Consolidating Financial Information (Tables)

6 Months Ended

Mar. 31, 2017

HRG Group, Inc. - Condensed Consolidating Balance Sheets Information



March 31, 2017	Consumer Products		Insurance		Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investments in subsidiaries and affiliates	$	—	$	0.6	$	2,445.2		$	—	$	(2,445.8	)	$	—
Affiliated loans and receivables	—		20.3		0.2			—		(20.5		)	—
Cash and cash equivalents	137.2		25.4		157.7			—		—			320.3
Funds withheld receivables	—		1,700.2		—			—		(66.0		)	1,634.2
Receivables, net	572.8		8.2		3.3			—		—			584.3
Inventories, net	836.3		—		—			—		—			836.3
Deferred tax assets	18.3		—		—			—		13.3			31.6
Property, plant and equipment, net	660.8		—		0.9			—		—			661.7
Goodwill	2,473.8		—		—			—		—			2,473.8
Intangibles, net	2,312.5		—		—			—		—			2,312.5
Other assets	117.7		22.2		7.7			—		16.0			163.6
Assets of business held for sale	—		—		—			27,678.5		—			27,678.5
Total assets	$	7,129.4	$	1,776.9	$	2,615.0		$	27,678.5	$	(2,503.0	)	$	36,696.8

Liabilities and Equity
Insurance reserves	$	—	$	1,664.8	$	—		$	—	$	63.4		$	1,728.2
Debt	3,780.8		—		1,793.4			—		49.7			5,623.9
Accounts payable and other current liabilities	803.1		8.3		37.1			—		0.5			849.0
Employee benefit obligations	107.8		—		4.4			—		—			112.2
Deferred tax liabilities	577.7		—		11.1			—		—			588.8
Other liabilities	23.4		2.7		4.6			—		—			30.7
Affiliated debt and payables	—		0.2		161.7			—		(161.9		)	—
Liabilities of business held for sale	—		—		—			25,995.7		—			25,995.7
Total liabilities	5,292.8		1,676.0		2,012.3			25,995.7		(48.3		)	34,928.5
Total stockholders’ equity	1,047.2		100.9		605.0			1,306.6		(2,454.7		)	605.0
Noncontrolling interests	789.4		—		(2.3		)	376.2		—			1,163.3
Total permanent equity	1,836.6		100.9		602.7			1,682.8		(2,454.7		)	1,768.3
Total liabilities and equity	$	7,129.4	$	1,776.9	$	2,615.0		$	27,678.5	$	(2,503.0	)	$	36,696.8



September 30, 2016	Consumer Products		Insurance		Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investment in subsidiaries and affiliates	$	—	$	3.4	$	2,405.3		$	—	$	(2,408.7	)	$	—
Affiliated loans and receivables	—		20.3		0.2			—		(20.5		)	—
Cash and cash equivalents	275.3		32.1		189.9			—		—			497.3
Funds withheld receivables	—		1,725.0		—			—		(74.6		)	1,650.4
Receivables, net	538.2		17.4		0.7			—		—			556.3
Inventories, net	740.6		—		—			—		—			740.6
Deferred tax assets	18.3		8.6		—			—		15.7			42.6
Property, plant and equipment, net	542.1		—		1.3			—		—			543.4
Goodwill	2,478.4		—		—			—		—			2,478.4
Intangibles, net	2,372.5		—		—			—		—			2,372.5
Other assets	103.7		18.1		34.6			—		16.2			172.6
Assets of business held for sale	—		—		—			26,738.7		—			26,738.7
Total assets	$	7,069.1	$	1,824.9	$	2,632.0		$	26,738.7	$	(2,471.9	)	$	35,792.8

Liabilities and Equity:
Insurance reserves	$	—	$	1,685.9	$	—		$	—	$	65.4		$	1,751.3
Debt	3,620.2		—		1,747.7			—		63.0			5,430.9
Accounts payable and other current liabilities	931.6		6.1		51.6			—		0.5			989.8
Employee benefit obligations	120.2		—		5.2			—		—			125.4
Deferred tax liabilities	532.7		—		13.3			—		—			546.0
Other liabilities	20.4		3.5		8.3			—		(0.2		)	32.0
Affiliated debt and payables	—		0.2		171.2			—		(171.4		)	—
Liabilities of business held for sale	—		—		—			25,100.2		—			25,100.2
Total liabilities	5,225.1		1,695.7		1,997.3			25,100.2		(42.7		)	33,975.6
Total stockholders’ equity	1,040.4		129.2		638.1			1,259.6		(2,429.2		)	638.1
Noncontrolling interests	803.6		—		(3.4		)	378.9		—			1,179.1
Total permanent equity	1,844.0		129.2		634.7			1,638.5		(2,429.2		)	1,817.2
Total liabilities and equity	$	7,069.1	$	1,824.9	$	2,632.0		$	26,738.7	$	(2,471.9	)	$	35,792.8

