Harbinger Group Inc.
    Print Page | Close Window

SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 08/09/2016
Entire Document
 << Previous Page | Next Page >>

(17) Subsequent Events
ASC Topic 855, “Subsequent Events” (“ASC 855”), establishes general standards of accounting and disclosure of events that occur after the balance sheet date but before financial statements are issued or are available to be issued. ASC 855 requires the Company to evaluate events that occur after the balance sheet date through the date the Company’s financial statements are issued and to determine whether adjustments to or additional disclosures in the financial statements are necessary. The Company has evaluated subsequent events through the date these financial statements were issued.
As discussed in Note 1, Description of Business, on July 1, 2016, HGI Energy entered into the Compass Sale Agreement. As discussed in Note 4, Divestitures, the Company’s interest in Compass met all of the held for sale criteria established by ASC 360 on July 1, 2016, subsequent to the end of the third fiscal quarter of 2016. The disposal represents all of the oil and gas properties that are accounted for using the full-cost method and the operations of Compass will be presented as discontinued operations starting in the fourth fiscal quarter of 2016.
The following table summarizes the components of Compass’ assets and liabilities included in the accompanying Condensed Consolidated Balance Sheets at June 30, 2016 and September 30, 2015:
 
June 30,
2016
 
September 30, 2015
Assets
 
 
 
Cash and cash equivalents
$
5.4

 
$
34.0

Receivables, net
6.3

 
19.1

Properties, including oil and natural gas properties, net
114.1

 
288.9

Other assets
1.1

 
1.1

Total assets
126.9

 
343.1

Liabilities
 
 
 
Debt
123.4

 
325.9

Accounts payable and other current liabilities
15.2

 
33.6

Other liabilities
22.3

 
39.1

Total liabilities
160.9

 
398.6

Net Compass assets (liabilities) included in HRG’s Condensed Consolidated Balance Sheets
(34.0
)
 
(55.5
)
Less: noncontrolling interest
—

 
0.3

Total carrying value of HRG’s interest in Compass’ net assets (liabilities)
$
(34.0
)
 
$
(55.2
)
At June 30, 2016, the carrying value of the Company’s interest in Compass was lower than the fair value less cost to sell based on the sales price.
The following table summarizes the components of income attributable to Compass included in the accompanying Condensed Consolidated Statements of Operations for the three and nine months ended June 30, 2016 and 2015:
 
Three months ended June 30,
 
Nine months ended June 30,
 
2016
 
2015
 
2016
 
2015
Revenues:
 
 
 
 
 
 
 
Oil and natural gas revenues
$
9.7

 
$
24.2

 
$
36.0

 
$
84.6

 
 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
 
Oil and natural gas direct operating costs
9.1

 
22.3

 
35.4

 
66.1

Selling, acquisition, operating and general expenses
5.0

 
13.5

 
20.6

 
49.7

Impairments and bad debt expense
17.6

 
102.7

 
93.3

 
439.4

Total operating costs and expenses
31.7

 
138.5

 
149.3

 
555.2

Operating loss
(22.0
)
 
(114.3
)
 
(113.3
)
 
(470.6
)
Interest expense
1.6

 
2.9

 
5.3

 
7.3

Gain on sale of oil and gas properties
—

 
—

 
(105.6
)
 
—

Other income (loss), net
2.4

 
2.4

 
—

 
(21.6
)
Net loss
(26.0
)
 
(119.6
)
 
(13.0
)
 
(456.3
)
Less: net loss (income) attributable to noncontrolling interest
—

 
(0.2
)
 
0.1

 
(0.8
)
Net loss attributable to common and participating preferred stockholders
$
(26.0
)
 
$
(119.4
)
 
$
(13.1
)
 
$
(455.5
)

43
 << Previous Page | Next Page >>