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Stock Compensation
 6 Months Ended
Apr. 01, 2012
Stock Compensation [Abstract]  
Stock Compensation

(10) Stock Compensation

The Company recognized consolidated stock compensation expense for the three and six month periods ended April 1, 2012 and April 3, 2011 as follows:

 

                                 
    Three Months     Six Months  
    2012     2011     2012     2011  

Stock compensation expense

   $ 7,363     $ 8,703     $ 11,813     $ 14,346  

Related tax benefit

     2,432       3,036       3,967       5,000  

Noncontrolling interest

     1,910       2,565       3,229       4,226  
   

 

 

    

 

 

    

 

 

    

 

 

  

Net

   $ 3,021     $ 3,102     $ 4,617     $ 5,120  
   

 

 

    

 

 

    

 

 

    

 

 

  

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

HGI

HGI granted approximately 2,000 and 2,075 stock option awards during the three and six month periods ended April 1, 2012, respectively. All of these grants are time based, and vest over periods of 3 to 4 years. The total fair value of the stock option grants on their respective grant dates was approximately $3,589.

HGI granted approximately 700 and 768 restricted stock awards during the three and six month periods ended April 1, 2012, respectively. All of these grants are time based, and vest over periods of 7 months to 3 years. The total fair value of the restricted stock grants on their respective grant dates was approximately $3,719.

HGI granted approximately 22 restricted stock unit awards during the six month period ended April 1, 2012. There were no restricted stock units granted during the three months ended April 1, 2012. All of these grants are time based, and vest over periods of 7 months to 1 year. The total fair value of the restricted stock grants on their respective grant dates was approximately $100.

The fair values of restricted stock and restricted stock unit awards are determined based on the market price of HGI’s common stock on the grant date. The fair value of stock option 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

   1.12% - 1.19%

Assumed dividend yield

   —  

Expected option term

   6 years

Volatility

   33% - 35%

 

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

 

                 

Stock Option Awards

   Options     Weighted
Average
Exercise Price		  

HGI stock options outstanding at September 30, 2011

     143     $ 6.77  

Granted

     2,075       4.85  

Exercised

     (8 )      3.33  

Forfeited or expired

     —         —    
   

 

 

          

HGI stock options outstanding at April 1, 2012

     2,210       4.98  
   

 

 

          

Exercisable at April 1, 2012

     87       6.99  
   

 

 

          

Vested or expected to vest at April 1, 2012

     2,210       4.98  
   

 

 

          

The weighted-average remaining contractual term of outstanding stock option awards was 9.74 years.

 

                 

Restricted Stock Awards

   Shares     Weighted
Average Grant
Date Fair Value		  

HGI restricted stock outstanding at September 30, 2011

     —       $ —    

Granted

     768       4.84  

Exercised

     —         —    

Forfeited or expired

     —         —    
   

 

 

          

HGI restricted stock outstanding at April 1, 2012

     768       4.84  
   

 

 

          

Vested or expected to vest at April 1, 2012

     768       4.84  
   

 

 

          

 

                 

Restricted Stock Units

   Units     Weighted
Average Grant
Date Fair Value		  

HGI restricted stock units outstanding at September 30, 2011

     —       $ —    

Granted

     22       4.61  

Exercised

     —         —    

Forfeited or expired

     —         —    
   

 

 

          

HGI restricted share units outstanding at April 1, 2012

     22       4.61  
   

 

 

          

Vested or expected to vest at April 1, 2012

     22       4.61  
   

 

 

          

Spectrum Brands

Spectrum Brands granted approximately 13 and 717 restricted stock units during the three and six month periods ended April 1, 2012, respectively. Of these grants, 18 restricted stock units are time based and vest over a one year period. The remaining 699 restricted stock units are performance and time-based and vest over a two year period. The total fair value of the restricted stock units on the dates of the grants was approximately $19,280.

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

 

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

 

                         

Restricted Stock Awards

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

Spectrum Brands restricted stock awards at September 30, 2011

     123     $ 24.20     $ 2,977  

Vested

     (97 )      23.19       (2,249 ) 
   

 

 

            

 

 

  

Spectrum Brands restricted stock awards at April 1, 2012

     26       28.00     $ 728  
   

 

 

            

 

 

  

 

                         

Restricted Stock Units

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

Spectrum Brands restricted stock units at September 30, 2011

     1,645     $ 28.97     $ 47,656  

Granted

     717       26.89       19,280  

Forfeited

     (45 )      28.27       (1,272 ) 

Vested

     (393 )      28.76       (11,301 ) 
   

 

 

            

 

 

  

Spectrum Brands restricted stock units at April 1, 2012

     1,924       28.26     $ 54,363  
   

 

 

            

 

 

  

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 stock option awards under the terms of the plan. These stock options vest over a period of 3 years and expire on the seventh anniversary of the grant. The total fair value of the grants on their respective grant dates was approximately $623.

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

   0.8%

Assumed dividend yield

   10.0%

Expected option term

   4.5 years

Volatility

   35.0%

A summary of FGL’s outstanding stock options as of April 1, 2012, and changes during the six month period, is as follows:

 

                 

Stock Option Awards

   Options     Weighted
Average
Exercise Price		  

FGL stock options outstanding at September 30, 2011

     —       $ —    

Granted

     205       38.14  

Exercised

     —         —    

Forfeited or expired

     —         —    
   

 

 

          

FGL stock options outstanding at April 1, 2012

     205       38.14  
   

 

 

          

Exercisable at April 1, 2012

     —         —    
   

 

 

          

Vested or expected to vest at April 1, 2012

     160       38.14