Consolidating Financial Information

12 Months Ended

Sep. 30, 2017

Consolidating Financial Information [Abstract]

following schedules present the Company’s accompanying Consolidated Balance Sheets information at September 30, 2017 and 2016, and accompanying Consolidated Statements of Operations information for Fiscal 2017, 2016 and 2015. 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.

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. Reflected in Corporate and Other is also $67.4 of negative book value of HGI Asset Management Holdings LLC as of September 30, 2017, which is primarily attributable to historical loan losses incurred by Salus. 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.

HRG Group, Inc. - Consolidating Balance Sheets Information



September 30, 2017	Consumer Products		Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investments in subsidiaries and affiliates	$	—	$	2,631.7		$	—	$	(2,631.7	)	$	—
Cash and cash equivalents	168.2		101.9			—		—			270.1
Receivables, net	569.5		0.3			—		—			569.8
Inventories, net	775.5		—			—		—			775.5
Deferred tax assets	20.2		—			—		—			20.2
Property, plant and equipment, net	699.9		0.8			—		—			700.7
Goodwill	2,626.0		—			—		—			2,626.0
Intangibles, net	2,424.0		—			—		—			2,424.0
Other assets	136.4		0.8			—		—			137.2
Assets of businesses held for sale	—		—			28,326.2		—			28,326.2
Total assets	$	7,419.7	$	2,735.5		$	28,326.2	$	(2,631.7	)	$	35,849.7

Liabilities and Equity:
Debt	$	3,840.7	$	1,793.3		$	—	$	140.1		$	5,774.1
Accounts payable and other current liabilities	1,076.7		38.3			—		0.6			1,115.6
Employee benefit obligations	83.3		4.2			—		—			87.5
Deferred tax liabilities	531.4		—			—		—			531.4
Other liabilities	40.9		2.6			—		—			43.5
Affiliated debt and payables	—		140.7			—		(140.7		)	—
Liabilities of businesses held for sale	—		—			26,350.7		—			26,350.7
Total liabilities	5,573.0		1,979.1			26,350.7		—			33,902.8
Total shareholders’ equity	1,095.4		758.0			1,536.3		(2,631.7		)	758.0
Noncontrolling interests	751.3		(1.6		)	439.2		—			1,188.9
Total shareholders’ equity	1,846.7		756.4			1,975.5		(2,631.7		)	1,946.9
Total liabilities and equity	$	7,419.7	$	2,735.5		$	28,326.2	$	(2,631.7	)	$	35,849.7



September 30, 2016	Consumer Products		Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Assets:
Investment in subsidiaries and affiliates	$	—	$	2,405.3		$	—	$	(2,405.3	)	$	—
Cash and cash equivalents	275.3		189.9			—		—			465.2
Receivables, net	538.2		0.9			—		—			539.1
Inventories, net	740.6		—			—		—			740.6
Deferred tax assets	18.3		—			—		—			18.3
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		34.6			—		—			138.3
Assets of businesses held for sale	—		—			26,284.3		—			26,284.3
Total assets	$	7,069.1	$	2,632.0		$	26,284.3	$	(2,405.3	)	$	33,580.1

Liabilities and Equity:
Debt	$	3,620.2	$	1,747.7		$	—	$	157.9		$	5,525.8
Accounts payable and other current liabilities	931.6		51.6			—		—			983.2
Employee benefit obligations	120.2		5.2			—		—			125.4
Deferred tax liabilities	532.7		13.3			—		—			546.0
Other liabilities	20.4		8.3			—		—			28.7
Affiliated debt and payables	—		171.2			—		(171.2		)	—
Liabilities of businesses held for sale	—		—			24,553.8		—			24,553.8
Total liabilities	5,225.1		1,997.3			24,553.8		(13.3		)	31,762.9
Total shareholders’ equity	1,040.4		638.1			1,351.6		(2,392.0		)	638.1
Noncontrolling interests	803.6		(3.4		)	378.9		—			1,179.1
Total shareholders’ equity	1,844.0		634.7			1,730.5		(2,392.0		)	1,817.2
Total liabilities and equity	$	7,069.1	$	2,632.0		$	26,284.3	$	(2,405.3	)	$	33,580.1

