Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-35210 | |
Entity Registrant Name | HC2 HOLDINGS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 54-1708481 | |
Entity Address, Address Line One | 450 Park Avenue | |
Entity Address, Address Line Two | 29th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10022 | |
City Area Code | 212 | |
Local Phone Number | 235-2690 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | HCHC | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001006837 | |
Current Fiscal Year End Date | --12-31 | |
Shares outstanding (in shares) | 47,353,275 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement [Abstract] | ||||
Revenue | $ 317.2 | $ 349.3 | $ 1,000 | $ 1,112.3 |
Life, accident and health earned premiums, net | 28.6 | 28.9 | 86.8 | 88.7 |
Net investment income | 46.7 | 51.2 | 147.1 | 152.6 |
Net realized and unrealized gains (losses) on investments | 0.8 | (1.9) | (18.8) | 2.1 |
Net revenue | 393.3 | 427.5 | 1,215.1 | 1,355.7 |
Operating expenses | ||||
Cost of revenue | 278.7 | 301.3 | 886.9 | 976.4 |
Policy benefits, changes in reserves, and commissions | 59.6 | 66.1 | 195 | 166.8 |
Selling, general and administrative | 45.2 | 50.7 | 145.6 | 143.8 |
Depreciation and amortization | 2.4 | 2.2 | 4.1 | 3.7 |
Other operating income (expense) | 9.5 | (0.3) | 7.5 | (1.7) |
Total operating expenses | 395.4 | 420 | 1,239.1 | 1,289 |
(Loss) income from operations | (2.1) | 7.5 | (24) | 66.7 |
Interest expense | (19.7) | (20.1) | (62.4) | (58) |
Loss on early extinguishment or restructuring of debt | (4.2) | 0 | (13.4) | 0 |
Loss from equity investees | (1.3) | (1.3) | (4) | 0 |
Gain on bargain purchase | 0 | 0 | 0 | 1.1 |
Other income (loss) | 7.3 | 6.1 | 74.1 | 4.7 |
(Loss) income from continuing operations before income taxes | (20) | (7.8) | (29.7) | 14.5 |
Income tax expense | (1.6) | (1.1) | (4.4) | (6.2) |
(Loss) income from continuing operations | (21.6) | (8.9) | (34.1) | 8.3 |
Less: Loss from discontinued operations, net of tax | 0 | 0.6 | (60) | (13.7) |
Net loss | (21.6) | (8.3) | (94.1) | (5.4) |
Net loss attributable to noncontrolling interest and redeemable noncontrolling interest | 4.3 | 1.2 | 6.8 | 4.9 |
Net loss attributable to HC2 Holdings, Inc. | (17.3) | (7.1) | (87.3) | (0.5) |
Less: Preferred dividends, deemed dividends and repurchase gains | 0.4 | 0.4 | 1.2 | (0.4) |
Net loss attributable to common stock and participating preferred stockholders | $ (17.7) | $ (7.5) | $ (88.5) | $ (0.1) |
(Loss) income per share - continuing operations | ||||
Net (loss) income attributable to continuing operations - basic (in usd per share) | $ (0.38) | $ (0.16) | $ (0.94) | $ 0.28 |
Net (loss) income attributable to continuing operations - diluted (in usd per share) | (0.38) | (0.16) | (0.94) | 0.23 |
Loss per share - discontinued operations | ||||
Basic (in usd per share) | 0 | 0 | (0.95) | (0.28) |
Diluted (in usd per share) | 0 | 0 | (0.95) | (0.21) |
(Loss) income per share - Net (loss) income attributable to participating securities | ||||
Basic (in usd per share) | (0.38) | (0.16) | (1.89) | 0 |
Diluted (in usd per share) | $ (0.38) | $ (0.16) | $ (1.89) | $ 0.02 |
Weighted average common shares outstanding: | ||||
Basic (in shares) | 46.9 | 45.7 | 46.7 | 45.4 |
Diluted (in shares) | 46.9 | 45.7 | 46.7 | 60.1 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | Feb. 28, 2020 | May 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Loss on sale of subsidiary | $ 0 | $ 0 | $ (39.3) | $ 0 | ||
Marine Services | ||||||
Loss on sale of subsidiary | $ (39.3) | $ 31.8 | $ (39.3) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (21.6) | $ (8.3) | $ (94.1) | $ (5.4) |
Other comprehensive income | ||||
Foreign currency translation adjustment | (0.5) | (2.7) | 3.5 | (2.5) |
Unrealized gains (losses) on available-for-sale securities | 65 | 82.4 | 72.8 | 312 |
Dispositions | 0 | 0 | 22.1 | 0 |
Other comprehensive income | 64.5 | 79.7 | 98.4 | 309.5 |
Comprehensive income | 42.9 | 71.4 | 4.3 | 304.1 |
Comprehensive (loss) income attributable to noncontrolling interests and redeemable noncontrolling interests | (4.6) | 1.9 | 2.7 | 5.5 |
Comprehensive income attributable to HC2 Holdings, Inc. | $ 38.3 | $ 73.3 | $ 7 | $ 309.6 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Investments [Abstract] | ||
Fixed maturity securities, available-for-sale at fair value | $ 4,295.2 | $ 4,028.9 |
Equity securities | 74.2 | 92.5 |
Mortgage loans | 121.1 | 183.5 |
Policy loans | 18.2 | 19.1 |
Other invested assets | 60.7 | 68.1 |
Total investments | 4,569.4 | 4,392.1 |
Cash and cash equivalents | 163.6 | 228.8 |
Accounts receivable, net | 252.3 | 311.8 |
Recoverable from reinsurers | 961.4 | 953.7 |
Deferred tax asset | 1.8 | 2.7 |
Property, plant and equipment, net | 213.8 | 223.7 |
Goodwill | 112.7 | 112.5 |
Intangibles, net | 202.2 | 221.7 |
Assets held for sale | 5.6 | 323.3 |
Other assets | 205.6 | 188 |
Total assets | 6,688.4 | 6,958.3 |
Liabilities, temporary equity and stockholders’ equity | ||
Life, accident and health reserves | 4,622.9 | 4,567.1 |
Annuity reserves | 230.9 | 236.4 |
Value of business acquired | 205 | 221.1 |
Accounts payable and other current liabilities | 298.6 | 306.2 |
Deferred tax liability | 113.2 | 83.7 |
Debt obligations | 646.4 | 773.6 |
Liabilities held for sale | 0.1 | 153.9 |
Other liabilities | 135.7 | 151.1 |
Total liabilities | 6,252.8 | 6,493.1 |
Commitments and contingencies | ||
Temporary equity | ||
Preferred stock | 15.9 | 10.3 |
Redeemable noncontrolling interest | 7 | 11.3 |
Total temporary equity | 22.9 | 21.6 |
Stockholders’ equity | ||
Common stock | 0 | 0 |
Additional paid-in capital | 293.6 | 281.1 |
Treasury stock, at cost: 1,109,751 and 742,824 shares at September 30, 2020 and December 31, 2019, respectively | (4.2) | (3.3) |
Accumulated deficit | (184) | (96.7) |
Accumulated other comprehensive income | 266.4 | 168.7 |
Total HC2 Holdings, Inc. stockholders’ equity | 371.8 | 349.8 |
Noncontrolling interest | 40.9 | 93.8 |
Total stockholders’ equity | 412.7 | 443.6 |
Total liabilities, temporary equity and stockholders’ equity | $ 6,688.4 | $ 6,958.3 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock (in shares) | 80,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 48,413,438 | 46,810,676 |
Common stock, shares outstanding (in shares) | 47,303,687 | 46,067,852 |
Treasury stock (in shares) | 1,109,751 | 742,824 |
Condensed Consolidated Statem_4
Condensed Consolidated Statement of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | Total HC2 Stockholders' Equity | Total HC2 Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Non- controlling Interest | Non- controlling InterestCumulative Effect, Period of Adoption, Adjustment | Temporary Equity | Temporary EquityCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 31, 2018 | 44.9 | |||||||||||||
Beginning balance at Dec. 31, 2018 | $ 193.7 | $ (5) | $ 260.5 | $ (2.6) | $ (57.2) | $ (4.3) | $ (112.6) | $ 88.1 | $ (4.3) | $ 105.6 | $ (0.7) | $ 28.3 | $ (0.1) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Share-based compensation | 6.7 | 6.7 | 6.7 | |||||||||||
Fair value adjustment of redeemable noncontrolling interest | (0.9) | (0.9) | (0.9) | 0.9 | ||||||||||
Taxes paid in lieu of shares issued for share-based compensation (in shares) | (0.2) | |||||||||||||
Taxes paid in lieu of shares issued for share-based compensation | (0.6) | (0.6) | (0.6) | |||||||||||
Preferred stock dividend | (0.7) | (0.7) | (0.7) | |||||||||||
Issuance of common stock (in shares) | 1.2 | |||||||||||||
Issuance of common stock | 0 | |||||||||||||
Purchase of preferred stock by subsidiary | 1.7 | 1.7 | 1.7 | (10) | ||||||||||
Transactions with noncontrolling interests | 2.2 | 6 | 0 | 6 | (3.8) | 3.2 | ||||||||
Other | (0.7) | (0.7) | (0.7) | |||||||||||
Net Income (loss) | (4.5) | (0.5) | (0.5) | (4) | ||||||||||
Net loss | (5.4) | (0.9) | ||||||||||||
Other comprehensive income (loss) | 309.5 | 310 | 310 | (0.5) | (0.1) | |||||||||
Ending balance (in shares) at Sep. 30, 2019 | 45.9 | |||||||||||||
Ending balance at Sep. 30, 2019 | 501.4 | 272.6 | (3.2) | (62) | 197.4 | 404.8 | 96.6 | 21.3 | ||||||
Beginning balance (in shares) at Jun. 30, 2019 | 45.8 | |||||||||||||
Beginning balance at Jun. 30, 2019 | 430.8 | 270.9 | (3.2) | (54.9) | 117.1 | 329.9 | 100.9 | 20.6 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Share-based compensation | 2 | 2 | 2 | |||||||||||
Fair value adjustment of redeemable noncontrolling interest | (1.1) | (1.1) | (1.1) | 1.1 | ||||||||||
Preferred stock dividend | (0.2) | (0.2) | (0.2) | |||||||||||
Issuance of common stock (in shares) | 0.1 | |||||||||||||
Issuance of common stock | 0 | |||||||||||||
Transactions with noncontrolling interests | (1.6) | 1.3 | 1.3 | (2.9) | 0.1 | |||||||||
Other | (0.3) | (0.3) | (0.3) | |||||||||||
Net Income (loss) | (7.9) | (7.1) | (7.1) | (0.8) | ||||||||||
Net loss | (8.3) | (0.4) | ||||||||||||
Other comprehensive income (loss) | 79.7 | 80.3 | 80.3 | (0.6) | (0.1) | |||||||||
Ending balance (in shares) at Sep. 30, 2019 | 45.9 | |||||||||||||
Ending balance at Sep. 30, 2019 | 501.4 | 272.6 | (3.2) | (62) | 197.4 | 404.8 | 96.6 | 21.3 | ||||||
Beginning balance (in shares) at Dec. 31, 2019 | 46.1 | |||||||||||||
Beginning balance at Dec. 31, 2019 | 443.6 | 281.1 | (3.3) | (96.7) | 168.7 | 349.8 | 93.8 | 21.6 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Share-based compensation | 5.9 | 5.9 | 5.9 | |||||||||||
Fair value adjustment of redeemable noncontrolling interest | $ (1.4) | (1.4) | (1.4) | 1.4 | ||||||||||
Taxes paid in lieu of shares issued for share-based compensation (in shares) | (0.4) | |||||||||||||
Taxes paid in lieu of shares issued for share-based compensation | $ (0.9) | (0.9) | (0.9) | |||||||||||
Preferred stock dividend | (0.6) | (0.6) | (0.6) | |||||||||||
Issuance of common stock (in shares) | 1.6 | |||||||||||||
Issuance of common stock | 0 | |||||||||||||
Issuance of preferred stock | 5.6 | |||||||||||||
Transactions with noncontrolling interests | (50.4) | 6.9 | 6.9 | (57.3) | (4) | |||||||||
Other | 1.7 | 1.7 | 1.7 | |||||||||||
Net Income (loss) | (91.1) | (87.3) | (87.3) | (3.8) | ||||||||||
Net loss | (94.1) | (3) | ||||||||||||
Other comprehensive income (loss) | 105.9 | 97.7 | 97.7 | 8.2 | 1.3 | |||||||||
Ending balance (in shares) at Sep. 30, 2020 | 47.3 | |||||||||||||
Ending balance at Sep. 30, 2020 | 412.7 | 293.6 | (4.2) | (184) | 266.4 | 371.8 | 40.9 | 22.9 | ||||||
Beginning balance (in shares) at Jun. 30, 2020 | 46.6 | |||||||||||||
Beginning balance at Jun. 30, 2020 | 365.2 | 288.5 | (4.2) | (166.7) | 201.7 | 319.3 | 45.9 | 18.7 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Share-based compensation | 3 | 3 | 3 | |||||||||||
Fair value adjustment of redeemable noncontrolling interest | (0.2) | (0.2) | (0.2) | 0.2 | ||||||||||
Preferred stock dividend | (0.2) | (0.2) | (0.2) | |||||||||||
Issuance of common stock (in shares) | 0.7 | |||||||||||||
Issuance of common stock | 0 | |||||||||||||
Issuance of preferred stock | 5.6 | |||||||||||||
Transactions with noncontrolling interests | (1.2) | 0.8 | 0.8 | (2) | 0 | |||||||||
Other | 1.7 | 1.7 | 1.7 | |||||||||||
Net Income (loss) | (20.1) | (17.3) | (17.3) | (2.8) | ||||||||||
Net loss | (21.6) | (1.5) | ||||||||||||
Other comprehensive income (loss) | 64.5 | 64.7 | 64.7 | (0.2) | (0.1) | |||||||||
Ending balance (in shares) at Sep. 30, 2020 | 47.3 | |||||||||||||
Ending balance at Sep. 30, 2020 | $ 412.7 | $ 293.6 | $ (4.2) | $ (184) | $ 266.4 | $ 371.8 | $ 40.9 | $ 22.9 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Net Cash Provided by (Used in) Operating Activities [Abstract] | ||
Net loss | $ (94.1) | $ (5.4) |
Less: Loss from discontinued operations, net of tax | (60) | (13.7) |
(Loss) income from continuing operations | (34.1) | 8.3 |
Adjustments to reconcile net (loss) income to cash provided by continuing operating activities | ||
Depreciation and amortization | 11 | 10.4 |
Amortization of deferred financing costs and debt discount | 11.4 | 9 |
Amortization of (discount) premium on investments | 6.1 | 6.2 |
Loss on early extinguishment or restructuring of debt | 13.4 | 0 |
Loss from equity investees | 4 | 0 |
Deferred income taxes | 12.6 | (1.9) |
Net realized and unrealized gains on investments | (58.7) | (8.7) |
Other operating activities | 24.3 | 11.8 |
Changes in assets and liabilities, net of acquisitions and disposition: | ||
Accounts receivable | 59 | 85 |
Recoverable from reinsurers | (7.8) | 7.1 |
Other assets | (10.2) | 3.1 |
Life, accident and health reserves | 56 | 24.5 |
Accounts payable and other current liabilities | 12.5 | (34.8) |
Other liabilities | (21.3) | (37.5) |
Cash provided by continuing operating activities | 78.2 | 82.5 |
Cash (used in) provided by discontinued operating activities | (0.8) | 13.2 |
Cash provided by operating activities | 77.4 | 95.7 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (16.7) | (16.5) |
Disposal of property, plant and equipment | 0.6 | 1.3 |
Purchase of investments | (759.2) | (806.4) |
Sale of investments | 539.2 | 565 |
Maturities and redemptions of investments | 78.1 | 100.1 |
Sale of equity method investments | 85.5 | 0 |
Cash received from dispositions, net | 144 | 13.5 |
Cash paid for acquisitions, net | 0 | (56.9) |
Other investing activities | 5.9 | 6.7 |
Cash provided by (used in) continuing investing activities | 77.4 | (193.2) |
Cash used in discontinued investing activities | (7) | (8.3) |
Cash provided by (used in) investing activities | 70.4 | (201.5) |
Cash flows from financing activities | ||
Proceeds from debt obligations | 58.6 | 73.5 |
Principal payments on debt obligations | (207.7) | (8.4) |
Proceeds from sale of preferred stock | 5.6 | 0 |
Redemption of preferred stock of affiliate | (9.6) | 0 |
Cash received by subsidiary to issue preferred stock | 0 | 9 |
Cash paid by subsidiary to purchase HC2 preferred stock | 0 | (8.3) |
Annuity receipts | 1.2 | 1.6 |
Annuity surrenders | (11.6) | (13.6) |
Transactions with noncontrolling interests | (53) | 3.4 |
Other financing activities | (4.9) | (3.6) |
Cash (used in) provided by continuing financing activities | (221.4) | 53.6 |
Cash (used in) provided by discontinued financing activities | (2.4) | (0.2) |
Cash (used in) provided by financing activities | (223.8) | 53.4 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | 0.7 | 0.3 |
Net change in cash, cash equivalents and restricted cash | (65.1) | (56.8) |
Cash, cash equivalents and restricted cash, beginning of period | 230.4 | 321.3 |
Cash, cash equivalents and restricted cash, end of period | $ 165.3 | $ 264.5 |
Basic and Diluted Income (Loss)
Basic and Diluted Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Income (Loss) Per Common Share | 21. Basic and Diluted (Loss) Income Per Common Share Earnings per share ("EPS") is calculated using the two-class method, which allocates earnings among common stock and participating securities to calculate EPS when an entity's capital structure includes either two or more classes of common stock or common stock and participating securities. Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities. As such, shares of any unvested restricted stock of the Company are considered participating securities. The dilutive effect of options and their equivalents (including non-vested stock issued under stock-based compensation plans), is computed using the "treasury" method as this measurement was determined to be more dilutive between the two available methods in each period. The following potential weighted common shares were excluded from diluted EPS for the nine months ended September 30, 2019 due to the antidilutive impact to diluted EPS: 2,168,454 for outstanding warrants to purchase the Company's stock, 2,088,568 for Series A Peferred Stock and Series A-2 Prefered Stock. The Company had zero dilutive common share equivalents during the three and nine months ended September 30, 2020, and three and nine months ended September 30, 2019 due to the results being a loss from continuing operations and discontinued operations, net of tax. The Company had no dilutive common shares equivalents during the three and nine months ended September 30, 2019 and the three and nine months ended September 30, 2019 due to the results of operations being a loss from continuing operations. The following table presents a reconciliation of net (loss) income used in basic and diluted EPS calculations (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Loss) income from continuing operations $ (21.6) $ (8.9) $ (34.1) $ 8.3 Income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest 4.3 1.6 (8.5) 3.8 (Loss) income from continuing operations attributable to the Company (17.3) (7.3) (42.6) 12.1 Less: Preferred dividends, deemed dividends and repurchase gains 0.4 0.4 1.2 (0.4) (Loss) income from continuing operations attributable to HC2 common stockholders (17.7) (7.7) (43.8) 12.5 Income (loss) from discontinued operations (including loss on disposal of $39.3 million) — 0.6 (60.0) (13.7) (Loss) income attributable to noncontrolling interest and redeemable noncontrolling interest — (0.4) 15.3 1.1 Income (loss) from discontinued operations, net of tax and noncontrolling interest — 0.2 (44.7) (12.6) Net (loss) income attributable to common stock and participating preferred stockholders $ (17.7) $ (7.5) $ (88.5) $ (0.1) Earnings allocable to common shares: Participating shares at end of period: Weighted-average common stock outstanding 46.9 45.7 46.7 45.4 Unvested restricted stock — — — — Preferred stock (as-converted basis) 0.3 — 0.1 — Total 47.2 45.7 46.8 45.4 Percentage of income (loss) allocated to: Common stock 99.4 % 100.0 % 99.8 % 100.0 % Unvested restricted stock — % — % — % — % Preferred stock 0.6 % — % 0.2 % — % Numerator for earnings per share, basic: Net income (loss) from continuing operations attributable to common stock, basic $ (17.6) $ (7.7) $ (43.7) $ 12.5 Net income (loss) from discontinued operations attributable to common stock, basic and diluted $ — $ 0.2 $ (44.7) $ (12.6) Net income (loss) attributable to common stock and participating preferred stockholders, basic and diluted $ (17.6) $ (7.5) $ (88.3) $ (0.1) Earnings allocable to common shares, diluted: Numerator for earnings per share, diluted Effect of assumed shares for stock options, restricted shares and convertible instruments $ — $ — $ — $ 1.6 Net income (loss) from continuing operations attributable to common stock, diluted $ (17.6) $ (7.7) $ (43.7) $ 14.1 Net income (loss) from discontinued operations attributable to common stock, diluted $ — $ 0.2 $ (44.7) $ (12.6) Net income (loss) attributable to common stock and participating preferred stockholders, diluted $ (17.6) $ (7.5) $ (88.3) $ 1.5 Denominator for basic and dilutive earnings per share: Weighted average common shares outstanding - basic 46.9 45.7 46.7 45.4 Effect of assumed shares under treasury stock method for stock options and restricted shares and if-converted method for convertible instruments — — — 14.7 Weighted average common shares outstanding - diluted 46.9 45.7 46.7 60.1 (Loss) income per share - continuing operations Basic: $ (0.38) $ (0.16) $ (0.94) $ 0.28 Diluted: $ (0.38) $ (0.16) $ (0.94) $ 0.23 Loss per share - Discontinued operations Basic: $ — $ — $ (0.95) $ (0.28) Diluted: $ — $ — $ (0.95) $ (0.21) (Loss) income per share - Net (loss) income attributable to participating security holders Basic: $ (0.38) $ (0.16) $ (1.89) $ — Diluted: $ (0.38) $ (0.16) $ (1.89) $ 0.02 |
Organization and Business
Organization and Business | 9 Months Ended |
Sep. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | 1. Organization and Business HC2 Holdings, Inc. ("HC2" and, together with its consolidated subsidiaries, the "Company", "we" and "our") is a diversified holding company which seeks to acquire and grow attractive businesses that we believe can generate long-term sustainable free cash flow and attractive returns. While the Company generally intends to acquire controlling equity interests in its operating subsidiaries, the Company may invest to a limited extent in a variety of debt instruments or noncontrolling equity interest positions. The Company’s shares of common stock trade on the New York Stock Exchange ("NYSE") under the symbol "HCHC". The Company currently has seven reportable segments based on management’s organization of the enterprise - Infrastructure, Clean Energy, Telecommunications, Insurance, Life Sciences, Spectrum, and Other, which includes businesses that do not meet the separately reportable segment thresholds. 1. Our Infrastructure segment (f/k/a Construction segment) is comprised of DBM Global Inc. ("DBMG") and its wholly-owned subsidiaries. DBMG is a fully integrated Building Information Modelling modeler, detailer, fabricator and erector of structural steel and heavy steel plate. DBMG models, details, fabricates and erects structural steel for commercial and industrial construction projects such as high- and low-rise buildings and office complexes, hotels and casinos, convention centers, sports arenas, shopping malls, hospitals, dams, bridges, mines and power plants. DBMG also fabricates trusses and girders and specializes in the fabrication and erection of large-diameter water pipe and water storage tanks. Through GrayWolf, DBMG provides services including maintenance, repair, and installation to a diverse range of end markets in order to provide high-quality outage, turnaround, and new installation services to customers. Through Aitken Manufacturing, DBMG manufactures pollution control scrubbers, tunnel liners, pressure vessels, strainers, filters, separators and a variety of customized products. The Company maintains an approximately 92% controlling interest in DBMG. 2. Our Clean Energy segment (f/k/a Energy segment) is comprised of Beyond6, Inc. (f/k/a American Natural Energy Corp. and American Natural Gas, Inc.) ("Beyond6"). Beyond6 is a premier distributor of natural gas motor fuel. Beyond6 designs, builds, owns, acquires, operates and maintains compressed natural gas fueling stations for transportation vehicles. The Company maintains an approximately 69% controlling interest in Beyond6. 3. Our Telecommunications segment is comprised of PTGi International Carrier Services, Inc. ("ICS"). ICS operates a telecommunications business including a network of direct routes and provides premium voice communication services for national telecommunications operators, mobile operators, wholesale carriers, prepaid operators, voice over internet protocol service operators and internet service providers. ICS provides a quality service via direct routes and by forming strong relationships with carefully selected partners. The Company maintains a 100% interest in ICS. 4. Our Insurance segment is comprised of Continental Insurance Group Ltd. ("CIG") and its wholly-owned subsidiary Continental General Insurance Company ("CGI"). CGI provides long-term care, life, annuity, and other accident and health coverage that help protect policy and certificate holders from the financial hardships associated with illness, injury, loss of life, or income continuation. The Company maintains a 100% interest in CIG. 5. Our Life Sciences segment is comprised of Pansend Life Sciences, LLC ("Pansend"). Pansend maintains controlling interests of approximately 80% in Genovel Orthopedics, Inc. ("Genovel"), which seeks to develop products to treat early osteoarthritis of the knee and approximately 56% in R2 Technologies, Inc. ("R2"), which develops aesthetic and medical technologies for the skin. Pansend also invests in other early stage or developmental stage healthcare companies including an approximately 47% interest in MediBeacon Inc., and an investment in Triple Ring Technologies, Inc. 6. Our Spectrum segment (f/k/a Broadcasting segment) is comprised of HC2 Broadcasting Holdings Inc. ("HC2 Broadcasting") and its subsidiaries. HC2 Broadcasting strategically acquires and operates over-the-air broadcasting stations across the United States. In addition, HC2 Broadcasting, through its wholly-owned subsidiary, HC2 Network Inc. ("Network"), operates Azteca America, a Spanish-language broadcast network offering high quality Hispanic content to a diverse demographic across the United States. The Company maintains an approximately 98% controlling interest in HC2 Broadcasting and an approximately 50% controlling interest in DTV America Corporation ("DTV") as well as approximately 10% proxy and voting rights from minority holders. 7. Our Other segment represents all other businesses or investments that do not meet the definition of a segment individually or in the aggregate. Included in the Other segment is the former Marine Services segment, which includes its holding company, Global Marine Holdings, LLC ("GMH"), in which the Company maintains approximately 73% controlling interest. GMH results include the current and prior year equity investment in Huawei Marine Networks Co., Limited (“HMN”), its 19% equity method investment with Huawei Technologies Co., Ltd., and the discontinued operations of Global Marine Systems Limited ("GMSL"). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries and all other subsidiaries over which the Company exerts control. All intercompany profits, transactions and balances have been eliminated in consolidation. As of September 30, 2020, the results of DBMG, Beyond6, ICS, CIG, Genovel, R2, HC2 Broadcasting, and GMH have been consolidated into the Company’s results based on guidance from the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" 810, Consolidation) . The remaining interests not owned by the Company are presented as a noncontrolling interest component of total equity. Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of the Company included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of such information. All such adjustments are of a normal recurring nature. Certain information and note disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to such rules and regulations. Certain prior amounts have been reclassified or combined to conform to the current year presentation. These interim financial statements should be read in conjunction with the Company’s annual Consolidated Financial Statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2019, filed with the SEC on March 16, 2020 and Form 8-K filed with the SEC on October 7, 2020. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results for any subsequent periods or the entire fiscal year ending December 31, 2020. Use of Estimates and Assumptions The preparation of the Company’s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used. Liquidity At this time, we believe that we will be able to continue to meet our liquidity requirements and fund our fixed obligations (such as debt service and operating leases) and other cash needs for our operations for at least the next twelve months from the issuance of the Condensed Consolidated Financial Statements through a combination of distributions from our subsidiaries and from raising of additional debt or equity, refinancing of certain of our indebtedness or preferred stock, other financing arrangements and/or the sale of assets and certain investments. Historically, we have chosen to reinvest cash and receivables into the growth of our various businesses, and therefore have not kept a large amount of cash on hand at the holding company level, a practice which we expect to continue in the future. The ability of HC2’s subsidiaries to make distributions to HC2 is subject to numerous factors, including restrictions contained in each subsidiary’s financing agreements, regulatory requirements, availability of sufficient funds at each subsidiary and the approval of such payment by each subsidiary’s board of directors, which must consider various factors, including general economic and business conditions, tax considerations, strategic plans, financial results and condition, expansion plans, any contractual, legal or regulatory restrictions on the payment of dividends, and such other factors each subsidiary’s board of directors considers relevant. Our ability to sell assets and certain of our investments to meet our existing financing needs may also be limited by our existing financing instruments. Although the Company believes that it will be able to raise additional equity capital, refinance indebtedness or preferred stock, enter into other financing arrangements or engage in asset sales and sales of certain investments sufficient to fund any cash needs that we are not able to satisfy with the funds expected to be provided by our subsidiaries, there can be no assurance that it will be able to do so on terms satisfactory to the Company if at all. Such financing options, if pursued, may also ultimately have the effect of negatively impacting our liquidity profile and prospects over the long-term. In addition, the sale of assets or the Company’s investments may also make the Company less attractive to potential investors or future financing partners. COVID-19 There are many uncertainties regarding the current coronavirus ("COVID-19") pandemic, and the Company is closely monitoring the continued impact of the COVID-19 pandemic on all aspects of its business, including how it will impact its customers, employees, suppliers, vendors, business partners and distribution channels. We are unable to predict the impact that COVID-19 will have on its financial position and operating results due to numerous uncertainties, however as the pandemic continues, it may have an adverse effect on the Company’s results of operations, financial condition, or liquidity for fiscal year 2020. The Company expects to continue to assess the evolving impact of the COVID-19 pandemic. Other Income (Loss) The following table provides information related to Other income (loss) (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Gain (loss) on embedded derivatives $ 6.5 $ (1.6) $ 0.8 $ 4.0 Gain on sale of equity method investments 0.1 7.9 71.2 7.9 Other income (expense), net 0.7 (0.2) 2.1 (7.2) Total $ 7.3 $ 6.1 $ 74.1 $ 4.7 Statement of Cash Flows The following table provides supplemental cash flow information and a reconciliation of cash and cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows (in millions): September 30, 2020 2019 Cash and cash equivalents, beginning of period $ 228.8 $ 315.9 Restricted cash included in other assets 1.6 5.4 Total cash and cash equivalents and restricted cash $ 230.4 $ 321.3 Cash and cash equivalents, end of period $ 163.6 $ 263.0 Restricted cash included in other assets 1.7 1.5 Total cash and cash equivalents and restricted cash $ 165.3 $ 264.5 Supplemental cash flow information: Cash paid for interest $ 37.1 $ 35.6 Cash paid for taxes, net of (refunds) $ (12.7) $ 6.6 Non-cash investing and financing activities: Property, plant and equipment included in accounts payable $ 3.1 $ 3.0 Investments included in accounts payable $ 10.1 $ 14.6 Reclassification Certain previous year amounts have been reclassified to conform with current year presentations, including: • The recasting of GMSL's results to discontinued operations. Further, the reclassification of prior period assets and liabilities have been classified as held for sale. See Note 3. Discontinued Operations for further information; • As a result of the sale of GMSL, and in accordance with ASC 280, the Company no longer considers the results of operations and Balance Sheets of GMH and its subsidiaries as a separate segment. Formerly the Marine Services segment, these entities and the investment in HMN have been reclassified to the Other segment. See Note 20. Operating Segment and Related Information for further information; and • The recasting of prior year Earnings per share as a result of the discontinued operations noted above. This includes presenting EPS for Net (loss) income from continuing operations, Net (loss) income from discontinuing operations, and Net (loss) income. See Note 21. Basic and Diluted (Loss) Income Per Common Share for further details. Accounting Pronouncements Adopted in the Current Year The Company has implemented all new accounting pronouncements that are in effect and that may impact its Condensed Consolidated Financial Statements. The Company does not believe that there are any new accounting pronouncements issued since the filing of its 2019 Form 10-K that will have a material impact on its financial condition, results of operations or liquidity. Accounting Pronouncements to be Adopted Subsequent to December 31, 2020 Credit Loss Standard ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , was issued by FASB in June 2016. This standard is effective January 1, 2020 (with early adoption permitted), and will impact, at least to some extent, the Company's accounting and disclosure requirements for it's recoverable from reinsurers, accounts receivable, and mortgage loans. The FASB has voted to delay the effective date of ASU 2016-13 to January 1, 2023 for smaller reporting companies with a revised ASU in the fourth quarter of 2019. Currently, the Company continues to focus on developing models and procedures, with testing and refinement of models occurring in 2020 and 2021 with parallel testing to be performed in 2022. Available for sale fixed maturity securities are not in scope of the new credit loss model, but will undergo targeted improvements to the current reporting model including the establishment of a valuation allowance for credit losses versus the current direct write down approach. The Company will continue to identify any other financial assets not excluded from scope. The Company plans to use the modified retrospective method which will include a cumulative effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 for debt securities for which an other-than-temporary impairment ("OTTI") was recognized prior to the date of adoption. The Company does not currently expect to early adopt this standard and is currently evaluating the impact of this new accounting guidance on its Condensed Consolidated Financial Statements. Outlined below are key areas of change, although there are other changes not noted below: • Financial assets (or a group of financial assets) measured at amortized cost will be required to be presented at the net amount expected to be collected, with an allowance