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Fair Value of Financial Instruments (Tables)

9 Months Ended

Jul. 01, 2012

Fair Value of Financial Instruments [Abstract]

Assets and liabilities carrying at fair value on recurring basis

		July 1, 2012
		Level 1				Level 2				Level 3				Fair Value				Carrying Amount
Assets
Consumer Products and Other
Cash and cash equivalents		$	262,261			$	—			$	—			$	262,261			$	262,261
Contingent purchase price reduction receivable			—				—				41,000				41,000				41,000
Short-term investments (including related interest receivable of $8)
Equity securities — trading			162,518				—				—				162,518				162,518
Fixed maturity securities — held-to-maturity			—				35,005				—				35,005				35,006
Fixed maturity securities — trading			—				6,725				—				6,725				6,725
Derivatives:
Foreign exchange forward agreements			—				5,556				—				5,556				5,556
Insurance and Financial Services
Cash and cash equivalents			1,560,481				10,084				—				1,570,565				1,570,565
Fixed maturity securities, available-for-sale:
Asset-backed securities			—				63,610				759,076				822,686				822,686
Commercial mortgage-backed securities			—				538,523				—				538,523				538,523
Corporates			—				10,831,535				147,243				10,978,778				10,978,778
Hybrids			—				621,675				5,181				626,856				626,856
Municipals			—				1,246,045				55				1,246,100				1,246,100
Agency residential mortgage-backed securities			—				168,026				—				168,026				168,026
Non-agency residential mortgage-backed securities			—				549,212				615				549,827				549,827
U.S. Government			139,156				—				—				139,156				139,156
Equity securities — available-for-sale			—				242,264				—				242,264				242,264
Derivative financial instruments			—				160,565				—				160,565				160,565
Asset-backed loans and other invested assets			—				—				92,424				92,424				92,424
Total financial assets		$	2,124,416			$	14,478,825			$	1,045,594			$	17,648,835			$	17,648,836
Liabilities
Consumer Products and Other
Total debt		$	510,000			$	1,957,870			$	—			$	2,467,870			$	2,324,655
Derivatives:
Foreign exchange forward agreements			—				4,037				—				4,037				4,037
Commodity swap and option agreements			—				2,693				—				2,693				2,693
Equity conversion feature of preferred stock			—				—				199,360				199,360				199,360
Redeemable preferred stock, excluding equity conversion feature			—				—				366,600				366,600				313,450
Insurance and Financial Services
Derivatives:
FIA embedded derivatives, included in contractholder funds			—				—				1,486,465				1,486,465				1,486,465
Investment contracts, included in contractholder funds			—				—				12,339,474				12,339,474				13,799,351
Total financial liabilities		$	510,000			$	1,964,600			$	14,391,899			$	16,866,499			$	18,130,011

		September 30, 2011
		Level 1				Level 2				Level 3				Fair Value				Carrying Amount
Assets
Consumer Products and Other
Cash and cash equivalents		$	321,352			$	—			$	—			$	321,352			$	321,352
Short-term investments (including related interest receivable of $9)
Equity securities — trading			238,062				24,023				—				262,085				262,085
Fixed maturity securities — held to maturity			—				75,899				—				75,899				75,897
Fixed maturity securities — trading			—				12,665				—				12,665				12,665
Derivatives:
Foreign exchange forward agreements			—				3,189				—				3,189				3,189
Commodity swap and option agreements			—				274				—				274				274
Insurance and Financial Services
Cash and cash equivalents			813,239				2,768				—				816,007				816,007
Fixed maturity securities, available-for-sale:
Asset-backed securities			—				125,966				374,518				500,484				500,484
Commercial mortgage-backed securities			—				565,577				—				565,577				565,577
Corporates			—				11,696,090				159,684				11,855,774				11,855,774
Hybrids			—				654,084				5,205				659,289				659,289
Municipals			—				936,484				—				936,484				936,484
Agency residential mortgage-backed securities			—				218,713				3,312				222,025				222,025
Non-agency residential mortgage-backed securities			—				440,758				3,759				444,517				444,517
U.S. Government			183,324				—				—				183,324				183,324
Equity securities — available-for-sale			—				287,043				—				287,043				287,043
Derivative financial instruments			—				52,335				—				52,335				52,335
Other invested assets			—				—				44,279				44,279				44,279
Total financial assets		$	1,555,977			$	15,095,868			$	590,757			$	17,242,602			$	17,242,600
Liabilities
Consumer Products and Other
Total debt		$	500,000			$	1,635,528			$	—			$	2,135,528			$	2,048,780
Derivatives:
Foreign exchange forward agreements			—				25,679				—				25,679				25,679
Interest rate swap agreements			—				1,954				—				1,954				1,954
Commodity swap and option agreements			—				1,232				—				1,232				1,232
Equity conversion feature of preferred stock			—				—				75,350				75,350				75,350
Redeemable preferred stock, excluding equity conversion feature			—				—				337,060				337,060				292,437
Insurance and Financial Services
Derivatives:
FIA embedded derivatives, included in contractholder funds			—				—				1,396,340				1,396,340				1,396,340
Futures contracts			—				3,828				—				3,828				3,828
Available-for-sale embedded derivatives			—				—				400				400				400
Investment contracts, included in contractholder funds			—				—				11,992,013				11,992,013				13,153,630
Note payable			—				95,000				—				95,000				95,000
Total financial liabilities		$	500,000			$	1,763,221			$	13,801,163			$	16,064,384			$	17,094,630

