Harbinger Group Inc.
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SEC Filings

10-K
HRG GROUP, INC. filed this Form 10-K on 12/21/1995
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<PAGE>
 
                               ZAPATA CORPORATION
 
            NOTES TO CONSOLIDATED FINANCIAL STATEMENTS--(CONTINUED)
 
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES--(CONTINUED)
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. Capital in excess of par value may be
adjusted in the future as a result of the resolution of pre-quasi
reorganization liabilities.
 
 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 common shares outstanding have been restated
to reflect the reverse stock split.
 
NOTE 2. DISCONTINUED MARINE PROTEIN OPERATIONS SUBSEQUENTLY RETAINED
 
  In July 1994, Zapata announced that it intended to separate its marine
protein operations from its energy-related businesses. 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 1993 and 1992 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 received in 1994 to purchase the marine protein operations, the Company
recorded an $8.9 million after-tax book loss in fiscal 1994 to reflect the
estimated loss on disposition of the marine protein operations.
 
  On May 5, 1995, the Board of Directors decided to retain the marine protein
operations. Zapata had previously announced that an agreement to sell its
marine protein operations had been reached. However, the acquisition group
failed to close the transaction. As a result, the marine protein net assets and
results of operations and cash flows for all periods have been reclassified
from discontinued operations to continuing operations. Additionally, the $8.9
million after-tax book loss that was recorded in fiscal 1994 was reversed in
fiscal 1995.
 
  The following is a summary of certain selected financial data for the marine
protein operations for the periods presented herein in which these operations
were previously reported as a discontinued operation (amounts in millions):
 

<TABLE>
<CAPTION>
                                                                   YEARS ENDED
                                                                    SEPTEMBER
                                                                       30,
                                                                   -----------
                                                                   1994  1993
                                                                   ----- -----
      <S>                                                          <C>   <C>
      FINANCIAL RESULTS
        Revenues.................................................. $96.6 $58.6
        Expenses..................................................  94.3  59.2
                                                                   ----- -----
        Income (loss) before taxes................................   2.3   (.6)
        Income tax provision......................................   1.1   (.2)
                                                                   ----- -----
          Net income (loss) *..................................... $ 1.2 $ (.4)
                                                                   ===== =====
</TABLE>

 
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