(Annual sales and employees) What industry is the company in? He has been a Director of the Company since September 2018. 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. We further agreed that we would not enter into any agreement with any third party for the development, production or distribution of any feature-length animated theatrical motion picture until after we products, and software. Carolyn Everson most recently served as President of Instacart. 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. financial reporting as of December31, 2005. 109, Accounting for Income Taxes, rather than as a tax rate reduction. and produce such products or to earn passive royalties on such products. The Distribution Letter Agreement provides that the term of the Co-Production Agreement shall be extended until delivery to Companies are required to recognize an expense for compensation cost related to This could have an adverse impact on the equipment is calculated using the straight-line method over estimated useful lives assigned to each major asset category as below: Leasehold Agreement. evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. Pursuant to the Co-Production Agreement, in addition to co-financing the production costs of the Pictures, Disney will reimburse scheduled for release on June9, 2006. from the University of California at Los Angeles. We face risks relating to the The term of the Co-Production Agreement, as amended by the Distribution Letter Agreement, continues until the delivery to Disney of Ratatouille unless earlier terminated. reflected in the above table. to Ratatouille and our other future productions, we expect our operating expenses to increase significantly. measured based on the fair value of the assets exchanged. Three other similar complaints have been filed since October21, 2005. This agreement generally provides that we will be responsible for the development, pre-production The post-production stage consists of two parallel processes: the picture process and the sound process. accounting principles. We Brand/Credit. return reserves, these expense estimates are reviewed and may be adjusted periodically to ensure the most accurate depiction of our participation is reflected. The amount of revenue recognized in any given quarter or quarters from all of our films depends on the timing, accuracy, and sufficiency of information we receive from Disney to determine revenues and associated gross profits. The total number of initial shares available for issuance under the 2004 Plan was equal to the. Always one to embrace new technology, Mr. Iger made Disney an industry leader through its creative content offerings across new and multiple platforms, including the highly successful launch of the Disney+ streaming service in November 2019 and ESPN+ in 2018. each of Ziffren and WSGR did not exceed five percent of either law firms respective gross revenues in the last fiscal year of either such firm. This growth and expansion has placed, and continues to place, a significant strain on our resources. Values were estimated using zero dividend yield for all passive royalties on such products. Pursuant to the evergreen formula, 3,578,924 shares Here is a complete list of the Disney Shareholder Forms that are available to view and download. We have filed, or incorporated into the Form 10-K by reference, the exhibits listed on Management evaluates these assets for impairment whenever changes in circumstances indicate that the carrying amount of the asset may not be In 1996, we entered into a license agreement with Silicon Graphics, Inc. (SGI) whereby we granted to SGI and its subsidiaries a non-exclusive license to use certain of our patents covering techniques for creating We also experience competition with respect to our RenderMan software product. The Company continues to receive compensation based on revenue from the distribution of Toy Story and related products. 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. relatively unchanged in 2004 compared to 2003. Film production costs in excess of reimbursable amounts from Disney designed to encourage stock ownership by employees, directors, and consultants, thereby aligning their interests with those of Pixars shareholders and to permit the payment of compensation that qualifies as performance based compensation. served as President since January 2001. Item1 of this Form 10-K. Pixar was formed in 1986 when Steve Jobs purchased the computer division of Disney revenue for the twelve months ending December 31, 2022 was $84.415B, a 15.66% increase year-over-year. Pre-approval is detailed as to the particular service or category of services and is generally subject to a specific budget. A: Please allow the post office at least 10 mailing days to deliver your check. throughout the entire creative development and production process. h24V0P04Q0QM-ILI,IT04&TG0vv "< endstream endobj 1376 0 obj <>stream In March2004, the express an opinion on these financial statements based on our audits. Securities and Exchange Commission (SEC), and the information is not necessarily indicative of beneficial ownership for any other purpose. With regard to the Pictures (except for Ratatouille), we capitalize film production costs in excess of reimbursable amounts Others maintain our position as a leading brand in animated feature films. 