Consolidating Financial Information

12 Months Ended

Sep. 30, 2015

Consolidating Financial Information [Abstract]

The following schedules present the Company’s consolidating balance sheets information at September 30, 2015 and 2014, and consolidating statements of operations information for Fiscal 2015, 2014 and 2013. 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, and the results of FOH for Fiscal 2015. 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.

HRG Group, Inc. - Condensed Consolidating Balance Sheets Information



September 30, 2015	Consumer Products		Insurance			Energy			Asset Management			Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	19,112.7		$	—		$	223.9		$	32.8	$	(258.7	)	$	19,110.7
Investments in subsidiaries and affiliates	—		(94.3		)	—			—			2,016.9		(1,922.6		)	—
Affiliated loans and receivables	—		110.8			—			1.2			0.1		(112.1		)	—
Cash and cash equivalents	247.9		521.8			34.2			94.6			298.5		—			1,197.0
Receivables, net	586.6		23.5			19.1			0.7			0.8		2.2			632.9
Inventories, net	780.8		—			—			—			—		—			780.8
Accrued investment income	—		191.2			—			1.3			—		(0.5		)	192.0
Reinsurance recoverable	—		2,351.9			—			—			—		—			2,351.9
Deferred tax assets	48.4		271.3			—			0.1			2.0		(36.8		)	285.0
Properties, including oil and natural gas properties, net	507.1		14.3			288.9			1.2			1.3		—			812.8
Goodwill	2,476.7		—			—			10.7			—		—			2,487.4
Intangibles, including DAC and VOBA, net	2,480.3		1,048.6			—			—			—		—			3,528.9
Other assets	170.2		743.4			2.2			6.2			32.7		—			954.7
Total assets	$	7,298.0	$	24,295.2		$	344.4		$	339.9		$	2,385.1	$	(2,328.5	)	$	32,334.1

Liabilities and Equity:
Insurance reserves	$	—	$	21,931.7		$	—		$	—		$	—	$	—		$	21,931.7
Debt	3,971.0		300.0			327.0			48.3			1,736.4		—			6,382.7
Accounts payable and other current liabilities	993.0		48.7			33.6			7.7			54.2		0.5			1,137.7
Employee benefit obligations	88.1		—			—			—			4.8		—			92.9
Deferred tax liabilities	611.7		—			—			—			1.9		—			613.6
Other liabilities	27.3		509.3			39.1			10.3			1.1		0.3			587.4
Affiliated debt and payables	—		0.9			102.2			313.1			—		(416.2		)	—
Total liabilities	5,691.1		22,790.6			501.9			379.4			1,798.4		(415.4		)	30,746.0
Total stockholders’ equity	900.4		1,211.7			(157.2		)	(41.8		)	586.7		(1,913.1		)	586.7
Noncontrolling interests	706.5		292.9			(0.3		)	2.3			—		—			1,001.4
Total shareholders’ equity	1,606.9		1,504.6			(157.5		)	(39.5		)	586.7		(1,913.1		)	1,588.1
Total liabilities and equity	$	7,298.0	$	24,295.2		$	344.4		$	339.9		$	2,385.1	$	(2,328.5	)	$	32,334.1



September 30, 2014	Consumer Products		Insurance		Energy		Asset Management		Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	18,820.7	$	—	$	584.6	$	93.7	$	(246.5	)	$	19,252.5
Investment in subsidiaries and affiliates	—		68.2		—		—		2,237.9		(2,306.1		)	—
Affiliated loans and receivables	—		157.2		—		28.5		—		(185.7		)	—
Cash and cash equivalents	194.6		633.8		14.2		53.5		423.1		—			1,319.2
Receivables, net	515.3		2.1		23.7		0.9		43.1		—			585.1
Inventories, net	624.5		—		—		—		10.7		—			635.2
Accrued investment income	—		181.8		—		3.7		—		(0.6		)	184.9
Reinsurance recoverable	—		2,397.6		—		—		—		—			2,397.6
Deferred tax assets	46.7		139.0		—		—		1.1		(0.1		)	186.7
Properties, including oil and natural gas properties, net	428.9		11.4		464.4		1.4		2.5		—			908.6
Goodwill	1,469.6		—		—		10.7		44.5		—			1,524.8
Intangibles, including DAC and VOBA, net	2,091.5		550.4		—		—		41.8		—			2,683.7
Other assets	141.9		233.6		2.5		9.2		34.7		—			421.9
Total assets	$	5,513.0	$	23,195.8	$	504.8	$	692.5	$	2,933.1	$	(2,739.0	)	$	30,100.2

