Document and Entity Information
Document and Entity Information - USD ($) | 3 Months Ended | ||
Dec. 31, 2018 | Jan. 31, 2019 | Mar. 31, 2017 | |
Document And Entity Information [Abstract] | |||
Document Fiscal Period Focus | Q1 | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2,019 | ||
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 Emerging Growth Company | false | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 158,211,464 | ||
Entity Small Business | false | ||
Entity Public Float | $ 1,856,526,077 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Assets: | ||
Cash and cash equivalents | $ 198.8 | $ 347.1 |
Receivables, net | 115.1 | 164.3 |
Inventories | 194.9 | 156.6 |
Other current assets | 20.9 | 17.5 |
Total current assets | 529.7 | 685.5 |
Property, plant and equipment, net | 168.1 | 150.9 |
Goodwill | 113.5 | 12.1 |
Identifiable intangible assets | 412.6 | 408.1 |
Other noncurrent assets | 35.2 | 35.3 |
Total assets | 1,259.1 | 1,291.9 |
Liabilities and stockholders' equity: | ||
Current portion of long-term debt | 0.8 | 0.7 |
Accounts payable | 63.5 | 90 |
Accrued Liabilities, Current | 104.2 | 76.4 |
Total current liabilities | 168.5 | 167.1 |
Long-term debt | 444.8 | 444.3 |
Deferred income taxes | 78.4 | 79.2 |
Other noncurrent liabilities | 28.5 | 36.5 |
Total liabilities | 720.2 | 727.1 |
Common Stock | 1.6 | 1.6 |
Additional paid-in capital | 1,440.2 | 1,444.5 |
Accumulated deficit | (871) | (850) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (33.6) | (32.8) |
Total stockholders' equity | 537.2 | 563.3 |
Noncontrolling interest | 1.7 | 1.5 |
Total equity | 538.9 | 564.8 |
Total liabilities and stockholders' equity | $ 1,259.1 | $ 1,291.9 |
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 | 158,081,200 | 157,332,121 |
Consolidated Statements Of Oper
Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues | $ 192.8 | $ 178.3 |
Cost of sales | 132.7 | 122.9 |
Gross profit | 60.1 | 55.4 |
Operating expenses: | ||
Selling, general and administrative | 41 | 39.8 |
Gain on sale of idle property | 0 | (9) |
Restructuring | 3.2 | 3.9 |
Total operating expenses | 44.2 | 34.7 |
Operating income | 15.9 | 20.7 |
Non-operating expense: | ||
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | (0.1) | 0.2 |
Interest expense, net | 5.5 | 5.2 |
Walter accrual | 37.4 | 0 |
Total non-operating expenses | 42.8 | 5.4 |
Income (loss) before income taxes | (26.9) | 15.3 |
Income tax expense (benefit) | (5.9) | (39.8) |
Net Income (Loss) Attributable to Parent | $ (21) | $ 55.1 |
Net loss per basic share: | ||
Net income (loss) per basic share | $ (0.13) | $ 0.35 |
Net loss per diluted share: | ||
Net income (loss) per diluted share | $ (0.13) | $ 0.34 |
Weighted average shares outstanding: | ||
Basic, in shares | 157.7 | 158.5 |
Diluted, in shares | 158.8 | 160 |
Dividends declared per share, in dollars per share | $ 0.05 | $ 0.04 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net Income (Loss) Attributable to Parent | $ (21) | $ 55.1 |
Other comprehensive income (loss): | ||
Minimum pension liability | 0.5 | 0.8 |
Income tax effects | (0.1) | (0.3) |
Foreign currency translation | (1.2) | 0.1 |
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax | 0 | 1.6 |
Income tax effects | 0 | (0.6) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (0.8) | 1.6 |
Other Comprehensive Income (Loss), Net of Tax | (0.8) | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | $ (21.8) | $ 56.7 |
Consolidated Statement Of Stock
Consolidated Statement Of Stockholders' Equity - 3 months ended Dec. 31, 2018 - USD ($) $ in Millions | Total | Common stock | Additional paid-in capital | Accumulated deficit | Accumulated other comprehensive income (loss) | Noncontrolling Interest [Member] |
Balance at Sep. 30, 2018 | $ 564.8 | $ 1.6 | $ 1,444.5 | $ (850) | $ (32.8) | $ 1.5 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared | (7.9) | 0 | (7.9) | 0 | 0 | 0 |
Stock-based compensation | 1.7 | 0 | 1.7 | 0 | 0 | 0 |
Shares retained for employee taxes | (1.2) | 0 | 0 | 0 | 0 | |
Stock issued under stock compensation plans | 3.1 | 0 | 3.1 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | (0.8) | 0 | 0 | 0 | (0.8) | 0 |
Net Income (Loss) Attributable to Parent | (21) | 0 | 0 | 0 | ||
Net Income (Loss) Attributable to Noncontrolling Interest | 0.2 | |||||
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (20.8) | |||||
Balance at Dec. 31, 2018 | $ 538.9 | $ 1.6 | $ 1,440.2 | $ (871) | $ (33.6) | $ 1.7 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net Income (Loss) Attributable to Parent | $ (21) | $ 55.1 |
Adjustments to reconcile net income (loss) to income (loss) from continuing operations: | ||
Depreciation | 6.1 | 4.9 |
Amortization | 6 | 5.7 |
Stock-based compensation expense | 1.7 | 2 |
Deferred income taxes | (2.2) | (39.7) |
Gain on sale of idle property | 0 | 9 |
Retirement plans | 0.3 | 0.7 |
Other, net | 1.2 | 0.7 |
Changes in assets and liabilities, net of acquisitions: | ||
Receivables | 57.7 | 38.4 |
Inventories | (21.9) | (16.3) |
Other current assets and other noncurrent assets | (3.5) | (0.8) |
Walter accrual | 37.4 | 0 |
Accounts payable and other liabilities | (51.9) | (41.2) |
Net cash provided by (used in) operating activities | 9.9 | 0.5 |
Investing activities: | ||
Capital expenditures | (15.9) | (6.4) |
Proceeds from sales of assets | 0 | 7.4 |
Acquisition, net of cash received | (123) | 0 |
Net cash provided by (used in) investing activities | (138.9) | 1 |
Financing activities: | ||
Dividends paid | (7.9) | (6.3) |
Repayments of debt | 0 | (1.2) |
Repayment of Krausz debt | (13.2) | 0 |
Common stock issued | 3.1 | 4.3 |
Shares retained for employee taxes | (1.2) | (1.8) |
Other | 0.4 | 0 |
Stock repurchased under buyback program | 0 | 10 |
Net cash used in financing activities | (18.8) | (15) |
Effect of currency exchange rate changes on cash | (0.5) | 0.1 |
Net Cash Provided by (Used in) Discontinued Operations [Abstract] | ||
Net change in cash and cash equivalents | (148.3) | (13.4) |
Cash and cash equivalents at beginning of period | 347.1 | |
Cash and cash equivalents at end of period | $ 198.8 | $ 348.3 |
Organization
Organization | 3 Months Ended |
Dec. 31, 2018 | |
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: Infrastructure and Technologies. Infrastructure 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 a broad line of pipe repair products, such as clamps and couplings used to repair leaks. 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. Infrastructure 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 income or 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. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended September 30, 2018 . 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, 2018 was derived from audited financial statements, but it does not include all disclosures required by GAAP. On December 3, 2018, we completed our acquisition of Krausz Industries Ltd. (“Krausz”). The operating results of Krausz are reported on a one-month lag beginning in the quarter ended December 31, 2018. For the quarter ended December 31, 2018, the consolidated balance sheet includes an estimated opening balance sheet for Krausz, but the consolidated statements of operations and of cash flows exclude the results of Krausz’s operations. Refer to Note 2 for additional disclosures related to the acquisition. HR-1, commonly referred to as the Tax Cuts and Jobs Act, was enacted on December 22, 2017 and made significant revisions to federal income tax laws, including lowering the corporate income tax rate to 21% from 35% , effective January 1, 2018. The effects of these revisions are discussed in Note 4. In May 2014, the Financial Accounting Standards Board (“FASB”) issued new guidance for the recognition of revenue and requiring additional financial statement disclosures. On October 1, 2018, we adopted the new guidance related to revenue recognition from contracts with customers. The new guidance was adopted using the modified retrospective approach and no transition adjustment was required. See Note 3 for more information regarding our adoption of ASC 606 - Revenue from Contracts with Customers. During 2016, FASB issued Accounting