

	September 30,
	2016			2015
ASSETS
Cash and cash equivalents	$	170.9		$	297.2
Receivables, net	0.1			0.8
Total current assets	171.0			298.0
Investments in consolidated subsidiaries (a)	1,870.1			2,040.8
Advances to consolidated subsidiaries	9.6			9.5
Deferred tax assets	351.2			2.0
Properties, net	1.1			1.3
Other assets	0.6			1.1
Total assets	$	2,403.6		$	2,352.7
LIABILITIES AND EQUITY
Accounts payable	$	0.2		$	1.6
Accrued and other current liabilities	48.2			51.8
Total current liabilities	48.4			53.4
Long-term debt	1,711.2			1,705.1
Employee benefit obligations	5.2			4.7
Deferred tax liabilities	—			2.0
Other liabilities	0.7			0.8
Total liabilities	1,765.5			1,766.0
Shareholders’ equity:
Common stock	2.0			2.0
Additional paid-in capital	1,447.1			1,458.5
Accumulated deficit	(1,031.9		)	(833.1		)
Accumulated other comprehensive income	220.9			(40.7		)
Total shareholders’ equity	638.1			586.7
Total liabilities and equity	$	2,403.6		$	2,352.7

(a) Includes $1,259.6 at September 30, 2016 related to the Company’s investment in FGL and $1,209.9 at September 30, 2015 related to the Company’s investments in FGL and Compass, which were classified as business held for sale and business in discontinued operations, respectively.

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

(continued)

HRG GROUP, INC. (Registrant Only)

STATEMENTS OF OPERATIONS

(In millions)



	Fiscal
	2016			2015			2014
Revenues	$	—		$	—		$	—
Cost of revenues	—			—			—
Gross profit	—			—			—
Operating expenses:
General and administrative	50.7			100.2			111.1
Acquisition related charges	0.2			0.4			4.2
Total operating expenses	50.9			100.6			115.3
Operating loss	(50.9		)	(100.6		)	(115.3		)
Other income (expense):
Equity in net (loss) income of subsidiaries (a)	(214.8		)	(357.2		)	207.7
Interest expense	(143.1		)	(124.2		)	(89.7		)
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			—			(12.7		)
Gain on contingent purchase price reduction	—			8.5			0.5
Other, net	2.0			15.2			0.1
Loss before income taxes	(406.8		)	(558.3		)	(9.4		)
Income tax (benefit) expense (b)	(208.0		)	(1.5		)	0.9
Net (loss)	(198.8		)	(556.8		)	(10.3		)
Less: Preferred stock dividends and accretion and loss on conversion	—			—			73.6
Net loss attributable to common and participating preferred stockholders	$	(198.8	)	$	(556.8	)	$	(83.9	)

(a) Includes $(243.4), $(243.5), and $74.4 for Fiscal 2016, 2015 and 2014, respectively, related to the Company’s investments in FGL and Compass, which were classified as discontinued operations.

(b) Includes income tax benefit of $(206.2) for Fiscal 2016 related to classifying the Company’s ownership interest in FGL as held for sale

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

(continued)

HRG GROUP, INC. (Registrant Only)

STATEMENTS OF CASH FLOWS

(In millions)



	Fiscal
	2016			2015			2014
Cash flows from operating activities:
Net loss	$	(198.8	)	$	(556.8	)	$	(10.3	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in net income of subsidiaries	214.8			357.2			(207.7		)
Dividends from subsidiaries	63.5			65.7			118.0
Depreciation of properties	0.3			0.5			0.2
Stock-based compensation	13.7			25.0			27.0
Amortization of debt issuance costs	2.7			4.4			3.5
Amortization of debt discount	3.3			1.8			1.5
Deferred income taxes	(205.8		)	—			—
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			—			12.7
Gain on contingent purchase price reduction	—			(8.5		)	(0.5		)
Changes in operating assets and liabilities:
Accounts payable and accrued and other current liabilities	(5.4		)	(35.4		)	43.5
Other operating activities	1.8			64.4			(0.7		)
Net change in cash due to operating activities	(109.9		)	(81.7		)	(12.8		)
Cash flows from investing activities:
Capital contributions to consolidated subsidiaries	(2.9		)	(406.4		)	(115.5		)
Capital expenditures	(0.1		)	(1.2		)	(0.3		)
Net change in cash due to investing activities	(3.0		)	(407.6		)	(115.8		)
Cash flows from financing activities:
Dividends paid on preferred stock	—			—			(28.6		)
Proceeds from senior secured notes	—			409.6			400.0
Debt issuance costs	—			(6.8		)	(10.4		)
Common stock repurchased	—			(22.1		)	(65.6		)
Share based award tax withholding payments	(17.8		)	(18.3		)	(6.5		)
Other financing activities	4.4			4.1			2.8
Net change in cash due to financing activities	(13.4		)	366.5			291.7
Net increase in cash and cash equivalents	(126.3		)	(122.8		)	163.1
Cash and cash equivalents at beginning of period	297.2			420.0			256.9
Cash and cash equivalents at end of period	$	170.9		$	297.2		$	420.0