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Divestitures Divestitures (Notes) | 3 Months Ended
--- | ---
Dec. 31, 2016
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (4) Divestitures The following table summarizes the components of “Income (loss) from discontinued operations, net of tax” in the accompanying Condensed Consolidated Statements of Operations for the three months ended December 31, 2016 and 2015:
| Three months ended December 31,
| 2016 |  | 2015
Income (loss) from discontinued operations, net of tax attributable to FGL | $ | 258.8 |  |  | $ | (35.6 | )
Income from discontinued operations, net of tax attributable to Compass Production Partners, LP (“Compass”) | — |  |  | 33.1 |
Income (loss) from discontinued operations, net of tax | $ | 258.8 |  |  | $ | (2.5 | )
FGL Merger Agreement As previously discussed in Note 1, Description of Business, as a result of the FGL Merger Agreement, the Company’s ownership interest in FGL has been classified as held for sale in the accompanying Condensed Consolidated Balance Sheets and FGL’s operations were classified as discontinued operations in the accompanying Condensed Consolidated Statements of Operations. The following table summarizes the major categories of assets and liabilities of FGL classified as held for sale in the accompanying Condensed Consolidated Balance Sheets at December 31, 2016 and September 30, 2016:
| December 31, 2016 |  | September 30, 2016
Assets |  |  |
Investments, including loans and receivables from affiliates | $ | 21,192.8 |  |  | $ | 21,140.9 |
Cash and cash equivalents | 631.9 |  |  | 863.9 |
Accrued investment income | 200.7 |  |  | 213.7 |
Reinsurance recoverable | 3,443.7 |  |  | 3,463.9 |
Deferred tax assets | 47.2 |  |  | — |
Properties, plant and equipment, net | 19.7 |  |  | 18.5 |
Deferred acquisition costs and value of business acquired, net | 1,270.9 |  |  | 1,065.5 |
Other assets | 213.0 |  |  | 335.1 |
Write-down of assets of business held for sale to fair value less cost to sell | (218.3 | ) |  | (362.8 | )
Total assets of business held for sale | $ | 26,801.6 |  |  | $ | 26,738.7 |
Liabilities |  |  |
Insurance reserves | $ | 24,134.3 |  |  | $ | 23,944.6 |
Debt | 400.0 |  |  | 398.8 |
Accounts payable and other current liabilities | 39.6 |  |  | 57.0 |
Deferred tax liabilities | — |  |  | 9.9 |
Other liabilities | 626.6 |  |  | 689.9 |
Total liabilities of business held for sale | $ | 25,200.5 |  |  | $ | 25,100.2 |
At December 31, 2016, the carrying value of the Company’s interest in FGL was $218.3 higher than the fair value less cost to sell based on the sales price and as a result, during the three months ended December 31, 2016, the Company partially reversed the previously recorded $362.8 write-down of assets of business held for sale by $144.5. The balances included in the accompanying Condensed Consolidated Balance Sheets and in the table above reflect transactions between the businesses held for sale and businesses held for use that are expected to continue to exist after the closing of the FGL Merger. Such transactions are not eliminated to reflect the continuing operations and balances held for sale. As a result, adjustments to the carrying value of certain intercompany assets recorded by FGL were reversed upon consolidation in the Company’s Condensed Consolidated Financial Statements. Below is a summary of the impact of such intercompany balances in the accompanying Condensed Consolidated Balance Sheets:
| December 31, 2016 |  | September 30, 2016
Assets |  |  |
Funds withheld receivable | $ | 939.5 |  |  | $ | 978.8 |
Other assets | 15.0 |  |  | 15.1 |
Assets of business held for sale | 1,349.0 |  |  | 1,375.5 |
Total assets | $ | 2,303.5 |  |  | $ | 2,369.4 |
Liabilities |  |  |
Insurance reserves | $ | 1,087.5 |  |  | $ | 1,119.5 |
Debt | 58.8 |  |  | 63.0 |
Liabilities of business held for sale | 1,157.2 |  |  | 1,186.9 |
Total liabilities | $ | 2,303.5 |  |  | $ | 2,369.4 |
The following table summarizes the components of “Net income (loss) from discontinued operations” in the accompanying Condensed Consolidated Statements of Operations for the three months ended December 31, 2016 and 2015:
| Three months ended December 31,
| 2016 |  | 2015
Revenues: |  |  |
Insurance premiums | $ | 11.1 |  |  | $ | 15.4 |
Net investment income | 239.8 |  |  | 222.2 |