Standards Update 2016-02 Leases , which will require us to recognize lease assets and lease liabilities for those leases currently referred to as operating leases. We will adopt this guidance using the modified retrospective transition method beginning in the first quarter of fiscal 2020. We are currently assessing our specific implementation approach and finalizing our estimate of the impact of this Update, which we do not believe will be material to our consolidated financial statements as a whole. In 2017, we announced a strategic reorganization plan designed to accelerate our product innovation and revenue growth, through the adoption of a matrix management structure, where business teams have line and cross-functional responsibility for managing distinct product portfolios, and engineering, operations, sales and marketing and other functions are centralized to better align with business needs and generate greater efficiencies, which was essentially completed in 2018. In October 2018, we announced the move of our Middleborough, Massachusetts facility to Atlanta to consolidate our resources and accelerate product innovation through creation of a research and development center of excellence for software and electronics. Costs and expenses in the quarters ended December 31, 2018 and 2017 for these plans, included in strategic reorganization and other charges, were primarily personnel-related. Activity in accrued restructuring, reported as part of other current liabilities, is presented below. Three months ended December 31, 2018 2017 (in millions) Beginning balance $ 0.9 $ 3.3 Expense 2.4 2.3 Payments (1.1 ) (1.4 ) Ending balance $ 2.2 $ 4.2 |
Acquisitions and Divestures Bus
Acquisitions and Divestures Business Combinations (Notes) | 3 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | cquisition of Krausz Industries On December 3, 2018, we completed our acquisition of Krausz, a manufacturer of pipe couplings, grips and clamps with operations in the United States and Israel, for $136.2 million , net of cash acquired, including the assumption and simultaneous repayment of certain debt of $13.2 million . The purchase agreement provides for customary final adjustments, including a net working capital adjustment, which we expect to occur in 2019. Annual sales for Krausz in 2017 were approximately $43.0 million . We have recognized the assets acquired and liabilities assumed at their estimated acquisition date fair values, with the excess of the consideration transferred over the estimated fair values of the identifiable net assets acquired recorded as goodwill. The accounting for the business combination is based on currently available information and is considered preliminary. We have retained a third party valuation specialist to assist in our estimate of the fair value of acquired intangible assets and we have not yet received a preliminary valuation report and therefore have not yet completed that estimate. We expect the fair value of total intangibles acquired may be significantly more than our estimate for certain intellectual property intangibles, which is included below. In addition, we are gathering information about income taxes and deferred income tax assets and liabilities, accounts receivables, inventories, property, plant, and equipment, other current assets and current liabilities based on facts that existed as of the date of the acquisition. The final accounting for the business combination may differ materially from that presented in these unaudited consolidated statements. The following is a summary of the preliminary estimated fair values of the net assets acquired (in millions): Assets acquired, net of cash: Receivables $ 8.8 Inventories 17.0 Other current assets 0.2 Property, plant and equipment 8.4 Intangible assets 9.9 Goodwill 101.5 Liabilities assumed (1) : Accounts payable (5.5 ) Other current liabilities (2.8 ) Deferred income taxes (1.3 ) Consideration paid $ 136.2 (1) Excludes certain debt assumed and immediately repaid of $13.2 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes On December 22, 2017, HR-1, commonly referred to as the Tax Cuts and Jobs Act (“Act”), was enacted, which made significant revisions to federal income tax laws, including lowering the corporate income tax rate to 21% from 35% effective January 1, 2018, overhauling the taxation of income earned outside the United States and eliminating or limiting certain deductions. Our deferred tax assets and liabilities are recorded at the enacted tax rates in effect when we expect to recognize the related tax expenses or benefits. These rates vary slightly from year to year but historically had been approximately 39% . With the legislation changing enacted rates taking place in the quarter ended December 31, 2017, we remeasured our deferred tax items at an average rate of approximately 25% and recorded an income tax benefit of $42.5 million. The Act also imposed a one-time transition tax on the undistributed, non-previously taxed, post-1986 foreign “earnings and profits” (as defined by the IRS) of certain U.S.-owned corporations. Determination of our transition tax liability required us to calculate foreign earnings and profits going back to 1992 and then to assess our historical overall foreign loss position and the applicability of certain foreign tax credits. For the quarter ended March 31, 2018, we recorded a provisional transaction tax of $7.5 million for the one-time deemed repatriation tax on accumulated foreign earnings of our foreign subsidiaries. Upon further analyses of the Act and Notices and regulations issued and proposed by the U.S. Department of the Treasury and the IRS, for the quarter ended December 31, 2018, we finalized our calculations of the transition tax liability, which reduced our initial provision by $0.6 million , and is included as a component of income tax expense in the quarter. As of December 31, 2018 , the remaining balance of our transition obligation is $6.9 million , which we have elected to pay will be paid over the next eight years, as provided in the Act. The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below. Three months ended December 31, 2018 2017 U.S. federal statutory income tax rate 21.0 % 24.5 % Adjustments to reconcile to the effective tax rate: State income taxes, net of federal benefit 3.3 4.3 Valuation allowance adjustment related to stock compensation — (5.7 ) Excess tax benefits related to stock compensation 1.3 (2.8 ) Domestic production activities deduction — (1.6 ) Tax credits 0.4 (0.9 ) Global Intangible Low-taxed Income (0.1 ) — Other (0.3 ) 0.5 25.6 % 18.3 % Walter Energy accrual (5.8 ) — Remeasurement related to tax law changes 2.1 (278.4 ) Effective income tax rate 21.9 % (260.1 )% At December 31, 2018 and September 30, 2018 , the gross liabilities for unrecognized income tax benefits were $3.4 million and $3.3 million |
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 December 31, 2018 2017 U.S. federal statutory income tax rate 21.0 % 24.5 % Adjustments to reconcile to the effective tax rate: State income taxes, net of federal benefit 3.3 4.3 Valuation allowance adjustment related to stock compensation — (5.7 ) Excess tax benefits related to stock compensation 1.3 (2.8 ) Domestic production activities deduction — (1.6 ) Tax credits 0.4 (0.9 ) Global Intangible Low-taxed Income (0.1 ) — Other (0.3 ) 0.5 25.6 % 18.3 % Walter Energy accrual (5.8 ) — Remeasurement related to tax law changes 2.1 (278.4 ) Effective income tax rate 21.9 % (260.1 )% |
Borrowing Arrangements
Borrowing Arrangements | 3 Months Ended |
