Consolidating Financial Information (Tables)

3 Months Ended

Dec. 31, 2015

HRG Group, Inc. - Condensed Consolidating Balance Sheets Information



December 31, 2015	Consumer Products		Insurance		Energy		Asset Management		Corporate and Other		Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investments	$	—	$	6.1	$	—	$	151.0	$	—	$	—	$	(1.5	)	$	155.6
Investments in subsidiaries and affiliates	—		10.6		—		—		1,964.8		—		(1,975.4		)	—
Affiliated loans and receivables	—		22.6		—		1.0		0.3		—		(23.9		)	—
Cash and cash equivalents	162.0		32.8		10.1		74.1		297.4		—		—			576.4
Funds withheld receivables	—		1,703.4		—		—		—		—		(39.4		)	1,664.0
Receivables, net	599.2		22.9		11.2		1.9		1.6		—		0.1			636.9
Inventories, net	867.7		—		—		—		—		—		—			867.7
Deferred tax assets	9.3		23.4		—		0.1		251.6		—		19.0			303.4
Properties, including oil and natural gas properties, net	504.4		—		157.7		1.0		1.2		—		—			664.3
Goodwill	2,467.4		—		—		10.7		—		—		—			2,478.1
Intangibles	2,445.3		—		—		—		—		—		—			2,445.3
Other assets	110.3		12.4		0.9		1.4		2.2		—		16.4			143.6
Assets of business held for sale	—		—		—		—		—		25,097.5		—			25,097.5
Total assets	$	7,165.6	$	1,834.2	$	179.9	$	241.2	$	2,519.1	$	25,097.5	$	(2,004.7	)	$	35,032.8



Liabilities and Equity:
Insurance reserves	$	—	$	1,682.4	$	—		$	—		$	—	$	—	$	144.7		$	1,827.1
Debt	4,127.7		—		159.0			43.2			1,706.5		—		249.0			6,285.4
Accounts payable and other current liabilities	757.7		4.2		14.1			4.7			73.0		—		0.4			854.1
Employee benefit obligations	79.9		—		—			—			4.8		—		—			84.7
Deferred tax liabilities	563.1		—		—			—			340.6		—		1.3			905.0
Other liabilities	22.4		6.5		21.5			9.4			3.2		—		9.7			72.7
Affiliated debt and payables	—		0.3		100.0			234.6			—		—		(334.9		)	—
Liabilities of business held for sale	—		—		—			—			—		23,630.8		—			23,630.8
Total liabilities	5,550.8		1,693.4		294.6			291.9			2,128.1		23,630.8		70.2			33,659.8
Total stockholders’ equity	909.7		140.8		(114.6		)	(53.5		)	391.0		1,192.5		(2,074.9		)	391.0
Noncontrolling interests	705.1		—		(0.1		)	2.8			—		274.2		—			982.0
Total permanent equity	1,614.8		140.8		(114.7		)	(50.7		)	391.0		1,466.7		(2,074.9		)	1,373.0
Total liabilities and equity	$	7,165.6	$	1,834.2	$	179.9		$	241.2		$	2,519.1	$	25,097.5	$	(2,004.7	)	$	35,032.8



September 30, 2015 (As Adjusted)	Consumer Products		Insurance		Energy			Asset Management			Corporate and Other		Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investments	$	—	$	23.7	$	—		$	223.9		$	32.8	$	—	$	(1.5	)	$	278.9
Investment in subsidiaries and affiliates	—		10.6		—			—			2,014.7		—		(2,025.3		)	—
Affiliated loans and receivables	—		31.1		—			1.1			0.1		—		(32.3		)	—
Cash and cash equivalents	247.9		18.0		34.2			94.7			300.4		—		—			695.2
Funds withheld receivables	—		1,743.8		—			—			—		—		(33.7		)	1,710.1
Receivables, net	586.6		25.6		19.1			0.7			0.8		—		0.1			632.9
Inventories, net	780.8		—		—			—			—		—		—			780.8
Deferred tax assets	9.3		23.6		—			0.2			3.9		—		14.2			51.2
Properties, including oil and natural gas properties, net	507.1		—		288.9			1.1			1.3		—		—			798.4
Goodwill	2,476.7		—		—			10.7			—		—		—			2,487.4
Intangibles	2,480.3		—		—			—			—		—		—			2,480.3
Other assets	105.1		7.4		1.1			2.1			1.5		—		17.1			134.3
Assets of business held for sale	—		—		—			—			—		24,984.5		—			24,984.5
Total assets	$	7,193.8	$	1,883.8	$	343.3		$	334.5		$	2,355.5	$	24,984.5	$	(2,061.4	)	$	35,034.0

