balances earning interest at higher average rates. In the event a film is not set for production within three years from the time of the first capitalized transaction, all such costs will be expensed. h2466P0PKIHMwI-LN rwR046b#stP,@ Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. The Audit Committee currently consists of Messrs. Graziano and Levy and Ms.Decker. At December31, 2005, we had contractual commitments to make payments under operating leases. cost of revenues and operating expenses, and the adoption of SFAS 123R could make our net income less predictable in any given reporting period, could change the way we compensate our employees, or may cause other changes in the way we conduct our He currently serves on the boards of the 9/11 Memorial & Museum, Bloomberg Philanthropies, Perfect Day and Genies; and served as chairman of the capital campaign for the new Academy Museum of Motion Pictures in Los Angeles. Merger Related Litigation. In addition, effective copyright, patent and trade secret Disney first Film Agreement, and A Bugs Life, Toy Story 2, Monsters, Inc., Finding Nemo, The Incredibles and Cars under the Co-Production Agreement have been recorded as cost reimbursements. Shareholders of record at the close of trading on April4, 2005 were entitled to receive one additional share of Pixar Common Stock for every outstanding share held on such date. These decreases were partially offset by a larger share of operating expenses previously borne by Disney. These pro forma amounts may not be representative of future disclosures since the estimated fair The Company makes certain estimates and From June 2003 to present, Mr.Bax has served as chairman at SmartJog S.A., a company We have utilized margin normalization, such as with merchandise or home video expenses, in accordance with the provisions of accountant. A summary of activity under the option plans during fiscal years 2003, 2004 and 2005 are as follows: For various price ranges, weighted-average characteristics of outstanding stock options at 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? Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under generally accepted accounting principles are recorded as an element of shareholders equity but are excluded from net The Company entered into a Distribution Letter Agreement (the Distribution Letter Zoom, How to Eat Fried Worms, Santa Clause 3, Eragon, and Charlotte's Web, among others. We are also in production on Ratatouille, which will be fully three-dimensional CGI-animated films. impairment of long-lived assets whenever events or changes in circumstances indicate that. a significant extent on the performance of a number of senior management personnel and other key employees, especially our film directors, producers, animators, creative personnel and technical directors. In addition, we expect our spending levels may increase significantly due to the following: A portion of our operating expenses that are allocable to film productions is either capitalized by us or reimbursed by Q: Who should I contact regarding replacement checks? would have a material adverse effect on its financial condition, liquidity or results of operations. use our proprietary information, products or technology without authorization, or to develop similar or superior technology independently. company, nor has any such interlocking relationship existed in the past. h237U0P037S0QM-ILI,IT045&TG0vv < endstream endobj 1367 0 obj <>stream Under the terms of the Co-Production Agreement, Disney may terminate the In addition, Mr.Roth ran Caravan Pictures from 1992 to 1994. market and sales performance are substantially different for a particular title, the Company has and may continue to record reserves more consistent with its historical experience. As our films are produced digitally, they are uniquely suited to this method of exhibition. Distribution Letter Agreement, Pixar shall have sole ownership of copyrights, trademarks and other intellectual property rights in and to Ratatouille. He is a graduate of Ithaca College. From June 2000 to December 2000, Mr.Levy was President and Chief Award, which is the highest achievement in the computer graphics field, for his lifetime contributions and was awarded the animation industrys Ub Iwerks Award. For example, ILM has already created and produced three-dimensional character animation which was used for A: It is recommended that you periodically make contact with Computershare to keep your account status current. Pursuant to Section404 of the Sarbanes-Oxley Act of 2002, (Section 404) and the rules and regulations as Pictures. Ringmaster. She is a director of the Americas Society and served as a Trustee of the National Geographic Society from 2007 to 2015. technical and managerial personnel. A: Disney common stock is traded on the New York Stock Exchange. be the Companys Chief Executive Officer (CEO). In addition, the amount of revenue recognized in any given quarter or quarters from all of our films depends on the timing, accuracy, and amount of information we receive from Disney to determine revenues and Software maintenance contracts are recorded as unearned revenue and recognized ratably over the life of the maintenance agreement, which ranges from 6 to 24 months in each element in multi-element arrangements is based on vendor-specific objective evidence (VSOE). Report of Organizational Actions Affecting Basis of Securities: shared voting power or investment power and also any shares that the individual has the right to acquire within sixty days of February15, 2006 through the exercise of any stock option or other right. Such disruption in the future could have a material adverse effect on our business and results of Pursuant to the Distribution Letter Agreement, Ratatouille will be deemed a Picture Under the Co-Production Agreement, Disney is required to distribute the Pictures in a manner consistent with that of Disneys premiere animated on a review of the industry, discussions with Disney, and our historical experience. The Walt Disney Company board of directors is a strong, balanced blend of global industry leaders whose exceptional knowledge and considerable experience strategically guide and support the delivery of long-term value to the Company. The Walt Disney Company: global revenue 2006-2022 | Statista Moreover, although it is standard in the motion picture industry to rely on employment agreements as a method of retaining the Accordingly, no revenue has been recognized Our fiscal year 2006 earnings are expected to include See In the event a film is not set for production within three years from the time of the first Computershares contact information is located in the Transfer Agent section of this FAQ. Employment Agreement, Mr.Lasseter will direct three Feature Films (a Feature Film is defined as a feature-length animated motion picture) and he has the option to direct certain sequels to Feature Films he has directed if we elect to produce 109, the effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment Postal Service. h270T0P070R0QM-ILI,IT02 &TG0vv C& endstream endobj 1380 0 obj <>stream (4)Feature Film and Co-Production Agreements. need to make estimates about the effect of matters that are inherently uncertain. 115, Accounting for Certain measurement of all employee share-based payments to employees, including grants of employee stock options, using a fair-value-based method and the recording of such expense in our statements of income. This agreement generally provides that we will be responsible for the development, pre-production 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. earnings per share are computed independently for each of the quarters presented. share-based payment arrangements including stock options and employee stock purchase plans. In 1991, we entered into a feature film agreement (the Feature Film Agreement) with Walt Disney Pictures, a wholly owned subsidiary of the Walt Disney Company (together with its Disneys exceptional entertainment experiences, widely diverse content, and unique skill in managing businesses in an integrated manner led to strong results.