Harbinger Group Inc.
    Print Page | Close Window

SEC Filings

10-K
HRG GROUP, INC. filed this Form 10-K on 11/23/2016
Entire Document
 << Previous Page | Next Page >>

Further, as discussed in Note 1, Basis of Presentation and Nature of Operations, on July 1, 2016, the Company entered into the Compass Sale Agreement. The Company’s interest in Compass met all of the held for sale criteria established by ASC 360 on July 1, 2016. During the fourth quarter of Fiscal 2016, the transactions contemplated by the Compass Sale Agreement were consummated and Compass was sold to a third party. The disposal represents all of the remaining oil and gas properties that were accounted for using the full-cost method as of Fiscal 2016.
The following table summarizes the major categories of assets and liabilities of discontinued operations in the accompanying Consolidated Balance Sheets at September 30, 2015:
 
September 30, 2015
Assets
 
Cash and cash equivalents
$
34.0

Receivables, net
19.1

Properties, including oil and natural gas properties, net
288.9

Other assets
1.1

Total assets of discontinued operations
$
343.1

Liabilities
 
Debt
$
325.9

Accounts payable and other current liabilities
33.6

Other liabilities
39.1

Total liabilities of discontinued operations
$
398.6

In accordance with ASU 2014-08, the Company has determined that the Compass Sale represented a strategic shift for the Company and, accordingly, has presented the results of operations for Compass as discontinued operations in the accompanying Consolidated Statements of Operations.
The following table summarizes the components of “Net (loss) income from discontinued operations” in the accompanying Consolidated Statements of Operations at Fiscal 2016, 2015 and 2014. Prior to obtaining control of Compass on October 31, 2014, the Company consolidated its 74.4% proportionate share of the operations of the equity method investment in Compass, using a gross presentation. Fiscal 2016 includes results of Compass’ operation through August 23, 2016, the date of the Compass Sale.
 
 
Fiscal
 
 
2016
 
2015
 
2014
Revenues:
 
 
 
 
 
 
Oil and natural gas revenues
 
$
40.2

 
$
107.4

 
$
147.0

 
 
 
 
 
 
 
Operating costs and expenses:
 
 
 
 
 
 
Oil and natural gas direct operating costs
 
38.2

 
85.9

 
69.6

Selling, acquisition, operating and general expenses
 
22.8

 
62.0

 
50.0

Impairments and bad debt expense
 
93.2

 
485.1

 
81.0

Total operating costs and expenses
 
154.2

 
633.0

 
200.6

Operating loss
 
(114.0
)
 
(525.6
)
 
(53.6
)
Interest expense
 
(5.9
)
 
(9.9
)
 
(7.7
)
Gain upon gaining control of equity method investment
 

 
141.2

 

Gain on sale of oil and gas properties
 
105.6

 

 

Other income (loss), net
 
1.5

 
25.7

 
(6.4
)
Gain on disposal
 
53.6

 

 

Net income (loss)
 
40.8

 
(368.6
)
 
(67.7
)
Less: net income (loss) attributable to noncontrolling interest
 
0.1

 
(1.1
)
 

Net income (loss) attributable to common and participating preferred stockholders
 
$
40.7

 
$
(367.5
)
 
$
(67.7
)



F-35

 << Previous Page | Next Page >>