Consolidating Financial Information

12 Months Ended

Sep. 30, 2013

Consolidating Financial Information [Abstract]

The following schedules present the Company’s consolidating balance sheet information at September 30, 2013 and September 30, 2012, and consolidating statements of operations information for the year ended September 30, 2013, 2012 and 2011. These schedules present the individual segments of the Company and their contribution to the consolidated financial statements. Amounts presented will not necessarily be the same as those in the individual financial statements of the Company’s subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests. In addition, some of the Company’s subsidiaries use a classified balance sheet which also leads to differences in amounts reported for certain line items.

The Corporate and Other column primarily reflects the parent company’s investment in its subsidiaries, invested cash portfolio and corporate long term debt. The elimination adjustments are for intercompany assets and liabilities, interest and dividends, the parent company’s investment in capital stocks of subsidiaries, and various reclasses of debit or credit balances to the amounts in consolidation. Purchase accounting adjustments have been pushed down to the appropriate subsidiary.

Harbinger Group Inc. - Condensed Consolidating Balance Sheet Information



September 30, 2013	Consumer Products		Insurance		Energy		Financial Services		Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	16,282.3	$	—	$	389.3	$	42.3	$	(248.0	)	$	16,465.9
Investments in subsidiaries and affiliates	—		62.0		—		—		2,012.9		(2,074.9		)	—
Affiliated loans and receivables	—		150.1		—		0.9		—		(151.0		)	—
Cash and cash equivalents	207.3		1,248.3		18.7		166.5		258.9		—			1,899.7
Receivables, net	546.9		—		22.2		1.2		41.0		—			611.3
Inventories, net	632.9		—		—		—		—		—			632.9
Accrued investment income	—		159.3		—		2.3		—		(0.4		)	161.2
Reinsurance recoverable	—		2,363.7		—		—		—		—			2,363.7
Deferred tax assets	33.0		260.4		—		—		—		—			293.4
Properties, including oil and natural gas properties, net	412.5		7.0		572.6		0.7		0.5		—			993.3
Goodwill	1,476.7		—		—		—		—		—			1,476.7
Intangibles, including DAC and VOBA, net	2,163.2		565.9		—		—		—		—			2,729.1
Other assets	154.2		84.1		4.1		11.3		27.9		—			281.6
Total assets	$	5,626.7	$	21,183.1	$	617.6	$	572.2	$	2,383.5	$	(2,474.3	)	$	27,908.8



Liabilities and Equity:
Insurance reserves	$	—	$	18,895.9	$	—	$	—		$	—	$	—		$	18,895.9
Debt	3,218.9		300.0		271.2		181.8			924.2		—			4,896.1
Accounts payable and other current liabilities	849.4		52.9		32.8		6.3			71.3		—			1,012.7
Equity conversion feature of preferred stock	—		—		—		—			330.8		—			330.8
Employee benefit obligations	96.6		—		—		—			3.0		—			99.6
Deferred tax liabilities	492.8		—		—		—			—		—			492.8
Other liabilities	28.9		640.2		25.4		23.3			0.2		—			718.0
Affiliated debt and payables	—		0.8		102.2		293.3			—		(396.3		)	—
Total liabilities	4,686.6		19,889.8		431.6		504.7			1,329.5		(396.3		)	26,445.9
Temporary equity	—		—		0.1		—			329.3		—			329.4
Total stockholders’ equity	531.0		1,293.3		185.9		67.8			724.7		(2,078.0		)	724.7
Noncontrolling interests	409.1		—		—		(0.3		)	—		—			408.8
Total permanent equity	940.1		1,293.3		185.9		67.5			724.7		(2,078.0		)	1,133.5
Total liabilities and equity	$	5,626.7	$	21,183.1	$	617.6	$	572.2		$	2,383.5	$	(2,474.3	)	$	27,908.8



September 30, 2012	Consumer Products		Insurance		Energy		Financial Services		Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	16,556.7	$	—	$	180.1	$	181.6	$	—		$	16,918.4
Investment in subsidiaries and affiliates	—		32.0		—		—		1,858.2		(1,890.2		)	—
Affiliated loans and receivables	—		150.1		—		—		—		(150.1		)	—
Cash and cash equivalents	158.0		1,054.6		—		12.4		245.7		—			1,470.7
Receivables, net	373.4		41.0		—		—		—		—			414.4
Inventories, net	452.6		—		—		—		—		—			452.6
Accrued investment income	—		191.6		—		—		—		—			191.6
Reinsurance recoverable	—		2,363.1		—		—		—		—			2,363.1
Deferred tax assets	28.2		279.6		—		—		4.9		—			312.7
Properties, including oil and natural gas properties, net	214.0		6.9		—		0.4		0.3		—			221.6
Goodwill	694.2		—		—		—		—		—			694.2
Intangibles, including DAC and VOBA, net	1,715.0		273.5		—		—		—		—			1,988.5
Other assets	116.2		41.2		—		2.2		13.0		—			172.6
Total assets	$	3,751.6	$	20,990.3	$	—	$	195.1	$	2,303.7	$	(2,040.3	)	$	25,200.4

