantom Plan”). A PRSU award represents a target number of units that may be paid out at the end of a multi-year award cycle consisting of a series of annual performance periods coinciding with our fiscal years. After we determine the financial performance targets related to PRSUs for a given performance period, typically during the first quarter of that fiscal year, that portion of a PRSU award becomes granted. Thus, each award consists of a grant in the year of award and grants in the designated following years. Settlement will range from zero to two times the number of PRSUs granted, depending on our financial performance against the targets. As determined at the date of award, PRSUs may settle in cash-value equivalent of, or directly in, shares of our common stock. The stock-settled PRSUs awarded in 2014 settled in the quarter ended December 31, 2016 with an issuance of 263,410 shares of our common stock. This settlement reflected payouts of 1.021 times target for the 2016 performance period, zero times target for the 2015 performance period and two times target for the 2014 performance period. The 234,895 stock-settled PRSUs awarded in the nine months ended June 30, 2017 will settle in three years. During the quarter and nine months ended June 30, 2017 , 3,334 and 350,295 restricted stock units vested, respectively. At June 30, 2017 , the outstanding Phantom Plan instruments had a fair value of $11.68 per instrument and our liability for Phantom Plan instruments was $2.2 million . We granted stock-based compensation 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, 2017 as follows. Number granted Weighted average grant date fair value per instrument Total grant date fair value (in millions) Quarter ended December 31, 2016: Restricted stock units 177,861 $ 13.26 $ 2.4 Employee stock purchase plan instruments 39,231 2.34 0.1 Phantom Plan awards 187,115 13.26 2.5 PRSUs: 2017 award 59,285 13.26 0.8 2016 award 73,826 13.26 1.0 2015 award 68,556 13.26 0.9 Quarter ended March 31, 2017: Restricted stock units 165,999 12.82 2.1 Employee stock purchase plan instruments 38,267 2.44 0.1 Phantom Plan awards 12,145 12.66 0.2 PRSUs: 2017 award 19,012 13.15 0.2 Quarter ended June 30, 2017: Employee stock purchase plan instruments 36,195 2.70 0.1 $ 10.4 Income from continuing operations included stock-based compensation expense of $0.4 million and $2.0 million during the quarters ended June 30, 2017 and 2016 , respectively, and $5.1 million and $5.6 million during the nine months ended June 30, 2017 and 2016 , respectively. At June 30, 2017 , there was approximately $8.7 million of unrecognized compensation expense related to stock-based compensation arrangements, and 219,866 PRSUs that have been awarded for the 2018 and 2019 performance periods, for which performance goals have not been set. We excluded 165,186 and 257,811 of stock-based compensation instruments from the calculations of diluted earnings per share for the quarters ended June 30, 2017 and 2016 , respectively, and 208,868 and 925,296 for the nine months ended June 30, 2017 and 2016 , respectively, since their inclusion would have been antidilutive. |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Note 10. Supplemental Balance Sheet Information Selected supplemental balance sheet information is presented below. June 30, September 30, 2017 2016 (in millions) Inventories: Purchased components and raw material $ 68.0 $ 67.0 Work in process 33.6 31.4 Finished goods 39.5 32.3 $ 141.1 $ 130.7 Property, plant and equipment: Land $ 5.6 $ 5.7 Buildings 52.7 50.6 Machinery and equipment 261.2 248.3 Construction in progress 14.4 14.8 333.9 319.4 Accumulated depreciation (223.8 ) (211.0 ) $ 110.1 $ 108.4 Other current liabilities: Compensation and benefits $ 23.9 $ 32.7 Customer rebates 6.3 8.3 Taxes other than income taxes 3.0 3.0 Warranty 4.7 2.0 Income taxes 0.2 4.6 Environmental 1.7 5.0 Interest 0.5 0.5 Other 6.6 5.6 $ 46.9 $ 61.7 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Note 12. 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, 2016 $ (57.7 ) $ (6.1 ) $ (4.5 ) $ (68.3 ) Current period other comprehensive income 1.8 0.7 2.8 5.3 Balance at June 30, 2017 $ (55.9 ) $ (5.4 ) $ (1.7 ) $ (63.0 ) 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, 2016 $ (57.7 ) $ (6.1 ) $ (4.5 ) $ (68.3 ) Current period other comprehensive income 1.8 0.7 2.8 5.3 Balance at June 30, 2017 $ (55.9 ) $ (5.4 ) $ (1.7 ) $ (63.0 ) |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting Disclosure [Text Block] | Note 11. Segment Information Summarized financial information for our segments is presented below. Three months ended Nine months ended June 30, June 30, 2017 2016 2017 2016 (in millions) Net sales, excluding intercompany: Mueller Co. $ 207.6 $ 198.7 $ 535.5 $ 525.6 Mueller Technologies 24.6 26.0 63.6 59.4 $ 232.2 $ 224.7 $ 599.1 $ 585.0 Operating income (loss): Mueller Co. $ 52.9 $ 51.7 $ 113.3 $ 110.4 Mueller Technologies (1.6 ) (1.5 ) (17.5 ) (10.2 ) Corporate (8.7 ) (27.6 ) (28.4 ) (45.1 ) $ 42.6 $ 22.6 $ 67.4 $ 55.1 Depreciation and amortization: Mueller Co. $ 8.9 $ 8.5 $ 27.0 $ 25.5 Mueller Technologies 1.2 1.2 3.8 3.5 Corporate 0.1 0.1 0.3 0.3 $ 10.2 $ 9.8 $ 31.1 $ 29.3 Pension settlement and other charges: Mueller Co. $ 0.4 $ 2.4 $ 2.1 $ 3.0 Mueller Technologies — — 0.1 0.5 Corporate 0.8 18.8 2.8 19.3 $ 1.2 $ 21.2 $ 5.0 $ 22.8 Capital expenditures: Mueller Co. $ 6.1 $ 3.6 $ 13.8 $ 12.4 Mueller Technologies 1.3 1.5 7.6 4.5 Corporate 0.1 — 0.2 0.1 $ 7.5 $ 5.1 $ 21.6 $ 17.0 Mueller Technologies' operating loss for the nine months ended June 30, 2017 includes a warranty expense of $9.8 million , as described in Note 13. