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Earnings Per Share
 9 Months Ended
Jul. 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 stock 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     Nine Month Period Ended  
    July 1, 2012     July 3, 2011     July 1, 2012     July 3, 2011  

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

   $ (149,080 )    $ 211,341     $ (129,176 )    $ 129,321  
   

 

 

    

 

 

    

 

 

    

 

 

  

Participating shares at end of period:

                                

Common stock outstanding

     139,357       139,283       139,357       139,283  

Preferred stock (as-converted basis)

     62,526       43,307       62,526       43,307  
   

 

 

    

 

 

    

 

 

    

 

 

  

Total

     201,883       182,590       201,883       182,590  
   

 

 

    

 

 

    

 

 

    

 

 

  

Percentage of income (loss) allocated to:

                                

Common stock

     100.0 %      76.3 %      100.0 %      76.3 % 

Preferred stock

     0.0 %(a)      23.7 %      0.0 %(a)      23.7 % 

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

   $ (149,080 )    $ 161,215     $ (129,176 )    $ 98,648  
   

 

 

    

 

 

    

 

 

    

 

 

  

Weighted-average common shares outstanding — basic

     139,349       139,222       139,351       139,207  

Dilutive effect of stock options

     —         70       —         73  
   

 

 

    

 

 

    

 

 

    

 

 

  

Weighted-average dilutive shares outstanding

     139,349       139,292       139,351       139,280  
   

 

 

    

 

 

    

 

 

    

 

 

  

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

                                

Basic

   $ (1.07 )    $ 1.16     $ (0.93 )    $ 0.71  
   

 

 

    

 

 

    

 

 

    

 

 

  

Diluted

   $ (1.07 )    $ 1.16     $ (0.93 )    $ 0.71  
   

 

 

    

 

 

    

 

 

    

 

 

  

 

(a)

Losses are not allocated to the convertible participating preferred shares since they have no contractual obligation to share in such losses.

The number of shares of common stock 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 shares of common stock outstanding plus the 119,910 HGI shares of common stock 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 stock outstanding, excluding nonvested restricted stock.

At July 1, 2012, there were 62,526 and 2,225 potential common stock issuable upon the conversion of the Preferred Stock and exercise of stock options, respectively, and 831 restricted stock and units, 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 and restricted stock 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 $4.86 per share.