XML 72 R43.htm IDEA: XBRL DOCUMENT
v2.4.0.6

Derivative Financial Instruments (Tables) | 12 Months Ended
--- | ---
Sep. 30, 2012
Pretax Impact of Derivative Instruments Designated as Cash Flow Hedges on the Accompanying Consolidated Statements of Operations, and Within AOCI | The following table summarizes the pretax impact of derivative instruments designated as cash flow hedges in the accompanying Consolidated Statements of Operations, and within AOCI, for the years ended September 30, 2012, 2011 and 2010:
Derivatives in Cash Flow Hedging Relationships |  | Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion) |  |  | Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion) |  |  | Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing) |  |  | Location of Gain (Loss) Recognized in Income on Derivatives
Year Ended September 30, |  | 2012 |  |  | 2011 |  |  | 2010 |  |  | 2012 |  |  | 2011 |  |  | 2010 |  |  | 2012 |  |  | 2011 |  |  | 2010 |  |  |
Commodity contracts |  | $ | 1,606 |  |  | $ | (1,750 | ) |  | $ | 3,646 |  |  | $ | (1,148 | ) |  | $ | 2,617 |  |  | $ | 719 |  |  | $ | 94 |  |  | $ | (47 | ) |  | $ | (1 | ) |  | Cost of goods sold Interest expense Net sales Cost of goods sold
Interest rate contracts |  |  | 15 |  |  |  | (88 | ) |  |  | (13,955 | ) |  |  | (864 | ) |  |  | (3,319 | ) |  |  | (4,439 | ) |  |  | — |  |  |  | (205 | ) (a) |  |  | (6,112 | ) (b) |
Foreign exchange contracts |  |  | 61 |  |  |  | (487 | ) |  |  | (752 | ) |  |  | (474 | ) |  |  | (131 | ) |  |  | (812 | ) |  |  | — |  |  |  | — |  |  |  | — |  |
Foreign exchange contracts |  |  | (3,506 | ) |  |  | (3,667 | ) |  |  | (4,560 | ) |  |  | (611 | ) |  |  | (12,384 | ) |  |  | 2,481 |  |  |  | — |  |  |  | — |  |  |  | — |  |
Total |  | $ | (1,824 | ) |  | $ | (5,992 | ) |  | $ | (15,621 | ) |  | $ | (3,097 | ) |  | $ | (13,217 | ) |  | $ | (2,051 | ) |  | $ | 94 |  |  | $ | (252 | ) |  | $ | (6,113 | ) |  |
(a) | Reclassified from AOCI associated with the prepayment of portions of Spectrum Brands’ senior credit facility (see Note 12).
(b) | Includes $(4,305) reclassified from AOCI associated with the refinancing of Spectrum Brands’ senior credit facility (see Note 12).
Summary of Change in Fair Value of Derivative Instruments of FGL Included in Consolidated Statements of Operations | During the years ended September 30, 2012, 2011 and 2010, the Company recognized the following gains (losses) on those derivatives:
|  | Amount of Gain (Loss) Recognized in Income on Derivatives |  |  |
|  | Year Ended September 30, |  |  |
Derivatives Not Designated as Hedging Instruments |  | 2012 |  |  | 2011 |  |  | 2010 |  |  | Location of Gain ( Loss) Recognized in Income on Derivatives
Commodity contracts |  | $ | — |  |  | $ | — |  |  | $ | 153 |  |  | Cost of goods sold
Foreign exchange contracts |  |  | 5,916 |  |  |  | (5,052 | ) |  |  | (42,039 | ) |  | Other expense, net
Equity conversion feature of preferred stock |  |  | (156,600 | ) |  |  | 27,910 |  |  |  | — |  |  | (Increase) decrease in fair value of equity conversion feature of preferred stock
Total |  | $ | (150,684 | ) |  | $ | 22,858 |  |  | $ | (41,886 | ) |  |
Consumer Products and Other [Member] |
Fair Value of Outstanding Derivative Contracts in Consolidated Balance Sheet | The fair value of outstanding derivative contracts recorded in the “Consumer Products and Other” sections of the accompanying Consolidated Balance Sheets were as follows:
|  |  |  | September 30, |
Asset Derivatives |  | Classification |  | 2012 |  |  | 2011 |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Commodity contracts |  | Receivables |  | $ | 985 |  |  | $ | 274 |
Commodity contracts |  | Deferred charges and other assets |  |  | 1,017 |  |  |  | — |
Foreign exchange contracts |  | Receivables |  |  | 1,194 |  |  |  | 3,189 |
Total asset derivatives designated as hedging instruments |  |  |  |  | 3,196 |  |  |  | 3,463 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Receivables |  |  | 41 |  |  |  | — |
Total asset derivatives |  |  |  | $ | 3,237 |  |  | $ | 3,463 |
|  |  |  | September 30, |
Liability Derivatives |  | Classification |  | 2012 |  |  | 2011 |
Derivatives designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Interest rate contracts |  | Accounts payable |  | $ | — |  |  | $ | 1,246 |
Interest rate contracts |  | Accrued and other current liabilities |  |  | — |  |  |  | 708 |
Commodity contracts |  | Accounts payable |  |  | 9 |  |  |  | 1,228 |
Commodity contracts |  | Other liabilities |  |  | — |  |  |  | 4 |
Foreign exchange contracts |  | Accounts payable |  |  | 3,063 |  |  |  | 2,698 |
