Harbinger Group Inc.
    Print Page | Close Window

SEC Filings

HRG GROUP, INC. filed this Form 10-Q on 08/14/1995
Entire Document
 << Previous Page | Next Page >>
                               ZAPATA CORPORATION
                         NOTES TO FINANCIAL STATEMENTS


     The condensed consolidated financial statements included herein have been
prepared by Zapata Corporation ("Zapata" or the "Company"), without audit,
pursuant to the rules and regulations of the Securities and Exchange Commission.
The financial statements reflect all adjustments that are, in the opinion of
management, necessary to fairly present such information.  All such adjustments
are of a normal recurring nature.  Although Zapata believes that the disclosures
are adequate to make the information presented not misleading, certain
information and footnote disclosures, including significant accounting policies,
normally included in financial statements prepared in accordance with generally
accepted accounting principles, have been condensed or omitted pursuant to such
rules and regulations.  It is suggested that these condensed financial
statements be read in conjunction with the financial statements and the notes
thereto included in Zapata's latest annual report on Form 10-K.

     In April 1995, Zapata adopted Statement of Financial Accounting Standards
No. 121 ("SFAS 121") "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to be Disposed Of," which established accounting standards for
the impairment of long-lived assets, certain identifiable intangibles, and
goodwill related to those assets to be held and used, and for long-lived assets
and certain identifiable intangibles to be disposed of.  As a result of adopting
SFAS 121, the Company recorded a $12.6 million pretax provision for asset
impairment to reduce its marine protein assets to their estimated fair market


     In April 1995, Zapata announced that the Company was considering the sale
of its natural gas compression operations.  In June 1995, Zapata announced that
it had entered into an agreement to sell the assets of its natural gas
compression division for $130 million to Enterra Corporation.  The agreement is
subject to the signing of a definitive agreement and certain governmental
approvals. The Company is currently negotiating the terms of the agreement,
however, no assurances can be made that this transaction will be completed.  The
Company's consolidated financial statements have been restated to reflect the
natural gas compression operations as a discontinued operation.  Summarized
results and financial position of the discontinued operations are shown below
(amounts in thousands):

                                      NINE MONTHS ENDED JUNE 30,
                                            1995      1994
                                          --------  --------
<S>                                       <C>       <C>
Financial Results
Revenues                                   $53,086  $49,874
Expenses                                    50,018   47,581
                                           -------  -------
Income before taxes                          3,068    2,293
Income tax provision                         1,308      900
                                           -------  -------
Net income  *                              $ 1,760  $ 1,393
                                           =======  =======


 << Previous Page | Next Page >>