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Stock-based Compensation Plans
 9 Months Ended
Jun. 30, 2014
Share-based Compensation [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
ote 6.
Stock-based Compensation Plans
From time to time, we grant various forms of stock-based compensation, including stock options, restricted stock units, and both cash-settled and stock-settled performance-based restricted stock units ("PRSUs") under our Amended and Restated 2006 Mueller Water Products, Inc. Stock Incentive Plan (the “2006 Stock Plan”).
PRSUs represent a target number of units that may be paid out at the end of a multi-year award cycle consisting of annual performance periods coinciding with our fiscal years. As determined at the date of grant, PRSUs may settle in cash-value equivalent of, or directly in, shares of our common stock. Settlement will range from zero to two times the number of PRSUs granted, depending on our financial performance against predetermined targets.
The cash-settled PRSUs granted in the quarter ended December 31, 2012 will settle in the quarter ending December 31, 2014. Outstanding cash-settled PRSUs had a fair value of $8.64 per share at June 30, 2014 and our liability for cash-settled PRSUs was $2.9 million at June 30, 2014.
The stock-settled PRSUs granted in the quarters ended December 31, 2012 and 2013 will settle in the quarters ending December 31, 2015 and 2016, respectively. The stock prices used to value the awards were $5.22 for the 2013 performance period and $8.52 for the 2014 performance period.
From time to time, we grant Phantom Plan awards under the Mueller Water Products, Inc. Phantom Plan (“Phantom Plan”). At June 30, 2014, the outstanding Phantom Plan awards had a fair value of $8.64 per award and our liability for Phantom Plan awards was $2.8 million.
We granted stock-based compensation awards under the 2006 Stock Plan, the Mueller Water Products, Inc. 2006 Employee Stock Purchase Plan and the Phantom Plan during the nine months ended June 30, 2014 as follows.    
 
Number granted
 
Weighted average grant date fair value per instrument
 
Total grant date fair value (in millions)
Quarter ended December 31, 2013:
 
 
 
 
 
Restricted stock units
333,816

 
$
8.50

 
$
2.8

Employee stock purchase plan instruments
56,643

 
1.87

 
0.1

Phantom Plan awards
304,815

 
8.52

 
2.6

PRSUs
272,531

 
8.52

 
2.3

Quarter ended March 31, 2014:
 
 
 
 
 
Restricted stock units
47,196

 
8.58

 
0.4

Non-qualified stock options
86,904

 
5.13

 
0.4

Employee stock purchase plan instruments
52,980

 
1.80

 
0.1

Quarter ended June 30, 2014:
 
 
 
 
 
Employee stock purchase plan instruments
46,067

 
2.10

 
0.1

 
 
 
 
 
$
8.8


We recorded stock-based compensation expense in continuing operations of $2.1 million and $2.9 million during the three months ended June 30, 2014 and 2013, respectively, and $8.2 million and $8.5 million during the nine months ended June 30, 2014 and 2013, respectively. At June 30, 2014, there was approximately $5.3 million of unrecognized compensation expense related to stock-based awards.
We exclude stock-based compensation instruments from the calculations of diluted earnings per share when inclusion of such instruments would have an antidilutive effect. We excluded 1,117,275 and 1,499,916 of such instruments from the calculations of diluted earnings per share for the quarters ended June 30, 2014 and 2013, respectively, and 1,103,986 and 1,456,579 of such instruments for the nine months ended June 30, 2014 and 2013, respectively.