10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

xQUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2018

oTRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

Commission File Number 001-32892

MUELLER WATER PRODUCTS, INC.

(Exact name of registrant as specified in its charter)

Delaware	20-3547095
(State or other jurisdiction of	(I.R.S. Employer
incorporation or organization)	Identification No.)

1200 Abernathy Road N.E.

Suite 1200

Atlanta, GA 30328

(Address of principal executive offices)

(770) 206-4200

(Registrant's telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes x No o

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act:

Large accelerated filer     x             Accelerated filer         o

Non-accelerated filer      o            Smaller reporting company     o

(Do not check if a smaller reporting company)

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). o Yes x No

There were 158,101,489 shares of common stock of the registrant outstanding at April 30, 2018.

PART I

Item 1. FINANCIAL STATEMENTS

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
	March 31,			September 30,
	2018			2017
	(in millions, except share amounts)
Assets:
Cash and cash equivalents	$	323.9		$	361.7
Receivables, net	152.4			145.3
Inventories	156.2			138.9
Other current assets	21.2			24.4
Total current assets	653.7			670.3
Property, plant and equipment, net	124.0			122.3
Intangible assets	429.1			439.3
Other noncurrent assets	27.5			26.4
Total assets	$	1,234.3		$	1,258.3
Liabilities and equity:
Current portion of long-term debt	$	5.6		$	5.6
Accounts payable	58.3			82.5
Other current liabilities	49.8			53.5
Total current liabilities	113.7			141.6
Long-term debt	473.4			475.0
Deferred income taxes	78.2			115.1
Other noncurrent liabilities	37.2			37.1
Total liabilities	702.5			768.8
Commitments and contingencies (Note 11)
Common stock: 600,000,000 shares authorized; 158,047,381 and 158,590,383 shares outstanding at March 31, 2018 and September 30, 2017, respectively	1.6			1.6
Additional paid-in capital	1,467.7			1,494.2
Accumulated deficit	(890.3		)	(955.6		)
Accumulated other comprehensive loss	(48.4		)	(51.8		)
Total Company stockholders’ equity	530.6			488.4
Noncontrolling interest	1.2			1.1
Total equity	531.8			489.5
Total liabilities and equity	$	1,234.3		$	1,258.3

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

1

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
	Three months ended				Six months ended
	March 31,				March 31,
	2018		2017		2018			2017
	(in millions, except per share amounts)
Net sales	$	233.2	$	199.7	$	411.5		$	366.9
Cost of sales	158.7		147.2		281.6			262.6
Gross profit	74.5		52.5		129.9			104.3
Operating expenses:
Selling, general and administrative	42.7		38.7		82.5			75.0
Gain on sale of idle property	—		—		(9.0		)	—
Strategic reorganization and other charges	1.9		2.5		5.8			3.8
Total operating expenses	44.6		41.2		79.3			78.8
Operating income	29.9		11.3		50.6			25.5
Pension costs other than service	0.3		0.4		0.5			0.7
Interest expense, net	5.2		5.5		10.4			11.9
Income before income taxes	24.4		5.4		39.7			12.9
Income tax expense (benefit)	14.2		0.7		(25.6		)	2.8
Income from continuing operations	10.2		4.7		65.3			10.1
Income from discontinued operations	—		68.6		—			69.9
Net income	$	10.2	$	73.3	$	65.3		$	80.0
Income per basic share:
Continuing operations	$	0.06	$	0.03	$	0.41		$	0.06
Discontinued operations	—		0.43		—			0.44
Net income	$	0.06	$	0.46	$	0.41		$	0.50
Income per diluted share:
Continuing operations	$	0.06	$	0.03	$	0.41		$	0.06
Discontinued operations	—		0.42		—			0.43
Net income	$	0.06	$	0.45	$	0.41		$	0.49
Weighted average shares outstanding:
Basic	158.3		160.9		158.4			161.4
Diluted	159.4		162.5		159.6			163.2
Dividends declared per share	$	0.05	$	0.04	$	0.09		$	0.07

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

2

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)
	Three months ended						Six months ended
	March 31,						March 31,
	2018			2017			2018			2017
	(in millions)
Net income	$	10.2		$	73.3		$	65.3		$	80.0
Other comprehensive income (loss):
Pension	0.8			1.0			1.6			2.0
Income tax effects	(0.2		)	(0.4		)	(0.5		)	(0.8		)
Foreign currency translation	(0.4		)	1.0			(0.3		)	(0.5		)
Derivative fair value change	2.4			0.5			4.0			5.2
Income tax effects	(0.8		)	(0.2		)	(1.4		)	(2.0		)
	1.8			1.9			3.4			3.9
Comprehensive income	$	12.0		$	75.2		$	68.7		$	83.9

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

3

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENT OF EQUITY  SIX MONTHS ENDED MARCH 31, 2018 (UNAUDITED)
	Common   stock		Additional paid-in capital			Accumulated deficit			Accumulated other comprehensive loss			Non-controlling interest		Total
	(in millions)
Balance at September 30, 2017	$	1.6	$	1,494.2		$	(955.6	)	$	(51.8	)	$	1.1	$	489.5
Net income	—		—			65.3			—			0.1		65.4
Dividends declared	—		(14.3		)	—			—			—		(14.3		)
Stock repurchased under buyback program	—		(20.0		)	—			—			—		(20.0		)
Shares retained for employee taxes	—		(2.1		)	—			—			—		(2.1		)
Stock-based compensation	—		3.5			—			—			—		3.5
Common stock issued	—		6.4			—			—			—		6.4
Other comprehensive income, net of tax	—		—			—			3.4			—		3.4
Balance at March 31, 2018	$	1.6	$	1,467.7		$	(890.3	)	$	(48.4	)	$	1.2	$	531.8

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

4

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
	Six months ended
	March 31,
	2018			2017
	(in millions)
Operating activities:
Net income	$	65.3		$	80.0
Less income from discontinued operations	—			69.9
Income from continuing operations	65.3			10.1
Adjustments to reconcile income from continuing operations to net cash provided by (used in) operating activities:
Depreciation	10.1			10.1
Amortization	11.4			10.8
Stock-based compensation	3.5			3.4
Retirement plans	1.5			1.7
Deferred income taxes	(38.6		)	(14.2		)
Gain on sale of idle property	(9.0		)	—
Other, net	2.1			1.0
Changes in assets and liabilities:
Receivables	(6.8		)	(5.2		)
Inventories	(17.5		)	(11.2		)
Other assets	(2.0		)	(2.4		)
Liabilities	(18.4		)	(20.4		)
Net cash provided by (used in) operating activities of continuing operations	1.6			(16.3		)
Investing activities:
Business acquisition, net of cash acquired	—			(26.2		)
Capital expenditures	(14.4		)	(14.1		)
Proceeds from sales of assets	7.4			0.2
Net cash used in investing activities of continuing operations	(7.0		)	(40.1		)
Financing activities:
Dividends	(14.3		)	(11.2		)
Employee taxes related to stock-based compensation	(2.1		)	(2.7		)
Repayments of debt	(2.4		)	(2.5		)
Common stock issued	6.4			3.9
Deferred financing costs	—			(1.0		)
Stock repurchased under buyback program	(20.0		)	(50.0		)
Other	(0.1		)	—
Net cash used in financing activities of continuing operations	(32.5		)	(63.5		)
Net cash flows from discontinued operations:
Operating activities	—			(43.6		)
Investing activities	—			297.2
Financing activities	—			(0.1		)
Net cash provided by discontinued operations	—			253.5
Effect of currency exchange rate changes on cash	0.1			(0.3		)
Net change in cash and cash equivalents	(37.8		)	133.3
Cash and cash equivalents at beginning of period	361.7			195.0
Cash and cash equivalents at end of period	$	323.9		$	328.3

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

5

MUELLER WATER PRODUCTS, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

SIX MONTHS ENDED MARCH 31, 2018

Note 1. 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. 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. Amounts applicable to Anvil have been classified as discontinued operations.

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 gain 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, 2017. 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, 2017 was derived from audited financial statements, but does not include all disclosures required by GAAP.

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 ultimate aggregate cash purchase price of $26.6 million.

On October 1, 2017, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update No. 2017-07, which requires us to exclude from operating income the components of net periodic benefit cost other than service cost. Accordingly, in the Condensed Consolidated Statement of Operations we have reclassified to pension costs other than service $0.3 million and $0.5 million from selling, general and administrative expenses and $0.1 million and $0.2 million from cost of sales for the three months and six months endedMarch 31, 2017, respectively.

HR-1, formerly 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 3.

In May 2014, the FASB issued new guidance for the recognition of revenue and the requirement for additional financial statement disclosures.  We plan to adopt this guidance using the modified retrospective transition method beginning in the first quarter of fiscal 2019. We have completed our initial scoping and established a project team to evaluate revenue recognition practices for each revenue stream against the new requirements, to suggest changes to the terms of our sales contracts if warranted, and to design and implement processes to comply with the new requirements. The project team is in the process of evaluating our sales contracts. At this time we do not expect the new guidance to materially affect our stockholders' equity, net sales or operating income.

On September 7, 2017, we announced a strategic reorganization plan designed to accelerate our product innovation and revenue growth. We have adopted 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. Costs and expenses in the six months endedMarch 31, 2018 for this plan, included in strategic reorganization and other charges, were primarily personnel-related.

6

Activity in accrued restructuring, reported as part of other current liabilities, is presented below.

	Six months ended
	March 31, 2018
	(in millions)
Beginning balance	$	3.3
Expense	3.6
Payments	(3.9		)
Ending balance	$	3.0

Note 2. Discontinued Operations and Divestitures

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 in 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.

On January 6, 2017, we sold our former Anvil segment to affiliates of One Equity Partners. The final cash proceeds of this sale were $305.7 million. The table below presents a summary of the operating results for the Anvil discontinued operations during the quarter and six months endedMarch 31, 2017. These operating results do not reflect what they would have been had Anvil not been sold.

	Three months ended			Six months ended
	March 31,			March 31,
	2017			2017
	(in millions)
Net sales	$	—		$	83.1
Cost of sales	—			62.8
Gross profit	—			20.3
Operating expenses:
Selling, general and administrative	(1.4		)	16.9
Other charges	—			0.2
Total operating expenses	(1.4		)	17.1
Income before income taxes	1.4			3.2
Income tax expense	0.7			1.2
	0.7			2.0
Gain on sale, net of tax	67.9			67.9
Income from discontinued operations	$	68.6		$	69.9

Note 3. Income Taxes

On December 22, 2017, HR-1, formerly 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. The average of these rates varies slightly from year to year but historically has been approximately 39%. With the legislation changing 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 a provisional income tax benefit of $42.6 million, which is subject to change, as we continue to analyze certain aspects of the Act and refine our calculations. We do not expect changes to this amount to be material.

7

The Act also imposes a one-time transition tax on the undistributed, previously-untaxed, post-1986 foreign “earnings and profits” (as defined by the IRS) of certain U.S.-owned corporations. Determination of our transition tax liability requires 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. During the quarter ended March 31, 2018, we recorded a provisional estimated transition tax of $7.5 million, excluding any state income tax impact, on approximately $96.8 million of undistributed accumulated earnings and profits of foreign subsidiaries. The transition tax is payable over eight years beginning in fiscal year 2019. The undistributed accumulated earnings and profits are now considered previously taxed income and will no longer be subject to U.S. federal income taxes upon repatriation of the earnings in the form of dividends. The undistributed accumulated earnings and profits are considered permanently reinvested and, accordingly, no provision for deferred taxes on financial statement and tax differences, local withholdings or foreign exchange gains or losses have been provided. However, we could be subject to additional local withholding taxes upon repatriation of these earnings in the form of a dividend. We are continuing to gather and evaluate information related to the state income tax impact of the Act, including the state income tax impact of the transition tax. In addition to these state income tax related matters, the final transition tax calculation is also dependent on our balance sheet at September 30, 2018, and therefore is subject to change. We do not expect changes to this amount to be material.

In addition to the adoption items discussed above, the results of our operations include federal income tax expense on our current period earnings at a full-year blended rate of 24.5%, since the rate reduction in the Act is effective on January 1, 2018. The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below.

