XML 27 R16.htm IDEA: XBRL DOCUMENT v3.7.0.1
Stock-based Compensation Plans
 9 Months Ended
Jun. 30, 2017
Share-based Compensation [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
Note 9. Stock-based Compensation Plans
We have granted 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 (“2006 Stock Plan”). We have also granted cash-settled Phantom Plan instruments under the Mueller Water Products, Inc. Phantom Plan (“Phantom Plan”).
A PRSU award represents a target number of units that may be paid out at the end of a multi-year award cycle consisting of a series of annual performance periods coinciding with our fiscal years. After we determine the financial performance targets related to PRSUs for a given performance period, typically during the first quarter of that fiscal year, that portion of a PRSU award becomes granted. Thus, each award consists of a grant in the year of award and grants in the designated following years. Settlement will range from zero to two times the number of PRSUs granted, depending on our financial performance against the targets. As determined at the date of award, PRSUs may settle in cash-value equivalent of, or directly in, shares of our common stock.
The stock-settled PRSUs awarded in 2014 settled in the quarter ended December 31, 2016 with an issuance of 263,410 shares of our common stock. This settlement reflected payouts of 1.021 times target for the 2016 performance period, zero times target for the 2015 performance period and two times target for the 2014 performance period.
The 234,895 stock-settled PRSUs awarded in the nine months ended June 30, 2017 will settle in three years.
During the quarter and nine months ended June 30, 2017, 3,334 and 350,295 restricted stock units vested, respectively.
At June 30, 2017, the outstanding Phantom Plan instruments had a fair value of $11.68 per instrument and our liability for Phantom Plan instruments was $2.2 million.
We granted stock-based compensation 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, 2017 as follows.
 
 
Number granted
 
Weighted average grant date fair value per instrument
 
Total grant date fair value
(in millions)
Quarter ended December 31, 2016:
 
 
 
 
 
 
Restricted stock units
 
177,861

 
$
13.26

 
$
2.4

Employee stock purchase plan instruments
 
39,231

 
2.34

 
0.1

Phantom Plan awards
 
187,115

 
13.26

 
2.5

PRSUs: 2017 award
 
59,285

 
13.26

 
0.8

2016 award
 
73,826

 
13.26

 
1.0

2015 award
 
68,556

 
13.26

 
0.9

Quarter ended March 31, 2017:
 
 
 
 
 
 
Restricted stock units
 
165,999

 
12.82

 
2.1

Employee stock purchase plan instruments
 
38,267

 
2.44

 
0.1

Phantom Plan awards
 
12,145

 
12.66

 
0.2

PRSUs: 2017 award
 
19,012

 
13.15

 
0.2

Quarter ended June 30, 2017:
 
 
 
 
 
 
Employee stock purchase plan instruments
 
36,195

 
2.70

 
0.1

 
 
 
 
 
 
$
10.4


Income from continuing operations included stock-based compensation expense of $0.4 million and $2.0 million during the quarters ended June 30, 2017 and 2016, respectively, and $5.1 million and $5.6 million during the nine months ended June 30, 2017 and 2016, respectively. At June 30, 2017, there was approximately $8.7 million of unrecognized compensation expense related to stock-based compensation arrangements, and 219,866 PRSUs that have been awarded for the 2018 and 2019 performance periods, for which performance goals have not been set.
We excluded 165,186 and 257,811 of stock-based compensation instruments from the calculations of diluted earnings per share for the quarters ended June 30, 2017 and 2016, respectively, and 208,868 and 925,296 for the nine months ended June 30, 2017 and 2016, respectively, since their inclusion would have been antidilutive.