HRG Group, Inc. - Consolidating Statements of Operations Information



Fiscal 2017	Consumer Products			Corporate and Other			Discontinued Operations		Eliminations and adjustments			Total
Revenues:
Net sales	$	5,007.4		$	—		$	—	$	—		$	5,007.4
Net investment income	—			1.1			—		—			1.1
Total revenues	5,007.4			1.1			—		—			5,008.5
Operating costs and expenses:
Cost of goods sold	3,132.6			—			—		—			3,132.6
Selling, acquisition, operating and general expenses	1,313.4			46.8			—		(0.6		)	1,359.6
Total operating costs and expenses	4,446.0			46.8			—		(0.6		)	4,492.2
Operating income	561.4			(45.7		)	—		0.6			516.3
Equity in net income of subsidiaries	—			297.1			—		(297.1		)	—
Interest expense	(211.1		)	(148.3		)	—		(0.7		)	(360.1		)
Affiliated interest income	—			11.4			—		(11.4		)	—
Other (expense) income, net	(5.7		)	0.7			—		—			(5.0		)
Income (loss) from continuing operations before income taxes	344.6			115.2			—		(308.6		)	151.2
Income tax expense	47.5			9.3			—		(8.5		)	48.3
Net income (loss) from continuing operations	297.1			105.9			—		(300.1		)	102.9
Income (loss) from discontinued operations, net of tax	—			—			170.3		—			170.3
Net income (loss)	297.1			105.9			170.3		(300.1		)	273.2
Less: Net income attributable to noncontrolling interest	123.6			(0.1		)	43.7		—			167.2
Net income (loss) attributable to controlling interest	$	173.5		$	106.0		$	126.6	$	(300.1	)	$	106.0



Fiscal 2016	Consumer Products			Corporate and Other			Discontinued Operations			Eliminations and adjustments			Total
Revenues:
Net sales	$	5,039.7		$	—		$	—		$	—		$	5,039.7
Net investment income	—			8.9			—			—			8.9
Total revenues	5,039.7			8.9			—			—			5,048.6
Operating costs and expenses:
Cost of goods sold	3,119.8			—			—			—			3,119.8
Selling, acquisition, operating and general expenses	1,263.6			91.7			—			—			1,355.3
Total operating costs and expenses	4,383.4			91.7			—			—			4,475.1
Operating income	656.3			(82.8		)	—			—			573.5
Equity in net income of subsidiaries	—			43.0			—			(43.0		)	—
Interest expense	(250.0		)	(144.3		)	—			(8.2		)	(402.5		)
Affiliated interest expense	—			(12.2		)	—			12.2			—
Other (expense) income, net	(8.6		)	11.1			—			2.3			4.8
Income (loss) from continuing operations before income taxes	397.7			(185.2		)	—			(36.7		)	175.8
Income tax expense	40.0			18.9			—			(27.3		)	31.6
Net income (loss) from continuing operations	357.7			(204.1		)	—			(9.4		)	144.2
Income (loss) from discontinued operations, net of tax	—			—			(178.1		)	—			(178.1		)
Net income (loss)	357.7			(204.1		)	(178.1		)	(9.4		)	(33.9		)
Less: Net income attributable to noncontrolling interest	151.1			(5.3		)	19.1			—			164.9
Net income (loss) attributable to controlling interest	$	206.6		$	(198.8	)	$	(197.2	)	$	(9.4	)	$	(198.8	)



Fiscal 2015	Consumer Products			Corporate and Other			Discontinued Operations			Eliminations and adjustments			Total
Revenues:
Net sales	$	4,690.4		$	42.7		$	—		$	—		$	4,733.1
Net investment income	—			20.7			—			—			20.7
Total revenues	4,690.4			63.4			—			—			4,753.8
Operating costs and expenses:
Cost of goods sold	3,020.0			30.9			—			—			3,050.9
Selling, acquisition, operating and general expenses	1,196.3			327.5			—			—			1,523.8
Total operating costs and expenses	4,216.3			358.4			—			—			4,574.7
Operating income	474.1			(295.0		)	—			—			179.1
Equity in net loss of subsidiaries	—			(232.4		)	—			232.4			—
Interest expense	(271.9		)	(125.9		)	—			(10.0		)	(407.8		)
Affiliated interest expense	—			(29.6		)	—			29.6			—
Gain on deconsolidation of subsidiary	—			38.5			—			—			38.5
Other (expense) income, net	(8.9		)	29.8			—			(10.8		)	10.1
Income (loss) from continuing operations before income taxes	193.3			(614.6		)	—			241.2			(180.1		)
Income tax expense	43.9			(17.5		)	—			13.2			39.6
Net income (loss) from continuing operations	149.4			(597.1		)	—			228.0			(219.7		)
Income (loss) from discontinued operations, net of tax	—			—			(292.7		)	—			(292.7		)
Net income (loss)	149.4			(597.1		)	(292.7		)	228.0			(512.4		)
Less: Net income attributable to noncontrolling interest	62.7			(40.3		)	22.0			—			44.4
Net income (loss) attributable to controlling interest	$	86.7		$	(556.8	)	$	(314.7	)	$	228.0		$	(556.8	)