	Three months ended				Six months ended
	March 31,				March 31,
	2018		2017		2018		2017
U.S. federal statutory income tax rate	24.5	%	35.0	%	24.5	%	35.0	%
Adjustments to reconcile to the effective tax rate:
State tax apportionment change	—		14.9		—		6.4
State income taxes, net of federal benefit	4.4		3.7		4.4		3.8
Excess tax benefits related to stock compensation	(1.1	)	(30.0	)	(1.7	)	(17.2	)
Domestic production activities deduction	(1.6	)	(4.9	)	(1.6	)	(4.1	)
Tax credits	(0.9	)	(7.2	)	(0.9	)	(3.5	)
Other	2.2		1.5		(0.8	)	1.3
	27.5	%	13.0	%	23.9	%	21.7	%
Transition tax	30.7		—		18.9		—
Remeasurement of deferred taxes for change in rates	—		—		(107.3	)	—
Effective income tax rate	58.2	%	13.0	%	(64.5	)%	21.7	%

At March 31, 2018 and September 30, 2017, the gross liabilities for unrecognized income tax benefits were $3.1 million and $3.0 million, respectively.

Note 4. Borrowing Arrangements

The components of our long-term debt are presented below.

	March 31,		September 30,
	2018		2017
	(in millions)
ABL Agreement	$	—	$	—
Term Loan	482.6		484.8
Other	1.6		1.7
	484.2		486.5
Less deferred financing costs	5.2		5.9
Less current portion	5.6		5.6
Long-term debt	$	473.4	$	475.0

8

ABL Agreement. At March 31, 2018, 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 March 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 March 31, 2018 data, as reduced by outstanding letters of credit, swap contract balances and accrued fees and expenses of $18.5 million, was $133.5 million.

Term Loan. On November 25, 2014, we entered into a $500.0 million senior secured term loan (“Term Loan”), which accrues interest at a floating rate equal to LIBOR, subject to a floor of 0.75%, plus 250 basis points. At March 31, 2018, the weighted-average effective interest rate was 4.78%. 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 $1.3 million at March 31, 2018. Based on quoted market prices, the outstanding Term Loan had a fair value of $488.4 million at March 31, 2018.

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 March 31, 2018 and expect to remain in compliance through March 31, 2019.

Note 5. 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% from September 30, 2016 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 loss and are reclassified into interest expense as the related interest payments are made. We included $0.2 million and $0.5 million of such interest expense in income from continuing operations during the quarters ended March 31, 2018 and March 31, 2017, respectively, and $0.6 million and $1.1 million during the six months endedMarch 31, 2018 and March 31, 2017, respectively.

9

The fair values of the swap contracts are presented below.

	March 31,		September 30,
	2018		2017
	(in millions)
Interest rate swap contracts, designated as cash flow hedges in assets:
Other noncurrent assets	$	1.5	$	—
	$	1.5	$	—
Interest rate swap contracts, designated as cash flow hedges in liabilities:
Other current liabilities	$	—	$	1.2
Other noncurrent liabilities	—		1.3
	$	—	$	2.5
Currency swap contracts, not designated as hedges:
Other noncurrent liabilities	$	1.0	$	1.3

The fair values and the classification of the fair values 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.

Note 6. Retirement Plans

The components of net periodic benefit cost for our pension plans are presented below.

	Three months ended						Six months ended
	March 31,						March 31,
	2018			2017			2018			2017
	(in millions)
Service cost	$	0.4		$	0.5		$	0.9		$	1.0
Pension costs other than service:
Interest cost	3.6			3.6			7.2			7.2
Expected return on plan assets	(4.1		)	(4.2		)	(8.3		)	(8.5		)
Amortization of actuarial net loss	0.8			1.0			1.6			2.0
	0.3			0.4			0.5			0.7
Net periodic benefit cost	$	0.7		$	0.9		$	1.4		$	1.7

The amortization of actuarial losses, net of tax, is recorded as a component of other comprehensive loss.

Note 7. Stock-based Compensation Plans

We have granted various forms of stock-based compensation, including stock options, restricted stock units and both cash-settled and stock-settled performance-based restricted stock units (“PRSUs”) under our Amended and Restated 2006 Mueller Water Products, Inc. Stock Incentive Plan (the “2006 Stock Plan”).

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. 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.

We awarded 171,288 stock-settled PRSUs in the six months endedMarch 31, 2018 scheduled to settle in three years.

We issued 146,061 shares and 263,410 shares of common stock during the six months endedMarch 31, 2018 and 2017, respectively, to settle PRSUs.

10

In addition to the PRSU activity, 125,173 and 338,705 restricted stock units vested during the three and six months endedMarch 31, 2018, respectively.

We have granted cash-settled Phantom Plan instruments under the Mueller Water Products, Inc. Phantom Plan (“Phantom Plan”). At March 31, 2018, the outstanding Phantom Plan instruments had a fair value of $10.87 per instrument and our liability for Phantom Plan instruments was $1.3 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 six months endedMarch 31, 2018 as follows.

	Number granted	Weighted average grant date fair value per instrument		Total grant date fair value (in millions)
Quarter ended December 31, 2017:
Restricted stock units	171,288	$	12.41	$	2.1
Employee stock purchase plan instruments	35,099	2.28		0.1
Phantom Plan awards	160,672	12.41		2.0
PRSUs: 2018 award	57,092	12.41		0.7
2017 award	71,070	12.41		0.9
2016 award	71,072	12.41		0.9
Quarter ended March 31, 2018:
Restricted stock units	63,389	11.67		0.7
Employee stock purchase plan instruments	32,702	2.49		0.1
Phantom Plan awards	2,527	$	10.95	$	—
				$	7.5

Income from continuing operations included stock-based compensation expense of $1.6 million and $2.0 million during the three months ended March 31, 2018 and 2017, respectively, and $4.0 million and $4.7 million during the six months endedMarch 31, 2018 and 2017, respectively. At March 31, 2018, there was approximately $8.2 million of unrecognized compensation expense related to stock-based compensation arrangements, and 178,105 PRSUs that have been awarded for the 2019 and 2020 performance periods, for which performance goals have not been set.

We excluded 289,860 and 367,841 of stock-based compensation instruments from the calculations of diluted earnings per share for the quarters ended March 31, 2018 and 2017, respectively, and 278,697 and 350,286 for the six months endedMarch 31, 2018 and 2017, respectively, since their inclusion would have been antidilutive.

11

Note 8. Supplemental Balance Sheet Information

Selected supplemental balance sheet information is presented below.

	March 31,			September 30,
	2018			2017
	(in millions)
Inventories:
Purchased components and raw material	$	80.7		$	67.7
Work in process	36.1			35.6
Finished goods	39.4			35.6
	$	156.2		$	138.9
Other current assets:
Maintenance and repair tooling	$	3.6		$	3.3
Income taxes	7.1			10.9
Other	10.5			10.2
	$	21.2		$	24.4
Property, plant and equipment:
Land	$	5.4		$	5.6
Buildings	53.5			53.4
Machinery and equipment	276.9			266.7
Construction in progress	23.0			24.7
	358.8			350.4
Accumulated depreciation	(234.8		)	(228.1		)
	$	124.0		$	122.3
Other current liabilities:
Compensation and benefits	$	22.4		$	26.9
Customer rebates	5.2			6.5
Taxes other than income taxes	4.0			3.2
Warranty	4.1			3.5
Income taxes	1.3			0.9
Environmental	1.2			1.3
Interest	0.7			0.6
Restructuring	3.0			3.3
Other	7.9			7.3
	$	49.8		$	53.5

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Note 9. Segment Information

Summarized financial information for our segments is presented below.

	Three months ended						Six months ended
	March 31,						March 31,
	2018			2017			2018			2017
	(in millions)
Net sales, excluding intercompany:
Infrastructure	$	211.1		$	181.6		$	371.2		$	327.9
Technologies	22.1			18.1			40.3			39.0
	$	233.2		$	199.7		$	411.5		$	366.9
Intercompany sales:
Infrastructure	$	—		$	—		$	—		$	1.1
Technologies	—			—			—			—
	$	—		$	—		$	—		$	1.1
Operating income (loss):
Infrastructure	$	44.9		$	34.4		$	73.0		$	60.6
Technologies	(3.9		)	(13.7		)	(8.6		)	(15.9		)
Corporate	(11.1		)	(9.4		)	(13.8		)	(19.2		)
	$	29.9		$	11.3		$	50.6		$	25.5
Depreciation and amortization:
Infrastructure	$	9.4		$	9.1		$	18.5		$	18.1
Technologies	1.5			1.4			2.9			2.6
Corporate	—			0.1			0.1			0.2
	$	10.9		$	10.6		$	21.5		$	20.9
Strategic reorganization and other charges:
Infrastructure	$	0.1		$	1.6		$	0.1		$	1.7
Technologies	—			0.1			0.1			0.1
Corporate	1.8			0.8			5.6			2.0
	$	1.9		$	2.5		$	5.8		$	3.8
Capital expenditures:
Infrastructure	$	6.3		$	4.7		$	11.1		$	7.7
Technologies	1.5			5.2			3.0			6.3
Corporate	0.2			—			0.3			0.1
	$	8.0		$	9.9		$	14.4		$	14.1

Mueller Technologies' operating losses for the quarter and six months ended March 31, 2017 include a warranty expense of $9.8 million, as described in Note 11.

Note 10. Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss is presented below.

	Pension, net of tax			Foreign currency translation			Derivative instruments, net of tax			Total
Balance at September 30, 2017	$	(47.0	)	$	(3.3	)	$	(1.5	)	$	(51.8	)
Current period other comprehensive income (loss)	1.1			(0.3		)	2.6			3.4
Balance at March 31, 2018	$	(45.9	)	$	(3.6	)	$	1.1		$	(48.4	)

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Note 11. 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.

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 March 31, 2018.

Walter Energy. Each member of the Walter Energy consolidated group, which included us through December 14, 2006, is jointly and severally liable for the federal income tax liability of each other member of the consolidated group for any year in which it is a member of the group at any time during such year. Accordingly, we could be liable in the event any such federal income tax liability is incurred, and not discharged, by any other member of the Walter Energy consolidated group for any period during which we were included in the Walter Energy consolidated group.

Walter Energy effectively controlled all of our tax decisions for periods during which we were a member of the Walter Energy consolidated group for federal income tax purposes and certain combined, consolidated or unitary state and local income tax groups. Under the terms of an income tax allocation agreement between us and Walter Energy, dated May 26, 2006, we generally compute our tax liability on a stand-alone basis, but Walter Energy has sole authority to respond to and conduct all tax proceedings (including tax audits) relating to our federal income and combined state tax returns, to file all such tax returns on our behalf and to determine the amount of our liability to (or entitlement to payment from) Walter Energy for such previous periods.

As described further below, the IRS is currently alleging that Walter Energy owes substantial amounts for prior taxable periods (specifically, 1983-1994, 2000-2002 and 2005). 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.

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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 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 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 quarterly report on Form 10-Q filed by Walter Energy with the SEC on November 5, 2015 (“Walter November 2015 Filing”), at September 30, 2015, Walter Energy had  $33.0 million of accruals for unrecognized tax benefits in connection with the matters subject to the IRS claims. 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.

According to a 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 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 IRS’ proof of claim filed in the bankruptcy cases and the proof of claim, as well as 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 IRS’ proof of claim filed in the bankruptcy cases, 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, (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, and whether and to what extent funds will be available in the Chapter 7 Case to pay priority tax claims and (iii) 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. While we cannot predict whether or to what extent we may become liable, we believe that once certain taxpayer refunds (applicable primarily to years 1997, and 2006 through 2015) are applied against asserted income tax liabilities owing for other years, that the total net tax liabilities of Walter Energy, if any, will be substantially less than those asserted by the IRS in its earlier filed proofs of claim. However, any 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 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.

15

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 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 the second quarter of 2017. We have continued to process warranty claims with respect to these products and update our loss analysis using cost and product data collected since March 31, 2017 in order to assess the adequacy of our warranty reserve for this matter. Our analysis is continuing and thus we are unable to reasonably estimate additional loss, if any, at this time. It is possible that to the extent any additional warranty expense is recorded for this matter, such additional expense could be material to Technologies' operating results in future periods.

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.

Note 12. Subsequent Events

On April 17, 2018, our board of directors declared a dividend of $0.05 per share on our common stock, payable on or about May 21, 2018 to stockholders of record at the close of business on May 10, 2018.

16

Item 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with the unaudited condensed consolidated financial statements and notes thereto that appear elsewhere in this report. This report contains certain statements that may be deemed “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. All statements that address activities, events or developments that we intend, expect, plan, project, believe or anticipate will or may occur in the future are forward-looking statements. Forward-looking statements are based on certain assumptions and assessments made by us in light of our experience and perception of historical trends, current conditions and expected future developments. Actual results and the timing of events may differ materially from those contemplated by the forward-looking statements due to a number of factors, including regional, national or global political, economic, business, competitive, market and regulatory conditions and the other factors described under the section entitled “RISK FACTORS” in Item 1A. of our annual report on Form 10-K for the year ended September 30, 2017 (“Annual Report”) and of our quarterly report on Form 10-Q for the quarter ended December 31,2017 ("Quarterly Report"). Undue reliance should not be placed on any forward-looking statements. The Company does not have any intention or obligation to update forward-looking statements, except as required by law.