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | Note 13. 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 would have a material adverse effect on our business or prospects. Environmental. We are subject to a wide variety of laws and regulations concerning the protection of the environment, both with respect to the operations at many of our properties and with respect to remediating environmental conditions that may exist at our own or other properties. We accrue for environmental expenses resulting from existing conditions that relate to past operations when the costs are probable and reasonably estimable. In the acquisition agreement pursuant to which a predecessor to Tyco 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. 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 when we sold 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 any of 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. The purchaser of U.S. Pipe has been identified as a “potentially responsible party” (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA” which is sometimes referred to as “Superfund”) 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 located 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 whether the site will be added to the National Priorities List and designated as a “Superfund site,” EPA’s remediation costs, the number and financial viability of the other PRPs (there are four other PRPs currently) and the determination of the final allocation of the costs among the PRPs, if any. Accordingly, because the amount of such costs cannot be reasonably estimated at this time, no amounts were accrued for this matter at June 30, 2017 . Walter Energy . Each member of the Walter Energy consolidated group, which included us (including our subsidiaries) 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 computed 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. According to Walter Energy's last quarterly report on Form 10-Q filed with the SEC on November 5, 2015 (“Walter November 2015 Filing”), a dispute exists with the IRS with regard to federal income taxes for years 1980 to 1994 and 1999 to 2001 allegedly owed by the Walter Energy consolidated group, which included U.S. Pipe during these periods. As a matter of law, we are jointly and severally liable for any final tax determination, which means we would be liable in the event Walter Energy is unable to pay any amounts owed. According to the Walter November 2015 Filing, at September 30, 2015, Walter Energy had $33.0 million of accruals for unrecognized tax benefits on the matters subject to disposition. In the Walter November 2015 Filing, Walter Energy stated it believed it had sufficient accruals to address any claims, including interest and penalties, and did not believe that any potential difference between any final settlements and amounts accrued would have a material effect on Walter Energy's financial position, but such potential difference could be material to its results of operations in a future reporting period. In July 2015, Walter Energy filed a petition for reorganization under Chapter 11 of the U.S. Bankruptcy Code before the Bankruptcy Court for the Northern District of Alabama (“Chapter 11 Case”). During the pendency of the Chapter 11 Case, we monitored the proceeding to determine whether 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. On January 11, 2016, the IRS filed a proof of claim (“Proof of Claim”) in the Chapter 11 Case, alleging that Walter Energy owes amounts for prior taxable periods (specifically, 1983-1994, 2000-2002 and 2005) in an aggregate amount of $554.3 million ( $229.1 million of which the IRS claims is entitled to priority status in the Chapter 11 Case). The IRS asserts that its claim is based on an alleged settlement of Walter Energy’s tax liability for the 1983-1995 taxable periods in connection with Walter Energy’s prior bankruptcy proceeding in the United States Bankruptcy Court for the Middle District of Florida. In the Proof of Claim, the IRS included an alternative calculation in the event the alleged settlement of the prior bankruptcy court is found to be non-binding, which provides for a claim by the IRS in an aggregate amount of $860.4 million ( $535.3 million of which the IRS claims is entitled to priority status in the Chapter 11 Case). According to a current report on Form 8-K filed by Walter Energy with the SEC on April 1, 2016 (“Walter April 2016 Filing”), on March 31, 2016, Walter Energy closed on the sale of substantially all of Walter Energy's Alabama assets pursuant to the provisions of Sections 105, 363 and 365 of the U.S. Bankruptcy Code. The Walter April 2016 Filing further stated that Walter Energy would have no further material business operations after April 1, 2016 and Walter Energy was evaluating its options with respect to the wind-down of its remaining assets. The asset sale did not impact the Proof of Claim, and the Proof of Claim and the alleged tax liability thereunder remain unresolved. On