Company: AOS
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0000091142-25-000150
Chunk: 18

Company: SMITH A O CORP
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 8
Chunk 18
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 as follows for the nine months ended September 30, 2025:Number of UnitsWeighted-AverageGrant Date ValueIssued and unvested at January 1, 2025469,269 $71.50 Granted245,168 65.82 Vested(85,872)73.72 Forfeited(11,861)70.82 Issued and unvested at September 30, 2025616,704 68.75 

11

Table of Contents8. Share Based Compensation (continued)

Performance Stock UnitsBeginning in 2023, certain executives may be awarded performance stock units under the Incentive Plan. Performance stock units vest over three years following the grant date. Performance stock units vest under a set of measurement criteria that are based upon achievement of certain Sustainability targets. Potential payouts range from zero to 150% of the target awards and changes from target amounts are reflected as performance adjustments. The Company granted 38,150 and 29,475 performance stock units under the Incentive Plan in the nine months ended September 30, 2025 and 2024, respectively. The performance stock units were valued at $2.5 million and $2.4 million at the date of issuance in 2025 and 2024, respectively, based on the price of the Company’s Common Stock at the date of grant. The performance stock units are recognized as compensation expense ratably over the three-year vesting period. Share based compensation expense attributable to performance stock units of $0.7 million and $0.4 million was recognized in the three months ended September 30, 2025 and 2024, respectively. Share based compensation expense attributable to performance stock units of $1.9 million and $1.3 million was recognized in the nine months ended September 30, 2025 and 2024, respectively. Certain non-U.S.-based executives receive the cash value of the share price at the vesting date in lieu of shares. Unvested cash-settled awards are remeasured at each reporting period.A summary of performance stock unit activity under the Incentive Plan is as follows for the nine months ended September 30, 2025:Number of UnitsWeighted-AverageGrant Date ValueIssued and unvested at January 1, 202574,398 $75.40 Granted38,150 65.64 Forfeited(1,600)71.23 Iss