Dec. 31, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Borrowing Arrangements | Borrowing Arrangements The components of our long-term debt are presented below. December 31, September 30, 2018 2018 (in millions) 5.5% Senior Notes $ 450.0 $ 450.0 ABL Agreement — — Other 2.0 1.6 452.0 451.6 Less deferred financing costs 6.4 6.6 Less current portion 0.8 0.7 Long-term debt $ 444.8 $ 444.3 5.5% Senior Unsecured Notes. On June 12, 2018 , we privately issued $450.0 million of 5.5% Senior Unsecured Notes (“Notes”), which mature in 2026 and bear interest at 5.5% . We capitalized $6.6 million of financing costs, which are being amortized over the term of the Notes using the effective interest method. Proceeds from the Notes along with other cash, were used to repay our Term Loan. Substantially all of our U.S. Subsidiaries guarantee the Notes, which are subordinate to borrowings under the ABL. Based on quoted market prices, the outstanding Notes had a fair value of $436.5 million at December 31, 2018. ABL Agreement . At December 31, 2018 , our asset based lending agreement (“ABL Agreement”) consisted of a revolving credit facility for up to $175 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 we are permitted to issue up to $60 million of letters of credit. 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 December 31, 2018 , the applicable rate was LIBOR plus 125 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 December 31, 2018 data, as reduced by outstanding letters of credit and accrued fees and expenses of $16.1 million , was $93.8 million |
Derivative Financial Instrument
Derivative Financial Instruments (Notes) | 3 Months Ended |
Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Financial Instruments In connection with the acquisition of Singer Valve in 2017, we loaned funds to one of our Canadian subsidiaries. Although this intercompany loan has no direct effect on our consolidated financial statements, it creates exposure to currency risk for the Canadian subsidiary. To reduce this exposure, we entered into a U.S. dollar-Canadian dollar swap contract with the Canadian subsidiary and an offsetting Canadian dollar-U.S. dollar swap with a domestic bank. We have not designated these swaps as hedges and the changes in their fair value are included in earnings, where they offset the currency gains and losses associated with the intercompany loan. The values of our currency swap contracts were an asset of $46 thousand and a liability of $0.9 million |
Retirement Plans
Retirement Plans | 3 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Retirement Plans | Retirement Plans The components of net periodic benefit cost for our pension plans are presented below. Three months ended December 31, 2018 2017 (in millions) Service cost $ 0.4 $ 0.5 Pension costs (benefits) other than service: Interest cost 3.5 3.6 Expected return on plan assets (4.1 ) (4.2 ) Amortization of actuarial net loss 0.5 0.8 Pension costs (benefits) other than service (0.1 ) 0.2 Net periodic benefit cost $ 0.3 $ 0.7 |
Stock-based Compensation Plans
Stock-based Compensation Plans | 3 Months Ended |
Dec. 31, 2018 | |
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 performance-based restricted stock units (“PRSUs”) under our Amended and Restated 2006 Mueller Water Products, Inc. Stock Incentive Plan (the “2006 Stock 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, we consider that portion of a PRSU award to be granted. Thus, each award consists of a grant in the year of award and grants in the designated following years. Settlements, in our common shares, will range from zero to two times the number of PRSUs granted, depending on our financial performance against the targets. We awarded 332,875 stock-settled PRSUs in the quarter ended December 31, 2018 , which are scheduled to settle in 3 years. We issued 181,065 shares and 146,061 shares of common stock during the quarters ended December 31, 2018 and 2017 , respectively, to settle PRSUs. In addition to the PRSU activity, 143,809 restricted stock units vested during the quarter ended December 31, 2018 . We have granted cash-settled Phantom Plan instruments under the Mueller Water Products, Inc. Phantom Plan (“Phantom Plan”). At December 31, 2018 , the outstanding Phantom Plan instruments had a fair value of $9.10 per instrument and our liability for Phantom Plan instruments was $0.6 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 three months ended December 31, 2018 as follows. Number granted Weighted average grant date fair value per instrument Total grant date fair value (in millions) Restricted stock units 147,409 $ 10.53 $ 1.6 Employee stock purchase plan instruments 45,464 2.30 0.1 Phantom Plan awards 168,380 10.53 1.8 PRSUs: 2019 award 110,595 10.53 1.2 2018 award 49,236 10.53 0.5 2017 award 31,229 10.53 0.3 $ 5.5 Operating income included stock-based compensation expense of $1.7 million and $2.4 million during the three months ended December 31, 2018 and 2017 , respectively. At December 31, 2018 , there was approximately $9.2 million of unrecognized compensation expense related to stock-based compensation arrangements, and there were 279,024 PRSUs that have been awarded for the 2020 and 2021 performance periods, for which performance goals have not been set. We excluded 165,467 and 70,996 of stock-based compensation instruments from the calculations of diluted earnings per share for the quarters ended December 31, 2018 and 2017 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Supplemental Balance Sheet Information | Selected supplemental balance sheet information is presented below. December 31, September 30, 2018 2018 (in millions) Inventories: Purchased components and raw material $ 90.4 $ 81.6 Work in process 44.7 37.8 Finished goods 59.8 37.2 $ 194.9 $ 156.6 Other current assets: Maintenance and repair tooling $ 3.7 $ 3.5 Income taxes 1.7 1.6 Other 15.5 12.4 $ 20.9 $ 17.5 Property, plant and equipment: Land $ 5.4 $ 5.4 Buildings 58.4 55.9 Machinery and equipment 326.2 311.4 Construction in progress 32.2 22.2 422.2 394.9 Accumulated depreciation (254.1 ) (244.0 ) $ 168.1 $ 150.9 Other current liabilities: Compensation and benefits $ 21.4 $ 31.7 Customer rebates 10.8 9.7 Taxes other than income taxes 2.8 3.3 Warranty 9.1 6.0 Income taxes 4.0 7.6 Environmental 1.2 1.2 Interest 1.7 8.0 Restructuring 2.2 0.9 Walter Energy accrual 37.4 — Other 13.6 8.0 $ 104.2 $ 76.4 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Accumulated other comprehensive loss is presented below. Pension, net of tax Foreign currency translation Total (in millions) Balance at September 30, 2018 $ (26.5 ) $ (6.3 ) $ (32.8 ) Current period other comprehensive income (loss) 0.4 (1.2 ) (0.8 ) Balance at December 31, 2018 $ (26.1 ) $ (7.5 ) $ (33.6 ) |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2018 | |
Segment Reporting, Measurement Disclosures [Abstract] | |
Segment Reporting Disclosure [Text Block] | Segment Information Summarized financial information for our segments is presented below. Three months ended December 31, 2018 2017 (in millions) Net sales, excluding intercompany: Infrastructure $ 172.0 $ 160.1 Technologies 20.8 18.2 $ 192.8 $ 178.3 Operating income (loss): Infrastructure $ 30.9 $ 28.1 Technologies (3.7 ) (4.7 ) Corporate (11.3 ) (2.7 ) $ 15.9 $ 20.7 Depreciation and amortization: Infrastructure $ 10.1 $ 9.1 Technologies 2.0 1.4 Corporate — 0.1 $ 12.1 $ 10.6 Strategic reorganization and other charges: Infrastructure $ — $ — Technologies — 0.1 Corporate 3.2 3.8 $ 3.2 $ 3.9 Capital expenditures: Infrastructure $ 14.8 $ 4.8 Technologies 1.1 1.5 Corporate — 0.1 $ 15.9 $ 6.4 Infrastructure disaggregated net revenues: Central $ 40.3 $ 39.4 Northeast 37.9 37.7 Southeast 34.7 28.9 West 44.8 39.9 United States 157.7 145.9 Canada 9.9 11.0 Other international locations 4.4 3.2 $ 172.0 $ 160.1 Technologies disaggregated net revenues: Central 6.5 3.5 Northeast 3.4 4.0 Southeast 6.8 7.5 West $ 2.7 $ 1.9 United States 19.4 16.9 Canada 0.2 0.1 Other international locations 1.2 1.2 $ 20.8 $ 18.2 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2018 | |
