Company: MWA
Filing Date: 2025-05-06
Form Type: 10-Q
Source: 0001350593-25-000029
Chunk: 26

Company: Mueller Water Products, Inc.
Filing Date: 2025-05-06
Form: 10-Q
Item: Part I, Item 1
Chunk 26
---
Risk-free rate4.14%4.02%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 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 options are expected to be outstanding.A PRSU award consists of a target number of units that may be paid out at the end of a three-year award cycle.  Settlements in our common shares will range from zero to two times the number of PRSUs granted, depending on our financial performance against predetermined targets. Restricted stock units generally vest ratably over the life of the award, usually three years, on each anniversary date of the original grant.  Compensation expense for restricted stock units is recognized between the grant date and the vesting date (or the date on which a participant becomes retirement-eligible under the terms of the 2006 Stock Plan, if sooner) on a straight-line basis for each tranche of each award.  Fair values of restricted stock units are determined using the closing price of our common stock on the respective grant date.Employee stock purchase plan instruments are shares of our common stock purchased by employees under the Mueller Water Products Inc. 2006 Employee Stock Purchase Plan (“ESPP”).  Generally, all full-time, active employees are eligible to participate in the ESPP, subject to certain restrictions.  Employee purchases are funded through payroll deductions, and any 

17

excess payroll withholdings are returned to the employee.  The price for the shares purchased under the ESPP is 85% of the lower of the closing price on the first day or the last day of the offering period.We issued 260,727 shares of common stock to settle PRSUs vested during the six months ended March 31, 2025; no shares of common stock were issued to settle PRSUs during the three months ended March 31, 2025.   Additionally, we issued 114,895 and 227,492 shares of common stock to settle restricted stock units vested during the three and six months ended March 31, 2025.  Finally, we issued 151,700 and 246,577 shares of common stock to settle stock options exercised during the three and six months ended March 31, 2025.  Common shares totaling 13,428 and 169