Stock Compensation

9 Months Ended

Jul. 03, 2011

Stock Compensation [Abstract]

Stock Compensation

(12) Stock Compensation

The Company recognized stock-based compensation expense associated with stock option awards issued by HGI and restricted stock awards and restricted stock units issued by Spectrum Brands. For the three and nine month periods ended July 3, 2011, the Company recognized consolidated stock-based compensation expense of $8,557 and $22,903, or $3,050 and $8,170 net of taxes and noncontrolling interest, respectively. For the three and nine month periods ended July 4, 2010, the Company recognized $5,881 and $12,273, or $3,147 and $7,303, net of taxes and noncontrolling interest, respectively. The Company includes stock-based compensation in “Selling, general and administrative expenses”.

HGI

Total stock compensation expense associated with stock option awards recognized by HGI during the three and nine month periods ended July 3, 2011 was $29 and $88, respectively.

A summary of HGI’s outstanding stock options as of July 3, 2011, and changes during the period, is as follows:

				Weighted
				Average
	Shares			Exercise Price
HGI stock options outstanding at September 30, 2010		509		$	5.62
Granted		—			—
Exercised		(87	)		2.79
Forfeited or expired		(16	)		7.07
HGI stock options outstanding at July 3, 2011		406			6.17
Exercisable at July 3, 2011		316			5.94
Vested or expected to vest at July 3, 2011		406		$	6.17

Spectrum Brands

Total stock compensation expense associated with restricted stock awards and restricted stock units recognized by Spectrum Brands during the three and nine month periods ended July 3, 2011 was $8,528, or $3,021 net of taxes and noncontrolling interest, and $22,815, or $8,082 net of taxes and noncontrolling interest, respectively. Total stock compensation expense associated with restricted stock awards recognized by Spectrum Brands during the three and nine month periods ended July 4, 2010 was $5,881, or $3,147 net of taxes and noncontrolling interest, and $12,273, or $7,303 net of taxes and noncontrolling interest, respectively.

Spectrum Brands granted approximately 1,580 restricted stock units during the nine month period ended July 3, 2011. Of these grants, 1,547 restricted stock units are performance and time-based with 665 units vesting over a two year period and 882 units vesting over a three year period. 15 restricted stock units are time-based and vest over a one year period and 18 restricted stock units are time-based and vest over a three year period. The total market value of the restricted stock units on the dates of the grants was approximately $46,034.

Spectrum Brands granted approximately 939 shares of restricted stock awards during the nine month period ended July 4, 2010, including 271 restricted stock units in connection with the SB/RH Merger. Of these grants, 289 shares are time-based and vest over a one year period and 650 shares are time-based and vest over a two or three year period. All vesting dates are subject to the recipient’s continued employment with the Company, except as otherwise permitted by the Spectrum Brands’ board of directors or in certain cases if the employee is terminated without cause. The total market value of the restricted stock awards on the date of grant was approximately $23,299.

The fair value of restricted stock awards and restricted stock units is determined based on the market price of Spectrum Brands’ shares of common stock on the grant date.

A summary of the Spectrum Brands’ non-vested restricted stock awards and restricted stock units as of July 3, 2011, and changes during the period, is as follows:

				Weighted
	Units/			Average Grant
Restricted Stock Awards	Shares			Date Fair Value		Fair Value
Restricted Spectrum Brands stock awards at September 30, 2010		446		$	23.56	$	10,508
Vested		(323	)		23.32		(7,531	)
Restricted Spectrum Brands stock awards at July 3, 2011		123		$	24.20	$	2,977

				Weighted
	Units/			Average Grant
Restricted Stock Units	Shares			Date Fair Value		Fair Value
Restricted Spectrum Brands stock units at September 30, 2010		249		$	28.22	$	7,028
Granted		1,580			29.14		46,034
Forfeited		(17	)		29.29		(498	)
Vested		(235	)		28.39		(6,671	)
Restricted Spectrum Brands stock units at July 3, 2011		1,577		$	29.10	$	45,893