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 components of income tax expense (benefit) were as follows:
 
 
Fiscal
 
 
2016
 
2015
 
2014
Current:
 
 
 
 
 
 
Federal
 
$
(16.0
)
 
$
(16.8
)
 
$
6.1

State
 
(1.9
)
 
0.1

 
3.5

Total current
 
(17.9
)
 
(16.7
)
 
9.6

Deferred:
 
 
 
 
 
 
Federal
 
20.8

 
(29.7
)
 
21.5

Foreign
 
0.5

 
—

 
—

State
 
(0.2
)
 
1.0

 
(1.1
)
Total deferred
 
21.1

 
(28.7
)
 
20.4

Income tax expense (benefit)
 
$
3.2

 
$
(45.4
)
 
$
30.0

The differences between income taxes expected at the U.S. federal statutory income tax rate of 35.0% and reported income tax expense (benefit) are summarized as follows:
 
 
Fiscal
 
 
2016
 
2015
 
2014
Expected income tax expense (benefit) at Federal statutory rate
 
$
8.8

 
$
(85.0
)
 
$
26.0

Valuation allowance for deferred tax assets
 
(0.2
)
 
36.5

 
2.1

Permanent items
 
0.1

 
(1.1
)
 
—

State and local income taxes, net of federal income tax benefit
 
(0.3
)
 
1.1

 
—

Foreign rate differential
 
(0.2
)
 
—

 
—

Unrecognized tax benefits
 
(1.3
)
 
—

 
—

Outside basis differences
 
(5.4
)
 
6.8

 
—

Other
 
1.7

 
(3.7
)
 
1.9

Reported income tax expense (benefit)
 
$
3.2

 
$
(45.4
)
 
$
30.0

Effective tax rate
 
12.7
%
 
18.7
%
 
40.4
%
For Fiscal 2016, the Company’s effective tax rate of 12.7% differed from the expected U.S. statutory tax rate of 35.0% and was primarily driven by current year losses related to the Company in the U.S. for which tax benefits are not more-likely-than-not to be realizable, resulting in the recording of valuation allowances.
For Fiscal 2015, the Company’s effective tax rate of 18.7% differed from the expected U.S. statutory tax rate of 35.0% and was primarily driven by the book revaluation and impairments and bad debt expense at Salus for which tax benefits are not more-likely-than-not to be realizable, resulting in the recording of valuation allowances.
For Fiscal 2014, the Company’s effective tax rate of 40.4% differed from the expected U.S. statutory tax rate of 35.0% and was primarily driven by certain impairment expenses at Salus for which tax benefits are not more-likely-than-not to be realizable, resulting in the recording of valuation allowances.

S-89
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