Consolidating Financial Information (Tables)

3 Months Ended

Dec. 31, 2016

HRG Group, Inc. - Condensed Consolidating Balance Sheets Information



December 31, 2016	Consumer Products		Insurance		Corporate and Other		Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investments in subsidiaries and affiliates	$	—	$	0.6	$	2,362.3	$	—	$	(2,362.9	)	$	—
Affiliated loans and receivables	—		20.2		0.2		—		(20.4		)	—
Cash and cash equivalents	143.3		35.4		170.1		—		—			348.8
Funds withheld receivables	—		1,682.8		—		—		(73.8		)	1,609.0
Receivables, net	546.2		9.7		0.4		—		0.2			556.5
Inventories, net	779.7		—		—		—		—			779.7
Deferred tax assets	18.2		12.4		—		—		17.8			48.4
Property, plant and equipment, net	568.2		—		0.9		—		—			569.1
Goodwill	2,464.5		—		—		—		—			2,464.5
Intangibles, net	2,327.9		—		—		—		—			2,327.9
Other assets	106.5		19.3		15.3		—		16.1			157.2
Assets of business held for sale	—		—		—		26,801.6		—			26,801.6
Total assets	$	6,954.5	$	1,780.4	$	2,549.2	$	26,801.6	$	(2,423.0	)	$	35,662.7



Liabilities and Equity:
Insurance reserves	$	—	$	1,653.3	$	—		$	—	$	68.6		$	1,721.9
Debt	3,656.2		—		1,746.0			—		56.8			5,459.0
Accounts payable and other current liabilities	825.4		6.6		67.9			—		0.5			900.4
Employee benefit obligations	106.5		—		5.2			—		—			111.7
Deferred tax liabilities	563.1		—		9.9			—		0.1			573.1
Other liabilities	17.9		2.8		6.0			—		—			26.7
Affiliated debt and payables	—		0.3		168.4			—		(168.7		)	—
Liabilities of business held for sale	—		—		—			25,200.5		—			25,200.5
Total liabilities	5,169.1		1,663.0		2,003.4			25,200.5		(42.7		)	33,993.3
Total stockholders’ equity	1,003.3		117.4		548.1			1,259.6		(2,380.3		)	548.1
Noncontrolling interests	782.1		—		(2.3		)	341.5		—			1,121.3
Total permanent equity	1,785.4		117.4		545.8			1,601.1		(2,380.3		)	1,669.4
Total liabilities and equity	$	6,954.5	$	1,780.4	$	2,549.2		$	26,801.6	$	(2,423.0	)	$	35,662.7



September 30, 2016	Consumer Products		Insurance		Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investment 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 stockholders’ 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 permanent 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

Schedule of Income Statement Information

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



Three months ended December 31, 2016	Consumer Products			Insurance			Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	1,211.8		$	—		$	—		$	—	$	—		$	1,211.8
Net investment income	—			—			0.3			—		10.4			10.7
Net investment losses	—			(28.7		)	—			—		(5.1		)	(33.8		)
Insurance and investment product fees and other	—			—			—			—		0.9			0.9
Total revenues	1,211.8			(28.7		)	0.3			—		6.2			1,189.6
Operating costs and expenses:
Cost of consumer products and other goods sold	761.8			—			—			—		—			761.8
Benefits and other changes in policy reserves	—			(15.7		)	—			—		4.1			(11.6		)
Selling, acquisition, operating and general expenses	299.0			2.4			20.5			—		(0.2		)	321.7
Total operating costs and expenses	1,060.8			(13.3		)	20.5			—		3.9			1,071.9
Operating income	151.0			(15.4		)	(20.2		)	—		2.3			117.7
Equity in net income of subsidiaries	—			—			263.7			—		(263.7		)	—
Interest expense	(55.8		)	—			(35.9		)	—		—			(91.7		)
Affiliated interest expense	—			—			(1.7		)	—		1.7			—
Other income (expense), net	1.1			—			0.3			—		—			1.4
Income from continuing operations before income taxes	96.3			(15.4		)	206.2			—		(259.7		)	27.4
Income tax expense (benefit)	31.1			(3.8		)	(6.0		)	—		4.1			25.4
Net income from continuing operations	65.2			(11.6		)	212.2			—		(263.8		)	2.0
Income (loss) from discontinued operations, net of tax	—			—			—			258.8		—			258.8
Net income	65.2			(11.6		)	212.2			258.8		(263.8		)	260.8
Less: Net income attributable to noncontrolling interest	27.5			—			—			21.1		—			48.6
Net income (loss) attributable to controlling interest	$	37.7		$	(11.6	)	$	212.2		$	237.7	$	(263.8	)	$	212.2



Three months ended December 31, 2015	Consumer Products			Insurance			Corporate and Other			Discontinued Operations			Eliminations and adjustments			Total
Revenues:
Net consumer and other product sales	$	1,218.8		$	—		$	—		$	—		$	—		$	1,218.8
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		)	6.0			—			(5.4		)	1,209.4
Operating costs and expenses:
Cost of consumer products and other goods sold	778.1			—			—			—			—			778.1
Benefits and other changes in policy reserves	—			(12.4		)	—			—			13.2			0.8
Selling, acquisition, operating and general expenses	298.2			2.4			29.7			—			0.4			330.7
Total operating costs and expenses	1,076.3			(10.0		)	29.7			—			13.6			1,109.6
Operating income	142.5			—			(23.7		)	—			(19.0		)	99.8
Equity in net income of subsidiaries	—			—			20.6			—			(20.6		)	—
Interest expense	(58.4		)	—			(35.7		)	—			(1.1		)	(95.2		)
Affiliated interest expense	—			—			(5.4		)	—			5.4			—
Other income (expense), net	(3.5		)	—			3.0			—			(0.2		)	(0.7		)
Income from continuing operations before income taxes	80.6			—			(41.2		)	—			(35.5		)	3.9
Income tax expense (benefit)	6.9			(1.3		)	(7.5		)	—			(3.7		)	(5.6		)
Net income from continuing operations	73.7			1.3			(33.7		)	—			(31.8		)	9.5
Income (loss) from discontinued operations, net of tax	—			—			—			(2.5		)	—			(2.5		)
Net income	73.7			1.3			(33.7		)	(2.5		)	(31.8		)	7.0
Less: Net income attributable to noncontrolling interest	31.1			—			0.2			9.6			—			40.9
Net income (loss) attributable to controlling interest	$	42.6		$	1.3		$	(33.9	)	$	(12.1	)	$	(31.8	)	$	(33.9	)