February 2, 2017, at the request of Walter Energy, the Bankruptcy Court for the Northern District of Alabama signed an order converting the Chapter 11 Case to a liquidation proceeding under Chapter 7 of the U.S. Bankruptcy Code, pursuant to which Walter Energy will be wound-down and liquidated (“Chapter 7 Case”). In its objection contesting such conversion, the IRS indicated its intent to pursue collection of amounts included in the Proof of Claim from former members of the Walter Energy consolidated group. We cannot predict whether or to what extent we may become liable for the tax-related amounts of the Walter Energy consolidated group asserted in the Proof of Claim, in part, because: (i) the amounts owed by the Walter Energy consolidated group for certain of the taxable periods from 1980 through 2006 remain unresolved and (ii) it is unclear what priority, if any, the IRS will receive in the Chapter 7 Case with respect to its claims against Walter Energy. We intend to vigorously assert any and all available defenses against any liability we may have as a member of the Walter Energy consolidated group. However, we cannot currently estimate our liability, if any, relating to the tax-related liabilities of Walter Energy’s consolidated tax group for tax years prior to 2007, and such liability could have a material adverse effect on our business, financial condition, liquidity or results of operations. 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 divestiture of our former U.S. Pipe and Anvil segments, 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, tax 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. Certain Mueller Technologies radio products produced between 2011 and 2014 and installed in particularly harsh environments have been failing at higher-than-expected rates. During the quarter ended March 31, 2017, we conducted additional testing of these products and revised our estimates of related warranty expenses. Consequently, we recorded an additional warranty expense of $9.8 million associated with these products in that quarter. 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. 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, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 14. Subsequent Events On July 26, 2017 , our board of directors declared a dividend of $0.04 per share on our common stock, payable on or about August 21, 2017 to stockholders of record at the close of business on August 11, 2017 . |
Discontinued Operations, Asse22
Discontinued Operations, Assets Held for Sale and Divestitures Tables | 9 Months Ended |
Jun. 30, 2017 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Group, Details of Gain on Sale [Table Text Block] | The table below presents a summary of the sale of Anvil, in millions. Gross cash proceeds $ 305.7 Noncash proceeds 1.9 Total proceeds 307.6 Transaction expenses (8.3 ) Net proceeds 299.3 Assets and liabilities disposed (189.8 ) Gain on sale, pre-tax 109.5 Income tax (41.6 ) Gain on sale, net of tax $ 67.9 |
Schedule of Discontinued Operations Income (loss) [Table Text Block] | The table below presents a summary of the operating results for the Anvil discontinued operations. These operating results do not reflect what they would have been had Anvil not been classified as discontinued operations. Three months ended Nine months ended June 30, June 30, 2017 2016 2017 2016 (in millions) Net sales $ — $ 85.4 $ 83.1 $ 251.4 Cost of sales — 61.5 62.8 180.8 Gross profit — 23.9 20.3 70.6 Operating expenses: Selling, general and administrative 0.1 16.5 17.0 51.4 Other charges — 0.4 0.2 0.4 Total operating expenses 0.1 16.9 17.2 51.8 Income (loss) before income taxes (0.1 ) 7.0 3.1 18.8 Income tax expense — 2.5 1.2 6.7 (0.1 ) 4.5 1.9 12.1 Gain on sale, net of tax — — 67.9 — Income (loss) from discontinued operations $ (0.1 ) $ 4.5 $ 69.8 $ 12.1 |
Schedule of Assets and Liabilities Held for Sale [Table Text Block] | The table below presents the components of the balance sheet accounts classified as assets and liabilities held for sale and the related net deferred income tax liability. September 30, 2016 (in millions) Assets: Receivables, net $ 54.9 Inventories 83.1 Other current assets 4.1 Total current assets held for sale 142.1 Property, plant and equipment, net 46.7 Intangible assets 51.4 Other noncurrent assets 1.8 Total noncurrent assets held for sale 99.9 Total assets held for sale $ 242.0 Liabilities: Current portion of long-term debt $ 0.3 Accounts payable 27.1 Other current liabilities 17.4 Total current liabilities held for sale 44.8 Long-term debt 0.4 Other noncurrent liabilities 0.4 Total noncurrent liabilities held for sale 0.8 Total liabilities held for sale $ 45.6 Net deferred income tax liability associated with discontinued operations $ 13.0 |
Acquisition Tables
Acquisition Tables | 9 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | On February 15, 2017, we acquired Singer Valve, a manufacturer of automatic control valves, and its affiliate that distributes Singer Valve products in the U.S, for an aggregate cash consideration of $26.4 million , net of post-closing adjustments. Singer Valve had net sales of approximately $15 million in calendar 2016 and is included in our Mueller Co. segment. During the third quarter, we also acquired the Chinese affiliate of Singer Valve for $0.2 million in cash. The initial allocation of consideration to the assets and liabilities of these companies, which is still subject to change, is presented below, in millions. Assets acquired and liabilities assumed: Cash $ 0.6 Receivables 1.9 Inventories 5.8 Other current assets 0.5 Property, plant and equipment 1.0 Intangible assets and goodwill 17.7 Accounts payable (0.7 ) Other current liabilities (0.2 ) Consideration paid $ 26.6 |
