Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 128,923,569 | ||
Entity Common Stock, Shares Outstanding (in shares) | 76,752,805 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement to be delivered to stockholders in connection with the registrant's 2021 Annual Meeting of Stockholders are incorporated by reference into Part III. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001006837 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Revenue | $ 716.9 | $ 755.6 |
Life, accident and health earned premiums, net | 115.1 | 116.9 |
Net investment income | 188.9 | 203.8 |
Net realized and unrealized gains (losses) on investments | (15.1) | 0.7 |
Net revenue | 1,005.8 | 1,077 |
Operating expenses | ||
Cost of revenue | 588.5 | 596 |
Policy benefits, changes in reserves, and commissions | 250 | 234.5 |
Selling, general and administrative | 181.1 | 177.3 |
Depreciation and amortization | (3.2) | (0.9) |
Asset impairment expense | 13.5 | 50 |
Other operating income | (20) | (5.2) |
Total operating expenses | 1,009.9 | 1,051.7 |
(Loss) income from operations | (4.1) | 25.3 |
Interest expense | (79.4) | (76.1) |
Loss on extinguishment of debt | (9.4) | 0 |
(Loss) income from equity investees | (3.4) | 1.6 |
Gain on bargain purchase | 0 | 1.1 |
Other income | 68.5 | 6.3 |
Loss from continuing operations before income taxes | (27.8) | (41.8) |
Income tax benefit (expense) | (10.5) | 19.6 |
Loss from continuing operations | (38.3) | (22.2) |
Loss from discontinued operations | (63.8) | (13.9) |
Net loss | (102.1) | (36.1) |
Net loss attributable to noncontrolling interest and redeemable noncontrolling interest | 10.1 | 4.6 |
Net loss attributable to HC2 Holdings, Inc. | (92) | (31.5) |
Less: Preferred dividends, deemed dividends, and repurchase gains | 3.6 | 0 |
Net loss attributable to common stock and participating preferred stockholders | $ (95.6) | $ (31.5) |
Loss per common share - continuing operations | ||
Basic (in usd per share) | $ (0.94) | $ (0.40) |
Diluted (in usd per share) | (0.94) | (0.40) |
Loss per common share - discontinued operations | ||
Basic (in usd per share) | (0.94) | (0.30) |
Diluted (in usd per share) | (0.94) | (0.30) |
Loss per share - Net loss attributable to common stock and participating preferred stockholders | ||
Basic (in usd per share) | (1.88) | (0.70) |
Diluted (in usd per share) | $ (1.88) | $ (0.70) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 50.3 | 44.8 |
Diluted (in shares) | 50.7 | 44.8 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | ||
Gain (Loss) on sale of subsidiary | $ (44.2) | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (102.1) | $ (36.1) |
Other comprehensive income | ||
Foreign currency translation adjustment | 7.9 | (1.9) |
Unrealized gains on available-for-sale securities | 191.6 | 288.4 |
Actuarial loss on pension plan | 0 | (7.8) |
Dispositions | 30.3 | 0 |
Other comprehensive income | 229.8 | 278.7 |
Comprehensive income | 127.7 | 242.6 |
Comprehensive income (loss) attributable to noncontrolling interests and redeemable noncontrolling interests | (8.2) | (7.5) |
Comprehensive income attributable to HC2 Holdings, Inc. | $ 119.5 | $ 235.1 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Investments: | ||
Fixed maturity securities, available-for-sale at fair value | $ 4,456.1 | $ 4,028.9 |
Equity securities | 77.3 | 92.5 |
Mortgage loans | 57.2 | 183.5 |
Policy loans | 17.8 | 19.1 |
Other invested assets | 57.2 | 68.1 |
Total investments | 4,665.6 | 4,392.1 |
Cash and cash equivalents | 232.3 | 193.7 |
Accounts receivable, net | 184.7 | 228.9 |
Recoverable from reinsurers | 957.5 | 953.7 |
Deferred tax asset | 4.4 | 2.8 |
Property, plant and equipment, net | 113.9 | 129.5 |
Goodwill | 111 | 110.4 |
Intangibles, net | 174.6 | 210.6 |
Assets held for sale | 126.4 | 555.2 |
Other assets | 172.4 | 181.4 |
Total assets | 6,742.8 | 6,958.3 |
Liabilities, temporary equity and stockholders’ equity | ||
Life, accident and health reserves | 4,627.5 | 4,567.1 |
Annuity reserves | 228.8 | 236.4 |
Value of business acquired | 199.8 | 221.1 |
Accounts payable and other current liabilities | 176.3 | 190.6 |
Deferred tax liability | 142.3 | 81.6 |
Debt obligations | 561.5 | 723.9 |
Liabilities held for sale | 74.7 | 334.9 |
Other liabilities | 116 | 137.5 |
Total liabilities | 6,126.9 | 6,493.1 |
Commitments and contingencies | ||
Temporary equity | ||
Preferred stock | 10.4 | 10.3 |
Redeemable noncontrolling interest | 5.3 | 11.3 |
Total temporary equity | 15.7 | 21.6 |
Stockholders’ equity | ||
Common stock | 0.1 | 0 |
Additional paid-in capital | 355.7 | 281.1 |
Treasury stock, at cost: 1,109,751 and 742,824 shares at December 31, 2020 and 2019, respectively | (4.2) | (3.3) |
Accumulated deficit | (188.7) | (96.7) |
Accumulated other comprehensive income (loss) | 396.9 | 168.7 |
Total HC2 Holdings, Inc. stockholders’ equity | 559.8 | 349.8 |
Noncontrolling interest | 40.4 | 93.8 |
Total stockholders’ equity | 600.2 | 443.6 |
Total liabilities, temporary equity and stockholders’ equity | $ 6,742.8 | $ 6,958.3 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 160,000,000 | 80,000,000 |
Common stock, shares issued (in shares) | 77,836,586 | 46,810,676 |
Common stock, shares outstanding (in shares) | 76,726,835 | 46,067,852 |
Treasury stock (in shares) | 1,109,751 | 742,824 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Millions, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Total HC2 Stockholders' Equity | Total HC2 Stockholders' EquityCumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-In Capital | Additional Paid-In CapitalCumulative Effect, Period of Adoption, Adjustment | Treasury Stock | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income (Loss) | 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 | $ 88.1 | $ 0 | $ 260.5 | $ (2.6) | $ (57.2) | $ (112.6) | $ 105.6 | $ 28.3 | ||||||
Beginning balance (Accounting Standards Update 2016-02) at Dec. 31, 2018 | $ (5) | $ (4.3) | $ (4.3) | $ (0.7) | $ (0.1) | ||||||||||
Beginning balance (Accounting Standards Update 2017-11) at Dec. 31, 2018 | $ 2.9 | $ 2.9 | $ 6.6 | $ (3.7) | |||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Share-based compensation | 8.7 | 8.7 | 8.7 | ||||||||||||
Fair value adjustment of redeemable noncontrolling interest | (2) | (2) | (2) | 2 | |||||||||||
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 | (0.7) | (0.7) | (0.7) | ||||||||||||
Preferred stock dividend | (0.9) | (0.9) | (0.9) | ||||||||||||
Issuance of common stock (in shares) | 1.4 | ||||||||||||||
Issuance of common stock | 0 | ||||||||||||||
Purchase of preferred stock by subsidiary | 1.7 | 1.7 | 1.7 | (10) | |||||||||||
Transactions with noncontrolling interests | 1.3 | 6.8 | 6.8 | (5.5) | 3.3 | ||||||||||
Other | (0.3) | (0.3) | (0.3) | ||||||||||||
Net loss | (34.8) | (31.5) | (31.5) | (3.3) | |||||||||||
Net loss | (36.1) | (1.3) | |||||||||||||
Other comprehensive income | 279 | 281.3 | 281.3 | (2.3) | (0.6) | ||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 46.1 | ||||||||||||||
Ending balance at Dec. 31, 2019 | 443.6 | 349.8 | $ 0 | 281.1 | (3.3) | (96.7) | 168.7 | 93.8 | 21.6 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||
Share-based compensation | 6.3 | 6.3 | 6.3 | ||||||||||||
Fair value adjustment of redeemable noncontrolling interest | (1.3) | (1.3) | (1.3) | 1.3 | |||||||||||
Preferred stock accretion | (2) | (2) | (2) | 2 | |||||||||||
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 | (0.8) | (0.8) | (0.8) | ||||||||||||
Issuance of common stock (in shares) | 2.3 | ||||||||||||||
Issuance of common stock | 0.2 | 0.2 | 0.2 | ||||||||||||
Rights Offering (in shares) | 16.8 | ||||||||||||||
Rights Offering | 34.5 | 34.5 | $ 0.1 | 34.4 | |||||||||||
Issuance of preferred stock | 2 | 2 | 2 | 25 | |||||||||||
Series B preferred share conversion (in shares) | 11.9 | ||||||||||||||
Series B Preferred Share Conversion | 27 | 27 | 27 | (27) | |||||||||||
Transactions with noncontrolling interests | (50.3) | 6.7 | 6.7 | (57) | (4) | ||||||||||
Other | 2.1 | 2.1 | 2.1 | ||||||||||||
Net loss | (97.4) | (92) | (92) | (5.4) | |||||||||||
Net loss | (102.1) | (4.7) | |||||||||||||
Other comprehensive income | 237.2 | 228.2 | 228.2 | 9 | 1.5 | ||||||||||
Ending balance (in shares) at Dec. 31, 2020 | 76.7 | ||||||||||||||
Ending balance at Dec. 31, 2020 | $ 600.2 | $ 559.8 | $ 0.1 | $ 355.7 | $ (4.2) | $ (188.7) | $ 396.9 | $ 40.4 | $ 15.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities | ||
Net loss | $ (102.1) | $ (36.1) |
Less: Loss from discontinued operations, net of tax | (63.8) | (13.9) |
Loss from continuing operations | (38.3) | (22.2) |
Adjustments to reconcile net loss to cash provided by operating activities | ||
Share-based compensation expense | 2.9 | 6.3 |
Depreciation and amortization | 5.9 | 8.2 |
Amortization of deferred financing costs and debt discount | 15.5 | 12.1 |
Amortization of (discount) premium on investments, net | 7.8 | 8.5 |
Loss on extinguishment of debt | 9.4 | 0 |
Gain on bargain purchase | 0 | (1.1) |
(Loss) Income from equity investees | 3.4 | (1.6) |
Asset impairment expense | 13.5 | 50 |
Net realized and unrealized gains on investments | (63.4) | (9) |
Deferred income taxes | 8.1 | (27.2) |
Annuity benefits | 6.3 | 9.8 |
Other operating activities | (4.5) | 1.3 |
Changes in assets and liabilities, net of acquisitions: | ||
Accounts receivable | 43 | (11) |
Recoverable from reinsurers | (4) | 4.4 |
Other assets | 17.4 | 17.1 |
Life, accident and health reserves | 60.3 | 44.9 |
Accounts payable and other current liabilities | 1.3 | (18) |
Other liabilities | (32.2) | (19.3) |
Cash provided by operating activities | 52.4 | 53.2 |
Cash (used in) provided by discontinued operating activities | (10.7) | 57.5 |
Cash provided by operating activities | 41.7 | 110.7 |
Cash flows from investing activities | ||
Purchase of property, plant and equipment | (17.8) | (24.7) |
Proceeds from disposal of property, plant and equipment | 41.1 | 1.3 |
Purchase of investments | (997.1) | (1,060.1) |
Sale of investments | 822.1 | 748.7 |
Maturities and redemptions of investments | 98.1 | 123.5 |
Cash received from the sale of equity method investments | 85.5 | 0 |
Cash received from dispositions, net | 147.4 | 13.5 |
Cash received from (paid for) acquisitions, net | 0 | (19.8) |
Other investing activities | 6.4 | 8.4 |
Cash provided by (used in) investing activities | 185.7 | (209.2) |
Cash used in discontinued investing activities | (23.4) | (54.4) |
Cash provided by (used in) investing activities | 162.3 | (263.6) |
Cash flows from financing activities | ||
Proceeds from debt obligations | (4.1) | 88.9 |
Principal payments on debt obligations | (181.8) | (29.5) |
Proceeds from sale of HC2 preferred stock | 27 | 0 |
Proceeds from rights offering | 34.5 | 0 |
Cash received by subsidiary to issue preferred stock | 10 | 8.9 |
Cash paid by subsidiary to purchase HC2 preferred stock | 0 | (8.3) |
Annuity receipts | 1.6 | 2.2 |
Annuity surrenders | (15.6) | (18.1) |
Transactions with noncontrolling interests | (63) | (5.7) |
Other financing activities | (5) | (4.7) |
Cash (used in) provided by financing activities | (196.4) | 33.7 |
Cash (used in) provided by discontinued financing activities | (8.2) | 28.7 |
Cash (used in) provided by financing activities | (204.6) | 62.4 |
Effects of exchange rate changes on cash, cash equivalents and restricted cash | 0.7 | 0.7 |
Net increase in cash and cash equivalents, including cash classified within assets held for sale | 0.1 | (89.8) |
Less: Net (decrease) increase in cash and cash equivalents classified within current assets held for sale | (38.6) | 20.9 |
Net change in cash, cash equivalents and restricted cash | 38.7 | (110.7) |
Cash, cash equivalents and restricted cash, beginning of period | 195.1 | 305.8 |
Cash, cash equivalents and restricted cash, end of period | $ 233.8 | $ 195.1 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 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 that has a portfolio of subsidiaries in a variety of operating segments. We seek to grow these businesses so that they can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders. 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 NYSE under the symbol "HCHC". The Company currently has four reportable segments, plus our Other segment, based on management’s organization of the enterprise- Infrastructure, Life Sciences, Spectrum, Insurance, 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 Industrial Construction, Structural Steel and Facility Maintenance provider who provides 3D Building Information Modeling (“BIM”) modeling, detailing, fabrication and erection of structural steel and heavy steel plate. DBMG provides these services on commercial, industrial, and infrastructure construction projects such as high- and low-rise buildings and office complexes, hotels and casinos, convention centers, sports arenas and stadiums, shopping malls, hospitals, dams, bridges, mines, metal processing, refineries, pulp and paper mills 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 integrated solutions for digital engineering, modeling and detailing, construction, heavy equipment installation and facility services including maintenance, repair, and installation to a diverse range of end markets. 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 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 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. 3. 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. 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 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"). Also included in the Other segment is the discontinued operations of Beyond6, Inc. ("Beyond6") and PTGi International Carrier Services, Inc. and its subsidiaries ("ICS"). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation The 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 December 31, 2020, the results of DBMG, Genovel, R2, HC2 Broadcasting, CIG, GMSL, Beyond6, and ICS 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. Cash and Cash Equivalents Cash and cash equivalents are comprised principally of amounts in money market accounts with original maturities of three months or less. Acquisitions The Company’s acquisitions are accounted for using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. Estimates of fair value included in the Consolidated Financial Statements, in conformity with ASC 820, Fair Value Measurements and Disclosures , represent the Company’s best estimates and valuations developed, when needed, with the assistance of independent appraisers or, where such valuations have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The following estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially. Any changes to the initial estimates of the fair value of the assets and liabilities will be recorded as adjustments to those assets and liabilities, and residual amounts will be allocated to goodwill. In accordance with ASC 805, Business Combinations ("ASC 805") , if additional information is obtained about the initial estimates of the fair value of the assets acquired and liabilities assumed within the measurement period, including finalization of asset appraisals, the Company will refine its estimates of fair value to allocate the purchase price more accurately. Investments Fixed maturity securities The Company determines the appropriate classification of investments in fixed maturity securities at the acquisition date and re-evaluates the classification at each balance sheet date. All of our investments in fixed maturity securities are classified as available-for-sale. The Company carries these investments at fair value with net unrealized gains or losses, net of tax and related adjustments, reported as a component of Accumulated Other Comprehensive Income (Loss) ("AOCI") of the Company's Consolidated Statements of Stockholders' Equity. Premiums and discounts on fixed maturity securities are amortized using the interest method and reported in Net investment income; mortgage-backed securities are amortized over a period based on estimated future principal payments, including prepayments. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. When the Company sells a security, the difference between the sale proceeds and amortized cost (determined based on specific identification) is reported in Net realized and unrealized gains (losses) on investments. When a decline in the value of a specific investment is considered to be other-than-temporary at the balance sheet date, a provision for impairment is charged to earnings (included in realized gains (losses) on investments) and the cost basis of that investment is reduced. If the Company can assert that it does not intend to sell an impaired fixed maturity security and it is not more likely than not that it will have to sell the security before recovery of its amortized cost basis, then the other-than-temporary impairment is separated into two components: (i) the amount related to credit losses (recorded in earnings) and (ii) the amount related to all other factors (recorded in AOCI). The credit-related portion of an other-than-temporary impairment is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the security before recovery, an impairment charge to earnings is recorded to reduce the amortized cost of that security to fair value. Equity securities Equity securities that have readily determinable fair values are recorded at fair value with unrealized gains and losses, due to changes in fair value, reflected in Net realized and unrealized gains (losses) on investments. Dividend income from equity securities is recognized in Net investment income. Realized gains and losses on the sale of equity securities are recognized in Net realized and unrealized gains (losses) on investments. The Company utilizes the equity method to account for investments when it possesses the ability to exercise significant influence, but not control, over the operating and financial policies of the investee. The ability to exercise significant influence is presumed when an investor possesses more than 20% of the voting interests of the investee. This presumption may be overcome based on specific facts and circumstances that demonstrate that the ability to exercise significant influence is restricted. The Company applies the equity method to investments in common stock and to other investments when such other investments possess substantially identical subordinated interests to common stock. In applying the equity method, the Company records the investment at cost and subsequently increases or decreases the carrying amount of the investment by its proportionate share of the net earnings or losses in (Loss) income from equity investees and other comprehensive income of the investee. The Company records dividends or other equity distributions as reductions in the carrying value of the investment. In the event that net losses of the investee reduce the carrying amount to zero, additional net losses may be recorded if other investments in the investee are at-risk, even if the Company has not committed to provide financial support to the investee. Such additional equity method losses, if any, are based upon the change in the Company's claim on the investee’s book value. Fair Value Measurements General accounting principles for Fair Value Measurements and Disclosures define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. These principles also establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and describes three levels of inputs that may be used to measure fair value: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Active markets are defined as having the following characteristics for the measured asset/liability: (i) many transactions, (ii) current prices, (iii) price quotes not varying substantially among market makers, (iv) narrow bid/ask spreads and (v) most information publicly available. The Company’s Level 1 financial instruments consist primarily of publicly traded equity securities and highly liquid government bonds for which quoted market prices in active markets are available. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or market standard valuation techniques and assumptions with significant inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Such observable inputs include benchmarking prices for similar assets in active, liquid markets, quoted prices in markets that are not active and observable yields and spreads in the market. The Company’s Level 2 financial instruments include corporate and municipal fixed maturity securities, mortgage-backed non-affiliated common stocks priced using observable inputs. Level 2 inputs include benchmark yields, reported trades, corroborated broker/dealer quotes, issuer spreads and benchmark securities. When non-binding broker quotes can be corroborated by comparison to similar securities priced using observable inputs, they are classified as Level 2. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the related assets or liabilities. Level 3 assets and liabilities include those whose value is determined using market standard valuation techniques. When observable inputs are not available, the market standard techniques for determining the estimated fair value of certain securities that trade infrequently, and therefore have little transparency, rely on inputs that are significant to the estimated fair value and that are not observable in the market or cannot be derived principally from or corroborated by observable market data. These unobservable inputs can be based in large part on management judgment or estimation and cannot be supported by reference to market activity. Even though unobservable, management believes these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what other market participants would use when pricing similar assets and liabilities. For the Company’s invested assets, this category primarily includes private placements, asset-backed securities, and to a lesser extent, certain residential and commercial mortgage-backed securities, among others. Prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques. Non-binding broker quotes, which are utilized when pricing service information is not available, are reviewed for reasonableness based on the Company’s understanding of the market, and are generally considered Level 3. Under certain circumstances, based on its observations of transactions in active markets, the Company may conclude the prices received from independent third-party pricing services or brokers are not reasonable or reflective of market activity. In those instances, the Company would apply internally developed valuation techniques to the related assets or liabilities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The Company may utilize information from third parties, such as pricing services and brokers, to assist in determining the fair value for certain assets and liabilities; however, management is ultimately responsible for all fair values presented in the Company’s financial statements. This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices and pricing of assets and liabilities, and approving changes to valuation methodologies and pricing sources. The selection of the valuation technique(s) to apply considers the definition of an exit price and the nature of the asset or liability being valued and significant expertise and judgment is required. Accounts Receivable Accounts receivable are stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of certain receivable balances, credit history, current economic conditions and other factors that may affect the counterparty’s ability to pay. Inventory Inventory is valued at the lower of cost or net realizable value under the first-in, first-out method. Provision for obsolescence is made where appropriate and is charged to cost of revenue in the consolidated statements of operations. Short-term work in progress on contracts is stated at cost less foreseeable losses. These costs include only direct labor and expenses incurred to date and exclude any allocation of overhead. The policy for long-term work in progress contracts is disclosed within the Revenue and Cost Recognition accounting policy. Reinsurance Premium revenue and benefits are reported net of the amounts related to reinsurance ceded to and assumed from other companies. Expense allowances from reinsurers are included in other operating and general expenses. Amounts recoverable from reinsurers are estimated in a manner consistent with the direct reserve associated with the reinsured policies. Accounting for Income Taxes We recognize deferred tax assets and liabilities for the expected future tax consequences of transactions and events. Under this method, deferred tax assets and liabilities are determined based on the difference between the book basis and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. If necessary, deferred tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount of the valuation allowance. The additional guidance provided by ASC No. 740, “Income Taxes” (“ASC 740”), clarifies the accounting for uncertainty in income taxes recognized in the financial statements. Expected outcomes of current or anticipated tax examinations, refund claims and tax-related litigation and estimates regarding additional tax liability (including interest and penalties thereon) or refunds resulting therefrom will be recorded based on the guidance provided by ASC 740 to the extent applicable. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. These assessments of uncertain tax positions contain judgments related to the interpretation of tax regulations in the jurisdictions in which we transact business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, expiration of statutes of limitations, as well as changes to, or further interpretations of, tax laws and regulations. At December 31, 2020, our U.S. and foreign companies have significant deferred tax assets resulting from tax loss carryforwards. Additionally, the deferred tax assets generated by certain businesses that do not qualify to be included in the HC2 U.S. consolidated income tax return have been reduced by a full valuation allowance. Based on consideration of both positive and negative evidence, we determined that it was more likely than not that the net deferred tax assets of the HC2 U.S. consolidated filing group will not be realized. Therefore, a valuation allowance was maintained against the HC2 U.S. consolidated filing group’s net deferred tax assets as of December 31, 2020. The appropriateness and amount of the valuation allowance are based on cumulative history of losses and our assumptions about the future taxable income of each affiliate and the timing of the reversal of deferred tax assets and liabilities. The Insurance segment is in a cumulative income position and the positive trend of profitability in 2019 and 2020 is expected to continue as supported by the projections of future income. As a result of the three-year cumulative income position and reliance upon future projections of income, the Insurance segment does not have a valuation allowance recorded against its deferred tax assets. Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation, which is provided on the straight-line method over the estimated useful lives of the assets. Cost includes major expenditures for improvements and replacements which extend useful lives or increase capacity of the assets as well as expenditures necessary to place assets into readiness for use. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Cost includes finance costs incurred prior to the asset being available for use. Expenditures for maintenance and repairs are expensed as incurred. Costs for internal use software that are incurred in the preliminary project stage and in the post-implementation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software, beginning when the software project is ready for its intended use, over the estimated useful life of the software. Depreciation is determined on a straight-line basis over the estimated useful lives of the assets, which range from 5 to 40 years for buildings and leasehold improvements, 3 to 15 years for equipment, furniture and fixtures, and 3 to 20 years for transportation equipment. Leasehold improvements are amortized over the lives of the leases or estimated useful lives of the assets, whichever is shorter. Assets under construction are not depreciated until they are complete and available for use. When assets are sold or otherwise retired, the costs and accumulated depreciation are removed from the books and the resulting gain or loss is included in operating results. Property, plant and equipment that have been included as part of the assets held for sale are no longer depreciated from the time that they are classified as such. The Company periodically evaluates the carrying value of its property, plant and equipment based upon the estimated cash flows to be generated by the related assets. If impairment is indicated, a loss is recognized. Goodwill and Other Intangible Assets Under ASC 350, Intangibles - Goodwill and Other ("ASC 350"), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC 360, Property, plant, and equipment ("ASC 360"). Goodwill impairment is tested at least annually (October 1st) or when factors indicate potential impairment using a two-step process that begins with a qualitative evaluation of each reporting unit. If such test indicates potential for impairment, a one-step quantitative test is performed and if there is excess of a reporting unit's carrying amount over its fair value, impairment is recorded, not to exceed the total amount of goodwill allocated to the reporting unit. Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third-party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. Intangible assets not subject to amortization consist of certain licenses. Such indefinite lived intangible assets are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test shall consist of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss shall be recognized in an amount equal to the excess. Intangible assets subject to amortization consists of certain trade names, customer contracts and developed technology. These finite lived intangible assets are amortized based on their estimated useful lives. Such assets are subject to the impairment provisions of ASC 360, wherein impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset. In addition to the foregoing, the Company reviews its goodwill and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amounts of assets may not be recoverable. The factors that the Company considers important, and which could trigger an impairment review, include, but are not limited to: a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit; a significant decline in the market value of our common stock or debt securities for a sustained period; a material adverse change in economic, financial market, industry or sector trends; a material failure to achieve operating results relative to historical levels or projected future levels; and significant changes in operations or business strategy. For details regarding goodwill impairment, see Note 12. Goodwill and Intangibles, net. Licensing: Television broadcast licenses generally are granted for eight-year periods. They are renewable after application and reviewed by the FCC and historically are renewed except in rare cases in which a petition to deny, a complaint or an adverse finding as to the licensee's qualifications results in loss of the license. Valuation of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes indicate that the carrying amount of an asset may not be recoverable. In making such evaluations, the Company compares the expected undiscounted future cash flows to the carrying amount of the assets. If the total of the expected undiscounted future cash flows is less than the carrying amount of the assets, the Company is required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value and carrying value of the assets. The Company makes significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as determining asset groups and estimating future cash flows, remaining useful lives, discount rates and growth rates. The resulting undiscounted cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the long-lived assets. The Company derives future cash flow estimates from its historical experience and its internal business plans, which include consideration of industry trends, competitive actions, technology changes, regulatory actions, available financial resources for marketing and capital expenditures and changes in its underlying cost structure. The Company makes assumptions about the remaining useful life of its long-lived assets. The assumptions are based on the average life of its historical capital asset additions and its historical asset purchase trend. In some cases, due to the nature of a particular industry in which the company operates, the Company may assume that technology changes in such industry render all associated assets, including equipment, obsolete with no salvage value after their useful lives. In certain circumstances in which the underlying assets could be leased for an additional period of time or salvaged, the Company includes such estimated cash flows in its estimate. The estimate of the appropriate discount rate to be used to apply the present value technique in determining fair value was the Company’s weighted average cost of capital which is based on the effective rate of its debt obligations at the current market values (for periods during which the Company had debt obligations) as well as the current volatility and trading value of the Company’s common stock. Value of Business Acquired ("VOBA") VOBA is a liability that reflects the estimated fair value of in-force contracts in a life insurance company acquisition less the amount recorded as insurance contract liabilities. It represents the portion of the purchase price that is allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. A VOBA liability (negative asset) occurs when the estimated fair value of in-force contracts in a life insurance company acquisition is less than the amount recorded as insurance contract liabilities. Amortization is based on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends. VOBA amortization are reported within depreciation and amortization in the accompanying consolidated statements of operations. The VOBA balance is also periodically evaluated for recoverability to ensure that the unamortized portion does not exceed the expected recoverable amounts. At each evaluation date, actual historical gross profits are reflected, and estimated future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated future gross profits requires that the amortization rate be revised ("unlocking") retroactively to the date of the policy or contract issuance. The cumulative unlocking adjustment is recognized as a component of current period amortization. Annuity Benefits Accumulated Annuity receipts and benefit payments are recorded as increases or decreases in annuity benefits accumulated rather than as revenue and expense. Increases in this liability (primarily interest credited) are charged to expense and decreases for charges are credited to annuity policy charges revenue. Reserves for traditional fixed annuities are generally recorded at the stated account value. Life, Accident and Health Reserves Liabilities for future policy benefits under traditional life, accident and health policies are computed using the net level premium method. Computations are based on the original projections of investment yields, mortality, morbidity and surrenders and include provisions for unfavorable deviations unless a loss recognition event (premium deficiency) occurs. Claim reserves and liabilities established for accident and health claims are modified as necessary to reflect actual experience and developing trends. For long-duration contracts (such as traditional life and long-term care insurance policies), loss recognition occurs when, based on current expectations as of the measurement date, existing contract liabilities plus the present value of future premiums (including reasonably expected rate increases) are not expected to cover the present value of future claims payments and related settlement and maintenance costs (excluding overhead) as well as unamortized acquisition costs. If a block of business is determined to be in loss recognition, a charge is recorded in earnings in an amount equal to the excess of the present value of expected future claims costs and unamortized acquisition costs over existing reserves plus the present value of expected future premiums (with no provision for adverse deviation). The charge is recorded as an additional reserve (if unamortized acquisition costs have been eliminated). In addition, reserves for traditional life and long-term care insurance policies are subject to adjustment for loss recognition charges that would have been recorded if the unrealized gains from securities had actually been realized. This adjustment is included in unrealized gains (losses) on marketable securities, a component of AOCI. Presentation of Taxes Collected The Company reports a value-added tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between the Company and a customer on a net basis (excluded from revenues). Foreign Currency Transactions Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rates between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is reported by the Company as a foreign currency transaction gain (loss). The primary component of the Company’s foreign currency transaction gain (loss) is due to agreements in place with certain subsidiaries in foreign countries regarding intercompany transactions. The Company anticipates repayment of these transactions in the foreseeable future, and recognizes the realized and unrealized gains or losses on these transactions that result from foreign currency changes in the period in which they occur as foreign currency transaction gain (loss). Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries are translated at the exchange rates in effect on the reporting date. Income and expenses are translated at the average exchange rate during the period. The net effect of such translation gains and losses are reflected within AOCI in the stockholders’ equity section of the consolidated balance sheets. Convertible Instruments The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities. Applicable U.S. Generally Accepted Accounting Principals ("GAAP") requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments, when it has been determined that the embedded conversion options should not be bifurcated from their host instruments, as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general ext |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations The results of GMSL, ICS, and Beyond6, and the related expenses directly attributable to the entities were reported as discontinued operations. Summarized operating results of the discontinued operations are as follows (in millions): Years Ended December 31, 2020 2019 Net Revenue $ 519.6 $ 907.2 Cost of revenue 492.4 828.9 Selling, general and administrative 26.2 37.3 Depreciation and amortization 12.6 33.0 Other operating expenses 0.3 4.4 Income (loss) from operations (11.9) 3.6 Interest Expense (7.7) (19.1) Loss on sale and liquidation of subsidiaries (44.2) — Income from equity investees 0.5 0.6 Other income (loss) (1.5) (0.2) Pre-tax loss from discontinued operations (64.8) (15.1) Income tax benefit 1.0 1.2 Loss from discontinued operations $ (63.8) $ (13.9) Sale of GMSL The sale of GMSL closed on February 28, 2020. At the time of the sale, the Company recorded a $39.3 million loss on the sale, inclusive of recognizing a $31.3 million loss from the realization of AOCI. During the fourth quarter of 2020, the Company recognized a gain on sale of $2.4 million as a result of the cash collateralized bonding facility release. 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 years ended December 31, 2020 and 2019 associated with the principal prepayment from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statement of Operations: Years Ended December 31, 2020 2019 Interest expense $ 0.2 $ 0.9 Amortization of deferred financing costs and original issuance discount $ 0.1 $ 0.3 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 years ended December 31, 2020 and 2019, from continuing operations to discontinued operations on the Company’s Consolidated Statements of Operations: Years Ended December 31, 2020 2019 Interest expense $ 2.2 $ 8.8 Amortization of deferred financing costs and original issuance discount $ 0.2 $ 0.9 Sale of ICS The sale of ICS and its subsidiary, Go2 Tel, Inc., closed on October 31, 2020. The Company recorded a $0.9 million gain on the sale and recognized $8.2 million of Accumulated other comprehensive loss related to the realization of foreign currency translation of PTGi International Carrier Services Ltd., which was essentially liquidated in conjunction with the sale. Proceeds were used for general corporate purposes. Sale of Beyond6 On December 31, 2020, the Company announced a plan to sell Beyond6 to an affiliate of Mercuria Investments US, Inc., pursuant to an Agreement and Plan of Merger ( the "Merger Agreement") among Beyond6, Greenfill, Inc., a Delaware Corporation ("Parent"), Greenfill Merger Inc., a newly-formed Delaware corporation and wholly-owned subsidiary of the Parent, and an affiliate of HC2 as the Stockholder Representative for the Beyond6 stockholders. The sale closed on January 15, 2021. Summarized assets and liabilities of the discontinued operations are as follows (in millions): December 31, 2020 2019 Assets Other invested assets $ — $ 16.9 Cash and cash equivalents 6.7 45.3 Accounts receivable, net 13.6 109.0 Property, plant and equipment, net 89.4 276.3 Goodwill 2.1 16.4 Intangibles, net 9.2 16.3 Other assets 5.4 75.0 Total assets held for sale $ 126.4 $ 555.2 Liabilities Account payable and other current liabilities $ 10.3 $ 148.9 Debt obligations 56.3 115.3 Pension liability — 18.8 Other liabilities 8.1 51.9 Total liabilities held for sale $ 74.7 $ 334.9 |
