Share Based Compensation

6 Months Ended

Apr. 04, 2021

Share-based Payment Arrangement [Abstract]

Share based compensation expense is recognized as General and Administrative Expenses on the Condensed Consolidated Statements of Income. The following is a summary of share based compensation expense for the three and six month periods ended April 4, 2021 and March 29, 2020 for SBH and SB/RH, respectively.


	Three Month Periods Ended				Six Month Periods Ended
(in millions)	April 4, 2021		March 29, 2020		April 4, 2021		March 29, 2020
SBH	$	8.5	$	13.1	$	16.0	$	26.0
SB/RH	$	8.0	$	12.6	$	15.5	$	25.4

The Company recognizes share based compensation expense from the issuance of its Restricted Stock Units (“RSUs”), primarily under its Long-Term Incentive Plan ("LTIP"), based on the fair value of the awards, as determined by the market price of the Company’s shares of common stock on the designated grant date and recognized on a straight-line basis over the requisite service period of the awards. Certain RSUs are time-based grants that provide for either 3-year cliff vesting or graded vesting depending upon the vesting conditions and forfeitures provided by the grant. Certain RSUs are performance-based awards that are dependent upon achieving specified financial metrics (adjusted EBITDA, return on adjusted equity, and/or adjusted free cash flow) over a designated period of time. Additionally, the Company regularly issues individual RSU awards under its equity plan to its Board members and individual employees for recognition, incentive, or retention purposes, when needed, which are primarily conditional upon time-based service conditions and included as a component of share-based compensation.

In the prior year, the Company provided for a portion of its annual management incentive compensation plan ("MIP") to be paid in common stock of the Company, in lieu of cash payment. During the fourth quarter of the fiscal year ended September 30, 2020, the Company changed its MIP payout policy that previously provided for the issuance of stock for a designated pool of recipients to be fully funded through cash distribution with no stock issuance. Share based compensation expense associated with the annual MIP for the three and six month periods ended March 29, 2020 was $4.3 million and $8.6 million. There was no portion of annual MIP recognized in the share based compensation expense for the three and six month periods ended April 4, 2021.

The following is a summary of the activity in the Company RSUs during the six month period ended April 4, 2021:


	SBH					SB/RH
(in millions, except per share data)	Units	Weighted Average Grant Date Fair Value		Fair Value at Grant Date		Units	Weighted Average Grant Date Fair Value		Fair Value at Grant Date
Time-based grants
Vesting in less than 24 months	0.1	$	74.43	$	7.7	0.1	$	74.45	$	6.3
Vesting in more than 24 months	0.1	74.37		7.7		0.1	74.37		7.6
Total time-based grants	0.2	$	74.40	$	15.4	0.2	$	74.41	$	13.9
Performance-based grants
Vesting in more than 24 months	0.3	$	74.36	$	22.3	0.3	$	74.36	$	22.3
Total performance-based grants	0.3	$	74.36	$	22.3	0.3	$	74.36	$	22.3
Total grants	0.5	$	74.38	$	37.7	0.5	$	74.38	$	36.2


	SBH					SB/RH
(in millions, except per share data)	Shares	Weighted Average Grant Date Fair Value		Fair Value at Grant Date		Shares	Weighted Average Grant Date Fair Value		Fair Value at Grant Date
At September 30, 2020	1.4	$	56.41	$	79.3	1.4	$	56.33	$	77.7
Granted	0.5	74.38		37.7		0.5	74.38		36.2
Forfeited	(0.1)	61.24		(1.0)		(0.1)	61.24		(1.0)
Vested	(0.3)	53.06		(17.1)		(0.3)	52.35		(15.8)
At April 4, 2021	1.5	$	62.83	$	98.9	1.5	$	62.73	$	97.1

The remaining unrecognized pre-tax compensation cost for SBH and SB/RH at April 4, 2021 was $59.2 million and $58.3 million, respectively.