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Document and Entity Information - shares	9 Months Ended
Document and Entity Information - shares	Sep. 30, 2017	Oct. 31, 2017
Document And Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q3
Entity Registrant Name	HC2 Holdings, Inc.
Entity Central Index Key	0001006837
Current Fiscal Year End Date	--12-31
Entity Filer Category	Accelerated Filer
Entity Common Stock, Shares Outstanding		43,054,728

Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Income Statement [Abstract]
Services revenue	$ 210,698	$ 245,064	$ 643,596	$ 624,545
Sales revenue	157,974	133,474	420,001	379,729
Life, accident and health earned premiums, net	20,472	19,967	60,648	59,939
Net investment income	16,287	14,799	48,530	42,585
Net realized gains (losses) on investments	978	(220)	2,854	(2,677)
Net revenue	406,409	413,084	1,175,629	1,104,121
Operating expenses
Cost of revenue - services	196,488	225,876	606,079	583,942
Cost of revenue - sales	128,185	107,984	341,672	308,951
Policy benefits, changes in reserves, and commissions	17,393	29,689	79,323	92,784
Selling, general and administrative	45,356	36,902	126,919	107,493
Depreciation and amortization	7,896	5,961	22,588	18,163
Other operating (income) expenses	526	(182)	(1,294)	(794)
Total operating expenses	395,844	406,230	1,175,287	1,110,539
Income (loss) from operations	10,565	6,854	342	(6,418)
Interest expense	(13,222)	(10,719)	(39,410)	(31,614)
Gain on contingent consideration	6,320	1,381	6,001	1,573
Income from equity investees	971	335	12,667	3,153
Other expenses, net	(97)	(4,584)	(8,112)	(5,793)
Income (loss) from continuing operations before income taxes	4,537	(6,733)	(28,512)	(39,099)
Income tax (expense) benefit	(12,861)	1,334	(16,167)	3,649
Net loss	(8,324)	(5,399)	(44,679)	(35,450)
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interest	2,357	841	6,305	2,365
Net loss attributable to HC2 Holdings, Inc.	(5,967)	(4,558)	(38,374)	(33,085)
Less: Preferred stock and deemed dividends from conversions	703	2,948	2,079	5,061
Net loss attributable to common stock and participating preferred stockholders	$ (6,670)	$ (7,506)	$ (40,453)	$ (38,146)
Loss per Common Share
Basic (in usd per share)	$ (0.16)	$ (0.20)	$ (0.95)	$ (1.07)
Diluted (in usd per share)	$ (0.16)	$ (0.20)	$ (0.95)	$ (1.07)
Weighted average common shares outstanding:
Basic (in shares)	43,013	36,627	42,555	35,808
Diluted (in shares)	43,013	36,627	42,555	35,808

Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net loss	$ (8,324)	$ (5,399)	$ (44,679)	$ (35,450)
Other comprehensive income
Foreign currency translation adjustment	548	672	3,897	1,335
Unrealized gain on available-for-sale securities	16,158	8,972	47,134	71,261
Other comprehensive income	16,706	9,644	51,031	72,596
Comprehensive income	8,382	4,245	6,352	37,146
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interest	2,357	841	6,305	2,365
Comprehensive income attributable to HC2 Holdings, Inc.	$ 10,739	$ 5,086	$ 12,657	$ 39,511

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Investments:
Fixed maturities, available-for-sale at fair value	$ 1,336,637	$ 1,278,958
Equity securities, available-for-sale at fair value	49,046	51,519
Mortgage loans	26,427	16,831
Policy loans	18,038	18,247
Other invested assets	91,461	62,363
Total investments	1,521,609	1,427,918
Cash and cash equivalents	130,791	115,371
Accounts receivable, net	265,082	267,598
Recoverable from reinsurers	530,679	524,201
Deferred tax asset	436	1,108
Property, plant and equipment, net	282,065	286,458
Goodwill	96,990	98,086
Intangibles, net	35,781	39,722
Other assets	107,911	74,814
Total assets	2,971,344	2,835,276
Liabilities, temporary equity and stockholders’ equity
Life, accident and health reserves	1,683,568	1,648,565
Annuity reserves	245,053	251,270
Value of business acquired	44,013	47,613
Accounts payable and other current liabilities	295,096	251,733
Deferred tax liability	14,042	15,304
Long-term obligations	496,592	428,496
Other liabilities	83,265	92,871
Total liabilities	2,861,629	2,735,852
Commitments and contingencies
Temporary equity
Preferred stock	26,281	29,459
Redeemable noncontrolling interest	1,526	2,526
Total temporary equity	27,807	31,985
Stockholders’ equity
Common stock, $.001 par value;80,000,000 shares authorized; 43,382,926 and 42,070,675 shares issued and 43,016,440 and 41,811,288 shares outstanding at September 30, 2017 and December 31, 2016, respectively	43	42
Additional paid-in capital	248,235	241,485
Treasury stock, at cost; 366,486 and 259,387 shares at September 30, 2017 and December 31, 2016, respectively	(1,981)	(1,387)
Accumulated deficit	(212,652)	(174,278)
Accumulated other comprehensive income (loss)	29,384	(21,647)
Total HC2 Holdings, Inc. stockholders’ equity	63,029	44,215
Noncontrolling interest	18,879	23,224
Total stockholders’ equity	81,908	67,439
Total liabilities, temporary equity and stockholders’ equity	$ 2,971,344	$ 2,835,276

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in usd per share)	$ 0.001	$ 0.001
Common stock (in shares)	80,000,000	80,000,000
Common stock, shares issued (in shares)	43,382,926	42,070,675
Common stock, shares outstanding (in shares)	43,016,440	41,811,288
Treasury stock (in shares)	366,486	259,387

Condensed Consolidated Statement of Stockholders' Equity - USD ($) $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Treasury Stock	Retained Earnings (Accumulated Deficit)	Accumulated Other Comprehensive Income (Loss)	Total HC2 Stockholders' Equity	Non-controlling Interest	Temporary Equity
Beginning balance (in shares) at Dec. 31, 2015		35,250,000
Beginning balance at Dec. 31, 2015	$ 117,524	$ 35	$ 209,477	$ (378)	$ (79,729)	$ (35,375)	$ 94,030	$ 23,494	$ 55,741
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	6,667		6,667				6,667		0
Fair value adjustment of redeemable noncontrolling interest	(99)		(99)				(99)		99
Exercise of stock options (in shares)		2,000
Taxes paid in lieu of shares issued for share-based compensation, shares		(201,000)
Taxes paid in lieu of shares issued for share-based compensation	(884)			(884)			(884)
Preferred stock dividend and accretion	(2,386)		(2,386)				(2,386)
Amortization of issuance costs and beneficial conversion feature	(309)		(309)				(309)		309
Issuance of common stock (in shares)		264,000
Conversion of preferred stock to common stock (in shares)		2,716,000
Conversion of preferred stock to common stock	9,363	$ 3	9,360				9,363		(11,170)
Transactions with noncontrolling interests	10,161		6,132				6,132	4,029
Net loss	(35,450)								(1,228)
Net loss	(34,222)				(33,085)		(33,085)	(1,137)
Other comprehensive income	72,596					72,596	72,596
Ending balance (in shares) at Sep. 30, 2016		38,031,000
Ending balance at Sep. 30, 2016	178,411	$ 38	228,842	(1,262)	(112,814)	37,221	152,025	26,386	43,751
Beginning balance (in shares) at Dec. 31, 2016		41,811,000
Beginning balance at Dec. 31, 2016	67,439	$ 42	241,485	(1,387)	(174,278)	(21,647)	44,215	23,224	31,985
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	5,630		5,630				5,630
Dividend paid to noncontrolling interests	(378)							(378)
Fair value adjustment of redeemable noncontrolling interest	$ (673)		(673)				(673)		673
Exercise of stock options (in shares)	134,539	135,000
Exercise of stock options	$ 486		486				486
Taxes paid in lieu of shares issued for share-based compensation, shares		(107,000)
Taxes paid in lieu of shares issued for share-based compensation	(594)			(594)			(594)
Preferred stock dividend and accretion	(1,562)		(1,562)				(1,562)
Amortization of issuance costs and beneficial conversion feature	(50)		(50)				(50)		50
Issuance of common stock (in shares)		374,000
Issuance of restricted stock	81		81				81
Conversion of preferred stock to common stock (in shares)		803,000
Conversion of preferred stock to common stock	2,839	$ 1	2,838				2,839		(3,228)
Transactions with noncontrolling interests									665
Net loss	(44,679)								(2,338)
Net loss	(42,341)				(38,374)		(38,374)	(3,967)
Other comprehensive income	51,031					51,031	51,031
Ending balance (in shares) at Sep. 30, 2017		43,016,000
Ending balance at Sep. 30, 2017	$ 81,908	$ 43	$ 248,235	$ (1,981)	$ (212,652)	$ 29,384	$ 63,029	$ 18,879	$ 27,807

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net loss	$ (44,679)	$ (35,450)
Adjustments to reconcile net loss to cash provided by operating activities:
Provision for doubtful accounts receivable	108	827
Share-based compensation expense	4,006	6,667
Depreciation and amortization	26,423	19,602
Amortization of deferred financing costs and debt discount / premium	4,203	1,530
Amortization of discount / premium on investments	6,126	8,966
Gain (loss) on sale or disposal of assets	(3,368)	251
Lease termination costs	264	179
Asset impairment expense	1,810	0
Income from equity investees	(12,667)	(3,153)
Impairment of investments	6,112	4,321
Net realized and unrealized (gains) losses on investments	(2,881)	2,519
Gain on contingent consideration	(6,001)	(1,573)
Receipt of dividends from equity investees	917	7,214
Deferred income taxes	(669)	(18,940)
Annuity benefits	6,519	6,737
Other operating activities	3,131	(224)
Changes in assets and liabilities, net of acquisitions:
Accounts receivable	2,725	(56,463)
Recoverable from reinsurers	(6,478)	(3,323)
Other assets	(27,424)	52,462
Life, accident and health and annuity reserves	34,841	45,265
Accounts payable and other current liabilities	45,650	(12,625)
Other liabilities	(1,561)	30,190
Cash provided by operating activities:	37,107	54,979
Cash flows from investing activities:
Purchase of property, plant and equipment	(25,324)	(21,689)
Disposal of property, plant and equipment	1,610	6,411
Purchase of investments	(231,881)	(169,088)
Sale of investments	101,080	72,188
Maturities and redemptions of investments	100,691	53,663
Purchase of equity method investments	(11,390)	(10,203)
Cash paid for business acquisitions, net of cash acquired	0	(10,871)
Other investing activities	(1,745)	(483)
Cash used in investing activities:	(66,959)	(80,072)
Cash flows from financing activities:
Proceeds from long-term obligations	108,469	11,672
Principal payments on long-term obligations	(48,146)	(11,441)
Annuity receipts	2,190	2,522
Annuity surrenders	(14,764)	(15,562)
Transactions with noncontrolling interests	665	5,837
Payment of dividends	(2,763)	(3,007)
Other financing activities	(230)	(884)
Cash provided by (used in) financing activities:	45,421	(10,863)
Effects of exchange rate changes on cash and cash equivalents	(149)	(1,347)
Net change in cash and cash equivalents	15,420	(37,303)
Cash and cash equivalents, beginning of period	115,371	158,624
Cash and cash equivalents, end of period	130,791	121,321
Supplemental cash flow information:
Cash paid for interest	24,601	21,491
Cash paid for taxes	11,113	13,469
Non-cash investing and financing activities:
Property, plant and equipment included in accounts payable	547	1,542
Investments included in accounts payable	4,785	5,876
Conversion of preferred stock to common stock	4,433	10,853
Dividends payable to shareholders	500	800
Fair value of contingent assets assumed in other acquisitions	0	2,992
Fair value of deferred liabilities assumed in other acquisitions	0	2,589
Debt assumed in acquisitions	$ 0	$ 20,813

Organization and Business	9 Months Ended
Organization and Business	Sep. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	1. Organization and Business HC2 Holdings, Inc. ("HC2" and, together with its subsidiaries, the "Company", "we" and "our") is a diversified holding company which seeks to acquire and grow attractive businesses that we believe can generate long-term sustainable free cash flow and attractive returns. While the Company generally intends to acquire controlling equity interests in its operating subsidiaries, the Company may invest to a limited extent in a variety of debt instruments or noncontrolling equity interest positions. The Company’s shares of common stock trade on the NYSE under the symbol "HCHC". The Company currently has seven reportable segments based on management’s organization of the enterprise - Construction, Marine Services, Energy, Telecommunications, Insurance, Life Sciences, and Other, which includes businesses that do not meet the separately reportable segment thresholds. 1.Our Construction segment is comprised of DBM Global Inc. ("DBMG") and its wholly-owned subsidiaries. DBMG is a fully integrated detailer, Building Information Modelling ("BIM") modeler, fabricator and erector of structural steel and heavy steel plate. DBMG details, models, fabricates and erects structural steel for commercial and industrial construction projects such as high- and low-rise buildings and office complexes, hotels and casinos, convention centers, sports arenas, shopping malls, hospitals, dams, bridges, mines and power plants. DBMG also fabricates trusses and girders and specializes in the fabrication and erection of large-diameter water pipe and water storage tanks. Through Aitken, DBMG manufactures pollution control scrubbers, tunnel liners, pressure vessels, strainers, filters, separators and a variety of customized products. The Company maintains a 92% controlling interest in DBMG. 2.Our Marine Services segment is comprised of Global Marine Systems Limited ("GMSL"). GMSL is a leading provider of engineering and underwater services on submarine cables. The Company maintains a 95% equity interest in GMSL. 3.Our Energy segment is comprised of American Natural Gas ("ANG"). ANG is a premier distributor of natural gas motor fuel. ANG designs, builds, owns, acquires, operates and maintains compressed natural gas fueling stations for transportation vehicles. The Company maintains effective control of, and a 49.99% ownership interest in ANG. 4.Our Telecommunications segment is comprised of PTGi International Carrier Services, ("ICS"). ICS operates a telecommunications business including a network of direct routes and provides premium voice communication services for national telecommunications operators, mobile operators, wholesale carriers, prepaid operators, Voice over Internet Protocol ("VOIP") service operators and Internet service providers from our International Carrier Services business unit. ICS provides a quality service via direct routes and by forming strong relationships with carefully selected partners. The Company owns 100% of ICS. 5.Our Insurance segment is comprised of Continental General Insurance Company ("CGI" or the "Insurance Company"). CGI provides long-term care, life and annuity coverage that help protect policy and certificate holders from the financial hardships associated with illness, injury, loss of life, or income continuation. The Company owns 100% of the Insurance Company. 6.Our Life Sciences segment is comprised of Pansend Life Sciences, LLC ("Pansend"). Pansend owns (i) an 80% interest in Genovel Orthopedics, Inc. ("Genovel"), which seeks to develop products to treat early osteoarthritis of the knee, (ii) a 74% interest in R2 Dermatology Inc. ("R2"), which develops skin lightening technology, and (iii) an 80% interest in BeneVir Biopharm, Inc. ("BeneVir"), which focuses on immunotherapy for the treatment of solid tumors. Pansend also invests in other early stage or developmental stage healthcare companies including a 50% interest in Medibeacon Inc., and an investment in Triple Ring Technologies, Inc. 7.In our Other segment, we invest in and grow developmental stage companies that we believe have significant growth potential. Among the businesses included in this segment is the Company's 56% ownership interest in 704Games Company ("704Games" f/k/a DMi, Inc.), which owns licenses to create and distribute NASCAR® video games, and the Company's 72% interest in NerVve Technologies, Inc. ("NerVve"), which provides analytics on broadcast TV, digital and social media online platforms.

Summary of Significant Accounting Policies	9 Months Ended
Summary of Significant Accounting Policies	Sep. 30, 2017
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	2. Summary of Significant Accounting Policies Basis of Presentation The accompanying unaudited Condensed Consolidated Financial Statements of the Company included herein have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). The financial statements reflect all adjustments that are, in the opinion of management, necessary for a fair statement of such information. All such adjustments are of a normal recurring nature. Certain information and note disclosures, including a description of significant accounting policies normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"), have been condensed or omitted pursuant to such rules and regulations. Certain prior amounts have been reclassified or combined to conform to the current year presentation. These reclassifications and combinations had no effect on previously reported net loss attributable to controlling interest or accumulated deficit. These interim financial statements should be read in conjunction with the Company’s annual consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2016, filed with the SEC on March 9, 2017, as amended by amendment no.1, filed on March 28, 2017 (collectively "Form 10-K"). The results of operations for the three and nine months ended September 30, 2017 are not necessarily indicative of the results for any subsequent periods or the entire fiscal year ending December 31, 2017. Use of Estimates and Assumptions The preparation of the Company’s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used. Adjustments During the second quarter of 2016, the Company identified an immaterial error in its calculation of depreciation expense for the twelve months ended December 31, 2015 and 2014 and the three months ended March 31, 2016 related to purchase accounting associated with the acquisition of DBMG in May 2014. This resulted in an excess depreciation expense being recorded in each of the periods noted. In addition, certain gains and losses on assets that were disposed of by DBMG were incorrectly recorded during the same periods as a result of these adjustments. The Company corrected the cumulative effect of these adjustments in the second quarter of 2016, resulting in an immaterial net adjustment to net income (loss) attributable to common and participating preferred stockholders for the nine months ended September 30, 2016 of $1.3 million. New Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its Condensed Consolidated Financial Statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial condition, results of operations or liquidity. Accounting Pronouncements Early Adopted During the Fiscal Year Testing for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. Topic 350, Intangibles - Goodwill and Other (Topic 350), currently requires an entity that has not elected the private company alternative for goodwill to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of the goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. To address concerns over the cost and complexity of the two-step goodwill impairment test, the amendments in this ASU remove the second step of the test. An entity will now apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The Company elected to early adopt ASU 2017-04 effective March 31, 2017, resulting in no impact to the Condensed Consolidated Financial Statements. New Accounting Pronouncements Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in Revenue Recognition (Topic 605). Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Considerations, which clarifies the guidance in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, an update on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which includes amendments for enhanced clarification of the guidance. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Revenue from Contracts with Customers (Topic 606), which includes amendments of a similar nature to the items typically addressed in the technical corrections and improvements project. Lastly, in February 2017, the FASB issued ASU 2017-05, clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets to clarify the scope of ASC 610-20, Other Income - Gains and Losses from Derecognition of Nonfinancial Assets, and provide guidance on partial sales of nonfinancial assets. This ASU clarifies that the unit of account under ASU 610-20 is each distinct nonfinancial or in substance nonfinancial asset and that a financial asset that meets the definition of an "in substance nonfinancial asset" is within the scope of ASC 610-20. This ASU eliminates rules specifically addressing sales of real estate and removes exceptions to the financial asset derecognition model. The ASUs described above are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company anticipates adopting the new standard effective January 1, 2018. Although the Company is still in the process of evaluating the full impact of the new standard on its financial statements, at this stage of the process, it expects to apply the modified retrospective transition method and does not believe the adoption of ASU 2014-09 will have a significant impact on the amount or timing of its revenues. Material revenue streams were identified and representative contract/transaction types were sampled. Performance obligations identified within each material revenue stream were evaluated to determine whether the obligations were satisfied at a point in time or over time. The evaluation of miscellaneous revenue streams, updating internal controls and the related qualitative disclosures regarding the potential impact of the effects of the accounting policies and a comparison to the Company’s current revenue recognition policies will continue during the fourth quarter of 2017. Instruments with down round feature In July 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates ("ASU") 2017-11 Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815), which changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. ASU 2017-11 also clarifies existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, ASU 2017-11 requires entities that present earnings per share (EPS) in accordance with ASC Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. For the Company, ASU 2017-11 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the implementation date and the impact of this amendment on its financial statements. Subsequent Events ASC 855, Subsequent Events ("ASC 855"), establishes general standards of accounting and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. ASC 855 requires HC2 to evaluate events that occur after the balance date as of which HC2's financial statements are issued, and to determine whether adjustments to or additional disclosures in the financial statements are necessary. HC2 has evaluated subsequent events through the date these financial statements were issued. See Note 22. Subsequent Events for the summary of the subsequent events.

Business Combinations

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Business Combinations

3. Business Combinations

Construction Segment

On October 13, 2016, DBMG acquired the detailing and BIM management business of PDC Global Pty Ltd. ("PDC"). The new businesses provide steel detailing, BIM modelling and BIM management services for industrial and commercial construction projects in Australia and North America. On November 1, 2016, DBMG acquired BDS VirCon ("BDS"). BDS provides steel detailing, rebar detailing and BIM modelling services for industrial and commercial projects in Australia, New Zealand, North America and Europe. The aggregate fair value of the consideration paid in connection with the acquisition of PDC and BDS was $25.5 million, including $21.4 million in cash. Both transactions were accounted for as business acquisitions.

Fair value of consideration transferred and its allocation among the identified assets acquired, liabilities assumed, intangibles and residual goodwill are summarized as follows (in thousands):



Purchase price allocation
Cash and cash equivalents	$	621
Accounts receivable, net	5,558
Costs and recognized earnings in excess of billings on uncompleted contracts	1,686
Property, plant and equipment, net	8,043
Goodwill	11,827
Intangibles	3,955
Other assets	1,209
Total assets acquired	32,899
Accounts payable and other current liabilities	(5,924		)
Billings in excess of costs and recognized earnings on uncompleted contracts	(617		)
Deferred tax liability	(169		)
Other liabilities	(685		)
Total liabilities assumed	(7,395		)
Total net assets acquired	$	25,504

Goodwill was determined based on the residual differences between fair value of consideration transferred and the value assigned to tangible and intangible assets and liabilities. Among the factors that contributed to goodwill was approximately $2.9 million assigned to the assembled and trained workforce. Goodwill is not amortized and is not deductible for tax purposes.

Acquisition costs to date incurred by DMBG in connection with the acquisition of PDC and BDS were approximately $3.1 million which was included in selling, general and administrative expenses. The acquisition costs were primarily related to legal, accounting and valuation services.

PDC's and BDS' results were included in our Condensed Consolidated Statements of Operations since their respective acquisition dates. Pro forma results of operations for the acquisition of PDC and BDS have not been presented because they are not material to our consolidated results of operations.

Energy Segment

For the year ended December 31, 2016, ANG completed four acquisitions comprised of an aggregate of twenty-one fueling stations. The total fair value of the consideration transferred by ANG in connection with the acquisitions was $42.1 million, comprised of $39.2 million in cash and a $2.9 million 4.25% seller note, due in 2022. See Note 12. Long-term Obligations for further details. Two of the transactions were accounted for as an asset acquisition because substantially all of the fair value of the gross assets acquired was concentrated in a group of similar identifiable assets related to acquired stations.

For the transactions accounted for as a business combination, the fair value of consideration transferred was allocated among the identified assets acquired, liabilities assumed, intangibles and residual goodwill. For the two transactions accounted for as asset acquisitions the preliminary fair value of consideration transferred was preliminarily allocated based on the relative fair value (in thousands):



Purchase price allocation
Accounts receivable	$	1,303
Property, plant and equipment, net	43,267
Goodwill	748
Intangibles	4,984
Other assets	79
Total assets acquired	50,381
Accounts payable and other current liabilities	(898		)
Deferred tax liability	(7,086		)
Total liabilities assumed	(7,984		)
Bargain purchase gain	(340		)
Total net assets acquired	$	42,057

The preliminary allocation of the fair value of the acquired businesses was based upon a preliminary valuation. Our estimates and assumptions are subject to change as we obtain additional information for our estimates during the measurement period. The primary areas of preliminary allocation of the fair values of consideration transferred that are not yet finalized relate to the fair values of certain property, plant and equipment, deferred tax liability, intangible assets acquired and the residual goodwill. We expect to complete the purchase price allocation for fiscal year 2016 acquisitions during fiscal year 2017.

Approximately $7.1 million of the fair value of consideration transferred has been provisionally assigned to customer contracts with an estimated useful life ranging between four and fifteen years. The multi-period excess earnings method was used to assign fair value to the acquired customer contracts.

Results of operations from the acquired stations since acquisition dates have been included in our Condensed Consolidated Statements of Operations. Pro forma results of operations for ANG's acquisitions have not been presented because they are not material to our consolidated results of operations.

Other Acquisitions

During the year ended December 31, 2016, we completed the acquisition of additional interests in and thereby control of NerVve and BeneVir, and acquired a 60% controlling interest in CWind Limited ("CWind") with an obligation to purchase the remaining 40% in equal amounts on September 30, 2016 and September 30, 2017 (based on agreed financial targets). The total consideration transferred for these acquisitions was $14.9 million, including $9.2 million in cash. On November 1, 2016, we completed the renegotiation of the deferred purchase obligation to purchase the outstanding 40% minority interest of CWind and purchased the remaining 40% on that date. All three transactions were accounted for as business acquisitions.

Results of operations from other acquisitions since the respective acquisition dates have been included in our Condensed Consolidated Statements of Operations. Pro forma results of operations for other acquisitions have not been presented because they are not material to our consolidated results of operations.

The following table summarizes the allocation of the purchase price to the fair value of identifiable assets acquired, liabilities assumed, intangibles and residual goodwill (in thousands):



Purchase price allocation
Cash and cash equivalents	$	2,963
Restricted cash	3
Accounts receivable	6,400
Inventory	528
Property, plant and equipment, net	29,896
Goodwill	5,541
Intangibles	7,082
Other assets	2,051
Total assets acquired	54,464
Accounts payable and other current liabilities	(11,180		)
Deferred tax liability	(2,819		)
Long-term obligations	(20,813		)
Other liabilities	(3		)
Noncontrolling interest	(815		)
Total liabilities assumed	(35,630		)
Enterprise value	18,834
Less fair value of noncontrolling interest	3,889
Total net assets acquired	$	14,945

Investments

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Investments

4. Investments

Fixed Maturity and Equity Securities Available-for-Sale

The following tables provide information relating to investments in fixed maturity and equity securities (in thousands):



September 30, 2017	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Fixed maturity securities
U.S. Government and government agencies	$	15,318	$	407	$	(12	)	$	15,713
States, municipalities and political subdivisions	378,057		16,170		(1,269		)	392,958
Foreign government	6,343		—		(431		)	5,912
Residential mortgage-backed securities	107,249		4,765		(1,173		)	110,841
Commercial mortgage-backed securities	30,668		434		(3		)	31,099
Asset-backed securities	125,777		2,559		(348		)	127,988
Corporate and other	609,137		44,592		(1,603		)	652,126
Total fixed maturity securities	$	1,272,549	$	68,927	$	(4,839	)	$	1,336,637
Equity securities
Common stocks	$	10,565	$	—	$	(3	)	$	10,562
Perpetual preferred stocks	37,002		1,510		(28		)	38,484
Total equity securities	$	47,567	$	1,510	$	(31	)	$	49,046



December 31, 2016	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Fixed maturity securities
U.S. Government and government agencies	$	15,910	$	135	$	(95	)	$	15,950
States, municipalities and political subdivisions	374,527		4,408		(3,858		)	375,077
Foreign government	6,380		—		(402		)	5,978
Residential mortgage-backed securities	136,126		2,634		(564		)	138,196
Commercial mortgage-backed securities	48,715		427		(89		)	49,053
Asset-backed securities	76,303		1,934		(572		)	77,665
Corporate and other	600,458		23,635		(7,054		)	617,039
Total fixed maturity securities	$	1,258,419	$	33,173	$	(12,634	)	$	1,278,958
Equity securities
Common stocks	$	16,236	$	—	$	(1,371	)	$	14,865
Perpetual preferred stocks	37,041		191		(578		)	36,654
Total equity securities	$	53,277	$	191	$	(1,949	)	$	51,519

The Company has investments in mortgage-backed securities ("MBS") that contain embedded derivatives (primarily interest-only MBS) that do not qualify for hedge accounting. The Company recorded the change in the fair value of these securities within Net realized gains (losses) on investments. These investments had a fair value of $12.1 million and $15.2 million as of September 30, 2017 and December 31, 2016, respectively. The change in fair value related to these securities resulted in a gain of $0.6 million and zero loss for the three and nine months ended September 30, 2017, respectively and a net loss of approximately $0.1 million and $2.4 million for the three and nine months ended September 30, 2016, respectively.

