Harbinger Group Inc. -SEC Filings

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 >>

Fair Value of Derivative Instruments

The fair value of the Company’s outstanding derivative instruments in the Consolidated Statements of Financial Position are as follows:



(in millions)	Line Item	2016		2015
Derivative Assets
Commodity swaps - designated as hedge	Receivables-Other	$	2.9	$	—
Commodity swaps - designated as hedge	Deferred charges and other	—		—
Foreign exchange contracts - designated as hedge	Receivables-Other	5.5		5.2
Foreign exchange contracts - designated as hedge	Deferred charges and other	0.1		0.4
Foreign exchange contracts - not designated as hedge	Receivables-Other	0.2		0.4
Total Derivative Assets		$	8.7	$	6.0
Derivative Liabilities
Interest rate swaps - designated as hedge	Other current liabilities	$	0.7	$	1.4
Interest rate swaps - designated as hedge	Accrued interest	0.4		0.4
Interest rate swaps - designated as hedge	Other long-term liabilities	—		0.8
Commodity swaps - designated as hedge	Accounts payable	0.1		4.7
Commodity swaps - designated as hedge	Other long-term liabilities	—		0.8
Commodity swaps - not designated as hedge	Accounts payable	—		0.1
Foreign exchange contracts - designated as hedge	Accounts payable	1.7		1.5
Foreign exchange contracts - designated as hedge	Other long-term liabilities	0.1		—
Foreign exchange contracts - not designated as hedge	Accounts payable	0.2		0.1
Total Derivative Liabilities		$	3.2	$	9.8

The Company is exposed to the risk of default by the counterparties with which it transacts and generally does not require collateral or other security to support financial instruments subject to credit risk. The Company monitors counterparty credit risk on an individual basis by periodically assessing each such counterparty’s credit rating exposure. The maximum loss due to credit risk equals the fair value of the gross asset derivatives that are concentrated with certain domestic and foreign financial institution counterparties. The Company considers these exposures when measuring its credit reserve on its derivative assets, which was less than $0.1 million for the years ended September 30, 2016 and 2015.

The Company’s standard contracts do not contain credit risk related contingent features whereby the Company would be required to post additional cash collateral as a result of a credit event. However, the Company is typically required to post collateral in the normal course of business to offset its liability positions. As of September 30, 2015, there was $3.5 million of posted cash collateral related to such liability positions. As of September 30, 2016, there was no cash collateral outstanding. In addition, as of September 30, 2016 and 2015, the Company had no posted standby letters of credit related to such liability positions. The cash collateral is included in Other Receivables within the Consolidated Statements of Financial Position

S-36

<< Previous Page | Next Page >>