Earnings Per Share

6 Months Ended

Mar. 31, 2013

Earnings Per Share [Abstract]

Earnings Per Share

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 (share amounts in thousands):

	Three months ended						Six months ended
	March 31, 2013			April 1, 2012			March 31, 2013			April 1, 2012
Net (loss) income attributable to common and participating preferred stockholders	$	(45.5	)	$	(3.9	)	$	16.5		$	19.9
Participating shares at end of period:
Common shares outstanding	139,724			139,349			139,724			139,349
Preferred shares (as-converted basis)	62,839			62,215			62,839			62,215
Total	202,563			201,564			202,563			201,564
Percentage of (loss) income allocated to:
Common shares	100.0		%	100.0		%	69.0		%	69.1		%
Preferred shares (a)	—		%	—		%	31.0		%	30.9		%
Net (loss) income attributable to common shares - basic	$	(45.5	)	$	(3.9	)	$	11.4		$	13.8
Dilutive adjustments to (loss) income attributable to common shares from assumed conversion of preferred shares, net of tax:
Income allocated to preferred shares in basic calculation	—			—			5.1			—
Reversal of preferred stock dividends and accretion	—			—			24.3			—
Reversal of income related to fair value of preferred stock conversion feature	—			—			(29.3		)	—
Net adjustment	—			—			0.1			—
Net (loss) income attributable to common shares - diluted	$	(45.5	)	$	(3.9	)	$	11.5		$	13.8
Weighted-average common shares outstanding - basic	139,724			139,346			139,604			139,346
Dilutive effect of preferred stock	—			—			62,839			—
Dilutive effect of unvested restricted stock and restricted stock units	—			—			1,856			—
Dilutive effect of stock options	—			—			592			—
Weighted-average shares outstanding - diluted	139,724			139,346			204,891			139,346
Net (loss) income per common share attributable to controlling interest:
Basic	$	(0.33	)	$	(0.03	)	$	0.08		$	0.10
Diluted	$	(0.33	)	$	(0.03	)	$	0.06		$	0.10

(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 the actual number of HGI common stock outstanding, excluding nonvested restricted stock.

For the three months ended March 31, 2013, there were 62,839 thousand potential common stock issuable upon the conversion of the Preferred Stock, 566 thousand potential common stock issuable upon the exercise of stock options and 1,403 thousand restricted stock and restricted stock units excluded from the calculation of "Diluted net loss (income) per common share attributable to controlling interest" because the as-converted effect of the Preferred Stock and stock options and the restricted stock would have been anti-dilutive in the applicable periods presented. The stock options had a weighted average exercise price of $6.38 per share. The Preferred Stock had a weighted average conversion price of $6.64.

The previously reported basic and diluted loss per common share attributable to controlling interest for the three months ended April 1, 2012 was retrospectively corrected to reflect no allocation of losses to the convertible preferred shares. This immaterial correction decreased basic and diluted loss per common share attributable to controlling interest to $(0.03) and $(0.03), respectively, as reported above, from $(0.02) and $(0.02), respectively, as previously reported.