Total liability derivatives designated as hedging instruments |  |  |  |  | 3,072 |  |  |  | 5,884 |
Derivatives not designated as hedging instruments: |  |  |  |  |  |  |  |  |  |
Foreign exchange contracts |  | Accounts payable |  |  | 3,967 |  |  |  | 10,945 |
Foreign exchange contracts |  | Other liabilities |  |  | 2,926 |  |  |  | 12,036 |
Equity conversion feature of preferred stock |  | Equity conversion feature of preferred stock |  |  | 231,950 |  |  |  | 75,350 |
Total liability derivatives |  |  |  | $ | 241,915 |  |  | $ | 104,215 |
Call options [Member] |
FGL's Exposure to Credit Loss on Call Options Held | Information regarding FGL’s exposure to credit loss on the call options it holds is presented in the following table:
|  |  |  | September 30, 2012 |  |  | September 30, 2011 |
Counterparty |  | Credit Rating (Moody’s/S&P) |  | Notional Amount |  |  | Fair Value |  |  | Notional Amount |  |  | Fair Value |
Bank of America |  | Baa2/A- |  | $ | 1,884,047 |  |  | $ | 64,101 |  |  | $ | 1,692,142 |  |  | $ | 14,637 |
Deutsche Bank |  | A2/A+ |  |  | 1,816,532 |  |  |  | 61,704 |  |  |  | 1,463,596 |  |  |  | 11,402 |
Morgan Stanley |  | Baa1/A- |  |  | 1,634,686 |  |  |  | 51,630 |  |  |  | 1,629,247 |  |  |  | 15,373 |
Royal Bank of Scotland |  | Baa1/A- |  |  | 353,875 |  |  |  | 19,595 |  |  |  | — |  |  |  | — |
Barclay’s Bank |  | A2/A+ |  |  | 131,255 |  |  |  | 3,081 |  |  |  | 385,189 |  |  |  | 4,105 |
Credit Suisse |  | A2/A |  |  | 10,000 |  |  |  | 556 |  |  |  | 327,095 |  |  |  | 2,785 |
Nomura |  | Baa2/A |  |  | — |  |  |  | — |  |  |  | 107,000 |  |  |  | 4,033 |
|  |  |  | $ | 5,830,395 |  |  | $ | 200,667 |  |  | $ | 5,604,269 |  |  | $ | 52,335 |
Insurance and Financial Services [Member] |
Fair Value of Outstanding Derivative Contracts in Consolidated Balance Sheet | The carrying amounts (which equal fair value) of derivative instruments of FGL, including derivative instruments embedded in FIA contracts, is as follows:
|  | Year Ended September 30, |
|  | 2012 |  |  | 2011 |
Assets: |  |  |  |  |  |  |  |
Derivative investments: |  |  |  |  |  |  |  |
Call options |  | $ | 200,667 |  |  | $ | 52,335 |
Liabilities: |  |  |  |  |  |  |  |
Contractholder funds: |  |  |  |  |  |  |  |
FIA embedded derivative |  | $ | 1,550,805 |  |  | $ | 1,396,340 |
Other liabilities: |  |  |  |  |  |  |  |
Futures contracts |  |  | 928 |  |  |  | 3,828 |
Available-for-sale embedded derivative |  |  | — |  |  |  | 400 |
|  | $ | 1,551,733 |  |  | $ | 1,400,568 |
Summary of Change in Fair Value of Derivative Instruments of FGL Included in Consolidated Statements of Operations | The change in fair value of derivative instruments included in the accompanying Consolidated Statements of Operations is as follows:
|  | Year Ended September 30, |
|  | 2012 |  |  | 2011 |
Revenues: |  |  |  |  |  |  |  |
Net investment gains (losses): |  |  |  |  |  |  |  |
Call options |  | $ | 100,030 |  |  | $ | (142,665 | )
Futures contracts |  |  | 46,022 |  |  |  | (28,087 | )
|  |  | 146,052 |  |  |  | (170,752 | )
Net investment income: |  |  |  |  |  |  |  |
Available-for-sale embedded derivatives |  |  | 400 |  |  |  | 19 |
|  | $ | 146,452 |  |  | $ | (170,733 | )
Benefits and other changes in policy reserves: |  |  |  |  |  |  |  |
FIA embedded derivatives |  | $ | 154,465 |  |  | $ | (69,968 | )

X
- Definition Schedule of cash flow hedging instruments statements of financial performance location. + References No definition available. + Details
Name: | hrg_ScheduleOfCashFlowHedgingInstrumentsStatementsOfFinancialPerformanceLocationTableTextBlock
Namespace Prefix: | hrg_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Schedule of exposure to credit loss on derivative instrument. + References No definition available. + Details
Name: | hrg_ScheduleOfExposureToCreditLossOnDerivativeInstrumentTableTextBlock
Namespace Prefix: | hrg_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5618551-113959 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 205G -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44C -Subparagraph b -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624171-113959 + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsGainLossInStatementOfFinancialPerformanceTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 205G -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=7476318&loc=SL5624163-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 133 -Paragraph 44C -Subparagraph a -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. + Details
Name: | us-gaap_ScheduleOfDerivativeInstrumentsInStatementOfFinancialPositionFairValueTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration