Consolidating Financial Information

12 Months Ended

Sep. 30, 2016

Sep. 30, 2015

Consolidating Financial Information [Abstract]

Consolidating Financial Information

HRG Group, Inc. - Condensed Consolidating Balance Sheets Information

September 30, 2016	Consumer Products		Insurance		Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investments in subsidiaries and affiliates	$	—	$	3.4	$	2,405.3		$	—	$	(2,408.7	)	$	—
Affiliated loans and receivables	—		20.3		0.2			—		(20.5		)	—
Cash and cash equivalents	275.3		32.1		189.9			—		—			497.3
Funds withheld receivables	—		1,725.0		—			—		(74.6		)	1,650.4
Receivables, net	538.2		17.4		0.7			—		—			556.3
Inventories, net	740.6		—		—			—		—			740.6
Deferred tax assets	18.3		8.6		—			—		15.7			42.6
Property, plant and equipment, net	542.1		—		1.3			—		—			543.4
Goodwill	2,478.4		—		—			—		—			2,478.4
Intangibles, net	2,372.5		—		—			—		—			2,372.5
Other assets	103.7		18.1		34.6			—		16.2			172.6
Assets of business held for sale	—		—		—			26,738.7		—			26,738.7
Total assets	$	7,069.1	$	1,824.9	$	2,632.0		$	26,738.7	$	(2,471.9	)	$	35,792.8
Liabilities and Equity:
Insurance reserves	$	—	$	1,685.9	$	—		$	—	$	65.4		$	1,751.3
Debt	3,620.2		—		1,747.7			—		63.0			5,430.9
Accounts payable and other current liabilities	931.6		6.1		51.6			—		0.5			989.8
Employee benefit obligations	120.2		—		5.2			—		—			125.4
Deferred tax liabilities	532.7		—		13.3			—		—			546.0
Other liabilities	20.4		3.5		8.3			—		(0.2		)	32.0
Affiliated debt and payables	—		0.2		171.2			—		(171.4		)	—
Liabilities of business held for sale	—		—		—			25,100.2		—			25,100.2
Total liabilities	5,225.1		1,695.7		1,997.3			25,100.2		(42.7		)	33,975.6
Total shareholders’ equity	1,040.4		129.2		638.1			1,259.6		(2,429.2		)	638.1
Noncontrolling interests	803.6		—		(3.4		)	378.9		—			1,179.1
Total shareholders’ equity	1,844.0		129.2		634.7			1,638.5		(2,429.2		)	1,817.2
Total liabilities and equity	$	7,069.1	$	1,824.9	$	2,632.0		$	26,738.7	$	(2,471.9	)	$	35,792.8

September 30, 2015	Consumer Products		Insurance		Corporate and Other		Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investment in subsidiaries and affiliates	$	—	$	10.6	$	2,152.9	$	—	$	(2,163.5	)	$	—
Affiliated loans and receivables	—		31.1		1.2		—		(32.3		)	—
Cash and cash equivalents	247.9		18.0		395.3		—		—			661.2
Funds withheld receivables	—		1,743.8		—		—		(33.7		)	1,710.1
Receivables, net	586.6		25.6		1.5		—		0.2			613.9
Inventories, net	780.8		—		—		—		—			780.8
Deferred tax assets	9.3		23.6		9.6		—		14.2			56.7
Property, plant and equipment, net	507.1		—		2.4		—		—			509.5
Goodwill	2,476.7		—		10.7		—		—			2,487.4
Intangibles, net	2,480.3		—		—		—		—			2,480.3
Other assets	105.1		31.1		260.3		—		15.5			412.0
Assets of business held for sale	—		—		—		24,976.5		—			24,976.5
Assets of discontinued operations	—		—		—		343.1		—			343.1
Total assets	$	7,193.8	$	1,883.8	$	2,833.9	$	25,319.6	$	(2,199.6	)	$	35,031.5
Liabilities and Equity:
Insurance reserves	$	—	$	1,731.9	$	—	$	—	$	124.1		$	1,856.0
Debt	3,905.9		—		1,748.0		—		330.7			5,984.6
Accounts payable and other current liabilities	993.0		5.4		61.4		—		2.2			1,062.0
Employee benefit obligations	88.1		—		4.8		—		—			92.9
Deferred tax liabilities	572.6		—		1.9		—		—			574.5
Other liabilities	27.3		7.1		13.5		—		8.4			56.3
Affiliated debt and payables	—		—		415.3		—		(415.3		)	—
Liabilities of business held for sale	—		—		—		23,418.5		—			23,418.5
Liabilities of discontinued operations	—		—		—		398.6		—			398.6
Total liabilities	5,586.9		1,744.4		2,244.9		23,817.1		50.1			33,443.4
Total shareholders’ equity	900.4		139.4		586.7		1,209.9		(2,249.7		)	586.7
Noncontrolling interests	706.5		—		2.3		292.6		—			1,001.4
Total shareholders’ equity	1,606.9		139.4		589.0		1,502.5		(2,249.7		)	1,588.1
Total liabilities and equity	$	7,193.8	$	1,883.8	$	2,833.9	$	25,319.6	$	(2,199.6	)	$	35,031.5

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

Fiscal 2016	Consumer Products			Insurance			Corporate and Other			Discontinued Operations			Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	5,039.7		$	—		$	—		$	—		$	—		$	5,039.7
Net investment income	—			2.4			8.0			—			56.6			67.0
Net investment gains (losses)	—			148.0			—			—			(46.9		)	101.1
Insurance and investment product fees and other	—			—			0.9			—			6.7			7.6
Total revenues	5,039.7			150.4			8.9			—			16.4			5,215.4
Operating costs and expenses:
Cost of consumer products and other goods sold	3,119.8			—			—			—			—			3,119.8
Benefits and other changes in policy reserves	—			153.2			—			—			(50.2		)	103.0
Selling, acquisition, operating and general expenses	1,165.0			9.6			69.4			—			(0.4		)	1,243.6
Impairments and bad debt expense	4.7			—			23.5			—			(1.1		)	27.1
Amortization of intangibles	93.9			—			—			—			—			93.9
Total operating costs and expenses	4,383.4			162.8			92.9			—			(51.7		)	4,587.4
Operating income	656.3			(12.4		)	(84.0		)	—			68.1			628.0
Equity in net income of subsidiaries	—			—			43.0			—			(43.0		)	—
Interest expense	(250.0		)	—			(143.1		)	—			(4.0		)	(397.1		)
Affiliated interest expense	—			—			(12.2		)	—			12.2			—
Other income (expense), net	(8.6		)	—			11.1			—			(1.5		)	1.0
Income (loss) from continuing operations before income taxes	397.7			(12.4		)	(185.2		)	—			31.8			231.9
Income tax expense (benefit)	40.0			(2.4		)	18.9			—			(15.0		)	41.5
Net income (loss) from continuing operations	357.7			(10.0		)	(204.1		)	—			46.8			190.4
(Loss) income from discontinued operations, net of tax	—			—			—			(224.3		)	—			(224.3		)
Net (loss) income	357.7			(10.0		)	(204.1		)	(224.3		)	46.8			(33.9		)
Less: Net income attributable to noncontrolling interest	151.1			—			(5.3		)	19.1			—			164.9
Net loss attributable to controlling interest	$	206.6		$	(10.0	)	$	(198.8	)	$	(243.4	)	$	46.8		$	(198.8	)

Fiscal 2015	Consumer Products			Insurance			Corporate and Other			Discontinued Operations			Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	4,690.4		$	—		$	42.7		$	—		$	—		$	4,733.1
Net investment income	—			8.9			20.6			—			54.8			84.3
Net investment gains (losses)	—			(107.7		)	—			—			(6.3		)	(114.0		)
Insurance and investment product fees and other	—			—			0.1			—			6.2			6.3
Total revenues	4,690.4			(98.8		)	63.4			—			54.7			4,709.7
Operating costs and expenses:
Cost of consumer products and other goods sold	3,020.0			—			30.9			—			—			3,050.9
Benefits and other changes in policy reserves	—			(43.5		)	—			—			114.1			70.6
Selling, acquisition, operating and general expenses	1,108.5			13.4			181.1			—			(1.7		)	1,301.3
Impairments and bad debt expense	—			—			148.1			—			5.2			153.3
Amortization of intangibles	87.8			—			—			—			—			87.8
Total operating costs and expenses	4,216.3			(30.1		)	360.1			—			117.6			4,663.9
Operating income	474.1			(68.7		)	(296.7		)	—			(62.9		)	45.8
Equity in net loss of subsidiaries	—			—			(232.4		)	—			232.4			—
Interest expense	(271.9		)	—			(124.2		)	—			(5.5		)	(401.6		)
Affiliated interest expense	—			—			(29.6		)	—			29.6			—
Gain on deconsolidation of subsidiary	—			—			38.5			—			—			38.5
Other income (expense), net	(8.9		)	—			29.8			—			(10.7		)	10.2
Income (loss) from continuing operations before income taxes	193.3			(68.7		)	(614.6		)	—			182.9			(307.1		)
Income tax expense (benefit)	43.9			(24.0		)	(17.5		)	—			(18.6		)	(16.2		)
Net income (loss) from continuing operations	149.4			(44.7		)	(597.1		)	—			201.5			(290.9		)
(Loss) income from discontinued operations, net of tax	—			—			—			(221.5		)	—			(221.5		)
Net (loss) income	149.4			(44.7		)	(597.1		)	(221.5		)	201.5			(512.4		)
Less: Net income attributable to noncontrolling interest	62.7			—			(40.3		)	22.0			—			44.4
Net loss attributable to controlling interest	$	86.7		$	(44.7	)	$	(556.8	)	$	(243.5	)	$	201.5		$	(556.8	)

Fiscal 2014	Consumer Products			Insurance		Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	4,429.1		$	—	$	20.1		$	—	$	—		$	4,449.2
Net investment income	—			9.3		33.4			—		47.4			90.1
Net investment gains (losses)	—			135.0		—			—		(45.7		)	89.3
Insurance and investment product fees and other	—			—		—			—		6.1			6.1
Total revenues	4,429.1			144.3		53.5			—		7.8			4,634.7
Operating costs and expenses:
Cost of consumer products and other goods sold	2,860.3			—		15.3			—		—			2,875.6
Benefits and other changes in policy reserves	—			92.8		—			—		(25.9		)	66.9
Selling, acquisition, operating and general expenses	1,005.2			11.4		163.0			—		1.4			1,181.0
Impairments and bad debt expense	—			—		2.3			—		(0.2		)	2.1
Amortization of intangibles	81.7			—		—			—		—			81.7
Total operating costs and expenses	3,947.2			104.2		180.6			—		(24.7		)	4,207.3
Operating income	481.9			40.1		(127.1		)	—		32.5			427.4
Equity in net income of subsidiaries	—			—		251.6			—		(251.6		)	—
Interest expense	(202.1		)	—		(89.7		)	—		(7.0		)	(298.8		)
Affiliated interest expense	—			—		(15.6		)	—		15.6			—
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			—		(12.7		)	—		—			(12.7		)
Other income (expense), net	(6.3		)	—		(5.4		)	—		(0.2		)	(11.9		)
Income (loss) from continuing operations before income taxes	273.5			40.1		1.1			—		(210.7		)	104.0
Income tax expense (benefit)	59.0			15.7		1.2			—		13.7			89.6
Net income (loss) from continuing operations	214.5			24.4		(0.1		)	—		(224.4		)	14.4
(Loss) income from discontinued operations, net of tax	—			—		—			87.3		—			87.3
Net (loss) income	214.5			24.4		(0.1		)	87.3		(224.4		)	101.7
Less: Net income attributable to noncontrolling interest	88.9			—		10.2			12.9		—			112.0
Net loss attributable to controlling interest	125.6			24.4		(10.3		)	74.4		(224.4		)	(10.3		)
Less: Preferred stock dividends, accretion and loss on conversion	—			—		73.6			—		—			73.6
Net loss attributable to common and participating preferred stockholders	$	125.6		$	24.4	$	(83.9	)	$	74.4	$	(224.4	)	$	(83.9	)

following schedules present the Company’s accompanying Consolidated Balance Sheets information at September 30, 2016 and 2015, and accompanying Consolidated Statements of Operations information for Fiscal 2016, 2015 and 2014. These schedules present the individual segments of the Company and their contribution to the Consolidated Financial Statements. Amounts presented will not necessarily be the same as those in the individual financial statements of the Company’s subsidiaries due to adjustments for purchase accounting, income taxes and noncontrolling interests. In addition, some of the Company’s subsidiaries use a classified balance sheet which also leads to differences in amounts reported for certain line items.

The Corporate and Other column primarily reflects the parent company’s investment in its subsidiaries, invested cash portfolio and corporate long term debt, and the results of Salus and HGI Energy, as well as CorAmerica and FOH from their respective acquisition dates through the dates CorAmerica and FOH were deconsolidated. The elimination adjustments are for intercompany assets and liabilities, adjustments to align segment accounting policies with the consolidated basis, interest and dividends, the parent company’s investment in capital stocks of subsidiaries, and various reclasses of debit or credit balances to the amounts in consolidation. Purchase accounting adjustments have been pushed down to the appropriate subsidiary.