Income Taxes Tables
Income Taxes Tables | 9 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below. Three months ended Nine months ended June 30, June 30, 2017 2016 2017 2016 Adjustments to reconcile to the effective tax rate: U.S. federal statutory income tax rate 35.0 % 35.0 % 35.0 % 35.0 % State tax apportionment change — — 1.7 — State income taxes, net of federal benefit 3.9 4.5 3.9 4.4 Excess tax benefit for stock-based compensation (0.2 ) 0.7 (4.6 ) (1.4 ) Tax credits (1.0 ) (2.2 ) (1.7 ) (2.8 ) U.S. manufacturing deduction (4.7 ) (4.2 ) (4.5 ) (3.7 ) Other 2.7 (0.1 ) 2.3 0.3 Effective tax rate 35.7 % 33.7 % 32.1 % 31.8 % |
Borrowing Arrangements Tables
Borrowing Arrangements Tables | 9 Months Ended |
Jun. 30, 2017 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Schedule of Long-term Debt Instruments [Table Text Block] | The components of our long-term debt are presented below. June 30, September 30, 2017 2016 (in millions) ABL Agreement $ — $ — Term Loan 486.0 489.4 Other 1.5 1.3 487.5 490.7 Less deferred financing costs 6.3 6.3 Less current portion 5.5 5.6 Long-term debt $ 475.7 $ 478.8 |
Derivative Financial Instrume26
Derivative Financial Instruments Tables | 9 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | The fair values of the swap contracts are presented below. June 30, September 30, 2017 2016 (in millions) Interest rate swap contracts, designated as cash flow hedges: Other current liabilities $ 1.3 $ 2.0 Other noncurrent liabilities 1.5 5.3 Total liability $ 2.8 $ 7.3 Currency swap contracts, not designated as hedges: Other noncurrent liabilities $ 0.8 $ — |
Retirement Plans (Tables)
Retirement Plans (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Defined Benefit Pension Plans and Defined Benefit Postretirement Plans Disclosure [Abstract] | |
Schedule of Net Periodic Benefit Cost | During March 2017, the Financial Accounting Standards Board issued Accounting Standards Update No. 2017-07 (“ASU 2017-07”). This amendment to GAAP will require us to exclude the components of net periodic benefit cost other than service cost from operating income on October 1, 2018, with early adoption permitted. We plan to adopt this amendment on October 1, 2017, and this adoption will require reclassification of 2017 and 2016 results. The components of net periodic benefit cost for our pension plans and the effects this adoption will have on operating income are presented below. Three months ended Nine months ended June 30, June 30, 2017 2016 2017 2016 (in millions) Service cost $ 0.5 $ 0.5 $ 1.5 $ 1.3 Components of net periodic benefit cost that will be excluded from operating income upon adoption of ASU 2017-07: Interest cost 3.6 5.0 10.8 15.1 Expected return on plan assets (4.2 ) (4.9 ) (12.7 ) (15.1 ) Amortization of actuarial net loss 1.0 0.7 3.0 2.3 Pension settlement — 16.6 — 16.6 0.4 17.4 1.1 18.9 Net periodic benefit cost $ 0.9 $ 17.9 $ 2.6 $ 20.2 |
Capital Stock Tables
Capital Stock Tables | 9 Months Ended |
Jun. 30, 2017 | |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Schedule of Stock by Class [Table Text Block] | Common stock share activity is presented below. Shares outstanding at September 30, 2016 161,693,051 Shares repurchased (4,581,227 ) Exercise of stock options 872,452 Vesting of restricted stock units, net of shares withheld for taxes 256,155 Settlement of performance-based restricted stock units, net of shares withheld for taxes 160,063 Exercise of employee stock purchase plan instruments 113,693 Shares outstanding at June 30, 2017 158,514,187 |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Share-based Compensation [Abstract] | |
Schedule of Share-based Compensation, Activity [Table Text Block] | We granted stock-based compensation 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, 2017 as follows. Number granted Weighted average grant date fair value per instrument Total grant date fair value (in millions) Quarter ended December 31, 2016: Restricted stock units 177,861 $ 13.26 $ 2.4 Employee stock purchase plan instruments 39,231 2.34 0.1 Phantom Plan awards 187,115 13.26 2.5 PRSUs: 2017 award 59,285 13.26 0.8 2016 award 73,826 13.26 1.0 2015 award 68,556 13.26 0.9 Quarter ended March 31, 2017: Restricted stock units 165,999 12.82 2.1 Employee stock purchase plan instruments 38,267 2.44 0.1 Phantom Plan awards 12,145 12.66 0.2 PRSUs: 2017 award 19,012 13.15 0.2 Quarter ended June 30, 2017: Employee stock purchase plan instruments 36,195 2.70 0.1 $ 10.4 |
Supplemental Balance Sheet In30