Maturities of Fixed Maturity Securities Available-for-Sale

The amortized cost and fair value of fixed maturity securities available-for-sale as of September 30, 2017 are shown by contractual maturity in the table below (in thousands). 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 Cost		Fair Value
Corporate, Municipal, U.S. Government and Other securities
Due in one year or less	$	36,381	$	36,153
Due after one year through five years	95,783		98,739
Due after five years through ten years	166,415		171,875
Due after ten years	710,276		759,942
Subtotal	1,008,855		1,066,709
Mortgage-backed securities	137,917		141,940
Asset-backed securities	125,777		127,988
Total	$	1,272,549	$	1,336,637

Corporate and Other Fixed Maturity Securities

The tables below show the major industry types of the Company’s corporate and other fixed maturity securities (in thousands):



	September 30, 2017						December 31, 2016
	Amortized Cost		Fair Value		% of Total		Amortized Cost		Fair Value		% of Total
Finance, insurance, and real estate	$	199,777	$	210,783	32.3	%	$	214,911	$	211,834	34.3	%
Transportation, communication and other services	181,389		193,954		29.7	%	180,647		189,163		30.7	%
Manufacturing	111,030		120,060		18.4	%	112,644		118,440		19.2	%
Other	116,941		127,329		19.6	%	92,256		97,602		15.8	%
Total	$	609,137	$	652,126	100.0	%	$	600,458	$	617,039	100.0	%

Other-Than-Temporary Impairments - Fixed Maturity and Equity Securities

A portion of certain other-than-temporary impairment ("OTTI") losses on fixed maturity securities is recognized in Accumulated Other Comprehensive Income ("AOCI"). For these securities the net amount, which is recognized in the Condensed Consolidated Statements of Operations in the below line items, 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 recorded the following (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net realized gains (losses) on investments	$	—	$	—	$	—	$	163
Other expenses, net	—		1,473		6,111		2,451
Total Other-Than-Temporary Impairments	$	—	$	1,473	$	6,111	$	2,614

Unrealized Losses for Fixed Maturity and Equity Securities Available-for-Sale

The following table presents the total unrealized losses for the 139 and 269 fixed maturity and equity securities held by the Company as of September 30, 2017 and December 31, 2016, respectively, where the estimated fair value had declined and remained below amortized cost by the indicated amount (in thousands):



	September 30, 2017					December 31, 2016
	Unrealized Losses			% of Total		Unrealized Losses			% of Total
Fixed maturity and equity securities
Less than 20%	$	(4,710	)	96.7	%	$	(10,069	)	69.0	%
20% or more for less than six months	—			—	%	(482		)	3.3	%
20% or more for six months or greater	(160		)	3.3	%	(4,032		)	27.7	%
Total	$	(4,870	)	100.0	%	$	(14,583	)	100.0	%

The determination of whether unrealized losses are "other-than-temporary" requires judgment based on subjective as well as objective factors. Factors considered and resources used by management include (i) whether the unrealized loss is credit-driven or a result of changes in market interest rates, (ii) the extent to which fair value is less than cost basis, (iii) cash flow projections received from independent sources, (iv) historical operating, balance sheet and cash flow data contained in issuer SEC filings and news releases, (v) near-term prospects for improvement in the issuer and/or its industry, (vi) third party research and communications with industry specialists, (vii) financial models and forecasts, (viii) the continuity of dividend payments, maintenance of investment grade ratings and hybrid nature of certain investments, (ix) discussions with issuer management, and (x) ability and intent to hold the investment for a period of time sufficient to allow for anticipated recovery in fair value.

The Company analyzes its MBS for OTTI each quarter based upon expected future cash flows. Management estimates expected future cash flows based upon its knowledge of the MBS market, cash flow projections (which reflect loan-to-collateral values, subordination, vintage and geographic concentration) received from independent sources, implied cash flows inherent in security ratings and analysis of historical payment data.

The Company believes it will recover its cost basis in the non-impaired securities with unrealized losses and that the Company has the ability to hold the securities until they recover in value. The Company neither intends to sell nor does it expect to be required to sell the securities with unrealized losses as of September 30, 2017. 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 139 and 269 fixed maturity and equity securities held by the Company that have estimated fair values below amortized cost as of each of September 30, 2017 and December 31, 2016, 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 thousands):



September 30, 2017	Less than 12 months					12 months of greater					Total
September 30, 2017	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities
U.S. Government and government agencies	$	6,994	$	(12	)	$	—	$	—		$	6,994	$	(12	)
States, municipalities and political subdivisions	62,682		(1,269		)	—		—			62,682		(1,269		)
Foreign government	—		—			5,913		(431		)	5,913		(431		)
Residential mortgage-backed securities	18,524		(1,003		)	10,429		(170		)	28,953		(1,173		)
Commercial mortgage-backed securities	1,132		(3		)	—		—			1,132		(3		)
Asset-backed securities	13,932		(130		)	6,178		(218		)	20,110		(348		)
Corporate and other	56,178		(1,567		)	883		(36		)	57,061		(1,603		)
Total fixed maturity securities	$	159,442	$	(3,984	)	$	23,403	$	(855	)	$	182,845	$	(4,839	)
Equity securities
Common stocks	$	10,282	$	(3	)	$	—	$	—		$	10,282	$	(3	)
Perpetual preferred stocks	—		—			1,072		(28		)	1,072		(28		)
Total equity securities	$	10,282	$	(3	)	$	1,072	$	(28	)	$	11,354	$	(31	)



December 31, 2016	Less than 12 months					12 months of greater					Total
December 31, 2016	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities
U.S. Government and government agencies	$	4,392	$	(95	)	$	—	$	—		$	4,392	$	(95	)
States, municipalities and political subdivisions	207,740		(3,858		)	—		—			207,740		(3,858		)
Foreign government	5,978		(402		)	—		—			5,978		(402		)
Residential mortgage-backed securities	54,385		(564		)	—		—			54,385		(564		)
Commercial mortgage-backed securities	13,159		(89		)	—		—			13,159		(89		)
Asset-backed securities	12,443		(572		)	—		—			12,443		(572		)
Corporate and other	147,653		(3,022		)	3,579		(4,032		)	151,232		(7,054		)
Total fixed maturity securities	$	445,750	$	(8,602	)	$	3,579	$	(4,032	)	$	449,329	$	(12,634	)
Equity securities
Common stocks	$	14,585	$	(1,371	)	$	—	$	—		$	14,585	$	(1,371	)
Perpetual preferred stocks	20,464		(578		)	—		—			20,464		(578		)
Total equity securities	$	35,049	$	(1,949	)	$	—	$	—		$	35,049	$	(1,949	)

As of September 30, 2017, investment grade fixed maturity securities (as determined by nationally recognized rating agencies) represented approximately 44.5% of the gross unrealized loss and 69.4% of the fair value. As of December 31, 2016, investment grade fixed maturity securities represented approximately 54.5% of the gross unrealized loss and 83.0% 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.

Other Invested Assets

Carrying values of other invested assets accounted for under cost and equity method are as follows (in thousands):



	September 30, 2017						December 31, 2016
	Cost Method		Equity Method		Fair Value		Cost Method		Equity Method		Fair Value
Common Equity	$	—	$	1,298	$	7,056	$	138	$	1,047	$	—
Preferred Equity	2,484		15,710		—		2,484		9,971		—
Derivatives	3,097		—		2,164		3,097		—		3,813
Limited Partnerships	—		733		—		—		1,116		—
Joint Ventures	—		58,919		—		—		40,697		—
Total	$	5,581	$	76,660	$	9,220	$	5,719	$	52,831	$	3,813

The Company recognized a gain of zero and a loss of $1.6 million on changes in the fair value of investments accounted for under ASC 815, Derivatives and Hedging ("ASC 815") during the three and nine months ended September 30, 2017, respectively and a gain of zero and $2.7 million in the fair value of an equity security accounted under ASC 825, Financial Instruments for the three and nine months ended September 30, 2017, respectively.

The Company recognized losses of $0.3 million and $1.9 million on changes in the fair value of investments accounted for under ASC 815 during the three and nine months ended September 30, 2016, respectively.

Summarized financial information for subsidiaries not consolidated for the nine months ended September 30, 2017 is as follows (information for two of the investees is reported on a one month lag, in thousands):



Net revenue	$	369,336
Gross profit	$	109,543
Income (loss) from continuing operations	$	(10,118	)
Net income (loss)	$	(31,453	)

Current assets	$	317,786
Noncurrent assets	$	189,278
Current liabilities	$	197,855
Noncurrent liabilities	$	152,879

Net Investment Income

The major sources of net investment income were as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Fixed maturity securities, available-for-sale at fair value	$	14,951		$	14,033		$	44,426		$	40,388
Equity securities, available-for-sale at fair value	578			430			1,827			1,526
Mortgage loans	447			120			1,475			155
Policy loans	289			312			878			876
Other invested assets	68			129			75			302
Gross investment income	16,333			15,024			48,681			43,247
External investment expense	(46		)	(225		)	(151		)	(662		)
Net investment income	$	16,287		$	14,799		$	48,530		$	42,585

Net Realized Gains (Losses) on Investments

The major sources of net realized gains (losses) on investments were as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Realized gains on fixed maturity securities	$	125		$	455		$	3,510		$	1,663
Realized losses on fixed maturity securities	(42		)	—			(959		)	(2,338		)
Realized gains on equity securities	265			154			375			438
Realized losses on equity securities	—			—			(31		)	(352		)
Net realized gains (losses) on derivative instruments	630			(829		)	(41		)	(1,925		)
Impairment loss	—			—			—			(163		)
Net realized gains (losses)	$	978		$	(220	)	$	2,854		$	(2,677	)

Fair Value of Financial Instruments

9 Months Ended

Sep. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

5. Fair Value of Financial Instruments

Assets by Hierarchy Level

Assets and liabilities measured at fair value on a recurring basis are summarized below (in thousands):



September 30, 2017			Fair Value Measurement Using:
September 30, 2017	Total		Level 1		Level 2		Level 3
Assets
Fixed maturity securities
U.S. Government and government agencies	$	15,713	$	5,115	$	10,598	$	—
States, municipalities and political subdivisions	392,958		—		387,066		5,892
Foreign government	5,912		—		5,912		—
Residential mortgage-backed securities	110,841		—		93,060		17,781
Commercial mortgage-backed securities	31,099		—		18,797		12,302
Asset-backed securities	127,988		—		14,823		113,165
Corporate and other	652,126		2,148		618,480		31,498
Total fixed maturity securities	1,336,637		7,263		1,148,736		180,638
Equity securities
Common stocks	10,562		8,192		—		2,370
Perpetual preferred stocks	38,484		9,858		22,525		6,101
Total equity securities	49,046		18,050		22,525		8,471
Derivatives	2,164		—		—		2,164
Common stocks - fair value option	7,056		7,056		—		—
Total assets accounted for at fair value	$	1,394,903	$	32,369	$	1,171,261	$	191,273



Liabilities
Warrant liability	$	3,091	$	—	$	—	$	3,091
Contingent liability	5,409		—		—		5,409
Other	1,326		—		—		1,326
Total liabilities accounted for at fair value	$	9,826	$	—	$	—	$	9,826



December 31, 2016			Fair Value Measurement Using:
December 31, 2016	Total		Level 1		Level 2		Level 3
Assets
Fixed maturity securities
U.S. Government and government agencies	$	15,950	$	5,140	$	10,778	$	32
States, municipalities and political subdivisions	375,077		—		369,387		5,690
Foreign government	5,978		—		5,978		—
Residential mortgage-backed securities	138,196		—		82,242		55,954
Commercial mortgage-backed securities	49,053		—		6,035		43,018
Asset-backed securities	77,665		—		4,448		73,217
Corporate and other	617,039		2,020		594,653		20,366
Total fixed maturity securities	1,278,958		7,160		1,073,521		198,277
Equity securities
Common stocks	14,865		10,290		—		4,575
Perpetual preferred stocks	36,654		9,312		27,342		—
Total equity securities	51,519		19,602		27,342		4,575
Derivatives	3,813		—		—		3,813
Total assets accounted for at fair value	$	1,334,290	$	26,762	$	1,100,863	$	206,665



Liabilities
Warrant liability	$	4,058	$	—	$	—	$	4,058
Contingent liability	11,411		—		—		11,411
Other	816		—		—		816
Total liabilities accounted for at fair value	$	16,285	$	—	$	—	$	16,285

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, or between other levels, at the beginning fair value for the reporting period in which the changes occur. There were no transfers between Level 1 and Level 2 during the three and nine months ended September 30, 2017. The Company transferred $1.1 million of corporate and other bonds and $0.5 million of preferred stock from Level 1 into Level 2 during the nine months ended September 30, 2016, reflecting the level of market activity in these instruments. There were no transfers between Level 1 and Level 2 during the three months ended September 30, 2016.

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 $22.5 million and out of Level 3 of $57.0 million, primarily related to structured securities, during the three and nine months ended September 30, 2017, respectively. The Company’s assessment resulted in a net transfer out of Level 3 of $0.6 million and net transfer into Level 3 of $2.4 million during the three and nine months ended September 30, 2016, respectively.

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.

Derivatives. The balance consists of common stock purchase warrants and call options. The fair values of the call options are primarily based on quoted market prices in active markets and are classified within Level 1 in the fair value hierarchy. Depending on the terms, the common stock warrants were valued using either Black-Scholes analysis or Monte Carlo Simulation. Fair value was determined using unobservable market inputs, including volatility and underlying security values. As such, the common stock purchase warrants were classified as Level 3.

Warrant Liability. The balance represents warrants issued in connection with the acquisition of the Insurance business and recorded within other liabilities on the Consolidated Balance Sheets. Fair value was determined using the Monte Carlo Simulation because the adjustments for exercise price and warrant shares represent path dependent features; the exercise price from comparable periods needs to be known to determine whether a subsequent sale of shares occurs at a price that is lower than the then current exercise price. The analysis entails a Geometric Brownian Motion based simulation of 100 unique price paths of the Company's stock for each combination of assumptions. Fair value was determined using unobservable market inputs, including volatility, and a range of assumptions regarding a possibility of an equity capital raise each year and the expected size of future equity capital raises. The present value of a given simulated scenario was based on intrinsic value at expiration discounted to the valuation date, taking into account any adjustments to the exercise price or warrant shares issuable. The average present value across all 100 independent price paths represents the estimate of fair value for each combination of assumptions. Therefore, the warrant liability was classified as Level 3.

Contingent Liability. The balance represents the present value of the estimated obligation pursuant to the acquisition of the Insurance business. Fair value was determined using unobservable market inputs, including probability of rate increases as approved by state regulators. The liability was classified as Level 3.

Level 3 Measurements and Transfers

The following tables summarize changes to the Company’s financial instruments carried at fair value and classified within Level 3 of the fair value hierarchy for the three and nine months ended September 30, 2017 and 2016, respectively (in thousands):



				Total realized/unrealized gains (losses) included in
	Balance at June 30, 2017				Net earnings (loss)			Other comp. income (loss)				Purchases and issuances		Sales and settlements				Transfer to Level 3		Transfer out of Level 3			Balance at September 30, 2017
Assets
Fixed maturity securities
States, municipalities and political subdivisions		$	7,511		$	(3	)		$	(100	)	$	116		$	—		$	—	$	(1,632	)	$	5,892
Residential mortgage-backed securities		18,486			21				22			—			(921		)	1,041		(868		)	17,781
Commercial mortgage-backed securities		3,754			(4		)		1			—			(69		)	8,620		—			12,302
Asset-backed securities		119,598			97				572			15,780			(23,947		)	1,065		—			113,165
Corporate and other		20,539			(5		)		(1,202		)	4,310			(15		)	9,294		(1,423		)	31,498
Total fixed maturity securities		169,888			106				(707		)	20,206			(24,952		)	20,020		(3,923		)	180,638
Equity securities
Common stocks		2,090			—				—			—			—			280		—			2,370
Perpetual preferred stocks		—			—				—			—			—			6,101		—			6,101
Total equity securities		2,090			—				—			—			—			6,381		—			8,471
Derivatives		2,155			9				—			—			—			—		—			2,164
Total financial assets		$	174,133		$	115			$	(707	)	$	20,206		$	(24,952	)	$	26,401	$	(3,923	)	$	191,273



				Total realized/unrealized (gains) losses included in
	Balance at June 30, 2017			Net (earnings) loss			Other comp. (income) loss			Purchases and issuances		Sales and settlements			Transfer to Level 3		Transfer out of Level 3		Balance at September 30, 2017
Liabilities
Warrant liability		$	4,091	$	(1,000	)		$	—	$	—		$	—	$	—	$	—	$	3,091
Contingent liability		11,730		(6,321		)		—		—			—		—		—		5,409
Other		1,042		284				—		—			—		—		—		1,326
Total financial liabilities		$	16,863	$	(7,037	)		$	—	$	—		$	—	$	—	$	—	$	9,826



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2016				Net earnings (loss)			Other comp. income (loss)				Purchases and issuances		Sales and settlements				Transfer to Level 3		Transfer out of Level 3			Balance at September 30, 2017
Assets
Fixed maturity securities
U.S. Government and government agencies		$	32		$	—			$	—		$	—		$	(17	)	$	—	$	(15	)	$	—
States, municipalities and political subdivisions		5,690			(2		)		(144		)	344			—			1,636		(1,632		)	5,892
Residential mortgage-backed securities		55,954			(720		)		901			3,465			(7,283		)	3,203		(37,739		)	17,781
Commercial mortgage-backed securities		43,018			111				76			—			(10,083		)	8,620		(29,440		)	12,302
Asset-backed securities		73,217			1,147				880			97,051			(48,461		)	1,065		(11,734		)	113,165
Corporate and other		20,366			(3,329		)		3,670			12,244			(4,133		)	10,606		(7,926		)	31,498
Total fixed maturity securities		198,277			(2,793		)		5,383			113,104			(69,977		)	25,130		(88,486		)	180,638
Equity securities
Common stocks		4,576			(2,842		)		356			—			—			280		—			2,370
Perpetual preferred stocks		—			—				—			—			—			6,101		—			6,101
Total equity securities		4,576			(2,842		)		356			—			—			6,381		—			8,471
Derivatives		3,813			(1,649		)		—			—			—			—		—			2,164
Total financial assets		$	206,666		$	(7,284	)		$	5,739		$	113,104		$	(69,977	)	$	31,511	$	(88,486	)	$	191,273



				Total realized/unrealized (gains) losses included in
	Balance at December 31, 2016			Net (earnings) loss			Other comp. (income) loss			Purchases and issuances		Sales and settlements			Transfer to Level 3		Transfer out of Level 3		Balance at September 30, 2017
Liabilities
Warrant liability		$	4,058	$	(967	)		$	—	$	—		$	—	$	—	$	—	$	3,091
Contingent liability		11,411		(6,002		)		—		—			—		—		—		5,409
Other		816		510				—		—			—		—		—		1,326
Total financial liabilities		$	16,285	$	(6,459	)		$	—	$	—		$	—	$	—	$	—	$	9,826



				Total realized/unrealized gains (losses) included in
	Balance at June 30, 2016			Net earnings (loss)			Other comp. income (loss)				Purchases and issuances		Sales and settlements				Transfer to Level 3			Transfer out of Level 3			Balance at September 30, 2016
Assets
Fixed maturity securities
U.S. Government and government agencies		$	58	$	—			$	—		$	—		$	(26	)		$	—	$	—			$	32
States, municipalities and political subdivisions		5,864		102				3			—			—				—		—				5,969
Residential mortgage-backed securities		62,289		(422		)		525			—			(2,973		)		8,686		(8,105		)		60,000
Commercial mortgage-backed securities		57,563		(269		)		(19		)	—			(7,378		)		2,629		(2,247		)		50,279
Asset-backed securities		54,217		85				1,454			10,337			(720		)		1,387		(16		)		66,744
Corporate and other		16,661		(108		)		550			7,899			(1,145		)		—		(2,969		)		20,888
Total fixed maturity securities		196,652		(612		)		2,513			18,236			(12,242		)		12,702		(13,337		)		203,912
Equity securities																								—
Common stocks		4,826		—				—			—			—				—		—				4,826
Total equity securities		4,826		—				—			—			—				—		—				4,826
Derivatives		5,318		(94		)		(694		)	230			(48		)		—		—				4,712
Contingent asset		2,813		(89		)		—			—			—				—		—				2,724
Total financial assets		$	209,609	$	(795	)		$	1,819		$	18,466		$	(12,290	)		$	12,702	$	(13,337	)		$	216,174



				Total realized/unrealized (gains) losses included in
	Balance at June 30, 2016			Net (earnings) loss			Other comp. (income) loss			Purchases and issuances		Sales and settlements			Transfer to Level 3			Transfer out of Level 3		Balance at September 30, 2016
Liabilities
Warrant liability		$	2,772	$	739			$	—	$	—		$	—		$	—	$	—		$	3,511
Contingent liability		2,218		(1,470		)		—		—			—			—		—			748
Other		—		—				—		1,490			—			—		—			1,490
Total financial liabilities		$	4,990	$	(731	)		$	—	$	1,490		$	—		$	—	$	—		$	5,749



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2015			Net earnings (loss)			Other comp. income (loss)				Purchases and issuances		Sales and settlements				Transfer to Level 3			Transfer out of Level 3			Balance at September 30, 2016
Assets
Fixed maturity securities
U.S. Government and government agencies		$	73	$	—			$	2		$	—		$	(43	)		$	—	$	—			$	32
States, municipalities and political subdivisions		5,659		302				8			—			—				—		—				5,969
Residential mortgage-backed securities		79,019		(2,105		)		910			—			(10,988		)		16,569		(23,405		)		60,000
Commercial mortgage-backed securities		60,525		(760		)		920			—			(12,394		)		9,779		(7,791		)		50,279
Asset-backed securities		27,653		140				2,176			43,405			(14,742		)		13,808		(5,696		)		66,744
Corporate and other		13,944		50				479			8,499			(1,206		)		2,091		(2,969		)		20,888
Total fixed maturity securities		186,873		(2,373		)		4,495			51,904			(39,373		)		42,247		(39,861		)		203,912
Equity securities																								—
Common stocks		4,932		—				(106		)	—			—				—		—				4,826
Total equity securities		4,932		—				(106		)	—			—				—		—				4,826
Derivatives		4,211		(1,119		)		1,438			230			(48		)		—		—				4,712
Contingent asset		—		(268		)		—			2,992			—				—		—				2,724
Total financial assets		$	196,016	$	(3,760	)		$	5,827		$	55,126		$	(39,421	)		$	42,247	$	(39,861	)		$	216,174



				Total realized/unrealized (gains) losses included in
	Balance at December 31, 2015			Net (earnings) loss			Other comp. (income) loss			Purchases and issuances		Sales and settlements			Transfer to Level 3			Transfer out of Level 3		Balance at September 30, 2016
Liabilities
Warrant liability		$	4,332	$	(821	)		$	—	$	—		$	—		$	—	$	—		$	3,511
Contingent liability		—		(1,841		)		—		2,589			—			—		—			748
Other		—		—				—		1,490			—			—		—			1,490
Total financial liabilities		$	4,332	$	(2,662	)		$	—	$	4,079		$	—		$	—	$	—		$	5,749

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, accounts receivable, costs and recognized earnings in excess of billings, accounts payable, accrued expenses, billings in excess of costs and recognized earnings, and other current assets and liabilities approximate fair value due to relatively short periods to maturity (in thousands):



September 30, 2017					Fair Value Measurement Using:
September 30, 2017	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	26,427	$	26,428	$	—	$	—	$	26,428
Policy loans	18,038		18,038		—		18,038		—
Other invested assets	5,581		3,617		—		—		3,617
Total assets not accounted for at fair value	$	50,046	$	48,083	$	—	$	18,038	$	30,045
Liabilities
Annuity benefits accumulated ⁽¹⁾	$	245,054	$	242,153	$	—	$	—	$	242,153
Long-term obligations ⁽²⁾	447,624		455,432		—		455,432		—
Total liabilities not accounted for at fair value	$	692,678	$	697,585	$	—	$	455,432	$	242,153



December 31, 2016					Fair Value Measurement Using:
December 31, 2016	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	16,831	$	16,832	$	—	$	—	$	16,832
Policy loans	18,247		18,247		—		18,247		—
Other invested assets	5,719		4,597		—		—		4,597
Total assets not accounted for at fair value	$	40,797	$	39,676	$	—	$	18,247	$	21,429
Liabilities
Annuity benefits accumulated ⁽¹⁾	$	251,270	$	249,372	$	—	$	—	$	249,372
Long-term obligations ⁽²⁾	378,780		376,081		—		376,081		—
Total liabilities not accounted for at fair value	$	630,050	$	625,453	$	—	$	376,081	$	249,372

⁽¹⁾Excludes life contingent annuities in the payout phase.

⁽²⁾ Excludes certain lease obligations accounted for under ASC 840, 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.

Policy Loans. The policy loans are reported at the unpaid principal balance and carry a fixed interest rate. The Company determined that the carrying value approximates fair value because (i) policy loans present no credit risk as the amount of the loan cannot exceed the obligation due upon the death of the insured or surrender of the underlying policy; (ii) there is no active market for policy loans (i.e., there is no commonly available exit price to determine the fair value of policy loans in the open market); (iii) policy loans are intricately linked to the underlying policy liability and, in many cases, policy loan balances are recovered through offsetting the loan balance against the benefits paid under the policy; and (iv) policy loans can be repaid by policyholders at any time, and this prepayment uncertainty reduces the potential impact of a difference between amortized cost (carrying value) and fair value. The valuation of policy loans is considered Level 2 in the fair value hierarchy.

Other Invested Assets. The balance primarily includes common stock purchase warrants. The fair values were derived using Black-Scholes analysis using unobservable market inputs, including volatility and underlying security values; therefore, the common stock purchase warrants were classified as Level 3.

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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Accounts Receivable

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Accounts Receivable

6. Accounts Receivable

Accounts receivable consist of the following (in thousands):



	September 30, 2017			December 31, 2016
Contracts in progress	$	122,457		$	121,666
Unbilled retentions	42,714			35,069
Trade receivables	103,554			113,380
Other receivables	383			1,102
Allowance for doubtful accounts	(4,026		)	(3,619		)
Total accounts receivable	$	265,082		$	267,598

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Recoverable from Reinsurers

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Recoverable from Reinsurers

7. Recoverable from Reinsurers

The following table presents information for the Company's recoverable from reinsurers (in thousands):



		September 30, 2017				December 31, 2016
Reinsurer	A.M. Best Rating	Amount		% of Total		Amount		% of Total
Loyal American Life Insurance Co (Cigna)	A-	$	141,427	26.6	%	$	139,269	26.5	%
Great American Life Insurance Co	A	48,597		9.2	%	46,965		9.0	%
Hannover Life Reassurance Co	A+	340,655		64.2	%	337,967		64.5	%
Total		$	530,679	100.0	%	$	524,201	100.0	%

Property, Plant and Equipment, net

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment, net

8. Property, Plant and Equipment, net

Property, plant and equipment consist of the following (in thousands):



	September 30, 2017		December 31, 2016
Land	$	23,376	$	21,006
Building and leasehold improvements	28,255		31,713
Plant and transportation equipment	5,087		5,551
Cable-ships and submersibles	174,057		169,034
Equipment, furniture and fixtures, and software	110,918		101,421
Construction in progress	26,111		19,889
	367,804		348,614
Less: Accumulated depreciation	85,739		62,156
	$	282,065	$	286,458

Depreciation expense was $9.1 million and $7.5 million for the three months ended September 30, 2017 and 2016, respectively. These amounts included $1.3 million of depreciation expense within cost of revenue for each of the three months ended September 30, 2017 and 2016.

Depreciation expense was $25.9 million and $21.4 million for the nine months ended September 30, 2017 and 2016, respectively. These amounts included $3.8 million and $3.0 million of depreciation expense within cost of revenue for the nine months ended September 30, 2017 and 2016, respectively. For the nine months ended September 30, 2016, the Company corrected the cumulative effect of an adjustment related to purchase accounting associated with the acquisition of DBMG in May 2014. See Note 2 for further details.

As of September 30, 2017 and December 31, 2016, total net book value of equipment under capital leases consisted of $46.5 million and $51.0 million of cable-ships and submersibles, respectively.

In June 2017, we recorded an impairment of $1.2 million in connection with our Other segment, driven by NerVve, where computer software and other fixed assets were written down to zero as a result of deteriorated business conditions. This impairment charge is included in Other operating (income) expenses in our Condensed Consolidated Statements of Operations for the nine months ended September 30, 2017.

Goodwill and Intangibles, net

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangibles, net

9. Goodwill and Intangibles, net

Goodwill

The changes in the carrying amount of goodwill by segment are as follows (in thousands):



	Construction			Marine Services		Energy			Telecom		Insurance		Life Sciences		Other			Total
Balance at December 31, 2016		$	36,317	$	2,468	$	2,631		$	3,378	$	47,290	$	3,620	$	2,382		$	98,086
Measurement period adjustment		—		—		(509		)	—		—		—		—			(509		)
Impairments		—		—		—			—		—		—		(587		)	(587		)
Balance at September 30, 2017		$	36,317	$	2,468	$	2,122		$	3,378	$	47,290	$	3,620	$	1,795		$	96,990

An interim goodwill impairment evaluation was performed on each reporting unit as of September 30, 2017. On an annual basis, the Company performs a step 0 analysis. After considering all quantitative and qualitative factors, other than noted below, the Company has determined that it is more likely than not that the reporting units' fair values exceed carrying values as of the period end.

During the second quarter of 2017, the Company concluded that a step 1 test of goodwill for the Other segment was necessary. This conclusion was based on certain indicators of impairment related to NerVve's deteriorated business conditions. The Company estimated the fair value of the NerVve reporting unit, using the income approach, at an implied fair value of goodwill of $0 and an impairment charge of $0.6 million. This impairment charge is included in Other operating (income) expenses in our Consolidated Statements of Operations for the nine months ended September 30, 2017.

Indefinite-lived Intangible Assets

The acquisition of the Insurance Company resulted in state licenses which are considered indefinite-lived intangible assets not subject to amortization. In addition, the consolidation of BeneVir in 2016 resulted in the recording of an in-process research and development intangible asset not subject to amortization. Balances of these assets as of September 30, 2017 were as follows:



	Total
State licenses	$	2,450
Developed technology	6,392
Total	$	8,842

Definite Lived Intangible Assets

The gross carrying amount and accumulated amortization of amortizable intangible assets by major intangible asset class is as follows:



	Weighted-Average Original Useful Life	September 30, 2017							December 31, 2016
	Weighted-Average Original Useful Life	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Trade names	9 Years	$	13,011	$	(4,235	)	$	8,776	$	13,004	$	(3,113	)	$	9,891
Customer relationships	12 Years	20,865		(4,057		)	16,808		20,865		(2,194		)	18,671
Developed technology	5 Years	4,739		(4,192		)	547		4,739		(3,197		)	1,542
Other	3 Years	966		(158		)	808		787		(11		)	776
Total		$	39,581	$	(12,642	)	$	26,939	$	39,395	$	(8,515	)	$	30,880

Amortization expense for amortizable intangible assets for the three months ended September 30, 2017 and 2016 was $1.4 million and $0.9 million, respectively, and $4.1 million and $2.8 million for the nine months ended September 30, 2017 and 2016, respectively, and was included in Depreciation and amortization in the Consolidated Statements of Operations.

Excluding the impact of any future acquisitions or change in foreign currency, the Company estimates annual amortization expense of amortizable intangible assets for the next five fiscal years will be as follows:



Fiscal Year	Estimated Amortization Expense
2018	$	(3,254	)
2019	$	(3,001	)
2020	$	(2,879	)
2021	$	(2,698	)
2022	$	(2,610	)

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Life, Accident and Health Reserves

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Life, Accident and Health Reserves

10. Life, Accident and Health Reserves

Life, accident and health reserves consist of the following (in thousands):



	September 30, 2017		December 31, 2016
Long-term care insurance reserves	$	1,442,586	$	1,407,848
Traditional life insurance reserves	100,076		102,077
Other accident and health insurance reserves	140,906		138,640
Total life, accident and health reserves	$	1,683,568	$	1,648,565

The following table sets forth changes in the liability for claims for the portion of our long-term care insurance reserves in scope of the ASU 2015-09 disclosure requirements (in thousands):



	Nine Months Ended September 30,
	2017			2016
Beginning balance	$	226,970		$	208,150
Less: recoverable from reinsurers	(97,858		)	(94,041		)
Beginning balance, net	129,112			114,109
Incurred related to insured events of:
Current year	44,611			39,258
Prior years	(1,449		)	(243		)
Total incurred	43,162			39,015
Paid related to insured events of:
Current year	(4,054		)	(3,965		)
Prior years	(30,505		)	(28,379		)
Total paid	(34,559		)	(32,344		)
Interest on liability for policy and contract claims	3,639			3,239
Ending balance, net	141,354			124,019
Add: recoverable from reinsurers	115,176			95,098
Ending balance	$	256,530		$	219,117

For the nine months ended September 30, 2017, the reserve was sufficient by $1.4 million, while for the same period last year, the reserve was sufficient by $0.2 million. The reserve sufficiency is being driven by claim terminations as the result of policyholder deaths that released significant reserves which is attributable to the normal volatility in the reserves, due to the number of claims that are currently open.

Accounts Payable and Other Current Liabilities

9 Months Ended

Sep. 30, 2017

Payables and Accruals [Abstract]

Accounts Payable and Other Current Liabilities

11. Accounts Payable and Other Current Liabilities

Accounts payable and other current liabilities consist of the following (in thousands):



	September 30, 2017		December 31, 2016
Accounts payable	$	70,180	$	66,792
Accrued interconnection costs	96,481		93,661
Accrued payroll and employee benefits	33,981		28,668
Accrued interest	14,723		3,056
Accrued income taxes	9,271		3,983
Accrued expenses and other current liabilities	70,460		55,573
Total accounts payable and other current liabilities	$	295,096	$	251,733

Long-term Obligations

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Long-term Obligations

12. Long-term Obligations

Long-term obligations consist of the following (in thousands):



	September 30, 2017			December 31, 2016
HC2
11.0% Senior Secured Notes, due in 2019	$	400,000		$	307,000
HC22
11.0% Senior Secured Bridge Note, due in 2019 (the "11.0% Bridge Notes")	—			35,000
GMSL
Notes payable and revolving lines of credit, various maturity dates	16,912			17,522
LIBOR plus 3.65% Notes, due in 2019	—			3,026
Obligations under capital leases	48,968			49,717
DBMG
LIBOR plus 2.5% Notes, due in 2018 and 2019	7,414			9,439
ANG
5.5% Term Loan, due in 2018	376			501
4.5% Note due in 2022⁽¹⁾	12,727			13,343
5.04% Term Loan due in 2022	13,717			—
4.25% Seller Note, due in 2022	2,463			2,796
LIBOR plus 3.0% Pioneer Demand Note	933			—
Other	246			75
Total	503,756			438,419
Issuance discount or premium and deferred financing costs, net	(7,164		)	(9,923		)
Total long-term obligations	$	496,592		$	428,496

⁽¹⁾ANG refinanced and consolidated all three of its loans with Pioneer during the first quarter of 2017.

HC2 and HC22 11.0% Senior Secured Notes

In January 2017, the Company issued an additional $55.0 million in aggregate principal amount of its 11.0% Senior Secured Notes due 2019 (the "11.0% Notes"). HC2 used a portion of the proceeds from the issuance to repay all $35.0 million in outstanding aggregate principal amount of HC22's 11.0% Bridge Notes.

In June 2017, the Company issued an additional $38.0 million of aggregate principal amount of the 11.0% Notes to investment funds affiliated with three institutional investors in a private placement offering. The Company expects to use the net proceeds from the issuance of the Notes for working capital for the Company and its subsidiaries, for general corporate purposes, as well as the financing of acquisitions and investments.

Since November 2014, the Company has issued an aggregate of $400.0 million of its 11.0% Notes pursuant to the indenture dated November 20, 2014, by and among HC2, the guarantors party thereto and U.S. Bank National Association, a national banking association, as trustee (the "11.0% Notes Indenture"). The 11.0% Notes Indenture contains certain covenants limiting, among other things, the ability of the Company and certain subsidiaries of the Company to incur additional indebtedness; create liens; engage in sale-leaseback transactions; pay dividends or make distributions in respect of capital stock and make certain restricted payments; sell assets; engage in transactions with affiliates; or consolidate or merge with, or sell substantially all of its assets to, another person. The 11.0% Notes Indenture also includes two maintenance covenants: (1) a liquidity covenant; and (2) a collateral coverage covenant. The 11.0% Notes Indenture contains customary events of default. The Company was in compliance with all covenants for the period. For additional information about the 11.0% Notes and 11.0% Notes Indenture please see our Form 10-K.

DBMG Credit Facilities

DBMG has a Credit and Security Agreement ("DBMG Facility") with Wells Fargo Credit, Inc. ("Wells Fargo"), pursuant to which 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 DBMG Facility has a floating interest rate based on LIBOR plus 2.0%, requires monthly interest payments, and matures in 2019. The DBMG Facility is secured by a first priority, perfected security interest in all of DBMG’s and its present and future subsidiaries' assets, excluding real estate, and a second priority, perfected security interest in all of DBMG’s real estate. The security agreements pursuant to which DBMG’s assets are pledged prohibit any further pledge of such assets without the written consent of the bank. The DBMG Facility contains various restrictive covenants. At September 30, 2017, DBMG was in compliance with these covenants.

On May 6, 2014, DBMG entered into an amendment to the DBMG Facility, pursuant to which Wells Fargo extended the maturity date of the DBMG Facility to April 30, 2019, lowered the interest rate charged in connection with borrowings under the DBMG Facility, all as disclosed above, and allowed for the issuance of additional loans in the form of notes totaling up to $5.0 million, secured by its real estate as a separate tranche under the DBMG Facility ("Real Estate Term Advance"). At September 30, 2017, DBMG had borrowed $2.9 million under the Real Estate Term Advance. The Real Estate Term Advance has a five year amortization period requiring monthly principal payments and a final balloon payment at maturity. The Real Estate Term Advance has a floating interest rate of LIBOR plus 2.5%, as amended in February 2017, and requires monthly interest payments.

The DBMG Facility allows for the issuance by DBMG of additional loans in the form of notes of up to $10.0 million, secured by its machinery and equipment ("Real Estate Term Advance (M&E)") and the issuance of a note payable of up to $5.0 million, secured by its real estate ("Real Estate Term Advance (Working Capital)"), each as separate tranches of debt under the DBMG Facility. At September 30, 2017 there was $4.5 million outstanding under the Real Estate Term Advance (M&E) and no borrowings outstanding under the Real Estate Term Advance (Working Capital).

In February 2017, DBMG decreased the floating interest rates of the DBMG Facility to LIBOR plus 2.0% and the Real Estate Term Advance to LIBOR plus 2.5%. DBMG also increased the amount of availability for letters of credit under the DBMG Facility to support increased bonding requirements for anticipated larger projects that will be part of this year's backlog. As of September 30, 2017, DBMG had $8.8 million in outstanding letters of credit issued under the DBMG Facility, of which zero has been drawn.

GMSL Capital Leases

GMSL is a party to two leases to finance the use of two vessels: the Innovator (the "Innovator Lease") and the Cable Retriever (the "Cable Lease," and together with the Innovator Lease, the "GMSL Leases"). The Innovator Lease was restructured effective May 31, 2016, extending the lease to 2025. The principal amount thereunder bears interest at the rate of approximately 10.4%. The Cable Lease expires in 2023. The principal amount thereunder bears interest at the rate of approximately 4.0%.

As of September 30, 2017, $49.0 million in aggregate principal amount remained outstanding under the GMSL Leases.

ANG Term Loan

In January 2017, ANG refinanced and consolidated all three of its loans with Pioneer into a new term loan. The $12.7 million in aggregate principal balance outstanding bears fixed interest at a fixed rate annually equal to 4.5% and matures in 2022. The agreement with Pioneer also includes a revolving demand note for $1.0 million with an annual renewal provision that bears interest at monthly LIBOR plus 3.0% (the "Pioneer Revolving Demand Note").

In May 2017, ANG entered into a term loan with M&T Bank. The loan bears fixed interest annually at 5.04% and matures in 2022. During the third quarter 2017, ANG refinanced the note to increase the term loan by $2.5 million. As of September 30, 2017, ANG had $13.7 million in aggregate principal outstanding under the loan.

In September 2017, ANG increased the availability under the 2017 the Pioneer Revolving Demand Note to $1.5 million. As of September 30, 2017, there was $0.9 million drawn under the Pioneer Revolving Demand Note.

For additional information on the Company’s long-term obligations, see Note 13. Long-term Obligations in the Company’s Form 10-K.

Income Taxes	9 Months Ended
Income Taxes	Sep. 30, 2017
Income Tax Disclosure [Abstract]
Income Taxes	13. Income Taxes Income Tax (Expense) Benefit The Company used the Annual Effective Tax Rate ("ETR") approach of ASC 740-270, Interim Reporting, to calculate its 2017 interim tax provision. Income tax was an expense of $12.9 million and a benefit of $1.3 million for the three months ended September 30, 2017 and 2016, respectively. The income tax expense recorded September 30, 2017 relates to increase in profitability of the Insurance Segment and the mix of income and losses by taxpaying entities, including the Insurance segment. The income tax benefit recorded for September 30, 2016 relates to losses generated for which we expected to obtain benefits from in the future. Income tax was an expense of $16.2 million and a benefit of $3.6 million for the nine months ended September 30, 2017 and 2016, respectively. The income tax expense recorded for September 30, 2017 relates to the projected expense as calculated under ASC 740 for taxpaying entities. Additionally, the tax benefits associated with losses generated by the HC2 Holdings, Inc. U.S. consolidated income tax return and certain other businesses have been reduced by a full valuation allowance as we do not believe it is more-likely-than-not that the losses will be utilized prior to expiration. The income tax benefit recorded for September 30, 2016 relates to losses generated for which we expected to obtain benefits from in the future based on our weighting of all positive and negative evidence that existed at the time. This benefit was partially offset by a valuation allowance recorded against the deferred tax assets of the Insurance segment during the first quarter of 2016. NOL Limitation As of December 31, 2016, the Company has a U.S. net operating loss carryforward available to reduce future taxable income in the amount of $95.3 million, of which $77.8 million is subject to an annual limitation under Section 382 of the Internal Revenue Code. Additionally, the Company has $21.6 million of U.S. net operating loss carryforwards from its subsidiaries that do not qualify to be included in the HC2 Holdings, Inc. U.S. consolidated income tax return. Unrecognized Tax Benefits The Company follows the provision of ASC 740-10, Income Taxes, which prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements uncertain tax positions that the Company has taken or expects to take on a tax return. The Company is subject to challenge from various taxing authorities relative to certain tax planning strategies, including certain intercompany transactions as well as regulatory taxes. Examinations The Company conducts business globally, and as a result, the Company or one or more of its subsidiaries files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. In the normal course of business the Company is subject to examination by taxing authorities throughout the world. The open tax years contain matters that could be subject to differing interpretations of applicable tax laws and regulations as they relate to the amount, character, timing or inclusion of revenue and expenses or the applicability of income tax credits for the relevant tax period. Given the nature of tax audits there is a risk that disputes may arise. Tax years 2006 - 2016 remain open for examination.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	14. Commitments and Contingencies 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. CGI Producer Litigation On November 28, 2016, Continental General Insurance Company ("CGI"), a subsidiary of the Company, Great American Financial Resource, Inc. ("GAFRI"), American Financial Group, Inc., and CIGNA Corporation were served with a putative class action complaint filed by John Fastrich and Universal Investment Services, Inc. in The United States District Court for the District of Nebraska alleging breach of contract, tortious interference with contract and unjust enrichment. The plaintiffs contend that they were agents of record under various CGI policies and that CGI allegedly instructed policyholders to switch to other CGI products and caused the plaintiffs to lose commissions, renewals, and overrides on policies that were replaced. The complaint also alleges breach of contract claims relating to allegedly unpaid commissions related to premium rate increases implemented on certain long-term care insurance policies. Finally, the complaint alleges breach of contract claims related to vesting of commissions. On August 21, the Court dismissed the plaintiffs’ tortious interference with contract claim. CGI believes that the remaining allegations and claims set forth in the complaint are without merit and intends to vigorously defend against them. Further, the Company and CGI are seeking defense costs and indemnification for plaintiffs’ claims from GAFRI and Continental General Corporation ("CGC") under the terms of an Amended and Restated Stock Purchase Agreement ("SPA") related to the Company’s acquisition of CGI in December 2015. GAFRI and CGC rejected CGI’s demand for defense and indemnification and, on January 18, 2017, the Company and CGI filed a Complaint against GAFRI and CGC in the Superior Court of Delaware seeking a declaratory judgment to enforce their indemnification rights under the SPA. On February 23, 2017, Great American answered CGI’s complaint, denying the allegations. The dispute is ongoing and CGI will continue to pursue its right to a defense and indemnity under the SPA. VAT assessment On February 20, 2017, and on August 15, 2017, the Company's subsidiary, ICS, received notices from Her Majesty’s Revenue and Customs office in the U.K. (the "HMRC") indicating that it was required to pay certain Value-Added Taxes ("VAT") for the 2015 and 2016 tax years. ICS disagrees with HMRC’s assessments on technical and factual grounds and intends to dispute the assessed liabilities and vigorously defend its interests. We do not believe the assessment to be probable and expect to prevail based on the facts and merits of our existing VAT position. DBMG Class Action On November 6, 2014, a putative stockholder class action complaint challenging the tender offer by which HC2 acquired approximately 721,000 of the issued and outstanding common shares of DBMG was filed in the Court of Chancery of the State of Delaware, captioned Mark Jacobs v. Philip A. Falcone, Keith M. Hladek, Paul Voigt, Michael R. Hill, Rustin Roach, D. Ronald Yagoda, Phillip O. Elbert, HC2 Holdings, Inc., and Schuff International, Inc., Civil Action No. 10323 (the "Complaint"). On November 17, 2014, a second lawsuit was filed in the Court of Chancery of the State of Delaware, captioned Arlen Diercks v. Schuff International, Inc. Philip A. Falcone, Keith M. Hladek, Paul Voigt, Michael R. Hill, Rustin Roach, D. Ronald Yagoda, Phillip O. Elbert, HC2 Holdings, Inc., Civil Action No. 10359. On February 19, 2015, the court consolidated the actions (now designated as Schuff International, Inc. Stockholders Litigation) and appointed lead plaintiff and counsel. The currently operative complaint is the Complaint filed by Mark Jacobs. The Complaint alleges, among other things, that in connection with the tender offer, the individual members of the DBMG Board of Directors and HC2, the now-controlling stockholder of DBMG, breached their fiduciary duties to members of the plaintiff class. The Complaint also purports to challenge a potential short-form merger based upon plaintiff’s expectation that the Company would cash out the remaining public stockholders of DBMG following the completion of the tender offer. The Complaint seeks rescission of the tender offer and/or compensatory damages, as well as attorney’s fees and other relief. The defendants filed answers to the Complaint on July 30, 2015. On February 24, 2017, the parties agreed to a framework for the potential settlement of the litigation. On February 28, 2017, the Court entered an order vacating the current scheduling order and directing the parties to submit a stipulation of settlement or status report to the Court by April 21, 2017. In late March 2017, plaintiff’s counsel took three depositions to assess the fairness of the potential settlement framework. From April 2017 to June 2017, plaintiff’s counsel continued to analyze the potential settlement framework and the facts and claims in the litigation. On July 17, 2017, plaintiff’s counsel submitted a status report to the Court stating that plaintiff’s counsel had determined to proceed with the prosecution of the action and had delivered a draft amended complaint to defendants. On July 20, 2017, plaintiff’s counsel submitted a status report to the Court stating that the parties had agreed to reengage in discussions regarding a possible settlement of the action. On August 31, 2017, plaintiff’s counsel submitted a status report to the Court stating that plaintiff had provided defendants with a settlement proposal and the parties intended to continue settlement negotiations. On September 29, 2017, plaintiff’s counsel submitted a status report to the Court stating that plaintiff anticipated receiving a settlement counterproposal from defendants and would evaluate the proposal before determining whether to continue potential settlement negotiations or file the amended complaint and proceed with briefing on defendants’ motions to dismiss and opposition to plaintiff’s class certification motion. On October 31, 2017, plaintiff’s counsel submitted a status report to the Court stating that defendants provided plaintiff with a counterproposal to plaintiff’s settlement proposal. Plaintiff and his counsel are evaluating the counterproposal and together with the defendants and their counsel intend to submit another status report to the Court by November 30, 2017. To date, no amended complaint has been filed in the action and settlement negotiations are continuing. There can be no assurance that a settlement will be finalized or that the Court would approve such a settlement even if the parties were to enter into a settlement stipulation or agreement. Global Marine Dispute GMSL is in dispute with Alcatel-Lucent Submarine Networks Limited ("ASN") related to a Marine Installation Contract between the parties, dated March 11, 2016 (the "ASN Contract"). Under the ASN Contract, GMSL's obligations were to install and bury an optical fiber cable in Prudhoe Bay, Alaska. As of the date hereof, neither party has commenced legal proceedings. Pursuant to the ASN Contract any such dispute would be governed by English law and would be required to be brought in the English courts in London. ASN has alleged that GMSL committed material breaches of the ASN Contract, which entitles ASN to terminate the ASN Contract, take over the work themselves, and claim damages for their losses arising as a result of the breaches. The alleged material breaches include failure to use appropriate equipment and procedures to perform the work and failure to accurately estimate the amount of weather downtime needed. ASN has indicated to GMSL it has incurred $30 million in damages and $1.2 million in liquidated damages for the period from September 2016 to October 2016, plus interest and costs. GMSL believes that it has not breached the terms and conditions of the contract and also believes that ASN has not properly terminated the contract in a manner that would allow it to make a claim. However, ASN has ceased making payments to GMSL and as of September 30, 2017, the total sum of GMSL invoices raised and issued are $17.0 million, of which $8.1 million were settled by ASN and the balance of $8.9 million remains at risk. We believe that the allegations and claims by ASN are without merit, and that ASN is required to make all payments under unpaid invoices and we intend to defend our interests vigorously. 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.

Employee Retirement Plans

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Employee Retirement Plans

15. Employee Retirement Plans

The following table presents the components of Net periodic benefit cost for the periods presented (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Service cost - benefits earning during the period	$	—		$	17		$	—		$	52
Interest cost on projected benefit obligation	1,403			1,878			4,209			5,633
Expected return on assets	(1,921		)	(1,991		)	(5,764		)	(5,974		)
Foreign currency gain (loss)	7			3			22			9
Net periodic benefit cost (income)	$	(511	)	$	(93	)	$	(1,533	)	$	(280	)

The Company previously disclosed in its financial statements for the year ended December 31, 2016 that it expected to contribute $8.8 million to its pension plans in 2017. As of September 30, 2017, $3.0 million of contributions have been made. Due to current funding levels, the Company does not anticipate contributing further funds to its pension plans in 2017.

Share-based Compensation

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation

16. 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.

The Restated 2014 Plan provides that no further awards will be granted pursuant to the 2014 Plan. However, awards previously granted under the 2014 Plan will continue to be subject to and governed by the terms of the 2014 Plan. The Compensation Committee of HC2's Board of Directors administers the 2014 Plan and the Restated 2014 Plan and has broad authority to administer, construe and interpret the plans.

The Restated 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 331,616 and 1,506,848 options during the nine months ended September 30, 2017 and 2016, respectively. Of the total options granted during the nine months ended September 30, 2016, 6,848 options were granted to Philip Falcone, pursuant to a standalone option agreement entered in connection with Mr. Falcone’s appointment as Chairman, President and Chief Executive Officer of the Company, and not pursuant to the Omnibus Plan. The anti-dilution protection provision contained in such standalone option agreement was canceled in April 2016 and replaced with an award consisting solely of 1,500,000 premium stock options issued under the Omnibus Plan.

The weighted average fair value at date of grant for options granted during the nine months ended September 30, 2017, and 2016 was $2.72 and $1.09, respectively, per option. The fair value of each option grant was estimated on the date of grant using the Black-Scholes option-pricing model with the following assumptions shown as a weighted average for the year:



	Nine Months Ended September 30,
	2017		2016
Expected option life (in years)	0.39 - 6.10		4.70 - 6.00
Risk-free interest rate	1.11 - 2.22%		1.27 - 1.35%
Expected volatility	47.04 - 48.29%		39.58 - 55.58%
Dividend yield	—	%	—	%

Total share-based compensation expense recognized by the Company and its subsidiaries under all equity compensation arrangements was $1.4 million and $1.8 million for the three months ended September 30, 2017 and 2016, respectively. Total share-based compensation expense recognized by the Company and its subsidiaries under all equity compensation arrangements was $4.0 million and $6.7 million for the nine months ended September 30, 2017 and 2016, respectively.

All grants are time based and vest either immediately or over a period of up to 3 years. 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, 2016	115,921		$	5.59
Granted	1,061,794		$	5.64
Vested	(317,663	)	$	5.37
Unvested - September 30, 2017	860,052		$	5.73

As of September 30, 2017, the unvested restricted stock represented $4.0 million of compensation expense that is expected to be recognized over the weighted average remaining vesting period of approximately 2.2 years. The number of shares of unvested restricted stock expected to vest is 860,052.

Stock Options

A summary of HC2’s stock option activity is as follows:



	Shares		Weighted Average Exercise Price
Outstanding - December 31, 2016	6,829,097		$	6.58
Granted	331,616		$	5.50
Exercised	(134,539	)	$	3.53
Forfeited	—		$	—
Expired	(36,318	)	$	9.00
Outstanding - September 30, 2017	6,989,856		$	6.57

Eligible for exercise	5,344,697		$	5.85

As of September 30, 2017, intrinsic value and average remaining life of the Company's outstanding options were $3.2 million and approximately 7.4 years, and intrinsic value and average remaining life of the Company's exercisable options were $3.2 million and approximately 7.1 years.

As of September 30, 2017, unvested stock options outstanding represented $1.6 million of compensation expense and are expected to be recognized over the weighted average remaining vesting period of 1.7 years. There are 1,645,159 unvested stock options expected to vest, with a weighted average remaining life of 8.4 years, a weighted average exercise price of $8.90, and an intrinsic value of zero.

