Comprehensive Income (Loss)

9 Months Ended

Jul. 03, 2011

Comprehensive Income (Loss) [Abstract]

Comprehensive Income (Loss)

(2) Comprehensive Income (Loss)

Comprehensive income (loss) and the components of other comprehensive income (loss), net of tax, for the three and nine month periods ended July 3, 2011 and July 4, 2010 are as follows:

	Three Months						Nine Months
	2011			2010			2011			2010
Net income (loss)	$	206,646		$	(86,922	)	$	92,800		$	(166,205	)
Other comprehensive income (loss):
Consumer Products and Other:
Foreign currency translation		13,139			(2,870	)		33,009			(9,306	)
Valuation allowance adjustments		(216	)		668			860			(2,453	)
Pension liability adjustments		—			—			—			(52	)
Net unrealized (loss) on derivative instruments		(653	)		1,548			(3,718	)		(1,850	)
		12,270			(654	)		30,151			(13,661	)
Insurance:
Unrealized investment gains (losses):
Changes in unrealized investment gains before reclassification adjustment		227,381			—			227,381			—
Net reclassification adjustment for gains included in net income		(15,032	)		—			(15,032	)		—
Changes in unrealized investment gains after reclassification adjustment		212,349			—			212,349			—
Adjustments to intangible assets		(71,344	)		—			(71,344	)		—
Changes in deferred income tax asset/liability		(49,352	)		—			(49,352	)		—
Net unrealized gain on investments		91,653			—			91,653			—
Non-credit related other-than-temporary impairment:
Changes in non-credit related other-than-temporary impairment		(144	)		—			(144	)		—
Adjustments to intangible assets		48			—			48			—
Changes in deferred income tax asset/liability		34			—			34			—
Net non-credit related other-than-temporary impairment		(62	)		—			(62	)		—
Net change to derive comprehensive loss for the period		103,861			(654	)		121,742			(13,661	)
Comprehensive income (loss)		310,507			(87,576	)		214,542			(179,866	)
Less: Comprehensive income (loss) attributable to the noncontrolling interest:
Net income (loss)		13,015			(35,304	)		(18,811	)		(35,304	)
Other comprehensive income (loss)		5,583			3,506			13,719			3,506
		18,598			(31,798	)		(5,092	)		(31,798	)
Comprehensive income (loss) attributable to the controlling interest	$	291,909		$	(55,778	)	$	219,634		$	(148,068	)

Net exchange gains or losses resulting from the translation of assets and liabilities of foreign subsidiaries are accumulated, net of taxes and noncontrolling interest, in the “Accumulated other comprehensive income (loss)” (“AOCI”) section of HGI’s stockholders’ equity. Also included are the effects of exchange rate changes on intercompany balances of a long-term nature and transactions designated as hedges of net foreign investments.

The changes in accumulated foreign currency translation for the three and nine month periods ended July 3, 2011 and July 4, 2010 were primarily attributable to the impact of translation of the net assets of the Company’s European and Latin American operations, primarily denominated in Euros, Pounds Sterling and Brazilian Real.

Net unrealized gains and losses on investment securities classified as available-for-sale are reduced by deferred income taxes and adjustments to intangible assets, including value of business acquired (“VOBA”) and deferred policy acquisition costs (“DAC”), that would have resulted had such gains and losses been realized. Changes in net unrealized gains and losses on investment securities classified as available-for-sale are recognized in other comprehensive income and loss. See Note 7 for additional disclosures regarding VOBA and DAC.