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Stock Compensation
 9 Months Ended
Jul. 01, 2012
Stock Compensation [Abstract]  
Stock Compensation

(10) Stock Compensation

The Company recognized consolidated stock compensation expense as follows:

 

                                 
    Three Month Period Ended     Nine Month Period Ended  
    July 1, 2012     July 3, 2011     July 1, 2012     July 3, 2011  

Stock compensation expense

   $ 5,247     $ 8,557     $ 17,060     $ 22,903  

Related tax benefit

     1,591       2,985       5,558       7,985  

Noncontrolling interest

     1,240       2,522       4,469       6,748  
   

 

 

    

 

 

    

 

 

    

 

 

  

Net

   $ 2,416     $ 3,050     $ 7,033     $ 8,170  
   

 

 

    

 

 

    

 

 

    

 

 

  

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 140 and 2,215 stock option awards during the three and nine month periods ended July 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 $3,832.

HGI granted approximately 50 and 818 restricted stock awards during the three and nine month periods ended July 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 $3,959.

HGI granted approximately 22 restricted stock units during the nine month period ended July 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.

Under HGI’s executive bonus plan, executives will be paid in cash, stock options and restricted stock shares. The equity grants will have a grant date in the first fiscal quarter of 2013 and the shares will vest between 12 and 36 months from the grant date.

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

   0.98% - 1.19%

Assumed dividend yield

   —  

Expected option term

   6 years

Volatility

   33% - 35%

 

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

 

                         

Stock Option Awards

   Options     Weighted
Average
Exercise Price		     Weighted Average
Grant Date Fair
Value		  

HGI stock options outstanding at September 30, 2011

     143     $ 6.77     $ 2.54  

Granted

     2,215       4.85       1.73  

Exercised

     (8 )      3.33       1.29  

Forfeited or expired

     (125 )      7.01       2.64  
   

 

 

                  

HGI stock options outstanding at July 1, 2012

     2,225       4.86       1.73  
   

 

 

                  

Exercisable at July 1, 2012

     7       6.50       2.35  
   

 

 

                  

Vested or expected to vest at July 1, 2012

     2,225       4.86       1.73  
   

 

 

                  

The weighted-average remaining contractual term of outstanding stock option awards was 9.63 years.

 

                 

Restricted Stock Awards

   Shares     Weighted
Average Grant
Date Fair Value		  

HGI restricted stock outstanding at September 30, 2011

     —       $ —    

Granted

     818       4.84  

Vested

     (9 )      4.61  

Forfeited

     —         —    
   

 

 

          

HGI restricted stock outstanding at July 1, 2012

     809       4.84  
   

 

 

          

Vested or expected to vest at July 1, 2012

     809       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  

Vested

     (4 )      4.61  

Forfeited

     —         —    
   

 

 

          

HGI restricted stock units outstanding at July 1, 2012

     18       4.61  
   

 

 

          

Vested or expected to vest at July 1, 2012

     18       4.61  
   

 

 

          

Spectrum Brands

Spectrum Brands granted approximately 42 and 759 restricted stock units during the three and nine month periods ended July 1, 2012, respectively. Of these grants, 18 restricted stock units are time based and vest over a one year period and 42 restricted stock units are time-based and vest over a two 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 $20,756.

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 July 1, 2012, and changes during the nine month period, is as follows:

 

                 

Restricted Stock Awards

   Shares     Weighted
Average Grant
Date Fair Value		  

Spectrum Brands restricted stock awards at September 30, 2011

     123     $ 24.20  

Vested

     (110 )      23.75  
   

 

 

          

Spectrum Brands restricted stock awards at July 1, 2012

     13       28.00  
   

 

 

          

 

                 

Restricted Stock Units

   Units     Weighted
Average Grant
Date Fair Value		  

Spectrum Brands restricted stock units at September 30, 2011

     1,645     $ 28.97  

Granted

     759       27.35  

Vested

     (396 )      28.72  

Forfeited

     (53 )      28.08  
   

 

 

          

Spectrum Brands restricted stock units at July 1, 2012

     1,955       28.41  
   

 

 

          

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 and June 22, 2012, FGL granted 205 and 2 stock option awards, respectively, 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 grant dates was approximately $623 and $5, respectively.

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 July 1, 2012, and changes during the nine month period, is as follows:

 

                         

Stock Option Awards

   Options     Weighted
Average
Exercise Price		     Weighted
Average Grant
Date Fair Value		  

FGL stock options outstanding at September 30, 2011

     —       $ —       $ —    

Granted

     207       38.20       3.90  

Exercised

     —         —         —    

Forfeited or expired

     (6 )      38.14       3.90  
   

 

 

                  

FGL stock options outstanding at July 1, 2012

     201       38.20       3.90  
   

 

 

                  

Exercisable at July 1, 2012

     —         —         —    
   

 

 

                  

Vested or expected to vest at July 1, 2012

     161       38.20       3.90