Consolidating Financial Information (Tables)

3 Months Ended

Dec. 31, 2014

Harbinger Group Inc. - Condensed Consolidating Balance Sheets Information



December 31, 2014	Consumer Products		Insurance		Energy		Asset Management		Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	19,359.7	$	—	$	546.3	$	81.9	$	(247.6	)	$	19,740.3
Investments in subsidiaries and affiliates	—		64.5		—		—		2,309.1		(2,373.6		)	—
Affiliated loans and receivables	—		138.8		—		18.3		0.1		(157.2		)	—
Cash and cash equivalents	408.4		599.5		12.9		78.9		211.7		—			1,311.4
Receivables, net	576.8		0.8		36.4		0.8		45.3		—			660.1
Inventories, net	701.9		—		—		—		8.3		—			710.2
Accrued investment income	—		163.8		—		4.8		—		(0.7		)	167.9
Reinsurance recoverable	—		2,416.7		—		—		—		—			2,416.7
Deferred tax assets	41.7		136.0		—		0.1		1.1		(0.1		)	178.8
Properties, including oil and natural gas properties, net	419.8		11.7		620.0		1.3		2.0		—			1,054.8
Goodwill	1,465.0		—		—		10.7		16.2		—			1,491.9
Intangibles, including DAC and VOBA, net	2,066.7		635.7		—		—		9.9		—			2,712.3
Other assets	151.8		564.7		1.7		8.9		35.1		0.1			762.3
Total assets	$	5,832.1	$	24,091.9	$	671.0	$	670.1	$	2,720.7	$	(2,779.1	)	$	31,206.7



Liabilities and Equity:
Insurance reserves	$	—	$	21,246.6	$	—	$	—	$	—		$	—		$	21,246.6
Debt	3,415.6		300.0		327.0		297.7		1,325.7			—			5,666.0
Accounts payable and other current liabilities	714.1		50.1		31.1		11.3		92.5			0.5			899.6
Employee benefit obligations	78.3		—		—		—		4.2			—			82.5
Deferred tax liabilities	510.2		—		—		—		5.4			2.4			518.0
Other liabilities	20.2		640.3		37.4		12.8		1.3			—			712.0
Affiliated debt and payables	—		1.2		100.0		271.4		30.9			(403.5		)	—
Total liabilities	4,738.4		22,238.2		495.5		593.2		1,460.0			(400.6		)	29,124.7
Total stockholders’ equity	615.3		1,522.3		175.1		65.8		1,276.2			(2,378.5		)	1,276.2
Noncontrolling interests	478.4		331.4		0.4		11.1		(15.5		)	—			805.8
Total permanent equity	1,093.7		1,853.7		175.5		76.9		1,260.7			(2,378.5		)	2,082.0
Total liabilities and equity	$	5,832.1	$	24,091.9	$	671.0	$	670.1	$	2,720.7		$	(2,779.1	)	$	31,206.7



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
Temporary equity	—		—		—		—		—		—			—
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 permanent 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

Schedule of Income Statement Information

Harbinger Group Inc. - Condensed Consolidating Statements of Operations Information