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 The complaint asserts a class period from January18, 2005 to June30, 2005. We recognize film revenue from the distribution of all our animated feature films and related products when earned and reasonably estimable in accordance increased spending on production costs and differences in the timing of the collection of our receivables from Disney, partially offset by an overall increase in net income. Toy Story was developed, produced, and distributed. UNITED STATES SECURITIES AND EXCHANGE COMMISSION, ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d), For the fiscal year ended December31, materially adversely affected. Rule 12b-2 of the Exchange Act. A: Yes, you can buy and sell shares directly through The Walt Disney Company Investment Plan. related products, (2)the number of theaters to which Disney distributes our feature films, (3)the specific timing of release of our feature films and related products or (4)the specific amount or quality of marketing and regarding the timing of the theatrical release and related products, the marketing and distribution strategy, and the extent of promotional support are important factors in determining the success of our motion pictures and related products. Under that process, the Corporate Secretary of the Company reviews all such correspondence and regularly forwards to the Board a summary of all such correspondence and copies of all correspondence that, in the opinion of the Corporate Secretary, deals with the functions of the Board or committees thereof or that he otherwise determines requires their attention. effects, Marionette has been designed and optimized for character articulation and animation. increase, and film production spending may exceed such budgets. We also received a settlement on Monsters, Inc. total film revenues for the year. From 1994 through 2001, Mr.Bax was Chief Financial Officer for Fox Filmed Entertainment where he managed Shares of the Registrants Common Stock held by each executive officer and director have been excluded in that such persons may be deemed to be affiliates. specifically provided in the Co-Production Agreement (collectively, Derivative Works). accordance with Section3(a)(58)(A) of the Securities Exchange Act of 1934, as amended (the Exchange Act). Compensation Committee Interlocks and Insider Participation. In August 2004, we announced an exclusive multi-property publishing agreement with THQ in which we granted THQ the interactive rights to four future Pixar computer-animated feature films, beginning with Ratatouille, which is Disney has provided and may continue to provide us with reserve information that may differ substantially from our historical SFAS 154 is effective for accounting changes and Other Disney annual revenue for 2020 was $65.388B, a 6.06% decline from 2019. Pixar Headquarters 1200 Park Ave Emeryville, California94608 510-922-3000 Driving Directions Pixar Summary ABOUT Overview Pixar is a computer animation film studio that creates animated feature films, merchandise and other related products. computer-generated photo-realistic images. The Company has not identified any such impairment losses. From 2001 to 2005, Ms. Lagomasino was Chairman and Chief Executive Officer of JPMorgan Private Bank, a division of JPMorgan Chase & Co., a global financial services firm. 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 h235T0P035R0QM-ILI,IT04 &TG0vv - endstream endobj 1355 0 obj <>stream She served as a director of the Coca-Cola Company from 2003 to 2006 and from 2008 to the present, and she served as a director of Avon Products, Inc. from 2001 to March 2016. h23T0P00P0QM-ILI,IT043&TG0vv : endstream endobj 1369 0 obj <>stream The following are the conditions that must be met in order to recognize revenue in accordance with SOP 00-2: Under the Co-Production Agreement, we share equally with Disney in the profits of The Incredibles, Finding Nemo, Monsters, Inc., Toy Story 2 controls the filming phase of production and is responsible for backing up shots for archival purposes. operations. Further, because we rely mostly on internally developed software, we would not be able to rely upon assistance from third parties in the event that the software fails. rights to Ratatouille in perpetuity. He has been a director of Pixar since February 1986. Disney has provided and may continue to revenues for reversals of reserves which were established in prior years for Finding Nemo international home video reserves. determination for other purposes. He has been an We recognize revenue from our films net of distribution fees, reserves for returns, and marketing and Disney could make certain decisions as to marketing, distribution or promotion of the animated feature films or related products or the marketing and or older versions: IE11, Edge, Chrome (v60), Firefox (v48), Safari(v11). for creative contributions to come from the technical group. each of our business areas in the future. telephone number, including area code: Securities registered pursuant to Section12(b) of the Act: Securities registered pursuant to Section12(g) of the Act: Indicate by check mark if the Registrant is a well-known seasoned issuer, as defined in Rule405 of the Securities Act Walt Disney Co. - AnnualReports.com Disney has the sole and exclusive right in perpetuity to use, without Sales and marketing expenses remained endstream endobj 1354 0 obj <>stream We generated $124.8 1995 Director Option Plan (collectively, the 1995 Plans). The outstanding share of common stock of Pixar will be converted into the right to receive 2.3 shares of common stock of Disney. Financial Statements and Supplementary Data. Amy Chang serves on the Board of Directors of Procter & Gamble and Marqeta, and as an advisor to more than a dozen companies. Any such delays in feature film releases or product shipments could have a material Total operating expenses increased from $30.5 million in 2003 to $34.9 million in 2004 and decreased to $34.3 million in 2005. Finding Nemos domestic home video return reserves, and to a lesser extent Monsters, Inc. home video return reserves and Finding Nemos international home video reserves. There are abandoned property laws that require us to remit dividends and stock holdings for inactive accounts. In the layout stage, artists place the digital models into a scene and position the digital cameras at the angles from which the three-dimensional shot distribution by Disney. The FSP also includes accounting considerations subsequent to the Works. by Disney and, except for Ratatouille, 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. See Business Competition.. Dr.Catmull is a member of the Academy of Motion Picture Arts and Sciences and Directors who are not employees of Pixar receive a fee of Critical Accounting Policies and Estimates. Mr.Levy received a B.S. SGI and Microsoft may Consummation of the Merger is subject to several closing conditions, Production costs, whether h23T0P035P0QM-ILI,IT040&TG0vv . 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 such films to be successful. reserves, the historical return reserves for its previous titles, actual rates of returns, inventory levels in the distribution channel and other business and industry trend information that is available. Story under the Feature Film Agreement, and the Pictures (except for Ratatouille) under the Co-Production Agreement have been recorded as cost reimbursements. distribution of each Picture. The complaint generally alleged that Pixars directors breached their fiduciary duties in category, such as home video, merchandise or television, depends on factors unique to each type of product, such as pricing, competitive products, and the time of year or state of the economy into which a product is released, among many other Cash Flows. The accounting provisions of SFAS 123R are effective for annual reporting periods beginning after June15, 2005. We under and in accordance with the terms of the Co-Production Agreement, subject to certain exceptions, including but not limited to those noted below. brand in animated feature films. As of July2, 2005, the last day of the Registrants most recently completed second fiscal quarter, there were 118,568,761 shares of the The final rendering of a single frame takes an average of one to four hours, but a small percentage of more complex frames can take much longer, between 20 and 40 hours Mr.Lasseter is a two-time Academy Award-winning director and animator. Work stoppages could adversely impact our operations. distributed on April18, 2005, and reporting of our share price on a post-split basis commenced on April19, 2005. Merchandise and Derivative Works that we have delivered to Disney or which Disney elects to have completed, as well as all future Merchandise and future Derivative Works relating thereto, but otherwise terminates. depends on certain key employees. revenues and consumer products revenues. 1997, we entered into the Co-Production Agreement (which, except for certain economic provisions applicable to Toy Story, superseded the Feature Film Agreement) with Disney pursuant to which we. price and performance for professional users. capitalized as film costs or expensed as incurred, include, among other things, all carrying costs we incur for retention of employees for production purposes and their associated overhead expenses, the costs of all treatments we prepare for outside of the United States, Canada and Western Europe and in countries where we may have difficulty enforcing our intellectual property rights. Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods. In addition, there have been other-than-temporary impairment and requires certain disclosures about unrealized losses that have not been recognized as other-than-temporary impairments. See accompanying notes The cumulative effect of adoption, if any, applied on a modified prospective basis, would be measured and recognized on January1, There can be no assurance, however, that voluntary industry embargoes h235U0P035S0QM-ILI,IT044&TG0vv 4 endstream endobj 1357 0 obj <>stream Any revisions to our The final rendered digital image is then sent to our PixarVision laser Our library titles also generated. 109, is extremely unpredictable, and the motion picture industry involves a substantial degree of risk. You can also request replacement of any uncashed dividend checks previously issued to you by calling 1-855-553-4763. litigation could result in substantial costs and diversion of resources and could have a material adverse effect on our business, operating results or financial condition. additional equity or convertible debt securities would result in additional dilution to our shareholders. 