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Acquisitions (Tables) | 9 Months Ended
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Jul. 01, 2012
Acquisitions [Abstract] |
Summarization of provisional and final amounts on assets acquired and liabilities at fair value |
|  | Provisional Amounts |  |  | 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 |
Company's pro forma results |
|  | Nine Months Ended July 3, 2011 |
Revenues: |  |  |  |
Reported revenues (a) |  | $ | 2,589,241 |
FGL adjustment (b) |  |  | 685,767 |
Pro forma revenues |  | $ | 3,275,008 |
Net income: |  |  |  |
Reported net income (a) |  | $ | 116,473 |
FGL adjustment (b) |  |  | 84,912 |
Pro forma net income |  | $ | 201,385 |
Basic and diluted net income per common share attributable to controlling interest: |  |  |  |
Reported net income per common share |  | $ | 0.71 |
FGL adjustment |  |  | 0.46 |
Pro forma net income per common share |  | $ | 1.17 |
(a) | Reported revenues and net income for the nine months ended July 3, 2011 include the actual results of FGL for the approximate three 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 FGL adjustments primarily reflect 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 an affiliate of OMGUK 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 a related $13,750 reserve credit facility structuring fee;
| • |  | Adjustments to eliminate interest expense on notes payable to seller and add interest expense on a new $95,000 surplus note payable (which was subsequently settled in October 2011); and
| • |  | 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.
Summary of acquisition and integration related charges incurred |
|  | Three Month Period Ended |  |  | Nine Month Period Ended |
|  | July 1, 2012 |  |  | July 3, 2011 |  |  | July 1, 2012 |  |  | July 3, 2011 |
SB/RH Merger |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Integration costs |  | $ | 1,573 |  |  | $ | 6,718 |  |  | $ | 6,766 |  |  | $ | 22,088 |
Employee termination charges |  |  | 840 |  |  |  | 310 |  |  |  | 3,356 |  |  |  | 5,206 |
Legal and professional fees |  |  | 587 |  |  |  | 360 |  |  |  | 1,508 |  |  |  | 3,949 |
|  |  | 3,000 |  |  |  | 7,388 |  |  |  | 11,630 |  |  |  | 31,243 |
FGL |  |  | — |  |  |  | 1,945 |  |  |  | — |  |  |  | 22,738 |
Spectrum Brands |  |  | — |  |  |  | 104 |  |  |  | — |  |  |  | 1,055 |
FURminator |  |  | 1,738 |  |  |  | — |  |  |  | 6,337 |  |  |  | — |
BlackFlag |  |  | 95 |  |  |  | — |  |  |  | 1,912 |  |  |  | — |
Other |  |  | 657 |  |  |  | 880 |  |  |  | 3,056 |  |  |  | 2,484 |
Total acquisition and integration related charges |  | $ | 5,490 |  |  | $ | 10,317 |  |  | $ | 22,935 |  |  | $ | 57,520 |

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