Equity

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Equity

17. Equity

Series A Preferred Stock, Series A-1 Preferred Stock and Series A-2 Preferred Stock

The Company’s preferred shares authorized, issued and outstanding consisted of the following:



	September 30, 2017	December 31, 2016
Preferred shares authorized, $0.001 par value	20,000,000	20,000,000
Series A shares issued and outstanding	12,500	14,808
Series A-1 shares issued and outstanding	—	1,000
Series A-2 shares issued and outstanding	14,000	14,000

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 adopted 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 $4.25. Pursuant to the Series A-1 Certificate, each share of Series A-1 Preferred Stock is currently convertible at a conversion price of $4.25. Pursuant to the Series A-2 Certificate, each share of Series A-2 Preferred Stock is currently convertible at a conversion price of $7.80. 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 trading days out of the thirty trading day period used to calculate the thirty-day VWAP. In the event of a forced conversion, the holders of Preferred Stock will have the ability to elect cash settlement in lieu of conversion if certain market liquidity thresholds for the common stock are not achieved.

Liquidation Preference. The Series A Preferred Stock ranks at parity with the Series A-1 Preferred Stock and 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 and the initial purchasers of the Series A-1 Preferred Stock (collectively, the "Series A and Series A-1 Preferred Purchasers"), the holders of the shares of 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.

Board Rights. For so long as the Series A and Series A-1 Preferred Purchasers own at least a 15% interest in the Company on an as-converted basis and at least 80% of the shares of Preferred Stock issued to the Series A and Series A-1 Preferred Purchasers on an as-converted basis, the Series A and Series A-1 Preferred Purchasers will have the right to appoint and elect (voting as a separate class) a percentage of HC2's Board of Directors that is no more than 5% less than the Series A and Series A-1 Preferred Purchasers’ as-converted equity percentage of the common stock (but no fewer than one director). One such elected director (as designated by the holders of shares representing at least 75% of the Preferred Stock then outstanding) shall be entitled to be a member of each committee of the board of directors of the Company, provided, that such director membership on any such committee will be dependent upon such director meeting the qualification, and if applicable, independence criteria deemed necessary to so comply in accordance with any listing requirements of the exchanges on which the Company’s capital stock is then listed. For so long as the Director Election Condition is satisfied, if a specified breach event shall occur with respect to the Preferred Stock (defined for such purposes to include the failure to timely pay required dividends for two or more consecutive quarters or the occurrence and continuation of certain breaches of covenants contained in the Certificates of Designation), the holders of the Preferred Stock shall be entitled to appoint the number of additional directors to the board of directors of the Company that will cause a majority of the board of directors to be comprised of directors appointed by the holders of the Preferred Stock and independent directors until the cure of such specified breach event.

Participation Rights. Pursuant to the securities purchase agreements entered into with the initial purchasers of the Series A Preferred Stock, the Series A-1 Preferred Stock and the Series A-2 Preferred Stock, subject to meeting certain ownership thresholds, certain purchasers of the Series A Preferred Stock, the Series A-1 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, the Series A-1 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.

Preferred Share Conversions

DG Conversion

On May 2, 2017, the Company entered into an agreement with DG Value Partners, LP and DG Value Partners II Master Funds LP, holders (collectively, "DG Value") of the Company's Series A Preferred Stock and Series A-1 Preferred Stock, to convert and exchange all of DG Value's 2,308 shares of Series A Preferred Stock and 1,000 shares of Series A-1 Preferred Stock into a total of 803,469 shares of the Company's common stock. 17,500 shares of common stock issued in the conversion were issued as consideration for the agreement by DG Value to convert its Preferred Stock. The fair value of the 17,500 shares was $0.1 million 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.

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, that govern their respective Preferred Share Conversions. In the Corrib Preferred Share Conversion (i) Corrib converted 1,000 shares of Series A Preferred Stock into 238,492 shares of the Company’s common stock, and (ii) in consideration of Corrib making such conversion, HC2 issued 15,318 newly issued shares of common stock to Corrib (such shares, the "Corrib Conversion Share Consideration"). In the Luxor Preferred Share Conversion, (i) Luxor converted 9,000 shares of Series A-1 Preferred Stock into 2,119,765 shares of the common stock and (ii) in consideration of Luxor making such conversion, HC2 issued 136,149 newly issued shares of common stock to Luxor (such shares, the "Luxor Conversion Share Consideration" and, together with the Corrib Conversion Share Consideration, the "Conversion Share Consideration"). The fair value of the Conversion Share Consideration was $0.7 million 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.

The Company also 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.

Further, the Company agreed that it will issue to Corrib and Luxor, on each quarterly anniversary commencing May 29, 2017 (or, if later, the date on which the corresponding dividend payment is made to the holders of the outstanding Preferred Stock), through and until the Maturity Date (as defined in the respective Series A and Series A-1 Certificate of Designation), in a transaction exempt from the registration requirements of the Securities Act the number of shares of common stock equal to (a) 1.875% the Accrued Value (as defined in the respective Series A and Series A-1 Certificate of Designation) of Corrib’s or Luxor’s Preferred Stock as of the Closing Date (as defined in applicable Voluntary Conversion Agreements) divided by (b) the Thirty Day VWAP (as defined in the respective Series A and Series A-1 Certificate of Designation) for the period ending two business days prior to the applicable Dividend Payment Date (as defined in the respective Series A and Series A-1 Certificate of Designation).

For the nine months ended September 30, 2017, 10,139 and 1,141 shares of the Company's common stock have been issued to Luxor and Corrib, respectively, in conjunction with the Conversion agreement.

The fair value of the Additional Share Consideration was valued by the Company at $1.5 million 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.

Hudson Bay Conversion

On October 7, 2016, the Company entered into an agreement with Hudson Bay Absolute Return Credit Opportunities Master Fund, LTD. ("Hudson") to convert and exchange all of Hudson's 12,500 shares of the Company's Series A Convertible Participating Preferred Stock into a total of 3,751,838 shares of the Company's common stock.

Pursuant to the terms of the Series A Voluntary Conversion Agreement, HC2 and Hudson mutually agreed that on the closing date of the voluntary conversion, (i) Hudson voluntarily converted 12,499 of the 12,500 shares of Series A Preferred Stock it held into 2,980,912 shares of HC2’s common stock pursuant to the terms of the Certificate of Designation of Series A Convertible Participating Preferred Stock (the "Series A Certificate of Designation"), with such amount representing the number of shares of common stock into which the 12,499 shares of Series A Preferred Stock held by Hudson convertible pursuant to the terms of the Series A Certificate of Designation and (ii) in consideration of the conversion referenced in clause (i) above, the Company issued to the Series A holder in exchange for the single remaining share of Series A Preferred Stock held, in an exchange transaction exempt from the registration requirements of the Securities Act of 1933 and all of the rules and regulations promulgated thereunder (the "Securities Act") under Section 3(a)(9) of the Securities Act, 770,926 shares of common stock. The fair value of the 770,926 shares was $4.4 million 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 2017, HC2's Board of Directors declared cash dividends with respect to HC2’s issued and outstanding Preferred Stock, as presented in the following table (in thousands):

Declaration Date

March 31, 2017

June 30, 2017

September 30, 2017

Holders of Record Date

March 31, 2017

June 30, 2017

September 30, 2017

Payment Date

April 17, 2017

July 17, 2017

October 16, 2017

Total Dividend

563

500

Related Parties

9 Months Ended

Sep. 30, 2017

Related Parties

18. Related Parties

HC2

In January 2015, the Company entered into a services agreement (the "Services Agreement") with Harbinger Capital Partners, a related party of the Company, with respect to the provision of services that may include providing office space and operational support and each party making available their respective employees to provide services as reasonably requested by the other party, subject to any limitations contained in applicable employment agreements and the terms of the Services Agreement. The Company recognized $1.2 million of expenses under the Services Agreement for each of the three months ended September 30, 2017 and 2016, respectively, and $3.1 million and $2.7 million of expenses for the nine months ended September 30, 2017 and 2016, respectively.

GMSL

The parent company of GMSL, Global Marine Holdings, LLC, incurred management fees of $0.1 million and $0.2 million for the three months ended September 30, 2017 and 2016, respectively, and $0.5 million for each of the nine months ended September 30, 2017 and 2016, respectively.

GMSL also has investments in various entities for which it exercises significant influence. A summary of transactions with such entities and balances outstanding are as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net revenue	$	4,174	$	14,409	$	16,271	$	25,904
Operating expenses	$	1,258	$	945	$	6,089	$	3,102
Interest expense	$	351	$	377	$	1,047	$	1,130
Dividends	$	2,027	$	—	$	2,659	$	418



	September 30, 2017		December 31, 2016
Accounts receivable	$	3,975	$	2,644
Long-term obligations	$	35,300	$	34,766
Accounts payable	$	2,375	$	2,760

Life Sciences

R2 accrued $2.0 million related to a milestone. Of the $2.0 million, $1.5 million will be paid to Blossom Innovations, LLC, a related party.

Operating Segment and Related Information

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Operating Segment and Related Information

19. Operating Segment and Related Information

The Company currently has two primary reportable geographic segments - United States and United Kingdom. The Company has seven reportable operating segments based on management’s organization of the enterprise - Construction, Marine Services, Energy, Telecommunications, Insurance, Life Sciences, Other, and a non-operating Corporate segment. Net revenue and long-lived assets by geographic segment is reported on the basis of where the entity is domiciled. All inter-segment revenues are eliminated. The Company has no single customer representing greater than 10% of its revenues.

Summary information with respect to the Company’s geographic and operating segments is as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net Revenue by Geographic Region
United States	$	358,743	$	272,395	$	1,039,252	$	768,849
United Kingdom	42,233		139,981		112,958		332,318
Other	5,433		708		23,419		2,954
Total	$	406,409	$	413,084	$	1,175,629	$	1,104,121



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net revenue
Construction	$	151,697		$	129,551		$	403,325		$	372,964
Marine Services	42,817			50,653			123,382			116,298
Energy	3,919			1,664			12,301			4,151
Telecommunications	167,881			194,411			520,214			508,248
Insurance	37,737			34,546			112,032			99,847
Other	2,358			2,259			4,375			2,613
Total net revenue	406,409			413,084			1,175,629			1,104,121

Income (loss) from operations
Construction	12,198			12,339			25,911			35,421
Marine Services	(181		)	4,794			(1,726		)	(214		)
Energy	(1,161		)	149			(1,784		)	59
Telecommunications	1,374			2,218			5,023			3,434
Insurance	17,476			(338		)	20,704			(5,916		)
Life Sciences	(6,437		)	(2,538		)	(13,167		)	(7,282		)
Other	(1,383		)	(2,318		)	(7,164		)	(6,583		)
Non-operating Corporate	(11,321		)	(7,452		)	(27,455		)	(25,337		)
Total income (loss) from operations	10,565			6,854			342			(6,418		)

Interest expense	(13,222		)	(10,719		)	(39,410		)	(31,614		)
Gain on contingent consideration	6,320			1,381			6,001			1,573
Income from equity investees	971			335			12,667			3,153
Other expenses, net	(97		)	(4,584		)	(8,112		)	(5,793		)
Income (loss) from continuing operations before income taxes	4,537			(6,733		)	(28,512		)	(39,099		)
Income tax (expense) benefit	(12,861		)	1,334			(16,167		)	3,649
Net loss	(8,324		)	(5,399		)	(44,679		)	(35,450		)
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interest	2,357			841			6,305			2,365
Net loss attributable to HC2 Holdings, Inc.	(5,967		)	(4,558		)	(38,374		)	(33,085		)
Less: Preferred stock and deemed dividends from conversions	703			2,948			2,079			5,061
Net loss attributable to common stock and participating preferred stockholders	$	(6,670	)	$	(7,506	)	$	(40,453	)	$	(38,146	)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Depreciation and Amortization
Construction	$	1,314		$	431		$	4,194		$	1,263
Marine Services	6,221			5,554			16,561			16,793
Energy	1,247			582			3,876			1,479
Telecommunications	94			144			285			389
Insurance ⁽¹⁾	(1,319		)	(1,162		)	(3,440		)	(2,902		)
Life Sciences	50			32			129			87
Other	272			380			933			1,054
Non-operating Corporate	17			—			50			—
Total	$	7,896		$	5,961		$	22,588		$	18,163

⁽¹⁾ Balance represents amortization of negative VOBA, which increases net income.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Capital Expenditures ⁽²⁾
Construction	$	2,517	$	1,506	$	9,729	$	5,317
Marine Services	3,463		5,682		8,195		9,480
Energy	2,099		103		6,540		5,420
Telecommunications	7		254		47		574
Insurance	—		—		383		—
Life Sciences	197		14		395		144
Other	4		27		17		38
Non-operating Corporate	18		214		18		219
Total	$	8,305	$	7,800	$	25,324	$	21,192

⁽²⁾The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.



	September 30,			December 31,
	2017			2016
Investments
Construction	$	1,050		$	—
Marine Services	57,870			40,698
Insurance	1,468,738			1,407,996
Life Sciences	19,087			13,067
Other	5,071			6,778
Eliminations	(30,207		)	(40,621		)
Total	$	1,521,609		$	1,427,918



	September 30,		December 31,
	2017		2016
Property, Plant and Equipment—Net
United States	$	140,892	$	136,905
United Kingdom	134,867		141,946
Other	6,306		7,607
Total	$	282,065	$	286,458



	September 30,			December 31,
	2017			2016
Total Assets
Construction	$	299,727		$	295,246
Marine Services	291,464			275,660
Energy	86,892			84,602
Telecommunications	123,257			125,965
Insurance	2,101,706			2,027,059
Life Sciences	32,711			28,868
Other	11,900			10,914
Non-operating Corporate	53,894			27,583
Eliminations	(30,207		)	(40,621		)
Total	$	2,971,344		$	2,835,276

Backlog	9 Months Ended
Backlog	Sep. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Backlog	20. Backlog DBMG includes projects in backlog which consist of awarded contracts, letters of intent, notices to proceed and purchase orders obtained. At September 30, 2017, DBMG's backlog was $656.1 million, consisting of $483.4 million under contracts or purchase orders and $172.7 million under letters of intent or notices to proceed. Approximately $408.1 million, representing 62.2% of DBMG’s backlog at September 30, 2017, was attributable to five contracts, letters of intent, notices to proceed or purchase orders. If one or more of these projects terminate or reduce their scope, DBMG’s backlog could decrease substantially. DBMG’s backlog at December 31, 2016 was $503.5 million, consisting of $441.1 million under contracts or purchase orders and $62.4 million under letters of intent or notices to proceed.

Basic and Diluted Loss Per Common Share

9 Months Ended

Sep. 30, 2017

Earnings Per Share [Abstract]

Basic and Diluted Loss Per Common Share

21. Basic and Diluted Loss 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.

The Company had no dilutive common share equivalents during the three and nine months ended September 30, 2017 and 2016, due to the results of operations being a loss from continuing operations, net of tax. The Company issued a warrant, Preferred Stock, as well as outstanding stock options and unvested RSUs granted under the Prior Plan and Omnibus Plan, each of which were potentially dilutive but were excluded from the calculation of diluted loss per common share due to their antidilutive effect.

The following table presents a reconciliation of net income (loss) used in basic and diluted EPS calculations (in thousands, except per share amounts):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net loss attributable to common stock and participating preferred stockholders	$	(6,670	)	$	(7,506	)	$	(40,453	)	$	(38,146	)

Earnings allocable to common shares:
Numerator for basic and diluted earnings per share
Participating shares at end of period:
Weighted-average Common stock outstanding	43,013			36,627			42,555			35,808

Percentage of loss allocated to:
Common Stock	100		%	100		%	100		%	100		%
Preferred Stock	—		%	—		%	—		%	—		%

Loss attributable to common shares - basic and diluted
Net Loss	$	(6,670	)	$	(7,506	)	$	(40,453	)	$	(38,146	)

Denominator for basic and diluted earnings per share
Weighted average common shares outstanding - basic and diluted	43,013			36,627			42,555			35,808

Basic and Diluted earnings per share
Net loss attributable to common stock and participating preferred stockholders - basic and diluted	$	(0.16	)	$	(0.20	)	$	(0.95	)	$	(1.07	)

Subsequent Events	9 Months Ended
Subsequent Events	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	22. Subsequent Events The Company evaluated subsequent events from September 30, 2017 through November 8, 2017, the date the Condensed Consolidated Financial Statements were issued, and noted the following: Fugro In October 2017, Global Marine Group, an operating subsidiary of the Company, announced that it had entered into an agreement with Fugro N.V. ("Fugro") under which, subject to closing conditions, GMSL will acquire Fugro's trenching and cable lay services business. The purchase consideration, valued at approximately $73 million, consists of the issuance to a subsidiary of Fugro of a 23.6% equity interest in Global Marine Holdings LLC (the parent company of GMSL) valued at $65 million, and an obligation of GMSL to pay Fugro $7.5 million within one year pursuant to a secured loan to be incurred by GMSL from a subsidiary of Fugro, which loan bears interest, payable quarterly, at 4% per annum through December 31, 2017, and at 10% per annum thereafter, and matures 365 days following the Acquisition. One of the assets acquired, a Q1400 Trenching System, will serve as collateral security for the repayment of the loan pursuant to the terms of a lien agreement. DTV Holdings In June 2017, HC2 announced an agreement to enter into a series of transactions that, once completed, will result in HC2 and its subsidiaries owning over 50% of the shares of common stock of DTV America Corporation ("DTV"). Approval by the Federal Communications Commission ("FCC") was received on October 31, 2017. Mako Communications In September 2017, HC2 announced that a subsidiary of the Company agreed to enter into an agreement with Mako Communications, LLC and certain of its affiliates ("Mako") to purchase all the assets in connection with Mako’s ownership and operation of LPTV stations that,once completed, will result in HC2 acquiring 38 operating stations in 28 cities. Approval by the FCC was received on October 26, 2017. Three Angels Broadcasting Network, Inc. In October 2017, the Company entered into an asset purchase agreement with Three Angels Broadcasting Network, Inc. to purchase all of its assets in connection with its ownership and operation of Class A Low Power Television ("LPTV") stations that, if approved by the FCC, will result in HC2 acquiring 14 operating stations for a total consideration of $9.6 million. Humana In November 2017, CGI entered into a Stock Purchase Agreement (the “SPA”) with Humana, Inc., a publicly traded company incorporated in Delaware (“Humana”). Pursuant to the SPA, CGI agreed to acquire Kanawha Insurance Company (“KIC”), Humana’s long-term care insurance subsidiary (the “Transaction”). The obligation of each party to consummate the Transaction is subject to customary closing conditions, including, among others, Humana furnishing certain audited financial statements of the business to be acquired, receipt of regulatory approvals by the South Carolina and Texas insurance departments, customary conditions relating to the accuracy of the other party’s representations and warranties (subject to certain materiality exceptions) and the other party having performed in all material respects its obligations under the SPA. Debt On or about November 9, 2017, the Company expects to sign a $75 million bridge loan to finance acquisitions in the low power broadcast television distribution market. Once completed, the Company will file an 8-K which will include the final terms of the loan. Dividends As announced on November 1, 2017, DBMG will pay a cash dividend of $1.29 per share on November 29, 2017 to stockholders of record at the close of business on November 15, 2017. HC2 is expected to received $4.5 million of the $5.0 million dividend payout.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Sep. 30, 2017
Accounting Policies [Abstract]
Use of Estimates and Assumptions	Use of Estimates and Assumptions The preparation of the Company’s Condensed Consolidated Financial Statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates and assumptions used.
Recent Accounting Pronouncements	New Accounting Pronouncements The Company has implemented all new accounting pronouncements that are in effect and that may impact its Condensed Consolidated Financial Statements and does not believe that there are any other new accounting pronouncements that have been issued that might have a material impact on its financial condition, results of operations or liquidity. Accounting Pronouncements Early Adopted During the Fiscal Year Testing for Goodwill Impairment In January 2017, the FASB issued ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. Topic 350, Intangibles - Goodwill and Other (Topic 350), currently requires an entity that has not elected the private company alternative for goodwill to perform a two-step test to determine the amount, if any, of goodwill impairment. In Step 1, an entity compares the fair value of a reporting unit with its carrying amount, including goodwill. If the carrying amount of the reporting unit exceeds its fair value, the entity performs Step 2 and compares the implied fair value of goodwill with the carrying amount of the goodwill for that reporting unit. An impairment charge equal to the amount by which the carrying amount of goodwill for the reporting unit exceeds the implied fair value of that goodwill is recorded, limited to the amount of goodwill allocated to that reporting unit. To address concerns over the cost and complexity of the two-step goodwill impairment test, the amendments in this ASU remove the second step of the test. An entity will now apply a one-step quantitative test and record the amount of goodwill impairment as the excess of a reporting unit's carrying amount over its fair value, not to exceed the total amount of goodwill allocated to the reporting unit. The new guidance does not amend the optional qualitative assessment of goodwill impairment. The Company elected to early adopt ASU 2017-04 effective March 31, 2017, resulting in no impact to the Condensed Consolidated Financial Statements. New Accounting Pronouncements Revenue Recognition In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). This ASU supersedes the revenue recognition requirements in Revenue Recognition (Topic 605). Under the new guidance, an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In March 2016, the FASB issued ASU 2016-08, Revenue from Contracts with Customers (Topic 606): Principal Versus Agent Considerations, which clarifies the guidance in ASU 2014-09. In April 2016, the FASB issued ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing, an update on identifying performance obligations and accounting for licenses of intellectual property. In May 2016, the FASB issued ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients, which includes amendments for enhanced clarification of the guidance. In December 2016, the FASB issued ASU 2016-20, Technical Corrections and Improvements to Revenue from Contracts with Customers (Topic 606), which includes amendments of a similar nature to the items typically addressed in the technical corrections and improvements project. Lastly, in February 2017, the FASB issued ASU 2017-05, clarifying the scope of asset derecognition guidance and accounting for partial sales of nonfinancial assets to clarify the scope of ASC 610-20, Other Income - Gains and Losses from Derecognition of Nonfinancial Assets, and provide guidance on partial sales of nonfinancial assets. This ASU clarifies that the unit of account under ASU 610-20 is each distinct nonfinancial or in substance nonfinancial asset and that a financial asset that meets the definition of an "in substance nonfinancial asset" is within the scope of ASC 610-20. This ASU eliminates rules specifically addressing sales of real estate and removes exceptions to the financial asset derecognition model. The ASUs described above are effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. The Company anticipates adopting the new standard effective January 1, 2018. Although the Company is still in the process of evaluating the full impact of the new standard on its financial statements, at this stage of the process, it expects to apply the modified retrospective transition method and does not believe the adoption of ASU 2014-09 will have a significant impact on the amount or timing of its revenues. Material revenue streams were identified and representative contract/transaction types were sampled. Performance obligations identified within each material revenue stream were evaluated to determine whether the obligations were satisfied at a point in time or over time. The evaluation of miscellaneous revenue streams, updating internal controls and the related qualitative disclosures regarding the potential impact of the effects of the accounting policies and a comparison to the Company’s current revenue recognition policies will continue during the fourth quarter of 2017. Instruments with down round feature In July 2017, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Updates ("ASU") 2017-11 Earnings Per Share (Topic 260) Distinguishing Liabilities from Equity (Topic 480) Derivatives and Hedging (Topic 815), which changes the classification analysis of certain equity-linked financial instruments (or embedded features) with down round features. When determining whether certain financial instruments should be classified as liabilities or equity instruments, a down round feature no longer precludes equity classification when assessing whether the instrument is indexed to an entity’s own stock. ASU 2017-11 also clarifies existing disclosure requirements for equity-classified instruments. As a result, a freestanding equity-linked financial instrument (or embedded conversion option) no longer would be accounted for as a derivative liability at fair value as a result of the existence of a down round feature. For freestanding equity classified financial instruments, ASU 2017-11 requires entities that present earnings per share (EPS) in accordance with ASC Topic 260 to recognize the effect of the down round feature when it is triggered. That effect is treated as a dividend and as a reduction of income available to common shareholders in basic EPS. For the Company, ASU 2017-11 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The Company is currently evaluating the implementation date and the impact of this amendment on its financial statements. Subsequent Events ASC 855, Subsequent Events ("ASC 855"), establishes general standards of accounting and disclosure of events that occur after the balance sheet date but before financial statements are issued or available to be issued. ASC 855 requires HC2 to evaluate events that occur after the balance date as of which HC2's financial statements are issued, and to determine whether adjustments to or additional disclosures in the financial statements are necessary. HC2 has evaluated subsequent events through the date these financial statements were issued. See Note 22. Subsequent Events for the summary of the subsequent events.

