Consolidating Financial Information (Tables)

6 Months Ended

Mar. 31, 2015

HRG Group, Inc. - Condensed Consolidating Balance Sheets Information



March 31, 2015	Consumer Products		Insurance			Energy		Asset Management		Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	19,500.0		$	—	$	457.7	$	69.3	$	(274.4	)	$	19,752.6
Investments in subsidiaries and affiliates	—		(38.9		)	—		—		2,139.6		(2,100.7		)	—
Affiliated loans and receivables	—		120.1			—		19.5		0.1		(139.7		)	—
Cash and cash equivalents	87.8		876.2			12.1		119.1		184.4		—			1,279.6
Receivables, net	586.1		1.6			31.5		0.7		50.1		—			670.0
Inventories, net	814.0		—			—		—		5.0		—			819.0
Accrued investment income	—		179.5			—		2.3		—		(0.6		)	181.2
Reinsurance recoverable	—		2,402.7			—		—		—		—			2,402.7
Deferred tax assets	40.1		132.4			—		0.1		1.1		(0.1		)	173.6
Properties, including oil and natural gas properties, net	461.7		11.9			466.8		1.4		2.1		—			943.9
Goodwill	1,516.1		—			—		10.7		16.2		—			1,543.0
Intangibles, including DAC and VOBA, net	2,108.6		648.8			—		—		9.9		—			2,767.3
Other assets	147.6		729.5			2.8		8.6		33.6		—			922.1
Total assets	$	5,762.0	$	24,563.8		$	513.2	$	620.1	$	2,511.4	$	(2,515.5	)	$	31,455.0



Liabilities and Equity:
Insurance reserves	$	—	$	21,683.8	$	—	$	—		$	—	$	—		$	21,683.8
Debt	3,376.0		300.0		327.0		294.2			1,326.5		—			5,623.7
Accounts payable and other current liabilities	711.6		50.7		30.2		6.2			72.0		0.6			871.3
Employee benefit obligations	71.8		—		—		—			4.1		—			75.9
Deferred tax liabilities	507.8		—		—		—			5.4		11.2			524.4
Other liabilities	21.2		733.3		38.1		17.1			2.1		—			811.8
Affiliated debt and payables	—		0.7		102.3		306.3			32.4		(441.7		)	—
Total liabilities	4,688.4		22,768.5		497.6		623.8			1,442.5		(429.9		)	29,590.9
Total stockholders’ equity	602.5		1,465.5		15.4		2.2			1,068.9		(2,085.6		)	1,068.9
Noncontrolling interests	471.1		329.8		0.2		(5.9		)	—		—			795.2
Total permanent equity	1,073.6		1,795.3		15.6		(3.7		)	1,068.9		(2,085.6		)	1,864.1
Total liabilities and equity	$	5,762.0	$	24,563.8	$	513.2	$	620.1		$	2,511.4	$	(2,515.5	)	$	31,455.0



September 30, 2014	Consumer Products		Insurance		Energy		Asset Management		Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	18,820.7	$	—	$	584.6	$	93.7	$	(246.5	)	$	19,252.5
Investment in subsidiaries and affiliates	—		68.2		—		—		2,237.9		(2,306.1		)	—
Affiliated loans and receivables	—		157.2		—		28.5		—		(185.7		)	—
Cash and cash equivalents	194.6		633.8		14.2		53.5		423.1		—			1,319.2
Receivables, net	515.3		2.1		23.7		0.9		43.1		—			585.1
Inventories, net	624.5		—		—		—		10.7		—			635.2
Accrued investment income	—		181.8		—		3.7		—		(0.6		)	184.9
Reinsurance recoverable	—		2,397.6		—		—		—		—			2,397.6
Deferred tax assets	46.7		139.0		—		—		1.1		(0.1		)	186.7
Properties, including oil and natural gas properties, net	428.9		11.4		464.4		1.4		2.5		—			908.6
Goodwill	1,469.6		—		—		10.7		44.5		—			1,524.8
Intangibles, including DAC and VOBA, net	2,091.5		550.4		—		—		41.8		—			2,683.7
Other assets	141.9		233.6		2.5		9.2		34.7		—			421.9
Total assets	$	5,513.0	$	23,195.8	$	504.8	$	692.5	$	2,933.1	$	(2,739.0	)	$	30,100.2

Liabilities and Equity:
Insurance reserves	$	—	$	20,215.1	$	—	$	—	$	—	$	—		$	20,215.1
Debt	2,990.9		300.0		243.2		298.7		1,325.0		—			5,157.8
Accounts payable and other current liabilities	816.2		71.9		31.3		8.5		104.6		0.5			1,033.0
Employee benefit obligations	81.9		—		—		—		4.3		—			86.2
Deferred tax liabilities	516.0		—		—		—		17.2		0.1			533.3
Other liabilities	21.2		748.9		27.3		19.3		1.1		—			817.8
Affiliated debt and payables	—		7.8		102.3		286.5		34.8		(431.4		)	—
Total liabilities	4,426.2		21,343.7		404.1		613.0		1,487.0		(430.8		)	27,843.2
Temporary equity	—		—		—		—		—		—			—
Total stockholders’ equity	612.4		1,526.9		100.7		68.2		1,441.6		(2,308.2		)	1,441.6
Noncontrolling interests	474.4		325.2		—		11.3		4.5		—			815.4
Total permanent equity	1,086.8		1,852.1		100.7		79.5		1,446.1		(2,308.2		)	2,257.0
Total liabilities and equity	$	5,513.0	$	23,195.8	$	504.8	$	692.5	$	2,933.1	$	(2,739.0	)	$	30,100.2

