NOTE 14 - SHARE BASED COMPENSATION

Share based compensation expense is recognized as General and Administrative Expenses on the Condensed Consolidated Statements of Income and consists of costs from the Spectrum equity plan and the HRG equity plan. The following is a summary of share based compensation expense for the three and nine month periods ended June 30, 2018 and 2017.


	Three Month Periods Ended				Nine Month Periods Ended
(in millions)	June 30, 2018		June 30, 2017			June 30, 2018		June 30, 2017
Spectrum equity plan	$	4.9	$	4.4	$	5.3	$	23.9
HRG equity plan		0.4		0.6		1.1		4.6
SBH share based compensation expense		5.3		5.0		6.4		28.5
SB/RH share based compensation expense		4.5		3.9		4.0		21.6

Spectrum

The following summary of the activity in Spectrum RSUs during the nine month period ended June 30, 2018:


	Spectrum					SB/RH
		Weighted		Fair			Weighted		Fair
		Average		Value			Average		Value
		Grant Date		at Grant			Grant Date		at Grant
(in millions, except per share data)	Shares	Fair Value		Date		Shares	Fair Value		Date
Time-based grants	0.1	$	111.31	$	11.0	0.1	$	112.33	$	9.6
Performance-based grants
Vesting in less than 24 months	0.1		109.10		12.9	0.1		109.10		12.9
Vesting in more than 24 months	0.1		109.45		12.6	0.1		109.45		12.6
Total performance-based grants	0.2	$	109.27	$	25.5	0.2	$	109.27	$	25.5
Total grants	0.3	$	109.88	$	36.5	0.3	$	110.09	$	35.1



	Spectrum					SB/RH
		Weighted		Fair			Weighted		Fair
		Average		Value			Average		Value
		Grant Date		at Grant			Grant Date		at Grant
(in millions, except per share data)	Shares	Fair Value		Date		Shares	Fair Value		Date
At September 30, 2017	0.8	$	114.67	$	87.2	0.7	$	116.32	$	82.4
Granted	0.3		109.88		36.5	0.3		110.09		35.1
Forfeited	(0.1)		116.13		(10.0)	(0.1)		116.13		(10.0)
Vested	(0.5)		113.21		(55.1)	(0.4)		114.19		(50.9)
At June 30, 2018	0.5	$	112.74	$	58.6	0.5	$	114.27	$	56.6

In addition to RSUs, Spectrum also provides for a portion of its annual management incentive compensation plan to be paid in common stock of the Company, in lieu of cash payment, and is considered a liability plan. Share based compensation expense associated with the annual management incentive plan was $3.2 million and $1.9 million for the three month periods ended June 30, 2018 and 2017, respectively, and $6.4 million and $5.7 million for the nine month periods ended June 30, 2018 and 2017, respectively. The remaining unrecognized pre-tax compensation cost for SBH and SB/RH at June 30, 2018 was $1.6 million and $1.2 million, respectively. Effective the close of the Spectrum Merger, all outstanding awards under the Spectrum plan are modified and the underlying Spectrum shares are exchanged for shares in SBH.

HRG

The following is a summary of HRG share-based awards during the nine month period ended June 30, 2018:


	Stock Options					Warrants					Restricted Stock Awards
		Weighted		Weighted			Weighted		Weighted			Weighted		Fair
		Average		Average			Average		Average			Average		Value
		Exercise		Grant Date			Exercise		Grant Date			Grant Date		at Grant
(in millions, except per share data)	Options	Price		Fair Value		Units	Price		Fair Value		Shares	Fair Value		Date
As of September 30, 2017	4.0	$	9.69	$	3.88	0.6	$	13.13	$	3.22	0.1	$	13.36	$	1.9
Granted	—		—		—	—		—		—	0.1		16.85		0.4
Exercised	(2.5)		(8.38)		(3.33)	(0.6)		(13.13)		(3.22)	(0.1)		(13.56)		(1.9)
Outstanding at June 30, 2018	1.5	$	11.82	$	4.78	—	$	—	$	—	0.1	$	16.85	$	0.4
Vested/Exercisable at June 30, 2018	1.3		11.09	$	4.53

During the nine month period ended June 30, 2018, HRG stock option awards with a total fair value of $0.8 million vested. The intrinsic value of HRG share options exercised during the nine month period ended June 30, 2018 was $21.5 million, which HRG received $19.9 million in cash settlement. The remaining unrecognized pre-tax compensation cost for HRG at June 30, 2018 was $0.3 million. Effective the close of the Spectrum Merger, all HRG awards become fully vested and exercisable.