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Earnings Per Share
 3 Months Ended
Jan. 01, 2012
Earnings Per Share [Abstract]  
Earnings Per Share

(12) Earnings Per Share

The Company follows the provisions of ASC Topic 260, Earnings Per Share, which requires companies with complex capital structures, such as having two (or more) classes of securities that participate in declared dividends to calculate earnings (loss) per share (“EPS”) utilizing the two-class method. As the holders of the Preferred Stock are entitled to receive dividends with common shares on an as-converted basis, the Preferred Stock has the right to participate in undistributed earnings and must therefore be considered under the two-class method.

 

The following table sets forth the computation of basic and diluted EPS:

 

                 
    Three Month Period Ended  
    January 1, 2012     January 2, 2011  

Net income (loss) attributable to common and participating preferred stockholders

   $ 23,759     $ (20,070 ) 
   

 

 

    

 

 

  
     

Participating shares at end of period:

                

Common shares outstanding

     139,346       139,202  

Preferred shares (as-converted basis)

     61,294       —    
   

 

 

    

 

 

  

Total

     200,640       139,202  
   

 

 

    

 

 

  
     

Percentage of income (loss) allocated to:

                

Common shares

     69.5 %      100.0 % 

Preferred shares

     30.5 %      —    
     

Net income (loss) attributable to common shares - basic

   $ 16,501     $ (20,070 ) 
   

 

 

    

 

 

  
     

Dilutive adjustments to income (loss) attributable to common shares from assumed conversion of preferred shares, net of tax:

                

Income allocated to preferred shares in basic calculation

     7,258       —    

Reversal of preferred stock dividends and accretion

     15,704       —    

Reversal of income related to fair value of preferred stock conversion feature

     (27,920 )      —    
   

 

 

    

 

 

  

Net adjustment

     (4,958 )      —    
   

 

 

    

 

 

  
     

Net income (loss) attributable to common shares - diluted

   $ 11,543     $ (20,070 ) 
   

 

 

    

 

 

  
     

Weighted-average common shares outstanding - basic

     139,346       139,198  

Dilutive effect of preferred stock

     61,294       —    

Dilutive effect of unvested restricted stock and restricted stock units

     6       —    

Dilutive effect of stock options

     2       —    
   

 

 

    

 

 

  

Weighted-average shares outstanding - diluted

     200,648       139,198  
   

 

 

    

 

 

  
     

Net income (loss) per common share attributable to controlling interest:

                

Basic

   $ 0.12     $ (0.14 ) 
   

 

 

    

 

 

  

Diluted

   $ 0.06     $ (0.14 ) 
   

 

 

    

 

 

  

The number of common shares outstanding used in calculating the weighted average thereof reflects: (i) for the three month period ended January 2, 2011, the number of HGI common shares outstanding plus the 119,910 HGI common shares subsequently issued in connection with the Spectrum Brands Acquisition and (ii) for the three month period ended January 1, 2012, the actual number of HGI common shares outstanding, excluding nonvested restricted shares.

At January 1, 2012, there were 210 potential common shares issuable upon the exercise of stock options, excluded from the calculation of “Diluted income (loss) per common share attributable to controlling interest” because the exercise prices of the stock options were greater than the average market price of the Company’s common stock during the three month period ended January 1, 2012. The stock options had a weighted average exercise price of $6.15 per share.