Consolidating Financial Information (Tables)

9 Months Ended

Jun. 30, 2016

HRG Group, Inc. - Condensed Consolidating Balance Sheets Information



June 30, 2016	Consumer Products		Insurance		Energy		Asset Management		Corporate and Other		Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investments	$	—	$	4.3	$	—	$	48.8	$	—	$	—	$	(2.4	)	$	50.7
Investments in subsidiaries and affiliates	—		4.4		—		—		2,216.4		—		(2,220.8		)	—
Affiliated loans and receivables	—		20.3		—		0.8		0.3		—		(21.4		)	—
Cash and cash equivalents	117.0		33.9		5.7		118.6		212.3		—		—			487.5
Funds withheld receivables	—		1,698.1		—		—		—		—		(37.1		)	1,661.0
Receivables, net	650.1		0.5		6.3		1.0		0.4		—		—			658.3
Inventories, net	842.3		—		—		—		—		—		—			842.3
Deferred tax assets	9.3		17.5		—		0.1		183.8		—		68.6			279.3
Properties, including oil and natural gas properties, net	523.2		—		114.1		0.7		1.1		—		—			639.1
Goodwill	2,479.7		—		—		—		—		—		—			2,479.7
Intangibles	2,399.6		—		—		—		—		—		—			2,399.6
Other assets	114.0		14.8		1.1		0.4		1.4		—		16.7			148.4
Assets of business held for sale	—		—		—		—		—		26,164.9		—			26,164.9
Total assets	$	7,135.2	$	1,793.8	$	127.2	$	170.4	$	2,615.7	$	26,164.9	$	(2,196.4	)	$	35,810.8



Liabilities and Equity:
Insurance reserves	$	—	$	1,649.0	$	—		$	—		$	—	$	—	$	103.1		$	1,752.1
Debt	3,875.4		—		123.4			37.1			1,709.6		—		199.0			5,944.5
Accounts payable and other current liabilities	797.7		4.2		15.2			3.3			81.0		—		1.0			902.4
Employee benefit obligations	82.7		—		—			—			4.8		—		—			87.5
Deferred tax liabilities	552.4		—		—			—			261.6		—		1.3			815.3
Other liabilities	23.2		4.1		22.3			5.8			3.3		—		5.6			64.3
Affiliated debt and payables	—		0.1		100.1			183.6			—		—		(283.8		)	—
Liabilities of business held for sale	—		—		—			—			—		24,556.1		—			24,556.1
Total liabilities	5,331.4		1,657.4		261.0			229.8			2,060.3		24,556.1		26.2			34,122.2
Total stockholders’ equity	1,017.3		136.4		(133.8		)	(56.9		)	555.4		1,259.6		(2,222.6		)	555.4
Noncontrolling interests	786.5		—		—			(2.5		)	—		349.2		—			1,133.2
Total permanent equity	1,803.8		136.4		(133.8		)	(59.4		)	555.4		1,608.8		(2,222.6		)	1,688.6
Total liabilities and equity	$	7,135.2	$	1,793.8	$	127.2		$	170.4		$	2,615.7	$	26,164.9	$	(2,196.4	)	$	35,810.8



September 30, 2015 (As Adjusted)	Consumer Products		Insurance		Energy			Asset Management			Corporate and Other		Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investments	$	—	$	23.7	$	—		$	223.9		$	32.8	$	—	$	(1.5	)	$	278.9
Investment in subsidiaries and affiliates	—		10.6		—			—			2,014.7		—		(2,025.3		)	—
Affiliated loans and receivables	—		31.1		—			1.1			0.1		—		(32.3		)	—
Cash and cash equivalents	247.9		18.0		34.2			94.7			300.4		—		—			695.2
Funds withheld receivables	—		1,743.8		—			—			—		—		(33.7		)	1,710.1
Receivables, net	586.6		25.6		19.1			0.7			0.8		—		0.1			632.9
Inventories, net	780.8		—		—			—			—		—		—			780.8
Deferred tax assets	9.3		23.6		—			0.2			3.9		—		14.2			51.2
Properties, including oil and natural gas properties, net	507.1		—		288.9			1.1			1.3		—		—			798.4
Goodwill	2,476.7		—		—			10.7			—		—		—			2,487.4
Intangibles	2,480.3		—		—			—			—		—		—			2,480.3
Other assets	105.1		7.4		1.1			2.1			1.5		—		17.1			134.3
Assets of business held for sale	—		—		—			—			—		24,984.5		—			24,984.5
Total assets	$	7,193.8	$	1,883.8	$	343.3		$	334.5		$	2,355.5	$	24,984.5	$	(2,061.4	)	$	35,034.0