Fair value of embedded derivatives

		Fair Value at July 1, 2012				Valuation technique		Unobservable input(s)		Range (Weighted average)
Assets
Contingent purchase price reduction receivable		$	41,000			Discounted cash flow		Probability of collection Expected term Discount rate Credit insurance risk premium		88% - 96% (92%) 1 year 0.92% 11.7%
Asset-backed securities			759,076			Broker-quoted		Offered quotes		76.77% - 100.53% (94.39%)
Corporates			127,572			Broker-quoted		Offered quotes		0% - 121.15% (78.73%)
			19,671			Market pricing		Quoted prices		101.07% - 150.08% (105.15%)
Hybrids			5,181			Market pricing		Quoted prices		103.63%
Municipals			55			Broker-quoted		Offered quotes		121.36% - 121.36% (121.36%)
Non-agency residential- mortgage-backed securities			615			Broker-quoted		Offered quotes		34.34% - 34.34% (34.34%)
Total		$	953,170
Liabilities
FIA embedded derivatives, included in contractholder funds		$	1,486,465			Discounted cash flow		Market value of option		0% - 35.40% (2.91%)
								SWAP rates Mortality multiplier Surrender rates		0.97% - 1.79% (1.37%) 70% - 70% (70%) 2% - 50% (7%)
								Non-performance spread		0.25% - 0.25% (0.25%)
Equity conversion feature of preferred stock			199,360			Monte Carlo simulation / Option model		Annualized volatility of equity Discount yield Non-cash accretion rate Calibration adjustment		40% 12.0% - 12.7% (12.2%) 0% - 2% 15% - 17% (15.5%)
Total		$	1,685,825

Changes in fair value of financial instruments

		Three Month Period Ended July 1, 2012
		Balance at Beginning of Period				Total Gains (Losses)								Net Purchases, Sales & Settlements				Net Transfer  In (Out) of Level 3 (a)				Balance at End of Period
						Included in Earnings				Included in AOCI
Assets
Contingent purchase price reduction receivable		$	41,000			$	—			$	—			$	—			$	—			$	41,000
Fixed maturity securities, available-for-sale:
Asset-backed securities			502,938				—				919				251,545				3,674				759,076
Corporates			120,180				184				(3,662	)			(9,747	)			40,288				147,243
Hybrids			5,100				—				81				—				—				5,181
Municipals			10,308				—				—				—				(10,253	)			55
Agency residential mortgage-backed securities			3,330				—				—				—				(3,330	)			—
Non-agency residential mortgage-backed securities			1,217				(126	)			87				(563	)			—				615
Total assets at Level 3 fair value		$	684,073			$	58			$	(2,575	)		$	241,235			$	30,379			$	953,170
Liabilities
FIA embedded derivatives, included in contractholder funds		$	(1,496,803	)		$	10,338			$	—			$	—			$	—			$	(1,486,465	)
Available-for-sale embedded derivatives			(376	)			376				—				—				—				—
Equity conversion feature of preferred stock			(73,820	)			(125,540	)			—				—				—				(199,360	)
Total liabilities at Level 3 fair value		$	(1,570,999	)		$	(114,826	)		$	—			$	—			$	—			$	(1,685,825	)

		Nine Month Period Ended July 1, 2012
		Balance at Beginning of Period				Total Gains (Losses)								Net Purchases, Sales & Settlements				Net Transfer  In (Out) of Level 3 (a)				Balance at End of Period
						Included in Earnings				Included in AOCI
Assets
Contingent purchase price reduction receivable		$	—			$	41,000			$	—			$	—			$	—			$	41,000
Fixed maturity securities available-for-sale:
Asset-backed securities			374,518				—				6,985				363,076				14,497				759,076
Corporates			159,684				207				(5,927	)			(36,664	)			29,943				147,243
Hybrids			5,205				—				(24	)			—				—				5,181
Municipals			—				(2	)			72				10,177				(10,192	)			55
Agency residential mortgage-backed securities			3,312				—				18				—				(3,330	)			—
Non-agency residential mortgage-backed securities			3,759				(126	)			4				(777	)			(2,245	)			615
Total assets at Level 3 fair value		$	546,478			$	41,079			$	1,128			$	335,812			$	28,673			$	953,170
Liabilities
FIA embedded derivatives, included in contractholder funds		$	(1,396,340	)		$	(90,125	)		$	—			$	—			$	—			$	(1,486,465	)
Available-for-sale embedded derivatives			(400	)			400				—				—				—				—
Equity conversion feature of preferred stock			(75,350	)			(124,010	)			—				—				—				(199,360	)
Total liabilities at Level 3 fair value		$	(1,472,090	)		$	(213,735	)		$	—			$	—			$	—			$	(1,685,825	)

(a) The net transfers in and out of Level 3 during the three and nine month periods ended July 1, 2012 were exclusively to or from Level 2.