Three months ended December 31, 2014	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Eliminations			Total
Revenues:
Net consumer and other product sales	$	1,067.8		$	—		$	—		$	—		$	21.0		$	—		$	1,088.8
Oil and natural gas	—			—			34.3			—			—			—			34.3
Insurance premiums	—			11.7			—			—			—			—			11.7
Net investment income	—			226.9			—			8.0			—			(4.1		)	230.8
Net investment gains	—			51.4			—			—			—			0.6			52.0
Insurance and investment product fees and other	—			20.8			—			—			—			—			20.8
Total revenues	1,067.8			310.8			34.3			8.0			21.0			(3.5		)	1,438.4
Operating costs and expenses:
Cost of consumer products and other goods sold	697.6			—			—			—			14.4			—			712.0
Oil and natural gas direct operating costs	—			—			20.5			—			—			—			20.5
Benefits and other changes in policy reserves	—			241.5			—			—			—			—			241.5
Selling, acquisition, operating and general expenses	234.1			32.8			18.8			9.1			70.1			0.5			365.4
Impairments	—			—			190.0			—			60.2			—			250.2
Amortization of intangibles	20.5			11.3			—			—			—			—			31.8
Total operating costs and expenses	952.2			285.6			229.3			9.1			144.7			0.5			1,621.4
Operating (loss) income	115.6			25.2			(195.0		)	(1.1		)	(123.7		)	(4.0		)	(183.0		)
Equity in net income (losses) of subsidiaries	—			(2.8		)	—			—			(7.5		)	10.3			—
Interest expense	(44.4		)	(5.9		)	(2.2		)	—			(28.1		)	—			(80.6		)
Affiliated interest expense	—			—			(2.3		)	(1.5		)	(1.2		)	5.0			—
Other income (expense), net	(0.7		)	—			160.0			(0.5		)	17.4			(2.2		)	174.0
(Loss) income from continuing operations before income taxes	70.5			16.5			(39.5		)	(3.1		)	(143.1		)	9.1			(89.6		)
Income tax expense	20.5			7.8			—			—			(13.2		)	1.7			16.8
Net (income) loss	50.0			8.7			(39.5		)	(3.1		)	(129.9		)	7.4			(106.4		)
Less: Net income (loss) attributable to noncontrolling interest	20.8			3.3			(0.3		)	(0.3		)	(20.1		)	—			3.4
Net income (loss) attributable to controlling interest	$	29.2		$	5.4		$	(39.2	)	$	(2.8	)	$	(109.8	)	$	7.4		$	(109.8	)



Three months ended December 31, 2013	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Eliminations			Total
Revenues:
Net consumer and other product sales	$	1,100.6		$	—		$	—		$	—		$	—		$	—		$	1,100.6
Oil and natural gas	—			—			35.5			—			—			—			35.5
Insurance premiums	—			13.9			—			—			—			—			13.9
Net investment income	—			200.4			—			4.5			—			(3.7		)	201.2
Net investment gains	—			141.9			—			—			—			—			141.9
Insurance and investment product fees and other	—			16.9			—			—			—			—			16.9
Total revenues	1,100.6			373.1			35.5			4.5			—			(3.7		)	1,510.0
Operating costs and expenses:
Cost of consumer products and other goods sold	719.4			—			—			—			—			—			719.4
Oil and natural gas operating costs	—			—			16.1			—			—			—			16.1
Benefits and other changes in policy reserves	—			234.7			—			—			—			—			234.7
Selling, acquisition, operating and general expenses	236.0			29.9			13.4			8.4			29.4			—			317.1
Amortization of intangibles	20.2			23.2			—			—			—			—			43.4
Total operating costs and expenses	975.6			287.8			29.5			8.4			29.4			—			1,330.7
Operating (loss) income	125.0			85.3			6.0			(3.9		)	(29.4		)	(3.7		)	179.3
Equity in net income of subsidiaries	—			—			—			—			71.5			(71.5		)	—
Interest expense	(57.0		)	(5.6		)	(2.4		)	—			(19.0		)	—			(84.0		)
Affiliated interest expense	—			—			(2.3		)	(1.4		)	—			3.7			—
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			—			—			—			(47.2		)	—			(47.2		)
Gain on contingent purchase price reduction	—			—			—			—			0.5			—			0.5
Other income (expense), net	(0.9		)	—			(3.4		)	(3.7		)	(3.9		)	—			(11.9		)
(Loss) income from continuing operations before income taxes	67.1			79.7			(2.1		)	(9.0		)	(27.5		)	(71.5		)	36.7
Income tax expense	12.7			26.5			—			(0.2		)	(0.7		)	—			38.3
Net loss	54.4			53.2			(2.1		)	(8.8		)	(26.8		)	(71.5		)	(1.6		)
Less: Net income attributable to noncontrolling interest	22.6			3.3			—			(0.7		)	—			—			25.2
Net loss attributable to controlling interest	31.8			49.9			(2.1		)	(8.1		)	(26.8		)	(71.5		)	(26.8		)
Less: Preferred stock dividends and accretion	—			—			—			—			12.2			—			12.2
Net loss attributable to common and participating preferred stockholders	$	31.8		$	49.9		$	(2.1	)	$	(8.1	)	$	(39.0	)	$	(71.5	)	$	(39.0	)