Document MGxXam7x7eL3zRNx4xkEEgBra

Company Name - PNEUMO ABEX CORE NEW PNEUMO ABEX CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN MILLIONS) Filing Date: / 2/Sl//996 CASH FLOWS FROM OPERATING ACTIVITIES Net income........................................................................................................................................... Adjustments to reconcile net income to net cash flows provided by operating activities: Extraordinary loss.................................................................................................................... Depreciation and amortization....................................................................................... Income of affiliates {higher) lower than distributions....................... Changes in assets and liabilities net of assets and liabilities from the Merger: Increase in trade accounts receivable........................................................... (Increase) decrease in inventories................................................................... Increase (decrease) in accounts payable...................................................... Increase (decrease) in income taxes payable to parent.................. Other, net................................................................................................................................ Cash from operating activities........................................................................... CASH FLOWS USED IN INVESTING ACTIVITIES Capital expenditures............................................... Proceeds from sale of joint venture.... Cash used in investing activities CASH FLOWS USED IN FINANCING ACTIVITIES Proceeds revolving credit facility........... Foreign borrowings.................................................... Dividends paid.............................................................. Repayment of borrowings....................................... Proceeds from long-term debt.......................... Refinancing costs...................................................... Capital contribution.............................................. Cash used in financing activities INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR.. CASH AND CASH EQUIVALENTS AT END OF YEAR SUPPLEMENTAL DISCLOSURE OF CASH PAID FOR: Interest ..................................................................... Income taxes, net of refunds..................... See Notes to Consolidated Financial Statements F-6 YEAR ENDED DECEMBER 31, 1996 1995 1994 S14.3 $12.1 $ 6.0 0.9 2.9 _ (1.2) 10.4) 0.2 2.9 19.6 2.3 0.7 (1.5) 2.6 (0.4) 0.3 0.5 17.1 4.4 2.3 (0.3) (0.1) 6.5 1 (3.2) 1.3 18.6 (1.9) - (1.9) 12.3) 0.1 (2.2) 11.9) 0.4 (1.5) 7.3 (0.1) (12.5) (33.8) - 17.0 (22.7) (5.0) 8.5 $ 3.5 0.7 (9.0) (5.7) - (14.0) 0.9 7.6 $ 8.5 (57.4) 50.0 (4.0) " (11.4) 5.7 1.9 $ 7.6 $12.5 7.4 $14.2 6.6 $ 14.2 6.3 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (DOLLARS IN MILLIONS) 1. BACKGROUND AND BASIS OF PRESENTATION Mafco Worldwide Corporation ("Mafco Worldwide"), a Delaware corporation, was formed in 1991. Prior to June 15, 1995, Mafco Worldwide was an indirect wholly owned subsidiary of Mafco Holdings Inc. ("Holdings"). On June 15, 1995, Holdings and Mafco Consolidated Group Inc. ("Mafco") formerly known as Abex Inc., consummated an agreement and plan of merger. As a result of the merger, Mafco Worldwide became an indirect wholly owned subsidiary of Mafco. On Disclosure Page 29