Business Combinations (Tables)

12 Months Ended

Dec. 31, 2016

The fair value of consideration transferred and its allocation among the identified assets acquired, liabilities assumed, intangibles and residual goodwill are summarized as follows (in thousands):



Purchase price allocation
Cash and cash equivalents	$	621
Accounts receivable, net	5,558
Costs and recognized earnings in excess of billings on uncompleted contracts	1,686
Property, plant and equipment, net	8,043
Goodwill	11,827
Intangibles	3,955
Other assets	1,209
Total assets acquired	32,899
Accounts payable and other current liabilities	(5,924		)
Billings in excess of costs and recognized earnings on uncompleted contracts	(617		)
Deferred tax liability	(169		)
Other liabilities	(685		)
Total liabilities assumed	(7,395		)
Total net assets acquired	$	25,504

The fair value of consideration transferred and its allocation among the identified assets acquired, liabilities assumed, intangibles and residual goodwill are summarized as follows (in thousands):



Purchase price allocation
Fixed maturities, available for sale at fair value	$	1,230,038
Equity securities, available for sale at fair value	35,697
Mortgage loans	1,252
Policy loans	18,354
Other investments	183
Cash and cash equivalents	48,525
Recoverable from reinsurers	522,790
Accrued investment income	14,417
Goodwill	47,290
Intangibles	4,850
Other assets	12,566
Total assets acquired	1,935,962
Life, accident and health reserves	(1,592,722		)
Annuity reserves	(259,675		)
Value of business acquired	(51,584		)
Deferred tax liability	(1,704		)
Other liabilities	(11,540		)
Total liabilities assumed	(1,917,225		)
Total net assets acquired	$	18,737

fair value of consideration transferred was allocated among the identified assets acquired, liabilities assumed, intangibles and residual goodwill. For the two transactions accounted for as asset acquisitions the fair value of consideration transferred was allocated based on the relative fair value (in thousands):



Purchase price allocation
Accounts receivable	$	1,303
Property, plant and equipment, net	42,690
Goodwill	1,257
Intangibles	4,984
Other assets	79
Total assets acquired	50,313
Accounts payable and other current liabilities	(856		)
Deferred tax liability	(7,060		)
Total liabilities assumed	(7,916		)
Bargain purchase gain	(340		)
Total net assets acquired	$	42,057

The following table summarizes the preliminary allocation of the purchase price to the fair value of identifiable assets acquired, liabilities assumed, intangibles and residual goodwill (in thousands):



Purchase price allocation
Cash and cash equivalents	$	2,963
Restricted cash	3
Accounts receivable	6,400
Inventory	528
Property, plant and equipment, net	29,896
Goodwill	5,541
Intangibles	7,082
Other assets	2,051
Total assets acquired	54,464
Accounts payable and other current liabilities	(11,180		)
Deferred tax liability	(2,819		)
Long-term obligations	(20,813		)
Other liabilities	(3		)
Noncontrolling interest	(815		)
Total liabilities assumed	(35,630		)
Enterprise value	18,834
Less fair value of noncontrolling interest	3,889
Total net assets acquired	$	14,945

Business Acquisition, Pro Forma Information

The following schedule presents unaudited consolidated pro forma results of operations data as if the acquisition of the Insurance Companies had occurred on January 1, 2015. This information neither purports to be indicative of the actual results that would have occurred if those acquisitions had actually been completed on the date indicated, nor is it necessarily indicative of the future operating results or the financial position of the combined company (in thousands, except per share amounts):



	Year Ended December 31, 2015
Net revenue	$	1,243,173
Net income from continuing operations	$	23,026
Net loss attributable to HC2	$	23,202



Per share amounts:
Loss from continuing operations	$	(0.87	)
Net loss attributable to HC2	$	(0.87	)