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Stock Compensation | 12 Months Ended
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Sep. 30, 2011
Stock Compensation [Abstract] |
Stock Compensation |
(16) | Stock Compensation
The Company recognized consolidated stock compensation expense as follows:
|  | Successor |  |  |  | Predecessor |
|  |  |  |  |  |  |  | Period from |  |  |  | Period from |
|  |  |  |  |  |  |  | August 31, 2009 |  |  |  | October 1, 2008 |
|  | Year Ended |  |  | Year Ended |  |  | through |  |  |  | through |
|  | September 30, |  |  | September 30, |  |  | September 30, |  |  |  | August 30, |
|  | 2011 |  |  | 2010 |  |  | 2009 |  |  |  | 2009 |
Stock compensation expense |  | $ | 30,505 |  |  | $ | 16,710 |  |  | $ | — |  |  |  | $ | 2,636 |
Related tax benefit |  |  | 10,636 |  |  |  | 5,837 |  |  |  | — |  |  |  |  | 994 |
Noncontrolling interest |  |  | 9,057 |  |  |  | 4,932 |  |  |  | — |  |  |  |  | — |
Net |  | $ | 10,812 |  |  | $ | 5,941 |  |  | $ | — |  |  |  | $ | 1,642 |
The amounts before taxes and non-controlling interest are included in “Selling, general and administrative expenses” in the accompanying Consolidated Statements of Operations. HGI On December 5, 1996, HGI’s stockholders approved a long-term incentive plan (the “1996 HGI Plan”) that permitted the grant of options to purchase up to 8,000 shares of common stock to key employees of the Company. These awards were granted at prices equivalent to the market value of the common stock on the date of grant. These options vest ratably over three years beginning on the first anniversary and expired on the tenth anniversary of the grant. At September 30, 2011, stock options covering a total of 1,797 shares had been exercised and 135 options to purchase common stock are outstanding, with a weighted average exercise price of $6.97. In March 2002, the Company issued specific stock option grants of 48 options to each of the non-employee directors of the Company. These grants were non-qualified options that vested ratably over three years beginning on the first anniversary and expire on the tenth anniversary of the grant. At September 30, 2011, there were 8 options to purchase common stock outstanding with an exercise price of $3.33. On September 15, 2011, the Company’s stockholders approved the 2011 Omnibus Award Plan (the “2011 HGI Plan”). The 2011 HGI Plan provides for the issuance of stock options or stock appreciation rights (“SARs”) for up to 17,000 shares of common stock. The 2011 HGI Plan prohibits granting stock options with exercise prices and SARs with grant prices lower than the fair market value of the common stock on the date of grant, except in connection with the issuance or assumption of awards in connection with certain mergers, consolidations, acquisitions of property or stock or reorganizations. Under the 2011 HGI Plan, no new awards will be granted under the 1996 HGI Plan and any shares of common stock available for issuance under the 1996 HGI Plan that are not subject to outstanding awards will no longer be available for issuance. As of September 30, 2011, 17,000 shares are available for issuance under this plan. HGI recognized $116 and $34 of stock compensation expense during Fiscal 2011 and the period from June 16, 2010 through September 30, 2010, respectively. A summary of the Company’s stock options outstanding as of September 30, 2010 and 2011, and related activity during Fiscal 2011, is as follows:
|  |  |  |  | Weighted |  |  | Weighted Average |  |  |
|  | Units/ |  |  | Average |  |  | Remaining |  | Aggregate |
|  | Shares |  |  | Exercise Price |  |  | Contractual Term |  | Intrinsic Value |
|  |  |  |  |  |  |  |  |  | (In thousands) |
Outstanding at September 30, 2010 |  |  | 509 |  |  | $ | 5.62 |  |  |  |  |  |  |
Granted |  |  | — |  |  | $ | — |  |  |  |  |  |  |
Exercised |  |  | (150 | ) |  | $ | 2.78 |  |  |  |  |  |  |
Forfeitured |  |  | (216 | ) |  | $ | 6.83 |  |  |  |  |  |  |
Outstanding at September 30, 2011 |  |  | 143 |  |  | $ | 6.77 |  |  | 7.8 years |  | $ | 14 |
Exercisable at September 30, 2011 |  |  | 53 |  |  | $ | 6,42 |  |  | 7.1 years |  | $ | 14 |
Vested or expected to vest at September 30, 2011 |  |  | 143 |  |  | $ | 6.77 |  |  | 7.8 years |  | $ | 14 |
During Fiscal 2010, prior to the June 16, 2010 inclusion of HGI’s results herein, stock options for 10,000 and 125,000 shares were granted by HGI with grant date fair values of $2.35 and $2.63 per share, respectively. The following assumptions were used in Fiscal 2010 in the determination of these grant date fair values using the Black-Scholes option pricing model:
|  | 2010
Risk-free interest rate |  | 2.6%
Assumed dividend yield |  | —
Expected option term |  | 6 years
Volatility |  | 32.0%
