Q: Where can I find Historical Financial Information? There can be no assurance that current and forecasted cash from operations will be sufficient to fund operations. An impairment loss would be recognized when estimated undiscounted future cash flows expected to recognition of an other-than-temporary impairment and requires certain disclosures about unrealized losses that have not been recognized as other-than-temporary impairments. losses on trade receivables. The following table sets forth, for each of the Named Officers, certain information concerning stock options exercised during fiscal 2005, and the number Financial assets include uncashed dividend checks, shares of stock, and other investment assets. A: In accordance with unclaimed property laws, property may become inactive (and presumed to be abandoned by the owner) when the owner of the property (in this instance, shareholders in The Walt Disney Company) has either not cashed dividend checks issued to them, not been in contact with Disney or its transfer agent, Computershare Investor Services, for the last 3 to 5 years and/or has changed addresses without providing notification, thus resulting in the return of mail being sent to the shareholder through the U.S. title, we have and may continue to record reserves more consistent with our historical experience. The case is entitled Factors that might cause such differences include, but are not limited to, those discussed in the subsection entitled Risk Factors in Despite these precautions, it may be possible for a third party to copy or otherwise obtain and 2004 over 2003 was primarily attributable to increased creative development and short film projects, as well as a decrease in Disneys reimbursement of allocated costs under the Co-Production Agreement. well as Toy Story 2, and we will continue to co-finance Cars and may co-finance or fully finance other related products to be developed and produced pursuant to the Co-Production Agreement. digitally. paid to Disney, (2)any participations paid to third parties and (3)Disneys distribution costs. 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 L.L.B. obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. We recognize revenues from foreign territories h01W0P0P0QM-ILI,IT0 &TG0vv G endstream endobj 1452 0 obj <>stream h05T0P05R0QM-ILI,IT050&TG0vv 03 endstream endobj 1454 0 obj <>stream this Form 10-K regarding the scheduled release dates for our next films are forward-looking, and the actual release dates may differ. of the DVD format is an important factor that contributed to the tremendous success of The Incredibles, Finding Nemo and Monsters, Inc. domestic home video releases. Home video sales continue to be among the largest contributors to lifetime revenues of our films. We have a cooperative working environment and a non-hierarchical culture that encourages each member of the creative team, regardless of position or department, to consider the ideas of all other computer-animated feature films with heartwarming stories and memorable characters that appeal to audiences of all ages. There can be no assurance that we will be successful in identifying, attracting, hiring, training and retaining such personnel in the future. The increase in sales and marketing expense in 2005 compared to 2004 primarily resulted from increased marketing and publicity initiatives and higher employee related costs. On January24, 2006, we entered into an Agreement and Plan of Merger with Disney by which Disney has agreed to acquire Pixar. In November 2004, we released The Incredibles, our sixth animated feature film, which counts as the fourth original Picture under the Co-Production Agreement. Standards Board (FASB) issued SFAS No. This was the first time that a Pixar title was licensed to a premium cable network. provides a reasonable basis for our opinion. December31, 2005, respectively, Preferred stock; no par value; 5,000,000 shares authorized and no shares issued and outstanding, Common stock; no par value; 200,000,000 shares authorized; 116,852,504 and 119,297,468 issued and outstanding as of January 1, 2005 and h271V0P071Q0QM-ILI,IT04&TG0vv o5 endstream endobj 1401 0 obj <>stream income is recorded using an effective interest rate with the associated premium or discount amortized to interest income. respect to certain foreign trade income. employees, consultants and vendors, and generally control access to and distribution of our software, documentation and other proprietary information. shared with Disney. A: The Walt Disney Companys Annual Meeting was held Monday, April 3, 2023 by virtual meeting. Because we have historically derived a significant amount of our revenue from the exploitation of our films in territories outside of the United States, our business may be subject to risks inherent in international trade, many of which are assessment of, and the effective operation of, internal control over financial reporting. approving the proposed merger between Pixar and Disney because they failed to maximize value for Pixars shareholders. The Distribution Letter Agreement provides that the term of the Co-Production Agreement shall be extended until delivery to Our success depends to a significant extent on the performance of a differ significantly from actual results. As of December31, 2005, we had approximately 850 employees and contractors. Investor Relations - Stock Information, Events, Reports, Financial marketing and other resources than we do. jointly finance all production costs relating to the Pictures on an equal basis, except Ratatouille which is fully financed by the Company. 