Business Combinations (Tables)

9 Months Ended

Sep. 30, 2017

Business Combinations [Abstract]

Schedule of Purchase Price Allocation

For the two transactions accounted for as asset acquisitions the preliminary fair value of consideration transferred was preliminarily allocated based on the relative fair value (in thousands):



Purchase price allocation
Accounts receivable	$	1,303
Property, plant and equipment, net	43,267
Goodwill	748
Intangibles	4,984
Other assets	79
Total assets acquired	50,381
Accounts payable and other current liabilities	(898		)
Deferred tax liability	(7,086		)
Total liabilities assumed	(7,984		)
Bargain purchase gain	(340		)
Total net assets acquired	$	42,057

The following table summarizes the allocation of the purchase price to the fair value of identifiable assets acquired, liabilities assumed, intangibles and residual goodwill (in thousands):



Purchase price allocation
Cash and cash equivalents	$	2,963
Restricted cash	3
Accounts receivable	6,400
Inventory	528
Property, plant and equipment, net	29,896
Goodwill	5,541
Intangibles	7,082
Other assets	2,051
Total assets acquired	54,464
Accounts payable and other current liabilities	(11,180		)
Deferred tax liability	(2,819		)
Long-term obligations	(20,813		)
Other liabilities	(3		)
Noncontrolling interest	(815		)
Total liabilities assumed	(35,630		)
Enterprise value	18,834
Less fair value of noncontrolling interest	3,889
Total net assets acquired	$	14,945

Fair value of consideration transferred and its allocation among the identified assets acquired, liabilities assumed, intangibles and residual goodwill are summarized as follows (in thousands):



Purchase price allocation
Cash and cash equivalents	$	621
Accounts receivable, net	5,558
Costs and recognized earnings in excess of billings on uncompleted contracts	1,686
Property, plant and equipment, net	8,043
Goodwill	11,827
Intangibles	3,955
Other assets	1,209
Total assets acquired	32,899
Accounts payable and other current liabilities	(5,924		)
Billings in excess of costs and recognized earnings on uncompleted contracts	(617		)
Deferred tax liability	(169		)
Other liabilities	(685		)
Total liabilities assumed	(7,395		)
Total net assets acquired	$	25,504

Investments (Tables)

9 Months Ended

Sep. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of Fixed Maturity and Equity Securities Available-for-Sale

The following tables provide information relating to investments in fixed maturity and equity securities (in thousands):



September 30, 2017	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Fixed maturity securities
U.S. Government and government agencies	$	15,318	$	407	$	(12	)	$	15,713
States, municipalities and political subdivisions	378,057		16,170		(1,269		)	392,958
Foreign government	6,343		—		(431		)	5,912
Residential mortgage-backed securities	107,249		4,765		(1,173		)	110,841
Commercial mortgage-backed securities	30,668		434		(3		)	31,099
Asset-backed securities	125,777		2,559		(348		)	127,988
Corporate and other	609,137		44,592		(1,603		)	652,126
Total fixed maturity securities	$	1,272,549	$	68,927	$	(4,839	)	$	1,336,637
Equity securities
Common stocks	$	10,565	$	—	$	(3	)	$	10,562
Perpetual preferred stocks	37,002		1,510		(28		)	38,484
Total equity securities	$	47,567	$	1,510	$	(31	)	$	49,046



December 31, 2016	Amortized Cost		Unrealized Gains		Unrealized Losses			Fair Value
Fixed maturity securities
U.S. Government and government agencies	$	15,910	$	135	$	(95	)	$	15,950
States, municipalities and political subdivisions	374,527		4,408		(3,858		)	375,077
Foreign government	6,380		—		(402		)	5,978
Residential mortgage-backed securities	136,126		2,634		(564		)	138,196
Commercial mortgage-backed securities	48,715		427		(89		)	49,053
Asset-backed securities	76,303		1,934		(572		)	77,665
Corporate and other	600,458		23,635		(7,054		)	617,039
Total fixed maturity securities	$	1,258,419	$	33,173	$	(12,634	)	$	1,278,958
Equity securities
Common stocks	$	16,236	$	—	$	(1,371	)	$	14,865
Perpetual preferred stocks	37,041		191		(578		)	36,654
Total equity securities	$	53,277	$	191	$	(1,949	)	$	51,519

Schedule of Maturities of Fixed Maturity Securities Available-for-Sale



	Amortized Cost		Fair Value
Corporate, Municipal, U.S. Government and Other securities
Due in one year or less	$	36,381	$	36,153
Due after one year through five years	95,783		98,739
Due after five years through ten years	166,415		171,875
Due after ten years	710,276		759,942
Subtotal	1,008,855		1,066,709
Mortgage-backed securities	137,917		141,940
Asset-backed securities	125,777		127,988
Total	$	1,272,549	$	1,336,637

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 thousands):



	September 30, 2017						December 31, 2016
	Amortized Cost		Fair Value		% of Total		Amortized Cost		Fair Value		% of Total
Finance, insurance, and real estate	$	199,777	$	210,783	32.3	%	$	214,911	$	211,834	34.3	%
Transportation, communication and other services	181,389		193,954		29.7	%	180,647		189,163		30.7	%
Manufacturing	111,030		120,060		18.4	%	112,644		118,440		19.2	%
Other	116,941		127,329		19.6	%	92,256		97,602		15.8	%
Total	$	609,137	$	652,126	100.0	%	$	600,458	$	617,039	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 recorded the following (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net realized gains (losses) on investments	$	—	$	—	$	—	$	163
Other expenses, net	—		1,473		6,111		2,451
Total Other-Than-Temporary Impairments	$	—	$	1,473	$	6,111	$	2,614

Schedule of Unrealized Losses for Fixed Maturities and Equity Securities



	September 30, 2017					December 31, 2016
	Unrealized Losses			% of Total		Unrealized Losses			% of Total
Fixed maturity and equity securities
Less than 20%	$	(4,710	)	96.7	%	$	(10,069	)	69.0	%
20% or more for less than six months	—			—	%	(482		)	3.3	%
20% or more for six months or greater	(160		)	3.3	%	(4,032		)	27.7	%
Total	$	(4,870	)	100.0	%	$	(14,583	)	100.0	%

Schedule of Estimated Fair Value and Gross Unrealized Loss



September 30, 2017	Less than 12 months					12 months of greater					Total
September 30, 2017	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities
U.S. Government and government agencies	$	6,994	$	(12	)	$	—	$	—		$	6,994	$	(12	)
States, municipalities and political subdivisions	62,682		(1,269		)	—		—			62,682		(1,269		)
Foreign government	—		—			5,913		(431		)	5,913		(431		)
Residential mortgage-backed securities	18,524		(1,003		)	10,429		(170		)	28,953		(1,173		)
Commercial mortgage-backed securities	1,132		(3		)	—		—			1,132		(3		)
Asset-backed securities	13,932		(130		)	6,178		(218		)	20,110		(348		)
Corporate and other	56,178		(1,567		)	883		(36		)	57,061		(1,603		)
Total fixed maturity securities	$	159,442	$	(3,984	)	$	23,403	$	(855	)	$	182,845	$	(4,839	)
Equity securities
Common stocks	$	10,282	$	(3	)	$	—	$	—		$	10,282	$	(3	)
Perpetual preferred stocks	—		—			1,072		(28		)	1,072		(28		)
Total equity securities	$	10,282	$	(3	)	$	1,072	$	(28	)	$	11,354	$	(31	)



December 31, 2016	Less than 12 months					12 months of greater					Total
December 31, 2016	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
Fixed maturity securities
U.S. Government and government agencies	$	4,392	$	(95	)	$	—	$	—		$	4,392	$	(95	)
States, municipalities and political subdivisions	207,740		(3,858		)	—		—			207,740		(3,858		)
Foreign government	5,978		(402		)	—		—			5,978		(402		)
Residential mortgage-backed securities	54,385		(564		)	—		—			54,385		(564		)
Commercial mortgage-backed securities	13,159		(89		)	—		—			13,159		(89		)
Asset-backed securities	12,443		(572		)	—		—			12,443		(572		)
Corporate and other	147,653		(3,022		)	3,579		(4,032		)	151,232		(7,054		)
Total fixed maturity securities	$	445,750	$	(8,602	)	$	3,579	$	(4,032	)	$	449,329	$	(12,634	)
Equity securities
Common stocks	$	14,585	$	(1,371	)	$	—	$	—		$	14,585	$	(1,371	)
Perpetual preferred stocks	20,464		(578		)	—		—			20,464		(578		)
Total equity securities	$	35,049	$	(1,949	)	$	—	$	—		$	35,049	$	(1,949	)

Schedule of Other Invested Assets

Carrying values of other invested assets accounted for under cost and equity method are as follows (in thousands):



	September 30, 2017						December 31, 2016
	Cost Method		Equity Method		Fair Value		Cost Method		Equity Method		Fair Value
Common Equity	$	—	$	1,298	$	7,056	$	138	$	1,047	$	—
Preferred Equity	2,484		15,710		—		2,484		9,971		—
Derivatives	3,097		—		2,164		3,097		—		3,813
Limited Partnerships	—		733		—		—		1,116		—
Joint Ventures	—		58,919		—		—		40,697		—
Total	$	5,581	$	76,660	$	9,220	$	5,719	$	52,831	$	3,813

Summarized Information for Equity Method Investments



Net revenue	$	369,336
Gross profit	$	109,543
Income (loss) from continuing operations	$	(10,118	)
Net income (loss)	$	(31,453	)

Current assets	$	317,786
Noncurrent assets	$	189,278
Current liabilities	$	197,855
Noncurrent liabilities	$	152,879

Net Investment Income

The major sources of net investment income were as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Fixed maturity securities, available-for-sale at fair value	$	14,951		$	14,033		$	44,426		$	40,388
Equity securities, available-for-sale at fair value	578			430			1,827			1,526
Mortgage loans	447			120			1,475			155
Policy loans	289			312			878			876
Other invested assets	68			129			75			302
Gross investment income	16,333			15,024			48,681			43,247
External investment expense	(46		)	(225		)	(151		)	(662		)
Net investment income	$	16,287		$	14,799		$	48,530		$	42,585

Net Realized Gain (Loss) on Investments

The major sources of net realized gains (losses) on investments were as follows (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Realized gains on fixed maturity securities	$	125		$	455		$	3,510		$	1,663
Realized losses on fixed maturity securities	(42		)	—			(959		)	(2,338		)
Realized gains on equity securities	265			154			375			438
Realized losses on equity securities	—			—			(31		)	(352		)
Net realized gains (losses) on derivative instruments	630			(829		)	(41		)	(1,925		)
Impairment loss	—			—			—			(163		)
Net realized gains (losses)	$	978		$	(220	)	$	2,854		$	(2,677	)

Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2017

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 thousands):



September 30, 2017			Fair Value Measurement Using:
September 30, 2017	Total		Level 1		Level 2		Level 3
Assets
Fixed maturity securities
U.S. Government and government agencies	$	15,713	$	5,115	$	10,598	$	—
States, municipalities and political subdivisions	392,958		—		387,066		5,892
Foreign government	5,912		—		5,912		—
Residential mortgage-backed securities	110,841		—		93,060		17,781
Commercial mortgage-backed securities	31,099		—		18,797		12,302
Asset-backed securities	127,988		—		14,823		113,165
Corporate and other	652,126		2,148		618,480		31,498
Total fixed maturity securities	1,336,637		7,263		1,148,736		180,638
Equity securities
Common stocks	10,562		8,192		—		2,370
Perpetual preferred stocks	38,484		9,858		22,525		6,101
Total equity securities	49,046		18,050		22,525		8,471
Derivatives	2,164		—		—		2,164
Common stocks - fair value option	7,056		7,056		—		—
Total assets accounted for at fair value	$	1,394,903	$	32,369	$	1,171,261	$	191,273



Liabilities
Warrant liability	$	3,091	$	—	$	—	$	3,091
Contingent liability	5,409		—		—		5,409
Other	1,326		—		—		1,326
Total liabilities accounted for at fair value	$	9,826	$	—	$	—	$	9,826



December 31, 2016			Fair Value Measurement Using:
December 31, 2016	Total		Level 1		Level 2		Level 3
Assets
Fixed maturity securities
U.S. Government and government agencies	$	15,950	$	5,140	$	10,778	$	32
States, municipalities and political subdivisions	375,077		—		369,387		5,690
Foreign government	5,978		—		5,978		—
Residential mortgage-backed securities	138,196		—		82,242		55,954
Commercial mortgage-backed securities	49,053		—		6,035		43,018
Asset-backed securities	77,665		—		4,448		73,217
Corporate and other	617,039		2,020		594,653		20,366
Total fixed maturity securities	1,278,958		7,160		1,073,521		198,277
Equity securities
Common stocks	14,865		10,290		—		4,575
Perpetual preferred stocks	36,654		9,312		27,342		—
Total equity securities	51,519		19,602		27,342		4,575
Derivatives	3,813		—		—		3,813
Total assets accounted for at fair value	$	1,334,290	$	26,762	$	1,100,863	$	206,665



Liabilities
Warrant liability	$	4,058	$	—	$	—	$	4,058
Contingent liability	11,411		—		—		11,411
Other	816		—		—		816
Total liabilities accounted for at fair value	$	16,285	$	—	$	—	$	16,285

Schedule of Changes in Balances of Level 3 Financial Assets at Fair Value



				Total realized/unrealized gains (losses) included in
	Balance at June 30, 2017				Net earnings (loss)			Other comp. income (loss)				Purchases and issuances		Sales and settlements				Transfer to Level 3		Transfer out of Level 3			Balance at September 30, 2017
Assets
Fixed maturity securities
States, municipalities and political subdivisions		$	7,511		$	(3	)		$	(100	)	$	116		$	—		$	—	$	(1,632	)	$	5,892
Residential mortgage-backed securities		18,486			21				22			—			(921		)	1,041		(868		)	17,781
Commercial mortgage-backed securities		3,754			(4		)		1			—			(69		)	8,620		—			12,302
Asset-backed securities		119,598			97				572			15,780			(23,947		)	1,065		—			113,165
Corporate and other		20,539			(5		)		(1,202		)	4,310			(15		)	9,294		(1,423		)	31,498
Total fixed maturity securities		169,888			106				(707		)	20,206			(24,952		)	20,020		(3,923		)	180,638
Equity securities
Common stocks		2,090			—				—			—			—			280		—			2,370
Perpetual preferred stocks		—			—				—			—			—			6,101		—			6,101
Total equity securities		2,090			—				—			—			—			6,381		—			8,471
Derivatives		2,155			9				—			—			—			—		—			2,164
Total financial assets		$	174,133		$	115			$	(707	)	$	20,206		$	(24,952	)	$	26,401	$	(3,923	)	$	191,273



				Total realized/unrealized (gains) losses included in
	Balance at June 30, 2017			Net (earnings) loss			Other comp. (income) loss			Purchases and issuances		Sales and settlements			Transfer to Level 3		Transfer out of Level 3		Balance at September 30, 2017
Liabilities
Warrant liability		$	4,091	$	(1,000	)		$	—	$	—		$	—	$	—	$	—	$	3,091
Contingent liability		11,730		(6,321		)		—		—			—		—		—		5,409
Other		1,042		284				—		—			—		—		—		1,326
Total financial liabilities		$	16,863	$	(7,037	)		$	—	$	—		$	—	$	—	$	—	$	9,826



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2016				Net earnings (loss)			Other comp. income (loss)				Purchases and issuances		Sales and settlements				Transfer to Level 3		Transfer out of Level 3			Balance at September 30, 2017
Assets
Fixed maturity securities
U.S. Government and government agencies		$	32		$	—			$	—		$	—		$	(17	)	$	—	$	(15	)	$	—
States, municipalities and political subdivisions		5,690			(2		)		(144		)	344			—			1,636		(1,632		)	5,892
Residential mortgage-backed securities		55,954			(720		)		901			3,465			(7,283		)	3,203		(37,739		)	17,781
Commercial mortgage-backed securities		43,018			111				76			—			(10,083		)	8,620		(29,440		)	12,302
Asset-backed securities		73,217			1,147				880			97,051			(48,461		)	1,065		(11,734		)	113,165
Corporate and other		20,366			(3,329		)		3,670			12,244			(4,133		)	10,606		(7,926		)	31,498
Total fixed maturity securities		198,277			(2,793		)		5,383			113,104			(69,977		)	25,130		(88,486		)	180,638
Equity securities
Common stocks		4,576			(2,842		)		356			—			—			280		—			2,370
Perpetual preferred stocks		—			—				—			—			—			6,101		—			6,101
Total equity securities		4,576			(2,842		)		356			—			—			6,381		—			8,471
Derivatives		3,813			(1,649		)		—			—			—			—		—			2,164
Total financial assets		$	206,666		$	(7,284	)		$	5,739		$	113,104		$	(69,977	)	$	31,511	$	(88,486	)	$	191,273



				Total realized/unrealized (gains) losses included in
	Balance at December 31, 2016			Net (earnings) loss			Other comp. (income) loss			Purchases and issuances		Sales and settlements			Transfer to Level 3		Transfer out of Level 3		Balance at September 30, 2017
Liabilities
Warrant liability		$	4,058	$	(967	)		$	—	$	—		$	—	$	—	$	—	$	3,091
Contingent liability		11,411		(6,002		)		—		—			—		—		—		5,409
Other		816		510				—		—			—		—		—		1,326
Total financial liabilities		$	16,285	$	(6,459	)		$	—	$	—		$	—	$	—	$	—	$	9,826



				Total realized/unrealized gains (losses) included in
	Balance at June 30, 2016			Net earnings (loss)			Other comp. income (loss)				Purchases and issuances		Sales and settlements				Transfer to Level 3			Transfer out of Level 3			Balance at September 30, 2016
Assets
Fixed maturity securities
U.S. Government and government agencies		$	58	$	—			$	—		$	—		$	(26	)		$	—	$	—			$	32
States, municipalities and political subdivisions		5,864		102				3			—			—				—		—				5,969
Residential mortgage-backed securities		62,289		(422		)		525			—			(2,973		)		8,686		(8,105		)		60,000
Commercial mortgage-backed securities		57,563		(269		)		(19		)	—			(7,378		)		2,629		(2,247		)		50,279
Asset-backed securities		54,217		85				1,454			10,337			(720		)		1,387		(16		)		66,744
Corporate and other		16,661		(108		)		550			7,899			(1,145		)		—		(2,969		)		20,888
Total fixed maturity securities		196,652		(612		)		2,513			18,236			(12,242		)		12,702		(13,337		)		203,912
Equity securities																								—
Common stocks		4,826		—				—			—			—				—		—				4,826
Total equity securities		4,826		—				—			—			—				—		—				4,826
Derivatives		5,318		(94		)		(694		)	230			(48		)		—		—				4,712
Contingent asset		2,813		(89		)		—			—			—				—		—				2,724
Total financial assets		$	209,609	$	(795	)		$	1,819		$	18,466		$	(12,290	)		$	12,702	$	(13,337	)		$	216,174



				Total realized/unrealized (gains) losses included in
	Balance at June 30, 2016			Net (earnings) loss			Other comp. (income) loss			Purchases and issuances		Sales and settlements			Transfer to Level 3			Transfer out of Level 3		Balance at September 30, 2016
Liabilities
Warrant liability		$	2,772	$	739			$	—	$	—		$	—		$	—	$	—		$	3,511
Contingent liability		2,218		(1,470		)		—		—			—			—		—			748
Other		—		—				—		1,490			—			—		—			1,490
Total financial liabilities		$	4,990	$	(731	)		$	—	$	1,490		$	—		$	—	$	—		$	5,749



				Total realized/unrealized gains (losses) included in
	Balance at December 31, 2015			Net earnings (loss)			Other comp. income (loss)				Purchases and issuances		Sales and settlements				Transfer to Level 3			Transfer out of Level 3			Balance at September 30, 2016
Assets
Fixed maturity securities
U.S. Government and government agencies		$	73	$	—			$	2		$	—		$	(43	)		$	—	$	—			$	32
States, municipalities and political subdivisions		5,659		302				8			—			—				—		—				5,969
Residential mortgage-backed securities		79,019		(2,105		)		910			—			(10,988		)		16,569		(23,405		)		60,000
Commercial mortgage-backed securities		60,525		(760		)		920			—			(12,394		)		9,779		(7,791		)		50,279
Asset-backed securities		27,653		140				2,176			43,405			(14,742		)		13,808		(5,696		)		66,744
Corporate and other		13,944		50				479			8,499			(1,206		)		2,091		(2,969		)		20,888
Total fixed maturity securities		186,873		(2,373		)		4,495			51,904			(39,373		)		42,247		(39,861		)		203,912
Equity securities																								—
Common stocks		4,932		—				(106		)	—			—				—		—				4,826
Total equity securities		4,932		—				(106		)	—			—				—		—				4,826
Derivatives		4,211		(1,119		)		1,438			230			(48		)		—		—				4,712
Contingent asset		—		(268		)		—			2,992			—				—		—				2,724
Total financial assets		$	196,016	$	(3,760	)		$	5,827		$	55,126		$	(39,421	)		$	42,247	$	(39,861	)		$	216,174



				Total realized/unrealized (gains) losses included in
	Balance at December 31, 2015			Net (earnings) loss			Other comp. (income) loss			Purchases and issuances		Sales and settlements			Transfer to Level 3			Transfer out of Level 3		Balance at September 30, 2016
Liabilities
Warrant liability		$	4,332	$	(821	)		$	—	$	—		$	—		$	—	$	—		$	3,511
Contingent liability		—		(1,841		)		—		2,589			—			—		—			748
Other		—		—				—		1,490			—			—		—			1,490
Total financial liabilities		$	4,332	$	(2,662	)		$	—	$	4,079		$	—		$	—	$	—		$	5,749

Schedule of Financial Instruments Measured at Fair Value on Nonrecurring Basis



September 30, 2017					Fair Value Measurement Using:
September 30, 2017	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	26,427	$	26,428	$	—	$	—	$	26,428
Policy loans	18,038		18,038		—		18,038		—
Other invested assets	5,581		3,617		—		—		3,617
Total assets not accounted for at fair value	$	50,046	$	48,083	$	—	$	18,038	$	30,045
Liabilities
Annuity benefits accumulated ⁽¹⁾	$	245,054	$	242,153	$	—	$	—	$	242,153
Long-term obligations ⁽²⁾	447,624		455,432		—		455,432		—
Total liabilities not accounted for at fair value	$	692,678	$	697,585	$	—	$	455,432	$	242,153



December 31, 2016					Fair Value Measurement Using:
December 31, 2016	Carrying Value		Estimated Fair Value		Level 1		Level 2		Level 3
Assets
Mortgage loans	$	16,831	$	16,832	$	—	$	—	$	16,832
Policy loans	18,247		18,247		—		18,247		—
Other invested assets	5,719		4,597		—		—		4,597
Total assets not accounted for at fair value	$	40,797	$	39,676	$	—	$	18,247	$	21,429
Liabilities
Annuity benefits accumulated ⁽¹⁾	$	251,270	$	249,372	$	—	$	—	$	249,372
Long-term obligations ⁽²⁾	378,780		376,081		—		376,081		—
Total liabilities not accounted for at fair value	$	630,050	$	625,453	$	—	$	376,081	$	249,372

⁽¹⁾Excludes life contingent annuities in the payout phase.

⁽²⁾ Excludes certain lease obligations accounted for under ASC 840, Leases.

Accounts Receivable (Tables)

9 Months Ended

Sep. 30, 2017

Receivables [Abstract]

Schedule of Accounts Receivable

Accounts receivable consist of the following (in thousands):



	September 30, 2017			December 31, 2016
Contracts in progress	$	122,457		$	121,666
Unbilled retentions	42,714			35,069
Trade receivables	103,554			113,380
Other receivables	383			1,102
Allowance for doubtful accounts	(4,026		)	(3,619		)
Total accounts receivable	$	265,082		$	267,598

Recoverable from Reinsurers (Tables)

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Ceded Credit Risk

The following table presents information for the Company's recoverable from reinsurers (in thousands):



		September 30, 2017				December 31, 2016
Reinsurer	A.M. Best Rating	Amount		% of Total		Amount		% of Total
Loyal American Life Insurance Co (Cigna)	A-	$	141,427	26.6	%	$	139,269	26.5	%
Great American Life Insurance Co	A	48,597		9.2	%	46,965		9.0	%
Hannover Life Reassurance Co	A+	340,655		64.2	%	337,967		64.5	%
Total		$	530,679	100.0	%	$	524,201	100.0	%

Property, Plant and Equipment, net (Tables)

9 Months Ended

Sep. 30, 2017

Property, Plant and Equipment [Abstract]

Summary of Property, Plant and Equipment

Property, plant and equipment consist of the following (in thousands):



	September 30, 2017		December 31, 2016
Land	$	23,376	$	21,006
Building and leasehold improvements	28,255		31,713
Plant and transportation equipment	5,087		5,551
Cable-ships and submersibles	174,057		169,034
Equipment, furniture and fixtures, and software	110,918		101,421
Construction in progress	26,111		19,889
	367,804		348,614
Less: Accumulated depreciation	85,739		62,156
	$	282,065	$	286,458

Goodwill and Intangibles, net (Tables)

9 Months Ended

Sep. 30, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of the Changes in the Carrying Amount of Goodwill by Reporting Unit

The changes in the carrying amount of goodwill by segment are as follows (in thousands):



	Construction			Marine Services		Energy			Telecom		Insurance		Life Sciences		Other			Total
Balance at December 31, 2016		$	36,317	$	2,468	$	2,631		$	3,378	$	47,290	$	3,620	$	2,382		$	98,086
Measurement period adjustment		—		—		(509		)	—		—		—		—			(509		)
Impairments		—		—		—			—		—		—		(587		)	(587		)
Balance at September 30, 2017		$	36,317	$	2,468	$	2,122		$	3,378	$	47,290	$	3,620	$	1,795		$	96,990

Schedule of Indefinite-Lived Intangible Assets

Balances of these assets as of September 30, 2017 were as follows:



	Total
State licenses	$	2,450
Developed technology	6,392
Total	$	8,842

Schedule of Intangible Assets Subject to Amortization

The gross carrying amount and accumulated amortization of amortizable intangible assets by major intangible asset class is as follows:



	Weighted-Average Original Useful Life	September 30, 2017							December 31, 2016
	Weighted-Average Original Useful Life	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Trade names	9 Years	$	13,011	$	(4,235	)	$	8,776	$	13,004	$	(3,113	)	$	9,891
Customer relationships	12 Years	20,865		(4,057		)	16,808		20,865		(2,194		)	18,671
Developed technology	5 Years	4,739		(4,192		)	547		4,739		(3,197		)	1,542
Other	3 Years	966		(158		)	808		787		(11		)	776
Total		$	39,581	$	(12,642	)	$	26,939	$	39,395	$	(8,515	)	$	30,880

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense



Fiscal Year	Estimated Amortization Expense
2018	$	(3,254	)
2019	$	(3,001	)
2020	$	(2,879	)
2021	$	(2,698	)
2022	$	(2,610	)

Life, Accident and Health Reserves (Tables)

9 Months Ended

Sep. 30, 2017

Insurance [Abstract]

Schedule of Life, Accident and Health Reserves

Life, accident and health reserves consist of the following (in thousands):



	September 30, 2017		December 31, 2016
Long-term care insurance reserves	$	1,442,586	$	1,407,848
Traditional life insurance reserves	100,076		102,077
Other accident and health insurance reserves	140,906		138,640
Total life, accident and health reserves	$	1,683,568	$	1,648,565

The following table sets forth changes in the liability for claims for the portion of our long-term care insurance reserves in scope of the ASU 2015-09 disclosure requirements (in thousands):



	Nine Months Ended September 30,
	2017			2016
Beginning balance	$	226,970		$	208,150
Less: recoverable from reinsurers	(97,858		)	(94,041		)
Beginning balance, net	129,112			114,109
Incurred related to insured events of:
Current year	44,611			39,258
Prior years	(1,449		)	(243		)
Total incurred	43,162			39,015
Paid related to insured events of:
Current year	(4,054		)	(3,965		)
Prior years	(30,505		)	(28,379		)
Total paid	(34,559		)	(32,344		)
Interest on liability for policy and contract claims	3,639			3,239
Ending balance, net	141,354			124,019
Add: recoverable from reinsurers	115,176			95,098
Ending balance	$	256,530		$	219,117

Accounts Payable and Other Current Liabilities (Tables)

9 Months Ended

Sep. 30, 2017

Payables and Accruals [Abstract]

Schedule of Accounts Payable and Other Current Liabilities

Accounts payable and other current liabilities consist of the following (in thousands):



	September 30, 2017		December 31, 2016
Accounts payable	$	70,180	$	66,792
Accrued interconnection costs	96,481		93,661
Accrued payroll and employee benefits	33,981		28,668
Accrued interest	14,723		3,056
Accrued income taxes	9,271		3,983
Accrued expenses and other current liabilities	70,460		55,573
Total accounts payable and other current liabilities	$	295,096	$	251,733

Long-term Obligations (Tables)

9 Months Ended

Sep. 30, 2017

Debt Disclosure [Abstract]

Schedule of Long-term Debt Obligations

Long-term obligations consist of the following (in thousands):



	September 30, 2017			December 31, 2016
HC2
11.0% Senior Secured Notes, due in 2019	$	400,000		$	307,000
HC22
11.0% Senior Secured Bridge Note, due in 2019 (the "11.0% Bridge Notes")	—			35,000
GMSL
Notes payable and revolving lines of credit, various maturity dates	16,912			17,522
LIBOR plus 3.65% Notes, due in 2019	—			3,026
Obligations under capital leases	48,968			49,717
DBMG
LIBOR plus 2.5% Notes, due in 2018 and 2019	7,414			9,439
ANG
5.5% Term Loan, due in 2018	376			501
4.5% Note due in 2022⁽¹⁾	12,727			13,343
5.04% Term Loan due in 2022	13,717			—
4.25% Seller Note, due in 2022	2,463			2,796
LIBOR plus 3.0% Pioneer Demand Note	933			—
Other	246			75
Total	503,756			438,419
Issuance discount or premium and deferred financing costs, net	(7,164		)	(9,923		)
Total long-term obligations	$	496,592		$	428,496

⁽¹⁾ANG refinanced and consolidated all three of its loans with Pioneer during the first quarter of 2017.

