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Acquisitions (Tables) | 12 Months Ended
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Sep. 30, 2012
Summarization of Provisional and Final Amounts on Assets Acquired and Liabilities at Fair Value | The following table summarizes the provisional and final amounts recognized at fair value for each major class of assets acquired and liabilities assumed as of the FGL Acquisition Date:
|  | Provisional Amounts |  |  | Fiscal 2012 Measurement Period Adjustments |  |  | Final Amounts |
Investments, cash and accrued investment income, including cash acquired of $1,040,470 |  | $ | 17,705,419 |  |  | $ | — |  |  | $ | 17,705,419 |
Reinsurance recoverable |  |  | 929,817 |  |  |  | 15,246 |  |  |  | 945,063 |
Intangible assets (VOBA) |  |  | 577,163 |  |  |  | — |  |  |  | 577,163 |
Deferred tax assets |  |  | 256,584 |  |  |  | (3,912 | ) |  |  | 252,672 |
Other assets |  |  | 72,801 |  |  |  | — |  |  |  | 72,801 |
Total assets acquired |  |  | 19,541,784 |  |  |  | 11,334 |  |  |  | 19,553,118 |
Contractholder funds and future policy benefits |  |  | 18,415,022 |  |  |  | — |  |  |  | 18,415,022 |
Liability for policy and contract claims |  |  | 60,400 |  |  |  | — |  |  |  | 60,400 |
Note payable |  |  | 95,000 |  |  |  | — |  |  |  | 95,000 |
Other liabilities |  |  | 475,285 |  |  |  | 4,070 |  |  |  | 479,355 |
Total liabilities assumed |  |  | 19,045,707 |  |  |  | 4,070 |  |  |  | 19,049,777 |
Net assets acquired |  |  | 496,077 |  |  |  | 7,264 |  |  |  | 503,341 |
Cash consideration, net of $5,000 re-characterized as expense |  |  | 345,000 |  |  |  | — |  |  |  | 345,000 |
Bargain purchase gain |  | $ | 151,077 |  |  | $ | 7,264 |  |  | $ | 158,341 |
Components of Net Deferred Tax Assets | The components of the net deferred tax assets as of the FGL Acquisition Date (updated for measurement period adjustments) are as follows:
Deferred tax assets: |  |  |  |
DAC |  | $ | 96,764 |
Insurance reserves and claim related adjustments |  |  | 401,659 |
Net operating losses |  |  | 128,437 |
Capital losses (carryovers and deferred) |  |  | 267,468 |
Tax credits |  |  | 75,253 |
Other deferred tax assets |  |  | 24,066 |
Total deferred tax assets |  |  | 993,647 |
Valuation allowance |  |  | (405,370 | )
Deferred tax assets, net of valuation allowance |  |  | 588,277 |
Deferred tax liabilities: |  |  |  |
VOBA |  |  | 202,007 |
Investments |  |  | 121,160 |
Other deferred tax liabilities |  |  | 12,438 |
Total deferred tax liabilities |  |  | 335,605 |
Net deferred tax assets |  | $ | 252,672 |
Selected Financial Information | The following table presents selected financial information reflecting results for FGL that are included in the Consolidated Statement of Operations for the year ended September 30, 2011:
|  | For the period April 6, 2011 to September 30, 2011 |
Total revenues |  | $ | 290,886 |
Income, net of taxes |  | $ | 23,703 |
Schedule of Total Purchase Price | The total purchase price of Russell Hobbs was approximately $597,579 determined as follows:
SBI closing price per share on June 16, 2010 |  | $ | 28.15 |
Purchase price — Russell Hobbs allocation — 20,704 shares (a)(b) |  |  | 575,203 |
Cash payment to pay off Russell Hobbs’ North American credit facility |  |  | 22,376 |
Total purchase price of Russell Hobbs |  | $ | 597,579 |
(a) | Number of shares calculated based upon conversion formula, as defined in the merger agreement, using balances as of June 16, 2010.
(b) | The fair value of 271 shares of unvested restricted stock units as they relate to post combination services will be recorded as operating expense over the remaining service period and were assumed to have no fair value for the purchase price.