Revenue
Revenue | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | 4. Revenue ASC 606 aligns revenue recognition with the timing of when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services. To achieve this core principle, the Company applies the following five steps in accordance with ASC 606: Identify the contract with a customer A contract with a customer exists when: (a) the parties have approved the contract and are committed to perform their respective obligations, (b) the rights of the parties can be identified, (c) payment terms can be identified, (d) the arrangement has commercial substance, and (e) collectibility of consideration is probable. Judgment is required when determining if the contractual criteria are met, specifically in the earlier stages of a project when a formally executed contract may not yet exist. In these situations, the Company evaluates all relevant facts and circumstances, including the existence of other forms of documentation or historical experience with our customers that may indicate a contractual agreement is in place and revenue should be recognized. In determining if the collectibility of consideration is probable, the Company considers the customer’s ability and intention to pay such consideration through an evaluation of several factors, including an assessment of the creditworthiness of the customer and our prior collection history with such customer. Identify the performance obligations in the contract At contract inception, the Company assesses the goods or services promised in a contract and identifies, as a separate performance obligation, each distinct promise to transfer goods or services to the customer. The identified performance obligations represent the "unit of account" for purposes of determining revenue recognition. In order to properly identify separate performance obligations, the Company applies judgment in determining whether each good or service provided is: (a) capable of being distinct, whereby the customer can benefit from the good or service either on its own or together with other resources that are readily available to the customer, and (b) distinct within the context of the contract, whereby the transfer of the good or service to the customer is separately identifiable from other promises in the contract. In addition, when assessing performance obligations within a contract, the Company considers the warranty provisions included within such contract. To the extent the warranty terms provide the customer with an additional service, other than assurance that the promised good or service complies with agreed upon specifications, such warranty is accounted for as a separate performance obligation. In determining whether a warranty provides an additional service, the Company considers each warranty provision in comparison to warranty terms which are standard in the industry. Determine the transaction price The transaction price represents the amount of consideration to which the Company expects to be entitled in exchange for transferring promised goods or services to our customers. The consideration promised within a contract may include fixed amounts, variable amounts, or both. To the extent the performance obligation includes variable consideration, including contract bonuses and penalties that can either increase or decrease the transaction price, the Company estimates the amount of variable consideration to be included in the transaction price utilizing one of two prescribed methods, depending on which method better predicts the amount of consideration to which the entity will be entitled. Such methods include: (a) the expected value method, whereby the amount of variable consideration to be recognized represents the sum of probability weighted amounts in a range of possible consideration amounts, and (b) the most likely amount method, whereby the amount of variable consideration to be recognized represents the single most likely amount in a range of possible consideration amounts. When applying these methods, the Company considers all information that is reasonably available, including historical, current and estimates of future performance. Variable consideration is included in the transaction price only to the extent it is probable, in the Company’s judgment, that a significant future reversal in the amount of cumulative revenue recognized under the contract will not occur when the uncertainty associated with the variable consideration is subsequently resolved. This threshold is referred to as the variable consideration constraint. In assessing whether to apply the variable consideration constraint, the Company considers if factors exist that could increase the likelihood or the magnitude of a potential reversal of revenue, including, but not limited to, whether: (a) the amount of consideration is highly susceptible to factors outside of the Company’s influence, such as the actions of third parties, (b) the uncertainty surrounding the amount of consideration is not expected to be resolved for a long period of time, (c) the Company’s experience with similar types of contracts is limited or that experience has limited predictive value, (d) the Company has a practice of either offering a broad range of price concessions or changing the payment terms and conditions of similar contracts in similar circumstances, and (e) the contract has a large number and broad range of possible consideration amounts. Pending change orders represent one of the most common forms of variable consideration included within contract value and typically represent contract modifications for which a change in scope has been authorized or acknowledged by our customer, but the final adjustment to contract price is yet to be negotiated. In estimating the transaction price for pending change orders, the Company considers all relevant facts, including documented correspondence with the customer regarding acknowledgment and/or agreement with the modification, as well as historical experience with the customer or similar contractual circumstances. Based upon this assessment, the Company estimates the transaction price, including whether the variable consideration constraint should be applied. Changes in the estimates of transaction prices are recognized on a cumulative catch-up basis in the period in which the revisions to the estimates are made. Such changes in estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior periods. Such changes in estimates may also result in the reversal of previously recognized revenue if the ultimate outcome differs from the Company’s previous estimate. Allocate the transaction price to performance obligations in the contract For contracts that contain multiple performance obligations, the Company allocates the transaction price to each performance obligation based on a relative standalone selling price. The Company determines the standalone selling price based on the price at which the performance obligation would have been sold separately in similar circumstances to similar customers. If the standalone selling price is not observable, the Company estimates the standalone selling price taking into account all available information such as market conditions and internal pricing guidelines. In certain circumstances, the standalone selling price is determined using an expected profit margin on anticipated costs related to the performance obligation. Recognize revenue as performance obligations are satisfied The Company recognizes revenue at the time the related performance obligation is satisfied by transferring a promised good or service to its customers. A good or service is considered to be transferred when the customer obtains control. The Company can transfer control of a good or service and satisfy its performance obligations either over time or at a point in time. The Company transfers control of a good or service over time and, therefore, satisfies a performance obligation and recognizes revenue over time if one of the following three criteria are met: (a) the customer simultaneously receives and consumes the benefits provided by the Company’s performance as we perform, (b) the Company’s performance creates or enhances an asset that the customer controls as the asset is created or enhanced, or (c) the Company’s performance does not create an asset with an alternative use to us, and we have an enforceable right to payment for performance completed to date. For our performance obligations satisfied over time, we recognize revenue by measuring the progress toward complete satisfaction of that performance obligation. The selection of the method to measure progress towards completion can be either an input method or an output method and requires judgment based on the nature of the goods or services to be provided. Revenue from contracts with customers consist of the following (in millions): Years Ended December 31, 2020 2019 Revenue (1) Infrastructure $ 676.6 $ 713.3 Spectrum 40.3 41.8 Other — 0.5 Total revenue $ 716.9 $ 755.6 (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): December 31, 2020 2019 Accounts receivables with customers Infrastructure $ 168.5 $ 199.2 Spectrum 7.3 8.5 Total accounts receivables with customers $ 175.8 $ 207.7 Infrastructure Segment DBMG performs its services primarily under fixed-price contracts and recognizes revenue over time using the input method to measure progress for its projects. The nature of the projects does not provide measurable value to the customer over time and control does not transfer to the customer at discrete points in time. The customer receives value over the term of the project based on the amount of work that has been completed towards the delivery of the completed project. The most reliable measure of progress is the cost incurred towards delivery of the completed project. Therefore, the input method provides the most reliable method to measure progress. Revenue recognition begins when work has commenced. Costs include all direct material and labor costs related to contract performance, subcontractor costs, indirect labor, and fabrication plant overhead costs, which are charged to contract costs as incurred. Revenues relating to changes in the scope of a contract are recognized when DBMG and customer or general contractor have agreed on both the scope and price of changes, the work has commenced, it is probable that the costs of the changes will be recovered and that realization of revenue exceeding the costs is assured beyond a reasonable doubt. Revisions in estimates during the course of contract work are reflected in the accounting period in which the facts requiring the revision become known. Provisions for estimated losses on uncompleted contracts are made in the period a loss on a contract becomes determinable. Service Contracts For service contracts (including maintenance contracts) where we have the right to consideration from the customer in an amount that corresponds directly with the value received by the customer based on our performance to date, revenue is recognized when services are performed and contractually billable. For all other types of service contracts, revenue is recognized over time using the input method to measure progress because it best depicts the transfer of value to the customer. Costs include all direct material and labor costs, subcontractor costs, and allocated overhead costs related to contract performance. Construction contracts with customers generally provide that billings are to be made monthly in amounts which are commensurate with the extent of performance under the contracts. Contract receivables arise principally from the balance of amounts due on progress billings on jobs under construction. Retention on contract receivables are amounts due on progress billings, which are withheld until the completed project has been accepted by the customer. Disaggregation of Revenues DBMG's revenues are principally derived from contracts to provide fabrication and erection services to its customers. Contracts represent majority of the revenue of the Infrastructure segment and are generally recognized over time. A majority of contracts are domestic, fixed priced, and are in excess of one year. Disaggregation of the Infrastructure segment, by market or type of customer, is used to evaluate its financial performance. The following table disaggregates DBMG's revenue by market (in millions): Years Ended December 31, 2020 2019 Commercial $ 217.7 $ 205.4 Industrial 214.9 238.0 Transportation 72.6 64.8 Leisure 42.8 45.7 Healthcare 29.5 49.5 Convention 10.6 77.4 Other 87.8 32.1 Total revenue from contracts with customers 675.9 712.9 Other revenue 0.7 0.4 Total Infrastructure segment revenue $ 676.6 $ 713.3 Contract Assets and Contract Liabilities The timing of revenue recognition may differ from the timing of invoicing to customers. Contract assets include unbilled amounts from our long-term construction projects when revenue recognized under the cost-to-cost measure of progress exceed the amounts invoiced to our customers, as the amounts cannot be billed under the terms of our contracts. Such amounts are recoverable from our customers based upon various measures of performance, including achievement of certain milestones, completion of specified units or completion of a contract. In addition, many of our time and materials arrangements, as well as our contracts to perform turnaround services within the United States industrial services segment, are billed in arrears pursuant to contract terms that are standard within the industry, resulting in contract assets and/or unbilled receivables being recorded, as revenue is recognized in advance of billings. Also included in contract assets are amounts we seek or will seek to collect from customers or others for errors or changes in contract specifications or design, contract change orders or modifications in dispute or unapproved as to both scope and/or price or other customer-related causes of unanticipated additional contract costs (claims and unapproved change orders). Our contract assets do not include capitalized costs to obtain and fulfill a contract. Contract assets are included in Other assets in the Consolidated Balance Sheets. Contract liabilities from our long-term construction contracts occur when amounts invoiced to our customers exceed revenues recognized. Contract liabilities additionally include advanced payments from our customers on certain contracts. Contract liabilities decrease as we recognize revenue from the satisfaction of the related performance obligation. Contract liabilities are included in Other liabilities in the Consolidated Balance Sheets. Contract Assets and Contract Liabilities Contract assets and contract liabilities consisted of the following (in millions): December 31, 2020 2019 Contract assets $ 55.6 $ 50.6 Contract liabilities $ (52.2) $ (50.6) The change in contract assets is a result of the recording of $30.4 million of costs in excess of billings driven by new commercial projects, offset by $25.4 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 $50.5 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 $48.9 million. Transaction Price Allocated to Remaining Unsatisfied Performance Obligations The transaction price allocated to remaining unsatisfied performance obligations consisted of the following (in millions): Within one year Within five years Total Commercial $ 151.1 $ 2.9 $ 154.0 Convention 56.1 — 56.1 Healthcare 26.0 — 26.0 Industrial 49.4 — 49.4 Transportation 27.7 — 27.7 Leisure 10.4 — 10.4 Other 58.9 — 58.9 Remaining unsatisfied performance obligations $ 379.6 $ 2.9 $ 382.5 DBMG includes an additional $12.0 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. DBMG's remaining unsatisfied performance obligations, otherwise referred to as backlog, increase with awards of new contracts and decrease as it performs work and recognizes revenue on existing contracts. DBMG includes a project within its remaining unsatisfied performance obligations at such time the project is awarded and agreement on contract terms has been reached. DBMG's remaining unsatisfied performance obligations include amounts related to contracts for which a fixed price contract value is not assigned when a reasonable estimate of total transaction price can be made. DBMG expects to recognize this revenue over the next twenty four months. Remaining unsatisfied performance obligations include unrecognized revenues to be realized from uncompleted construction contracts. Although many of DBMG's contracts are subject to cancellation at the election of its customers, in accordance with industry practice, DBMG does not limit the amount of unrecognized revenue included within its remaining unsatisfied performance obligations due to the inherent substantial economic penalty that would be incurred by its customers upon cancellation. Spectrum Segment Network advertising revenue is generated primarily from the sale of television airtime for programs or advertisements. Network advertising revenue is recognized when the program or advertisement is broadcast. Revenues are reported net of agency commissions, which are calculated as a stated percentage applied to gross billings. The Network advertising contracts are generally short-term in nature. Network distribution revenue consists of payments received from cable, satellite and other multiple video program distribution systems for their retransmission of our network content. Network distribution revenue is recognized as earned over the life of the retransmission consent contract and varies from month to month. Variable fees are usage/sales based, calculated on the average number of subscribers, and recognized as revenue when the usage occurs. Transaction prices are based on the contract terms, with no material judgments or estimates. Broadcast station revenue is generated primarily from the sale of television airtime in return for a fixed fee or a portion of the related ad sales recognized by the third party. In a typical broadcast station revenue agreement, the licensee of a station makes available, for a fee, airtime on its station to a party which supplies content to be broadcast during that airtime and collects revenue from advertising aired during such content. Broadcast station revenue is recognized over the life of the contract, when the program is broadcast. The fees that we charge can be fixed or variable and the contracts that the Company enters into are generally short-term in nature. Variable fees are usage/sales-based and recognized as revenue when the subsequent usage occurs. Transaction prices are based on the contract terms, with no material judgments or estimates. Disaggregation of Revenues The following table disaggregates the Spectrum segment's revenue by type (in millions): Years Ended December 31, 2020 2019 Network advertising $ 18.4 $ 22.7 Broadcast station 15.5 11.9 Network distribution 4.0 4.9 Other 2.4 2.3 Total revenue from contracts with customers 40.3 41.8 Other revenue — — Total Spectrum segment revenue $ 40.3 $ 41.8 Transaction Price Allocated to Remaining Unsatisfied Performance Obligations The transaction price allocated to remaining unsatisfied performance obligations consisted of $2.7 million, $6.3 million, and $0.2 million of network advertising, broadcasting station revenues, and other revenues respectively of which $5.5 million is expected to be recognized within one year and $3.7 million is expected to be recognized within five years. |
Acquisitions, Depositions, and
Acquisitions, Depositions, and Deconsolidations | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Acquisitions, Dispositions, and Deconsolidations | 5. Acquisitions, Dispositions, and Deconsolidations Spectrum Segment During the year ended December 31, 2019, HC2 Broadcasting acquired a series of licenses for a total consideration of $20.5 million. All transactions were accounted for as asset acquisitions. 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. In the first quarter of 2020, the Company recorded a $39.3 million loss, inclusive of recognizing a $31.3 million loss from the realization of AOCI. During the fourth quarter of 2020, the Company recognized a gain on sale of $2.4 million as a result of the cash collateralized bonding facility release. 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. Sale of ICS The sale of ICS and its subsidiary, Go2 Tel, Inc., closed on October 31, 2020. The Company recorded a $0.9 million gain on the sale and recognized $8.2 million of Accumulated other comprehensive loss related to the realization of foreign currency translation of PTGi International Carrier Services Ltd., which was essentially liquidated in conjunction with the sale. The proceeds were used for general corporate purposes. Sale of Beyond6 On December 31, 2020, the Company announced a plan to sell Beyond6 to an affiliate of Mercuria Investments US, Inc., pursuant to an Agreement and Plan of Merger ( the "Merger Agreement") among Beyond6, Greenfill, Inc., a Delaware Corporation ("Parent"), Greenfill Merger Inc., a newly-formed Delaware corporation and wholly-owned subsidiary of the Parent, and an affiliate of HC2 as the Stockholder Representative for the Beyond6 stockholders, for a total consideration of $70.0 million, subject to working capital adjustments. The sale closed on January 15, 2021. See Note 3. Discontinued Operations for further details. |
Investments
Investments | 12 Months Ended |
Dec. 31, 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): December 31, 2020 Amortized Cost Unrealized Unrealized Fair Value U.S. Government and government agencies $ 7.3 $ 1.1 $ — $ 8.4 States, municipalities and political subdivisions 383.5 58.4 — 441.9 Residential mortgage-backed securities 49.3 4.6 (1.0) 52.9 Commercial mortgage-backed securities 104.7 2.0 (9.3) 97.4 Asset-backed securities 415.0 2.2 (14.1) 403.1 Corporate and other 2,970.1 510.6 (28.3) 3,452.4 Total fixed maturity securities $ 3,929.9 $ 578.9 $ (52.7) $ 4,456.1 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 December 31, 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 $ 52.3 $ 53.1 Due after one year through five years 278.6 290.9 Due after five years through ten years 483.6 519.8 Due after ten years 2,546.4 3,038.9 Subtotal 3,360.9 3,902.7 Mortgage-backed securities 154.0 150.3 Asset-backed securities 415.0 403.1 Total $ 3,929.9 $ 4,456.1 The tables below show the major industry types of the Company’s corporate and other fixed maturity securities (in millions): December 31, 2020 December 31, 2019 Amortized Fair % of Amortized Fair % of Finance, insurance, and real estate $ 1,123.2 $ 1,208.2 35.0 % $ 632.2 $ 674.9 23.8 % Transportation, communication and other services 684.3 799.0 23.1 % 785.7 855.2 30.3 % Manufacturing 700.0 884.9 25.6 % 728.7 825.9 29.2 % Other 462.6 560.3 16.3 % 422.5 471.0 16.7 % Total $ 2,970.1 $ 3,452.4 100.0 % $ 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): Years Ended December 31, 2020 2019 Net realized and unrealized gains on investments $ 6.8 $ 2.1 Other income (expenses), net 0.1 0.3 Total other-than-temporary impairments $ 6.9 $ 2.4 The following table presents the total unrealized losses for the 125 and 139 fixed maturity securities held by the Company as of December 31, 2020 and December 31, 2019, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (in millions): December 31, 2020 December 31, 2019 Fixed maturity securities Unrealized Losses % of Unrealized Losses % of Less than 20% $ (50.3) 95.4 % $ (32.6) 97.6 % 20% or more for less than six months (0.2) 0.4 % — — % 20% or more for six months or greater (2.2) 4.2 % (0.8) 2.4 % Total $ (52.7) 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 December 31, 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 125 and 139 fixed maturity securities held by the Company that have estimated fair values below amortized cost as of each of December 31, 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): December 31, 2020 Less than 12 months 12 months or greater Total Fair Value Unrealized Fair Unrealized Fair Unrealized U.S. Government and government agencies $ — $ — $ — $ — $ — $ — States, municipalities and political subdivisions 0.3 — — — 0.3 — Residential mortgage-backed securities 2.9 (0.2) 3.8 (0.8) 6.7 (1.0) Commercial mortgage-backed securities 62.2 (9.3) 0.2 — 62.4 (9.3) Asset-backed securities 86.5 (3.6) 158.4 (10.5) 244.9 (14.1) Corporate and other 179.1 (9.0) 114.6 (19.3) 293.7 (28.3) Total fixed maturity securities $ 331.0 $ (22.1) $ 277.0 $ (30.6) $ 608.0 $ (52.7) 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 December 31, 2020, investment grade fixed maturity securities (as determined by nationally recognized rating agencies) represented approximately 70.0% of the gross unrealized loss and 79.9% 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): December 31, Equity securities 2020 2019 Common stock $ 4.0 $ 10.5 Perpetual preferred stock 73.3 82.0 Total equity securities $ 77.3 $ 92.5 Other invested assets Carrying values of other invested assets were as follows (in millions): December 31, 2020 December 31, 2019 Measurement Equity Measurement Equity Common stock $ — $ 2.5 $ — $ 2.4 Preferred stock — 10.0 — 16.1 Other 11.3 33.4 — 49.6 Total $ 11.3 $ 45.9 $ — $ 68.1 Net investment income The major sources of net investment income were as follows (in millions): Years Ended December 31, 2020 2019 Fixed maturity securities, available-for-sale at fair value $ 177.4 $ 177.3 Equity securities 2.9 7.6 Mortgage loans 12.5 15.0 Policy loans 1.1 1.1 Other invested assets (3.9) 4.0 Gross investment income 190.0 205.0 External investment expense (1.1) (1.2) Net investment income $ 188.9 $ 203.8 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): Years Ended December 31, 2020 2019 Realized gains on fixed maturity securities $ 17.2 $ 10.6 Realized losses on fixed maturity securities (17.7) (10.2) Realized gains on equity securities 0.2 3.4 Realized losses on equity securities (2.3) (3.3) Realized gains on mortgage loans 2.2 1.0 Realized losses on mortgage loans — (0.3) Net unrealized gains (losses) on equity securities (8.8) 3.4 Net unrealized gains (losses) on derivative instruments 0.9 (1.7) Impairment loss (6.8) (2.2) Net realized and unrealized gains (losses) $ (15.1) $ 0.7 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 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): December 31, 2020 Fair Value Measurement Using: Total Level 1 Level 2 Level 3 Assets Fixed maturity securities U.S. Government and government agencies $ 8.4 $ 5.4 $ 3.0 $ — States, municipalities and political subdivisions 441.9 — 441.9 — Residential mortgage-backed securities 52.9 — 45.6 7.3 Commercial mortgage-backed securities 97.4 — 64.0 33.4 Asset-backed securities 403.1 — 36.1 367.0 Corporate and other 3,452.4 44.7 3,176.0 231.7 Total fixed maturity securities 4,456.1 50.1 3,766.6 639.4 Equity securities Common stocks 4.0 3.5 — 0.5 Perpetual preferred stocks 73.3 5.1 20.8 47.4 Total equity securities 77.3 8.6 20.8 47.9 Total assets accounted for at fair value $ 4,533.4 $ 58.7 $ 3,787.4 $ 687.3 Liabilities Embedded derivative $ 5.8 $ — $ — $ 5.8 Other 0.4 — — 0.4 Total liabilities accounted for at fair value $ 6.2 $ — $ — $ 6.2 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 1.3 — — 1.3 Total liabilities accounted for at fair value $ 4.3 $ — $ — $ 4.3 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 $51.5 million primarily related to corporate securities during the year ended December 31, 2020. The Company’s assessment resulted in a net transfer out of Level 3 of $135.8 million primarily related to corporate securities during the year ended December 31, 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 year ended December 31, 2020 and 2019 (in millions): 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 $ 1.1 $ — $ (3.0) $ 15.2 $ (13.5) $ — Residential mortgage-backed securities 9.2 0.1 (1.1) — (2.5) 6.8 (5.2) 7.3 Commercial mortgage-backed securities 34.6 (2.0) (1.1) — (1.9) 30.0 (26.2) 33.4 Asset-backed securities 550.6 (8.0) 4.3 60.1 (251.5) 191.8 (180.3) 367.0 Corporate and other 111.0 (3.9) 1.3 101.1 (9.0) 76.8 (45.6) 231.7 Total fixed maturity securities 705.4 (13.6) 4.5 161.2 (267.9) 320.6 (270.8) 639.4 Equity securities Common stocks 3.4 (2.9) — — — — — 0.5 Perpetual preferred stocks 54.2 2.3 (9.4) — (1.4) 1.7 — 47.4 Total equity securities 57.6 (0.6) (9.4) — (1.4) 1.7 — 47.9 Total financial assets $ 763.0 $ (14.2) $ (4.9) $ 161.2 $ (269.3) $ 322.3 $ (270.8) $ 687.3 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 $ 2.8 $ — $ — $ — $ — $ — $ 5.8 Other 1.3 (0.9) — — — — — 0.4 Total financial liabilities $ 4.3 $ 1.9 $ — $ — $ — $ — $ — $ 6.2 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 — 0.1 — (1.9) 1.5 (9.5) 9.2 Commercial mortgage-backed securities 58.2 0.8 1.5 7.5 (37.6) 5.1 (0.9) 34.6 Asset-backed securities 478.2 (2.1) 14.1 184.4 (236.7) 189.1 (76.4) 550.6 Corporate and other 85.0 (3.2) 5.5 28.5 (28.5) 106.5 (82.8) 111.0 Total fixed maturity securities 640.4 (4.5) 21.3 220.4 (305.2) 306.4 (173.4) 705.4 Equity securities Common stocks 5.9 (1.5) 0.1 0.3 (1.2) — (0.2) 3.4 Perpetual preferred stocks 55.3 (3.9) (0.1) 2.5 (2.6) 3.0 — 54.2 Total equity securities 61.2 (5.4) — 2.8 (3.8) 3.0 (0.2) 57.6 Derivatives — — — — — — — — Total financial assets $ 701.6 $ (9.9) $ 21.3 $ 223.2 $ (309.0) $ 309.4 $ (173.6) $ 763.0 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 $ (5.4) $ — $ — $ — $ — $ — $ 3.0 Other 1.8 (0.5) — — — — — 1.3 Total financial liabilities $ 10.2 $ (5.9) $ — $ — $ — $ — $ — $ 4.3 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): December 31, 2020 Fair Value Measurement Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans $ 57.2 $ 57.2 $ — $ — $ 57.2 Policy loans 17.8 17.8 — 17.8 — Other invested assets 11.3 11.3 — — 11.3 Total assets not accounted for at fair value $ 86.3 $ 86.3 $ — $ 17.8 $ 68.5 Liabilities Annuity benefits accumulated (1) $ 237.8 $ 235.2 $ — $ — $ 235.2 Long-term obligations (2) 560.4 578.8 — 578.8 — Total liabilities not accounted for at fair value $ 798.2 $ 814.0 $ — $ 578.8 $ 235.2 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 — Other invested assets — — — — — 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) 722.2 718.0 — 718.0 — Total liabilities not accounted for at fair value $ 956.1 $ 949.0 $ — $ 718.0 $ 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 | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, net | 8. Accounts Receivable, net Accounts receivable, net consist of the following (in millions): December 31, 2020 2019 Contracts in progress $ 118.6 $ 149.0 Unbilled retentions 50.3 51.7 Trade receivables 7.5 8.3 Other receivables 8.9 21.0 Allowance for doubtful accounts (0.6) (1.1) Total $ 184.7 $ 228.9 |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Inventory | 9. Inventory Inventory is recognized in the Consolidated Balance Sheets within Other assets, and consists of the following (in millions): December 31, 2020 2019 Raw materials and consumables $ 8.7 $ 9.6 Work in process — 0.8 Finished goods 1.2 0.3 Total $ 9.9 $ 10.7 |
Recoverable from Reinsurers
Recoverable from Reinsurers | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Recoverable from Reinsurers | 10. Recoverable from Reinsurers Recoverable from reinsurers consists of the following (in millions): December 31, 2020 December 31, 2019 Reinsurer A.M. Best Rating Amount % of Total Amount % of Total Munich American Reassurance Company A+ $ 366.6 38.3 % $ 347.6 36.4 % Hannover Life Reassurance Company of America A+ 306.3 32.0 % 323.3 33.9 % Loyal American Life Insurance Company A 150.7 15.7 % 147.5 15.5 % Great American Life Insurance Company A+ 57.4 6.0 % 56.2 5.9 % ManhattanLife Assurance Company of America B+ 46.4 4.8 % 47.0 4.9 % Other 30.1 3.2 % 32.1 3.4 % Total $ 957.5 100.0 % $ 953.7 100.0 % |
Property, Plant, and Equipment,
Property, Plant, and Equipment, net | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant, and Equipment, net | 11. Property, Plant and Equipment, net Property, plant and equipment consists of the following (in millions): December 31, 2020 2019 Equipment, furniture and fixtures, and software $ 116.3 $ 117.8 Building and leasehold improvements 41.3 40.1 Land 24.1 24.4 Construction in progress 3.1 2.9 Plant and transportation equipment 4.4 4.9 189.2 190.1 Less: Accumulated depreciation 75.3 60.6 Total $ 113.9 $ 129.5 Depreciation expense was $21.1 million and $21.6 million for the years ended December 31, 2020 and 2019, respectively. These amounts included $9.1 million of depreciation expense recognized within cost of revenue for each of the years ended December 31, 2020 and 2019. |
Goodwill and Intangibles, net
Goodwill and Intangibles, net | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles, net | 12. Goodwill and Intangibles, net On an annual basis, the Company performs it's goodwill impairment review in accordance with ASC 350. Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third-party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. After considering all quantitative and qualitative factors, the Company has determined that other than noted below it is more likely than not that the reporting units' fair values exceed carrying values as of the period end. The Company reports goodwill impairment charges within the Asset impairment expense line of our Consolidated Statements of Operations. 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 2020 impairment test. Spectrum As a result of the goodwill assessment, the Company determined that COVID-19's impact to the Spectrum segment in the first quarter of 2020 was a “triggering event” 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. At December 31, 2020, the Company further reviewed qualitative factors of potential impairment for Goodwill and Intangible assets, inclusive of further impact of COVID-19, and there were no triggering events which would indicate impairment may have occurred. Insurance There were several factors that occurred in the fourth quarter of 2019, which impacted the fair value of the Insurance segment, primarily with respect to the future of the management fee agreement, along with our expectations of future dividends, after recent and ongoing discussions with our domestic regulator. While these factors do not have a major impact on the operations of the business, they do impact the ability to capture the value which is effectively trapped in the Insurance company. As a result of the factors described above, our book value at CGI exceeded fair value, and the Company recognized a goodwill impairment charge of $47.3 million at our Insurance segment. Net income of CGI, after the impact of the goodwill impairment was $51.4 million for the year ended December 31, 2019. At December 31, 2019, after the impact of the goodwill impairment, the book value of CGI was $456.3 million, and we would expect additional book losses to the extent CGI is sold in the future. Goodwill The carrying amount of goodwill by segment were as follows (in millions): Infrastructure Spectrum Insurance Total Balance at December 31, 2018 $ 82.2 $ 21.4 $ 47.3 $ 150.9 Measurement Period Adjustment 7.1 — — 7.1 Impairments — — (47.3) (47.3) Translation (0.3) — — (0.3) Balance at December 31, 2019 89.0 21.4 — 110.4 Translation 0.6 — — 0.6 Balance at December 31, 2020 $ 89.6 $ 21.4 $ — $ 111.0 Indefinite-lived Intangible Assets The carrying amount of indefinite-lived intangible assets were as follows (in millions): December 31, 2020 2019 FCC licenses $ 113.0 $ 136.2 State licenses 2.5 2.5 Total $ 115.5 $ 138.7 The Spectrum segment strategically acquires assets across the United States, which results in the recording of FCC licenses. Providing the Company acts within the requirements and constraints of the regulatory authorities, the renewal and extension of these licenses is reasonably certain at minimal costs. Accordingly, we have concluded that the acquired FCC licenses are indefinite-lived intangible assets. In 2020, FCC licenses decreased $23.2 million. The decrease was primarily related to $20.5 million of dispositions and $3.0 million of impairments. 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 December 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Trade names 14 years $ 18.0 $ (4.6) $ 13.4 $ 17.9 $ (3.2) $ 14.7 Customer relationships 9 years 36.4 (12.1) 24.3 36.2 (8.8) 27.4 Channel sharing arrangements 35 years 20.2 (1.6) 18.6 27.2 (0.9) 26.3 Other 7 years 5.5 (2.7) 2.8 5.4 (1.9) 3.5 Total $ 80.1 $ (21.0) $ 59.1 $ 86.7 $ (14.8) $ 71.9 During the third quarter of 2020, the Spectrum segment recorded an impairment of certain channel sharing arrangements of $7.0 million as a result of management's decision to sell certain non-core assets. Amortization expense for definite lived intangible assets was $6.0 million and $9.9 million for the years ended December 31, 2020 and 2019, respectively, and was included in Depreciation and amortization in our Consolidated Statements of Operations. VOBA VOBA is amortized in relation to the projected future premium of the acquired long-term care blocks of business and recorded amortization increases in net income for the respective period. Negative amortization of VOBA was $21.3 million and $23.5 million for the years ended December 31, 2020 and 2019, respectively, Amortization 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): Estimated Amortization Definite Lived Intangible Assets Negative VOBA 2021 $ 5.9 $ (19.6) 2022 5.7 (18.3) 2023 5.6 (17.1) 2024 5.5 (15.8) 2025 4.9 (14.7) Thereafter 31.5 (114.3) Total $ 59.1 $ (199.8) |
