Stock-based Compensation Stock-based Compensation (Tables)

6 Months Ended

Mar. 31, 2018

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary of Stock Options Outstanding and Related Activity

A summary of stock option awards outstanding as of March 31, 2018 and related activity during the six months then ended are as follows (option amounts in thousands):

	HRG
Stock Option Awards	Options		Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Stock options outstanding at September 30, 2017	3,976		$	9.69	$	3.88
Exercised	(1,565	)	6.45		2.48
Stock options outstanding at March 31, 2018	2,411		11.79		4.78
Stock options vested and exercisable at March 31, 2018	2,154		11.36		4.64
Stock options outstanding and expected to vest	2,411		11.79		4.78

Summary of Restricted Stock and Restricted Stock Units Outstanding and Related Activity

A summary of restricted stock awards, restricted stock units and performance restricted stock units outstanding as of March 31, 2018 and related activity during the six months then ended, under HRG’s and Spectrum Brands’ incentive plans are as follows (share and unit amounts in thousands):

	HRG
Restricted Stock Awards	Shares		Weighted Average Grant Date Fair Value
Nonvested restricted stock outstanding at September 30, 2017	143		$	13.36
Granted	24		16.85
Exercised / Released	(143	)	13.36
Nonvested restricted stock outstanding at March 31, 2018	24		16.85

	HRG			Spectrum Brands
Restricted Stock Units	Units	Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Restricted stock units outstanding at September 30, 2017	—	$	—	761		$	114.67
Granted	—	—		323		110.55
Vested/Exercised	—	—		(464	)	113.25
Forfeited or Expired	—	—		(8	)	115.03
Restricted stock units outstanding at March 31, 2018	—	—		612		113.57

Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding and Exercisable [Table Text Block]

A summary of warrants outstanding as of March 31, 2018 and related activity during the six months then ended, under HRG’s incentive plan are as follows (unit amounts in thousands):

	HRG
Warrants	Units	Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Warrants outstanding at September 30, 2017	600	$	13.13	$	3.22
Warrants outstanding at March 31, 2018	600	13.13		3.22
Warrants outstanding and expected to vest	600	13.13		3.22

Stock Compensation

The Company recognized consolidated stock-based compensation (income) expense of $(3.1) and $14.0 during the three months ended March 31, 2018 and 2017, respectively, and $1.1 and $23.5 during the six months ended March 31, 2018 and 2017, respectively. Stock-based compensation expense is principally included in “Selling, acquisition, operating and general expenses” in the accompanying Condensed Consolidated Statements of Operations.

A summary of stock option awards outstanding as of March 31, 2018 and related activity during the six months then ended are as follows (option amounts in thousands):

	HRG
Stock Option Awards	Options		Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Stock options outstanding at September 30, 2017	3,976		$	9.69	$	3.88
Exercised	(1,565	)	6.45		2.48
Stock options outstanding at March 31, 2018	2,411		11.79		4.78
Stock options vested and exercisable at March 31, 2018	2,154		11.36		4.64
Stock options outstanding and expected to vest	2,411		11.79		4.78

A summary of restricted stock awards, restricted stock units and performance restricted stock units outstanding as of March 31, 2018 and related activity during the six months then ended, under HRG’s and Spectrum Brands’ incentive plans are as follows (share and unit amounts in thousands):

	HRG
Restricted Stock Awards	Shares		Weighted Average Grant Date Fair Value
Nonvested restricted stock outstanding at September 30, 2017	143		$	13.36
Granted	24		16.85
Exercised / Released	(143	)	13.36
Nonvested restricted stock outstanding at March 31, 2018	24		16.85

	HRG			Spectrum Brands
Restricted Stock Units	Units	Weighted Average Grant Date Fair Value		Units		Weighted Average Grant Date Fair Value
Restricted stock units outstanding at September 30, 2017	—	$	—	761		$	114.67
Granted	—	—		323		110.55
Vested/Exercised	—	—		(464	)	113.25
Forfeited or Expired	—	—		(8	)	115.03
Restricted stock units outstanding at March 31, 2018	—	—		612		113.57

A summary of warrants outstanding as of March 31, 2018 and related activity during the six months then ended, under HRG’s incentive plan are as follows (unit amounts in thousands):

	HRG
Warrants	Units	Weighted Average Exercise Price		Weighted Average Grant Date Fair Value
Warrants outstanding at September 30, 2017	600	$	13.13	$	3.22
Warrants outstanding at March 31, 2018	600	13.13		3.22
Warrants outstanding and expected to vest	600	13.13		3.22

A summary of time-based and performance-based grants as of March 31, 2018 and related activity during the six months then ended, under HRG’s and Spectrum Brands’ incentive plans are as follows (share amounts in thousands):