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. We manage our businesses and report operations through two business segments, Infrastructure and Technologies, based largely on the products sold and the customers served.

Overview

Organization

On October 3, 2005, Walter Energy acquired all outstanding shares of capital stock representing the Mueller Co. and Anvil businesses and contributed them to its U.S. Pipe business to form the Company. In June 2006, we completed an initial public offering of common stock and in December 2006, Walter Energy distributed to its shareholders all of its equity interests in the Company, completing our spin-off.

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.

On January 6, 2017, we sold our former Anvil segment. Amounts applicable to Anvil have been classified as discontinued operations.

Business

We expect our two primary end markets, repair and replacement of water infrastructure driven by municipal spending and new water infrastructure installation driven by residential construction, to grow in 2018. We expect the residential construction market to grow faster than municipal spending.

Infrastructure

We estimate approximately 60% of Infrastructure’s 2017 net sales were for repair and replacement directly related to municipal water infrastructure spending, approximately 30% were related to residential construction activity and approximately 10% were related to natural gas utilities.

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 ultimate aggregate cash purchase price of $26.6 million.

Technologies

The municipal market is the key end market for Technologies. These businesses are project-oriented and depend on customer adoption of their technology-based products and services. Mueller Systems is benefiting from its recent introduction of new, longer-range radio capabilities, and its growth strategy is focused on the AMI segment of the market. Mueller Systems’ AMI backlog was higher at March 31, 2018 than at March 31, 2017. Echologics had a greater number of projects under contract at March 31, 2018 than at March 31, 2017.

17

Results of Operations

Three Months Ended March 31, 2018 Compared to Three Months Ended March 31, 2017

	Three months ended March 31, 2018
	Infrastructure		Technologies			Corporate			Total
	(in millions)
Net sales	$	211.1	$	22.1		$	—		$	233.2
Gross profit	$	71.4	$	3.1		$	—		$	74.5
Operating expenses:
Selling, general and administrative	26.4		7.0			9.3			42.7
Strategic reorganization and other charges	0.1		—			1.8			1.9
	26.5		7.0			11.1			44.6
Operating income (loss)	$	44.9	$	(3.9	)	$	(11.1	)	29.9
Pension costs other than service									0.3
Interest expense, net									5.2
Income before income taxes									24.4
Income tax expense									14.2
Income from continuing operations									$	10.2
	Three months ended March 31, 2017
	Infrastructure		Technologies			Corporate			Total
	(in millions)
Net sales	$	181.6	$	18.1		$	—		$	199.7
Gross profit (loss)	$	59.0	$	(6.5	)	$	—		$	52.5
Operating expenses:
Selling, general and administrative	23.0		7.1			8.6			38.7
Other charges	1.6		0.1			0.8			2.5
	24.6		7.2			9.4			41.2
Operating income (loss)	$	34.4	$	(13.7	)	$	(9.4	)	11.3
Pension costs other than service									0.4
Interest expense, net									5.5
Income before income taxes									5.4
Income tax expense									0.7
Income from continuing operations									$	4.7

Consolidated Analysis

Net sales for the quarter ended March 31, 2018increased$33.5 million to $233.2 million from $199.7 million due primarily to increased shipment volumes in both segments.

Gross profit for the quarter ended March 31, 2018increased$22.0 million to $74.5 million from $52.5 million in the prior year period primarily due to increased shipment volumes, the $9.8 million warranty expense recorded at Technologies in 2017, higher pricing and improved operating efficiencies and other manufacturing cost savings, partially offset by increased material and other costs. Gross profit margin increased to 31.9% for the quarter ended March 31, 2018 compared to 26.3% in the prior year period.

Selling, general and administrative expenses (“SG&A”) for the quarter ended March 31, 2018increased to $42.7 million from $38.7 million in the prior year period due primarily to higher personnel-related expenses and additional SG&A from Singer Valve. SG&A as a percentage of net sales improved to 18.3% in the quarter ended March 31, 2018 compared with 19.4% in the prior year period.

18

Net interest expense declined$0.3 million in the quarter ended March 31, 2018 compared to the prior year period. The components of net interest expense are provided below.

	Three months ended
	March 31,
	2018			2017
	(in millions)
Term Loan	$	5.1		$	4.7
Interest rate swap contracts	0.2			0.5
Deferred financing costs amortization	0.4			0.4
ABL Agreement	0.2			0.2
Other interest expense	0.2			0.2
	6.1			6.0
Interest income	(0.9		)	(0.5		)
	$	5.2		$	5.5

On December 22, 2017, tax legislation was enacted that made significant revisions to federal income tax laws, including lowering the corporate income tax rate to 21 percent from 35 percent, overhauling the taxation of income earned outside the United States and eliminating or limiting certain deductions. Since the effective date of the tax rate change was January 1, 2018, we are subject to a blended federal statutory tax rate of 24.5 percent throughout fiscal 2018.

For the quarter ended March 31, 2018, we reported income tax expense of $14.2 million, which included a provisional expense of $7.5 million for the transition tax. Other than this one-time charge, income tax expense was $6.7 million, or 27.5 percent of income before income taxes. The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below.

	Three months ended
	March 31,
	2018		2017
U.S. federal statutory income tax rate	24.5	%	35.0	%
Adjustments to reconcile to the effective tax rate:
State tax apportionment change	—		14.9
State income taxes, net of federal benefit	4.4		3.7
Excess tax benefits related to stock compensation	(1.1	)	(30.0	)
Domestic production activities deduction	(1.6	)	(4.9	)
Tax credits	(0.9	)	(7.2	)
Other	2.2		1.5
	27.5	%	13.0	%
Transition tax	30.7		—
Effective income tax rate	58.2	%	13.0	%

Segment Analysis

Infrastructure

Net sales for the quarter ended March 31, 2018increased16.2 percent to $211.1 million compared to $181.6 million in the prior year period, primarily due to higher shipment volumes, higher pricing, and the addition of Singer Valve.

Gross profit for the quarter ended March 31, 2018increased to $71.4 million from $59.0 million in the prior year period due to increased shipment volumes, higher pricing, improved operating efficiencies and other manufacturing cost savings, which were partially offset by higher material costs. Gross profit margin increased to 33.8% for the quarter ended March 31, 2018 compared to 32.5% in the prior year period.

SG&A for the quarter ended March 31, 2018increased to $26.4 million from $23.0 million in the prior year period. SG&A was 12.5% and 12.7% of net sales for the quarters ended March 31, 2018 and 2017, respectively. These increases in SG&A were primarily due to higher personnel-related expenses and additional SG&A from Singer Valve.

19

Technologies

Net sales in the quarter ended March 31, 2018increased to $22.1 million from $18.1 million in the prior year period primarily due to higher Mueller Systems shipment volumes and increased leak detection sales.

Gross profit in the quarter ended March 31, 2018 was $3.1 million compared to gross loss of $6.5 million in the prior year period. Gross profit margin was 14.0% in the quarter ended March 31, 2018 and was a loss of 35.9% in the prior year period. Excluding a discrete warranty charge of $9.8 million in 2017, prior quarter gross profit would have been $3.3 million and gross profit margin would have been 18.2%. Higher warranty costs at Mueller Systems and higher materials costs in both Mueller Systems and Echologics negatively impacted current quarter gross profit.

SG&A was $7.0 million in the quarter ended March 31, 2018 and $7.1 million in the prior year period. SG&A decreased to 31.7% of net sales for the quarter ended March 31, 2018 from 39.2% of net sales in the prior year period.

Corporate

SG&A was $9.3 million in the quarter ended March 31, 2018 and $8.6 million in the prior year period.

Six Months Ended March 31, 2018 Compared to Six Months Ended March 31, 2017

	Six months ended March 31, 2018
	Infrastructure		Technologies			Corporate			Total
	(in millions)
Net sales	$	371.2	$	40.3		$	—		$	411.5
Gross profit	$	123.9	$	6.0		$	—		$	129.9
Operating expenses:
Selling, general and administrative	50.8		14.5			17.2			82.5
Gain on sale of idle property	—		—			(9.0		)	(9.0		)
Strategic reorganization and other charges	0.1		0.1			5.6			5.8
	50.9		14.6			13.8			79.3
Operating income (loss)	$	73.0	$	(8.6	)	$	(13.8	)	50.6
Pension costs other than service									0.5
Interest expense, net									10.4
Income before income taxes									39.7
Income tax benefit									(25.6		)
Income from continuing operations									$	65.3
	Six months ended March 31, 2017
	Infrastructure		Technologies			Corporate			Total
	(in millions)
Net sales	$	327.9	$	39.0		$	—		$	366.9
Gross profit (loss)	$	106.6	$	(2.3	)	$	—		$	104.3
Operating expenses:
Selling, general and administrative	44.3		13.5			17.2			75.0
Other charges	1.7		0.1			2.0			3.8
	46.0		13.6			19.2			78.8
Operating income (loss)	$	60.6	$	(15.9	)	$	(19.2	)	25.5
Pension costs other than service									0.7
Interest expense, net									11.9
Income before income taxes									12.9
Income tax expense									2.8
Income from continuing operations									$	10.1

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Consolidated Analysis

Net sales for the six months endedMarch 31, 2018increased$44.6 million to $411.5 million from $366.9 million due primarily to increased shipment volumes, including the addition of Singer Valve, and improved pricing at Infrastructure, as well as volume increases at Technologies.

Gross profit for the six months endedMarch 31, 2018increased$25.6 million to $129.9 million from $104.3 million in the prior year period primarily due to increased shipment volumes at Infrastructure, the prior period's $9.8 million warranty expense at Technologies, as well as higher pricing and cost productivity improvements at Infrastructure. These were partially offset by increased material costs. Gross profit margin increased to 31.6% for the six months endedMarch 31, 2018 compared to 28.4% in the prior year period due primarily to increased volumes and the effect of the prior year warranty expense.

SG&A for the six months endedMarch 31, 2018increased to $82.5 million from $75.0 million in the prior year period due primarily to higher personnel-related expenses and additional SG&A from Singer Valve. SG&A as a percentage of net sales was 20.0% in the six months endedMarch 31, 2018 and 20.4% in the prior year period.

Net interest expense declined$1.5 million in the six months endedMarch 31, 2018 compared to the prior year period. The components of net interest expense are provided below.

	Six months ended
	March 31,
	2018			2017
	(in millions)
Term Loan	$	9.9		$	9.8
Interest rate swap contracts	0.6			1.1
Deferred financing costs amortization	0.9			0.8
ABL Agreement	0.4			0.4
Other interest expense	0.3			0.4
	12.1			12.5
Interest income	(1.7		)	(0.6		)
	$	10.4		$	11.9

On December 22, 2017, tax legislation was enacted that made significant revisions to federal income tax laws, including lowering the corporate income tax rate to 21 percent from 35 percent, overhauling the taxation of income earned outside the United States and eliminating or limiting certain deductions. Since the effective date of the tax rate change was January 1, 2018, we are subject to a blended federal statutory tax rate of 24.5 percent throughout fiscal 2018.

For the six months endedMarch 31, 2018, we reported a net income tax benefit of $25.6 million, which was driven by a provisional net benefit of $35.1 million associated with adoption of the new tax legislation. This includes a $42.6 million provisional benefit recorded in our first quarter related to remeasurement of our net deferred income tax liabilities using the enacted tax rates in effect when we expect to recognize the related tax expenses or benefits, partially offset by a $7.5 million provisional expense for the transition tax. Other than these effects, income tax expense was $9.5 million, or 23.9% of income before income taxes for the six months endedMarch 31, 2018. For the six months endedMarch 31, 2017, income tax expense was 21.7% of income before income taxes. The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below.

21

	Six months ended
	March 31,
	2018		2017
U.S. federal statutory income tax rate	24.5	%	35.0	%
Adjustments to reconcile to the effective tax rate:
State tax apportionment change	—		6.4
State income taxes, net of federal benefit	4.4		3.8
Excess tax benefits related to stock compensation	(1.7	)	(17.2	)
Domestic production activities deduction	(1.6	)	(4.1	)
Tax credits	(0.9	)	(3.5	)
Other	(0.8	)	1.3
	23.9	%	21.7	%
Transition tax	18.9		—
Remeasurement of deferred taxes for change in rates	(107.3	)	—
Effective income tax rate	(64.5	)%	21.7	%

Segment Analysis

Infrastructure

Net sales for the six months endedMarch 31, 2018increased13.2% to $371.2 million compared to $327.9 million in the prior year period due primarily to increased shipment volumes, including the addition of Singer Valve, and higher pricing.

