DREAMWORKS ANIMATION SKG, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Year Ended December 31,

2015

2014

(in thousands)

Operating activities

Net loss

$

(53,964)

$

(308,321)

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

Amortization and write-off of film and other inventory costs

441,207

625,567

Other impairments and write-offs

11,933

19,591

Amortization of intangible and other assets

23,596

14,544

Depreciation and amortization

30,196

6,491

Amortization of deferred financing costs

2,302

1,173

Amortization of deferred gain on sale-leaseback transaction

(1,993)

—

Stock-based compensation expense

21,156

19,302

Change in fair value of contingent consideration

—

(16,500)

Revenue earned against deferred revenue and other advances

(109,072)

(65,193)

Income related to investment contributions

(6,284)

(8,429)

Loss from equity method investees

15,491

13,808

Deferred taxes, net

1,062

222,066

Changes in operating assets and liabilities, net of the effects of acquisitions:

Restricted cash

25,201

(25,000)

Trade accounts receivable

(107,175)

(20,866)

Receivables from distributors

39,569

9,456

Film and other inventory costs

(411,444)

(484,285)

Prepaid expenses and other assets

(60,613)

(32,827)

Accounts payable and accrued liabilities

14,804

22,627

Payable to former stockholder

10,321

(251,854)

Income taxes payable/receivable, net

(1,657)

(836)

Deferred revenue and other advances

167,873

97,041

Net cash provided by (used in) operating activities

52,509

(162,445)

Investing activities

Investments in unconsolidated entities

(18,136)

(20,645)

Purchases of property, plant and equipment

(22,729)

(34,358)

Acquisitions of character and distribution rights

—

(51,000)

Acquisitions, net of cash acquired

—

(12,605)

Net cash used in investing activities

(40,865)

(118,608)

Financing activities

Proceeds from stock option exercises

—

12,167

Deferred financing costs

(6,286)

—

Purchase of treasury stock

(10,645)

(10,318)

Borrowings from revolving credit facility

425,405

250,000

Repayments of borrowings from revolving credit facility

(580,405)

(35,000)

Proceeds from lease financing obligation

199,203

—

Repayments of lease financing obligation

(1,378)

—

Contingent consideration payment

(335)

(79,665)

Proceeds from sale of non-controlling equity interest in ATV

—

81,250

Capital contributions from non-controlling interest holders

40,000

—

Distributions to non-controlling interest holder

(998)

(227)

Net cash provided by financing activities

64,561

218,207

Effect of exchange rate changes on cash and cash equivalents

382

1,606

Increase (decrease) in cash and cash equivalents

76,587

(61,240)

Cash and cash equivalents at beginning of year

34,227

95,467

Cash and cash equivalents at end of year

$

110,814

$

34,227

Non-cash investing activities:

Intellectual property and technology licenses granted in exchange for equity interest

$

6,085

$

7,730

Services provided in exchange for equity interest

199

776

Total non-cash investing activities

$

6,284

$

8,506

Supplemental disclosure of cash flow information:

Cash paid during the year for income taxes, net

$

4,994

$

1,209

Cash paid during the year for interest, net of amounts capitalized

$

23,719

$

14,325