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Discontinued Operations
 6 Months Ended
Jun. 30, 2021
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations
3. Discontinued Operations

The results of GMSL, ICS, Beyond6, and CIG and the related expenses directly attributable to the entities were reported as discontinued operations. Summarized operating results of the discontinued operations are as follows (in millions):

Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Revenue$— $117.5 $1.7 $331.6 
Life, accident and health earned premiums, net27.3 29.5 55.7 58.2 
Net investment income48.5 48.4 92.4 100.3 
Realized/unrealized (losses) gains on investments(4.4)(0.5)5.1 (19.5)
Total revenue71.4 194.9 154.9 470.6 
Cost of revenue— 110.1 0.8 317.5 
Policy benefits, changes in reserves, and commissions69.9 63.0 126.0 135.4 
Selling, general and administrative8.7 11.8 21.1 39.0 
Depreciation and amortization(5.1)(3.3)(11.0)(3.3)
(Loss) income from operations(2.1)13.3 18.0 (18.0)
Interest expense(0.1)(2.3)(0.5)(8.0)
Gain (loss) on sale and liquidation of subsidiaries— — 40.4 (39.3)
Income from equity investees— — — 0.5 
Other (loss) income— (0.2)(3.1)1.7 
Pre-tax income (loss) from discontinued operations(2.2)10.8 54.8 (63.1)
Income tax benefit (expense)0.7 (3.3)(4.4)(0.5)
(Loss) income from discontinued operations$(1.5)$7.5 $50.4 $(63.6)
Sale of CGI

On March 29, 2021, the Company announced the entry into a definitive agreement (the "Stock Purchase Agreement") to sell its Insurance segment to Continental General Holdings LLC, an entity controlled by Michael Gorzynski, a director of the Company and, as of June 30, 2021, a beneficial owner of approximately 6.6% of the Company's outstanding common stock who has also served as executive chairman of Continental since October 2020. The transaction value is approximately $90.0 million, inclusive of $65.0 million in cash plus certain assets of CGI. As of the first quarter of 2021, the Insurance segment met the held-for-sale criteria under ASC 205-20 and has been presented in discontinued operations. The sale closed on July 1, 2021, subsequent to quarter end. See Note 19. Subsequent Events for further information.

Sale of GMSL

The sale of GMSL closed on February 28, 2020. At the time of the sale, the Company recorded a $39.3 million loss on the sale and recognized $31.3 million of Accumulated other comprehensive loss. During the fourth quarter of 2020, the Company recognized a gain on sale of $2.4 million as a result of the cash collateralized bonding facility release. During the first quarter of 2021, the Company recognized a gain of $1.2 million as a result of an indemnity release.

The net proceeds from the sale of GMSL were used to repay $15.0 million of the then outstanding balance under the Revolving Credit Agreement and redeem $76.9 million aggregate principal amount of the Company's 11.5% senior secured notes due 2021 (the "2021 Senior Secured Notes"), plus accrued and unpaid interest since December 1, 2019 (the last regularly scheduled interest payment date).

As a result of the repayment of $15.0 million Revolving Credit Agreement, the Company allocated the following interest and the amortization of deferred financing costs for the three and six months ended June 30, 2021 and 2020 associated with the principal prepayment from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statement of Operations:

Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Interest expense$— $— $— $0.2 
Amortization of deferred financing costs and original issuance discount$— $— $— $0.1 

As a result of the mandatory redemption of $76.9 million of 2021 Senior Secured Notes, the Company allocated the following pro-rata interest and amortization of deferred financing costs and original issuance discount for the three and six months ended June 30, 2021 and 2020, from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statements of Operations:

Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Interest expense$— $— $— $2.2 
Amortization of deferred financing costs and original issuance discount$— $— $— $0.2 

Sale of ICS

The sale of ICS and its subsidiary, Go2 Tel, Inc., closed on October 31, 2020. The Company recorded a $0.9 million gain on the sale and recognized $8.2 million of accumulated other comprehensive loss related to the realization of foreign currency translation of PTGi International Carrier Services Ltd., which was essentially liquidated in conjunction with the sale. The proceeds were used for general corporate purposes.

Sale of Beyond6

On December 31, 2020, the Company announced a plan to sell Beyond6 to an affiliate of Mercuria Investments US, Inc., pursuant to an Agreement and Plan of Merger (the "Merger Agreement") among Beyond6, Greenfill, Inc., a Delaware corporation ("Parent"), Greenfill Merger Inc., a newly-formed Delaware corporation and wholly-owned subsidiary of Parent, and an affiliate of HC2 as the Stockholder Representative for the Beyond6 stockholders. The sale closed on January 15, 2021. The Company recognized a $39.2 million gain on the sale.

A portion of the proceeds from the sale of Beyond6 were used to repay $15.0 million of the then outstanding balance under the Revolving Credit Agreement and repay $27.9 million of the Company's 2021 Senior Secured Notes.
As a result of the repayment of $15.0 million Revolving Credit Agreement, the Company allocated the following interest for the three and six months ended June 30, 2021 and 2020 associated with the principal prepayment from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statements of Operations:

Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Interest expense$— $0.2 $0.1 $0.2 

As a result of the repayment of $27.9 million of the 2021 Senior Secured Notes, the Company allocated the following pro-rata interest and amortization of deferred financing costs and original issuance discount for the three and six months ended June 30, 2021 and 2020, from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statements of Operations:

Three Months Ended June 30,Six Months Ended June 30,
 2021202020212020
Interest expense$— $0.8 $0.3 $1.6 
Amortization of deferred financing costs and original issuance discount$— $0.1 $— $0.2 


Summarized assets and liabilities of the discontinued operations are as follows (in millions):
June 30,
2021		December 31,
2020
 
Assets
Current assets
Cash and cash equivalents$253.7 $195.2 
Accounts receivable, net— 13.6 
Other current assets6.7 8.7 
Total current assets260.4 217.5 
Investments4,483.7 4,610.2 
Recoverable from reinsurers1,015.2 957.5 
Deferred tax asset— 1.4 
Property, plant and equipment, net1.4 90.5 
Goodwill— 2.1 
Intangibles, net2.5 11.7 
Other assets44.0 51.2 
Total assets held for sale$5,807.2 $5,942.1 
Liabilities
Current liabilities
 Accounts payable $— $2.6 
 Accrued liabilities8.8 35.8 
Current portion of debt obligations— 5.7 
 Other current liabilities 3.6 7.4 
Total current liabilities12.4 51.5 
Life, accident and health reserves4,711.7 4,627.5 
Annuity reserves225.8 228.8 
Value of business acquired188.3 199.8 
Deferred tax liability114.8 136.5 
Debt obligations— 50.6 
Other liabilities8.6 12.0 
Total liabilities held for sale$5,261.6 $5,306.7 

In addition, as of June 30, 2021, the Company had $5.2 million of assets from its Spectrum segment classified as Assets held for sale in continuing operations related to certain station licenses and assets.