Net investment gains | 56.3 |  |  | 66.2 |
Insurance and investment product fees and other | 38.3 |  |  | 28.8 |
Total revenues | 345.5 |  |  | 332.6 |
Operating costs and expenses: |  |  |
Benefits and other changes in policy reserves | 19.9 |  |  | 180.9 |
Selling, acquisition, operating and general expenses | 28.3 |  |  | 28.2 |
Amortization of intangibles | 120.0 |  |  | 33.5 |
Total operating costs and expenses | 168.2 |  |  | 242.6 |
Operating income | 177.3 |  |  | 90.0 |
Interest expense | (6.1 | ) |  | (5.9 | )
Write-up of assets of business held for sale to fair value less cost to sell | 144.5 |  |  | — |
Net income before income taxes | 315.7 |  |  | 84.1 |
Income tax expense (a) | 56.9 |  |  | 119.7 |
Net income (loss) | 258.8 |  |  | (35.6 | )
Less: net income attributable to noncontrolling interest | 21.1 |  |  | 9.4 |
Net income (loss) - attributable to controlling interest | $ | 237.7 |  |  | $ | (45.0 | )
(a) Included in the income tax expense for the three months ended December 31, 2015 was a $90.9 net income tax expense related to the establishment of a deferred tax liability of $338.6 at December 31, 2015, which was a result of classifying the Company’s ownership interest in FGL as held for sale, partially offset by a $247.7 reduction of valuation allowance on HRG’s net operating and capital loss carryforwards expected to offset the FGL taxable gain. Compass Sale On July 1, 2016, HGI Energy entered into an agreement to sell its equity interests in Compass to a third party (such agreement, the “Compass Sale Agreement”). During the fourth quarter of the fiscal year 2016, the transactions contemplated by the Compass Sale Agreement were consummated. This sale represented the disposal of all of the Company’s oil and gas properties, which were prior to their disposal accounted for using the full-cost method. The Company has determined that the completion of HGI Energy’s sale of its equity interests in Compass to a third party (the “Compass Sale”) represented a strategic shift for the Company and, accordingly, has presented the results of operations for Compass as discontinued operations in the accompanying Condensed Consolidated Statements of Operations. The following table summarizes the components of “Net income (loss) from discontinued operations” attributable to Compass in the accompanying Condensed Consolidated Statements of Operations for the three months ended December 31, 2015.
| Three months ended December 31, 2015
Revenues: |
Oil and natural gas revenues | $ | 16.8 |
Operating costs and expenses: |
Oil and natural gas direct operating costs | 17.1 |
Selling, acquisition, operating and general expenses | 9.8 |
Impairments | 54.4 |
Total operating costs and expenses | 81.3 |
Operating loss | (64.5 | )
Interest expense | (2.3 | )
Gain on sale of oil and gas properties | 105.6 |
Other income, net | 1.8 |
Net income before income taxes | 40.6 |
Income tax expense | 7.5 |
Net income | $ | 33.1 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 45 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=65878427&loc=SL51721533-107759 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721665-107760 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5C -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721675-107760 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=64862545&loc=SL51724579-110230 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721663-107760 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 360 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64862545&loc=d3e2941-110230 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1361-107760 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5B -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721673-107760 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721659-107760 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5A -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721671-107760 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 5D -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721677-107760 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=64827811&loc=d3e1474-107760 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 205 -SubTopic 20 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=64827811&loc=SL51721683-107760 + Details
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