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Stock-based Compensation Stock-based Compensation (Tables)

3 Months Ended

Dec. 31, 2017

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Stock Options Outstanding and Related Activity

A summary of stock option awards outstanding as of December 31, 2017 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, 2017		3,976			$	9.69			$	3.88
Exercised		(113	)		12.25				4.82
Stock options outstanding at December 31, 2017		3,863			9.61				3.85
Stock options vested and exercisable at December 31, 2017		3,606			9.20				3.70
Stock options outstanding and expected to vest		3,863			9.61				3.85

Summary of Restricted Stock and Restricted Stock Units Outstanding and Related Activity

A summary of restricted stock awards, restricted stock units and performance restricted stock units outstanding as of December 31, 2017 and related activity during the three months then ended, under HRG’s and Spectrum Brands’ incentive plans are as follows (share and unit amounts in thousands):

		HRG
Restricted Stock Awards		Shares			Weighted Average Grant Date Fair Value
Nonvested restricted stock outstanding at September 30, 2017		143			$	13.36
Granted		24			16.85
Exercised / Released		(143	)		13.36
Nonvested restricted stock outstanding at December 31, 2017		24			16.85

		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, 2017		—			$	—			761			$	114.67
Granted		—			—				324			111.06
Vested/Exercised		—			—				(456	)		113.24
Forfeited or Expired		—			—				(2	)		123.78
Restricted stock units outstanding at December 31, 2017		—			—				627			113.82

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]

A summary of warrants outstanding as of December 31, 2017 and related activity during the three months then ended, under HRG’s incentive plan are as follows (unit amounts in thousands):

		HRG
Warrants		Units			Weighted Average Exercise Price				Weighted Average Grant Date Fair Value
Warrants outstanding at September 30, 2017		600			$	13.13			$	3.22
Warrants outstanding at December 31, 2017		600			13.13				3.22
Warrants outstanding and expected to vest		600			13.13				3.22

Stock Compensation

A summary of time-based and performance-based grants as of December 31, 2017 and related activity during the three months then ended, under HRG’s and Spectrum Brands’ incentive plans are as follows (share amounts in thousands):

		HRG											Spectrum Brands
Time-based grants		Units			Weighted Average Grant Date Fair Value				Fair Value at Grant Date				Units			Weighted Average Grant Date Fair Value				Fair Value at Grant Date
Stock option awards		—			$	—			$	—			—			$	—			$	—
Restricted stock awards		24			16.85				0.4				—			—				—
Restricted stock units		—			—				—				92			113.29				10.4
Total time-based grants		24							$	0.4			92							$	10.4

		Spectrum Brands
Performance-based grants		Units			Weighted Average Grant Date Fair Value				Fair Value at Grant Date
Vesting in less than 12 months		—			$	—			$	—
Vesting in 12 to 24 months		116			110.17				12.8
Vesting in more than 24 months		116			110.17				12.8
Total performance-based grants		232			110.17				$	25.6

The Company recognized consolidated stock-based compensation expense of $4.2 and $9.5 during the three months ended December 31, 2017 and 2016, 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, 2017 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, 2017		3,976			$	9.69			$	3.88
Exercised		(113	)		12.25				4.82
Stock options outstanding at December 31, 2017		3,863			9.61				3.85
Stock options vested and exercisable at December 31, 2017		3,606			9.20				3.70
Stock options outstanding and expected to vest		3,863			9.61				3.85

A summary of restricted stock awards, restricted stock units and performance restricted stock units outstanding as of December 31, 2017 and related activity during the three months then ended, under HRG’s and Spectrum Brands’ incentive plans are as follows (share and unit amounts in thousands):

		HRG
Restricted Stock Awards		Shares			Weighted Average Grant Date Fair Value
Nonvested restricted stock outstanding at September 30, 2017		143			$	13.36
Granted		24			16.85
Exercised / Released		(143	)		13.36
Nonvested restricted stock outstanding at December 31, 2017		24			16.85