Life, Accident and Health Reser
Life, Accident and Health Reserves | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Life, Accident and Health Reserves | 13. Life, Accident and Health Reserves Life, accident and health reserves consist of the following (in millions): December 31, 2020 2019 Long-term care insurance reserves $ 4,269.0 $ 4,201.6 Traditional life insurance reserves 166.0 173.4 Other accident and health insurance reserves 192.5 192.1 Total life, accident and health reserves $ 4,627.5 $ 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): Years Ended December 31, 2020 2019 Beginning balance $ 761.3 $ 738.7 Less: recoverable from reinsurers (131.0) (136.4) Beginning balance, net 630.3 602.3 Current year 217.5 211.8 Prior years (49.8) (47.2) Total incurred 167.7 164.6 Paid related to insured events of: Current year (18.2) (17.5) Prior years (152.1) (141.0) Total paid (170.3) (158.5) Interest on liability for policy and contract claims 22.5 21.9 Ending balance, net 650.2 630.3 Add: recoverable from reinsurers 132.2 131.0 Ending balance $ 782.4 $ 761.3 The Insurance segment experienced a favorable claims reserve development of $49.8 million and $47.2 million for the years ended December 31, 2020 and 2019, respectively. The main drivers of the current year were favorable development with paid claims and claim terminations in the current year for claims incurred prior to 2020. This favorable development in the current year relative to the prior year was influenced by the COVID-19 pandemic. |
Accounts Payable and Other Curr
Accounts Payable and Other Current Liabilities | 12 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accounts Payable and Other Current Liabilities | 14. Accounts Payable and Other Current Liabilities Accounts payable and other current liabilities consist of the following (in millions): December 31, 2020 2019 Accounts payable $ 69.7 $ 68.6 Accrued expenses and other current liabilities 52.7 70.1 Accrued payroll and employee benefits 38.2 38.7 Accrued interest 13.9 11.3 Accrued income taxes 1.8 1.9 Total accounts payable and other current liabilities $ 176.3 $ 190.6 |
Debt Obligations
Debt Obligations | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Obligations | 15. Debt Obligations Debt obligations consist of the following (in millions): December 31, 2020 2019 Infrastructure LIBOR plus 5.85% Note, due 2023 $ 71.6 $ 77.0 LIBOR plus 1.5% Line of Credit 38.7 48.9 Obligations under finance leases 0.2 0.2 Spectrum 8.50% Note due 2021 19.3 36.2 10.50% Note due 2021 32.9 42.5 Other, various maturity dates 2.9 7.9 Obligations under finance leases 0.6 1.4 Non-Operating Corporate 11.50% Senior Secured Notes, due 2021 (1) 340.4 470.0 7.50% Convertible Senior Notes, due 2022 (2) 55.0 55.0 LIBOR plus 6.75% Line of Credit (3) 15.0 15.0 Total 576.6 754.1 Issuance discount, net and deferred financing costs (15.1) (30.2) Debt obligations $ 561.5 $ 723.9 ( 1) On February 1, 2021, the Company closed on $330.0 million of 8.500% senior secured notes due 2026 at an issue price of 100%. The proceeds from the issuance of the Notes were used to redeem in full HC2’s existing 11.50% senior secured notes and repay the outstanding indebtedness under the 2020 Revolving Credit Agreement. (2) As part of the February 1, 2021 refinancing of the senior secured notes, HC2 entered into exchange agreements with certain holders of approximately $51.8 million of our outstanding 7.50% Convertible Senior Notes due June 1, 2022, which extended the maturity date of the notes to August 1, 2026. (3) On February 23, 2021, the Company entered into a third amendment of the 2020 Revolving Credit Agreement with MSD PCOF Partners IX, LLC, increasing the aggregate principal amount of the Revolving Credit Facility to $20.0 million, and extending the maturity date of the Revolving Credit Facility to February 23, 2024. Aggregate finance lease and debt payments, including interest are as follows (in millions): Finance Leases Debt Total 2021 $ 0.7 $ 504.2 $ 504.9 2022 0.1 69.6 69.7 2023 — 71.8 71.8 2024 — 7.8 7.8 2025 — — — Thereafter — — — Total minimum principal and interest payments 0.8 653.4 654.2 Less: Amount representing interest — (77.6) (77.6) Total aggregate finance lease and debt payments $ 0.8 $ 575.8 $ 576.6 The interest rates on the finance leases range from approximately 2.0% to 11.5%. Infrastructure Wells Fargo Facility DBMG has a Credit and Security Agreement ("Wells Fargo Facility") with Wells Fargo Bank, National Association ("Wells Fargo"). Under the initial terms of the agreement, Wells Fargo agreed to advance up to a maximum amount of $50.0 million to DBMG, including up to $14.5 million of letters of credit (the "Revolving Line"). The Revolving Line had a floating interest rate based on LIBOR plus 2.0%, required monthly interest payments, and was due in April 2019. The Wells Fargo Facility allows for the issuance by DBMG of additional loans in the form of notes of up to $10.0 million ("Real Estate Term Advance"), at LIBOR plus 2.5% and the issuance of a note payable of up to $15.0 million, ("Real Estate Term Advance 2") at LIBOR plus 2.5%, each as separate tranches of debt under the Wells Fargo Facility. In April 2018, the Wells Fargo Facility was amended, increasing the maximum advance amount under the Revolving Line to $70.0 million, modifying the floating interest rate to daily three month LIBOR plus 1.5% and extending the maturity date through March 31, 2023. The amendment also created a $17.0 million long-term tranche under the $70.0 million Revolving Line with a maturity date of May 31, 2025. Additionally, The Real Estate Term Advance and Real Estate Advance 2 interest rates were modified to daily three month LIBOR plus 2.25% with a maturity date of April 2024. In July 2018, the Wells Fargo Facility was amended, increasing the availability of the borrowing base allowing DBMG to borrow an additional $10.0 million of the $70.0 million total line and bearing interest at daily three month LIBOR plus 2.5%. The temporary borrowing base increase and related interest had an initial maturity date of October 2018, subsequently extended to November 2018. In November 2018, the Wells Fargo Facility was amended, increasing the maximum advance amount under the Revolving Line to up to $80.0 million. In May 2019, the Wells Fargo Facility was amended, permanently increasing the borrowing base to allow greater availability of the $80.0 million total line. The $17.0 million long-term tranche was also increased to $22.0 million with a maturity of May 2026. The Wells Fargo Facility maturity date was also extended to April 2024. In April 2020, the Wells Fargo Facility was amended, increasing LIBOR floor from zero to 0.75%. As of December 31, 2020, $17.0 million was issued through term loans and $21.7 million was issued through the revolver. In addition, $9.8 million in outstanding letters of credit were issued under the Wells Fargo Facility, of which zero has been drawn. TCW Loan In November 2018, DBMG and its subsidiaries entered into a financing agreement with TCW Asset Management Company LLC ("TCW"), for the aggregate principal amount of $80.0 million (the "TCW Loan"). The net proceeds from the TCW Loan were used to refinance the debt assumed and closing costs of the GrayWolf acquisition. The TCW Term Loan matures on the earlier of (a) November 30, 2023; (b) the maturity date of the Wells Fargo Facility; and (c) the 60 days prior to the maturity of the Senior Secured Notes and/or Convertible Notes if, on that day (and solely for so long as), any of such indebtedness remain outstanding. In April 2020, the TWC Loan was amended, increasing the LIBOR floor from 1.50% to 1.75% and linking the margin rate to certain covenant levels. The TCW Loan bears interest at a rate of 5.85% above the three month LIBOR. Spectrum As of December 31, 2018, there were $35.0 million of 8.50%, 364-day Secured Notes ("Secured Note") which were issued on August 7, 2018. In January 2019, the capacity of the Secured Note was increased by $15.0 million to $50.0 million and institutional investors funded $7.5 million of the Secured Note bringing the total outstanding balance to $42.5 million. In April 2019, an additional $0.7 million of notes were issued at 8.50%. In May, August, and September of 2019, Spectrum issued an additional $21.5 million of notes bearing interest of 8.50%. On October 24, 2019, Spectrum issued $78.7 million 364-day secured notes (the "2020 Notes"). The 2020 Notes were comprised of a $36.2 million, 8.50%,tranche, funded by an affiliate of MSD Partners, L.P. (the “8.50% Note”). The remaining $42.5 million, 10.50% tranche (the “10.50% Note”) was a modification of the existing Secured Note, with certain institutional investors. The 2020 Notes had an original maturity date of October 2020, and were amended multiple times during 2020 as further described below. The net proceeds from the financing were used to retire HC2 Broadcasting’s existing debt, as well as fund pending acquisitions, working capital and general corporate purposes. In connection with the issuance of the 10.50% Note due 2020, Spectrum issued warrants to the same institutional investors to purchase 50,000 shares of common stock at $176.4 per share for a total purchase price of $8.8 million, or net settled, if exercised as of the issuance date, and as may be adjusted at any future exercise of the warrant pursuant to its terms. The warrant has a five-year term and is immediately exercisable. In February 2020, Spectrum amended its agreement governing its 8.50% 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 8.50% Note and 10.50% Note to October 2021. In September 2020, Spectrum further amended its agreement governing 8.50% Note, 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. In November 2020, Spectrum paid down $2.9 million of its 8.50% Note and $3.0 million on other various notes. In December 2020, Spectrum paid down $21.0 million and $9.6 million of its 8.5% Note and 10.5% Note, respectively from the proceeds from the sale of stations. Non-Operating Corporate On November 20, 2018, HC2 repaid its 11.0% Notes, and issued $470.0 million aggregate principal amount of 11.50% senior secured notes due 2021 (the "Senior Secured Notes") and $55.0 million aggregate principal amount of 7.5% convertible senior notes due June 1, 2022 (the "Convertible Notes"). The Senior Secured Notes and Convertible notes were issued in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The Convertible Notes have an effective interest rate of 17.54% which reflects $12.5 million discount due to the bifurcated conversion feature and $1.9 million deferred financings fees. The Company accounted for the transaction under the debt extinguishment model as the present value cash flows under the terms of the Senior Secured Notes and Convertible Notes was at least 10% different from the present value of the remaining cash flows under the 11.0% Notes. Unamortized debt issuance costs and net original issuance premium in the amount of $2.6 million were recorded within Other income. Senior Secured Notes The Senior Secured Notes were issued under an indenture dated November 20, 2018, by and among the Company, the guarantors party thereto and U.S. Bank National Association, a national banking association ("U.S. Bank"), as trustee (the "Secured Indenture"). The Senior Secured Notes were issued at 98.75% of par, which translated into a discount of $5.9 million. In March 2020, with the cash proceeds from the sale of GMSL, HC2 redeemed $76.9 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 $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. In October 2020, HC2 redeemed an additional $2.1 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 $0.1 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. Convertible Notes The Convertible Notes were issued under a separate indenture dated November 20, 2018, between the Company and U.S. Bank, as trustee (the "Convertible Indenture"). The Convertible Notes were issued at 100% of par. Each $1,000 of principal of the Convertible Notes will initially be convertible into 234.2971 shares of our common stock, which is equivalent to an initial conversion price of approximately $4.27 per share, subject to adjustment upon the occurrence of specified events. In accordance with ASC Topic 815-15, Derivatives and Hedging , the embedded conversion feature contained in the Convertible Notes is required to be bifurcated and recorded as a derivative liability and marked to market in each reporting period. The embedded conversion feature had a fair value of $12.5 million on the transaction date, which was recorded as a discount on the Convertible Notes and included within Other liabilities on our Consolidated Balance Sheets. The fair value of the embedded conversion feature was $5.8 million as of December 31, 2020, the change in fair value from the transaction date being recorded within Other income. In conjunction with the issuance of the Convertible Notes in 2018, the Company incurred a consent fee payable to preferred stockholders of $3.8 million. This fee was recorded within the Preferred stock and deemed dividends line item of the Consolidated Statements of Operations as a deemed dividend. At December 31, 2020, the Convertible Notes had a net carrying value of $48.1 million and an unamortized discount of $6.0 million. Based on the closing price of our common stock of $3.26 on December 31, 2020, the if-converted value of the Convertible Notes did not exceed its principal value. For the year ended December 31, 2020, interest cost recognized for the period relating to both the contractual interest coupon and amortization of the discount on the Convertible notes was $4.1 million and $3.4 million, respectively. For the year ended December 31, 2019, interest cost recognized for the period relating to both the contractual interest coupon and amortization of the discount on the Convertible notes was $4.1 million and $2.9 million, respectively. Line of credit In April 2019, HC2 entered into a $15.0 million secured revolving credit agreement (the “2019 Revolving Credit Agreement”) with MSD PCOF Partners IX, LLC. The 2019 Revolving Credit Agreement matures in June 2021. Loans under the 2019 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 2019 and May 2019, HC2 drew $5.0 million and $10.0 million of the 2019 Revolving Credit Agreement, respectively. The Company used the proceeds for working capital and general corporate purposes. In March 2020, with the cash proceeds from the sale of GMSL, HC2 fully repaid its $15.0 million 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. Senior Secured Notes Terms and Conditions Maturity . The Secured Notes mature on December 1, 2021. Interest . The Secured Notes accrue interest at a rate of 11.50% per year. Interest on the Secured Notes is paid semi-annually on December 1 and June 1 of each year. Issue Price . The issue price of the Secured Notes was 98.75% of par. Ranking . The notes and the note guarantees are the Company’s and certain of its direct and indirect domestic subsidiaries’ (the "Subsidiary Guarantors") general senior secured obligations. The notes and the note guarantees will rank: (i) senior in right of payment to all of the Company’s and the Subsidiary Guarantors’ future subordinated debt; (ii) equal in right of payment, subject to the priority of any First-Out Obligations (as defined in the Secured Indenture), with all of the Company’s and the Subsidiary Guarantors’ existing and future senior debt and effectively senior to all of its and the Subsidiary Guarantor’s unsecured debt to the extent of the value of the collateral; and (iii) effectively subordinated to all liabilities of its non-guarantor subsidiaries. The notes and the note guarantees are secured on a first-priority basis by substantially all of the Company’s assets and the assets of the Subsidiary Guarantors, subject to certain exceptions and permitted liens. Collateral . The Secured Notes are secured by a first priority lien on substantially all of the Company’s assets (except for certain "Excluded Assets," and subject to certain "Permitted Liens," each as defined in the Secured Indenture), including, without limitation: • all equity interests owned by the Company or a Subsidiary Guarantor (which, in the case of any equity interest in a foreign subsidiary, will be limited to 100% of the non-voting stock (if any) and 65% of the voting stock of such foreign subsidiary) and the related rights and privileges associated therewith (but excluding Equity Interests of Insurance Subsidiaries (as defined in the Secured Indenture), to the extent the pledge thereof is deemed a "change of control" under applicable insurance regulations); • all equipment, goods and inventory owned by the Company or a Subsidiary Guarantor; • all cash and investment securities owned by the Company or a Subsidiary Guarantor; • all documents, books and records, instruments and chattel paper owned by the Company or a Subsidiary Guarantor; • all general intangibles owned by the Company or a Subsidiary Guarantor; and • any proceeds and supporting obligations thereof. The Secured Indenture permits the Company, under specified circumstances, to incur additional debt in the future that could equally and ratably share in the collateral. The amount of such debt is limited by the covenants contained in the Secured Indenture. Events of Default . The Secured Indenture contains customary events of default which could, subject to certain conditions, cause the Secured Notes to become immediately due and payable. Convertible Notes Terms and Conditions Certain terms and conditions of the Convertible Notes are as follows: Maturity . The Convertible Notes mature on June 1, 2022 unless earlier converted, redeemed or purchased. Interest . The Convertible Notes accrue interest at a rate of 7.5% per year. Interest on the Convertible Notes is paid semi-annually on December 1 and June 1 of each year. Issue Price . The issue price of the Convertible Notes was 100% of par. Ranking . The notes are the Company’s general unsecured and unsubordinated obligations and will rank equally in right of payment with all of the Company’s existing and future unsecured and unsubordinated indebtedness, and senior in right of payment to any of the Company’s future indebtedness that is expressly subordinated to the notes. The notes will be effectively subordinated to all of the Company’s existing and future secured indebtedness, including the Company’s Secured Notes, to the extent of the value of the collateral securing that indebtedness, and structurally subordinated to all indebtedness and other liabilities of the Company’s subsidiaries, including trade credit. Optional Redemption . The Company may not redeem the notes prior to June 1, 2020. On or after June 1, 2020, the Company may redeem for cash all of the notes if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (which need not be consecutive trading days) during any 30 consecutive trading-day period ending within five principal amount of the notes being redeemed, plus accrued and unpaid interest, including additional interest, if any, to, but excluding, the redemption date. Conversion Rights . The Convertible Notes are convertible into shares of the Company’s common stock based on an initial conversion rate of 228.3105 shares of common stock per $1,000 principal amount of Convertible Notes (equivalent to an initial conversion price of approximately $4.38 per share of the Company’s common stock), at any time prior to the close of business on the business day immediately preceding the maturity date, in principal amounts of $1,000 or an integral multiple of $1,000 in excess thereof. In addition, following a Make-Whole Fundamental Change (as defined in the Convertible Indenture) or the Company’s delivery of a notice of redemption for the Convertible Notes, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Convertible Notes in connection with (i) such Make-Whole Fundamental Change or (ii) such notice of redemption. However, to comply with certain listing standards of The New York Stock Exchange, the Company will settle in cash its obligation to increase the conversion rate in connection with a Make-Whole Fundamental Change or redemption until it has obtained the requisite stockholder approval. Events of Default . The Convertible Indenture contains customary events of default which could, subject to certain conditions, cause the Convertible Notes to become immediately due and payable. 2020 Revolving Credit Agreement Lender. MSD PCOF Partners IX, LLC (“MSD”) Ranking. Obligations under the 2020 Revolving Credit Agreement constitute a First-Out Debt, as defined in the Senior Indenture, and are secured on a pari passu basis with the Secured Notes. Collateral: As provided under a Collateral Trust Joinder, the lender was added as a secured party to the Collateral Trust Agreement, and accordingly the pari passu obligations and commitments under the Credit Agreement are secured equally and ratably by the collateral of the Secured Notes. HC2 is in compliance with our debt covenants as of December 31, 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | 16. Leases Operating lease right-of-use-assets and finance leases are recognized in the consolidated balance sheets within Other assets and Property, plant and equipment, net, respectively. Operating lease liability and finance lease liability are recognized in the consolidated balance sheet within Other liabilities and Debt obligations, respectively. As of December 31, 2020 and 2019, lease right-of-use assets and lease liabilities consists of the following (in millions): December 31, 2020 2019 Right-of-use assets: Operating lease (Other assets) $ 44.3 $ 47.4 Finance lease (Property, plant and equipment, net) 0.9 2.1 Total right-of-use assets $ 45.2 $ 49.5 Lease liabilities: Operating lease (Other liabilities) $ 47.5 $ 51.0 Finance lease (Debt obligations) 0.8 1.6 Total lease liabilities $ 48.3 $ 52.6 The tables below present financial information associated with the Company's leases. This information is presented as of, and for the years ended December 31, 2020 and 2019. The Company has entered into operating and finance lease agreements primarily for land, office space, equipment and vehicles, expiring between 2021 and 2045. The following table summarizes the components of lease expense for the year ended December 31, 2020 and 2019 (in millions): Years Ended December 31, 2020 2019 Finance lease cost: Amortization of right-of-use assets $ 1.3 $ 1.2 Interest on lease liabilities 0.1 0.2 Net finance lease cost 1.4 1.4 Operating lease cost 17.1 13.8 Variable lease cost 0.3 0.3 Sublease income — (0.1) Total lease cost $ 18.8 $ 15.4 Cash flow information related to leases for the year ended December 31, 2020 and 2019 are as follows (in millions): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.1 $ 0.2 Financing cash flows from finance leases $ 0.9 $ 1.4 Operating cash flows from operating leases $ 17.0 $ 13.9 Right-of-use assets obtained in exchange for new lease liabilities Finance leases $ 0.1 $ 2.1 Operating leases $ 15.8 $ 60.3 As of December 31, 2020 and 2019, the weighted-average remaining lease term and the weighted-average discount rate for finance leases and operating leases are as follows: December 31, 2020 2019 Weighted-average remaining lease term (years) - operating lease 4.3 5.0 Weighted-average remaining lease term (years) - finance lease 0.9 1.8 Weighted-average discount rate - operating lease 6.0 % 6.2 % Weighted-average discount rate - finance lease 8.9 % 9.4 % As of December 31, 2020, undiscounted cash flows for finance and operating leases are as follows (in millions): Operating Finance 2021 $ 15.1 $ 0.7 2022 12.8 0.1 2023 10.7 — 2024 8.0 — 2025 4.0 — Thereafter 4.2 — Total future lease payments 54.8 0.8 Less: Present values (7.3) — Total lease liability balance $ 47.5 $ 0.8 The Company expects $0.9 million of lease payments in 2021 resulting from short-term leases not accounted for under ASC 842. |
Leases | 16. Leases Operating lease right-of-use-assets and finance leases are recognized in the consolidated balance sheets within Other assets and Property, plant and equipment, net, respectively. Operating lease liability and finance lease liability are recognized in the consolidated balance sheet within Other liabilities and Debt obligations, respectively. As of December 31, 2020 and 2019, lease right-of-use assets and lease liabilities consists of the following (in millions): December 31, 2020 2019 Right-of-use assets: Operating lease (Other assets) $ 44.3 $ 47.4 Finance lease (Property, plant and equipment, net) 0.9 2.1 Total right-of-use assets $ 45.2 $ 49.5 Lease liabilities: Operating lease (Other liabilities) $ 47.5 $ 51.0 Finance lease (Debt obligations) 0.8 1.6 Total lease liabilities $ 48.3 $ 52.6 The tables below present financial information associated with the Company's leases. This information is presented as of, and for the years ended December 31, 2020 and 2019. The Company has entered into operating and finance lease agreements primarily for land, office space, equipment and vehicles, expiring between 2021 and 2045. The following table summarizes the components of lease expense for the year ended December 31, 2020 and 2019 (in millions): Years Ended December 31, 2020 2019 Finance lease cost: Amortization of right-of-use assets $ 1.3 $ 1.2 Interest on lease liabilities 0.1 0.2 Net finance lease cost 1.4 1.4 Operating lease cost 17.1 13.8 Variable lease cost 0.3 0.3 Sublease income — (0.1) Total lease cost $ 18.8 $ 15.4 Cash flow information related to leases for the year ended December 31, 2020 and 2019 are as follows (in millions): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.1 $ 0.2 Financing cash flows from finance leases $ 0.9 $ 1.4 Operating cash flows from operating leases $ 17.0 $ 13.9 Right-of-use assets obtained in exchange for new lease liabilities Finance leases $ 0.1 $ 2.1 Operating leases $ 15.8 $ 60.3 As of December 31, 2020 and 2019, the weighted-average remaining lease term and the weighted-average discount rate for finance leases and operating leases are as follows: December 31, 2020 2019 Weighted-average remaining lease term (years) - operating lease 4.3 5.0 Weighted-average remaining lease term (years) - finance lease 0.9 1.8 Weighted-average discount rate - operating lease 6.0 % 6.2 % Weighted-average discount rate - finance lease 8.9 % 9.4 % As of December 31, 2020, undiscounted cash flows for finance and operating leases are as follows (in millions): Operating Finance 2021 $ 15.1 $ 0.7 2022 12.8 0.1 2023 10.7 — 2024 8.0 — 2025 4.0 — Thereafter 4.2 — Total future lease payments 54.8 0.8 Less: Present values (7.3) — Total lease liability balance $ 47.5 $ 0.8 The Company expects $0.9 million of lease payments in 2021 resulting from short-term leases not accounted for under ASC 842. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 17. Income Taxes The provisions (benefits) for income taxes for the years ended December 31, 2020 and 2019 were as follows (in millions): Years Ended December 31, 2020 2019 Current: Federal $ (9.2) $ 3.8 State 1.7 2.4 Foreign 9.5 1.4 Subtotal Current 2.0 7.6 Deferred: Federal 5.0 (27.0) State 0.1 (0.1) Foreign 3.4 (0.1) Subtotal Deferred 8.5 (27.2) Income tax (benefit) expense $ 10.5 $ (19.6) The US and foreign components of income (loss) from continuing operations before income taxes for the years ended December 31, 2020 and 2019 were as follows (in millions): Years Ended December 31, 2020 2019 US $ (106.1) $ (49.7) Foreign 78.3 7.9 Income (loss) from continuing operations before income taxes $ (27.8) $ (41.8) The provisions (benefits) for income taxes differed from the amount computed by applying the federal statutory income tax rate to income (loss) before income taxes due to the following items for the years ended December 31, 2020 and 2019 (in millions): Years Ended December 31, 2020 2019 Tax provision (benefit) at federal statutory rate $ (5.8) $ (8.8) Permanent differences (0.3) 0.2 State tax, net of federal benefit (6.8) (7.3) Foreign rate differential 0.2 0.5 Minority interest — 0.2 Executive and stock compensation 1.2 2.5 Increase (decrease) in valuation allowance 24.1 (9.5) Transaction costs 0.5 — Return to provision 4.3 (6.0) ASU 2017-11 adoption — (1.3) Goodwill impairment — 10.0 Transition to the Coronavirus Aid, Relief, and Economic Security Act (10.9) — Withholding Tax Expense 7.3 — Gain/loss on sale or deconsolidation of a subsidiary (6.4) — Outside Basis Difference (0.9) — Contingent Liability 2.2 — AOCI Recycling 2.1 — Other (1.8) (1.8) Warrant Liability 1.5 1.7 Income tax (benefit) expense $ 10.5 $ (19.6) The income tax expense as of December 31, 2020 is $10.5 million. The amount recorded primarily relates to tax expense incurred in China from the partial sale of HMN and the tax expense as calculated under ASC 740 for taxpaying entities, primarily the Insurance segment, offset by the gain on sale of HMN entities in the second quarter of 2020 and a 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. tax consolidated group 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. The income tax benefit was $19.6 million for the year ended December 31, 2019. The benefit was primarily driven by a net valuation allowance release of $37.4 million related to the Insurance segment partially offset by an impairment of goodwill which is not deductible for tax purposes. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax purposes. Net deferred tax balances are comprised of the following as of December 31, 2020 and 2019 (in millions): December 31, 2020 2019 Net operating loss carryforwards $ 72.9 $ 89.2 Basis difference in fixed assets 0.8 3.2 Deferred compensation 7.3 12.7 Lease liability 13.0 17.4 UK trading loss carryforward — 38.3 Sec. 163(j) carryforward 58.6 39.6 Insurance claims and reserves 176.4 166.1 Value of insurance business acquired ("VOBA") 43.7 48.5 Deferred acquisition costs 19.0 16.7 Other deferred tax assets 21.2 14.3 Total deferred tax assets 412.9 446.0 Valuation allowance (110.6) (121.8) Total net deferred tax assets 302.3 324.2 Basis difference in intangibles (22.7) (19.1) Basis difference in fixed assets (22.3) (24.8) Insurance company investments (373.1) (335.0) Right of use assets (12.1) (16.2) Other deferred tax liabilities (11.1) (10.1) Total deferred tax liabilities (441.3) (405.2) Net deferred tax liabilities $ (139.0) $ (81.0) At December 31, 2020, the above deferred tax asset, $8.6 million of deferred tax asset and $0.4 million of valuation allowance is classified as held for sale asset on the balance sheet, and $9.3 million of deferred tax liability is classified as held for sale liabilities on the balance sheet. At December 31, 2019, $51.3 million of deferred tax asset and $41.0 million of valuation allowance is classified as held for sale asset on the balance sheet, and $12.5 million of deferred tax liability is classified as held for sale liabilities on the balance sheet. Deferred tax assets refer to assets that are attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets in essence represent future savings of taxes that would otherwise be paid in cash. The realization of the deferred tax assets is dependent upon the generation of sufficient future taxable income, including capital gains. If it is determined that the deferred tax assets cannot be realized, a valuation allowance must be established, with a corresponding charge to net income. In accordance with ASC 740, the Company establishes valuation allowances for deferred tax assets that, in its judgment are not more likely-than-not realizable. These judgments are based on projections of future income or loss and other positive and negative evidence by individual tax jurisdiction. Changes in industry and economic conditions and the competitive environment may impact these projections. In accordance with ASC Topic 740, during each reporting period the Company assesses the likelihood that its deferred tax assets will be realized and determines if adjustments to its valuation allowances are appropriate. Management evaluated the need to maintain the valuation allowance against the deferred taxes of the HC2 Holdings, Inc. U.S. consolidated tax group (“the group”) for each of the reporting periods based on the positive and negative evidence available. The objective negative evidence evaluated was the group’s historical operating results over the prior three-year period. The group is in a cumulative three-year loss as of December 31, 2020 and is forecasting losses in the near future, which provide negative evidence that is difficult to overcome and would require a substantial amount of objectively verifiable positive evidence of future income to support the realizability of the group’s deferred tax assets. While positive evidence exists by way of unrealized gains in the Company’s investments, management concluded that the negative evidence now outweighs the positive evidence. Thus, it is more likely than not that the group’s US deferred tax assets will not be realized. Management evaluated the need to establish the valuation allowance against the deferred taxes of the Insurance Company for each of the reporting periods. Included in this assessment was the Insurance Company’s historical operating results over the prior three-year period. Additional positive and negative evidence was considered including the timing of the reversal of the deferred tax assets and liabilities, and projections of future income from the runoff of the insurance business. As a result of management’s assessment, it was determined that the Insurance Company is in a cumulative three-year income position which is expected to continue as supported by the projections of future income. As such, a valuation allowance was not recorded against the deferred tax assets of the Insurance Company. Valuation allowances have been maintained against deferred tax assets based on losses generated by certain businesses that do not qualify to be included in the HC2 Holdings, Inc. U.S. consolidated income tax return. At December 31, 2020, the Company has gross U.S. net operating loss carryforwards available to reduce future taxable income in the amount of $170.3 million. The Company expects that approximately $96.0 million of the gross U.S. net operating loss carryforwards would be available to offset taxable income in 2021. This estimate may change based on changes to actual results reported on the 2020 U.S. tax return. The amount of U.S. net operating loss carryforwards reflected in the financial statements differ from the amounts reported on the U.S. tax return due to uncertain tax positions related to tax laws and regulations that are subject to varied interpretation by the IRS. Additionally, the Company has $112.6 million of gross U.S. net operating loss carryforwards from its subsidiaries that do not qualify to be included in the HC2 U.S. consolidated income tax return, including $49.6 million from R2, $29.5 million from DTV America, and $29.3 million from ANG which is a discontinued operation and classified as held for sale, and other entities of $4.2 million. Due to U.S. enacted Public Law 115-97, known informally as the Tax Cuts and Jobs Act (the "TCJA") in 2017, U.S. net operating loss carryforwards in the amount of $52.6 million, generated after 2017 have an indefinite carryforward period. U.S. net operating loss carryforwards, in the amount of $117.7 million, generated prior to 2018 will expire, if unused, by 2037. Pursuant to the rules under Section 382, the Company believes that it underwent an ownership changes on May 29, 2014 and $46.1 million gross U.S. net operating losses recorded in the consolidated financial statements are subject to an annual limitation under IRC Sec. 382 of approximately $2.3 million. On November 4, 2015, HC2 issued 8,452,500 shares of its stock in a primary offering. The Company believes the issuance resulted in a Section 382 ownership change and $31.7 million gross U.S. net operating losses recorded in the consolidated financial statements are subject to IRC Sec. 382. The purchase of GrayWolf Industrial on November 30, 2018 triggered a Section 382 ownership change. $57.1 million of federal net operating losses acquired are subject to an annual limitation between $3.0 million and $4.0 million for the first five years beginning in 2019 and $1.1 million afterwards. $25.4 million of the GrayWolf U.S. net operating losses subject to Section 382 were generated in 2018, and, therefore, they do not expire. Additionally, the Company has $11.4 million of acquired U.S. net operating losses from DTV America, which is subject to an annual limitation under Section 382 of the Internal Revenue Code. As of December 31, 2020, the Company had foreign operating loss carryforwards of approximately $3.6 million, of which $2.3 million is related to discontinued operations and classified as held for sale. The Company follows the provision of ASC 740 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 . The Company did not have any unrecognized tax benefits as of December 31, 2020 and 2019 related to uncertain tax positions that would impact the effective income tax rate if recognized. The company has reduced the net operating loss carryforward by $69.6 million for uncertain tax positions based on our interpretation of tax laws and regulations that are subject to varied interpretation by the IRS. Below is a tabular reconciliation of the total amount of unrecognized tax benefits (in millions): December 31, 2020 2019 Uncertain tax benefits - January 1 $ — $ — Gross increases - Tax positions in prior period — — Gross decreases - Tax positions in prior period — — Gross increases - Tax positions in current period 22.9 — Settlement — — Lapse in statute of limitations — — Uncertain tax benefits - December 31 $ 22.9 $ — The Company conducts business globally, and as a result, HC2 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. Tax years 2002-2020 remain open for examination. The Company is currently under examination in various domestic and foreign tax jurisdictions. 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. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 18. Commitments and Contingencies Future minimum purchase obligations as of December 31, 2020 were as follows (in millions): 2021 $ 78.1 2022 0.2 2023 0.2 2024 0.2 2025 — Thereafter — Total obligations $ 78.7 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, PTGi International Carrier Services Ltd., 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. The Company 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. 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 DBMG’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. On February 23, 2021, FVI filed an Amended Verified Stockholder Class Action Complaint (the "Amended Complaint"). In the Amended Complaint, FVI named two additional defendants: HC2’s Chief Executive Officer, Wayne Barr, and DBMG’s General Counsel, Scott D. Sherman. The Amended Complaint includes additional fact allegations in support of the largely similar claims raised in the original complaint. Defendants expect to file a motion to dismiss the Amended Complaint in early April. HC2 believes the allegations in the FVI Amended Complaint are without merit and the HC2-related defendants have filed a motion to dismiss the complaint, which continues to be pending. HC2 intends to vigorously defend this litigation. 