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 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 International plc, now Johnson Controls International plc (“Tyco”), sold our businesses to a previous owner in August 1999, Tyco agreed to indemnify us and our affiliates, among other things, for all “Excluded Liabilities.” Excluded Liabilities include, among other things, substantially all liabilities relating to the time prior to August 1999, including environmental liabilities. The indemnity survives indefinitely. Tyco’s indemnity does not cover liabilities to the extent caused by us or the operation of our businesses after August 1999, nor does it cover liabilities arising with respect to businesses or sites acquired after August 1999. Since 2007, Tyco has engaged in multiple corporate restructurings, split-offs and divestitures. While none of these transactions directly affects the indemnification obligations of the Tyco indemnitors under the 1999 acquisition agreement, the result of such transactions is that the assets of, and control over, such Tyco indemnitors has changed. Should any of these Tyco indemnitors become financially unable or fail to comply with the terms of the indemnity, we may be responsible for such obligations or liabilities. On July 13, 2010, Rohcan Investments Limited, the former owner of property leased by Mueller Canada Ltd. and located in Milton, Ontario, filed suit against Mueller Canada Ltd. and its directors seeking C$10.0 million in damages arising from the defendants’ alleged environmental contamination of the property and breach of lease. Mueller Canada Ltd. leased the property from 1988 through 2008. We are pursuing indemnification from a former owner for certain potential liabilities that are alleged in this lawsuit, and we have accrued for other liabilities not covered by indemnification. On December 7, 2011, the Court denied the plaintiff’s motion for summary judgment. The purchaser of U.S. Pipe has been identified as a “potentially responsible party” (“PRP”) under the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”) in connection with a former manufacturing facility operated by U.S. Pipe that was in the vicinity of a proposed Superfund site located in North Birmingham, Alabama. Under the terms of the acquisition agreement relating to our sale of U.S. Pipe, we agreed to indemnify the purchaser for certain environmental liabilities, including those arising out of the former manufacturing site in North Birmingham. Accordingly, the purchaser tendered the matter to us for indemnification, which we accepted. Ultimate liability for the site will depend on many factors that have not yet been determined, including the determination of 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. Accordingly, because the amount of such costs cannot be reasonably estimated at this time, no amounts had been accrued for this matter at December 31, 2018 . Walter Energy . We were a member of the Walter Energy, Inc (“Walter Energy”) federal tax consolidated group, through December 14, 2006, at which time the company was spun-off from Walter Energy. Until our spin-off from Walter Energy, we joined in the filing of Walter Energy’s consolidated federal income tax return for each taxable year during which we were a member of the consolidated group. As a result, we are severally liable for the federal income tax liability, if any, of the consolidated group for each of those years. 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 that consolidated group. In July 2015, Walter Energy filed for bankruptcy protection under Chapter 11 of the U.S. Bankruptcy Code in the Northern District of Alabama (“Chapter 11 Case”). In February 2017, the Chapter 11 case was converted to a liquidation proceeding under Chapter 7 of the U.S. Bankruptcy Code, pursuant to which Walter Energy is now in the process of being wound down and liquidated. The IRS has asserted that Walter Energy owes substantial amounts for prior taxable periods in which we were a member of the Walter Energy tax consolidated group (specifically, 1983-1994, 2000-2002 and 2005). On January 11, 2016, the IRS filed a proof of claim (“IRS Claim”) in the Chapter 11 Case, alleging that Walter Energy owes taxes, interest and penalties for the years 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 Claim was based on IRS estimates of Walter Energy’s tax liability for years 1983 through 1994, which Walter Energy disputed. In the IRS claim, the IRS included an alternative calculation in an aggregate amount of $860.4 million , which it asserted would be appropriate in the event the alleged settlement is determined to be non-binding ( $535.3 million of which the IRS claims is entitled to priority status in the Chapter 11 Case). The IRS has indicated its intent to pursue collection of amounts included in the proofs of claim from former members of the Walter Energy tax consolidated group. These liabilities are potentially significant and, if not concluded favorably, could have a material adverse effect on our business, financial condition, liquidity or results of operations. After extensive work and discussions with the IRS, the Department of Justice, the Walter Energy bankruptcy trustee, and other involved parties and experts, the IRS has provided us with a $37.4 million calculation of the tax liability emanating from the activities of certain businesses of our former parent, Walter Energy (“Walter Tax Liability”; also see Item 3 - Legal Proceedings and Item 1A - Risk Factors in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018 for additional details regarding the issues associated with the Walter Tax Liability). The IRS calculation includes interest amounts calculated through January 31, 2019 and these interest amounts will continue to accrue until the matter is finalized. Accordingly, for the quarter ended December 31, 2018, we recorded a $37.4 million accrual (“Walter Energy Accrual”) related to the Walter Tax Liability. The Walter Energy Accrual consists of approximately $7.4 million in unpaid taxes and $30.0 million of related interest. While our previous activities and tax positions were not the source of the Walter Tax Liability, since we were a member of the Walter Energy consolidated tax group in certain historic periods, under federal law, each member of a consolidated group for U.S. federal income tax purposes can be severally liable for the federal income tax liability of each other member of the consolidated group for any year in which it was a member of the consolidated tax group. Thus, we are recording the Walter Energy Accrual due to the operation of several liability under federal law. We are continuing to work with the other parties involved in this matter in an effort to negotiate a settlement with respect to the Walter Tax Liability, but there can be no assurance that we will be able to reach a resolution with the parties involved in this matter. Indemnifications . We are a party to contracts in which it is common for us to agree to indemnify third parties for certain liabilities that arise out of or relate to the subject matter of the contract. In some cases, this indemnity extends to related liabilities arising from the negligence of the indemnified parties, but usually excludes any liabilities caused by gross negligence or willful misconduct. We cannot estimate the potential amount of future payments under these indemnities until events arise that would trigger a liability under the indemnities. Additionally, in connection with the sale of assets and the divestiture of businesses, such as the divestitures of U.S. Pipe and Anvil, we may agree to indemnify buyers and related parties for certain losses or liabilities incurred by these parties with respect to: (i) the representations and warranties made by us to these parties in connection with the sale and (ii) liabilities related to the pre-closing operations of the assets or business sold. Indemnities related to pre-closing operations generally include certain environmental and tax liabilities and other liabilities not assumed by these parties in the transaction. Indemnities related to the pre-closing operations of sold assets or businesses normally do not represent additional liabilities to us, but simply serve to protect these parties from potential liability associated with our obligations existing at the time of the sale. As with any liability, we have accrued for those pre-closing obligations that are considered probable and reasonably estimable. Should circumstances change, increasing the likelihood of payments related to a specific indemnity, we will accrue a liability when future payment is probable and the amount is reasonably estimable. Other Matters. We monitor and analyze our warranty experience and costs periodically and may revise our reserves as necessary. Critical factors in our reserve analyses include warranty terms, specific claim situations, general incurred and projected failure rates, the nature of product failures, product and labor costs, and general business conditions. In 2017 our warranty analyses identified certain Technologies radio products produced prior to 2017 and installed in particularly harsh environments had 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 warranty expenses. As a result, we recorded an additional warranty expense of $9.8 million in the second quarter of 2017. During the quarter ended June 30, 2018, we completed a similar analysis and determined, based on this new information, that certain other Technologies products had been failing at higher-than-expected rates as well, and that the average cost to repair or replace certain products under warranty was higher than previously estimated. As a result, in the third quarter of 2018, we recorded an additional warranty expense of $14.1 million associated with such products. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On January 22, 2019 , our board of directors declared a dividend of $0.05 per share on our common stock, payable on or about February 20, 2019 to stockholders of record at the close of business on February 8, 2019 |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 3 Months Ended |
