SEC Filings
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| 10-K | |
| HRG GROUP, INC. filed this Form 10-K on 11/23/2016 | |
| Entire Document | |
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The $170.1 million increase in cash provided by operating activities in the Consumer Products segment was primarily due to the (i) incremental cash generated from the segment operations of $166.7 million due to growth in net sales, acquisitions and cost management initiatives, including cash contributed through working capital primarily from decreases of receivables and inventory through working capital management initiatives; (ii) a decrease in cash paid for interest of $12.0 million, excluding a non-recurring tender premium of $15.6 million for the redemption of 6.375% Note, from a decrease in annualized interest costs; (iii) a decrease in cash paid for income taxes, which was partially offset by (a) an increase in cash paid towards restructuring and acquisition and integration related activities of $7.1 million towards integration of previously acquired businesses; and (b) increased payments towards corporate expenditures of $3.9 million for increased compensation costs and investment in shared services. The $38.9 million decrease in cash used by the Insurance segment was primarily due to lower payments made for net reinsurance settlements related to the funds withheld accounts in Fiscal 2016 as compared to Fiscal 2015. The reduction in net payments for net reinsurance settlements to ceding companies in Fiscal 2016 was as a result of lower impairments within the associated funds withheld accounts. Cash provided by operating activities totaled $300.3 million for Fiscal 2015 compared to $476.9 million for Fiscal 2014. The $176.6 million decline was the result of (i) $140.5 million increase in cash used in our Insurance segment (consisting primarily off a $73.3 million decrease in cash provided for net withdrawals from contractholder accounts related to the cession between Front Street and FGL, which is reflected in operating cash for the Insurance segment; and an $89.7 million increase in cash used for reinsurance settlements with third parties and discontinued operations, partially offset by a $22.5 million decrease in income taxes paid); (ii) a $30.0 million decrease in dividends received from businesses classified as discontinued operations; and (iii) a $15.4 million increase in cash used by the Corporate and Other segment; offset by a $12.2 million increase in cash provided by the Consumer Products segment. Investing Activities Cash provided by investing activities was $145.9 million for Fiscal 2016 and was primarily related to (i) net repayment of asset-based loans of $177.2 million, as Salus continues to wind down its loan portfolio; (ii) $48.5 million of cash provided from sales, maturities and repayments, net of purchases, of fixed maturity securities and other investments; and (iii) $19.7 million of net proceeds from the sale of Compass. Partially offsetting these inflows were capital expenditures of $95.4 million, primarily in the Consumer Products segment. Cash used in investing activities during Fiscal 2015 was $1.0 billion primarily driven by (i) $1.3 billion used for the acquisitions of AAG, European IAMS and Eukanuba, Salix and Tell in the Consumer Products segment; and (ii) $90.6 million of capital expenditures. Partially offsetting these outflows were (i) net proceeds of $289.2 million from the repayment of asset-based loans and (ii) $81.2 million of cash provided from sales, maturities and repayments, net of purchases, of fixed maturity securities and other investments. Cash used in investing activities during Fiscal 2014 was $269.8 million primarily driven by (i) $127.6 million cash used to originate asset-based loans; (ii) $75.5 million of capital expenditures; (iii) $46.8 million of cash used for purchases, of fixed maturity securities and other investments, net of sales, maturities and repayments; and (iv) 27.3 million used for the acquisitions of Liquid Fence, FOH and CorAmerica. Financing Activities Cash used in financing activities during Fiscal 2016 was $866.6 million primarily related to (i) debt repayment by Spectrum Brands of $819.5 million, inclusive of discretionary payments on term loans of $415.5 million; (ii) debt repayment at Salus of $240.1 million; (iii) cash used for payment of contractholder account withdrawals, net of account deposits of $134.7 million; (iv) purchases of Spectrum Brands stock of $52.1 million; (v) share-based award tax withholding payments of $28.7 million; and (vi) dividend paid by Spectrum Brands to noncontrolling interests of $37.3 million, partially offset by new borrowing by Spectrum Brands under the 4.00% Notes, net of financing costs $475.7 million. Cash provided by financing activities during Fiscal 2015 was $709.4 million primarily driven by (i) proceeds from issuance of debt, net of financing costs of $3.7 billion to fund certain acquisitions, organic growth and refinance debt with lower interest rates; (ii) cash provided by contractholder account deposits, net of the payment of contractholder account withdrawals of $61.9 million; and (iii) $281.0 million of cash provided by the issuance of Spectrum Brands common stock in relation to the funding for the acquisition of AAG. Partially offsetting these cash inflows was cash used for (i) the repayment of debt, including tender and call premiums of $3.1 billion; (ii) $49.6 million used for the purchases of shares of Spectrum Brands as well as on additional interest in CorAmerica; (iii) payment of dividends by our partially owned subsidiaries to noncontrolling interest holders of $31.0 million; (iv) common stock repurchases of $22.2 million; and (v) share-based award tax withholding payments of $21.0 million. Cash used in financing activities during Fiscal 2014 was $147.0 million primarily driven by (i) repayment of debt, including tender and call premiums of $770.9 million; (ii) cash used for payment of contractholder account withdrawals, net of contractholder account deposits of $135.2 million; (iii) common stock repurchases of $65.8 million; (iv) share-based award tax withholding payments of $31.5 million; (v) payment of dividends on preferred stock of $28.6 million; and (vi) payment of dividends by our partially owned subsidiaries to noncontrolling interest holders of $26.0 million. This was offset by the proceeds 98 | |
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