Consolidating Financial Information (Tables)

3 Months Ended

Dec. 30, 2012

Harbinger Group Inc. — Condensed Consolidating Balance Sheet Information


December 30, 2012	Consumer Products		Insurance		Other Financial Services		Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	16,929.5	$	204.8	$	82.2	$	—		$	17,216.5
Investments in subsidiaries and affiliates		—		—		—		1,667.6		(1,667.6	)		—
Affiliated loans and receivables		—		182.6		—		209.8		(392.4	)		—
Cash and cash equivalents		70.9		605.6		20.2		407.0		—			1,103.7
Receivables, net		525.7		—		—		41.0		—			566.7
Inventories, net		679.2		—		—		—		—			679.2
Accrued investment income		—		153.0		—		—		—			153.0
Reinsurance recoverable		—		2,378.5		—		—		—			2,378.5
Deferred tax assets		20.3		163.8		—		4.9		—			189.0
Properties, net		320.1		7.3		0.4		0.2		—			328.0
Goodwill		1,421.3		—		—		—		—			1,421.3
Intangibles, including DAC and VOBA, net		2,208.0		267.7		—		—		—			2,475.7
Other assets		274.1		30.6		6.9		35.6		—			347.2

Total assets	$	5,519.6	$	20,718.6	$	232.3	$	2,448.3	$	(2,060.0	)	$	26,858.8

Liabilities and Equity:
Insurance reserves	$	—	$	19,041.0	$	—	$	—	$	—		$	19,041.0
Debt		3,222.3		—		—		695.5		—			3,917.8
Accounts payable and other current liabilities		672.5		23.7		0.2		39.8		—			736.2
Equity conversion feature of preferred stock		—		—		—		163.1		—			163.1
Employee benefit obligations		95.2		—		—		5.0		—			100.2
Deferred tax liabilities		487.4		—		—		4.9		—			492.3
Other liabilities		37.5		366.2		12.7		0.4		—			416.8
Affiliated debt and payables		—		209.8		182.6		—		(392.4	)		—
Total liabilities		4,514.9		19,640.7		195.5		908.7		(392.4	)		24,867.4
Temporary equity		—		—		—		323.0		—			323.0
Total stockholders’ equity		553.3		1,077.9		36.4		1,216.6		(1,667.6	)		1,216.6
Noncontrolling interests		451.4		—		0.4		—		—			451.8
Total permanent equity		1,004.7		1,077.9		36.8		1,216.6		(1,667.6	)		1,668.4

Total liabilities and equity	$	5,519.6	$	20,718.6	$	232.3	$	2,448.3	$	(2,060.0	)	$	26,858.8


September 30, 2012	Consumer Products		Insurance		Other Financial Services		Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	16,556.5	$	180.1	$	181.8	$	—		$	16,918.4
Investment in subsidiaries and affiliates		—		—		—		1,583.1		(1,583.1	)		—
Affiliated loans and receivables		—		150.1		—		224.4		(374.5	)		—
Cash and cash equivalents		158.0		1,049.4		12.4		250.9		—			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, 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		35.1		2.2		19.1		—			172.6

Total assets	$	3,751.6	$	20,905.8	$	195.1	$	2,305.5	$	(1,957.6	)	$	25,200.4

Liabilities and Equity:
Insurance reserves	$	—	$	18,996.3	$	—	$	—	$	—		$	18,996.3
Debt		1,669.3		—		—		497.7		—			2,167.0
Accounts payable and other current liabilities		594.2		91.4		—		68.6		—			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		610.0		13.3		0.4		—			655.3
Affiliated debt and payables		—		224.4		150.1		—		(374.5	)		—

Total liabilities		2,762.6		19,922.1		163.4		808.7		(374.5	)		23,282.3
Temporary equity		—		—		—		319.2		—			319.2
Total stockholders’ equity		567.7		983.7		31.7		1,177.6		(1,583.1	)		1,177.6
Noncontrolling interests		421.3		—		—		—		—			421.3

Total permanent equity		989.0		983.7		31.7		1,177.6		(1,583.1	)		1,598.9

Total liabilities and equity	$	3,751.6	$	20,905.8	$	195.1	$	2,305.5	$	(1,957.6	)	$	25,200.4

Schedule of Income Statement Information

Harbinger Group Inc. — Condensed Consolidating Statements of Operations Information


