HGI FUNDING, LLC STATEMENTS OF CASH FLOWS (In thousands)
| | | | | | | | | | | | | | | | Year ended September 30, | | | 2016 | | 2015 | | 2014 | Cash flows from operating activities: | | | | | | | Net income | | $ | 308,970 |
| | $ | 14,159 |
| | $ | 76,764 |
| Adjustments to reconcile net income to operating cash flows: | | | | | | | Net realized and unrealized gains on investments | | (299,941 | ) | | (9,833 | ) | | (70,792 | ) | Realized and unrealized foreign exchange gains on investments | | — |
| | — |
| | (54 | ) | Deemed contributed capital from HRG Group, Inc. for unreimbursed management services | | 42 |
| | 423 |
| | 295 |
| Amortization of discount on affiliate receivable | | — |
| | — |
| | (1,442 | ) | Changes in operating assets and liabilities: | | | | | | | Other assets | | (74 | ) | | (133 | ) | | (14 | ) | Other liabilities | | 98 |
| | 58 |
| | (300 | ) | Net change in cash due to operating activities | | 9,095 |
| | 4,674 |
| | 4,457 |
| Cash flows from investing activities: | | | | | | | Cost of investments acquired | | — |
| | — |
| | (83,417 | ) | Purchase of common stock of an affiliate | | (9,417 | ) | | (304,960 | ) | | (3,795 | ) | Proceeds from sales of investments | | 145,088 |
| | 70,786 |
| | 11,218 |
| Purchase of affiliate receivable | | — |
| | — |
| | (9,045 | ) | Net change in cash due to investing activities | | 135,671 |
| | (234,174 | ) | | (85,039 | ) | Cash flows from financing activities: | | | | | | | Return of capital to HRG Group, Inc. | | (189,731 | ) | | (82,762 | ) | | (4,181 | ) | Change in restricted cash | | (19 | ) | | 1,275 |
| | 255 |
| Contributed capital from HRG Group, Inc. | | 44,622 |
| | 309,551 |
| | 85,551 |
| Net change in cash due to financing activities | | (145,128 | ) | | 228,064 |
| | 81,625 |
| Net change in cash and cash equivalents | | (362 | ) | | (1,436 | ) | | 1,043 |
| Cash and cash equivalents at beginning of period | | 438 |
| | 1,874 |
| | 831 |
| Cash and cash equivalents at end of period | | $ | 76 |
| | $ | 438 |
| | $ | 1,874 |
| Supplemental disclosures of cash flow information: | | | | | | | Non-cash transaction: | | | | | | | Deemed distribution to HRG Group, Inc. | | $ | — |
| | $ | 10,307 |
| | $ | 13,537 |
|
See accompanying notes to financial statements.
|
