DREAMWORKS ANIMATION SKG, INC.

SEGMENT REVENUES AND GROSS PROFIT RECONCILIATION

(Unaudited)

Three Months Ended

Year Ended

December 31,

December 31,

2015

2014

2015

2014

(in thousands)

Revenues

Feature Films

$

146,397

$

131,343

$

520,102

$

453,475

Television Series and Specials

104,889

50,721

228,132

102,962

Consumer Products

31,740

22,094

86,501

64,817

New Media

32,940

24,914

72,774

49,028

All Other

3,369

5,172

8,354

14,341

Total consolidated revenues

$

319,335

$

234,244

$

915,863

$

684,623

Segment gross profit (loss)⁽¹⁾

Feature Films

$

63,501

$

(152,171)

$

190,517

$

(89,401)

Television Series and Specials

46,611

(2,581)

84,523

6,667

Consumer Products

5,745

6,101

29,863

23,697

New Media

20,637

13,165

41,102

17,905

All Other

2,676

(3,964)

5,947

(4,980)

Total segment gross profit (loss)

$

139,170

$

(139,450)

$

351,952

$

(46,112)

Reconciliation to consolidated income (loss) before income taxes:

Selling and marketing expenses ⁽²⁾

873

4,603

6,015

11,630

General and administrative expenses

89,740

108,620

332,736

262,013

Product development expenses

1,195

3,632

4,655

5,217

Change in fair value of contingent consideration

—

(6,825)

—

(16,500)

Other operating income

(3,037)

(1,767)

(7,893)

(8,429)

Non-operating expenses (income), net

1,909

(231,124)

50,657

(227,634)

Loss from equity method investees

5,868

5,869

15,491

13,808

Total consolidated income (loss) before income taxes

$

42,622

$

(22,458)

$

(49,709)

$

(86,217)

⁽¹⁾

The Company defines segment gross profit as segment revenues less segment costs of revenues (which is comprised of costs of revenues and certain costs classified as a component of "selling and marketing" in its statements of operations).

⁽²⁾  

Represents certain selling and marketing expenses that are not included as a component of segment gross profit due to the general nature of such expenses.