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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(5) Derivative Financial Instruments
The fair value of outstanding derivatives recorded in the accompanying Consolidated Balance Sheets were as follows:
 
 
 
 
September 30,
Asset Derivatives
 
Classification
 
2016
 
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Foreign exchange contracts
 
Receivables, net
 
$
5.5

 
$
5.2

Commodity swaps
 
Receivables, net
 
2.9

 
—

Foreign exchange contracts
 
Other assets
 
0.1

 
0.4

Total asset derivatives designated as hedging instruments
 
 
 
8.5

 
5.6

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Call option receivable from FGL
 
Funds withheld receivables
 
11.3

 
5.4

Call options
 
Other assets
 
5.9

 
1.0

Foreign exchange contracts
 
Receivables, net
 
0.2

 
0.4

Total asset derivatives
 
 
 
$
25.9

 
$
12.4

 
 
 
 
September 30,
Liability Derivatives
 
Classification
 
2016
 
2015
Derivatives designated as hedging instruments:
 
 
 
 
 
 
Interest rate swaps
 
Accounts payable and other current liabilities
 
$
0.7

 
$
1.4

Interest rate swaps
 
Other liabilities
 
0.4

 
1.2

Commodity swaps
 
Accounts payable and other current liabilities
 
0.1

 
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
 
 
 
3.0

 
9.6

Derivatives not designated as hedging instruments:
 
 
 
 
 
 
Embedded derivatives in Front Street's assumed FIA business
 
Insurance reserves
 
131.2

 
142.3

Foreign exchange contracts
 
Accounts payable and other current liabilities
 
0.2

 
0.1

Foreign exchange contracts
 
Other liabilities
 
—

 
11.0

Commodity contracts
 
Accounts payable and other current liabilities
 
—

 
0.1

Total liability derivatives
 
 
 
$
134.4

 
$
163.1

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 Consolidated Balance Sheets at fair value.
The following tables summarize the impact of the effective and ineffective portions of designated hedges and the gain (loss) recognized in the accompanying Consolidated Statements of Operations for Fiscal 2016, 2015 and 2014:
Fiscal 2016
 
Classification
 
Effective Portion
 
 
 
 
Gain (Loss) in AOCI
 
Gain (Loss) reclassified to Earnings
Interest rate swaps
 
Interest expense
 
$
(0.4
)
 
$
(1.9
)
Commodity swaps
 
Cost of consumer products and other goods sold
 
4.5

 
(3.7
)
Net investment hedge
 
Other income (expense), net
 
0.6

 
—

Foreign exchange contracts
 
Net consumer and other product sales
 
(0.4
)
 
(0.2
)
Foreign exchange contracts
 
Cost of consumer products and other goods sold
 
6.8

 
6.9

 
 
 
 
$
11.1

 
$
1.1


F-36
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