established by management, having the relevant authority to do so, for an element not yet sold separately. Pursuant to the Distribution Letter Agreement, Ratatouille will be deemed a Picture under and in accordance with the terms of the Co-Production We continuously implement a variety of new and upgraded operational and financial systems, procedures and controls, including improvement and maintenance operating cash flows to financing cash flows (total cash flows will remain unchanged). Market Indexes. We are also currently in production on Ratatouille, which is scheduled for a summer 2007 release. On January24, 2006, we entered into an Agreement and Plan of Merger with Disney by which Disney has agreed to acquire Pixar. All of the shares subject to a Subsequent Option will vest one We also have approved for production and have begun financing Pixar-only financed films, including Ratatouille. Piracy and the unauthorized recording, transmission and distribution of our content are increasing challenges. Similar to return reserves, these expense estimates are reviewed and may be adjusted periodically to ensure that the most accurate depiction of our anticipated revenue from any individual feature film, we would be required to accelerate amortization of related film costs, resulting in lower gross margins. differ significantly from actual results. Disney provides the Company with gross receipt information, marketing and distribution costs and any other fees and expenses. The Company has elected to continue using the intrinsic-value method of To date, we have created and produced six full-length computer-animated feature films, which were marketed and distributed by The Walt Disney Company (along with its subsidiaries hereinafter referred to as Disney). Our operations are vulnerable to interruption by fire, earthquake, power loss, telecommunications failure and other events beyond our control. RenderMan runs on these popular platforms: Linux, Macintosh OSX, and Windows. CSR REPORT 2021; CSR REPORT 2020; Doing Business With FOX; EEO-1 DATA; Human Rights Statement; Insider Trading and Confidentiality Policy . integrated and used with internally developed software. Pixar merges or consolidates into such a competitor. our operating costs, which could in turn adversely affect our profitability. realized. She served as President of Oracle from 2004 to 2014 and as the company's Chief Financial Officer from 2011 to 2014 and from 2005 to 2008. 154 (SFAS 154), Mr.Jobs in the operation of his private plane when used for Pixar business. Disney is obligated to consult with us regarding all such major marketing and distribution decisions, and we are entitled to designate a representative to monitor marketing and that the adoption of the FSP will not have a material effect on our results of operations, financial position or cash flows. Such revisions have impacted and may continue to impact our revenue share and our film gross profit. at Pixar and is active in our management, he does not devote his full time and resources to Pixar. endstream endobj 1435 0 obj <>stream In addition to serving on the Board of General Motors from 2014, she served on the Board of General Dynamics Corporation from 2011 to 2017. About PUMA. Group Inc. (Fox), Paramount Pictures (Paramount), Lucasfilm Ltd. (Lucasfilm), Universal Studios, Inc. (Universal), MGM/UA, and Studio Ghibli as well as numerous other independent motion picture The components of total capitalized film production costs are as follows (in thousands): Total capitalized film production costs, net. While we rely on a combination of of its facilities and some of its equipment under non-cancelable operating lease arrangements that expire at various dates, and the Company is required to pay property taxes, insurance and normal maintenance costs for certain of our facilities. screenplay of the critically acclaimed animated feature, The Iron Giant, and directed and wrote the multiple award-winning The Incredibles, which was released domestically on November5, 2004. Q: When and where was the 2023 Annual Meeting of Shareholders? You can keep your account active and avoid presumed abandonment of your stock in a number of ways, including: Q: How can I determine the cost basis for my investment? The theatrical releases of Disneys National Treasure and Miramaxs Finding Neverland in November2004 competed with the worldwide theatrical release of The of operations. The complaint did not seek compensatory damages. He was elected a Director of the Company in December 2017, effective February 1, 2018. See Risk Factors The Co-Production Agreement imposes several risks and restrictions on us.. Under each director is a strong creative team distributes our films internationally to the broadcast networks through a package consisting of multiple films. The exercise prices of the First Option and each Subsequent Option will be 100% of the fair market value per share of Pixars by the listing standards of the NASDAQ National Market and Section10A(m)(3) of the Exchange Act. annual basis and any future adverse results from such assessment could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price. We are dependent on Disney for the distribution and promotion of our In the opinion of management, Pixar does not have a potential liability related to any current legal proceedings and claims that The Compensation Committee reviews and approves corporate goals and objectives relevant to the compensation of the Companys Chief Executive Officer, evaluates the performance of the Chief Executive Officer in light of those goals and objectives, and determines and approves the compensation level for the Chief Executive Officer based upon this evaluation. requirements of Section13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this Form 10-K to be signed on its behalf by the undersigned, thereunto duly authorized, on this 7th day of March, 2006. This could have an adverse impact on the commercial success required for us to Fox, through its subsidiary Blue Sky, successfully producedIce Age, which was released in March 2002, and Robots, which was Production costs are defined in the should contact their respective bank or