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Divestitures Divestitures (Notes)
 6 Months Ended
Mar. 31, 2017
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 “(Loss) income from discontinued operations, net of tax” in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2017 and 2016:
 
Three months ended March 31,
 
Six months ended March 31,
 
2017
 
2016
 
2017
 
2016
(Loss) income from discontinued operations, net of tax attributable to FGL
$
(54.4
)
 
$
(13.1
)
 
$
204.4

 
$
(48.7
)
Loss from discontinued operations, net of tax attributable to Compass Production Partners, LP (“Compass”)
—

 
(34.5
)
 
—

 
(1.4
)
(Loss) income from discontinued operations, net of tax
$
(54.4
)
 
$
(47.6
)
 
$
204.4

 
$
(50.1
)

FGL
As previously discussed in Note 1, Description of Business, 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 March 31, 2017 and September 30, 2016:
 
March 31,
2017
 
September 30,
2016
Assets
 
 
 
Investments, including loans and receivables from affiliates
$
21,937.5

 
$
21,140.9

Cash and cash equivalents
887.4

 
863.9

Accrued investment income
224.5

 
213.7

Reinsurance recoverable
3,426.3

 
3,463.9

Deferred tax assets
68.0

 
—

Properties, plant and equipment, net
22.2

 
18.5

Deferred acquisition costs and value of business acquired, net
1,222.7

 
1,065.5

Other assets
181.0

 
335.1

Write-down of assets of business held for sale to fair value less cost to sell
(291.1
)
 
(362.8
)
Total assets of business held for sale
$
27,678.5

 
$
26,738.7

Liabilities
 
 
 
Insurance reserves
$
24,680.8

 
$
23,944.6

Debt
405.0

 
398.8

Accounts payable and other current liabilities
136.7

 
57.0

Deferred tax liabilities
—

 
9.9

Other liabilities
773.2

 
689.9

Total liabilities of business held for sale
$
25,995.7

 
$
25,100.2


In accordance with ASC 360, Property, Plant and Equipment, a long-lived asset classified as held for sale is measured at the lower of its carrying value or fair value less cost to sell at the balance sheet date. FGL’s common stock is actively traded and at March 31, 2017, the Company measured the fair value less cost to sell of its investment in FGL as the product of the closing price of FGL’s common stock (NYSE: FGL) at the balance sheet date of $27.80 and the quantity of such shares owned by the Company. At March 31, 2017, the carrying value of the Company’s interest in FGL was $291.1 higher than the fair value less cost to sell and as a result, during the six months ended March 31, 2017, the Company partially reversed the previously recorded $362.8 write-down of assets of business held for sale by $71.7.
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 completion of any disposition resulting from the FGL Strategic Evaluation Process. 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:
 
March 31,
2017
 
September 30,
2016
Assets
 
 
 
Funds withheld receivable
$
938.6

 
$
978.8

Other assets
14.8

 
15.1

Assets of business held for sale
1,310.6

 
1,375.5

Total assets
$
2,264.0

 
$
2,369.4

Liabilities
 
 
 
Insurance reserves
$
1,067.0

 
$
1,119.5

Debt
51.8

 
63.0

Liabilities of business held for sale
1,145.2

 
1,186.9

Total liabilities
$
2,264.0

 
$
2,369.4


The following table summarizes the components of “Net (loss) income from discontinued operations” in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2017 and 2016:
 
Three months ended March 31,
 
Six months ended March 31,
 
2017
 
2016
 
2017
 
2016
Revenues:
 
 
 
 
 
 
 
Insurance premiums
$
2.7

 
$
16.2

 
$
13.8

 
$
31.6

Net investment income
246.4

 
226.7

 
486.2

 
448.9

Net investment gains (losses)
80.0

 
(39.2
)
 
136.3

 
27.0

Insurance and investment product fees and other
43.9

 
31.7

 
82.2

 
60.5

Total revenues
373.0

 
235.4

 
718.5

 
568.0

Operating costs and expenses:
 
 
 
 
 
 
 
Benefits and other changes in policy reserves
268.0

 
188.1

 
287.9

 
369.0

Selling, acquisition, operating and general expenses
32.6

 
28.4

 
60.9

 
56.6

Amortization of intangibles
36.5

 
0.4

 
156.5

 
33.9

Total operating costs and expenses
337.1

 
216.9

 
505.3

 
459.5

Operating income
35.9

 
18.5

 
213.2

 
108.5

Interest expense
(6.0
)
 
(5.9
)
 
(12.1
)
 
(11.8
)
(Write-down) write-up of assets of business held for sale to fair value less cost to sell
(72.8
)
 
(23.5
)
 
71.7

 
(23.5
)
Net (loss) income before income taxes
(42.9
)
 
(10.9
)
 
272.8

 
73.2

Income tax expense (a)
11.5

 
2.2

 
68.4

 
121.9

Net (loss) income
(54.4
)
 
(13.1
)
 
204.4

 
(48.7
)
Less: net income attributable to noncontrolling interest
6.4

 
1.8

 
27.5

 
11.2

Net (loss) income - attributable to controlling interest
$
(60.8
)
 
$
(14.9
)
 
$
176.9

 
$
(59.9
)

(a) Included in the income tax expense for the six months ended March 31, 2016 was a $90.9 of net income tax expense related to the establishment of a deferred tax liability of $328.6 at March 31, 2016, which was a result of classifying the Company’s ownership interest in FGL as held for sale. The deferred tax liability was partially offset by a $237.7 reduction of valuation allowance on HRG’s net operating and capital loss carryforwards expected to offset the FGL taxable gain at March 31, 2016. The remaining liability is expected to be offset by current year losses recognized in continuing operations except for the $13.2 of estimated alternative minimum taxes.
Compass
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 accounted for using the full-cost method prior to their disposal. The Company has determined that the completion of HGI Energy’s sale of its equity interests in Compass to a third party 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 (loss) income from discontinued operations” attributable to Compass in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2016.
 
Three months ended
 
Six months ended
 
March 31, 2016
Revenues:
 
 
 
Oil and natural gas revenues
$
9.5

 
$
26.3

 
 
 
 
Operating costs and expenses:
 
 
 
Oil and natural gas direct operating costs
9.2

 
26.3

Selling, acquisition, operating and general expenses
5.8

 
15.6

Impairments
21.2

 
75.6

Total operating costs and expenses
36.2

 
117.5

Operating loss
(26.7
)
 
(91.2
)
Interest expense
(1.4
)
 
(3.7
)
Gain on sale of oil and gas properties
—

 
105.6

Other income, net
0.5

 
2.3

Net (loss) income before income taxes
(27.6
)
 
13.0

Income tax expense
6.9

 
14.4

Net loss
$
(34.5
)
 
$
(1.4
)