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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NOTE 8 - PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment as of September 30, 2016 and 2015 consist of the following:
(in millions)
 
2016
 
2015
Land, buildings and improvements
 
$
195.8

 
$
190.9

Machinery, equipment and other
 
550.6

 
491.9

Capitalized leases
 
130.0

 
97.3

Construction in progress
 
57.7

 
51.8

Property, plant and equipment
 
934.1

 
831.9

Accumulated depreciation
 
(392.0
)
 
(324.8
)
Property, plant and equipment, net
 
$
542.1

 
$
507.1

NOTE 9 - GOODWILL AND INTANGIBLE ASSETS
Goodwill, by segment, consists of the following:
(in millions)
 
GBA
 
HHI
 
PET
 
H&G
 
GAC
 
Total
As of September 30, 2014
 
$
327.4

 
$
709.8

 
$
235.9

 
$
196.5

 
$

 
$
1,469.6

AAG acquisition
 
38.9

 

 

 

 
933.2

 
972.1

European IAMS and Eukanuba acquisition
 

 

 
4.0

 

 

 
4.0

Salix acquisition
 

 

 
71.5

 

 

 
71.5

Tell Manufacturing acquisition
 

 
7.1

 

 

 

 
7.1

Foreign currency impact
 
(17.8
)
 
(17.4
)
 
(11.8
)
 

 
(0.6
)
 
(47.6
)
As of September 30, 2015
 
348.5

 
699.5

 
299.6

 
196.5

 
932.6

 
2,476.7

Adjustments
 

 

 

 

 
3.3

 
3.3

Foreign currency impact
 
(3.4
)
 
3.3

 
0.2

 

 
(1.7
)
 
(1.6
)
As of September 30, 2016
 
$
345.1

 
$
702.8

 
$
299.8

 
$
196.5

 
$
934.2

 
$
2,478.4

The carrying value and accumulated amortization for intangible assets subject to amortization are as follows:
 
 
2016
 
2015
(in millions)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net
Customer relationships
 
$
984.8

 
$
(302.9
)
 
$
681.9

 
$
985.2

 
$
(247.4
)
 
$
737.8

Technology assets
 
237.2

 
(96.7
)
 
140.5

 
238.6

 
(78.1
)
 
160.5

Tradenames
 
165.7

 
(89.1
)
 
76.6

 
165.4

 
(73.7
)
 
91.7

Total
 
$
1,387.7

 
$
(488.7
)
 
$
899.0

 
$
1,389.2

 
$
(399.2
)
 
$
990.0

Certain trade names intangible assets have an indefinite life and are not amortized. The balance of trade names not subject to amortization was $1,473.5 million and $1,490.3 million as of September 30, 2016 and 2015. During the year ended September 30, 2016, the Company recognized $4.7 million impairment on indefinite life intangible assets due to the reduction in value over certain tradenames in response to changes in management’s strategy. There was no impairment loss on indefinite-lived trade names for the years ended September 30, 2015 or 2014.
Amortization expense from intangible assets for the years ended September 30, 2016, 2015 and 2014 was $93.9 million, $87.8 million and $81.7 million, respectively. Excluding the impact of any future acquisitions or changes in foreign currency, the Company anticipates the annual amortization expense of intangible assets for the next five fiscal years will be as follows:
(in millions)
 
Amortization
2017
 
$
91.9

2018
 
85.7

2019
 
85.4

2020
 
85.2

2021
 
81.9



S-30

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