Conagra Brands, Inc. and Subsidiaries Consolidated Statements of Cash Flows (in millions) For the FlscalYears Ended Ma: 20111r 2016 201 5 Cash flows from operating activities: Net income {loss} ............................................................. $ 648.0 5% 1665.9} $ {240.8} Income {loss} from discontinued operations ........................................ 102.11 123.41 162.1 1 Income from continuing operations .............................................. 546.0 128.5 451.3 Adjustments to reconcile income from continuing operations to net cash flows from operating activities: Depreciation and amortization ......................................... 268.0 2T8.5 284.6 Asset impairment charges ............................................. 343 .3 62.6 36.0 Gain on divestitures .................................................. 1' 19?.41 Lease cancellation expense ............................................ 55 .6 Loss on extinguishment of debt ......................................... 93 .3 23 .9 24.6 Earnings of affiliates in excess of distributions ............................. {3.0} {25.71} {0.1} Stock-settled share-based pavments expense .............................. 36.1 41.8 33 .3 Contributions to pension plans ......................................... {163.0} {11.5} {12.7} Pension expense {benefit} ............................................. {21.4} 358.1 {15.1\"} Other items ........................................................ 39.9 53.6 24.? Change in operating assets and liabilities excluding effects ofbusiness acquisitions and dispositions: Receivables .................................................. 104.? (156- 3} 53-3 Inventories ................................................... 123 .3 66.1 {63 .3} Deferred income taxes and income taxes pavable. net ................. 52.3 (264.9} 45.2 Prepaid expenses and other currentassets ........................... 15.0 10.8 {19.0} Accounts pavable ............................................. 711.0 {118.3} {15.5} Accrued pavroll ............................................... 152.41 68.9 60.3 Otheraccmed liabilities ......................................... 1114.91 54.3 IQ}! Net cash flows from operating activities - continuing operations. . ... .... 1.140.8 625.5 839.7 Net cash flows from operating activities - discontinued opelations ....... 34.1 633.1 g 9 Net cash flows from operating activities ............................ 1.1 15.: 1.23.2 1.5m. Cash flows from investing activities: Additions to propertv.plant and equipment .................................... {242.1} {211.5} 236.51 Sale ofproperty. plantand equipment ........................................ 13.2 35.? Proceeds from divestitures ................................................. 489.0 Purchase of business and intangible assets ..................................... 1325.?) {10.41 {20.71 Return of investment in equitv method investee ................................ 391.4 Other items ............................................................. 11.3 111.11 Net cash flows from investing activities - continuing operations . . . . . . . . . (65.6} (251.9} 134.1 Net cash flows from investing activities - discontinued operations ....... 1 123.11 2.3 2.3 11 [5.11 Net cash flows from investing activities ............................ 1182.31 2.121.4 141.61 Cash flows from financing activities: Net short-term borrowi ngs ................................................. 14.3 9.5 113141 Issuance of long-term debt ................................................. 550.0 Repavment of long-term debt ............................................... 11.064.51 {2.52321 1 1.49141 Payment ofintangible asset financing arrangement .............................. (14.9} Repurchase of Conagra Brands. Inc. common shares ............................ {1.000.01 {50.01 Sale ofConagra Brands. Inc.common shares .................................. 8.6 Cash dividends paid ...................................................... {415.01 1432.51 1425.21 Exercise of stock options and issuance of other stock awards ...................... T3 .8 208.4 129.8 Other items ............................................................. 1.1_.21 12.21 Net cash flows from financing activities - continuing operations. . . . . . . . . 12.408.21 {2329.21 {1.426.51 Net cash flows from financing activities - discontinued operations ....... 832.1 14.511 121.11 Net cash flows from financing activities ............................ 11.59.11 12.13.21 11.45421 Effect of exchange rate changes on cash and cash equivalents .......................... {0.2} {2.0} {8.8} Net change in cash and cash equivalents ........................................... {583.1} 651.4 Add: Cash balance included in assets held for sale and discontinued operations at beginning of period ...................................................... 35-4 49-0 90-5 Less: Cash balance included in assets held for sale and discontinued operations at end of period ............................................................... 35-4 49-0 Cash and cash equivalents at beginning of vear ..................................... 128.1 134.1 22.: Cash and cash equivalents at end of vear .......................................... .$_25.L4. JZ'EJ. JL'iJ. The accompanying Notes are an integral part of the consolidated financial statements. 47