Three Months Ended December 30, 2012	Consumer Products			Insurance			Other Financial Services			Corporate and Other			Eliminations			Total
Revenues:
Net consumer product sales	$	870.3		$	—		$	—		$	—		$	—		$	870.3
Insurance premiums		—			13.8			—			—			—			13.8
Net investment income		—			169.6			10.6			—			(2.2	)		178.0
Net investment gains		—			146.5			—			—			—			146.5
Insurance and investment product fees and other		—			13.7			—			—			—			13.7

Total revenues		870.3			343.6			10.6			—			(2.2	)		1,222.3
Operating costs and expenses:
Consumer products cost of goods sold		582.1			—			—			—			—			582.1
Benefits and other changes in policy reserves		—			83.6			—			—			—			83.6
Selling, acquisition, operating and general expenses		202.9			25.2			3.3			23.2			—			254.6
Amortization of intangibles		17.1			69.5			—			—			—			86.6

Total operating costs and expenses		802.1			178.3			3.3			23.2			—			1,006.9

Operating income		68.2			165.3			7.3			(23.2	)		(2.2	)		215.4
Interest expense		(69.9	)		(5.5	)		(2.2	)		(73.2	)		7.7			(143.1	)
Affiliated interest income		—			—			—			5.5			(5.5	)		—
Equity in net income (losses) of subsidiaries		—			—			—			103.2			(103.2	)		—
Gain from the change in the fair value of the equity conversion feature of preferred stock		—			—			—			68.9			—			68.9
Other (expense) income, net		(1.6	)		—			—			(7.1	)		—			(8.7	)

Income from continuing operations before income taxes		(3.3	)		159.8			5.1			74.1			(103.2	)		132.5
Income tax expense		10.6			53.8			—			—			—			64.4

Net income		(13.9	)		106.0			5.1			74.1			(103.2	)		68.1
Less: Net (loss) income attributable to noncontrolling interest		(6.2	)		—			0.2			—			—			(6.0	)

Net income attributable to controlling interest		(7.7	)		106.0			4.9			74.1			(103.2	)		74.1
Less: Preferred stock dividends and accretion		—			—			—			12.1			—			12.1

Net income attributable to common and participating preferred stockholders	$	(7.7	)	$	106.0		$	4.9		$	62.0		$	(103.2	)	$	62.0


Three Months Ended January 1, 2012	Consumer Products			Insurance			Other Financial Services			Corporate and Other			Eliminations			Total
Revenues:
Net consumer product sales	$	848.8		$	—		$	—		$	—		$	—		$	848.8
Insurance premiums		—			16.8			—			—			—			16.8
Net investment income		—			186.8			—			—			—			186.8
Net investment gains		—			103.9			—			—			—			103.9
Insurance and investment product fees and other		—			9.7			—			—			—			9.7

Total revenues		848.8			317.2			—			—			—			1,166.0
Operating costs and expenses:
Consumer products cost of goods sold		564.7			—			—			—			—			564.7
Benefits and other changes in policy reserves		—			176.9			—			—			—			176.9
Selling, acquisition, operating and general expenses		185.8			61.8			0.2			8.1			—			255.9
Amortization of intangibles		14.6			42.1			—			—			—			56.7

Total operating costs and expenses		765.1			280.8			0.2			8.1			—			1,054.2

Operating income		83.7			36.4			(0.2	)		(8.1	)		—			111.8
Interest expense		(41.1	)		(6.2	)		—			(14.8	)		6.2			(55.9	)
Affiliated interest income		—			—			—			6.2			(6.2	)		—
Equity in net income (losses) of subsidiaries		—			—			—			24.9			(24.9	)		—
Gain from the change in the fair value of the equity conversion feature of preferred stock		—			—			—			27.9			—			27.9
Other (expense) income, net		(2.2	)		—			—			3.4			—			1.2

Income from continuing operations before income taxes		40.4			30.2			(0.2	)		39.5			(24.9	)		85.0
Income tax expense		27.3			12.2			—			—			—			39.5

Net income		13.1			18.0			(0.2	)		39.5			(24.9	)		45.5
Less: Net (loss) income attributable to noncontrolling interest		6.0			—			—			—			—			6.0

Net income attributable to controlling interest		7.1			18.0			(0.2	)		39.5			(24.9	)		39.5
Less: Preferred stock dividends and accretion		—			—			—			15.7			—			15.7

Net income attributable to common and participating preferred stockholders	$	7.1		$	18.0		$	(0.2	)	$	23.8		$	(24.9	)	$	23.8