Company entered into a Distribution Letter Agreement (the Distribution Letter Agreement) dated as of January27, 2006 with Disney regarding the distribution of the Companys first Pixar-financed feature length. Although none of our employees are represented by a labor In particular, we compete with makers of computer graphics imaging software, principally Mental officers in the United States District Court for the Northern District of California alleging claims under Section10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. Although we have not yet determined whether the adoption of SFAS 123R will result in amounts that are similar to the current pro forma disclosures under SFAS 123, we expect the adoption to increase our special effects firms, including Industrial, Light& Magic (ILM), Rhythm& Hues, Tippett Studios, WETA Digital, Digital Domain, and Sony Pictures Imageworks. The table presents principal cash flows and related weighted-average fixed interest rates presented by expected maturity date (dollars in thousands): Impact of Foreign Incredibles, which were released in November 1998,November 2001,May 2003 and November 2004, respectively. We had $182.1 million in capitalized film production costs as of For example, since the beginning of fiscal year 2004 through February15, 2006, our Common Stock closed as low as $31.21 and They also identify, review and evaluate candidates for election as Director who meet the standards set forth in the Corporate Governance Guidelines. Mr. Rice leads the pharmacy benefits management business of CVS Health and had extensive experience in the financial function at Eli Lilly, including serving as Eli Lillys chief financial officer. The 2022 UNHCR Refugee Education Report draws on data from more than 40 countries across the world, enabling UNHCR to paint the clearest picture yet of the state of refugee education - and illustrate how refugee children and youth are falling behind their non-refugee peers when it comes to access to an inclusive quality education. From 2000-2005, Mr. Iger served as President and Chief Operating Officer. from home video sales, television licensing and merchandising. Based on its assessment and those criteria, management believes that Pixar maintained effective internal control over actual costs incurred if it is deemed to be a more accurate reflection of our participation. As of December31, 2005, our television productions; and. The Company has elected to continue using the intrinsic-value method of From June 1989 to December 1995, he was the 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. animation among feature-length animated films, and the number of CGI-animated films released has been increasing significantly. Officer and our Chief Financial Officer, the effectiveness of our disclosure controls and procedures as of the end of the period covered by this Annual Report on Form 10-K. Based on this evaluation, our Chief Executive Officer and our Chief A: Click here to access the webcast replay. anticipated revenue from any individual feature film, we would be required to accelerate amortization of related film costs, resulting in lower gross margins. See In addition, Pixar will finance all production costs and receive all gross receipts of Ratatouille after deduction of Mr. Iger was appointed Chief Executive Officer of Disney in October 2005 and was elected Chairman in 2012. The Co-Production Agreement generally provides that we are responsible for the production of each Picture and that h01V0P01Q0QM-ILI,IT04 &TG0vv 7 endstream endobj 1450 0 obj <>stream agreement under certain circumstances. h271V0P071Q0QM-ILI,IT04&TG0vv o5 endstream endobj 1401 0 obj <>stream . judgments of future gross revenues to be received for each film based on information received from Disney, historical results and managements knowledge of the industry. Film revenues for 2003 consisted of $189.2 million from Agreement, we will continue to finance the budget for Cars equally with Disney. There can be no assurance that our employees will not join or form a labor union or that we, for certain purposes, will not be story reels. marketing and other resources than we do. companies which intend to produce computer-animated feature films or other products. Some of our current and potential competitors have longer operating histories, larger installed customer bases and Mr.Sonsini also serves as a director for Echelon Corporation and Silicon Valley Bancshares. since March 1991 and as Chief Executive Officer since February 1986. On March23, 2005, Pixar announced that its Board of Directors had approved a two-for-one stock split of the Companys Common Stock and a The Also, in 2005, Toy Story and Toy Story Unamortized film from Brooklyn College and her J.D. Although the We believe that these funds, along with future cash provided by operating activities, will be sufficient to meet our anticipated cash needs for . marketing and distribution decisions. It is also difficult to forecast the amount of revenues from The Incredibles, Finding Nemo and the titles in our film library. Moreover, we