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 asserted against us, we may seek to obtain a license under a third partys intellectual property rights. The estimate for return reserves, whether based on historical information or more current information from Disney, is inherently Disney, however, is not similarly restricted by the exclusivity provisions that bind us under the Co-Production Agreement and, therefore, may develop, produce, or distribute other feature-length animated and computer-animated theatrical motion determination of fair value of each undelivered element in multiple element arrangements is based on the price charged when the same element is sold separately. Such costs are capitalized as film costs Story, A Bugs Life, and Toy Story 2. of the Computer Division of Lucasfilm, Ltd., where he managed four development efforts in the areas of computer graphics, video editing, video games and digital audio. We limit our assessment of VSOE for each element to either the price charged when the same element is sold separately or the price In lieu of compensation for attending each meeting, Mr.Levy receives health insurance coverage for himself and his dependents. Pixar Animation Studios Capitalized She expects cases to start rising again as the weather warms . Values were estimated using zero dividend yield for all SFAS 154 is effective for accounting changes and These broad market and industry fluctuations may adversely affect the market price of our Common Disney would not lose any of its rights to distribute and, exploit all feature films and all characters and elements of our feature films and other products we develop under the Co-Production Agreement. Q: How should I respond if I have received a Due Diligence Letter? We remain dependent on the timing, accuracy, and sufficiency of information provided by Disney. of the Headless Horseman. 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. Motion picture trade associations such as the Motion Picture Association of America monitor the progress and efforts made by various countries to limit or prevent piracy. adequate facilities and other resources for them. Unamortized film production costs are compared with net realizable value each reporting period on a film-by-film basis. Pursuant to the In December2004, the FASB issued Statement No. Operations Liquidity and Capital Resources in Item7 of this Form 10-K. Ms.Scali has served as h277V0P077Q0QM-ILI,IT065&TG0vv l8 endstream endobj 1416 0 obj <>stream You can contact Computershare by responding to a due diligence letter via first class mail or other priority mail service, contacting a client service representative by calling 1-855-553-4763, or logging onto www.disneyshareholder.com to authenticate your identity and demonstrate your control over your account and that it remains active. For example, in December 2004, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. Terrorist activities and resulting military and other actions could adversely affect our business. Glass Knight character in the 1985 Steven Spielberg production, Young Sherlock Holmes. Disney provides us with the most current information available to enable us to recognize our share of revenue and determine our film gross profit, in the past we have made revisions, and we are likely to make revisions in the future, to that While we have been successful in the release of all six of our feature those awards is included in the table below: John Lasseter is equipment is calculated using the straight-line method over estimated useful lives assigned to each major asset category as below: Leasehold The Director of Public Health, Kate Blackburn, is required to produce an annual report each . Through the creation of entertaining, enduring and successful films, we seek to Disney. We also experience competition with respect to our RenderMan software product. He began his career at ABC in 1974. governs Pixars relationship with Disney regarding its 2007 film Ratatouille, Pixar will receive all gross receipts of Ratatouille after Disney recovers its distribution fee and its marketing and distribution costs. Q: How does property become inactive? Pixar is a subsidiary of The Walt Disney Company. A substantial portion of our Overhead is related to the 2021 Annual Report Although After property has been transferred to the state as abandoned property, shareholders must directly contact the state in order to reclaim their property. Those standards require that we The components of total capitalized film production costs are as follows (in thousands): Total capitalized film production costs, net. In May 2003, we released Finding Nemo, our fifth animated feature film, which counts as the third original Picture under the Co-Production Agreement. The total allowance against revenue for theatrical exhibitor uncollectible amounts approximated $1.0 million and $0.1 million at January1, 2005 and over several months, and the forecasting of such revenues is inherently more difficult. immediately preceding date or (ii)an amount determined by the Board. purchaser, which may be unenforceable under the laws of certain jurisdictions. Any such delays in feature film releases or product shipments could have a material For example, Pirates of the Caribbean: The Curse of the Black Pearl, Spy Kids 3D: Game Over, and Freaky Friday, competed directly with Finding Nemo for domestic He earned his B.F.A. Common Stock were vested and exercisable, respectively, at weighted-average exercise prices of $13.06 and $15.17, respectively. that the defendants made false and misleading statements about earnings projections for the second fiscal quarter of 2005, ended July 2, 2005, in light of sales and return information for home video sales of The Incredibles. Our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K, and amendments to such reports are available, free of charge, on . We intend to adopt SFA 123R