Harbinger Group Inc.
    Print Page | Close Window

SEC Filings

HRG GROUP, INC. filed this Form 10-Q/A on 11/13/1995
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 value. The fair market value of the marine protein
assets was determined based upon the highest third-party competitive bid which
had been received by the Company.
  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 and reflected
these operations as discontinued operations in the Company's financial
statements as of and for the periods presented in its Form 10-Q. The sale is
subject to stockholder approval and certain governmental approvals.
  Subsequent to filing the Company's Form 10-Q for the period ended June 30,
1995, management concluded that it would seek stockholder approval, under
Delaware law, for the sale of its natural gas compression operations. As a
result of this additional condition, the criteria for reporting these
operations as discontinued as of June 30, 1995 had not been met. Therefore,
the Company's Form 10-Q as of June 30, 1995 has been amended to show the
natural gas compression operations in continuing operations. The result of
this restatement had no effect on net income or net income per share data, for
any period presented however, it did have the following effects (in

                                      THREE MONTHS ENDED   NINE MONTHS ENDED
                                           JUNE 30,            JUNE 30,
                                      -------------------  ------------------
                                        1995      1994       1995      1994
                                      --------- ---------  --------  --------
<S>                                   <C>       <C>        <C>       <C>
Income statement:
Income (loss) from continuing
  As previously reported............. $ (7,679) $ (10,681) $ (5,223) $  8,633
  As restated........................   (7,142)    (9,574)   (3,463)   10,026
                                      --------  ---------  --------  --------
Effect of correction................. $    537  $   1,107  $  1,760  $  1,393
                                      ========  =========  ========  ========
Income from discontinued operations,
 net of income taxes:
  As previously reported............. $    537  $   1,107  $  1,760  $  1,393
  As restated........................       --         --        --        --
                                      --------  ---------  --------  --------
Effect of correction................. $   (537) $  (1,107) $ (1,760) $ (1,393)
                                      ========  =========  ========  ========

                                             (Table continued on the next page)

 << Previous Page | Next Page >>