for credit losses deducted from the amortized cost basis, resulting in a net carrying value that reflects the amount the entity expects to collect on the financial asset at purchase. • Credit losses relating to available for sale fixed maturity securities will be recorded through an allowance for credit losses, rather than reductions in the amortized cost of the securities and is anticipated to increase volatility in the Company's Condensed Consolidated Statements of Operations. The allowance methodology recognizes that value may be realized either through collection of contractual cash flows or through the sale of the security. Therefore, the amount of the allowance for credit losses will be limited to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. • The Company's Condensed Consolidated Statements of Operations will reflect the measurement of expected credit losses for newly recognized financial assets as well as the expected increases or decreases (including the reversal of previously recognized losses) of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. • Disclosures will be required to include information around how the credit loss allowance was developed, further details on information currently disclosed about credit quality of financing receivables and net investments in leases, and a rollforward of the allowance for credit losses for available for sale fixed maturity securities as well as an aging analysis for securities that are past due. The Company anticipates a significant impact on its systems, processes and controls. While the requirements of the new guidance represent a material change from existing GAAP, the underlying economics of items in scope and related cash flows are unchanged. Focus areas will include, but not be limited to: (i) updating procedures to reflect new guidance requiring establishment of allowance for credit losses on available for sale debt securities; (ii) establishing procedures to review reinsurance risk to include but not limited to review of reinsurer ratings, trust agreements where applicable and historical and current performance; (iii) establishing procedures to identify and review all remaining financial assets within scope; and (iv) developing, testing, and implementing controls for newly developed procedures, as well as for additional annual reporting requirements. Long-Duration Contracts ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts , was issued by the FASB in August 2018 and is expected to have a significant impact on the Company’s Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements. The standard is effective January 1, 2021 (with early adoption permitted), and will impact, at least to some extent, the Company's accounting and disclosure requirements for it's long-duration insurance contracts. The Company does not currently expect to early adopt this standard and is currently evaluating the impact of this new accounting guidance on its Condensed Consolidated Financial Statements. Outlined below are key areas of change, although there are other changes not noted below: • Cash flow assumptions must be reviewed at least annually and updated if necessary. The impact of these updates will be reported through net income. Current accounting policy requires the liability assumptions for long-duration contracts and limited payment contracts be locked in at contract inception, unless the contracts project a loss position which would allow the liability assumptions to be unlocked so that the loss could be recognized. • The rate used to discount the liability projections is to be based on an A-rated asset with observable market inputs and duration consistent with the duration of the liabilities. The discount rate is to be updated quarterly with the impact of the change in the discount rate recognized through other comprehensive income. Current accounting policy allows the use of an expected investment yield (which is not required to be observable in the market) to discount the liability projections. • Deferred acquisition costs for long-duration contracts are to be amortized in proportion to premiums, gross profits, or gross margins and those balances must be amortized on a constant-level basis over the expected life of the contract. Current accounting policy would amortize deferred acquisition costs based on revenue and profits. The Company does not have any deferred acquisition costs but VOBA amortization will follow this new guidance. • Market risk benefits are to be measured at fair value and presented separately in the statement of financial position. Under current accounting policy benefit features that will meet the definition of market risk benefits are accounted for as embedded derivatives or insurance liabilities via the benefit ratio model. The Company does not have any benefit features that will be categorized as market risk benefits. • Disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, VOBA, as well as information about significant inputs, judgments, assumptions, and methods used in measurement are required to be disclosed. The Company anticipates that the requirement to update assumptions for liability for future policy benefits will increase volatility in the Company's Condensed Consolidated Statements of Operations while the requirement to update the discount rate will increase volatility in the Company's Condensed Consolidated Statements of Stockholders' Equity. The Company anticipates a significant impact on the systems, processes and controls. While the requirements of the new guidance represent a material change from existing GAAP, the underlying economics of the Company's Insurance segment and related cash flows are unchanged. The FASB has voted to delay the effective date of ASU 2018-12 to January 1, 2024 for smaller reporting companies with a revised ASU in the fourth quarter of 2019. On September 30, 2020, the FASB approved a one year deferral of the effective date. Currently, the Company plans to focus on developing models and procedures through 2021, with testing and refinement of models occurring in 2022 and parallel testing performed in 2023. The Company may choose one of two adoption methods for the liability for future policy benefits: (i) a modified retrospective transition method whereby the entity will apply the amendments to contracts inforce as of the beginning of the earliest period presented on the basis of their existing carrying amounts adjusted for the removal of any related amounts in AOCI or (ii) a full retrospective transition method. Focus areas will include, but not be limited to: (i) determining an appropriate upper-medium grade fixed income instrument yield source from the market; (ii) establishing appropriate aggregation of liabilities; (iii) establishing liability models for each contract grouping identified that may be quickly updated to reflect current inforce listing and new discount rates on a quarterly basis; (iv) establishing appropriate best estimate assumptions with no provision for adverse deviation; (v) establishing procedures for annual review of assumptions including tracking of actual experience for enhanced reporting requirements; (vi) establishing new VOBA amortization that will align with new guidance for DAC amortization; and (vii) developing, testing, and implementing controls for newly developed procedures, as well as for additional annual reporting requirements. Subsequent Events ASC 855, Subsequent Events requires the Company to evaluate events that occur after the balance sheet date as of which the financial statements are issued, and to determine whether adjustments to or additional disclosures in the financial statements are necessary. See Note 22. Subsequent Events for the summary of the subsequent events. |
Discontinued Operations
Discontinued Operations | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations The sale of GMSL closed on February 28, 2020. As a result of the sale, the results of GMSL and transaction related expenses directly attributable to the sale were reported as discontinued operations. Summarized operating results of the discontinued operations are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net revenue $ — $ 48.2 $ 17.3 $ 130.0 Cost of revenue — 35.7 18.2 99.5 Selling, general and administrative — 3.7 13.7 15.6 Depreciation and amortization — 6.4 3.8 19.4 Other operating expenses — 0.3 — 0.1 Loss from operations — 2.1 (18.4) (4.6) Interest expense — (3.9) (3.6) (11.3) Loss on sale of subsidiary — — (39.3) — (Loss) income from equity investees — 1.6 0.5 1.5 Other income — 0.7 0.9 0.7 Pre-tax loss from discontinued operations — 0.5 (59.9) (13.7) Income tax benefit (expense) — 0.1 (0.1) — Income (loss) from discontinued operations $ — $ 0.6 $ (60.0) $ (13.7) The Company recorded a $39.3 million loss on the sale, inclusive of recognizing a $31.3 million loss from the realization of AOCI. The net proceeds from the sale of GMSL were used to repay $15.0 million under the 2019 Revolving Credit Agreement (as defined below) and redeem $76.9 million aggregate principal amount of Senior Secured Notes, plus accrued and unpaid interest since December 1, 2019 (the last regularly scheduled interest payment date). As a result of the repayment of $15.0 million 2019 Revolving Credit Agreement, the Company allocated the following interest and the amortization of deferred financing costs for the three and nine months ended September 30, 2020 and 2019 associated with the principal prepayment from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statement of Operations: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest expense $ — $ 0.3 $ 0.2 $ 0.5 Amortization of deferred financing costs and original issuance discount $ — $ 0.1 $ 0.1 $ 0.2 As a result of the mandatory redemption of $76.9 million on the Senior Secured Notes, the Company allocated the following pro-rata interest and amortization of deferred financing costs and original issuance discount for the three and nine months ended September 30, 2020 and 2019, from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest expense $ — $ 2.2 $ 2.2 $ 6.6 Amortization of deferred financing costs and original issuance discount $ — $ 0.2 $ 0.2 $ 0.7 Summarized assets and liabilities of the discontinued operations are as follows (in millions): December 31, 2019 Assets Other invested assets $ 16.9 Cash and cash equivalents 10.2 Accounts receivable, net 26.0 Property, plant and equipment, net 182.1 Goodwill 14.3 Intangibles, net 5.3 Other assets 68.5 Total assets held for sale $ 323.3 Liabilities Accounts payable and other current liabilities $ 33.4 Debt obligations 65.6 Pension Liability 18.8 Other liabilities 36.1 Total liabilities held for sale $ 153.9 |
Revenue
Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 4. Revenue Revenue from contracts with customers consist of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenue (1) Infrastructure $ 160.8 $ 168.4 $ 509.6 $ 556.2 Clean Energy 10.3 8.7 31.0 19.3 Telecommunications 136.4 162.2 430.1 507.0 Spectrum 9.7 10.0 29.3 29.8 Total revenue $ 317.2 $ 349.3 $ 1,000.0 $ 1,112.3 (1) The Insurance segment does not have revenues in scope of ASC 606. Accounts receivables, net from contracts with customers consist of the following (in millions): September 30, December 31, 2020 2019 Accounts receivables with customers Infrastructure $ 170.4 $ 199.2 Clean Energy 15.0 31.1 Telecommunications 50.7 51.9 Spectrum 6.8 8.5 Total accounts receivables with customers $ 242.9 $ 290.7 Infrastructure Segment The following table disaggregates DBMG's revenue by market (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Commercial $ 48.2 $ 50.6 $ 165.0 $ 162.9 Convention 1.2 9.7 5.0 66.8 Healthcare 7.9 12.1 20.6 34.5 Industrial 52.2 63.1 170.6 179.6 Transportation 18.2 14.4 58.0 48.8 Leisure 8.2 10.8 35.5 37.2 Other 24.8 7.5 54.2 26.0 Total revenue from contracts with customers 160.7 168.2 508.9 555.8 Other revenue 0.1 0.2 0.7 0.4 Total Infrastructure segment revenue $ 160.8 $ 168.4 $ 509.6 $ 556.2 Contract assets and contract liabilities consisted of the following (in millions): September 30, December 31, 2020 2019 Contract assets $ 48.2 $ 50.6 Contract liabilities $ (60.3) $ (50.6) The change in contract assets is a result of the recording of $22.2 million of costs in excess of billings driven by new commercial projects, offset by $24.6 million of costs in excess of billings transferred to receivables from contract assets recognized at the beginning of the period. The change in contract liabilities is a result of periodic billing in excess of costs of $50.0 million driven largely by new commercial projects, offset by revenue recognized that was included in the contract liability balance at the beginning of the period in the amount of $40.3 million. The transaction price allocated to remaining unsatisfied performance obligations consisted of the following (in millions): Within one year Within five years Total Commercial $ 156.7 $ 25.0 $ 181.7 Convention 24.5 2.0 26.5 Healthcare 39.7 — 39.7 Industrial 47.3 — 47.3 Transportation 27.1 — 27.1 Leisure 14.7 — 14.7 Other 82.6 3.0 85.6 Remaining unsatisfied performance obligations $ 392.6 $ 30.0 $ 422.6 DBMG includes an additional $13.3 million in its backlog that is not included in the remaining unsatisfied performance obligations noted above. This backlog represents commitments under master service agreements that are estimated amounts of work to be performed based on customer communications, historic experience and knowledge of our customers' intentions. Clean Energy Segment The following table disaggregates Beyond6's revenue by type (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Volume-related $ 8.7 $ 8.5 $ 25.7 $ 18.5 Maintenance services — — — 0.1 Total revenue from contracts with customers 8.7 8.5 25.7 18.6 Clean Energy incentives 0.4 0.1 0.6 0.5 Alternative fuel tax credit 1.2 — 3.9 — Other revenue — 0.1 0.8 0.2 Total Clean Energy segment revenue $ 10.3 $ 8.7 $ 31.0 $ 19.3 Telecommunications Segment ICS's revenues are predominantly derived from wholesale of international long distance minutes (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Termination of long distance minutes $ 136.4 $ 162.2 $ 430.1 $ 507.0 Total revenue from contracts with customers 136.4 162.2 430.1 507.0 Other revenue — — — — Total Telecommunications segment revenue $ 136.4 $ 162.2 $ 430.1 $ 507.0 Spectrum Segment The following table disaggregates the Spectrum segment's revenue by type (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Network advertising $ 4.1 $ 5.1 $ 13.1 $ 15.9 Broadcast station 4.0 3.1 11.3 8.7 Network distribution 1.0 1.1 3.0 3.8 Other 0.6 0.7 1.9 1.4 Total revenue from contracts with customers 9.7 10.0 29.3 29.8 Other revenue — — — — Total Spectrum segment revenue $ 9.7 $ 10.0 $ 29.3 $ 29.8 The transaction price allocated to remaining unsatisfied performance obligations consisted of $3.2 million, $7.0 million, and $0.2 million of network advertising, broadcasting station revenues, and other revenues, respectively, of which $5.4 million is expected to be recognized within one year and an additional $5.0 million is expected to be recognized within five years. |
Acquisitions, Depositions, and
Acquisitions, Depositions, and Deconsolidations | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisitions, Dispositions, and Deconsolidations | 5. Acquisitions, Dispositions, and Deconsolidations Other Segment Sale of GMSL On January 30, 2020, the Company announced that, through its indirect subsidiary GMH in which the Company holds an approximately 73% controlling interest, the Company entered into a definitive agreement to sell 100% of the shares of GMSL to Trafalgar AcquisitionCo, Ltd. and an affiliate of J.F. Lehman & Company, LLC. The total base consideration was $250.0 million, subject to customary purchase price adjustments, working capital adjustments, and a potential earn-out of up to $12.5 million at such time, if any, if J.F. Lehman & Company, LLC and its investment affiliates achieve a specified multiple of their invested capital. The purchase price is subject to customary potential downward or upward post-closing adjustments based on net working capital, cash, unpaid transaction expenses, indebtedness and certain of the Company’s pre-closing paid capital expenditures. The Share Purchase Agreement contains customary representations, warranties and covenants for a transaction of this nature. In connection with the closing of the transaction, the purchaser deposited (i) $1.25 million of the base price into an escrow fund for the purpose of securing certain indemnification obligations for losses payable in the first twelve months after closing and (ii) $1.91 million of the base price into an escrow fund for the purpose of securing a purchase price adjustment, if any, in favor of purchaser. Following the closing, the purchaser shall pay an amount equal to $2.4 million on the earlier of December 31, 2020 and the date on which a cash collateralized bonding facility is released. The transaction closed on February 28, 2020. GMH received approximately $144.0 million of net proceeds from the sale, of which $36.8 million and $5.5 million were paid to noncontrolling interest holders and redeemable noncontrolling interest holders, respectively. HC2 received net proceeds of approximately $100.8 million. The Company recorded a $39.3 million loss on the sale, inclusive of recognizing a $31.3 million loss from the realization of AOCI. The Company recorded an overall gain of $31.8 million from the disposition of the Marine Segment upon the sale of the portion of New Saxon’s interest in HMN that represents 30% of HMN, which closed in May 2020. See Note 3. Discontinued Operations for further details. Sale of HMN On October 30, 2019, the Company announced the sale of its stake in HMN, its 49% joint venture with Huawei Technologies Co., Ltd., to Hengtong Optic-Electric Co Ltd. The sale valued HMN at $285 million, and GMH's 49% stake, through New Saxon, at approximately $140 million. Under the terms of the Sale and Purchase Agreement, the sale of New Saxon’s 49% interest in HMN will be affected in two tranches. The sale of the portion of New Saxon’s 30% interest of HMN, closed on May 12, 2020 (the "First HMN Close"). The remaining 19% interest of HMN is retained by New Saxon and subject to a put option agreement by New Saxon, exercisable starting on the second year anniversary of the closing date of the First HMN Close at a price equal to the greater of the share price paid for the 30% interest or fair market value as of the exercisable date. In conjunction with the first tranche of the sale, the Company received $85.5 million in cash, of which $17.5 million and $2.1 million were paid to noncontrolling interest holders and redeemable noncontrolling interest holders, respectively. New Saxon recorded a $71.1 million gain, included in Other income (loss) in the Condensed Consolidated Statements of Operations. The gain recognized includes $11.3 million related to the fair value of the put option. In addition, the Company recorded a $7.2 million tax expense related to a foreign tax payment when the first tranche closed. Clean Energy Segment On June 14, 2019, Beyond6 acquired ampCNG's 20 natural gas fueling stations, located primarily in the Southeastern U.S. and Texas, for cash consideration of $41.2 million. Beyond6’s network reach expanded to over 60 stations, making it one of the largest owners and operators of compressed natural gas stations in the country. Transaction was accounted for as asset acquisition. To finance the acquisition, Beyond6 entered into a term loan with M&T bank for $28.0 million and issued preferred stock and ten four Spectrum Segment During the year ended December 31, 2019, HC2 Broadcasting acquired a series of licenses for a total consideration of $71.4 million. All transactions were accounted for as asset acquisitions. |
Investments
Investments | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | 6. Investments Fixed Maturity Securities The following tables provide information relating to investments in fixed maturity securities (in millions): September 30, 2020 Amortized Cost Unrealized Unrealized Fair Value U.S. Government and government agencies $ 7.3 $ 1.2 $ — $ 8.5 States, municipalities and political subdivisions 375.2 54.5 — 429.7 Residential mortgage-backed securities 53.4 4.7 (1.1) 57.0 Commercial mortgage-backed securities 109.2 1.4 (16.6) 94.0 Asset-backed securities 528.2 3.0 (33.9) 497.3 Corporate and other 2,847.6 415.6 (54.5) 3,208.7 Total fixed maturity securities $ 3,920.9 $ 480.4 $ (106.1) $ 4,295.2 December 31, 2019 Amortized Unrealized Unrealized Fair Value U.S. Government and government agencies $ 7.0 $ 0.7 $ — $ 7.7 States, municipalities and political subdivisions 405.4 34.7 — 440.1 Residential mortgage-backed securities 63.0 4.5 (0.6) 66.9 Commercial mortgage-backed securities 108.2 1.8 (0.6) 109.4 Asset-backed securities 592.6 2.2 (17.0) 577.8 Corporate and other 2,569.1 273.1 (15.2) 2,827.0 Total fixed maturity securities $ 3,745.3 $ 317.0 $ (33.4) $ 4,028.9 The amortized cost and fair value of fixed maturity securities available-for-sale as of September 30, 2020 are shown by contractual maturity in the table below (in millions). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset and mortgage-backed securities are shown separately in the table below, as they are not due at a single maturity date: Amortized Fair Corporate, Municipal, U.S. Government and Other securities Due in one year or less $ 44.8 $ 45.3 Due after one year through five years 266.6 276.4 Due after five years through ten years 439.6 466.3 Due after ten years 2,479.1 2,858.9 Subtotal 3,230.1 3,646.9 Mortgage-backed securities 162.6 151.0 Asset-backed securities 528.2 497.3 Total $ 3,920.9 $ 4,295.2 The tables below show the major industry types of the Company’s corporate and other fixed maturity securities (in millions): September 30, 2020 December 31, 2019 Amortized Fair % of Amortized Fair % of Finance, insurance, and real estate $ 1,013.5 $ 1,060.4 33.1 % $ 632.2 $ 674.9 23.8 % Transportation, communication and other services 677.4 757.8 23.6 % 785.7 855.2 30.3 % Manufacturing 700.6 854.9 26.6 % 728.7 825.9 29.2 % Other 456.1 535.6 16.7 % 422.5 471.0 16.7 % Total $ 2,847.6 $ 3,208.7 100.0 % $ 2,569.1 $ 2,827.0 100.0 % A portion of certain OTTI losses on fixed maturity securities is recognized in Accumulated Other Comprehensive Income ("AOCI"). For these securities the net amount represents the difference between the amortized cost of the security and the net present value of its projected future cash flows discounted at the effective interest rate implicit in the debt security prior to impairment. Any remaining difference between the fair value and amortized cost is recognized in AOCI. The Company recognized the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net realized and unrealized gains on investments $ 4.9 $ — $ 5.8 $ — Other income (expenses), net — — 0.1 — Total other-than-temporary impairments $ 4.9 $ — $ 5.9 $ — The following table presents the total unrealized losses for the 185 and 139 fixed maturity securities held by the Company as of September 30, 2020 and December 31, 2019, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (in millions): September 30, 2020 December 31, 2019 Fixed maturity securities Unrealized Losses % of Unrealized Losses % of Less than 20% $ (65.7) 62.0 % $ (32.6) 97.6 % 20% or more for less than six months (21.8) 20.5 % — — % 20% or more for six months or greater (18.6) 17.5 % (0.8) 2.4 % Total $ (106.1) 100.0 % $ (33.4) 100.0 % The determination of whether unrealized losses are "other-than-temporary" requires judgment based on subjective as well as objective factors. Factors considered and resources used by management include (i) whether the unrealized loss is credit-driven or a result of changes in market interest rates, (ii) the extent to which fair value is less than cost basis, (iii) cash flow projections received from independent sources, (iv) historical operating, balance sheet and cash flow data contained in issuer SEC filings and news releases, (v) near-term prospects for improvement in the issuer and/or its industry, (vi) third party research and communications with industry specialists, (vii) financial models and forecasts, (viii) the continuity of dividend payments, maintenance of investment grade ratings and hybrid nature of certain investments, (ix) discussions with issuer management, and (x) ability and intent to hold the investment for a period of time sufficient to allow for anticipated recovery in fair value. The Company analyzes its MBS for OTTI each quarter based upon expected future cash flows. Management estimates expected future cash flows based upon its knowledge of the MBS market, cash flow projections (which reflect loan-to-collateral values, subordination, vintage and geographic concentration) received from independent sources, implied cash flows inherent in security ratings and analysis of historical payment data. The Company believes it will recover its cost basis in the non-impaired securities with unrealized losses and that the Company has the ability to hold the securities until they recover in value. The Company neither intends to sell nor does it expect to be required to sell the securities with unrealized losses as of September 30, 2020. However, unforeseen facts and circumstances may cause the Company to sell fixed maturity and equity securities in the ordinary course of managing its portfolio to meet certain diversification, credit quality and liquidity guidelines. The following tables present the estimated fair values and gross unrealized losses for the 185 and 139 fixed maturity securities held by the Company that have estimated fair values below amortized cost as of each of September 30, 2020 and December 31, 2019, respectively. The Company does not have any OTTI losses reported in AOCI. These investments are presented by investment category and the length of time the related fair value has remained below amortized cost (in millions): September 30, 2020 Less than 12 months 12 months or greater Total Fair Value Unrealized Fair Unrealized Fair Unrealized States, municipalities and political subdivisions $ 3.6 $ — $ — $ — $ 3.6 $ — Residential mortgage-backed securities 5.3 (0.5) 5.4 (0.6) 10.7 (1.1) Commercial mortgage-backed securities 57.0 (16.6) 0.2 — 57.2 (16.6) Asset-backed securities 197.2 (10.2) 162.0 (23.7) 359.2 (33.9) Corporate and other 468.2 (29.4) 105.1 (25.1) 573.3 (54.5) Total fixed maturity securities $ 731.3 $ (56.7) $ 272.7 $ (49.4) $ 1,004.0 $ (106.1) December 31, 2019 Less than 12 months 12 months of greater Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. Government and government agencies $ 0.3 $ — $ — $ — $ 0.3 $ — States, municipalities and political subdivisions 2.0 — — — 2.0 — Residential mortgage-backed securities 2.3 — 8.2 (0.6) 10.5 (0.6) Commercial mortgage-backed securities 58.1 (0.6) 0.2 — 58.3 (0.6) Asset-backed securities 126.5 (1.5) 255.8 (15.5) 382.3 (17.0) Corporate and other 169.6 (3.7) 177.4 (11.5) 347.0 (15.2) Total fixed maturity securities $ 358.8 $ (5.8) $ 441.6 $ (27.6) $ 800.4 $ (33.4) As of September 30, 2020, investment grade fixed maturity securities (as determined by nationally recognized rating agencies) represented approximately 68.6% of the gross unrealized loss and 86.7% of the fair value. As of December 31, 2019, investment grade fixed maturity securities represented approximately 68.3% of the gross unrealized loss and 81.8% of the fair value. Certain risks are inherent in connection with fixed maturity securities, including loss upon default, price volatility in reaction to changes in interest rates, and general market factors and risks associated with reinvestment of proceeds due to prepayments or redemptions in a period of declining interest rates. Equity securities The following tables provide information relating to investments in equity securities measured at fair value (in millions): September 30, December 31, Equity securities 2020 2019 Common stock $ 4.4 $ 10.5 Perpetual preferred stock 69.8 82.0 Total equity securities $ 74.2 $ 92.5 Net investment income The major sources of net investment income were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Fixed maturity securities, available-for-sale at fair value $ 43.5 $ 45.2 $ 134.1 $ 132.5 Equity securities 0.5 1.9 2.4 6.5 Mortgage loans 2.7 3.4 11.2 10.2 Policy loans 0.3 0.3 0.9 0.9 Other invested assets (0.1) 0.8 (0.6) 3.4 Gross investment income 46.9 51.6 148.0 153.5 External investment expense (0.2) (0.4) (0.9) (0.9) Net investment income $ 46.7 $ 51.2 $ 147.1 $ 152.6 Net realized and unrealized gains (losses) on investments The major sources of net realized and unrealized gains and losses on investments were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Realized gains on fixed maturity securities $ 3.3 $ 1.4 $ 15.3 $ 6.4 Realized losses on fixed maturity securities (2.3) (2.9) (15.4) (8.0) Realized gains on equity securities — 1.4 0.2 1.8 Realized losses on equity securities (2.2) (0.1) (2.3) (1.2) Realized gains on mortgage loans 1.9 1.0 2.1 1.0 Net unrealized gains (losses) on equity securities 4.6 (1.6) (13.9) 4.2 Net unrealized gains (losses) on derivative instruments 0.4 (1.1) 1.0 (2.1) Impairment loss (4.9) — (5.8) — Net realized and unrealized gains (losses) $ 0.8 $ (1.9) $ (18.8) $ 2.1 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 7. Fair Value of Financial Instruments Assets by Hierarchy Level Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): September 30, 2020 Fair Value Measurement Using: Total Level 1 Level 2 Level 3 Assets Fixed maturity securities U.S. Government and government agencies $ 8.5 $ 5.4 $ 3.1 $ — States, municipalities and political subdivisions 429.7 — 427.7 2.0 Residential mortgage-backed securities 57.0 — 47.5 9.5 Commercial mortgage-backed securities 94.0 — 39.8 54.2 Asset-backed securities 497.3 — 29.5 467.8 Corporate and other 3,208.7 43.1 2,973.8 191.8 Total fixed maturity securities 4,295.2 48.5 3,521.4 725.3 Equity securities Common stocks 4.4 4.0 — 0.4 Perpetual preferred stocks 69.8 4.9 20.1 44.8 Total equity securities 74.2 8.9 20.1 45.2 Total assets accounted for at fair value $ 4,369.4 $ 57.4 $ 3,541.5 $ 770.5 Liabilities Embedded derivative $ 2.2 $ — $ — $ 2.2 Other 4.7 — — 4.7 Total liabilities accounted for at fair value $ 6.9 $ — $ — $ 6.9 December 31, 2019 Fair Value Measurement Using: Total Level 1 Level 2 Level 3 Assets Fixed maturity securities U.S. Government and government agencies $ 7.7 $ 4.8 $ 2.9 $ — States, municipalities and political subdivisions 440.1 — 440.1 — Residential mortgage-backed securities 66.9 — 57.7 9.2 Commercial mortgage-backed securities 109.4 — 74.8 34.6 Asset-backed securities 577.8 — 27.2 550.6 Corporate and other 2,827.0 46.5 2,669.5 111.0 Total fixed maturity securities 4,028.9 51.3 3,272.2 705.4 Equity securities Common stocks 10.5 7.1 — 3.4 Perpetual preferred stocks 82.0 5.0 22.8 54.2 Total equity securities 92.5 12.1 22.8 57.6 Total assets accounted for at fair value $ 4,121.4 $ 63.4 $ 3,295.0 $ 763.0 Liabilities Embedded Derivatives $ 3.0 $ — $ — $ 3.0 Other 4.8 — — 4.8 Total liabilities accounted for at fair value $ 7.8 $ — $ — $ 7.8 The Company reviews the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain financial assets or liabilities. Such reclassifications are reported as transfers in and out of Level 3 at the beginning fair value for the reporting period in which the changes occur. Availability of secondary market activity and consistency of pricing from third-party sources impacts the Company's ability to classify securities as Level 2 or Level 3. The Company’s assessment resulted in a net transfer into Level 3 of $76.7 million during the nine months ended September 30, 2020. The Company’s assessment resulted in a net transfer out of Level 3 of $41.6 million during the nine months ended September 30, 2019. The methods and assumptions the Company uses to estimate the fair value of assets and liabilities measured at fair value on a recurring basis are summarized below: Fixed Maturity Securities. The fair values of the Company’s publicly-traded fixed maturity securities are generally based on prices obtained from independent pricing services. Prices from pricing services are sourced from multiple vendors, and a vendor hierarchy is maintained by asset type based on historical pricing experience and vendor expertise. In some cases, the Company receives prices from multiple pricing services for each security, but ultimately uses the price from the pricing service highest in the vendor hierarchy based on the respective asset type. Consistent with the fair value hierarchy described above, securities with validated quotes from pricing services are generally reflected within Level 2, as they are primarily based on observable pricing for similar assets and/or other market observable inputs. If the Company ultimately concludes that pricing information received from the independent pricing service is not reflective of market activity, non-binding broker quotes are used, if available. If the Company concludes the values from both pricing services and brokers are not reflective of market activity, it may override the information from the pricing service or broker with an internally developed valuation, however, this occurs infrequently. Internally developed valuations or non-binding broker quotes are also used to determine fair value in circumstances where vendor pricing is not available. These estimates may use significant unobservable inputs, which reflect the Company’s assumptions about the inputs that market participants would use in pricing the asset. Pricing service overrides, internally developed valuations and non-binding broker quotes are generally based on significant unobservable inputs and are reflected as Level 3 in the valuation hierarchy. The inputs used in the valuation of corporate and government securities include, but are not limited to, standard market observable inputs which are derived from, or corroborated by, market observable data including market yield curve, duration, call provisions, observable prices and spreads for similar publicly traded or privately traded issues that incorporate the credit quality and industry sector of the