Company's Pro forma Results | The following table reflects the Company’s unaudited pro forma results for Fiscal 2011 and 2010 had the results of Russell Hobbs and FGL been included for each of the full year periods, as if the respective acquisitions were completed on October 1, 2009.
|  | Year Ended September 30, |
|  | 2011 (a) |  |  | 2010 |
Revenues: |  |  |  |  |  |  |  |
Reported revenues |  | $ | 3,477,782 |  |  | $ | 2,567,011 |
FGL adjustment (b) |  |  | 685,767 |  |  |  | 953,911 |
Russell Hobbs adjustment |  |  | — |  |  |  | 543,952 |
Pro forma revenues |  | $ | 4,163,549 |  |  | $ | 4,064,874 |
Income (loss) from continuing operations: |  |  |  |  |  |  |  |
Reported income (loss) from continuing operations |  | $ | 7,379 |  |  | $ | (195,507 | )
FGL adjustment (b) |  |  | 84,912 |  |  |  | (206,441 | )
Russell Hobbs adjustment |  |  | — |  |  |  | (5,504 | )
Pro forma income (loss) from continuing operations |  | $ | 92,291 |  |  | $ | (407,452 | )
Income (loss) per common share attributable to controlling interest: |  |  |  |  |  |  |  |
Reported basic income (loss) per common share from continuing operations |  | $ | 0.11 |  |  | $ | (1.13 | )
FGL adjustment |  |  | 0.42 |  |  |  | (1.56 | )
Russell Hobbs adjustment |  |  | — |  |  |  | (0.04 | )
Pro forma basic income (loss) per common share from continuing operations |  | $ | 0.53 |  |  | $ | (2.73 | )
Pro forma diluted income (loss) per common share from continuing operations |  | $ | 0.51 |  |  | $ | (2.73 | )
(a) | Reported revenues and net income for Fiscal 2011 include the actual reported results of FGL for the approximate six month period subsequent to April 6, 2011. Reported net income also includes the $158,341 non-recurring bargain purchase gain which was recorded as of the FGL Acquisition Date, and reflects the retrospective measurement period adjustments disclosed above.
(b) | The pro forma information primarily reflects the following pro forma adjustments applied to FGL’s historical results:
| • |  | Reduction in net investment income to reflect amortization of the premium on fixed maturity securities — available-for-sale resulting from the fair value adjustment of these assets;
| • |  | Reversal of amortization associated with the elimination of FGL’s historical DAC;
| • |  | Amortization of VOBA associated with the establishment of VOBA arising from the acquisition;
| • |  | Adjustments to reflect the impacts of the recapture of the life business from OM Re and the retrocession of the majority of the recaptured business and the reinsurance of certain life business previously not reinsured to an unaffiliated third party reinsurer, including the amortization of the related $13,750 Structuring Fee;
| • |  | Adjustments to eliminate interest expense on notes payable to seller and add interest expense on the new $95,000 surplus note payable (which was subsequently settled in October 2011);
| • |  | Adjustments to reflect the full-period effect of interest expense on the initial $350,000 of 10.625% Notes issued on November 15, 2010, the proceeds of which were used to fund the FGL Acquisition; and
| • |  | Reversal of the change in the deferred tax valuation allowance included in the income tax provision.
Summary of Acquisition and Integration Related Charges Incurred | The following table summarizes acquisition and integration related charges incurred by the Company:
|  | Year Ended September 30, |
|  | 2012 |  |  | 2011 |  |  | 2010 |
SB/RH Merger |  |  |  |  |  |  |  |  |  |  |  |
Integration costs |  | $ | 10,168 |  |  | $ | 23,084 |  |  | $ | 3,777 |
Employee termination charges |  |  | 3,900 |  |  |  | 8,105 |  |  |  | 9,713 |
Legal and professional fees |  |  | 1,495 |  |  |  | 4,883 |  |  |  | 24,962 |
|  |  | 15,563 |  |  |  | 36,072 |  |  |  | 38,452 |
FGL |  |  | — |  |  |  | 22,677 |  |  |  | 331 |
Spectrum Brands |  |  | — |  |  |  | 1,129 |  |  |  | 4,284 |
FURminator |  |  | 7,938 |  |  |  | — |  |  |  | — |
BlackFlag |  |  | 3,379 |  |  |  | — |  |  |  | — |
Other |  |  | 7,956 |  |  |  | 3,721 |  |  |  | 2,034 |
Total acquisition and integration related charges |  | $ | 34,836 |  |  | $ | 63,599 |  |  | $ | 45,101 |

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