Liabilities and Equity:
Insurance reserves	$	—	$	20,215.1	$	—	$	—	$	—	$	—		$	20,215.1
Debt	2,990.9		300.0		243.2		298.7		1,325.0		—			5,157.8
Accounts payable and other current liabilities	816.2		71.9		31.3		8.5		104.6		0.5			1,033.0
Employee benefit obligations	81.9		—		—		—		4.3		—			86.2
Deferred tax liabilities	516.0		—		—		—		17.2		0.1			533.3
Other liabilities	21.2		748.9		27.3		19.3		1.1		—			817.8
Affiliated debt and payables	—		7.8		102.3		286.5		34.8		(431.4		)	—
Total liabilities	4,426.2		21,343.7		404.1		613.0		1,487.0		(430.8		)	27,843.2
Total stockholders’ equity	612.4		1,526.9		100.7		68.2		1,441.6		(2,308.2		)	1,441.6
Noncontrolling interests	474.4		325.2		—		11.3		4.5		—			815.4
Total shareholders’ equity	1,086.8		1,852.1		100.7		79.5		1,446.1		(2,308.2		)	2,257.0
Total liabilities and equity	$	5,513.0	$	23,195.8	$	504.8	$	692.5	$	2,933.1	$	(2,739.0	)	$	30,100.2

HRG Group, Inc. - Condensed Consolidating Statements of Operations Information



Fiscal 2015	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Eliminations			Total
Revenues:
Net consumer and other product sales	$	4,690.4		$	—		$	—		$	—		$	42.7		$	—		$	4,733.1
Oil and natural gas	—			—			107.4			—			—			—			107.4
Insurance premiums	—			59.8			—			—			—			—			59.8
Net investment income	—			918.3			—			22.2			—			(13.3		)	927.2
Net investment (losses) gains	—			(235.0		)	—			—			—			130.3			(104.7		)
Insurance and investment product fees and other	—			93.1			—			—			—			—			93.1
Total revenues	4,690.4			836.2			107.4			22.2			42.7			117.0			5,815.9
Operating costs and expenses:
Cost of consumer products and other goods sold	3,020.0			—			—			—			30.9			—			3,050.9
Oil and natural gas direct operating costs	—			—			85.9			—			—			—			85.9
Benefits and other changes in policy reserves	—			625.5			—			—			—			—			625.5
Selling, acquisition, operating and general expenses	1,108.5			125.4			63.0			37.4			142.5			(0.3		)	1,476.5
Impairments and bad debt expense	—			—			485.1			87.9			60.2			42.1			675.3
Amortization of intangibles	87.8			41.8			—			—			—			—			129.6
Total operating costs and expenses	4,216.3			792.7			634.0			125.3			233.6			41.8			6,043.7
Operating (loss) income	474.1			43.5			(526.6		)	(103.1		)	(190.9		)	75.2			(227.8		)
Equity in net (losses) income of subsidiaries	—			(105.1		)	—			—			(343.6		)	448.7			—
Interest expense	(271.9		)	(23.7		)	(9.9		)	—			(124.2		)	—			(429.7		)
Affiliated interest expense	—			—			(9.0		)	(19.2		)	(2.9		)	31.1			—
Gain on deconsolidation of subsidiary	—			—			—			—			38.5			—			38.5
Gain upon gaining control of equity method investment	—			—			141.2			—			—			—			141.2
Other income (expense), net	(8.9		)	—			25.7			(2.1		)	31.9			(9.6		)	37.0
(Loss) income from continuing operations before income taxes	193.3			(85.3		)	(378.6		)	(124.4		)	(591.2		)	545.4			(440.8		)
Income tax expense	43.9			8.4			—			—			(13.3		)	32.6			71.6
Net (loss) income	149.4			(93.7		)	(378.6		)	(124.4		)	(577.9		)	512.8			(512.4		)
Less: Net income (loss) attributable to noncontrolling interest	62.7			23.1			(1.0		)	(19.3		)	(21.1		)	—			44.4
Net loss attributable to controlling interest	$	86.7		$	(116.8	)	$	(377.6	)	$	(105.1	)	$	(556.8	)	$	512.8		$	(556.8	)



