Harbinger Group Inc. -SEC Filings

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SEC Filings

10-Q

HRG GROUP, INC. filed this Form 10-Q on 05/05/2017

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The following table summarizes the major categories of assets and liabilities of FGL classified as held for sale in the accompanying Condensed Consolidated Balance Sheets at March 31, 2017 and September 30, 2016:



	March 31, 2017			September 30, 2016
Assets
Investments, including loans and receivables from affiliates	$	21,937.5		$	21,140.9
Cash and cash equivalents	887.4			863.9
Accrued investment income	224.5			213.7
Reinsurance recoverable	3,426.3			3,463.9
Deferred tax assets	68.0			—
Properties, plant and equipment, net	22.2			18.5
Deferred acquisition costs and value of business acquired, net	1,222.7			1,065.5
Other assets	181.0			335.1
Write-down of assets of business held for sale to fair value less cost to sell	(291.1		)	(362.8		)
Total assets of business held for sale	$	27,678.5		$	26,738.7
Liabilities
Insurance reserves	$	24,680.8		$	23,944.6
Debt	405.0			398.8
Accounts payable and other current liabilities	136.7			57.0
Deferred tax liabilities	—			9.9
Other liabilities	773.2			689.9
Total liabilities of business held for sale	$	25,995.7		$	25,100.2

In accordance with ASC 360, Property, Plant and Equipment, a long-lived asset classified as held for sale is measured at the lower of its carrying value or fair value less cost to sell at the balance sheet date. FGL’s common stock is actively traded and at March 31, 2017, the Company measured the fair value less cost to sell of its investment in FGL as the product of the closing price of FGL’s common stock (NYSE: FGL) at the balance sheet date of $27.80 and the quantity of such shares owned by the Company. At March 31, 2017, the carrying value of the Company’s interest in FGL was $291.1 higher than the fair value less cost to sell and as a result, during the six months ended March 31, 2017, the Company partially reversed the previously recorded $362.8 write-down of assets of business held for sale by $71.7.

The balances included in the accompanying Condensed Consolidated Balance Sheets and in the table above reflect transactions between the businesses held for sale and businesses held for use that are expected to continue to exist after the completion of any disposition resulting from the FGL Strategic Evaluation Process. Such transactions are not eliminated to reflect the continuing operations and balances held for sale. As a result, adjustments to the carrying value of certain intercompany assets recorded by FGL were reversed upon consolidation in the Company’s Condensed Consolidated Financial Statements.

Below is a summary of the impact of such intercompany balances in the accompanying Condensed Consolidated Balance Sheets:



	March 31, 2017		September 30, 2016
Assets
Funds withheld receivable	$	938.6	$	978.8
Other assets	14.8		15.1
Assets of business held for sale	1,310.6		1,375.5
Total assets	$	2,264.0	$	2,369.4
Liabilities
Insurance reserves	$	1,067.0	$	1,119.5
Debt	51.8		63.0
Liabilities of business held for sale	1,145.2		1,186.9
Total liabilities	$	2,264.0	$	2,369.4

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