issuer. For structured securities, valuation is based primarily on matrix pricing or other similar techniques using standard market inputs including spreads for actively traded securities, spreads off benchmark yields, expected prepayment speeds and volumes, current and forecasted loss severity, rating, weighted average coupon, weighted average maturity, average delinquency rates, geographic region, debt-service coverage ratios and issuance-specific information including, but not limited to: collateral type, payment terms of the underlying assets, payment priority within the tranche, structure of the security, deal performance and vintage of loans. When observable inputs are not available, the market standard valuation techniques for determining the estimated fair value of certain types of securities that trade infrequently, and therefore have little or no price transparency, rely on inputs that are significant to the estimated fair value but that are not observable in the market or cannot be derived principally from or corroborated by observable market data. These unobservable inputs are sometimes based in large part on management judgment or estimation, and cannot be supported by reference to market activity. Even though unobservable, these inputs are based on assumptions deemed appropriate given the circumstances and are believed to be consistent with what other market participants would use when pricing such securities. The fair values of private placement securities are primarily determined using a discounted cash flow model. In certain cases, these models primarily use observable inputs with a discount rate based upon the average of spread surveys collected from private market intermediaries who are active in both primary and secondary transactions, taking into account, among other factors, the credit quality and industry sector of the issuer and the reduced liquidity associated with private placements. Generally, these securities have been reflected within Level 3. For certain private fixed maturities, the discounted cash flow model may also incorporate significant unobservable inputs, which reflect the Company’s own assumptions about the inputs market participants would use in pricing the security. To the extent management determines that such unobservable inputs are not significant to the price of a security, a Level 2 classification is made. Otherwise, a Level 3 classification is used. Equity Securities. The balance consists principally of common and preferred stock of publicly and privately traded companies. The fair values of publicly traded equity securities are primarily based on quoted market prices in active markets and are classified within Level 1 in the fair value hierarchy. The fair values of preferred equity securities, for which quoted market prices are not readily available, are based on prices obtained from independent pricing services and these securities are generally classified within Level 2 in the fair value hierarchy. The fair value of common stock of privately held companies was determined using unobservable market inputs, including volatility and underlying security values and was classified as Level 3. Cash Equivalents. The balance consists of money market instruments, which are generally valued using unadjusted quoted prices in active markets that are accessible for identical assets and are primarily classified as Level 1. Various time deposits carried as cash equivalents are not measured at estimated fair value and, therefore, are excluded from the tables presented. Level 3 Measurements and Transfers The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2020 and 2019 (in millions): Total realized/unrealized gains (losses) included in Balance at June 30, 2020 Net earnings (loss) Other comp. Purchases and issuances Sales and Transfer to Level 3 Transfer out of Level 3 Balance at September 30, 2020 Assets Fixed maturity securities States, municipalities and political subdivisions $ 3.0 $ — $ (0.3) $ — $ (3.0) $ 2.3 $ — $ 2.0 Residential mortgage-backed securities 9.6 — 0.4 — (0.5) — — 9.5 Commercial mortgage-backed securities 51.1 (2.1) 5.4 — (0.2) — — 54.2 Asset-backed securities 502.8 (1.2) 12.9 0.1 (46.8) — — 467.8 Corporate and other 142.6 (2.8) 4.8 29.3 (2.4) 25.9 (5.6) 191.8 Total fixed maturity securities 709.1 (6.1) 23.2 29.4 (52.9) 28.2 (5.6) 725.3 Equity securities Common stocks 1.5 (1.1) — — — — — 0.4 Perpetual preferred stocks 43.9 — 0.9 — — — — 44.8 Total equity securities 45.4 (1.1) 0.9 — — — — 45.2 Total financial assets $ 754.5 $ (7.2) $ 24.1 $ 29.4 $ (52.9) $ 28.2 $ (5.6) $ 770.5 Total realized/unrealized (gains) losses included in Balance at June 30, 2020 Net earnings (loss) Other comp. income (loss) Purchases and issuances Sales and settlements Transfer to Level 3 Transfer out of Level 3 Balance at September 30, 2020 Liabilities Embedded derivative $ 8.7 $ (6.5) $ — $ — $ — $ — $ — $ 2.2 Other 3.9 0.8 — — — — — 4.7 Total financial liabilities $ 12.6 $ (5.7) $ — $ — $ — $ — $ — $ 6.9 Total realized/unrealized gains (losses) included in Balance at Net earnings Other comp. Purchases and Sales and Transfer to Transfer out of Balance at Assets Fixed maturity securities States, municipalities and political subdivisions $ — $ 0.2 $ 0.6 $ — $ (3.0) $ 15.2 $ (11.0) $ 2.0 Residential mortgage-backed securities 9.2 — (1.2) — (2.0) 6.8 (3.3) 9.5 Commercial mortgage-backed securities 34.6 (2.0) (8.0) — (0.4) 30.0 — 54.2 Asset-backed securities 550.6 (7.1) (14.8) 60.1 (132.5) 191.8 (180.3) 467.8 Corporate and other 111.0 (3.0) (0.7) 65.2 (6.5) 71.4 (45.6) 191.8 Total fixed maturity securities 705.4 (11.9) (24.1) 125.3 (144.4) 315.2 (240.2) 725.3 Equity securities Common stocks 3.4 (3.0) — — — — — 0.4 Perpetual preferred stocks 54.2 2.3 (13.4) — — 1.7 — 44.8 Total equity securities 57.6 (0.7) (13.4) — — 1.7 — 45.2 Total financial assets $ 763.0 $ (12.6) $ (37.5) $ 125.3 $ (144.4) $ 316.9 $ (240.2) $ 770.5 Total realized/unrealized (gains) losses included in Balance at Net earnings Other comp. Purchases and Sales and Transfer to Transfer out of Balance at Liabilities Embedded derivative $ 3.0 $ (0.8) $ — $ — $ — $ — $ — $ 2.2 Other 4.8 (0.1) — — — — — 4.7 Total financial liabilities $ 7.8 $ (0.9) $ — $ — $ — $ — $ — $ 6.9 Total realized/unrealized gains (losses) included in Balance at June 30, 2019 Net earnings (loss) Other comp. income (loss) Purchases and issuances Sales and settlements Transfer to Level 3 Transfer out of Level 3 Balance at September 30, 2019 Assets Fixed maturity securities States, municipalities and political subdivisions $ 3.7 $ — $ 0.1 $ — $ — $ — $ (3.8) $ — Residential mortgage-backed securities 12.5 — (0.1) — (0.7) — (3.5) 8.2 Commercial mortgage-backed securities 66.4 0.2 1.3 — (7.4) — — 60.5 Asset-backed securities 412.6 (0.5) (6.3) 13.6 (38.3) 14.2 (76.4) 318.9 Corporate and other 158.1 (0.4) 2.2 3.1 (10.3) — (45.8) 106.9 Total fixed maturity securities 653.3 (0.7) (2.8) 16.7 (56.7) 14.2 (129.5) 494.5 Equity securities Common stocks 4.9 (0.5) 0.1 — (0.2) — — 4.3 Perpetual preferred stocks 57.1 (0.2) (1.5) — (2.6) — — 52.8 Total equity securities 62.0 (0.7) (1.4) — (2.8) — — 57.1 Total financial assets $ 715.3 $ (1.4) $ (4.2) $ 16.7 $ (59.5) $ 14.2 $ (129.5) $ 551.6 Total realized/unrealized (gains) losses included in Balance at June 30, 2019 Net earnings (loss) Other comp. income (loss) Purchases and issuances Sales and settlements Transfer to Level 3 Transfer out of Level 3 Balance at September 30, 2019 Liabilities Embedded derivatives $ 2.9 $ 1.6 $ — $ — $ — $ — $ — $ 4.5 Other 5.4 — — — — — — 5.4 Total financial liabilities $ 8.3 $ 1.6 $ — $ — $ — $ — $ — $ 9.9 Total realized/unrealized gains (losses) included in Balance at Net earnings Other comp. Purchases and Sales and Transfer to Transfer out of Balance at Assets Fixed maturity securities States, municipalities and political subdivisions $ — $ — $ 0.1 $ — $ (0.5) $ 4.2 $ (3.8) $ — Residential mortgage-backed securities 19.0 — 0.2 — (1.5) — (9.5) 8.2 Commercial mortgage-backed securities 58.2 0.2 3.4 7.5 (7.9) — (0.9) 60.5 Asset-backed securities 478.2 (2.1) 11.7 102.1 (214.4) 19.8 (76.4) 318.9 Corporate and other 85.0 (0.5) 4.5 23.5 (27.8) 105.0 (82.8) 106.9 Total fixed maturity securities 640.4 (2.4) 19.9 133.1 (252.1) 129.0 (173.4) 494.5 Equity securities Common stocks 5.9 (0.3) 0.1 — (1.2) — (0.2) 4.3 Perpetual preferred stocks 55.3 (3.9) (1.5) 2.5 (2.6) 3.0 — 52.8 Total equity securities 61.2 (4.2) (1.4) 2.5 (3.8) 3.0 (0.2) 57.1 Total financial assets $ 701.6 $ (6.6) $ 18.5 $ 135.6 $ (255.9) $ 132.0 $ (173.6) $ 551.6 Total realized/unrealized (gains) losses included in Balance at Net earnings Other comp. Purchases and Sales and Transfer to Transfer out of Balance at Liabilities Embedded derivatives $ 8.4 $ (3.9) $ — $ — $ — $ — $ — $ 4.5 Other 3.5 (1.1) — 3.0 — — — 5.4 Total financial liabilities $ 11.9 $ (5.0) $ — $ 3.0 $ — $ — $ — $ 9.9 Internally developed fair values of Level 3 assets represent less than 1% of the Company’s total assets. Any justifiable changes in unobservable inputs used to determine internally developed fair values would not have a material impact on the Company’s financial position. Fair Value of Financial Instruments Not Measured at Fair Value The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis. The table excludes carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and other current liabilities, and other assets and liabilities approximate fair value due to relatively short periods to maturity (in millions): September 30, 2020 Fair Value Measurement Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans $ 121.1 $ 121.1 $ — $ — $ 121.1 Policy loans 18.2 18.2 — 18.2 — Other invested assets 11.3 11.3 — — 11.3 Total assets not accounted for at fair value $ 150.6 $ 150.6 $ — $ 18.2 $ 132.4 Liabilities Annuity benefits accumulated (1) $ 228.1 $ 228.4 $ — $ — $ 228.4 Long-term obligations (2) 647.5 643.7 — 643.7 — Total liabilities not accounted for at fair value $ 875.6 $ 872.1 $ — $ 643.7 $ 228.4 December 31, 2019 Fair Value Measurement Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans $ 183.5 $ 183.5 $ — $ — $ 183.5 Policy loans 19.1 19.1 — 19.1 — Total assets not accounted for at fair value $ 202.6 $ 202.6 $ — $ 19.1 $ 183.5 Liabilities Annuity benefits accumulated (1) $ 233.9 $ 231.0 $ — $ — $ 231.0 Long-term obligations (2) 772.0 768.9 — 768.9 — Total liabilities not accounted for at fair value $ 1,005.9 $ 999.9 $ — $ 768.9 $ 231.0 (1) Excludes life contingent annuities in the payout phase. (2) Excludes certain lease obligations accounted for under ASC 842, Leases . Mortgage Loans on Real Estate. The fair value of mortgage loans on real estate is estimated by discounting cash flows, both principal and interest, using current interest rates for mortgage loans with similar credit ratings and similar remaining maturities. As such, inputs include current treasury yields and spreads, which are based on the credit rating and average life of the loan, corresponding to the market spreads. The valuation of mortgage loans on real estate is considered Level 3 in the fair value hierarchy. Annuity Benefits Accumulated. The fair value of annuity benefits was determined using the surrender values of the annuities and classified as Level 3. Long-term Obligations. The fair value of the Company’s long-term obligations was determined using Bloomberg Valuation Service BVAL. The methodology combines direct market observations from contributed sources with quantitative pricing models to generate evaluated prices and classified as Level 2. |
Accounts Receivable, net
Accounts Receivable, net | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, net | 8. Accounts Receivable, net Accounts receivable, net consist of the following (in millions): September 30, December 31, 2020 2019 Contracts in progress $ 121.8 $ 177.8 Trade receivables 57.9 60.6 Unbilled retentions 64.6 53.9 Other receivables 9.4 21.0 Allowance for doubtful accounts (1.4) (1.5) Total accounts receivable, net $ 252.3 $ 311.8 |
Recoverable from Reinsurers
Recoverable from Reinsurers | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Recoverable from Reinsurers | 9. Recoverable from Reinsurers Recoverable from reinsurers consists of the following (in millions): September 30, 2020 December 31, 2019 Reinsurer A.M. Best Rating Amount % of Total Amount % of Total Munich American Reassurance Company A+ $ 362.2 37.6 % $ 347.6 36.4 % Hannover Life Reassurance Company of America A+ 314.7 32.7 % 323.3 33.9 % Loyal American Life Insurance Company A 150.0 15.6 % 147.5 15.5 % Great American Life Insurance Company A 56.7 5.9 % 56.2 5.9 % ManhattanLife Assurance Company of America B+ 46.7 4.9 % 47.0 4.9 % Other 31.1 3.3 % 32.1 3.4 % Total $ 961.4 100.0 % $ 953.7 100.0 % |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, net | 10. Property, Plant and Equipment, net Property, plant and equipment consists of the following (in millions): September 30, December 31, 2020 2019 Equipment, furniture and fixtures, and software $ 221.0 $ 212.8 Building and leasehold improvements 41.3 40.1 Land 36.5 36.8 Construction in progress 3.9 4.8 Plant and transportation equipment 4.9 5.2 307.6 299.7 Less: Accumulated depreciation 93.8 76.0 Total $ 213.8 $ 223.7 Depreciation expense was $7.2 million and $7.3 million for the three months ended September 30, 2020 and 2019, respectively. These amounts included $2.3 million and $2.2 million of depreciation expense recognized within cost of revenue for the three months ended September 30, 2020 and 2019, respectively. Depreciation expense was $21.0 million and $19.9 million for the nine months ended September 30, 2020 and 2019, respectively. These amounts included $6.9 million and $6.7 million of depreciation expense recognized within cost of revenue for the nine months ended September 30, 2020 and 2019, respectively. |
Goodwill and Intangibles, net
Goodwill and Intangibles, net | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles, net | 11. Goodwill and Intangibles, net HC2 is required to assess goodwill and indefinite-intangible assets for impairment annually, or more frequently if circumstances indicate impairment may have occurred. The Company considered the current and expected future economic and market conditions surrounding the COVID-19 pandemic and its impact on each of the reporting units. Further, the Company assessed the current market capitalization, forecasts and the amount of headroom in the 2019 impairment test. As a result of this assessment, the Company determined that a “triggering event” had occurred relative to its Spectrum segment in the first quarter of 2020 and, as required, performed a quantitative analysis, with the assistance of a third-party valuation firm, of the value of the Spectrum reporting unit and its indefinite-lived intangible assets. Based on the analysis, the Company determined that the fair value of the Spectrum reporting unit and the related indefinite-lived intangible assets continue to exceed their carrying values and were not impaired as of March 31, 2020. Determining the fair value of the Spectrum reporting unit and indefinite-lived intangible assets requires significant judgment and estimates by management, utilizing the income-approach, which utilizes several key inputs, including future cash flows consistent with management’s strategic plans, sales growth rates and a discount rate, amongst others. Estimating sales growth rates requires significant judgment by management in areas such as future economic conditions, growth rates, pricing, and consumer tastes and preferences. Given the inherent uncertainties in estimating the future impacts of the COVID-19 pandemic on global macroeconomic conditions and interest rates in general and on the Spectrum business, actual results may differ from management’s current estimates and could have an adverse impact on one or more of the assumptions used in our quantitative models related to the Spectrum reporting unit, resulting in potential impairment charges in subsequent periods. At March 31, 2020, while the fair value of the Spectrum reporting unit declined, the fair value of the Spectrum reporting unit continued to exceed its carrying value. The Company reviewed qualitative factors of potential impairment for Goodwill in the third quarter of 2020, and noted there were no triggering events which would indicate impairment may have occurred. The COVID-19 pandemic or other events could cause a further and sustained decline in the value of our reporting units or other triggering event that could cause the Company to perform a goodwill impairment test and result in an impairment charge being recorded in a future period. Goodwill The carrying amount of goodwill by segment was as follows (in millions): Infrastructure Clean Energy Spectrum Total Balance at December 31, 2019 $ 89.0 $ 2.1 $ 21.4 $ 112.5 Translation 0.2 — — 0.2 Balance at September 30, 2020 $ 89.2 $ 2.1 $ 21.4 $ 112.7 Indefinite-lived Intangible Assets The carrying amount of indefinite-lived intangible assets were as follows (in millions): September 30, December 31, 2020 2019 FCC licenses $ 129.3 $ 136.2 State licenses 2.5 2.5 Total $ 131.8 $ 138.7 During the nine months ended September 30, 2020, FCC licenses decreased $6.9 million primarily due to reclassifications to held-for-sale as a result of our Spectrum segment's execution of an Asset Purchase Agreement of an FCC license. Definite Lived Intangible Assets The gross carrying amount and accumulated amortization of amortizable intangible assets by major intangible asset class were as follows (in millions): Weighted-Average Original Useful Life September 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Trade names 13 Years $ 24.3 $ (8.2) $ 16.1 $ 24.2 $ (6.6) $ 17.6 Customer relationships 10 Years 48.6 (16.5) 32.1 48.6 (13.1) 35.5 Channel sharing arrangements 35 Years 20.2 (1.5) 18.7 27.2 (0.9) 26.3 Other 7 Years 5.9 (2.4) 3.5 5.5 (1.9) 3.6 Total $ 99.0 $ (28.6) $ 70.4 $ 105.5 $ (22.5) $ 83.0 Amortization expense for definite lived intangible assets was $2.0 million and $2.9 million for the three months ended September 30, 2020 and 2019, respectively, and $6.0 million and $8.9 million for the nine months ended September 30, 2020 and 2019, respectively. Amortization expense was included in Depreciation and amortization in our Condensed Consolidated Statements of Operations. During the three and nine months ended September 30, 2020, the Spectrum segment recorded an impairment of certain channel sharing arrangements of $6.9 million as a result of management's decision to sell certain non-core assets. Excluding the impact of any future acquisitions, dispositions or change in foreign currency, the Company estimates the annual amortization expense of amortizable intangible assets for the next five fiscal years will be as follows (in millions): 2020 $ 2.2 2021 7.5 2022 7.4 2023 7.3 2024 6.8 Thereafter 39.2 Total $ 70.4 |
Life, Accident and Health Reser
Life, Accident and Health Reserves | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Life, Accident and Health Reserves | 12. Life, Accident and Health Reserves Life, accident and health reserves consist of the following (in millions): September 30, December 31, 2020 2019 Long-term care insurance reserves $ 4,262.2 $ 4,201.6 Traditional life insurance reserves 167.1 173.4 Other accident and health insurance reserves 193.6 192.1 Total life, accident and health reserves $ 4,622.9 $ 4,567.1 The following table sets forth changes in the liability for claims for the portion of our long-term care insurance reserves (in millions): Nine Months Ended September 30, 2020 2019 Beginning balance $ 761.3 $ 738.5 Less: recoverable from reinsurers (131.0) (136.4) Beginning balance, net 630.3 602.1 Incurred related to insured events of: Current year 166.3 159.2 Prior years (34.2) (46.9) Total incurred 132.1 112.3 Paid related to insured events of: Current year (8.9) (8.4) Prior years (119.4) (106.9) Total paid (128.3) (115.3) Interest on liability for policy and contract claims 17.0 16.2 Ending balance, net 651.1 615.3 Add: recoverable from reinsurers 137.2 129.6 Ending balance $ 788.3 $ 744.9 The Insurance segment experienced favorable claims reserve developments of $34.2 million and $46.9 million for the nine months ended September 30, 2020 and 2019, respectively. There was favorable development with claim terminations and care transitions for claims incurred prior to 2020 that created the sufficiency within the nine months ended September 30, 2020. Due to favorable development in the estimates for benefits remaining during the nine months ended September 30, 2019, experience in the first three quarters of 2020 has been less favorable than in 2019, but it is too early to determine if this trend will be persistent or is the result of normal volatility in claims activity from period to period. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Current Liabilities | 13. Accounts Payable and Other Current Liabilities Accounts payable and other current liabilities consist of the following (in millions): September 30, December 31, 2020 2019 Accounts payable $ 97.7 $ 134.6 Accrued expenses and other current liabilities 67.7 75.2 Accrued interconnection costs 42.2 43.5 Accrued payroll and employee benefits 43.7 39.6 Accrued interest 26.5 11.3 Accrued income taxes 20.8 2.0 Total accounts payable and other current liabilities $ 298.6 $ 306.2 |
Debt Obligations
Debt Obligations | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt Obligations | 14. Debt Obligations Debt obligations consist of the following (in millions): September 30, December 31, 2020 2019 Infrastructure LIBOR plus 5.85% Note, due 2023 $ 73.6 $ 77.0 LIBOR plus 1.50% Line of Credit 29.5 48.9 Obligations under finance leases 0.2 0.2 Clean Energy LIBOR plus 3.0% Term Loan due in 2023 — 27.1 5.00% Term Loan due in 2022 — 11.2 4.50% Note due in 2022 — 10.2 5.00% Term Loan due in 2024 57.0 — Other, various maturity dates 0.4 2.4 Spectrum 8.50% Note due 2021 43.3 36.2 10.50% Note due 2021 42.5 42.5 Other, various maturity dates 5.3 7.9 Obligations under finance leases 0.8 1.4 Non-Operating Corporate 11.50% Senior Secured Notes, due 2021 342.4 470.0 7.50% Convertible Senior Notes, due 2022 55.0 55.0 LIBOR plus 6.75% Line of Credit 15.0 15.0 Total 665.0 805.0 Issuance discount, net and deferred financing costs (18.6) (31.4) Total debt obligations $ 646.4 $ 773.6 Aggregate finance lease and debt payments, including interest, are as follows (in millions): Finance Leases Debt Total 2020 $ 0.9 $ 42.1 $ 43.0 2021 0.1 517.0 517.1 2022 — 77.5 77.5 2023 — 79.8 79.8 2024 — 49.1 49.1 Thereafter — — — Total minimum principal & interest payments 1.0 765.5 766.5 Less: Amount representing interest — (101.5) (101.5) Total aggregate finance lease and debt payments $ 1.0 $ 664.0 $ 665.0 The interest rates on the finance leases range from approximately 2.0% to 11.5%. Clean Energy In August 2020, Clean Energy entered into a new credit facility with M&T bank. Proceeds from the loan and cash on hand were used to pay down the existing credit facilities with M&T and Pioneer as well as redeem its outstanding $14.0 million mandatorily redeemable preferred stock, included within Other liabilities on the Balance Sheets. The new credit facility is comprised of a $57.0 million term loan facility, a $2.5 million revolving line of credit and an $8.0 million delayed draw term loan ear-marked for new station builds, as well as a $10.0 million accordion feature. Clean Energy recognized $2.4 million and $1.8 million in extinguishment losses related to the pay down of the existing credit facilities with M&T and the redemption of its mandatorily redeemable preferred stock, respectively, which is included in Loss on early extinguishment or restructuring of debt in our Condensed Consolidated Statement of Operations. Spectrum In February 2020, Spectrum amended its agreement governing its privately placed note funded by MSD Partners, L.P., increasing the principal balance to $39.3 million. The proceeds were used to repay principal and interest on existing debt. In August 2020, Spectrum modified its agreement with MSD Partners, L.P. and Great American Life Insurance Company to extend the maturity on its privately placed notes to October 2021. In September 2020, Spectrum amended its agreement governing its privately placed note funded by MSD Partners, L.P., increasing the principal balance by $4.0 million to $43.3 million. The proceeds were used to repay principal and interest on existing debt and for general business purposes. Non-Operating Corporate In March 2020, with the cash proceeds from the sale of GMSL, HC2 fully repaid its $15.0 million secured revolving line of credit with MSD PCOF Partners IX, LLC (the "2019 Revolving Credit Agreement"). HC2 recognized $0.4 million in extinguishment loss related to the repayment of the 2019 Revolving Credit Agreement, which is included in Loss on early extinguishment or restructuring of debt in our Condensed Consolidated Statement of Operations. In March 2020, HC2 entered into a new $15.0 million secured revolving credit agreement (the “2020 Revolving Credit Agreement”). The 2020 Revolving Credit Agreement matures in September 2021. Loans under the 2020 Revolving Credit Agreement bear interest at a per annum rate equal to, at HC2's option, one, two or three month LIBOR plus a margin of 6.75%. In April 2020 and May 2020, HC2 drew $10.0 million and $5.0 million of the 2020 Revolving Credit Agreement, respectively. The Company used the proceeds for general corporate purposes. In March 2020, with the cash proceeds from the sale of GMSL, HC2 redeemed $76.9 million of its 11.50% senior secured notes due 2021 (the "Senior Secured Notes") at a price equal to 104.5% of the principal amount plus accrued interest through the redemption date. HC2 recognized $5.4 million in extinguishment loss related to the redemption of its Senior Secured Notes, which is included in Loss on early extinguishment or restructuring of debt in our Condensed Consolidated Statement of Operations. In June 2020, with the cash proceeds from the partial sale of New Saxon's interest in HMN, HC2 redeemed $50.6 million of its Senior Secured Notes at a price equal to 104.5% of the principal amount plus accrued interest through the redemption date. HC2 recognized $3.4 million in extinguishment loss related to the this redemption, which is included in Loss on early extinguishment or restructuring of debt in our Condensed Consolidated Statement of Operations. HC2 is in compliance with our debt covenants as of September 30, 2020. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 15. Income Taxes Income Tax Expense The Company used the Annual Effective Tax Rate ("ETR") approach of ASC 740-270, Interim Reporting, to calculate its 2020 interim tax provision. Income tax expense was $1.6 million and $1.1 million for the three months ended September 30, 2020 and 2019, respectively. The income tax expense recorded for the three months ended September 30, 2020 relates to the projected expense as calculated under ASC 740 for taxpaying entities, primarily the Insurance segment, which is no longer in a valuation allowance. Additionally, the tax benefits associated with losses generated by the HC2 Holdings, Inc. U.S. consolidated income tax return and certain other businesses have been reduced by a full valuation allowance as we do not believe it is more-likely-than-not that the losses will be utilized prior to expiration. The income tax expense recorded for the three months ended September 30, 2019 relates to the projected expense as calculated under ASC 740 for taxpaying entities offset by a benefit from the release of the valuation allowance of the Insurance segment due to an increase in current year income. Income tax expense was $4.4 million and $6.2 million for the nine months ended September 30, 2020 and 2019, respectively. The income tax expense recorded for the nine months ended September 30, 2020 primarily relates to tax expense incurred in China from the partial sale of HMN and projected expense as calculated under ASC 740 for taxpaying entities, primarily the Insurance segment, offset by a discrete tax benefit from the carryback of net operating losses at the Insurance segment as a result of the enactment of the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) in the first quarter of 2020. Additionally, the tax benefits associated with losses generated by the HC2 Holdings, Inc. U.S. consolidated income tax return and certain other businesses have been reduced by a full valuation allowance as we do not believe it is more-likely-than-not that the losses will be utilized prior to expiration. The income tax expense recorded for the nine months ended September 30, 2019 relates to the projected expense as calculated under ASC 740 for taxpaying entities offset by a benefit from the release of the valuation allowance of the Insurance segment due to an increase in current year income. Net Operating Losses At December 31, 2019, the Company had gross U.S. net operating loss carryforwards available to reduce future taxable income in the amount of $147.5 million, of which a portion is subject to annual limitation under IRC Sec. 382. Based on estimates as of September 30, 2020, the Company expects that approximately $115.8 million of the gross U.S. net operating loss carryforwards would be available to offset taxable income in 2020. This estimate may change based on changes to the quarterly forecasts and actual results reported on the 2020 U.S. tax return. Unrecognized Tax Benefits The Company follows the provision of ASC 740-10, Income Taxes, which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. The Company is subject to challenge from various taxing authorities relative to certain tax planning strategies, including certain intercompany transactions as well as regulatory taxes. Examinations The Company conducts business globally, and as a result, the Company or one or more of its subsidiaries files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. The open tax years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and expenses or the applicability of income tax credits for the relevant tax period. Given the nature of tax audits there is a risk that disputes may arise. Tax years 2002 - 2019 remain open for examination. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Future minimum purchase obligations as of December 31, 2019 were as follows (in millions): 2020 $ 86.3 2021 3.3 2022 0.2 2023 0.2 2024 0.2 Thereafter — Total obligations $ 90.2 As of December 31, 2019, undiscounted cash flows for finance and operating leases are as follows (in millions): Operating Leases Finance 2020 $ 15.1 $ 1.0 2021 13.4 0.7 2022 10.9 0.1 2023 8.8 — 2024 6.6 — Thereafter 8.2 — Total future lease payments 63.0 1.8 Less: Present values (9.3) (0.1) Total lease liability balance $ 53.7 $ 1.7 Litigation The Company is subject to claims and legal proceedings that arise in the ordinary course of business. Such matters are inherently uncertain, and there can be no guarantee that the outcome of any such matter will be decided favorably to the Company or that the resolution of any such matter will not have a material adverse effect upon the Company’s Condensed Consolidated Financial Statements. The Company does not believe that any of such pending claims and legal proceedings will have a material adverse effect on its Condensed Consolidated Financial Statements. The Company records a liability in its Condensed Consolidated Financial Statements for these matters when a loss is known or considered probable and the amount can be reasonably estimated. The Company reviews these estimates each accounting period as additional information is known and adjusts the loss provision when appropriate. If a matter is both probable to result in a liability and the amounts of loss can be reasonably estimated, the Company estimates and discloses the possible loss or range of loss to the extent necessary for its Condensed Consolidated Financial Statements not to be misleading. If the loss is not probable or cannot be reasonably estimated, a liability is not recorded in its Condensed Consolidated Financial Statements. Based on a review of the current facts and circumstances with counsel in each of the matters disclosed, management has provided for what is believed to be a reasonable estimate of loss exposure. While acknowledging the uncertainties of litigation, management believes that the ultimate outcome of litigation will not have a material effect on its financial position and will defend itself vigorously. VAT assessment On February 20, 2017, and on August 15, 2017, the Company's subsidiary, ICS, received notices from Her Majesty’s Revenue and Customs office in the U.K. (the "HMRC") indicating that it was required to pay certain Value-Added Taxes ("VAT") for the 2015 and 2016 tax years. PTGI-ICS, LTd. disagrees with HMRC’s assessments on technical and factual grounds and intends to dispute the assessed liabilities and vigorously defend its interests. We do not believe the assessment to be probable and expect to prevail based on the facts and merits of our existing VAT position. DBMG Class Action On November 6, 2014, a putative stockholder class action complaint challenging the tender offer by which HC2 acquired approximately 721,000 of the issued and outstanding common shares of DBMG was filed in the Court of Chancery of the State of Delaware (the "Court"), captioned Mark Jacobs v. Philip A. Falcone, Keith M. Hladek, Paul Voigt, Michael R. Hill, Rustin Roach, D. Ronald Yagoda, Phillip O. Elbert, HC2 Holdings, Inc., and Schuff International, Inc., Civil Action No. 10323 (the “Complaint”). On November 17, 2014, a second lawsuit was filed in the Court, captioned Arlen Diercks v. Schuff International, Inc. Philip A. Falcone, Keith M. Hladek, Paul Voigt, Michael R. Hill, Rustin Roach, D. Ronald Yagoda, Phillip O. Elbert, HC2 Holdings, Inc., Civil Action No. 10359. On February 19, 2015, the Court consolidated the actions (now designated as Schuff International, Inc. Stockholders Litigation) and appointed lead plaintiff and counsel. The initially operative complaint filed by Mark Jacobs alleged, among other things, that in connection with the tender offer, the individual members of the DBMG Board of Directors and HC2, the now-controlling stockholder of DBMG, breached their fiduciary duties to members of the plaintiff class. The Complaint also challenged a potential short-form merger based upon plaintiff’s expectation that the Company would cash out the remaining public stockholders of DBMG following the completion of the tender offer. The Complaint sought rescission of the tender offer and/or compensatory damages, as well as attorney’s fees and other relief. The defendants filed answers to the Complaint on July 30, 2015. On November 15, 2019, the parties filed definitive documentation in support of a proposed settlement of the action. On January 14, 2020, plaintiff filed an amended complaint restating and elaborating on the claims raised in the Complaint (the "Amended Complaint"). The Amended Complaint sought compensatory and rescissory damages, as well as attorney’s fees and other relief. On February 13, 2020, the Court held a settlement hearing to consider a proposed settlement and certain objections filed by two current DBMG stockholders. The Court expressed concerns about certain terms of the proposed settlement and the parties requested additional time to evaluate potential modifications to the proposed settlement. On May 8, 2020, the parties filed with the Court a revised settlement agreement for all claims relating to the Amended Complaint (the “Revised Settlement Framework”). The Revised Settlement Framework provided for a settlement payment of $35.95 per share to a fund for the benefit of the former DBMG stockholders who tendered their shares in the 2014 tender offer other than stockholders who were defendants in the action or their immediate family members, officers of DBMG, or directors or officers of HC2 (the “Tendered Stockholders”). In total, the proposed settlement payment to the Tendered Stockholders applied to approximately 568,850 shares and totaled approximately $20.45 million.The Revised Settlement Framework provided that the amount received by the Tendered Stockholders would be reduced by the per share amount of any fee award to lead plaintiff’s counsel. HC2’s D&O insurers agreed to contribute approximately $12.38 million of this approximately $20.45 million settlement payment, and DBMG has agreed to fund the remaining approximately $8.07 million either through cash on hand or borrowing from a third-party lender. The Revised Settlement Framework also provided that HC2 would fund two types of payments to the owners of the 289,902 902 shares of DBMG common stock not owned by HC2 or its affiliates (the “public DBMG stockholders”). The first payment of $2.51 per share, or approximately $0.7 million total, was intended to offset the indirect burden that the public DBMG stockholders arguably would bear (by virtue of their approximately 7.52% ownership of DBMG) from DBMG’s funding of the approximately $8.07 million portion of the settlement payment to the Tendered Stockholders. The second payment of $1.00 per share, or approximately $0.3 million total, represented consideration for a full release of claims from the public DBMG stockholders related to the action and the implementation of the Revised Settlement Framework. The Revised Settlement Framework provides that HC2 would fund payments of $3.51 per share, or approximately $1.0 million total, to the public DBMG stockholders. On August 14, 2020, the Court entered a Final Order approving the Revised Settlement Framework, awarding plaintiff’s counsel fees and expenses totaling $5,795,886 out of the funds payable to the Tendered Stockholders, and awarding one of the objector’s counsel fees and expenses totaling $50,000 out of the fee and expense award to plaintiff’s counsel. The settlement of the action became final, and the settlement releases became effective, upon the expiration of the appeal period for the Final Order on September 14, 2020. As of October 12, 2020, the settlement distribution agents had distributed the settlement funds to the eligible former and present record holders of DBMG stock. Fair Value Investments Litigation On October 1, 2020, Fair Value Investments Incorporated (“FVI”) filed a putative stockholder class action and derivative complaint in the Delaware Court of Chancery against HC2 and certain of DMBG’s current and former officers and directors, including current and former HC2 officers and directors AJ Stahl, Kenneth S. Courtis, Robert V. Leffler, Jr., Philip A. Falcone, Michael J. Sena, and Paul Voigt (together with HC2, the “HC2 Defendants”) styled Fair Value Investments Incorporated v. Roach, et al., C.A. No. 2020-0847-JTL (Del. Ch.) (the “FVI Action”). In the FVI Action, FVI alleges that HC2, in its capacity as DBMG’s controlling stockholder, and DBMG’s current and former officers and directors breached their fiduciary duties to DBMG and DBMG’s minority stockholders by approving certain transactions that allegedly provide disproportionate benefits to HC2. FVI challenges the following transactions: (i) DBMG’s payments to HC2 from 2016–present pursuant to a Tax Sharing Agreement between DBMG and HC2; (ii) DBMG acting as a guarantor or providing collateral for loans taken on by HC2; (iii) DBMG’s issuance of dividends to its common and preferred stockholders in 2017–2020; (iv) DBMG’s issuance of preferred stock to HC2 to finance DBMG’s 2018 acquisition of GrayWolf Industrial; and (v) HC2’s appointment of directors to DBMG’s board of directors by written consent in lieu of holding an annual stockholder meeting. HC2 believes the allegations in the FVI complaint are without merit, and HC2 intends to vigorously defend this litigation. Non-Operating Corporate Stockholder Litigation On April 10, 2020, a purported stockholder of the Company filed a class action complaint in the Delaware Court of Chancery captioned Tera v. HC2 Holdings Inc., et al., C.A. No. 2020-0275-JRS (the “Stockholder Litigation”). The complaint alleged that the Company’s consent revocation materials (i) contain misleading disclosures relating to the Certificates of Designation, (ii) fail to disclose that a majority of the Board may approve the nominees set forth by Percy Rockdale LLC and certain of its affiliates (collectively, “Percy Rockdale”), for purposes of the Certificates of Designation such that the Percy Rockdale nominees would be considered “Continuing Directors” (as defined in the Certificates of Designation) and (iii) inaccurately state that electing the Percy Rockdale nominees will cause a Change of Control (as defined in the Certificates of Designation) under the Certificates of Designation because it will lead to a person or group obtaining the power to elect a majority of the members of the Board. The complaint sought (i) a declaration requiring the Board to approve the Percy Rockdale nominees for purposes of the Certificates of Designation, (ii) a declaration that the Board breached its fiduciary duties by issuing misleading disclosures and (iii) an injunction requiring the Board to issue additional disclosures relating to the Change of Control provisions in the Certificates of Designation. On April 19, 2020, the plaintiff amended his complaint to allege that the Supplement to the Consent Revocation Statement, filed with the SEC on April 17, 2020, contained misleading disclosures relating to the Certificates of Designation. The amended complaint sought, among other remedies, (i) a declaration that the Board breached its fiduciary duties by issuing misleading disclosures; (ii) a declaration that, if a Change of Control could be deemed to occur under the Certificates of Designation, that such Change of Control provisions are invalid and unenforceable under Delaware law; (iii) an injunction requiring the defendants to issue corrective disclosures; and (iv) an order enjoining the Board from relying upon consent revocations received to date. On April 20, 2020, the Court of Chancery granted the plaintiff’s motion for expedited proceedings. On April 15, 2020, the Board (with Mr. Falcone recusing himself as a non-Independent Director) determined to approve the Percy Rockdale nominees, solely and specifically for the purposes of deeming them Continuing Directors pursuant to the Certificates of Designation, to avoid triggering, and to render inapplicable, such prong of the Change of Control definition. On April 17, 2020 and April 21, 2020, each of the holder of the Series A Preferred Stock and the holder of the Series A-2 Preferred Stock, respectively, and, in each case, entitled to give a waiver, agreed that such holder will not seek to exercise its right to require the Company to redeem the shares of such Series A Preferred Stock or Series A-2 Preferred Stock, as applicable, if such redemption right were to arise as a result of the outcome of the Consent Solicitation based on one of the Change of Control prongs of the Certificate of Designation (which prong may require the Company to make an offer to redeem the Preferred Stock if any person or “group” (within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act) obtains the power to elect a majority of the members of the Board). Therefore, in light of the foregoing, if the Percy Rockdale nominees became a majority of the Board pursuant to Percy Rockdale’s consent solicitation, the Company would not be required to offer to redeem the shares of the Series A Preferred Stock and the Series A-2 Preferred Stock. On April 23, 2020, the parties agreed that the waiver and additional disclosures, combined with the prior disclosures and approval of Percy Rockdale’s nominees as Continuing Directors, mooted the need for expedition and a preliminary injunction hearing, and the parties informed the court that the plaintiff was withdrawing its request for expedition and a preliminary injunction. On May 14, 2020, the Company announced that it had reached a resolution of Percy Rockdale's consent solicitation. On May 6, 2020, the plaintiff filed a motion for an order awarding attorneys’ fees and expenses, requesting a $2.5 million fee. On August 12, 2020, the parties informed the court that they had reached a resolution. That same day, the court entered an order closing the case. OSHA Complaint On November 4, 2020, the Company received notice that a complaint was filed on August 27, 2020, with the U.S. Department of Labor (OSHA Complaint Number 2-4173-20-156), by a former employee of Continental Insurance Group Ltd. alleging retaliatory employment practices in violation of the whistleblower provisions of the Sarbanes-Oxley Act. The Company has yet to submit a statement of position to the DOL but denies the material allegations in the complaint. The DOL has not issued a determination. Tax Matters Currently, the Canada Revenue Agency ("CRA") is auditing a subsidiary previously held by the Company. The Company intends to cooperate in audit matters. To date, CRA has not proposed any specific adjustments and the audit is ongoing. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | 17. Share-based Compensation The Company granted 143,096 options during the three and nine ended September 30, 2020. The weighted average fair value at date of grant for options granted during the nine months ended September 30, 2020 was $1.47 per option. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions shown as a weighted average for the year: Nine Months Ended September 30, 2020 Expected option life 4.27 years Risk-free interest rate 23.96 % Expected volatility 62.23 % Dividend yield — % Total share-based compensation expense recognized by HC2 and its subsidiaries under all equity compensation arrangements was $0.8 million and $1.6 million for the three months ended September 30, 2020 and 2019, respectively. Total share-based compensation expense recognized by HC2 and its subsidiaries under all equity compensation arrangements was $2.5 million and $4.6 million for the nine months ended September 30, 2020 and 2019, respectively. All grants are time based and vest either immediately or over a period established at grant. The Company recognizes compensation expense for equity awards, reduced by actual forfeitures, using the straight-line basis. Restricted Stock A summary of HC2’s restricted stock activity is as follows: Shares Weighted Average Grant Date Fair Value Unvested - December 31, 2019 2,213,775 $ 5.12 Granted 1,094,399 $ 2.70 Vested (2,088,519) $ 4.00 Forfeited (478,639) $ 5.87 Unvested - September 30, 2020 741,016 $ 4.24 At September 30, 2020, the total unrecognized stock-based compensation expense related to unvested restricted stock was $1.2 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted average period of 1.3 years. Stock Options A summary of HC2’s stock option activity is as follows: Shares Weighted Average Exercise Price Outstanding - December 31, 2019 7,067,592 $ 6.52 Granted 143,096 $ 2.62 Exercised — $ — Forfeited (142,503) $ 5.45 Expired (51,745) $ 5.48 Outstanding - September 30, 2020 7,016,440 $ 6.47 Eligible for exercise 6,974,235 $ 6.48 At September 30, 2020, the intrinsic value and average remaining life of the Company's outstanding options were zero and approximately 2.6 years, and intrinsic value and average remaining life of the Company's exercisable options were zero and approximately 2.6 years. At September 30, 2020, total unrecognized stock-based compensation expense related to unvested stock options was $0.03 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted average period of 0.6 years. There are 42,205 |
Equity
Equity | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Equity | 18. Equity Rights Offering On September 9, 2020, HC2 announced its intention to commence a rights offering (the “Rights Offering”), pursuant to which each holder of its outstanding common stock and participating preferred stock would receive transferable subscription rights entitling such stockholder to purchase shares of HC2’s common stock at a subscription price equal to $2.27 per share based on last sale price for our common stock on the trading day prior to September 9, 2020. On the same date, HC2 entered into an investment agreement (the "Investment Agreement") with Lancer Capital LLC ("Lancer Capital"), an investment fund led by Avram Glazer, the Chairman of our Board of Directors, pursuant to which Lancer Capital agreed to purchase up to $35.0 million of Series B Preferred Stock (as defined below) in connection with the Rights Offering based on subscription participation of common shareholders (the "Backstop Commitment"). The Investment Agreement provides for an advance of up to $10.0 million of the Backstop Commitment at the option of the Company. The Investment Agreement provides that, to the extent that Lancer Capital is precluded by applicable rules and regulations (including those of the NYSE, the Texas Department of Insurance and any other applicable regulators) from purchasing common stock by exercising rights received in the Rights Offering, Lancer Capital will purchase additional shares of Series B Preferred Stock (in excess of any Initial Funding amount) equivalent to its allocable participation right. The Investment Agreement also restricts Lancer Capital from purchasing or otherwise acquiring any other rights we issue in the Rights Offering. Lancer Capital did not receive any compensation or other consideration for entering into or consummating the Investment Agreement. The Backstop Commitment is defined as a financial instrument and measurable at fair value on each reporting period. HC2 used both market observable inputs and unobservable data to derive the fair value as of the reporting date. The Backstop Commitment is classified as Level 3. Fair value for the Backstop Commitment as of September 30, 2020, was zero. The Backstop Commitment will cease upon the consummation of the Rights Offering. Series A Preferred Stock, Series A-2 Preferred Stock, and Series B Preferred Stock The Company’s preferred shares authorized, issued and outstanding consisted of the following: September 30, December 31, 2020 2019 Preferred shares authorized, $0.001 par value 20,000,000 20,000,000 Series A shares issued and outstanding 6,375 6,375 Series A-2 shares issued and outstanding 4,000 4,000 Series B shares issued and outstanding 5,560 — Issuance of Series B Shares On September 9, 2020, HC2 issued a Certificate of Designation for 35,000 Series B Non-Voting participating Convertible Preferred Shares (the "Series B Preferred Stock") of HC2. The certificate of designation authorized the existing 20,000,000 shares of preferred stock, par value $0.001 to apply to this series. The Series B Preferred Stock is intended to be the economic equivalent of common stock, participating on an as-converted basis in all dividends, distributions, merger consideration and all other consideration receivable by holders of common stock, and a means through which the Backstop Arrangement can be effected prior to the completion of the stockholder vote and the satisfaction of any other regulatory requirements. The issued Series B Prefered Stock was classified as temporary equity as it is not mandatorily redeemable due to the presence of substantive conversion features, and will become mandatorily redeemable on the sixth anniversary of initial issuance if not previously converted. The Series B Prefered Stock issued was recognized at fair value upon issuance. As the Series B was contingently redeemable, subsequent accretion to redemption value will occur once the contingency is resolved and the redemption becomes probable (i.e., Rights Offering and Stockholder Approval is no longer reasonably possible). On September 17, 2020 Lancer Capital funded $5.56 million of the Backstop Commitment, and the Company issued Lancer Capital 5,560 shares of Series B Preferred Stock (the "Initial Funding"). CGI Purchase On January 11, 2019, CGI purchased 10,000 shares of Series A-2 Preferred Stock, which are convertible into a total of 1,426,534 shares of the Company's common stock, for a total consideration of $8.3 million. The shares and dividends accrued related to the Series A-2 Preferred Stock owned by CGI are eliminated in consolidation. The shares were purchased at a discount of $1.7 million, which was recorded within the Preferred dividends, deemed dividends, and repurchase gains line item of the Condensed Consolidated Statements of Operations as a deemed dividend. Luxor and Corrib Conversions On August 2, 2016, the Company entered into separate agreements with each of Corrib Master Fund, Ltd. ("Corrib"), then a holder of 1,000 shares of Series A Preferred Stock, and certain investment entities managed by Luxor Capital Group, LP ( "Luxor"), that together then held 9,000 shares of Series A-1 Preferred Stock. In conjunction with the conversions, the Company agreed to provide the following two forms of additional consideration for as long as the Series A Preferred Stock and Series A-2 Preferred Stock remained entitled to receive dividend payments (the "Additional Share Consideration"): • The Company agreed that in the event that Corrib and Luxor would have been entitled to any Participating Dividends payable, had they not converted the Preferred Stock (as defined in the respective Series A and Series A-1 Certificate of Designation), after the date of their Preferred Share conversion, then the Company will issue to Corrib and Luxor, on the date such Participating Dividends become payable by the Company, in a transaction exempt from the registration requirements of the Securities Act the number of shares of common stock equal to (a) the value of the Participating Dividends Corrib or Luxor would have received pursuant to Sections (2)(c) and (2)(d) of the respective Series A and Series A-1 Certificate of Designation, divided by (b) the Thirty Day VWAP (as defined in the respective Series A and Series A-1 Certificate of Designation) for the period ending two business days prior to the underlying event or transaction that would have entitled Corrib or Luxor to such Participating Dividend had Corrib’s or Luxor’s Preferred Stock remain unconverted. • The Company agreed that it will issue to Corrib and Luxor, on each quarterly anniversary commencing May 29, 2017 (or, if later, the date on which the corresponding dividend payment is made to the holders of the outstanding Preferred Stock), through and until the Maturity Date (as defined in the respective Series A and Series A-1 Certificate of Designation), in a transaction exempt from the registration requirements of the Securities Act the number of shares of common stock equal to (a) 1.875% the Accrued Value (as defined in the respective Series A and Series A-1 Certificate of Designation) of Corrib’s or Luxor’s Preferred Stock as of the Closing Date (as defined in applicable Voluntary Conversion Agreements) divided by (b) the Thirty Day VWAP (as defined in the respective Series A and Series A-1 Certificate of Designation) for the period ending two business days prior to the applicable Dividend Payment Date (as defined in the respective Series A and Series A-1 Certificate of Designation). For the nine months ended September 30, 2020, 209,467 and 23,566 shares of the Company's common stock have been issued to Luxor and Corrib, respectively, in conjunction with the Conversion agreement. The fair value of the Additional Share Consideration was valued by the Company at $0.6 million on the date of issuance and was recorded within Preferred stock and deemed dividends from conversion line item of the Condensed Consolidated Statements of Operations as a deemed dividend. Preferred Share Dividends During the nine months ended September 30, 2020 and 2019, HC2's Board of Directors declared cash dividends with respect to HC2’s issued and outstanding Preferred Stock, excluding Preferred Stock owned by CGI which is eliminated in consolidation, as presented in the following table (in millions): 2020 Declaration Date March 31, 2020 June 30, 2020 September 30, 2020 Holders of Record Date March 31, 2020 June 30, 2020 September 30, 2020 Payment Date April 15, 2020 July 15, 2020 October 15, 2020 Total Dividend $ 0.2 $ 0.2 $ 0.2 2019 Declaration Date March 31, 2019 June 30, 2019 September 30, 2019 Holders of Record Date March 31, 2019 June 30, 2019 September 30, 2019 Payment Date April 15, 2019 July 15, 2019 October 15, 2019 Total Dividend $ 0.2 $ 0.2 $ 0.2 |
Related Parties
Related Parties | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | 19. Related Parties HC2 Series B Preferred Stock As detailed in Note 18. Equity , HC2 entered into the Investment Agreement with Lancer Capital, an investment fund led by Avram Glazer, the Chairman of our Board of Directors, pursuant to which Lancer Capital agreed to the Backstop Commitment to purchase up to $35.0 million of Series B Preferred Stock in connection with the Rights Offering, based on subscription participation of common shareholders, of which $10.0 million may be funded in advance. On September 17, 2020, Lancer Capital funded $5.56 million, receiving 5,560 shares of Series B Preferred stock. Please see Note 18. Equity for further details. HCP Services Agreement In January 2015, the Company entered into a services agreement (the "Services Agreement") with Harbinger Capital Partners ("HCP"), which was a related party of the Company, with respect to the provision of services that may include providing office space and operational support and each party making available their respective employees to provide services as reasonably requested by the other party, subject to any limitations contained in applicable employment agreements and the terms of the Services Agreement. The Company recognized expenses of $0.2 million and $0.6 million, and income of $0.0 million and $0.1 million for the three months ended September 30, 2020 and 2019, respectively. The Company recognized expenses of $1.7 million and $2.5 million and income of $0.1 million and $0.2 million for the nine months ended September 30, 2020 and 2019, respectively. Three Months Ended September 30, 2020 2019 Corporate Other (1) Total Corporate Other (1) Total Allocated to HC2 by HCP Office space $ 0.2 $ — $ 0.2 $ 0.4 $ 0.2 $ 0.6 Administrative salaries and benefits — — — — — — Other shared overhead — — — — — — Total Expenses 0.2 — 0.2 0.4 0.2 0.6 Charged back to HCP by HC2 Administrative salaries and benefits — — — — — — Other shared overhead — — — 0.1 — 0.1 Total Income — — — 0.1 — 0.1 Net related party activity $ 0.2 $ — $ 0.2 $ 0.3 $ 0.2 $ 0.5 Nine Months Ended September 30, 2020 2019 Corporate Other (1) Total Corporate Other (1) Total Allocated to HC2 by HCP Office space $ 1.2 $ 0.5 $ 1.7 $ 1.6 $ 0.8 $ 2.4 Administrative salaries and benefits — — — 0.1 — 0.1 Other shared overhead — — — — — — Total Expenses 1.2 0.5 1.7 1.7 0.8 2.5 Charged back to HCP by HC2 Administrative salaries and benefits — — — — — — Other shared overhead 0.1 — 0.1 0.2 — 0.2 Total Income 0.1 — 0.1 0.2 — 0.2 Net related party activity $ 1.1 $ 0.5 $ 1.6 $ 1.5 $ 0.8 $ 2.3 (1) Other in the above table represent certain entities within our Spectrum, Life Sciences and Insurance segments. With the announcement of the departure of Phillip Falcone, the former CEO and Chairman of the Company, on June 11, 2020, HCP is no longer considered a related party. On August 2, 2020, the Company issued a notice of termination, effectively ending the Services Agreement with HCP, a former related party. Other GMH's subsidiary, GMSL, prior to its sale in February 2020, had transactions with several of its equity method investees. A summary of transactions with such equity method investees and balances outstanding are as follows (in millions). Such activity is reclassified to discontinued operations as a result of the sale of GMSL. See note 3. Discontinued Operations for further information: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net revenue $ — $ 2.6 $ 0.7 $ 5.6 Operating expenses $ — $ 0.1 $ — $ 0.8 Interest expense $ — $ 0.3 $ 0.1 $ 0.8 Dividend $ — $ 1.9 $ — $ 3.0 September 30, December 31, 2020 2019 Accounts receivable $ — $ 1.2 Debt obligations $ — $ 22.5 Accounts payable $ — $ 0.1 Dividends $ — $ 4.5 Life Sciences Pansend has an investment in Triple Ring Technologies, Inc. ("Triple Ring"). Various subsidiaries of HC2 utilize the services of Triple Ring, incurring zero and $0.5 million in services for the three months ended September 30, 2020 and 2019, and $1.0 million and $1.3 million in services for the nine months ended September 30, 2020 and 2019. |
Operating Segment and Related I
Operating Segment and Related Information | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Operating Segment and Related Information | 20. Operating Segment and Related Information The Company currently has one primary reportable geographic segment - United States. The Company has seven reportable operating segments based on management’s organization of the enterprise - Infrastructure, Clean Energy, Telecommunications, Insurance, Life Sciences, Spectrum, Other, and a Non-operating Corporate segment. All inter-segment revenues are eliminated. While the names of certain segments have changed as detailed in Note 1. Organization and Business, other than noted below, the Company's organizational structure has not changed during the nine months ended September 30, 2020. As a result of the sale of GMSL, and in accordance with ASC 280, the Company no longer considers the Results of Operations and Balance Sheets of GMH and its subsidiaries as a separate segment. Formerly the Marine Services segment, these entities and the investment in HMN have been reclassified to the Other segment. In addition, GMSL is a discontinued operation all operating results of GMSL have been reclassified to Discontinued operations. This has been reflected in the tables below for both the current and historical periods presented. The Company's revenue concentrations of 10% and greater are as follows: Three Months Ended September 30, Nine Months Ended September 30, Segment 2020 2019 2020 2019 Customer A Telecommunications * * * 10.7% * Less than 10% revenue concentration Summary information with respect to the Company’s operating segments is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net revenue Infrastructure $ 160.8 $ 168.4 $ 509.6 $ 556.2 Clean Energy 10.3 8.7 31.0 19.3 Telecommunications 136.4 162.2 430.1 507.0 Insurance 78.9 80.4 223.2 251.3 Spectrum 9.7 10.0 29.3 29.8 Eliminations (*) (2.8) (2.2) (8.1) (7.9) Total net revenue $ 393.3 $ 427.5 $ 1,215.1 $ 1,355.7 (*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the three and nine months ended September 30, 2020 and 2019, inclusive of transactions between entities under common control, which are eliminated or are reclassified in consolidation. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Income (loss) from operations Infrastructure $ 6.0 $ 12.4 $ 13.1 $ 34.3 Clean Energy 1.5 0.4 5.4 (0.3) Telecommunications 0.3 (0.4) 0.6 0.4 Insurance 15.1 10.6 16.7 75.9 Life Sciences (4.7) (3.0) (11.4) (6.6) Spectrum (11.7) (3.8) (15.8) (8.8) Other (0.5) 0.1 (2.1) — Non-operating Corporate (5.3) (6.6) (22.4) (20.3) Eliminations (*) (2.8) (2.2) (8.1) (7.9) Total income (loss) from operations $ (2.1) $ 7.5 $ (24.0) $ 66.7 (*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the three and nine months ended September 30, 2020 and 2019, inclusive of transactions between entities under common control, which are eliminated or are reclassified in consolidation. A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Loss) income from operations $ (2.1) $ 7.5 $ (24.0) $ 66.7 Interest expense (19.7) (20.1) (62.4) (58.0) Loss on early extinguishment or restructuring of debt (4.2) — (13.4) — Loss from equity investees (1.3) (1.3) (4.0) — Gain on bargain purchase — — — 1.1 Other income (loss) 7.3 6.1 74.1 4.7 (Loss) income from continuing operations (20.0) (7.8) (29.7) 14.5 Income tax expense (1.6) (1.1) (4.4) (6.2) (Loss) income from continuing operations (21.6) (8.9) (34.1) 8.3 Income (loss) from discontinued operations (including loss on disposal of $39.3 million) — 0.6 (60.0) (13.7) Net loss (21.6) (8.3) (94.1) (5.4) Net loss attributable to noncontrolling interest and redeemable noncontrolling interest 4.3 1.2 6.8 4.9 Net loss attributable to HC2 Holdings, Inc. (17.3) (7.1) (87.3) (0.5) Less: Preferred dividends, deemed dividends and repurchase gains 0.4 0.4 1.2 (0.4) Net loss attributable to common stock and participating preferred stockholders $ (17.7) $ (7.5) $ (88.5) $ (0.1) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Depreciation and Amortization Infrastructure $ 2.7 $ 3.9 $ 8.0 $ 11.8 Clean Energy 2.2 2.0 6.3 4.9 Telecommunications 0.1 0.1 0.3 0.3 Insurance (*) (4.4) (5.7) (15.8) (18.2) Life Sciences — — 0.1 0.1 Spectrum 1.7 1.8 5.1 4.7 Other — — — — Non-operating Corporate 0.1 0.1 0.1 0.1 Total $ 2.4 $ 2.2 $ 4.1 $ 3.7 (*) Balance includes amortization of negative VOBA, which increases net income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Capital Expenditures (*) Infrastructure $ 1.4 $ 1.4 $ 4.8 $ 6.8 Clean Energy 0.4 0.1 2.0 0.4 Insurance — 0.4 0.1 0.6 Life Sciences — 0.1 0.1 0.1 Spectrum 3.2 3.5 9.6 8.6 Other — — 0.1 — Total $ 5.0 $ 5.5 $ 16.7 $ 16.5 (*) The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations. September 30, December 31, 2020 2019 Investments Infrastructure $ 0.9 $ 0.9 Insurance 4,616.0 4,423.0 Life Sciences 20.8 22.0 Other 30.0 43.1 Eliminations (98.3) (96.9) Total $ 4,569.4 $ 4,392.1 September 30, December 31, 2020 2019 Total Assets Infrastructure $ 506.4 $ 530.4 Clean Energy 130.5 142.8 Telecommunications 75.5 89.3 Insurance 5,752.7 5,611.9 Life Sciences 27.1 28.4 Spectrum 248.1 257.9 Other 32.8 366.3 Non-operating Corporate 12.4 27.2 Eliminations (97.1) (95.9) Total $ 6,688.4 $ 6,958.3 |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 22. Subsequent Events On October 2, 2020 a subsidiary of the Company entered into a stock purchase agreement with TransWorld Holdings Inc, formerly GoIP Global Inc, to sell 100% of ICS and its subsidiary. As of September 30, 2020, the ICS entity did not meet the criteria for held-for-sale under ASC 360, as approval from the Board of Directors was sought by management, and obtained subsequent to September 30, 2020. The transaction closed on October 31, 2020. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The Condensed Consolidated Financial Statements include the accounts of the Company, its wholly owned subsidiaries and all other subsidiaries over which the Company exerts control. All intercompany profits, transactions and balances have been eliminated in consolidation. As of September 30, 2020, the results of DBMG, Beyond6, ICS, CIG, Genovel, R2, HC2 Broadcasting, and GMH have been consolidated into the Company’s results based on guidance from the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" 810, Consolidation) |
Reclassification | Reclassification Certain previous year amounts have been reclassified to conform with current year presentations, including: • The recasting of GMSL's results to discontinued operations. Further, the reclassification of prior period assets and liabilities have been classified as held for sale. See Note 3. Discontinued Operations for further information; • As a result of the sale of GMSL, and in accordance with ASC 280, the Company no longer considers the results of operations and Balance Sheets of GMH and its subsidiaries as a separate segment. Formerly the Marine Services segment, these entities and the investment in HMN have been reclassified to the Other segment. See Note 20. Operating Segment and Related Information for further information; and • The recasting of prior year Earnings per share as a result of the discontinued operations noted above. This includes presenting EPS for Net (loss) income from continuing operations, Net (loss) income from discontinuing operations, and Net (loss) income. See Note 21. Basic and Diluted (Loss) Income Per Common Share for further details. |