		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, 2017		—			$	—			761			$	114.67
Granted		—			—				324			111.06
Vested/Exercised		—			—				(456	)		113.24
Forfeited or Expired		—			—				(2	)		123.78
Restricted stock units outstanding at December 31, 2017		—			—				627			113.82

A summary of warrants outstanding as of December 31, 2017 and related activity during the three months then ended, under HRG’s incentive plan are as follows (unit amounts in thousands):

		HRG
Warrants		Units			Weighted Average Exercise Price				Weighted Average Grant Date Fair Value
Warrants outstanding at September 30, 2017		600			$	13.13			$	3.22
Warrants outstanding at December 31, 2017		600			13.13				3.22
Warrants outstanding and expected to vest		600			13.13				3.22

A summary of time-based and performance-based grants as of December 31, 2017 and related activity during the three months then ended, under HRG’s and Spectrum Brands’ incentive plans are as follows (share amounts in thousands):

		HRG											Spectrum Brands
Time-based grants		Units			Weighted Average Grant Date Fair Value				Fair Value at Grant Date				Units			Weighted Average Grant Date Fair Value				Fair Value at Grant Date
Stock option awards		—			$	—			$	—			—			$	—			$	—
Restricted stock awards		24			16.85				0.4				—			—				—
Restricted stock units		—			—				—				92			113.29				10.4
Total time-based grants		24							$	0.4			92							$	10.4

		Spectrum Brands
Performance-based grants		Units			Weighted Average Grant Date Fair Value				Fair Value at Grant Date
Vesting in less than 12 months		—			$	—			$	—
Vesting in 12 to 24 months		116			110.17				12.8
Vesting in more than 24 months		116			110.17				12.8
Total performance-based grants		232			110.17				$	25.6

Additional Disclosures

During the three months ended December 31, 2017, HRG’s stock option awards and HRG’s restricted stock awards with a total fair value of $2.7 vested. The total intrinsic value of HRG’s share options exercised during the three months ended December 31, 2017 was $0.5, for which HRG received cash of $1.4 in settlement.

Under HRG’s executive compensation plan for the three months ended December 31, 2017, executives will be paid in cash. In addition, at the discretion of the Board, executives may from time to time be granted stock, stock options, and shares of restricted stock.

As of December 31, 2017, HRG had $1.0 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 1.18 years.

The fair values of HRG’s 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 HRG’s 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 HRG’s options awarded using the Black-Scholes option pricing model:

	Three months ended December 31, 2016
Risk-free interest rate	1.80% to 2.25%
Assumed dividend yield	—%
Expected option term	5.0 to 6.5 years
Volatility	35.1% to 37.5%

There is no comparative in the table above as there were no options granted during the three months ended December 31, 2017.

The weighted-average remaining contractual term of HRG’s outstanding stock option awards and warrants at December 31, 2017, was 4.06 years.

Spectrum Brands measures share-based compensation expense of restricted stock units based on the fair value of the awards, as determined by the market price of the Spectrum Brands’ shares on the grant date and recognizes these costs on a straight-line basis over the requisite service period of the awards. Certain of Spectrum Brands’ restricted stock units are performance-based awards that are dependent upon achieving specified financial metrics over a designated period of time. In addition to restricted stock units, Spectrum Brands also provides for a portion of its annual management incentive compensation plan to be paid in common stock of Spectrum Brands, in lieu of cash payment, and is considered a liability plan.

The total market value Spectrum Brands’ restricted stock units on the dates of the grants was approximately $36.0. The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2017 was $43.4.

HGI

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Assumptions Used in Determination of Grant Date Fair Values Using Black-Scholes Option Pricing Model

The following assumptions were used in the determination of these grant date fair values for HRG’s options awarded using the Black-Scholes option pricing model:

	Three months ended December 31, 2016
Risk-free interest rate	1.80% to 2.25%
Assumed dividend yield	—%
Expected option term	5.0 to 6.5 years
Volatility	35.1% to 37.5%

X

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