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21521-112644

+ Details

Employee Retirement Plans (Tables)

9 Months Ended

Sep. 30, 2017

Retirement Benefits [Abstract]

Components of Net Periodic Benefit Cost

The following table presents the components of Net periodic benefit cost for the periods presented (in thousands):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Service cost - benefits earning during the period	$	—		$	17		$	—		$	52
Interest cost on projected benefit obligation	1,403			1,878			4,209			5,633
Expected return on assets	(1,921		)	(1,991		)	(5,764		)	(5,974		)
Foreign currency gain (loss)	7			3			22			9
Net periodic benefit cost (income)	$	(511	)	$	(93	)	$	(1,533	)	$	(280	)

Share-based Compensation (Tables)

9 Months Ended

Sep. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [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:



	Nine Months Ended September 30,
	2017		2016
Expected option life (in years)	0.39 - 6.10		4.70 - 6.00
Risk-free interest rate	1.11 - 2.22%		1.27 - 1.35%
Expected volatility	47.04 - 48.29%		39.58 - 55.58%
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, 2016	115,921		$	5.59
Granted	1,061,794		$	5.64
Vested	(317,663	)	$	5.37
Unvested - September 30, 2017	860,052		$	5.73

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, 2016	6,829,097		$	6.58
Granted	331,616		$	5.50
Exercised	(134,539	)	$	3.53
Forfeited	—		$	—
Expired	(36,318	)	$	9.00
Outstanding - September 30, 2017	6,989,856		$	6.57

Eligible for exercise	5,344,697		$	5.85

Equity (Tables)

9 Months Ended

Sep. 30, 2017

Equity [Abstract]

Schedule of Stock by Class

The Company’s preferred shares authorized, issued and outstanding consisted of the following:



	September 30, 2017	December 31, 2016
Preferred shares authorized, $0.001 par value	20,000,000	20,000,000
Series A shares issued and outstanding	12,500	14,808
Series A-1 shares issued and outstanding	—	1,000
Series A-2 shares issued and outstanding	14,000	14,000

Summary of Cash, PIK and Special Cash Dividends

During 2017, HC2's Board of Directors declared cash dividends with respect to HC2’s issued and outstanding Preferred Stock, as presented in the following table (in thousands):

Declaration Date

March 31, 2017

June 30, 2017

September 30, 2017

Holders of Record Date

March 31, 2017

June 30, 2017

September 30, 2017

Payment Date

April 17, 2017

July 17, 2017

October 16, 2017

Total Dividend

563

500

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
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-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21506-112644

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 480
-SubTopic 10
-Section S99
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=65877616&loc=d3e177068-122764

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(d))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Topic 210
-SubTopic 10
-Section S99
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-Subparagraph (SX 210.5-02(29))
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21553-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=65888546&loc=d3e21300-112643

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(27))
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=84159872&loc=d3e21488-112644

+ Details

Related Parties (Tables)

9 Months Ended

Sep. 30, 2017

Summary of Balance Outstanding of Related Parties

A summary of transactions with such entities and balances outstanding are as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net revenue	$	4,174	$	14,409	$	16,271	$	25,904
Operating expenses	$	1,258	$	945	$	6,089	$	3,102
Interest expense	$	351	$	377	$	1,047	$	1,130
Dividends	$	2,027	$	—	$	2,659	$	418



	September 30, 2017		December 31, 2016
Accounts receivable	$	3,975	$	2,644
Long-term obligations	$	35,300	$	34,766
Accounts payable	$	2,375	$	2,760

Operating Segment and Related Information (Tables)

9 Months Ended

Sep. 30, 2017

Segment Reporting [Abstract]

Summary of Company's Geographic and Operating Segments

Summary information with respect to the Company’s geographic and operating segments is as follows (in thousands):



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Net Revenue by Geographic Region
United States	$	358,743	$	272,395	$	1,039,252	$	768,849
United Kingdom	42,233		139,981		112,958		332,318
Other	5,433		708		23,419		2,954
Total	$	406,409	$	413,084	$	1,175,629	$	1,104,121



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net revenue
Construction	$	151,697		$	129,551		$	403,325		$	372,964
Marine Services	42,817			50,653			123,382			116,298
Energy	3,919			1,664			12,301			4,151
Telecommunications	167,881			194,411			520,214			508,248
Insurance	37,737			34,546			112,032			99,847
Other	2,358			2,259			4,375			2,613
Total net revenue	406,409			413,084			1,175,629			1,104,121

Income (loss) from operations
Construction	12,198			12,339			25,911			35,421
Marine Services	(181		)	4,794			(1,726		)	(214		)
Energy	(1,161		)	149			(1,784		)	59
Telecommunications	1,374			2,218			5,023			3,434
Insurance	17,476			(338		)	20,704			(5,916		)
Life Sciences	(6,437		)	(2,538		)	(13,167		)	(7,282		)
Other	(1,383		)	(2,318		)	(7,164		)	(6,583		)
Non-operating Corporate	(11,321		)	(7,452		)	(27,455		)	(25,337		)
Total income (loss) from operations	10,565			6,854			342			(6,418		)

Interest expense	(13,222		)	(10,719		)	(39,410		)	(31,614		)
Gain on contingent consideration	6,320			1,381			6,001			1,573
Income from equity investees	971			335			12,667			3,153
Other expenses, net	(97		)	(4,584		)	(8,112		)	(5,793		)
Income (loss) from continuing operations before income taxes	4,537			(6,733		)	(28,512		)	(39,099		)
Income tax (expense) benefit	(12,861		)	1,334			(16,167		)	3,649
Net loss	(8,324		)	(5,399		)	(44,679		)	(35,450		)
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interest	2,357			841			6,305			2,365
Net loss attributable to HC2 Holdings, Inc.	(5,967		)	(4,558		)	(38,374		)	(33,085		)
Less: Preferred stock and deemed dividends from conversions	703			2,948			2,079			5,061
Net loss attributable to common stock and participating preferred stockholders	$	(6,670	)	$	(7,506	)	$	(40,453	)	$	(38,146	)



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Depreciation and Amortization
Construction	$	1,314		$	431		$	4,194		$	1,263
Marine Services	6,221			5,554			16,561			16,793
Energy	1,247			582			3,876			1,479
Telecommunications	94			144			285			389
Insurance ⁽¹⁾	(1,319		)	(1,162		)	(3,440		)	(2,902		)
Life Sciences	50			32			129			87
Other	272			380			933			1,054
Non-operating Corporate	17			—			50			—
Total	$	7,896		$	5,961		$	22,588		$	18,163

⁽¹⁾ Balance represents amortization of negative VOBA, which increases net income.



	Three Months Ended September 30,				Nine Months Ended September 30,
	2017		2016		2017		2016
Capital Expenditures ⁽²⁾
Construction	$	2,517	$	1,506	$	9,729	$	5,317
Marine Services	3,463		5,682		8,195		9,480
Energy	2,099		103		6,540		5,420
Telecommunications	7		254		47		574
Insurance	—		—		383		—
Life Sciences	197		14		395		144
Other	4		27		17		38
Non-operating Corporate	18		214		18		219
Total	$	8,305	$	7,800	$	25,324	$	21,192

⁽²⁾The above capital expenditures exclude assets acquired under terms of capital lease and vendor financing obligations.

Segment Reporting for Long-term investments, Property and Equipment - Net and Assets



	September 30,			December 31,
	2017			2016
Investments
Construction	$	1,050		$	—
Marine Services	57,870			40,698
Insurance	1,468,738			1,407,996
Life Sciences	19,087			13,067
Other	5,071			6,778
Eliminations	(30,207		)	(40,621		)
Total	$	1,521,609		$	1,427,918



	September 30,		December 31,
	2017		2016
Property, Plant and Equipment—Net
United States	$	140,892	$	136,905
United Kingdom	134,867		141,946
Other	6,306		7,607
Total	$	282,065	$	286,458



	September 30,			December 31,
	2017			2016
Total Assets
Construction	$	299,727		$	295,246
Marine Services	291,464			275,660
Energy	86,892			84,602
Telecommunications	123,257			125,965
Insurance	2,101,706			2,027,059
Life Sciences	32,711			28,868
Other	11,900			10,914
Non-operating Corporate	53,894			27,583
Eliminations	(30,207		)	(40,621		)
Total	$	2,971,344		$	2,835,276

Basic and Diluted Loss Per Common Share (Tables)

9 Months Ended

Sep. 30, 2017

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 thousands, except per share amounts):



	Three Months Ended September 30,						Nine Months Ended September 30,
	2017			2016			2017			2016
Net loss attributable to common stock and participating preferred stockholders	$	(6,670	)	$	(7,506	)	$	(40,453	)	$	(38,146	)

Earnings allocable to common shares:
Numerator for basic and diluted earnings per share
Participating shares at end of period:
Weighted-average Common stock outstanding	43,013			36,627			42,555			35,808

Percentage of loss allocated to:
Common Stock	100		%	100		%	100		%	100		%
Preferred Stock	—		%	—		%	—		%	—		%

Loss attributable to common shares - basic and diluted
Net Loss	$	(6,670	)	$	(7,506	)	$	(40,453	)	$	(38,146	)

Denominator for basic and diluted earnings per share
Weighted average common shares outstanding - basic and diluted	43,013			36,627			42,555			35,808

Basic and Diluted earnings per share
Net loss attributable to common stock and participating preferred stockholders - basic and diluted	$	(0.16	)	$	(0.20	)	$	(0.95	)	$	(1.07	)

Organization and Business (Details)	9 Months Ended
Organization and Business (Details)	Sep. 30, 2017 segment
Business And Organization [Line Items]
Number of reportable segments	7
704Games
Business And Organization [Line Items]
Percentage of ownership	56.00%
NerVve Technologies Inc.
Business And Organization [Line Items]
Percentage of ownership	72.00%
DBMG
Business And Organization [Line Items]
Parents controlling interest	92.00%
Marine Services
Business And Organization [Line Items]
Parents controlling interest	95.00%
Energy
Business And Organization [Line Items]
Parents controlling interest	49.99%
PTGI-ICS
Business And Organization [Line Items]
Parents controlling interest	100.00%
Insurance Companies
Business And Organization [Line Items]
Parents controlling interest	100.00%
Genoval Orthopedics inc.
Business And Organization [Line Items]
Parents controlling interest	80.00%
R2 Dermatology, Inc.
Business And Organization [Line Items]
Parents controlling interest	74.00%
Benevir Biopharm, Inc.
Business And Organization [Line Items]
Parents controlling interest	80.00%
Medibeacon Inc., and Triple Ring Technologies, Inc
Business And Organization [Line Items]
Parents controlling interest	50.00%

Summary of Significant Accounting Policies - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Adjustment to net income (loss) attributable to common stock and participating preferred stockholders	$ (6,670)	$ (7,506)	$ (40,453)	$ (38,146)
Restatement Adjustment
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Adjustment to net income (loss) attributable to common stock and participating preferred stockholders				$ (1,300)

Business Combinations - Schedule of Purchase Price Allocations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2017	Oct. 13, 2016
Purchase price allocation
Goodwill	$ 98,086	$ 96,990
Other Acquistions
Purchase price allocation
Cash and cash equivalents excluding restricted cash	2,963
Restricted cash	3
Accounts receivable	6,400
Property and equipment, net	29,896
Goodwill	5,541
Intangibles	7,082
Other assets	2,051
Inventories	528
Total assets acquired	54,464
Accounts payable and other current liabilities	(11,180)
Deferred tax liability	(2,819)
Other liabilities	(3)
Long-term debt	(20,813)
Noncontrolling interest	(815)
Total liabilities assumed	(35,630)
Enterprise value	18,834
Less fair value of noncontrolling interest	3,889
Total net assets acquired	14,945
DBMG \| PDC Operations (Australia) Pty Ltd (PDC) and BDS VirCon (BDS)
Purchase price allocation
Cash and cash equivalents			$ 621
Accounts receivable			5,558
Costs and recognized earnings in excess of billings on uncompleted contracts			1,686
Property and equipment, net			8,043
Goodwill			11,827
Intangibles			3,955
Other assets			1,209
Total assets acquired			32,899
Accounts payable and other current liabilities			(5,924)
Billings in excess of costs and recognized earnings on uncompleted contracts			(617)
Deferred tax liability			(169)
Other liabilities			(685)
Total liabilities assumed			(7,395)
Total net assets acquired			$ 25,504
Energy
Purchase price allocation
Accounts receivable	1,303
Property and equipment, net	43,267
Goodwill	748
Intangibles	4,984
Other assets	79
Total assets acquired	50,381
Accounts payable and other current liabilities	(898)
Deferred tax liability	(7,086)
Total liabilities assumed	(7,984)
Bargain purchase gain	(340)
Enterprise value	$ 42,057

Business Combinations - Construction Segment (Details) - USD ($) $ in Thousands	Oct. 13, 2016	Sep. 30, 2017	Dec. 31, 2016
Business Acquisition [Line Items]
Goodwill		$ 96,990	$ 98,086
DBMG \| PDC Operations (Australia) Pty Ltd (PDC) and BDS VirCon (BDS)
Business Acquisition [Line Items]
Consideration paid	$ 25,500
Cash paid in acquisition	21,400
Goodwill	11,827
Acquisition costs		$ 3,100
DBMG \| PDC Operations (Australia) Pty Ltd (PDC) and BDS VirCon (BDS) \| Assembled and Trained Workforce
Business Acquisition [Line Items]
Goodwill	$ 2,900

Business Combinations - Energy Segment (Details) - Energy $ in Millions	12 Months Ended
	Dec. 31, 2016 USD ($) acquisition fueling_station
Business Acquisition [Line Items]
Number of acquisitions \| acquisition	4
Number of fueling stations acquired \| fueling_station	21
Consideration paid	$ 42.1
Cash paid in acquisition	39.2
Customer contracts
Business Acquisition [Line Items]
Fair value	$ 7.1
Minimum \| Customer contracts
Business Acquisition [Line Items]
Amortization period	4 years
Maximum \| Customer contracts
Business Acquisition [Line Items]
Amortization period	15 years
Medium-term Notes \| 4.25% Seller Note, due in 2022
Business Acquisition [Line Items]
Seller note	$ 2.9
Interest rate (as a percent)	4.25%

Business Combinations - Other Acquisitions (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2016	Sep. 30, 2017	Nov. 01, 2016
CWind Limited
Business Acquisition [Line Items]
Percentage of ownership interest acquired	60.00%	40.00%	40.00%
Other Acquistions
Business Acquisition [Line Items]
Consideration paid	$ 14.9
Cash paid in acquisition	$ 9.2

Investments - Narrative (Details) $ in Millions	3 Months Ended		9 Months Ended
Investments - Narrative (Details) $ in Millions	Sep. 30, 2017 USD ($) security	Sep. 30, 2016 USD ($)	Sep. 30, 2017 USD ($) security	Sep. 30, 2016 USD ($)	Dec. 31, 2016 USD ($) security
Schedule of Available-for-sale Securities [Line Items]
Gain (loss) resulting for changes in fair value of securities			$ 2.7
Number of fixed maturity and equity securities \| security	139		139		269
Percentage of gross unrealized loss	100.00%		100.00%		100.00%
Other Nonoperating Income (Expense)
Schedule of Available-for-sale Securities [Line Items]
Gain (loss) resulting for changes in fair value of securities	$ 0.0	$ 0.3	$ (1.6)	$ (1.9)
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Percentage of gross unrealized loss	100.00%		100.00%		100.00%
Fixed maturity securities \| Investment grade
Schedule of Available-for-sale Securities [Line Items]
Percentage of gross unrealized loss	44.50%		44.50%		54.50%
Percentage of fair value	69.40%		69.40%		83.00%
Not designated as hedging instrument \| Mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Investments at fair value	$ 12.1		$ 12.1		$ 15.2
Gain (loss) resulting for changes in fair value of securities	$ (0.6)	$ (0.1)	$ 0.0	$ (2.4)

Investments - Schedule of Fixed Maturity and Equity Securities Available-for-Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Unrealized Losses	$ (4,870)	$ (14,583)
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	1,272,549	1,258,419
Unrealized Gains	68,927	33,173
Unrealized Losses	(4,839)	(12,634)
Fair Value	1,336,637	1,278,958
U.S. Government and government agencies
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	15,318	15,910
Unrealized Gains	407	135
Unrealized Losses	(12)	(95)
Fair Value	15,713	15,950
States, municipalities and political subdivisions
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	378,057	374,527
Unrealized Gains	16,170	4,408
Unrealized Losses	(1,269)	(3,858)
Fair Value	392,958	375,077
Foreign government
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	6,343	6,380
Unrealized Gains	0	0
Unrealized Losses	(431)	(402)
Fair Value	5,912	5,978
Residential mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	107,249	136,126
Unrealized Gains	4,765	2,634
Unrealized Losses	(1,173)	(564)
Fair Value	110,841	138,196
Commercial mortgage-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	30,668	48,715
Unrealized Gains	434	427
Unrealized Losses	(3)	(89)
Fair Value	31,099	49,053
Asset-backed securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	125,777	76,303
Unrealized Gains	2,559	1,934
Unrealized Losses	(348)	(572)
Fair Value	127,988	77,665
Corporate and other
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	609,137	600,458
Unrealized Gains	44,592	23,635
Unrealized Losses	(1,603)	(7,054)
Fair Value	652,126	617,039
Equity securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	47,567	53,277
Unrealized Gains	1,510	191
Unrealized Losses	(31)	(1,949)
Fair Value	49,046	51,519
Common stocks
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	10,565	16,236
Unrealized Gains	0	0
Unrealized Losses	(3)	(1,371)
Fair Value	10,562	14,865
Perpetual preferred stocks
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	37,002	37,041
Unrealized Gains	1,510	191
Unrealized Losses	(28)	(578)
Fair Value	$ 38,484	$ 36,654

Investments - Schedule of Maturities of Fixed Maturity Securities Available-for-Sale (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Amortized Cost
Total	$ 1,272,549
Fair Value
Total	1,336,637	$ 1,278,958
Corporate, Municipal, U.S. Government and Other securities
Amortized Cost
Due in one year or less	36,381
Due after one year through five years	95,783
Due after five years through ten years	166,415
Due after ten years	710,276
Subtotal	1,008,855
Fair Value
Due in one year or less	36,153
Due after one year through five years	98,739
Due after five years through ten years	171,875
Due after ten years	759,942
Subtotal	1,066,709
Mortgage-backed securities
Amortized Cost
Amortized cost, without single maturity date	137,917
Fair Value
Fair value, without single maturity date	141,940
Asset-backed securities
Amortized Cost
Amortized cost, without single maturity date	125,777
Fair Value
Fair value, without single maturity date	$ 127,988

Investments - Schedule of Major Industry Types of Fixed Maturity Holdings (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 1,272,549
Fair Value	$ 1,336,637	$ 1,278,958
% of Total	100.00%	100.00%
Fixed maturity securities
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 609,137	$ 600,458
Fair Value	$ 652,126	$ 617,039
% of Total	100.00%	100.00%
Fixed maturity securities \| Finance, insurance, and real estate
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 199,777	$ 214,911
Fair Value	$ 210,783	$ 211,834
% of Total	32.30%	34.30%
Fixed maturity securities \| Transportation, communications, electric, gas and sanitary services
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 181,389	$ 180,647
Fair Value	$ 193,954	$ 189,163
% of Total	29.70%	30.70%
Fixed maturity securities \| Manufacturing
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 111,030	$ 112,644
Fair Value	$ 120,060	$ 118,440
% of Total	18.40%	19.20%
Fixed maturity securities \| Other
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 116,941	$ 92,256
Fair Value	$ 127,329	$ 97,602
% of Total	19.60%	15.80%

Investments - Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investment [Line Items]
Total Other-Than-Temporary Impairments	$ 0	$ 1,473	$ 6,111	$ 2,614
Net realized gains (losses) on investments
Investment [Line Items]
Total Other-Than-Temporary Impairments	0	0	0	163
Other expenses, net
Investment [Line Items]
Total Other-Than-Temporary Impairments	$ 0	$ 1,473	$ 6,111	$ 2,451

Investments - Schedule of Unrealized Losses for Fixed Maturities and Equity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Unrealized Losses
Less than 20%	$ (4,710)	$ (10,069)
20% or more for less than six months	0	(482)
20% or more for six months or greater	(160)	(4,032)
Total	$ (4,870)	$ (14,583)
% of Total
Less than 20%	96.70%	69.00%
20% or more for less than six months	0.00%	3.30%
20% or more for six months or greater	3.30%	27.70%
Total	100.00%	100.00%

Investments - Schedule of Estimated Fair Values and Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Fixed maturity securities
Less than 12 months
Fair Value	$ 159,442	$ 445,750
Unrealized Losses	(3,984)	(8,602)
12 months or greater
Fair Value	23,403	3,579
Unrealized Losses	(855)	(4,032)
Total Fair Value	182,845	449,329
Total Unrealized Loss	(4,839)	(12,634)
U.S. Government and government agencies
Less than 12 months
Fair Value	6,994	4,392
Unrealized Losses	(12)	(95)
12 months or greater
Fair Value	0	0
Unrealized Losses	0	0
Total Fair Value	6,994	4,392
Total Unrealized Loss	(12)	(95)
States, municipalities and political subdivisions
Less than 12 months
Fair Value	62,682	207,740
Unrealized Losses	(1,269)	(3,858)
12 months or greater
Fair Value	0	0
Unrealized Losses	0	0
Total Fair Value	62,682	207,740
Total Unrealized Loss	(1,269)	(3,858)
Foreign government
Less than 12 months
Fair Value	0	5,978
Unrealized Losses	0	(402)
12 months or greater
Fair Value	5,913	0
Unrealized Losses	(431)	0
Total Fair Value	5,913	5,978
Total Unrealized Loss	(431)	(402)
Residential mortgage-backed securities
Less than 12 months
Fair Value	18,524	54,385
Unrealized Losses	(1,003)	(564)
12 months or greater
Fair Value	10,429	0
Unrealized Losses	(170)	0
Total Fair Value	28,953	54,385
Total Unrealized Loss	(1,173)	(564)
Commercial mortgage-backed securities
Less than 12 months
Fair Value	1,132	13,159
Unrealized Losses	(3)	(89)
12 months or greater
Fair Value	0	0
Unrealized Losses	0	0
Total Fair Value	1,132	13,159
Total Unrealized Loss	(3)	(89)
Asset-backed securities
Less than 12 months
Fair Value	13,932	12,443
Unrealized Losses	(130)	(572)
12 months or greater
Fair Value	6,178	0
Unrealized Losses	(218)	0
Total Fair Value	20,110	12,443
Total Unrealized Loss	(348)	(572)
Corporate and other
Less than 12 months
Fair Value	56,178	147,653
Unrealized Losses	(1,567)	(3,022)
12 months or greater
Fair Value	883	3,579
Unrealized Losses	(36)	(4,032)
Total Fair Value	57,061	151,232
Total Unrealized Loss	(1,603)	(7,054)
Equity securities
Less than 12 months
Fair Value	10,282	35,049
Unrealized Losses	(3)	(1,949)
12 months or greater
Fair Value	1,072	0
Unrealized Losses	(28)	0
Total Fair Value	11,354	35,049
Total Unrealized Loss	(31)	(1,949)
Common Stock
Less than 12 months
Fair Value	10,282	14,585
Unrealized Losses	(3)	(1,371)
12 months or greater
Fair Value	0	0
Unrealized Losses	0	0
Total Fair Value	10,282	14,585
Total Unrealized Loss	(3)	(1,371)
Equity securities
Less than 12 months
Fair Value	0	20,464
Unrealized Losses	0	(578)
12 months or greater
Fair Value	1,072	0
Unrealized Losses	(28)	0
Total Fair Value	1,072	20,464
Total Unrealized Loss	$ (28)	$ (578)

Investments - Schedule of Other Invested Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Summary of Investment Holdings [Line Items]
Cost Method	$ 5,581	$ 5,719
Equity Method	76,660	52,831
Fair Value	9,220	3,813
Common Equity
Summary of Investment Holdings [Line Items]
Cost Method	0	138
Equity Method	1,298	1,047
Fair Value	7,056	0
Preferred Equity
Summary of Investment Holdings [Line Items]
Cost Method	2,484	2,484
Equity Method	15,710	9,971
Fair Value	0	0
Derivatives
Summary of Investment Holdings [Line Items]
Cost Method	3,097	3,097
Equity Method	0	0
Fair Value	2,164	3,813
Limited partnerships
Summary of Investment Holdings [Line Items]
Cost Method	0	0
Equity Method	733	1,116
Fair Value	0	0
Joint Ventures
Summary of Investment Holdings [Line Items]
Cost Method	0	0
Equity Method	58,919	40,697
Fair Value	$ 0	$ 0

- Definition

Fair value portion of investment securities, including, but not limited to, marketable securities, derivative financial instruments, and investments accounted for under the equity method.

