

	September 30,
	2015			2014
ASSETS
Cash and cash equivalents	$	297.2		$	420.0
Receivables, net	0.8			42.5
Total current assets	298.0			462.5
Investments in consolidated subsidiaries	2,040.8			2,357.4
Advances to consolidated subsidiaries	9.5			9.6
Properties, net	1.3			0.6
Deferred charges and other assets	34.4			31.6
Total assets	$	2,384.0		$	2,861.7
LIABILITIES AND EQUITY
Accounts payable	$	1.6		$	3.0
Accrued and other current liabilities	51.8			86.7
Total current liabilities	53.4			89.7
Long-term debt	1,736.4			1,325.0
Employee benefit obligations	4.7			4.3
Other liabilities	2.8			1.1
Total liabilities	1,797.3			1,420.1
Shareholders’ equity:
Common stock	2.0			2.0
Additional paid-in capital	1,458.5			1,472.3
Accumulated deficit	(833.1		)	(276.3		)
Accumulated other comprehensive income	(40.7		)	243.6
Total shareholders’ equity	586.7			1,441.6
Total liabilities and equity	$	2,384.0		$	2,861.7

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

(continued)

HRG GROUP, INC. (Registrant Only)

STATEMENTS OF OPERATIONS

(In millions)



	Fiscal
	2015			2014			2013
Revenues	$	—		$	—		$	—
Cost of revenues	—			—			—
Gross profit	—			—			—
Operating expenses:
General and administrative	100.2			111.1			77.4
Acquisition related charges	0.4			4.2			12.7
Total operating expenses	100.6			115.3			90.1
Operating loss	(100.6		)	(115.3		)	(90.1		)
Other income (expense):
Equity in net (loss) income of subsidiaries	(357.2		)	207.7			263.7
Interest expense	(124.2		)	(89.7		)	(120.1		)
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			(12.7		)	(101.6		)
Gain on contingent purchase price reduction	8.5			0.5			—
Other, net	15.2			0.1			1.1
Loss before income taxes	(558.3		)	(9.4		)	(47.0		)
Income tax (benefit) expense	(1.5		)	0.9			(1.2		)
Net loss	(556.8		)	(10.3		)	(45.8		)
Less: Preferred stock dividends and accretion and loss on conversion	—			73.6			48.4
Net loss attributable to common and participating preferred stockholders	$	(556.8	)	$	(83.9	)	$	(94.2	)

See accompanying Report of Independent Registered Public Accounting Firm.

SCHEDULE II

(continued)

HRG GROUP, INC. (Registrant Only)

STATEMENTS OF CASH FLOWS

(In millions)



	Fiscal
	2015			2014			2013
Cash flows from operating activities:
Net loss	$	(556.8	)	$	(10.3	)	$	(45.8	)
Adjustments to reconcile net loss to net cash used in operating activities:
Equity in net income of subsidiaries	357.2			(207.7		)	(263.7		)
Dividends from subsidiaries	65.7			118.0			127.1
Depreciation of properties	0.5			0.2			0.2
Stock-based compensation	25.0			27.0			11.7
Amortization of debt issuance costs	4.4			3.5			2.7
Amortization of debt discount	1.8			1.5			0.5
Write-off of debt issuance costs on retired debt	—			—			10.8
Write-off of debt discount on retired debt	—			—			2.1
Loss from the change in the fair value of the equity conversion feature of preferred stock	—			12.7			101.6
Gain on contingent purchase price reduction	(8.5		)	(0.5		)	—
Changes in operating assets and liabilities:
Accounts payable and accrued and other current liabilities	(35.4		)	43.5			51.4
Other operating activities	64.4			(0.7		)	11.6
Net change in cash due to operating activities	(81.7		)	(12.8		)	10.2
Cash flows from investing activities:
Proceeds from investments sold, matured or repaid	—			—			34.0
Capital contributions to consolidated subsidiaries	(406.4		)	(115.5		)	(454.4		)
Return of capital from subsidiary	—			—			126.8
Capital expenditures	(1.2		)	(0.3		)	(0.4		)
Net change in cash due to investing activities	(407.6		)	(115.8		)	(294.0		)
Cash flows from financing activities:
Dividends paid on preferred stock	—			(28.6		)	(33.4		)
Proceeds from senior secured notes	409.6			400.0			923.9
Repayment of senior secured notes, including tender / call premium	—			—			(545.9		)
Debt issuance costs	(6.8		)	(10.4		)	(25.1		)
Common stock repurchased	(22.1		)	(65.6		)	(12.3		)
Share based award tax withholding payments	(18.3		)	(6.5		)	(2.3		)
Other financing activities	4.1			2.8			—
Net change in cash due to financing activities	366.5			291.7			304.9
Net increase in cash and cash equivalents	(122.8		)	163.1			21.1
Cash and cash equivalents at beginning of period	420.0			256.9			235.8
Cash and cash equivalents at end of period	$	297.2		$	420.0		$	256.9