Dec. 31, 2018 | |
Revenue from Contracts with Customers [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers We recognize revenue, in an amount that reflects the consideration we expect to be entitled to in exchange for transferring those products or providing those services, when control of the promised products or services is transferred to our customers. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. Disaggregation of Revenue We disaggregate our revenue from contracts with customers by reporting unit, which are the same as our reportable segments (Note 10), and further by geographical region as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographical region represents the location of the customer. Contract Asset and Liability Balances The timing of revenue recognition, billings and cash collections results in customer receivables, advance payments and billings in excess of revenue recognized. Customer receivables includes amounts billed and currently due from customers as well as unbilled amounts (contract assets). Amounts are billed in accordance with contractual terms and unbilled amounts arise when the timing of billing differs from the timing of revenue recognized. Customer receivables are recorded at face amounts less an allowance for doubtful accounts. We maintain an allowance for doubtful accounts for estimated losses as a result of customers’ inability to make required payments. We evaluate the aging of the customer receivable balances, the financial condition of our customers, historical trends and the time outstanding of specific balances to estimate the amount of customer receivables that may not be collected in the future and record the appropriate provision. Advance payments and billings in excess of revenue are recognized and recorded as deferred revenue, the majority of which is classified as current based on the timing when we expect to recognize revenue. We include current deferred revenue as part of our accrued expenses. Deferred revenues represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements. Contract liabilities are reversed when revenue is recognized and the performance obligation is satisfied. The table below represents the balances of our customer receivables and deferred revenues. December 31, September 30, 2018 2018 (in millions) Billed receivables $ 112.4 $ 165.3 Unbilled receivables 5.0 2.4 Total customer receivables $ 117.4 $ 167.7 Deferred revenue $ 3.9 $ 3.3 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Our performance obligations are satisfied at a point in time as related to sales of equipment or over time as related to our software hosting and leak detection monitoring services. Performance obligations are supported by contracts with customers that provide a framework for the nature of the distinct products or services. We allocate the transaction price of each contract to the performance obligations on the basis of standalone selling price and recognize revenue when, or as, control of the performance obligation transfers to the customers. We have elected to use the practical expedient to not adjust the transaction price for a contract for the effects of a significant financing component, if at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less. Revenue from products and services transferred to customers at a point in time represented 98% of our revenue in the first three months of fiscal year 2019. The revenue recognized at a point in time relates to the sale of the majority of our products and is recognized when the obligations of the terms of our contract are satisfied, which generally occurs upon shipment, when control of the product transfers to the customer. Revenue from products and services transferred to customers over time represented 2% of our revenue in the first three months of fiscal year 2019. We offer warranties to our customers in the form of assurance-type warranties, which provide assurance that the related product provided will function as intended and comply with any agreed-upon specifications. These cannot be purchased separately. There is no change to our warranty accounting as a result of the implementation of the new revenue standard and we will continue to use our current cost accrual method in accordance with GAAP. Costs to Obtain or Fulfill a Contract |
Organization Restructuring Roll
Organization Restructuring Rollforward (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring and Related Costs [Table Text Block] | Activity in accrued restructuring, reported as part of other current liabilities, is presented below. Three months ended December 31, 2018 2017 (in millions) Beginning balance $ 0.9 $ 3.3 Expense 2.4 2.3 Payments (1.1 ) (1.4 ) Ending balance $ 2.2 $ 4.2 |
Acquisitions and Divestures Acq
Acquisitions and Divestures Acquisitions (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The following is a summary of the preliminary estimated fair values of the net assets acquired (in millions): Assets acquired, net of cash: Receivables $ 8.8 Inventories 17.0 Other current assets 0.2 Property, plant and equipment 8.4 Intangible assets 9.9 Goodwill 101.5 Liabilities assumed (1) : Accounts payable (5.5 ) Other current liabilities (2.8 ) Deferred income taxes (1.3 ) Consideration paid $ 136.2 (1) Excludes certain debt assumed and immediately repaid of $13.2 million. |
Income Taxes Rate Reconciliatio
Income Taxes Rate Reconciliation (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 2017 U.S. federal statutory income tax rate 21.0 % 24.5 % Adjustments to reconcile to the effective tax rate: State income taxes, net of federal benefit 3.3 4.3 Valuation allowance adjustment related to stock compensation — (5.7 ) Excess tax benefits related to stock compensation 1.3 (2.8 ) Domestic production activities deduction — (1.6 ) Tax credits 0.4 (0.9 ) Global Intangible Low-taxed Income (0.1 ) — Other (0.3 ) 0.5 25.6 % 18.3 % Walter Energy accrual (5.8 ) — Remeasurement related to tax law changes 2.1 (278.4 ) Effective income tax rate 21.9 % (260.1 )% |
Borrowing Arrangements (Tables)
Borrowing Arrangements (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Long-term Debt and Capital Lease Obligations [Abstract] | |
Components of Long-Term Debt | The components of our long-term debt are presented below. December 31, September 30, 2018 2018 (in millions) 5.5% Senior Notes $ 450.0 $ 450.0 ABL Agreement — — Other 2.0 1.6 452.0 451.6 Less deferred financing costs 6.4 6.6 Less current portion 0.8 0.7 Long-term debt $ 444.8 $ 444.3 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Defined Benefit Plan [Abstract] | |
Schedule of Net Periodic Benefit Cost | The components of net periodic benefit cost for our pension plans are presented below. Three months ended December 31, 2018 2017 (in millions) Service cost $ 0.4 $ 0.5 Pension costs (benefits) other than service: Interest cost 3.5 3.6 Expected return on plan assets (4.1 ) (4.2 ) Amortization of actuarial net loss 0.5 0.8 Pension costs (benefits) other than service (0.1 ) 0.2 Net periodic benefit cost $ 0.3 $ 0.7 |