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Selected Supplemental Balance Sheet Information [Table Text Block] | Selected supplemental balance sheet information is presented below. June 30, September 30, 2017 2016 (in millions) Inventories: Purchased components and raw material $ 68.0 $ 67.0 Work in process 33.6 31.4 Finished goods 39.5 32.3 $ 141.1 $ 130.7 Property, plant and equipment: Land $ 5.6 $ 5.7 Buildings 52.7 50.6 Machinery and equipment 261.2 248.3 Construction in progress 14.4 14.8 333.9 319.4 Accumulated depreciation (223.8 ) (211.0 ) $ 110.1 $ 108.4 Other current liabilities: Compensation and benefits $ 23.9 $ 32.7 Customer rebates 6.3 8.3 Taxes other than income taxes 3.0 3.0 Warranty 4.7 2.0 Income taxes 0.2 4.6 Environmental 1.7 5.0 Interest 0.5 0.5 Other 6.6 5.6 $ 46.9 $ 61.7 |
Accumulated Other Comprehensi31
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss | Note 12. 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, 2016 $ (57.7 ) $ (6.1 ) $ (4.5 ) $ (68.3 ) Current period other comprehensive income 1.8 0.7 2.8 5.3 Balance at June 30, 2017 $ (55.9 ) $ (5.4 ) $ (1.7 ) $ (63.0 ) 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, 2016 $ (57.7 ) $ (6.1 ) $ (4.5 ) $ (68.3 ) Current period other comprehensive income 1.8 0.7 2.8 5.3 Balance at June 30, 2017 $ (55.9 ) $ (5.4 ) $ (1.7 ) $ (63.0 ) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2017 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Schedule Of Selected Supplemental Balance Sheet Information | Summarized financial information for our segments is presented below. Three months ended Nine months ended June 30, June 30, 2017 2016 2017 2016 (in millions) Net sales, excluding intercompany: Mueller Co. $ 207.6 $ 198.7 $ 535.5 $ 525.6 Mueller Technologies 24.6 26.0 63.6 59.4 $ 232.2 $ 224.7 $ 599.1 $ 585.0 Operating income (loss): Mueller Co. $ 52.9 $ 51.7 $ 113.3 $ 110.4 Mueller Technologies (1.6 ) (1.5 ) (17.5 ) (10.2 ) Corporate (8.7 ) (27.6 ) (28.4 ) (45.1 ) $ 42.6 $ 22.6 $ 67.4 $ 55.1 Depreciation and amortization: Mueller Co. $ 8.9 $ 8.5 $ 27.0 $ 25.5 Mueller Technologies 1.2 1.2 3.8 3.5 Corporate 0.1 0.1 0.3 0.3 $ 10.2 $ 9.8 $ 31.1 $ 29.3 Pension settlement and other charges: Mueller Co. $ 0.4 $ 2.4 $ 2.1 $ 3.0 Mueller Technologies — — 0.1 0.5 Corporate 0.8 18.8 2.8 19.3 $ 1.2 $ 21.2 $ 5.0 $ 22.8 Capital expenditures: Mueller Co. $ 6.1 $ 3.6 $ 13.8 $ 12.4 Mueller Technologies 1.3 1.5 7.6 4.5 Corporate 0.1 — 0.2 0.1 $ 7.5 $ 5.1 $ 21.6 $ 17.0 |
Organization Narrative
Organization Narrative | Jul. 31, 2014 | Mar. 31, 2016 |
Segment Reporting Information [Line Items] | ||
Number of Reportable Segments | 2 | |
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.00% |
Discontinued Operations, Asse34
Discontinued Operations, Assets Held for Sale and Divestitures (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2017 | Jan. 06, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Date | Jan. 6, 2017 | |
Disposal Group, Including Discontinued Operation, Consideration | $ 305.7 |
Discontinued Operations, Asse35
Discontinued Operations, Assets Held for Sale and Divestitures Disposal Group, Detail of Gain on Sale - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jan. 06, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal Group, Including Discontinued Operation, Consideration | $ 305.7 | ||||
Discontinued Operations, Receivable from Buyer of Discontinued Operation | 1.9 | ||||
Total proceeds | 307.6 | ||||
Transaction expenses | (8.3) | ||||
Net proceeds | 299.3 | ||||
Assets and liabilities disposed | $ (189.8) | ||||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 109.5 | ||||
Income tax on Gain on Sale | (41.6) | ||||
Gain on sale, net of tax | $ 0 | $ 0 | $ 67.9 | $ 0 |
Discontinued Operations, Asse36
Discontinued Operations, Assets Held for Sale and Divestitures Schedule of Discontinued Operations Income (Loss) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net sales | $ 0 | $ 85.4 | $ 83.1 | $ 251.4 |
Cost of sales | 0 | 61.5 | 62.8 | 180.8 |
Gross profit | 0 | 23.9 | 20.3 | 70.6 |
Selling, general and administrative | 0.1 | 16.5 | 17 | 51.4 |
Other charges | 0 | 0.4 | 0.2 | 0.4 |
Total operating expenses | 0.1 | 16.9 | 17.2 | 51.8 |
Income before income taxes | (0.1) | 7 | 3.1 | 18.8 |
Income tax expense | 0 | 2.5 | 1.2 | 6.7 |
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax | (0.1) | 4.5 | 1.9 | 12.1 |
Gain on sale, net of tax | 0 | 0 | 67.9 | 0 |
Income from discontinued operations | $ (0.1) | $ 4.5 | $ 69.8 | $ 12.1 |
Discontinued Operations, Asse37
Discontinued Operations, Assets Held for Sale and Divestitures Schedule of Assets and Liabilities Held for Sale - USD ($) $ in Millions | Jun. 30, 2017 | Sep. 30, 2016 |
Long Lived Assets Held-for-sale [Line Items] | ||
Receivables, net | $ 54.9 | |
Inventories | 83.1 | |
Other current assets | 4.1 | |
Total current assets held for sale | $ 0 | 142.1 |
Property, plant and equipment, net | 46.7 | |
Intangible assets | 51.4 | |
Other noncurrent assets | 1.8 | |
Total noncurrent assets held for sale | 0 | 99.9 |
Total assets held for sale | 242 | |
Current portion of long-term debt | 0.3 | |
Accounts payable | 27.1 | |
Other current liabilities | 17.4 | |
Total current liabilities held for sale | 0 | 44.8 |
Long-term debt | 0.4 | |
Other noncurrent liabilities | 0.4 | |
Total noncurrent liabilities held for sale | $ 0 | 0.8 |
Total liabilities held for sale | 45.6 | |
Net deferred income tax liability associated with discontinued operation | $ 13 |
Acquisition Narrative (Details)
Acquisition Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination | $ 26.4 | |
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 15 | |
Series of Individually Immaterial Business Acquisitions [Member] | ||
