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