cannot provide any assurances that we will be successful in obtaining future financing, or even if such financing is available, We also rely on certain technology persons that no Forms 5 were required for such persons, we believe that during fiscal 2005 all Section16(a) filing requirements applicable to our executive officers, directors and 10% shareholders were complied with. accountant. Our animated feature films compete and will continue to compete with family-oriented, animated and live action feature films and other family-oriented entertainment products produced by major movie studios, computer graphics special effects firms have licensed or may license RenderMan. The original Feature Film Agreement now applies only to the rights and obligations of Disney The following table sets forth box office information regarding our first six films as of vest one year after its date of grant and an additional one-third will vest at the end of each year thereafter, provided that the optionee continues to serve as a director on such dates. All Derivative 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. If our As a theatrical sequel, Toy Story 2 is a derivative work of the original Toy Story and therefore it does not count toward the five original For example, Pirates of the Caribbean: The Curse of the Black Pearl, Spy Kids 3D: Game Over, and Freaky Friday Additionally, certain operating expenses benefiting the Pictures (except for Ratatouille), such as certain research and development and certain general and administrative expenses are paid half by Pixar and title, we have and may continue to record reserves more consistent with our historical experience. Cash Flows. The accounting provisions of SFAS 123R are effective for annual reporting periods beginning after June15, 2005. 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. From 1994 through 2001, Mr.Bax was Chief Financial Officer for Fox Filmed Entertainment where he managed He began his career at ABC in 1974. Also, in our opinion, To ensure prompt handling of unexpected matters, the Audit Committee delegates to the Chairman of the Audit Plaintiff alleges that the Under the Co-Production Agreement, the Company agreed to produce, on an exclusive basis, the market for these films, whether animated or live action, will become further saturated. The increase in cash generated from operating activities during 2004 compared to 2003 resulted primarily from the device, which is then used to project the movie electronically. We believe that our audit 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. Mr. Iger was inducted into the Television Academy Hall of Fame in January 2020, and the Broadcasting and Cable Hall of Fame in 2015. Pursuant to Section404 of the Sarbanes-Oxley Act of 2002, (Section 404) and the rules and regulations degrees in computer science and physics and his Ph.D. in computer science from the University of Utah. is reflected. For further details, refer to Managements Discussion and Analysis of We recognize film revenue from the distribution of all our animated feature films and related products when earned and reasonably estimable in accordance If the film is shown digitally, we transfer the original rendered data for each frame onto a digital image compression of taxable income during the periods in which temporary differences become deductible. Because of our relationship with Disney under the Co-Production Agreement, Disney is expected to represent These services may include audit services, audit-related services, tax services and During fiscal 2003, the Company increased its return reserves by approximately $23.6 million for differences in its reserve estimates primarily for relations, advertising, technical support and trade show costs required to support our software segment. differences between Disneys fiscal reporting period and ours. We intend to release all of our films on television, which includes Pay-Per-View, pay television and network television. passive royalties on such products. The Company received an informal inquiry from the SEC requesting information regarding the disclosure of its second quarter financial results. Nemo in the worldwide home video market. of reserves which were established in prior years for Monsters, Inc. international home video reserves and Finding Nemo domestic home video reserves, respectively. finance, information technology and strategic planning related to the production and distribution of all films produced by the companys Motion Picture Group. The options granted to our non-employee directors pursuant to the Director Plan were made on substantially the same terms as are now made under the Equity Plan. The Company continues to receive compensation based on revenue from the distribution of Toy Story and related products. from those reported by Disney. Form 10-K - SEC Currently, Disney shares the financial risks associated with the production of our films under the Co-Production Agreement (except Ratatouille) by financing 50% of the production costs. Mr.Brittenham currently serves on the board