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Derivative Financial Instruments (Tables)

9 Months Ended

Jun. 30, 2015

Derivative [Line Items]

Fair Value of Outstanding Derivative Contracts in Condensed Consolidated Balance Sheets

The fair value of outstanding derivative contracts recorded in the accompanying unaudited Condensed Consolidated Balance Sheets were as follows:

Asset Derivatives		Classification		June 30, 2015				September 30, 2014
Derivatives designated as hedging instruments:
Foreign exchange contracts		Receivables, net		$	5.9			$	12.0
Interest rate contracts		Other assets		—				0.6
Commodity contracts		Receivables, net		—				1.3
Foreign exchange contracts		Cash and cash equivalents		0.3				0.3
Total asset derivatives designated as hedging instruments				6.2				14.2
Derivatives not designated as hedging instruments:
Call options		Derivatives		220.1				296.3
Commodity contracts		Receivables, net		10.3				1.9
Futures contracts		Derivatives		0.3				—
Other embedded derivatives		Other invested assets		11.7				11.2
Foreign exchange contracts		Receivables, net		—				0.5
Total asset derivatives				$	248.6			$	324.1

Liability Derivatives		Classification		June 30, 2015				September 30, 2014
Derivatives designated as hedging instruments:
Interest rate contracts		Accounts payable and other current liabilities		$	1.8			$	1.8
Interest rate contracts		Other liabilities		0.4				—
Commodity contracts		Accounts payable and other current liabilities		1.5				0.1
Commodity contracts		Other liabilities		0.1				—
Foreign exchange contracts		Accounts payable and other current liabilities		0.4				—
Foreign exchange contracts		Other liabilities		0.4				—
Total liability derivatives designated as hedging instruments				4.6				1.9
Derivatives not designated as hedging instruments:
FIA embedded derivative		Contractholder funds		2,173.7				1,908.1
Foreign exchange		Accounts payable and other current liabilities		0.2				0.1
Futures contracts		Other liabilities		—				0.5
Commodity contracts		Other liabilities		—				0.3
Total liability derivatives				$	2,178.5			$	1,910.9

Summary of Gain (Loss) Recognized in Income on Derivatives

During the three and nine months ended June 30, 2015 and 2014, the Company recognized the following gains and losses on these derivatives:

				Three months ended June 30,								Nine months ended June 30,
Classification		Derivatives Not Designated as Hedging Instruments		2015				2014				2015				2014
Revenues:
Net investment (losses) gains		Call options		$	(7.6	)		$	91.1			$	25.6			$	226.6
		Futures contracts		—				10.5				4.3				24.9
		Change in fair value of other embedded derivatives		(0.5		)		0.3				0.5				0.3
Operating costs and expenses:
Benefits and other changes in policy reserves		FIA embedded derivatives		$	(43.7	)		$	145.8			$	265.6			$	320.1
Cost of consumer products and other goods sold		Commodity contracts		—				0.1				—				—
Other income and expense:
Other (expense) income , net		Oil and natural gas commodity contracts		$	(2.7	)		$	(2.2	)		$	21.3			$	(12.4	)
		Foreign exchange contracts		5.0				(0.2		)		(2.4		)		0.4
Gain (loss) from the change in the fair value of the equity conversion feature of preferred stock		Equity conversion feature of preferred stock		—				38.0				—				(12.7		)

Volumes and Fair Value of Oil and Natural Gas Derivative Financial Instruments

The following table presents Compass’ volumes and fair value of the oil derivative financial instrument as of June 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 June 30, 2015
Natural gas:
Swaps:
July - December 2015		5,520			$	3.95			$	5.8
Three-way collars:
July - October 2015		2,460							0.2
Short call					3.27
Long put					2.85
Short put					2.10
Total natural gas		7,980							$	6.0
Oil:
Swaps:
July - December 2015		125			$	94.98			$	4.3
Collars:
July - December 2015		55							$	—
Short call					67.50
Long put					50.00
Three-way collars:
January - December 2016		110							$	—
Short call					80.00
Long put					60.00
Short put					45.00
Total oil		290							$	4.3
Total oil and natural gas derivatives									$	10.3

Call options [Member]

Derivative [Line Items]

FGL's Exposure to Credit Loss on Call Options Held

Information regarding FGL’s exposure to credit loss on the call options it holds is presented in the following table:

				June 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		$	2,438.4			$	58.7			$	14.9			$	43.8			$	2,239.9			$	92.7			$	52.5			$	40.2
Deutsche Bank		A/A3/BBB+		2,660.1				71.8				39.4				32.4				2,810.0				108.0				72.5				35.5
Morgan Stanley		*/A1/A		3,746.8				88.3				64.5				23.8				2,294.7				85.0				63.0				22.0
Barclay's Bank		A/A2/A-		127.0				1.3				—				1.3				258.0				10.6				—				10.6
Total				$	8,972.3			$	220.1			$	118.8			$	101.3			$	7,602.6			$	296.3			$	188.0			$	108.3

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