Gross profit for the six months endedMarch 31, 2018increased to $123.9 million from $106.6 million in the prior year period due to increased shipment volumes, higher pricing and cost savings due to productivity improvements, which were partially offset by higher material costs. Gross profit margin increased to 33.4% for the six months endedMarch 31, 2018 compared to 32.5% in the prior year period.

SG&A for the six months endedMarch 31, 2018increased to $50.8 million from $44.3 million in the prior year period due to increased personnel-related expenses and additional SG&A from Singer Valve. SG&A was 13.7% and 13.5% of net sales for the six months endedMarch 31, 2018 and 2017, respectively.

Technologies

Net sales in the six months endedMarch 31, 2018increased3.3% to $40.3 million from $39.0 million in the prior year period primarily due to higher leak detection sales substantially offset by lower Mueller Systems shipment volumes.

Gross profit in the six months endedMarch 31, 2018 was $6.0 million compared to a loss of $2.3 million in the prior year period, and gross profit margin increased to 14.9% in the six months endedMarch 31, 2018 compared to a loss of 5.9% in the prior year period. These increases are primarily due to the effect of $9.8 million warranty expense in the prior year discussed above, partially offset by current period increases in material costs in the current year

SG&A was $14.5 million in the six months endedMarch 31, 2018 compared to $13.5 million in the prior year period. SG&A increased to 36.0% of net sales for the six months endedMarch 31, 2018 from 34.6% of net sales in the prior year period.

Corporate

SG&A was $17.2 million in both the six months endedMarch 31, 2018 and in the prior year period.

22

Liquidity and Capital Resources

We had cash and cash equivalents of $323.9 million at March 31, 2018 and $133.5 million of additional borrowing capacity under our ABL Agreement based on March 31, 2018 data, which, along with cash generated by operations, would be our source of incremental liquidity. Undistributed earnings from our subsidiaries in Canada and China are considered to be permanently invested outside the United States. At March 31, 2018, cash and cash equivalents included $7.0 million and $6.0 million in Canada and China, respectively.

We expect the recently enacted tax law changes to benefit our liquidity through reduction in overall income tax liability and through provisions allowing immediate deductibility for capital assets placed in service in the next five years. This benefit will be partially offset by payment of the transition tax discussed above. However, the transition tax is payable over eight years beginning in 2019 and we do not expect any payments to have a material effect on our liquidity in any particular year.

We repurchased shares of our common stock for $20 million during the six months endedMarch 31, 2018, and we had $170 million remaining on our share repurchase authorization at that date.

The ABL Agreement and Term Loan contain customary representations and warranties, covenants and provisions governing an event of default.  The covenants restrict our ability to engage in certain specified activities, including but not limited to the payment of dividends and the redemption of our common stock.

Cash flows from operating activities of continuing operations are categorized below.

	Six months ended
	March 31,
	2018			2017
	(in millions)
Collections from customers	$	404.1		$	361.9
Disbursements, other than interest and income taxes	(392.7		)	(359.4		)
Interest payments, net	(9.0		)	(10.5		)
Income tax payments, net	(0.8		)	(8.3		)
Cash provided by (used in) operating activities	$	1.6		$	(16.3	)

Collections from customers were higher during the six months endedMarch 31, 2018 compared to the prior year period primarily due to net sales growth.

Increased disbursements, other than interest and income taxes, during the six months endedMarch 31, 2018 reflect higher purchasing activity and higher costs for raw materials and purchased products.

Income tax payments were lower during the six months endedMarch 31, 2018 compared to the prior year period because we began the current year with prepaid U.S. federal income taxes.

Capital expenditures were $14.4 million in the six months endedMarch 31, 2018 compared to $14.1 million in the prior year period. We estimate 2018 capital expenditures will be between $50 million and $60 million. We are planning an investment in our Chattanooga facility to expand domestic manufacturing capabilities and introduce additive manufacturing technologies to our foundries.

We anticipate that our existing cash, cash equivalents and borrowing capacity combined with our expected operating cash flows will be sufficient to meet our anticipated operating expenses, income tax payments, capital expenditures and debt service obligations as they become due through March 31, 2019. However, our ability to make these payments will depend partly upon our future operating performance, which will be affected by general economic, financial, competitive, legislative, regulatory, business and other factors beyond our control.

23

ABL Agreement

At March 31, 2018, the 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 March 31, 2018, the applicable LIBOR-based margin was 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.

The ABL Agreement is subject to mandatory prepayments if total outstanding borrowings under the ABL Agreement are greater than the aggregate commitments under the revolving credit facility or if we dispose of overdue accounts receivable in certain circumstances. The borrowing base under the ABL Agreement is equal to the sum of (a) 85% of the value of eligible accounts receivable and (b) the lesser of (i) 70% of the value of eligible inventories or (ii) 85% of the net orderly liquidation value of the value of eligible inventories, less certain reserves. Prepayments can be made at any time with no penalty.

Substantially all of our U.S. subsidiaries are borrowers under the ABL Agreement and are jointly and severally liable for any outstanding borrowings. Our obligations under the ABL Agreement are secured by a first-priority perfected lien on all of our U.S. inventories, accounts receivable, 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 under the ABL Agreement.

Term Loan

We had $483.9 million face value outstanding under the Term Loan at March 31, 2018. Term Loan borrowings accrue interest at a floating rate equal to LIBOR, subject to a floor of 0.75%, plus 250 basis points. 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. The Term Loan matures on November 25, 2021. The Term Loan is guaranteed by substantially all of our U.S. subsidiaries and secured by essentially all of our assets, although the ABL Agreement has a senior claim on certain collateral securing borrowings thereunder.

Our corporate credit ratings and the credit ratings for our debt are presented below.

	Moody’s		Standard & Poor's
	March 31,	September 30,	March 31,	September 30,
	2018	2017	2018	2017
Corporate credit rating	Ba2	Ba3	BB	BB-
ABL Agreement	Not rated	Not rated	Not rated	Not rated
Term Loan	Ba2	Ba3	BB+	BB
Outlook	Stable	Stable	Stable	Stable

Off-Balance Sheet Arrangements

We do not have any relationships with unconsolidated entities or financial partnerships, such as entities often referred to as “structured finance” or “special purpose” entities, which would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes. In addition, at March 31, 2018 we did not have any undisclosed borrowings, debt, derivative contracts or synthetic leases. Therefore, we were not exposed to any financing, liquidity, market or credit risk that could have arisen had we engaged in such relationships.

We use letters of credit and surety bonds in the ordinary course of business to ensure the performance of contractual obligations. At March 31, 2018, we had $17.3 million of letters of credit and $32.4 million of surety bonds outstanding.

24

Seasonality

Our business is dependent upon the construction industry, which is seasonal due to the impact of cold weather conditions. Net sales and operating income have historically been lowest in the quarterly periods ending December 31 and March 31 when the northern United States and all of Canada generally face weather conditions that restrict significant construction activity.

Item 4. CONTROLS AND PROCEDURES

During the quarter ended March 31, 2018, there were no changes in our internal control over financial reporting that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

We maintain disclosure controls and procedures that are designed to ensure that information required to be disclosed in the reports we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission and that such information is accumulated and communicated to our management, including the Chief Executive Officer and the Chief Financial Officer as appropriate, to allow timely decisions regarding required disclosure.

Our Chief Executive Officer and our Chief Financial Officer have concluded, based on an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) of the Securities Exchange Act of 1934, as amended) by our management, with the participation of our Chief Executive Officer and our Chief Financial Officer, that such disclosure controls and procedures were effective as of the end of the period covered by this report.

Our management, including the Chief Executive Officer and Chief Financial Officer, does not expect that our disclosure controls can prevent all errors and all fraud. A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. There are inherent limitations in all control systems, including the realities that judgments in decision-making can be faulty, and that breakdowns can occur because of simple error or mistake. Additionally, controls can be circumvented by the individual acts of one or more persons. The design of any system of controls also is based in part upon certain assumptions about the likelihood of future events, and, while our disclosure controls and procedures are designed to be effective under circumstances where they should reasonably be expected to operate effectively, there can be no assurance that any design will succeed in achieving its stated goals under all potential future conditions. Because of the inherent limitations in any control system, misstatements due to error or fraud may occur and not be detected.

25

PART II OTHER INFORMATION

Item 1. LEGAL PROCEEDINGS

Refer to the information provided in Note 11. to the Notes to the Condensed Consolidated Financial Statements presented in Item 1 of Part I of this report.

Item 1A. RISK FACTORS

In addition to the other information set forth in this report, you should carefully consider the factors discussed in PART I, “Item 1A. RISK FACTORS” in our Annual Report and our Quarterly Report, each of which could materially affect our business, financial condition or operating results. These described risks are not the only risks facing us. Additional risks and uncertainties not known to us or that we deem to be immaterial also may materially adversely affect our business, financial condition or operating results.

Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

During the quarter ended March 31, 2018, we repurchased shares of our common stock, including shares repurchased under our existing share repurchase authorization and shares surrendered to us to pay the tax withholding obligations of participants in connection with the lapsing of restrictions on restricted stock units, as follows.

Period	Total number of shares purchased	Average price paid per share		Total number of shares purchased as part of publically announced plans or programs	Maximum dollar value of shares that may yet be purchased under the plans or programs  (in millions)
January 1-31, 2018	23,164	$	11.87	—	$	180.0
February 1-28, 2018	901,377	11.09		901,377	170.0
March 1-31, 2018	—	—		—	170.0
Total	924,541	$	11.11	901,377	$	170.0

In 2015, we announced the authorization of a stock repurchase program for up to $50 million of our common stock. The program does not commit us to any particular timing or quantity of purchases, and we may suspend or discontinue the program at any time. In 2017, we announced an increase in the authorization of the program to $250 million. At March 31, 2018, we had remaining authorization of $170.0 million to repurchase shares of our common stock.

Item 6. EXHIBITS

Exhibit No.	Document
31.1*	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2*	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1*	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2*	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101*	The following financial information from the Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, formatted in XBRL (Extensible Business Reporting Language), (i) the Condensed Consolidated Balance Sheets, (ii) the Condensed Consolidated Statements of Operations, (iii) the Condensed Consolidated Statements of Other Comprehensive Loss, (iv) the Condensed Consolidated Statements of Stockholders' Equity, (v) the Condensed Consolidated Statements of Cash Flows, and (vi) the Notes to Condensed Consolidated Financial Statements.