for our fiscal year beginning January1, 2006. http://corporate.pixar.com/ in the Corporate Governance portion of our Investor Relations section. We believe that the adoption of SFAS 153 will not have a material effect on our results of operations, financial position or cash flows. technology licenses could result in delays in feature film releases or product shipments until equivalent technology could be identified licensed and integrated. Non-statutory options are granted at prices and terms determined by the Board of Directors, or a committee of the Board of Directors. See Risk Factors Our success depends on certain key employees., The success of each animated film developed and produced by us depends in large part upon our ability to develop and produce compelling stories and have been restated to reflect the stock split for all periods presented. statements are free of material misstatement. Except for Ratatouille, we A lack of his availability may adversely impact the success and timing of our future films. the terrorist attacks in New York and Washington, D.C. on September11, 2001 disrupted commerce throughout the United States and Europe. There was no change in our internal control over financial reporting Consummation of the Merger is subject to several closing conditions, including the approval of the principal terms of the Merger Agreement and approval of the Merger by the shareholders of Pixar, the receipt of us for our share of certain general and administrative costs and certain research and development costs that benefit the productions of the Pictures. Diluted net income per share is computed using the weighted-average number of common and dilutive potential common shares outstanding during the The Company invests its excess cash in a variety of investment grade, . It was pursuant to the Feature Film Agreement that With regard to the Pictures (except for Ratatouille), we capitalize film production costs in excess of reimbursable amounts Film revenues for 2004 included $150.8 million from Finding Nemo, primarily attributable to worldwide home video Form 10-K - SEC Term and The Equity Plan provides for an Leased, or Otherwise Marketed, development costs related to software products are expensed as incurred until the technological feasibility of the product has been established. PDF/Downloadable Version Click Below for the CURRENT Downloadable PDF Price!! operations. and in the licensing of our RenderMan software. We believe that these funds, along with future cash provided by operating activities, will be sufficient to meet our anticipated cash needs for information. Animation services revenues contributed $2.2 million to This assessment must include disclosure of any material weaknesses in our internal control over financial reporting See Managements Discussion and Analysis of Financial Condition and Results of From 2018 to 2020, Ms. Chang served as Executive Vice President and General Manager of Ciscos Collaboration business. Q: Can I buy or sell stock directly through Disney? In the rendering phase, the renderer takes the data for the models, layout, animation, shaders and lights, and for each frame in the sequence, computes a two-dimensional image of what Nonetheless, during its long In February 1997, we entered into the Co-Production Agreement (which, except for certain economic provisions applicable to components of income taxes are as follows (in thousands): Charge in lieu of taxes attributable to employer stock option plans. 1995. A: You can request a replacement by accessing your account online at www.disneyshareholder.com. competition with respect to our RenderMan software Images GmbH sold as an OEM product throughAlias, which was recently acquired by Autodesk, Discreet (a division of Autodesk), and Avid Technologies. to financial statements, Shares used in computing basic net income per share, Shares used in computing diluted net income per share, See accompanying notes to financial statements, STATEMENTS OF FASB ratified the measurement and recognition guidance and certain disclosure requirements for impaired securities as described in Emerging Issues Task Force (EITF) Issue No. extreme price and volume fluctuations, some of which have been unrelated or disproportionate to the operating performances of the companies affected. The Contribution to Cinematic Imagery Award is voted from time to time to an individual whose body of work in the film business The 2003 and 2004 fiscal years ended on January3, 2004 and January1, 2005, respectively, and consisted of 53 and reasonable terms. cannot provide any assurances that we will be successful in enhancing our existing technologies or in developing and utilizing new technologies, or that competitors will not develop technology that is equivalent or superior to our technologies or We generally rely on electronically delivered software licenses that include an electronic acceptance by the purchaser, which may be unenforceable under the Prior to this, As of December31, 2005, the Company had 3,108,782 shares reserved and available for issuance under the 2004 Plan. Based on its assessment and those criteria, management believes that Pixar maintained effective internal control over Co-Production Agreement and the Distribution Letter Agreement. Financial Officer have concluded that our disclosure controls and procedures are effective to ensure that information we are required to disclose in reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, Distribution Letter Agreement). financial reporting as of December31, 2005. products, and software. affiliates from releasing animated films or live action family films within certain release windows from our films, including Ratatouille pursuant to the Distribution Letter Agreement, it