Consolidating Financial Information (Tables)

6 Months Ended

Mar. 31, 2016

HRG Group, Inc. - Condensed Consolidating Balance Sheets Information



March 31, 2016	Consumer Products		Insurance		Energy		Asset Management		Corporate and Other		Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investments	$	—	$	6.1	$	—	$	134.8	$	—	$	—	$	(1.6	)	$	139.3
Investments in subsidiaries and affiliates	—		12.0		—		—		2,067.5		—		(2,079.5		)	—
Affiliated loans and receivables	—		23.2		—		1.0		0.3		—		(24.5		)	—
Cash and cash equivalents	133.3		33.0		8.3		51.6		239.4		—		—			465.6
Funds withheld receivables	—		1,709.1		—		—		—		—		(29.7		)	1,679.4
Receivables, net	635.9		18.7		6.6		0.8		0.3		—		—			662.3
Inventories, net	924.4		—		—		—		—		—		—			924.4
Deferred tax assets	9.3		23.4		—		0.1		249.1		—		17.9			299.8
Properties, including oil and natural gas properties, net	528.9		—		133.7		0.9		1.2		—		—			664.7
Goodwill	2,483.4		—		—		10.7		—		—		—			2,494.1
Intangibles	2,432.4		—		—		—		—		—		—			2,432.4
Other assets	115.4		12.8		1.4		1.1		1.7		—		16.7			149.1
Assets of business held for sale	—		—		—		—		—		25,544.0		—			25,544.0
Total assets	$	7,263.0	$	1,838.3	$	150.0	$	201.0	$	2,559.5	$	25,544.0	$	(2,100.7	)	$	35,455.1



Liabilities and Equity:
Insurance reserves	$	—	$	1,686.5	$	—		$	—		$	—	$	—	$	138.3		$	1,824.8
Debt	4,103.8		—		159.1			43.5			1,708.0		—		217.6			6,232.0
Accounts payable and other current liabilities	786.2		6.6		11.3			3.7			37.7		—		2.0			847.5
Employee benefit obligations	82.8		—		—			—			4.8		—		—			87.6
Deferred tax liabilities	563.8		—		—			—			340.6		—		(8.8		)	895.6
Other liabilities	22.9		5.5		21.9			8.7			3.3		—		9.3			71.6
Affiliated debt and payables	—		0.2		102.2			202.8			—		—		(305.2		)	—
Liabilities of business held for sale	—		—		—			—			—		23,988.1		—			23,988.1
Total liabilities	5,559.5		1,698.8		294.5			258.7			2,094.4		23,988.1		53.2			33,947.2
Total stockholders’ equity	959.2		139.5		(144.3		)	(60.1		)	465.1		1,259.6		(2,153.9		)	465.1
Noncontrolling interests	744.3		—		(0.2		)	2.4			—		296.3		—			1,042.8
Total permanent equity	1,703.5		139.5		(144.5		)	(57.7		)	465.1		1,555.9		(2,153.9		)	1,507.9
Total liabilities and equity	$	7,263.0	$	1,838.3	$	150.0		$	201.0		$	2,559.5	$	25,544.0	$	(2,100.7	)	$	35,455.1



