Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 65

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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, 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 

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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 six months ended March 31, 2025; no shares of common stock were issued to settle PRSUs during the three months ended March 31, 2025.   Additionally, we issued 114,895 and 227,492 shares of common stock to settle restricted stock units vested during the three and six months ended March 31, 2025.  Finally, we issued 151,700 and 246,577 shares of common stock to settle stock options exercised during the three and six months ended March 31, 2025.  Common shares totaling 13,428 and 169,488 were surrendered to us to pay the applicable tax withholding obligations of equity award participants for the three and six months ended March 31, 2025.Operating income included stock-based compensation expense of $3.7 million and $3.0 million during the three months ended March 31, 2025 and 2024, respectively.  Operating income included stock-based compensation of $7.6 million and $6.4 million during the six months ended March 31, 2025 and 2024, respectively.  At March 31, 2025, there was approximately $16.8 million of unrecognized compensation expense related to stock-based compensation arrangements, which will be expensed through March 2028.We excluded 323,349 and 603,417 stock-based compensation instruments from