Derivative Financial Instruments Derivative Financial Instruments (Tables)

12 Months Ended

Sep. 30, 2014

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Fair Value of Outstanding Derivative Contracts in Condensed Consolidated Balance Sheets

The fair value of outstanding derivative contracts recorded in the accompanying Consolidated Balance Sheets were as follows:

		September 30,
Asset Derivatives	Classification	2014		2013
Derivatives designated as hedging instruments:
Interest rate contracts	Other assets	$	0.6	$	—
Commodity swap and option agreements	Receivables, net	1.3		0.4
Foreign exchange contracts	Other assets	0.3		—
Foreign exchange contracts	Receivables, net	12.0		1.7
Total asset derivatives designated as hedging instruments		14.2		2.1
Derivatives not designated as hedging instruments:
Commodity contracts	Receivables, net	1.9		3.7
Call options	Derivatives	296.3		221.8
Other embedded derivatives	Other invested assets	11.2		—
Foreign exchange contracts	Receivables, net	0.5		0.1
Total asset derivatives		$	324.1	$	227.7

		September 30,
Liability Derivatives	Classification	2014		2013
Derivatives designated as hedging instruments:
Interest rate contracts	Accounts payable and other current liabilities	$	1.8	$	—
Commodity contracts	Accounts payable and other current liabilities	0.1		0.5
Foreign exchange forward agreements	Accounts payable and other current liabilities	—		4.6
Foreign exchange contracts	Other liabilities	—		0.1
Total liability derivatives designated as hedging instruments		1.9		5.2
Derivatives not designated as hedging instruments:
Commodity contracts	Other liabilities	0.3		1.9
FIA embedded derivative	Contractholder funds	1,908.1		1,544.4
Futures contracts	Other liabilities	0.5		1.0
Foreign exchange forward contracts	Accounts payable and other current liabilities	0.1		5.3
Equity conversion feature of preferred stock	Equity conversion feature of preferred stock	—		330.8
Total liability derivatives		$	1,910.9	$	1,888.6

Pretax Impact of Derivative Instruments Designated as Cash Flow Hedges on Accompanying Condensed Consolidated Statements of Operations, and Within AOCI

The following table summarizes the pretax impact of derivative instruments designated as cash flow hedges on the accompanying Consolidated Statements of Operations, and within AOCI, for Fiscal 2014, 2013 and 2012:

Derivatives in Cash Flow Hedging Relationships	Amount of Gain (Loss) Recognized in AOCI on Derivatives (Effective Portion)									Amount of Gain (Loss) Reclassified from AOCI into Income (Effective Portion)									Amount of Gain (Loss) Recognized in Income on Derivatives (Ineffective Portion and Amount Excluded from Effectiveness Testing)							Classification
Fiscal	2014			2013			2012			2014			2013			2012			2014		2013		2012
Interest rate contracts	$	(1.6	)	$	—		$	—		$	(0.9	)	$	—		$	(0.9	)	$	—	$	—	$	—		Consumer products cost of goods sold
Commodity contracts	1.9			(2.6		)	1.6			0.7			(0.6		)	(1.1		)	—		—		0.1		(a)	Interest expense
Foreign exchange contracts	0.1			0.9			0.1			0.2			0.9			(0.5		)	—		—		—			Net consumer products sales
Foreign exchange contracts	12.7			(0.3		)	(3.5		)	(2.6		)	0.6			(0.6		)	—		—		—			Consumer products cost of goods sold
Total	$	13.1		$	(2.0	)	$	(1.8	)	$	(2.6	)	$	0.9		$	(3.1	)	$	—	$	—	$	0.1

(a) Reclassified from AOCI associated with the prepayment of portions of Spectrum Brands’ senior credit facility (see Note 15, Debt).

Summary of Gain (Loss) Recognized in Income on Derivatives

During Fiscal 2014, 2013 and 2012, the Company recognized the following gains and losses on these derivatives:

Classification	Derivatives Not Designated as Hedging Instruments	Amounts Recognized in Income on Derivatives
		Fiscal
		2014			2013			2012
Revenues:
Net investment gains	Call options	$	246.0		$	151.6		$	100.0
	Futures contracts	25.5			17.5			46.0
	Change in fair value of other embedded derivatives	(0.1		)	—			—
Net investment income	Available-for-sale embedded derivatives	—			—			0.4
Operating costs and expenses:
Cost of consumer products and other goods sold	Commodity contracts	$	(0.1	)	$	(0.1	)	$	—
Benefits and other changes in policy reserves	FIA embedded derivatives	363.7			(6.4		)	154.5
Other income and expense:
Loss from the change in the fair value of the equity conversion feature of preferred stock	Equity conversion feature of preferred stock	$	(12.7	)	$	(101.6	)	$	(156.6	)
Other expense, net	Oil and natural gas commodity contracts	(6.6		)	(1.3		)	—
	Foreign exchange contracts	3.1			(3.6		)	5.9

Volumes and Fair Value of Oil and Natural Gas Derivative Financial Instruments

The following table presents the volumes and fair value of Compass’ oil and natural gas derivative financial instruments as of September 30, 2014 (presented on a calendar-year basis):

(in millions, except volumes and prices)	Volume Mmmbtus/Mbbls	Weighted average strike price per Mmbtu/Bbl		September 30, 2014
Natural gas:
Swaps:
Remainder of 2014	4,106	$	4.15	$	0.2
2015	2,715	3.98		(0.1		)
Total natural gas	6,821			$	0.1
Oil:
Swaps:
Remainder of 2014	68	$	91.87	$	0.1
2015	186	94.98		1.4
Total oil	254			$	1.5
Total oil and natural gas derivatives				$	1.6

FGL's Exposure to Credit Loss on Call Options Held

Information regarding FGL’s exposure to credit loss on the call options it holds is presented in the following table:

		September 30, 2014								September 30, 2013
Counterparty	Credit Rating (Fitch/Moody’s/S&P) (a)	Notional Amount		Fair Value		Collateral		Net Credit Risk		Notional Amount		Fair Value		Collateral		Net Credit Risk
Merrill Lynch	A/*/A	$	2,239.9	$	92.7	$	52.5	$	40.2	$	2,037.8	$	70.7	$	—	$	70.7
Deutsche Bank	A+/A3/A	2,810.0		108.0		72.5		35.5		1,620.4		51.7		23.0		28.7
Morgan Stanley	*/A3/A	2,294.7		85.0		63.0		22.0		2,264.1		75.7		49.0		26.7
Royal Bank of Scotland	A-/*/A-	—		—		—		—		364.3		20.3		—		20.3
Barclay's Bank	A/A2/A-	258.0		10.6		—		10.6		120.8		3.4		—		3.4
		$	7,602.6	$	296.3	$	188.0	$	108.3	$	6,407.4	$	221.8	$	72.0	$	149.8