	HRG					Spectrum Brands
Time-based grants	Units	Weighted Average Grant Date Fair Value		Fair Value at Grant Date		Units	Weighted Average Grant Date Fair Value		Fair Value at Grant Date
Stock option awards	—	$	—	$	—	—	$	—	$	—
Restricted stock awards	24	16.85		0.4		—	—		—
Restricted stock units	—	—		—		93	113.28		10.5
Total time-based grants	24			$	0.4	93			$	10.5

	Spectrum Brands
Performance-based grants	Units	Weighted Average Grant Date Fair Value		Fair Value at Grant Date
Vesting in less than 12 months	—	$	—	$	—
Vesting in 12 to 24 months	115	109.45		12.6
Vesting in more than 24 months	115	109.45		12.6
Total performance-based grants	230	109.45		$	25.2

Additional Disclosures

During the six months ended March 31, 2018, HRG’s stock option awards and HRG’s restricted stock awards with a total fair value of $4.9 vested. The total intrinsic value of HRG’s share options exercised during the six months ended March 31, 2018 was $18.2, for which HRG received cash of $10.1 in settlement. During the six months ended March 31, 2017, HRG’s stock option awards and HRG’s restricted stock awards with a total fair value of $29.8 vested. The total intrinsic value of HRG’s share options exercised during the six months ended March 31, 2017 was $2.8, for which HRG received cash of $5.5 in settlement.

Under HRG’s executive compensation plan for the six months ended March 31, 2018, executives will be paid in cash. In addition, at the discretion of the Board, executives may from time to time be granted stock, stock options, and shares of restricted stock.

As of March 31, 2018, HRG had $0.7 of total unrecognized compensation cost related to unvested share-based compensation agreements previously granted, which is expected to be recognized over a weighted-average period of 1.11 years.

The fair values of HRG’s restricted stock and restricted stock unit awards are determined based on the market price of HRG’s common stock on the grant date. The fair value of HRG’s stock option awards and warrants are determined using the Black-Scholes option pricing model.

The following assumptions were used in the determination of these grant date fair values for HRG’s options awarded using the Black-Scholes option pricing model:

	Six months ended March 31,
	2018	2017
Risk-free interest rate	0.00%	1.80% to 2.25%
Assumed dividend yield	—%	—%
Expected option term	0.0 years	5.0 to 6.5 years
Volatility	—%	35.1% to 37.5%

The weighted-average remaining contractual term of HRG’s outstanding stock option awards and warrants at March 31, 2018 was 3.70 years.

Spectrum Brands measures share-based compensation expense of restricted stock units based on the fair value of the awards, as determined by the market price of the Spectrum Brands’ shares on the grant date and recognizes these costs on a straight-line basis over the requisite service period of the awards. Certain of Spectrum Brands’ restricted stock units are performance-based awards that are dependent upon achieving specified financial metrics over a designated period of time. In addition to restricted stock units, Spectrum Brands also provides for a portion of its annual management incentive compensation plan to be paid in common stock of Spectrum Brands, in lieu of cash payment, and is considered a liability plan.

The total market value Spectrum Brands’ restricted stock units on the dates of the grants was approximately $69.5. The remaining unrecognized pre-tax compensation cost related to restricted stock units at March 31, 2018 was $3.5.

A summary of time-based and performance-based grants as of March 31, 2018 and related activity during the six months then ended, under HRG’s and Spectrum Brands’ incentive plans are as follows (share amounts in thousands):

	HRG					Spectrum Brands
Time-based grants	Units	Weighted Average Grant Date Fair Value		Fair Value at Grant Date		Units	Weighted Average Grant Date Fair Value		Fair Value at Grant Date
Stock option awards	—	$	—	$	—	—	$	—	$	—
Restricted stock awards	24	16.85		0.4		—	—		—
Restricted stock units	—	—		—		93	113.28		10.5
Total time-based grants	24			$	0.4	93			$	10.5

	Spectrum Brands
Performance-based grants	Units	Weighted Average Grant Date Fair Value		Fair Value at Grant Date
Vesting in less than 12 months	—	$	—	$	—
Vesting in 12 to 24 months	115	109.45		12.6
Vesting in more than 24 months	115	109.45		12.6
Total performance-based grants	230	109.45		$	25.2

HGI

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Assumptions Used in Determination of Grant Date Fair Values Using Black-Scholes Option Pricing Model

The following assumptions were used in the determination of these grant date fair values for HRG’s options awarded using the Black-Scholes option pricing model:

	Six months ended March 31,
	2018	2017
Risk-free interest rate	0.00%	1.80% to 2.25%
Assumed dividend yield	—%	—%
Expected option term	0.0 years	5.0 to 6.5 years
Volatility	—%	35.1% to 37.5%