Harbinger Group Inc.
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SEC Filings

PRER14A
HRG GROUP, INC. filed this Form PRER14A on 11/14/1995
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            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
 
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
 
 Quasi-reorganization
 
  In connection with the comprehensive restructuring accomplished in 1991, the
Company implemented, for accounting purposes, a "quasi-reorganization," an
elective accounting procedure that permits a company which has emerged from
previous financial difficulty to restate its accounts and establish a fresh
start in an accounting sense. After implementation of the accounting quasi-
reorganization, the Company's assets and liabilities were revalued and its
deficit in reinvested earnings was charged to capital in excess of par value.
The Company effected the accounting quasi-reorganization as of October 1, 1990.
 
 Common Stock
 
  On April 27, 1994, Zapata's stockholders approved a one-for-five reverse
stock split of Zapata's outstanding common stock (the "Common Stock") effective
May 3, 1994 which reduced the number of common shares outstanding from
approximately 158.3 million to approximately 31.7 million. The number of
authorized shares remained at 165.0 million and the par value of the Common
Stock was unchanged. All references to Common Stock, earnings per share, per
share price and average number of shares outstanding have been restated to
reflect the reverse stock split.
 
NOTE 2. DISCONTINUED OPERATIONS OF MARINE PROTEIN
 
  In July 1994, Zapata announced that it intended to separate its marine
protein operations from its energy-related businesses. Alternatives for a sale
of the marine protein operations or a spin-off of the business to the
stockholders of Zapata were considered. In September 1994, the Board of
Directors determined that the interests of Zapata's stockholders would best be
served by a sale of the marine protein operations. This determination resulted
in the consolidated financial statements being restated to present the net
assets and operating results of the marine protein operations as a discontinued
operation. Additionally, based on preliminary offers to purchase the marine
protein operations, the Company has recorded an $8.9 million after tax book
loss to reflect the estimated loss on disposition of the marine protein
operations. In the third quarter of fiscal 1995, the Company announced its
decision to retain the marine protein operations. See Note 14 of Notes to the
Consolidated Financial Statements.
 
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