Harbinger Group Inc.
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SEC Filings

HRG GROUP, INC. filed this Form 10-K on 12/21/1995
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(2) Includes Zapata's investment in Tidewater, which was sold through a series
    of transactions effected in fiscal 1995, 1994 and 1993.
(3) Includes a $29.2 million provision for oil and gas property valuation
    required as a result of low gas prices and a revision of estimated future
  The net amounts of interest expense (net of interest income), other income
and income tax expense (benefit) from continuing operations are set forth

                                                 INTEREST  OTHER      EXPENSE
               YEAR ENDED SEPTEMBER 30,          EXPENSE  INCOME     (BENEFIT)
               ------------------------          -------- -------    ---------
                                                       (IN THOUSANDS)
      <S>                                        <C>      <C>        <C>
      1995......................................  $1,789  $ 1,986(1)  $(3,179)
      1994......................................   2,983   33,161(1)     (572)
      1993......................................  12,414   23,523(1)    4,210

- --------
(1) Includes pretax gains of $4.8 million, $37.5 million and $32.9 million in
    fiscal 1995, 1994 and 1993 respectively, from sales of Tidewater, Inc.
    common stock.
  The Company's marine protein operations involve the production and sale of a
variety of protein and oil products from menhaden, a species of fish found
along the Gulf of Mexico and Atlantic coasts. Because the magnitude of the fish
catch depends on the availability of the natural resource, which is affected by
various factors beyond the Company's control, and because the prices for the
Company's products are established by worldwide supply and demand relationships
over which the Company has no control, the Company cannot predict the
profitability of this business segment in any given year.
  Fishing. The Company owns a fleet of 51 fishing vessels and 27 spotter
aircraft for use in its fishing operations and also leases aircraft where
necessary to facilitate operations. During the 1995 fishing season in the Gulf
of Mexico, where the fishing season runs from mid-April through October, the
Company operated 32 fishing vessels and 26 spotter aircraft. The fishing area
in the Gulf stretches from the south Texas coastline to the panhandle of
western Florida, with a concentration off the Louisiana and Mississippi coasts.
The fishing season on the Atlantic coast begins in early May and usually
extends into December. The Company operated 9 fishing vessels and 8 spotter
aircraft along the mid-Atlantic coast, concentrated in and around the
Chesapeake Bay.
  Menhaden usually school in large, tight clusters and are commonly found in
warm, shallow waters. Spotter aircraft locate the schools and direct the
fishing vessels to them. The principal fishing vessels are steamers, which
transport two 40-foot purse boats, each carrying several fishermen and one end
of a 1,500-foot net. The purse boats encircle the school and capture the fish
in the net. The fish are then pumped from the net into refrigerated holds of
the steamer, and then are unloaded at the Company's processing plants.
  Processing. The Company owns five processing plants--three in Louisiana, one
in Mississippi and one in Virginia--where the menhaden are processed into fish
meal, fish oil and fish solubles. The fish are unloaded from the vessels into
storage boxes and then conveyed into steam cookers. The fish are then passed
through presses to remove most of the oil and water. The solid portions of the
fish are dried and then ground into fish meal. The liquid that is produced in
the cooking and pressing operations contains oil, water, dissolved protein and
some fish solids. This liquid is decanted to remove the solids and is then put
through a centrifugal oil/water separation process. The separated fish oil is a
finished product. The separated water and protein mixture is further processed
through evaporators to remove the soluble protein, which can be sold as a
finished product or added to the solid portions of the fish for processing into
fish meal.

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