XML 32 R14.htm IDEA: XBRL DOCUMENT v2.4.0.6
Stock Compensation
 3 Months Ended
Jan. 01, 2012
Stock Compensation [Abstract]  
Stock Compensation

(10) Stock Compensation

The Company recognized consolidated stock compensation expense as follows:

 

                 
    Three Months Ended  
    January 1, 2012     January 2, 2011  

Stock compensation expense

   $ 4,450     $ 5,643  

Related tax benefit

     1,535       1,965  

Noncontrolling interest

     1,319       1,660  
   

 

 

    

 

 

  

Net

   $ 1,596     $ 2,018  
   

 

 

    

 

 

  

The amounts before taxes and non-controlling interest are included in “Selling, general and administrative expenses” in the accompanying Condensed Consolidated Statements of Operations.

HGI

HGI granted approximately 75 stock option awards during the three month period ended January 1, 2012. All of these grants are time based, and vest over a period of 3 years. The total market value of the grants on the respective dates of the particular grants was approximately $119.

HGI granted approximately 68 restricted share awards during the three month period ended January 1, 2012. All of these grants are time based, and vest over a period of between 7 months and 2 years. The total market value of the grants on the respective dates of the particular grants was approximately $317.

HGI granted approximately 22 restricted share unit awards during the three month period ended January 1, 2012. All of these grants are time based, and vest over a period of between 7 months and 1 year. The total market value of the grants on the respective dates of the particular grants was approximately $100.

The fair value of restricted share and restricted share unit awards is determined based on the market price of HGI’s shares of common stock on the grant date. The fair value of stock options awards is determined using the Black Scholes option pricing model. The following assumptions were used in the determination of these grant date fair values using the Black-Scholes option pricing model

 

         
    2012  

Risk-free interest rate

     1.19 % 

Assumed dividend yield

     —    

Expected option term

     6 years  

Volatility

     33.0 % 

A summary of HGI’s outstanding stock-based awards as of January 1, 2012, and changes during the period, are as follows:

 

                 

Stock Option Awards

   Options     Weighted
Average
Exercise Price		  

HGI stock options outstanding at September 30, 2011

     143     $ 6.77  

Granted

     75       4.68  

Exercised

     —         —    

Forfeited or expired

     —         —    
   

 

 

          

HGI stock options outstanding at January 1, 2012

     218       6.05  
   

 

 

          

Exercisable at January 1, 2012

     95       6.68  
   

 

 

          

Vested or expected to vest at January 1, 2012

     218     $ 6.05  
   

 

 

          

 

 

      00,00       00,00  

Restricted Stock Awards

   Shares     Weighted
Average
Grant Date
Fair Value		  

HGI restricted shares outstanding at September 30, 2011

     —       $ —    

Granted

     68       4.64  

Exercised

     —         —    

Forfeited or expired

     —         —    
   

 

 

          

HGI restricted stock outstanding at January 1, 2012

      68       4.64  
   

 

 

          

Vested or expected to vest at January 1, 2012

     68     $   4.64  
   

 

 

          

 

      00,00       00,00  

Restricted Stock Units

   Units     Weighted
Average
Grant Date
Fair Value		  

HGI restricted share units outstanding at September 30, 2011

     —       $ —    

Granted

     22       4.61  

Exercised

     —         —    

Forfeited or expired

     —         —    
   

 

 

          

HGI restricted share units outstanding at January 1, 2012

     22       4.61  
   

 

 

          

Exercisable at January 1, 2012

             —    

Vested or expected to vest at January 1, 2012

     22     $ 4.61  
   

 

 

          

Spectrum Brands

Spectrum Brands granted approximately 704 restricted stock units during the three month period ended January 1, 2012. Of these grants, 17 restricted stock units are time-based and vest over a one year period. The remaining 687 restricted stock units are performance and time-based and vest over a two year period. The total market value of the restricted stock units on the dates of the grants was approximately $18,920.

The fair value of restricted stock awards and restricted stock units is determined based on the market price of Spectrum Brands’ shares of common stock on the grant date.

A summary of the Spectrum Brands’ non-vested restricted stock awards and restricted stock units as of January 1, 2012, and changes during the period, is as follows:

 

                         

Restricted Stock Awards

   Shares     Weighted
Average Grant
Date Fair Value		     Fair Value at
Grant Date		  

Restricted Spectrum Brands stock awards at September 30, 2011

       123     $   24.20     $ 2,977  

Vested

     (97 )      23.19       (2,249 ) 
   

 

 

            

 

 

  

Restricted Spectrum Brands stock awards at January 1, 2012

     26     $  28.00     $ 728  
   

 

 

            

 

 

  

 

                         

Restricted Stock Units

   Units     Weighted
Average Grant
Date Fair Value		     Fair Value at
Grant Date		  

Restricted Spectrum Brands stock units at September 30, 2011

     1,645     $ 28.97     $ 47,656  

Granted

     704       26.88       18,920  

Forfeited

     (4 )      28.25       (113 ) 

Vested

     (388 )      28.79       (11,169 ) 
   

 

 

            

 

 

  

Restricted Spectrum Brands stock units at January 1, 2012

     1,957     $ 28.25     $ 55,294  
   

 

 

            

 

 

  

 

FGL

On November 2, 2011, FGL’s compensation committee (on behalf of its board of directors) approved a long-term stock based incentive plan that permits the grant of options to purchase shares of FGL common stock to key employees of FGL. On November 2, 2011, FGL’s compensation committee also approved a dividend equivalent plan that permits holders of these options the right to receive a payment in cash in an amount equal to the ordinary dividends declared and paid or debt service payments to HGI by FGL in each calendar year starting in the year in which the dividend equivalent is granted through the year immediately prior to the year in which the dividend equivalent vests with respect to a participant’s option shares.

On January 6, 2012, FGL granted 205 option awards under the terms of the plan. Such date was deemed to be the effective accounting grant date, as it was determined to be the date on which a mutual understanding of the key terms and conditions of the awards to eligible employees was presumed to exist. Accordingly, no compensation expense was recorded for the quarter ended January 1, 2012. The strike price of the options of $38.14 was equal to the estimated fair value of FGL’s common stock on the date of grant based on an independent third party valuation. The total fair value of the grants on the grant date was approximately $7,820. These options vest over a period of 3 years and expire on the seventh anniversary of the grant.