+ References + Details

Investments - Summarized Information for Equity Method Investments (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Investments, Debt and Equity Securities [Abstract]
Net revenue	$ 369,336
Gross profit	109,543
Income (loss) from continuing operations	(10,118)
Net income (loss)	(31,453)
Current assets	317,786
Noncurrent assets	189,278
Current liabilities	197,855
Noncurrent liabilities	$ 152,879

Investments - Net Investment Income (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investment [Line Items]
Gross investment income	$ 16,333	$ 15,024	$ 48,681	$ 43,247
External investment expense	(46)	(225)	(151)	(662)
Net investment income	16,287	14,799	48,530	42,585
Fixed Maturities
Investment [Line Items]
Gross investment income	14,951	14,033	44,426	40,388
Equity securities
Investment [Line Items]
Gross investment income	578	430	1,827	1,526
Mortgage loans
Investment [Line Items]
Gross investment income	447	120	1,475	155
Policy loans
Investment [Line Items]
Gross investment income	289	312	878	876
Other invested assets
Investment [Line Items]
Gross investment income	$ 68	$ 129	$ 75	$ 302

Investments - Net Realized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Investment [Line Items]
Realized gains (losses)	$ 978	$ (220)	$ 2,854	$ (2,677)
Impairment loss	0	0	0	(163)
Fixed Maturities
Investment [Line Items]
Realized gains	125	455	3,510	1,663
Realized losses	(42)	0	(959)	(2,338)
Equity securities
Investment [Line Items]
Realized gains	265	154	375	438
Realized losses	0	0	(31)	(352)
Derivatives
Investment [Line Items]
Realized gains (losses)	$ 630	$ (829)	$ (41)	$ (1,925)

Fair Value of Financial Instruments - Summary of Assets and Liabilities Measured At Fair Value on Recurring Basis (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Liabilities
Transfer into Level 3	$ 26,401,000	$ 12,702,000	$ 31,511,000	$ 42,247,000
Transfer out of level 3	3,923,000	13,337,000	88,486,000	39,861,000
Asset-backed securities
Liabilities
Transfer into Level 3	22,500,000			2,400,000
Transfer out of level 3		600,000	57,000,000
U.S. Government and government agencies
Assets
Total equity securities	15,713,000		15,713,000		$ 15,950,000
States, municipalities and political subdivisions
Assets
Total equity securities	392,958,000		392,958,000		375,077,000
Foreign government
Assets
Total equity securities	5,912,000		5,912,000		5,978,000
Residential mortgage-backed securities
Assets
Total equity securities	110,841,000		110,841,000		138,196,000
Commercial mortgage-backed securities
Assets
Total equity securities	31,099,000		31,099,000		49,053,000
Asset-backed securities
Assets
Total equity securities	127,988,000		127,988,000		77,665,000
Corporate and other
Assets
Total equity securities	652,126,000		652,126,000		617,039,000
Equity securities
Assets
Total equity securities	49,046,000		49,046,000		51,519,000
Common Stock
Assets
Total equity securities	10,562,000		10,562,000		14,865,000
Perpetual preferred stocks
Assets
Total equity securities	38,484,000		38,484,000		36,654,000
Recurring
Assets
Derivatives	2,164,000		2,164,000		3,813,000
Common stocks - fair value option	7,056,000		7,056,000
Total assets not accounted for at fair value	1,394,903,000		1,394,903,000		1,334,290,000
Liabilities
Other	1,500,000		1,500,000
Total liabilities not accounted for at fair value	9,826,000		9,826,000		16,285,000
Recurring \| Warrant liability
Liabilities
Warrant liability	3,091,000		3,091,000		4,058,000
Recurring \| Contingent liability
Liabilities
Contingent liability	5,409,000		5,409,000		11,411,000
Recurring \| Other
Liabilities
Other	1,326,000		1,326,000		816,000
Recurring \| Level 1
Assets
Derivatives	0		0		0
Common stocks - fair value option	7,056,000		7,056,000
Total assets not accounted for at fair value	32,369,000		32,369,000		26,762,000
Liabilities
Total liabilities not accounted for at fair value	0		0		0
Recurring \| Level 1 \| Warrant liability
Liabilities
Warrant liability	0		0		0
Recurring \| Level 1 \| Contingent liability
Liabilities
Contingent liability	0		0		0
Recurring \| Level 1 \| Other
Liabilities
Other	0		0		0
Recurring \| Level 2
Assets
Derivatives	0		0		0
Common stocks - fair value option	0		0
Total assets not accounted for at fair value	1,171,261,000		1,171,261,000		1,100,863,000
Liabilities
Total liabilities not accounted for at fair value	0		0		0
Recurring \| Level 2 \| Warrant liability
Liabilities
Warrant liability	0		0		0
Recurring \| Level 2 \| Contingent liability
Liabilities
Contingent liability	0		0		0
Recurring \| Level 2 \| Other
Liabilities
Other	0		0		0
Recurring \| Level 3
Assets
Derivatives	2,164,000		2,164,000		3,813,000
Common stocks - fair value option	0		0
Total assets not accounted for at fair value	191,273,000		191,273,000		206,665,000
Liabilities
Total liabilities not accounted for at fair value	9,826,000		9,826,000		16,285,000
Recurring \| Level 3 \| Warrant liability
Liabilities
Warrant liability	3,091,000		3,091,000		4,058,000
Recurring \| Level 3 \| Contingent liability
Liabilities
Contingent liability	5,409,000		5,409,000		11,411,000
Recurring \| Level 3 \| Other
Liabilities
Other	1,326,000		1,326,000		816,000
Recurring \| Total fixed maturity securities
Assets
Total equity securities	1,336,637,000		1,336,637,000		1,278,958,000
Recurring \| Total fixed maturity securities \| Level 1
Assets
Total equity securities	7,263,000		7,263,000		7,160,000
Recurring \| Total fixed maturity securities \| Level 2
Assets
Total equity securities	1,148,736,000		1,148,736,000		1,073,521,000
Recurring \| Total fixed maturity securities \| Level 3
Assets
Total equity securities	180,638,000		180,638,000		198,277,000
Recurring \| U.S. Government and government agencies
Assets
Total equity securities	15,713,000		15,713,000		15,950,000
Recurring \| U.S. Government and government agencies \| Level 1
Assets
Total equity securities	5,115,000		5,115,000		5,140,000
Recurring \| U.S. Government and government agencies \| Level 2
Assets
Total equity securities	10,598,000		10,598,000		10,778,000
Recurring \| U.S. Government and government agencies \| Level 3
Assets
Total equity securities	0		0		32,000
Recurring \| States, municipalities and political subdivisions
Assets
Total equity securities	392,958,000		392,958,000		375,077,000
Recurring \| States, municipalities and political subdivisions \| Level 1
Assets
Total equity securities	0		0		0
Recurring \| States, municipalities and political subdivisions \| Level 2
Assets
Total equity securities	387,066,000		387,066,000		369,387,000
Recurring \| States, municipalities and political subdivisions \| Level 3
Assets
Total equity securities	5,892,000		5,892,000		5,690,000
Recurring \| Foreign government
Assets
Total equity securities	5,912,000		5,912,000		5,978,000
Recurring \| Foreign government \| Level 1
Assets
Total equity securities	0		0		0
Recurring \| Foreign government \| Level 2
Assets
Total equity securities	5,912,000		5,912,000		5,978,000
Recurring \| Foreign government \| Level 3
Assets
Total equity securities	0		0		0
Recurring \| Residential mortgage-backed securities
Assets
Total equity securities	110,841,000		110,841,000		138,196,000
Recurring \| Residential mortgage-backed securities \| Level 1
Assets
Total equity securities	0		0		0
Recurring \| Residential mortgage-backed securities \| Level 2
Assets
Total equity securities	93,060,000		93,060,000		82,242,000
Recurring \| Residential mortgage-backed securities \| Level 3
Assets
Total equity securities	17,781,000		17,781,000		55,954,000
Recurring \| Commercial mortgage-backed securities
Assets
Total equity securities	31,099,000		31,099,000		49,053,000
Recurring \| Commercial mortgage-backed securities \| Level 1
Assets
Total equity securities	0		0		0
Recurring \| Commercial mortgage-backed securities \| Level 2
Assets
Total equity securities	18,797,000		18,797,000		6,035,000
Recurring \| Commercial mortgage-backed securities \| Level 3
Assets
Total equity securities	12,302,000		12,302,000		43,018,000
Recurring \| Asset-backed securities
Assets
Total equity securities	127,988,000		127,988,000		77,665,000
Recurring \| Asset-backed securities \| Level 1
Assets
Total equity securities	0		0		0
Recurring \| Asset-backed securities \| Level 2
Assets
Total equity securities	14,823,000		14,823,000		4,448,000
Recurring \| Asset-backed securities \| Level 3
Assets
Total equity securities	113,165,000		113,165,000		73,217,000
Recurring \| Corporate and other
Assets
Total equity securities	652,126,000		652,126,000		617,039,000
Liabilities
Level 1 into Level 2 transfers		1,100,000		1,100,000
Recurring \| Corporate and other \| Level 1
Assets
Total equity securities	2,148,000		2,148,000		2,020,000
Recurring \| Corporate and other \| Level 2
Assets
Total equity securities	618,480,000		618,480,000		594,653,000
Recurring \| Corporate and other \| Level 3
Assets
Total equity securities	31,498,000		31,498,000		20,366,000
Recurring \| Equity securities
Assets
Total equity securities	49,046,000		49,046,000		51,519,000
Recurring \| Equity securities \| Level 1
Assets
Total equity securities	18,050,000		18,050,000		19,602,000
Recurring \| Equity securities \| Level 2
Assets
Total equity securities	22,525,000		22,525,000		27,342,000
Recurring \| Equity securities \| Level 3
Assets
Total equity securities	8,471,000		8,471,000		4,575,000
Recurring \| Common Stock
Assets
Total equity securities	10,562,000		10,562,000		14,865,000
Recurring \| Common Stock \| Level 1
Assets
Total equity securities	8,192,000		8,192,000		10,290,000
Recurring \| Common Stock \| Level 2
Assets
Total equity securities	0		0		0
Recurring \| Common Stock \| Level 3
Assets
Total equity securities	2,370,000		2,370,000		4,575,000
Recurring \| Perpetual preferred stocks
Assets
Total equity securities	38,484,000		38,484,000		36,654,000
Liabilities
Level 1 into Level 2 transfers	0	$ 500,000	0	$ 500,000
Recurring \| Perpetual preferred stocks \| Level 1
Assets
Total equity securities	9,858,000		9,858,000		9,312,000
Recurring \| Perpetual preferred stocks \| Level 2
Assets
Total equity securities	22,525,000		22,525,000		27,342,000
Recurring \| Perpetual preferred stocks \| Level 3
Assets
Total equity securities	$ 6,101,000		$ 6,101,000		$ 0

Fair Value of Financial Instruments - Schedule of Changes in Balances of Level 3 Financial Assets (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Changes in balances of Level 3 financial assets
Balance at beginning of period	$ 174,133	$ 209,609	$ 206,666	$ 196,016	$ 196,016
Total realized/unrealized net earnings (loss)	115	(795)	(7,284)	(3,760)
Total realized/unrealized other comp. income (loss)	(707)	1,819	5,739	5,827
Purchases and issuances	20,206	18,466	113,104	55,126
Sales and settlements	(24,952)	(12,290)	(69,977)	(39,421)
Transfer into Level 3	26,401	12,702	31,511	42,247
Transfer out of Level 3	(3,923)	(13,337)	(88,486)	(39,861)
Balance at end of period	191,273	216,174	191,273	216,174	206,666
Changes in balances of Level 3 financial liabilities
Balance at beginning of period	16,863	4,990	16,285	4,332	4,332
Total realized/unrealized net earnings (loss)	(7,037)	(731)	(6,459)	(2,662)
Total realized/unrealized other comp. income (loss)	0	0	0	0
Purchases and issuances	0	1,490	0	4,079
Sales and settlements	0	0	0	0
Transfer into Level 3	0	0	0	0
Transfer out of Level 3	0	0	0	0
Balance at end of period	9,826	5,749	$ 9,826	5,749	16,285
Assets, Total \| Level 3
Changes in balances of Level 3 financial liabilities
Percent of total assets (less than)			1.00%
Warrant liability
Changes in balances of Level 3 financial liabilities
Balance at beginning of period	4,091		$ 4,058
Total realized/unrealized net earnings (loss)	(1,000)		(967)
Total realized/unrealized other comp. income (loss)	0		0
Purchases and issuances	0		0
Sales and settlements	0		0
Transfer into Level 3	0		0
Transfer out of Level 3	0		0
Balance at end of period	3,091		3,091		4,058
Contingent liability
Changes in balances of Level 3 financial liabilities
Balance at beginning of period	11,730	2,218	11,411	0	0
Total realized/unrealized net earnings (loss)	(6,321)	(1,470)	(6,002)	(1,841)
Total realized/unrealized other comp. income (loss)	0	0	0	0
Purchases and issuances	0	0	0	2,589
Sales and settlements	0	0	0	0
Transfer into Level 3	0	0	0	0
Transfer out of Level 3	0	0	0	0
Balance at end of period	5,409	748	5,409	748	11,411
Other
Changes in balances of Level 3 financial liabilities
Balance at beginning of period	1,042	0	816	0	0
Total realized/unrealized net earnings (loss)	284	0	510	0
Total realized/unrealized other comp. income (loss)	0	0	0	0
Purchases and issuances	0	1,490	0	1,490
Sales and settlements	0	0	0	0
Transfer into Level 3	0	0	0	0
Transfer out of Level 3	0	0	0	0
Balance at end of period	1,326	1,490	1,326	1,490	816
Derivatives
Changes in balances of Level 3 financial liabilities
Balance at beginning of period		2,772		4,332	4,332
Total realized/unrealized net earnings (loss)		739		(821)
Total realized/unrealized other comp. income (loss)		0		0
Purchases and issuances		0		0
Sales and settlements		0		0
Transfer into Level 3		0		0
Transfer out of Level 3		0		0
Balance at end of period		3,511		3,511
Securities (Assets) \| Fixed maturity securities
Changes in balances of Level 3 financial assets
Balance at beginning of period	169,888	196,652	198,277	186,873	186,873
Total realized/unrealized net earnings (loss)	106	(612)	(2,793)	(2,373)
Total realized/unrealized other comp. income (loss)	(707)	2,513	5,383	4,495
Purchases and issuances	20,206	18,236	113,104	51,904
Sales and settlements	(24,952)	(12,242)	(69,977)	(39,373)
Transfer into Level 3	20,020	12,702	25,130	42,247
Transfer out of Level 3	(3,923)	(13,337)	(88,486)	(39,861)
Balance at end of period	180,638	203,912	180,638	203,912	198,277
Securities (Assets) \| U.S. Government and government agencies
Changes in balances of Level 3 financial assets
Balance at beginning of period		58	32	73	73
Total realized/unrealized net earnings (loss)		0	0	0
Total realized/unrealized other comp. income (loss)		0	0	2
Purchases and issuances		0	0	0
Sales and settlements		(26)	(17)	(43)
Transfer into Level 3		0	0	0
Transfer out of Level 3		0	(15)	0
Balance at end of period	0	32	0	32	32
Securities (Assets) \| States, municipalities and political subdivisions
Changes in balances of Level 3 financial assets
Balance at beginning of period	7,511	5,864	5,690	5,659	5,659
Total realized/unrealized net earnings (loss)	(3)	102	(2)	302
Total realized/unrealized other comp. income (loss)	(100)	3	(144)	8
Purchases and issuances	116	0	344	0
Sales and settlements	0	0	0	0
Transfer into Level 3	0	0	1,636	0
Transfer out of Level 3	(1,632)	0	(1,632)	0
Balance at end of period	5,892	5,969	5,892	5,969	5,690
Securities (Assets) \| Residential mortgage-backed securities
Changes in balances of Level 3 financial assets
Balance at beginning of period	18,486	62,289	55,954	79,019	79,019
Total realized/unrealized net earnings (loss)	21	(422)	(720)	(2,105)
Total realized/unrealized other comp. income (loss)	22	525	901	910
Purchases and issuances	0	0	3,465	0
Sales and settlements	(921)	(2,973)	(7,283)	(10,988)
Transfer into Level 3	1,041	8,686	3,203	16,569
Transfer out of Level 3	(868)	(8,105)	(37,739)	(23,405)
Balance at end of period	17,781	60,000	17,781	60,000	55,954
Securities (Assets) \| Commercial mortgage-backed securities
Changes in balances of Level 3 financial assets
Balance at beginning of period	3,754	57,563	43,018	60,525	60,525
Total realized/unrealized net earnings (loss)	(4)	(269)	111	(760)
Total realized/unrealized other comp. income (loss)	1	(19)	76	920
Purchases and issuances	0	0	0	0
Sales and settlements	(69)	(7,378)	(10,083)	(12,394)
Transfer into Level 3	8,620	2,629	8,620	9,779
Transfer out of Level 3	0	(2,247)	(29,440)	(7,791)
Balance at end of period	12,302	50,279	12,302	50,279	43,018
Securities (Assets) \| Asset-backed securities
Changes in balances of Level 3 financial assets
Balance at beginning of period	119,598	54,217	73,217	27,653	27,653
Total realized/unrealized net earnings (loss)	97	85	1,147	140
Total realized/unrealized other comp. income (loss)	572	1,454	880	2,176
Purchases and issuances	15,780	10,337	97,051	43,405
Sales and settlements	(23,947)	(720)	(48,461)	(14,742)
Transfer into Level 3	1,065	1,387	1,065	13,808
Transfer out of Level 3	0	(16)	(11,734)	(5,696)
Balance at end of period	113,165	66,744	113,165	66,744	73,217
Securities (Assets) \| Corporate and other
Changes in balances of Level 3 financial assets
Balance at beginning of period	20,539	16,661	20,366	13,944	13,944
Total realized/unrealized net earnings (loss)	(5)	(108)	(3,329)	50
Total realized/unrealized other comp. income (loss)	(1,202)	550	3,670	479
Purchases and issuances	4,310	7,899	12,244	8,499
Sales and settlements	(15)	(1,145)	(4,133)	(1,206)
Transfer into Level 3	9,294	0	10,606	2,091
Transfer out of Level 3	(1,423)	(2,969)	(7,926)	(2,969)
Balance at end of period	31,498	20,888	31,498	20,888	20,366
Securities (Assets) \| Equity securities
Changes in balances of Level 3 financial assets
Balance at beginning of period	2,090	4,826	4,576	4,932	4,932
Total realized/unrealized net earnings (loss)	0	0	(2,842)	0
Total realized/unrealized other comp. income (loss)	0	0	356	(106)
Purchases and issuances	0	0	0	0
Sales and settlements	0	0	0	0
Transfer into Level 3	6,381	0	6,381	0
Transfer out of Level 3	0	0	0	0
Balance at end of period	8,471	4,826	8,471	4,826	4,576
Securities (Assets) \| Common Stock
Changes in balances of Level 3 financial assets
Balance at beginning of period	2,090	4,826	4,576	4,932	4,932
Total realized/unrealized net earnings (loss)	0	0	(2,842)	0
Total realized/unrealized other comp. income (loss)	0	0	356	(106)
Purchases and issuances	0	0	0	0
Sales and settlements	0	0	0	0
Transfer into Level 3	280	0	280	0
Transfer out of Level 3	0	0	0	0
Balance at end of period	2,370	4,826	2,370	4,826	4,576
Securities (Assets) \| Perpetual preferred stocks
Changes in balances of Level 3 financial assets
Balance at beginning of period	0		0
Total realized/unrealized net earnings (loss)	0		0
Total realized/unrealized other comp. income (loss)	0		0
Purchases and issuances	0		0
Sales and settlements	0		0
Transfer into Level 3	6,101		6,101
Transfer out of Level 3	0		0
Balance at end of period	6,101		6,101		0
Derivatives
Changes in balances of Level 3 financial assets
Balance at beginning of period	2,155	5,318	3,813	4,211	4,211
Total realized/unrealized net earnings (loss)	9	(94)	(1,649)	(1,119)
Total realized/unrealized other comp. income (loss)	0	(694)	0	1,438
Purchases and issuances	0	230	0	230
Sales and settlements	0	(48)	0	(48)
Transfer into Level 3	0	0	0	0
Transfer out of Level 3	0	0	0	0
Balance at end of period	$ 2,164	4,712	$ 2,164	4,712	3,813
Contingent asset
Changes in balances of Level 3 financial assets
Balance at beginning of period		2,813		0	$ 0
Total realized/unrealized net earnings (loss)		(89)		(268)
Total realized/unrealized other comp. income (loss)		0		0
Purchases and issuances		0		2,992
Sales and settlements		0		0
Transfer into Level 3		0		0
Transfer out of Level 3		0		0
Balance at end of period		$ 2,724		$ 2,724

Fair Value of Financial Instruments - Schedule of Financial Instruments Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Assets
Mortgage loans	$ 26,427	$ 16,831
Policy loans	18,038	18,247
Other invested assets	91,461	62,363
Nonrecurring \| Level 1
Assets
Mortgage loans	0	0
Policy loans	0	0
Other invested assets	0	0
Total assets not 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	18,038	18,247
Other invested assets	0	0
Total assets not accounted for at fair value	18,038	18,247
Liabilities
Annuity benefits accumulated	0	0
Long-term obligations	455,432	376,081
Total liabilities not accounted for at fair value	455,432	376,081
Nonrecurring \| Level 3
Assets
Mortgage loans	26,428	16,832
Policy loans	0	0
Other invested assets	3,617	4,597
Total assets not accounted for at fair value	30,045	21,429
Liabilities
Annuity benefits accumulated	242,153	249,372
Long-term obligations	0	0
Total liabilities not accounted for at fair value	242,153	249,372
Nonrecurring \| Carrying Value
Assets
Mortgage loans	26,427	16,831
Policy loans	18,038	18,247
Other invested assets	5,581	5,719
Total assets not accounted for at fair value	50,046	40,797
Liabilities
Annuity benefits accumulated	245,054	251,270
Long-term obligations	447,624	378,780
Total liabilities not accounted for at fair value	692,678	630,050
Nonrecurring \| Estimated Fair Value
Assets
Mortgage loans	26,428	16,832
Policy loans	18,038	18,247
Other invested assets	3,617	4,597
Total assets not accounted for at fair value	48,083	39,676
Liabilities
Annuity benefits accumulated	242,153	249,372
Long-term obligations	455,432	376,081
Total liabilities not accounted for at fair value	$ 697,585	$ 625,453

Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Contracts in progress	$ 122,457	$ 121,666
Unbilled retentions	42,714	35,069
Trade receivables	103,554	113,380
Other receivables	383	1,102
Allowance for doubtful accounts	(4,026)	(3,619)
Total accounts receivable	$ 265,082	$ 267,598

Recoverable from Reinsurers (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Ceded Credit Risk [Line Items]
Amount	$ 530,679	$ 524,201
% of Total, Reinsurance recoverable \| Reinsurer Concentration Risk
Ceded Credit Risk [Line Items]
Recoverable from reinsurers assets percent	100.00%	100.00%
Loyal American Life Insurance Co (Cigna) \| A-
Ceded Credit Risk [Line Items]
Amount	$ 141,427	$ 139,269
Loyal American Life Insurance Co (Cigna) \| A- \| % of Total, Reinsurance recoverable \| Reinsurer Concentration Risk
Ceded Credit Risk [Line Items]
Recoverable from reinsurers assets percent	26.60%	26.50%
Great American Life Insurance Co \| A
Ceded Credit Risk [Line Items]
Amount	$ 48,597	$ 46,965
Great American Life Insurance Co \| A \| % of Total, Reinsurance recoverable \| Reinsurer Concentration Risk
Ceded Credit Risk [Line Items]
Recoverable from reinsurers assets percent	9.20%	9.00%
Hannover Life Reassurance Co \| A
Ceded Credit Risk [Line Items]
Amount	$ 340,655	$ 337,967
Hannover Life Reassurance Co \| A \| % of Total, Reinsurance recoverable \| Reinsurer Concentration Risk
Ceded Credit Risk [Line Items]
Recoverable from reinsurers assets percent	64.20%	64.50%

Property, Plant and Equipment, net - Summary of Property, Plant and Equipment, net (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 367,804	$ 348,614
Less: Accumulated depreciation	85,739	62,156
Property, plant and equipment, net	282,065	286,458
Land
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	23,376	21,006
Building and leasehold improvements
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	28,255	31,713
Plant and transportation equipment
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	5,087	5,551
Cable-ships and submersibles
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	174,057	169,034
Equipment, furniture and fixtures, and software
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	110,918	101,421
Construction in progress
Property, Plant and Equipment [Line Items]
Property, plant and equipment, gross	$ 26,111	$ 19,889

Property, Plant and Equipment, net - Narrative (Details) - USD ($)	1 Months Ended	3 Months Ended		9 Months Ended
	Jun. 30, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Property, Plant and Equipment [Abstract]
Depreciation expense		$ 9,100,000	$ 7,500,000	$ 25,900,000	$ 21,400,000
Depreciation expense with cost of revenue		1,300,000	$ 1,300,000	3,800,000	$ 3,000,000
Property, Plant and Equipment [Line Items]
Write down amount		282,065,000		282,065,000		$ 286,458,000
Cable-ships and submersibles
Property, Plant and Equipment [Line Items]
Net book value of equipment under capital leases		46,500,000		46,500,000		$ 51,000,000
Other
Property, Plant and Equipment [Line Items]
Impairment charges	$ 1,200,000
Other \| Computer software and other fixed assets
Property, Plant and Equipment [Line Items]
Write down amount		$ 0		$ 0

Goodwill and Intangibles, net - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Fair value goodwill	$ 96,990		$ 96,990		$ 98,086
Impairment charge			587
Amortization expense	1,400	$ 900	4,100	$ 2,800
Other
Finite-Lived Intangible Assets [Line Items]
Fair value goodwill	1,795		1,795		$ 2,382
Impairment charge			587
NerVve \| Other
Finite-Lived Intangible Assets [Line Items]
Fair value goodwill	$ 0		$ 0

Goodwill and Intangibles, net - Changes in the Carrying Amount of Goodwill (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($)
Goodwill [Roll Forward]
Beginning balance	$ 98,086
Measurement period adjustment	(509)
Impairments	(587)
Ending balance	96,990
Construction
Goodwill [Roll Forward]
Beginning balance	36,317
Measurement period adjustment	0
Impairments	0
Ending balance	36,317
Marine Services
Goodwill [Roll Forward]
Beginning balance	2,468
Measurement period adjustment	0
Impairments	0
Ending balance	2,468
Energy
Goodwill [Roll Forward]
Beginning balance	2,631
Measurement period adjustment	(509)
Impairments	0
Ending balance	2,122
Telecom
Goodwill [Roll Forward]
Beginning balance	3,378
Measurement period adjustment	0
Impairments	0
Ending balance	3,378
Insurance
Goodwill [Roll Forward]
Beginning balance	47,290
Measurement period adjustment	0
Impairments	0
Ending balance	47,290
Life Sciences
Goodwill [Roll Forward]
Beginning balance	3,620
Measurement period adjustment	0
Impairments	0
Ending balance	3,620
Other
Goodwill [Roll Forward]
Beginning balance	2,382
Measurement period adjustment	0
Impairments	(587)
Ending balance	$ 1,795

Goodwill and Intangibles, net - Indefinite-lived Intangible Assets (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Acquired Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 8,842
State licenses
Acquired Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	2,450
Developed technology
Acquired Indefinite-lived Intangible Assets [Line Items]
Indefinite-lived intangible assets	$ 6,392

Goodwill and Intangibles, net - Definite Lived Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 39,581	$ 39,395
Accumulated Amortization	(12,642)	(8,515)
Net	$ 26,939	$ 30,880
Trade names
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Original Useful Life	9 years	9 years
Gross Carrying Amount	$ 13,011	$ 13,004
Accumulated Amortization	(4,235)	(3,113)
Net	$ 8,776	$ 9,891
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Original Useful Life	12 years	12 years
Gross Carrying Amount	$ 20,865	$ 20,865
Accumulated Amortization	(4,057)	(2,194)
Net	$ 16,808	$ 18,671
Developed technology
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Original Useful Life	5 years	5 years
Gross Carrying Amount	$ 4,739	$ 4,739
Accumulated Amortization	(4,192)	(3,197)
Net	$ 547	$ 1,542
Other
Finite-Lived Intangible Assets [Line Items]
Weighted-Average Original Useful Life	3 years	3 years
Gross Carrying Amount	$ 966	$ 787
Accumulated Amortization	(158)	(11)
Net	$ 808	$ 776

Goodwill and Intangibles, net - Estimated Amortization Expense (Details) $ in Thousands	Sep. 30, 2017 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2018	$ (3,254)
2019	(3,001)
2020	(2,879)
2021	(2,698)
2022	$ (2,610)

Life, Accident and Health Reserves - By Product Line (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Liability for Claims and Claims Adjustment Expense [Line Items]
Total life, accident and health reserves	$ 1,683,568	$ 1,648,565
Long-term care insurance reserves
Liability for Claims and Claims Adjustment Expense [Line Items]
Total life, accident and health reserves	1,442,586	1,407,848
Traditional life insurance reserves
Liability for Claims and Claims Adjustment Expense [Line Items]
Total life, accident and health reserves	100,076	102,077
Other accident and health insurance reserves
Liability for Claims and Claims Adjustment Expense [Line Items]
Total life, accident and health reserves	$ 140,906	$ 138,640

Life, Accident and Health Reserves - Liability for Claims of Long-Term Care Insurance Reserves (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Beginning balance	$ 1,648,565
Paid related to insured events of:
Ending balance	1,683,568
Other Long Duration Insurance Product Line
Liability for Unpaid Claims and Claims Adjustment Expense [Roll Forward]
Beginning balance	226,970	$ 208,150
Less: recoverable from reinsurers	(97,858)	(94,041)
Beginning balance, net	129,112	114,109
Incurred related to insured events of:
Current year	44,611	39,258
Prior years	(1,449)	(243)
Total incurred	43,162	39,015
Paid related to insured events of:
Current year	(4,054)	(3,965)
Prior years	(30,505)	(28,379)
Total paid	(34,559)	(32,344)
Interest on liability for policy and contract claims	3,639	3,239
Ending balance, net	141,354	124,019
Add: recoverable from reinsurers	115,176	95,098
Ending balance	$ 256,530	$ 219,117

