Divestitures Schedule of assets and liabilities held for sale (Tables)

3 Months Ended

Dec. 31, 2015

Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]

Disposal Groups, Including Discontinued Operations [Table Text Block]

Below is a summary of the impact of such intercompany balances on the Condensed Consolidated Balance Sheets:

	December 31, 2015		September 30, 2015
Assets
Funds withheld receivable	$	1,007.1	$	1,058.0
Other assets	15.9		15.9
Assets held for sale	1,694.7		1,769.8
Total assets	$	2,717.7	$	2,843.7
Liabilities
Insurance reserves	$	1,198.0	$	1,226.8
Debt	249.0		330.7
Accounts payable and other current liabilities	—		1.6
Other liabilities	12.4		11.0
Liabilities held for sale	1,258.3		1,273.6
Total liabilities	$	2,717.7	$	2,843.7

The following table summarizes the components of Net (loss) income from discontinued operations in the Condensed Consolidated Statements of Operations for the three months ended December 31, 2015 and 2014:

	Three months ended December 31,
	2015			2014
Revenues:
Insurance premiums	$	15.4		$	11.6
Net investment income (a)	222.2			208.4
Net investment gains	66.2			58.5
Insurance and investment product fees and other	28.8			19.8
Total revenues	332.6			298.3
Operating costs and expenses:
Benefits and other changes in policy reserves	180.9			223.7
Selling, acquisition, operating and general expenses	28.2			29.2
Impairments and bad debt expense	—			0.5
Amortization of intangibles	33.5			11.3
Total operating costs and expenses	242.6			264.7
Operating income	90.0			33.6
Interest expense	5.9			5.9
Net income before income taxes	84.1			27.7
Income tax expense (b)	119.7			10.7
Net (loss) income	(35.6		)	17.0
Less: net (loss) income attributable to noncontrolling interest	9.4			3.3
Net (loss) income - attributable to controlling interest	$	(45.0	)	$	13.7

(a) Included in the net investment income attributable to FGL is interest income of $1.1 and $1.7 for the three months ended December 31, 2015 and 2014, respectively, on debt instruments issued by entities consolidated by HRG as they will continue to exist following the closing of the FGL Merger. The corresponding interest expense is recorded in continuing operations on the Condensed Consolidated Statements of Operations.

(b) Included in the income tax expense for the three months ended December 31, 2015 was a $90.9 net income tax expense related to the establishment of a deferred tax liability of $338.6 as a result of classifying our investment in FGL as held for sale, partially offset by a $247.7 reduction of valuation allowance on HRG’s net operating and capital loss carryforwards expected to offset the FGL taxable gain.

The following table summarizes the major categories of assets and liabilities classified as held for sale in the Condensed Consolidated Balance Sheets at December 31, 2015 and September 30, 2015:

	December 31, 2015		September 30, 2015
Assets
Investments, including loans and receivables from affiliates	$	19,071.2	$	19,206.7
Cash and cash equivalents	567.9		501.8
Accrued investment income	180.9		191.2
Reinsurance recoverable	3,551.6		3,578.7
Deferred tax assets	248.3		194.7
Properties	15.5		14.4
Deferred acquisition costs and value of business acquired, net	1,230.6		1,048.6
Other assets	231.5		248.4
Total assets held for sale	$	25,097.5	$	24,984.5
Liabilities
Insurance reserves	$	22,748.5	$	22,560.1
Debt	299.2		298.3
Accounts payable and other current liabilities	35.7		43.7
Other liabilities	547.4		518.8
Total liabilities held for sale	$	23,630.8	$	23,420.9