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred, Including Equity Interest in Acquiree Held Prior to Combination | $ 0.2 |
Acquisition Schedule of Recogni
Acquisition Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) $ in Millions | Jun. 30, 2017USD ($) |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities [Abstract] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 0.6 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Receivables | 1.9 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 5.8 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 0.5 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 17.7 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | 0.7 |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Other | 0.2 |
Consideration paid | $ 26.6 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Sep. 30, 2016 |
Income Tax Contingency [Line Items] | ||
Unrecognized Tax Benefits | $ 3 | $ 2.8 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | ||||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | 35.00% |
Adjustments to reconcile to the effective tax rate: | ||||
State tax rate change | 0.00% | 0.00% | 1.70% | 0.00% |
State income taxes, net of federal benefit | 3.90% | 4.50% | 3.90% | 4.40% |
U.S. manufacturing deduction | (4.70%) | (4.20%) | (4.50%) | (3.70%) |
Other | 2.70% | (0.10%) | 2.30% | 0.30% |
Tax credits | (1.00%) | (2.20%) | (1.70%) | (2.80%) |
Other | 0.20% | (0.70%) | 4.60% | 1.40% |
Effective income tax rate | 35.70% | 33.70% | 32.10% | 31.80% |
Borrowing Arrangements Narrativ
Borrowing Arrangements Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | 9 Months Ended | |
Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2016 | |
Future maturities of outstanding borrowings | |||
Debt Instrument, Unamortized Discount | $ 1,600 | ||
Domestic Line of Credit [Member] | |||
Revolving credit facility amount | (225,000) | ||
Potential increase size of the credit facility by an additional amount | $ 150,000 | ||
Line of Credit Facility, Interest Rate at Period End | 15000.00% | ||
Agreement termination date | Jul. 13, 2021 | ||
Aggregate commitments availability | $ 17,500 | ||
Aggregate commitments availability, percentage | 10.00% | ||
Outstanding letter of credit accrued fees and expenses | $ 23,500 | ||
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses | 109,500 | ||
Swing Line Loans [Member] | |||
Revolving credit facility amount | (25,000) | ||
Letters Of Credit Outstanding [Member] | |||
Revolving credit facility amount | (60,000) | ||
Secured Debt [Member] | |||
Long-term Debt, Gross | 500,000 | $ 150,000 | |
debt instrument, change in spread on variable rate | 7500.00% | ||
Debt Instrument, Basis Spread on Variable Rate | 25000.00% | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.36% | 4.841% | |
Debt Instrument, Periodic Payment, Principal | $ 1,225 | ||
Agreement termination date | Nov. 25, 2021 | ||
Future maturities of outstanding borrowings | |||
Financial Liabilities Fair Value Disclosure | $ 490,600 | ||
Minimum [Member] | Domestic Line of Credit [Member] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 2500.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Long-term Debt [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 2500.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Domestic Line of Credit [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 12500.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Secured Debt [Member] | |||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum (Deprecated 2016-01-31) | 0.75% | ||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Domestic Line of Credit [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 15000.00% | ||
Base Rate [Member] | Maximum [Member] | Domestic Line of Credit [Member] | |||
Debt Instrument, Basis Spread on Variable Rate | 5000.00% |
Borrowing Arrangements Schedule
Borrowing Arrangements Schedule of Long-term Debt Instruments (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Sep. 30, 2016 |
Debt instrument | $ 487.5 | $ 490.7 |
Deferred financing costs | 6.3 | 6.3 |
Current portion of long-term debt | 5.5 | 5.6 |
Long-term debt | 475.7 | 478.8 |
Domestic Line of Credit [Member] | ||
Debt instrument | 0 | 0 |
Secured Debt [Member] | ||
Debt instrument | 486 | 489.4 |
Other [Member] | ||
Debt instrument | $ 1.5 | $ 1.3 |
Derivative Financial Instrume44
Derivative Financial Instruments Narrative - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 60 Months Ended | |
Jun. 30, 2017 | Mar. 31, 2017 | Jun. 30, 2017 | Sep. 30, 2021 | Sep. 30, 2016 | |
Derivative [Line Items] | |||||
Derivative, Cap Interest Rate | 0.75% | ||||
Derivative, Fixed Interest Rate | 2.341% | ||||
Derivative, Amount of Hedged Item | $ 150 | ||||
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net | $ 0.4 | $ 1.5 | |||
Not Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Other noncurrent liabilities | 0.8 | 0.8 | 0 | ||
Designated as Hedging Instrument [Member] | |||||
Derivative [Line Items] | |||||
Other current liabilities | 1.3 | 1.3 | 2 | ||
Other noncurrent liabilities | 1.5 | 1.5 | 5.3 | ||
Interest Rate Derivatives, at Fair Value, Net | (2.8) | (2.8) | (7.3) | ||
Secured Debt [Member] | |||||
Derivative [Line Items] | |||||
Long-term Debt, Gross | $ 500 | $ 500 | $ 150 | ||
