HRG
During the three months ended December 31, 2015, HRG granted stock option awards, restricted stock awards and restricted stock unit awards representing approximately 28 thousand, 99 thousand and 6 thousand shares, respectively. All of these grants are time based, and vest either immediately, or over a period of up to 3 years. The total fair value of the stock grants during the three months ended December 31, 2015 on their respective grant dates was approximately $1.6. During the three months ended December 31, 2015, stock option awards and restricted stock awards with a total fair value of $28.1 vested. The total intrinsic value of share options exercised during the three months ended December 31, 2015 was $2.1, for which HRG received cash of $3.2 in settlement.
During the three months ended December 31, 2014, HRG granted stock option awards, restricted stock awards and restricted stock unit awards representing approximately 822 thousand, 1,885 thousand and 6 thousand shares, respectively. All of these grants are time based, and vest either immediately, or over a period of up to 3 years. The total fair value of the stock grants during the three months ended December 31, 2014 on their respective grant dates was approximately $29.6. During the three months ended December 31, 2014, stock option awards and restricted stock awards with a total fair value of $25.7 vested. The total intrinsic value of stock options exercised during the three months ended December 31, 2014 was $2.2, for which HRG received cash of $1.9 in settlement.
Under HRG’s executive bonus plan for the fiscal year ending September 30, 2016, executives will be paid in cash, stock, stock options and restricted stock shares. The equity grants are expected to be granted in the first quarter of the fiscal year ending September 30, 2017, and to vest, either immediately, or between 1 and 3 years from the grant date.
As of December 31, 2015, there was approximately $13.4 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 1.35 years.
The fair values of 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 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 options awarded using the Black-Scholes option pricing model:
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| | | |
| Three months ended December 31, |
| 2015 | | 2014 |
Risk-free interest rate | 1.65% to 1.74% | | 1.58% to 1.87% |
Assumed dividend yield | —% | | —% |
Expected option term | 5.0 to 5.5 years | | 5.0 to 6.5 years |
Volatility | 37.4% to 37.9% | | 38.0% to 39.0% |
The weighted-average remaining contractual term of outstanding stock option awards and warrants at December 31, 2015 was 7.43 years.
Spectrum Brands
Spectrum Brands granted restricted stock units representing approximately 442 thousand shares during the three months ended December 31, 2015. Of these grants, 112 thousand restricted stock units vested immediately and 33 thousand restricted stock units are time-based and vest within a period of 1 year. The remaining 297 thousand that are both performance and time-based and vest over a period ranging from 1 to 2 years. The total market value of the restricted stock units on the dates of the grants was approximately $42.1. The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2015 was $44.5.
Spectrum Brands granted restricted stock units representing approximately 233 thousand shares during the three months ended December 31, 2014. Of these grants, 111 thousand restricted stock units vested immediately and 118 thousand restricted stock units are time-based and vest over a period of 1 to 3 years. The remaining 4 thousand restricted stock units are performance and time-based and vest over a period of up to 2 years. The total market value of the restricted shares on the date of the grant was approximately $21.1. The remaining unrecognized pre-tax compensation cost related to restricted stock units at December 31, 2015 was $17.1.
The fair value of restricted stock units are determined based on the market price of Spectrum Brands’ common stock on the grant date.
