Harbinger Group Inc.
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SEC Filings

10-K
HRG GROUP, INC. filed this Form 10-K on 11/23/2016
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At September 30, 2016, the Company determined that its ownership interest in FGL met the criteria established by ASC 360 to classify it as held for sale. The following table summarizes the major categories of assets and liabilities of FGL classified as held for sale in the accompanying Consolidated Balance Sheets at September 30, 2016 and 2015:
 
September 30, 2016
 
September 30, 2015
Assets
 
 
 
Investments, including loans and receivables from affiliates
$
21,140.9

 
$
19,206.7

Cash and cash equivalents
863.9

 
501.8

Accrued investment income
213.7

 
191.2

Reinsurance recoverable
3,463.9

 
3,578.7

Deferred tax assets

 
189.1

Properties, plant and equipment, net
18.5

 
14.4

Deferred acquisition costs and value of business acquired, net
1,065.5

 
1,048.6

Other assets
335.1

 
246.0

Write-down of assets of business held for sale to fair value less cost to sell
(362.8
)
 

Total assets of business held for sale
$
26,738.7

 
$
24,976.5

Liabilities
 
 
 
Insurance reserves
$
23,944.6

 
$
22,560.1

Debt
398.8

 
295.9

Accounts payable and other current liabilities
57.0

 
43.7

Deferred tax liabilities
9.9

 

Other liabilities
689.9

 
518.8

Total liabilities of business held for sale
$
25,100.2

 
$
23,418.5

The balances included in the accompanying Consolidated Balance Sheets and in the table above reflect transactions between the businesses held for sale and businesses held for use that are expected to continue to exist after the closing of the FGL Merger. Such transactions are not eliminated to reflect the continuing operations and balances held for sale. As a result, adjustments to the carrying value of certain intercompany assets recorded by FGL, were reversed upon consolidation in the Company’s Consolidated Financial Statements.
Below is a summary of the impact of such intercompany balances in the accompanying Consolidated Balance Sheets:
 
September 30, 2016
 
September 30, 2015
Assets
 
 
 
Funds withheld receivable
$
978.8

 
$
1,058.0

Other assets
15.1

 
15.9

Assets of business held for sale
1,375.5

 
1,769.8

Total assets
$
2,369.4

 
$
2,843.7

Liabilities
 
 
 
Insurance reserves
$
1,119.5

 
$
1,226.8

Debt
63.0

 
330.7

Accounts payable and other current liabilities

 
1.6

Other liabilities

 
11.0

Liabilities of business held for sale
1,186.9

 
1,273.6

Total liabilities
$
2,369.4

 
$
2,843.7

The carrying value of the Company’s interest in FGL was higher than the fair value less cost to sell based on the sales price at September 30, 2016 and as a result, the Company recorded a write-down of assets of business held for sale of $362.8 at September 30, 2016.
In accordance with ASU 2014-08, the Company has determined that the FGL Merger Agreement represented a strategic shift for the Company and, accordingly, has presented the results of operations for FGL as discontinued operations in the accompanying Consolidated Statements of Operations.

F-33

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