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 submitted a position statement to the DOL denying the material allegations in the complaint. The DOL has not issued a determination. Separation from Philip A. Falcone The Company has engaged in ongoing negotiations with Philip A. Falcone, the former Chairman, President and Chief Executive Officer of the Company, regarding his separation. Mr. Falcone rejected the Company’s most recent severance offer, and on December 18, 2020, Mr. Falcone filed a demand for arbitration against the Company with the American Arbitration Association. The Company contends that the claims in Mr. Falcone’s demand are without merit and that the Company has both factual and legal defenses. In addition, Mr. Falcone made two books and records demands of the Company, which the Company has denied, including in light of the fact that Mr. Falcone is no longer a director of the Company. 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 | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation | 19. Share-based Compensation On April 11, 2014, HC2’s Board of Directors adopted the HC2 Holdings, Inc. Omnibus Equity Award Plan (the "2014 Plan"), which was originally approved at the annual meeting of stockholders held on June 12, 2014. On April 21, 2017, the Board of Directors, subject to stockholder approval, adopted the Amended and Restated 2014 Omnibus Equity Award Plan (the "Restated 2014 Plan"). The Restated 2014 Plan was approved by HC2's stockholders at the annual meeting of stockholders held on June 14, 2017. Subject to adjustment as provided in the Restated 2014 Plan, the Restated 2014 Plan authorizes the issuance of 3,500,000 shares of common stock of HC2, plus any shares that again become available for awards under the 2014 Plan, plus any shares that again become available for awards under the Restated 2014 Plan. On April 20, 2018, the Board of Directors, subject to stockholder approval, adopted the Second Amended and Restated 2014 Omnibus Equity Award Plan (the "Second A&R 2014 Plan"). The Second A&R 2014 Plan was approved by HC2's stockholders at the annual meeting of stockholders held on June 13, 2018. Subject to adjustment as provided in the Second A&R 2014 Plan, the Second A&R 2014 Plan authorizes the issuance of up to 3,500,000 shares of common stock of HC2 plus any shares that again become available for awards under the 2014 Plan or the Amended 2014 Plan. The Second A&R 2014 Plan provides that no further awards will be granted pursuant to the Amended 2014 Plan. However, awards previously granted under either the 2014 Plan or the Amended 2014 Plan will continue to be subject to and governed by the terms of the 2014 Plan and Amended 2014 Plan, respectively. The Compensation Committee of HC2's Board of Directors administers the 2014 Plan, the Amended 2014 Plan and the Second A&R 2014 Plan and has broad authority to administer, construe and interpret the plans. The Second A&R 2014 Plan provides for the grant of awards of non-qualified stock options, incentive (qualified) stock options, stock appreciation rights, restricted stock awards, restricted stock units, other stock based awards, performance compensation awards (including cash bonus awards) or any combination of the foregoing. The Company typically issues new shares of common stock upon the exercise of stock options, as opposed to using treasury shares. The Company follows guidance which addresses the accounting for share-based payment transactions whereby an entity receives employee services in exchange for either equity instruments of the enterprise or liabilities that are based on the fair value of the enterprise’s equity instruments or that may be settled by the issuance of such equity instruments. The guidance generally requires that such transactions be accounted for using a fair-value based method and share-based compensation expense be recorded, based on the grant date fair value, estimated in accordance with the guidance, for all new and unvested stock awards that are ultimately expected to vest as the requisite service is rendered. The Company granted 143,096 and zero options during the year ended December 31, 2020 and 2019, respectively. For the year ended December 31, 2020, the weighted average fair value at date of grant for options granted 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: Year Ended December 31, 2020 Expected option life (in years) 4.3 years Risk-free interest rate 0.24% Expected volatility 62.23% Dividend yield —% Total share-based compensation expense recognized by the Company and its subsidiaries under all equity compensation arrangements was $3.0 million and $6.2 million for the years ended December 31, 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, 2018 3,031,469 $ 5.93 Granted 542,450 $ 2.57 Vested (1,349,531) $ 5.92 Forfeited (10,613) $ 2.91 Unvested - December 31, 2019 2,213,775 $ 5.12 Granted 1,152,202 $ 2.74 Vested (2,258,905) $ 4.08 Forfeited (478,639) $ 5.87 Unvested - December 31, 2020 628,433 $ 3.93 At December 31, 2020, the total unrecognized stock-based compensation expense related to unvested restricted stock was $1.1 million. The unrecognized compensation cost is expected to be recognized over the remaining weighted average period of 0.9 years. Stock Options A summary of HC2’s stock option activity is as follows: Shares Weighted Average Exercise Price Outstanding - December 31, 2018 7,160,861 $ 6.51 Granted — $ — Exercised — $ — Forfeited — $ — Expired (93,269) $ 5.47 Outstanding - December 31, 2019 7,067,592 $ 6.52 Granted 143,096 $ 2.62 Exercised — $ — Forfeited (142,503) $ 5.45 Expired (2,328,327) $ 9.18 Outstanding - December 31, 2020 4,739,858 $ 5.13 Eligible for exercise 4,697,653 $ 5.13 At December 31, 2020, the intrinsic value and average remaining life of the Company's outstanding options were $0.1 million and approximately 3.6 years, and intrinsic value and average remaining life of the Company's exercisable options were $0.1 million and approximately 3.6 years. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Equity | 20. 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. On September 17, 2020, Lancer Capital funded $5.56 million, receiving 5,560 shares of Series B Preferred stock. 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 was classified as Level 3. Fair value for the Backstop Commitment as of September 30, 2020, was zero. The Backstop Commitment ceased upon the consummation of the Rights Offering. On November 20, 2020, HC2's stockholders voted to approve (i) an amendment to the Company’s certificate of incorporation to increase the number of authorized shares of common stock of the Company to 160,000,000 shares and (ii) the conversion of up to 35,000 shares of Series B preferred stock of the Company in connection with the Company’s Rights Offering. On November 20, 2020, we completed the Rights Offering and issued a total of 28,716,820 shares of our common stock, 16,825,280 common shares were issued immediately, and 11,891,540 were issued from the conversion of 26,994 shares of Series B Preferred stock as noted below. Net proceeds of the November 20, 2020 issuance was $59.6 million. Inclusive of the initial Series B issuance on September 17, 2020, total net proceeds of the Rights Offering, after deducting the dealer manager fees and other offering expenses, were approximately $61.5 million. Preferred Shares The Company’s preferred shares authorized, issued and outstanding consisted of the following: 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 — — Series A Shares In connection with the issuance of the Series A Convertible Preferred Stock, the Company adopted a Certificate of Designation of Series A Convertible Participating Preferred Stock on May 29, 2014 (the "Series A Certificate"). In connection with the issuance of the Series A-1 Preferred Stock on September 22, 2014, the Company adopted the Certificate of Designation of Series A-1 Convertible Participating Preferred Stock (the "Series A-1 Certificate") and also amended and restated the Series A Certificate. In connection with the issuance of the Series A-2 Preferred Stock on January 5, 2015, the Company adopted the Certificate of Designation of Series A-2 Convertible Participating Preferred Stock (the "Series A-2 Certificate") and also amended and restated the Series A Certificate and the Series A-1 Certificate. On August 10, 2015, the Company adopted certain Certificates of Correction of the Certificates of Amendment to the Certificates of Designation of the Series A Certificate, the Series A-1 Certificate and the Series A-2 Certificate, and on June 24, 2016 the Company adopted certain amendments to the Series A-1 Certificate of Designation. The Series A Certificate, the Series A-1 Certificate and the Series A-2 Certificate together, as amended, are referred to as the "Certificates of Designation." The following summary of the terms of the Preferred Stock and the Certificates of Designation is qualified in its entirety by the complete terms of the Certificates of Designation. Dividends . The Preferred Stock accrues a cumulative quarterly cash dividend at an annualized rate of 7.50%. The accrued value of the Preferred Stock will accrete quarterly at an annualized rate of 4.00% that is reduced to 2.00% or 0.00% if the Company achieves specified rates of growth measured by increases in its net asset value; provided, that the accreting dividend rate will be 7.25% in the event that (i) the daily volume weighted average price ("VWAP") of the common stock is less than a certain threshold amount, (ii) the common stock is not registered under Section 12(b) of the Securities Exchange Act of 1934, as amended, (iii) following May 29, 2015, the common stock is not listed on certain national securities exchanges or (iv) the Company is delinquent in the payment of any cash dividends. The Preferred Stock is also entitled to participate in cash and in-kind distributions to holders of shares of common stock on an as-converted basis. Optional Conversion. Each share of Preferred Stock may be converted by the holder into common stock at any time based on the then applicable conversion price. Pursuant to the Series A Certificate, each share of Series A Preferred Stock is currently convertible at a conversion price of $3.52. Pursuant to the Series A-2 Certificate, each share of Series A-2 Preferred Stock is currently convertible at a conversion price of $5.32. Such conversion prices are subject to adjustment for dividends, certain distributions, stock splits, combinations, reclassifications, reorganizations, mergers, recapitalizations and similar events, as well as in connection with issuances of equity or equity-linked or other comparable securities by the Company at a price per share (or with a conversion or exercise price or effective issue price) that is below the applicable conversion price (which adjustment shall be made on a weighted average basis). Redemption by the Holders / Automatic Conversion. On May 29, 2021, holders of the Preferred Stock are entitled to cause the Company to redeem the Preferred Stock at the accrued value per share plus accrued but unpaid dividends (to the extent not included in the accrued value of Preferred Stock). Each share of Preferred Stock that is not so redeemed will be automatically converted into shares of common stock at the conversion price then in effect. Upon a change of control (as defined in the Certificates of Designation) holders of the Preferred Stock are entitled to cause the Company to redeem their Preferred Stock at a price per share of Preferred Stock equal to the greater of (i) the accrued value of the Preferred Stock, which amount would be multiplied by 150% in the event of a change of control occurring on or prior to May 29, 2017, plus any accrued and unpaid dividends (to the extent not included in the accrued value of Preferred Stock), and (ii) the value that would be received if the share of Preferred Stock were converted into common stock immediately prior to the change of control. Redemption by the Company. At any time after May 29, 2017, the Company may redeem the Preferred Stock, in whole but not in part, at a price per share generally equal to 150% of the original accrued value or on that date, plus accrued but unpaid dividends (to the extent not included in the accrued value of Preferred Stock), subject to the holder’s right to convert prior to such redemption. Forced Conversion. After May 29, 2017, the Company may force conversion of the Preferred Stock into common stock if the common stock’s thirty-day VWAP exceeds 150% of the then-applicable Conversion Price and the common stock’s daily VWAP exceeds 150% of the then applicable Conversion Price for at least twenty thirty Liquidation Preference. The Series A Preferred Stock ranks at parity with the Series A-2 Preferred Stock. In the event of any liquidation, dissolution or winding up of the Company (any such event, a "Liquidation Event"), the holders of Preferred Stock are entitled to receive per share the greater of (i) the accrued value of the Preferred Stock, which amount would be multiplied by 150% in the event of a Liquidation Event occurring on or prior to May 29, 2017, plus any accrued and unpaid dividends (to the extent not included in the accrued value of Preferred Stock), and (ii) the value that would be received if the share of Preferred Stock were converted into common stock immediately prior to such occurrence. The Preferred Stock will rank junior to any existing or future indebtedness but senior to the common stock and any future equity securities other than any future senior or pari-passu preferred stock issued in compliance with the Certificates of Designation. Voting Rights. Except as required by applicable law, the holders of the shares of each series of Preferred Stock are entitled to vote on an as-converted basis with the holders of the other series of Preferred Stock (on an as-converted basis) and holders of the Company’s common stock on all matters submitted to a vote of the holders of common stock. Certain series of Preferred Stock are entitled to vote with the holders of certain other series of Preferred Stock on certain matters, and separately as a class on certain limited matters. Subject to maintenance of certain ownership thresholds by the initial purchasers of the Series A Preferred Stock also have the right to vote shares of Preferred Stock as a separate class for at least one director, as discussed below under "Board Rights." Consent Rights. For so long as any of the Preferred Stock is outstanding, consent of the holders of shares representing at least 75% of certain of the Preferred Stock then outstanding is required for certain material actions. Participation Rights. Pursuant to the securities purchase agreements entered into with the initial purchasers of the Series A Preferred Stock and the Series A-2 Preferred Stock, subject to meeting certain ownership thresholds, certain purchasers of the Series A Preferred Stock and the Series A-2 Preferred Stock are entitled to participate, on a pro-rata basis in accordance with their ownership percentage, determined on an as-converted basis, in issuances of equity and equity linked securities by the Company. In addition, subject to meeting certain ownership thresholds, certain initial purchasers of the Series A Preferred Stock and the Series A-2 Preferred Stock will be entitled to participate in issuances of preferred securities and in debt transactions of the Company. As of December 31, 2020 Preferred A shares and Preferred A-2 shares were convertible into 1,835,695 and 751,880 shares, respectively of HC2 common stock, excluding CGI shares eliminated in consolidation, as discussed below. Preferred Share Activity Series B Preferred Stock 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 Preferred Stock was classified as temporary equity as it was not mandatorily redeemable due to the presence of substantive conversion features, and would have become mandatorily redeemable on the sixth anniversary of initial issuance if not previously converted. The Series B Preferred 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"). On November 20, 2020, as part of the rights offering, Lancer Capital funded $21.4 million, and the Company issued Lancer Capital an additional 21,434 shares of Series B Preferred Stock. Immediately upon issuance of the shares, the Company converted all of Lancer Capital's Series B Preferred Stock into 11,891,540 shares of the Company's Common Stock. The Series B Preferred Stock became convertible upon the approval of shareholders during the Special Meeting of Stockholders on November 20, 2020. As a result, the Company recorded a beneficial conversion feature of $2.0 million related to the issuances of the Preferred B Preferred Stock, which was immediately accreted and recorded within the Preferred dividends, deemed dividends, and repurchase gains line item of the Consolidated Statements of Operations as a deemed dividend. Series A Shares CGI Purchase On December 18, 2018 and December 20, 2018, CGI, a wholly owned subsidiary of the Company closed on the purchase of 6,125 shares of Series A Preferred Stock, which, as of December 31, 2020, is convertible into a total of 1,763,706 shares of the Company's common stock. The shares and dividends accrued related to the Series A Preferred shares owned by CGI are eliminated in consolidation. On January 11, 2019, CGI purchased 10,000 shares of Series A-2 Preferred Stock, which, as of December 31, 2020, is convertible into a total of 1,879,699 shares of the Company's common stock. 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 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 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 year ended December 31, 2020, 278,914 and 31,379 shares of the Company's common stock have been issued to Luxor and Corrib, respectively, in conjunction with the Conversion agreement. For the year ended December 31, 2019, 269,284 and 30,297 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 for the year ended December 31, 2020 and 2019 was valued by the Company at $0.8 million each on the date of issuance and was recorded within Preferred stock and deemed dividends from conversion line item of the Consolidated Statements of Operations as a deemed dividend. Preferred Share Dividends During the years ended December 31, 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 December 31, 2020 Holders of Record Date March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Payment Date April 15, 2020 July 15, 2020 October 15, 2020 January 15, 2021 Total Dividend $ 0.2 $ 0.2 $ 0.2 $ 0.2 2019 Declaration Date March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Holders of Record Date March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Payment Date April 15, 2019 July 15, 2019 October 15, 2019 January 15, 2020 Total Dividend $ 0.2 $ 0.2 $ 0.2 $ 0.2 Warrants In Connection with the acquisition of CGI and UTA in 2015, the Company issued five year warrants to purchase 2,000,000 shares of the Company's common stock at an exercise price of $7.08 per share, subject to customary adjustments for stock splits or similar transactions, exercisable on or after February 3, 2016. The warrants expired on December 24, 2020. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Parties | 21. Related Parties HC2 Series B Preferred Stock As detailed in Note 20. 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. On November 20, 2020, as part of the rights offering, Lancer Capital funded an $21.4 million, and the Company issued Lancer Capital an additional 21,434 shares of Series B Preferred Stock. Immediately upon issuance of the shares, the Company Converted all of Lancer Capital's series B shares to 11,891,540 shares of the Company's Common Stock. Please see Note 20. Equity for further detail. HCP Services Agreement In January 2015, the Company entered into an arm's length services agreement (the "Services Agreement") with Harbinger Capital Partners ("HCP"), a related party of the Company. The Services Agreement includes the provision of services such as providing office space, certain administrative salaries and benefits, and other overhead, 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 costs allocated between the Company and HCP are based on actual use. Office space is an allocation of actual costs based on square footage and directly used by HC2 employees. Time of administrative personnel is allocated by time spent on each entity and other shared overhead is based on actual shared overhead and is allocated based on amounts used for each vendor. Management of shared overhead and certain administrative personnel were transferred to HC2 at the beginning of 2019. Both of these services are charged back to HCP on the same basis described above. The Company recognized expenses of $1.6 million and $2.7 million, and income of $0.1 million and $0.3 million under the Services Agreement for the years ended December 31, 2020 and 2019, respectively. The following table breaks out the components of the Services Agreement net expenses, by Segment for the years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 Corporate Other (1) Total Corporate Other (1) Total Allocated to HC2 by HCP Office space $ 1.1 $ 0.5 $ 1.6 $ 1.8 $ 0.8 $ 2.6 Administrative salaries and benefits — — — 0.1 — 0.1 Other shared overhead — — — — — — Total Expenses 1.1 0.5 1.6 1.9 0.8 2.7 Charged back to HCP by HC2 Administrative salaries and benefits 0.1 — 0.1 0.2 — 0.2 Other shared overhead — — — 0.1 — 0.1 Total Income 0.1 — 0.1 0.3 — 0.3 Net related party activity $ 1.0 $ 0.5 $ 1.5 $ 1.6 $ 0.8 $ 2.4 (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. Rights Offering Due to an administrative error by our transfer agent, the Company sold an additional 82,459 shares of HC2 common stock to MG Capital Management Ltd. at the Rights Offering price in December 2020 to make MG Capital Management Ltd. whole of the error. 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: Years Ended December 31, 2020 2019 Net revenue $ — $ 6.4 Operating expenses $ — $ 1.0 Interest expense $ — $ 1.0 December 31, 2020 2019 Accounts receivable $ — $ 1.2 Long-term 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 $1.0 million and $1.9 million in services for the year ended December 31, 2020 and 2019, respectively. |
Operating Segment and Related I
Operating Segment and Related Information | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Operating Segment and Related Information | 22. Operating Segment and Related Information The Company currently has one primary reportable geographic segment - United States. The Company has four reportable operating segments, plus our Other segment, based on management’s organization of the enterprise - Infrastructure, Life Sciences, Spectrum, Insurance, and Other. We also have included a Non-operating Corporate segment. All inter-segment revenues are eliminated. As a result of the sale of GMSL, ICS, and Beyond6, and in accordance with ASC 280, the Company no longer considers the results of operations and balance sheets of these entities and related subsidiaries as separate segments. Formerly part of the Marine Services, Telecommunications, and Clean Energy segments, these entities and the investment in HMN have been reclassified to the Other segment. In addition, as GMSL, ICS, and Beyond6 are discontinued operations, all operating results of GMSL, ICS, and Beyond6 have been reclassified to discontinued operations. This has been reflected in the tables below for both the current and historical periods presented. Summary information with respect to the Company’s operating segments is as follows (in millions): Years Ended December 31, 2020 2019 Net revenue Infrastructure $ 676.6 $ 713.3 Spectrum 40.3 41.8 Insurance 300.2 331.6 Other — 0.5 Eliminations (*) (11.3) (10.2) Total net revenue $ 1,005.8 $ 1,077.0 (*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the year ended December 31, 2020 and 2019 which are related to entities under common control which are eliminated or are reclassified in consolidation. Years Ended December 31, 2020 2019 (Loss) income from operations Infrastructure $ 20.5 $ 45.1 Life Sciences (16.9) (8.9) Spectrum (2.2) (11.4) Insurance 35.6 37.3 Other (2.8) (1.6) Non-operating Corporate (27.0) (25.0) Eliminations (*) (11.3) (10.2) Total (loss) income from operations $ (4.1) $ 25.3 (*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the year ended December 31, 2020 and 2019 which are related to 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): Years Ended December 31, 2020 2019 (Loss) income from operations $ (4.1) $ 25.3 Interest expense (79.4) (76.1) Loss on early extinguishment or restructuring of debt (9.4) — (Loss) income from equity investees (3.4) 1.6 Gain on bargain purchase — 1.1 Other income 68.5 6.3 Loss from continuing operations before income taxes (27.8) (41.8) Income tax benefit (expense) (10.5) 19.6 Loss from continuing operations (38.3) (22.2) Loss from discontinued operations (including loss on disposal of $44.2 million) (63.8) (13.9) Net loss (102.1) (36.1) Net loss attributable to noncontrolling interest and redeemable noncontrolling interest 10.1 4.6 Net loss attributable to HC2 Holdings, Inc. (92.0) (31.5) Less: Preferred dividends, deemed dividends, and repurchase gains 3.6 — Net loss attributable to common stock and participating preferred stockholders $ (95.6) $ (31.5) Years Ended December 31, 2020 2019 Depreciation and Amortization Infrastructure $ 10.7 $ 15.5 Life Sciences 0.1 0.3 Spectrum 6.8 6.3 Insurance (*) (20.9) (23.1) Non-operating Corporate 0.1 0.1 Total $ (3.2) $ (0.9) (*) Balance includes amortization of negative VOBA, which increases net income. Years Ended December 31, 2020 2019 Capital Expenditures (*) Infrastructure $ 5.7 $ 9.8 Life Sciences 0.1 0.1 Spectrum 11.8 14.2 Insurance 0.2 0.6 Total $ 17.8 $ 24.7 (*) The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations. December 31, 2020 2019 Investments Infrastructure $ 0.9 $ 0.9 Life Sciences 18.4 22.0 Insurance 4,711.3 4,423.0 Other 36.1 43.1 Eliminations (101.1) (96.9) Total $ 4,665.6 $ 4,392.1 December 31, 2020 2019 Total Assets Infrastructure $ 494.8 $ 530.4 Life Sciences 21.4 28.4 Spectrum 213.6 257.9 Insurance 5,913.8 5,611.9 Other 167.3 598.4 Non-operating Corporate 30.1 27.2 Eliminations (98.2) (95.9) Total $ 6,742.8 $ 6,958.3 |
Basic and Diluted Income Per Co
Basic and Diluted Income Per Common Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Income Per Common Share | 23. Basic and Diluted 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 Company had no dilutive common share equivalents during the years ended December 31, 2020 and 2019, due to the results of operations being a loss from continuing operations, net of tax. The following table presents a reconciliation of net income (loss) used in basic and diluted EPS calculations (in millions, except per share amounts): Years Ended December 31, 2020 2019 Loss from continuing operations $ (38.3) $ (22.2) Income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest (5.6) 4.4 Loss from continuing operations attributable to the Company (43.9) (17.8) Less: Preferred dividends, deemed dividends and repurchase gains 3.6 — Loss from continuing operations attributable to HC2 common stockholders (47.5) (17.8) Loss from discontinued operations (63.8) (13.9) Loss attributable to noncontrolling interest and redeemable noncontrolling interest 15.7 0.2 Loss from discontinued operations, net of tax and noncontrolling interest (48.1) (13.7) Net loss attributable to common stock and participating preferred stockholders $ (95.6) $ (31.5) Earnings allocable to common shares: Participating shares at end of period: Weighted-average common stock outstanding 50.3 44.8 Unvested restricted stock — — Preferred stock (as-converted basis) 0.4 — Total 50.7 44.8 Percentage of loss allocated to: Common stock 99.2 % 100.0 % Unvested restricted stock — % — % Preferred stock 0.8 % — % Numerator for earnings per share, basic: Net loss from continuing operations attributable to common stock, basic $ (47.1) $ (17.8) Net loss from discontinued operations attributable to common stock, basic $ (47.7) $ (13.7) Net loss attributable to common stock, basic $ (94.8) $ (31.5) Earnings allocable to common shares, diluted: Numerator for earnings per share, diluted Effect of assumed shares under the if-converted method for convertible instruments $ (0.4) $ — Net loss from continuing operations attributable to common stock, basic $ (47.5) $ (17.8) Net loss from discontinued operations attributable to common stock, basic $ (47.7) $ (13.7) Net loss attributable to common stock, basic $ (95.2) $ (31.5) Denominator for basic and dilutive earnings per share Weighted average common shares outstanding - basic 50.3 44.8 Effect of assumed shares under treasury stock method for stock options and restricted shares and if-converted method for convertible instruments 0.4 — Weighted average common shares outstanding - diluted 50.7 44.8 Loss per share - continuing operations Basic $ (0.94) $ (0.40) Diluted $ (0.94) $ (0.40) Loss per share - discontinued operations Basic $ (0.94) $ (0.30) Diluted $ (0.94) $ (0.30) Loss per share - Net loss attributable to common stock and participating preferred stockholders Basic $ (1.88) $ (0.70) Diluted $ (1.88) $ (0.70) |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | 24. Subsequent Events On February 1, 2021, HC2 closed on $330.0 million of 8.500% senior secured notes due 2026 at an issue price of 100%. The Notes will be senior secured obligations of the Company and will be guaranteed by certain of the Company's domestic subsidiaries. The proceeds from the issuance of the Notes were used, together with the net cash proceeds of the Company’s previously announced sale of its majority-owned subsidiary Beyond6, Inc., to redeem in full HC2’s existing 11.50% senior secured notes, repay the outstanding indebtedness under its revolving credit agreement, pay related fees and expenses, and for general corporate purposes. On February 3, 2021 the Company announced that R2 has received $10.0 million in funding from Huadong Medicine Company Limited (“Huadong”), a leading publicly traded Chinese pharmaceutical company. Huadong’s investment will be used to fund the launch of R2 Technologies’ first-to-market innovations Glacial Rx and Glacial Spa. In exchange for its equity investment in R2, Huadong receives exclusive distribution rights for R2’s products in the China and selected Asia-Pacific markets. On February 23, 2021, the Company entered into a third amendment of the 2020 Revolving Credit Agreement with MSD PCOF Partners IX, LLC. Among other things, the Amendment (i) increases the aggregate principal amount of the Revolving Credit Facility to $20.0 million, (ii) extends the maturity date of the Revolving Credit Facility to February 23, 2024, (iii) updates the affirmative and negative covenants contained in the Amended Credit Agreement so that they are substantially consistent with the affirmative and negative covenants contained in the indenture that governs the Senior Secured Notes and (iv) reduces the interest rate margin applicable to loans borrowed under the Amended Credit Agreement to the interest rate margins described below. Except as modified by the Amendment, the terms of the Credit Agreement remain in effect. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation; Intercompany | Principles of Consolidation The 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 December 31, 2020, the results of DBMG, Genovel, R2, HC2 Broadcasting, CIG, GMSL, Beyond6, and ICS have been consolidated into the Company’s results based on guidance from the Financial Accounting Standards Board ("FASB") Accounting Standards Codification ("ASC" 810, Consolidation) |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents are comprised principally of amounts in money market accounts with original maturities of three months or less. |
Acquisitions | Acquisitions The Company’s acquisitions are accounted for using the acquisition method of accounting, which requires, among other things, that assets acquired and liabilities assumed be recognized at their estimated fair values as of the acquisition date. Estimates of fair value included in the Consolidated Financial Statements, in conformity with ASC 820, Fair Value Measurements and Disclosures , represent the Company’s best estimates and valuations developed, when needed, with the assistance of independent appraisers or, where such valuations have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The following estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially. Any changes to the initial estimates of the fair value of the assets and liabilities will be recorded as adjustments to those assets and liabilities, and residual amounts will be allocated to goodwill. In accordance with ASC 805, Business Combinations ("ASC 805") |
Investments | Investments Fixed maturity securities The Company determines the appropriate classification of investments in fixed maturity securities at the acquisition date and re-evaluates the classification at each balance sheet date. All of our investments in fixed maturity securities are classified as available-for-sale. The Company carries these investments at fair value with net unrealized gains or losses, net of tax and related adjustments, reported as a component of Accumulated Other Comprehensive Income (Loss) ("AOCI") of the Company's Consolidated Statements of Stockholders' Equity. Premiums and discounts on fixed maturity securities are amortized using the interest method and reported in Net investment income; mortgage-backed securities are amortized over a period based on estimated future principal payments, including prepayments. Prepayment assumptions are reviewed periodically and adjusted to reflect actual prepayments and changes in expectations. When the Company sells a security, the difference between the sale proceeds and amortized cost (determined based on specific identification) is reported in Net realized and unrealized gains (losses) on investments. When a decline in the value of a specific investment is considered to be other-than-temporary at the balance sheet date, a provision for impairment is charged to earnings (included in realized gains (losses) on investments) and the cost basis of that investment is reduced. If the Company can assert that it does not intend to sell an impaired fixed maturity security and it is not more likely than not that it will have to sell the security before recovery of its amortized cost basis, then the other-than-temporary impairment is separated into two components: (i) the amount related to credit losses (recorded in earnings) and (ii) the amount related to all other factors (recorded in AOCI). The credit-related portion of an other-than-temporary impairment is measured by comparing a security’s amortized cost to the present value of its current expected cash flows discounted at its effective yield prior to the impairment charge. If the Company intends to sell an impaired security, or it is more likely than not that it will be required to sell the security before recovery, an impairment charge to earnings is recorded to reduce the amortized cost of that security to fair value. Equity securities Equity securities that have readily determinable fair values are recorded at fair value with unrealized gains and losses, due to changes in fair value, reflected in Net realized and unrealized gains (losses) on investments. Dividend income from equity securities is recognized in Net investment income. Realized gains and losses on the sale of equity securities are recognized in Net realized and unrealized gains (losses) on investments. |
Fair Value Measurements | Fair Value Measurements General accounting principles for Fair Value Measurements and Disclosures define fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. These principles also establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and describes three levels of inputs that may be used to measure fair value: Level 1 - Unadjusted quoted prices in active markets for identical assets or liabilities. Active markets are defined as having the following characteristics for the measured asset/liability: (i) many transactions, (ii) current prices, (iii) price quotes not varying substantially among market makers, (iv) narrow bid/ask spreads and (v) most information publicly available. The Company’s Level 1 financial instruments consist primarily of publicly traded equity securities and highly liquid government bonds for which quoted market prices in active markets are available. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or market standard valuation techniques and assumptions with significant inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Such observable inputs include benchmarking prices for similar assets in active, liquid markets, quoted prices in markets that are not active and observable yields and spreads in the market. The Company’s Level 2 financial instruments include corporate and municipal fixed maturity securities, mortgage-backed non-affiliated common stocks priced using observable inputs. Level 2 inputs include benchmark yields, reported trades, corroborated broker/dealer quotes, issuer spreads and benchmark securities. When non-binding broker quotes can be corroborated by comparison to similar securities priced using observable inputs, they are classified as Level 2. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the related assets or liabilities. Level 3 assets and liabilities include those whose value is determined using market standard valuation techniques. When observable inputs are not available, the market standard techniques for determining the estimated fair value of certain securities that trade infrequently, and therefore have little transparency, rely on inputs that are significant to the estimated fair value and that are not observable in the market or cannot be derived principally from or corroborated by observable market data. These unobservable inputs can be based in large part on management judgment or estimation and cannot be supported by reference to market activity. Even though unobservable, management believes these inputs are based on assumptions deemed appropriate given the circumstances and consistent with what other market participants would use when pricing similar assets and liabilities. For the Company’s invested assets, this category primarily includes private placements, asset-backed securities, and to a lesser extent, certain residential and commercial mortgage-backed securities, among others. Prices are determined using valuation methodologies such as discounted cash flow models and other similar techniques. Non-binding broker quotes, which are utilized when pricing service information is not available, are reviewed for reasonableness based on the Company’s understanding of the market, and are generally considered Level 3. Under certain circumstances, based on its observations of transactions in active markets, the Company may conclude the prices received from independent third-party pricing services or brokers are not reasonable or reflective of market activity. In those instances, the Company would apply internally developed valuation techniques to the related assets or liabilities. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the determination of which category within the fair value hierarchy is appropriate for any given financial instrument is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment and considers factors specific to the financial instrument. The Company may utilize information from third parties, such as pricing services and brokers, to assist in determining the fair value for certain assets and liabilities; however, management is ultimately responsible for all fair values presented in the Company’s financial statements. This includes responsibility for monitoring the fair value process, ensuring objective and reliable valuation practices and pricing of assets and liabilities, and approving changes to valuation methodologies and pricing sources. The selection of the valuation technique(s) to apply considers the definition of an exit price and the nature of the asset or liability being valued and significant expertise and judgment is required. |