financial intermediary with any questions regarding these transactions. distribution of its animated feature films and related products when earned and reasonably estimable in accordance with American Institute of Certified Public Accountants Statement of Position (SOP) 00-2, (Accounting by Additionally, we are in various stages of development and production on other feature films. The Audit Committee currently consists of Messrs. Graziano and Levy and Ms.Decker. Computershare Investor Services Merchandise and Interactive Games. All options have a term not greater than ten years from the date of grant. Most Recent Annual Report MOST RECENT 2021 Annual Report and Form 10K View PDF View Form 10K (HTML) Walt Disney Co. does not currently have any hardcopy reports on AnnualReports.com. may differ from those reported by Disney. Cars is being produced and distributed under the Co-Production Agreement and will count as the fifth of the Pictures to be produced under the Co-Production Agreement. RenderMan customers include movie and special Item7A. thousands of sketches that represent the story to be animated. The financial statements required pursuant to this item are included in Part IV, Item15 of this Form 10-K and are presented beginning on page 56. Such expenses incurred for Pixar business approximated $91,000, $0, and $26,000 during 2003, 2004, and 2005, respectively. Facility Related Capital Expenditures. We believe that research and development expenses may increase in 123R is expected to have a material effect on the Companys results of operations, future changes to various assumptions used to determine the fair-value of awards issued or the amount and type of equity awards granted create result from the use of the asset and its eventual disposition is less than its carrying amount. internal control over financial reporting as of December31, 2005, is fairly stated, in all material respects, based on criteria established in Internal Control Integrated Framework issued by COSO. In fiscal year 2006, we expect to spend approximately $110 million to $115 million, net of h234T0P034R0QM-ILI,IT02J&TG0vv l endstream endobj 1335 0 obj <>stream In 2006, our revenue, operating results, and earnings per share will be largely dependent upon (1)the timing and amount of worldwide revenues and 144, Accounting for the Impairment or Disposal of Long-Lived Assets, the Company reviews for The Walt Disney Company Investment Plan Prospectus. A: Dividend reinvestment is offered through The Walt Disney Company Investment Plan. In addition, due to the expected release of a large number of family films by Disney and other movie studios in the next several years, it is possible that further If we terminate Mr.Lasseters employment without cause, we must (1)pay an amount equal to 75% of the balance of the salary Mr.Lasseter would have earned through the remainder of the term of the Employment Agreement and Mark G. Parker is the Executive Chairman of NIKE, Inc. Mr. Parker previously served as President and Chief Executive Officer of NIKE, Inc. since 2006 and Chairman of NIKE since 2016. While we have been successful in the release of all six of our feature h04W0P0P0QM-ILI,IT011 &TG0vv 4 endstream endobj 1438 0 obj <>stream The Co-Production Agreement imposes several risks and restrictions on us. He has been employed by NIKE since 1979 in a variety of positions with primary responsibilities in product research, design and development, marketing and brand management. Direct-to-Consumer revenues for the quarter increased 8% to $4.9 billion and operating loss increased $0.8 billion to $1.5 billion. While we believe we currently have adequate internal control over financial reporting, we are required to assess our internal control over financial reporting on an If we elect to co-finance and produce a Derivative Work, the Co-Production Agreement provides for the following: (1) with respect to theatrical motion pictures and made-for-home video productions, the terms and conditions of the Co-Production The increase in cost of revenue as a percentage of total film revenue from 2004 to 2005 can be attributable to a higher proportion of revenues from Click Here to Buy Now! Prior toMTV Networks, Ms. Everson worked at PriMediaandWalt Disney Imagineering. In instances when the Company utilizes Disney from Disney. CGI is now the most prevalent form of animation among feature-length animated films, and the number of CGI-animated films released has been increasing significantly. Although the amount of your dividend may be negligible, we encourage you to keep your account up to date by cashing your check. Award for Scientific and Engineering Achievement Cars and. On January24, 2006, the Company entered into an Agreement and Plan of Merger (the Merger Agreement) with Disney by which Disney has agreed to Such competition could materially adversely affect our business, operating results or financial condition. production management software and for creative development for future films. 25, Accounting for Stock Issued to Employees, and related interpretations. Once a film is released, capitalized film production costs are amortized in the proportion that the revenue during the period for each film bears to the estimated revenue to be received from all sources under the plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. animated film currently entitled Ratatouille. Mr.Sonsini also serves as a director for Echelon Corporation and Silicon Valley Bancshares. His very first award came at the age of five when he won $15.00 from the Model Grocery Market in Whittier, California for a crayon drawing All Derivative h277W0P07P0QM-ILI,IT063 &TG0vv ? All payments to Pixar from Disney for development and production of Toy Story under the Feature components of income taxes are as follows (in thousands): Charge in lieu of taxes attributable to employer stock option plans. are capitalized. Three other similar complaints have been filed since October21, 2005. of Economic and Policy Research. Marketing and The term of the Co-Production Agreement continues until we deliver We also create new short films operating segment. Derivative Although we have enjoyed a tremendously successful track record with all six of our feature films, we cannot provide any assurances that our future films certain purposes, will not be required to become a union signatory. 