*     Filed with this quarterly report

**     Management compensatory plan, contract, or arrangement

26

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

		MUELLER WATER PRODUCTS, INC.
Date:	May 9, 2018	By:	/s/ Michael S. Nancarrow
			Michael S. Nancarrow
			Chief Accounting Officer

27

EX-31.1

Exhibit 31.1

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

I, Scott Hall, certify that:

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

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 9, 2018

/s/  Scott Hall

Scott Hall

Chief Executive Officer

EX-31.2

Exhibit 31.2

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

I, Marietta Edmunds Zakas, certify that:

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

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Dated: May 9, 2018

/s/ Marietta Edmunds Zakas

Marietta Edmunds Zakas

Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the accompanying Quarterly Report on Form 10-Q of Mueller Water Products, Inc. (the “Company”) for the quarter ended March 31, 2018 (the “Report”), I, Scott Hall, Chief Executive Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 9, 2018

/s/ Scott Hall

Scott Hall

Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

(18 U.S.C. SECTION 1350)

In connection with the accompanying Quarterly Report on Form 10-Q of Mueller Water Products, Inc. (the “Company”) for the quarter ended March 31, 2018 (the “Report”), I, Marietta Edmunds Zakas, Executive Vice President and Chief Financial Officer of the Company, certify, pursuant to 18 U.S.C. §1350, as adopted pursuant to §906 of the Sarbanes-Oxley Act of 2002, that:

(1) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated: May 9, 2018

/s/ Marietta Edmunds Zakas

Marietta Edmunds Zakas

Chief Financial Officer

XML

Document and Entity Information - USD ($)	6 Months Ended
	Mar. 31, 2018	Apr. 30, 2018
Document And Entity Information [Abstract]
Document Fiscal Period Focus	Q2
Document Period End Date	Mar. 31, 2018
Document Fiscal Year Focus	2018
Entity Well-known Seasoned Issuer	No
Entity Registrant Name	Mueller Water Products, Inc.
Entity Central Index Key	0001350593
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Amendment Flag	false
Entity Common Stock, Shares Outstanding		158,101,489
Entity Public Float	$ 1,702,208,205

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Mar. 31, 2018	Sep. 30, 2017
Assets:
Cash and cash equivalents	$ 323.9	$ 361.7
Receivables, net	152.4	145.3
Inventories	156.2	138.9
Other current assets	21.2	24.4
Total current assets	653.7	670.3
Property, plant and equipment, net	124.0	122.3
Identifiable intangible assets	429.1	439.3
Other noncurrent assets	27.5	26.4
Total assets	1,234.3	1,258.3
Liabilities and stockholders' equity:
Current portion of long-term debt	5.6	5.6
Accounts payable	58.3	82.5
Other current liabilities	49.8	53.5
Total current liabilities	113.7	141.6
Long-term debt	473.4	475.0
Deferred income taxes	78.2	115.1
Other noncurrent liabilities	37.2	37.1
Total liabilities	702.5	768.8
Common Stock	1.6	1.6
Additional paid-in capital	1,467.7	1,494.2
Accumulated deficit	(890.3)	(955.6)
Accumulated Other Comprehensive Income (Loss), Net of Tax	(48.4)	(51.8)
Total stockholders' equity	530.6	488.4
Noncontrolling interest	1.2	1.1
Total equity	531.8	489.5
Total liabilities and stockholders' equity	$ 1,234.3	$ 1,258.3

XML

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

XML

Consolidated Statements Of Operations - USD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Revenue, Net	$ 233.2	$ 199.7	$ 411.5	$ 366.9
Cost of sales	158.7	147.2	281.6	262.6
Gross profit	74.5	52.5	129.9	104.3
Operating expenses:
Selling, general and administrative	42.7	38.7	82.5	75.0
Gain on sale of idle property	0.0	0.0	(9.0)	0.0
Restructuring	1.9	2.5	5.8	3.8
Total operating expenses	44.6	41.2	79.3	78.8
Operating income	29.9	11.3	50.6	25.5
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost	0.3	0.4	0.5	0.7
Interest expense, net	5.2	5.5	10.4	11.9
Income (loss) before income taxes	24.4	5.4	39.7	12.9
Income tax expense (benefit)	14.2	0.7	(25.6)	2.8
Income (loss) from continuing operations	10.2	4.7	65.3	10.1
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent		68.6	0.0	69.9
Net Income (Loss) Attributable to Parent	$ 10.2	$ 73.3	$ 65.3	$ 80.0
Continuing operations	$ 0.06	$ 0.03	$ 0.41	$ 0.06
Discontinued operations	0.00	0.43	0.00	0.44
Net loss per basic share:
Net income (loss) per basic share	0.06	0.46	0.41	0.50
Continuing operations	0.06	0.03	0.41	0.06
Discontinued operations	0.00	0.42	0.00	0.43
Net loss per diluted share:
Net income (loss) per diluted share	$ 0.06	$ 0.45	$ 0.41	$ 0.49
Weighted average shares outstanding:
Basic, in shares	158.3	160.9	158.4	161.4
Diluted, in shares	159.4	162.5	159.6	163.2
Dividends declared per share, in dollars per share	$ 0.05	$ 0.04	$ 0.09	$ 0.07

XML

Consolidated Statement of Comprehensive Income Statement - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Net Income (Loss) Attributable to Parent	$ 10.2	$ 73.3	$ 65.3	$ 80.0
Other comprehensive income (loss):
Minimum pension liability	0.8	1.0	1.6	2.0
Income tax effects	(0.2)	(0.4)	(0.5)	(0.8)
Foreign currency translation	(0.4)	1.0	(0.3)	(0.5)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, before Tax	2.4	0.5	4.0	5.2
Income tax effects	(0.8)	(0.2)	(1.4)	(2.0)
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent	1.8	1.9	3.4	3.9
Other Comprehensive Income (Loss), Net of Tax			3.4
Comprehensive Income (Loss), Net of Tax, Attributable to Parent	$ 12.0	$ 75.2	$ 68.7	$ 83.9

XML

Consolidated Statement Of Stockholders' Equity - 6 months ended Mar. 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, 2017	$ 489.5
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends declared	(14.3)	$ 0.0	$ (14.3)	$ 0.0	$ 0.0	$ 0.0
Stock repurchased under buyback program	20.0	0.0	20.0	0.0	0.0	0.0
Stock-based compensation	3.5	0.0	3.5	0.0	0.0	0.0
Shares retained for employee taxes	(2.1)	0.0		0.0	0.0	0.0
Stock issued under stock compensation plans	6.4	0.0	6.4	0.0	0.0	0.0
Other Comprehensive Income (Loss), Net of Tax	3.4	0.0	0.0	0.0	3.4	0.0
Net Income (Loss) Attributable to Parent	65.3	0.0	0.0		0.0
Net Income (Loss) Attributable to Noncontrolling Interest						0.1
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest	65.4
Balance at Mar. 31, 2018	$ 531.8	$ 1.6	$ 1,467.7	$ (890.3)	$ (48.4)	$ 1.2

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Consolidated Statements Of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
Stock repurchased under buyback program	$ 20.0	$ 50.0
Net Cash Provided by (Used in) Operating Activities [Abstract]
Net Income (Loss) Attributable to Parent	65.3	80.0
Less: income (loss) from discontinued operations	0.0	(69.9)
Income (loss) from continuing operations	65.3	10.1
Adjustments to reconcile net income (loss) to income (loss) from continuing operations:
Depreciation	10.1	10.1
Amortization	11.4	10.8
Stock-based compensation expense	3.5	3.4
Deferred income taxes	(38.6)	(14.2)
Gain on sale of idle property	9.0	0.0
Retirement plans	1.5	1.7
Other, net	2.1	1.0
Changes in assets and liabilities, net of acquisitions:
Receivables	(6.8)	(5.2)
Inventories	(17.5)	(11.2)
Other current assets and other noncurrent assets	(2.0)	(2.4)
Accounts payable and other liabilities	(18.4)	(20.4)
Net cash provided by (used in) operating activities	1.6	(16.3)
Investing activities:
Payments to Acquire Businesses, Net of Cash Acquired	0.0	26.2
Capital expenditures	(14.4)	(14.1)
Net cash provided by (used in) investing activities	(7.0)	(40.1)
Repayments of debt	2.4	2.5
Financing activities:
Dividends paid	(14.3)	(11.2)
Common stock issued	6.4	3.9
Shares retained for employee taxes	(2.1)	(2.7)
Other	(0.1)	0.0
Net cash used in financing activities	(32.5)	(63.5)
Deferred financing costs	0.0	1.0
Operating activities	0.0	(43.6)
Investing activities	0.0	297.2
Financing activities	0.0	(0.1)
Net cash provided by (used in) discontinued operations	0.0	253.5
Effect of currency exchange rate changes on cash	0.1	(0.3)
Net Cash Provided by (Used in) Discontinued Operations [Abstract]
Net change in cash and cash equivalents	(37.8)	133.3
Cash and cash equivalents at beginning of period	361.7	195.0
Cash and cash equivalents at end of period	323.9	328.3
Proceeds from sales of assets	$ 7.4	$ 0.2

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Discontinued Operations, Assets Held for Sale and Divestitures

6 Months Ended

Mar. 31, 2018

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Discontinued Operations and Divestitures

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 in 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.

On January 6, 2017, we sold our former Anvil segment to affiliates of One Equity Partners. The final cash proceeds of this sale were $305.7 million. The table below presents a summary of the operating results for the Anvil discontinued operations during the quarter and six months endedMarch 31, 2017. These operating results do not reflect what they would have been had Anvil not been sold.

	Three months ended			Six months ended
	March 31,			March 31,
	2017			2017
	(in millions)
Net sales	$	—		$	83.1
Cost of sales	—			62.8
Gross profit	—			20.3
Operating expenses:
Selling, general and administrative	(1.4		)	16.9
Other charges	—			0.2
Total operating expenses	(1.4		)	17.1
Income before income taxes	1.4			3.2
Income tax expense	0.7			1.2
	0.7			2.0
Gain on sale, net of tax	67.9			67.9
Income from discontinued operations	$	68.6		$	69.9

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Organization

6 Months Ended

Mar. 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. 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. Amounts applicable to Anvil have been classified as discontinued operations.

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 gain 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, 2017. 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, 2017 was derived from audited financial statements, but does not include all disclosures required by GAAP.

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 ultimate aggregate cash purchase price of $26.6 million.

On October 1, 2017, we adopted Financial Accounting Standards Board (“FASB”) Accounting Standards Update No. 2017-07, which requires us to exclude from operating income the components of net periodic benefit cost other than service cost. Accordingly, in the Condensed Consolidated Statement of Operations we have reclassified to pension costs other than service $0.3 million and $0.5 million from selling, general and administrative expenses and $0.1 million and $0.2 million from cost of sales for the three months and six months endedMarch 31, 2017, respectively.

HR-1, formerly 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 3.

In May 2014, the FASB issued new guidance for the recognition of revenue and the requirement for additional financial statement disclosures.  We plan to adopt this guidance using the modified retrospective transition method beginning in the first quarter of fiscal 2019. We have completed our initial scoping and established a project team to evaluate revenue recognition practices for each revenue stream against the new requirements, to suggest changes to the terms of our sales contracts if warranted, and to design and implement processes to comply with the new requirements. The project team is in the process of evaluating our sales contracts. At this time we do not expect the new guidance to materially affect our stockholders' equity, net sales or operating income.

On September 7, 2017, we announced a strategic reorganization plan designed to accelerate our product innovation and revenue growth. We have adopted 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. Costs and expenses in the six months endedMarch 31, 2018 for this plan, 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.

	Six months ended
	March 31, 2018
	(in millions)
Beginning balance	$	3.3
Expense	3.6
Payments	(3.9		)
Ending balance	$	3.0

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Income Taxes

6 Months Ended

Mar. 31, 2018

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

Income Taxes

On December 22, 2017, HR-1, formerly 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. The average of these rates varies slightly from year to year but historically has been approximately 39%. With the legislation changing 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 a provisional income tax benefit of $42.6 million, which is subject to change, as we continue to analyze certain aspects of the Act and refine our calculations. We do not expect changes to this amount to be material.

The Act also imposes a one-time transition tax on the undistributed, previously-untaxed, post-1986 foreign “earnings and profits” (as defined by the IRS) of certain U.S.-owned corporations. Determination of our transition tax liability requires 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. During the quarter ended March 31, 2018, we recorded a provisional estimated transition tax of $7.5 million, excluding any state income tax impact, on approximately $96.8 million of undistributed accumulated earnings and profits of foreign subsidiaries. The transition tax is payable over eight years beginning in fiscal year 2019. The undistributed accumulated earnings and profits are now considered previously taxed income and will no longer be subject to U.S. federal income taxes upon repatriation of the earnings in the form of dividends. The undistributed accumulated earnings and profits are considered permanently reinvested and, accordingly, no provision for deferred taxes on financial statement and tax differences, local withholdings or foreign exchange gains or losses have been provided. However, we could be subject to additional local withholding taxes upon repatriation of these earnings in the form of a dividend. We are continuing to gather and evaluate information related to the state income tax impact of the Act, including the state income tax impact of the transition tax. In addition to these state income tax related matters, the final transition tax calculation is also dependent on our balance sheet at September 30, 2018, and therefore is subject to change. We do not expect changes to this amount to be material.

In addition to the adoption items discussed above, the results of our operations include federal income tax expense on our current period earnings at a full-year blended rate of 24.5%, since the rate reduction in the Act is effective on January 1, 2018. The reconciliation between the U.S. federal statutory income tax rate and the effective tax rate is presented below.

	Three months ended				Six months ended
	March 31,				March 31,
	2018		2017		2018		2017
U.S. federal statutory income tax rate	24.5	%	35.0	%	24.5	%	35.0	%
Adjustments to reconcile to the effective tax rate:
State tax apportionment change	—		14.9		—		6.4
State income taxes, net of federal benefit	4.4		3.7		4.4		3.8
Excess tax benefits related to stock compensation	(1.1	)	(30.0	)	(1.7	)	(17.2	)
Domestic production activities deduction	(1.6	)	(4.9	)	(1.6	)	(4.1	)
Tax credits	(0.9	)	(7.2	)	(0.9	)	(3.5	)
Other	2.2		1.5		(0.8	)	1.3
	27.5	%	13.0	%	23.9	%	21.7	%
Transition tax	30.7		—		18.9		—
Remeasurement of deferred taxes for change in rates	—		—		(107.3	)	—
Effective income tax rate	58.2	%	13.0	%	(64.5	)%	21.7	%

At March 31, 2018 and September 30, 2017, the gross liabilities for unrecognized income tax benefits were $3.1 million and $3.0 million, respectively.