Accounting Pronouncements | Accounting Pronouncements Adopted in the Current Year The Company has implemented all new accounting pronouncements that are in effect and that may impact its Condensed Consolidated Financial Statements. The Company does not believe that there are any new accounting pronouncements issued since the filing of its 2019 Form 10-K that will have a material impact on its financial condition, results of operations or liquidity. Accounting Pronouncements to be Adopted Subsequent to December 31, 2020 Credit Loss Standard ASU 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments , was issued by FASB in June 2016. This standard is effective January 1, 2020 (with early adoption permitted), and will impact, at least to some extent, the Company's accounting and disclosure requirements for it's recoverable from reinsurers, accounts receivable, and mortgage loans. The FASB has voted to delay the effective date of ASU 2016-13 to January 1, 2023 for smaller reporting companies with a revised ASU in the fourth quarter of 2019. Currently, the Company continues to focus on developing models and procedures, with testing and refinement of models occurring in 2020 and 2021 with parallel testing to be performed in 2022. Available for sale fixed maturity securities are not in scope of the new credit loss model, but will undergo targeted improvements to the current reporting model including the establishment of a valuation allowance for credit losses versus the current direct write down approach. The Company will continue to identify any other financial assets not excluded from scope. The Company plans to use the modified retrospective method which will include a cumulative effect adjustment on the balance sheet as of the beginning of the fiscal year of adoption. However, prospective application is required for purchased credit deteriorated assets previously accounted for under ASU 310-30 for debt securities for which an other-than-temporary impairment ("OTTI") was recognized prior to the date of adoption. The Company does not currently expect to early adopt this standard and is currently evaluating the impact of this new accounting guidance on its Condensed Consolidated Financial Statements. Outlined below are key areas of change, although there are other changes not noted below: • Financial assets (or a group of financial assets) measured at amortized cost will be required to be presented at the net amount expected to be collected, with an allowance for credit losses deducted from the amortized cost basis, resulting in a net carrying value that reflects the amount the entity expects to collect on the financial asset at purchase. • Credit losses relating to available for sale fixed maturity securities will be recorded through an allowance for credit losses, rather than reductions in the amortized cost of the securities and is anticipated to increase volatility in the Company's Condensed Consolidated Statements of Operations. The allowance methodology recognizes that value may be realized either through collection of contractual cash flows or through the sale of the security. Therefore, the amount of the allowance for credit losses will be limited to the amount by which fair value is below amortized cost because the classification as available for sale is premised on an investment strategy that recognizes that the investment could be sold at fair value, if cash collection would result in the realization of an amount less than fair value. • The Company's Condensed Consolidated Statements of Operations will reflect the measurement of expected credit losses for newly recognized financial assets as well as the expected increases or decreases (including the reversal of previously recognized losses) of expected credit losses that have taken place during the period. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. • Disclosures will be required to include information around how the credit loss allowance was developed, further details on information currently disclosed about credit quality of financing receivables and net investments in leases, and a rollforward of the allowance for credit losses for available for sale fixed maturity securities as well as an aging analysis for securities that are past due. The Company anticipates a significant impact on its systems, processes and controls. While the requirements of the new guidance represent a material change from existing GAAP, the underlying economics of items in scope and related cash flows are unchanged. Focus areas will include, but not be limited to: (i) updating procedures to reflect new guidance requiring establishment of allowance for credit losses on available for sale debt securities; (ii) establishing procedures to review reinsurance risk to include but not limited to review of reinsurer ratings, trust agreements where applicable and historical and current performance; (iii) establishing procedures to identify and review all remaining financial assets within scope; and (iv) developing, testing, and implementing controls for newly developed procedures, as well as for additional annual reporting requirements. Long-Duration Contracts ASU 2018-12, Financial Services - Insurance (Topic 944): Targeted Improvements to the Accounting for Long-Duration Contracts , was issued by the FASB in August 2018 and is expected to have a significant impact on the Company’s Condensed Consolidated Financial Statements and Notes to the Condensed Consolidated Financial Statements. The standard is effective January 1, 2021 (with early adoption permitted), and will impact, at least to some extent, the Company's accounting and disclosure requirements for it's long-duration insurance contracts. The Company does not currently expect to early adopt this standard and is currently evaluating the impact of this new accounting guidance on its Condensed Consolidated Financial Statements. Outlined below are key areas of change, although there are other changes not noted below: • Cash flow assumptions must be reviewed at least annually and updated if necessary. The impact of these updates will be reported through net income. Current accounting policy requires the liability assumptions for long-duration contracts and limited payment contracts be locked in at contract inception, unless the contracts project a loss position which would allow the liability assumptions to be unlocked so that the loss could be recognized. • The rate used to discount the liability projections is to be based on an A-rated asset with observable market inputs and duration consistent with the duration of the liabilities. The discount rate is to be updated quarterly with the impact of the change in the discount rate recognized through other comprehensive income. Current accounting policy allows the use of an expected investment yield (which is not required to be observable in the market) to discount the liability projections. • Deferred acquisition costs for long-duration contracts are to be amortized in proportion to premiums, gross profits, or gross margins and those balances must be amortized on a constant-level basis over the expected life of the contract. Current accounting policy would amortize deferred acquisition costs based on revenue and profits. The Company does not have any deferred acquisition costs but VOBA amortization will follow this new guidance. • Market risk benefits are to be measured at fair value and presented separately in the statement of financial position. Under current accounting policy benefit features that will meet the definition of market risk benefits are accounted for as embedded derivatives or insurance liabilities via the benefit ratio model. The Company does not have any benefit features that will be categorized as market risk benefits. • Disaggregated rollforwards of beginning to ending balances of the liability for future policy benefits, policyholder account balances, VOBA, as well as information about significant inputs, judgments, assumptions, and methods used in measurement are required to be disclosed. The Company anticipates that the requirement to update assumptions for liability for future policy benefits will increase volatility in the Company's Condensed Consolidated Statements of Operations while the requirement to update the discount rate will increase volatility in the Company's Condensed Consolidated Statements of Stockholders' Equity. The Company anticipates a significant impact on the systems, processes and controls. While the requirements of the new guidance represent a material change from existing GAAP, the underlying economics of the Company's Insurance segment and related cash flows are unchanged. The FASB has voted to delay the effective date of ASU 2018-12 to January 1, 2024 for smaller reporting companies with a revised ASU in the fourth quarter of 2019. On September 30, 2020, the FASB approved a one year deferral of the effective date. Currently, the Company plans to focus on developing models and procedures through 2021, with testing and refinement of models occurring in 2022 and parallel testing performed in 2023. The Company may choose one of two adoption methods for the liability for future policy benefits: (i) a modified retrospective transition method whereby the entity will apply the amendments to contracts inforce as of the beginning of the earliest period presented on the basis of their existing carrying amounts adjusted for the removal of any related amounts in AOCI or (ii) a full retrospective transition method. Focus areas will include, but not be limited to: (i) determining an appropriate upper-medium grade fixed income instrument yield source from the market; (ii) establishing appropriate aggregation of liabilities; (iii) establishing liability models for each contract grouping identified that may be quickly updated to reflect current inforce listing and new discount rates on a quarterly basis; (iv) establishing appropriate best estimate assumptions with no provision for adverse deviation; (v) establishing procedures for annual review of assumptions including tracking of actual experience for enhanced reporting requirements; (vi) establishing new VOBA amortization that will align with new guidance for DAC amortization; and (vii) developing, testing, and implementing controls for newly developed procedures, as well as for additional annual reporting requirements. Subsequent Events ASC 855, Subsequent Events requires the Company to evaluate events that occur after the balance sheet date as of which the financial statements are issued, and to determine whether adjustments to or additional disclosures in the financial statements are necessary. See Note 22. Subsequent Events for the summary of the subsequent events. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Restricted Cash and Cash Equivalents | The following table provides supplemental cash flow information and a reconciliation of cash and cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows (in millions): September 30, 2020 2019 Cash and cash equivalents, beginning of period $ 228.8 $ 315.9 Restricted cash included in other assets 1.6 5.4 Total cash and cash equivalents and restricted cash $ 230.4 $ 321.3 Cash and cash equivalents, end of period $ 163.6 $ 263.0 Restricted cash included in other assets 1.7 1.5 Total cash and cash equivalents and restricted cash $ 165.3 $ 264.5 Supplemental cash flow information: Cash paid for interest $ 37.1 $ 35.6 Cash paid for taxes, net of (refunds) $ (12.7) $ 6.6 Non-cash investing and financing activities: Property, plant and equipment included in accounts payable $ 3.1 $ 3.0 Investments included in accounts payable $ 10.1 $ 14.6 |
Schedule of Other Income | The following table provides information related to Other income (loss) (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Gain (loss) on embedded derivatives $ 6.5 $ (1.6) $ 0.8 $ 4.0 Gain on sale of equity method investments 0.1 7.9 71.2 7.9 Other income (expense), net 0.7 (0.2) 2.1 (7.2) Total $ 7.3 $ 6.1 $ 74.1 $ 4.7 |
Schedule of Cash and Cash Equivalents | The following table provides supplemental cash flow information and a reconciliation of cash and cash equivalents and restricted cash to amounts reported within the Condensed Consolidated Balance Sheets and Condensed Consolidated Statements of Cash Flows (in millions): September 30, 2020 2019 Cash and cash equivalents, beginning of period $ 228.8 $ 315.9 Restricted cash included in other assets 1.6 5.4 Total cash and cash equivalents and restricted cash $ 230.4 $ 321.3 Cash and cash equivalents, end of period $ 163.6 $ 263.0 Restricted cash included in other assets 1.7 1.5 Total cash and cash equivalents and restricted cash $ 165.3 $ 264.5 Supplemental cash flow information: Cash paid for interest $ 37.1 $ 35.6 Cash paid for taxes, net of (refunds) $ (12.7) $ 6.6 Non-cash investing and financing activities: Property, plant and equipment included in accounts payable $ 3.1 $ 3.0 Investments included in accounts payable $ 10.1 $ 14.6 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The sale of GMSL closed on February 28, 2020. As a result of the sale, the results of GMSL and transaction related expenses directly attributable to the sale were reported as discontinued operations. Summarized operating results of the discontinued operations are as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net revenue $ — $ 48.2 $ 17.3 $ 130.0 Cost of revenue — 35.7 18.2 99.5 Selling, general and administrative — 3.7 13.7 15.6 Depreciation and amortization — 6.4 3.8 19.4 Other operating expenses — 0.3 — 0.1 Loss from operations — 2.1 (18.4) (4.6) Interest expense — (3.9) (3.6) (11.3) Loss on sale of subsidiary — — (39.3) — (Loss) income from equity investees — 1.6 0.5 1.5 Other income — 0.7 0.9 0.7 Pre-tax loss from discontinued operations — 0.5 (59.9) (13.7) Income tax benefit (expense) — 0.1 (0.1) — Income (loss) from discontinued operations $ — $ 0.6 $ (60.0) $ (13.7) As a result of the repayment of $15.0 million 2019 Revolving Credit Agreement, the Company allocated the following interest and the amortization of deferred financing costs for the three and nine months ended September 30, 2020 and 2019 associated with the principal prepayment from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statement of Operations: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest expense $ — $ 0.3 $ 0.2 $ 0.5 Amortization of deferred financing costs and original issuance discount $ — $ 0.1 $ 0.1 $ 0.2 As a result of the mandatory redemption of $76.9 million on the Senior Secured Notes, the Company allocated the following pro-rata interest and amortization of deferred financing costs and original issuance discount for the three and nine months ended September 30, 2020 and 2019, from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statements of Operations: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Interest expense $ — $ 2.2 $ 2.2 $ 6.6 Amortization of deferred financing costs and original issuance discount $ — $ 0.2 $ 0.2 $ 0.7 Summarized assets and liabilities of the discontinued operations are as follows (in millions): December 31, 2019 Assets Other invested assets $ 16.9 Cash and cash equivalents 10.2 Accounts receivable, net 26.0 Property, plant and equipment, net 182.1 Goodwill 14.3 Intangibles, net 5.3 Other assets 68.5 Total assets held for sale $ 323.3 Liabilities Accounts payable and other current liabilities $ 33.4 Debt obligations 65.6 Pension Liability 18.8 Other liabilities 36.1 Total liabilities held for sale $ 153.9 |
Revenue (Tables)
Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Reconciliation of Revenue from Segments to Consolidated | Revenue from contracts with customers consist of the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Revenue (1) Infrastructure $ 160.8 $ 168.4 $ 509.6 $ 556.2 Clean Energy 10.3 8.7 31.0 19.3 Telecommunications 136.4 162.2 430.1 507.0 Spectrum 9.7 10.0 29.3 29.8 Total revenue $ 317.2 $ 349.3 $ 1,000.0 $ 1,112.3 (1) The Insurance segment does not have revenues in scope of ASC 606. |
Schedule of Accounts Receivable | Accounts receivables, net from contracts with customers consist of the following (in millions): September 30, December 31, 2020 2019 Accounts receivables with customers Infrastructure $ 170.4 $ 199.2 Clean Energy 15.0 31.1 Telecommunications 50.7 51.9 Spectrum 6.8 8.5 Total accounts receivables with customers $ 242.9 $ 290.7 Accounts receivable, net consist of the following (in millions): September 30, December 31, 2020 2019 Contracts in progress $ 121.8 $ 177.8 Trade receivables 57.9 60.6 Unbilled retentions 64.6 53.9 Other receivables 9.4 21.0 Allowance for doubtful accounts (1.4) (1.5) Total accounts receivable, net $ 252.3 $ 311.8 |
Disaggregation of Revenue | The following table disaggregates DBMG's revenue by market (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Commercial $ 48.2 $ 50.6 $ 165.0 $ 162.9 Convention 1.2 9.7 5.0 66.8 Healthcare 7.9 12.1 20.6 34.5 Industrial 52.2 63.1 170.6 179.6 Transportation 18.2 14.4 58.0 48.8 Leisure 8.2 10.8 35.5 37.2 Other 24.8 7.5 54.2 26.0 Total revenue from contracts with customers 160.7 168.2 508.9 555.8 Other revenue 0.1 0.2 0.7 0.4 Total Infrastructure segment revenue $ 160.8 $ 168.4 $ 509.6 $ 556.2 The following table disaggregates Beyond6's revenue by type (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Volume-related $ 8.7 $ 8.5 $ 25.7 $ 18.5 Maintenance services — — — 0.1 Total revenue from contracts with customers 8.7 8.5 25.7 18.6 Clean Energy incentives 0.4 0.1 0.6 0.5 Alternative fuel tax credit 1.2 — 3.9 — Other revenue — 0.1 0.8 0.2 Total Clean Energy segment revenue $ 10.3 $ 8.7 $ 31.0 $ 19.3 ICS's revenues are predominantly derived from wholesale of international long distance minutes (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Termination of long distance minutes $ 136.4 $ 162.2 $ 430.1 $ 507.0 Total revenue from contracts with customers 136.4 162.2 430.1 507.0 Other revenue — — — — Total Telecommunications segment revenue $ 136.4 $ 162.2 $ 430.1 $ 507.0 The following table disaggregates the Spectrum segment's revenue by type (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Network advertising $ 4.1 $ 5.1 $ 13.1 $ 15.9 Broadcast station 4.0 3.1 11.3 8.7 Network distribution 1.0 1.1 3.0 3.8 Other 0.6 0.7 1.9 1.4 Total revenue from contracts with customers 9.7 10.0 29.3 29.8 Other revenue — — — — Total Spectrum segment revenue $ 9.7 $ 10.0 $ 29.3 $ 29.8 |
Contract with Customer, Asset and Liability | Contract assets and contract liabilities consisted of the following (in millions): September 30, December 31, 2020 2019 Contract assets $ 48.2 $ 50.6 Contract liabilities $ (60.3) $ (50.6) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The transaction price allocated to remaining unsatisfied performance obligations consisted of the following (in millions): Within one year Within five years Total Commercial $ 156.7 $ 25.0 $ 181.7 Convention 24.5 2.0 26.5 Healthcare 39.7 — 39.7 Industrial 47.3 — 47.3 Transportation 27.1 — 27.1 Leisure 14.7 — 14.7 Other 82.6 3.0 85.6 Remaining unsatisfied performance obligations $ 392.6 $ 30.0 $ 422.6 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-sale | The following tables provide information relating to investments in fixed maturity securities (in millions): September 30, 2020 Amortized Cost Unrealized Unrealized Fair Value U.S. Government and government agencies $ 7.3 $ 1.2 $ — $ 8.5 States, municipalities and political subdivisions 375.2 54.5 — 429.7 Residential mortgage-backed securities 53.4 4.7 (1.1) 57.0 Commercial mortgage-backed securities 109.2 1.4 (16.6) 94.0 Asset-backed securities 528.2 3.0 (33.9) 497.3 Corporate and other 2,847.6 415.6 (54.5) 3,208.7 Total fixed maturity securities $ 3,920.9 $ 480.4 $ (106.1) $ 4,295.2 December 31, 2019 Amortized Unrealized Unrealized Fair Value U.S. Government and government agencies $ 7.0 $ 0.7 $ — $ 7.7 States, municipalities and political subdivisions 405.4 34.7 — 440.1 Residential mortgage-backed securities 63.0 4.5 (0.6) 66.9 Commercial mortgage-backed securities 108.2 1.8 (0.6) 109.4 Asset-backed securities 592.6 2.2 (17.0) 577.8 Corporate and other 2,569.1 273.1 (15.2) 2,827.0 Total fixed maturity securities $ 3,745.3 $ 317.0 $ (33.4) $ 4,028.9 The following table presents the total unrealized losses for the 185 and 139 fixed maturity securities held by the Company as of September 30, 2020 and December 31, 2019, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (in millions): September 30, 2020 December 31, 2019 Fixed maturity securities Unrealized Losses % of Unrealized Losses % of Less than 20% $ (65.7) 62.0 % $ (32.6) 97.6 % 20% or more for less than six months (21.8) 20.5 % — — % 20% or more for six months or greater (18.6) 17.5 % (0.8) 2.4 % Total $ (106.1) 100.0 % $ (33.4) 100.0 % |
Schedule of Maturities of Fixed Maturity Securities Available-for-Sale | The amortized cost and fair value of fixed maturity securities available-for-sale as of September 30, 2020 are shown by contractual maturity in the table below (in millions). Actual maturities can differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Asset and mortgage-backed securities are shown separately in the table below, as they are not due at a single maturity date: Amortized Fair Corporate, Municipal, U.S. Government and Other securities Due in one year or less $ 44.8 $ 45.3 Due after one year through five years 266.6 276.4 Due after five years through ten years 439.6 466.3 Due after ten years 2,479.1 2,858.9 Subtotal 3,230.1 3,646.9 Mortgage-backed securities 162.6 151.0 Asset-backed securities 528.2 497.3 Total $ 3,920.9 $ 4,295.2 |
Schedule of Major Industry Types of Fixed Maturity Holdings | The tables below show the major industry types of the Company’s corporate and other fixed maturity securities (in millions): September 30, 2020 December 31, 2019 Amortized Fair % of Amortized Fair % of Finance, insurance, and real estate $ 1,013.5 $ 1,060.4 33.1 % $ 632.2 $ 674.9 23.8 % Transportation, communication and other services 677.4 757.8 23.6 % 785.7 855.2 30.3 % Manufacturing 700.6 854.9 26.6 % 728.7 825.9 29.2 % Other 456.1 535.6 16.7 % 422.5 471.0 16.7 % Total $ 2,847.6 $ 3,208.7 100.0 % $ 2,569.1 $ 2,827.0 100.0 % |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | Any remaining difference between the fair value and amortized cost is recognized in AOCI. The Company recognized the following (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net realized and unrealized gains on investments $ 4.9 $ — $ 5.8 $ — Other income (expenses), net — — 0.1 — Total other-than-temporary impairments $ 4.9 $ — $ 5.9 $ — |
Schedule of Estimated Fair Value and Gross Unrealized Loss | The following tables present the estimated fair values and gross unrealized losses for the 185 and 139 fixed maturity securities held by the Company that have estimated fair values below amortized cost as of each of September 30, 2020 and December 31, 2019, respectively. The Company does not have any OTTI losses reported in AOCI. These investments are presented by investment category and the length of time the related fair value has remained below amortized cost (in millions): September 30, 2020 Less than 12 months 12 months or greater Total Fair Value Unrealized Fair Unrealized Fair Unrealized States, municipalities and political subdivisions $ 3.6 $ — $ — $ — $ 3.6 $ — Residential mortgage-backed securities 5.3 (0.5) 5.4 (0.6) 10.7 (1.1) Commercial mortgage-backed securities 57.0 (16.6) 0.2 — 57.2 (16.6) Asset-backed securities 197.2 (10.2) 162.0 (23.7) 359.2 (33.9) Corporate and other 468.2 (29.4) 105.1 (25.1) 573.3 (54.5) Total fixed maturity securities $ 731.3 $ (56.7) $ 272.7 $ (49.4) $ 1,004.0 $ (106.1) December 31, 2019 Less than 12 months 12 months of greater Total Fair Unrealized Fair Unrealized Fair Unrealized U.S. Government and government agencies $ 0.3 $ — $ — $ — $ 0.3 $ — States, municipalities and political subdivisions 2.0 — — — 2.0 — Residential mortgage-backed securities 2.3 — 8.2 (0.6) 10.5 (0.6) Commercial mortgage-backed securities 58.1 (0.6) 0.2 — 58.3 (0.6) Asset-backed securities 126.5 (1.5) 255.8 (15.5) 382.3 (17.0) Corporate and other 169.6 (3.7) 177.4 (11.5) 347.0 (15.2) Total fixed maturity securities $ 358.8 $ (5.8) $ 441.6 $ (27.6) $ 800.4 $ (33.4) |
Debt Securities, Trading, and Equity Securities, FV-NI | The following tables provide information relating to investments in equity securities measured at fair value (in millions): September 30, December 31, Equity securities 2020 2019 Common stock $ 4.4 $ 10.5 Perpetual preferred stock 69.8 82.0 Total equity securities $ 74.2 $ 92.5 |
Net Investment Income | The major sources of net investment income were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Fixed maturity securities, available-for-sale at fair value $ 43.5 $ 45.2 $ 134.1 $ 132.5 Equity securities 0.5 1.9 2.4 6.5 Mortgage loans 2.7 3.4 11.2 10.2 Policy loans 0.3 0.3 0.9 0.9 Other invested assets (0.1) 0.8 (0.6) 3.4 Gross investment income 46.9 51.6 148.0 153.5 External investment expense (0.2) (0.4) (0.9) (0.9) Net investment income $ 46.7 $ 51.2 $ 147.1 $ 152.6 |
Net Realized Gain (Loss) on Investments | The major sources of net realized and unrealized gains and losses on investments were as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Realized gains on fixed maturity securities $ 3.3 $ 1.4 $ 15.3 $ 6.4 Realized losses on fixed maturity securities (2.3) (2.9) (15.4) (8.0) Realized gains on equity securities — 1.4 0.2 1.8 Realized losses on equity securities (2.2) (0.1) (2.3) (1.2) Realized gains on mortgage loans 1.9 1.0 2.1 1.0 Net unrealized gains (losses) on equity securities 4.6 (1.6) (13.9) 4.2 Net unrealized gains (losses) on derivative instruments 0.4 (1.1) 1.0 (2.1) Impairment loss (4.9) — (5.8) — Net realized and unrealized gains (losses) $ 0.8 $ (1.9) $ (18.8) $ 2.1 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis are summarized below (in millions): September 30, 2020 Fair Value Measurement Using: Total Level 1 Level 2 Level 3 Assets Fixed maturity securities U.S. Government and government agencies $ 8.5 $ 5.4 $ 3.1 $ — States, municipalities and political subdivisions 429.7 — 427.7 2.0 Residential mortgage-backed securities 57.0 — 47.5 9.5 Commercial mortgage-backed securities 94.0 — 39.8 54.2 Asset-backed securities 497.3 — 29.5 467.8 Corporate and other 3,208.7 43.1 2,973.8 191.8 Total fixed maturity securities 4,295.2 48.5 3,521.4 725.3 Equity securities Common stocks 4.4 4.0 — 0.4 Perpetual preferred stocks 69.8 4.9 20.1 44.8 Total equity securities 74.2 8.9 20.1 45.2 Total assets accounted for at fair value $ 4,369.4 $ 57.4 $ 3,541.5 $ 770.5 Liabilities Embedded derivative $ 2.2 $ — $ — $ 2.2 Other 4.7 — — 4.7 Total liabilities accounted for at fair value $ 6.9 $ — $ — $ 6.9 December 31, 2019 Fair Value Measurement Using: Total Level 1 Level 2 Level 3 Assets Fixed maturity securities U.S. Government and government agencies $ 7.7 $ 4.8 $ 2.9 $ — States, municipalities and political subdivisions 440.1 — 440.1 — Residential mortgage-backed securities 66.9 — 57.7 9.2 Commercial mortgage-backed securities 109.4 — 74.8 34.6 Asset-backed securities 577.8 — 27.2 550.6 Corporate and other 2,827.0 46.5 2,669.5 111.0 Total fixed maturity securities 4,028.9 51.3 3,272.2 705.4 Equity securities Common stocks 10.5 7.1 — 3.4 Perpetual preferred stocks 82.0 5.0 22.8 54.2 Total equity securities 92.5 12.1 22.8 57.6 Total assets accounted for at fair value $ 4,121.4 $ 63.4 $ 3,295.0 $ 763.0 Liabilities Embedded Derivatives $ 3.0 $ — $ — $ 3.0 Other 4.8 — — 4.8 Total liabilities accounted for at fair value $ 7.8 $ — $ — $ 7.8 |
Schedule of Changes in Balances of Level 3 Financial Assets at Fair Value | The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2020 and 2019 (in millions): Total realized/unrealized gains (losses) included in Balance at June 30, 2020 Net earnings (loss) Other comp. Purchases and issuances Sales and Transfer to Level 3 Transfer out of Level 3 Balance at September 30, 2020 Assets Fixed maturity securities States, municipalities and political subdivisions $ 3.0 $ — $ (0.3) $ — $ (3.0) $ 2.3 $ — $ 2.0 Residential mortgage-backed securities 9.6 — 0.4 — (0.5) — — 9.5 Commercial mortgage-backed securities 51.1 (2.1) 5.4 — (0.2) — — 54.2 Asset-backed securities 502.8 (1.2) 12.9 0.1 (46.8) — — 467.8 Corporate and other 142.6 (2.8) 4.8 29.3 (2.4) 25.9 (5.6) 191.8 Total fixed maturity securities 709.1 (6.1) 23.2 29.4 (52.9) 28.2 (5.6) 725.3 Equity securities Common stocks 1.5 (1.1) — — — — — 0.4 Perpetual preferred stocks 43.9 — 0.9 — — — — 44.8 Total equity securities 45.4 (1.1) 0.9 — — — — 45.2 Total financial assets $ 754.5 $ (7.2) $ 24.1 $ 29.4 $ (52.9) $ 28.2 $ (5.6) $ 770.5 Total realized/unrealized (gains) losses included in Balance at June 30, 2020 Net earnings (loss) Other comp. income (loss) Purchases and issuances Sales and settlements Transfer to Level 3 Transfer out of Level 3 Balance at September 30, 2020 Liabilities Embedded derivative $ 8.7 $ (6.5) $ — $ — $ — $ — $ — $ 2.2 Other 3.9 0.8 — — — — — 4.7 Total financial liabilities $ 12.6 $ (5.7) $ — $ — $ — $ — $ — $ 6.9 Total realized/unrealized gains (losses) included in Balance at Net earnings Other comp. Purchases and Sales and Transfer to Transfer out of Balance at Assets Fixed maturity securities States, municipalities and political subdivisions $ — $ 0.2 $ 0.6 $ — $ (3.0) $ 15.2 $ (11.0) $ 2.0 Residential mortgage-backed securities 9.2 — (1.2) — (2.0) 6.8 (3.3) 9.5 Commercial mortgage-backed securities 34.6 (2.0) (8.0) — (0.4) 30.0 — 54.2 Asset-backed securities 550.6 (7.1) (14.8) 60.1 (132.5) 191.8 (180.3) 467.8 Corporate and other 111.0 (3.0) (0.7) 65.2 (6.5) 71.4 (45.6) 191.8 Total fixed maturity securities 705.4 (11.9) (24.1) 125.3 (144.4) 315.2 (240.2) 725.3 Equity securities Common stocks 3.4 (3.0) — — — — — 0.4 Perpetual preferred stocks 54.2 2.3 (13.4) — — 1.7 — 44.8 Total equity securities 57.6 (0.7) (13.4) — — 1.7 — 45.2 Total financial assets $ 763.0 $ (12.6) $ (37.5) $ 125.3 $ (144.4) $ 316.9 $ (240.2) $ 770.5 Total realized/unrealized (gains) losses included in Balance at Net earnings Other comp. Purchases and Sales and Transfer to Transfer out of Balance at Liabilities Embedded derivative $ 3.0 $ (0.8) $ — $ — $ — $ — $ — $ 2.2 Other 4.8 (0.1) — — — — — 4.7 Total financial liabilities $ 7.8 $ (0.9) $ — $ — $ — $ — $ — $ 6.9 Total realized/unrealized gains (losses) included in Balance at June 30, 2019 Net earnings (loss) Other comp. income (loss) Purchases and issuances Sales and settlements Transfer to Level 3 Transfer out of Level 3 Balance at September 30, 2019 Assets Fixed maturity securities States, municipalities and political subdivisions $ 3.7 $ — $ 0.1 $ — $ — $ — $ (3.8) $ — Residential mortgage-backed securities 12.5 — (0.1) — (0.7) — (3.5) 8.2 Commercial mortgage-backed securities 66.4 0.2 1.3 — (7.4) — — 60.5 Asset-backed securities 412.6 (0.5) (6.3) 13.6 (38.3) 14.2 (76.4) 318.9 Corporate and other 158.1 (0.4) 2.2 3.1 (10.3) — (45.8) 106.9 Total fixed maturity securities 653.3 (0.7) (2.8) 16.7 (56.7) 14.2 (129.5) 494.5 Equity securities Common stocks 4.9 (0.5) 0.1 — (0.2) — — 4.3 Perpetual preferred stocks 57.1 (0.2) (1.5) — (2.6) — — 52.8 Total equity securities 62.0 (0.7) (1.4) — (2.8) — — 57.1 Total financial assets $ 715.3 $ (1.4) $ (4.2) $ 16.7 $ (59.5) $ 14.2 $ (129.5) $ 551.6 Total realized/unrealized (gains) losses included in Balance at June 30, 2019 Net earnings (loss) Other comp. income (loss) Purchases and issuances Sales and settlements Transfer to Level 3 Transfer out of Level 3 Balance at September 30, 2019 Liabilities Embedded derivatives $ 2.9 $ 1.6 $ — $ — $ — $ — $ — $ 4.5 Other 5.4 — — — — — — 5.4 Total financial liabilities $ 8.3 $ 1.6 $ — $ — $ — $ — $ — $ 9.9 Total realized/unrealized gains (losses) included in Balance at Net earnings Other comp. Purchases and Sales and Transfer to Transfer out of Balance at Assets Fixed maturity securities States, municipalities and political subdivisions $ — $ — $ 0.1 $ — $ (0.5) $ 4.2 $ (3.8) $ — Residential mortgage-backed securities 19.0 — 0.2 — (1.5) — (9.5) 8.2 Commercial mortgage-backed securities 58.2 0.2 3.4 7.5 (7.9) — (0.9) 60.5 Asset-backed securities 478.2 (2.1) 11.7 102.1 (214.4) 19.8 (76.4) 318.9 Corporate and other 85.0 (0.5) 4.5 23.5 (27.8) 105.0 (82.8) 106.9 Total fixed maturity securities 640.4 (2.4) 19.9 133.1 (252.1) 129.0 (173.4) 494.5 Equity securities Common stocks 5.9 (0.3) 0.1 — (1.2) — (0.2) 4.3 Perpetual preferred stocks 55.3 (3.9) (1.5) 2.5 (2.6) 3.0 — 52.8 Total equity securities 61.2 (4.2) (1.4) 2.5 (3.8) 3.0 (0.2) 57.1 Total financial assets $ 701.6 $ (6.6) $ 18.5 $ 135.6 $ (255.9) $ 132.0 $ (173.6) $ 551.6 Total realized/unrealized (gains) losses included in Balance at Net earnings Other comp. Purchases and Sales and Transfer to Transfer out of Balance at Liabilities Embedded derivatives $ 8.4 $ (3.9) $ — $ — $ — $ — $ — $ 4.5 Other 3.5 (1.1) — 3.0 — — — 5.4 Total financial liabilities $ 11.9 $ (5.0) $ — $ 3.0 $ — $ — $ — $ 9.9 |
Schedule of Financial Instruments Measured at Fair Value on Nonrecurring Basis | The following table presents the carrying amounts and estimated fair values of the Company’s financial instruments, which were not measured at fair value on a recurring basis. The table excludes carrying amounts for cash and cash equivalents, accounts receivable, accounts payable and other current liabilities, and other assets and liabilities approximate fair value due to relatively short periods to maturity (in millions): September 30, 2020 Fair Value Measurement Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans $ 121.1 $ 121.1 $ — $ — $ 121.1 Policy loans 18.2 18.2 — 18.2 — Other invested assets 11.3 11.3 — — 11.3 Total assets not accounted for at fair value $ 150.6 $ 150.6 $ — $ 18.2 $ 132.4 Liabilities Annuity benefits accumulated (1) $ 228.1 $ 228.4 $ — $ — $ 228.4 Long-term obligations (2) 647.5 643.7 — 643.7 — Total liabilities not accounted for at fair value $ 875.6 $ 872.1 $ — $ 643.7 $ 228.4 December 31, 2019 Fair Value Measurement Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans $ 183.5 $ 183.5 $ — $ — $ 183.5 Policy loans 19.1 19.1 — 19.1 — Total assets not accounted for at fair value $ 202.6 $ 202.6 $ — $ 19.1 $ 183.5 Liabilities Annuity benefits accumulated (1) $ 233.9 $ 231.0 $ — $ — $ 231.0 Long-term obligations (2) 772.0 768.9 — 768.9 — Total liabilities not accounted for at fair value $ 1,005.9 $ 999.9 $ — $ 768.9 $ 231.0 |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivables, net from contracts with customers consist of the following (in millions): September 30, December 31, 2020 2019 Accounts receivables with customers Infrastructure $ 170.4 $ 199.2 Clean Energy 15.0 31.1 Telecommunications 50.7 51.9 Spectrum 6.8 8.5 Total accounts receivables with customers $ 242.9 $ 290.7 Accounts receivable, net consist of the following (in millions): September 30, December 31, 2020 2019 Contracts in progress $ 121.8 $ 177.8 Trade receivables 57.9 60.6 Unbilled retentions 64.6 53.9 Other receivables 9.4 21.0 Allowance for doubtful accounts (1.4) (1.5) Total accounts receivable, net $ 252.3 $ 311.8 |
