Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 264

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 8
Chunk 264
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30,804)106,179 —— December 3, 202420282025-202725.58 64,044 (1,308)62,736 —— March 3, 202520282025-2027$25.19 7,692 — 7,692 ——Market-Based Awards.  Our market-based awards consist of market-based restricted stock units (“MRSUs”).  MRSUs represent a target number of units that may be paid out at the end of a three-fiscal 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 ranking within the peer group.  The fair values of MRSUs are fixed at the date of grant and the related expense is recognized ratably over the vesting period, which is roughly three years from the date of grant.  The table below provides information regarding MRSU awards for grants issued during our 2025 fiscal year, which were valued using Monte Carlo simulations on the grant date:March 3, 2025December 3, 2024Fair value at grant date$41.24$38.25Units granted7,69264,044Variables used in determining grant date fair value:Dividend yield1.1 %1.1 %Expected volatility31.0 %29.8 %Risk-free rate3.9 %4.1 %Expected term (in years)2.602.80The expected volatility was based on historical volatility data for the Company and peer group companies considering the expected term. The expected term represents the remaining term from the grant date to the end of the performance period. The risk-free interest rate was based on the U.S. Treasury yield curve considering the expected term. The dividend yield assumption considers the Company’s estimated dividend yield as of the grant date and dividends were treated as re-invested in the Monte Carlo simulation analysis for purposes of measuring TSR performance.Stock Options.  Stock options generally vest on each anniversary date of the original grant ratably over three years.  Compensation expense attributed to stock options is based on the fair value of the awards on their respective grant dates, as determined using a Black-Scholes model. 

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Table of ContentsIndex to Financial Statements

 The assumptions used