DREAMWORKSANIMATIONSKG,INC. CONSOLIDATEDBALANCESHEETS December31, 2003 2004 (in thousands) Assets Cash and cash equivalents ................................................. $ 41 $ 63,134 Trade accounts receivable, net of allowance for doubtful accounts ................. 132,329 14,015 Receivable from affiliate .................................................. — 372,116 Receivables from employees ............................................... 2,480 1,634 Film inventories, net ...................................................... 427,463 519,926 Property, plant, and equipment, net of accumulated depreciation and amortization ..... 89,777 85,997 Deferred costs, net of amortization of $838, and $1,438, respectively ............... 1,641 3,741 Deferred taxes, net ....................................................... — 93,343 Goodwill ............................................................... 26,462 34,216 Other assets ............................................................ 1,644 11,881 Total assets ............................................................. $681,837 $1,200,003 Liabilities and Stockholders’ Equity (Deficiency) Liabilities Accounts payable .................................................... $ 1,615 $ 4,414 Payable to stockholder ................................................ — 70,643 Accrued liabilities ................................................... 101,993 58,968 Other advances and unearned revenue .................................... 38,684 18,892 Obligations under capital leases ......................................... 3,732 2,993 Debt allocated by DreamWorks Studios .................................. 418,379 — Universal Studios advance ............................................. 50,325 75,000 Bankborrowings and other debt ........................................ 76,612 139,207 Total liabilities .......................................................... 691,340 370,117 Commitments and contingencies Non-controlling minority interest ........................................... 2,941 2,941 Stockholders’ equity (deficiency) Owners’ deficiency .................................................. (12,444) — Class A common stock, par value $.01 per share, 350,000,000 shares authorized, 52,107,616 shares outstanding ........................................ — 521 Class B common stock, par value $.01 per share, 150,000,000 shares authorized, 50,842,414 shares outstanding ........................................ — 508 Class C common stock, par value $.01 per share, one share authorized and outstanding ....................................................... — — Additional paid-in capital .............................................. — 693,198 Less: Deferred compensation ........................................... — (32,171) Retained earnings .................................................... — 165,320 Less: Treasury stock, at cost ........................................... — (431) Total stockholders’ equity (deficiency) ....................................... (12,444) 826,945 Total liabilities and stockholders’ equity (deficiency) ............................ $681,837 $1,200,003 See accompanying notes. 67