HRG GROUP, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (In millions)
|
| | | | | | | | | | | |
| Year ended September 30, |
| 2016 | | 2015 | | 2014 |
Cash flows from operating activities: | | | | | |
Net (loss) income | $ | (33.9 | ) | | $ | (512.4 | ) | | $ | 101.7 |
|
(Loss) income from discontinued operations, net of tax | (224.3 | ) | | (221.5 | ) | | 87.3 |
|
Net income (loss) from continuing operations | 190.4 |
| | (290.9 | ) | | 14.4 |
|
Adjustments to reconcile net income (loss) to operating cash flows from continuing operations: | | | | | |
Depreciation of properties | 89.8 |
| | 83.2 |
| | 76.5 |
|
Amortization of intangibles | 93.9 |
| | 87.8 |
| | 81.7 |
|
Impairment of intangible assets and goodwill | 15.4 |
| | 60.2 |
| | — |
|
Loan provision and bad debt expense | 12.8 |
| | 93.5 |
| | 2.2 |
|
Stock-based compensation | 78.0 |
| | 72.6 |
| | 73.7 |
|
Amortization of debt issuance costs | 18.3 |
| | 17.2 |
| | 16.2 |
|
Amortization of debt discount | 2.8 |
| | 4.8 |
| | 4.6 |
|
Write-off of discounts and debt issuance costs on retired debt | 5.8 |
| | 12.8 |
| | 9.2 |
|
Deferred income taxes | (4.8 | ) | | (46.4 | ) | | 23.4 |
|
Gain on deconsolidation of subsidiary | — |
| | (38.5 | ) | | — |
|
Interest credited/index credits to contractholder account balances | 36.0 |
| | 32.3 |
| | 52.7 |
|
Net recognized losses (gains) on investments and derivatives | (54.1 | ) | | 126.6 |
| | (64.2 | ) |
Charges assessed to contractholders for mortality and administration | (1.1 | ) | | (1.1 | ) | | (1.1 | ) |
Non-cash increase to cost of goods sold due to the sale of inventory revalued in acquisition | — |
| | 21.7 |
| | — |
|
Non-cash restructuring and related charges | 6.4 |
| | 20.1 |
| | 9.2 |
|
Changes in operating assets and liabilities: | 68.6 |
| | 44.4 |
| | 178.4 |
|
Net change in cash due to continuing operating activities | 558.2 |
| | 300.3 |
| | 476.9 |
|
Net change in cash due to discontinued operating activities | 355.1 |
| | 16.5 |
| | 227.2 |
|
Net change in cash due to operating activities | 913.3 |
| | 316.8 |
| | 704.1 |
|
Cash flows from investing activities: | | | | | |
Proceeds from investments sold, matured or repaid | 53.7 |
| | 86.6 |
| | 54.9 |
|
Cost of investments acquired | (5.2 | ) | | (5.4 | ) | | (101.7 | ) |
Acquisitions, net of cash acquired | — |
| | (1,328.4 | ) | | (27.3 | ) |
Net asset-based loan repayments (originations) | 177.2 |
| | 289.2 |
| | (127.6 | ) |
Capital expenditures | (95.4 | ) | | (90.6 | ) | | (75.5 | ) |
Proceeds from sales of assets | 19.7 |
| | 1.4 |
| | 9.2 |
|
Other investing activities, net | (4.1 | ) | | (0.4 | ) | | (1.8 | ) |
Net change in cash due to continuing investing activities | 145.9 |
| | (1,047.6 | ) | | (269.8 | ) |
Net change in cash due to discontinued investing activities | (1,037.3 | ) | | (1,093.7 | ) | | (1,672.1 | ) |
Net change in cash due to investing activities | (891.4 | ) | | (2,141.3 | ) | | (1,941.9 | ) |
Cash flows from financing activities: | | | | | |
Proceeds from issuance of new debt | 485.0 |
| | 3,705.3 |
| | 933.3 |
|
Repayment of debt, including tender and call premiums | (1,090.8 | ) | | (3,050.5 | ) | | (770.9 | ) |
Debt issuance costs | (9.3 | ) | | (44.8 | ) | | (15.8 | ) |
Purchases of subsidiary stock, net | (52.1 | ) | | (49.6 | ) | | (9.3 | ) |
Contractholder account deposits | 5.9 |
| | 78.9 |
| | 23.0 |
|
Contractholder account withdrawals | (140.6 | ) | | (140.8 | ) | | (158.2 | ) |
Dividend paid by subsidiary to noncontrolling interest | (37.3 | ) | | (31.0 | ) | | (26.0 | ) |
Dividends paid on preferred stock | — |
| | — |
| | (28.6 | ) |
Share based award tax withholding payments | (28.7 | ) | | (21.0 | ) | | (31.5 | ) |
Common stock repurchased | — |
| | (22.2 | ) | | (65.8 | ) |
Net proceeds from issuance subsidiary common stock | — |
| | 281.0 |
| | — |
|
Other financing activities, net | 1.3 |
| | 4.1 |
| | 2.8 |
|
Net change in cash due to continuing financing activities | (866.6 | ) | | 709.4 |
| | (147.0 | ) |
Net change in cash due to discontinued financing activities | 1,015.3 |
| | 1,021.4 |
| | 813.0 |
|
Net change in cash due to financing activities | 148.7 |
| | 1,730.8 |
| | 666.0 |
|
Effect of exchange rate changes on cash and cash equivalents | (1.4 | ) | | (29.7 | ) | | (8.3 | ) |
Net change in cash and cash equivalents | (163.9 | ) | | (67.6 | ) | | 51.8 |
|
Cash and cash equivalents at beginning of period | 661.2 |
| | 728.8 |
| | 677.0 |
|
Cash and cash equivalents at end of period | $ | 497.3 |
| | $ | 661.2 |
| | $ | 728.8 |
|
| | | | | |
Supplemental disclosure of cash flow information: | | | | | |
Cash paid for interest | $ | 397.7 |
| | $ | 395.7 |
| | $ | 278.9 |
|
Cash paid for taxes, net | 35.9 |
| | 61.0 |
| | 80.7 |
|
