Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 468

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 7
Chunk 468
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 by the Company as of September 30, 2025.

Note 10.    Stock-based Compensation Plans 

Stock-based compensation expense was $15.1 million, $14.1 million and $11.1 million in the years 2025, 2024 and 2023, respectively, and is recorded within Selling, general and administrative costs within our consolidated statements of operations.  The total income tax benefit recognized for stock-based compensation expense was $3.6 million, $4.0 million and $2.3 million in the years 2025, 2024 and 2023, respectively.We excluded 368,384, 270,547 and 779,150 stock-based instruments from the calculation of diluted earnings per share for 2025, 2024 and 2023, respectively, because the effect of including them would have been antidilutive. As of September 30, 2025, there was approximately $11.0 million of unrecognized compensation expense related to stock-based awards not yet vested.  We expect to recognize this expense over a weighted average life of approximately 1.4 years.  The Mueller Water Products, Inc. 2006 Stock Incentive Plan (“2006 Plan”) authorizes an aggregate of 23,800,000 shares of common stock that may be granted through the issuance of stock-based awards.  Any awards canceled are available for reissuance.  Generally, all of our employees and members of our Board of Directors are eligible to participate in the 2006 Plan.  As of September 30, 2025, 6,740,076 shares of common stock were available for future grants of awards under the 2006 Plan.  This total assumes that the maximum number of shares will be earned for awards for which the final number of shares to be earned has not yet been determined.An award granted under the 2006 Plan vests at such times and in such installments as set by the Compensation and Human Resources Committee of our Board of Directors (“Compensation Committee”), but no award will be exercisable after the 10-year anniversary of the date on which it is granted.  Management expects some instruments will be forfeited prior to vesting.  Grants to members of our Board of Directors are expected to vest fully.  Based on historical forfeitures, we expect certain grants to employees to be forfeited at an annual rate of 2%.

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Table of ContentsIndex to Financial Statements

 Restricted Stock Units.