Liabilities and Equity:
Insurance reserves	$	—	$	1,731.9	$	—		$	—		$	—	$	—	$	124.1		$	1,856.0
Debt	3,905.9		—		325.9			42.9			1,705.1		—		330.7			6,310.5
Accounts payable and other current liabilities	993.0		5.4		33.6			7.7			53.7		—		2.2			1,095.6
Employee benefit obligations	88.1		—		—			—			4.8		—		—			92.9
Deferred tax liabilities	572.6		—		—			—			1.9		—		—			574.5
Other liabilities	27.3		7.1		39.1			10.3			3.3		—		8.4			95.5
Affiliated debt and payables	—		—		102.2			313.1			—		—		(415.3		)	—
Liabilities of business held for sale	—		—		—			—			—		23,420.9		—			23,420.9
Total liabilities	5,586.9		1,744.4		500.8			374.0			1,768.8		23,420.9		50.1			33,445.9
Total stockholders’ equity	900.4		139.4		(157.2		)	(41.8		)	586.7		1,270.7		(2,111.5		)	586.7
Noncontrolling interests	706.5		—		(0.3		)	2.3			—		292.9		—			1,001.4
Total permanent equity	1,606.9		139.4		(157.5		)	(39.5		)	586.7		1,563.6		(2,111.5		)	1,588.1
Total liabilities and equity	$	7,193.8	$	1,883.8	$	343.3		$	334.5		$	2,355.5	$	24,984.5	$	(2,061.4	)	$	35,034.0

Schedule of Income Statement Information

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



Nine months ended June 30, 2016	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Discontinued Operations			Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	3,790.0		$	—		$	—		$	—		$	—		$	—		$	—		$	3,790.0
Oil and natural gas	—			—			36.0			—			—			—			—			36.0
Net investment income	—			2.1			—			7.9			—			—			43.3			53.3
Net investment gains (losses)	—			97.7			—			—			—			—			(33.1		)	64.6
Insurance and investment product fees and other	—			—			—			0.9			—			—			5.3			6.2
Total revenues	3,790.0			99.8			36.0			8.8			—			—			15.5			3,950.1
Operating costs and expenses:
Cost of consumer products and other goods sold	2,355.8			—			—			—			—			—			—			2,355.8
Oil and natural gas direct operating costs	—			—			35.4			—			—			—			—			35.4
Benefits and other changes in policy reserves	—			93.4			—			—			—			—			(19.1		)	74.3
Selling, acquisition, operating and general expenses	865.9			4.6			20.6			14.6			39.8			—			2.3			947.8
Impairments and bad debt expense	—			—			93.2			14.2			—			—			(0.9		)	106.5
Amortization of intangibles	70.5			—			—			—			—			—			—			70.5
Total operating costs and expenses	3,292.2			98.0			149.2			28.8			39.8			—			(17.7		)	3,590.3
Operating income (loss)	497.8			1.8			(113.2		)	(20.0		)	(39.8		)	—			33.2			359.8
Equity in net income of subsidiaries	—			—			—			—			(61.0		)	—			61.0			—
Interest expense	(175.8		)	—			(5.3		)	—			(107.2		)	—			(3.4		)	(291.7		)
Affiliated interest expense	—			—			(6.8		)	(3.1		)	0.5			—			9.4			—
Gain on sale of oil and gas properties	—			—			105.6			—			—			—			—			105.6
Other (expense) income, net	(6.5		)	—			—			0.6			3.8			—			0.4			(1.7		)
Income (loss) from continuing operations before income taxes	315.5			1.8			(19.7		)	(22.5		)	(203.7		)	—			100.6			172.0
Income tax expense (benefit)	46.9			5.1			—			0.2			(12.2		)	—			(55.0		)	(15.0		)
Net income (loss) from continuing operations	268.6			(3.3		)	(19.7		)	(22.7		)	(191.5		)	—			155.6			187.0
(Loss) income from discontinued operations, net of tax	—			—			—			—			—			(257.1		)	—			(257.1		)
Net income (loss)	268.6			(3.3		)	(19.7		)	(22.7		)	(191.5		)	(257.1		)	155.6			(70.1		)
Less: Net income (loss) attributable to noncontrolling interest	113.5			—			—			(5.2		)	—			13.1			—			121.4
Net income (loss) attributable to controlling interest	$	155.1		$	(3.3	)	$	(19.7	)	$	(17.5	)	$	(191.5	)	$	(270.2	)	$	155.6		$	(191.5	)



