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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The following table summarizes the impact of the effective and ineffective portions of designated hedges and the gain (loss) recognized in the Consolidated Statement of Income for the years ended September 30, 2016, 2015 and 2014:
 
 
Effective Portion
 
 
 
 
 
 
Gain (Loss)
 
Reclassified to Earnings
 
Ineffective portion
For the year ended September 30, 2016 (in millions)
 
in OCI
 
Line Item
 
Gain (Loss)
 
Line Item
 
Gain (Loss)
Interest rate swaps
 
$
(0.4
)
 
Interest expense
 
(1.9
)
 
Interest expense
 
$

Commodity swaps
 
4.5

 
Cost of goods sold
 
(3.7
)
 
Cost of goods sold
 

Net investment hedge
 
0.6

 
Net sales
 

 
Net sales
 

Foreign exchange contracts
 
(0.4
)
 
Cost of goods sold
 
(0.2
)
 
Cost of goods sold
 

Foreign exchange contracts
 
6.8

 
 
 
6.9

 
 
 

Total
 
$
11.1

 
 
 
$
1.1

 
 
 
$

 
 
 
 
 
 
 
 
 
Effective Portion
 
 
 
 
 
 
Gain (Loss)
 
Reclassified to Earnings
 
Ineffective portion
For the year ended September 30, 2015 (in millions)
 
in OCI
 
Line Item
 
Gain (Loss)
 
Line Item
 
Gain (Loss)
Interest rate swaps
 
$
(3.4
)
 
Interest expense
 
$
(1.9
)
 
Interest expense
 
$

Commodity swaps
 
(7.2
)
 
Cost of goods sold
 
(0.7
)
 
Cost of goods sold
 

Foreign exchange contracts
 
0.1

 
Net sales
 
0.1

 
Net sales
 

Foreign exchange contracts
 
21.8

 
Cost of goods sold
 
30.0

 
Cost of goods sold
 

Total
 
$
11.3

 
 
 
$
27.5

 
 
 
$

 
 
 
 
 
 
 
 
 
Effective Portion
 
 
For the year ended September 30, 2014 (in millions)
 
Gain (Loss)
 
Reclassified to Earnings
 
Ineffective portion
 
 
Interest rate swaps
 
$
(1.6
)
 
Interest expense
 
$
(0.9
)
 
Interest expense
 
$

Commodity swaps
 
1.9

 
Cost of goods sold
 
0.8

 
Cost of goods sold
 

Foreign exchange contracts
 
0.1

 
Net sales
 
0.2

 
Net sales
 

Foreign exchange contracts
 
12.7

 
Cost of goods sold
 
(2.6
)
 
Cost of goods sold
 

Total
 
$
13.1

 
 
 
$
(2.5
)
 
 
 
$

The unrealized loss on derivative contracts in Accumulated Other Comprehensive Loss expected to be recognized during the year ended September 30, 2017 is $5.9 million.
The following table summarizes the gain (loss) associated with derivative contracts not designated as hedges in the Consolidated Statements of Income for the years ended September 30, 2016, 2015 and 2014.
(in millions)
 
Line Item
 
2016
 
2015
 
2014
Commodity swaps
 
Cost of goods sold
 
$

 
$
0.1

 
$
(0.1
)
Foreign exchange contracts
 
Other non-operating expenses, net
 
3.1

 
(2.5
)
 
3.1

Total
 
 
 
$
3.1

 
$
(2.6
)
 
$
3.0

NOTE 13 - EMPLOYEE BENEFIT PLANS
Pension Benefits
The Company has various defined benefit pension plans covering some of its employees in the United States and certain employees in other countries, primarily the United Kingdom and Germany. Plans generally provide benefits of stated amounts for each year of service. The Company funds its U.S. pension plans in accordance with the requirements of the defined benefit pension plans and, where applicable, in amounts sufficient to satisfy the minimum funding requirements of applicable laws. Additionally, in compliance with the Company’s funding policy, annual contributions to non-U.S. defined benefit plans are equal to the actuarial recommendations or statutory requirements in the respective countries. The Company also sponsors or participates in a number of other non-U.S. pension arrangements, including various retirement and termination benefit plans, some of which are covered by local law or coordinated with government-sponsored plans, which are not significant in the aggregate and therefore are not included in the information presented below. The Company also has various nonqualified deferred compensation agreements with certain of its employees. Under certain of these agreements, the Company has agreed to pay certain amounts annually for the first 15 years subsequent to retirement or to a designated beneficiary upon death. It is management’s intent that life insurance contracts owned by the Company will fund these agreements. Under the remaining agreements, the Company has agreed to pay such deferred amounts in up to 15 annual installments beginning on a date specified by the employee, subsequent to retirement or disability, or to a designated beneficiary upon death.

S-37

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