XML 123 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Permanent Equity
 12 Months Ended
Sep. 30, 2014
Equity [Abstract]  
Permanent Equity
Permanent Equity
Accumulated Other Comprehensive Income
Accumulated other comprehensive income includes foreign currency translation gains and losses on assets and liabilities of foreign subsidiaries, effects of exchange rate changes on intercompany balances of a long-term nature and transactions designated as a hedge of a net investment in a foreign subsidiary, deferred gains and losses on derivative financial instruments designated as cash flow hedges, amortization of deferred gains and losses associated with the Company's pension plans and unrealized gains and losses on debt and equity securities held as available for sale, net of shadow adjustments to intangibles. The foreign currency translation gains and losses for Fiscal 2014, 2013 and 2012 were primarily attributable to the impact of translation of the net assets of the Spectrum Brands’ European and Latin American operations, which primarily have functional currencies in Euros, Pounds Sterling, Mexican Peso and Brazilian Real. Except for gains and losses resulting from exchange rate changes on intercompany balances of a long-term nature, and prior to September 30, 2012, Spectrum Brands did not provide income taxes on currency translation adjustments, as earnings from international subsidiaries were considered to be permanently reinvested. As of the beginning of Fiscal 2012, Spectrum Brands is no longer considering current and future earnings from international subsidiaries to be permanently reinvested, except for locations where it is precluded by certain restrictions from repatriating earnings.
For information pertaining to the reclassification of unrealized gains and losses on derivative instruments, see Note 6, Derivative Financial Instruments.
For information pertaining to the reclassification of unrealized gains and losses on debt and equity securities held as available for sale, see Note 5, Investments, and Note 13, Goodwill and Intangibles, including DAC and VOBA, net, for the related shadow adjustments.
The cumulative amounts of the components of accumulated other comprehensive income reflected in the accompanying Consolidated Statements of Permanent Equity, as of September 30, 2014 and 2013, were as follows:
 
 
Unrealized
Investment
Gains, net
 
Non-credit
Related
Other-than-
temporary
Impairments
 
Other
Unrealized
Gains (Losses)
— Cash Flow
Hedges
 
Actuarial
Adjustments
to Pension
Plans
 
Cumulative
Translation
Adjustments
 
Total
Cumulative components at September 30, 2014:
 
 
 
 
 
 
 
 
 
 
 
 
Gross amounts (after reclassification adjustments)
 
$
762.2

 
$
(1.0
)
 
$
13.1

 
$
(36.2
)
 
$
(42.8
)
 
$
695.3

Intangible assets adjustments
 
(220.0
)
 
0.4

 
—

 
—

 
—

 
(219.6
)
Tax effects
 
(190.1
)
 
0.2

 
(3.9
)
 
0.8

 
3.5

 
(189.5
)
Noncontrolling interest
 
(68.5
)
 
—

 
(3.8
)
 
13.6

 
16.1

 
(42.6
)
 
 
$
283.6

 
$
(0.4
)
 
$
5.4

 
$
(21.8
)
 
$
(23.2
)
 
$
243.6

Cumulative components at September 30, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
Gross amounts (after reclassification adjustments)
 
$
235.7

 
$
(1.0
)
 
$
(2.6
)
 
$
(28.9
)
 
$
(10.3
)
 
$
192.9

Intangible assets adjustments
 
(63.2
)
 
0.4

 
—

 
—

 
—

 
(62.8
)
Tax effects
 
(61.1
)
 
0.2

 
0.3

 
(0.8
)
 
3.5

 
(57.9
)
Noncontrolling interest
 
—

 
—

 
0.9

 
11.9

 
2.7

 
15.5

 
 
$
111.4

 
$
(0.4
)
 
$
(1.4
)
 
$
(17.8
)
 
$
(4.1
)
 
$
87.7


Restricted Net Assets of Subsidiaries
HGI’s equity in restricted net assets of consolidated subsidiaries was approximately $1,941.0 as of September 30, 2014, representing 134.6% of HGI’s consolidated stockholders’ equity as of September 30, 2014 and consisted of net assets of FGL, Spectrum Brands and HGI Energy, less noncontrolling interest, which were restricted as to transfer to HGI in the form of cash dividends, loans or advances under regulatory or debt covenant restrictions.
Stock Repurchase Program
In May 2014, the Company’s Board of Directors authorized a stock repurchase program for an aggregate of up to $100.0 of common stock. The repurchase program authorizes purchases to be made from time to time in one or more open market or private transactions. The manner of purchase, the number of shares to be purchased and the timing of purchases are be based on the price of HGI’s common stock, general business and market conditions and applicable legal requirements, and is subject to the discretion of HGI’s management. The program does not require HGI to purchase any specific number of shares or any shares at all, and may be suspended, discontinued or re-instituted at any time without prior notice.
A summary of the stock repurchase activity under the $100.0 stock repurchase program authorized by HGI's Board of Directors earlier in Fiscal 2014 is summarized as follows (share amounts in thousands):
 
 
Shares repurchased
 
Weighted-Average Price per Share
 
Amount Repurchased
Cumulative balance at September 30, 2014
 
5,197

 
$
12.62

 
$
65.6


The purchase price for the shares of the Company’s stock repurchased is reflected as a reduction to shareholders’ equity. Upon repurchase, the Company retires the stock and records the excess of the cost of the treasury stock over its par value entirely to additional paid-in capital.