Accounts Receivable | Accounts Receivable Accounts receivable are stated at amounts due from customers net of an allowance for doubtful accounts. Our allowance for doubtful accounts considers historical experience, the age of certain receivable balances, credit history, current economic conditions and other factors that may affect the counterparty’s ability to pay. |
Inventory | InventoryInventory is valued at the lower of cost or net realizable value under the first-in, first-out method. Provision for obsolescence is made where appropriate and is charged to cost of revenue in the consolidated statements of operations. Short-term work in progress on contracts is stated at cost less foreseeable losses. These costs include only direct labor and expenses incurred to date and exclude any allocation of overhead. The policy for long-term work in progress contracts is disclosed within the Revenue and Cost Recognition accounting policy. |
Reinsurance | Reinsurance Premium revenue and benefits are reported net of the amounts related to reinsurance ceded to and assumed from other companies. Expense allowances from reinsurers are included in other operating and general expenses. Amounts recoverable from reinsurers are estimated in a manner consistent with the direct reserve associated with the reinsured policies. |
Accounting for Income Taxes | Accounting for Income Taxes We recognize deferred tax assets and liabilities for the expected future tax consequences of transactions and events. Under this method, deferred tax assets and liabilities are determined based on the difference between the book basis and the tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. If necessary, deferred tax assets are reduced by a valuation allowance to an amount that is determined to be more likely than not recoverable. We must make significant estimates and assumptions about future taxable income and future tax consequences when determining the amount of the valuation allowance. The additional guidance provided by ASC No. 740, “Income Taxes” (“ASC 740”), clarifies the accounting for uncertainty in income taxes recognized in the financial statements. Expected outcomes of current or anticipated tax examinations, refund claims and tax-related litigation and estimates regarding additional tax liability (including interest and penalties thereon) or refunds resulting therefrom will be recorded based on the guidance provided by ASC 740 to the extent applicable. We recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position are measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. These assessments of uncertain tax positions contain judgments related to the interpretation of tax regulations in the jurisdictions in which we transact business. The judgments and estimates made at a point in time may change based on the outcome of tax audits, expiration of statutes of limitations, as well as changes to, or further interpretations of, tax laws and regulations. At December 31, 2020, our U.S. and foreign companies have significant deferred tax assets resulting from tax loss carryforwards. Additionally, the deferred tax assets generated by certain businesses that do not qualify to be included in the HC2 U.S. consolidated income tax return have been reduced by a full valuation allowance. Based on consideration of both positive and negative evidence, we determined that it was more likely than not that the net deferred tax assets of the HC2 U.S. consolidated filing group will not be realized. Therefore, a valuation allowance was maintained against the HC2 U.S. consolidated filing group’s net deferred tax assets as of December 31, 2020. The appropriateness and amount of the valuation allowance are based on cumulative history of losses and our assumptions about the future taxable income of each affiliate and the timing of the reversal of deferred tax assets and liabilities. The Insurance segment is in a cumulative income position and the positive trend of profitability in 2019 and 2020 is expected to continue as supported by the projections of future income. As a result of the three-year cumulative income position and reliance upon future projections of income, the Insurance segment does not have a valuation allowance recorded against its deferred tax assets. |
Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment are stated at cost less accumulated depreciation, which is provided on the straight-line method over the estimated useful lives of the assets. Cost includes major expenditures for improvements and replacements which extend useful lives or increase capacity of the assets as well as expenditures necessary to place assets into readiness for use. Cost includes the original purchase price of the asset and the costs attributable to bringing the asset to its working condition for its intended use. Cost includes finance costs incurred prior to the asset being available for use. Expenditures for maintenance and repairs are expensed as incurred. Costs for internal use software that are incurred in the preliminary project stage and in the post-implementation stage are expensed as incurred. Costs incurred during the application development stage are capitalized and amortized over the estimated useful life of the software, beginning when the software project is ready for its intended use, over the estimated useful life of the software. Depreciation is determined on a straight-line basis over the estimated useful lives of the assets, which range from 5 to 40 years for buildings and leasehold improvements, 3 to 15 years for equipment, furniture and fixtures, and 3 to 20 years for transportation equipment. Leasehold improvements are amortized over the lives of the leases or estimated useful lives of the assets, whichever is shorter. Assets under construction are not depreciated until they are complete and available for use. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Under ASC 350, Intangibles - Goodwill and Other ("ASC 350"), goodwill and indefinite lived intangible assets are not amortized but are reviewed annually for impairment, or more frequently, if impairment indicators arise. Intangible assets that have finite lives are amortized over their estimated useful lives and are subject to the provisions of ASC 360, Property, plant, and equipment ("ASC 360"). Goodwill impairment is tested at least annually (October 1st) or when factors indicate potential impairment using a two-step process that begins with a qualitative evaluation of each reporting unit. If such test indicates potential for impairment, a one-step quantitative test is performed and if there is excess of a reporting unit's carrying amount over its fair value, impairment is recorded, not to exceed the total amount of goodwill allocated to the reporting unit. Estimating the fair value of a reporting unit requires various assumptions including projections of future cash flows, perpetual growth rates and discount rates. The assumptions about future cash flows and growth rates are based on the Company’s assessment of a number of factors, including the reporting unit’s recent performance against budget, performance in the market that the reporting unit serves, and industry and general economic data from third-party sources. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows. Changes to the underlying businesses could affect the future cash flows, which in turn could affect the fair value of the reporting unit. Intangible assets not subject to amortization consist of certain licenses. Such indefinite lived intangible assets are tested for impairment annually, or more frequently if events or changes in circumstances indicate that the asset might be impaired. The impairment test shall consist of a comparison of the fair value of an intangible asset with its carrying amount. If the carrying amount of the intangible asset exceeds its fair value, an impairment loss shall be recognized in an amount equal to the excess. Intangible assets subject to amortization consists of certain trade names, customer contracts and developed technology. These finite lived intangible assets are amortized based on their estimated useful lives. Such assets are subject to the impairment provisions of ASC 360, wherein impairment is recognized and measured only if there are events and circumstances that indicate that the carrying amount may not be recoverable. The carrying amount is not recoverable if it exceeds the sum of the undiscounted cash flows expected to result from the use of the asset group. An impairment loss is recorded if after determining that it is not recoverable, the carrying amount exceeds the fair value of the asset. In addition to the foregoing, the Company reviews its goodwill and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amounts of assets may not be recoverable. The factors that the Company considers important, and which could trigger an impairment review, include, but are not limited to: a more likely than not expectation of selling or disposing all, or a portion, of a reporting unit; a significant decline in the market value of our common stock or debt securities for a sustained period; a material adverse change in economic, financial market, industry or sector trends; a material failure to achieve operating results relative to historical levels or projected future levels; and significant changes in operations or business strategy. For details regarding goodwill impairment, see Note 12. Goodwill and Intangibles, net. |
Valuation of Long-lived Assets | Valuation of Long-lived Assets The Company reviews long-lived assets for impairment whenever events or changes indicate that the carrying amount of an asset may not be recoverable. In making such evaluations, the Company compares the expected undiscounted future cash flows to the carrying amount of the assets. If the total of the expected undiscounted future cash flows is less than the carrying amount of the assets, the Company is required to make estimates of the fair value of the long-lived assets in order to calculate the impairment loss equal to the difference between the fair value and carrying value of the assets. The Company makes significant assumptions and estimates in this process regarding matters that are inherently uncertain, such as determining asset groups and estimating future cash flows, remaining useful lives, discount rates and growth rates. The resulting undiscounted cash flows are projected over an extended period of time, which subjects those assumptions and estimates to an even larger degree of uncertainty. While the Company believes that its estimates are reasonable, different assumptions could materially affect the valuation of the long-lived assets. The Company derives future cash flow estimates from its historical experience and its internal business plans, which include consideration of industry trends, competitive actions, technology changes, regulatory actions, available financial resources for marketing and capital expenditures and changes in its underlying cost structure. The Company makes assumptions about the remaining useful life of its long-lived assets. The assumptions are based on the average life of its historical capital asset additions and its historical asset purchase trend. In some cases, due to the nature of a particular industry in which the company operates, the Company may assume that technology changes in such industry render all associated assets, including equipment, obsolete with no salvage value after their useful lives. In certain circumstances in which the underlying assets could be leased for an additional period of time or salvaged, the Company includes such estimated cash flows in its estimate. The estimate of the appropriate discount rate to be used to apply the present value technique in determining fair value was the Company’s weighted average cost of capital which is based on the effective rate of its debt obligations at the current market values (for periods during which the Company had debt obligations) as well as the current volatility and trading value of the Company’s common stock. |
Value of Business Acquired (VOBA) | Value of Business Acquired ("VOBA") VOBA is a liability that reflects the estimated fair value of in-force contracts in a life insurance company acquisition less the amount recorded as insurance contract liabilities. It represents the portion of the purchase price that is allocated to the value of the rights to receive future cash flows from the business in force at the acquisition date. A VOBA liability (negative asset) occurs when the estimated fair value of in-force contracts in a life insurance company acquisition is less than the amount recorded as insurance contract liabilities. Amortization is based on assumptions consistent with those used in the development of the underlying contract adjusted for emerging experience and expected trends. VOBA amortization are reported within depreciation and amortization in the accompanying consolidated statements of operations. The VOBA balance is also periodically evaluated for recoverability to ensure that the unamortized portion does not exceed the expected recoverable amounts. At each evaluation date, actual historical gross profits are reflected, and estimated future gross profits and related assumptions are evaluated for continued reasonableness. Any adjustment in estimated future gross profits requires that the amortization rate be revised ("unlocking") retroactively to the date of the policy or contract issuance. The cumulative unlocking adjustment is recognized as a component of current period amortization. |
Annuity Benefits Accumulated | Annuity Benefits Accumulated Annuity receipts and benefit payments are recorded as increases or decreases in annuity benefits accumulated rather than as revenue and expense. Increases in this liability (primarily interest credited) are charged to expense and decreases for charges are credited to annuity policy charges revenue. Reserves for traditional fixed annuities are generally recorded at the stated account value. |
Life, Accident and Health Reserves | Life, Accident and Health Reserves Liabilities for future policy benefits under traditional life, accident and health policies are computed using the net level premium method. Computations are based on the original projections of investment yields, mortality, morbidity and surrenders and include provisions for unfavorable deviations unless a loss recognition event (premium deficiency) occurs. Claim reserves and liabilities established for accident and health claims are modified as necessary to reflect actual experience and developing trends. For long-duration contracts (such as traditional life and long-term care insurance policies), loss recognition occurs when, based on current expectations as of the measurement date, existing contract liabilities plus the present value of future premiums (including reasonably expected rate increases) are not expected to cover the present value of future claims payments and related settlement and maintenance costs (excluding overhead) as well as unamortized acquisition costs. If a block of business is determined to be in loss recognition, a charge is recorded in earnings in an amount equal to the excess of the present value of expected future claims costs and unamortized acquisition costs over existing reserves plus the present value of expected future premiums (with no provision for adverse deviation). The charge is recorded as an additional reserve (if unamortized acquisition costs have been eliminated). In addition, reserves for traditional life and long-term care insurance policies are subject to adjustment for loss recognition charges that would have been recorded if the unrealized gains from securities had actually been realized. This adjustment is included in unrealized gains (losses) on marketable securities, a component of AOCI. |
Presentation of Taxes Collected | Presentation of Taxes Collected The Company reports a value-added tax assessed by a governmental authority that is directly imposed on a revenue-producing transaction between the Company and a customer on a net basis (excluded from revenues). |
Foreign Currency Transactions and Translation | Foreign Currency Transactions Foreign currency transactions are transactions denominated in a currency other than a subsidiary’s functional currency. A change in the exchange rates between a subsidiary’s functional currency and the currency in which a transaction is denominated increases or decreases the expected amount of functional currency cash flows upon settlement of the transaction. That increase or decrease in expected functional currency cash flows is reported by the Company as a foreign currency transaction gain (loss). The primary component of the Company’s foreign currency transaction gain (loss) is due to agreements in place with certain subsidiaries in foreign countries regarding intercompany transactions. The Company anticipates repayment of these transactions in the foreseeable future, and recognizes the realized and unrealized gains or losses on these transactions that result from foreign currency changes in the period in which they occur as foreign currency transaction gain (loss). Foreign Currency Translation The assets and liabilities of the Company’s foreign subsidiaries are translated at the exchange rates in effect on the reporting date. Income and expenses are translated at the average exchange rate during the period. The net effect of such translation gains and losses are reflected within AOCI in the stockholders’ equity section of the consolidated balance sheets. |
Convertible Instruments | Convertible Instruments The Company evaluates and accounts for conversion options embedded in convertible instruments in accordance with ASC 815, Derivatives and Hedging Activities. Applicable U.S. Generally Accepted Accounting Principals ("GAAP") requires companies to bifurcate conversion options from their host instruments and account for them as free standing derivative financial instruments according to certain criteria. The criteria include circumstances in which (a) the economic characteristics and risks of the embedded derivative instrument are not clearly and closely related to the economic characteristics and risks of the host contract, (b) the hybrid instrument that embodies both the embedded derivative instrument and the host contract is not remeasured at fair value under other GAAP with changes in fair value reported in earnings as they occur and (c) a separate instrument with the same terms as the embedded derivative instrument would be considered a derivative instrument. The Company accounts for convertible instruments, when it has been determined that the embedded conversion options should not be bifurcated from their host instruments, as follows: The Company records when necessary, discounts to convertible notes for the intrinsic value of conversion options embedded in debt instruments based upon the differences between the fair value of the underlying common stock at the commitment date of the note transaction and the effective conversion price embedded in the note. Debt discounts under these arrangements are amortized over the term of the related debt to their stated date of redemption. The Company accounts for the conversion of convertible debt when a conversion option has been bifurcated using the general extinguishment standards. The debt and equity linked derivatives are removed at their carrying amounts and the shares issued are measured at their then-current fair value, with any difference recorded as a gain or loss on extinguishment of the two separate accounting liabilities. |
Deferred Financing Costs | Deferred Financing CostsThe Company capitalizes certain expenses incurred in connection with its debt and line of credit obligations and amortizes them over the term of the respective debt agreement. The amortization expense of the deferred financing costs is included in interest expense on the consolidated statements of operations. If the Company extinguishes portions of its debt prior to the maturity date, deferred financing costs are charged to expense on a pro-rata basis and are included in loss on early extinguishment or restructuring of debt on the consolidated statements of operations. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of net revenue and expenses during the reporting period. Actual results may differ from these estimates. Significant estimates include allowance for doubtful accounts receivable, the extent of progress towards completion on contracts, contract revenue and costs on long-term contracts, valuation of certain investments and the insurance reserves, market assumptions used in estimating the fair values of certain assets and liabilities, the calculation used in determining the fair value of HC2’s stock options required by ASC 718, Compensation - Stock Compensation ("ASC 718"), income taxes and various other contingencies. Estimates of fair value represent the Company’s best estimates developed with the assistance of independent appraisals or various valuation techniques and, where the foregoing have not yet been completed or are not available, industry data and trends and by reference to relevant market rates and transactions. The estimates and assumptions are inherently subject to significant uncertainties and contingencies beyond the control of the Company. Accordingly, the Company cannot provide assurance that the estimates, assumptions, and values reflected in the valuations will be realized, and actual results could vary materially. |
Share-Based Compensation | Share-Based Compensation The Company accounts for share-based compensation issued to employees in accordance with the provisions of ASC 718 and to non-employees pursuant to ASC 505-50, Equity-based payments to non-employees. All transactions in which goods or services are the consideration received for the issuance of equity instruments are accounted for using a fair-value based method. The Company records share-based compensation expense for all new and unvested stock options that are ultimately expected to vest as the requisite service is rendered. The Company issues new shares of common stock upon the exercise of stock options. The Company uses a Black-Scholes option valuation model to determine the grant date fair value of share-based compensation under ASC 718. The Black-Scholes model incorporates various assumptions including the expected term of awards, volatility of stock price, risk-free rates of return and dividend yield. The expected term of an award is no less than the option vesting period and is based on the Company’s historical experience. Expected volatility is based upon the historical volatility of the Company’s stock price. The risk-free interest rate is approximated using rates available on U.S. Treasury securities with a remaining term similar to the option’s expected life. The Company uses a dividend yield of zero in the Black-Scholes option valuation model as it does not anticipate paying cash dividends in the foreseeable future. Share-based compensation is recorded net of actual forfeitures. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject the Company to concentration of credit risk principally consist of trade accounts receivable. The Company performs ongoing credit evaluations of its customers but generally does not require collateral to support customer receivables. The Company maintains its cash with high quality credit institutions, and its cash equivalents are in high quality securities. |
Income (Loss) Per Common Share | Income (Loss) Per Common Share Basic income (loss) per common share is computed using the weighted average number of shares of common stock outstanding during the period. Diluted income (loss) per common share is computed using the weighted average number of shares of common stock, adjusted for the dilutive effect of potential common stock and related income from continuing operations, net of tax. Potential common stock, computed using the treasury stock method or the if-converted method, includes options, warrants, restricted stock, restricted stock units and convertible preferred stock. In periods when the Company generates income, the Company calculates basic Earnings Per Share ("EPS") using the two-class method, pursuant to ASC No. 260, Earnings Per Share . The two-class method is required as the shares of the Company’s preferred stock qualify as participating securities, having the right to receive dividends should dividends be declared on common stock. Under this method, earnings for the period are allocated to the common stock and preferred stock to the extent that each security may share in earnings as if all of the earnings for the period had been distributed. The Company does not use the two-class method in periods when it generates a loss as the holders of the preferred stock do not participate in losses. |
Discontinued Operations | Discontinued Operations In accordance with ASC 205-20, Presentation of Financial Statements - Discontinued Operations , the Company reports the results of operations of a business as discontinued operations if a disposal represents a strategic shift that has or will have a major effect on the Company's operations and financial results when the business is disposed of or classified as held-for-sale. Under ASC 360, Property, Plant and Equipment |
Reclassification | Reclassification Certain previous year amounts have been reclassified to conform with current year presentations, as related to the reporting of new balance sheet line items. • The recast of GMSL, Beyond6, and ICS'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 22. Operating Segment and Related Information for further information; and • As a result of the sale of ICS, and in accordance with ASC 280, the Company no longer considers the results of operations and Balance Sheets of ICS as a separate segment. Formerly the Telecommunications segment, this entity has been reclassified to the Other segment. See Note 22. Operating Segment and Related Information for further information; and • As a result of the sale of Beyond, and in accordance with ASC 280, the Company no longer considers the results of operations and Balance Sheets of Beyond6 as a separate segment. Formerly the Clean Energy segment, this entity has been reclassified to the Other segment. See Note 22. Operating Segment and Related Information for further information; and • The recast 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 23. Basic and Diluted Income Per Common Share for further details. |
Accounting Pronouncements | 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 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 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. On September 30, 2020, the FASB voted to delay the effective date of ASU 2018-12 to January 1, 2025 for smaller reporting companies. 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 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Other Nonoperating Income (Expense) | The following table provides information relating to Other income (in millions): Years Ended December 31, 2020 2019 Gain (loss) on embedded derivatives $ (2.8) $ 5.4 Gain on sale of equity method investments 71.1 8.1 Other income (expenses), net 0.2 (7.2) Total $ 68.5 $ 6.3 |
Schedule of Restricted Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash to amounts reported within the Consolidated Balance Sheets and Consolidated Statements of Cash Flows (in millions): December 31, 2020 2019 Cash and cash equivalents, beginning of period $ 193.7 $ 300.7 Restricted cash included in other assets 1.4 5.1 Total cash and cash equivalents and restricted cash $ 195.1 $ 305.8 Cash and cash equivalents, end of period $ 232.3 $ 193.7 Restricted cash included in other assets 1.5 1.4 Total cash and cash equivalents and restricted cash $ 233.8 $ 195.1 Cash and cash equivalents classified in Assets held for sale, beginning of period $ 45.3 $ 24.2 Restricted cash classified in Assets held for sale 0.2 0.4 Total cash and cash equivalents and restricted cash classified in Assets held for sale $ 45.5 $ 24.6 Cash and cash equivalents classified in Assets held for sale, end of period $ 6.7 $ 45.3 Restricted cash classified in assets held for sale 0.2 0.2 Total cash and cash equivalents and restricted cash classified in Assets held for sale $ 6.9 $ 45.5 Supplemental cash flow information: Cash paid for interest $ 62.5 $ 70.9 Cash paid for taxes, net of refunds $ (0.1) $ 7.5 Non-cash investing and financing activities: Property, plant and equipment included in accounts payable $ 2.3 $ 5.3 Investments included in accounts payable $ 17.2 $ 30.1 |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of cash and cash equivalents and restricted cash to amounts reported within the Consolidated Balance Sheets and Consolidated Statements of Cash Flows (in millions): December 31, 2020 2019 Cash and cash equivalents, beginning of period $ 193.7 $ 300.7 Restricted cash included in other assets 1.4 5.1 Total cash and cash equivalents and restricted cash $ 195.1 $ 305.8 Cash and cash equivalents, end of period $ 232.3 $ 193.7 Restricted cash included in other assets 1.5 1.4 Total cash and cash equivalents and restricted cash $ 233.8 $ 195.1 Cash and cash equivalents classified in Assets held for sale, beginning of period $ 45.3 $ 24.2 Restricted cash classified in Assets held for sale 0.2 0.4 Total cash and cash equivalents and restricted cash classified in Assets held for sale $ 45.5 $ 24.6 Cash and cash equivalents classified in Assets held for sale, end of period $ 6.7 $ 45.3 Restricted cash classified in assets held for sale 0.2 0.2 Total cash and cash equivalents and restricted cash classified in Assets held for sale $ 6.9 $ 45.5 Supplemental cash flow information: Cash paid for interest $ 62.5 $ 70.9 Cash paid for taxes, net of refunds $ (0.1) $ 7.5 Non-cash investing and financing activities: Property, plant and equipment included in accounts payable $ 2.3 $ 5.3 Investments included in accounts payable $ 17.2 $ 30.1 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations | The results of GMSL, ICS, and Beyond6, and the related expenses directly attributable to the entities were reported as discontinued operations. Summarized operating results of the discontinued operations are as follows (in millions): Years Ended December 31, 2020 2019 Net Revenue $ 519.6 $ 907.2 Cost of revenue 492.4 828.9 Selling, general and administrative 26.2 37.3 Depreciation and amortization 12.6 33.0 Other operating expenses 0.3 4.4 Income (loss) from operations (11.9) 3.6 Interest Expense (7.7) (19.1) Loss on sale and liquidation of subsidiaries (44.2) — Income from equity investees 0.5 0.6 Other income (loss) (1.5) (0.2) Pre-tax loss from discontinued operations (64.8) (15.1) Income tax benefit 1.0 1.2 Loss from discontinued operations $ (63.8) $ (13.9) 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 years ended December 31, 2020 and 2019 associated with the principal prepayment from continuing operations to discontinued operations on the Company’s Condensed Consolidated Statement of Operations: Years Ended December 31, 2020 2019 Interest expense $ 0.2 $ 0.9 Amortization of deferred financing costs and original issuance discount $ 0.1 $ 0.3 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 years ended December 31, 2020 and 2019, from continuing operations to discontinued operations on the Company’s Consolidated Statements of Operations: Years Ended December 31, 2020 2019 Interest expense $ 2.2 $ 8.8 Amortization of deferred financing costs and original issuance discount $ 0.2 $ 0.9 Summarized assets and liabilities of the discontinued operations are as follows (in millions): December 31, 2020 2019 Assets Other invested assets $ — $ 16.9 Cash and cash equivalents 6.7 45.3 Accounts receivable, net 13.6 109.0 Property, plant and equipment, net 89.4 276.3 Goodwill 2.1 16.4 Intangibles, net 9.2 16.3 Other assets 5.4 75.0 Total assets held for sale $ 126.4 $ 555.2 Liabilities Account payable and other current liabilities $ 10.3 $ 148.9 Debt obligations 56.3 115.3 Pension liability — 18.8 Other liabilities 8.1 51.9 Total liabilities held for sale $ 74.7 $ 334.9 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Dec. 31, 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): Years Ended December 31, 2020 2019 Revenue (1) Infrastructure $ 676.6 $ 713.3 Spectrum 40.3 41.8 Other — 0.5 Total revenue $ 716.9 $ 755.6 (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): December 31, 2020 2019 Accounts receivables with customers Infrastructure $ 168.5 $ 199.2 Spectrum 7.3 8.5 Total accounts receivables with customers $ 175.8 $ 207.7 Accounts receivable, net consist of the following (in millions): December 31, 2020 2019 Contracts in progress $ 118.6 $ 149.0 Unbilled retentions 50.3 51.7 Trade receivables 7.5 8.3 Other receivables 8.9 21.0 Allowance for doubtful accounts (0.6) (1.1) Total $ 184.7 $ 228.9 |
Disaggregation of Revenue | The following table disaggregates DBMG's revenue by market (in millions): Years Ended December 31, 2020 2019 Commercial $ 217.7 $ 205.4 Industrial 214.9 238.0 Transportation 72.6 64.8 Leisure 42.8 45.7 Healthcare 29.5 49.5 Convention 10.6 77.4 Other 87.8 32.1 Total revenue from contracts with customers 675.9 712.9 Other revenue 0.7 0.4 Total Infrastructure segment revenue $ 676.6 $ 713.3 The following table disaggregates the Spectrum segment's revenue by type (in millions): Years Ended December 31, 2020 2019 Network advertising $ 18.4 $ 22.7 Broadcast station 15.5 11.9 Network distribution 4.0 4.9 Other 2.4 2.3 Total revenue from contracts with customers 40.3 41.8 Other revenue — — Total Spectrum segment revenue $ 40.3 $ 41.8 |
Contract with Customer, Asset and Liability | Contract assets and contract liabilities consisted of the following (in millions): December 31, 2020 2019 Contract assets $ 55.6 $ 50.6 Contract liabilities $ (52.2) $ (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 $ 151.1 $ 2.9 $ 154.0 Convention 56.1 — 56.1 Healthcare 26.0 — 26.0 Industrial 49.4 — 49.4 Transportation 27.7 — 27.7 Leisure 10.4 — 10.4 Other 58.9 — 58.9 Remaining unsatisfied performance obligations $ 379.6 $ 2.9 $ 382.5 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2020 Amortized Cost Unrealized Unrealized Fair Value U.S. Government and government agencies $ 7.3 $ 1.1 $ — $ 8.4 States, municipalities and political subdivisions 383.5 58.4 — 441.9 Residential mortgage-backed securities 49.3 4.6 (1.0) 52.9 Commercial mortgage-backed securities 104.7 2.0 (9.3) 97.4 Asset-backed securities 415.0 2.2 (14.1) 403.1 Corporate and other 2,970.1 510.6 (28.3) 3,452.4 Total fixed maturity securities $ 3,929.9 $ 578.9 $ (52.7) $ 4,456.1 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 125 and 139 fixed maturity securities held by the Company as of December 31, 2020 and December 31, 2019, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (in millions): December 31, 2020 December 31, 2019 Fixed maturity securities Unrealized Losses % of Unrealized Losses % of Less than 20% $ (50.3) 95.4 % $ (32.6) 97.6 % 20% or more for less than six months (0.2) 0.4 % — — % 20% or more for six months or greater (2.2) 4.2 % (0.8) 2.4 % Total $ (52.7) 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 December 31, 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 $ 52.3 $ 53.1 Due after one year through five years 278.6 290.9 Due after five years through ten years 483.6 519.8 Due after ten years 2,546.4 3,038.9 Subtotal 3,360.9 3,902.7 Mortgage-backed securities 154.0 150.3 Asset-backed securities 415.0 403.1 Total $ 3,929.9 $ 4,456.1 |
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): December 31, 2020 December 31, 2019 Amortized Fair % of Amortized Fair % of Finance, insurance, and real estate $ 1,123.2 $ 1,208.2 35.0 % $ 632.2 $ 674.9 23.8 % Transportation, communication and other services 684.3 799.0 23.1 % 785.7 855.2 30.3 % Manufacturing 700.0 884.9 25.6 % 728.7 825.9 29.2 % Other 462.6 560.3 16.3 % 422.5 471.0 16.7 % Total $ 2,970.1 $ 3,452.4 100.0 % $ 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): Years Ended December 31, 2020 2019 Net realized and unrealized gains on investments $ 6.8 $ 2.1 Other income (expenses), net 0.1 0.3 Total other-than-temporary impairments $ 6.9 $ 2.4 |
Schedule of Estimated Fair Value and Gross Unrealized Loss | The following tables present the estimated fair values and gross unrealized losses for the 125 and 139 fixed maturity securities held by the Company that have estimated fair values below amortized cost as of each of December 31, 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): December 31, 2020 Less than 12 months 12 months or greater Total Fair Value Unrealized Fair Unrealized Fair Unrealized U.S. Government and government agencies $ — $ — $ — $ — $ — $ — States, municipalities and political subdivisions 0.3 — — — 0.3 — Residential mortgage-backed securities 2.9 (0.2) 3.8 (0.8) 6.7 (1.0) Commercial mortgage-backed securities 62.2 (9.3) 0.2 — 62.4 (9.3) Asset-backed securities 86.5 (3.6) 158.4 (10.5) 244.9 (14.1) Corporate and other 179.1 (9.0) 114.6 (19.3) 293.7 (28.3) Total fixed maturity securities $ 331.0 $ (22.1) $ 277.0 $ (30.6) $ 608.0 $ (52.7) 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): December 31, Equity securities 2020 2019 Common stock $ 4.0 $ 10.5 Perpetual preferred stock 73.3 82.0 Total equity securities $ 77.3 $ 92.5 |
Schedule of Other Invested Assets | Carrying values of other invested assets were as follows (in millions): December 31, 2020 December 31, 2019 Measurement Equity Measurement Equity Common stock $ — $ 2.5 $ — $ 2.4 Preferred stock — 10.0 — 16.1 Other 11.3 33.4 — 49.6 Total $ 11.3 $ 45.9 $ — $ 68.1 |
Net Investment Income | The major sources of net investment income were as follows (in millions): Years Ended December 31, 2020 2019 Fixed maturity securities, available-for-sale at fair value $ 177.4 $ 177.3 Equity securities 2.9 7.6 Mortgage loans 12.5 15.0 Policy loans 1.1 1.1 Other invested assets (3.9) 4.0 Gross investment income 190.0 205.0 External investment expense (1.1) (1.2) Net investment income $ 188.9 $ 203.8 |
Net Realized Gain (Loss) on Investments | The major sources of net realized and unrealized gains and losses on investments were as follows (in millions): Years Ended December 31, 2020 2019 Realized gains on fixed maturity securities $ 17.2 $ 10.6 Realized losses on fixed maturity securities (17.7) (10.2) Realized gains on equity securities 0.2 3.4 Realized losses on equity securities (2.3) (3.3) Realized gains on mortgage loans 2.2 1.0 Realized losses on mortgage loans — (0.3) Net unrealized gains (losses) on equity securities (8.8) 3.4 Net unrealized gains (losses) on derivative instruments 0.9 (1.7) Impairment loss (6.8) (2.2) Net realized and unrealized gains (losses) $ (15.1) $ 0.7 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2020 Fair Value Measurement Using: Total Level 1 Level 2 Level 3 Assets Fixed maturity securities U.S. Government and government agencies $ 8.4 $ 5.4 $ 3.0 $ — States, municipalities and political subdivisions 441.9 — 441.9 — Residential mortgage-backed securities 52.9 — 45.6 7.3 Commercial mortgage-backed securities 97.4 — 64.0 33.4 Asset-backed securities 403.1 — 36.1 367.0 Corporate and other 3,452.4 44.7 3,176.0 231.7 Total fixed maturity securities 4,456.1 50.1 3,766.6 639.4 Equity securities Common stocks 4.0 3.5 — 0.5 Perpetual preferred stocks 73.3 5.1 20.8 47.4 Total equity securities 77.3 8.6 20.8 47.9 Total assets accounted for at fair value $ 4,533.4 $ 58.7 $ 3,787.4 $ 687.3 Liabilities Embedded derivative $ 5.8 $ — $ — $ 5.8 Other 0.4 — — 0.4 Total liabilities accounted for at fair value $ 6.2 $ — $ — $ 6.2 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 1.3 — — 1.3 Total liabilities accounted for at fair value $ 4.3 $ — $ — $ 4.3 |
