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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Discussion of Consolidated Cash Flows
Summary of Consolidated Cash Flows
Presented below is a table that summarizes the cash provided or used in our continuing activities and the amount of the respective increases or decreases in cash provided or used from those continuing activities between the fiscal periods (in millions):
 
 
Fiscal Quarter
 
 
2017
 
2016
 
Increase / (Decrease)
Net change in cash due to continuing operating activities:
 
 
 
 
 
 
Consumer Products
 
$
5.8

 
$
(223.2
)
 
$
229.0

Insurance, including eliminations related to the cession between Front Street and FGL
 
36.5

 
34.6

 
1.9

Corporate and Other
 
(34.4
)
 
(32.7
)
 
(1.7
)
Net change in cash due to continuing operating activities
 
7.9

 
(221.3
)
 
229.2

Net change in cash due to continuing investing activities
 
(12.2
)
 
99.7

 
(111.9
)
Net change in cash due to continuing financing activities
 
(137.8
)
 
30.0

 
(167.8
)
Effect of exchange rate changes on cash and cash equivalents
 
(6.4
)
 
(3.1
)
 
(3.3
)
Net change in cash and cash equivalents in continuing operations
 
$
(148.5
)
 
$
(94.7
)
 
$
(53.8
)
Operating Activities
Cash provided by operating activities totaled $7.9 million for the Fiscal 2017 Quarter as compared to cash used of $221.3 million for the Fiscal 2016 Quarter. The $229.2 million increase in cash provided was primarily the result of a $229.0 million increase in cash provided by the Consumer Products segment.
The $229.0 million increase in cash provided by operating activities in the Consumer Products segment was primarily due to (i) $244.4 million incremental cash generated from the segment operations; including cash contributed by working capital, primarily from decreases of receivables and inventory due to working capital management initiatives; and (ii) decreases in cash paid for interest of $17.1 million due to a reduction in annualized interest costs, excluding a non-recurring financing cost of $5.6 million associated with a premium on redemption of the 6.375% Notes and costs for re-pricing the U.S. dollar denominated term loan facility; partially offset by (i) cash paid to Stanley Black & Decker, Inc. of $23.2 million as a non-recurring settlement of transitional operating costs subsequent to the acquisition of the hardware and home improvement business that was acquired in 2013; (ii) increased corporate expenditures of $2.6 million; (iii) an increase in cash paid for income taxes of $0.5 million; and (iv) a $0.3 million increase in cash paid for restructuring and integration related charges.
Investing Activities
Cash used in investing activities was $12.2 million for the Fiscal 2017 Quarter and was primarily related to purchases of property, plant and equipment by Spectrum Brands of $28.0 million; partially offset by cash proceeds from the net repayment of asset-based loans of $17.4 million.
Cash provided by investing activities was $99.7 million for the Fiscal 2016 Quarter and was primarily related to (i) $65.2 million of cash provided from the net repayment of asset-based loans; and (ii) $51.8 million of cash provided from sales, maturities and repayments, net of purchases, of fixed maturity securities and other investments. Partially offsetting these inflows were purchases of property, plant and equipment by Spectrum Brands of $17.4 million.
Financing Activities
Cash used in financing activities was $137.8 million for the Fiscal 2017 Quarter and was primarily related to (i) debt repayment by Spectrum Brands of $135.9 million; (ii) purchases of Spectrum Brands stock of $97.6 million; (iii) share-based award tax withholding payments of $34.9 million; (iv) cash used for payment of contractholder account withdrawals, net of account deposits of $29.6 million; (v) dividend paid by Spectrum Brands to noncontrolling interests of $9.6 million; and (vi) debt repayment at Salus of $7.8 million; partially offset by net proceeds from the Revolver Facility and other notes by Spectrum Brands of $177.2 million.
Cash provided by financing activities was $30.0 million for the Fiscal 2016 Quarter and was primarily related to the borrowing under Spectrum Brands’ Revolver Facility of $230.0 million offset by (i) repayment of debt of $87.6 million; (ii) purchases of Spectrum Brands stock of $49.6 million; (iii) cash used for the payment of contractholder account withdrawals, net of contractholder account deposits of $35.9 million; and (iv) share-based award tax withholding payments of $20.6 million.


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