2003, was written and directed by Academy Award-winning Andrew Stanton, who served as co-director and co-screenwriter of A Bugs Life and as co-screenwriter of Toy Story, Toy Story 2, and Monsters, Inc. Academy Award-winning Brad Bird previously directed and wrote the Ms.Scali was a partner at Irell& Manella LLP, a leading Los Angeles law firm, from January 1993 until March 2003 where she founded and directed the firms obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise. We are subject to risks caused by the availability and cost of insurance. balances earning interest at higher average rates. Mr.Levys benefits approximated $18,000. Software maintenance is recorded as deferred revenue and is recognized ratably over the term of the agreement, which is generally twelve months. A partial list of thousands of sketches that represent the story to be animated. significantly greater than 10% of our revenues in 2006 and in the near future. We believe that our current available funds and forecasted cash from operations in fiscal 2006 will be sufficient to satisfy Intellectual Property Transactions Group and served on the firms Executive, Partnership, Strategic Planning and Intake Committees. the National Academy of Engineering. Consequently, it was necessary to use a combination of # ' ),$' ( recognized on January1, 2006. (5)the expansion of our facilities to accommodate the growth of the studio. several central characters in live action films such as Star Wars Episode III: Revenge of the Sith. arrangements. or older versions: IE11, Edge, Chrome (v60), Firefox (v48), Safari(v11). Moreover, in recent years, the stock market has experienced certain purposes, will not be required to become a union signatory. The complaint asserts a class period from January18, 2005 to June30, 2005. developments at Pixar, including information. We had $182.1 million in capitalized film production costs as of information available to enable Pixar to recognize its share of revenue and determine its film gross profit, in the past the Company has made revisions, and For all other Derivative Works except theme parks, we Because this process is iterative, there is continuous reworking of the film. 03-1, The Meaning of Other-Than-Temporary Market Indexes. Investment Portfolio. B.A. For the best experience, you are recommended to upgrade your browser to the followings if you are using IE10 (incl.) 123 (SFAS 123), Accounting for Stock-Based Compensation, which require disclosure of the pro forma effects on net income and The Merger Agreement contains certain termination rights for resources to fund both the construction on our Emeryville campus and film production costs. 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. feature film agreement with Disney, which provided for the development, production and distribution of up to three feature-length motion pictures (the Feature Film Agreement). See Note 8 and Note 9 of Notes to Financial Statements for additional discussion on such adjustments and revisions. Participants may elect to contribute a percentage of their compensation to this plan, up to the statutory maximum amount. Distribution Letter Agreement. reasonable terms. 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 theatrical motion pictures itself or enter into similar agreements with Animated Feature Films. Such increases were offset by a decrease in employee related costs as no bonus was paid in 2005 and there was a shift in certain research and development Mr.Sonsini has served as a director of Pixar since April 1995 and served as Secretary from April 1995 to October 1995. She serves on theboardsofThe Coca Cola Company, Villanova Universityandthe Humane Society of the United States. of estimation for revenue recognition. 153 (SFAS 153), Exchanges of Nonmonetary Assets (an amendment of APB h03T0P03R0QM-ILI,IT052&TG0vv 7 endstream endobj 1459 0 obj <>stream Also, projections of any See Business Recent Developments.. concerning compensation paid for services to us in all capacities during the last three fiscal years. Section16(a) Beneficial Ownership Reporting Compliance. several of these legal matters be resolved against Pixar in the same reporting period, the operating results of a particular reporting period could be materially adversely affected. Further, we may be directly or indirectly dependent upon union members, and work stoppages or strikes organized by such unions could materially adversely impact our business, CSR REPORT 2021; CSR REPORT 2020; Doing Business With FOX; EEO-1 DATA; Human Rights Statement; Insider Trading and Confidentiality Policy . Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted We utilize this information to determine our portion of the revenue by applying is likely to make revisions in the future, to that information based on its estimates and judgments. Disney retains the exclusive distribution and exploitation rights. h273W0P07P0QM-ILI,IT061 &TG0vv b; endstream endobj 1413 0 obj <>stream rights. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position SFAS 123R will also require a classification change in the statement of cash flows; whereby, a portion of the tax benefit from stock options will move from Dealers, Inc. The decrease in cost of film revenue as a percentage of total film revenue for 2004 compared to 2003 can be attributable to favorable revisions on h20V0P00Q0QM-ILI,IT067&TG0vv &< endstream endobj 1421 0 obj <>stream Accordingly, Toy Story 2 did not count as one of the five Pictures to be produced. delivered the third Picture, Finding Nemo, to Disney under the Co-Production Agreement, which occurred in April 2003. Mr.Lasseter is currently directing his fourth feature film, Cars. Co-Production Agreement without a license from Disney. 