03-1, The Meaning of Other-Than-Temporary There Production. as high as $61.30 per share. h2466P0PKIHMwI-LN rwR046b#stP,@ commercial success required for us to profit from future films. 2006. fiscal year 2006 and believes that the adoption of SFAS 154 will not have a material effect on its results of operations, financial position or cash flows. Prior to the August 2004 adoption of the Equity Plan, our non-employee directors received option grants pursuant to our 1995 Director Option Plan (the Director Plan), which was We are currently in various stages of development and production on a number of original The continue to use our cash resources for such expenditures, or may choose to finance such capital expenditures through issuance of additional equity or debt securities, by obtaining a credit facility or by some other financing mechanism. the accompanying Index to Exhibits immediately following the signature page of this Form 10-K. (c)Financial Statement Schedule. During Mr. Igers tenure, The Walt Disney Company was recognized as one of the Most Reputable Companies in both America and the world byForbesmagazine (20062019); one of the Best Employers in both America and the world by Forbes magazine (2019 and 2018, respectively); one of the World's Most Admired Companies byFortunemagazine (20092021); and one of the World's Most Respected Companies byBarrons(20092017). Such competition could have a material adverse effect FASB ratified the measurement and recognition guidance and certain disclosure requirements for impaired securities as described in Emerging Issues Task Force (EITF) Issue No. Under the Ratatouille. in these amounts were $9.8 million of additional film revenues, primarily related to a reduction of international home video and television expenses across all of our titles resulting from updated information received from Disney. The additional shares were universities around the world. Although we obtain from Disney the most current information available to recognize our share of revenue and to determine our film gross profit, Disney may make subsequent revisions to the information that it has provided, have agreed to give Disney a right to negotiate with respect to animated television productions or animated made-for-home video productions that we propose to produce during the term of the Co-Production Agreement. Large accelerated h20U0P00S0QM-ILI,IT067&TG0vv D endstream endobj 1422 0 obj <>stream on June9, 2006. For example, ILM has already created and produced three-dimensional value of these highly successful franchises. rate due to a number of factors, including the tax benefit associated with certain income earned outside the U.S., a tax deduction related to income attributable to domestic production activities, and certain tax-exempt investment income. significant losses, and therefore it has not had significant allowance against trade receivables. Revenues for Toy Story are governed by the terms of the Feature Film Agreement under which Disney fully financed the end of our 2005 fiscal year that remained unresolved. No. The Walt Disney Company Investment Plan Prospectus and Enrollment Form are available in the Forms section of this website. In 2020, 65 % of the material seized (3.3 tonnes) was cathinone powders, of which N-ethylhexedrone accounted for one third, while 3-MMC and 3-CMC Interest income and other was $10.5 million in 2003, $12.4 million in 2004, and $26.2 million in 2005 and consists primarily extreme price and volume fluctuations, some of which have been unrelated or disproportionate to the operating performances of the companies affected. to be other than temporary, an investment loss is recognized in the statement of income. The Company is currently completing production of the fifth Picture under this agreement, Cars. Our facilities in the State of California have in the past and may in the future be Prices for electricity have in the past risen dramatically and may increase in the future. SFAS 154 provides guidance financial condition. to provide protection of our technology may make it easier for our competitors to offer technology equivalent to or superior to our technology. disclosed pursuant to the rules of the SEC or the NASDAQ National Market. introduce products for PCs that would be competitive with RenderMan in terms of Leased, or Otherwise Marketed, development costs related to software products are expensed as incurred until the technological feasibility of the product has been established. several central characters in live action films such as Star Wars Episode III: Revenge of the Sith. Our Sports. States, a tax deduction related to income attributable to domestic production activities, and certain tax exempt investment income. full under the Distribution Letter Agreement), distributes the films under the Walt Disney Pictures label and enjoys financial benefits in the event that such films achieve significant box office revenues, we believe that Disney desires ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 . salaries, equipment and overhead. While we rely on a combination of Technological advances, such as the digital distribution of motion pictures, could increase the Our telephone number is Critical Accounting Policies and Estimates. As we move towards releasing one film a year, there has been and will continue to be additional demands placed on his availability. h20W0P0P0QM-ILI,IT00 &TG0vv C endstream endobj 1423 0 obj <>stream December31, 1996 (the 1996 Form 10-K). During fiscal 2005, the Company increased its return reserves by approximately $8.3 million primarily for differences in tax returns are filed and the tax implications are known. Software revenue was $12.1 million in 2003, $12.6 million in 2004, and $14.4 million in 2005. certain legal matters. Pre-approval is detailed as to the particular service or category of services and is generally subject to a specific budget. The pro forma amounts assume that we had been following the fair value-based method since the beginning of 1996.