Stock-based Compensation Plans
Stock-based Compensation Plans (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Share-based Compensation [Abstract] | |
Share-based Compensation, Activity [Table Text Block] | Number granted Weighted average grant date fair value per instrument Total grant date fair value (in millions) Restricted stock units 147,409 $ 10.53 $ 1.6 Employee stock purchase plan instruments 45,464 2.30 0.1 Phantom Plan awards 168,380 10.53 1.8 PRSUs: 2019 award 110,595 10.53 1.2 2018 award 49,236 10.53 0.5 2017 award 31,229 10.53 0.3 $ 5.5 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule Of Selected Supplemental Balance Sheet Information [Table Text Block] | ental balance sheet information is presented below. December 31, September 30, 2018 2018 (in millions) Inventories: Purchased components and raw material $ 90.4 $ 81.6 Work in process 44.7 37.8 Finished goods 59.8 37.2 $ 194.9 $ 156.6 Other current assets: Maintenance and repair tooling $ 3.7 $ 3.5 Income taxes 1.7 1.6 Other 15.5 12.4 $ 20.9 $ 17.5 Property, plant and equipment: Land $ 5.4 $ 5.4 Buildings 58.4 55.9 Machinery and equipment 326.2 311.4 Construction in progress 32.2 22.2 422.2 394.9 Accumulated depreciation (254.1 ) (244.0 ) $ 168.1 $ 150.9 Other current liabilities: Compensation and benefits $ 21.4 $ 31.7 Customer rebates 10.8 9.7 Taxes other than income taxes 2.8 3.3 Warranty 9.1 6.0 Income taxes 4.0 7.6 Environmental 1.2 1.2 Interest 1.7 8.0 Restructuring 2.2 0.9 Walter Energy accrual 37.4 — Other 13.6 8.0 $ 104.2 $ 76.4 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Schedule Of Accumulated Other Comprehensive Loss | Accumulated other comprehensive loss is presented below. Pension, net of tax Foreign currency translation Total (in millions) Balance at September 30, 2018 $ (26.5 ) $ (6.3 ) $ (32.8 ) Current period other comprehensive income (loss) 0.4 (1.2 ) (0.8 ) Balance at December 31, 2018 $ (26.1 ) $ (7.5 ) $ (33.6 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
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 December 31, 2018 2017 (in millions) Net sales, excluding intercompany: Infrastructure $ 172.0 $ 160.1 Technologies 20.8 18.2 $ 192.8 $ 178.3 Operating income (loss): Infrastructure $ 30.9 $ 28.1 Technologies (3.7 ) (4.7 ) Corporate (11.3 ) (2.7 ) $ 15.9 $ 20.7 Depreciation and amortization: Infrastructure $ 10.1 $ 9.1 Technologies 2.0 1.4 Corporate — 0.1 $ 12.1 $ 10.6 Strategic reorganization and other charges: Infrastructure $ — $ — Technologies — 0.1 Corporate 3.2 3.8 $ 3.2 $ 3.9 Capital expenditures: Infrastructure $ 14.8 $ 4.8 Technologies 1.1 1.5 Corporate — 0.1 $ 15.9 $ 6.4 Infrastructure disaggregated net revenues: Central $ 40.3 $ 39.4 Northeast 37.9 37.7 Southeast 34.7 28.9 West 44.8 39.9 United States 157.7 145.9 Canada 9.9 11.0 Other international locations 4.4 3.2 $ 172.0 $ 160.1 Technologies disaggregated net revenues: Central 6.5 3.5 Northeast 3.4 4.0 Southeast 6.8 7.5 West $ 2.7 $ 1.9 United States 19.4 16.9 Canada 0.2 0.1 Other international locations 1.2 1.2 $ 20.8 $ 18.2 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Schedule of Financing Receivables, Minimum Payments [Table Text Block] | The table below represents the balances of our customer receivables and deferred revenues. December 31, September 30, 2018 2018 (in millions) Billed receivables $ 112.4 $ 165.3 Unbilled receivables 5.0 2.4 Total customer receivables $ 117.4 $ 167.7 Deferred revenue $ 3.9 $ 3.3 |
Organization (Details)
Organization (Details) $ in Millions | Jul. 31, 2014 | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2017 |
Segment Reporting Information [Line Items] | |||||
Beginning balance | $ 0.9 | $ 3.3 | $ 0.9 | ||
Restructuring | 3.2 | 3.9 | |||
Payments | 1.1 | $ 1.4 | |||
Number of Reportable Segments | 2,000,000 | ||||
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage | 49.00% | ||||
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | $ (0.1) | $ 0.2 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 24.50% | 35.00% | ||
Mueller Co. [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Restructuring | $ 0 | $ 0 | |||
Scenario, Forecast [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% |
Organization Restructuring (Det
Organization Restructuring (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Beginning balance | $ 0.9 | $ 3.3 |
Restructuring | 3.2 | 3.9 |
Payments | (1.1) | (1.4) |
Mueller One Project [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring | $ 2.4 | $ 2.3 |
Acquisitions and Divestures (Na
Acquisitions and Divestures (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Gain on sale of idle property | $ 0 | $ 9 |
Restructuring | 3.2 | $ 3.9 |
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Noncurrent | Divestiture of Burlington plant On December 4, 2017, we sold an idle property in Burlington, New Jersey that had previously been a plant in our former U.S. Pipe segment and recorded a gain of $9.0 million on our Corporate segment. We received $7.4 million in cash, recorded net current assets of $0.8 million and conveyed plant, property and equipment with a net carrying value of $0.4 million , and the buyer assumed related environmental liabilities with a carrying value of $1.2 million | |
Repayment of Krausz debt | $ (13.2) | $ 0 |
Cash [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | 7.4 | |
Prepaid Expenses and Other Current Assets [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 0.8 | |
Property, Plant and Equipment [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 0.4 | |
Environmental Remediation [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Consideration | $ 1.2 |
Acquisitions and Divestures (Sc
Acquisitions and Divestures (Schedule of Disposal Groups, Including Discontinued Operations) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Repayment of Krausz debt | $ (13.2) | $ 0 |
Prepaid Expenses and Other Current Assets [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 0.8 | |
Property, Plant and Equipment [Member] | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | $ (0.4) |
Acquisitions and Divestures A_2
Acquisitions and Divestures Acquisition (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Acquisition [Line Items] | ||
Business Combination, Consideration Transferred | $ 136.2 | |
Business Acquisition, Revenue Reported by Acquired Entity for Last Annual Period | $ 43 | |
Receivables | 8.8 | |
Inventories | 17 | |
Other current assets | 0.2 | |
Property, plant and equipment | 8.4 | |
Intangible assets | 9.9 | |
Goodwill | 101.5 | |
Accounts payable | (5.5) | |
Other current liabilities | (2.8) | |
Deferred income taxes | (1.3) | |
Business Combination, Consideration Transferred | $ 136.2 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Unrecognized Tax Benefits | $ 3.4 | $ 3.3 | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 24.50% | 35.00% | ||
Weighted Average Deferred Income Tax Provision Rate | 25.00% | 39.00% | |||
Transition Tax Expense | $ 6.9 | $ 7.5 | |||
Transition Tax True-up | $ 0.6 |
Income Taxes Income Tax Rate Re
Income Taxes Income Tax Rate Reconciliation (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 24.50% | 35.00% |
Adjustments to reconcile to the effective tax rate: | |||
State income taxes, net of federal benefit | 3.30% | 4.30% | |
Valuation allowance adjustment related to stock compensation | 0.00% | (5.70%) | |
Tax benefits from stock compensation | (1.30%) | 2.80% | |
U.S. manufacturing deduction | 0.00% | 1.60% | |
Tax credits | (0.40%) | 0.90% | |
Effective Income Tax Rate Reconciliation, GILTI, percent | (0.10%) | 0.00% | |
Other | 0.30% | 0.50% | |
Walter Energy accrual | (5.80%) | 0.00% | |
Change in rate for deferred taxes | 2.10% | (278.40%) | |
Effective income tax rate | 21.90% | (260.10%) |
Borrowing Arrangements (Narrati
Borrowing Arrangements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||||
Dec. 31, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | Sep. 30, 2015 | |
Cash and cash equivalents | $ 198.8 | $ 348.3 | $ 347.1 | $ 361.7 | |
Domestic Line of Credit [Member] | |||||
Revolving credit facility amount | (175) | ||||