Debt Instrument, Interest Rate, Effective Percentage | 4.36% | 4.841% | |||
Debt Instrument, Basis Spread on Variable Rate | 25000.00% | ||||
Scenario, Forecast [Member] | |||||
Derivative [Line Items] | |||||
HedgePeriodStart | Sep. 30, 2016 | ||||
Derivative, Maturity Date | Sep. 30, 2021 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2017USD ($) | |
Decrease in accumulated other comprehensive loss net of tax | $ 1.8 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Defined Benefit Plan, Service Cost | $ 0.5 | $ 0.5 | $ 1.5 | $ 1.3 |
Defined Benefit Plan, Interest Cost | 3.6 | 5 | 10.8 | 15.1 |
Defined Benefit Plan, Expected Return on Plan Assets | (4.2) | (4.9) | (12.7) | (15.1) |
Amortization of actuarial net loss | 1 | 0.7 | 3 | 2.3 |
Pension settlement | 0 | 16.6 | 0 | 16.6 |
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | 0.4 | 17.4 | 1.1 | 18.9 |
Net periodic benefit cost | $ 0.9 | $ 17.9 | $ 2.6 | $ 20.2 |
Capital Stock Outstanding Commo
Capital Stock Outstanding Common Shares Roll Forward (Details) | 9 Months Ended |
Jun. 30, 2017shares | |
Outstanding Shares [Roll Forward] | |
Series A common stock, shares outstanding | 161,693,051 |
Treasury Stock, Shares, Acquired | (4,581,227) |
Exercise of stock options | 872,452 |
Vesting of restricted stock units, net of shares withheld for taxes | 256,155 |
Settlement of performance-based restricted stock units, net of shares withheld for taxes | 160,063 |
Exercise of employee stock purchase plan instruments | 113,693 |
Series A common stock, shares outstanding | 158,514,187 |
Capital Stock Narrative (Detail
Capital Stock Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2017 | Feb. 07, 2017 | |
Equity, Class of Treasury Stock [Line Items] | |||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 50 | ||
Treasury Stock, Value, Acquired, Par Value Method | $ 5 | $ 2.7 | |
Treasury Stock, Shares, Acquired | (4,581,227) | ||
Share Repurchase Authorization [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 441,972 | ||
Accelerated Share Repurchase Agreement [Member] | |||
Equity, Class of Treasury Stock [Line Items] | |||
Treasury Stock, Shares, Acquired | 4,139,255 |
Stock-based Compensation Plan49
Stock-based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||||
Jun. 30, 2017USD ($)$ / sharesshares | Mar. 31, 2017shares | Dec. 31, 2016shares | Jun. 30, 2016USD ($)shares | Mar. 31, 2017USD ($) | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)shares | |
Allocated Share-based Compensation Expense | $ | $ 0.4 | $ 2 | $ 5.1 | $ 5.6 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 8.7 | $ 8.7 | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 165,186 | 257,811 | 208,868 | 925,296 | |||
Phantom Share Units (PSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 12,145 | 187,115 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share | $ / shares | $ 11.68 | $ 11.68 | |||||
Share-based compensation liability | $ | $ 2.2 | $ 2.2 | |||||
Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 263,410 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 234,895 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||||||
Share-based compensation, units awarded but not yet granted | 219,866 | 219,866 | |||||
Restricted Stock Units (RSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 165,999 | 177,861 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 3,334 | 350,295 | |||||
Minimum [Member] | Performance Shares [Member] | |||||||
Performance Factor | 0 | ||||||
Maximum [Member] | Performance Shares [Member] | |||||||
Performance Factor | 2 | ||||||
Share-based Compensation Award, Tranche One [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 19,012 | 59,285 | |||||
Performance Factor | 1.021 | ||||||
Share-based Compensation Award, Tranche Two [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 73,826 | ||||||
Performance Factor | 2 | ||||||
Share-based Compensation Award, Tranche Three [Member] | Performance Shares [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 68,556 | ||||||
Performance Factor | 0 |
Stock-based Compensation Plan50
Stock-based Compensation Plans Grants Table - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock Granted, Value, Share-based Compensation, Gross | $ 10.4 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 165,999 | 177,861 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 12.82 | $ 13.26 | ||
Stock Granted, Value, Share-based Compensation, Gross | $ 2.1 | $ 2.4 | ||
Employee Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 36,195 | 38,267 | 39,231 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 2.70 | $ 2.44 | $ 2.34 | |
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 | 12,145 | 187,115 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 12.66 | $ 13.26 | ||
Stock Granted, Value, Share-based Compensation, Gross | $ 0.2 | $ 2.5 | ||
Share-based Compensation Award, Tranche One [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 19,012 | 59,285 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 13.15 | $ 13.26 | ||
Stock Granted, Value, Share-based Compensation, Gross | $ 0.2 | $ 0.8 | ||
Share-based Compensation Award, Tranche Two [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 73,826 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 13.26 | |||
Stock Granted, Value, Share-based Compensation, Gross | $ 1 | |||
