Condensed Financial Information of Registrant

12 Months Ended

Sep. 30, 2011

Condensed Financial Information of Registrant [Abstract]

Condensed Financial Information of Registrant

SCHEDULE I

HARBINGER GROUP INC. (Registrant Only)

CONDENSED BALANCE SHEETS

(In thousands)


	September 30,			September 30,
	2011			2010

ASSETS
Cash and cash equivalents	$	134,790		$	84,262
Short-term investments		74,889			53,965
Prepaid expenses and other current assets		1,678			1,740

Total current assets		211,357			139,967
Investments in consolidated subsidiaries		1,509,977			562,755
Advances to consolidated subsidiaries		58,773			9,434
Properties, net		410			145
Deferred charges and other assets		14,543			495

Total assets	$	1,795,060		$	712,796


LIABILITIES AND EQUITY
Accounts payable	$	366		$	1,450
Accrued and other current liabilities		33,844			3,786

Total current liabilities		34,210			5,236
Long-term debt		497,168			—
Equity conversion feature of preferred stock		75,350			—
Employee benefit obligations		6,055			5,221
Deferred income taxes		1,343			—
Other liabilities		320			684

Total liabilities		614,446			11,141

Temporary equity:
Redeemable preferred stock		292,437			—

Stockholders’ equity:
Common stock		1,393			1,392
Additional paid-in capital		872,683			855,767
Accumulated deficit		(135,347	)		(150,309	)
Accumulated other comprehensive income (loss)		149,448			(5,195	)

Total stockholders’ equity		888,177			701,655

Total liabilities and equity	$	1,795,060		$	712,796

See accompanying Report of Independent Registered Public Accounting Firm.

CONDENSED STATEMENTS OF OPERATIONS

(In thousands)


				Period from
				June 16, 2010(a)
	Year Ended			through
	September 30,			September 30,
	2011			2010

Revenues	$	—		$	—
Cost of revenues		—			—

Gross profit		—			—
Operating expenses:
General and administrative		13,883			1,438
Acquisition related charges		8,696			6,649

Total operating expenses		22,579			8,087

Operating loss		(22,579	)		(8,087	)
Other income (expense):
Equity in net income (losses) of subsidiaries		67,750			(55,772	)
Interest expense		(39,005	)		—
Other, net		28,633			195

Income (loss) before income taxes		34,799			(63,664	)
Income tax expense		4			6

Net income (loss)		34,795			(63,670	)
Less: Preferred stock dividends and accretion		19,833			—

Net income (loss) attributable to common and participating preferred stockholders	$	14,962		$	(63,670	)


(a)		Date from which the registrant’s results of operations are included in the accompanying consolidated financial statements, as discussed further in Note 1 to the consolidated financial statements.

See accompanying Report of Independent Registered Public Accounting Firm.

CONDENSED STATEMENTS OF CASH FLOWS

(In thousands)


				Period from
				June 16, 2010
	Year Ended			through
	September 30,			September 30,
	2011			2010

Cash flows from operating activities:
Net income (loss)	$	34,795		$	(63,670	)
Adjustments to reconcile net income (loss) to net cash used in operating activities:
Depreciation of properties		91			19
Stock-based compensation		116			34
Amortization of debt issuance costs		1,770			—
Amortization of debt discount		613			—
Deferred income taxes		376			881
Equity in net (income) losses of subsidiaries		(67,750	)		55,772
Dividend from subsidiary		20,000			—
Income recognized on preferred stock conversion feature		(27,910	)		—
Changes in operating assets and liabilities:
Prepaid expenses and other current assets		62			(561	)
Accounts payable and accrued and other current liabilities		15,697			989
Other operating		1,797			701

Net cash used in operating activities		(20,343	)		(5,835	)

Cash flows from investing activities:
Proceeds from investments sold, matured or repaid		101,006			30,094
Cost of investments acquired		(121,930	)		(3,989	)
Capital contributions to consolidated subsidiaries		(727,162	)		—
Advances to consolidated subsidiaries		(49,339	)		—
Capital expenditures		(345	)		(58	)

Net cash provided by (used in) investing activities		(797,770	)		26,047

Cash flows from financing activities:
Proceeds from senior secured notes		498,459			—
Proceeds from preferred stock issuance, net of issuance costs		385,973			—
Debt issuance costs		(16,207	)		—
Other financing activities		416

Net cash provided by financing activities		868,641			—

Net increase in cash and cash equivalents		50,528			20,212
Cash and cash equivalents at beginning of period		84,262			64,050

Cash and cash equivalents at end of period	$	134,790		$	84,262

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

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