Potential increase size of the credit facility by an additional amount | $ 150 | ||||
Line of Credit Facility, Interest Rate at Period End | 12500.00% | ||||
Agreement termination date | Jul. 13, 2021 | ||||
Aggregate commitments availability | $ 17.5 | ||||
Aggregate commitments availability, percentage | 10.00% | ||||
Outstanding letter of credit accrued fees and expenses | $ 16.1 | ||||
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses | 93.8 | ||||
Unsecured Debt [Member] | |||||
Long-term Debt, Gross | 450 | ||||
Future maturities of outstanding borrowings | |||||
Payments of Debt Issuance Costs | $ 6.6 | ||||
Swing Line Loans [Member] | |||||
Revolving credit facility amount | $ (25) | ||||
Letters Of Credit Outstanding [Member] | |||||
Revolving credit facility amount | $ (60) | ||||
Bonds [Member] | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.50% | ||||
Future maturities of outstanding borrowings | |||||
Financial Liabilities Fair Value Disclosure | $ 436.5 | ||||
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] | 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 (Compone
Borrowing Arrangements (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 |
Debt instrument | $ 452 | $ 451.6 |
Deferred financing costs | 6.4 | 6.6 |
Current portion of long-term debt | 0.8 | 0.7 |
Long-term debt | 444.8 | 444.3 |
Domestic Line of Credit [Member] | ||
Debt instrument | 0 | 0 |
Unsecured Debt [Member] | ||
5.5% Senior Notes | 450 | 450 |
Other [Member] | ||
Debt instrument | $ 2 | $ 1.6 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Foreign Exchange Contract [Member] | ||
Derivative [Line Items] | ||
Other noncurrent liabilities | $ 46 | $ 900 |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($) | |
Decrease in accumulated other comprehensive loss net of tax | $ 0.4 |
Retirement Plans (Net Periodic
Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan, Service Cost | $ 0.4 | $ 0.5 |
Defined Benefit Plan, Interest Cost | 3.5 | 3.6 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (4.1) | (4.2) |
Amortization of actuarial net loss | 0.5 | 0.8 |
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost | (0.1) | 0.2 |
Net periodic benefit cost | $ 0.3 | $ 0.7 |
Stock-based Compensation Plan_2
Stock-based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2018USD ($)$ / sharesshares | Dec. 31, 2017USD ($)shares | |
Allocated Share-based Compensation Expense | $ | $ 1.7 | $ 2.4 |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ | $ 9.2 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 165,467 | 70,996 |
Phantom Share Units (PSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instrument Other than Option, Nonvested, Intrinsic Value | $ / shares | $ 9.10 | |
Share-based compensation liability | $ | $ 0.6 | |
Performance Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 181,065 | 146,061 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 332,875 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |
Share-based compensation, units awarded but not yet granted | 279,024 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 143,809 | |
Minimum [Member] | Performance Shares [Member] | ||
Performance Factor | 0 | |
Maximum [Member] | Performance Shares [Member] | ||
Performance Factor | 2 |
Stock-based Compensation Plan_3
Stock-based Compensation Plans Grants Table (Details) $ / shares in Units, $ in Millions | 3 Months Ended |
Dec. 31, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Granted, Value, Share-based Compensation, Gross | $ 5.5 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 147,409 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 10.53 |
Stock Granted, Value, Share-based Compensation, Gross | $ 1.6 |
Employee Stock [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 45,464 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 2.30 |
Stock Granted, Value, Share-based Compensation, Gross | $ 0.1 |
Phantom Share Units (PSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 168,380 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 10.53 |
Stock Granted, Value, Share-based Compensation, Gross | $ 1.8 |
Share-based Compensation Award, Tranche One [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 110,595 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 10.53 |
Stock Granted, Value, Share-based Compensation, Gross | $ 1.2 |
Share-based Compensation Award, Tranche Two [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 49,236 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 10.53 |
Stock Granted, Value, Share-based Compensation, Gross | $ 0.5 |
Share-based Compensation Award, Tranche Three [Member] | Performance Shares [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, shares | shares | 31,229 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ / shares | $ 10.53 |
Stock Granted, Value, Share-based Compensation, Gross | $ 0.3 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Sep. 30, 2017 |
Accrued Liabilities, Current | $ 104.2 | $ 76.4 | ||
Inventories: | ||||
Purchased components and raw material | 90.4 | 81.6 | ||
Work in process | 44.7 | 37.8 | ||
Finished goods | 59.8 | 37.2 | ||
Inventories, net | 194.9 | 156.6 | ||
Maintenance and repair tooling | 3.7 | 3.5 | ||
Income taxes | 1.7 | 1.6 | ||
Other | 15.5 | 12.4 | ||
Other | 20.9 | 17.5 | ||
Property, plant and equipment: | ||||
Land | 5.4 | 5.4 | ||
Buildings | 58.4 | 55.9 | ||
Machinery and equipment | 326.2 | 311.4 | ||
Construction in progress | 32.2 | 22.2 | ||
Property, plant and equipment, gross | 422.2 | 394.9 | ||
Accumulated depreciation | (254.1) | (244) | ||
Property, plant and equipment net | 168.1 | 150.9 | ||
Other current liabilities: | ||||
Compensation and benefits | 21.4 | 31.7 | ||
Customer rebates | 10.8 | 9.7 | ||
Interest | 1.7 | 8 | ||
Taxes other than income taxes | 2.8 | 3.3 | ||
Warranty | 9.1 | 6 | ||
Environmental | 1.2 | 1.2 | ||
Income taxes | 4 | 7.6 | ||
Restructuring | 2.2 | 0.9 | $ 4.2 | $ 3.3 |
Walter accrual | 37.4 | 0 | ||
Other Liabilities, Current | $ 13.6 | $ 8 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Schedule Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | $ (26.5) | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (6.3) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (33.6) | $ (32.8) | |
Minimum pension liability, net of tax | 0.4 | ||
Foreign currency translation | (1.2) | $ 0.1 | |
Other Comprehensive Income (Loss), Net of Tax | (0.8) | ||
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax | (26.1) | ||
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax | (7.5) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (33.6) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |
Number of Reportable Segments | 2,000,000 |
Segment Information (Schedule O
Segment Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Sep. 30, 2018 | |
Segment Reporting Information [Line Items] | |||
Revenues | $ 192.8 | $ 178.3 | |
Operating income | 15.9 | 20.7 | |
Depreciation and amortization | 12.1 | 10.6 | |
Restructuring | 3.2 | 3.9 | |
Payments to Acquire Productive Assets | 15.9 | 6.4 | |
Total assets | 1,259.1 | $ 1,291.9 | |
Intangible intangible assets, net | 412.6 | $ 408.1 | |
Mueller Co. [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 172 | 160.1 | |
Operating income | 30.9 | 28.1 | |
Depreciation and amortization | 10.1 | 9.1 | |
Restructuring | 0 | 0 | |
Payments to Acquire Productive Assets | 14.8 | 4.8 | |
Mueller Co. [Member] | Central Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 40.3 | 39.4 | |
Mueller Co. [Member] | Northeast Region [Member] [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 37.9 | 37.7 | |
Mueller Co. [Member] | Southeast Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 34.7 | 28.9 | |
Mueller Co. [Member] | Western Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 44.8 | 39.9 | |
Mueller Co. [Member] | UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenues | 157.7 | 145.9 | |
Mueller Co. [Member] | CANADA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 9.9 | 11 | |
Mueller Co. [Member] | Other International Locations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 4.4 | 3.2 | |
Mueller Technologies [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 20.8 | 18.2 | |
