XML 35 R46.htm IDEA: XBRL DOCUMENT v3.3.0.814
Derivative Financial Instruments Derivative Financial Instruments (Tables)
 12 Months Ended
Sep. 30, 2015
Derivative [Line Items]  
Schedule of Derivative Instruments [Table Text Block]
Spectrum Brands had the following outstanding commodity swap contracts outstanding as of September 30, 2015 and 2014:
 
 
September 30, 2015
 
September 30, 2014
 
 
Notional
 
Contract Value
 
Notional
 
Contract Value
Zinc swap contracts (tons)
 
10.8
 
$
22.2

 
8.0
 
$
17.4

Brass swap contracts (tons)
 
1.8
 
8.5

 
0.6

 
2.8

Spectrum Brands had the following commodity swap contracts outstanding as of September 30, 2015 and 2014:
 
 
September 30, 2015
 
September 30, 2014
 
 
Notional
 
Contract Value
 
Notional
 
Contract Value
Silver (troy oz.)
 
25
 
$
0.4

 
25
 
$
0.4
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block]
Consolidated Balance Sheets were as follows:
 
 
 
 
September 30,
Asset Derivatives
 
Classification
 
2015
 
2014
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Interest rate swaps
 
Other assets
 
$
—

 
$
0.6

Commodity swaps
 
Receivables, net
 
—

 
1.3

Foreign exchange contracts
 
Other assets
 
0.4

 
0.3

Foreign exchange contracts
 
Receivables, net
 
5.2

 
12.0

Total asset derivatives designated as hedging instruments
 
 
 
5.6

 
14.2

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity contracts
 
Receivables, net
 
7.9

 
1.9

Call options
 
Derivatives
 
80.7

 
296.3

Futures contracts
 
Derivatives
 
1.2

 
—

Other embedded derivatives
 
Other invested assets
 
10.2

 
11.2

Foreign exchange contracts
 
Receivables, net
 
0.4

 
0.5

Total asset derivatives
 
 
 
$
106.0

 
$
324.1

 
 
 
 
September 30,
Liability Derivatives
 
Classification
 
2015
 
2014
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Interest rate swaps
 
Accounts payable and other current liabilities
 
$
1.4

 
$
1.8

Interest rate swaps
 
Other liabilities
 
1.2

 
—

Commodity swaps
 
Accounts payable and other current liabilities
 
4.7

 
0.1

Commodity swaps
 
Other liabilities
 
0.8

 
—

Foreign exchange contracts
 
Accounts payable and other current liabilities
 
1.5

 
—

Total liability derivatives designated as hedging instruments
 
 
 
9.6

 
1.9

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Commodity contracts
 
Accounts payable and other current liabilities
 
0.1

 
—

Commodity contracts
 
Other liabilities
 
—

 
0.3

FIA embedded derivative
 
Contractholder funds
 
2,149.4

 
1,908.1

Futures contracts
 
Other liabilities
 
—

 
0.5

Foreign exchange
 
Accounts payable and other current liabilities
 
0.1

 
0.1

Total liability derivatives
 
 
 
$
2,159.2

 
$
1,910.9
Summary of Gain (Loss) Recognized in Income on Derivatives
During Fiscal 2015, 2014 and 2013, the Company recognized the following gains and losses on derivatives:
Classification
 
Derivatives Not Designated as Hedging Instruments
 
Amounts Recognized on Derivatives
Increase / (Decrease)
 
 
 
 
Fiscal
 
 
 
 
2015
 
2014
 
2013
Revenues:
 
 
 
 
 
 
 
 
Net investment (losses) gains
 
Call options
 
$
(106.3
)
 
$
246.0

 
$
151.6

 
 
Futures contracts
 
(7.0
)
 
25.5

 
17.5

 
 
Change in fair value of other embedded derivatives
 
(1.0
)
 
(0.1
)
 
—

Operating costs and expenses:
 
 
 
 
 
 
 
 
Benefits and other changes in policy reserves
 
FIA embedded derivatives
 
$
241.3

 
$
363.7

 
$
(6.4
)
Cost of consumer products and other goods sold
 
Commodity swaps
 
(0.1
)
 
(0.1
)
 
(0.1
)
Other income and expense:
 
 
 
 
 
 
 
 
Other income (expense), net
 
Oil and natural gas commodity contracts
 
$
25.3

 
$
(6.6
)
 
$
(1.3
)
 
 
Foreign exchange contracts
 
(2.5
)
 
3.1

 
(3.6
)
Loss from the change in the fair value of the equity conversion feature of preferred stock
 
Equity conversion feature of preferred stock
 
—

 
(12.7
)
 
(101.6
)
Volumes and Fair Value of Oil and Natural Gas Derivative Financial Instruments
The following table presents Compass’ volumes and fair value of the oil and natural gas Derivative Financial Instruments as of September 30, 2015 (presented on a calendar-year basis): 
(in millions, except volumes and prices)
 
Volume Mmbtus/Mbbls
 
Weighted average strike price per Mmbtu/Bbl
 
Fair Value at September 30, 2015
Natural gas swaps (October - December 2015)
 
2,760

 
$
3.95

 
$
3.7

Natural gas three-way collars (October 2015)
 
620

 
 
 
0.2

Short call
 
 
 
3.27

 
 
Long put
 
 
 
2.85

 
 
Short put
 
 
 
2.10

 
 
Total natural gas
 
3,380

 
 
 
$
3.9

 
 
 
 
 
 
 
Oil swaps (October - December 2015)
 
62

 
$
94.98

 
$
3.1

Oil collars (October - December 2015)
 
28

 
 
 
0.1

Short call
 
 
 
67.50

 
 
Long put
 
 
 
50.00

 
 
Oil three-way collars (January - December 2016)
 
183

 
 
 
0.8

Short call
 
 
 
76.00

 
 
Long put
 
 
 
56.00

 
 
Short put
 
 
 
42.00

 
 
Total oil
 
273

 
 
 
$
4.0

Total oil and natural gas derivatives
 
 
 
 
 
$
7.9
FGL's Exposure to Credit Loss on Call Options Held
 
 
 
 
September 30, 2015
 
September 30, 2014
Counterparty
 
Credit Rating
(Fitch/Moody’s/S&P) (a)
 
Notional
Amount
 
Fair Value
 
Collateral
 
Net Credit Risk
 
Notional
Amount
 
Fair Value
 
Collateral
 
Net Credit Risk
Merrill Lynch
 
A/*/A
 
$
2,233.3

 
$
16.5

 
$
—

 
$
16.5

 
$
2,239.9

 
$
92.7

 
$
52.5

 
$
40.2

Deutsche Bank
 
A/A3/BBB+
 
2,481.4

 
26.0

 
—

 
26.0

 
2,810.0

 
108.0

 
72.5

 
35.5

Morgan Stanley
 
*/A1/A
 
4,086.2

 
34.8

 
7.0

 
27.8

 
2,294.7

 
85.0

 
63.0

 
22.0

Barclay's Bank
 
A/A2/A-
 
391.9

 
3.4

 
—

 
3.4

 
258.0

 
10.6

 
—

 
10.6

Total
 
 
 
$
9,192.8

 
$
80.7

 
$
7.0

 
$
73.7

 
$
7,602.6

 
$
296.3

 
$
188.0

 
$
108.3