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



Six months ended March 31, 2016	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Discontinued Operations			Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	2,428.4		$	—		$	—		$	—		$	—		$	—		$	—		$	2,428.4
Oil and natural gas	—			—			26.3			—			—			—			—			26.3
Net investment income	—			1.5			—			6.7			—			—			28.8			37.0
Net investment gains	—			28.1			—			—			—			—			(20.9		)	7.2
Insurance and investment product fees and other	—			—			—			0.9			—			—			3.2			4.1
Total revenues	2,428.4			29.6			26.3			7.6			—			—			11.1			2,503.0
Operating costs and expenses:
Cost of consumer products and other goods sold	1,524.9			—			—			—			—			—			—			1,524.9
Oil and natural gas direct operating costs	—			—			26.3			—			—			—			—			26.3
Benefits and other changes in policy reserves	—			28.2			—			—			—			—			15.6			43.8
Selling, acquisition, operating and general expenses	565.5			3.2			15.6			10.8			22.8			—			1.2			619.1
Impairments and bad debt expense	—			—			75.6			15.1			—			—			0.1			90.8
Amortization of intangibles	47.0			—			—			—			—			—			—			47.0
Total operating costs and expenses	2,137.4			31.4			117.5			25.9			22.8			—			16.9			2,351.9
Operating income (loss)	291.0			(1.8		)	(91.2		)	(18.3		)	(22.8		)	—			(5.8		)	151.1
Equity in net income of subsidiaries	—			—			—			—			23.7			—			(23.7		)	—
Interest expense	(115.9		)	—			(3.7		)	—			(71.4		)	—			(2.3		)	(193.3		)
Affiliated interest expense	—			—			(4.5		)	(3.4		)	0.3			—			7.6			—
Gain on sale of oil and gas properties	—			—			105.6			—			—			—			—			105.6
Other income, net	(4.3		)	—			2.3			0.9			3.0			—			(0.3		)	1.6
Income (loss) from continuing operations before income taxes	170.8			(1.8		)	8.5			(20.8		)	(67.2		)	—			(24.5		)	65.0
Income tax expense (benefit)	21.8			(1.8		)	—			—			1.5			—			(10.7		)	10.8
Net income (loss) from continuing operations	149.0			—			8.5			(20.8		)	(68.7		)	—			(13.8		)	54.2
(Loss) income from discontinued operations, net of tax	—			—			—			—			—			(48.7		)	—			(48.7		)
Net (loss) income	149.0			—			8.5			(20.8		)	(68.7		)	(48.7		)	(13.8		)	5.5
Less: Net income (loss) attributable to noncontrolling interest	63.0			—			—			—			—			11.2			—			74.2
Net loss attributable to controlling interest	$	86.0		$	—		$	8.5		$	(20.8	)	$	(68.7	)	$	(59.9	)	$	(13.8	)	$	(68.7	)



Six months ended March 31, 2015	Consumer Products			Insurance			Energy			Asset Management			Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	2,134.8		$	—		$	—		$	—		$	40.5		$	—	$	—		$	2,175.3
Oil and natural gas	—			—			60.3			—			—			—		—			60.3
Net investment income	—			5.9			—			13.1			—			—		24.9			43.9
Net investment gains	—			(10.3		)	—			—			—			—		15.1			4.8
Insurance and investment product fees and other	—			—			—			—			—			—		3.2			3.2
Total revenues	2,134.8			(4.4		)	60.3			13.1			40.5			—		43.2			2,287.5
Operating costs and expenses:
Cost of consumer products and other goods sold	1,389.9			—			—			—			29.1			—		—			1,419.0
Oil and natural gas operating costs	—			—			43.8			—			—			—		—			43.8
Benefits and other changes in policy reserves	—			41.8			—			—			—			—		8.5			50.3
Selling, acquisition, operating and general expenses	499.2			4.5			36.2			19.0			99.5			—		2.0			660.4
Impairments and bad debt expense	—			—			336.6			62.6			60.2			—		5.0			464.4
Amortization of intangibles	41.7			—			—			—			—			—		—			41.7
Total operating costs and expenses	1,930.8			46.3			416.6			81.6			188.8			—		15.5			2,679.6
Operating income (loss)	204.0			(50.7		)	(356.3		)	(68.5		)	(148.3		)	—		27.7			(392.1		)
Equity in net loss of subsidiaries	—			—			—			—			(201.7		)	—		201.7			—
Interest expense	(93.6		)	—			(4.4		)	—			(56.3		)	—		(3.2		)	(157.5		)
Affiliated interest expense	—			—			(4.5		)	(14.0		)	(2.6		)	—		21.1			—
Gain upon gaining control of equity method investment	—			—			141.2			—			—			—		—			141.2
Other income, net	(3.9		)	—			24.0			(1.5		)	36.5			—		(8.2		)	46.9
Income (loss) from continuing operations before income taxes	106.5			(50.7		)	(200.0		)	(84.0		)	(372.4		)	—		239.1			(361.5		)
Income tax expense (benefit)	28.6			(17.7		)	—			—			(13.3		)	—		7.6			5.2
Net income (loss) from continuing operations	77.9			(33.0		)	(200.0		)	(84.0		)	(359.1		)	—		231.5			(366.7		)
(Loss) income from discontinued operations, net of tax	—			—			—			—			—			22.8		—			22.8
Net (loss) income	77.9			(33.0		)	(200.0		)	(84.0		)	(359.1		)	22.8		231.5			(343.9		)
Less: Net income (loss) attributable to noncontrolling interest	32.4			—			(0.5		)	(17.2		)	(21.0		)	0.5		—			(5.8		)
Net loss attributable to controlling interest	$	45.5		$	(33.0	)	$	(199.5	)	$	(66.8	)	$	(338.1	)	$	22.3	$	231.5		$	(338.1	)