Liabilities and Equity:
Insurance reserves	$	—	$	1,731.9	$	—		$	—		$	—	$	—	$	124.1		$	1,856.0
Debt	3,905.9		—		325.9			42.9			1,705.1		—		330.7			6,310.5
Accounts payable and other current liabilities	993.0		5.4		33.6			7.7			53.7		—		2.2			1,095.6
Employee benefit obligations	88.1		—		—			—			4.8		—		—			92.9
Deferred tax liabilities	572.6		—		—			—			1.9		—		—			574.5
Other liabilities	27.3		7.1		39.1			10.3			3.3		—		8.4			95.5
Affiliated debt and payables	—		—		102.2			313.1			—		—		(415.3		)	—
Liabilities of business held for sale	—		—		—			—			—		23,420.9		—			23,420.9
Total liabilities	5,586.9		1,744.4		500.8			374.0			1,768.8		23,420.9		50.1			33,445.9
Total stockholders’ equity	900.4		139.4		(157.2		)	(41.8		)	586.7		1,270.7		(2,111.5		)	586.7
Noncontrolling interests	706.5		—		(0.3		)	2.3			—		292.9		—			1,001.4
Total permanent equity	1,606.9		139.4		(157.5		)	(39.5		)	586.7		1,563.6		(2,111.5		)	1,588.1
Total liabilities and equity	$	7,193.8	$	1,883.8	$	343.3		$	334.5		$	2,355.5	$	24,984.5	$	(2,061.4	)	$	35,034.0

Schedule of Income Statement Information

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



Three months ended December 31, 2015	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Discontinued Operations			Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	1,218.8		$	—		$	—		$	—		$	—		$	—		$	—		$	1,218.8
Oil and natural gas	—			—			16.8			—			—			—			—			16.8
Net investment income	—			0.9			—			5.1			—			—			14.3			20.3
Net investment losses	—			(11.7		)	—			—			—			—			(20.3		)	(32.0		)
Insurance and investment product fees and other	—			0.8			—			0.9			—			—			0.6			2.3
Total revenues	1,218.8			(10.0		)	16.8			6.0			—			—			(5.4		)	1,226.2
Operating costs and expenses:
Cost of consumer products and other goods sold	778.1			—			—			—			—			—			—			778.1
Oil and natural gas direct operating costs	—			—			17.1			—			—			—			—			17.1
Benefits and other changes in policy reserves	—			(12.4		)	—			—			—			—			13.2			0.8
Selling, acquisition, operating and general expenses	274.6			2.4			9.8			6.7			14.6			—			—			308.1
Impairments and bad debt expense	—			—			54.4			8.4			—			—			0.4			63.2
Amortization of intangibles	23.6			—			—			—			—			—			—			23.6
Total operating costs and expenses	1,076.3			(10.0		)	81.3			15.1			14.6			—			13.6			1,190.9
Operating income (loss)	142.5			—			(64.5		)	(9.1		)	(14.6		)	—			(19.0		)	35.3
Equity in net (loss) income of subsidiaries	—			(12.3		)	—			—			13.5			—			(1.2		)	—
Interest expense	(58.4		)	—			(2.3		)	—			(35.7		)	—			(1.1		)	(97.5		)
Affiliated interest expense	—			—			(2.3		)	(3.1		)	—			—			5.4			—
Gain on sale of oil and gas properties	—			—			105.6			—			—			—			—			105.6
Other income, net	(3.5		)	—			1.8			0.1			2.9			—			(0.2		)	1.1
Income (loss) from continuing operations before income taxes	80.6			(12.3		)	38.3			(12.1		)	(33.9		)	—			(16.1		)	44.5
Income tax expense	6.9			(1.3		)	—			—			—			—			(3.7		)	1.9
Net income (loss) from continuing operations	73.7			(11.0		)	38.3			(12.1		)	(33.9		)	—			(12.4		)	42.6
(Loss) income from discontinued operations, net of tax	—			—			—			—			—			(35.6		)	—			(35.6		)
Net income (loss)	73.7			(11.0		)	38.3			(12.1		)	(33.9		)	(35.6		)	(12.4		)	7.0
Less: Net income attributable to noncontrolling interest	31.1			—			0.2			0.2			—			9.4			—			40.9
Net loss attributable to controlling interest	$	42.6		$	(11.0	)	$	38.1		$	(12.3	)	$	(33.9	)	$	(45.0	)	$	(12.4	)	$	(33.9	)



