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Stock-based Compensation Plans (Tables)

12 Months Ended

Sep. 30, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Effect on Statement of Operations

	2014				2013				2012
	(in millions, except per share data)
Decrease in operating income	$	13.2			$	11.4			$	6.0
Decrease in net income or increase in net loss	8.1				6.9				3.5
Effect on earnings or loss per basic share	0.05				0.04				0.02
Effect on earnings or loss per diluted share	0.05				0.04				0.02

Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity

Restricted Stock Units. Depending on the specific terms of each award, restricted stock units generally vest on the three-year anniversary of the grant date, or ratably over the life of the award, usually three years, on each anniversary date of the original grant. Restricted stock units granted since November 2007 also vest upon the Retirement (as defined in the 2006 Plan) of a participant. 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, 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 dates of grant.

Restricted stock unit activity under the 2006 Plan is summarized below.

	Restricted stock units			Weighted average grant date fair value per unit				Weighted average remaining contractual term (years)		Aggregate intrinsic value   (millions)
Outstanding at September 30, 2011	2,065,766			$	6.11			1.6
Granted	1,406,318			2.19
Vested	(867,451	)		5.44						$	2.2
Cancelled	(180,871	)		5.33
Outstanding at September 30, 2012	2,423,762			4.13				1.0
Granted	509,338			5.37
Vested	(995,037	)		4.77						5.6
Cancelled	(12,723	)		12.28
Outstanding at September 30, 2013	1,925,340			4.30				0.9
Granted	381,012			8.51
Vested	(1,099,591	)		4.94						9.4
Cancelled	—			—
Outstanding at September 30, 2014	1,206,761			$	5.04			0.7

Schedule of Share-based Compensation. Options

Stock Options. Outstanding stock options generally vest on each anniversary date of the original grant ratably over three years. Stock options granted since November 2007 also vest upon the Retirement of a participant. Compensation expense for stock options is recognized between the grant date and the vesting date (or the date on which a participant becomes Retirement-eligible, if sooner) on a straight-line basis for each tranche of each award. Stock option activity under the 2006 Plan is summarized below.

	Options			Weighted average exercise price   per option				Weighted average remaining contractual term (years)		Aggregate intrinsic value   (millions)
Outstanding at September 30, 2011	5,625,133			$	6.74			7.5		$	—
Granted	677,117			2.18
Exercised	(8,552	)		3.59						—
Cancelled	(771,088	)		5.97
Outstanding at September 30, 2012	5,522,610			6.30				6.8		3.5
Granted	125,780			5.91
Exercised	(384,475	)		4.97						1.2
Cancelled	(139,209	)		12.52
Outstanding at September 30, 2013	5,124,706			6.22				5.9		14.6
Granted	86,904			8.58
Exercised	(587,964	)		4.61						—
Cancelled	(71,411	)		12.92
Outstanding at September 30, 2014	4,552,235			$	6.37			5.0		$	13.6
Exercisable at September 30, 2014	4,151,589			$	6.56			4.8		$	12.0
Expected to vest after September 30, 2014	400,136			$	4.32			7.9		$	1.6

Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block]

Stock option exercise prices are equal to the closing price of our common stock on the relevant grant date. The ranges of exercise prices for stock options outstanding at September 30, 2014 are summarized below.

Exercise price										Options			Weighted average exercise price				Weighted average remaining contractual term (years)		Exercisable options			Weighted average exercise price
	$	0.00		-	$	4.99				1,803,311			$	3.23			6.4		1,565,034			$	3.37
	$	5.00		-	$	9.99				1,801,805			5.85				5.0		1,639,436			5.70
	$	10.00		-	$	14.99				656,276			11.84				2.7		656,276			11.84
	$	15.00		-	$	20.99				290,843			16.71				1.8		290,843			16.71
										4,552,235			$	6.37			5.0		4,151,589			$	6.56

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions

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 weighted average grant-date fair values of stock options granted and the weighted average assumptions used to determine these fair values are indicated below.

	2014				2013				2012
Grant-date fair value	$	5.13			$	5.91			$	1.31
Risk-free interest rate	2.44		%		1.63		%		1.74		%
Dividend yield	1.10		%		2.17		%		1.97		%
Expected life (years)	8.0				8.0				8.0
Expected annual volatility	0.6386				0.6696				0.7342

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 life. The expected dividend yield is based on our estimated annual dividend and stock price history at the grant date. The expected term represents the period of time the awards are expected to be outstanding.

Schedule of Share-based Compensation, Phantom Award, Activity

Phantom Plan. In 2012, the Company adopted the Mueller Water Products, Inc. Phantom Plan (“Phantom Plan”). The Phantom Plan awards were awarded to certain non-officer employees. Outstanding phantom awards vest ratably on each anniversary date of the original grant for three years. Compensation expense for Phantom Plan awards is charged against income on a straight-line basis for each tranche of each award based on the closing price of our common stock at each balance sheet date. Phantom Plan awards are payable in cash and recorded as liability awards. The outstanding Phantom Plan awards had a fair value of $8.28 per award at September 30, 2014 and our liability for such awards was $3.4 million. Phantom Plan activity for 2014 is summarized below.

	Phantom Plan units			Weighted average grant date fair value   per unit				Weighted average remaining contractual term (years)		Aggregate intrinsic value   (millions)
Outstanding at September 30, 2011	—
Granted	358,866			$	2.03
Vested	—									$	—
Cancelled	—			—
Outstanding at September 30, 2012	358,866			2.03				1.2
Granted	382,605			5.22
Vested	(119,637	)								0.7
Cancelled	(12,852	)		2.03
Outstanding at September 30, 2013	608,982			4.03				1.0
Granted	304,815			8.52
Vested	(240,739	)								2.1
Cancelled	(29,770	)		5.29
Outstanding at September 30, 2014	643,288			$	6.22			0.8

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