2006, the defendants removed the action to the United States District Court for the Northern District of California. impairment of long-lived assets whenever events or changes in circumstances indicate that. The budgets for Cars and subsequent films and related products are expected to be greater than the budgets for our previous films. historical experience. As of December31, 2005, the Company had 3,108,782 shares reserved and available for issuance under the 2004 Plan. consolidated before a single judge and are referred to as In re Pixar Securities Litigation. Feature film revenue and related products represented approximately 95% of our total revenue in fiscal years 2003, 2004, and 2005. international distribution of our films and related products. materially adversely affected. anticipated revenue from any individual feature film, we would be required to accelerate amortization of related film costs, resulting in lower gross margins. Moreover, we cannot provide any assurances that we will be successful in obtaining future financing, or even if such financing is available, was $79.7 million, $79.4 million, and $88.7 million for fiscal years 2003, 2004 and 2005, respectively, and differed from the amounts computed by applying the U.S. federal income tax rate of 35% to pretax income from operations as a result of the production costs and shares a specified percentage of Toy Story profits with Pixar after certain agreed upon costs and fees are deducted. worldwide basis in a manner similar to that in which Disney then currently distributes and markets its premiere animated movies. In 2005, the Company derived significant tax benefits from the Extraterritorial Income (ETI) exclusion allowed under U.S. income tax laws with Net cash provided by operating activities, Net cash provided by financing activities, Net increase (decrease) in cash and cash equivalents. financial performance. Portions of our Overhead are The success of each animated We produce our computer-animated feature films and other projects in four stages: creative development, pre-production, production and post-production. Under the Distribution Letter Agreement, Pixar shall have sole ownership of copyrights, trademarks and other intellectual property rights in and to products are incurred well in advance of the release of such films and products, and we experience a delay in the receipt of proceeds from such films and products until after Disney recovers such costs. The Company entered into a Distribution Letter Agreement (the Distribution Letter accordance with SOP 00-2. governments of those countries to become more aggressive in preventing motion picture piracy. our products. Annual Reports 2019 Annual Report 7.4 MB. h271W0P07P0QM-ILI,IT060 &TG0vv 3 endstream endobj 1403 0 obj <>stream From 2018 to 2020, Ms. Chang served as Executive Vice President and General Manager of Ciscos Collaboration business. including Disney (as somewhat limited by the Co-Production Agreement), DreamWorks Animation SKG, Inc. (DreamWorks), Warner Bros. Entertainment (Warner Bros.), Sony Pictures Entertainment (Sony), Fox Entertainment SOP 00-2. We will adopt SFAS 123R in the first quarter of fiscal year 2006. On January24, 2006, we entered into an Agreement and Plan of Merger (the Merger Agreement) with Disney by which Disney has agreed to acquire Pixar (the Merger). Pixar and Disney December31, 2005 were as follows: At December31, As of December31, 2005, we had approximately 850 employees and contractors. The first four original Pictures under the Co-Production Agreement were A Bugs Life, Monsters, Inc., Finding Nemo and The large number. competed with The Incredibles in the worldwide home video market. to provide protection of our technology may make it easier for our competitors to offer technology equivalent to or superior to our technology. We also rely on certain technology predicted with certainty. Dr.Catmull is a member of the Academy We used existing cash resources to fund these facility-related costs. estimates, it is possible that Disney may make subsequent revisions to those estimates which could result in a change to the Companys estimate of revenue for a given period. h276V0P076Q0QM-ILI,IT027&TG0vv 1 endstream endobj 1396 0 obj <>stream to our Emeryville facility, as well as approximately 4,000 square feet of office space in Seattle, Washington, which is occupied by our RenderMan software group. difficult to predict, it is not uncommon for film production spending to exceed film production budgets, and our current projects may not be completed within the budgeted amounts. 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 h01V0P01Q0QM-ILI,IT04 &TG0vv 7 endstream endobj 1450 0 obj <>stream Q: What is unclaimed property? See Business Proprietary Rights.. Development. The following summary is not complete, and reference is made to the Co-Production Agreement filed as an exhibit to the 1996 Form10-K. Our investments are primarily fixed rate obligations and carry a certain degree of interest rate risk. Report Builder Keyword Analysis Movie Comparisons Search.
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