		Three and Nine Month Periods Ended July 3, 2011
		Balance at FGL Acquisition Date				Total Gains (Losses)								Net Purchases, Sales & Settlements				Net Transfer  In (Out) of Level 3 (a)				Balance at End of Period
						Included in Earnings				Included in AOCI
Assets
Fixed maturity securities, available-for-sale:
Asset-backed securities		$	399,967			$	—			$	6,385			$	(8,128	)		$	(10,206	)		$	388,018
Corporates			188,439				—				10,722				(2,635	)			—				196,526
Hybrids			8,305				—				(38	)			—				(3,038	)			5,229
Agency residential mortgage-backed securities			3,271				—				(8	)			—				—				3,263
Non-agency residential mortgage-backed securities			18,519				—				2,351				(1,119	)			—				19,751
Total assets at Level 3 fair value		$	618,501			$	—			$	19,412			$	(11,882	)		$	(13,244	)		$	612,787
Liabilities
FIA embedded derivatives, included in contractholder funds		$	(1,466,308	)		$	21,802			$	—			$	—			$	—			$	(1,444,506	)
Available-for-sale embedded derivatives			(419	)			8				—				—				—				(411	)
Equity conversion feature of preferred stock			—				5,960				—				(85,700	)			—				(79,740	)
Total liabilities at Level 3 fair value		$	(1,466,727	)		$	27,770			$	—			$	(85,700	)		$	—			$	(1,524,657	)

(a) The net transfers in and out of Level 3 during the three and nine month periods ended July 3, 2011 were exclusively to or from Level 2.

The gross components of purchases, sales, and settlements, net, of Level 3 financial instruments

		Three Month Period Ended July 1, 2012
		Purchases				Sales				Settlements				Net Purchases, Sales & Settlements
Assets
Fixed maturity, securities available-for-sale:
Asset-backed securities		$	262,536			$	—			$	(10,991	)		$	251,545
Corporates			—				(7,713	)			(2,034	)			(9,747	)
Non-agency residential mortgage-backed securities			—				(475	)			(88	)			(563	)
Total assets at Level 3 fair value		$	262,536			$	(8,188	)		$	(13,113	)		$	241,235

		Nine Month Period Ended July 1, 2012
		Purchases				Sales				Settlements				Net Purchases, Sales & Settlements
Assets
Fixed maturity, securities available-for-sale:
Asset-backed securities		$	394,887			$	—			$	(31,811	)		$	363,076
Corporates			1,326				(24,398	)			(13,592	)			(36,664	)
Municipals			10,197				—				(20	)			10,177
Non-agency residential mortgage-backed securities			—				(475	)			(302	)			(777	)
Total assets at Level 3 fair value		$	406,410			$	(24,873	)		$	(45,725	)		$	335,812

		Three and Nine Month Periods Ended July 3, 2011
		Purchases				Sales				Settlements				Net Purchases, Sales & Settlements
Assets
Fixed maturity, securities available-for-sale:
Asset-backed securities		$	—			$	—			$	(8,128	)		$	(8,128	)
Corporates			—				—				(2,635	)			(2,635	)
Municipals			—				—				—				—
Non-agency residential mortgage-backed securities			—				—				(1,119	)			(1,119	)
Total assets at Level 3 fair value		$	—			$	—			$	(11,882	)		$	(11,882	)
Liabilities
Equity conversion option of preferred stock		$	—			$	(85,700	)		$	—			$	(85,700	)

X

- Definition

Fair value assets and liabilities measured on recurring basis unobservable input reconciliation.

+ References

No definition available.

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X

- Definition

Fair value measurement with unobservable inputs reconciliation recurring basis asset purchases sales issuances settlements.

+ References

No definition available.

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X

- Definition

Tabular disclosure of the inputs and valuation techniques used to measure fair value, and a discussion of changes in valuation techniques and related inputs, if any, used to measure similar assets in prior periods (non-recurring basis) by class of asset or liability.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 2

-Subparagraph (bbb)

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19207-110258



Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 157

-Paragraph 33

-Subparagraph d

-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.

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X

- Definition

Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Accounting Standards Codification

-Topic 820

-SubTopic 10

-Section 50

-Paragraph 1

-URI http://asc.fasb.org/extlink&oid=7578670&loc=d3e19190-110258

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