“Other assets” in the accompanying Consolidated Balance Sheets consist of the following:



	September 30,
	2016		2015
Prepaid expenses and other assets	$	137.6	$	133.1
Asset-based loans	35.0		226.7
Other investments	—		52.2
Total other assets	$	172.6	$	412.0

Asset-based Loans

As of September 30, 2016 and 2015, the Company’s portfolio of asset-based loans receivable originated by Salus and its co-lender Front Street consisted of the following:



	September 30,
	2016		2015
Asset-based loans, net of deferred fees, by major industry:
Apparel	$	18.8	$	66.0
Manufacturing	10.9		32.7
Jewelry	7.2		36.9
Electronics	3.1		45.9
Other	6.0		93.1
Total asset-based loans	46.0		274.6
Less: Allowance for credit losses	11.0		47.9
Total asset-based loans, net	$	35.0	$	226.7

The Company establishes its allowance for credit losses through a provision for credit losses based on Salus’ evaluation of the credit quality of its loan portfolio. The following table presents the activity in its allowance for credit losses for Fiscal 2016, 2015 and 2014:



	Fiscal
	2016			2015			2014
Allowance for credit losses:
Balance at beginning of year	$	47.9		$	5.5		$	4.0
Provision for credit losses	12.8			93.5			1.5
Charge-offs	(52.6		)	(51.1		)	—
Recoveries	2.9			—			—
Balance at end of year	$	11.0		$	47.9		$	5.5

Credit Quality Indicators

Salus monitors credit quality as indicated by various factors and utilizes such information in its evaluation of the adequacy of the allowance for credit losses. As of September 30, 2016 and 2015, loans with a net carrying value of $30.1 and $79.8, respectively, were considered delinquent by Salus and placed on non-accrual status. It is Salus’ policy to discontinue accruing interest on its loans when there is a reasonable doubt as to collectability in the normal course of business. Nonaccrual loans are considered impaired for reporting purposes and are individually evaluated for impairment.

Salus has assessed the adequacy of its allowance for credit losses and believes the level of allowance for credit losses to be adequate to mitigate inherent losses in the portfolio. During Fiscal 2014, there were no outstanding loans that had been individually considered impaired.

During Fiscal 2015, the bankruptcy court overseeing the Chapter 11 proceedings of RadioShack approved the sale of 1,743 of the company’s stores to General Wireless Inc., an affiliate of Standard General LP. Salus was the lender under RadioShack’s $250.0 term loan placed in December 2013 with a net exposure to Salus and Front Street of $93.0 and $7.0, respectively, after giving effect to a $50.0 participation by FGL and a non-qualifying participation of $100.0 held by a third party. During Fiscal 2015, the $100.0 held by a third party was repaid in full because this third party had the right of first payment in the case of a bankruptcy under an intercreditor agreement with Salus. During Fiscal 2015, the Company recognized charge-offs of $51.1, excluding any charge-offs related to FGL’s participations which are included in “(Loss) income from discontinued operations, net of tax” in the accompanying Consolidated Statements of Operations, and an additional net increase in the provision of credit losses of $19.2 related to the loan with RadioShack.

During Fiscal 2016, Salus and Front Street received a partial repayment on the loan to RadioShack of $45.4, excluding $22.7 repayment on FGL’s participation on the loan. At September 30, 2016, the Company expects an additional $3.0 of future recoveries of the loan to RadioShack, excluding $1.5 related to FGL’s participation on the loan that is included in “Assets of business held for sale” in the accompanying Consolidated Balance Sheets. As a result of the higher than expected recovery rates during Fiscal 2016, the Company reversed $18.0 of previously recorded allowance for credit losses, excluding $9.0 of realized gains by FGL recorded in “(Loss) income from discontinued operations, net of tax” in the accompanying Consolidated Statements of Operations. During Fiscal 2016, Salus recorded provision of credit losses of $30.8 related to delinquent loans unrelated to RadioShack where the underlying collateral was underperforming.



	Internal Risk Rating
	Pass		Special Mention		Substandard		Doubtful		Total
September 30, 2016	$	—	$	1.1	$	14.8	$	30.1	$	46.0
September 30, 2015	$	69.0	$	32.4	$	74.0	$	99.2	$	274.6

Concentrations of Credit Risk and Major Customers

The loans in the asset-based portfolio are collateralized with accounts receivable, inventory or other assets such as real estate or intellectual property. Salus is exposed to credit risk to the extent that the carrying value of the loans exceeds the realizable value of such underlying collateral. Inventory, accounts receivable and other assets represented 52.0%, 12.0% and 36.0%, respectively, of eligible collateral underlying the asset-based loans portfolio at September 30, 2016. The largest concentration to one single borrower represented 29.6% of the outstanding asset-based loans.

Concentrations of Asset-based Loans

As of September 30, 2016 and 2015, the Company’s most significant investment in one industry was the Company’s asset-based loan in the apparel industry with a carrying value of $18.8 and $66.0, respectively, or 40.9% and 24.0%, respectively of the Company’s asset-based loans. No investment in a single issuer exceeded 10% of the Company’s stockholders’ equity as of September 30, 2016 and 2015.

Other investments

The Company’s consolidated other investments included in “Other assets” at September 30, 2015, can be summarized as follows:



	September 30, 2015
	Cost or Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Carrying Value
Corporate fixed-maturity securities, available-for-sale	$	14.1	$	—	$	—	$	14.1	$	14.1
Equity securities - held for trading	18.7		14.1		—		32.8		32.8
Other invested assets	5.3		—		—		5.3		5.3
Total other investments	$	38.1	$	14.1	$	—	$	52.2	$	52.2