Nine months ended June 30, 2015	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	3,382.3		$	—		$	—		$	—		$	42.7		$	—	$	—		$	3,425.0
Oil and natural gas	—			—			84.6			—			—			—		—			84.6
Net investment income	—			7.6			—			20.2			—			—		37.6			65.4
Net investment (losses) gain	—			(80.0		)	—			—			—			—		14.6			(65.4		)
Insurance and investment product fees and other	—			—			—			0.1			—			—		5.0			5.1
Total revenues	3,382.3			(72.4		)	84.6			20.3			42.7			—		57.2			3,514.7
Operating costs and expenses:
Cost of consumer products and other goods sold	2,179.4			—			—			—			30.9			—		—			2,210.3
Oil and natural gas operating costs	—			—			66.1			—			—			—		—			66.1
Benefits and other changes in policy reserves	—			0.6			—			—			—			—		33.3			33.9
Selling, acquisition, operating and general expenses	799.2			6.3			49.7			30.8			141.0			—		3.0			1,030.0
Impairments and bad debt expense	—			—			439.4			72.2			60.2			—		5.2			577.0
Amortization of intangibles	64.0			—			—			—			—			—		—			64.0
Total operating costs and expenses	3,042.6			6.9			555.2			103.0			232.1			—		41.5			3,981.3
Operating income (loss)	339.7			(79.3		)	(470.6		)	(82.7		)	(189.4		)	—		15.7			(466.6		)
Equity in net loss of subsidiaries	—			—			—			—			(247.1		)	—		247.1			—
Interest expense	(206.5		)	—			(7.3		)	—			(88.5		)	—		(4.3		)	(306.6		)
Affiliated interest expense	—			—			(6.8		)	(14.8		)	(2.9		)	—		24.5			—
Gain on deconsolidation of subsidiary	—			—			—			—			38.5			—		—			38.5
Gain upon gaining control of equity method investment	—			—			141.2			—			—			—		—			141.2
Other (expense) income, net	(5.6		)	—			21.6			(1.4		)	41.5			—		(6.2		)	49.9
Income (loss) from continuing operations before income taxes	127.6			(79.3		)	(321.9		)	(98.9		)	(447.9		)	—		276.8			(543.6		)
Income tax expense (benefit)	4.8			(27.7		)	—			—			(13.2		)	—		3.5			(32.6		)
Net income (loss) from continuing operations	122.8			(51.6		)	(321.9		)	(98.9		)	(434.7		)	—		273.3			(511.0		)
Income from discontinued operations, net of tax	—			—			—			—			—			125.7		—			125.7
Net income (loss)	122.8			(51.6		)	(321.9		)	(98.9		)	(434.7		)	125.7		273.3			(385.3		)
Less: Net income (loss) attributable to noncontrolling interest	51.3			—			(0.8		)	(18.2		)	(21.0		)	17.1		—			28.4
Net income (loss) attributable to controlling interest	$	71.5		$	(51.6	)	$	(321.1	)	$	(80.7	)	$	(413.7	)	$	108.6	$	273.3		$	(413.7	)