Harbinger Group Inc.
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SEC Filings

10-Q
HRG GROUP, INC. filed this Form 10-Q on 02/07/2017
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(15) Segment Data
The Company follows the accounting guidance which establishes standards for reporting information about operating segments in interim and annual financial statements. The Company’s reportable business segments are organized in a manner that reflects how HRG’s management views those business activities. Accordingly, the Company currently operates its business in two reporting segments: (i) Consumer Products and (ii) Insurance. 
The following schedules present the Company’s segment information for the three months ended December 31, 2016 and 2015:
 
Three months ended December 31,
 
2016
 
2015
Revenues:
 
 
 
Consumer Products
$
1,211.8

 
$
1,218.8

Insurance
(28.7
)
 
(10.0
)
Intersegment adjustments and eliminations
6.2

 
(5.4
)
Consolidated segment revenues
1,189.3

 
1,203.4

Corporate and Other
0.3

 
6.0

Total revenues
$
1,189.6

 
$
1,209.4

 
 
 
 
Operating income:
 
 
 
Consumer Products
$
151.0

 
$
142.5

Insurance
(15.4
)
 
—

Intersegment adjustments and eliminations (a)
2.3

 
(19.0
)
Total segment operating income
137.9

 
123.5

Corporate and Other
(20.2
)
 
(23.7
)
Consolidated operating income
117.7

 
99.8

Interest expense
(91.7
)
 
(95.2
)
Other income (expense), net
1.4

 
(0.7
)
Income from continuing operations before income taxes
27.4

 
3.9

Income tax expense (benefit)
25.4

 
(5.6
)
Net income from continuing operations
2.0

 
9.5

Income (loss) from discontinued operations, net of tax
258.8

 
(2.5
)
Net income
260.8

 
7.0

Less: Net income attributable to noncontrolling interest
48.6

 
40.9

Net income (loss) attributable to controlling interest
$
212.2

 
$
(33.9
)
(a) For its stand-alone reporting purposes, Front Street elected, since inception, to apply the fair value option to account for its funds withheld receivables, non-funds withheld assets and future policyholder benefits reserves related to its assumed reinsurance. For the Company’s consolidated reporting, the results from Front Street’s assumed reinsurance business with FGL is reported on FGL’s historical basis. Accordingly, in order to align the Company’s consolidated reporting, we have recorded a net intersegment adjustment to operating loss of $3.2 and $17.1 for the three months ended December 31, 2016 and 2015, respectively. Upon completion of the FGL Merger, the Company’s consolidated results will reflect all reinsurance business on the fair value option.


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