Recoverable from Reinsurers (Ta
Recoverable from Reinsurers (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Ceded Credit Risk | Recoverable from reinsurers consists of the following (in millions): September 30, 2020 December 31, 2019 Reinsurer A.M. Best Rating Amount % of Total Amount % of Total Munich American Reassurance Company A+ $ 362.2 37.6 % $ 347.6 36.4 % Hannover Life Reassurance Company of America A+ 314.7 32.7 % 323.3 33.9 % Loyal American Life Insurance Company A 150.0 15.6 % 147.5 15.5 % Great American Life Insurance Company A 56.7 5.9 % 56.2 5.9 % ManhattanLife Assurance Company of America B+ 46.7 4.9 % 47.0 4.9 % Other 31.1 3.3 % 32.1 3.4 % Total $ 961.4 100.0 % $ 953.7 100.0 % |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant, and Equipment | Property, plant and equipment consists of the following (in millions): September 30, December 31, 2020 2019 Equipment, furniture and fixtures, and software $ 221.0 $ 212.8 Building and leasehold improvements 41.3 40.1 Land 36.5 36.8 Construction in progress 3.9 4.8 Plant and transportation equipment 4.9 5.2 307.6 299.7 Less: Accumulated depreciation 93.8 76.0 Total $ 213.8 $ 223.7 |
Goodwill and Intangibles, net (
Goodwill and Intangibles, net (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of the Changes in the Carrying Amount of Goodwill by Reporting Unit | The carrying amount of goodwill by segment was as follows (in millions): Infrastructure Clean Energy Spectrum Total Balance at December 31, 2019 $ 89.0 $ 2.1 $ 21.4 $ 112.5 Translation 0.2 — — 0.2 Balance at September 30, 2020 $ 89.2 $ 2.1 $ 21.4 $ 112.7 |
Schedule of Indefinite-Lived Intangible Assets | The carrying amount of indefinite-lived intangible assets were as follows (in millions): September 30, December 31, 2020 2019 FCC licenses $ 129.3 $ 136.2 State licenses 2.5 2.5 Total $ 131.8 $ 138.7 |
Schedule of Intangible Assets Subject to Amortization | The gross carrying amount and accumulated amortization of amortizable intangible assets by major intangible asset class were as follows (in millions): Weighted-Average Original Useful Life September 30, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Trade names 13 Years $ 24.3 $ (8.2) $ 16.1 $ 24.2 $ (6.6) $ 17.6 Customer relationships 10 Years 48.6 (16.5) 32.1 48.6 (13.1) 35.5 Channel sharing arrangements 35 Years 20.2 (1.5) 18.7 27.2 (0.9) 26.3 Other 7 Years 5.9 (2.4) 3.5 5.5 (1.9) 3.6 Total $ 99.0 $ (28.6) $ 70.4 $ 105.5 $ (22.5) $ 83.0 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Excluding the impact of any future acquisitions, dispositions or change in foreign currency, the Company estimates the annual amortization expense of amortizable intangible assets for the next five fiscal years will be as follows (in millions): 2020 $ 2.2 2021 7.5 2022 7.4 2023 7.3 2024 6.8 Thereafter 39.2 Total $ 70.4 |
Life, Accident and Health Res_2
Life, Accident and Health Reserves (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Insurance [Abstract] | |
Schedule of Life, Accident and Health Reserves | Life, accident and health reserves consist of the following (in millions): September 30, December 31, 2020 2019 Long-term care insurance reserves $ 4,262.2 $ 4,201.6 Traditional life insurance reserves 167.1 173.4 Other accident and health insurance reserves 193.6 192.1 Total life, accident and health reserves $ 4,622.9 $ 4,567.1 The following table sets forth changes in the liability for claims for the portion of our long-term care insurance reserves (in millions): Nine Months Ended September 30, 2020 2019 Beginning balance $ 761.3 $ 738.5 Less: recoverable from reinsurers (131.0) (136.4) Beginning balance, net 630.3 602.1 Incurred related to insured events of: Current year 166.3 159.2 Prior years (34.2) (46.9) Total incurred 132.1 112.3 Paid related to insured events of: Current year (8.9) (8.4) Prior years (119.4) (106.9) Total paid (128.3) (115.3) Interest on liability for policy and contract claims 17.0 16.2 Ending balance, net 651.1 615.3 Add: recoverable from reinsurers 137.2 129.6 Ending balance $ 788.3 $ 744.9 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accounts Payable and Other Current Liabilities | Accounts payable and other current liabilities consist of the following (in millions): September 30, December 31, 2020 2019 Accounts payable $ 97.7 $ 134.6 Accrued expenses and other current liabilities 67.7 75.2 Accrued interconnection costs 42.2 43.5 Accrued payroll and employee benefits 43.7 39.6 Accrued interest 26.5 11.3 Accrued income taxes 20.8 2.0 Total accounts payable and other current liabilities $ 298.6 $ 306.2 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt And Capital Lease Obligations | Debt obligations consist of the following (in millions): September 30, December 31, 2020 2019 Infrastructure LIBOR plus 5.85% Note, due 2023 $ 73.6 $ 77.0 LIBOR plus 1.50% Line of Credit 29.5 48.9 Obligations under finance leases 0.2 0.2 Clean Energy LIBOR plus 3.0% Term Loan due in 2023 — 27.1 5.00% Term Loan due in 2022 — 11.2 4.50% Note due in 2022 — 10.2 5.00% Term Loan due in 2024 57.0 — Other, various maturity dates 0.4 2.4 Spectrum 8.50% Note due 2021 43.3 36.2 10.50% Note due 2021 42.5 42.5 Other, various maturity dates 5.3 7.9 Obligations under finance leases 0.8 1.4 Non-Operating Corporate 11.50% Senior Secured Notes, due 2021 342.4 470.0 7.50% Convertible Senior Notes, due 2022 55.0 55.0 LIBOR plus 6.75% Line of Credit 15.0 15.0 Total 665.0 805.0 Issuance discount, net and deferred financing costs (18.6) (31.4) Total debt obligations $ 646.4 $ 773.6 |
Schedule Of Maturities Of Debt And Capital Lease Obligations | Aggregate finance lease and debt payments, including interest, are as follows (in millions): Finance Leases Debt Total 2020 $ 0.9 $ 42.1 $ 43.0 2021 0.1 517.0 517.1 2022 — 77.5 77.5 2023 — 79.8 79.8 2024 — 49.1 49.1 Thereafter — — — Total minimum principal & interest payments 1.0 765.5 766.5 Less: Amount representing interest — (101.5) (101.5) Total aggregate finance lease and debt payments $ 1.0 $ 664.0 $ 665.0 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Obligations and Non-Cancellable Operating Leases | Future minimum purchase obligations as of December 31, 2019 were as follows (in millions): 2020 $ 86.3 2021 3.3 2022 0.2 2023 0.2 2024 0.2 Thereafter — Total obligations $ 90.2 |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2019, undiscounted cash flows for finance and operating leases are as follows (in millions): Operating Leases Finance 2020 $ 15.1 $ 1.0 2021 13.4 0.7 2022 10.9 0.1 2023 8.8 — 2024 6.6 — Thereafter 8.2 — Total future lease payments 63.0 1.8 Less: Present values (9.3) (0.1) Total lease liability balance $ 53.7 $ 1.7 |
Finance Lease, Liability, Maturity | As of December 31, 2019, undiscounted cash flows for finance and operating leases are as follows (in millions): Operating Leases Finance 2020 $ 15.1 $ 1.0 2021 13.4 0.7 2022 10.9 0.1 2023 8.8 — 2024 6.6 — Thereafter 8.2 — Total future lease payments 63.0 1.8 Less: Present values (9.3) (0.1) Total lease liability balance $ 53.7 $ 1.7 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Company's Restricted Stock Activity | A summary of HC2’s restricted stock activity is as follows: Shares Weighted Average Grant Date Fair Value Unvested - December 31, 2019 2,213,775 $ 5.12 Granted 1,094,399 $ 2.70 Vested (2,088,519) $ 4.00 Forfeited (478,639) $ 5.87 Unvested - September 30, 2020 741,016 $ 4.24 |
Summary of Company's Stock Option Activity | A summary of HC2’s stock option activity is as follows: Shares Weighted Average Exercise Price Outstanding - December 31, 2019 7,067,592 $ 6.52 Granted 143,096 $ 2.62 Exercised — $ — Forfeited (142,503) $ 5.45 Expired (51,745) $ 5.48 Outstanding - September 30, 2020 7,016,440 $ 6.47 Eligible for exercise 6,974,235 $ 6.48 |
Valuation Assumptions | The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions shown as a weighted average for the year: Nine Months Ended September 30, 2020 Expected option life 4.27 years Risk-free interest rate 23.96 % Expected volatility 62.23 % Dividend yield — % |
Equity (Tables)
Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Equity [Abstract] | |
Schedule of Stock by Class | The Company’s preferred shares authorized, issued and outstanding consisted of the following: September 30, December 31, 2020 2019 Preferred shares authorized, $0.001 par value 20,000,000 20,000,000 Series A shares issued and outstanding 6,375 6,375 Series A-2 shares issued and outstanding 4,000 4,000 Series B shares issued and outstanding 5,560 — |
Summary of Cash, PIK and Special Cash Dividends | During the nine months ended September 30, 2020 and 2019, HC2's Board of Directors declared cash dividends with respect to HC2’s issued and outstanding Preferred Stock, excluding Preferred Stock owned by CGI which is eliminated in consolidation, as presented in the following table (in millions): 2020 Declaration Date March 31, 2020 June 30, 2020 September 30, 2020 Holders of Record Date March 31, 2020 June 30, 2020 September 30, 2020 Payment Date April 15, 2020 July 15, 2020 October 15, 2020 Total Dividend $ 0.2 $ 0.2 $ 0.2 2019 Declaration Date March 31, 2019 June 30, 2019 September 30, 2019 Holders of Record Date March 31, 2019 June 30, 2019 September 30, 2019 Payment Date April 15, 2019 July 15, 2019 October 15, 2019 Total Dividend $ 0.2 $ 0.2 $ 0.2 |
Related Parties (Tables)
Related Parties (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related party transactions | Three Months Ended September 30, 2020 2019 Corporate Other (1) Total Corporate Other (1) Total Allocated to HC2 by HCP Office space $ 0.2 $ — $ 0.2 $ 0.4 $ 0.2 $ 0.6 Administrative salaries and benefits — — — — — — Other shared overhead — — — — — — Total Expenses 0.2 — 0.2 0.4 0.2 0.6 Charged back to HCP by HC2 Administrative salaries and benefits — — — — — — Other shared overhead — — — 0.1 — 0.1 Total Income — — — 0.1 — 0.1 Net related party activity $ 0.2 $ — $ 0.2 $ 0.3 $ 0.2 $ 0.5 Nine Months Ended September 30, 2020 2019 Corporate Other (1) Total Corporate Other (1) Total Allocated to HC2 by HCP Office space $ 1.2 $ 0.5 $ 1.7 $ 1.6 $ 0.8 $ 2.4 Administrative salaries and benefits — — — 0.1 — 0.1 Other shared overhead — — — — — — Total Expenses 1.2 0.5 1.7 1.7 0.8 2.5 Charged back to HCP by HC2 Administrative salaries and benefits — — — — — — Other shared overhead 0.1 — 0.1 0.2 — 0.2 Total Income 0.1 — 0.1 0.2 — 0.2 Net related party activity $ 1.1 $ 0.5 $ 1.6 $ 1.5 $ 0.8 $ 2.3 (1) Other in the above table represent certain entities within our Spectrum, Life Sciences and Insurance segments. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net revenue $ — $ 2.6 $ 0.7 $ 5.6 Operating expenses $ — $ 0.1 $ — $ 0.8 Interest expense $ — $ 0.3 $ 0.1 $ 0.8 Dividend $ — $ 1.9 $ — $ 3.0 September 30, December 31, 2020 2019 Accounts receivable $ — $ 1.2 Debt obligations $ — $ 22.5 Accounts payable $ — $ 0.1 Dividends $ — $ 4.5 |
Operating Segment and Related_2
Operating Segment and Related Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Segment Reporting [Abstract] | |
Schedules of Concentration of Risk, by Risk Factor | While the names of certain segments have changed as detailed in Note 1. Organization and Business, other than noted below, the Company's organizational structure has not changed during the nine months ended September 30, 2020. As a result of the sale of GMSL, and in accordance with ASC 280, the Company no longer considers the Results of Operations and Balance Sheets of GMH and its subsidiaries as a separate segment. Formerly the Marine Services segment, these entities and the investment in HMN have been reclassified to the Other segment. In addition, GMSL is a discontinued operation all operating results of GMSL have been reclassified to Discontinued operations. This has been reflected in the tables below for both the current and historical periods presented. The Company's revenue concentrations of 10% and greater are as follows: Three Months Ended September 30, Nine Months Ended September 30, Segment 2020 2019 2020 2019 Customer A Telecommunications * * * 10.7% |
Summary of Company's Geographic and Operating Segments | Summary information with respect to the Company’s operating segments is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net revenue Infrastructure $ 160.8 $ 168.4 $ 509.6 $ 556.2 Clean Energy 10.3 8.7 31.0 19.3 Telecommunications 136.4 162.2 430.1 507.0 Insurance 78.9 80.4 223.2 251.3 Spectrum 9.7 10.0 29.3 29.8 Eliminations (*) (2.8) (2.2) (8.1) (7.9) Total net revenue $ 393.3 $ 427.5 $ 1,215.1 $ 1,355.7 (*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the three and nine months ended September 30, 2020 and 2019, inclusive of transactions between entities under common control, which are eliminated or are reclassified in consolidation. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Income (loss) from operations Infrastructure $ 6.0 $ 12.4 $ 13.1 $ 34.3 Clean Energy 1.5 0.4 5.4 (0.3) Telecommunications 0.3 (0.4) 0.6 0.4 Insurance 15.1 10.6 16.7 75.9 Life Sciences (4.7) (3.0) (11.4) (6.6) Spectrum (11.7) (3.8) (15.8) (8.8) Other (0.5) 0.1 (2.1) — Non-operating Corporate (5.3) (6.6) (22.4) (20.3) Eliminations (*) (2.8) (2.2) (8.1) (7.9) Total income (loss) from operations $ (2.1) $ 7.5 $ (24.0) $ 66.7 (*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the three and nine months ended September 30, 2020 and 2019, inclusive of transactions between entities under common control, which are eliminated or are reclassified in consolidation. A reconciliation of the Company's consolidated segment operating income to consolidated earnings before income taxes is as follows (in millions): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Loss) income from operations $ (2.1) $ 7.5 $ (24.0) $ 66.7 Interest expense (19.7) (20.1) (62.4) (58.0) Loss on early extinguishment or restructuring of debt (4.2) — (13.4) — Loss from equity investees (1.3) (1.3) (4.0) — Gain on bargain purchase — — — 1.1 Other income (loss) 7.3 6.1 74.1 4.7 (Loss) income from continuing operations (20.0) (7.8) (29.7) 14.5 Income tax expense (1.6) (1.1) (4.4) (6.2) (Loss) income from continuing operations (21.6) (8.9) (34.1) 8.3 Income (loss) from discontinued operations (including loss on disposal of $39.3 million) — 0.6 (60.0) (13.7) Net loss (21.6) (8.3) (94.1) (5.4) Net loss attributable to noncontrolling interest and redeemable noncontrolling interest 4.3 1.2 6.8 4.9 Net loss attributable to HC2 Holdings, Inc. (17.3) (7.1) (87.3) (0.5) Less: Preferred dividends, deemed dividends and repurchase gains 0.4 0.4 1.2 (0.4) Net loss attributable to common stock and participating preferred stockholders $ (17.7) $ (7.5) $ (88.5) $ (0.1) Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Depreciation and Amortization Infrastructure $ 2.7 $ 3.9 $ 8.0 $ 11.8 Clean Energy 2.2 2.0 6.3 4.9 Telecommunications 0.1 0.1 0.3 0.3 Insurance (*) (4.4) (5.7) (15.8) (18.2) Life Sciences — — 0.1 0.1 Spectrum 1.7 1.8 5.1 4.7 Other — — — — Non-operating Corporate 0.1 0.1 0.1 0.1 Total $ 2.4 $ 2.2 $ 4.1 $ 3.7 (*) Balance includes amortization of negative VOBA, which increases net income. Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Capital Expenditures (*) Infrastructure $ 1.4 $ 1.4 $ 4.8 $ 6.8 Clean Energy 0.4 0.1 2.0 0.4 Insurance — 0.4 0.1 0.6 Life Sciences — 0.1 0.1 0.1 Spectrum 3.2 3.5 9.6 8.6 Other — — 0.1 — Total $ 5.0 $ 5.5 $ 16.7 $ 16.5 (*) The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations. |
Segment Reporting for Long-term investments, Property and Equipment - Net and Assets | September 30, December 31, 2020 2019 Investments Infrastructure $ 0.9 $ 0.9 Insurance 4,616.0 4,423.0 Life Sciences 20.8 22.0 Other 30.0 43.1 Eliminations (98.3) (96.9) Total $ 4,569.4 $ 4,392.1 September 30, December 31, 2020 2019 Total Assets Infrastructure $ 506.4 $ 530.4 Clean Energy 130.5 142.8 Telecommunications 75.5 89.3 Insurance 5,752.7 5,611.9 Life Sciences 27.1 28.4 Spectrum 248.1 257.9 Other 32.8 366.3 Non-operating Corporate 12.4 27.2 Eliminations (97.1) (95.9) Total $ 6,688.4 $ 6,958.3 |
Basic and Diluted Income (Los_2
Basic and Diluted Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share | The following table presents a reconciliation of net (loss) income used in basic and diluted EPS calculations (in millions, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 (Loss) income from continuing operations $ (21.6) $ (8.9) $ (34.1) $ 8.3 Income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest 4.3 1.6 (8.5) 3.8 (Loss) income from continuing operations attributable to the Company (17.3) (7.3) (42.6) 12.1 Less: Preferred dividends, deemed dividends and repurchase gains 0.4 0.4 1.2 (0.4) (Loss) income from continuing operations attributable to HC2 common stockholders (17.7) (7.7) (43.8) 12.5 Income (loss) from discontinued operations (including loss on disposal of $39.3 million) — 0.6 (60.0) (13.7) (Loss) income attributable to noncontrolling interest and redeemable noncontrolling interest — (0.4) 15.3 1.1 Income (loss) from discontinued operations, net of tax and noncontrolling interest — 0.2 (44.7) (12.6) Net (loss) income attributable to common stock and participating preferred stockholders $ (17.7) $ (7.5) $ (88.5) $ (0.1) Earnings allocable to common shares: Participating shares at end of period: Weighted-average common stock outstanding 46.9 45.7 46.7 45.4 Unvested restricted stock — — — — Preferred stock (as-converted basis) 0.3 — 0.1 — Total 47.2 45.7 46.8 45.4 Percentage of income (loss) allocated to: Common stock 99.4 % 100.0 % 99.8 % 100.0 % Unvested restricted stock — % — % — % — % Preferred stock 0.6 % — % 0.2 % — % Numerator for earnings per share, basic: Net income (loss) from continuing operations attributable to common stock, basic $ (17.6) $ (7.7) $ (43.7) $ 12.5 Net income (loss) from discontinued operations attributable to common stock, basic and diluted $ — $ 0.2 $ (44.7) $ (12.6) Net income (loss) attributable to common stock and participating preferred stockholders, basic and diluted $ (17.6) $ (7.5) $ (88.3) $ (0.1) Earnings allocable to common shares, diluted: Numerator for earnings per share, diluted Effect of assumed shares for stock options, restricted shares and convertible instruments $ — $ — $ — $ 1.6 Net income (loss) from continuing operations attributable to common stock, diluted $ (17.6) $ (7.7) $ (43.7) $ 14.1 Net income (loss) from discontinued operations attributable to common stock, diluted $ — $ 0.2 $ (44.7) $ (12.6) Net income (loss) attributable to common stock and participating preferred stockholders, diluted $ (17.6) $ (7.5) $ (88.3) $ 1.5 Denominator for basic and dilutive earnings per share: Weighted average common shares outstanding - basic 46.9 45.7 46.7 45.4 Effect of assumed shares under treasury stock method for stock options and restricted shares and if-converted method for convertible instruments — — — 14.7 Weighted average common shares outstanding - diluted 46.9 45.7 46.7 60.1 (Loss) income per share - continuing operations Basic: $ (0.38) $ (0.16) $ (0.94) $ 0.28 Diluted: $ (0.38) $ (0.16) $ (0.94) $ 0.23 Loss per share - Discontinued operations Basic: $ — $ — $ (0.95) $ (0.28) Diluted: $ — $ — $ (0.95) $ (0.21) (Loss) income per share - Net (loss) income attributable to participating security holders Basic: $ (0.38) $ (0.16) $ (1.89) $ — Diluted: $ (0.38) $ (0.16) $ (1.89) $ 0.02 |
Organization and Business (Deta
Organization and Business (Details) | 9 Months Ended |
Sep. 30, 2020security | |
Business And Organization [Line Items] | |
Number of reportable segments | 7 |
DBMG | |
Business And Organization [Line Items] | |
Parents interest, controlling | 92.00% |
ANG | |
Business And Organization [Line Items] | |
Parents interest, controlling | 69.00% |
PTGI-ICS | |
Business And Organization [Line Items] | |
Parents interest, controlling | 100.00% |
Insurance Companies | |
Business And Organization [Line Items] | |
Parents interest, controlling | 100.00% |
Genoval Orthopedics inc. | |
Business And Organization [Line Items] | |
Parents interest, controlling | 80.00% |
R2 Dermatology, Inc. | |
Business And Organization [Line Items] | |
Parents interest, controlling | 56.00% |
Medibeacon Inc., and Triple Ring Technologies, Inc | |
Business And Organization [Line Items] | |
Parents interest, controlling | 47.00% |
HC2 Broadcasting Holdings, Inc | |
Business And Organization [Line Items] | |
Parents interest, controlling | 98.00% |
DTV America | |
Business And Organization [Line Items] | |
Parents interest, controlling | 50.00% |
Minority Holders | |
Business And Organization [Line Items] | |
Percentage of ownership interest acquired | 10.00% |
GMH | |
Business And Organization [Line Items] | |
Parents interest, controlling | 73.00% |
Huawaei Marine Network [Member] | |
Business And Organization [Line Items] | |
Parents interest, controlling | 19.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounting Policies [Abstract] | ||||
Gain (loss) on embedded derivatives | $ 6.5 | $ (1.6) | $ 0.8 | $ 4 |
Gain on sale of equity method investments | 0.1 | 7.9 | 71.2 | 7.9 |
Other income (expense), net | 0.7 | (0.2) | 2.1 | (7.2) |
Total | $ 7.3 | $ 6.1 | $ 74.1 | $ 4.7 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | ||||
Cash and cash equivalents | $ 163.6 | $ 263 | $ 228.8 | $ 315.9 |
Restricted cash included in other assets | 1.7 | 1.5 | 1.6 | 5.4 |
Total cash and cash equivalents and restricted cash | 165.3 | 264.5 | $ 230.4 | $ 321.3 |
Supplemental cash flow information: | ||||
Cash paid for interest | 37.1 | 35.6 | ||
Cash paid for taxes, net of (refunds) | (12.7) | 6.6 | ||
Non-cash investing and financing activities: | ||||
Property, plant and equipment included in accounts payable | 3.1 | 3 | ||
Investments included in accounts payable | $ 10.1 | $ 14.6 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) | Feb. 28, 2020 | May 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 02, 2020 | Jan. 30, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Loss on sale of subsidiary | $ 0 | $ 0 | $ (39,300,000) | $ 0 | ||||||
Disposal of subsidiary | 0 | 0 | (22,100,000) | 0 | ||||||
Interest expense | 19,700,000 | 20,100,000 | 62,400,000 | 58,000,000 | ||||||
Amortization of (discount) premium on investments | 6,100,000 | 6,200,000 | ||||||||
New Saxon 2019 Limited | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Parents interest, controlling | 30.00% | 19.00% | 73.00% | |||||||
Marine Services | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Loss on sale of subsidiary | $ (39,300,000) | $ 31,800,000 | (39,300,000) | |||||||
Disposal of subsidiary | 31,300,000 | |||||||||
Secured Indenture | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Debt instrument, amount redeemed | $ 76,900,000 | |||||||||
Interest expense | 2,200,000 | 2,200,000 | 6,600,000 | |||||||
Secured Indenture | Marine Services | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Interest expense | 0 | |||||||||
Revolving Credit Agreement | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Face amount | $ 15,000,000 | $ 15,000,000 | ||||||||
Interest expense | $ 300,000 | $ 200,000 | $ 500,000 | |||||||
Revolving Credit Agreement | Marine Services | ||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||||
Interest expense | $ 0 |
Summarized operating results of
Summarized operating results of the discontinued operations (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Net revenue | $ 0 | $ 48.2 | $ 17.3 | $ 130 |
Cost of revenue | 0 | 35.7 | 18.2 | 99.5 |
Selling, general and administrative | 0 | 3.7 | 13.7 | 15.6 |
Depreciation and amortization | 0 | 6.4 | 3.8 | 19.4 |
Other operating expenses | 0 | 0.3 | 0 | 0.1 |
Loss from operations | 0 | 2.1 | (18.4) | (4.6) |
Interest expense | 0 | (3.9) | (3.6) | (11.3) |
Loss on sale of subsidiary | 0 | 0 | 39.3 | 0 |
(Loss) income from equity investees | 0 | 1.6 | 0.5 | 1.5 |
Other income | 0 | 0.7 | 0.9 | 0.7 |
Pre-tax loss from discontinued operations | 0 | 0.5 | (59.9) | (13.7) |
Income tax benefit (expense) | 0 | 0.1 | (0.1) | 0 |
Income (loss) from discontinued operations | $ 0 | $ 0.6 | $ (60) | $ (13.7) |
Summarized assets and liabiliti
Summarized assets and liabilities of the of discontinued operations (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Other invested assets | $ 16.9 | |
Cash and cash equivalents | 10.2 | |
Accounts receivable, net | 26 | |
Property, plant and equipment, net | 182.1 | |
Goodwill | 14.3 | |
Intangibles, net | 5.3 | |
Other assets | 68.5 | |
Total assets held for sale | $ 5.6 | 323.3 |
Liabilities | ||
Accounts payable and other current liabilities | 33.4 | |
Debt obligations | 65.6 | |
Pension Liability | 18.8 | |
Other liabilities | 36.1 | |
Total liabilities held for sale | $ 0.1 | $ 153.9 |
Discontinued Operations - Inter
Discontinued Operations - Interest and amortization (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest expense | $ 19.7 | $ 20.1 | $ 62.4 | $ 58 |
Revolving Credit Agreement | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest expense | 0.3 | 0.2 | 0.5 | |
Amortization of deferred financing costs and original issuance discount | 0.1 | 0.1 | 0.2 | |
Revolving Credit Agreement | Marine Services | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest expense | 0 | |||
Amortization of deferred financing costs and original issuance discount | 0 | |||
Secured Indenture | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest expense | 2.2 | 2.2 | 6.6 | |
Amortization of deferred financing costs and original issuance discount | $ 0.2 | $ 0.2 | $ 0.7 | |
Secured Indenture | Marine Services | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Interest expense | 0 | |||
Amortization of deferred financing costs and original issuance discount | $ 0 |
Revenue - Reconciliation of Rev
Revenue - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 317.2 | $ 349.3 | $ 1,000 | $ 1,112.3 |
Infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 160.7 | 168.2 | 508.9 | 555.8 |
Clean Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8.7 | 8.5 | 25.7 | 18.6 |
Telecommunications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 136.4 | 162.2 | 430.1 | 507 |
Spectrum | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 9.7 | 10 | 29.3 | 29.8 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 317.2 | 349.3 | ||
Operating Segments | Infrastructure | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 160.8 | 168.4 | 509.6 | 556.2 |
Operating Segments | Clean Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 10.3 | 8.7 | 31 | 19.3 |
Operating Segments | Telecommunications | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 136.4 | 162.2 | 430.1 | 507 |
Operating Segments | Spectrum | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 9.7 | $ 10 | $ 29.3 | $ 29.8 |
Revenue - Schedule of Accounts
Revenue - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total accounts receivables with customers | $ 242.9 | $ 290.7 |
Infrastructure | ||
Segment Reporting Information [Line Items] | ||
Total accounts receivables with customers | 170.4 | 199.2 |
Clean Energy | ||
Segment Reporting Information [Line Items] | ||
Total accounts receivables with customers | 15 | 31.1 |
Telecommunications | ||
Segment Reporting Information [Line Items] | ||
Total accounts receivables with customers | 50.7 | 51.9 |
Spectrum | ||
Segment Reporting Information [Line Items] | ||
Total accounts receivables with customers | $ 6.8 | $ 8.5 |
Revenue - Construction Segment
Revenue - Construction Segment Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 317.2 | $ 349.3 | $ 1,000 | $ 1,112.3 |
Net revenue | 393.3 | 427.5 | 1,215.1 | 1,355.7 |
Infrastructure | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 160.7 | 168.2 | 508.9 | 555.8 |
Other revenue | 0.1 | 0.2 | 0.7 | 0.4 |
Net revenue | 160.8 | 168.4 | 509.6 | 556.2 |
Infrastructure | Commercial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 48.2 | 50.6 | 165 | 162.9 |
Infrastructure | Convention | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 1.2 | 9.7 | 5 | 66.8 |
Infrastructure | Healthcare | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7.9 | 12.1 | 20.6 | 34.5 |
Infrastructure | Industrial | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 52.2 | 63.1 | 170.6 | 179.6 |
Infrastructure | Transportation | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 18.2 | 14.4 | 58 | 48.8 |
Infrastructure | Leisure | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 8.2 | 10.8 | 35.5 | 37.2 |
Infrastructure | Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 24.8 | $ 7.5 | $ 54.2 | $ 26 |
Revenue - Construction Segmen_2
Revenue - Construction Segment Contract with Customer, Asset and Liability (Details) - Infrastructure - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Contract assets | $ 48.2 | $ 50.6 |
Contract liabilities | $ (60.3) | $ (50.6) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - Infrastructure $ in Millions | Sep. 30, 2020USD ($) |
Revenue from External Customer [Line Items] | |
Change in contract assets costs in excess of billings, new commercial contracts | $ 22.2 |
Change in contract assets costs in excess of billings, transfer to receivables | 24.6 |
Change in contract liabilities costs in excess of billings, new commercial contracts | 50 |
Change in contract liabilities costs in excess of billings, transfer to receivables | 40.3 |
Remaining commitment obligations, amount | $ 13.3 |
Revenue - Schedule of Construct
Revenue - Schedule of Construction Segment Revenue (Details) - Infrastructure $ in Millions | Sep. 30, 2020USD ($) |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 422.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 392.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 30 |
Commercial | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 181.7 |
Commercial | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 156.7 |
Commercial | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 25 |
Convention | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 26.5 |
Convention | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 24.5 |
Convention | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 2 |
Healthcare | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 39.7 |
Healthcare | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 39.7 |
Healthcare | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 0 |
Industrial | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 47.3 |
Industrial | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 47.3 |
Industrial | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 0 |
Transportation | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 27.1 |
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 27.1 |
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 0 |
Leisure | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 14.7 |
Leisure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 14.7 |
Leisure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 0 |
Other | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 85.6 |
Other | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | 82.6 |
Other | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 3 |
Revenue - Energy Segment Disagg
Revenue - Energy Segment Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 317.2 | $ 349.3 | $ 1,000 | $ 1,112.3 |
Net revenue | 393.3 | 427.5 | 1,215.1 | 1,355.7 |
Clean Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8.7 | 8.5 | 25.7 | 18.6 |
Clean Energy incentives | 0.4 | 0.1 | 0.6 | 0.5 |
Alternative fuel tax credit | 1.2 | 0 | 3.9 | 0 |
Other revenue | 0 | 0.1 | 0.8 | 0.2 |
Net revenue | 10.3 | 8.7 | 31 | 19.3 |
Volume-related | Clean Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 8.7 | 8.5 | 25.7 | 18.5 |
Maintenance | Clean Energy | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 0 | $ 0 | $ 0 | $ 0.1 |
Revenue - Telecommunications Se
Revenue - Telecommunications Segment Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 317.2 | $ 349.3 | $ 1,000 | $ 1,112.3 |
Net revenue | 393.3 | 427.5 | 1,215.1 | 1,355.7 |
Telecommunications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 136.4 | 162.2 | 430.1 | 507 |
Other revenue | 0 | 0 | 0 | 0 |
Net revenue | 136.4 | 162.2 | 430.1 | 507 |
Telecommunications | Termination of long distance minutes | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 136.4 | $ 162.2 | $ 430.1 | $ 507 |
Revenue - Broadcasting Segment
Revenue - Broadcasting Segment Disaggregation of Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Segment Reporting Information [Line Items] | ||||
Revenue | $ 317.2 | $ 349.3 | $ 1,000 | $ 1,112.3 |
Net revenue | 393.3 | 427.5 | 1,215.1 | 1,355.7 |
Spectrum | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 9.7 | 10 | 29.3 | 29.8 |
Other revenue | 0 | 0 | 0 | 0 |
Net revenue | 9.7 | 10 | 29.3 | 29.8 |
Network advertising | Spectrum | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4.1 | 5.1 | 13.1 | 15.9 |
Broadcast station | Spectrum | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 4 | 3.1 | 11.3 | 8.7 |
Network distribution | Spectrum | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 1 | 1.1 | 3 | 3.8 |
Other | Spectrum | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 0.6 | $ 0.7 | $ 1.9 | $ 1.4 |
Revenue - Broadcasting Segmen_2
Revenue - Broadcasting Segment Remaining Unsatisfied Performance Obligations (Details) - Spectrum $ in Millions | Sep. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 5.4 |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 5 |
Remaining performance obligation period | 5 years |
Network advertising | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 3.2 |
Remaining performance obligation period | 1 year |
Network advertising | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 5 years |
Broadcast station | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 7 |
Remaining performance obligation period | 1 year |
Broadcast station | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 5 years |
Other | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 0.2 |
Remaining performance obligation period | 1 year |
Other | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 5 years |