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				Six months ended
	March 31,				March 31,
	2018		2017		2018		2017
U.S. federal statutory income tax rate	24.5	%	35.0	%	24.5	%	35.0	%
Adjustments to reconcile to the effective tax rate:
State tax apportionment change	—		14.9		—		6.4
State income taxes, net of federal benefit	4.4		3.7		4.4		3.8
Excess tax benefits related to stock compensation	(1.1	)	(30.0	)	(1.7	)	(17.2	)
Domestic production activities deduction	(1.6	)	(4.9	)	(1.6	)	(4.1	)
Tax credits	(0.9	)	(7.2	)	(0.9	)	(3.5	)
Other	2.2		1.5		(0.8	)	1.3
	27.5	%	13.0	%	23.9	%	21.7	%
Transition tax	30.7		—		18.9		—
Remeasurement of deferred taxes for change in rates	—		—		(107.3	)	—
Effective income tax rate	58.2	%	13.0	%	(64.5	)%	21.7	%

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Borrowing Arrangements

6 Months Ended

Mar. 31, 2018

Long-term Debt and Capital Lease Obligations [Abstract]

Borrowing Arrangements

Borrowing Arrangements

The components of our long-term debt are presented below.

	March 31,		September 30,
	2018		2017
	(in millions)
ABL Agreement	$	—	$	—
Term Loan	482.6		484.8
Other	1.6		1.7
	484.2		486.5
Less deferred financing costs	5.2		5.9
Less current portion	5.6		5.6
Long-term debt	$	473.4	$	475.0

ABL Agreement. At March 31, 2018, 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 March 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 March 31, 2018 data, as reduced by outstanding letters of credit, swap contract balances and accrued fees and expenses of $18.5 million, was $133.5 million.

Term Loan. On November 25, 2014, we entered into a $500.0 million senior secured term loan (“Term Loan”), which accrues interest at a floating rate equal to LIBOR, subject to a floor of 0.75%, plus 250 basis points. At March 31, 2018, the weighted-average effective interest rate was 4.78%. 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 $1.3 million at March 31, 2018. Based on quoted market prices, the outstanding Term Loan had a fair value of $488.4 million at March 31, 2018.

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 March 31, 2018 and expect to remain in compliance through March 31, 2019.

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Derivative Financial Instruments (Notes)

6 Months Ended

Mar. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities Disclosure [Text Block]

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% from September 30, 2016 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 loss and are reclassified into interest expense as the related interest payments are made. We included $0.2 million and $0.5 million of such interest expense in income from continuing operations during the quarters ended March 31, 2018 and March 31, 2017, respectively, and $0.6 million and $1.1 million during the six months endedMarch 31, 2018 and March 31, 2017, respectively.

The fair values of the swap contracts are presented below.

	March 31,		September 30,
	2018		2017
	(in millions)
Interest rate swap contracts, designated as cash flow hedges in assets:
Other noncurrent assets	$	1.5	$	—
	$	1.5	$	—
Interest rate swap contracts, designated as cash flow hedges in liabilities:
Other current liabilities	$	—	$	1.2
Other noncurrent liabilities	—		1.3
	$	—	$	2.5
Currency swap contracts, not designated as hedges:
Other noncurrent liabilities	$	1.0	$	1.3

The fair values and the classification of the fair values 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.

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Retirement Plans

6 Months Ended

Mar. 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						Six months ended
	March 31,						March 31,
	2018			2017			2018			2017
	(in millions)
Service cost	$	0.4		$	0.5		$	0.9		$	1.0
Pension costs other than service:
Interest cost	3.6			3.6			7.2			7.2
Expected return on plan assets	(4.1		)	(4.2		)	(8.3		)	(8.5		)
Amortization of actuarial net loss	0.8			1.0			1.6			2.0
	0.3			0.4			0.5			0.7
Net periodic benefit cost	$	0.7		$	0.9		$	1.4		$	1.7

The amortization of actuarial losses, net of tax, is recorded as a component of other comprehensive loss.

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Stock-based Compensation Plans

6 Months Ended

Mar. 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 both cash-settled and stock-settled performance-based restricted stock units (“PRSUs”) under our Amended and Restated 2006 Mueller Water Products, Inc. Stock Incentive Plan (the “2006 Stock Plan”).

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. 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.

We awarded 171,288 stock-settled PRSUs in the six months endedMarch 31, 2018 scheduled to settle in three years.

We issued 146,061 shares and 263,410 shares of common stock during the six months endedMarch 31, 2018 and 2017, respectively, to settle PRSUs.

In addition to the PRSU activity, 125,173 and 338,705 restricted stock units vested during the three and six months endedMarch 31, 2018, respectively.

We have granted cash-settled Phantom Plan instruments under the Mueller Water Products, Inc. Phantom Plan (“Phantom Plan”). At March 31, 2018, the outstanding Phantom Plan instruments had a fair value of $10.87 per instrument and our liability for Phantom Plan instruments was $1.3 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 six months endedMarch 31, 2018 as follows.

	Number granted	Weighted average grant date fair value per instrument		Total grant date fair value (in millions)
Quarter ended December 31, 2017:
Restricted stock units	171,288	$	12.41	$	2.1
Employee stock purchase plan instruments	35,099	2.28		0.1
Phantom Plan awards	160,672	12.41		2.0
PRSUs: 2018 award	57,092	12.41		0.7
2017 award	71,070	12.41		0.9
2016 award	71,072	12.41		0.9
Quarter ended March 31, 2018:
Restricted stock units	63,389	11.67		0.7
Employee stock purchase plan instruments	32,702	2.49		0.1
Phantom Plan awards	2,527	$	10.95	$	—
				$	7.5

Income from continuing operations included stock-based compensation expense of $1.6 million and $2.0 million during the three months ended March 31, 2018 and 2017, respectively, and $4.0 million and $4.7 million during the six months endedMarch 31, 2018 and 2017, respectively. At March 31, 2018, there was approximately $8.2 million of unrecognized compensation expense related to stock-based compensation arrangements, and 178,105 PRSUs that have been awarded for the 2019 and 2020 performance periods, for which performance goals have not been set.

We excluded 289,860 and 367,841 of stock-based compensation instruments from the calculations of diluted earnings per share for the quarters ended March 31, 2018 and 2017, respectively, and 278,697 and 350,286 for the six months endedMarch 31, 2018 and 2017, respectively, since their inclusion would have been antidilutive.

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Supplemental Balance Sheet Information

6 Months Ended

Mar. 31, 2018

Balance Sheet Related Disclosures [Abstract]

Supplemental Balance Sheet Information

Selected supplemental balance sheet information is presented below.

	March 31,			September 30,
	2018			2017
	(in millions)
Inventories:
Purchased components and raw material	$	80.7		$	67.7
Work in process	36.1			35.6
Finished goods	39.4			35.6
	$	156.2		$	138.9
Other current assets:
Maintenance and repair tooling	$	3.6		$	3.3
Income taxes	7.1			10.9
Other	10.5			10.2
	$	21.2		$	24.4
Property, plant and equipment:
Land	$	5.4		$	5.6
Buildings	53.5			53.4
Machinery and equipment	276.9			266.7
Construction in progress	23.0			24.7
	358.8			350.4
Accumulated depreciation	(234.8		)	(228.1		)
	$	124.0		$	122.3
Other current liabilities:
Compensation and benefits	$	22.4		$	26.9
Customer rebates	5.2			6.5
Taxes other than income taxes	4.0			3.2
Warranty	4.1			3.5
Income taxes	1.3			0.9
Environmental	1.2			1.3
Interest	0.7			0.6
Restructuring	3.0			3.3
Other	7.9			7.3
	$	49.8		$	53.5

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Accumulated Other Comprehensive Loss

6 Months Ended

Mar. 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

Accumulated other comprehensive loss is presented below.

	Pension, net of tax			Foreign currency translation			Derivative instruments, net of tax			Total
Balance at September 30, 2017	$	(47.0	)	$	(3.3	)	$	(1.5	)	$	(51.8	)
Current period other comprehensive income (loss)	1.1			(0.3		)	2.6			3.4
Balance at March 31, 2018	$	(45.9	)	$	(3.6	)	$	1.1		$	(48.4	)

Accumulated other comprehensive loss is presented below.

	Pension, net of tax			Foreign currency translation			Derivative instruments, net of tax			Total
Balance at September 30, 2017	$	(47.0	)	$	(3.3	)	$	(1.5	)	$	(51.8	)
Current period other comprehensive income (loss)	1.1			(0.3		)	2.6			3.4
Balance at March 31, 2018	$	(45.9	)	$	(3.6	)	$	1.1		$	(48.4	)

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Segment Information

6 Months Ended

Mar. 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						Six months ended
	March 31,						March 31,
	2018			2017			2018			2017
	(in millions)
Net sales, excluding intercompany:
Infrastructure	$	211.1		$	181.6		$	371.2		$	327.9
Technologies	22.1			18.1			40.3			39.0
	$	233.2		$	199.7		$	411.5		$	366.9
Intercompany sales:
Infrastructure	$	—		$	—		$	—		$	1.1
Technologies	—			—			—			—
	$	—		$	—		$	—		$	1.1
Operating income (loss):
Infrastructure	$	44.9		$	34.4		$	73.0		$	60.6
Technologies	(3.9		)	(13.7		)	(8.6		)	(15.9		)
Corporate	(11.1		)	(9.4		)	(13.8		)	(19.2		)
	$	29.9		$	11.3		$	50.6		$	25.5
Depreciation and amortization:
Infrastructure	$	9.4		$	9.1		$	18.5		$	18.1
Technologies	1.5			1.4			2.9			2.6
Corporate	—			0.1			0.1			0.2
	$	10.9		$	10.6		$	21.5		$	20.9
Strategic reorganization and other charges:
Infrastructure	$	0.1		$	1.6		$	0.1		$	1.7
Technologies	—			0.1			0.1			0.1
Corporate	1.8			0.8			5.6			2.0
	$	1.9		$	2.5		$	5.8		$	3.8
Capital expenditures:
Infrastructure	$	6.3		$	4.7		$	11.1		$	7.7
Technologies	1.5			5.2			3.0			6.3
Corporate	0.2			—			0.3			0.1
	$	8.0		$	9.9		$	14.4		$	14.1

Mueller Technologies' operating losses for the quarter and six months ended March 31, 2017 include a warranty expense of $9.8 million, as described in Note 11.

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Commitments and Contingencies

6 Months Ended

Mar. 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 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 March 31, 2018.

Walter Energy. Each member of the Walter Energy consolidated group, which included us through December 14, 2006, is jointly and severally liable for the federal income tax liability of each other member of the consolidated group for any year in which it is a member of the group at any time during such year. Accordingly, we could be liable in the event any such federal income tax liability is incurred, and not discharged, by any other member of the Walter Energy consolidated group for any period during which we were included in the Walter Energy consolidated group.

Walter Energy effectively controlled all of our tax decisions for periods during which we were a member of the Walter Energy consolidated group for federal income tax purposes and certain combined, consolidated or unitary state and local income tax groups. Under the terms of an income tax allocation agreement between us and Walter Energy, dated May 26, 2006, we generally compute our tax liability on a stand-alone basis, but Walter Energy has sole authority to respond to and conduct all tax proceedings (including tax audits) relating to our federal income and combined state tax returns, to file all such tax returns on our behalf and to determine the amount of our liability to (or entitlement to payment from) Walter Energy for such previous periods.

As described further below, the IRS is currently alleging that Walter Energy owes substantial amounts for prior taxable periods (specifically, 1983-1994, 2000-2002 and 2005). 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.

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 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 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 quarterly report on Form 10-Q filed by Walter Energy with the SEC on November 5, 2015 (“Walter November 2015 Filing”), at September 30, 2015, Walter Energy had  $33.0 million of accruals for unrecognized tax benefits in connection with the matters subject to the IRS claims. 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.