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 year ended December 31, 2020 and 2019 (in millions): 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 $ 1.1 $ — $ (3.0) $ 15.2 $ (13.5) $ — Residential mortgage-backed securities 9.2 0.1 (1.1) — (2.5) 6.8 (5.2) 7.3 Commercial mortgage-backed securities 34.6 (2.0) (1.1) — (1.9) 30.0 (26.2) 33.4 Asset-backed securities 550.6 (8.0) 4.3 60.1 (251.5) 191.8 (180.3) 367.0 Corporate and other 111.0 (3.9) 1.3 101.1 (9.0) 76.8 (45.6) 231.7 Total fixed maturity securities 705.4 (13.6) 4.5 161.2 (267.9) 320.6 (270.8) 639.4 Equity securities Common stocks 3.4 (2.9) — — — — — 0.5 Perpetual preferred stocks 54.2 2.3 (9.4) — (1.4) 1.7 — 47.4 Total equity securities 57.6 (0.6) (9.4) — (1.4) 1.7 — 47.9 Total financial assets $ 763.0 $ (14.2) $ (4.9) $ 161.2 $ (269.3) $ 322.3 $ (270.8) $ 687.3 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 $ 2.8 $ — $ — $ — $ — $ — $ 5.8 Other 1.3 (0.9) — — — — — 0.4 Total financial liabilities $ 4.3 $ 1.9 $ — $ — $ — $ — $ — $ 6.2 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 — 0.1 — (1.9) 1.5 (9.5) 9.2 Commercial mortgage-backed securities 58.2 0.8 1.5 7.5 (37.6) 5.1 (0.9) 34.6 Asset-backed securities 478.2 (2.1) 14.1 184.4 (236.7) 189.1 (76.4) 550.6 Corporate and other 85.0 (3.2) 5.5 28.5 (28.5) 106.5 (82.8) 111.0 Total fixed maturity securities 640.4 (4.5) 21.3 220.4 (305.2) 306.4 (173.4) 705.4 Equity securities Common stocks 5.9 (1.5) 0.1 0.3 (1.2) — (0.2) 3.4 Perpetual preferred stocks 55.3 (3.9) (0.1) 2.5 (2.6) 3.0 — 54.2 Total equity securities 61.2 (5.4) — 2.8 (3.8) 3.0 (0.2) 57.6 Derivatives — — — — — — — — Total financial assets $ 701.6 $ (9.9) $ 21.3 $ 223.2 $ (309.0) $ 309.4 $ (173.6) $ 763.0 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 $ (5.4) $ — $ — $ — $ — $ — $ 3.0 Other 1.8 (0.5) — — — — — 1.3 Total financial liabilities $ 10.2 $ (5.9) $ — $ — $ — $ — $ — $ 4.3 |
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): December 31, 2020 Fair Value Measurement Using: Carrying Value Estimated Fair Value Level 1 Level 2 Level 3 Assets Mortgage loans $ 57.2 $ 57.2 $ — $ — $ 57.2 Policy loans 17.8 17.8 — 17.8 — Other invested assets 11.3 11.3 — — 11.3 Total assets not accounted for at fair value $ 86.3 $ 86.3 $ — $ 17.8 $ 68.5 Liabilities Annuity benefits accumulated (1) $ 237.8 $ 235.2 $ — $ — $ 235.2 Long-term obligations (2) 560.4 578.8 — 578.8 — Total liabilities not accounted for at fair value $ 798.2 $ 814.0 $ — $ 578.8 $ 235.2 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 — Other invested assets — — — — — 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) 722.2 718.0 — 718.0 — Total liabilities not accounted for at fair value $ 956.1 $ 949.0 $ — $ 718.0 $ 231.0 (1) Excludes life contingent annuities in the payout phase. (2) Excludes certain lease obligations accounted for under ASC 842, Leases . |
Accounts Receivable, net (Table
Accounts Receivable, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Accounts Receivable | Accounts receivables, net from contracts with customers consist of the following (in millions): December 31, 2020 2019 Accounts receivables with customers Infrastructure $ 168.5 $ 199.2 Spectrum 7.3 8.5 Total accounts receivables with customers $ 175.8 $ 207.7 Accounts receivable, net consist of the following (in millions): December 31, 2020 2019 Contracts in progress $ 118.6 $ 149.0 Unbilled retentions 50.3 51.7 Trade receivables 7.5 8.3 Other receivables 8.9 21.0 Allowance for doubtful accounts (0.6) (1.1) Total $ 184.7 $ 228.9 |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current | Inventory is recognized in the Consolidated Balance Sheets within Other assets, and consists of the following (in millions): December 31, 2020 2019 Raw materials and consumables $ 8.7 $ 9.6 Work in process — 0.8 Finished goods 1.2 0.3 Total $ 9.9 $ 10.7 |
Recoverable from Reinsurers (Ta
Recoverable from Reinsurers (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Ceded Credit Risk | Recoverable from reinsurers consists of the following (in millions): December 31, 2020 December 31, 2019 Reinsurer A.M. Best Rating Amount % of Total Amount % of Total Munich American Reassurance Company A+ $ 366.6 38.3 % $ 347.6 36.4 % Hannover Life Reassurance Company of America A+ 306.3 32.0 % 323.3 33.9 % Loyal American Life Insurance Company A 150.7 15.7 % 147.5 15.5 % Great American Life Insurance Company A+ 57.4 6.0 % 56.2 5.9 % ManhattanLife Assurance Company of America B+ 46.4 4.8 % 47.0 4.9 % Other 30.1 3.2 % 32.1 3.4 % Total $ 957.5 100.0 % $ 953.7 100.0 % |
Property, Plant, and Equipmen_2
Property, Plant, and Equipment, net (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property, Plant, and Equipment | Property, plant and equipment consists of the following (in millions): December 31, 2020 2019 Equipment, furniture and fixtures, and software $ 116.3 $ 117.8 Building and leasehold improvements 41.3 40.1 Land 24.1 24.4 Construction in progress 3.1 2.9 Plant and transportation equipment 4.4 4.9 189.2 190.1 Less: Accumulated depreciation 75.3 60.6 Total $ 113.9 $ 129.5 |
Goodwill and Intangibles, net (
Goodwill and Intangibles, net (Tables) | 12 Months Ended |
Dec. 31, 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 were as follows (in millions): Infrastructure Spectrum Insurance Total Balance at December 31, 2018 $ 82.2 $ 21.4 $ 47.3 $ 150.9 Measurement Period Adjustment 7.1 — — 7.1 Impairments — — (47.3) (47.3) Translation (0.3) — — (0.3) Balance at December 31, 2019 89.0 21.4 — 110.4 Translation 0.6 — — 0.6 Balance at December 31, 2020 $ 89.6 $ 21.4 $ — $ 111.0 |
Schedule of Indefinite-Lived Intangible Assets | The carrying amount of indefinite-lived intangible assets were as follows (in millions): December 31, 2020 2019 FCC licenses $ 113.0 $ 136.2 State licenses 2.5 2.5 Total $ 115.5 $ 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 December 31, 2020 December 31, 2019 Gross Carrying Amount Accumulated Amortization Net Gross Carrying Amount Accumulated Amortization Net Trade names 14 years $ 18.0 $ (4.6) $ 13.4 $ 17.9 $ (3.2) $ 14.7 Customer relationships 9 years 36.4 (12.1) 24.3 36.2 (8.8) 27.4 Channel sharing arrangements 35 years 20.2 (1.6) 18.6 27.2 (0.9) 26.3 Other 7 years 5.5 (2.7) 2.8 5.4 (1.9) 3.5 Total $ 80.1 $ (21.0) $ 59.1 $ 86.7 $ (14.8) $ 71.9 |
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): Estimated Amortization Definite Lived Intangible Assets Negative VOBA 2021 $ 5.9 $ (19.6) 2022 5.7 (18.3) 2023 5.6 (17.1) 2024 5.5 (15.8) 2025 4.9 (14.7) Thereafter 31.5 (114.3) Total $ 59.1 $ (199.8) |
Life, Accident and Health Res_2
Life, Accident and Health Reserves (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Insurance [Abstract] | |
Schedule of Life, Accident and Health Reserves | Life, accident and health reserves consist of the following (in millions): December 31, 2020 2019 Long-term care insurance reserves $ 4,269.0 $ 4,201.6 Traditional life insurance reserves 166.0 173.4 Other accident and health insurance reserves 192.5 192.1 Total life, accident and health reserves $ 4,627.5 $ 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): Years Ended December 31, 2020 2019 Beginning balance $ 761.3 $ 738.7 Less: recoverable from reinsurers (131.0) (136.4) Beginning balance, net 630.3 602.3 Current year 217.5 211.8 Prior years (49.8) (47.2) Total incurred 167.7 164.6 Paid related to insured events of: Current year (18.2) (17.5) Prior years (152.1) (141.0) Total paid (170.3) (158.5) Interest on liability for policy and contract claims 22.5 21.9 Ending balance, net 650.2 630.3 Add: recoverable from reinsurers 132.2 131.0 Ending balance $ 782.4 $ 761.3 |
Accounts Payable and Other Cu_2
Accounts Payable and Other Current Liabilities (Tables) | 12 Months Ended |
Dec. 31, 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): December 31, 2020 2019 Accounts payable $ 69.7 $ 68.6 Accrued expenses and other current liabilities 52.7 70.1 Accrued payroll and employee benefits 38.2 38.7 Accrued interest 13.9 11.3 Accrued income taxes 1.8 1.9 Total accounts payable and other current liabilities $ 176.3 $ 190.6 |
Debt Obligations (Tables)
Debt Obligations (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule Of Debt And Capital Lease Obligations | Debt obligations consist of the following (in millions): December 31, 2020 2019 Infrastructure LIBOR plus 5.85% Note, due 2023 $ 71.6 $ 77.0 LIBOR plus 1.5% Line of Credit 38.7 48.9 Obligations under finance leases 0.2 0.2 Spectrum 8.50% Note due 2021 19.3 36.2 10.50% Note due 2021 32.9 42.5 Other, various maturity dates 2.9 7.9 Obligations under finance leases 0.6 1.4 Non-Operating Corporate 11.50% Senior Secured Notes, due 2021 (1) 340.4 470.0 7.50% Convertible Senior Notes, due 2022 (2) 55.0 55.0 LIBOR plus 6.75% Line of Credit (3) 15.0 15.0 Total 576.6 754.1 Issuance discount, net and deferred financing costs (15.1) (30.2) Debt obligations $ 561.5 $ 723.9 ( 1) On February 1, 2021, the Company closed on $330.0 million of 8.500% senior secured notes due 2026 at an issue price of 100%. The proceeds from the issuance of the Notes were used to redeem in full HC2’s existing 11.50% senior secured notes and repay the outstanding indebtedness under the 2020 Revolving Credit Agreement. (2) As part of the February 1, 2021 refinancing of the senior secured notes, HC2 entered into exchange agreements with certain holders of approximately $51.8 million of our outstanding 7.50% Convertible Senior Notes due June 1, 2022, which extended the maturity date of the notes to August 1, 2026. (3) On February 23, 2021, the Company entered into a third amendment of the 2020 Revolving Credit Agreement with MSD PCOF Partners IX, LLC, increasing the aggregate principal amount of the Revolving Credit Facility to $20.0 million, and extending the maturity date of the Revolving Credit Facility to February 23, 2024. |
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 2021 $ 0.7 $ 504.2 $ 504.9 2022 0.1 69.6 69.7 2023 — 71.8 71.8 2024 — 7.8 7.8 2025 — — — Thereafter — — — Total minimum principal and interest payments 0.8 653.4 654.2 Less: Amount representing interest — (77.6) (77.6) Total aggregate finance lease and debt payments $ 0.8 $ 575.8 $ 576.6 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Lease ROUs and Lease Liabilities | As of December 31, 2020 and 2019, lease right-of-use assets and lease liabilities consists of the following (in millions): December 31, 2020 2019 Right-of-use assets: Operating lease (Other assets) $ 44.3 $ 47.4 Finance lease (Property, plant and equipment, net) 0.9 2.1 Total right-of-use assets $ 45.2 $ 49.5 Lease liabilities: Operating lease (Other liabilities) $ 47.5 $ 51.0 Finance lease (Debt obligations) 0.8 1.6 Total lease liabilities $ 48.3 $ 52.6 |
Schedule of Leases, Cost | The following table summarizes the components of lease expense for the year ended December 31, 2020 and 2019 (in millions): Years Ended December 31, 2020 2019 Finance lease cost: Amortization of right-of-use assets $ 1.3 $ 1.2 Interest on lease liabilities 0.1 0.2 Net finance lease cost 1.4 1.4 Operating lease cost 17.1 13.8 Variable lease cost 0.3 0.3 Sublease income — (0.1) Total lease cost $ 18.8 $ 15.4 Cash flow information related to leases for the year ended December 31, 2020 and 2019 are as follows (in millions): Years Ended December 31, 2020 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from finance leases $ 0.1 $ 0.2 Financing cash flows from finance leases $ 0.9 $ 1.4 Operating cash flows from operating leases $ 17.0 $ 13.9 Right-of-use assets obtained in exchange for new lease liabilities Finance leases $ 0.1 $ 2.1 Operating leases $ 15.8 $ 60.3 As of December 31, 2020 and 2019, the weighted-average remaining lease term and the weighted-average discount rate for finance leases and operating leases are as follows: December 31, 2020 2019 Weighted-average remaining lease term (years) - operating lease 4.3 5.0 Weighted-average remaining lease term (years) - finance lease 0.9 1.8 Weighted-average discount rate - operating lease 6.0 % 6.2 % Weighted-average discount rate - finance lease 8.9 % 9.4 % |
Schedule of Finance Lease, Liability, Maturity | As of December 31, 2020, undiscounted cash flows for finance and operating leases are as follows (in millions): Operating Finance 2021 $ 15.1 $ 0.7 2022 12.8 0.1 2023 10.7 — 2024 8.0 — 2025 4.0 — Thereafter 4.2 — Total future lease payments 54.8 0.8 Less: Present values (7.3) — Total lease liability balance $ 47.5 $ 0.8 |
Schedule of Operating Lease, Liability, Maturity | As of December 31, 2020, undiscounted cash flows for finance and operating leases are as follows (in millions): Operating Finance 2021 $ 15.1 $ 0.7 2022 12.8 0.1 2023 10.7 — 2024 8.0 — 2025 4.0 — Thereafter 4.2 — Total future lease payments 54.8 0.8 Less: Present values (7.3) — Total lease liability balance $ 47.5 $ 0.8 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Provisions (Benefits) for Income Taxes | The provisions (benefits) for income taxes for the years ended December 31, 2020 and 2019 were as follows (in millions): Years Ended December 31, 2020 2019 Current: Federal $ (9.2) $ 3.8 State 1.7 2.4 Foreign 9.5 1.4 Subtotal Current 2.0 7.6 Deferred: Federal 5.0 (27.0) State 0.1 (0.1) Foreign 3.4 (0.1) Subtotal Deferred 8.5 (27.2) Income tax (benefit) expense $ 10.5 $ (19.6) |
Components of Income from Continuing Operations Before Income Taxes | The US and foreign components of income (loss) from continuing operations before income taxes for the years ended December 31, 2020 and 2019 were as follows (in millions): Years Ended December 31, 2020 2019 US $ (106.1) $ (49.7) Foreign 78.3 7.9 Income (loss) from continuing operations before income taxes $ (27.8) $ (41.8) |
Federal Statutory Income Tax Rate to Income (Loss) Before Income Taxes | The provisions (benefits) for income taxes differed from the amount computed by applying the federal statutory income tax rate to income (loss) before income taxes due to the following items for the years ended December 31, 2020 and 2019 (in millions): Years Ended December 31, 2020 2019 Tax provision (benefit) at federal statutory rate $ (5.8) $ (8.8) Permanent differences (0.3) 0.2 State tax, net of federal benefit (6.8) (7.3) Foreign rate differential 0.2 0.5 Minority interest — 0.2 Executive and stock compensation 1.2 2.5 Increase (decrease) in valuation allowance 24.1 (9.5) Transaction costs 0.5 — Return to provision 4.3 (6.0) ASU 2017-11 adoption — (1.3) Goodwill impairment — 10.0 Transition to the Coronavirus Aid, Relief, and Economic Security Act (10.9) — Withholding Tax Expense 7.3 — Gain/loss on sale or deconsolidation of a subsidiary (6.4) — Outside Basis Difference (0.9) — Contingent Liability 2.2 — AOCI Recycling 2.1 — Other (1.8) (1.8) Warrant Liability 1.5 1.7 Income tax (benefit) expense $ 10.5 $ (19.6) |
Significant Components of Company's Deferred Tax Assets and Liabilities | Net deferred tax balances are comprised of the following as of December 31, 2020 and 2019 (in millions): December 31, 2020 2019 Net operating loss carryforwards $ 72.9 $ 89.2 Basis difference in fixed assets 0.8 3.2 Deferred compensation 7.3 12.7 Lease liability 13.0 17.4 UK trading loss carryforward — 38.3 Sec. 163(j) carryforward 58.6 39.6 Insurance claims and reserves 176.4 166.1 Value of insurance business acquired ("VOBA") 43.7 48.5 Deferred acquisition costs 19.0 16.7 Other deferred tax assets 21.2 14.3 Total deferred tax assets 412.9 446.0 Valuation allowance (110.6) (121.8) Total net deferred tax assets 302.3 324.2 Basis difference in intangibles (22.7) (19.1) Basis difference in fixed assets (22.3) (24.8) Insurance company investments (373.1) (335.0) Right of use assets (12.1) (16.2) Other deferred tax liabilities (11.1) (10.1) Total deferred tax liabilities (441.3) (405.2) Net deferred tax liabilities $ (139.0) $ (81.0) |
Summary of Reconciliation of Unrecognized Tax Benefits | Below is a tabular reconciliation of the total amount of unrecognized tax benefits (in millions): December 31, 2020 2019 Uncertain tax benefits - January 1 $ — $ — Gross increases - Tax positions in prior period — — Gross decreases - Tax positions in prior period — — Gross increases - Tax positions in current period 22.9 — Settlement — — Lapse in statute of limitations — — Uncertain tax benefits - December 31 $ 22.9 $ — |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Obligations and Non-Cancellable Operating Leases | Future minimum purchase obligations as of December 31, 2020 were as follows (in millions): 2021 $ 78.1 2022 0.2 2023 0.2 2024 0.2 2025 — Thereafter — Total obligations $ 78.7 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Fair Value of Each Option Grant Estimated | 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: Year Ended December 31, 2020 Expected option life (in years) 4.3 years Risk-free interest rate 0.24% Expected volatility 62.23% Dividend yield —% |
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, 2018 3,031,469 $ 5.93 Granted 542,450 $ 2.57 Vested (1,349,531) $ 5.92 Forfeited (10,613) $ 2.91 Unvested - December 31, 2019 2,213,775 $ 5.12 Granted 1,152,202 $ 2.74 Vested (2,258,905) $ 4.08 Forfeited (478,639) $ 5.87 Unvested - December 31, 2020 628,433 $ 3.93 |
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, 2018 7,160,861 $ 6.51 Granted — $ — Exercised — $ — Forfeited — $ — Expired (93,269) $ 5.47 Outstanding - December 31, 2019 7,067,592 $ 6.52 Granted 143,096 $ 2.62 Exercised — $ — Forfeited (142,503) $ 5.45 Expired (2,328,327) $ 9.18 Outstanding - December 31, 2020 4,739,858 $ 5.13 Eligible for exercise 4,697,653 $ 5.13 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Schedule of Stock by Class | The Company’s preferred shares authorized, issued and outstanding consisted of the following: 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 — — |
Summary of Cash, PIK and Special Cash Dividends | During the years ended December 31, 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 December 31, 2020 Holders of Record Date March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 Payment Date April 15, 2020 July 15, 2020 October 15, 2020 January 15, 2021 Total Dividend $ 0.2 $ 0.2 $ 0.2 $ 0.2 2019 Declaration Date March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Holders of Record Date March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 Payment Date April 15, 2019 July 15, 2019 October 15, 2019 January 15, 2020 Total Dividend $ 0.2 $ 0.2 $ 0.2 $ 0.2 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | The following table breaks out the components of the Services Agreement net expenses, by Segment for the years ended December 31, 2020 and 2019: Years Ended December 31, 2020 2019 Corporate Other (1) Total Corporate Other (1) Total Allocated to HC2 by HCP Office space $ 1.1 $ 0.5 $ 1.6 $ 1.8 $ 0.8 $ 2.6 Administrative salaries and benefits — — — 0.1 — 0.1 Other shared overhead — — — — — — Total Expenses 1.1 0.5 1.6 1.9 0.8 2.7 Charged back to HCP by HC2 Administrative salaries and benefits 0.1 — 0.1 0.2 — 0.2 Other shared overhead — — — 0.1 — 0.1 Total Income 0.1 — 0.1 0.3 — 0.3 Net related party activity $ 1.0 $ 0.5 $ 1.5 $ 1.6 $ 0.8 $ 2.4 (1) Other in the above table represent certain entities within our Spectrum, Life Sciences and Insurance segments. Years Ended December 31, 2020 2019 Net revenue $ — $ 6.4 Operating expenses $ — $ 1.0 Interest expense $ — $ 1.0 December 31, 2020 2019 Accounts receivable $ — $ 1.2 Long-term obligations $ — $ 22.5 Accounts payable $ — $ 0.1 Dividends $ — $ 4.5 |
Operating Segment and Related_2
Operating Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Summary of Company's Operating Segments | Summary information with respect to the Company’s operating segments is as follows (in millions): Years Ended December 31, 2020 2019 Net revenue Infrastructure $ 676.6 $ 713.3 Spectrum 40.3 41.8 Insurance 300.2 331.6 Other — 0.5 Eliminations (*) (11.3) (10.2) Total net revenue $ 1,005.8 $ 1,077.0 (*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the year ended December 31, 2020 and 2019 which are related to entities under common control which are eliminated or are reclassified in consolidation. Years Ended December 31, 2020 2019 (Loss) income from operations Infrastructure $ 20.5 $ 45.1 Life Sciences (16.9) (8.9) Spectrum (2.2) (11.4) Insurance 35.6 37.3 Other (2.8) (1.6) Non-operating Corporate (27.0) (25.0) Eliminations (*) (11.3) (10.2) Total (loss) income from operations $ (4.1) $ 25.3 (*) The Insurance segment revenues are inclusive of realized and unrealized gains and net investment income for the year ended December 31, 2020 and 2019 which are related to 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): Years Ended December 31, 2020 2019 (Loss) income from operations $ (4.1) $ 25.3 Interest expense (79.4) (76.1) Loss on early extinguishment or restructuring of debt (9.4) — (Loss) income from equity investees (3.4) 1.6 Gain on bargain purchase — 1.1 Other income 68.5 6.3 Loss from continuing operations before income taxes (27.8) (41.8) Income tax benefit (expense) (10.5) 19.6 Loss from continuing operations (38.3) (22.2) Loss from discontinued operations (including loss on disposal of $44.2 million) (63.8) (13.9) Net loss (102.1) (36.1) Net loss attributable to noncontrolling interest and redeemable noncontrolling interest 10.1 4.6 Net loss attributable to HC2 Holdings, Inc. (92.0) (31.5) Less: Preferred dividends, deemed dividends, and repurchase gains 3.6 — Net loss attributable to common stock and participating preferred stockholders $ (95.6) $ (31.5) Years Ended December 31, 2020 2019 Depreciation and Amortization Infrastructure $ 10.7 $ 15.5 Life Sciences 0.1 0.3 Spectrum 6.8 6.3 Insurance (*) (20.9) (23.1) Non-operating Corporate 0.1 0.1 Total $ (3.2) $ (0.9) (*) Balance includes amortization of negative VOBA, which increases net income. Years Ended December 31, 2020 2019 Capital Expenditures (*) Infrastructure $ 5.7 $ 9.8 Life Sciences 0.1 0.1 Spectrum 11.8 14.2 Insurance 0.2 0.6 Total $ 17.8 $ 24.7 (*) 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 | December 31, 2020 2019 Investments Infrastructure $ 0.9 $ 0.9 Life Sciences 18.4 22.0 Insurance 4,711.3 4,423.0 Other 36.1 43.1 Eliminations (101.1) (96.9) Total $ 4,665.6 $ 4,392.1 December 31, 2020 2019 Total Assets Infrastructure $ 494.8 $ 530.4 Life Sciences 21.4 28.4 Spectrum 213.6 257.9 Insurance 5,913.8 5,611.9 Other 167.3 598.4 Non-operating Corporate 30.1 27.2 Eliminations (98.2) (95.9) Total $ 6,742.8 $ 6,958.3 |
Basic and Diluted Income Per _2
Basic and Diluted Income Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 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 income (loss) used in basic and diluted EPS calculations (in millions, except per share amounts): Years Ended December 31, 2020 2019 Loss from continuing operations $ (38.3) $ (22.2) Income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest (5.6) 4.4 Loss from continuing operations attributable to the Company (43.9) (17.8) Less: Preferred dividends, deemed dividends and repurchase gains 3.6 — Loss from continuing operations attributable to HC2 common stockholders (47.5) (17.8) Loss from discontinued operations (63.8) (13.9) Loss attributable to noncontrolling interest and redeemable noncontrolling interest 15.7 0.2 Loss from discontinued operations, net of tax and noncontrolling interest (48.1) (13.7) Net loss attributable to common stock and participating preferred stockholders $ (95.6) $ (31.5) Earnings allocable to common shares: Participating shares at end of period: Weighted-average common stock outstanding 50.3 44.8 Unvested restricted stock — — Preferred stock (as-converted basis) 0.4 — Total 50.7 44.8 Percentage of loss allocated to: Common stock 99.2 % 100.0 % Unvested restricted stock — % — % Preferred stock 0.8 % — % Numerator for earnings per share, basic: Net loss from continuing operations attributable to common stock, basic $ (47.1) $ (17.8) Net loss from discontinued operations attributable to common stock, basic $ (47.7) $ (13.7) Net loss attributable to common stock, basic $ (94.8) $ (31.5) Earnings allocable to common shares, diluted: Numerator for earnings per share, diluted Effect of assumed shares under the if-converted method for convertible instruments $ (0.4) $ — Net loss from continuing operations attributable to common stock, basic $ (47.5) $ (17.8) Net loss from discontinued operations attributable to common stock, basic $ (47.7) $ (13.7) Net loss attributable to common stock, basic $ (95.2) $ (31.5) Denominator for basic and dilutive earnings per share Weighted average common shares outstanding - basic 50.3 44.8 Effect of assumed shares under treasury stock method for stock options and restricted shares and if-converted method for convertible instruments 0.4 — Weighted average common shares outstanding - diluted 50.7 44.8 Loss per share - continuing operations Basic $ (0.94) $ (0.40) Diluted $ (0.94) $ (0.40) Loss per share - discontinued operations Basic $ (0.94) $ (0.30) Diluted $ (0.94) $ (0.30) Loss per share - Net loss attributable to common stock and participating preferred stockholders Basic $ (1.88) $ (0.70) Diluted $ (1.88) $ (0.70) |
Organization and Business (Deta
Organization and Business (Details) - segment | 12 Months Ended | ||
Dec. 31, 2020 | May 12, 2020 | Oct. 30, 2019 | |
Business And Organization [Line Items] | |||
Number of reportable segments | 4 | ||
DBMG | |||
Business And Organization [Line Items] | |||
Parents interest, controlling | 92.00% | ||
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] | |||
Percentrage of proxy and voting rights from minority holders | 10.00% | ||
Insurance Companies | |||
Business And Organization [Line Items] | |||
Parents interest, controlling | 100.00% | ||
Marine Services | |||
Business And Organization [Line Items] | |||
Parents interest, controlling | 73.00% | 30.00% | 49.00% |
HMN | |||
Business And Organization [Line Items] | |||
Parents interest, controlling | 19.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Licensing Agreements | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Renewal period | 8 years |
Minimum | Buildings and Leasehold Improvements | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Useful lives | 5 years |
Minimum | Equipment, Furniture and Fixtures | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Useful lives | 3 years |
Minimum | Plant and Transportation Equipment | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Useful lives | 3 years |
Maximum | Buildings and Leasehold Improvements | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Useful lives | 40 years |
Maximum | Equipment, Furniture and Fixtures | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Useful lives | 15 years |
Maximum | Plant and Transportation Equipment | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |
Useful lives | 20 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Schedule of Other Income (Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounting Policies [Abstract] | ||
Gain (loss) on embedded derivatives | $ (2.8) | $ 5.4 |
Gain on sale of equity method investments | 71.1 | 8.1 |
Other income (expenses), net | 0.2 | (7.2) |
Total | $ 68.5 | $ 6.3 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule of Cash and Cash Equivalents (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Cash and cash equivalents | $ 232.3 | $ 193.7 | $ 300.7 |
Restricted cash included in other assets | 1.5 | 1.4 | 5.1 |
Total cash and cash equivalents and restricted cash | 233.8 | 195.1 | 305.8 |
Cash and cash equivalents classified in assets held for sale | 6.7 | 45.3 | 24.2 |
Restricted cash classified in Assets held for sale | 0.2 | 0.2 | 0.4 |
Total cash and cash equivalents and restricted cash classified in Assets held for sale | 6.9 | 45.5 | $ 24.6 |
Supplemental cash flow information: | |||
Cash paid for interest | 62.5 | 70.9 | |
Cash paid for taxes, net of refunds | (0.1) | 7.5 | |
Non-cash investing and financing activities: | |||
Property, plant and equipment included in accounts payable | 2.3 | 5.3 | |
Investments included in accounts payable | $ 17.2 | $ 30.1 |
Discontinued Operations - Summa
Discontinued Operations - Summarized Operating Results of the Discontinued Operations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Discontinued Operations and Disposal Groups [Abstract] | ||
Net Revenue | $ 519.6 | $ 907.2 |
Cost of revenue | 492.4 | 828.9 |
Selling, general and administrative | 26.2 | 37.3 |
Depreciation and amortization | 12.6 | 33 |
Other operating expenses | 0.3 | 4.4 |
Income (loss) from operations | (11.9) | 3.6 |
Interest Expense | (7.7) | (19.1) |
Loss on sale and liquidation of subsidiaries | (44.2) | 0 |
Income from equity investees | 0.5 | 0.6 |
Other income (loss) | (1.5) | (0.2) |
Pre-tax loss from discontinued operations | (64.8) | (15.1) |
Income tax benefit | 1 | 1.2 |
Loss from discontinued operations | $ (63.8) | $ (13.9) |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) $ in Millions | Oct. 31, 2020 | Feb. 28, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2020 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (Loss) on sale of subsidiary | $ (44.2) | $ 0 | ||||
Loss on disposal of subsidiary | (30.3) | 0 | ||||
Repayments of long-term debt | 181.8 | 29.5 | ||||
Foreign currency translation adjustment | $ 7.9 | $ (1.9) | ||||
Marine Services | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (Loss) on sale of subsidiary | $ (39.3) | $ 2.4 | ||||
Loss on disposal of subsidiary | 31.3 | |||||
Marine Services | Revolving Credit Agreement | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Repayments of long-term debt | $ 15 | |||||
Marine Services | Secured Indenture | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Debt instrument, amount redeemed | $ 76.9 | |||||
ICS | ||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Gain (Loss) on sale of subsidiary | $ 0.9 | |||||
Foreign currency translation adjustment | $ (8.2) |
Discontinued Operations - Inter
Discontinued Operations - Interest and amortization (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Interest expense | $ 79.4 | $ 76.1 |
Revolving Credit Agreement | Marine Services | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Interest expense | 0.2 | 0.9 |
Amortization of deferred financing costs and original issuance discount | 0.1 | 0.3 |
Secured Indenture | Marine Services | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Interest expense | 2.2 | 8.8 |
Amortization of deferred financing costs and original issuance discount | $ 0.2 | $ 0.9 |
Discontinued Operations - Sum_2
Discontinued Operations - Summarized Assets and Liabilities of the of Discontinued Operations (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | |||
Other invested assets | $ 0 | $ 16.9 | |
Cash and cash equivalents | 6.7 | 45.3 | $ 24.2 |
Accounts receivable, net | 13.6 | 109 | |
Property, plant and equipment, net | 89.4 | 276.3 | |
Goodwill | 2.1 | 16.4 | |
Intangibles, net | 9.2 | 16.3 | |
Other assets | 5.4 | 75 | |
Total assets held for sale | 126.4 | 555.2 | |
Liabilities | |||
Account payable and other current liabilities | 10.3 | 148.9 | |
Debt obligations | 56.3 | 115.3 | |
Pension liability | 0 | 18.8 | |
Other liabilities | 8.1 | 51.9 | |
Total liabilities held for sale | $ 74.7 | $ 334.9 |
Revenue - Reconciliation of Rev
Revenue - Reconciliation of Revenue from Segments to Consolidated (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 716.9 | $ 755.6 |
Infrastructure | ||
Segment Reporting Information [Line Items] | ||
Revenue | 675.9 | 712.9 |
Spectrum | ||
Segment Reporting Information [Line Items] | ||
Revenue | 40.3 | 41.8 |
Operating Segments | Infrastructure | ||
Segment Reporting Information [Line Items] | ||
Revenue | 676.6 | 713.3 |
Operating Segments | Spectrum | ||
Segment Reporting Information [Line Items] | ||
Revenue | 40.3 | 41.8 |
Operating Segments | Other | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 0 | $ 0.5 |
Revenue - Schedule of Accounts
Revenue - Schedule of Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Total accounts receivables with customers | $ 175.8 | $ 207.7 |
Infrastructure | ||
Segment Reporting Information [Line Items] | ||
Total accounts receivables with customers | 168.5 | 199.2 |
Spectrum | ||
Segment Reporting Information [Line Items] | ||
Total accounts receivables with customers | $ 7.3 | $ 8.5 |
Revenue - Construction Segment
Revenue - Construction Segment Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 716.9 | $ 755.6 |
Net revenue | 1,005.8 | 1,077 |
Infrastructure | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 675.9 | 712.9 |
Other revenue | 0.7 | 0.4 |
Net revenue | 676.6 | 713.3 |
Infrastructure | Commercial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 217.7 | 205.4 |
Infrastructure | Industrial | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 214.9 | 238 |
Infrastructure | Transportation | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 72.6 | 64.8 |
Infrastructure | Leisure | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 42.8 | 45.7 |
Infrastructure | Healthcare | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 29.5 | 49.5 |
Infrastructure | Convention | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 10.6 | 77.4 |
Infrastructure | Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 87.8 | $ 32.1 |
Revenue - Construction Segmen_2
Revenue - Construction Segment Contract with Customer, Asset and Liability (Details) - Infrastructure - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Contract assets | $ 55.6 | $ 50.6 |
Contract liabilities | $ (52.2) | $ (50.6) |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - Infrastructure $ in Millions | Dec. 31, 2020USD ($) |
Revenue from External Customer [Line Items] | |
Change in contract assets costs in excess of billings, new commercial contracts | $ 30.4 |
Change in contract assets costs in excess of billings, transfer to receivables | 25.4 |
Change in contract liabilities costs in excess of billings, new commercial contracts | 50.5 |
Change in contract liabilities costs in excess of billings, transfer to receivables | 48.9 |
Remaining commitment obligations, amount | $ 12 |
Revenue - Schedule of Construct
Revenue - Schedule of Construction Segment Revenue (Details) - Infrastructure $ in Millions | Dec. 31, 2020USD ($) |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 382.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 379.6 |
Remaining performance obligation period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 2.9 |
Remaining performance obligation period | 5 years |
Commercial | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 154 |
Commercial | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 151.1 |
Remaining performance obligation period | 1 year |
Commercial | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 2.9 |
Remaining performance obligation period | 5 years |
Convention | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 56.1 |
Convention | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 56.1 |
Remaining performance obligation period | 1 year |
Convention | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligation period | 5 years |
Healthcare | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 26 |
Healthcare | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 26 |
Remaining performance obligation period | 1 year |
Healthcare | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligation period | 5 years |
Industrial | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 49.4 |
Industrial | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 49.4 |
Remaining performance obligation period | 1 year |
Industrial | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligation period | 5 years |
Transportation | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 27.7 |
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 27.7 |
Remaining performance obligation period | 1 year |
Transportation | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligation period | 5 years |
Leisure | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 10.4 |
Leisure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 10.4 |
Remaining performance obligation period | 1 year |
Leisure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligation period | 5 years |
Other | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 58.9 |
Other | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 58.9 |
Remaining performance obligation period | 1 year |
Other | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Segment Reporting Information [Line Items] | |
Remaining performance obligations | $ 0 |
Remaining performance obligation period | 5 years |
Revenue - Broadcasting Segment
Revenue - Broadcasting Segment Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 716.9 | $ 755.6 |
Net revenue | 1,005.8 | 1,077 |
Spectrum | ||
Segment Reporting Information [Line Items] | ||
Revenue | 40.3 | 41.8 |
Other revenue | 0 | 0 |
Net revenue | 40.3 | 41.8 |
Network advertising | Spectrum | ||
Segment Reporting Information [Line Items] | ||
Revenue | 18.4 | 22.7 |
Broadcast station | Spectrum | ||
Segment Reporting Information [Line Items] | ||
Revenue | 15.5 | 11.9 |
Network distribution | Spectrum | ||
Segment Reporting Information [Line Items] | ||
Revenue | 4 | 4.9 |
Other | Spectrum | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 2.4 | $ 2.3 |
Revenue - Remaining Unsatisfied
Revenue - Remaining Unsatisfied Performance Obligations (Details) $ in Millions | Dec. 31, 2020USD ($) |
Infrastructure | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 382.5 |
Infrastructure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 1 year |
Remaining performance obligations | $ 379.6 |
Infrastructure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 5 years |
Remaining performance obligations | $ 2.9 |
Spectrum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 1 year |
Remaining performance obligations | $ 5.5 |
Spectrum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 5 years |
Remaining performance obligations | $ 3.7 |
Network advertising | Spectrum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 1 year |
Remaining performance obligations | $ 2.7 |
Network advertising | Spectrum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 5 years |
Broadcast station | Spectrum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 1 year |
Remaining performance obligations | $ 6.3 |
Broadcast station | Spectrum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 5 years |
Other | Infrastructure | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 58.9 |
Other | Infrastructure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 1 year |
Remaining performance obligations | $ 58.9 |
Other | Infrastructure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 5 years |
Remaining performance obligations | $ 0 |
Other | Spectrum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 1 year |
Remaining performance obligations | $ 0.2 |
Other | Spectrum | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 5 years |
Backlog | Infrastructure | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation period | 24 months |
Acquisitions, Dispositions, and
Acquisitions, Dispositions, and Deconsolidations - Spectrum Acquisitions (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Spectrum | |
Business Acquisition [Line Items] | |
Consideration paid | $ 20.5 |
Acquisitions, Dispositions, a_2
Acquisitions, Dispositions, and Deconsolidations - Other Segments (Details) - USD ($) $ in Thousands | Oct. 31, 2020 | Feb. 28, 2020 | Jan. 30, 2020 | Oct. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | May 12, 2020 |
Business Acquisition [Line Items] | ||||||||
Cash received from dispositions, net | $ 147,400 | $ 13,500 | ||||||
Gain (Loss) on sale of subsidiary | (44,200) | 0 | ||||||