Acquisitions, Dispositions, and
Acquisitions, Dispositions, and Deconsolidations - Other Segments (Details) - USD ($) $ in Thousands | Feb. 28, 2020 | Oct. 30, 2019 | May 31, 2020 | Jan. 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Jun. 30, 2020 | Jan. 30, 2020 |
Business Acquisition [Line Items] | ||||||||||
Dispositions | $ 0 | $ 0 | $ 22,100 | $ 0 | ||||||
Cash received from dispositions, net | 144,000 | 13,500 | ||||||||
Loss on sale of subsidiary | 0 | 0 | (39,300) | 0 | ||||||
Gain on sale of equity method investments | $ 100 | $ 7,900 | 71,200 | $ 7,900 | ||||||
Huawei Marine Networks | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Consideration to be received | $ 285,000 | |||||||||
Marine Services | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Dispositions | $ (31,300) | |||||||||
Ownership percentage before sale of stock | 100.00% | |||||||||
Consideration to be received | $ 140,000 | $ 250,000 | ||||||||
Potential earn-out, maximum | 12,500 | |||||||||
Consideration held in escrow for future losses payable | 1,250 | |||||||||
Consideration held of escrow for purchase price adjustment | 1,910 | |||||||||
Consideration to be paid on the earlier of December 31, 2020 or the date on which a cash collateralized bond in connection with Company's bonding facility is released | $ 2,400 | |||||||||
Cash received from dispositions, net | 144,000 | 85,500 | ||||||||
Proceeds from divestiture of businesses | 100,800 | |||||||||
Loss on sale of subsidiary | (39,300) | $ 31,800 | (39,300) | |||||||
Gain on sale of equity method investments | 71,100 | |||||||||
Foreign tax expense | 7,200 | |||||||||
Marine Services | Put Option | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Gain on sale of equity method investments | 11,300 | |||||||||
Marine Services | Non- controlling Interest | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash received from dispositions, net | 17,500 | |||||||||
Cash Divested from Deconsolidation | 36,800 | |||||||||
Marine Services | Noncontrolling Interest Redeemable | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash received from dispositions, net | $ 2,100 | |||||||||
Cash Divested from Deconsolidation | $ 5,500 | |||||||||
Marine Services | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Parents interest, controlling | 49.00% | 30.00% | ||||||||
New Saxon 2019 Limited | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Parents interest, controlling | 30.00% | 19.00% | 73.00% | |||||||
Huawei Marine Networks | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Ownership percentage before sale of stock | 49.00% |
Acquisitions, Dispositions, a_2
Acquisitions, Dispositions, and Deconsolidations - Energy Acquisitions (Details) - ampCNG | Jun. 14, 2019USD ($)security$ / shares |
Clean Energy | |
Business Acquisition [Line Items] | |
Number of natural gas fueling stations acquired | security | 20 |
Consideration transferred | $ 41,200,000 |
Number of natural gas fueling stations | security | 60 |
ANG | Term Loan | |
Business Acquisition [Line Items] | |
Face amount | $ 28,000,000 |
Duration of warrants | 10 years |
Preferred stock and warrants issued for common stock | $ 14,000,000 |
Interest rate (as a percent) | 14.00% |
Redemption period | 4 years |
Exercise price of warrants (in dollars per share) | $ / shares | $ 0.001 |
Percentage of warrants during time of exercise | 6.00% |
Proceeds from warrant exercises | $ 5,000,000 |
Acquisitions, Dispositions, a_3
Acquisitions, Dispositions, and Deconsolidations - Broadcasting Acquisitions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Spectrum | |
Business Acquisition [Line Items] | |
Consideration paid | $ 71.4 |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 3,920.9 | |
Unrealized Losses | (106.1) | $ (33.4) |
Fair Value | 4,295.2 | 4,028.9 |
Total fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,920.9 | 3,745.3 |
Unrealized Gains | 480.4 | 317 |
Unrealized Losses | (106.1) | (33.4) |
Fair Value | 4,295.2 | 4,028.9 |
U.S. Government and government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7.3 | 7 |
Unrealized Gains | 1.2 | 0.7 |
Unrealized Losses | 0 | 0 |
Fair Value | 8.5 | 7.7 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 375.2 | 405.4 |
Unrealized Gains | 54.5 | 34.7 |
Unrealized Losses | 0 | 0 |
Fair Value | 429.7 | 440.1 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 53.4 | 63 |
Unrealized Gains | 4.7 | 4.5 |
Unrealized Losses | (1.1) | (0.6) |
Fair Value | 57 | 66.9 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 109.2 | 108.2 |
Unrealized Gains | 1.4 | 1.8 |
Unrealized Losses | (16.6) | (0.6) |
Fair Value | 94 | 109.4 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 528.2 | 592.6 |
Unrealized Gains | 3 | 2.2 |
Unrealized Losses | (33.9) | (17) |
Fair Value | 497.3 | 577.8 |
Corporate and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,847.6 | 2,569.1 |
Unrealized Gains | 415.6 | 273.1 |
Unrealized Losses | (54.5) | (15.2) |
Fair Value | $ 3,208.7 | $ 2,827 |
Investments - Schedule of Matur
Investments - Schedule of Maturities of Fixed Maturity Securities Available-for-Sale (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Amortized Cost | $ 3,920.9 | |
Fair Value | ||
Fair Value | 4,295.2 | $ 4,028.9 |
Corporate, Municipal, U.S. Government and Other securities | ||
Amortized Cost | ||
Due in one year or less | 44.8 | |
Due after one year through five years | 266.6 | |
Due after five years through ten years | 439.6 | |
Due after ten years | 2,479.1 | |
Subtotal | 3,230.1 | |
Fair Value | ||
Due in one year or less | 45.3 | |
Due after one year through five years | 276.4 | |
Due after five years through ten years | 466.3 | |
Due after ten years | 2,858.9 | |
Subtotal | 3,646.9 | |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost, without single maturity date | 162.6 | |
Fair Value | ||
Fair value, without single maturity date | 151 | |
Asset-backed securities | ||
Amortized Cost | ||
Amortized cost, without single maturity date | 528.2 | |
Amortized Cost | 528.2 | 592.6 |
Fair Value | ||
Fair value, without single maturity date | 497.3 | |
Fair Value | $ 497.3 | $ 577.8 |
Investments - Schedule of Major
Investments - Schedule of Major Industry Types of Fixed Maturity Holdings (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 3,920.9 | |
Fair Value | 4,295.2 | $ 4,028.9 |
Corporate And Other Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,847.6 | 2,569.1 |
Fair Value | $ 3,208.7 | $ 2,827 |
Percentage of Total | 100.00% | 100.00% |
Finance, insurance, and real estate | Corporate And Other Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,013.5 | $ 632.2 |
Fair Value | $ 1,060.4 | $ 674.9 |
Percentage of Total | 33.10% | 23.80% |
Transportation, communication and other services | Corporate And Other Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 677.4 | $ 785.7 |
Fair Value | $ 757.8 | $ 855.2 |
Percentage of Total | 23.60% | 30.30% |
Manufacturing | Corporate And Other Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 700.6 | $ 728.7 |
Fair Value | $ 854.9 | $ 825.9 |
Percentage of Total | 26.60% | 29.20% |
Other | Corporate And Other Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 456.1 | $ 422.5 |
Fair Value | $ 535.6 | $ 471 |
Percentage of Total | 16.70% | 16.70% |
Investments - Other than Tempor
Investments - Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||||
Total other-than-temporary impairments | $ 4.9 | $ 0 | $ 5.9 | $ 0 |
Net realized and unrealized gains on investments | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total other-than-temporary impairments | 4.9 | 0 | 5.8 | 0 |
Other income (expenses), net | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Total other-than-temporary impairments | $ 0 | $ 0 | $ 0.1 | $ 0 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Losses for Fixed Maturities and Equity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Fixed Maturity Securities, Unrealized Losses | ||
Less than 20% | $ (65.7) | $ (32.6) |
20% or more for less than six months | (21.8) | 0 |
20% or more for six months or greater | (18.6) | (0.8) |
Total | $ (106.1) | $ (33.4) |
Fixed Maturity Securiites, Percentage of Sales | ||
Less than 20% | 62.00% | 97.60% |
20% or more for less than six months | 20.50% | 0.00% |
20% or more for six months or greater | 17.50% | 2.40% |
Total | 100.00% | 100.00% |
Investments - Narrative (Detail
Investments - Narrative (Details) - security | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Number of fixed maturity and equity securities | 185 | 139 |
Percentage of gross unrealized loss | 100.00% | 100.00% |
Total fixed maturity securities | Investment grade | ||
Debt Securities, Available-for-sale [Line Items] | ||
Percentage of gross unrealized loss | 68.60% | 68.30% |
Percentage of fair value | 86.70% | 81.80% |
Investments - Schedule of Estim
Investments - Schedule of Estimated Fair Values and Gross Unrealized Losses (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Less than 12 months | ||
Fair Value | $ 731.3 | $ 358.8 |
Unrealized Losses | (56.7) | (5.8) |
12 months or greater | ||
Fair Value | 272.7 | 441.6 |
Unrealized Losses | (49.4) | (27.6) |
Fair Value | 1,004 | 800.4 |
Unrealized Losses | (106.1) | (33.4) |
U.S. Government and government agencies | ||
Less than 12 months | ||
Fair Value | 0.3 | |
Unrealized Losses | 0 | |
12 months or greater | ||
Fair Value | 0 | |
Unrealized Losses | 0 | |
Fair Value | 0.3 | |
Unrealized Losses | 0 | |
States, municipalities and political subdivisions | ||
Less than 12 months | ||
Fair Value | 3.6 | 2 |
Unrealized Losses | 0 | 0 |
12 months or greater | ||
Fair Value | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 3.6 | 2 |
Unrealized Losses | 0 | 0 |
Residential mortgage-backed securities | ||
Less than 12 months | ||
Fair Value | 5.3 | 2.3 |
Unrealized Losses | (0.5) | 0 |
12 months or greater | ||
Fair Value | 5.4 | 8.2 |
Unrealized Losses | (0.6) | (0.6) |
Fair Value | 10.7 | 10.5 |
Unrealized Losses | (1.1) | (0.6) |
Commercial mortgage-backed securities | ||
Less than 12 months | ||
Fair Value | 57 | 58.1 |
Unrealized Losses | (16.6) | (0.6) |
12 months or greater | ||
Fair Value | 0.2 | 0.2 |
Unrealized Losses | 0 | 0 |
Fair Value | 57.2 | 58.3 |
Unrealized Losses | (16.6) | (0.6) |
Asset-backed securities | ||
Less than 12 months | ||
Fair Value | 197.2 | 126.5 |
Unrealized Losses | (10.2) | (1.5) |
12 months or greater | ||
Fair Value | 162 | 255.8 |
Unrealized Losses | (23.7) | (15.5) |
Fair Value | 359.2 | 382.3 |
Unrealized Losses | (33.9) | (17) |
Corporate and other | ||
Less than 12 months | ||
Fair Value | 468.2 | 169.6 |
Unrealized Losses | (29.4) | (3.7) |
12 months or greater | ||
Fair Value | 105.1 | 177.4 |
Unrealized Losses | (25.1) | (11.5) |
Fair Value | 573.3 | 347 |
Unrealized Losses | $ (54.5) | $ (15.2) |
Investments - Equity Securities
Investments - Equity Securities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Total equity securities | $ 74.2 | $ 92.5 |
Common stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total equity securities | 4.4 | 10.5 |
Perpetual preferred stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total equity securities | $ 69.8 | $ 82 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Investment Income [Line Items] | ||||
Gross investment income | $ 46.9 | $ 51.6 | $ 148 | $ 153.5 |
External investment expense | (0.2) | (0.4) | (0.9) | (0.9) |
Net investment income | 46.7 | 51.2 | 147.1 | 152.6 |
Total fixed maturity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 43.5 | 45.2 | 134.1 | 132.5 |
Equity securities | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 0.5 | 1.9 | 2.4 | 6.5 |
Mortgage loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 2.7 | 3.4 | 11.2 | 10.2 |
Policy loans | ||||
Net Investment Income [Line Items] | ||||
Gross investment income | 0.3 | 0.3 | 0.9 | 0.9 |
Other invested assets | ||||
Net Investment Income [Line Items] | ||||
Other invested assets | $ (0.1) | $ 0.8 | $ (0.6) | $ 3.4 |
Investments - Net Realized Gain
Investments - Net Realized Gain (Loss) on Investments (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Realized gains on fixed maturity securities | $ 3.3 | $ 1.4 | $ 15.3 | $ 6.4 |
Realized losses on fixed maturity securities | (2.3) | (2.9) | (15.4) | (8) |
Realized gains on equity securities | 0 | 1.4 | 0.2 | 1.8 |
Realized losses on equity securities | (2.2) | (0.1) | (2.3) | (1.2) |
Realized gains on mortgage loans | 1.9 | 1 | 2.1 | 1 |
Net unrealized gains (losses) on equity securities | 4.6 | (1.6) | (13.9) | 4.2 |
Net unrealized gains (losses) on derivative instruments | 0.4 | (1.1) | 1 | (2.1) |
Impairment loss | (4.9) | 0 | (5.8) | 0 |
Net realized and unrealized gains (losses) | $ 0.8 | $ (1.9) | $ (18.8) | $ 2.1 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | $ 4,295.2 | $ 4,028.9 | ||||
Equity securities | 74.2 | 92.5 | ||||
Liabilities | ||||||
Other | 0.6 | |||||
Total liabilities accounted for at fair value | 6.9 | $ 12.6 | 7.8 | $ 9.9 | $ 8.3 | $ 11.9 |
U.S. Government and government agencies | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 8.5 | 7.7 | ||||
States, municipalities and political subdivisions | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 429.7 | 440.1 | ||||
Residential mortgage-backed securities | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 57 | 66.9 | ||||
Commercial mortgage-backed securities | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 94 | 109.4 | ||||
Asset-backed securities | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 497.3 | 577.8 | ||||
Corporate and other | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 3,208.7 | 2,827 | ||||
Common Stock | ||||||
Assets | ||||||
Equity securities | 4.4 | 10.5 | ||||
Perpetual preferred stocks | ||||||
Assets | ||||||
Equity securities | 69.8 | 82 | ||||
Recurring | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 4,295.2 | 4,028.9 | ||||
Equity securities | 74.2 | 92.5 | ||||
Total assets accounted for at fair value | 4,369.4 | 4,121.4 | ||||
Liabilities | ||||||
Embedded derivative | 2.2 | 3 | ||||
Other | 4.7 | 4.8 | ||||
Total liabilities accounted for at fair value | 6.9 | 7.8 | ||||
Recurring | Level 1 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 48.5 | 51.3 | ||||
Equity securities | 8.9 | 12.1 | ||||
Total assets accounted for at fair value | 57.4 | 63.4 | ||||
Liabilities | ||||||
Embedded derivative | 0 | 0 | ||||
Other | 0 | 0 | ||||
Total liabilities accounted for at fair value | 0 | 0 | ||||
Recurring | Level 2 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 3,521.4 | 3,272.2 | ||||
Equity securities | 20.1 | 22.8 | ||||
Total assets accounted for at fair value | 3,541.5 | 3,295 | ||||
Liabilities | ||||||
Embedded derivative | 0 | 0 | ||||
Other | 0 | 0 | ||||
Total liabilities accounted for at fair value | 0 | 0 | ||||
Recurring | Level 3 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 725.3 | 705.4 | ||||
Equity securities | 45.2 | 57.6 | ||||
Total assets accounted for at fair value | 770.5 | 763 | ||||
Liabilities | ||||||
Embedded derivative | 2.2 | 3 | ||||
Other | 4.7 | 4.8 | ||||
Total liabilities accounted for at fair value | 6.9 | 7.8 | ||||
Recurring | U.S. Government and government agencies | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 8.5 | 7.7 | ||||
Recurring | U.S. Government and government agencies | Level 1 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 5.4 | 4.8 | ||||
Recurring | U.S. Government and government agencies | Level 2 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 3.1 | 2.9 | ||||
Recurring | U.S. Government and government agencies | Level 3 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 0 | 0 | ||||
Recurring | States, municipalities and political subdivisions | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 429.7 | 440.1 | ||||
Recurring | States, municipalities and political subdivisions | Level 1 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 0 | 0 | ||||
Recurring | States, municipalities and political subdivisions | Level 2 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 427.7 | 440.1 | ||||
Recurring | States, municipalities and political subdivisions | Level 3 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 2 | 0 | ||||
Recurring | Residential mortgage-backed securities | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 57 | 66.9 | ||||
Recurring | Residential mortgage-backed securities | Level 1 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 0 | 0 | ||||
Recurring | Residential mortgage-backed securities | Level 2 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 47.5 | 57.7 | ||||
Recurring | Residential mortgage-backed securities | Level 3 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 9.5 | 9.2 | ||||
Recurring | Commercial mortgage-backed securities | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 94 | 109.4 | ||||
Recurring | Commercial mortgage-backed securities | Level 1 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 0 | 0 | ||||
Recurring | Commercial mortgage-backed securities | Level 2 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 39.8 | 74.8 | ||||
Recurring | Commercial mortgage-backed securities | Level 3 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 54.2 | 34.6 | ||||
Recurring | Asset-backed securities | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 497.3 | 577.8 | ||||
Recurring | Asset-backed securities | Level 1 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 0 | 0 | ||||
Recurring | Asset-backed securities | Level 2 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 29.5 | 27.2 | ||||
Recurring | Asset-backed securities | Level 3 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 467.8 | 550.6 | ||||
Recurring | Corporate and other | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 3,208.7 | 2,827 | ||||
Recurring | Corporate and other | Level 1 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 43.1 | 46.5 | ||||
Recurring | Corporate and other | Level 2 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 2,973.8 | 2,669.5 | ||||
Recurring | Corporate and other | Level 3 | ||||||
Assets | ||||||
Fixed maturity securities, available-for-sale at fair value | 191.8 | 111 | ||||
Recurring | Common Stock | ||||||
Assets | ||||||
Equity securities | 4.4 | 10.5 | ||||
Recurring | Common Stock | Level 1 | ||||||
Assets | ||||||
Equity securities | 4 | 7.1 | ||||
Recurring | Common Stock | Level 2 | ||||||
Assets | ||||||
Equity securities | 0 | 0 | ||||
Recurring | Common Stock | Level 3 | ||||||
Assets | ||||||
Equity securities | 0.4 | 3.4 | ||||
Recurring | Perpetual preferred stocks | ||||||
Assets | ||||||
Equity securities | 69.8 | 82 | ||||
Recurring | Perpetual preferred stocks | Level 1 | ||||||
Assets | ||||||
Equity securities | 4.9 | 5 | ||||
Recurring | Perpetual preferred stocks | Level 2 | ||||||
Assets | ||||||
Equity securities | 20.1 | 22.8 | ||||
Recurring | Perpetual preferred stocks | Level 3 | ||||||
Assets | ||||||
Equity securities | $ 44.8 | $ 54.2 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers, net | $ 76.7 | $ (41.6) |
Level 3 | Assets, Total | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Percent of total assets (less than) | 1.00% |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Schedule of Changes in Balances of Level 3 Financial Assets (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | $ 754.5 | $ 715.3 | $ 763 | $ 701.6 |
Net earnings (loss) | (7.2) | (1.4) | (12.6) | (6.6) |
Other comp. income (loss) | 24.1 | (4.2) | (37.5) | 18.5 |
Purchases and issuances | 29.4 | 16.7 | 125.3 | 135.6 |
Sales and settlements | (52.9) | (59.5) | (144.4) | (255.9) |
Transfer to Level 3 | 28.2 | 14.2 | 316.9 | 132 |
Transfer out of Level 3 | (5.6) | (129.5) | (240.2) | (173.6) |
Balance at end of period | 770.5 | 551.6 | 770.5 | 551.6 |
Changes in balances of Level 3 financial liabilities | ||||
Balance at beginning of period | 12.6 | 8.3 | 7.8 | 11.9 |
Net earnings (loss) | (5.7) | 1.6 | (0.9) | (5) |
Other comp. income (loss) | 0 | 0 | 0 | 0 |
Purchases and issuances | 0 | 0 | 0 | 3 |
Sales and settlements | 0 | 0 | 0 | 0 |
Transfer to Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 6.9 | 9.9 | 6.9 | 9.9 |
Total fixed maturity securities | ||||
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | 709.1 | 653.3 | 705.4 | 640.4 |
Net earnings (loss) | (6.1) | (0.7) | (11.9) | (2.4) |
Other comp. income (loss) | 23.2 | (2.8) | (24.1) | 19.9 |
Purchases and issuances | 29.4 | 16.7 | 125.3 | 133.1 |
Sales and settlements | (52.9) | (56.7) | (144.4) | (252.1) |
Transfer to Level 3 | 28.2 | 14.2 | 315.2 | 129 |
Transfer out of Level 3 | (5.6) | (129.5) | (240.2) | (173.4) |
Balance at end of period | 725.3 | 494.5 | 725.3 | 494.5 |
States, municipalities and political subdivisions | ||||
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | 3 | 3.7 | 0 | 0 |
Net earnings (loss) | 0 | 0 | 0.2 | 0 |
Other comp. income (loss) | (0.3) | 0.1 | 0.6 | 0.1 |
Purchases and issuances | 0 | 0 | 0 | 0 |
Sales and settlements | (3) | 0 | (3) | (0.5) |
Transfer to Level 3 | 2.3 | 0 | 15.2 | 4.2 |
Transfer out of Level 3 | 0 | (3.8) | (11) | (3.8) |
Balance at end of period | 2 | 0 | 2 | 0 |
Residential mortgage-backed securities | ||||
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | 9.6 | 12.5 | 9.2 | 19 |
Net earnings (loss) | 0 | 0 | 0 | 0 |
Other comp. income (loss) | 0.4 | (0.1) | (1.2) | 0.2 |
Purchases and issuances | 0 | 0 | 0 | 0 |
Sales and settlements | (0.5) | (0.7) | (2) | (1.5) |
Transfer to Level 3 | 0 | 0 | 6.8 | 0 |
Transfer out of Level 3 | 0 | (3.5) | (3.3) | (9.5) |
Balance at end of period | 9.5 | 8.2 | 9.5 | 8.2 |
Commercial mortgage-backed securities | ||||
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | 51.1 | 66.4 | 34.6 | 58.2 |
Net earnings (loss) | (2.1) | 0.2 | (2) | 0.2 |
Other comp. income (loss) | 5.4 | 1.3 | (8) | 3.4 |
Purchases and issuances | 0 | 0 | 0 | 7.5 |
Sales and settlements | (0.2) | (7.4) | (0.4) | (7.9) |
Transfer to Level 3 | 0 | 0 | 30 | 0 |
Transfer out of Level 3 | 0 | 0 | 0 | (0.9) |
Balance at end of period | 54.2 | 60.5 | 54.2 | 60.5 |
Asset-backed securities | ||||
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | 502.8 | 412.6 | 550.6 | 478.2 |
Net earnings (loss) | (1.2) | (0.5) | (7.1) | (2.1) |
Other comp. income (loss) | 12.9 | (6.3) | (14.8) | 11.7 |
Purchases and issuances | 0.1 | 13.6 | 60.1 | 102.1 |
Sales and settlements | (46.8) | (38.3) | (132.5) | (214.4) |
Transfer to Level 3 | 0 | 14.2 | 191.8 | 19.8 |
Transfer out of Level 3 | 0 | (76.4) | (180.3) | (76.4) |
Balance at end of period | 467.8 | 318.9 | 467.8 | 318.9 |
Corporate and other | ||||
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | 142.6 | 158.1 | 111 | 85 |
Net earnings (loss) | (2.8) | (0.4) | (3) | (0.5) |
Other comp. income (loss) | 4.8 | 2.2 | (0.7) | 4.5 |
Purchases and issuances | 29.3 | 3.1 | 65.2 | 23.5 |
Sales and settlements | (2.4) | (10.3) | (6.5) | (27.8) |
Transfer to Level 3 | 25.9 | 0 | 71.4 | 105 |
Transfer out of Level 3 | (5.6) | (45.8) | (45.6) | (82.8) |
Balance at end of period | 191.8 | 106.9 | 191.8 | 106.9 |
Equity securities | ||||
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | 45.4 | 62 | 57.6 | 61.2 |
Net earnings (loss) | (1.1) | (0.7) | (0.7) | (4.2) |
Other comp. income (loss) | 0.9 | (1.4) | (13.4) | (1.4) |
Purchases and issuances | 0 | 0 | 0 | 2.5 |
Sales and settlements | 0 | (2.8) | 0 | (3.8) |
Transfer to Level 3 | 0 | 0 | 1.7 | 3 |
Transfer out of Level 3 | 0 | 0 | 0 | (0.2) |
Balance at end of period | 45.2 | 57.1 | 45.2 | 57.1 |
Common Stock | ||||
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | 1.5 | 4.9 | 3.4 | 5.9 |
Net earnings (loss) | (1.1) | (0.5) | (3) | (0.3) |
Other comp. income (loss) | 0 | 0.1 | 0 | 0.1 |
Purchases and issuances | 0 | 0 | 0 | 0 |
Sales and settlements | 0 | (0.2) | 0 | (1.2) |
Transfer to Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 | 0 | (0.2) |
Balance at end of period | 0.4 | 4.3 | 0.4 | 4.3 |
Perpetual preferred stocks | ||||
Changes in balances of Level 3 financial assets | ||||
Balance at beginning of period | 43.9 | 57.1 | 54.2 | 55.3 |
Net earnings (loss) | 0 | (0.2) | 2.3 | (3.9) |
Other comp. income (loss) | 0.9 | (1.5) | (13.4) | (1.5) |
Purchases and issuances | 0 | 0 | 0 | 2.5 |
Sales and settlements | 0 | (2.6) | 0 | (2.6) |
Transfer to Level 3 | 0 | 0 | 1.7 | 3 |
Transfer out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 44.8 | 52.8 | 44.8 | 52.8 |
Embedded derivatives | ||||
Changes in balances of Level 3 financial liabilities | ||||
Balance at beginning of period | 8.7 | 2.9 | 3 | 8.4 |
Net earnings (loss) | (6.5) | 1.6 | (0.8) | (3.9) |
Other comp. income (loss) | 0 | 0 | 0 | 0 |
Purchases and issuances | 0 | 0 | 0 | 0 |
Sales and settlements | 0 | 0 | 0 | 0 |
Transfer to Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | 2.2 | 4.5 | 2.2 | 4.5 |
Other | ||||
Changes in balances of Level 3 financial liabilities | ||||
Balance at beginning of period | 3.9 | 5.4 | 4.8 | 3.5 |
Net earnings (loss) | 0.8 | 0 | (0.1) | (1.1) |
Other comp. income (loss) | 0 | 0 | 0 | 0 |
Purchases and issuances | 0 | 0 | 0 | 3 |
Sales and settlements | 0 | 0 | 0 | 0 |
Transfer to Level 3 | 0 | 0 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 | 0 | 0 |
Balance at end of period | $ 4.7 | $ 5.4 | $ 4.7 | $ 5.4 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Schedule of Financial Instruments Measured on Not Measured at Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Mortgage loans | $ 121.1 | $ 183.5 |
Policy loans | 18.2 | 19.1 |
Other invested assets | 60.7 | 68.1 |
Nonrecurring | Level 1 | ||
Assets | ||
Other invested assets | 0 | |
Nonrecurring | Level 2 | ||
Assets | ||
Other invested assets | 0 | |
Nonrecurring | Level 3 | ||
Assets | ||
Other invested assets | 11.3 | |
Nonrecurring | Estimated Fair Value | ||
Assets | ||
Mortgage loans | 121.1 | 183.5 |
Policy loans | 18.2 | 19.1 |
Other invested assets | 11.3 | |
Total assets accounted for at fair value | 150.6 | 202.6 |
Liabilities | ||
Annuity benefits accumulated | 228.4 | 231 |
Long-term obligations | 643.7 | 768.9 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 872.1 | 999.9 |
Nonrecurring | Estimated Fair Value | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Total assets accounted for at fair value | 0 | 0 |
Liabilities | ||
Annuity benefits accumulated | 0 | 0 |
Long-term obligations | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 |
Nonrecurring | Estimated Fair Value | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 18.2 | 19.1 |
Total assets accounted for at fair value | 18.2 | 19.1 |
Liabilities | ||
Annuity benefits accumulated | 0 | 0 |
Long-term obligations | 643.7 | 768.9 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 643.7 | 768.9 |
Nonrecurring | Estimated Fair Value | Level 3 | ||
Assets | ||
Mortgage loans | 121.1 | 183.5 |
Policy loans | 0 | 0 |
Total assets accounted for at fair value | 132.4 | 183.5 |
Liabilities | ||
Annuity benefits accumulated | 228.4 | 231 |
Long-term obligations | 0 | 0 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 228.4 | 231 |
Nonrecurring | Carrying Value | ||
Assets | ||
Mortgage loans | 121.1 | 183.5 |
Policy loans | 18.2 | 19.1 |
Other invested assets | 11.3 | |
Total assets accounted for at fair value | 150.6 | 202.6 |
Liabilities | ||
Annuity benefits accumulated | 228.1 | 233.9 |
Long-term obligations | 647.5 | 772 |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 875.6 | $ 1,005.9 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Contracts in progress | $ 121.8 | $ 177.8 |
Trade receivables | 57.9 | 60.6 |
Unbilled retentions | 64.6 | 53.9 |
Other receivables | 9.4 | 21 |
Allowance for doubtful accounts | (1.4) | (1.5) |
Total accounts receivable, net | $ 252.3 | $ 311.8 |
Recoverable from Reinsurers (De
Recoverable from Reinsurers (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Ceded Credit Risk [Line Items] | ||
Amount | $ 961.4 | $ 953.7 |
Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 100.00% | 100.00% |
Munich American Reassurance Company | A+ | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 362.2 | $ 347.6 |
Munich American Reassurance Company | A+ | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 37.60% | 36.40% |
Hannover Life Reassurance Company of America | A+ | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 314.7 | $ 323.3 |
Hannover Life Reassurance Company of America | A+ | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 32.70% | 33.90% |
Loyal American Life Insurance Company | A | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 150 | $ 147.5 |
Loyal American Life Insurance Company | A | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 15.60% | 15.50% |
Great American Life Insurance Company | A | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 56.7 | $ 56.2 |
Great American Life Insurance Company | A | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 5.90% | 5.90% |
ManhattanLife Assurance Company of America | B+ | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 46.7 | $ 47 |
ManhattanLife Assurance Company of America | B+ | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 4.90% | 4.90% |
Other | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 31.1 | $ 32.1 |
Other | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 3.30% | 3.40% |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net - Summary of Property, Plant, and Equipment, net (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 307.6 | $ 299.7 |
Less: Accumulated depreciation | 93.8 | 76 |
Property, plant and equipment, net | 213.8 | 223.7 |
Equipment, furniture and fixtures, and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 221 | 212.8 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 41.3 | 40.1 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 36.5 | 36.8 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3.9 | 4.8 |
Plant and transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4.9 | $ 5.2 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Property, Plant and Equipment [Line Items] | ||||
Depreciation expense | $ 7.2 | $ 7.3 | $ 21 | $ 19.9 |
Depreciation expense with cost of revenue | $ 2.3 | $ 2.2 | $ 6.9 | $ 6.7 |
Goodwill and Intangibles, net -
Goodwill and Intangibles, net - Changes in the Carrying Amount of Goodwill (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 112.5 |
Translation | 0.2 |
Ending balance | 112.7 |
Infrastructure | |
Goodwill [Roll Forward] | |
Beginning balance | 89 |
Translation | 0.2 |
Ending balance | 89.2 |
Clean Energy | |
Goodwill [Roll Forward] | |
Beginning balance | 2.1 |
Translation | 0 |
Ending balance | 2.1 |
Spectrum | |
Goodwill [Roll Forward] | |
Beginning balance | 21.4 |
Translation | 0 |
Ending balance | $ 21.4 |
Goodwill and Intangibles, net_2
Goodwill and Intangibles, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
FCC license decrease | $ 6.9 | ||||
Amortization expense | $ 2 | $ 2.9 | 6 | $ 8.9 | |
Negative amortization | $ 28.6 | $ 28.6 | $ 22.5 |
Goodwill and Intangibles, net_3
Goodwill and Intangibles, net - Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 131.8 | $ 138.7 |
FCC licenses | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 129.3 | 136.2 |
State licenses | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 2.5 | $ 2.5 |
Goodwill and Intangibles, net_4
Goodwill and Intangibles, net - Definite Lived Intangible Assets (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 99 | $ 105.5 |
Accumulated Amortization | (28.6) | (22.5) |
Net | $ 70.4 | 83 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Original Useful Life | 13 years | |
Gross Carrying Amount | $ 24.3 | 24.2 |
Accumulated Amortization | (8.2) | (6.6) |
Net | $ 16.1 | 17.6 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Original Useful Life | 10 years | |
Gross Carrying Amount | $ 48.6 | 48.6 |
Accumulated Amortization | (16.5) | (13.1) |
Net | $ 32.1 | 35.5 |
Channel sharing arrangements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Original Useful Life | 35 years | |
Gross Carrying Amount | $ 20.2 | 27.2 |
Accumulated Amortization | (1.5) | (0.9) |
Net | $ 18.7 | 26.3 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Original Useful Life | 7 years | |
Gross Carrying Amount | $ 5.9 | 5.5 |
Accumulated Amortization | (2.4) | (1.9) |
Net | $ 3.5 | $ 3.6 |
Goodwill and Intangibles, net_5
Goodwill and Intangibles, net - Estimated Amortization Expense (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2020 | $ 2.2 | |
2021 | 7.5 | |
2022 | 7.4 | |
2023 | 7.3 | |
2024 | 6.8 | |
Thereafter | 39.2 | |
Net | $ 70.4 | $ 83 |
Life, Accident and Health Res_3
Life, Accident and Health Reserves - By Product Line (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Total life, accident and health reserves | $ 4,622.9 | $ 4,567.1 |
Long-term care insurance reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Total life, accident and health reserves | 4,262.2 | 4,201.6 |
Traditional life insurance reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Total life, accident and health reserves | 167.1 | 173.4 |
Other accident and health insurance reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Total life, accident and health reserves | $ 193.6 | $ 192.1 |
Life, Accident and Health Res_4
Life, Accident and Health Reserves - Liability for Claims of Long-Term Care Insurance Reserves (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 4,567.1 | |
Paid related to insured events of: | ||
Ending balance | 4,622.9 | |
Other Long Duration Insurance Product Line | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | 761.3 | $ 738.5 |
Less: recoverable from reinsurers | (131) | (136.4) |
Beginning balance, net | 630.3 | 602.1 |
Incurred related to insured events of: | ||
Current year | 166.3 | 159.2 |
Prior years | (34.2) | (46.9) |
Total incurred | 132.1 | 112.3 |
Paid related to insured events of: | ||
Current year | (8.9) | (8.4) |
Prior years | (119.4) | (106.9) |
Total paid | (128.3) | (115.3) |
Interest on liability for policy and contract claims | 17 | 16.2 |
Ending balance, net | 651.1 | 615.3 |
Add: recoverable from reinsurers | 137.2 | 129.6 |
Ending balance | $ 788.3 | $ 744.9 |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 97.7 | $ 134.6 |
