|
DREAMWORKS ANIMATION SKG, INC. | |||
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CONSOLIDATED STATEMENTS OF CASH FLOWS | |||
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(Unaudited) | |||
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Six Months Ended | ||
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June 30, | ||
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|
2014 |
|
2013 |
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(in thousands) | ||
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Operating activities |
|
|
|
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Net (loss) income |
$ (58,344) |
|
$ 28,362 |
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Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: |
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Amortization and write-off of film and other inventory costs(1) |
206,493 |
|
178,023 |
|
Amortization of intangible assets |
6,436 |
|
4,408 |
|
Stock-based compensation expense |
8,421 |
|
9,837 |
|
Amortization of deferred financing costs |
550 |
|
- |
|
Depreciation and amortization |
2,249 |
|
2,351 |
|
Change in fair value of contingent consideration |
(4,720) |
|
- |
|
Revenue earned against deferred revenue and other advances |
(32,584) |
|
(39,061) |
|
Income related to investment contributions |
(3,989) |
|
(10,700) |
|
Loss from equity method investees |
6,727 |
|
1,329 |
|
Deferred taxes, net |
(26,590) |
|
9,576 |
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Changes in operating assets and liabilities, net of the effects of acquisitions: |
- |
|
|
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Trade accounts receivable |
(15,691) |
|
7,208 |
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Receivables from distributors |
70,315 |
|
(18,933) |
|
Film and other inventory costs |
(236,376) |
|
(210,984) |
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Intangible assets |
- |
|
1,015 |
|
Prepaid expenses and other assets |
(14,312) |
|
(8,537) |
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Accounts payable and accrued liabilities |
(38,113) |
|
3,694 |
|
Payable to former stockholder |
(615) |
|
(14,929) |
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Income taxes payable/receivable, net |
7,353 |
|
2,212 |
|
Deferred revenue and other advances |
56,355 |
|
74,825 |
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Net cash (used in) provided by operating activities |
(66,435) |
|
19,696 |
|
|
|
|
|
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Investing activities |
|
|
|
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Investments in unconsolidated entities |
(13,365) |
|
(14,720) |
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Purchases of property, plant and equipment |
(17,653) |
|
(14,858) |
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Acquisitions of character and distribution rights |
(51,000) |
|
- |
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Acquisitions, net of cash acquired |
(12,605) |
|
(30,093) |
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Net cash used in investing activities |
(94,623) |
|
(59,671) |
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Financing activities |
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|
|
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Proceeds from stock option exercises |
261 |
|
- |
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Purchase of treasury stock |
(1,956) |
|
(25,854) |
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Borrowings from revolving credit facility |
110,000 |
|
45,000 |
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Repayments of borrowings from revolving credit facility |
(10,000) |
|
(10,000) |
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Net cash provided by financing activities |
98,305 |
|
9,146 |
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Effect of exchange rate changes on cash and cash equivalents |
(518) |
|
428 |
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Decrease in cash and cash equivalents |
(63,271) |
|
(30,401) |
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Cash and cash equivalents at beginning of period |
95,467 |
|
59,246 |
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Cash and cash equivalents at end of period |
$ 32,196 |
|
$ 28,845 |
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Non-cash investing activities: |
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Contingent consideration portion of business acquisition purchase price |
$ - |
|
$ 95,000 |
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Intellectual property and technology licenses granted in exchange for equity interest |
3,395 |
|
10,129 |
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Services provided in exchange for equity interest |
600 |
|
571 |
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Total non-cash investing activities |
$ 3,995 |
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$ 105,700 |
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Supplemental disclosure of cash flow information: |
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Cash refunded during the period for income taxes, net |
$ 608 |
|
$ 1,529 |
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Cash paid during the period for interest, net of amounts capitalized |
$ 5,273 |
|
$ 690 |
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(1) Included within this amount is depreciation and amortization, interest expense and stock-based compensation previously capitalized to "Film and other inventory costs." During the six months ended June 30, 2014 and 2013, these amounts totaled $14,066 and $17,378, respectively. |