Liabilities and Equity:
Insurance reserves	$	—	$	19,051.0	$	—	$	—	$	—	$	—		$	19,051.0
Debt	1,669.3		—		—		—		497.7		—			2,167.0
Accounts payable and other current liabilities	594.2		93.2		—		—		66.8		—			754.2
Equity conversion feature of preferred stock	—		—		—		—		232.0		—			232.0
Employee benefit obligations	90.0		—		—		—		5.1		—			95.1
Deferred tax liabilities	377.5		—		—		—		4.9		—			382.4
Other liabilities	31.6		555.3		—		13.3		0.4		—			600.6
Affiliated debt and payables	—		—		—		150.1		—		(150.1		)	—
Total liabilities	2,762.6		19,699.5		—		163.4		806.9		(150.1		)	23,282.3
Temporary equity	—		—		—		—		319.2		—			319.2
Total stockholders’ equity	567.7		1,290.8		—		31.7		1,177.6		(1,890.2		)	1,177.6
Noncontrolling interests	421.3		—		—		—		—		—			421.3
Total permanent equity	989.0		1,290.8		—		31.7		1,177.6		(1,890.2		)	1,598.9
Total liabilities and equity	$	3,751.6	$	20,990.3	$	—	$	195.1	$	2,303.7	$	(2,040.3	)	$	25,200.4

Harbinger Group Inc. - Condensed Consolidating Statements of Operations Information



Year ended September 30, 2013	Consumer Products			Insurance			Energy			Financial Services			Corporate and Other			Eliminations			Total
Revenues:
Net consumer product sales	$	4,085.6		$	—		$	—		$	—		$	—		$	—		$	4,085.6
Oil and natural gas	—			—			90.2			—			—			—			90.2
Insurance premiums	—			58.8			—			—			—			—			58.8
Net investment income	—			715.5			—			28.9			—			(9.7		)	734.7
Net investment gains	—			511.6			—			—			—			—			511.6
Insurance and investment product fees and other	—			62.5			—			—			—			—			62.5
Total revenues	4,085.6			1,348.4			90.2			28.9			—			(9.7		)	5,543.4
Operating costs and expenses:
Consumer products cost of goods sold	2,695.3			—			—			—			—			—			2,695.3
Oil and natural gas direct operating costs	—			—			44.0			—			—			—			44.0
Benefits and other changes in policy reserves	—			531.8			—			—			—			—			531.8
Selling, acquisition, operating and general expenses	961.3			111.4			37.1			18.5			91.0			1.2			1,220.5
Impairment of oil and gas properties	—			—			54.3			—			—			—			54.3
Amortization of intangibles	77.8			182.3			—			—			—			—			260.1
Total operating costs and expenses	3,734.4			825.5			135.4			18.5			91.0			1.2			4,806.0
Operating income (loss)	351.2			522.9			(45.2		)	10.4			(91.0		)	(10.9		)	737.4
Equity in net income (losses) of subsidiaries	—			—			—			—			266.3			(266.3		)	—
Interest expense	(375.6		)	(11.5		)	(4.7		)	—			(120.1		)	—			(511.9		)
Affiliated interest expense	—			—			(5.6		)	(4.1		)	—			9.7			—
(Loss) gain from the change in the fair value of the equity conversion feature of preferred stock	—			—			—			—			(101.6		)	—			(101.6		)
Other expense, net	(3.5		)	(0.2		)	(1.3		)	—			(0.6		)	—			(5.6		)
(Loss) income from continuing operations before income taxes	(27.9		)	511.2			(56.8		)	6.3			(47.0		)	(267.5		)	118.3
Income tax expense (benefit)	27.4			161.0			—			0.1			(1.2		)	—			187.3
Net (loss) income	(55.3		)	350.2			(56.8		)	6.2			(45.8		)	(267.5		)	(69.0		)
Less: Net (loss) income attributable to noncontrolling interest	(23.6		)	—			—			0.4			—			—			(23.2		)
Net (loss) income attributable to controlling interest	(31.7		)	350.2			(56.8		)	5.8			(45.8		)	(267.5		)	(45.8		)
Less: Preferred stock dividends and accretion	—			—			—			—			48.4			—			48.4
Net (loss) income attributable to common and participating preferred stockholders	$	(31.7	)	$	350.2		$	(56.8	)	$	5.8		$	(94.2	)	$	(267.5	)	$	(94.2	)