Loss on disposal of subsidiary | (30,300) | 0 | ||||||
Gain on sale of equity method investments | 71,100 | 8,100 | ||||||
Foreign | 9,500 | 1,400 | ||||||
Foreign currency translation adjustment | (7,900) | $ 1,900 | ||||||
Marine Services | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership percentage before sale of stock | 100.00% | |||||||
Consideration to be received | $ 250,000 | $ 140,000 | ||||||
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 | |||||||
Proceeds from divestiture of businesses | $ 144,000 | 85,500 | ||||||
Cash received from dispositions, net | 100,800 | |||||||
Gain (Loss) on sale of subsidiary | (39,300) | $ 2,400 | ||||||
Loss on disposal of subsidiary | 31,300 | |||||||
Gain on sale of equity method investments | 71,100 | |||||||
Foreign | 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] | ||||||||
Proceeds from divestiture of businesses | 17,500 | |||||||
Cash divested from deconsolidation | 36,800 | |||||||
Marine Services | Noncontrolling Interest Redeemable | ||||||||
Business Acquisition [Line Items] | ||||||||
Proceeds from divestiture of businesses | 2,100 | |||||||
Cash divested from deconsolidation | $ 5,500 | |||||||
Huawei Marine Networks | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration to be received | $ 285,000 | |||||||
ICS | ||||||||
Business Acquisition [Line Items] | ||||||||
Gain (Loss) on sale of subsidiary | $ 900 | |||||||
Foreign currency translation adjustment | $ 8,200 | |||||||
Beyond6 | ||||||||
Business Acquisition [Line Items] | ||||||||
Consideration to be received | $ 70,000 | $ 70,000 | ||||||
New Saxon 2019 Limited | ||||||||
Business Acquisition [Line Items] | ||||||||
Parents interest, controlling | 73.00% | 19.00% | ||||||
Huawei Marine Networks | ||||||||
Business Acquisition [Line Items] | ||||||||
Ownership percentage before sale of stock | 49.00% | |||||||
Marine Services | ||||||||
Business Acquisition [Line Items] | ||||||||
Parents interest, controlling | 49.00% | 73.00% | 73.00% | 30.00% |
Investments - Schedule of Fixed
Investments - Schedule of Fixed Maturity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 3,929.9 | |
Unrealized Losses | (52.7) | $ (33.4) |
Fair Value | 4,456.1 | 4,028.9 |
Total fixed maturity securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,929.9 | 3,745.3 |
Unrealized Gains | 578.9 | 317 |
Unrealized Losses | (52.7) | (33.4) |
Fair Value | 4,456.1 | 4,028.9 |
U.S. Government and government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7.3 | 7 |
Unrealized Gains | 1.1 | 0.7 |
Unrealized Losses | 0 | 0 |
Fair Value | 8.4 | 7.7 |
States, municipalities and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 383.5 | 405.4 |
Unrealized Gains | 58.4 | 34.7 |
Unrealized Losses | 0 | 0 |
Fair Value | 441.9 | 440.1 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 49.3 | 63 |
Unrealized Gains | 4.6 | 4.5 |
Unrealized Losses | (1) | (0.6) |
Fair Value | 52.9 | 66.9 |
Commercial mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 104.7 | 108.2 |
Unrealized Gains | 2 | 1.8 |
Unrealized Losses | (9.3) | (0.6) |
Fair Value | 97.4 | 109.4 |
Asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 415 | 592.6 |
Unrealized Gains | 2.2 | 2.2 |
Unrealized Losses | (14.1) | (17) |
Fair Value | 403.1 | 577.8 |
Corporate and other | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,970.1 | 2,569.1 |
Unrealized Gains | 510.6 | 273.1 |
Unrealized Losses | (28.3) | (15.2) |
Fair Value | $ 3,452.4 | $ 2,827 |
Investments - Schedule of Matur
Investments - Schedule of Maturities of Fixed Maturity Securities Available-for-Sale (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Amortized Cost | $ 3,929.9 | |
Fair Value | ||
Fair Value | 4,456.1 | $ 4,028.9 |
Corporate, Municipal, U.S. Government and Other securities | ||
Amortized Cost | ||
Due in one year or less | 52.3 | |
Due after one year through five years | 278.6 | |
Due after five years through ten years | 483.6 | |
Due after ten years | 2,546.4 | |
Subtotal | 3,360.9 | |
Fair Value | ||
Due in one year or less | 53.1 | |
Due after one year through five years | 290.9 | |
Due after five years through ten years | 519.8 | |
Due after ten years | 3,038.9 | |
Subtotal | 3,902.7 | |
Mortgage-backed securities | ||
Amortized Cost | ||
Amortized cost, without single maturity date | 154 | |
Fair Value | ||
Fair value, without single maturity date | 150.3 | |
Asset-backed securities | ||
Amortized Cost | ||
Amortized cost, without single maturity date | 415 | |
Amortized Cost | 415 | 592.6 |
Fair Value | ||
Fair value, without single maturity date | 403.1 | |
Fair Value | $ 403.1 | $ 577.8 |
Investments - Schedule of Major
Investments - Schedule of Major Industry Types of Fixed Maturity Holdings (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 3,929.9 | |
Fair Value | 4,456.1 | $ 4,028.9 |
Corporate And Other Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,970.1 | 2,569.1 |
Fair Value | $ 3,452.4 | $ 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 | $ 1,123.2 | $ 632.2 |
Fair Value | $ 1,208.2 | $ 674.9 |
Percentage of Total | 35.00% | 23.80% |
Transportation, communication and other services | Corporate And Other Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 684.3 | $ 785.7 |
Fair Value | $ 799 | $ 855.2 |
Percentage of Total | 23.10% | 30.30% |
Manufacturing | Corporate And Other Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 700 | $ 728.7 |
Fair Value | $ 884.9 | $ 825.9 |
Percentage of Total | 25.60% | 29.20% |
Other | Corporate And Other Fixed Maturities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 462.6 | $ 422.5 |
Fair Value | $ 560.3 | $ 471 |
Percentage of Total | 16.30% | 16.70% |
Investments - Other than Tempor
Investments - Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Total other-than-temporary impairments | $ 6.9 | $ 2.4 |
Net realized and unrealized gains on investments | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total other-than-temporary impairments | 6.8 | 2.1 |
Other income (expenses), net | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total other-than-temporary impairments | $ 0.1 | $ 0.3 |
Investments - Schedule of Unrea
Investments - Schedule of Unrealized Losses for Fixed Maturities and Equity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Fixed Maturity Securities, Unrealized Losses | ||
Less than 20% | $ (50.3) | $ (32.6) |
20% or more for less than six months | (0.2) | 0 |
20% or more for six months or greater | (2.2) | (0.8) |
Total | $ (52.7) | $ (33.4) |
Fixed Maturity Securiites, Percentage of Sales | ||
Less than 20% | 95.40% | 97.60% |
20% or more for less than six months | 0.40% | 0.00% |
20% or more for six months or greater | 4.20% | 2.40% |
Total | 100.00% | 100.00% |
Investments - Narrative (Detail
Investments - Narrative (Details) - security | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Number of fixed maturity and equity securities | 125 | 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 | 70.00% | 68.30% |
Percentage of fair value | 79.90% | 81.80% |
Investments - Schedule of Estim
Investments - Schedule of Estimated Fair Values and Gross Unrealized Losses (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Less than 12 months | ||
Fair Value | $ 331 | $ 358.8 |
Unrealized Losses | (22.1) | (5.8) |
12 months or greater | ||
Fair Value | 277 | 441.6 |
Unrealized Losses | (30.6) | (27.6) |
Fair Value | 608 | 800.4 |
Unrealized Losses | (52.7) | (33.4) |
U.S. Government and government agencies | ||
Less than 12 months | ||
Fair Value | 0 | 0.3 |
Unrealized Losses | 0 | 0 |
12 months or greater | ||
Fair Value | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 0 | 0.3 |
Unrealized Losses | 0 | 0 |
States, municipalities and political subdivisions | ||
Less than 12 months | ||
Fair Value | 0.3 | 2 |
Unrealized Losses | 0 | 0 |
12 months or greater | ||
Fair Value | 0 | 0 |
Unrealized Losses | 0 | 0 |
Fair Value | 0.3 | 2 |
Unrealized Losses | 0 | 0 |
Residential mortgage-backed securities | ||
Less than 12 months | ||
Fair Value | 2.9 | 2.3 |
Unrealized Losses | (0.2) | 0 |
12 months or greater | ||
Fair Value | 3.8 | 8.2 |
Unrealized Losses | (0.8) | (0.6) |
Fair Value | 6.7 | 10.5 |
Unrealized Losses | (1) | (0.6) |
Commercial mortgage-backed securities | ||
Less than 12 months | ||
Fair Value | 62.2 | 58.1 |
Unrealized Losses | (9.3) | (0.6) |
12 months or greater | ||
Fair Value | 0.2 | 0.2 |
Unrealized Losses | 0 | 0 |
Fair Value | 62.4 | 58.3 |
Unrealized Losses | (9.3) | (0.6) |
Asset-backed securities | ||
Less than 12 months | ||
Fair Value | 86.5 | 126.5 |
Unrealized Losses | (3.6) | (1.5) |
12 months or greater | ||
Fair Value | 158.4 | 255.8 |
Unrealized Losses | (10.5) | (15.5) |
Fair Value | 244.9 | 382.3 |
Unrealized Losses | (14.1) | (17) |
Corporate and other | ||
Less than 12 months | ||
Fair Value | 179.1 | 169.6 |
Unrealized Losses | (9) | (3.7) |
12 months or greater | ||
Fair Value | 114.6 | 177.4 |
Unrealized Losses | (19.3) | (11.5) |
Fair Value | 293.7 | 347 |
Unrealized Losses | $ (28.3) | $ (15.2) |
Investments - Equity Securities
Investments - Equity Securities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Total equity securities | $ 77.3 | $ 92.5 |
Common stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total equity securities | 4 | 10.5 |
Perpetual preferred stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total equity securities | $ 73.3 | $ 82 |
Investments - Schedule of Other
Investments - Schedule of Other Invested Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Summary of Investment Holdings [Line Items] | ||
Measurement Alternative | $ 11.3 | $ 0 |
Equity Method | 45.9 | 68.1 |
Common stock | ||
Summary of Investment Holdings [Line Items] | ||
Measurement Alternative | 0 | 0 |
Equity Method | 2.5 | 2.4 |
Preferred stock | ||
Summary of Investment Holdings [Line Items] | ||
Measurement Alternative | 0 | 0 |
Equity Method | 10 | 16.1 |
Other | ||
Summary of Investment Holdings [Line Items] | ||
Measurement Alternative | 11.3 | 0 |
Equity Method | $ 33.4 | $ 49.6 |
Investments - Net Investment In
Investments - Net Investment Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net Investment Income [Line Items] | ||
Gross investment income | $ 190 | $ 205 |
External investment expense | (1.1) | (1.2) |
Net investment income | 188.9 | 203.8 |
Fixed maturity securities, available-for-sale at fair value | ||
Net Investment Income [Line Items] | ||
Gross investment income | 177.4 | 177.3 |
Equity securities | ||
Net Investment Income [Line Items] | ||
Gross investment income | 2.9 | 7.6 |
Mortgage loans | ||
Net Investment Income [Line Items] | ||
Gross investment income | 12.5 | 15 |
Policy loans | ||
Net Investment Income [Line Items] | ||
Gross investment income | 1.1 | 1.1 |
Other invested assets | ||
Net Investment Income [Line Items] | ||
Investment Income, Net | $ (3.9) | $ 4 |
Investments - Net Realized Gain
Investments - Net Realized Gain (Loss) on Investments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Realized gains on fixed maturity securities | $ 17.2 | $ 10.6 |
Realized losses on fixed maturity securities | (17.7) | (10.2) |
Realized gains on equity securities | 0.2 | 3.4 |
Realized losses on equity securities | (2.3) | (3.3) |
Realized gains on mortgage loans | 2.2 | 1 |
Realized losses on mortgage loans | 0 | (0.3) |
Net unrealized gains (losses) on equity securities | (8.8) | 3.4 |
Net unrealized gains (losses) on derivative instruments | 0.9 | (1.7) |
Impairment loss | (6.8) | (2.2) |
Net realized and unrealized gains (losses) | $ (15.1) | $ 0.7 |
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 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | |||
Fixed maturity securities, available-for-sale at fair value | $ 4,456.1 | $ 4,028.9 | |
Equity securities | 77.3 | 92.5 | |
Liabilities | |||
Other | 0.8 | 0.8 | |
Total liabilities accounted for at fair value | 6.2 | 4.3 | $ 10.2 |
U.S. Government and government agencies | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 8.4 | 7.7 | |
States, municipalities and political subdivisions | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 441.9 | 440.1 | |
Residential mortgage-backed securities | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 52.9 | 66.9 | |
Commercial mortgage-backed securities | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 97.4 | 109.4 | |
Asset-backed securities | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 403.1 | 577.8 | |
Corporate and other | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 3,452.4 | 2,827 | |
Common Stock | |||
Assets | |||
Equity securities | 4 | 10.5 | |
Perpetual preferred stocks | |||
Assets | |||
Equity securities | 73.3 | 82 | |
Recurring | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 4,456.1 | 4,028.9 | |
Equity securities | 77.3 | 92.5 | |
Total assets accounted for at fair value | 4,533.4 | 4,121.4 | |
Liabilities | |||
Embedded derivative | 5.8 | 3 | |
Other | 0.4 | 1.3 | |
Total liabilities accounted for at fair value | 6.2 | 4.3 | |
Recurring | Level 1 | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 50.1 | 51.3 | |
Equity securities | 8.6 | 12.1 | |
Total assets accounted for at fair value | 58.7 | 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 | 3,766.6 | 3,272.2 | |
Equity securities | 20.8 | 22.8 | |
Total assets accounted for at fair value | 3,787.4 | 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 | 639.4 | 705.4 | |
Equity securities | 47.9 | 57.6 | |
Total assets accounted for at fair value | 687.3 | 763 | |
Liabilities | |||
Embedded derivative | 5.8 | 3 | |
Other | 0.4 | 1.3 | |
Total liabilities accounted for at fair value | 6.2 | 4.3 | |
Recurring | U.S. Government and government agencies | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 8.4 | 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 | 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 | 441.9 | 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 | 441.9 | 440.1 | |
Recurring | States, municipalities and political subdivisions | Level 3 | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 0 | 0 | |
Recurring | Residential mortgage-backed securities | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 52.9 | 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 | 45.6 | 57.7 | |
Recurring | Residential mortgage-backed securities | Level 3 | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 7.3 | 9.2 | |
Recurring | Commercial mortgage-backed securities | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 97.4 | 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 | 64 | 74.8 | |
Recurring | Commercial mortgage-backed securities | Level 3 | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 33.4 | 34.6 | |
Recurring | Asset-backed securities | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 403.1 | 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 | 36.1 | 27.2 | |
Recurring | Asset-backed securities | Level 3 | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 367 | 550.6 | |
Recurring | Corporate and other | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 3,452.4 | 2,827 | |
Recurring | Corporate and other | Level 1 | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 44.7 | 46.5 | |
Recurring | Corporate and other | Level 2 | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 3,176 | 2,669.5 | |
Recurring | Corporate and other | Level 3 | |||
Assets | |||
Fixed maturity securities, available-for-sale at fair value | 231.7 | 111 | |
Recurring | Common Stock | |||
Assets | |||
Equity securities | 4 | 10.5 | |
Recurring | Common Stock | Level 1 | |||
Assets | |||
Equity securities | 3.5 | 7.1 | |
Recurring | Common Stock | Level 2 | |||
Assets | |||
Equity securities | 0 | 0 | |
Recurring | Common Stock | Level 3 | |||
Assets | |||
Equity securities | 0.5 | 3.4 | |
Recurring | Perpetual preferred stocks | |||
Assets | |||
Equity securities | 73.3 | 82 | |
Recurring | Perpetual preferred stocks | Level 1 | |||
Assets | |||
Equity securities | 5.1 | 5 | |
Recurring | Perpetual preferred stocks | Level 2 | |||
Assets | |||
Equity securities | 20.8 | 22.8 | |
Recurring | Perpetual preferred stocks | Level 3 | |||
Assets | |||
Equity securities | $ 47.4 | $ 54.2 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfer to Level 3 | $ 322.3 | $ 309.4 |
Transfer out of level 3 | $ 270.8 | 173.6 |
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% | |
Structured securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfer to Level 3 | $ 51.5 | |
Transfer out of level 3 | $ 135.8 |
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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | $ 763 | $ 701.6 |
Net earnings (loss) | (14.2) | (9.9) |
Other comp. income (loss) | (4.9) | 21.3 |
Purchases and issuances | 161.2 | 223.2 |
Sales and settlements | (269.3) | (309) |
Transfer to Level 3 | 322.3 | 309.4 |
Transfer out of Level 3 | (270.8) | (173.6) |
Balance at end of period | 687.3 | 763 |
Changes in balances of Level 3 financial liabilities | ||
Balance at beginning of period | 4.3 | 10.2 |
Net earnings (loss) | 1.9 | (5.9) |
Other comp. income (loss) | 0 | 0 |
Purchases and issuances | 0 | 0 |
Sales and settlements | 0 | 0 |
Transfer to Level 3 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 |
Balance at end of period | 6.2 | 4.3 |
Total fixed maturity securities | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 705.4 | 640.4 |
Net earnings (loss) | (13.6) | (4.5) |
Other comp. income (loss) | 4.5 | 21.3 |
Purchases and issuances | 161.2 | 220.4 |
Sales and settlements | (267.9) | (305.2) |
Transfer to Level 3 | 320.6 | 306.4 |
Transfer out of Level 3 | (270.8) | (173.4) |
Balance at end of period | 639.4 | 705.4 |
States, municipalities and political subdivisions | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 0 | 0 |
Net earnings (loss) | 0.2 | 0 |
Other comp. income (loss) | 1.1 | 0.1 |
Purchases and issuances | 0 | 0 |
Sales and settlements | (3) | (0.5) |
Transfer to Level 3 | 15.2 | 4.2 |
Transfer out of Level 3 | (13.5) | (3.8) |
Balance at end of period | 0 | 0 |
Residential mortgage-backed securities | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 9.2 | 19 |
Net earnings (loss) | 0.1 | 0 |
Other comp. income (loss) | (1.1) | 0.1 |
Purchases and issuances | 0 | 0 |
Sales and settlements | (2.5) | (1.9) |
Transfer to Level 3 | 6.8 | 1.5 |
Transfer out of Level 3 | (5.2) | (9.5) |
Balance at end of period | 7.3 | 9.2 |
Commercial mortgage-backed securities | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 34.6 | 58.2 |
Net earnings (loss) | (2) | 0.8 |
Other comp. income (loss) | (1.1) | 1.5 |
Purchases and issuances | 0 | 7.5 |
Sales and settlements | (1.9) | (37.6) |
Transfer to Level 3 | 30 | 5.1 |
Transfer out of Level 3 | (26.2) | (0.9) |
Balance at end of period | 33.4 | 34.6 |
Asset-backed securities | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 550.6 | 478.2 |
Net earnings (loss) | (8) | (2.1) |
Other comp. income (loss) | 4.3 | 14.1 |
Purchases and issuances | 60.1 | 184.4 |
Sales and settlements | (251.5) | (236.7) |
Transfer to Level 3 | 191.8 | 189.1 |
Transfer out of Level 3 | (180.3) | (76.4) |
Balance at end of period | 367 | 550.6 |
Corporate and other | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 111 | 85 |
Net earnings (loss) | (3.9) | (3.2) |
Other comp. income (loss) | 1.3 | 5.5 |
Purchases and issuances | 101.1 | 28.5 |
Sales and settlements | (9) | (28.5) |
Transfer to Level 3 | 76.8 | 106.5 |
Transfer out of Level 3 | (45.6) | (82.8) |
Balance at end of period | 231.7 | 111 |
Equity securities | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 57.6 | 61.2 |
Net earnings (loss) | (0.6) | (5.4) |
Other comp. income (loss) | (9.4) | 0 |
Purchases and issuances | 0 | 2.8 |
Sales and settlements | (1.4) | (3.8) |
Transfer to Level 3 | 1.7 | 3 |
Transfer out of Level 3 | 0 | (0.2) |
Balance at end of period | 47.9 | 57.6 |
Common Stock | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 3.4 | 5.9 |
Net earnings (loss) | (2.9) | (1.5) |
Other comp. income (loss) | 0 | 0.1 |
Purchases and issuances | 0 | 0.3 |
Sales and settlements | 0 | (1.2) |
Transfer to Level 3 | 0 | 0 |
Transfer out of Level 3 | 0 | (0.2) |
Balance at end of period | 0.5 | 3.4 |
Perpetual preferred stocks | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 54.2 | 55.3 |
Net earnings (loss) | 2.3 | (3.9) |
Other comp. income (loss) | (9.4) | (0.1) |
Purchases and issuances | 0 | 2.5 |
Sales and settlements | (1.4) | (2.6) |
Transfer to Level 3 | 1.7 | 3 |
Transfer out of Level 3 | 0 | 0 |
Balance at end of period | 47.4 | 54.2 |
Derivatives | ||
Changes in balances of Level 3 financial assets | ||
Balance at beginning of period | 0 | 0 |
Net earnings (loss) | 0 | |
Other comp. income (loss) | 0 | |
Purchases and issuances | 0 | |
Sales and settlements | 0 | |
Transfer to Level 3 | 0 | |
Transfer out of Level 3 | 0 | |
Balance at end of period | 0 | |
Embedded derivatives | ||
Changes in balances of Level 3 financial liabilities | ||
Balance at beginning of period | 3 | 8.4 |
Net earnings (loss) | 2.8 | (5.4) |
Other comp. income (loss) | 0 | 0 |
Purchases and issuances | 0 | 0 |
Sales and settlements | 0 | 0 |
Transfer to Level 3 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 |
Balance at end of period | 5.8 | 3 |
Other | ||
Changes in balances of Level 3 financial liabilities | ||
Balance at beginning of period | 1.3 | 1.8 |
Net earnings (loss) | (0.9) | (0.5) |
Other comp. income (loss) | 0 | 0 |
Purchases and issuances | 0 | 0 |
Sales and settlements | 0 | 0 |
Transfer to Level 3 | 0 | 0 |
Transfer out of Level 3 | 0 | 0 |
Balance at end of period | $ 0.4 | $ 1.3 |
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 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Mortgage loans | $ 57.2 | $ 183.5 |
Policy loans | 17.8 | 19.1 |
Other invested assets | 57.2 | 68.1 |
Nonrecurring | Level 1 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 0 | 0 |
Other invested assets | 0 | 0 |
Total assets accounted for at fair value | 0 | 0 |
Liabilities | ||
Annuity benefits accumulated | 0 | 0 |
Long-term obligations | 0 | 0 |
Total liabilities not accounted for at fair value | 0 | 0 |
Nonrecurring | Level 2 | ||
Assets | ||
Mortgage loans | 0 | 0 |
Policy loans | 17.8 | 19.1 |
Other invested assets | 0 | 0 |
Total assets accounted for at fair value | 17.8 | 19.1 |
Liabilities | ||
Annuity benefits accumulated | 0 | 0 |
Long-term obligations | 578.8 | 718 |
Total liabilities not accounted for at fair value | 578.8 | 718 |
Nonrecurring | Level 3 | ||
Assets | ||
Mortgage loans | 57.2 | 183.5 |
Policy loans | 0 | 0 |
Other invested assets | 11.3 | 0 |
Total assets accounted for at fair value | 68.5 | 183.5 |
Liabilities | ||
Annuity benefits accumulated | 235.2 | 231 |
Long-term obligations | 0 | 0 |
Total liabilities not accounted for at fair value | 235.2 | 231 |
Nonrecurring | Carrying Value | ||
Assets | ||
Mortgage loans | 57.2 | 183.5 |
Policy loans | 17.8 | 19.1 |
Other invested assets | 11.3 | 0 |
Total assets accounted for at fair value | 86.3 | 202.6 |
Liabilities | ||
Annuity benefits accumulated | 237.8 | 233.9 |
Long-term obligations | 560.4 | 722.2 |
Total liabilities not accounted for at fair value | 798.2 | 956.1 |
Nonrecurring | Estimated Fair Value | ||
Assets | ||
Mortgage loans | 57.2 | 183.5 |
Policy loans | 17.8 | 19.1 |
Other invested assets | 11.3 | 0 |
Total assets accounted for at fair value | 86.3 | 202.6 |
Liabilities | ||
Annuity benefits accumulated | 235.2 | 231 |
Long-term obligations | 578.8 | 718 |
Total liabilities not accounted for at fair value | $ 814 | $ 949 |
Accounts Receivable, net (Detai
Accounts Receivable, net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Contracts in progress | $ 118.6 | $ 149 |
Unbilled retentions | 50.3 | 51.7 |
Trade receivables | 7.5 | 8.3 |
Other receivables | 8.9 | 21 |
Allowance for doubtful accounts | (0.6) | (1.1) |
Total | $ 184.7 | $ 228.9 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials and consumables | $ 8.7 | $ 9.6 |
Work in process | 0 | 0.8 |
Finished goods | 1.2 | 0.3 |
Total | $ 9.9 | $ 10.7 |
Recoverable from Reinsurers (De
Recoverable from Reinsurers (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Ceded Credit Risk [Line Items] | ||
Amount | $ 957.5 | $ 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 | $ 366.6 | $ 347.6 |
Munich American Reassurance Company | A+ | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 38.30% | 36.40% |
Hannover Life Reassurance Company of America | A+ | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 306.3 | $ 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 | 32.00% | 33.90% |
Loyal American Life Insurance Company | A | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 150.7 | $ 147.5 |
Loyal American Life Insurance Company | A | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 15.70% | 15.50% |
Great American Life Insurance Company | A+ | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 57.4 | $ 56.2 |
Great American Life Insurance Company | A+ | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 6.00% | 5.90% |
ManhattanLife Assurance Company of America | B+ | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 46.4 | $ 47 |
ManhattanLife Assurance Company of America | B+ | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 4.80% | 4.90% |
Other | ||
Ceded Credit Risk [Line Items] | ||
Amount | $ 30.1 | $ 32.1 |
Other | Percentage of Total, Reinsurance recoverable | Reinsurer Concentration Risk | ||
Ceded Credit Risk [Line Items] | ||
Percentage of total | 3.20% | 3.40% |
Property, Plant, and Equipmen_3
Property, Plant, and Equipment, net - Summary of Property, Plant, and Equipment, net (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 189.2 | $ 190.1 |
Less: Accumulated depreciation | 75.3 | 60.6 |
Property, plant and equipment, net | 113.9 | 129.5 |
Equipment, furniture and fixtures, and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 116.3 | 117.8 |
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 | 24.1 | 24.4 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3.1 | 2.9 |
Plant and transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4.4 | $ 4.9 |
Property, Plant, and Equipmen_4
Property, Plant, and Equipment, net - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation expense | $ 21.1 | $ 21.6 |
Depreciation expense with cost of revenue | 9.1 | 9.1 |
Finance lease (Property, plant and equipment, net) | 0.9 | 2.1 |
Property, Plant and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Finance lease (Property, plant and equipment, net) | $ 0.9 | $ 2.1 |
Goodwill and Intangibles, net -
Goodwill and Intangibles, net - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge | $ 47.3 | ||
Net loss | $ (102.1) | (36.1) | |
Indefinite-lived intangible assets, period decrease | $ 7 | ||
Amortization expense | 6 | 9.9 | |
Negative amortization | (21) | (14.8) | |
Insurance Contracts Acquired in Business Combination | |||
Finite-Lived Intangible Assets [Line Items] | |||
Negative amortization | (21.3) | (23.5) | |
FCC licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, period decrease | 23.2 | ||
Dispositions | 20.5 | ||
Impairment of indefinite-lived assets | $ 3 | ||
Insurance | |||
Finite-Lived Intangible Assets [Line Items] | |||
Impairment charge | 47.3 | ||
Net loss | 51.4 | ||
Book value, net of goodwill impairment | $ 456.3 |
Goodwill and Intangibles, net_2
Goodwill and Intangibles, net - Changes in the Carrying Amount of Goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 110.4 | $ 150.9 |
Measurement Period Adjustment | 7.1 | |
Impairments | (47.3) | |
Translation | 0.6 | (0.3) |
Ending balance | 111 | 110.4 |
Infrastructure | ||
Goodwill [Roll Forward] | ||
Beginning balance | 89 | 82.2 |
Measurement Period Adjustment | 7.1 | |
Impairments | 0 | |
Translation | 0.6 | (0.3) |
Ending balance | 89.6 | 89 |
Spectrum | ||
Goodwill [Roll Forward] | ||
Beginning balance | 21.4 | 21.4 |
Measurement Period Adjustment | 0 | |
Impairments | 0 | |
Translation | 0 | 0 |
Ending balance | 21.4 | 21.4 |
Insurance | ||
Goodwill [Roll Forward] | ||
Beginning balance | 0 | 47.3 |
Measurement Period Adjustment | 0 | |
Impairments | (47.3) | |
Translation | 0 | 0 |
Ending balance | $ 0 | $ 0 |
Goodwill and Intangibles, net_3
Goodwill and Intangibles, net - Indefinite-lived Intangible Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 115.5 | $ 138.7 |
FCC licenses | ||
Acquired Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 113 | 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 80.1 | $ 86.7 |
Accumulated Amortization | (21) | (14.8) |
Net | $ 59.1 | 71.9 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Original Useful Life | 14 years | |
Gross Carrying Amount | $ 18 | 17.9 |
Accumulated Amortization | (4.6) | (3.2) |
Net | $ 13.4 | 14.7 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Original Useful Life | 9 years | |
Gross Carrying Amount | $ 36.4 | 36.2 |
Accumulated Amortization | (12.1) | (8.8) |
Net | $ 24.3 | 27.4 |
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 | (1.6) | (0.9) |
Net | $ 18.6 | 26.3 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted-Average Original Useful Life | 7 years | |
Gross Carrying Amount | $ 5.5 | 5.4 |
Accumulated Amortization | (2.7) | (1.9) |
Net | $ 2.8 | $ 3.5 |
Goodwill and Intangibles, net_5
Goodwill and Intangibles, net - Estimated Amortization Expense (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||
2021 | $ 5.9 | |
2022 | 5.7 | |
2023 | 5.6 | |
2024 | 5.5 | |
2025 | 4.9 | |
Thereafter | 31.5 | |
Net | 59.1 | $ 71.9 |
Insurance Contracts Acquired in Business Combination | ||
Business Acquisition [Line Items] | ||
2021 | (19.6) | |
2022 | (18.3) | |
2023 | (17.1) | |
2024 | (15.8) | |
2025 | (14.7) | |
Thereafter | (114.3) | |
Net | $ (199.8) |
Life, Accident and Health Res_3
Life, Accident and Health Reserves - By Product Line (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Total life, accident and health reserves | $ 4,627.5 | $ 4,567.1 |
Long-term care insurance reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Total life, accident and health reserves | 4,269 | 4,201.6 |
Traditional life insurance reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Total life, accident and health reserves | 166 | 173.4 |
Other accident and health insurance reserves | ||
Liability for Claims and Claims Adjustment Expense [Line Items] | ||
Total life, accident and health reserves | $ 192.5 | $ 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | $ 4,567.1 | |
Paid related to insured events of: | ||
Ending balance | 4,627.5 | $ 4,567.1 |
Other Long Duration Insurance Product Line | ||
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward] | ||
Beginning balance | 761.3 | 738.7 |
Less: recoverable from reinsurers | (131) | (136.4) |
Beginning balance, net | 630.3 | 602.3 |
Incurred related to insured events of: | ||
Current year | 217.5 | 211.8 |
Prior years | (49.8) | (47.2) |
Total incurred | 167.7 | 164.6 |
Paid related to insured events of: | ||
Current year | (18.2) | (17.5) |
Prior years | (152.1) | (141) |
Total paid | (170.3) | (158.5) |
Interest on liability for policy and contract claims | 22.5 | 21.9 |
Ending balance, net | 650.2 | 630.3 |
Add: recoverable from reinsurers | 132.2 | 131 |
Ending balance | $ 782.4 | $ 761.3 |
Accounts Payable and Other Cu_3
Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Accounts payable | $ 69.7 | $ 68.6 |
Accrued expenses and other current liabilities | 52.7 | 70.1 |
Accrued payroll and employee benefits | 38.2 | 38.7 |
Accrued interest | 13.9 | 11.3 |
Accrued income taxes | 1.8 | 1.9 |
Total accounts payable and other current liabilities | $ 176.3 | $ 190.6 |
Debt Obligations - Schedule of
Debt Obligations - Schedule of Debt (Details) - USD ($) | Feb. 01, 2021 | Dec. 31, 2020 | Feb. 23, 2021 | Oct. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Feb. 28, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Apr. 30, 2019 | Jan. 31, 2019 |
Debt Instrument [Line Items] | |||||||||||
Obligations under finance leases | $ 800,000 | $ 1,600,000 | |||||||||
Total aggregate finance lease and debt payments | 576,600,000 | 754,100,000 | |||||||||
Issuance discount, net and deferred financing costs | (15,100,000) | (30,200,000) | |||||||||
Debt obligations | $ 561,500,000 | 723,900,000 | |||||||||
11.50% Senior Secured Notes, due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | $ 2,100,000 | $ 50,600,000 | $ 76,900,000 | ||||||||
Interest rate | 11.50% | ||||||||||
11.50% Senior Secured Notes, due 2021 | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 11.50% | ||||||||||
7.50% Convertible Senior Notes, due 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 7.50% | ||||||||||
7.50% Convertible Senior Notes, due 2022 | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | $ 51,800,000 | ||||||||||
Interest rate | 7.50% | ||||||||||
8.500% Senior Notes Due 2026 | Subsequent Event | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Interest rate | 8.50% | ||||||||||
Debt instrument, amount redeemed | $ 330,000,000 | ||||||||||
Redemption price, percentage | 100.00% | ||||||||||
Revolving Credit Agreement | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 15,000,000 | $ 15,000,000 | |||||||||
Revolving Credit Agreement | Line of Credit | Subsequent Event | Revolving Credit Facility | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Face amount | $ 20,000,000 | ||||||||||
Infrastructure | LIBOR | LIBOR plus 5.85% Note, due 2023 | Real Estate Term Advance | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | $ 71,600,000 | 77,000,000 | |||||||||
Infrastructure | LIBOR | LIBOR plus 1.5% Line of Credit | Real Estate Term Advance | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | 38,700,000 | 48,900,000 | |||||||||
Infrastructure | LIBOR | Obligations under finance leases | Real Estate Term Advance | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | 200,000 | 200,000 | |||||||||
Spectrum | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Obligations under finance leases | 600,000 | 1,400,000 | |||||||||
Spectrum | 8.50% Note due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | $ 19,300,000 | 36,200,000 | $ 42,500,000 | ||||||||
Interest rate | 8.50% | ||||||||||
Face amount | $ 39,300,000 | $ 21,500,000 | $ 700,000 | $ 7,500,000 | |||||||
Spectrum | 10.50% Note due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | $ 32,900,000 | 42,500,000 | |||||||||
Spectrum | Other, various maturity dates | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | 2,900,000 | 7,900,000 | |||||||||
Non-Operating Corporate | 11.50% Senior Secured Notes, due 2021 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | $ 340,400,000 | 470,000,000 | |||||||||
Interest rate | 11.50% | ||||||||||
Non-Operating Corporate | 7.50% Convertible Senior Notes, due 2022 | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Outstanding debt | $ 55,000,000 | 55,000,000 | |||||||||
Interest rate | 7.50% | ||||||||||
Non-Operating Corporate | LIBOR plus 6.75% Line of Credit | |||||||||||
Debt Instrument [Line Items] | |||||||||||
Basis spread on variable rate | 6.75% | ||||||||||
Outstanding debt | $ 15,000,000 | $ 15,000,000 |
Debt Obligations - Schedule o_2
Debt Obligations - Schedule of Aggregate Debt Maturities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Finance Leases | ||
2021 | $ 0.7 | |
2022 | 0.1 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total future lease payments | 0.8 | |
Less: Amount representing interest | 0 | |
Total lease liability balance | 0.8 | $ 1.6 |
Debt | ||
2021 | 504.2 | |
2022 | 69.6 | |
2023 | 71.8 | |
2024 | 7.8 | |
2025 | 0 | |
Thereafter | 0 | |
Total minimum principal and interest payments | 653.4 | |
Less: Amount representing interest | (77.6) | |
Total aggregate finance lease and debt payments | 575.8 | |
Total | ||
2021 | 504.9 | |
2022 | 69.7 | |
2023 | 71.8 | |
2024 | 7.8 | |
2025 | 0 | |
Thereafter | 0 | |
Total minimum principal and interest payments | 654.2 | |
Less: Amount representing interest | (77.6) | |
Total aggregate finance lease and debt payments | $ 576.6 | $ 754.1 |
Debt Obligations - Narrative (D
Debt Obligations - Narrative (Details) | Aug. 31, 2020USD ($) | Jun. 01, 2020 | Nov. 20, 2018USD ($)$ / shares | Aug. 07, 2018USD ($) | Dec. 31, 2020USD ($)$ / shares | Nov. 30, 2020USD ($) | Oct. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Jun. 30, 2020USD ($) | May 31, 2020USD ($) | Apr. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Nov. 30, 2018USD ($) | Jul. 31, 2018USD ($) | Apr. 30, 2018USD ($) | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($) | Feb. 28, 2020USD ($) | Oct. 24, 2019USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | May 31, 2019USD ($) | Apr. 30, 2019USD ($) | Jan. 31, 2019USD ($) | Dec. 31, 2015$ / sharesshares |
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Intrinsic value of exercisable options | $ 100,000 | $ 100,000 | ||||||||||||||||||||||
Number of warrants outstanding (in shares) | shares | 50,000 | 2,000,000 | ||||||||||||||||||||||
Exercise price of warrants (in usd per share) | $ / shares | $ 176.4 | $ 7.08 | ||||||||||||||||||||||
Value of warrants issued | $ 8,800,000 | |||||||||||||||||||||||
Term of warrants outstanding | 5 years | 5 years | ||||||||||||||||||||||
Proceeds from debt obligations | (4,100,000) | $ 88,900,000 | ||||||||||||||||||||||
Repayments of long-term debt | 181,800,000 | 29,500,000 | ||||||||||||||||||||||
Loss on extinguishment of debt | 9,400,000 | 0 | ||||||||||||||||||||||
Less: Preferred dividends, deemed dividends, and repurchase gains | 3,600,000 | 0 | ||||||||||||||||||||||
Interest cost relating to amortization of discount | $ 7,800,000 | 8,500,000 | ||||||||||||||||||||||
Redemption threshold percentage | 130.00% | |||||||||||||||||||||||
Trading days effective for redemption | 20 days | |||||||||||||||||||||||
Consecutive trading days effective for redemption | 30 days | |||||||||||||||||||||||
Days prior to redemption notice | 5 days | |||||||||||||||||||||||
Non Voting Stock | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Ownership percentage | 100.00% | 100.00% | ||||||||||||||||||||||
Voting Stock | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Ownership percentage | 65.00% | 65.00% | ||||||||||||||||||||||
Convertible Debt | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate | 100.00% | 100.00% | 100.00% | |||||||||||||||||||||
Debt discount | $ 6,000,000 | $ 6,000,000 | ||||||||||||||||||||||
Convertible notes, conversion ratio | 0.2342971 | 0.2283105 | ||||||||||||||||||||||
Conversion price (in usd per share) | $ / shares | $ 4.27 | $ 4.38 | $ 4.38 | |||||||||||||||||||||
Embedded conversion feature, fair value | $ 12,500,000 | $ 5,800,000 | ||||||||||||||||||||||
Less: Preferred dividends, deemed dividends, and repurchase gains | 3,800,000 | |||||||||||||||||||||||
Long-term debt, gross | $ 48,100,000 | $ 48,100,000 | ||||||||||||||||||||||
Share price (in usd per share) | $ / shares | $ 3.26 | $ 3.26 | ||||||||||||||||||||||
Interest cost relating to contractual interest coupon | $ 4,100,000 | 4,100,000 | ||||||||||||||||||||||
Interest cost relating to amortization of discount | 3,400,000 | 2,900,000 | ||||||||||||||||||||||
Debt instrument convertible principal amounts | 1,000 | |||||||||||||||||||||||
DBM Global Credit Facilities | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Intrinsic value of exercisable options | $ 0 | $ 0 | ||||||||||||||||||||||
HC2 Station And HC2LPTV | Secured Debt | Spectrum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Face amount | $ 35,000,000 | |||||||||||||||||||||||
Debt instrument, term | 364 days | |||||||||||||||||||||||
HC2 Broadcasting Holdings, Inc | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate | 11.00% | 11.00% | ||||||||||||||||||||||
