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Subsequent Events Subsequent Events - Event A (Tables)
6 Months Ended
Mar. 31, 2015
Subsequent Events [Abstract]  
Schedule of Subsequent Events [Table Text Block]
ASC 855, “Subsequent Events” (“ASC 855”), establishes general standards of accounting and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. ASC 855 requires the Company to evaluate events that occur after the balance date through the date of the Company’s financial statements are issued, and to determine whether adjustments to or additional disclosures in the financial statements are necessary. The Company has evaluated subsequent events through the date these financial statements were issued.
On April 6, 2015, the Company, announced that it is exploring strategic alternatives for FGL. Following such announcement, FGL began a strategic review process for the Company. There can be no assurance that the exploration of strategic alternatives will result in a transaction or that any transaction, if pursued, will be consummated. The exploration of strategic alternatives may be terminated at any time and without notice. Neither the Company, nor any of its affiliates intend to disclose developments with respect to this process unless and until a definitive specific transaction or final course of action has been approved or determined.
On April 14, 2015, the Company issued $100.0 aggregate principal amount of 7.875% secured notes due 2019 at 104.5% of par plus accrued interest from January 15, 2015 under the Company's existing indenture governing its 7.875% Senior Secured Notes due 2019. One of the participating underwriters, Jefferies LLC ("Jefferies"), is a wholly owned subsidiary of Leucadia, which through subsidiaries beneficially owns more than 10% of the Company’s outstanding shares of common stock. 
On April 19, 2015, FOHG Holdings, LLC and its subsidiaries (together, “FOHG”) commenced Chapter 11 cases in the United States Bankruptcy Court for the District of Delaware. At March 31, 2015, three of the Company’s consolidated subsidiaries were lenders to FOHG with a total balance of $59.6, which loans were fully eliminated upon consolidation. As a result of FOHG's Chapter 11 cases, the Company will deconsolidate FOHG from the Consolidated Financial Statements in the third fiscal quarter of 2015 and, as a result, such loans will no longer be eliminated in consolidation. The amounts that the Company’s subsidiaries are able to recover will be dependent upon on the outcome of the Chapter 11 cases. The Chapter 11 cases remain pending and the Company is in the process of evaluating the financial statement impact of the deconsolidation and potential impairments of the loans held by the Company’s consolidated subsidiaries.
As discussed in Note 8, Debt, as a result of the recent decline in commodity prices, Compass' consolidated funded indebtedness to consolidated EBITDAX exceeded the maximum ratio allowed under the Compass Credit Agreement. On May 7, 2015, Compass entered into an amendment to the Compass Credit Agreement and concurrently with such amendment HGI Funding, a wholly-owned subsidiary of the Company, entered into an agreement pursuant to which it provided a limited unconditional and irrevocable guarantee for the full and prompt payment when due of certain present and future payment obligations under the Compass Credit Agreement, which obligations are secured by a pledge of certain of HGI Funding's assets as collateral. Pursuant to this agreement, HGI Funding has agreed to provide debt or equity contributions to Compass following the October 2015 redetermination in an aggregate amount not to exceed the amount of any borrowing base deficiency that may exist at such time. HGI Funding’s aggregate obligations in connection with such guaranty and such contributions shall not exceed $80.0 (plus certain interest charges on unpaid amounts under the guaranty and reimbursement of enforcement expenses), but may be less depending on the amounts outstanding under the Compass Credit Agreement at that time (the “Secured Amount”). The Secured Amount is secured by a pledge of assets chosen by HGI Funding that may consist of a combination of cash and marketable securities with a determined value equal to the maximum Secured Amount then applicable. In measuring the determined value of the pledged assets, cash is valued at 100% and marketable securities are valued at 33.3% of fair market value (measured as the 20 day volume weighted average price of such marketable securities). At May 7, 2015, HGI Funding had pledged marketable securities valued at $240.0 under this guarantee. The expiration date of the guarantee occurs upon the closing of the Compass' next scheduled borrowing base redetermination in October 2015. As a result of these amendments to the Compass Credit Agreement Compass returned to good standing under the covenants specified in the Compass Credit Agreement. Compass is presently current on all obligations related to the Compass Credit Agreement. No losses have been experienced by HGI Funding under this guarantee. As a result of the proposed reduction to the Company's borrowing base, Compass' availability of funds was reduced to approximately $12.0 (inclusive of reduction for outstanding letters of credit). Based upon Compass’ current forecast there are no requirements for draws under the credit facility and Compass believes that the adjusted availability is adequate for executing the business plan for the fiscal year end.
On April 28, 2015, Spectrum Brands entered into an Agreement and Plan of Merger (the “AAG Merger Agreement”) with Armored AutoGroup Parent Inc. (“AAG”), Ignite Merger Sub, Inc., a direct wholly owned subsidiary of Spectrum Brands, and Avista Capital Partners II GP, LLC, as representative for the shareholders and option holders of AAG. Under the AAG Merger Agreement, Spectrum Brands will acquire AAG for a purchase price of approximately $1,400.0 (subject to customary adjustments for cash, debt, net working capital and transaction-related expenses described in the AAG Merger Agreement), which will be paid entirely in cash (the “AAG Acquisition”). The obligations of the parties to complete the AAG Acquisition are subject to various customary closing conditions, including the expiration or termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended and, in the case of the Spectrum Brands’ obligation to complete the acquisition, the accuracy of AAG’s representations and warranties (subject to certain qualifications), material compliance by AAG with certain pre-closing covenants and no material adverse change in AAG since the date of the AAG Merger Agreement. The AAG Merger Agreement may be terminated by mutual consent of AAG and Spectrum Brands and under certain other circumstances, including by AAG or Spectrum Brands if the closing of the acquisition has not occurred by June 30, 2015. The acquisition is expected to close in the third quarter of the Company's fiscal 2015 year. The Company will account for this acquisition in accordance with ASC 805.
Spectrum Brands expects to finance the $1,400.0 cash purchase price of the acquisition and the related fees and expenses through a combination of new debt and approximately $500.0 of Spectrum Brands common stock. As part of the AAG Acquisition, Spectrum Brands received financing commitments from Credit Suisse, Deutsche Bank and Jefferies, pursuant to which, and subject to certain conditions, the financial institutions committed to provide to Spectrum Brands “back stop” bridge facilities in an aggregate amount of $1,500.0. Jefferies, one of the financial institutions committed to provide financing to Spectrum Brands, is a wholly owned subsidiary of Leucadia, which through subsidiaries beneficially owns more than 10% of the Company's outstanding shares of common stock. HRG's Board of Directors has approved the Company's participation in the Spectrum Brands common stock issuance.