Schedule of Income Statement Information

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



Six months ended March 31, 2017	Consumer Products			Insurance			Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	2,381.7		$	—		$	—		$	—	$	—		$	2,381.7
Net investment income	—			0.1			1.0			—		22.5			23.6
Net investment gains (losses)	—			12.2			—			—		(14.0		)	(1.8		)
Insurance and investment product fees and other	—			—			—			—		2.2			2.2
Total revenues	2,381.7			12.3			1.0			—		10.7			2,405.7
Operating costs and expenses:
Cost of consumer products and other goods sold	1,476.5			—			—			—		—			1,476.5
Benefits and other changes in policy reserves	—			26.3			—			—		(4.9		)	21.4
Selling, acquisition, operating and general expenses	610.0			5.5			31.3			—		(0.2		)	646.6
Total operating costs and expenses	2,086.5			31.8			31.3			—		(5.1		)	2,144.5
Operating income	295.2			(19.5		)	(30.3		)	—		15.8			261.2
Equity in net income of subsidiaries	—			—			231.4			—		(231.4		)	—
Interest expense	(106.4		)	—			(73.6		)	—		—			(180.0		)
Affiliated interest expense	—			—			(3.7		)	—		3.7			—
Other expense, net	(0.8		)	0.1			0.5			—		(0.4		)	(0.6		)
Income from continuing operations before income taxes	188.0			(19.4		)	124.3			—		(212.3		)	80.6
Income tax expense (benefit)	64.1			8.7			(5.7		)	—		8.5			75.6
Net income from continuing operations	123.9			(28.1		)	130.0			—		(220.8		)	5.0
(Loss) income from discontinued operations, net of tax	—			—			—			204.4		—			204.4
Net (loss) income	123.9			(28.1		)	130.0			204.4		(220.8		)	209.4
Less: Net income attributable to noncontrolling interest	51.9			—			(0.1		)	27.5		—			79.3
Net (loss) income attributable to controlling interest	$	72.0		$	(28.1	)	$	130.1		$	176.9	$	(220.8	)	$	130.1



Six months ended March 31, 2016	Consumer Products			Insurance			Corporate and Other			Discontinued Operations			Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	2,428.4		$	—		$	—		$	—		$	—		$	2,428.4
Net investment income	—			1.5			6.7			—			28.3			36.5
Net investment gains (losses)	—			28.6			—			—			(20.9		)	7.7
Insurance and investment product fees and other	—			—			0.9			—			3.2			4.1
Total revenues	2,428.4			30.1			7.6			—			10.6			2,476.7
Operating costs and expenses:
Cost of consumer products and other goods sold	1,524.9			—			—			—			—			1,524.9
Benefits and other changes in policy reserves	—			26.1			—			—			17.2			43.3
Selling, acquisition, operating and general expenses	612.5			5.4			48.7			—			(0.4		)	666.2
Total operating costs and expenses	2,137.4			31.5			48.7			—			16.8			2,234.4
Operating income	291.0			(1.4		)	(41.1		)	—			(6.2		)	242.3
Equity in net income of subsidiaries	—			—			44.7			—			(44.7		)	—
Interest expense	(115.9		)	—			(71.4		)	—			(2.3		)	(189.6		)
Affiliated interest expense	—			—			(7.6		)	—			7.6			—
Other expense, net	(4.3		)	—			3.9			—			(0.3		)	(0.7		)
Income from continuing operations before income taxes	170.8			(1.4		)	(71.5		)	—			(45.9		)	52.0
Income tax expense (benefit)	4.4			(1.8		)	(12.9		)	—			(10.7		)	(21.0		)
Net income from continuing operations	166.4			0.4			(58.6		)	—			(35.2		)	73.0
(Loss) income from discontinued operations, net of tax	—			—			—			(50.1		)	—			(50.1		)
Net (loss) income	166.4			0.4			(58.6		)	(50.1		)	(35.2		)	22.9
Less: Net income attributable to noncontrolling interest	70.3			—			—			11.2			—			81.5
Net (loss) income attributable to controlling interest	$	96.1		$	0.4		$	(58.6	)	$	(61.3	)	$	(35.2	)	$	(58.6	)