Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 08/09/2016
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Liability Derivatives
 
Classification
 
June 30,
2016
 
September 30,
2015
 
 
 
 
 
 
(As Adjusted)
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Interest rate swaps
 
Accounts payable and other current liabilities
 
$
1.3

 
$
1.4

Interest rate swaps
 
Other liabilities
 
0.5

 
1.2

Commodity swaps
 
Accounts payable and other current liabilities
 
0.4

 
4.7

Commodity swaps
 
Other liabilities
 
—

 
0.8

Foreign exchange contracts
 
Accounts payable and other current liabilities
 
1.7

 
1.5

Foreign exchange contracts
 
Other liabilities
 
0.1

 
—

Total liability derivatives designated as hedging instruments
 
 
 
4.0

 
9.6

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Embedded derivatives in Front Street's assumed FIA business
 
Insurance reserves
 
133.5

 
142.3

Foreign exchange
 
Accounts payable and other current liabilities
 
0.6

 
0.1

Commodity contracts
 
Accounts payable and other current liabilities
 
1.6

 
0.1

Total liability derivatives
 
 
 
$
139.7

 
$
152.1

For derivative instruments that are used to economically hedge the fair value of Spectrum Brands’ third party and intercompany foreign currency payments, commodity purchases and interest rate payments, the gain (loss) associated with the derivative contract is recognized in earnings in the period of change. The Company recognizes all derivative instruments as assets or liabilities in the accompanying Condensed Consolidated Balance Sheets at fair value.
The following summarizes the impact of derivative instruments on the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2016 and 2015:
 
 
 
 
Three months ended June 30,
 
 
 
 
2016
 
2015
 
 
 
 
Effective portion
 
Ineffective portion
 
Effective portion
 
Ineffective portion
 
 
Classification
 
Gain (Loss) in AOCI
 
Gain (Loss) reclassified to Earnings
 
Gain (Loss)
 
Gain (Loss) in AOCI
 
Gain (Loss) reclassified to Earnings
 
Gain (Loss)
Interest rate swaps
 
Interest expense
 
$
(0.2
)
 
$
(0.4
)
 
$
—

 
$
(0.4
)
 
$
(0.5
)
 
$
—

Commodity swaps
 
Cost of consumer products and other goods sold
 
2.1

 
(0.8
)
 
0.1

 
(0.7
)
 
—

 
—

Foreign exchange contracts
 
Net consumer and other product sales
 
(0.3
)
 
—

 
—

 
0.1

 
—

 
—

Foreign exchange contracts
 
Cost of consumer products and other goods sold
 
8.0

 
0.1

 
—

 
(6.8
)
 
8.6

 
—

 
 
 
 
$
9.6

 
$
(1.1
)
 
$
0.1

 
$
(7.8
)
 
$
8.1

 
$
—

 
 
 
 
Nine months ended June 30,
 
 
 
 
2016
 
2015
 
 
 
 
Effective portion
 
Ineffective portion
 
Effective portion
 
Ineffective portion
 
 
Classification
 
Gain (Loss) in AOCI
 
Gain (Loss) reclassified to Earnings
 
Gain (Loss)
 
Gain (Loss) in AOCI
 
Gain (Loss) reclassified to Earnings
 
Gain (Loss)
Interest rate swaps
 
Interest expense
 
$
(0.5
)
 
$
(1.4
)
 
$
—

 
$
(2.4
)
 
$
(1.4
)
 
$
—

Commodity swaps
 
Cost of consumer products and other goods sold
 
2.9

 
(3.8
)
 
0.1

 
(2.4
)
 
0.3

 
—

Foreign exchange contracts
 
Net consumer and other product sales
 
(0.4
)
 
—

 
—

 
0.1

 
—

 
—

Foreign exchange contracts
 
Cost of consumer products and other goods sold
 
6.8

 
5.0

 
—

 
14.0

 
21.0

 
—

 
 
 
 
$
8.8

 
$
(0.2
)
 
$
0.1

 
$
9.3

 
$
19.9

 
$
—


17
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