According to a 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 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 IRS’ proof of claim filed in the bankruptcy cases and the proof of claim, as well as 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 IRS’ proof of claim filed in the bankruptcy cases, 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, (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, and whether and to what extent funds will be available in the Chapter 7 Case to pay priority tax claims and (iii) 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. While we cannot predict whether or to what extent we may become liable, we believe that once certain taxpayer refunds (applicable primarily to years 1997, and 2006 through 2015) are applied against asserted income tax liabilities owing for other years, that the total net tax liabilities of Walter Energy, if any, will be substantially less than those asserted by the IRS in its earlier filed proofs of claim. However, any 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 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. Certain 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 the second quarter of 2017. We have continued to process warranty claims with respect to these products and update our loss analysis using cost and product data collected since March 31, 2017 in order to assess the adequacy of our warranty reserve for this matter. Our analysis is continuing and thus we are unable to reasonably estimate additional loss, if any, at this time. It is possible that to the extent any additional warranty expense is recorded for this matter, such additional expense could be material to Technologies' operating results in future periods.

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.

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Subsequent Events

6 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On April 17, 2018, our board of directors declared a dividend of $0.05 per share on our common stock, payable on or about May 21, 2018 to stockholders of record at the close of business on May 10, 2018.

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Discontinued Operations, Assets Held for Sale and Divestitures (Tables)

6 Months Ended

Mar. 31, 2018

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations [Table Text Block]

The table below presents a summary of the operating results for the Anvil discontinued operations during the quarter and six months endedMarch 31, 2017. These operating results do not reflect what they would have been had Anvil not been sold.

	Three months ended			Six months ended
	March 31,			March 31,
	2017			2017
	(in millions)
Net sales	$	—		$	83.1
Cost of sales	—			62.8
Gross profit	—			20.3
Operating expenses:
Selling, general and administrative	(1.4		)	16.9
Other charges	—			0.2
Total operating expenses	(1.4		)	17.1
Income before income taxes	1.4			3.2
Income tax expense	0.7			1.2
	0.7			2.0
Gain on sale, net of tax	67.9			67.9
Income from discontinued operations	$	68.6		$	69.9

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Organization Restructuring Rollforward (Tables)

6 Months Ended

Mar. 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.

	Six months ended
	March 31, 2018
	(in millions)
Beginning balance	$	3.3
Expense	3.6
Payments	(3.9		)
Ending balance	$	3.0

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Income Taxes Rate Reconciliation (Tables)

6 Months Ended

Mar. 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				Six months ended
	March 31,				March 31,
	2018		2017		2018		2017
U.S. federal statutory income tax rate	24.5	%	35.0	%	24.5	%	35.0	%
Adjustments to reconcile to the effective tax rate:
State tax apportionment change	—		14.9		—		6.4
State income taxes, net of federal benefit	4.4		3.7		4.4		3.8
Excess tax benefits related to stock compensation	(1.1	)	(30.0	)	(1.7	)	(17.2	)
Domestic production activities deduction	(1.6	)	(4.9	)	(1.6	)	(4.1	)
Tax credits	(0.9	)	(7.2	)	(0.9	)	(3.5	)
Other	2.2		1.5		(0.8	)	1.3
	27.5	%	13.0	%	23.9	%	21.7	%
Transition tax	30.7		—		18.9		—
Remeasurement of deferred taxes for change in rates	—		—		(107.3	)	—
Effective income tax rate	58.2	%	13.0	%	(64.5	)%	21.7	%

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Borrowing Arrangements (Tables)

6 Months Ended

Mar. 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.

	March 31,		September 30,
	2018		2017
	(in millions)
ABL Agreement	$	—	$	—
Term Loan	482.6		484.8
Other	1.6		1.7
	484.2		486.5
Less deferred financing costs	5.2		5.9
Less current portion	5.6		5.6
Long-term debt	$	473.4	$	475.0

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Derivative Financial Instruments (Tables)

6 Months Ended

Mar. 31, 2018

Derivatives, Fair Value [Line Items]

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]

The fair values of the swap contracts are presented below.

	March 31,		September 30,
	2018		2017
	(in millions)
Interest rate swap contracts, designated as cash flow hedges in assets:
Other noncurrent assets	$	1.5	$	—
	$	1.5	$	—
Interest rate swap contracts, designated as cash flow hedges in liabilities:
Other current liabilities	$	—	$	1.2
Other noncurrent liabilities	—		1.3
	$	—	$	2.5
Currency swap contracts, not designated as hedges:
Other noncurrent liabilities	$	1.0	$	1.3

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Retirement Plans (Tables)

6 Months Ended

Mar. 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						Six months ended
	March 31,						March 31,
	2018			2017			2018			2017
	(in millions)
Service cost	$	0.4		$	0.5		$	0.9		$	1.0
Pension costs other than service:
Interest cost	3.6			3.6			7.2			7.2
Expected return on plan assets	(4.1		)	(4.2		)	(8.3		)	(8.5		)
Amortization of actuarial net loss	0.8			1.0			1.6			2.0
	0.3			0.4			0.5			0.7
Net periodic benefit cost	$	0.7		$	0.9		$	1.4		$	1.7

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Stock-based Compensation Plans (Tables)

6 Months Ended

Mar. 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)
Quarter ended December 31, 2017:
Restricted stock units	171,288	$	12.41	$	2.1
Employee stock purchase plan instruments	35,099	2.28		0.1
Phantom Plan awards	160,672	12.41		2.0
PRSUs: 2018 award	57,092	12.41		0.7
2017 award	71,070	12.41		0.9
2016 award	71,072	12.41		0.9
Quarter ended March 31, 2018:
Restricted stock units	63,389	11.67		0.7
Employee stock purchase plan instruments	32,702	2.49		0.1
Phantom Plan awards	2,527	$	10.95	$	—
				$	7.5

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Supplemental Balance Sheet Information (Tables)

6 Months Ended

Mar. 31, 2018

Balance Sheet Related Disclosures [Abstract]

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

ental balance sheet information is presented below.

	March 31,			September 30,
	2018			2017
	(in millions)
Inventories:
Purchased components and raw material	$	80.7		$	67.7
Work in process	36.1			35.6
Finished goods	39.4			35.6
	$	156.2		$	138.9
Other current assets:
Maintenance and repair tooling	$	3.6		$	3.3
Income taxes	7.1			10.9
Other	10.5			10.2
	$	21.2		$	24.4
Property, plant and equipment:
Land	$	5.4		$	5.6
Buildings	53.5			53.4
Machinery and equipment	276.9			266.7
Construction in progress	23.0			24.7
	358.8			350.4
Accumulated depreciation	(234.8		)	(228.1		)
	$	124.0		$	122.3
Other current liabilities:
Compensation and benefits	$	22.4		$	26.9
Customer rebates	5.2			6.5
Taxes other than income taxes	4.0			3.2
Warranty	4.1			3.5
Income taxes	1.3			0.9
Environmental	1.2			1.3
Interest	0.7			0.6
Restructuring	3.0			3.3
Other	7.9			7.3
	$	49.8		$	53.5

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Accumulated Other Comprehensive Loss (Tables)

6 Months Ended

Mar. 31, 2018

Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]

Schedule Of Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

Accumulated other comprehensive loss is presented below.

	Pension, net of tax			Foreign currency translation			Derivative instruments, net of tax			Total
Balance at September 30, 2017	$	(47.0	)	$	(3.3	)	$	(1.5	)	$	(51.8	)
Current period other comprehensive income (loss)	1.1			(0.3		)	2.6			3.4
Balance at March 31, 2018	$	(45.9	)	$	(3.6	)	$	1.1		$	(48.4	)

Accumulated other comprehensive loss is presented below.

	Pension, net of tax			Foreign currency translation			Derivative instruments, net of tax			Total
Balance at September 30, 2017	$	(47.0	)	$	(3.3	)	$	(1.5	)	$	(51.8	)
Current period other comprehensive income (loss)	1.1			(0.3		)	2.6			3.4
Balance at March 31, 2018	$	(45.9	)	$	(3.6	)	$	1.1		$	(48.4	)

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Segment Information (Tables)

6 Months Ended

Mar. 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						Six months ended
	March 31,						March 31,
	2018			2017			2018			2017
	(in millions)
Net sales, excluding intercompany:
Infrastructure	$	211.1		$	181.6		$	371.2		$	327.9
Technologies	22.1			18.1			40.3			39.0
	$	233.2		$	199.7		$	411.5		$	366.9
Intercompany sales:
Infrastructure	$	—		$	—		$	—		$	1.1
Technologies	—			—			—			—
	$	—		$	—		$	—		$	1.1
Operating income (loss):
Infrastructure	$	44.9		$	34.4		$	73.0		$	60.6
Technologies	(3.9		)	(13.7		)	(8.6		)	(15.9		)
Corporate	(11.1		)	(9.4		)	(13.8		)	(19.2		)
	$	29.9		$	11.3		$	50.6		$	25.5
Depreciation and amortization:
Infrastructure	$	9.4		$	9.1		$	18.5		$	18.1
Technologies	1.5			1.4			2.9			2.6
Corporate	—			0.1			0.1			0.2
	$	10.9		$	10.6		$	21.5		$	20.9
Strategic reorganization and other charges:
Infrastructure	$	0.1		$	1.6		$	0.1		$	1.7
Technologies	—			0.1			0.1			0.1
Corporate	1.8			0.8			5.6			2.0
	$	1.9		$	2.5		$	5.8		$	3.8
Capital expenditures:
Infrastructure	$	6.3		$	4.7		$	11.1		$	7.7
Technologies	1.5			5.2			3.0			6.3
Corporate	0.2			—			0.3			0.1
	$	8.0		$	9.9		$	14.4		$	14.1

Mueller Technologies' operating losses for the quarter and six months ended March 31, 2017 include a warranty expense of $9.8 million, as described in Note 11.

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Discontinued Operations, Assets Held for Sale and Divestitures (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jan. 06, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on sale of idle property	$ 0.0	$ 0.0	$ 9.0	$ 0.0
Disposal Date		Jan. 06, 2017
Disposal Group, Including Discontinued Operation, Consideration					$ (305.7)
Restructuring	1.9	$ 2.5	5.8	3.8
Revenue, Net	233.2	$ 199.7	411.5	$ 366.9
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)		(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, Consideration	(0.8)		(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, Consideration	(0.4)		(0.4)
Other Noncurrent Liabilities [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Disposal Group, Including Discontinued Operation, Consideration	$ (1.2)		$ (1.2)

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Organization (Details) $ in Millions		3 Months Ended			6 Months Ended		12 Months Ended
	Jul. 31, 2014	Mar. 31, 2018 USD ($)	Dec. 31, 2017 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Sep. 30, 2019	Sep. 30, 2017
Segment Reporting Information [Line Items]
Beginning balance		$ 3.0	$ 3.3		$ 3.3
Restructuring		1.9		$ 2.5	5.8	$ 3.8
Payments			$ 3.9
Number of Reportable Segments			2
Variable Interest Entity, Qualitative or Quantitative Information, Ownership Percentage	49.00%
Payments for (Proceeds from) Other Investing Activities						26.6
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost		0.3		0.4	0.5	0.7
Revenue, Net		$ 233.2		$ 199.7	$ 411.5	$ 366.9
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		24.50%		35.00%	24.50%	35.00%		35.00%
Mueller Co. [Member]
Segment Reporting Information [Line Items]
Restructuring		$ 0.1		$ 1.6	$ 0.1	$ 1.7
Revenue, Net		$ 211.1		181.6	$ 371.2	327.9
General and Administrative Expense [Member] | Mueller Co. [Member]
Segment Reporting Information [Line Items]
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost				0.3		0.5
Cost of Sales [Member] | Mueller Co. [Member]
Segment Reporting Information [Line Items]
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost				$ 0.1		$ 0.2
Scenario, Forecast [Member]
Segment Reporting Information [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent							21.00%

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Discontinued Operations, Assets Held for Sale and Divestitures (Schedule of Disposal Groups, Including Discontinued Operations - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Net sales	$ 0.0		$ 83.1
Cost of sales	0.0		62.8
Gross profit	0.0		20.3
Operating expenses:
Selling, general and administrative	(1.4)		16.9
Other charges	0.0		0.2
Total operating expenses	(1.4)		17.1
Operating income	1.4		3.2
Income tax expense	0.7		1.2
Discontinued Operation, Income (Loss) from Discontinued Operation During Phase-out Period, Net of Tax	0.7		2.0
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax	67.9		67.9
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent	$ 68.6	$ 0.0	$ 69.9

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Organization Restructuring (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Restructuring Cost and Reserve [Line Items]
Beginning balance	$ 3.0	$ 3.3		$ 3.3
Restructuring	$ 1.9		$ 2.5	$ 5.8	$ 3.8
Payments		(3.9)
Mueller One Project [Member]
Restructuring Cost and Reserve [Line Items]
Restructuring		$ 3.6

