Divestitures Divestitures (Notes)

12 Months Ended

Sep. 30, 2017

Divestitures [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

The following table summarizes the components of “Income (loss) from discontinued operations, net of tax” in the accompanying Consolidated Statements of Operations for Fiscal 2017, 2016 and 2015:

	Fiscal
	2017		2016			2015
Income (loss) from discontinued operations, net of tax attributable to Insurance Operations	$	170.3	$	(218.9	)	$	75.9
Income (loss) from discontinued operations, net of tax attributable to Compass Production Partners, LP (“Compass”)	—		40.8			(368.6		)
Income (loss) from discontinued operations, net of tax	$	170.3	$	(178.1	)	$	(292.7	)

Insurance Operations

As previously discussed in Note 1, Basis of Presentation and Nature of Operations, the Insurance Operations were classified as held for sale in the accompanying Consolidated Balance Sheets and as discontinued operations in the accompanying Consolidated Statements of Operations.

The following table summarizes the major categories of assets and liabilities of the Insurance Operations classified as held for sale in the accompanying Consolidated Balance Sheets at September 30, 2017 and 2016:

	September 30, 2017			September 30, 2016
Assets
Investments, including loans and receivables from affiliates	$	23,211.1		$	21,160.6
Funds withheld receivables	742.7			671.6
Cash and cash equivalents	914.5			896.0
Accrued investment income	231.3			213.7
Reinsurance recoverable	2,358.8			2,344.4
Deferred acquisition costs and value of business acquired, net	1,163.6			1,065.5
Other assets	125.4			295.3
Write-down of assets of businesses held for sale to fair value less cost to sell	(421.2		)	(362.8		)
Total assets of businesses held for sale	$	28,326.2		$	26,284.3
Liabilities
Insurance reserves	$	24,989.6		$	23,404.6
Debt	405.0			398.8
Accounts payable and other current liabilities	56.2			63.1
Deferred tax liabilities	68.0			9.9
Other liabilities	831.9			677.4
Total liabilities of businesses held for sale	$	26,350.7		$	24,553.8

In accordance with ASC 360, Property, Plant and Equipment, long-lived assets classified as held for sale are measured at the lower of their carrying value or fair value less cost to sell at the balance sheet date. At September 30, 2017, the carrying value of the Company’s interest in FGL was $402.2 higher than FGL’s estimated fair value less cost to sell of $1,471.3. As a result, during Fiscal 2017, the Company recorded a $39.4 write-down of assets of business held for sale, which was in addition to the $362.8 write-down previously recorded at September 30, 2016. At September 30, 2017, the carrying value of the Company’s interest in Front Street was $19.0 higher than Front Street’s estimated fair value less cost to sell of $65.0. As a result, during Fiscal 2017, the Company recorded a $19.0 write-down of assets of Front Street’s business held for sale.

The following table summarizes the components of “Net income (loss) from discontinued operations” in the accompanying Consolidated Statements of Operations for Fiscal 2017, 2016 and 2015:

	Fiscal
	2017			2016			2015
Revenues:
Insurance premiums	$	43.9		$	72.5		$	59.9
Net investment income	1,050.7			985.9			923.0
Net investment gains (losses)	377.4			131.6			(128.8		)
Insurance and investment product fees and other	169.5			130.5			93.1
Total revenues	1,641.5			1,320.5			947.2
Operating costs and expenses:
Benefits and other changes in policy reserves	925.9			893.9			649.0
Selling, acquisition, operating and general expenses	148.2			127.9			124.9
Amortization of intangibles	197.5			78.6			41.8
Total operating costs and expenses	1,271.6			1,100.4			815.7
Operating income	369.9			220.1			131.5
Interest expense	(24.4		)	(22.0		)	(23.6		)
Write-down of assets of businesses held for sale to fair value less cost to sell	(58.4		)	(362.8		)	—
Net income (loss) before income taxes	287.1			(164.7		)	107.9
Income tax expense (a)	116.8			54.2			32.0
Net income (loss)	170.3			(218.9		)	75.9
Less: net income attributable to noncontrolling interest	43.7			19.0			23.1
Net income (loss) - attributable to controlling interest	$	126.6		$	(237.9	)	$	52.8

(a) Included in the income tax expense for Fiscal 2016 was a$15.2of income tax expense primarily related to the establishment of a deferred tax liability of$367.9at September 30, 2016, which was a result of classifying the Company’s ownership interest in FGL as held for sale following the Anbang/FGL Merger Agreement, partially offset by the recognition of a$94.7deferred tax asset related to realized capital losses primarily from the Compass Sale and$258.0reduction of valuation allowances on HRG’s net operating and capital loss carryforwards expected to offset the FGL taxable gain at September 30, 2016. The remaining liability is expected to be offset by losses recognized in continuing operations except for $15.2of estimated alternative minimum taxes. Based on the Company’s current intent to exercise the 338 Tax Election related to the FGL Merger, the Company reversed the previously recorded deferred tax liability and deferred tax asset valuation allowance reduction, which resulted in the recognition of a$15.2income tax benefit inFiscal 2017.

Compass

On July 1, 2016, HGI Energy entered into an agreement to sell its equity interests in Compass to a third party (such agreement, the “Compass Sale Agreement”). During Fiscal 2016, the transactions contemplated by the Compass Sale Agreement were consummated. This sale represented the disposal of all of the Company’s oil and gas properties, which were accounted for using the full-cost method prior to their disposal. The Company has determined that the completion of HGI Energy’s sale of its equity interests in Compass to a third party represented a strategic shift for the Company and, accordingly, has presented the results of operations for Compass as discontinued operations in the accompanying Consolidated Statements of Operations.

The following table summarizes the components of “Net income (loss) from discontinued operations” attributable to Compass in the accompanying Consolidated Statements of Operations for Fiscal 2016 and 2015.

	Fiscal
	2016			2015
Revenues:
Oil and natural gas revenues	$	40.2		$	107.4
Operating costs and expenses:
Oil and natural gas direct operating costs	38.2			85.9
Selling, acquisition, operating and general expenses	22.8			62.0
Impairments and bad debt expense	93.2			485.1
Total operating costs and expenses	154.2			633.0
Operating loss	(114.0		)	(525.6		)
Interest expense	(5.9		)	(9.9		)
Gain upon gaining control of equity method investment	—			141.2
Gain on sale of oil and gas properties	105.6			—
Other income, net	1.5			25.7
Gain on disposal	53.6			—
Net income (loss)	40.8			(368.6		)
Less: net income (loss) attributable to noncontrolling interest	0.1			(1.1		)
Net income (loss) attributable to common and participating preferred stockholders	$	40.7		$	(367.5	)