SEC Filings
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| 10-Q | |||||||||||||||||||||||||||||||||
| HRG GROUP, INC. filed this Form 10-Q on 05/05/2017 | |||||||||||||||||||||||||||||||||
| Entire Document | |||||||||||||||||||||||||||||||||
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awards, restricted stock units or restricted stock awards during the three months ended March 31, 2016. 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 six months ended March 31, 2016 on their respective grant dates was approximately $1.6. During the six months ended March 31, 2016, stock option awards and restricted stock awards with a total fair value of $30.3 vested. The total intrinsic value of stock options exercised during the six months ended March 31, 2016 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 shares of restricted stock. As of March 31, 2017, there was approximately $2.1 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 1.37 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:
The weighted-average remaining contractual term of outstanding stock option awards and warrants at March 31, 2017 was 4.76 years. On November 17, 2016, the Company and Mr. Asali entered into a Transition Agreement (the “Transition Agreement”), pursuant to which Mr. Asali was expected to leave his positions with the Company and its subsidiaries in the second half of fiscal 2017. On April 14, 2017, Mr. Asali ceased his employment with the Company and resigned from the Board of Directors of the Company and its subsidiaries. In accordance with the Transition Agreement, for the Company’s fiscal 2017, Mr. Asali received a cash bonus of $3.0 on March 31, 2017, and Mr. Asali’s options and restricted stock that were scheduled to vest and settle in November 29, 2017 vested and settled on March 31, 2017. Spectrum Brands Spectrum Brands granted restricted stock units representing approximately 2 thousand and 690 thousand shares during the three and six months ended March 31, 2017, respectively. The 690 thousand restricted stock units granted during the six months ended March 31, 2017 included 81 thousand restricted stock units that vested immediately and 212 thousand restricted stock units that are time-based and vest over a period of less than 1 year. The remaining 397 thousand are both performance and time-based and vest over a period of 1 to 3 years. The total market value of the restricted stock units on the dates of the grants was approximately $87.5. The remaining unrecognized pre-tax compensation cost related to restricted stock units at March 31, 2017 was $43.9. Spectrum Brands granted restricted stock units representing approximately 130 thousand and 572 thousand shares during the three and six months ended March 31, 2016, respectively. The 572 thousand restricted stock units granted during the six months ended March 31, 2016 included 190 thousand restricted stock units that vested immediately and 48 thousand restricted stock units are time-based and vest within a period of 1 year. The remaining 334 thousand shares 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 $54.2. The remaining unrecognized pre-tax compensation cost related to restricted stock units at March 31, 2016 was $40.2. The fair value of restricted stock units is determined based on the market price of Spectrum Brands’ common stock on the grant date. (11) Income Taxes For the three and six months ended March 31, 2017, the Company’s effective tax rate of 94.4% and 93.8%, respectively, differed from the expected U.S. statutory tax rate of 35.0% and was primarily impacted by U.S. pretax losses in the Company’s Corporate and Other and Insurance segments where the tax benefits were not more-likely-than-not to be realized resulting in the recording of valuation allowance. Additionally, the Company determined that the deferred tax assets of the Insurance segment at the beginning of the fiscal year were no longer more-likely-than-not to be realized and established a full valuation allowance against its deferred tax assets during the three and six months ended March 31, 2017. The increase in income tax expense for the three and six months ended March 31, 2017 was principally due to current year losses from our Corporate and Other and Insurance segments in the 30 | |||||||||||||||||||||||||||||||||
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