Consolidating Financial Information (Tables)

3 Months Ended

Dec. 31, 2013

Harbinger Group Inc. - Condensed Consolidating Balance Sheet Information



December 31, 2013	Consumer Products		Insurance		Energy		Financial Services		Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	17,296.8	$	—	$	576.9	$	39.5	$	(244.9	)	$	17,668.3
Investments in subsidiaries and affiliates	—		62.0		—		—		1,937.5		(1,999.5		)	—
Affiliated loans and receivables	—		128.4		—		0.2		—		(128.6		)	—
Cash and cash equivalents	131.8		787.7		13.6		98.9		261.8		—			1,293.8
Receivables, net	587.2		—		16.5		0.3		41.5		—			645.5
Inventories, net	683.3		—		—		—		—		—			683.3
Accrued investment income	—		157.8		—		3.3		—		(0.6		)	160.5
Reinsurance recoverable	—		2,389.0		—		—		—		—			2,389.0
Deferred tax assets	33.8		255.5		—		—		0.8		—			290.1
Properties, including oil and natural gas properties, net	435.3		8.9		564.3		0.7		0.5		—			1,009.7
Goodwill	1,476.2		—		—		—		—		—			1,476.2
Intangibles, including DAC and VOBA, net	2,146.4		603.3		—		—		—		—			2,749.7
Other assets	155.8		198.8		2.8		11.4		29.1		—			397.9
Total assets	$	5,649.8	$	21,888.2	$	597.2	$	691.7	$	2,310.7	$	(2,373.6	)	$	28,764.0



Liabilities and Equity:
Insurance reserves	$	—	$	19,315.5	$	—	$	—		$	—	$	—		$	19,315.5
Debt	3,366.3		300.0		258.5		316.8			924.3		—			5,165.9
Accounts payable and other current liabilities	709.8		77.6		24.4		9.6			70.4		—			891.8
Equity conversion feature of preferred stock	—		—		—		—			378.0		—			378.0
Employee benefit obligations	92.1		—		—		—			2.8		—			94.9
Deferred tax liabilities	491.9		—		—		—			—		—			491.9
Other liabilities	27.3		724.5		25.8		33.3			—		—			810.9
Affiliated debt and payables	—		15.2		100.0		273.3			—		(388.5		)	—
Total liabilities	4,687.4		20,432.8		408.7		633.0			1,375.5		(388.5		)	27,148.9
Temporary equity	—		—		0.2		—			333.2		—			333.4
Total stockholders’ equity	538.6		1,198.4		188.3		59.8			602.0		(1,985.1		)	602.0
Noncontrolling interests	423.8		257.0		—		(1.1		)	—		—			679.7
Total permanent equity	962.4		1,455.4		188.3		58.7			602.0		(1,985.1		)	1,281.7
Total liabilities and equity	$	5,649.8	$	21,888.2	$	597.2	$	691.7		$	2,310.7	$	(2,373.6	)	$	28,764.0



September 30, 2013	Consumer Products		Insurance		Energy		Financial Services			Corporate and Other		Eliminations			Total
Assets:
Investments	$	—	$	16,282.3	$	—	$	389.3		$	42.3	$	(248.0	)	$	16,465.9
Investment in subsidiaries and affiliates	—		62.0		—		—			2,012.9		(2,074.9		)	—
Affiliated loans and receivables	—		150.1		—		0.9			—		(151.0		)	—
Cash and cash equivalents	207.3		1,248.3		18.7		166.5			258.9		—			1,899.7
Receivables, net	546.9		—		22.2		1.2			41.0		—			611.3
Inventories, net	632.9		—		—		—			—		—			632.9
Accrued investment income	—		159.3		—		2.3			—		(0.4		)	161.2
Reinsurance recoverable	—		2,363.7		—		—			—		—			2,363.7
Deferred tax assets	33.0		260.4		—		—			—		—			293.4
Properties, including oil and natural gas properties, net	412.5		7.0		572.6		0.7			0.5		—			993.3
Goodwill	1,476.7		—		—		—			—		—			1,476.7
Intangibles, including DAC and VOBA, net	2,163.2		565.9		—		—			—		—			2,729.1
Other assets	154.2		84.1		4.1		11.3			27.9		—			281.6
Total assets	$	5,626.7	$	21,183.1	$	617.6	$	572.2		$	2,383.5	$	(2,474.3	)	$	27,908.8

Liabilities and Equity:
Insurance reserves	$	—	$	18,895.9	$	—	$	—		$	—	$	—		$	18,895.9
Debt	3,218.9		300.0		271.2		181.8			924.2		—			4,896.1
Accounts payable and other current liabilities	849.4		52.9		32.8		6.3			71.3		—			1,012.7
Equity conversion feature of preferred stock	—		—		—		—			330.8		—			330.8
Employee benefit obligations	96.6		—		—		—			3.0		—			99.6
Deferred tax liabilities	492.8		—		—		—			—		—			492.8
Other liabilities	28.9		640.2		25.4		23.3			0.2		—			718.0
Affiliated debt and payables	—		0.8		102.2		293.3			—		(396.3		)	—
Total liabilities	4,686.6		19,889.8		431.6		504.7			1,329.5		(396.3		)	26,445.9
Temporary equity	—		—		0.1		—			329.3		—			329.4
Total stockholders’ equity	531.0		1,293.3		185.9		67.8			724.7		(2,078.0		)	724.7
Noncontrolling interests	409.1		—		—		(0.3		)	—		—			408.8
Total permanent equity	940.1		1,293.3		185.9		67.5			724.7		(2,078.0		)	1,133.5
Total liabilities and equity	$	5,626.7	$	21,183.1	$	617.6	$	572.2		$	2,383.5	$	(2,474.3	)	$	27,908.8