Fiscal 2014	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Eliminations			Total
Revenues:
Net consumer and other product sales	$	4,429.1		$	—		$	—		$	—		$	20.1		$	—		$	4,449.2
Oil and natural gas	—			—			147.0			—			—			—			147.0
Insurance premiums	—			56.6			—			—			—			—			56.6
Net investment income	—			824.5			—			34.2			—			(16.5		)	842.2
Net investment (losses) gains	—			395.9			—			—			—			(0.6		)	395.3
Insurance and investment product fees and other	—			72.7			—			—			—			—			72.7
Total revenues	4,429.1			1,349.7			147.0			34.2			20.1			(17.1		)	5,963.0
Operating costs and expenses:
Cost of consumer products and other goods sold	2,860.3			—			—			—			15.3			—			2,875.6
Oil and natural gas direct operating costs	—			—			69.6			—			—			—			69.6
Benefits and other changes in policy reserves	—			852.7			—			—			—			—			852.7
Selling, acquisition, operating and general expenses	1,005.2			114.7			50.1			31.2			131.3			—			1,332.5
Impairments and bad debt expense	—			—			81.0			2.3			—			0.6			83.9
Amortization of intangibles	81.7			97.5			—			—			—			—			179.2
Total operating costs and expenses	3,947.2			1,064.9			200.7			33.5			146.6			0.6			5,393.5
Operating (loss) income	481.9			284.8			(53.7		)	0.7			(126.5		)	(17.7		)	569.5
Equity in net (loss) income of subsidiaries	—			(6.0		)	—			—			221.4			(215.4		)	—
Interest expense	(202.1		)	(22.5		)	(7.7		)	—			(89.6		)	—			(321.9		)
Affiliated interest (expense) income	—			—			(9.0		)	(6.0		)	(1.5		)	16.5			—
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			—			—			—			(12.7		)	—			(12.7		)
Other income (expense), net	(6.3		)	—			(6.5		)	(1.2		)	(4.2		)	(3.5		)	(21.7		)
(Loss) income from continuing operations before income taxes	273.5			256.3			(76.9		)	(6.5		)	(13.1		)	(220.1		)	213.2
Income tax expense	59.0			54.0			—			(0.1		)	0.9			(2.3		)	111.5
Net (loss) income	214.5			202.3			(76.9		)	(6.4		)	(14.0		)	(217.8		)	101.7
Less: Net income (loss) attributable to noncontrolling interest	88.9			27.2			—			(0.4		)	(3.7		)	—			112.0
Net loss attributable to controlling interest	125.6			175.1			(76.9		)	(6.0		)	(10.3		)	(217.8		)	(10.3		)
Less: Preferred stock dividends, accretion and loss on conversion	—			—			—			—			73.6			—			73.6
Net loss attributable to common and participating preferred stockholders	$	125.6		$	175.1		$	(76.9	)	$	(6.0	)	$	(83.9	)	$	(217.8	)	$	(83.9	)



Fiscal 2013	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Eliminations			Total
Revenues:
Net consumer and other 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 (losses) 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:
Cost of consumer products and other 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			15.8			91.0			—			1,216.6
Impairments and bad debt expense	—			—			54.3			2.7			—			1.2			58.2
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 (loss) income	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) income	—			—			(5.6		)	(4.1		)	—			9.7			—
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			—			—			—			(101.6		)	—			(101.6		)
Other income (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	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 income (loss) attributable to noncontrolling interest	(23.6		)	—			—			0.4			—			—			(23.2		)
Net loss attributable to controlling interest	(31.7		)	350.2			(56.8		)	5.8			(45.8		)	(267.5		)	(45.8		)
Less: Preferred stock dividends, accretion and loss on conversion	—			—			—			—			48.4			—			48.4
Net loss attributable to common and participating preferred stockholders	$	(31.7	)	$	350.2		$	(56.8	)	$	5.8		$	(94.2	)	$	(267.5	)	$	(94.2	)