Schedule of Income Statement Information

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



Six months ended March 31, 2015	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Eliminations			Total
Revenues:
Net consumer and other product sales	$	2,134.8		$	—		$	—		$	—		$	40.5		$	—		$	2,175.3
Oil and natural gas	—			—			60.3			—			—			—			60.3
Insurance premiums	—			26.2			—			—			—			—			26.2
Net investment income	—			451.5			—			13.1			—			(8.8		)	455.8
Net investment (losses) gains	—			(50.1		)	—			—			—			98.2			48.1
Insurance and investment product fees and other	—			44.2			—			—			—			—			44.2
Total revenues	2,134.8			471.8			60.3			13.1			40.5			89.4			2,809.9
Operating costs and expenses:
Cost of consumer products and other goods sold	1,389.9			—			—			—			29.1			—			1,419.0
Oil and natural gas direct operating costs	—			—			43.8			—			—			—			43.8
Benefits and other changes in policy reserves	—			436.7			—			—			—			—			436.7
Selling, acquisition, operating and general expenses	499.2			64.0			36.2			19.0			99.5			—			717.9
Impairments and bad debt expense	—			—			336.6			62.6			60.2			40.1			499.5
Amortization of intangibles	41.7			8.3			—			—			—			—			50.0
Total operating costs and expenses	1,930.8			509.0			416.6			81.6			188.8			40.1			3,166.9
Operating (loss) income	204.0			(37.2		)	(356.3		)	(68.5		)	(148.3		)	49.3			(357.0		)
Equity in net losses of subsidiaries	—			(66.8		)	—			—			(201.7		)	268.5			—
Interest expense	(93.6		)	(11.8		)	(4.4		)	—			(56.3		)	—			(166.1		)
Affiliated interest expense	—			—			(4.5		)	(14.0		)	(2.6		)	21.1			—
Gain on contingent purchase price reduction	—			—			—			—			5.5			—			5.5
Other income (expense), net	(3.9		)	—			165.2			(1.5		)	31.0			(4.3		)	186.5
Loss from continuing operations before income taxes	106.5			(115.8		)	(200.0		)	(84.0		)	(372.4		)	334.6			(331.1		)
Income tax (benefit) expense	28.6			(11.8		)	—			—			(13.3		)	9.3			12.8
Net (income) loss	77.9			(104.0		)	(200.0		)	(84.0		)	(359.1		)	325.3			(343.9		)
Less: Net income (loss) attributable to noncontrolling interest	32.4			0.5			(0.5		)	(17.2		)	(21.0		)	—			(5.8		)
Net income (loss) attributable to controlling interest	$	45.5		$	(104.5	)	$	(199.5	)	$	(66.8	)	$	(338.1	)	$	325.3		$	(338.1	)



Six months ended March 31, 2014	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Eliminations			Total
Revenues:
Net consumer and other product sales	$	2,122.3		$	—		$	—		$	—		$	—		$	—		$	2,122.3
Oil and natural gas	—			—			74.7			—			—			—			74.7
Insurance premiums	—			28.7			—			—			—			—			28.7
Net investment income	—			400.6			—			14.3			—			(7.3		)	407.6
Net investment (losses) gains	—			182.8			—			—			—			—			182.8
Insurance and investment product fees and other	—			35.1			—			—			—			—			35.1
Total revenues	2,122.3			647.2			74.7			14.3			—			(7.3		)	2,851.2
Operating costs and expenses:
Cost of consumer products and other goods sold	1,381.5			—			—			—			—			—			1,381.5
Oil and natural gas operating costs	—			—			33.2			—			—			—			33.2
Benefits and other changes in policy reserves	—			431.2			—			—			—			—			431.2
Selling, acquisition, operating and general expenses	482.5			64.4			26.3			12.7			60.3			—			646.2
Impairments and bad debt expense	—			(0.1		)	81.0			1.5			—			0.4			82.8
Amortization of intangibles	40.7			40.1			—			—			—			—			80.8
Total operating costs and expenses	1,904.7			535.6			140.5			14.2			60.3			0.4			2,655.7
Operating (loss) income	217.6			111.6			(65.8		)	0.1			(60.3		)	(7.7		)	195.5
Equity in net (loss) income of subsidiaries	—			(3.8		)	—			—			48.2			(44.4		)	—
Interest expense	(104.4		)	(11.3		)	(4.1		)	—			(41.4		)	—			(161.2		)
Affiliated interest expense	—			0.2			(4.5		)	(3.0		)	—			7.3			—
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			—			—			—			(50.7		)	—			(50.7		)
Gain on contingent purchase price reduction	—			—			—			—			0.5			—			0.5
Other income (expense), net	(1.6		)	—			(10.2		)	(1.3		)	1.4			(4.8		)	(16.5		)
Loss from continuing operations before income taxes	111.6			96.7			(84.6		)	(4.2		)	(102.3		)	(49.6		)	(32.4		)
Income tax (benefit) expense	23.3			0.4			—			(0.1		)	—			1.4			25.0
Net loss	88.3			96.3			(84.6		)	(4.1		)	(102.3		)	(51.0		)	(57.4		)
Less: Net income attributable to noncontrolling interest	36.6			8.6			—			(0.3		)	—			—			44.9
Net loss attributable to controlling interest	51.7			87.7			(84.6		)	(3.8		)	(102.3		)	(51.0		)	(102.3		)
Less: Preferred stock dividends and accretion	—			—			—			—			24.3			—			24.3
Net loss attributable to common and participating preferred stockholders	$	51.7		$	87.7		$	(84.6	)	$	(3.8	)	$	(126.6	)	$	(51.0	)	$	(126.6	)