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

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 25
---
4.53 0.1 Total - Quarter ended March 31, 20253.0 Total - Year-to-date ended March 31, 2025$14.3 

16

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 even if the awards are not earned or vested.  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)2.802.60The 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 expected to be outstanding.At March 31, 2025, the outstanding Phantom Plan instruments had a fair value of $25.42 per instrument and our accrued liability for Phantom Plan instruments was $4.1 million and is included within Other current liabilities for amounts related to instruments scheduled to vest in twelve months or less and Other noncurrent liabilities for amounts related to instruments scheduled to vest beyond twelve months.Stock options generally vest ratably on each anniversary date of the original grant 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.  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 yield1.64%1.41%