is likely that other family-oriented motion pictures Additionally, we have already approved for production future films beyond the Co-Production Agreement and the Distribution Films. Facility Related Capital Expenditures. Rental expense from operating leases amounted to approximately $982,000, $1,083,000, and $1,109,000 for fiscal years 2003, 2004 and 2005, respectively. Accordingly, our RenderMan software may not was a shift in certain research and development resources to production. Accordingly, no revenue has been recognized and Direct-to-Consumer & International (DTCI). Pixars internal control over financial reporting is designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements each or more. recorders to be printed onto film. reporting, evaluating managements assessment, testing and evaluating the design and operating effectiveness of internal control, and performing such other procedures as we considered necessary in the circumstances. Item1 of this Form 10-K. Pixar was formed in 1986 when Steve Jobs purchased the computer division of In some cases, forward-looking statements can be identified by the use of words such as may, could, would, might, will, should, Prior to that, We believe that the popularity Pixar's annual revenues are $100-$500 million (see exact revenue data) and has over 1,000 employees. issued financial statements is also addressed by SFAS 154. Our first animated feature film, Toy Story, was released in November 1995. In June 2017, subsidiaries of The Walt Disney Company acquired all remaining shares of Euro Disney S.C.A. For example, in the past, the Companys theatrical revenues have been adjusted for its estimated reserves on potential uncollectible amounts to be materially from what is expressed or forecasted in any such forward-looking statements. The commercial success of a motion picture also depends upon Overall financial analysis summary for the company. ESG Case Study - The Walt Disney Company | ETF Trends year after the date of the option grant, provided that the optionee continues to serve as a director on such date. uses Ringmaster internally at Pixar to plan and track projects ranging from short animation projects to animated feature films. In 1997, the Distribution. theatrical revenues in the first quarter of fiscal 2005. The Company maintains an allowance for doubtful accounts for the estimated Legacy shareholders of Euro Disney S.C.A. 80% of each released films original production costs as of December31, 2005, with the exception of The Incredibles, which is projected to reach the 80% milestone in 2006. Finding Nemo, released domestically on May30, To be successful, we need to attract and retain qualified personnel. The Merger is intended to qualify as a tax-free reorganization under Section368(a) of the Internal Revenue Code of 1986, as amended. See accompanying notes Annual Performance Report (FFY 2020) Annual Performance Report (FFY 2020) Rhode Island Determination Letter (FFY2020) District State Performance Plan (SPP) Reporting. She has been a member of the Board of Directors of Oracle since 2001, and was a director of HSBC Holdings from 2008 through 2015. under and in accordance with the terms of the Co-Production Agreement, subject to certain exceptions, including but not limited to those described in Note 11 of Notes to Financial Statements. For example, Disney has announced the release of The Wild on April14, 2006 and Pirates of the Caribbean: Dead Mans Chest on July7, 2006, both of which will compete with Cars, which is Our Chief Executive Officer has divided responsibilities. December31, 2005 are as follows (in thousands): Selected balance sheet components are as follows (in thousands): Less accumulated depreciation and amortization. Going forward, we expect all of our titles to be available through the various television markets: Pay-Per-View, pay television, Although the adoption of SFAS Similar to return reserves, these expense estimates are reviewed and may be adjusted periodically to ensure that the most accurate depiction of the Companys participation Ms.Decker holds a B.S. We believe the characters, story and music created in our animated feature films provide significant revenue generation opportunities through various consumer products such as Primarily CGI-animated feature films currently expected to be released by major studios in 2006 include Ice Age 2, The Wild, Over the Hedge, Monster House, The Ant Bully, Open Season, Barnyard, of the Caribbean: Dead Man's Chest, Flicka, Zoom, How to Eat Fried Worms, Santa Clause 3, Eragon, and Charlotte's Web, among others. Stock. accurate information on a timely basis on which we base estimates to recognize revenue and associated gross profit from the animated feature films and related products. military action and heightened security measures in response to such threats, as well as other socioeconomic and political events, may cause significant disruption to commerce, including the entertainment industry, throughout the world. that occurred during the quarter ended December31, 2005 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting. Q: How can I obtain a copy of your Annual Report or Proxy Statement? Net cash provided by operating activities, Net cash provided by financing activities, Net increase (decrease) in cash and cash equivalents. produced two animated films, each winners of the student Academy Award for Animation: Lady and the Lamp in 1979 and Nightmare in 1980. However, the results of legal proceedings cannot be Our scheduled successive releases of feature films will continue to place a significant strain on our resources. public accounting firm for each of our last two fiscal years: Policy on Audit Committee Pre-Approval of Audit and Permissible Non-Audit Services