Operating income | (3.7) | (4.7) | |
Depreciation and amortization | 2 | 1.4 | |
Restructuring | 0 | 0.1 | |
Payments to Acquire Productive Assets | 1.1 | 1.5 | |
Mueller Technologies [Member] | Central Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6.5 | 3.5 | |
Mueller Technologies [Member] | Northeast Region [Member] [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 3.4 | 4 | |
Mueller Technologies [Member] | Southeast Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 6.8 | 7.5 | |
Mueller Technologies [Member] | Western Region [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 2.7 | 1.9 | |
Mueller Technologies [Member] | UNITED STATES | |||
Segment Reporting Information [Line Items] | |||
Revenues | 19.4 | 16.9 | |
Mueller Technologies [Member] | CANADA | |||
Segment Reporting Information [Line Items] | |||
Revenues | 0.2 | 0.1 | |
Mueller Technologies [Member] | Other International Locations [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 1.2 | 1.2 | |
Corporate [Member] | |||
Segment Reporting Information [Line Items] | |||
Operating income | (11.3) | (2.7) | |
Depreciation and amortization | 0 | 0.1 | |
Restructuring | 3.2 | 3.8 | |
Payments to Acquire Productive Assets | $ 0 | $ 0.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||||
Dec. 31, 2018USD ($) | Dec. 31, 2018CAD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2017USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Loss Contingency, Damages Sought, Value | $ 10 | |||||
Income Tax Examination, Penalties Accrued | $ 37.4 | |||||
Taxes Payable | 7.4 | |||||
Income Tax Examination, Penalties and Interest Expense | $ 30 | |||||
IRS-Walter Energy Claim 1 [Member] | ||||||
Loss Contingency, Estimate of Possible Loss | $ 554.3 | |||||
IRS-Walter Energy Claim 1 Priority [Member] | ||||||
Loss Contingency, Estimate of Possible Loss | $ 229.1 | |||||
IRS-Walter Energy Claim 2 [Member] | ||||||
Loss Contingency, Estimate of Possible Loss | 860.4 | |||||
IRS-Walter Energy Claim 2 Priority [Member] | ||||||
Loss Contingency, Estimate of Possible Loss | $ 535.3 | |||||
Product Concentration Risk [Member] | ||||||
Operating Leases | ||||||
Product Warranty Expense | $ 14.1 | $ 9.8 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | Feb. 20, 2019 | Feb. 08, 2019 | Jan. 22, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Subsequent Event [Line Items] | |||||
Dividends declared, in dollars per share | $ 0.05 | $ 0.04 | |||
Subsequent Event [Member] | |||||
Subsequent Event [Line Items] | |||||
Dividends Payable, Date Declared | Jan. 22, 2019 | ||||
Dividends declared, in dollars per share | $ 0.05 | ||||
Dividends Payable, Date to be Paid | Feb. 20, 2019 | ||||
Dividends Payable, Date of Record | Feb. 8, 2019 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2018 | Sep. 30, 2018 | |
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers We recognize revenue, in an amount that reflects the consideration we expect to be entitled to in exchange for transferring those products or providing those services, when control of the promised products or services is transferred to our customers. We account for a contract when it has approval and commitment from both parties, the rights of the parties are identified, the payment terms are identified, the contract has commercial substance and collectability of consideration is probable. We determine the appropriate revenue recognition for our contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. Disaggregation of Revenue We disaggregate our revenue from contracts with customers by reporting unit, which are the same as our reportable segments (Note 10), and further by geographical region as we believe it best depicts how the nature, amount, timing and uncertainty of our revenue and cash flows are affected by economic factors. Geographical region represents the location of the customer. Contract Asset and Liability Balances The timing of revenue recognition, billings and cash collections results in customer receivables, advance payments and billings in excess of revenue recognized. Customer receivables includes amounts billed and currently due from customers as well as unbilled amounts (contract assets). Amounts are billed in accordance with contractual terms and unbilled amounts arise when the timing of billing differs from the timing of revenue recognized. Customer receivables are recorded at face amounts less an allowance for doubtful accounts. We maintain an allowance for doubtful accounts for estimated losses as a result of customers’ inability to make required payments. We evaluate the aging of the customer receivable balances, the financial condition of our customers, historical trends and the time outstanding of specific balances to estimate the amount of customer receivables that may not be collected in the future and record the appropriate provision. Advance payments and billings in excess of revenue are recognized and recorded as deferred revenue, the majority of which is classified as current based on the timing when we expect to recognize revenue. We include current deferred revenue as part of our accrued expenses. Deferred revenues represent contract liabilities and are recorded when customers remit contractual cash payments in advance of us satisfying performance obligations under contractual arrangements. Contract liabilities are reversed when revenue is recognized and the performance obligation is satisfied. The table below represents the balances of our customer receivables and deferred revenues. December 31, September 30, 2018 2018 (in millions) Billed receivables $ 112.4 $ 165.3 Unbilled receivables 5.0 2.4 Total customer receivables $ 117.4 $ 167.7 Deferred revenue $ 3.9 $ 3.3 Performance Obligations A performance obligation is a promise in a contract to transfer a distinct good or service to the customer. Our performance obligations are satisfied at a point in time as related to sales of equipment or over time as related to our software hosting and leak detection monitoring services. Performance obligations are supported by contracts with customers that provide a framework for the nature of the distinct products or services. We allocate the transaction price of each contract to the performance obligations on the basis of standalone selling price and recognize revenue when, or as, control of the performance obligation transfers to the customers. We have elected to use the practical expedient to not adjust the transaction price for a contract for the effects of a significant financing component, if at the inception of the contract, we expect that the period between when we transfer a product or service to a customer and when a customer remits payment will be one year or less. Revenue from products and services transferred to customers at a point in time represented 98% of our revenue in the first three months of fiscal year 2019. The revenue recognized at a point in time relates to the sale of the majority of our products and is recognized when the obligations of the terms of our contract are satisfied, which generally occurs upon shipment, when control of the product transfers to the customer. Revenue from products and services transferred to customers over time represented 2% of our revenue in the first three months of fiscal year 2019. We offer warranties to our customers in the form of assurance-type warranties, which provide assurance that the related product provided will function as intended and comply with any agreed-upon specifications. These cannot be purchased separately. There is no change to our warranty accounting as a result of the implementation of the new revenue standard and we will continue to use our current cost accrual method in accordance with GAAP. Costs to Obtain or Fulfill a Contract | |
Billed Contracts Receivable | $ 112.4 | $ 165.3 |
Deferred Revenue | 3.9 | 3.3 |
Unbilled receivables | 5 | 2.4 |
Total customer receivables | $ 117.4 | $ 167.7 |
Transferred at Point in Time [Member] | ||
Revenue from External Customer [Line Items] | ||
Percent of Revenue by Recognition Timing | 98.00% | |
Transferred over Time [Member] | ||
Revenue from External Customer [Line Items] | ||
Percent of Revenue by Recognition Timing | 2.00% |