LIBOR plus 1.5% Line of Credit | LIBOR | Real Estate Term Advance | Infrastructure | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Outstanding debt | $ 38,700,000 | $ 38,700,000 | 48,900,000 | |||||||||||||||||||||
Term Loan | DBM Global Credit Facilities | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term line of credit | 17,000,000 | 17,000,000 | ||||||||||||||||||||||
LIBOR plus 5.85% Note, due 2023 | LIBOR | Real Estate Term Advance | Infrastructure | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Outstanding debt | $ 71,600,000 | $ 71,600,000 | 77,000,000 | |||||||||||||||||||||
LIBOR plus 5.85% Note, due 2023 | DBM Global Credit Facilities | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Face amount | $ 80,000,000 | |||||||||||||||||||||||
Debt instrument, term | 60 days | |||||||||||||||||||||||
LIBOR plus 5.85% Note, due 2023 | DBM Global Credit Facilities | LIBOR | Infrastructure | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 5.85% | |||||||||||||||||||||||
8.50% Note due 2021 | Spectrum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Face amount | $ 39,300,000 | $ 21,500,000 | $ 700,000 | $ 7,500,000 | ||||||||||||||||||||
Interest rate | 8.50% | 8.50% | ||||||||||||||||||||||
Outstanding debt | $ 19,300,000 | $ 19,300,000 | 36,200,000 | 42,500,000 | ||||||||||||||||||||
Short-term loan | $ 36,200,000 | |||||||||||||||||||||||
Proceeds from debt obligations | $ 4,000,000 | $ 43,300,000 | ||||||||||||||||||||||
Repayments of long-term debt | $ 21,000,000 | $ 2,900,000 | ||||||||||||||||||||||
Senior Notes Due October 2019, 8.5% | Spectrum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Line of credit, maximum amount | 50,000,000 | |||||||||||||||||||||||
Accordion, additional borrowing capacity | $ 15,000,000 | |||||||||||||||||||||||
Senior Notes Due October 2020, 8.5% | Spectrum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Debt instrument, term | 364 days | |||||||||||||||||||||||
Short-term loan | 78,700,000 | |||||||||||||||||||||||
10.50% Note due 2021 | Spectrum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate | 10.50% | 10.50% | ||||||||||||||||||||||
Short-term loan | $ 42,500,000 | |||||||||||||||||||||||
Repayments of long-term debt | $ 9,600,000 | |||||||||||||||||||||||
Other, various maturity dates | Spectrum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Outstanding debt | $ 2,900,000 | $ 2,900,000 | 7,900,000 | |||||||||||||||||||||
Repayments of long-term debt | $ 3,000,000 | |||||||||||||||||||||||
11.50% Senior Secured Notes, due 2021 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate | 11.50% | 11.50% | ||||||||||||||||||||||
Outstanding debt | $ 2,100,000 | $ 50,600,000 | $ 76,900,000 | |||||||||||||||||||||
Loss on extinguishment of debt | $ 100,000 | $ 3,400,000 | $ 5,400,000 | |||||||||||||||||||||
Convertible notes, conversion ratio | 1.045 | 1.045 | 1.045 | |||||||||||||||||||||
11.50% Senior Secured Notes, due 2021 | Non-Operating Corporate | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate | 11.50% | 11.50% | ||||||||||||||||||||||
Outstanding debt | $ 340,400,000 | $ 340,400,000 | 470,000,000 | |||||||||||||||||||||
Repayments of long-term debt | 470,000,000 | |||||||||||||||||||||||
7.50% Convertible Senior Notes, due 2022 | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate | 7.50% | 7.50% | ||||||||||||||||||||||
7.50% Convertible Senior Notes, due 2022 | Non-Operating Corporate | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate | 7.50% | 7.50% | ||||||||||||||||||||||
Outstanding debt | $ 55,000,000 | $ 55,000,000 | 55,000,000 | |||||||||||||||||||||
Repayments of long-term debt | $ 55,000,000 | |||||||||||||||||||||||
Senior Notes Due 2022 | HC2 Broadcasting Holdings, Inc | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate, effective percentage | 17.54% | |||||||||||||||||||||||
Debt discount | $ 12,500,000 | |||||||||||||||||||||||
Debt issuance costs | $ 1,900,000 | |||||||||||||||||||||||
The Bridge Loan | HC2 Broadcasting Holdings, Inc | Bridge Loan | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Loss on extinguishment of debt | $ 2,600,000 | |||||||||||||||||||||||
Secured Indenture | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Interest rate | 98.75% | 98.75% | 98.75% | |||||||||||||||||||||
Debt discount | $ 5,900,000 | |||||||||||||||||||||||
Redemption price, percentage | 100.00% | |||||||||||||||||||||||
Revolving Credit Agreement | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Long-term line of credit | $ 10,000,000 | 5,000,000 | ||||||||||||||||||||||
Face amount | $ 15,000,000 | 15,000,000 | ||||||||||||||||||||||
Loss on extinguishment of debt | $ 400,000 | |||||||||||||||||||||||
Proceeds from lines of credit | $ 5,000,000 | $ 10,000,000 | ||||||||||||||||||||||
LIBOR plus 6.75% Line of Credit | Non-Operating Corporate | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 6.75% | |||||||||||||||||||||||
Outstanding debt | $ 15,000,000 | $ 15,000,000 | $ 15,000,000 | |||||||||||||||||||||
Revolving Credit Facility | DBM Global Credit Facilities | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Line of credit, maximum amount | 9,800,000 | $ 80,000,000 | 9,800,000 | |||||||||||||||||||||
Long-term line of credit | 21,700,000 | 21,700,000 | ||||||||||||||||||||||
Increase to current borrowing capacity | $ 10,000,000 | |||||||||||||||||||||||
Revolving Credit Facility | DBM Global Credit Facilities | LIBOR | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 2.50% | |||||||||||||||||||||||
Revolving Credit Facility | Wells Fargo Facility | DBM Global Credit Facilities | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Line of credit, maximum amount | 50,000,000 | $ 50,000,000 | ||||||||||||||||||||||
Revolving Credit Facility | Wells Fargo Facility | DBM Global Credit Facilities | LIBOR | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 2.00% | |||||||||||||||||||||||
Revolving Credit Facility | Note Payable Collateralized By Equipment | DBM Global Credit Facilities | Real Estate Term Advance | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Line of credit, maximum amount | 10,000,000 | $ 10,000,000 | ||||||||||||||||||||||
Revolving Credit Facility | Note Payable Collateralized By Equipment | DBM Global Credit Facilities | LIBOR | Real Estate Term Advance | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 2.50% | |||||||||||||||||||||||
Revolving Credit Facility | Note Payable Collateralized By Real Estate | DBM Global Credit Facilities | Real Estate Term Advance | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Proceeds from notes payable | $ 15,000,000 | |||||||||||||||||||||||
Revolving Credit Facility | Senior Notes Due 2025 | DBM Global Credit Facilities | Real Estate Term Advance | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Line of credit, maximum amount | $ 70,000,000 | $ 70,000,000 | ||||||||||||||||||||||
Long-term line of credit | $ 17,000,000 | $ 22,000,000 | $ 17,000,000 | |||||||||||||||||||||
Revolving Credit Facility | LIBOR plus 1.5% Line of Credit | DBM Global Credit Facilities | LIBOR | Real Estate Term Advance | Infrastructure | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||||||||||||||
Revolving Credit Facility | Senior Notes Due 2024 | DBM Global Credit Facilities | LIBOR | Real Estate Term Advance | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 2.25% | |||||||||||||||||||||||
Letter of Credit | Wells Fargo Facility | DBM Global Credit Facilities | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Line of credit, maximum amount | $ 14,500,000 | $ 14,500,000 | ||||||||||||||||||||||
Minimum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Capital leases rate | 2.00% | |||||||||||||||||||||||
Minimum | Revolving Credit Facility | Wells Fargo Facility | LIBOR | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 0.00% | |||||||||||||||||||||||
Minimum | Revolving Credit Facility | TCW Loan | LIBOR | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 1.50% | |||||||||||||||||||||||
Maximum | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Capital leases rate | 11.50% | |||||||||||||||||||||||
Maximum | Revolving Credit Facility | Wells Fargo Facility | LIBOR | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 0.75% | |||||||||||||||||||||||
Maximum | Revolving Credit Facility | TCW Loan | LIBOR | ||||||||||||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||||||||||||
Basis spread on variable rate | 1.75% |
Leases - Right-of-use Assets an
Leases - Right-of-use Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Right-of-use assets: | ||
Operating lease (Other assets) | $ 44.3 | $ 47.4 |
Finance lease (Property, plant and equipment, net) | 0.9 | 2.1 |
Total right-of-use assets | 45.2 | 49.5 |
Lease liabilities: | ||
Operating lease (Other liabilities) | 47.5 | 51 |
Finance lease (Debt obligations) | 0.8 | 1.6 |
Total lease liabilities | $ 48.3 | $ 52.6 |
Operating lease (Other assets) | us-gaap:OtherAssets | |
Finance lease (Property, plant and equipment, net) | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | |
Operating lease (Other liabilities) | us-gaap:OtherLiabilities | |
Finance lease (Debt obligations) | us-gaap:DebtAndCapitalLeaseObligations |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finance lease cost: | ||
Amortization of right-of-use assets | $ 1.3 | $ 1.2 |
Interest on lease liabilities | 0.1 | 0.2 |
Net finance lease cost | 1.4 | 1.4 |
Operating lease cost | 17.1 | 13.8 |
Variable lease cost | 0.3 | 0.3 |
Sublease income | 0 | (0.1) |
Total lease cost | $ 18.8 | $ 15.4 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from finance leases | $ 0.1 | $ 0.2 |
Financing cash flows from finance leases | 0.9 | 1.4 |
Operating cash flows from operating leases | 17 | 13.9 |
Right-of-use assets obtained in exchange for new lease liabilities | ||
Finance leases | 0.1 | 2.1 |
Operating leases | $ 15.8 | $ 60.3 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Term and Discount Rate (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) - operating lease | 4 years 3 months 18 days | 5 years |
Weighted-average remaining lease term (years) - finance lease | 10 months 24 days | 1 year 9 months 18 days |
Weighted-average discount rate - operating lease | 6.00% | 6.20% |
Weighted-average discount rate - finance lease | 8.90% | 9.40% |
Leases - Future Payments of Lea
Leases - Future Payments of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Operating Leases | ||
2021 | $ 15.1 | |
2022 | 12.8 | |
2023 | 10.7 | |
2024 | 8 | |
2025 | 4 | |
Thereafter | 4.2 | |
Total future lease payments | 54.8 | |
Less: Present values | (7.3) | |
Total lease liability balance | 47.5 | $ 51 |
Finance Leases | ||
2021 | 0.7 | |
2022 | 0.1 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total future lease payments | 0.8 | |
Less: Present values | 0 | |
Total lease liability balance | 0.8 | $ 1.6 |
Other | ||
Operating Leases | ||
Total lease liability balance | 47.5 | |
Debt | ||
Finance Leases | ||
Total lease liability balance | $ 0.8 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | Dec. 31, 2020USD ($) |
Short-Term Lease Payments | |
Lessee, Lease, Description [Line Items] | |
Operating lease payments due in 2021 from short-term leases | $ 0.9 |
Income Taxes - Provisions (Bene
Income Taxes - Provisions (Benefits) for Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current: Federal | $ (9.2) | $ 3.8 |
State | 1.7 | 2.4 |
Foreign | 9.5 | 1.4 |
Subtotal Current | 2 | 7.6 |
Deferred: Federal | 5 | (27) |
State | 0.1 | (0.1) |
Foreign | 3.4 | (0.1) |
Subtotal Deferred | 8.5 | (27.2) |
Income tax (benefit) expense | $ 10.5 | $ (19.6) |
Income Taxes - Components of In
Income Taxes - Components of Income from Continuing Operations Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
US | $ (106.1) | $ (49.7) |
Foreign | 78.3 | 7.9 |
Loss from continuing operations before income taxes | $ (27.8) | $ (41.8) |
Income Taxes - Federal Statutor
Income Taxes - Federal Statutory Income Tax Rate to Income (Loss) Before Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Tax provision (benefit) at federal statutory rate | $ (5.8) | $ (8.8) |
Permanent differences | (0.3) | 0.2 |
State tax, net of federal benefit | (6.8) | (7.3) |
Foreign rate differential | 0.2 | 0.5 |
Minority interest | 0 | 0.2 |
Executive and stock compensation | 1.2 | 2.5 |
Increase (decrease) in valuation allowance | 24.1 | (9.5) |
Transaction costs | 0.5 | 0 |
Return to provision | 4.3 | (6) |
ASU 2017-11 adoption | 0 | (1.3) |
Goodwill impairment | 0 | 10 |
Transition to the Coronavirus Aid, Relief, and Economic Security Act | (10.9) | 0 |
Withholding Tax Expense | 7.3 | 0 |
Gain/loss on sale or deconsolidation of a subsidiary | (6.4) | 0 |
Outside Basis Difference | (0.9) | 0 |
Contingent Liability | 2.2 | 0 |
AOCI Recycling | 2.1 | 0 |
Other | (1.8) | (1.8) |
Warrant Liability | 1.5 | 1.7 |
Income tax (benefit) expense | $ 10.5 | $ (19.6) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Nov. 04, 2015 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 30, 2018 | Dec. 31, 2014 | May 29, 2014 |
Operating Loss Carryforwards [Line Items] | |||||||
Income tax expense (benefit) | $ 10.5 | $ (19.6) | |||||
Release of valuation allowances | (24.1) | 9.5 | |||||
Deferred tax asset held for sale | 8.6 | 51.3 | |||||
Deferred tax asset held for sale valuation allowance | 0.4 | 41 | |||||
Deferred tax liabilities held for sale | 9.3 | 12.5 | |||||
Operating loss carryforwards | $ 31.7 | $ 46.1 | |||||
Operating loss carryforwards, US | 96 | ||||||
Foreign operating loss carryforward | 0 | $ 38.3 | |||||
Net operating loss, not subject to expiration | 52.6 | ||||||
Net operating losses subject to expiration | 117.7 | ||||||
Operating loss carryforward limitation | $ 2.3 | ||||||
Reduced deferred tax asset carryforward | $ 69.6 | ||||||
Common stock | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Issuance and sale of common stock (in shares) | 8,452,500 | 2,300,000 | 1,400,000 | ||||
Domestic Tax Authority | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Operating loss carryforwards | $ 170.3 | ||||||
Domestic Tax Authority | GrayWolf Industrial | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Amount subject to annual limitation | $ 25.4 | ||||||
Domestic Tax Authority | GrayWolf Industrial | Tax Year 2019 | Minimum | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Amount subject to annual limitation | $ 3 | ||||||
Domestic Tax Authority | GrayWolf Industrial | Tax Year 2019 | Maximum | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Amount subject to annual limitation | 4 | ||||||
Domestic Tax Authority | GrayWolf Industrial | Tax Year 2024 | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Amount subject to annual limitation | 1.1 | ||||||
Foreign Tax Authority | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Operating loss carryforwards | 3.6 | ||||||
Foreign operating loss carryforward | 112.6 | ||||||
Operating loss carryforwards related to discontinued operations and classified as held for sale | 2.3 | ||||||
Foreign Tax Authority | DTV America | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Foreign operating loss carryforward | 11.4 | ||||||
Foreign Tax Authority | R2 Technologies | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Foreign operating loss carryforward | 49.6 | ||||||
Foreign Tax Authority | DTV America | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Foreign operating loss carryforward | 29.5 | ||||||
Foreign Tax Authority | Other Entities | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Foreign operating loss carryforward | 4.2 | ||||||
Insurance | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Release of valuation allowances | $ 37.4 | ||||||
Insurance | GrayWolf Industrial | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Amount subject to annual limitation | $ 57.1 | ||||||
Energy | Foreign Tax Authority | |||||||
Operating Loss Carryforwards [Line Items] | |||||||
Foreign operating loss carryforward | $ 29.3 |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred Tax Assets, Net | ||
Net operating loss carryforwards | $ 72.9 | $ 89.2 |
Basis difference in fixed assets | 0.8 | 3.2 |
Deferred compensation | 7.3 | 12.7 |
Lease liability | 13 | 17.4 |
UK trading loss carryforward | 0 | 38.3 |
Sec. 163(j) carryforward | 58.6 | 39.6 |
Insurance claims and reserves | 176.4 | 166.1 |
Value of insurance business acquired ("VOBA") | 43.7 | 48.5 |
Deferred acquisition costs | 19 | 16.7 |
Other deferred tax assets | 21.2 | 14.3 |
Total deferred tax assets | 412.9 | 446 |
Valuation allowance | (110.6) | (121.8) |
Total net deferred tax assets | 302.3 | 324.2 |
Deferred Tax Liabilities, Gross | ||
Basis difference in intangibles | (22.7) | (19.1) |
Basis difference in fixed assets | (22.3) | (24.8) |
Insurance company investments | (373.1) | (335) |
Right of use assets | (12.1) | (16.2) |
Other deferred tax liabilities | (11.1) | (10.1) |
Total deferred tax liabilities | (441.3) | (405.2) |
Net deferred tax liabilities | $ (139) | $ (81) |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Uncertain tax benefits - January 1 | $ 0 | $ 0 |
Gross increases - Tax positions in prior period | 0 | 0 |
Gross decreases - Tax positions in prior period | 0 | 0 |
Gross increases - Tax positions in current period | 22.9 | 0 |
Settlement | 0 | 0 |
Lapse in statute of limitations | 0 | 0 |
Uncertain tax benefits - December 31 | $ 22.9 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Purchase Obligations and Non-Cancellable Operating Leases (Details) $ in Millions | Dec. 31, 2020USD ($) |
Purchase Obligations | |
2021 | $ 78.1 |
2022 | 0.2 |
2023 | 0.2 |
2024 | 0.2 |
2025 | 0 |
Thereafter | 0 |
Total obligations | $ 78.7 |
Share-based Compensation - Narr
Share-based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted (in shares) | 143,096 | 0 |
Weighted average fair value at date of grant for options granted (in usd per share) | $ 1.47 | |
Share-based compensation expense | $ 3,000,000 | $ 6,200,000 |
Intrinsic value of options outstanding | $ 100,000 | |
Average remaining life of option outstanding | 3 years 7 months 6 days | |
Intrinsic value of exercisable options | $ 100,000 | |
Average remaining life of exercisable options | 3 years 7 months 6 days | |
Unvested shares expected to vest (in shares) | 42,205 | |
Weighted average remaining life | 3 years 9 months 18 days | |
Weighted average exercise price (in usd per share) | $ 5.27 | |
Intrinsic value | $ 0 | |
Omnibus Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock shares authorized to issue (in shares) | 3,500,000 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 1,100,000 | |
Unrecognized compensation expense, period for recognition | 10 months 24 days | |
Stock Option | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation expense | $ 100,000 | |
Unrecognized compensation expense, period for recognition | 4 months 17 days |
Share-based Compensation - Fair
Share-based Compensation - Fair Value of Each Option Grant Estimated (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Expected option life (in years) | 4 years 3 months 18 days |
Risk-free interest rate | 0.24% |
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 - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | ||
Unvested at beginning of period (in shares) | 2,213,775 | 3,031,469 |
Granted (in shares) | 1,152,202 | 542,450 |
Vested (in shares) | (2,258,905) | (1,349,531) |
Forfeited (in shares) | (478,639) | (10,613) |
Unvested at end of period (in shares) | 628,433 | 2,213,775 |
Weighted Average Grant Date Fair Value | ||
Unvested at beginning of period (in usd per share) | $ 5.12 | $ 5.93 |
Granted (in usd per share) | 2.74 | 2.57 |
Vested (in usd per share) | 4.08 | 5.92 |
Forfeited (in usd per share) | 5.87 | 2.91 |
Unvested at end of period (in usd per share) | $ 3.93 | $ 5.12 |
Share-based Compensation - Su_2
Share-based Compensation - Summary of Company's Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | ||
Outstanding at beginning of period (in shares) | 7,067,592 | 7,160,861 |
Granted (in shares) | 143,096 | 0 |
Exercised (in shares) | 0 | 0 |
Forfeited (in shares) | (142,503) | 0 |
Expired (in shares) | (2,328,327) | (93,269) |
Outstanding at end of period (in shares) | 4,739,858 | 7,067,592 |
Shares, Eligible for exercise (in shares) | 4,697,653 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in usd per share) | $ 6.52 | $ 6.51 |
Granted (in usd per share) | 2.62 | 0 |
Exercised (in usd per share) | 0 | 0 |
Forfeited (in usd per share) | 5.45 | 0 |
Expired (in usd per share) | 9.18 | 5.47 |
Outstanding at end of period (in usd per share) | 5.13 | $ 6.52 |
Weighted average exercise price, Eligible for exercise (in usd per share) | $ 5.13 |
Equity - Narrative (Details)
Equity - Narrative (Details) - USD ($) | Nov. 20, 2020 | Sep. 17, 2020 | Sep. 09, 2020 | Jan. 11, 2019 | Aug. 02, 2016 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Oct. 24, 2019 | Dec. 20, 2018 | Dec. 18, 2018 | Dec. 31, 2015 |
Class of Warrant or Right [Line Items] | ||||||||||||
Proceeds from sale of HC2 preferred stock | $ 27,000,000 | $ 0 | ||||||||||
Common stock, authorized (in shares) | 160,000,000 | 160,000,000 | 80,000,000 | |||||||||
Stock issuance cost other offering expenses | $ 59,600,000 | |||||||||||
Proceeds from rights offering | $ 61,500,000 | $ 34,500,000 | $ 0 | |||||||||
Preferred stock cumulative cash dividend rate | 7.50% | |||||||||||
Preferred stock dividend rate | 4.00% | |||||||||||
Accreting dividend threshold rate | 7.25% | |||||||||||
Volume weighted average price threshold percentage | 150.00% | |||||||||||
Preferred stock trading days to calculate volume weighted average price (at least) | 20 days | |||||||||||
Preferred stock force conversion, trading days to calculate volume weighted average price | 30 days | |||||||||||
Consent rights percentage (at least) | 75.00% | |||||||||||
Preferred shares authorized (in shares) | 20,000,000 | 20,000,000 | 20,000,000 | |||||||||
Par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |||||||||
Additional share consideration valued at | $ 800,000 | $ 800,000 | ||||||||||
Term of warrants outstanding | 5 years | 5 years | ||||||||||
Number of warrants outstanding (in shares) | 50,000 | 2,000,000 | ||||||||||
Exercise price of warrants (in usd per share) | $ 176.4 | $ 7.08 | ||||||||||
Rights Offering | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance of common stock (in shares) | 28,716,820 | |||||||||||
Corrib Master Fund, Ltd. and Luxor Capital Partners, LP | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Percent of accrued value | 1.875% | |||||||||||
Series B shares issued and outstanding | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Preferred stock conversion price (in usd per share) | $ 2.27 | |||||||||||
Shares issued (in shares) | 26,994 | 0 | 0 | |||||||||
Convertible preferred stock, conversion (in shares) | 35,000 | |||||||||||
Preferred stock, certificate of designation (in shares) | 35,000 | |||||||||||
Preferred stock, beneficial conversion feature | $ 2,000,000 | |||||||||||
Series B shares issued and outstanding | Lancer Capital | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Investment agreement | 35,000,000 | |||||||||||
Initial funding amount | 10,000,000 | |||||||||||
Proceeds from sale of HC2 preferred stock | $ 21,400,000 | $ 5,560,000 | ||||||||||
Shares issued (in shares) | 21,434 | 5,560 | ||||||||||
Series B shares issued and outstanding | Lancer Capital | Board of Directors Chairman | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Investment agreement | $ 35,000,000 | |||||||||||
Initial funding amount | 10,000,000 | |||||||||||
Proceeds from sale of HC2 preferred stock | $ 5,560,000 | |||||||||||
Shares issued (in shares) | 5,560 | |||||||||||
Series B shares issued and outstanding | Lancer Capital | Level 3 | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Fair value for the backstop commitment | $ 0 | |||||||||||
Common Stock | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance and sale of common stock (in shares) | 16,825,280 | |||||||||||
Conversion of stock, number of shares (in shares) | 11,891,540 | |||||||||||
Common Stock | Lancer Capital | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Conversion of stock, number of shares (in shares) | 11,891,540 | |||||||||||
Common Stock | CGI | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Conversion of stock, number of shares (in shares) | 1,879,699 | |||||||||||
Common Stock | DG Value Partners, LP and DG Value Partners II Master Funds LP | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Conversion of stock, number of shares (in shares) | 1,763,706 | |||||||||||
Series A- One Preferred Stock | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Preferred stock conversion price (in usd per share) | $ 3.52 | |||||||||||
Series A-2 Preferred Stock | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Preferred stock conversion price (in usd per share) | $ 5.32 | |||||||||||
Number of shares to be issued upon conversion of preferred stock (in shares) | 751,880 | |||||||||||
Series A-2 Preferred Stock | CGI | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance and sale of common stock (in shares) | 10,000 | |||||||||||
Stock issued during period, stock dividend value | $ 1,700,000 | |||||||||||
Series A shares issued and outstanding | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Shares issued (in shares) | 6,375 | 6,375 | ||||||||||
Number of shares to be issued upon conversion of preferred stock (in shares) | 1,835,695 | |||||||||||
Series A shares issued and outstanding | CGI | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Shares issued (in shares) | 6,125 | 6,125 | ||||||||||
Series A shares issued and outstanding | Corrib Master Fund, Ltd. | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance and sale of common stock (in shares) | 1,000 | |||||||||||
Conversion of stock, number of shares (in shares) | 31,379 | 30,297 | ||||||||||
Series A shares issued and outstanding | Luxor Capital Partners, LP | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Conversion of stock, number of shares (in shares) | 278,914 | 269,284 | ||||||||||
Series A-1 shares issued and outstanding | Luxor Capital Partners, LP | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Issuance and sale of common stock (in shares) | 9,000 | |||||||||||
Maximum | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Preferred stock dividend rate | 2.00% | |||||||||||
Minimum | ||||||||||||
Class of Warrant or Right [Line Items] | ||||||||||||
Preferred stock dividend rate | 0.00% |
Equity - Preferred Stock (Detai
Equity - Preferred Stock (Details) - $ / shares | Dec. 31, 2020 | Nov. 20, 2020 | Sep. 09, 2020 | Dec. 31, 2019 |
Class of Stock [Line Items] | ||||
Par value (in usd per share) | $ 0.001 | $ 0.001 | $ 0.001 | |
Preferred 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) | 0 | 26,994 | 0 | |
Shares outstanding (in shares) | 0 | 0 |
Equity - Summary of Cash Divide
Equity - Summary of Cash Dividends (Details) - USD ($) $ in Millions | 3 Months Ended | |||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Equity [Abstract] | ||||||||
Total Dividend | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 | $ 0.2 |
Related Parties - Narrative (De
Related Parties - Narrative (Details) - USD ($) | Nov. 20, 2020 | Sep. 17, 2020 | Dec. 31, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | |||||
Proceeds from sale of preferred stock | $ 27,000,000 | $ 0 | |||
Net revenue | 0 | 6,400,000 | |||
Harbinger Capital Partners | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Expenses under service agreement | 1,600,000 | 2,700,000 | |||
Net revenue | 100,000 | 300,000 | |||
Triple Ring | Affiliated Entity | |||||
Related Party Transaction [Line Items] | |||||
Expenses under service agreement | $ 1,000,000 | $ 1,900,000 | |||
Series B shares issued and outstanding | |||||
Related Party Transaction [Line Items] | |||||
Shares issued (in shares) | 26,994 | 0 | 0 | 0 | |
Series B shares issued and outstanding | Lancer Capital | |||||
Related Party Transaction [Line Items] | |||||
Investment agreement | $ 35,000,000 | ||||
Initial funding amount | 10,000,000 | ||||
Proceeds from sale of preferred stock | $ 21,400,000 | $ 5,560,000 | |||
Shares issued (in shares) | 21,434 | 5,560 | |||
Series B shares issued and outstanding | Lancer Capital | Board of Directors Chairman | |||||
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 | ||||
Common stock | |||||
Related Party Transaction [Line Items] | |||||
Conversion of stock, number of shares (in shares) | 11,891,540 | ||||
Issuance of common stock (in shares) | 16,825,280 | ||||
Common stock | Lancer Capital | |||||
Related Party Transaction [Line Items] | |||||
Conversion of stock, number of shares (in shares) | 11,891,540 | ||||
Common stock | MG Capital Management Ltd. | |||||
Related Party Transaction [Line Items] | |||||
Issuance of common stock (in shares) | 82,459 |
Related Parties - Components of
Related Parties - Components of Service Agreement's Net Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transaction [Line Items] | ||
Revenue from related parties | $ 0 | $ 6.4 |
Harbinger capital partners | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 1.6 | 2.7 |
Revenue from related parties | 0.1 | 0.3 |
Net related party activity | 1.5 | 2.4 |
Harbinger capital partners | Affiliated entity | Corporate | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 1.1 | 1.9 |
Revenue from related parties | 0.1 | 0.3 |
Net related party activity | 1 | 1.6 |
Harbinger capital partners | Affiliated entity | Other | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 0.5 | 0.8 |
Revenue from related parties | 0 | 0 |
Net related party activity | 0.5 | 0.8 |
Harbinger capital partners | Office space | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 1.6 | 2.6 |
Harbinger capital partners | Office space | Affiliated entity | Corporate | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 1.1 | 1.8 |
Harbinger capital partners | Office space | Affiliated entity | Other | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 0.5 | 0.8 |
Harbinger capital partners | Administrative salaries and benefits | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 0 | 0.1 |
Revenue from related parties | 0.1 | 0.2 |
Harbinger capital partners | Administrative salaries and benefits | Affiliated entity | Corporate | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 0 | 0.1 |
Revenue from related parties | 0.1 | 0.2 |
Harbinger capital partners | Administrative salaries and benefits | Affiliated entity | Other | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 0 | 0 |
Revenue from related parties | 0 | 0 |
Harbinger capital partners | Other shared overhead | Affiliated entity | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 0 | 0 |
Revenue from related parties | 0 | 0.1 |
Harbinger capital partners | Other shared overhead | Affiliated entity | Corporate | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 0 | 0 |
Revenue from related parties | 0 | 0.1 |
Harbinger capital partners | Other shared overhead | Affiliated entity | Other | ||
Related Party Transaction [Line Items] | ||
Expenses under service agreement | 0 | 0 |
Revenue from related parties | $ 0 | $ 0 |
Related Parties - Summary of Ba
Related Parties - Summary of Balance Outstanding of Related Parties (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Related Party Transactions [Abstract] | ||
Net revenue | $ 0 | $ 6.4 |
Operating expenses | 0 | 1 |
Interest expense | 0 | 1 |
Accounts receivable | 0 | 1.2 |
Long-term obligations | 0 | 22.5 |
Accounts payable | 0 | 0.1 |
Dividends | $ 0 | $ 4.5 |
Operating Segment and Related_3
Operating Segment and Related Information - Narrative (Details) | 12 Months Ended |
Dec. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable geographic segments | 1 |
Number of reportable operating segments | 4 |
Operating Segment and Related_4
Operating Segment and Related Information - Operating Segments (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | $ 716.9 | $ 755.6 |
Revenue | 1,005.8 | 1,077 |
(Loss) income from operations | (4.1) | 25.3 |
Interest expense | (79.4) | (76.1) |
Loss on extinguishment of debt | (9.4) | 0 |
(Loss) income from equity investees | (3.4) | 1.6 |
Gain on bargain purchase | 0 | 1.1 |
Other income | 68.5 | 6.3 |
Loss from continuing operations before income taxes | (27.8) | (41.8) |
Income tax benefit (expense) | (10.5) | 19.6 |
Loss from continuing operations | (38.3) | (22.2) |
Loss from discontinued operations | (63.8) | (13.9) |
Net loss | (102.1) | (36.1) |
Net loss attributable to noncontrolling interest and redeemable noncontrolling interest | 10.1 | 4.6 |
Net loss attributable to HC2 Holdings, Inc. | (92) | (31.5) |
Less: Preferred dividends, deemed dividends, and repurchase gains | 3.6 | 0 |
Net loss attributable to common stock and participating preferred stockholders | (95.6) | (31.5) |
Depreciation and Amortization | (3.2) | (0.9) |
Capital Expenditures | 17.8 | 24.7 |
Infrastructure | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 675.9 | 712.9 |
Revenue | 676.6 | 713.3 |
Spectrum | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 40.3 | 41.8 |
Revenue | 40.3 | 41.8 |
Operating Segments | Infrastructure | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 676.6 | 713.3 |
(Loss) income from operations | 20.5 | 45.1 |
Depreciation and Amortization | 10.7 | 15.5 |
Capital Expenditures | 5.7 | 9.8 |
Operating Segments | Life Sciences | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
(Loss) income from operations | (16.9) | (8.9) |
Depreciation and Amortization | 0.1 | 0.3 |
Capital Expenditures | 0.1 | 0.1 |
Operating Segments | Spectrum | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 40.3 | 41.8 |
(Loss) income from operations | (2.2) | (11.4) |
Depreciation and Amortization | 6.8 | 6.3 |
Capital Expenditures | 11.8 | 14.2 |
Operating Segments | Insurance | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 300.2 | 331.6 |
(Loss) income from operations | 35.6 | 37.3 |
Depreciation and Amortization | (20.9) | (23.1) |
Capital Expenditures | 0.2 | 0.6 |
Operating Segments | Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | 0 | 0.5 |
(Loss) income from operations | (2.8) | (1.6) |
Corporate | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
(Loss) income from operations | (27) | (25) |
Depreciation and Amortization | 0.1 | 0.1 |
Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenue | (11.3) | (10.2) |
(Loss) income from operations | $ (11.3) | $ (10.2) |
Operating Segment and Related_5
Operating Segment and Related Information - Long-term investments, Property and Equipment and Assets (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | $ 4,665.6 | $ 4,392.1 |
Total Assets | 6,742.8 | 6,958.3 |
Operating Segments | Infrastructure | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | 0.9 | 0.9 |
Total Assets | 494.8 | 530.4 |
Operating Segments | Life Sciences | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | 18.4 | 22 |
Total Assets | 21.4 | 28.4 |
Operating Segments | Spectrum | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Assets | 213.6 | 257.9 |
Operating Segments | Insurance | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | 4,711.3 | 4,423 |
Total Assets | 5,913.8 | 5,611.9 |
Operating Segments | Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | 36.1 | 43.1 |
Total Assets | 167.3 | 598.4 |
Corporate | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total Assets | 30.1 | 27.2 |
Intersegment Eliminations | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Investments | (101.1) | (96.9) |
Total Assets | $ (98.2) | $ (95.9) |
Basic and Diluted Income Per _3
Basic and Diluted Income Per Common Share - Narrative (Details) - shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities (in shares) | 0 | 0 |
Basic and Diluted Income Per _4
Basic and Diluted Income 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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Loss from continuing operations | $ (38.3) | $ (22.2) |
Income (loss) attributable to noncontrolling interest and redeemable noncontrolling interest | (5.6) | 4.4 |
Loss from continuing operations attributable to the Company | (43.9) | (17.8) |
Less: Preferred dividends, deemed dividends, and repurchase gains | 3.6 | 0 |
Loss from continuing operations attributable to HC2 common stockholders | (47.5) | (17.8) |
Loss from discontinued operations | (63.8) | (13.9) |
Loss attributable to noncontrolling interest and redeemable noncontrolling interest | 15.7 | 0.2 |
Loss from discontinued operations, net of tax and noncontrolling interest | (48.1) | (13.7) |
Net income (loss) attributable to common stock and participating preferred stockholders | $ (95.6) | $ (31.5) |
Participating shares at end of period: | ||
Weighted-average Common stock outstanding (in shares) | 50.3 | 44.8 |
Unvested restricted stock (in shares) | 0 | 0 |
Preferred stock (as-converted basis) (in shares) | 0.4 | 0 |
Total (in shares) | 50.7 | 44.8 |
Percentage of loss allocated to: | ||
Common stock | 99.20% | 100.00% |
Unvested restricted stock | 0.00% | 0.00% |
Preferred stock | 0.80% | 0.00% |
Net loss from continuing operations attributable to common stock, basic | $ (47.1) | $ (17.8) |
Net loss from discontinued operations attributable to common stock, basic | (47.7) | (13.7) |
Net loss attributable to common stock, basic | $ (94.8) | $ (31.5) |
Earnings allocable to common shares, diluted: | ||
Effect of assumed shares under treasury stock method for stock options and restricted shares and if-converted method for convertible instruments (in shares) | (0.4) | 0 |
Net loss from continuing operations attributable to common stock, basic | $ (47.5) | $ (17.8) |
Net loss from discontinued operations attributable to common stock, basic | (47.7) | (13.7) |
Net loss attributable to common stock, basic | $ (95.2) | $ (31.5) |
Denominator for basic and dilutive earnings per share | ||
Weighted average common shares outstanding - basic (in shares) | 50.3 | 44.8 |
Effect of assumed shares under treasury stock method for stock options and restricted shares and if-converted method for convertible instruments (in shares) | 0.4 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 50.7 | 44.8 |
Loss per share - continuing operations | ||
Basic (in usd per share) | $ (0.94) | $ (0.40) |
Diluted (in usd per share) | (0.94) | (0.40) |
Loss per common share - discontinued operations | ||
Basic (in usd per share) | (0.94) | (0.30) |
Diluted (in usd per share) | (0.94) | (0.30) |
Loss per share - Net loss attributable to common stock and participating preferred stockholders | ||
Basic (in usd per share) | (1.88) | (0.70) |
Diluted (in usd per share) | $ (1.88) | $ (0.70) |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 03, 2021 | Feb. 01, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Feb. 23, 2021 | Mar. 31, 2020 | Apr. 30, 2019 |
Subsequent Event [Line Items] | |||||||
Issuance of common stock | $ 200,000 | $ 0 | |||||
Subsequent Event | R2 Dermatology, Inc. | |||||||
Subsequent Event [Line Items] | |||||||
Funding received | $ 10,000,000 | ||||||
8.500% Senior Notes Due 2026 | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Debt instrument, amount redeemed | $ 330,000,000 | ||||||
Interest rate | 8.50% | ||||||
Redemption price, percentage | 100.00% | ||||||
11.50% Senior Secured Notes, due 2021 | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate | 11.50% | ||||||
11.50% Senior Secured Notes, due 2021 | Subsequent Event | |||||||
Subsequent Event [Line Items] | |||||||
Interest rate | 11.50% | ||||||
Revolving Credit Agreement | |||||||
Subsequent Event [Line Items] | |||||||
Face amount | $ 15,000,000 | $ 15,000,000 | |||||
Revolving Credit Agreement | Subsequent Event | Revolving Credit Facility | Line of Credit | |||||||
Subsequent Event [Line Items] | |||||||
Face amount | $ 20,000,000 |