(8) Equity-method Investments

HC2 Holdings Inc. (formerly PTGi Holding, Inc.)

On January 3, 2014, HGI Funding acquired a 40.5% interest in a liquidating equity, HC2 Holdings Inc. (“HC2”), included in equity securities — held for trading, as of September 30, 2014. HGI’s ownership in HC2 has been diluted to 24.7% as of September 30, 2014 as a result of the issuance of additional stock during 2014. The equity method investee is carried at fair market value ($26.5 as of September 30, 2014) using the fair value option under ASC Topic 820.

Compass

The following tables present summarized consolidated financial information of Compass (HGI’s proportionately consolidated equity investment) for Fiscal 2014 and the period subsequent to HGI’s acquisition of the equity interest on February 14, 2013.



	September 30,
	2014		2013
Assets
Total current assets	$	50.1	$	54.4
Oil and natural gas properties, net	599.4		741.5
Other assets	29.0		32.7
Total assets	$	678.5	$	828.6

Liabilities and members’ equity
Total current liabilities	$	42.9	$	44.9
Total long-term liabilities	362.9		397.3
Total members’ equity	272.7		386.4
Total liabilities and members’ equity	$	678.5	$	828.6



	Year ended September 30, 2014			Inception to Period Ended September 30, 2013
Revenues	$	197.5		$	121.1
Costs and Expenses
Oil and natural gas direct operating costs	93.5			59.0
Selling, acquisition, operating and general expenses	67.2			49.5
Impairment of proved oil and natural gas properties	109.0			72.8
Total costs and expenses	269.7			181.3
Operating loss	(72.2		)	(60.2		)
Other expense, net	(19.0		)	(8.0		)
Net loss	$	(91.2	)	$	(68.2	)