Schedule of Income Statement Information

Harbinger Group Inc. - Condensed Consolidating Statements of Operations Information



Three months ended December 31, 2013	Consumer Products			Insurance			Energy			Financial Services			Corporate and Other			Eliminations			Total
Revenues:
Net consumer product sales	$	1,100.6		$	—		$	—		$	—		$	—		$	—		$	1,100.6
Oil and natural gas	—			—			35.5			—			—			—			35.5
Insurance premiums	—			13.9			—			—			—			—			13.9
Net investment income	—			200.4			—			4.5			—			(3.7		)	201.2
Net investment gains	—			141.9			—			—			—			—			141.9
Insurance and investment product fees and other	—			16.9			—			—			—			—			16.9
Total revenues	1,100.6			373.1			35.5			4.5			—			(3.7		)	1,510.0
Operating costs and expenses:
Consumer products cost of goods sold	719.4			—			—			—			—			—			719.4
Oil and natural gas direct operating costs	—			—			16.1			—			—			—			16.1
Benefits and other changes in policy reserves	—			234.7			—			—			—			—			234.7
Selling, acquisition, operating and general expenses	236.0			29.9			13.4			8.4			29.4			—			317.1
Amortization of intangibles	20.2			23.2			—			—			—			—			43.4
Total operating costs and expenses	975.6			287.8			29.5			8.4			29.4			—			1,330.7
Operating income (loss)	125.0			85.3			6.0			(3.9		)	(29.4		)	(3.7		)	179.3
Equity in net income (losses) of subsidiaries	—			—			—			—			71.5			(71.5		)	—
Interest expense	(57.0		)	(5.6		)	(2.4		)	—			(19.0		)	—			(84.0		)
Affiliated interest expense	—			—			(2.3		)	(1.4		)	—			3.7			—
(Loss) gain from the change in the fair value of the equity conversion feature of preferred stock	—			—			—			—			(47.2		)	—			(47.2		)
Gain on contingent purchase price reduction	—			—			—			—			0.5			—			0.5
Other expense, net	(0.9		)	—			(3.4		)	(3.7		)	(3.9		)	—			(11.9		)
(Loss) income from continuing operations before income taxes	67.1			79.7			(2.1		)	(9.0		)	(27.5		)	(71.5		)	36.7
Income tax expense	12.7			26.5			—			(0.2		)	(0.7		)	—			38.3
Net (loss) income	54.4			53.2			(2.1		)	(8.8		)	(26.8		)	(71.5		)	(1.6		)
Less: Net income (loss) attributable to noncontrolling interest	22.6			3.3			—			(0.7		)	—			—			25.2
Net (loss) income attributable to controlling interest	31.8			49.9			(2.1		)	(8.1		)	(26.8		)	(71.5		)	(26.8		)
Less: Preferred stock dividends and accretion	—			—			—			—			12.2			—			12.2
Net (loss) income attributable to common and participating preferred stockholders	$	31.8		$	49.9		$	(2.1	)	$	(8.1	)	$	(39.0	)	$	(71.5	)	$	(39.0	)



Three months ended December 30, 2012	Consumer Products			Insurance		Energy		Financial Services			Corporate and Other			Eliminations			Total
Revenues:
Net consumer product sales	$	870.3		$	—	$	—	$	—		$	—		$	—		$	870.3
Insurance premiums	—			13.8		—		—			—			—			13.8
Net investment income	—			169.6		—		8.4			—			—			178.0
Net investment gains	—			146.5		—		—			—			—			146.5
Insurance and investment product fees and other	—			13.7		—		—			—			—			13.7
Total revenues	870.3			343.6		—		8.4			—			—			1,222.3
Operating costs and expenses:
Consumer products cost of goods sold	582.1			—		—		—			—			—			582.1
Benefits and other changes in policy reserves	—			83.6		—		—			—			—			83.6
Selling, acquisition, operating and general expenses	202.9			26.9		—		3.3			21.5			—			254.6
Amortization of intangibles	17.1			69.5		—		—			—			—			86.6
Total operating costs and expenses	802.1			180.0		—		3.3			21.5			—			1,006.9
Operating income	68.2			163.6		—		5.1			(21.5		)	—			215.4
Equity in net income of subsidiaries	—			—		—		—			107.2			(107.2		)	—
Interest expense	(69.9		)	—		—		—			(73.2		)	—			(143.1		)
Affiliated interest expense	—			0.7		—		(0.7		)	—			—			—
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			—		—		—			68.9			—			68.9
Other (expense) income, net	(1.6		)	0.2		—		—			(7.3		)	—			(8.7		)
Income from continuing operations before income taxes	(3.3		)	164.5		—		4.4			74.1			(107.2		)	132.5
Income tax expense	10.6			53.8		—		—			—			—			64.4
Net income	(13.9		)	110.7		—		4.4			74.1			(107.2		)	68.1
Less: Net income attributable to noncontrolling interest	(6.2		)	—		—		0.2			—			—			(6.0		)
Net income attributable to controlling interest	(7.7		)	110.7		—		4.2			74.1			(107.2		)	74.1
Less: Preferred stock dividends and accretion	—			—		—		—			12.1			—			12.1
Net income attributable to common and participating preferred stockholders	$	(7.7	)	$	110.7	$	—	$	4.2		$	62.0		$	(107.2	)	$	62.0