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

6 Months Ended

Mar. 31, 2016

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

Disposal Groups, Including Discontinued Operations [Table Text Block]

The following table summarizes the components of Net (loss) income from discontinued operations in the accompanying Condensed Consolidated Statements of Operations for the three and six months ended March 31, 2016 and 2015:

	Three months ended March 31,						Six months ended March 31,
	2016			2015			2016			2015
Revenues:
Insurance premiums	$	16.2		$	14.2		$	31.6		$	25.8
Net investment income (a)	226.7			207.6			448.9			416.0
Net investment (losses) gains	(41.7		)	(33.4		)	24.5			25.1
Insurance and investment product fees and other	31.7			22.1			60.5			41.9
Total revenues	232.9			210.5			565.5			508.8
Operating costs and expenses:
Benefits and other changes in policy reserves	188.1			171.9			369.0			395.6
Selling, acquisition, operating and general expenses	27.1			28.3			55.3			57.5
Impairments and bad debt expense	1.3			(0.4		)	1.3			0.1
Amortization of intangibles	0.4			(3.0		)	33.9			8.3
Total operating costs and expenses	216.9			196.8			459.5			461.5
Operating income	16.0			13.7			106.0			47.3
Interest expense	(5.9		)	(5.9		)	(11.8		)	(11.8		)
Other income (expense), net	2.5			(5.0		)	2.5			(5.0		)
Write-down of assets of business held for sale to fair value less cost to sell	(23.5		)	—			(23.5		)	—
Net (loss) income before income taxes	(10.9		)	2.8			73.2			30.5
Income tax expense (benefit) (b)	2.2			(3.0		)	121.9			7.7
Net (loss) income	(13.1		)	5.8			(48.7		)	22.8
Less: net income (loss) attributable to noncontrolling interest	1.8			(2.8		)	11.2			0.5
Net (loss) income - attributable to controlling interest	$	(14.9	)	$	8.6		$	(59.9	)	$	22.3

(a) Included in the net investment income attributable to FGL is interest income of $1.2 and $0.6 for the three months ended March 31, 2016 and 2015, respectively and $2.3 and $2.3 for the six months ended March 31, 2016 and 2015, 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 in the accompanying Condensed Consolidated Statements of Operations.

(b) Included in the income tax expense for the six months ended March 31, 2016 was a $90.9 of net income tax expense related to the establishment of a deferred tax liability of $328.6 at March 31, 2016 as a result of classifying the Company’s ownership interest in FGL as held for sale. The deferred tax liability was partially offset by a $237.7 reduction of valuation allowance on HRG’s net operating and capital loss carryforwards expected to offset the FGL taxable gain at March 31, 2016. The remaining liability is expected to be offset by current year losses recognized in Continuing Operations except for $13.0 of estimated alternative minimum taxes.

The following table summarizes the major categories of assets and liabilities classified as held for sale in the accompanying Condensed Consolidated Balance Sheets at March 31, 2016 and September 30, 2015:

	March 31, 2016			September 30, 2015
Assets
Investments, including loans and receivables from affiliates	$	19,697.1		$	19,206.7
Cash and cash equivalents	496.4			501.8
Accrued investment income	208.5			191.2
Reinsurance recoverable	3,511.7			3,578.7
Deferred tax assets	191.0			194.7
Properties	15.9			14.4
Deferred acquisition costs and value of business acquired, net	1,234.3			1,048.6
Other assets	212.6			248.4
Write-down of assets of business held for sale to fair value less cost to sell	(23.5		)	—
Total assets held for sale	$	25,544.0		$	24,984.5
Liabilities
Insurance reserves	$	23,018.8		$	22,560.1
Debt	300.0			298.3
Accounts payable and other current liabilities	46.4			43.7
Other liabilities	622.9			518.8
Total liabilities held for sale	$	23,988.1		$	23,420.9

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

	March 31, 2016		September 30, 2015
Assets
Funds withheld receivable	$	993.0	$	1,058.0
Other assets	15.6		15.9
Assets of business held for sale	1,618.7		1,769.8
Total assets	$	2,627.3	$	2,843.7
Liabilities
Insurance reserves	$	1,170.8	$	1,226.8
Debt	217.5		330.7
Accounts payable and other current liabilities	1.1		1.6
Other liabilities	12.7		11.0
Liabilities of business held for sale	1,225.2		1,273.6
Total liabilities	$	2,627.3	$	2,843.7