HARBINGER GROUP INC. AND SUBSIDIARIES
ADJUSTED EBITDA AND ADJUSTED OPERATING INCOME RECONCILIATIONS
(In millions)
The table below shows the adjustments made to the reported net income (loss) of the Consumer Products segment to calculate its Adjusted EBITDA (unaudited):
|
| | | | | | | | | | | | | | | | |
| | Fiscal Quarter | | Fiscal Nine Months |
Reconciliation to reported net income (loss): | | 2014 | | 2013 | | 2014 | | 2013 |
Reported net income (loss) - Consumer Products segment | | $ | 78.0 |
| | $ | 36.4 |
| | $ | 166.4 |
| | $ | (18.5 | ) |
Add back: | | | | | | | | |
Interest expense | | 47.3 |
| | 61.6 |
| | 151.7 |
| | 191.8 |
|
Income tax expense | | 20.6 |
| | 15.1 |
| | 43.8 |
| | 54.9 |
|
HHI Business inventory fair value adjustment | | — |
| | — |
| | — |
| | 31.0 |
|
Pre-acquisition earnings of HHI Business | | — |
| | — |
| | — |
| | 30.3 |
|
Restructuring and related charges | | 3.7 |
| | 13.2 |
| | 16.0 |
| | 27.7 |
|
Acquisition and integration related charges | | 2.7 |
| | 7.7 |
| | 14.5 |
| | 40.5 |
|
Venezuela devaluation | | — |
| | — |
| | — |
| | 2.0 |
|
Adjusted EBIT - Consumer Products segment | | 152.3 |
| | 134.0 |
| | 392.4 |
| | 359.7 |
|
Depreciation and amortization, net of accelerated depreciation | | | | | | | | |
Depreciation of properties | | 19.9 |
| | 16.4 |
| | 56.4 |
| | 42.6 |
|
Amortization of intangibles | | 20.5 |
| | 20.3 |
| | 61.2 |
| | 57.5 |
|
Stock-based compensation | | 9.6 |
| | 17.8 |
| | 27.5 |
| | 32.6 |
|
Adjusted EBITDA - Consumer Products segment | | $ | 202.3 |
| | $ | 188.5 |
| | $ | 537.5 |
| | $ | 492.4 |
|
The table below shows the adjustments made to the reported net loss of the Energy segment to calculate its Adjusted EBITDA (unaudited):
|
| | | | | | | | | | | | | | | | |
| | Fiscal Quarter | | Fiscal Nine Months |
Reconciliation to reported net loss: | | 2014 | | 2013 | | 2014 | | 2013 |
Reported net loss - Energy segment | | $ | 2.3 |
| | $ | 10.3 |
| | $ | (82.3 | ) | | $ | (0.1 | ) |
Interest expense | | 4.1 |
| | 4.2 |
| | 12.7 |
| | 6.2 |
|
Depreciation, amortization and depletion | | 9.1 |
| | 12.7 |
| | 30.5 |
| | 18.5 |
|
EBITDA - Energy segment | | 15.5 |
| | 27.2 |
| | (39.1 | ) | | 24.6 |
|
Accretion of discount on asset retirement obligations | | 0.5 |
| | 0.4 |
| | 1.5 |
| | 0.7 |
|
Impairment of oil and natural gas properties | | — |
| | — |
| | 81.0 |
| | — |
|
Loss on derivative financial instruments | | 2.2 |
| | (9.6 | ) | | 12.4 |
| | (0.8 | ) |
Cash settlements on derivative financial instruments | | (2.9 | ) | | (1.9 | ) | | (6.2 | ) | | (1.3 | ) |
Stock based compensation expense | | — |
| | — |
| | 0.1 |
| | — |
|
Adjusted EBITDA - Energy segment | | $ | 15.3 |
| | $ | 16.1 |
| | $ | 49.7 |
| | $ | 23.2 |
|
The table below shows the adjustments made to the reported net income of the Insurance segment to calculate its adjusted operating income (unaudited):
|
| | | | | | | | | | | | | | | | |
| | Fiscal Quarter | | Fiscal Nine Months |
Reconciliation to reported net income : | | 2014 | | 2013 | | 2014 | | 2013 |
Reported net income - Insurance segment: | | $ | 70.2 |
| | $ | 53.3 |
| | $ | 166.5 |
| | $ | 237.1 |
|
Effect of investment gains, net of offsets | | (40.7 | ) | | (13.3 | ) | | (49.3 | ) | | (134.0 | ) |
Effect of change in FIA embedded derivative discount rate, net of offsets | | 9.1 |
| | (22.4 | ) | | 5.0 |
| | (38.2 | ) |
Effect of class action litigation reserves, net of offsets | | (0.1 | ) | | — |
| | 1.0 |
| | — |
|
Adjusted operating income - Insurance segment | | $ | 38.5 |
| | $ | 17.6 |
| | $ | 123.2 |
| | $ | 64.9 |
|
