Company: MWA
Filing Date: 2025-08-05
Form Type: 10-Q
Source: 0001350593-25-000043
Chunk: 65

Company: Mueller Water Products, Inc.
Filing Date: 2025-08-05
Form: 10-Q
Item: Part I, Item 8
Chunk 65
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58 3.4 Non-qualified stock options207,417 7.90 1.6 Employee stock purchase plan instruments24,621 $3.86 0.1 Total - Quarter ended December 31, 2024$11.3 Quarter ended March 31, 2025MRSUs7,692 $41.24 $0.3 PRSUs7,692 25.19 0.2 Restricted stock units84,355 26.60 2.2 Non-qualified stock options21,198 9.14 0.2 Employee stock purchase plan instruments24,802 $4.53 0.1 Total - Quarter ended March 31, 2025$3.0 Quarter ended June 30, 2025Employee stock purchase plan instruments21,752 $5.45 $0.1 Total - Quarter ended June 30, 20250.1 Total - Year to date ended June 30, 2025$14.4 An MRSU award represents a target number of units that may be paid out at the end of a three-year award cycle based on a calculation of our relative total shareholder return (“TSR”) performance as compared with the TSR of a selected peer group.  Settlements in our common shares will range from zero to two times the number of MRSUs granted, depending on our TSR performance relative to that of the peer group.Compensation expense attributed to MRSUs is based on the fair value of the awards on their respective grant dates, as determined using a Monte Carlo model.  For these awards, compensation expense is recognized over the requisite service period regardless of whether the market condition is ultimately met.  The assumptions used to determine the grant date fair value are indicated below for awards granted to date during the current fiscal year:December 3,2024March 3,2025Variables used in determining grant date fair value:Dividend yield1.10%1.10%Risk-free rate4.10%3.90%Expected term (in years)2.802.60

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The expected dividend yield is based on our estimated annual dividend and our stock price history at the grant date.  The risk-free interest rate is based on the U.S. Treasury zero-coupon yield in effect at the grant date with a term equal to the expected term.  The expected term represents the average period of time the units are