Share-based Compensation Award, Tranche Three [Member] | Performance Shares [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted, shares | 68,556 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 13.26 | |||
Stock Granted, Value, Share-based Compensation, Gross | $ 0.9 |
Supplemental Balance Sheet In51
Supplemental Balance Sheet Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Sep. 30, 2016 |
Inventories: | ||
Purchased components and raw material | $ 68 | $ 67 |
Work in process | 33.6 | 31.4 |
Finished goods | 39.5 | 32.3 |
Inventories, net | 141.1 | 130.7 |
Property, plant and equipment: | ||
Land | 5.6 | 5.7 |
Buildings | 52.7 | 50.6 |
Machinery and equipment | 261.2 | 248.3 |
Construction in progress | 14.4 | 14.8 |
Property, plant and equipment, gross | 333.9 | 319.4 |
Accumulated depreciation | (223.8) | (211) |
Property, plant and equipment net | 110.1 | 108.4 |
Other current liabilities: | ||
Compensation and benefits | 23.9 | 32.7 |
Customer rebates | 6.3 | 8.3 |
Interest | 0.5 | 0.5 |
Taxes other than income taxes | 3 | 3 |
Warranty | 4.7 | 2 |
Environmental | 1.7 | 5 |
Income taxes | 0.2 | 4.6 |
Other | 6.6 | 5.6 |
Other current liabilities | $ 46.9 | $ 61.7 |
Accumulated Other Comprehensi52
Accumulated Other Comprehensive Loss (Schedule Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | $ (57.7) | ||||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (6.1) | ||||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (4.5) | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (63) | (63) | $ (68.3) | ||
Minimum pension liability, net of tax | 1.8 | ||||
Foreign currency translation | 1.2 | $ (0.2) | 0.7 | $ 0.8 | |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax | 2.8 | ||||
Other Comprehensive Income (Loss), Net of Tax | 5.3 | ||||
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans, Net of Tax | (55.9) | (55.9) | |||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (5.4) | (5.4) | |||
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax | (1.7) | (1.7) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (63) | $ (63) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) $ in Millions | 6 Months Ended | 9 Months Ended |
Mar. 31, 2016 | Jun. 30, 2017USD ($) | |
Segment Reporting Information [Line Items] | ||
Other Cost of Operating Revenue | $ 0.8 | |
Product Warranty Expense | $ 9.8 | |
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, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | |
Segment Reporting Information [Line Items] | |||||
Net sales, excluding intercompany | $ 232.2 | $ 224.7 | $ 599.1 | $ 585 | |
Operating income | 42.6 | 22.6 | 67.4 | 55.1 | |
Depreciation and amortization | 10.2 | 9.8 | 31.1 | 29.3 | |
Restructuring | 1.2 | 21.2 | 5 | 22.8 | |
Payments to Acquire Productive Assets | 7.5 | 5.1 | 21.6 | 17 | |
Total assets | 1,234.2 | 1,234.2 | $ 1,280.6 | ||
Intangible intangible assets, net | 442 | 442 | $ 434.6 | ||
Mueller Co. [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, excluding intercompany | 207.6 | 198.7 | 535.5 | 525.6 | |
Operating income | 52.9 | 51.7 | 113.3 | 110.4 | |
Depreciation and amortization | 8.9 | 8.5 | 27 | 25.5 | |
Restructuring | 0.4 | 2.4 | 2.1 | 3 | |
Payments to Acquire Productive Assets | 6.1 | 3.6 | 13.8 | 12.4 | |
Mueller Technologies [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Net sales, excluding intercompany | 24.6 | 26 | 63.6 | 59.4 | |
Operating income | (1.6) | (1.5) | (17.5) | (10.2) | |
Depreciation and amortization | 1.2 | 1.2 | 3.8 | 3.5 | |
Restructuring | 0 | 0 | 0.1 | 0.5 | |
Payments to Acquire Productive Assets | 1.3 | 1.5 | 7.6 | 4.5 | |
Corporate [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating income | (8.7) | (27.6) | (28.4) | (45.1) | |
Depreciation and amortization | 0.1 | 0.1 | 0.3 | 0.3 | |
Restructuring | 0.8 | 18.8 | 2.8 | 19.3 | |
Payments to Acquire Productive Assets | $ 0.1 | $ 0 | $ 0.2 | $ 0.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) CAD in Millions, $ in Millions | 9 Months Ended | ||
Jun. 30, 2017USD ($) | Jun. 30, 2017CAD | Dec. 31, 2014USD ($) | |
Loss Contingency, Damages Sought, Value | CAD | CAD 10 | ||
Operating Leases | |||
Product Warranty Expense | $ 9.8 | ||
Prior To 1995 [member] | |||
Walter Energy tax assessment | $ 33 | ||
Maximum [Member] | IRS-Walter Energy Claim 1 [Member] | |||
Loss Contingency, Estimate of Possible Loss | 554.3 | ||
Maximum [Member] | IRS-Walter Energy Claim 1 Priority [Member] | |||
Loss Contingency, Estimate of Possible Loss | 229.1 | ||
Maximum [Member] | IRS-Walter Energy Claim 2 [Member] | |||
Loss Contingency, Estimate of Possible Loss | 860.4 | ||
Maximum [Member] | IRS-Walter Energy Claim 2 Priority [Member] | |||
Loss Contingency, Estimate of Possible Loss | $ 535.3 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Aug. 21, 2017 | Aug. 11, 2017 | Jul. 26, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 |
Subsequent Event [Line Items] | |||||||
Dividends declared, in dollars per share | $ 0.04 | $ 0 | $ 0.11 | $ 0.07 | |||
Subsequent Event [Member] | |||||||
Subsequent Event [Line Items] | |||||||
Dividends Payable, Date Declared | Jul. 26, 2017 | ||||||
Dividends declared, in dollars per share | $ 0.0400 | ||||||
Dividends Payable, Date to be Paid | Aug. 21, 2017 | ||||||
Dividends Payable, Date of Record | Aug. 11, 2017 |