Company: MWA
Filing Date: 2025-02-05
Form Type: 10-Q
Source: 0001350593-25-000012
Chunk: 94

Company: Mueller Water Products, Inc.
Filing Date: 2025-02-05
Form: 10-Q
Item: Part II, Item 8
Chunk 94
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 of PRSUs granted, depending on our financial performance against predetermined targets. Restricted stock units generally vest ratably over the life of the award, usually three years, on each anniversary date of the original grant.  Compensation expense for restricted stock units is recognized between the grant date and the vesting date (or the date on which a participant becomes retirement-eligible under the terms of the 2006 Stock Plan, if sooner) on a straight-line basis for each tranche of each award.  Fair values of restricted stock units are determined using the closing price of our common stock on the respective grant date.Employee stock purchase plan instruments are shares of our common stock purchased by employees under the Mueller Water Products Inc. 2006 Employee Stock Purchase Plan (“ESPP”).  Generally, all full-time, active employees are eligible to participate in the ESPP, subject to certain restrictions.  Employee purchases are funded through payroll deductions, and any excess payroll withholdings are returned to the employee.  The price for the shares purchased under the ESPP is 85% of the lower of the closing price on the first day or the last day of the offering period.We issued 260,727 shares of common stock to settle PRSUs vested during the three months ended December 31, 2024.  Additionally, we issued 112,597 shares of common stock to settle restricted stock units vested during the three months ended 

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December 31, 2024.  Finally, we issued 94,877 shares of common stock to settle stock options exercised during the three months ended December 31, 2024.  Common shares totaling 156,060 were surrendered to us to pay the applicable tax withholding obligations of equity award participants for the three months ended December 31, 2024.Operating income included stock-based compensation expense of $3.9 million and $3.4 million during the three months ended December 31, 2024 and 2023, respectively.  At December 31, 2024, there was approximately $16.9 million of unrecognized compensation expense related to stock-based compensation arrangements, which will be expensed through December 2027.We excluded 133,543 and 712,164 stock-based compensation instruments from the calculations of diluted earnings per share in the three months ended December 31, 2024 and 2023, respectively, since their inclusion would have been antidilutive.

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Note 7.  Supplemental Balance Sheet Information 

Selected supplemental asset information is presented below