Three months ended December 31, 2014	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	1,067.8		$	—		$	—		$	—		$	21.0		$	—	$	—		$	1,088.8
Oil and natural gas	—			—			34.3			—			—			—		—			34.3
Net investment income	—			2.9			—			8.0			—			—		13.2			24.1
Net investment losses	—			31.6			—			—			—			—		(38.1		)	(6.5		)
Insurance and investment product fees and other	—			—			—			—			—			—		1.1			1.1
Total revenues	1,067.8			34.5			34.3			8.0			21.0			—		(23.8		)	1,141.8
Operating costs and expenses:
Cost of consumer products and other goods sold	697.6			—			—			—			14.4			—		—			712.0
Oil and natural gas operating costs	—			—			20.5			—			—			—		—			20.5
Benefits and other changes in policy reserves	—			26.4			—			—			—			—		(8.6		)	17.8
Selling, acquisition, operating and general expenses	234.1			2.5			18.8			9.6			70.2			—		1.0			336.2
Impairments and bad debt expense	—			—			190.0			(0.4		)	60.2			—		—			249.8
Amortization of intangibles	20.5			—			—			—			—			—		—			20.5
Total operating costs and expenses	952.2			28.9			229.3			9.2			144.8			—		(7.6		)	1,356.8
Operating income (loss)	115.6			5.6			(195.0		)	(1.2		)	(123.8		)	—		(16.2		)	(215.0		)
Equity in net loss of subsidiaries	—			(2.9		)	—			—			(7.5		)	—		10.4			—
Interest expense	(44.4		)	—			(2.2		)	—			(28.1		)	—		(1.7		)	(76.4		)
Affiliated interest expense	—			—			(2.3		)	(1.5		)	(1.2		)	—		5.0			—
Gain upon gaining control of equity method investment	—			—			141.2			—			—			—		—			141.2
Other income, net	(0.7		)	—			18.8			(0.5		)	17.4			—		(2.2		)	32.8
Income (loss) from continuing operations before income taxes	70.5			2.7			(39.5		)	(3.2		)	(143.2		)	—		(4.7		)	(117.4		)
Income tax expense	20.5			2.0			—			—			(13.3		)	—		(3.2		)	6.0
Net income (loss) from continuing operations	50.0			0.7			(39.5		)	(3.2		)	(129.9		)	—		(1.5		)	(123.4		)
(Loss) income from discontinued operations, net of tax	—			—			—			—			—			17.0		—			17.0
Net income (loss)	50.0			0.7			(39.5		)	(3.2		)	(129.9		)	17.0		(1.5		)	(106.4		)
Less: Net income attributable to noncontrolling interest	20.8			—			(0.3		)	(0.3		)	(20.1		)	3.3		—			3.4
Net loss attributable to controlling interest	$	29.2		$	0.7		$	(39.2	)	$	(2.9	)	$	(109.8	)	$	13.7	$	(1.5	)	$	(109.8	)