As of September 30, 2011, there was approximately $147 of total unrecognized compensation cost related to unvested share-based compensation arrangements. That cost is expected to be recognized over a weighted average period of 1.2 years. Spectrum Brands On the Effective Date all of the existing common stock of the Predecessor was extinguished and deemed cancelled. Spectrum Brands had no stock options, SARs, restricted stock or other stock-based awards outstanding as of September 30, 2009. In September 2009, SBI’s board of directors adopted the 2009 Spectrum Brands Inc. Incentive Plan (the “2009 Plan”). In conjunction with the SB/RH Merger the 2009 Plan was assumed by Spectrum Brands. Prior to October 21, 2010, up to 3,333 shares of common stock, net of forfeitures and cancellations, could have been issued under the 2009 Plan. In conjunction with the SB/RH Merger, Spectrum Brands adopted the Spectrum Brands Holdings, Inc. 2007 Omnibus Equity Award Plan (formerly known as the Russell Hobbs Inc. 2007 Omnibus Equity Award Plan, as amended on June 24, 2008) (the “2007 RH Plan”). Prior to October 21, 2010, up to 600 shares of common stock, net of forfeitures and cancellations, could have been issued under the RH Plan. On October 21, 2010, Spectrum Brands’ board of directors adopted the Spectrum Brands Holdings, Inc. 2011 Omnibus Equity Award Plan (“2011 Plan”), which was approved by Spectrum Brands’ stockholders on March 1, 2011. Up to 4,626 shares of common stock of Spectrum Brands, net of cancellations, may be issued under the 2011 Plan. Total stock compensation expense associated with restricted stock awards recognized by Spectrum Brands during Fiscal 2011 was $30,389 or $10,696, net of taxes and non-controlling interest. Total stock compensation expense associated with restricted stock awards recognized by Spectrum Brands during Fiscal 2010 was $16,676 or $5,907, net of taxes non-controlling interest. Spectrum Brands recorded no stock compensation expense during the period from August 31, 2009 through September 30, 2009. Total stock compensation expense associated with both stock options and restricted stock awards recognized by the Predecessor during the period from October 1, 2008 through August 30, 2009 was $2,636 or $1,642, net of taxes. Spectrum Brands granted approximately 1,674 shares of restricted stock during Fiscal 2011. Of these grants, 93 restricted stock units are time-based and vest over a period ranging from one year to three years. The remaining 1,581 shares are restricted stock units that are both performance and time based and vest as follows: (i) 699 stock units vest over a one year performance based period followed by a one year time-based period; (ii) 882 stock units vest over a two year performance based period followed by a one year time-based period. The total market value of the restricted shares on the date of the grant was approximately $48,530. Spectrum Brands granted approximately 939 shares of restricted stock during Fiscal 2010. Of these grants, 271 restricted stock units were granted in conjunction with the SB/RH Merger and are time-based and vest over a one year period. The remaining 668 shares are restricted stock grants that are time based and vest as follows: (i) 18 shares vest over a one year period; (ii) 611 shares vest over a two year period; and (iii) 39 shares vest over a three year period. The total market value of the restricted shares on the date of the grant was approximately $23,299. The fair value of restricted stock is determined based on the market price of Spectrum Brands’ shares on the grant date. A summary of Spectrum Brands non-vested restricted stock awards and restricted stock units as of September 30, 2010 and 2011, and related activity during Fiscal 2011, is as follows:
|  |  |  |  | Weighted |  |  |  |
|  | Units/ |  |  | Average Grant |  |  | Fair Value at |
Restricted Stock Awards |  | Shares |  |  | Date Fair Value |  |  | Grant Date |
Restricted Spectrum Brands stock awards at September 30, 2010 |  |  | 446 |  |  | $ | 23.56 |  |  | $ | 10,508 |
Vested |  |  | (323 | ) |  | $ | 23.32 |  |  |  | (7,531 | )
Restricted Spectrum Brands stock awards at September 30, 2011 |  |  | 123 |  |  | $ | 24.20 |  |  | $ | 2,977 |
|  |  |  |  | Weighted |  |  |  |
|  | Units/ |  |  | Average Grant |  |  | Fair Value at |
Restricted Stock Units |  | Shares |  |  | Date Fair Value |  |  | Grant Date |
Restricted Spectrum Brands stock units at September 30, 2010 |  |  | 249 |  |  | $ | 28.22 |  |  | $ | 7,028 |
Granted |  |  | 1,674 |  |  | $ | 29.00 |  |  |  | 48,530 |
Forfeited |  |  | (43 | ) |  | $ | 29.46 |  |  |  | (1,267 | )
Vested |  |  | (235 | ) |  | $ | 28.23 |  |  |  | (6,635 | )
Restricted Spectrum Brands stock units at September 30, 2011 |  |  | 1,645 |  |  | $ | 28.97 |  |  | $ | 47,656 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher AICPA -Name Statement of Position (SOP) -Number 93-6 -Paragraph 53 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Staff Accounting Bulletin (SAB) -Number Topic 14 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 123R -Paragraph 64, 65, A240 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 + Details
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