Company: MWA
Filing Date: 2025-11-19
Form Type: 10-K
Source: 0001350593-25-000066
Chunk: 125

Company: Mueller Water Products, Inc.
Filing Date: 2025-11-19
Form: 10-K
Item: Item 15
Chunk 125
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F- 30

Table of ContentsIndex to Financial Statements

 The assumptions used to determine the grant date fair value are indicated below for grants issued during our 2025 fiscal year:  March 3, 2025December 3, 2024Variables used in determining grant date fair value:Dividend yield1.4 %1.6 %Expected volatility36.3 %29.9 %Risk-free rate4.0 %4.1 %Expected term (in years)6.006.00The 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 United States Treasury zero-coupon yield in effect at the grant date with a term equal to the expected term.  The expected volatility was based on historical volatility data for the Company considering the expected term. The expected term represents the average period of time the options are expected to be outstanding.  Stock option activity under the 2006 Plan is summarized below:OptionsWeightedaverageexercisepriceper optionWeightedaverageremainingcontractualterm (years)Aggregateintrinsicvalue(millions)  Outstanding as of September 30, 20221,013,293 $12.19 7.7$0.3 Granted573,279 11.41 Exercised(131,989)9.59 0.4 Cancelled(327,115)12.16 Outstanding as of September 30, 20231,127,468 12.10 7.8$1.0 Granted457,356 13.22 Exercised(517,839)12.05 5.0 Cancelled(135,215)12.69 Outstanding as of September 30, 2024931,770 12.60 7.9$8.5 Granted228,615 25.54 Exercised(246,577)12.33 3.3 Cancelled(5,604)19.45 Outstanding as of September 30, 2025908,204 $15.89 7.8$8.8 Exercisable as of September 30, 2025374,295 $12.60 6.8$4.8 Stock option exercise prices are equal to the closing price of our common stock on the relevant grant date.  The