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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(11) Shareholder’s Equity
Accumulated Other Comprehensive Income
The cumulative amounts of the components of accumulated other comprehensive income reflected in the accompanying Consolidated Statements of Changes in Shareholder’s Equity, as of September 30, 2016, 2015 and 2014, were as follows:
 
 
Unrealized Investment Gains, net
 
Non-credit Related Other-than-temporary
Impairments
 
Total
Cumulative components at September 30, 2016:
 
 
 
 
 
 
Gross amounts (after reclassification adjustments)
 
$
940.5

 
$
(2.4
)
 
$
938.1

Intangible assets adjustments
 
(258.6
)
 
0.4

 
(258.2
)
Tax effects
 
(237.1
)
 
0.2

 
(236.9
)
Noncontrolling interest
 
(86.0
)
 

 
(86.0
)
 
 
$
358.8

 
$
(1.8
)
 
$
357.0

Cumulative components at September 30, 2015:
 
 
 
 
 
 
Gross amounts (after reclassification adjustments)
 
$
147.2

 
$
(1.0
)
 
$
146.2

Intangible assets adjustments
 
(0.3
)
 
0.4

 
0.1

Tax effects
 
(51.4
)
 
0.2

 
(51.2
)
Noncontrolling interest
 
(17.4
)
 

 
(17.4
)
 
 
$
78.1

 
$
(0.4
)
 
$
77.7

Cumulative components at September 30, 2014:
 
 
 
 
 
 
Gross amounts (after reclassification adjustments)
 
$
762.2

 
$
(1.0
)
 
$
761.2

Intangible assets adjustments
 
(220.0
)
 
0.4

 
(219.6
)
Tax effects
 
(190.1
)
 
0.2

 
(189.9
)
Noncontrolling interest
 
(68.5
)
 

 
(68.5
)
 
 
$
283.6

 
$
(0.4
)
 
$
283.2

Restricted Net Assets of Subsidiaries
FS Holdco’s equity in restricted net assets of consolidated subsidiaries was approximately $2,059.9 as of September 30, 2016 representing 221.4% of FS Holdco’s consolidated shareholder’s equity as of September 30, 2016 and consisted of net assets of FGL (inclusive of assets held for sale), which were restricted as to transfer to FS Holdco in the form of cash dividends, loans or advances under regulatory restrictions.

(12) Income Taxes
FS Holdco and its non-life subsidiaries’ operating results have historically been included in the HRG U.S. consolidated federal and state tax returns. Tax payments to the Internal Revenue Service (“IRS”) and state tax authorities are made by HRG on FS Holdco’s behalf. The provision for income taxes and current and deferred tax balances are computed under the separate return method and presented in these financial statements as if FS Holdco and its non-life insurance subsidiaries filed their own U.S. Federal and state income tax returns. These financial statements include tax losses and tax credits that may not reflect the tax positions taken by HRG. HRG does not maintain a tax sharing agreement with FS Holdco, and generally does not charge FS Holdco for any tax payments it makes; in addition, HRG does not reimburse FS Holdco for utilization of tax attributes. Because FS Holdco’s tax liabilities computed under the separate return method are not settled with HRG, the difference between any settled amounts and the computed liability under the separate return method is treated as either a deemed distribution or capital contribution. Front Street Cayman has historically filed its own U.S. Federal income tax returns.
Income tax expense (benefit) was calculated based upon the following components of income (loss) from continuing operations before income taxes:
 
 
Fiscal
 
 
2016
 
2015
 
2014
Income (loss) from continuing operations before income taxes:
 
 
 
 
 
 
United States
 
$
24.6

 
$
(242.7
)
 
$
63.0

Outside the United States
 
0.5

 
0.1

 
11.3

Total income (loss) from continuing operations before income taxes
 
$
25.1

 
$
(242.6
)
 
$
74.3


S-88

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