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Stock Compensation | 3 Months Ended
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Dec. 31, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Stock Compensation | The Company recognized consolidated stock-based compensation expense of $11.1 and $15.0 during the three months ended December 31, 2016 and 2015, respectively. Stock-based compensation expense is principally included in “Selling, acquisition, operating and general expenses” in the accompanying Condensed Consolidated Statements of Operations. A summary of stock option awards outstanding as of December 31, 2016 and related activity during the three months then ended are as follows (option amounts in thousands):
|  | HRG
Stock Option Awards |  | Options |  | Weighted Average Exercise Price |  | Weighted Average Grant Date Fair Value
Stock options outstanding at September 30, 2016 |  | 4,231 |  |  | $ | 9.48 |  |  | $ | 3.80 |
Granted |  | 318 |  |  | 15.39 |  |  | 5.96 |
Exercised |  | (77 | ) |  | 12.33 |  |  | 4.52 |
Stock options outstanding at December 31, 2016 |  | 4,472 |  |  | 9.85 |  |  | 3.94 |
Stock options vested and exercisable at December 31, 2016 |  | 3,902 |  |  | 9.20 |  |  | 3.71 |
Stock options outstanding and expected to vest |  | 4,472 |  |  | 9.85 |  |  | 3.94 |
A summary of restricted stock awards, restricted stock units and performance restricted stock units outstanding as of December 31, 2016 and related activity during the three months then ended, under HRG and Spectrum Brands are as follows (share amounts in thousands):
|  | HRG
Restricted Stock Awards |  | Shares |  | Weighted Average Grant Date Fair Value
Nonvested restricted stock outstanding at September 30, 2016 |  | 1,975 |  |  | $ | 12.74 |
Granted |  | 25 |  |  | 15.71 |
Exercised/Released |  | (1,543 | ) |  | 12.57 |
Nonvested restricted stock outstanding at December 31, 2016 |  | 457 |  |  | 13.49 |
|  | HRG |  | Spectrum Brands
Restricted Stock Units |  | Units |  | Weighted Average Grant Date Fair Value |  | Units |  | Weighted Average Grant Date Fair Value
Restricted stock units outstanding at September 30, 2016 |  | 42 |  |  | $ | 12.33 |  |  | 577 |  |  | $ | 94.97 |
Granted |  | — |  |  | — |  |  | 688 |  |  | 126.97 |
Vested/Exercised |  | (42 | ) |  | 12.33 |  |  | (477 | ) |  | 109.31 |
Forfeited or Expired |  | — |  |  | — |  |  | 2 |  |  | 110.02 |
Restricted stock units outstanding at December 31, 2016 |  | — |  |  | — |  |  | 790 |  |  | 114.21 |
A summary of warrants outstanding as of December 31, 2016 and related activity during the three months then ended, under HRG‘s incentive plan are as follows (share amounts in thousands):
|  | HRG
Warrants |  | Units |  | Weighted Average Exercise Price |  | Weighted Average Grant Date Fair Value
Warrants outstanding at September 30, 2016 |  | 1,200 |  |  | $ | 13.13 |  |  | $ | 3.22 |
Warrants outstanding at December 31, 2016 |  | 1,200 |  |  | 13.13 |  |  | 3.22 |
Warrants outstanding and expected to vest |  | 1,200 |  |  | 13.13 |  |  | 3.22 |
HRG During the three months ended December 31, 2016, HRG granted stock option awards and restricted stock awards representing approximately 318 thousand and 25 thousand, respectively. All of these grants are time based, and vest either immediately, or over a period of up to 3 years. The total fair value of the stock grants during the three months ended December 31, 2016 on their respective grant dates was approximately $2.3. During the three months ended December 31, 2016, stock option awards and restricted stock awards with a total fair value of $23.1 vested. The total intrinsic value of share options exercised during the three months ended December 31, 2016 was $0.2, for which HRG received cash of $1.0 in settlement. During the three months ended December 31, 2015, HRG granted stock option awards, restricted stock awards and restricted stock unit awards representing approximately 28 thousand, 99 thousand and 6 thousand shares, respectively. All of these grants are time based, and vest either immediately, or over a period of up to 3 years. The total fair value of the stock grants during the three months ended December 31, 2015 on their respective grant dates was approximately $1.6. During the three months ended December 31, 2015, stock option awards and restricted stock awards with a total fair value of $28.1 vested. The total intrinsic value of stock options exercised during the three months ended December 31, 2015 was $2.1, for which HRG received cash of $3.2 in settlement. Under HRG’s executive bonus plan for the fiscal year ending September 30, 2017, executives will be paid in cash. In addition, executives may also be granted stock, stock options and restricted stock shares. As of December 31, 2016, there was approximately $3.9 of total unrecognized compensation cost related to unvested share-based compensation agreements previously granted, which is expected to be recognized over a weighted-average period of 1.27 years. The fair values of restricted stock and restricted stock unit awards are determined based on the market price of HRG’s common stock on the grant date. The fair value of stock option awards and warrants are determined using the Black-Scholes option pricing model. The following assumptions were used in the determination of these grant date fair values for options awarded using the Black-Scholes option pricing model:
| Three months ended December 31,
| 2016 |  | 2015
Risk-free interest rate | 1.80% to 2.25% |  | 1.65% to 1.74%
Assumed dividend yield | —% |  | —%
Expected option term | 5.0 to 6.5 years |  | 5.0 to 5.5 years
Volatility | 35.1% to 37.5% |  | 37.4% to 37.9%
The weighted-average remaining contractual term of outstanding stock option awards and warrants at December 31, 2016 was 5.07 years. On November 17, 2016, the Company and Mr. Asali entered into a Transition Agreement (the “Transition Agreement”), which provides that Mr. Asali’s options and restricted stock awards that (i) were scheduled to vest and settle on November 29, 2016 vested and settled on such date and (ii) were scheduled to vest and settle on November 29, 2017 will vest and settle on the earlier of March 31, 2017 or such earlier dates specified in the Transition Agreement. In addition, the Transition Agreement provides that, subject to the terms thereof, Mr. Asali will receive from the Company (i) for the fiscal year ended September 30, 2016, a bonus of $8.0 in cash; and (ii) for the fiscal year ending September 30, 2017, (x) a bonus of $3.0 in cash, on the earlier of March 31, 2017 and the date on which the Company announces that it has entered into definitive documentation which, if the transactions contemplated thereby were consummated, would result in a sale, merger, change in control or other strategic transaction of or involving the Company and substantially all of its assets (such transaction, a “Transaction”); and (y) an additional payment of $3.0 (or such higher amount as determined by the Board of Directors), if the Company enters into definitive documentation with respect to a Transaction, Mr. Asali remains employed through the announcement date of such Transaction and shareholder approval for such Transaction is obtained or upon certain other events specified in the Transition Agreement. Under certain circumstances, Mr. Asali will also receive $0.5 in severance and 12 months of COBRA reimbursements. As a result of the foregoing, for the three months ended December 31, 2016, the Company recorded $3.5 of severance liability and corresponding expense with respect to the Transition Agreement. Spectrum Brands Spectrum Brands granted restricted stock units representing approximately 688 thousand shares during the three months ended December 31, 2016. Of these grants, 78 thousand restricted stock units vested immediately and 212 thousand restricted stock units are time-based and vest over a period of less than 1 year. The remaining 398 thousand are both performance and time-based and vest over a period of 1 to 3 years. The total market value of the restricted stock units on the dates of the grants was approximately $87.3. The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2016 was $60.8. Spectrum Brands granted restricted stock units representing approximately 442 thousand shares during the three months ended December 31, 2015. The 442 thousand restricted stock units granted during the three months ended December 31, 2015 included 112 thousand restricted stock units that vested immediately and 33 thousand restricted stock units are time-based and vest within a period of 1 year. The remaining 297 thousand shares are both performance and time-based and vest over a period ranging from 1 to 2 years. The total market value of the restricted stock units on the dates of the grants was approximately $42.1. The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2015 was $44.5. The fair value of restricted stock units is determined based on the market price of Spectrum Brands’ common stock on the grant date.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 40 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65895303&loc=d3e17540-113929 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68057994&loc=d3e25284-112666 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 14) -URI http://asc.fasb.org/extlink&oid=27013229&loc=d3e301413-122809 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901 + Details
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