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Income Taxes (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended			6 Months Ended		12 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Unrecognized Tax Benefits	$ 3.1			$ 3.1		$ 3.0
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	24.50%		35.00%	24.50%	35.00%	35.00%
Weighted Average Deferred Income Tax Provision Rate		25.00%				39.00%
Income Tax Expense (Benefit), Continuing Operations, Adjustment of Deferred Tax (Asset) Liability		$ 7.5		$ (42.6)
Undistributed Accumulated Foreign Earnings	$ 96.8			$ 96.8

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Income Taxes Income Tax Rate Reconciliation (Details)	3 Months Ended		6 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent	24.50%	35.00%	24.50%	35.00%	35.00%
Adjustments to reconcile to the effective tax rate:
State tax rate change	0.00%	14.90%	0.00%	6.40%
State income taxes, net of federal benefit	4.40%	3.70%	4.40%	3.80%
Tax benefits from stock compensation	(1.10%)	(30.00%)	(1.70%)	(17.20%)
U.S. manufacturing deduction	(1.60%)	(4.90%)	(1.60%)	(4.10%)
Tax credits	(0.90%)	(7.20%)	(0.90%)	(3.50%)
Other	(2.20%)	1.50%	0.80%	(1.30%)
Effective Income Tax Rate Reconciliation, Recurring, Percent	27.50%	13.00%	23.90%	21.70%
Effective Income Tax Rate Reconciliation, Transition Tax, Percent	30.70%	0.00%	18.90%	0.00%
Change in rate for deferred taxes	0.00%	0.00%	(107.30%)	0.00%
Effective income tax rate	58.20%	13.00%	(64.50%)	21.70%

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Borrowing Arrangements (Narrative) (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2018	Sep. 30, 2017	Mar. 31, 2017	Sep. 30, 2016
Cash and cash equivalents	$ 323,900	$ 361,700	$ 328,300	$ 195,000
Future maturities of outstanding borrowings
Debt Instrument, Unamortized Discount	1,300
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	12500.00%
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	$ 18,500
Excess availability reduced by outstanding borrowings, outstanding letters of credit and accrued fees and expenses	133,500
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
Debt Instrument, Basis Spread on Variable Rate	25000.00%
Debt Instrument, Interest Rate, Effective Percentage	4.78%
Debt Instrument, Periodic Payment, Principal	$ 1,225
Agreement termination date	Nov. 25, 2021
Future maturities of outstanding borrowings
Financial Liabilities Fair Value Disclosure	$ 488,400
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%

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Borrowing Arrangements (Components Of Long-Term Debt) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Sep. 30, 2017
Debt instrument	$ 484.2	$ 486.5
Deferred financing costs	5.2	5.9
Current portion of long-term debt	5.6	5.6
Long-term debt	473.4	475.0
Domestic Line of Credit [Member]
Debt instrument	0.0	0.0
Secured Debt [Member]
Debt instrument	482.6	484.8
Other [Member]
Debt instrument	$ 1.6	$ 1.7

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Derivative Financial Instruments (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended		60 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2021	Sep. 30, 2017	Sep. 30, 2016
Derivative [Line Items]
Other noncurrent assets	$ 1.5		$ 1.5			$ 0.0
Interest Rate Derivative Assets, at Fair Value	1.5		1.5			0.0
Other current liabilities	$ 0.0		$ 0.0			1.2
Derivative, Cap Interest Rate							0.75%
Derivative, Fixed Interest Rate	2.341%		2.341%
Derivative, Amount of Hedged Item	$ 150.0		$ 150.0
Other noncurrent liabilities	0.0		0.0			1.3
Interest Rate Derivatives, at Fair Value, Net	0.0		0.0			2.5
Interest Rate Cash Flow Hedge Gain (Loss) Reclassified to Earnings, Net	0.2	$ 0.5	0.6	$ 1.1
Other noncurrent liabilities	1.0		1.0			$ 1.3
Secured Debt [Member]
Derivative [Line Items]
Long-term Debt, Gross	$ 500.0		$ 500.0
Debt Instrument, Interest Rate, Effective Percentage	4.78%		4.78%
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
Cash Flow Hedging [Member] | Secured Debt [Member]
Derivative [Line Items]
Long-term Debt, Gross	$ 150.0		$ 150.0
Debt Instrument, Interest Rate, Effective Percentage	4.841%		4.841%

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Retirement Plans (Narrative) (Details) $ in Millions	6 Months Ended
	Mar. 31, 2018 USD ($)
Decrease in accumulated other comprehensive loss net of tax	$ 1.1

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Retirement Plans (Net Periodic Benefit Cost) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Defined Benefit Plan, Service Cost	$ 0.4	$ 0.5	$ 0.9	$ 1.0
Defined Benefit Plan, Interest Cost	3.6	3.6	7.2	7.2
Defined Benefit Plan, Expected Return (Loss) on Plan Assets	(4.1)	(4.2)	(8.3)	(8.5)
Amortization of actuarial net loss	0.8	1.0	1.6	2.0
Defined Benefit Plan, Net Periodic Benefit Cost other than Service Cost	0.3	0.4	0.5	0.7
Net periodic benefit cost	$ 0.7	$ 0.9	$ 1.4	$ 1.7

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Stock-based Compensation Plans (Narrative) (Details) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018 USD ($) $ / shares shares	Mar. 31, 2017 USD ($) shares	Mar. 31, 2018 USD ($) $ / shares shares	Mar. 31, 2017 USD ($) shares
Allocated Share-based Compensation Expense | $	$ 1.6	$ 2.0	$ 4.0	$ 4.7
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $	$ 8.2		$ 8.2
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	289,860	367,841	278,697	350,286
Phantom Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share | $ / shares	$ 10.87		$ 10.87
Share-based compensation liability | $	$ 1.3		$ 1.3
Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period			146,061	263,410
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period			171,288
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period			3 years
Share-based compensation, units awarded but not yet granted	178,105		178,105
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period	125,173		338,705
Minimum [Member] | Performance Shares [Member]
Performance Factor			0
Maximum [Member] | Performance Shares [Member]
Performance Factor			2

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Stock-based Compensation Plans Grants Table - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Dec. 31, 2017	Mar. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock Granted, Value, Share-based Compensation, Gross			$ 7.5
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares	63,389	171,288
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 11.67	$ 12.41
Stock Granted, Value, Share-based Compensation, Gross	$ 0.7	$ 2.1
Employee Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares	32,702	35,099
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 2.49	$ 2.28
Stock Granted, Value, Share-based Compensation, Gross	$ 0.1	$ 0.1
Phantom Share Units (PSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares	2,527	160,672
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value	$ 10.95	$ 12.41
Stock Granted, Value, Share-based Compensation, Gross	$ 0.0	$ 2.0
Share-based Compensation Award, Tranche One [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		57,092
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value		$ 12.41
Stock Granted, Value, Share-based Compensation, Gross		$ 0.7
Share-based Compensation Award, Tranche Two [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		71,070
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value		$ 12.41
Stock Granted, Value, Share-based Compensation, Gross		$ 0.9
Share-based Compensation Award, Tranche Three [Member] | Performance Shares [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, shares		71,072
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value		$ 12.41
Stock Granted, Value, Share-based Compensation, Gross		$ 0.9

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Supplemental Balance Sheet Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions	Mar. 31, 2018	Dec. 31, 2017	Sep. 30, 2017
Inventories:
Purchased components and raw material	$ 80.7		$ 67.7
Work in process	36.1		35.6
Finished goods	39.4		35.6
Inventories, net	156.2		138.9
Maintenance and repair tooling	3.6		3.3
Income taxes	7.1		10.9
Other	10.5		10.2
Other	21.2		24.4
Property, plant and equipment:
Land	5.4		5.6
Buildings	53.5		53.4
Machinery and equipment	276.9		266.7
Construction in progress	23.0		24.7
Property, plant and equipment, gross	358.8		350.4
Accumulated depreciation	(234.8)		(228.1)
Property, plant and equipment net	124.0		122.3
Other current liabilities:
Compensation and benefits	22.4		26.9
Customer rebates	5.2		6.5
Interest	0.7		0.6
Taxes other than income taxes	4.0		3.2
Warranty	4.1		3.5
Environmental	1.2		1.3
Income taxes	1.3		0.9
Restructuring	3.0	$ 3.0	3.3
Other	7.9		7.3
Other current liabilities	$ 49.8		$ 53.5

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Accumulated Other Comprehensive Loss (Schedule Of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax			$ 1.1
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax			(47.0)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax			(3.3)
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax			(1.5)
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (48.4)		(48.4)		$ (51.8)
Foreign currency translation	(0.4)	$ 1.0	(0.3)	$ (0.5)
Other Comprehensive Income (Loss), Derivatives Qualifying as Hedges, Net of Tax			2.6
Other Comprehensive Income (Loss), Net of Tax			3.4
Accumulated Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax	(45.9)		(45.9)
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	(3.6)		(3.6)
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges, Effect Net of Tax	1.1		1.1
Accumulated Other Comprehensive Income (Loss), Net of Tax	$ (48.4)		$ (48.4)		$ (51.8)

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Segment Information (Narrative) (Details) $ in Millions	3 Months Ended
	Dec. 31, 2017	Mar. 31, 2017 USD ($)
Segment Reporting Information [Line Items]
Product Warranty Expense		$ 9.8
Number of Reportable Segments	2

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Segment Information (Schedule Of Selected Supplemental Balance Sheet Information) (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Sep. 30, 2017
Segment Reporting Information [Line Items]
Net sales, excluding intercompany	$ 233.2	$ 199.7	$ 411.5	$ 366.9
2013	0.0	0.0	0.0	1.1
Operating income	29.9	11.3	50.6	25.5
Depreciation and amortization	10.9	10.6	21.5	20.9
Restructuring	1.9	2.5	5.8	3.8
Payments to Acquire Productive Assets	8.0	9.9	14.4	14.1
Total assets	1,234.3		1,234.3		$ 1,258.3
Intangible intangible assets, net	429.1		429.1		$ 439.3
Mueller Co. [Member]
Segment Reporting Information [Line Items]
Net sales, excluding intercompany	211.1	181.6	371.2	327.9
2013	0.0	0.0	0.0	1.1
Operating income	44.9	34.4	73.0	60.6
Depreciation and amortization	9.4	9.1	18.5	18.1
Restructuring	0.1	1.6	0.1	1.7
Payments to Acquire Productive Assets	6.3	4.7	11.1	7.7
Mueller Technologies [Member]
Segment Reporting Information [Line Items]
Net sales, excluding intercompany	22.1	18.1	40.3	39.0
2013	0.0	0.0	0.0	0.0
Operating income	(3.9)	(13.7)	(8.6)	(15.9)
Depreciation and amortization	1.5	1.4	2.9	2.6
Restructuring	0.0	0.1	0.1	0.1
Payments to Acquire Productive Assets	1.5	5.2	3.0	6.3
Corporate [Member]
Segment Reporting Information [Line Items]
Operating income	(11.1)	(9.4)	(13.8)	(19.2)
Depreciation and amortization	0.0	0.1	0.1	0.2
Restructuring	1.8	0.8	5.6	2.0
Payments to Acquire Productive Assets	$ 0.2	$ 0.0	$ 0.3	$ 0.1

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Commitments and Contingencies (Details) $ in Millions, $ in Millions	3 Months Ended	6 Months Ended
	Mar. 31, 2017 USD ($)	Mar. 31, 2018 CAD ($)	Mar. 31, 2018 USD ($)	Dec. 31, 2014 USD ($)
Loss Contingency, Damages Sought, Value		$ 10.0
Operating Leases
Product Warranty Expense	$ 9.8
Prior To 1995 [member]
Walter Energy tax assessment				$ 33.0
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

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Subsequent Events (Details) - $ / shares				3 Months Ended		6 Months Ended
	May 21, 2018	May 10, 2018	Apr. 17, 2018	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Subsequent Event [Line Items]
Dividends declared, in dollars per share				$ 0.05	$ 0.04	$ 0.09	$ 0.07
Subsequent Event [Member]
Subsequent Event [Line Items]
Dividends Payable, Date Declared			Apr. 17, 2018
Dividends declared, in dollars per share			$ 0.0500
Dividends Payable, Date to be Paid	May 21, 2018
Dividends Payable, Date of Record		May 10, 2018

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Label	Element	Value
Common Stock [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	$ 1,600,000
Additional Paid-in Capital [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	1,494,200,000
Noncontrolling Interest [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	1,100,000
AOCI Attributable to Parent [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	(51,800,000)
Retained Earnings [Member]
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest	us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest	$ (955,600,000)