Year ended September 30, 2012	Consumer Products			Insurance			Energy		Financial Services			Corporate and Other			Eliminations			Total
Revenues:
Net consumer product sales	$	3,252.4		$	—		$	—	$	—		$	—		$	—		$	3,252.4
Insurance premiums	—			55.3			—		—			—			—			55.3
Net investment income	—			716.2			—		8.6			—			(2.1		)	722.7
Net investment gains (losses)	—			410.0			—		—			—			—			410.0
Insurance and investment product fees and other	—			40.3			—		—			—			—			40.3
Total revenues	3,252.4			1,221.8			—		8.6			—			(2.1		)	4,480.7
Operating costs and expenses:
Consumer products cost of goods sold	2,136.8			—			—		—			—			—			2,136.8
Benefits and other changes in policy reserves	—			777.4			—		—			—			—			777.4
Selling, acquisition, operating and general expenses	750.1			123.9			—		6.1			52.6			—			932.7
Amortization of intangibles	63.7			160.6			—		—			—			—			224.3
Total operating costs and expenses	2,950.6			1,061.9			—		6.1			52.6			—			4,071.2
Operating income	301.8			159.9			—		2.5			(52.6		)	(2.1		)	409.5
Equity in net income of subsidiaries	—			—			—		—			372.0			(372.0		)	—
Interest expense	(191.9		)	(2.5		)	—		—			(56.6		)	—			(251.0		)
Affiliated interest expense	—			—			—		(2.1		)	—			2.1			—
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			—			—		—			(156.6		)	—			(156.6		)
Gain on contingent purchase price reduction	—			41.0			—		—			—			—			41.0
Other (expense) income, net	(0.9		)	0.1			—		—			(16.7		)	—			(17.5		)
Income (loss) from continuing operations before income taxes	109.0			198.5			—		0.4			89.5			(372.0		)	25.4
Income tax expense (benefit)	60.4			(145.7		)	—		—			—			—			(85.3		)
Net income	48.6			344.2			—		0.4			89.5			(372.0		)	110.7
Less: Net income attributable to noncontrolling interest	21.2			—			—		—			—			—			21.2
Net income attributable to controlling interest	27.4			344.2			—		0.4			89.5			(372.0		)	89.5
Less: Preferred stock dividends and accretion	—			—			—		—			59.6			—			59.6
Net income attributable to common and participating preferred stockholders	$	27.4		$	344.2		$	—	$	0.4		$	29.9		$	(372.0	)	$	29.9



Year ended September 30, 2011	Consumer Products			Insurance			Energy		Financial Services		Corporate and Other			Eliminations			Total
Revenues:
Net consumer product sales	$	3,186.9		$	—		$	—	$	—	$	—		$	—		$	3,186.9
Insurance premiums	—			39.0			—		—		—			—			39.0
Net investment income	—			369.8			—		—		—			—			369.8
Net investment gains (losses)	—			(166.9		)	—		—		—			—			(166.9		)
Insurance and investment product fees and other	—			48.9			—		—		—			—			48.9
Total revenues	3,186.9			290.8			—		—		—			—			3,477.7
Operating costs and expenses:
Consumer products cost of goods sold	2,058.0			—			—		—		—			—			2,058.0
Benefits and other changes in policy reserves	—			247.6			—		—		—			—			247.6
Selling, acquisition, operating and general expenses	843.3			95.8			—		—		22.7			—			961.8
Amortization of intangibles	57.7			(11.1		)	—		—		—			—			46.6
Total operating costs and expenses	2,959.0			332.3			—		—		22.7			—			3,314.0
Operating income (loss)	227.9			(41.5		)	—		—		(22.7		)	—			163.7
Equity in net income (losses) of subsidiaries	—			—			—		—		116.1			(116.1		)	—
Interest expense	(208.4		)	(1.9		)	—		—		(39.0		)	—			(249.3		)
Affiliated interest income	—			—			—		—		—			—			—
Gain from the change in the fair value of the equity conversion feature of preferred stock	—			—			—		—		27.9			—			27.9
Bargain purchase gain from business acquisition	—			158.3			—		—		—			—			158.3
Other expense, net	(2.4		)	—			—		—		(40.3		)	—			(42.7		)
Income from continuing operations before income taxes	17.1			114.9			—		—		42.0			(116.1		)	57.9
Income tax expense (benefit)	92.3			(41.7		)	—		—		—			—			50.6
Net (loss) income	(75.2		)	156.6			—		—		42.0			(116.1		)	7.3
Less: Net loss attributable to noncontrolling interest	(34.7		)	—			—		—		—			—			(34.7		)
Net (loss) income attributable to controlling interest	(40.5		)	156.6			—		—		42.0			(116.1		)	42.0
Less: Preferred stock dividends and accretion	—			—			—		—		19.8			—			19.8
Net (loss) income attributable to common and participating preferred stockholders	$	(40.5	)	$	156.6		$	—	$	—	$	22.2		$	(116.1	)	$	22.2