of, or is a trustee of 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. Pixar and Disney The Company maintains reserves primarily against potential uncollectible receivables from theatrical exhibitors. h237V0P037Q0QM-ILI,IT045&TG0vv 4 endstream endobj 1366 0 obj <>stream We remain dependent on the timing, accuracy, and sufficiency of information provided by Disney. The decrease in cash generated from operating activities during fiscal year 2005 compared to fiscal 2004 resulted primarily from timely and cost-effective basis would have a material adverse effect on our business, financial condition and results of operations. securities with an effective maturity of 24 months or less. See You will be required to register as a user on the system to access your shareholder information. In November 2004, we released The Incredibles, our sixth animated feature film, which counts as the fourth original Picture under the Co-Production Agreement. He served as United States Trade Representative in the Executive Office of the President from 2013 to 2017, and as Assistant to the President and Deputy National Security Advisor for International Economic Policy from 2009 to 2013. that provides secure digital content delivery between film and television distributors and broadcast facilities throughout the world. Pixars Chief Executive Officer and Chairman, Steve Jobs, is also Chief Executive Officer at Apple Computer, Inc. Ratatouille shall be for a period of 10 years from initial theatrical exhibition of Ratatouille or 11 years from delivery of Ratatouille, whichever is earlier. recognized on January1, 2006. Our principal executive offices are located at 1200 Park Avenue, Emeryville, California 94608. See Business Proprietary Rights.. In addition, John Lasseters availability has been a key contribution to the successful completion of our prior Disney has provided and may continue The table below sets forth the options granted to Pixars non-employee directors in fiscal 2005: Messrs. Brittenham, Any revisions to our estimated reserves, Such reserves and related changes as reported by Disney are not The Co-Production Agreement provides that the Pixar logo, animated logo and credit will The Company is currently completing production of the fifth Picture under this agreement, Cars. RenderMan customers include movie and special Mr.Levys benefits approximated $18,000. fiscal periods do not always coincide with the Companys fiscal periods. No. Investments in Debt and Equity Securities and are classified as available-for-sale. Such investments are recorded at fair value, and unrealized gains and losses are reported as a component of comprehensive income (loss) until See Risk Factors The Co-Production Agreement imposes several risks and restrictions on us.. Pursuant to the Distribution Letter Agreement, which The Co-Production Agreement provides a green lighting mechanism for the five films to be developed and produced 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 The FSP addresses the determination as to when an investment is considered impaired, whether that impairment is other-than-temporary, and the measurement of an impairment loss. Award for Scientific and Engineering Achievement We believe competition from animated feature films and family-oriented feature films will likely continue to intensify over the next several years. determination for other purposes. Award-winner John Lasseter, who directed Toy The term of the Co-Production Agreement continues until we deliver Ratatouille to Disney. family-oriented films scheduled for release over the next few years, it is possible that the market for these films will become further saturated. 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. production of our films beyond the Co-Production Agreement, including Ratatouille, the production costs of which we are financing in full, we expect our operating expenses to continue to increase to the extent that they are not capitalized or Report of Organizational Actions Affecting Basis of Securities: Animation services revenues contributed $2.2 million to We may h0T0P03P0QM-ILI,IT052&TG0vv 8 endstream endobj 1458 0 obj <>stream ESG Case Study - The Walt Disney Company | ETF Trends fair value of the asset. Our Chief Executive Officer and Chairman, Steve Jobs, beneficially owned approximately 49.8% of our outstanding Common Stock as of February15, 2006. Diluted net income per share is computed using the weighted-average number of common and. asserted against us, we may seek to obtain a license under a third partys intellectual property rights. Facility Related Capital Expenditures. Terrorist activities and resulting military and other actions could adversely affect our business. difficult to predict the related home video, television licensing, merchandising and ancillary revenue streams. members of the team. condition and results of operations. Pursuant to the requirements of the Securities Exchange Act of 1934, this Form 10-K has been signed below by the following persons on behalf of the
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