Accounts Payable and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Payables and Accruals [Abstract]
Accounts payable	$ 70,180	$ 66,792
Accrued interconnection costs	96,481	93,661
Accrued payroll and employee benefits	33,981	28,668
Accrued interest	14,723	3,056
Accrued income taxes	9,271	3,983
Accrued expenses and other current liabilities	70,460	55,573
Total accounts payable and other current liabilities	$ 295,096	$ 251,733

Long-term Obligations - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands		1 Months Ended	9 Months Ended
	May 06, 2014	Jan. 31, 2017	Sep. 30, 2017	May 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total			$ 503,756		$ 438,419
Original issue discount and debt issuance costs on Senior Secured Notes			(7,164)		(9,923)
Total long-term obligations			496,592		428,496
11.0% Senior Secured Notes, due in 2019
Debt Instrument [Line Items]
Interest rate (as a percent)		11.00%
11.0% Senior Secured Notes, due in 2019 \| Secured Debt
Debt Instrument [Line Items]
Long-term debt			400,000		307,000
11.0% Senior Secured Bridge Note, due in 2019 (the 11.0% Bridge Notes) \| Secured Debt
Debt Instrument [Line Items]
Long-term debt			$ 0		35,000
Interest rate (as a percent)			11.00%
GMSL
Debt Instrument [Line Items]
Obligations under capital leases			$ 48,968		49,717
GMSL \| Notes payable and revolving lines of credit, various maturity dates
Debt Instrument [Line Items]
Long-term debt			16,912		17,522
GMSL \| LIBOR plus 3.65% Notes, due in 2019
Debt Instrument [Line Items]
Long-term debt			0		3,026
DBMG \| LIBOR plus 3.65% Notes, due in 2019 \| Real Estate Term Advance
Debt Instrument [Line Items]
Long-term debt			0
DBMG \| LIBOR plus 2.5% Notes, due in 2018 and 2019
Debt Instrument [Line Items]
Long-term debt			4,500
DBMG \| LIBOR plus 2.5% Notes, due in 2018 and 2019 \| Real Estate Term Advance
Debt Instrument [Line Items]
Long-term debt			7,414		9,439
Basis spread on variable rate (as a percent)	2.50%
ANG
Debt Instrument [Line Items]
Other			246		75
ANG \| 5.5% Term Loan, due in 2018
Debt Instrument [Line Items]
Long-term debt			$ 376		501
Interest rate (as a percent)			5.50%
ANG \| 4.5% Note due in 2022
Debt Instrument [Line Items]
Long-term debt			$ 12,727		13,343
Interest rate (as a percent)			4.50%
ANG \| 5.04% Term Loan due in 2022
Debt Instrument [Line Items]
Long-term debt			$ 13,717		0
Interest rate (as a percent)			5.04%	5.04%
ANG \| 4.25% Seller Note, due in 2022
Debt Instrument [Line Items]
Long-term debt			$ 2,463		2,796
Interest rate (as a percent)			4.25%
ANG \| LIBOR plus 3.0% Pioneer Demand Note \| Line of Credit
Debt Instrument [Line Items]
Long-term debt			$ 933		$ 0
LIBOR \| GMSL \| LIBOR plus 3.65% Notes, due in 2019
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			3.65%
LIBOR \| DBMG \| LIBOR plus 2.5% Notes, due in 2018 and 2019 \| Real Estate Term Advance
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			2.50%
LIBOR \| ANG \| LIBOR plus 3.0% Pioneer Demand Note \| Line of Credit
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		3.00%	3.00%

Long-term Obligations - HC2 and HC22 (Details) - 11.0% Senior Secured Notes, due in 2019 - USD ($)	Jun. 30, 2017	Jan. 31, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Interest rate (as a percent)		11.00%
Aggregate principal amount	$ 38,000,000.0	$ 55,000,000.0	$ 35,000,000

Long-term Obligations - DBMG Credit Facilities (Details) - DBMG - USD ($)		9 Months Ended
	May 06, 2014	Sep. 30, 2017	Dec. 31, 2016
LIBOR plus 2.5% Notes, due in 2018 and 2019
Line of Credit Facility [Line Items]
Outstanding debt		$ 4,500,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit, maximum amount		$ 50,000,000
Basis spread on variable rate (as a percent)		2.00%
Revolving Credit Facility \| LIBOR plus 2.5% Notes, due in 2018 and 2019
Line of Credit Facility [Line Items]
Proceeds from note payable collateralized (up to)	$ 10,000,000
Letter of Credit
Line of Credit Facility [Line Items]
Line of credit, maximum amount		$ 14,500,000.0
Outstanding letters of credit		8,800,000
Line of credit outstanding amount		0
Real Estate Term Advance
Line of Credit Facility [Line Items]
Debt term	5 years
Real Estate Term Advance \| Note Payable Collateralized by Real Estate
Line of Credit Facility [Line Items]
Outstanding debt		2,900,000
Real Estate Term Advance \| LIBOR plus 2.5% Notes, due in 2018 and 2019
Line of Credit Facility [Line Items]
Basis spread on variable rate (as a percent)	2.50%
Outstanding debt		7,414,000	$ 9,439,000
Real Estate Term Advance \| LIBOR plus 3.65% Notes, due in 2019
Line of Credit Facility [Line Items]
Outstanding debt		$ 0
Real Estate Term Advance \| Revolving Credit Facility \| Note Payable Collateralized by Real Estate
Line of Credit Facility [Line Items]
Proceeds from note payable collateralized (up to)	$ 5,000,000

Long-term Obligations - GMSL Capital Leases (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2017 USD ($) vessel lease	Dec. 31, 2016 USD ($)	May 31, 2016
Debt Instrument [Line Items]
Number of leases \| lease	2
Number of vessels \| vessel	2
Innovator Lease
Debt Instrument [Line Items]
Interest rate (as a percent)			10.40%
Cable Lease
Debt Instrument [Line Items]
Interest rate (as a percent)			4.00%
GMSL
Debt Instrument [Line Items]
Obligations under capital leases \| $	$ 48,968	$ 49,717

Long-term Obligations - ANG Term Loan (Details) - ANG - USD ($)	1 Months Ended	3 Months Ended	9 Months Ended
	Jan. 31, 2017	Sep. 30, 2017	Sep. 30, 2017	May 31, 2017	Dec. 31, 2016
4.5% Note due in 2022
Debt Instrument [Line Items]
Outstanding debt		$ 12,727,000	$ 12,727,000		$ 13,343,000
Interest rate (as a percent)		4.50%	4.50%
5.04% Term Loan due in 2022
Debt Instrument [Line Items]
Outstanding debt		$ 13,717,000	$ 13,717,000		0
Interest rate (as a percent)		5.04%	5.04%	5.04%
Increase in term loan		$ 2,500,000
Term Loan \| 4.5% Note due in 2022
Debt Instrument [Line Items]
Interest rate (as a percent)	4.50%
Line of Credit \| LIBOR plus 2.0% Line of Credit
Debt Instrument [Line Items]
Outstanding debt		933,000	$ 933,000		$ 0
Aggregate principal amount		$ 1,500,000.0	$ 1,500,000.0
Revolving Credit Facility \| 4.5% Note due in 2022
Debt Instrument [Line Items]
Outstanding debt	$ 1,000,000
LIBOR \| Line of Credit \| LIBOR plus 2.0% Line of Credit
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	3.00%		3.00%

Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Operating Loss Carryforwards [Line Items]
Income tax (expense) benefit	$ 12,861	$ (1,334)	$ 16,167	$ (3,649)
Federal Tax
Operating Loss Carryforwards [Line Items]
NOL carryforward					$ 95,300
Section 382 base limit					77,800
Federal Tax \| Subsidiaries
Operating Loss Carryforwards [Line Items]
NOL carryforward					$ 21,600

Commitments and Contingencies (Details) - USD ($) $ in Millions	2 Months Ended	9 Months Ended
	Oct. 31, 2016	Sep. 30, 2017	Dec. 31, 2016	Nov. 06, 2014
Loss Contingencies [Line Items]
Common stock, shares issued (in shares)		43,382,926	42,070,675
Global Marine Dispute
Loss Contingencies [Line Items]
Invoices rejected		$ 17.0
Loss contingency, damages paid		8.1
Loss contingency accrual		$ 8.9
Global Marine Dispute \| Mistaken Payment
Loss Contingencies [Line Items]
Damages incurred (in excess of)	$ 30.0
Global Marine Dispute \| Liquidated Damages
Loss Contingencies [Line Items]
Damages incurred (in excess of)	$ 1.2
DBMG
Loss Contingencies [Line Items]
Common stock, shares issued (in shares)				721,000

Employee Retirement Plans - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Retirement Benefits [Abstract]
Service cost - benefits earning during the period	$ 0	$ 17	$ 0	$ 52
Interest cost on projected benefit obligation	1,403	1,878	4,209	5,633
Expected return on assets	(1,921)	(1,991)	(5,764)	(5,974)
Foreign currency gain (loss)	7	3	22	9
Net periodic benefit cost (income)	$ (511)	$ (93)	$ (1,533)	$ (280)

Employee Retirement Plans - Narrative (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Retirement Benefits [Abstract]
Expected contributions		$ 8.8
Contribution made	$ 3.0

Share-based Compensation - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016	Apr. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)			331,616	1,506,848
Weighted average fair value at date of grant for options granted (in usd per share)			$ 2.72	$ 1.09
Share-based compensation expense	$ 1.4	$ 1.8	$ 4.0	$ 6.7
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Maximum vesting period			3 years
Weighted average remaining period			1 year 8 months 27 days
Intrinsic value of options outstanding	3.2		$ 3.2
Average remaining life of option outstanding			7 years 4 months 17 days
Intrinsic value of exercisable options	3.2		$ 3.2
Average remaining life of exercisable options			7 years 22 days
Compensation expense	$ 1.6		$ 1.6
Unvested shares expected to vest (in shares)	1,645,159		1,645,159
Weighted average remaining life			8 years 4 months 21 days
Weighted average exercise price (in usd per share)	$ 8.90		$ 8.90
Intrinsic value	$ 0.0		$ 0.0
Restricted Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense	$ 4.0		$ 4.0
Weighted average remaining period			2 years 2 months 23 days
Shares expected to vest (in shares)	860,052		860,052		115,921
Philip Falcone
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options granted (in shares)				6,848
Omnibus Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock shares authorized to issue (in shares)	3,500,000		3,500,000			1,500,000

Share-based Compensation - Fair Value of Each Option Grant Estimated (Details)	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate minimum	1.11%	1.27%
Risk-free interest rate maximum	2.22%	1.35%
Expected volatility minimum	47.04%	39.58%
Expected volatility maximum	48.29%	55.58%
Dividend yield	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option life (in years)	4 months 21 days	4 years 8 months 12 days
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected option life (in years)	6 years 1 month 6 days	6 years

Share-based Compensation - Summary of Company's Restricted Stock Activity (Details) - Restricted Stock	9 Months Ended
	Sep. 30, 2017 $ / shares shares
Shares
Unvested at beginning of period (in shares) \| shares	115,921
Granted (in shares) \| shares	1,061,794
Vested (in shares) \| shares	(317,663)
Unvested at end of period (in shares) \| shares	860,052
Weighted Average Grant Date Fair Value
Unvested at beginning of period (in usd per share) \| $ / shares	$ 5.59
Granted (in usd per share) \| $ / shares	5.64
Vested (in usd per share) \| $ / shares	5.37
Unvested at end of period (in usd per share) \| $ / shares	$ 5.73

Share-based Compensation - Summary of Company's Stock Option Activity (Details) - $ / shares	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Shares
Outstanding at beginning of period (in shares)	6,829,097.00
Granted (in shares)	331,616	1,506,848
Exercised (in shares)	(134,539)
Forfeited (in shares)	0
Expired (in shares)	(36,318)
Outstanding at end of period (in shares)	6,989,856
Eligible for exercise (in shares)	5,344,697
Weighted Average Exercise Price
Outstanding at beginning of period (in usd per share)	$ 6.58
Granted (in usd per share)	5.50
Exercised (in usd per share)	3.53
Forfeited (in usd per share)	0.00
Expired (in usd per share)	9.00
Outstanding at end of period (in usd per share)	6.57
Eligible for exercise (in usd per share)	$ 5.85

Equity - Preferred Stock (Details) - $ / shares	Sep. 30, 2017	Dec. 31, 2016
Class of Stock [Line Items]
Par value (in dollars per share)	$ 0.001	$ 0.001
Shares authorized (in shares)	20,000,000	20,000,000
Series A shares issued and outstanding
Class of Stock [Line Items]
Shares issued (in shares)	12,500	14,808
Shares outstanding (in shares)	12,500	14,808
Series A-1 shares issued and outstanding
Class of Stock [Line Items]
Shares issued (in shares)	0	1,000
Shares outstanding (in shares)	0	1,000
Series A-2 shares issued and outstanding
Class of Stock [Line Items]
Shares issued (in shares)	14,000	14,000
Shares outstanding (in shares)	14,000	14,000

Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands					9 Months Ended
	May 02, 2017	Oct. 07, 2016	Aug. 02, 2016	Jan. 05, 2015	Sep. 30, 2017	Sep. 30, 2016
Class of Warrant or Right [Line Items]
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%
Ownership interest (at least)					15.00%
Conversion of preferred stock to common stock					$ 2,839	$ 9,363
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%
Series A-1 Convertible Preferred Stock \| Minimum
Class of Warrant or Right [Line Items]
Intrinsic value (in usd per share)					$ 4.25
Series A-2 Preferred Stock
Class of Warrant or Right [Line Items]
Preferred stock conversion price (in usd per share)				$ 7.80
Series A and Series A-1 Preferred
Class of Warrant or Right [Line Items]
Percent of shares issued (at least)					80.00%
Board rights percent (more than 5% less than)					5.00%
Common Stock
Class of Warrant or Right [Line Items]
Common stock (in shares)	17,500
Fair value upon issuance	$ 100
Conversion of preferred stock to common stock			$ 700
Common Stock
Class of Warrant or Right [Line Items]
Issuance and sale of common stock (in shares)					374,000	264,000
Conversion of preferred stock to common stock					$ 1	$ 3
DG Value Partners, LP and DG Value Partners II Master Funds LP \| Series A shares issued and outstanding
Class of Warrant or Right [Line Items]
Number of shares of preferred stock converted (in shares)	2,308
DG Value Partners, LP and DG Value Partners II Master Funds LP \| Series A-1 Convertible Preferred Stock
Class of Warrant or Right [Line Items]
Number of shares of preferred stock converted (in shares)	1,000
DG Value Partners, LP and DG Value Partners II Master Funds LP \| Common Stock
Class of Warrant or Right [Line Items]
Number of shares of common stock from conversion (in shares)	803,469
Corrib Master Fund, Ltd. \| Series A shares issued and outstanding
Class of Warrant or Right [Line Items]
Number of shares of preferred stock converted (in shares)			1,000		1,141
Issuance and sale of common stock (in shares)			1,000
Corrib Master Fund, Ltd. \| Common Stock
Class of Warrant or Right [Line Items]
Number of shares of common stock from conversion (in shares)			238,492
Issuance and sale of common stock (in shares)			15,318
Luxor Capital Partners, LP \| Series A shares issued and outstanding
Class of Warrant or Right [Line Items]
Number of shares of preferred stock converted (in shares)					10,139
Luxor Capital Partners, LP \| Common Stock
Class of Warrant or Right [Line Items]
Number of shares of common stock from conversion (in shares)			2,119,765
Issuance and sale of common stock (in shares)			136,149
Luxor Capital Partners, LP \| Series A-1 shares issued and outstanding
Class of Warrant or Right [Line Items]
Number of shares of preferred stock converted (in shares)			9,000
Issuance and sale of common stock (in shares)			9,000
Corrib Master Fund, Ltd. and Luxor Capital Partners, LP
Class of Warrant or Right [Line Items]
Percent of accrued value					1.875%
Hudson Bay Absolute Return Credit Opportunities Master Fund, LTD. \| Series A shares issued and outstanding
Class of Warrant or Right [Line Items]
Number of shares of preferred stock converted (in shares)		12,500			12,499
Number of shares of common stock from conversion (in shares)					2,980,912
Hudson Bay Absolute Return Credit Opportunities Master Fund, LTD. \| Common Stock
Class of Warrant or Right [Line Items]
Number of shares of common stock from conversion (in shares)					770,926
Additional share consideration valued at					$ 4,400
Number of shares converted (in shares)		3,751,838
Recurring
Class of Warrant or Right [Line Items]
Additional share consideration valued at					$ 1,500

Equity - Summary of Cash Dividends (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017
Equity [Abstract]
Declaration Date	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017
Holders of Record Date	Sep. 30, 2017	Jun. 30, 2017	Mar. 31, 2017
Payment/Accrual Date	Oct. 16, 2017	Jul. 17, 2017	Apr. 17, 2017
Total Dividend	$ 500	$ 500	$ 563

Related Parties - Narrative (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
GMH
Related Party Transaction [Line Items]
Management fees paid	$ 0.1	$ 0.2	$ 0.5
Affiliated Entity \| Harbinger Capital Partners
Related Party Transaction [Line Items]
Expenses under service agreement	1.2	$ 1.2	3.1	$ 2.7
Life Sciences \| R2 Dermatology, Inc.
Related Party Transaction [Line Items]
Milestone achievement amount to be paid	2.0		2.0
Life Sciences \| Blossom Innovations, LLC
Related Party Transaction [Line Items]
Milestone achievement amount to be paid	$ 1.5		$ 1.5

Related Parties - Summary of Balance Outstanding of Related Parties (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016	Dec. 31, 2016
Related Party Transactions [Abstract]
Net revenue	$ 4,174	$ 14,409	$ 16,271	$ 25,904
Operating expenses	1,258	945	6,089	3,102
Interest expense	351	377	1,047	1,130
Dividends received	2,027	$ 0	2,659	$ 418
Accounts receivable	3,975		3,975		$ 2,644
Long-term debt	35,300		35,300		34,766
Accounts payable	$ 2,375		$ 2,375		$ 2,760

Operating Segment and Related Information - Narrative (Details)	9 Months Ended
	Sep. 30, 2017 segment
Segment Reporting [Abstract]
Number of reportable geographic segments	2
Number of reportable operating segments	7

Operating Segment and Related Information - Geographic and Operating Segments (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 406,409	$ 413,084	$ 1,175,629	$ 1,104,121
Income (loss) from operations	10,565	6,854	342	(6,418)
Interest expense	(13,222)	(10,719)	(39,410)	(31,614)
Gain on contingent consideration	6,320	1,381	6,001	1,573
Income from equity investees	971	335	12,667	3,153
Other expenses, net	(97)	(4,584)	(8,112)	(5,793)
Income (loss) from continuing operations before income taxes	4,537	(6,733)	(28,512)	(39,099)
Income tax (expense) benefit	(12,861)	1,334	(16,167)	3,649
Net loss	(8,324)	(5,399)	(44,679)	(35,450)
Less: Net loss attributable to noncontrolling interest and redeemable noncontrolling interest	2,357	841	6,305	2,365
Net loss attributable to HC2 Holdings, Inc.	(5,967)	(4,558)	(38,374)	(33,085)
Less: Preferred stock and deemed dividends from conversions	703	2,948	2,079	5,061
Net loss attributable to common stock and participating preferred stockholders	(6,670)	(7,506)	(40,453)	(38,146)
Depreciation and amortization	7,896	5,961	22,588	18,163
Capital Expenditures	8,305	7,800	25,324	21,192
Construction
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	151,697	129,551	403,325	372,964
Income (loss) from operations	12,198	12,339	25,911	35,421
Depreciation and amortization	1,314	431	4,194	1,263
Capital Expenditures	2,517	1,506	9,729	5,317
Marine Services
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	42,817	50,653	123,382	116,298
Income (loss) from operations	(181)	4,794	(1,726)	(214)
Depreciation and amortization	6,221	5,554	16,561	16,793
Capital Expenditures	3,463	5,682	8,195	9,480
Energy
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	3,919	1,664	12,301	4,151
Income (loss) from operations	(1,161)	149	(1,784)	59
Depreciation and amortization	1,247	582	3,876	1,479
Capital Expenditures	2,099	103	6,540	5,420
Telecommunications
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	167,881	194,411	520,214	508,248
Income (loss) from operations	1,374	2,218	5,023	3,434
Depreciation and amortization	94	144	285	389
Capital Expenditures	7	254	47	574
Insurance
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	37,737	34,546	112,032	99,847
Income (loss) from operations	17,476	(338)	20,704	(5,916)
Depreciation and amortization	(1,319)	(1,162)	(3,440)	(2,902)
Capital Expenditures	0	0	383	0
Life Sciences
Revenues from External Customers and Long-Lived Assets [Line Items]
Income (loss) from operations	(6,437)	(2,538)	(13,167)	(7,282)
Depreciation and amortization	50	32	129	87
Capital Expenditures	197	14	395	144
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	2,358	2,259	4,375	2,613
Income (loss) from operations	(1,383)	(2,318)	(7,164)	(6,583)
Depreciation and amortization	272	380	933	1,054
Capital Expenditures	4	27	17	38
Non-operating Corporate
Revenues from External Customers and Long-Lived Assets [Line Items]
Income (loss) from operations	(11,321)	(7,452)	(27,455)	(25,337)
Depreciation and amortization	17	0	50	0
Capital Expenditures	18	214	18	219
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	358,743	272,395	1,039,252	768,849
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	42,233	139,981	112,958	332,318
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Net revenue	$ 5,433	$ 708	$ 23,419	$ 2,954

Operating Segment and Related Information - Long-term investments, Property and Equipment and Assets (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Revenues from External Customers and Long-Lived Assets [Line Items]
Investments	$ 1,521,609	$ 1,427,918
Property, Plant and Equipment—Net	282,065	286,458
Total Assets	2,971,344	2,835,276
United States
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, Plant and Equipment—Net	140,892	136,905
United Kingdom
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, Plant and Equipment—Net	134,867	141,946
Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Property, Plant and Equipment—Net	6,306	7,607
Operating Segments \| Marine Services
Revenues from External Customers and Long-Lived Assets [Line Items]
Investments	57,870	40,698
Total Assets	291,464	275,660
Operating Segments \| Insurance
Revenues from External Customers and Long-Lived Assets [Line Items]
Investments	1,468,738	1,407,996
Total Assets	2,101,706	2,027,059
Operating Segments \| Life Sciences
Revenues from External Customers and Long-Lived Assets [Line Items]
Investments	19,087	13,067
Total Assets	32,711	28,868
Operating Segments \| Other
Revenues from External Customers and Long-Lived Assets [Line Items]
Investments	5,071	6,778
Total Assets	11,900	10,914
Operating Segments \| Telecommunications
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Assets	123,257	125,965
Operating Segments \| Construction
Revenues from External Customers and Long-Lived Assets [Line Items]
Investments	1,050	0
Total Assets	299,727	295,246
Operating Segments \| Energy
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Assets	86,892	84,602
Operating Segments \| Non-operating Corporate
Revenues from External Customers and Long-Lived Assets [Line Items]
Total Assets	53,894	27,583
Eliminations
Revenues from External Customers and Long-Lived Assets [Line Items]
Investments	(30,207)	(40,621)
Total Assets	$ (30,207)	$ (40,621)

Backlog (Details) - DBMG $ in Millions	9 Months Ended
Backlog (Details) - DBMG $ in Millions	Sep. 30, 2017 USD ($) contract	Dec. 31, 2016 USD ($)
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Backlog	$ 656.1	$ 503.5
Contracts or Purchase Orders
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Backlog	483.4	441.1
Letters of Intent
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Backlog	172.7	$ 62.4
Five Contracts, Letters of Intent, Notices to Proceed or Purchase Orders
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Backlog	$ 408.1
Backlog percentage	62.20%
Number of contracts attributable to backlog \| contract	5

Basic and Diluted Loss Per Common Share - Narrative (Details) - shares	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Dilutive common share equivalents (in shares)	0	0	0	0

Basic and Diluted Loss Per Common Share - Basic Income (Loss) Per Common Share to Diluted Income (Loss) Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share [Abstract]
Net loss attributable to common stock and participating preferred stockholders	$ (6,670)	$ (7,506)	$ (40,453)	$ (38,146)
Participating shares at end of period:
Weighted-average Common stock outstanding (in shares)	43,013	36,627	42,555	35,808
Percentage of loss allocated to:
Common Stock	100.00%	100.00%	100.00%	100.00%
Preferred Stock	0.00%	0.00%	0.00%	0.00%
Loss attributable to common shares - basic and diluted
Net Loss	$ (6,670)	$ (7,506)	$ (40,453)	$ (38,146)
Denominator for basic and diluted earnings per share
Weighted-average Common stock outstanding (in shares)	43,013	36,627	42,555	35,808
Basic and Diluted earnings per share
Net loss attributable to common stock and participating preferred stockholders - basic and diluted (in dollars per share)	$ (0.16)	$ (0.20)	$ (0.95)	$ (1.07)

Subsequent Events (Details) $ / shares in Units, $ in Thousands				1 Months Ended	9 Months Ended
	Nov. 29, 2017 USD ($)	Nov. 01, 2017 $ / shares	Oct. 26, 2017 operating_station city	Oct. 31, 2017 USD ($) operating_station	Sep. 30, 2017 USD ($)	Sep. 30, 2016 USD ($)	Nov. 09, 2017 USD ($)
Subsequent Event [Line Items]
Dividend payout					$ 500	$ 800
DBMG \| Subsequent Event
Subsequent Event [Line Items]
Cash dividend (in dollars per share) \| $ / shares		$ 1.29
Subsidiary Of Fugro N.V. (AMS:FUR) \| Global Marine Group \| Subsequent Event
Subsequent Event [Line Items]
Consideration paid				$ 73,000
Obligation payment amount				$ 7,500
Obligation payment threshold				1 year
DTV \| Subsequent Event
Subsequent Event [Line Items]
Percentage of ownership interest acquired (over 50%)				50.00%
Mako \| Subsequent Event
Subsequent Event [Line Items]
Number of operating stations acquired \| operating_station			38
Number of cities with operating stations \| city			28
Three Angels Broadcasting Network, Inc. \| Subsequent Event
Subsequent Event [Line Items]
Consideration paid				$ 9,600
Number of operating stations acquired \| operating_station				14
Global Marine Holdings, LLC \| Subsidiary Of Fugro N.V. (AMS:FUR) \| Subsidiary Of Fugro N.V. (AMS:FUR) \| Subsequent Event
Subsequent Event [Line Items]
Percentage of ownership interest acquired (over 50%)				23.60%
Equity interest value				$ 65,000
Scenario, Forecast \| Subsequent Event
Subsequent Event [Line Items]
Dividends received	$ 4,500
Scenario, Forecast \| DBMG \| Subsequent Event
Subsequent Event [Line Items]
Dividend payout	$ 5,000
Bridge Loan \| Scenario, Forecast
Subsequent Event [Line Items]
Aggregate principal amount							$ 75,000
Debt Instrument, Redemption, Period One \| Secured Debt \| Subsidiary Of Fugro N.V. (AMS:FUR) \| Global Marine Group \| Subsequent Event
Subsequent Event [Line Items]
Interest rate (as a percent)				4.00%
Debt Instrument, Redemption, Period Two \| Secured Debt \| Subsidiary Of Fugro N.V. (AMS:FUR) \| Global Marine Group \| Subsequent Event
Subsequent Event [Line Items]
Interest rate (as a percent)				10.00%
Debt term				365 days