Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 02/07/2017
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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, 2016
 
42

 
$
12.33

 
577

 
$
94.97

Granted
 
—

 
—

 
688

 
126.97

Vested/Exercised
 
(42
)
 
12.33

 
(477
)
 
109.31

Forfeited or Expired
 
—

 
—

 
2

 
110.02

Restricted stock units outstanding at December 31, 2016
 
—

 
—

 
790

 
114.21

A summary of warrants outstanding as of December 31, 2016 and related activity during the three months then ended, under HRG‘s incentive plan are as follows (share amounts in thousands):
 
 
HRG
Warrants
 
Units
 
Weighted Average Exercise Price
 
Weighted
Average Grant
Date Fair Value
Warrants outstanding at September 30, 2016
 
1,200

 
$
13.13

 
$
3.22

Warrants outstanding at December 31, 2016
 
1,200

 
13.13

 
3.22

Warrants outstanding and expected to vest
 
1,200

 
13.13

 
3.22

HRG
During the three months ended December 31, 2016, HRG granted stock option awards and restricted stock awards representing approximately 318 thousand and 25 thousand, 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, 2016 on their respective grant dates was approximately $2.3. During the three months ended December 31, 2016, stock option awards and restricted stock awards with a total fair value of $23.1 vested. The total intrinsic value of share options exercised during the three months ended December 31, 2016 was $0.2, for which HRG received cash of $1.0 in settlement.
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 stock options exercised during the three months ended December 31, 2015 was $2.1, for which HRG received cash of $3.2 in settlement.
Under HRG’s executive bonus plan for the fiscal year ending September 30, 2017, executives will be paid in cash. In addition, executives may also be granted stock, stock options and restricted stock shares.
As of December 31, 2016, there was approximately $3.9 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 1.27 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:
 
Three months ended December 31,
 
2016
 
2015
Risk-free interest rate
1.80% to 2.25%
 
1.65% to 1.74%
Assumed dividend yield
—%
 
—%
Expected option term
5.0 to 6.5 years
 
5.0 to 5.5 years
Volatility
35.1% to 37.5%
 
37.4% to 37.9%
The weighted-average remaining contractual term of outstanding stock option awards and warrants at December 31, 2016 was
5.07 years.

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