Accrued expenses and other current liabilities | 67.7 | 75.2 |
Accrued interconnection costs | 42.2 | 43.5 |
Accrued payroll and employee benefits | 43.7 | 39.6 |
Accrued interest | 26.5 | 11.3 |
Accrued income taxes | 20.8 | 2 |
Total accounts payable and other current liabilities | $ 298.6 | $ 306.2 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Debt (Details) - USD ($) $ in Millions | 1 Months Ended | 9 Months Ended | |||
Aug. 31, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | |||||
Total lease liability balance | $ 1 | $ 1.7 | |||
Total aggregate finance lease and debt payments | 665 | 805 | |||
Issuance discount, net and deferred financing costs | (18.6) | (31.4) | |||
Total debt obligations | $ 646.4 | 773.6 | |||
Payments for preferred stock | $ 14 | ||||
11.50% Senior Secured Notes, due 2021 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 76.9 | $ 50.6 | |||
Interest rate (as a percent) | 11.50% | ||||
LIBOR | DBM Global Credit Facilities | LIBOR plus 5.85% Note, due 2023 | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 5.85% | ||||
LIBOR | DBM Global Credit Facilities | LIBOR plus 1.50% Line of Credit | Real Estate Term Advance | Revolving Credit Facility | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 150.00% | ||||
Infrastructure | LIBOR | LIBOR plus 5.85% Note, due 2023 | Real Estate Term Advance | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 73.6 | 77 | |||
Infrastructure | LIBOR | LIBOR plus 1.50% Line of Credit | Real Estate Term Advance | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | 29.5 | 48.9 | |||
Infrastructure | LIBOR | Obligations under finance leases | Real Estate Term Advance | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | 0.2 | 0.2 | |||
Clean Energy | Obligations under finance leases | |||||
Debt Instrument [Line Items] | |||||
Other, various maturity dates | 0.4 | 2.4 | |||
Clean Energy | LIBOR plus 3.0% Term Loan due in 2023 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | 0 | 27.1 | |||
Clean Energy | 5.00% Term Loan due in 2022 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 0 | 11.2 | |||
Interest rate (as a percent) | 5.00% | ||||
Clean Energy | 4.50% Note due in 2022 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 0 | 10.2 | |||
Interest rate (as a percent) | 4.50% | ||||
Clean Energy | 5.00% Term Loan due in 2024 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | 57 | 0 | |||
Interest rate (as a percent) | 5.00% | ||||
Clean Energy | Term Loan Delayed Draw | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 8 | ||||
Clean Energy | LIBOR | American Natural Gas [Member] | LIBOR plus 3.0% Term Loan due in 2023 | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate (as a percent) | 3.00% | ||||
Spectrum | |||||
Debt Instrument [Line Items] | |||||
Total lease liability balance | $ 0.8 | 1.4 | |||
Spectrum | 8.50% Note due 2021 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | 43.3 | 36.2 | |||
Spectrum | 10.50% Note due 2021 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 42.5 | 42.5 | |||
Interest rate (as a percent) | 10.50% | ||||
Spectrum | Other, various maturity dates | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 5.3 | 7.9 | |||
Spectrum | Senior Notes Due October 2019, 8.5% | |||||
Debt Instrument [Line Items] | |||||
Interest rate (as a percent) | 8.50% | ||||
Non-Operating Corporate | 11.50% Senior Secured Notes, due 2021 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 342.4 | 470 | |||
Interest rate (as a percent) | 11.50% | ||||
Non-Operating Corporate | 7.50% Convertible Senior Notes, due 2022 | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 55 | 55 | |||
Interest rate (as a percent) | 7.50% | ||||
Non-Operating Corporate | LIBOR plus 6.75% Line of Credit | |||||
Debt Instrument [Line Items] | |||||
Outstanding debt | $ 15 | $ 15 | |||
Basis spread on variable rate (as a percent) | 6.75% | 6.75% |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Aggregate Debt Maturities (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Finance Leases | ||
2020 | $ 0.9 | $ 1 |
2021 | 0.1 | 0.7 |
2022 | 0 | 0.1 |
2023 | 0 | 0 |
2024 | 0 | 0 |
Thereafter | 0 | 0 |
Total future lease payments | 1 | 1.8 |
Finance Lease, Liability, Undiscounted Excess Amount | 0 | (0.1) |
Total lease liability balance | 1 | 1.7 |
Debt | ||
2020 | 42.1 | |
2021 | 517 | |
2022 | 77.5 | |
2023 | 79.8 | |
2024 | 49.1 | |
Thereafter | 0 | |
Total minimum principal & interest payments | 765.5 | |
Less: Amount representing interest | (101.5) | |
Total aggregate finance lease and debt payments | 664 | |
Total | ||
2020 | 43 | |
2021 | 517.1 | |
2022 | 77.5 | |
2023 | 79.8 | |
2024 | 49.1 | |
Thereafter | 0 | |
Total minimum principal & interest payments | 766.5 | |
Less: Amount representing interest | (101.5) | |
Total aggregate finance lease and debt payments | $ 665 | $ 805 |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | |||||||||
Aug. 31, 2020USD ($) | Jun. 30, 2020USD ($) | May 31, 2020USD ($) | Apr. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Sep. 29, 2020USD ($) | Feb. 28, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Instrument [Line Items] | ||||||||||||
Payments for preferred stock | $ 14,000,000 | |||||||||||
Gain (loss) on extinguishment of debt | $ 4,200,000 | $ 0 | $ 13,400,000 | $ 0 | ||||||||
Minimum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Capital leases rate (as a percent) | 2.00% | |||||||||||
Maximum | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Capital leases rate (as a percent) | 11.50% | |||||||||||
11.50% Senior Secured Notes, due 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain (loss) on extinguishment of debt | $ 3,400,000 | $ 5,400,000 | ||||||||||
Outstanding debt | $ 50,600,000 | $ 76,900,000 | ||||||||||
Interest rate (as a percent) | 11.50% | |||||||||||
Convertible notes, conversion ratio | 1.045 | 1.045 | ||||||||||
Revolving Credit Agreement | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 15,000,000 | $ 15,000,000 | ||||||||||
Gain (loss) on extinguishment of debt | $ 400,000 | |||||||||||
Proceeds from lines of credit | $ 5,000,000 | $ 10,000,000 | ||||||||||
Clean Energy | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain (loss) on extinguishment of debt | $ 2,400,000 | |||||||||||
Clean Energy | Revolving Credit Facility | Mandatorily Redeemable Preferred Stock | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Gain (loss) on extinguishment of debt | 1,800,000 | |||||||||||
Clean Energy | LIBOR plus 3.0% Term Loan due in 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding debt | 0 | $ 0 | $ 27,100,000 | |||||||||
Clean Energy | LIBOR plus 3.0% Term Loan due in 2023 | LIBOR | ANG | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (as a percent) | 3.00% | |||||||||||
Clean Energy | 5.00% Term Loan due in 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding debt | $ 0 | $ 0 | 11,200,000 | |||||||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||||||
Clean Energy | 4.50% Note due in 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding debt | $ 0 | $ 0 | 10,200,000 | |||||||||
Interest rate (as a percent) | 4.50% | 4.50% | ||||||||||
Clean Energy | Revolving Credit Agreement | Revolving Credit Facility | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | 2,500,000 | |||||||||||
Accordion, additional borrowing capacity | 10,000,000 | |||||||||||
Clean Energy | 5.00% Term Loan due in 2024 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding debt | 57,000,000 | 0 | ||||||||||
Interest rate (as a percent) | 5.00% | 5.00% | ||||||||||
Clean Energy | Term Loan Delayed Draw | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding debt | $ 8,000,000 | |||||||||||
Spectrum | 8.50% Note due 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | $ 39,300,000 | |||||||||||
Outstanding debt | $ 43,300,000 | $ 43,300,000 | 36,200,000 | |||||||||
Spectrum | 10.50% Note due 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Face amount | 43,300,000 | 43,300,000 | $ 4,000,000 | |||||||||
Outstanding debt | $ 42,500,000 | $ 42,500,000 | 42,500,000 | |||||||||
Interest rate (as a percent) | 10.50% | 10.50% | ||||||||||
Non-Operating Corporate | 11.50% Senior Secured Notes, due 2021 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding debt | $ 342,400,000 | $ 342,400,000 | 470,000,000 | |||||||||
Interest rate (as a percent) | 11.50% | 11.50% | ||||||||||
Non-Operating Corporate | 7.50% Convertible Senior Notes, due 2022 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Outstanding debt | $ 55,000,000 | $ 55,000,000 | 55,000,000 | |||||||||
Interest rate (as a percent) | 7.50% | 7.50% | ||||||||||
Non-Operating Corporate | LIBOR plus 6.75% Line of Credit | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate (as a percent) | 6.75% | 6.75% | ||||||||||
Outstanding debt | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ 1.6 | $ 1.1 | $ 4.4 | $ 6.2 | |
Deferred tax assets, operating loss carryforwards | $ 115.8 | $ 115.8 | |||
Domestic Tax Authority | |||||
Operating Loss Carryforwards [Line Items] | |||||
Operating loss carryforwards | $ 147.5 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Obligations and Non-Cancellable Operating Leases (Details) $ in Millions | Sep. 30, 2020USD ($) |
Purchase Obligations | |
2020 | $ 86.3 |
2021 | 3.3 |
2022 | 0.2 |
2023 | 0.2 |
2024 | 0.2 |
Thereafter | 0 |
Total obligations | $ 90.2 |
Commitments and Contingencies_2
Commitments and Contingencies - Narrative (Details) - USD ($) | Aug. 14, 2020 | May 08, 2020 | May 06, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Nov. 06, 2014 |
Loss Contingencies [Line Items] | ||||||
Common stock, shares issued (in shares) | 48,413,438 | 46,810,676 | ||||
Damages sought | $ 2,500,000 | |||||
Damages awarded | $ 5,795,886 | |||||
Damages awarded, objector | $ 50,000 | |||||
DBMG Class Action | Pending Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Settlement (in usd per share) | $ 35.95 | |||||
Damages sought (shares) | 568,850 | |||||
Damages sought | $ 20,450,000 | |||||
Settlement, contribution | 1,000,000 | |||||
Settlement, contribution from other party | $ 8,070,000 | |||||
Litigation, ownership percentage | 7.52% | |||||
Litigation settlement, contribution (in usd per share) | $ 3.51 | |||||
DBMG Class Action | Pending Litigation [Member] | Insurance [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Settlement, contribution | $ 12,380,000 | |||||
DBMG Class Action Payment One | Pending Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Settlement (in usd per share) | $ 2.51 | |||||
Damages sought (shares) | 289,902 | |||||
Damages sought | $ 700,000 | |||||
DBMG Class Action Payment Two | Pending Litigation [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Settlement (in usd per share) | $ 1 | |||||
Damages sought | $ 300,000 | |||||
DBMG | ||||||
Loss Contingencies [Line Items] | ||||||
Common stock, shares issued (in shares) | 721,000 |
Commitments and Contingencies_3
Commitments and Contingencies - Leases (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Operating Lease [Abstract] | ||
2020 | $ 15.1 | |
2021 | 13.4 | |
2022 | 10.9 | |
2023 | 8.8 | |
2024 | 6.6 | |
Thereafter | 8.2 | |
Total future lease payments | 63 | |
Less: Present values | (9.3) | |
Total lease liability balance | 53.7 | |
Finance Lease [Abstract] | ||
2020 | $ 0.9 | 1 |
2021 | 0.1 | 0.7 |
2022 | 0 | 0.1 |
2023 | 0 | 0 |
2024 | 0 | 0 |
Thereafter | 0 | 0 |
Total future lease payments | 1 | 1.8 |
Less: Present values | 0 | (0.1) |
Total lease liability balance | $ 1 | $ 1.7 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (in shares) | 143,096 | 143,096 | 143,096 | 143,096 |
Grant date fair value (in USD per share) | $ 1.47 | |||
Share-based compensation expense | $ 800,000 | $ 1,600,000 | $ 2,500,000 | $ 4,600,000 |
Intrinsic value of options outstanding | 0 | $ 0 | ||
Average remaining life of option outstanding | 2 years 7 months 6 days | |||
Intrinsic value of exercisable options | $ 0 | $ 0 | ||
Average remaining life of exercisable options | 2 years 7 months 6 days | |||
Unvested shares expected to vest (in shares) | 42,205 | 42,205 | ||
Weighted average remaining life | 4 years 1 month 6 days | |||
Weighted average exercise price (in usd per share) | $ 5.27 | $ 5.27 | ||
Intrinsic value | $ 0 | $ 0 | ||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | 1,200,000 | $ 1,200,000 | ||
Unrecognized compensation expense, period for recognition | 1 year 3 months 18 days | |||
Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense | $ 30,000 | $ 30,000 | ||
Unrecognized compensation expense, period for recognition | 7 months 6 days |
Share-based Compensation - Fair
Share-based Compensation - Fair Value of Each Option Grant Estimated (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Expected option life | 4 years 3 months 7 days |
Risk-free interest rate | 23.96% |
Expected volatility | 62.23% |
Dividend yield | 0.00% |
Share-based Compensation - Summ
Share-based Compensation - Summary of Company's Restricted Stock Activity (Details) - Restricted Stock | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Shares | |
Unvested at beginning of period (in shares) | shares | 2,213,775 |
Granted (in shares) | shares | 1,094,399 |
Vested (in shares) | shares | (2,088,519) |
Forfeited (in shares) | shares | (478,639) |
Unvested at end of period (in shares) | shares | 741,016 |
Weighted Average Grant Date Fair Value | |
Unvested at beginning of period (in usd per share) | $ / shares | $ 5.12 |
Granted (in usd per share) | $ / shares | 2.70 |
Vested (in usd per share) | $ / shares | 4 |
Forfeited (in usd per share) | $ / shares | 5.87 |
Unvested at end of period (in usd per share) | $ / shares | $ 4.24 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Company's Stock Option Activity (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Shares | ||||
Outstanding at beginning of period (in shares) | 7,067,592 | |||
Granted (in shares) | 143,096 | 143,096 | 143,096 | 143,096 |
Exercised (in shares) | 0 | |||
Forfeited (in shares) | (142,503) | |||
Expired (in shares) | (51,745) | |||
Outstanding at end of period (in shares) | 7,016,440 | 7,016,440 | ||
Eligible for exercise (in shares) | 6,974,235 | 6,974,235 | ||
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in usd per share) | $ 6.52 | |||
Granted (in usd per share) | 2.62 | |||
Exercised (in usd per share) | 0 | |||
Forfeited (in usd per share) | 5.45 | |||
Expired (in usd per share) | 5.48 | |||
Outstanding at end of period (in usd per share) | $ 6.47 | 6.47 | ||
Eligible for exercise (in usd per share) | $ 6.48 | $ 6.48 |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) - $ / shares | Sep. 30, 2020 | Sep. 09, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | |||
Par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 |
Shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 |
Series A shares issued and outstanding | |||
Class of Stock [Line Items] | |||
Shares issued (in shares) | 6,375 | 6,375 | |
Shares outstanding (in shares) | 6,375 | 6,375 | |
Series A-2 shares issued and outstanding | |||
Class of Stock [Line Items] | |||
Shares issued (in shares) | 4,000 | 4,000 | |
Shares outstanding (in shares) | 4,000 | 4,000 | |
Series B shares issued and outstanding | |||
Class of Stock [Line Items] | |||
Shares issued (in shares) | 5,560 | 0 | |
Shares outstanding (in shares) | 5,560 | 0 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | Sep. 17, 2020 | Sep. 09, 2020 | Jan. 11, 2019 | Aug. 02, 2016 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Class of Warrant or Right [Line Items] | |||||||||
Shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | 20,000,000 | |||||
Par value (in dollars per share) | $ 0.001 | $ 0.001 | $ 0.001 | $ 0.001 | |||||
Proceeds from sale of preferred stock | $ 5,600,000 | $ 0 | |||||||
Issuance of common stock | $ 0 | $ 0 | 0 | $ 0 | |||||
Additional share consideration valued at | $ 600,000 | $ 600,000 | |||||||
Series B shares issued and outstanding | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Preferred stock, certificate of designation (in shares) | 35,000 | ||||||||
Shares issued (in shares) | 5,560 | 5,560 | 0 | ||||||
Conversion price (in USD per share) | $ 2.27 | ||||||||
Series A shares issued and outstanding | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Shares issued (in shares) | 6,375 | 6,375 | 6,375 | ||||||
Lancer Capital | Series B shares issued and outstanding | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Investment agreement | $ 35,000,000 | ||||||||
Initial funding amount | 10,000,000 | ||||||||
Proceeds from sale of preferred stock | $ 5,560,000 | ||||||||
Shares issued (in shares) | 5,560 | ||||||||
Lancer Capital | Series B shares issued and outstanding | Level 3 | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | $ 0 | |||||||
CGI | Common Stock | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Conversion of stock, number of shares (in shares) | 1,426,534 | ||||||||
CGI | Series A-2 Preferred Stock | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Issuance and sale of common stock (in shares) | 10,000 | ||||||||
Issuance of common stock | $ 8,300,000 | ||||||||
Stock issued during period, stock dividend value | $ 1,700,000 | ||||||||
Corrib Master Fund, Ltd. | Series A shares issued and outstanding | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Conversion of stock, number of shares (in shares) | 23,566 | ||||||||
Issuance and sale of common stock (in shares) | 1,000 | ||||||||
Luxor Capital Partners, LP | Series A shares issued and outstanding | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Conversion of stock, number of shares (in shares) | 209,467 | ||||||||
Luxor Capital Partners, LP | Series A-1 shares issued and outstanding | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Issuance and sale of common stock (in shares) | 9,000 | ||||||||
Corrib Master Fund, Ltd. and Luxor Capital Partners, LP | |||||||||
Class of Warrant or Right [Line Items] | |||||||||
Percent of accrued value | 1.875% |
Equity - Summary of Cash Divide
Equity - Summary of Cash Dividends (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2019 | |
Equity [Abstract] | ||||||
Total Dividend | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 |
Related Parties - Narrative (De
Related Parties - Narrative (Details) - USD ($) | Sep. 17, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||||||
Proceeds from sale of preferred stock | $ 5,600,000 | $ 0 | ||||
Net revenue | $ 0 | $ 2,600,000 | $ 700,000 | 5,600,000 | ||
Series B shares issued and outstanding | ||||||
Related Party Transaction [Line Items] | ||||||
Shares issued (in shares) | 5,560 | 5,560 | 0 | |||
Lancer Capital | Series B shares issued and outstanding | ||||||
Related Party Transaction [Line Items] | ||||||
Investment agreement | $ 35,000,000 | |||||
Initial funding amount | 10,000,000 | |||||
Proceeds from sale of preferred stock | $ 5,560,000 | |||||
Shares issued (in shares) | 5,560 | |||||
Affiliated Entity | Harbinger Capital Partners | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses under service agreement | $ 200,000 | 600,000 | $ 1,700,000 | 2,500,000 | ||
Net revenue | 0 | 100,000 | 100,000 | 200,000 | ||
Affiliated Entity | Triple Ring | ||||||
Related Party Transaction [Line Items] | ||||||
Expenses under service agreement | $ 0 | $ 500,000 | $ 1,000,000 | $ 1,300,000 | ||
Board of Directors Chairman | Lancer Capital | Series B shares issued and outstanding | ||||||
Related Party Transaction [Line Items] | ||||||
Investment agreement | $ 35,000,000 | |||||
Initial funding amount | 10,000,000 | |||||
Proceeds from sale of preferred stock | $ 5,560,000 | |||||
Shares issued (in shares) | 5,560 |
Related Parties - Components Of
Related Parties - Components Of Service Agreement's Net Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Related Party Transaction [Line Items] | ||||
Revenue from related parties | $ 0 | $ 2.6 | $ 0.7 | $ 5.6 |
Harbinger Capital Partners | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0.2 | 0.6 | 1.7 | 2.5 |
Revenue from related parties | 0 | 0.1 | 0.1 | 0.2 |
Net related party activity | 0.2 | 0.5 | 1.6 | 2.3 |
Harbinger Capital Partners | Affiliated Entity | Corporate | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0.2 | 0.4 | 1.2 | 1.7 |
Revenue from related parties | 0 | 0.1 | 0.1 | 0.2 |
Net related party activity | 0.2 | 0.3 | 1.1 | 1.5 |
Harbinger Capital Partners | Affiliated Entity | Operating Segments | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0 | 0.2 | 0.5 | 0.8 |
Revenue from related parties | 0 | 0 | 0 | 0 |
Net related party activity | 0 | 0.2 | 0.5 | 0.8 |
Harbinger Capital Partners | Office space | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0.2 | 0.6 | 1.7 | 2.4 |
Harbinger Capital Partners | Office space | Affiliated Entity | Corporate | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0.2 | 0.4 | 1.2 | 1.6 |
Harbinger Capital Partners | Office space | Affiliated Entity | Operating Segments | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0 | 0.2 | 0.5 | 0.8 |
Harbinger Capital Partners | Administrative salaries and benefits | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0 | 0 | 0 | 0.1 |
Revenue from related parties | 0 | 0 | 0 | 0 |
Harbinger Capital Partners | Administrative salaries and benefits | Affiliated Entity | Corporate | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0 | 0 | 0 | 0.1 |
Revenue from related parties | 0 | 0 | 0 | 0 |
Harbinger Capital Partners | Administrative salaries and benefits | Affiliated Entity | Operating Segments | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0 | 0 | 0 | 0 |
Revenue from related parties | 0 | 0 | 0 | 0 |
Harbinger Capital Partners | Other shared overhead | Affiliated Entity | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0 | 0 | 0 | 0 |
Revenue from related parties | 0 | 0.1 | 0.1 | 0.2 |
Harbinger Capital Partners | Other shared overhead | Affiliated Entity | Corporate | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0 | 0 | 0 | 0 |
Revenue from related parties | 0 | 0.1 | 0.1 | 0.2 |
Harbinger Capital Partners | Other shared overhead | Affiliated Entity | Operating Segments | ||||
Related Party Transaction [Line Items] | ||||
Expenses under service agreement | 0 | 0 | 0 | 0 |
Revenue from related parties | $ 0 | $ 0 | $ 0 | $ 0 |
Related Parties - Summary of Ba
Related Parties - Summary of Balance Outstanding of Related Parties (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |||||
Net revenue | $ 0 | $ 2.6 | $ 0.7 | $ 5.6 | |
Operating expenses | 0 | 0.1 | 0 | 0.8 | |
Interest expense | 0 | 0.3 | 0.1 | 0.8 | |
Dividend | 0 | $ 1.9 | 0 | $ 3 | |
Accounts receivable | 0 | 0 | $ 1.2 | ||
Debt obligations | 0 | 0 | 22.5 | ||
Accounts payable | 0 | 0 | 0.1 | ||
Dividends | $ 0 | $ 0 | $ 4.5 |
Operating Segment and Related_3
Operating Segment and Related Information - Narrative (Details) | 9 Months Ended |
Sep. 30, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable geographic segments | 1 |
Number of reportable operating segments | 7 |
Operating Segment and Related_4
Operating Segment and Related Information - Concentration Risk (Details) | 9 Months Ended |
Sep. 30, 2019 | |
Customer A | Sales Revenue, Net | Customer Concentration Risk | Telecommunications | |
Segment Reporting Information [Line Items] | |
Percentage of total | 10.70% |
Operating Segment and Related_5
Operating Segment and Related Information - Geographic and Operating Segments (Details) - USD ($) $ in Millions | Feb. 28, 2020 | May 31, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | $ 393.3 | $ 427.5 | $ 1,215.1 | $ 1,355.7 | ||
(Loss) income from operations | (2.1) | 7.5 | (24) | 66.7 | ||
Interest expense | (19.7) | (20.1) | (62.4) | (58) | ||
Loss on early extinguishment or restructuring of debt | (4.2) | 0 | (13.4) | 0 | ||
Loss from equity investees | 1.3 | 1.3 | 4 | 0 | ||
Gain on bargain purchase | 0 | 0 | 0 | 1.1 | ||
Other income (loss) | 7.3 | 6.1 | 74.1 | 4.7 | ||
(Loss) income from continuing operations | (21.6) | (8.9) | (34.1) | 8.3 | ||
(Loss) income from continuing operations before income taxes | (20) | (7.8) | (29.7) | 14.5 | ||
Income tax expense | (1.6) | (1.1) | (4.4) | (6.2) | ||
Less: Loss from discontinued operations, net of tax | 0 | 0.6 | (60) | (13.7) | ||
Net loss | (21.6) | (8.3) | (94.1) | (5.4) | ||
Net loss attributable to noncontrolling interest and redeemable noncontrolling interest | 4.3 | 1.2 | 6.8 | 4.9 | ||
Net loss attributable to HC2 Holdings, Inc. | (17.3) | (7.1) | (87.3) | (0.5) | ||
Less: Preferred dividends, deemed dividends and repurchase gains | 0.4 | 0.4 | 1.2 | (0.4) | ||
Net loss attributable to common stock and participating preferred stockholders | (17.7) | (7.5) | (88.5) | (0.1) | ||
Depreciation and Amortization | 2.4 | 2.2 | 4.1 | 3.7 | ||
Capital Expenditures | 5 | 5.5 | 16.7 | 16.5 | ||
Revenue | 317.2 | 349.3 | 1,000 | 1,112.3 | ||
Disposal Group, Including Discontinued Operation, Gain (Loss) on Sale of Subsidiary | 0 | 0 | 39.3 | 0 | ||
Marine Services | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Disposal Group, Including Discontinued Operation, Gain (Loss) on Sale of Subsidiary | $ 39.3 | $ (31.8) | 39.3 | |||
Infrastructure | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 160.8 | 168.4 | 509.6 | 556.2 | ||
Capital Expenditures | 1.4 | 1.4 | ||||
Revenue | 160.7 | 168.2 | 508.9 | 555.8 | ||
Clean Energy | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 10.3 | 8.7 | 31 | 19.3 | ||
Capital Expenditures | 0.4 | 0.1 | ||||
Revenue | 8.7 | 8.5 | 25.7 | 18.6 | ||
Telecommunications | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 136.4 | 162.2 | 430.1 | 507 | ||
Revenue | 136.4 | 162.2 | 430.1 | 507 | ||
Insurance | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Capital Expenditures | 0 | 0.4 | ||||
Life Sciences | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Capital Expenditures | 0 | 0.1 | ||||
Spectrum | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 9.7 | 10 | 29.3 | 29.8 | ||
Capital Expenditures | 3.2 | 3.5 | ||||
Revenue | 9.7 | 10 | 29.3 | 29.8 | ||
Other | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Capital Expenditures | 0 | 0 | ||||
Operating Segments | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 317.2 | 349.3 | ||||
Operating Segments | Infrastructure | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
(Loss) income from operations | 6 | 12.4 | 13.1 | 34.3 | ||
Depreciation and Amortization | 2.7 | 3.9 | 8 | 11.8 | ||
Capital Expenditures | 4.8 | 6.8 | ||||
Revenue | 160.8 | 168.4 | 509.6 | 556.2 | ||
Operating Segments | Clean Energy | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
(Loss) income from operations | 1.5 | 0.4 | 5.4 | (0.3) | ||
Depreciation and Amortization | 2.2 | 2 | 6.3 | 4.9 | ||
Capital Expenditures | 2 | 0.4 | ||||
Revenue | 10.3 | 8.7 | 31 | 19.3 | ||
Operating Segments | Telecommunications | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
(Loss) income from operations | 0.3 | (0.4) | 0.6 | 0.4 | ||
Depreciation and Amortization | 0.1 | 0.1 | 0.3 | 0.3 | ||
Revenue | 136.4 | 162.2 | 430.1 | 507 | ||
Operating Segments | Insurance | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | 78.9 | 80.4 | 223.2 | 251.3 | ||
(Loss) income from operations | 15.1 | 10.6 | 16.7 | 75.9 | ||
Depreciation and Amortization | (4.4) | (5.7) | (15.8) | (18.2) | ||
Capital Expenditures | 0.1 | 0.6 | ||||
Operating Segments | Life Sciences | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
(Loss) income from operations | (4.7) | (3) | (11.4) | (6.6) | ||
Depreciation and Amortization | 0 | 0 | 0.1 | 0.1 | ||
Capital Expenditures | 0.1 | 0.1 | ||||
Operating Segments | Spectrum | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
(Loss) income from operations | (11.7) | (3.8) | (15.8) | (8.8) | ||
Depreciation and Amortization | 1.7 | 1.8 | 5.1 | 4.7 | ||
Capital Expenditures | 9.6 | 8.6 | ||||
Revenue | 9.7 | 10 | 29.3 | 29.8 | ||
Operating Segments | Other | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
(Loss) income from operations | (0.5) | 0.1 | (2.1) | 0 | ||
Depreciation and Amortization | 0 | 0 | 0 | 0 | ||
Capital Expenditures | 0.1 | 0 | ||||
Corporate | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
(Loss) income from operations | (5.3) | (6.6) | (22.4) | (20.3) | ||
Depreciation and Amortization | 0.1 | 0.1 | 0.1 | 0.1 | ||
Eliminations | ||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||||
Revenue | (2.8) | (2.2) | (8.1) | (7.9) | ||
(Loss) income from operations | $ (2.8) | $ (2.2) | $ (8.1) | $ (7.9) |
Operating Segment and Related_6
Operating Segment and Related Information - Long-term investments, Property and Equipment and Assets (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | $ 4,569.4 | $ 4,392.1 |
Total Assets | 6,688.4 | 6,958.3 |
Operating Segments | Infrastructure | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | 0.9 | 0.9 |
Total Assets | 506.4 | 530.4 |
Operating Segments | Insurance | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | 4,616 | 4,423 |
Total Assets | 5,752.7 | 5,611.9 |
Operating Segments | Life Sciences | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | 20.8 | 22 |
Total Assets | 27.1 | 28.4 |
Operating Segments | Spectrum | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Assets | 248.1 | 257.9 |
Operating Segments | Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | 30 | 43.1 |
Total Assets | 32.8 | 366.3 |
Operating Segments | Clean Energy | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Assets | 130.5 | 142.8 |
Operating Segments | Telecommunications | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Assets | 75.5 | 89.3 |
Corporate | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Assets | 12.4 | 27.2 |
Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | (98.3) | (96.9) |
Total Assets | $ (97.1) | $ (95.9) |
Basic and Diluted Income (Los_3
Basic and Diluted Income (Loss) Per Common Share - Narrative (Details) - shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Class of Stock [Line Items] | ||||
Antidilutive securities (in shares) | 0 | 0 | 0 | 0 |
Continuing Operations | ||||
Class of Stock [Line Items] | ||||
Antidilutive securities (in shares) | 0 | 0 | 0 | 0 |
Warrant | ||||
Class of Stock [Line Items] | ||||
Antidilutive securities (in shares) | 2,168,454 | |||
Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Antidilutive securities (in shares) | 2,088,568 |
Basic and Diluted Income (Los_4
Basic and Diluted Income (Loss) Per Common Share - Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Earnings Per Share [Abstract] | ||||
(Loss) income from continuing operations | $ (21.6) | $ (8.9) | $ (34.1) | $ 8.3 |
Income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest | 4.3 | 1.6 | (8.5) | 3.8 |
(Loss) income from continuing operations attributable to the Company | (17.3) | (7.3) | (42.6) | 12.1 |
Less: Preferred dividends, deemed dividends and repurchase gains | 0.4 | 0.4 | 1.2 | (0.4) |
(Loss) income from continuing operations attributable to HC2 common stockholders | (17.7) | (7.7) | (43.8) | 12.5 |
Income (loss) from discontinued operations | 0 | 0.6 | (60) | (13.7) |
(Loss) income attributable to noncontrolling interest and redeemable noncontrolling interest | 0 | (0.4) | 15.3 | 1.1 |
Income (loss) from discontinued operations, net of tax and noncontrolling interest | 0 | 0.2 | (44.7) | (12.6) |
Net (loss) income attributable to common stock and participating preferred stockholders | $ (17.7) | $ (7.5) | $ (88.5) | $ (0.1) |
Participating shares at end of period: | ||||
Weighted-average Common stock outstanding (in shares) | 46.9 | 45.7 | 46.7 | 45.4 |
Unvested restricted stock (in shares) | 0 | 0 | 0 | 0 |
Preferred stock (as-converted basis) (in shares) | 0.3 | 0 | 0.1 | 0 |
Total (in shares) | 47.2 | 45.7 | 46.8 | 45.4 |
Percentage of income (loss) allocated to: | ||||
Common stock | 99.40% | 100.00% | 99.80% | 100.00% |
Unvested restricted stock | 0.00% | 0.00% | 0.00% | 0.00% |
Preferred stock | 0.60% | 0.00% | 0.20% | 0.00% |
Net income (loss) from continuing operations attributable to common stock, basic | $ (17.6) | $ (7.7) | $ (43.7) | $ 12.5 |
Net income (loss) from discontinued operations attributable to common stock, basic and diluted | 0 | 0.2 | (44.7) | (12.6) |
Net income (loss) attributable to common stock and participating preferred stockholders, basic and diluted | (17.6) | (7.5) | (88.3) | (0.1) |
Earnings allocable to common shares, diluted: | ||||
Effect of assumed shares for stock options, restricted shares and convertible instruments | 0 | 0 | 0 | 1.6 |
Net income (loss) from continuing operations attributable to common stock, diluted | (17.6) | (7.7) | (43.7) | 14.1 |
Net income (loss) from discontinued operations attributable to common stock, diluted | 0 | 0.2 | (44.7) | (12.6) |
Net income (loss) attributable to common stock and participating preferred stockholders, diluted | $ (17.6) | $ (7.5) | $ (88.3) | $ 1.5 |
Denominator for basic and dilutive earnings per share: | ||||
Weighted-average Common stock outstanding (in shares) | 46.9 | 45.7 | 46.7 | 45.4 |
Effect of assumed shares under treasury stock method for stock options and restricted shares and if-converted method for convertible instruments (in shares) | 0 | 0 | 0 | 14.7 |
Diluted (in shares) | 46.9 | 45.7 | 46.7 | 60.1 |
(Loss) income per share - continuing operations | ||||
Net (loss) income attributable to continuing operations - basic (in usd per share) | $ (0.38) | $ (0.16) | $ (0.94) | $ 0.28 |
Net (loss) income attributable to participating security holders - diluted (in dollars per share) | (0.38) | (0.16) | (0.94) | 0.23 |
Loss per share - discontinued operations | ||||
Basic (in usd per share) | 0 | 0 | (0.95) | (0.28) |
Diluted (in usd per share) | 0 | 0 | (0.95) | (0.21) |
(Loss) income per share - Net (loss) income attributable to participating securities | ||||
Basic (in usd per share) | (0.38) | (0.16) | (1.89) | 0 |
Diluted (in usd per share) | $ (0.38) | $ (0.16) | $ (1.89) | $ 0.02 |
Loss on sale of subsidiary | $ 0 | $ 0 | $ (39.3) | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - shares | Oct. 02, 2020 | Oct. 07, 2020 |
Subsequent Event [Line Items] | ||
Prospectus amount (in shares) | 28,634,361 | |
PTGI-ICS | ||
Subsequent Event [Line Items] | ||
Ownership percentage before sale of stock | 100.00% |