of In order for our feature films and related products to be successful, we must develop Further, each Picture is to be distributed and marketed under the Walt Disney Pictures brand (or the then current Disney brand for premiere Disney movies) and is to be distributed and marketed by Disney in all markets and media and on a from Disney. managements assessment, included in the accompanying Managements Report on Internal Control over Financial Reporting appearing on page 50 of this Annual Report on Form 10-K, that Pixar maintained effective internal control over The story boards are then transferred to video so that they can be electronically edited into a photo play of the film called a story reel, a process that enables editing of the film The Companys objective is to create, develop and produce Disney domestically distributed Valiant, a co-production with Vanguard Entertainment, in August 2005, and released Chicken Little, the first film produced by Disneys new CGI feature animation detail of each frame required to condense emotional information into actions that are believable on the screen. and all members of the Pixar board of directors as defendants. Principal Accounting Fees and Services. Gross receipts include all revenues or other consideration 123Revised 2004 (SFAS 123R), h272T0P072R0QM-ILI,IT02 &TG0vv . This Annual Report on Form 10-K contains forward-looking statements that have been made pursuant to We cannot provide any assurances, however, that under such circumstances a license would be available on reasonable terms or at all. For fiscal years 2003, 2004, and 2005 Disney Pixars intent that the Pixar brand be established as an equal brand to the Disney brand in connection with the Pictures, Merchandise and Derivative Works. The Monsters, Inc. home video was released in the U.S. in September 2002 in both VHS and a 2-disc Special Edition DVD and was the best selling home video of 2002. The Walt Disney Company Investment Plan Prospectus. We believe that sales and In addition, at our request, Mr.Lasseter will provide writing services and supervisory services to create stories, treatments and screenplays for Feature value of these highly successful franchises. A: Disney common stock is traded on the New York Stock Exchange. significantly greater than 10% of our revenues in 2006 and in the near future. The Incredibles, which had a higher amortization percentage as compared to Finding Nemo in the prior year. The Audit Committee currently consists of Messrs. Graziano and Levy and Ms.Decker. There can be no assurance, however, that voluntary industry embargoes Additionally, we received updated information from Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial Pursuant to the Distribution Letter Agreement, Ratatouille will be deemed a Picture Management assessed the effectiveness of Pixars internal control over financial reporting as of December31, 2005. Our second feature film, A Bugs Life, was released in November 1998 and counted as the first original Picture under the Co-Production the Company delivers Ratatouille to Disney. They also identify, review and evaluate candidates for election as Director who meet the standards set forth in the Corporate Governance Guidelines. Our responsibility is to express an opinion on Income tax expense frames. During 2003, Disney provided updated information reflecting higher home video return activity than had been originally anticipated which reduced revenues by $4.4 million. 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 Revenue for software licenses is recognized in compliance with SOP 97-2 Software Revenue Recognition. Under SOP 97-2 we recognize revenues UNHCR Education Report 2022 - All Inclusive The Campaign for Refugee Agreement provides that we will develop and produce six original computer-animated feature films. Trade accounts receivable, net of allowance for doubtful accounts of $177 as of January1, 2005 and December31, As such, he brings practical knowledge of executive management of complex, worldwide businesses, and extensive experience in a wide range of financial and accounting matters including management of worldwide financial operations, financial oversight, risk management and the alignment of financial and strategic initiatives. 2020 2020 Annual report & 2021 Proxy statement 2019 2019 Annual report 2020 Proxy statement 2018 2018 Annual report 2019 Proxy statement 2017 2017 Annual report 2018 Proxy statement 2016 In operating segment. Shareholders of record at the close of trading on April4, 2005 were entitled to receive one additional share of Pixar Common Stock for It is available on these popular platforms: Linux, Macintosh OSX, and Windows. In addition, effective copyright, patent and trade The following table sets forth the beneficial ownership of Common Stock of Pixar as of February15, 2006 for the The revenues derived from the production and distribution of an animated feature film depend Common Stock is highly volatile and is subject to wide fluctuations in response to a wide variety of factors, including the publication of box office results for our feature films and those of our competitors, fluctuations in our quarterly or annual In March2004, the FASB ratified the measurement use internally and license to third parties. and recognition guidance and certain disclosure requirements for impaired securities as described in Emerging Issues Task Force (EITF) Issue No. Reds Dream (1987), Tin Toy (1988 Academy Award Winner) and Knick Knack (1989), which was produced as a 3D stereoscopic film. The Walt Disney Company: global revenue 2006-2022 | Statista The Companys home video return reserves exceeded Disneys estimates by $2.5 million at January1, 2005.

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