SEC Filings
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| 10-Q | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| HRG GROUP, INC. filed this Form 10-Q on 05/09/2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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as a result of classifying our ownership interest in FGL as held for sale, partially offset by a $237.7 million reduction of valuation allowance on HRG’s net operating and capital loss carryforwards expected to offset the FGL taxable gain; as well as a $23.5 million write-down of the asset held for sale to its fair value less cost to sell. The decrease in income from discontinued operations was partially offset by an increase in net income from FGL of $42.9 million, net of an increase in income tax expense of $23.3 million. The increase in FGL’s pre-tax net income was primarily driven by (i) higher net investment income of $32.9 million recorded by FGL as a result of higher average assets under management and increased net investment spread; (ii) decrease in credit impairment losses of $35.0 million related to the impairment of a loan to RadioShack that was recorded in the Fiscal 2015 Six Months; and (iii) an increase in insurance and investment product fees of $18.6 million as a result of steady fixed indexed annuity sales growth over the past year. These increases were partially offset by a $25.6 million increase in amortization expense primarily due to higher gross margins as a result of the increases in net investment income and decrease in credit impairments due to the factors discussed above. Noncontrolling Interest. The net income attributable to noncontrolling interest reflects the share of the net income of our subsidiaries, which are not wholly-owned, attributable to the noncontrolling interest. Such amount varies in relation to such subsidiary’s net income or loss for the period and the percentage interest not owned by HRG. Consumer Products Segment Presented below is a table that summarizes the results of operations of our Consumer Products segment and compares the amount of the change between the periods (in millions):
Revenues. Net consumer products sales for the Fiscal 2016 Quarter increased $142.6 million, or 13.4%, to $1,209.6 million from $1,067.0 million for the Fiscal 2015 Quarter. The increase in net consumer product sales in the Fiscal 2016 Quarter was primarily due to the impact of the acquisition of AAG that accounted for $119.5 million, as well as organic growth in sales in home and garden control products, hardware and home improvement products, consumer batteries, personal care products, and global pet supplies products lines. These increases were partially offset by the negative impact of foreign exchange of $32.1 million and a decrease in small appliances sales. The following table details the principal components of the change in the Consumer Products segment net sales from the Fiscal 2015 Quarter to Fiscal 2016 Quarter (in millions):
Home and garden control products constant currency sales increased $31.1 million for the Fiscal 2016 Quarter compared to the Fiscal 2015 Quarter driven by increases in animal repellents of $14.9 million, household insect controls of $9.0 million and increase of lawn and garden control products of $7.2 million. The increase in lawn and garden control products was due to increased volumes due to timing of seasonal inventory sales coupled with increased distribution with key retailers. The increase in repellents and insect control products was driven by increased retail demand due to higher anticipated seasonal volume and demand driven by the Zika virus. Hardware and home improvement products constant currency sales grew $17.7 million for the Fiscal 2016 Quarter 46 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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