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Earnings Per Share
 6 Months Ended
Apr. 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 for the three and six month periods ended April 1, 2012 and April 3, 2011:

 

                                 
    Three Months     Six Months  
    2012     2011     2012     2011  

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

   $ (3,855 )    $ (61,950 )    $ 19,904     $ (82,020 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Participating shares at end of period:

                                

Common shares outstanding

     139,349       139,202       139,349       139,202  

Preferred shares (as-converted basis)

     62,215       —         62,215       —    
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

     201,564       139,202       201,564       139,202  
   

 

 

    

 

 

    

 

 

    

 

 

  

Percentage of income (loss) allocated to:

                                

Common shares

     69.1 %      100.0 %      69.1 %      100.0 % 

Preferred shares

     30.9 %      —         30.9 %      —    

Net income (loss) attributable to common shares—basic and diluted

   $ (2,665 )    $ (61,950 )    $ 13,760     $ (82,020 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Weighted-average common shares outstanding—basic and diluted

     139,347       139,202       139,347       139,200  

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

                                

Basic

   $ (0.02 )    $ (0.45 )    $ 0.10     $ (0.59 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

   $ (0.02 )    $ (0.45 )    $ 0.10     $ (0.59 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

The number of common shares outstanding used in calculating the weighted average thereof reflects: (i) for the period prior to the January 7, 2011 date of the Spectrum Brands Acquisition, 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 periods subsequent to and including January 7, 2011, the actual number of HGI common shares outstanding, excluding nonvested restricted shares.

At April 1, 2012, there were 62,215 and 2,210 potential common shares issuable upon the conversion of the Preferred Stock and exercise of stock options, respectively, excluded from the calculation of “Diluted net income (loss) per common share attributable to controlling interest” because the as-converted effect of the Preferred Stock and the effect of the stock options would have been anti-dilutive in the applicable periods presented. The Preferred Stock had a weighted average conversion price of $6.64 and the stock options had a weighted average exercise price of $4.98 per share.