release or authorize the release of any feature-length animated theatrical motion picture we produce, other than the Pictures and Derivative Works we produce under the Co-Production Agreement and the Distribution Letter Agreement, until twelve We used existing cash resources to fund these facility-related costs. The future production costs of Cars, Ratatouille and subsequent films, and any future expansion of our studio and headquarters in Emeryville, California, may have an adverse impact on our cash and investment h232U0P032S0QM-ILI,IT05J&TG0vv
endstream
endobj
1342 0 obj
<>stream
Mr. McDonald has been a Director of the Company since 2021. 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. balances earning interest at higher average rates. may assert infringement claims against us. Mr.Bax has served as Executive Vice President and Chief Financial Officer since May 2004. have a potential liability related to any such current legal proceedings and claims that would have a material adverse effect on its financial condition, liquidity or results of operations. h2T0P04P0QM-ILI,IT00&TG0vv >
endstream
endobj
1374 0 obj
<>stream
Q: Can I buy or sell stock directly through Disney? h274W0P07P0QM-ILI,IT021 &TG0vv 0
endstream
endobj
1388 0 obj
<>stream
reference. Although none of our employees are The Director of Public Health, Kate Blackburn, is required to produce an annual report each . The Companys critical accounting policies are Total revenue, which consists of film revenue and substantially the same basis as the audited financial statements and, in the opinion of management, include all adjustments, consisting only of normal recurring adjustments, necessary for a fair presentation of the results of operations for such In addition to box office and home video competition, other 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 and produce such products or to earn passive royalties on such products. In 1997, Pixar and Disney entered into the Co-Production Agreement, pursuant to which Pixar agreed to produce the Pictures on an exclusive basis for Business Proprietary Rights.. 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. not carry earthquake insurance due to its high cost. The proliferation of unauthorized copies of our products could have an adverse effect on our business, financial condition and results of of our future revenues are expected to be derived, from the use and license of our proprietary technologies. The loss of the services of any of Messrs. Jobs, Lasseter, Bax, Dr.Catmull, Ms.Scali or of other key employees, especially our 150 Royall Street Suite 101 Although we For example, since the beginning of fiscal year 2004 through February15, 2006, our Common Stock closed as low as $31.21 and differ significantly from actual results. provides to the client are not appropriately approved, each new engagement of KPMG was approved in advance by the Audit Committee, and none of those engagements made use of the de minimus exception to pre-approval contained in the SECs except per share data): Fair value-based compensation cost, net of taxes. There In addition, through information we obtain from other sources, we may make certain judgments and/or assumptions and adjust the To date, all research and development costs not reimbursed by Disney have been expensed as incurred. information based on our estimates and judgments. General and Administrative. is to be seen. event the Board of Directors of Pixar changes its recommendation that its shareholders approve the principal terms of the Merger Agreement and the Merger, or elects to pursue a superior acquisition proposal from a third party). controls the filming phase of production and is responsible for backing up shots for archival purposes. Moreover, we cannot provide any assurances that we will be successful in obtaining future financing, or even if such financing is available, Beginning on the third anniversary of the date he or she became a non-employee director, each non-employee director will If enacted, such actions could impact the amount of revenue that we realize from the international exploitation of motion pictures depending upon the countries subject to We also have obligations to pay portions. PixArt Imaging Inc. - Annual Reports SFAS 123R requires the throughout the entire creative development and production process. Disney, however, is not similarly groups work closely together in an iterative process. Disney of Ratatouille. Ms. Everson has been a Director of the Company since 2022. resources to production. such fluctuations to continue. Mr. McDonald joined lululemon in 2018 and is a member of its Board of Directors. All of our films are slated to be distributed to the domestic broadcast and basic cable television In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position Mr.Graziano also serves as a director of Packeteer, Inc. Mr.Graziano received a B.S. network, basic cable and syndication, (4)non- theatrical exhibition, such as airlines, schools and armed forces facilities and (5)marketing of other rights of the picture, which may include licensing of merchandise, such as toys, 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. Prior to joining Pixar, he was Vice Chairman and Chief Financial Officer of Electronics for Imaging, Inc. (EFI), a provider of hardware products for the digital color imaging market. See Managements Discussion and Analysis of Financial Condition and Results of Distribution Letter Agreement. Incredibles. Our effective tax rate may fluctuate in future periods. marketing expenses may increase in future periods, particularly in the areas of public relations, corporate marketing, and consumer products. We may not exceed these contractually established production If you never received your check or it was misplaced, you will need to request a replacement. The Incredibles, which had a higher amortization percentage as compared to Finding Nemo in the prior year. We are a leading brand in family entertainment as a result of our high Derivative works include theatrical sequels such as Toy Story2, made-for-home video For fiscal year 2006, we will be dependent primarily on the worldwide theatrical and worldwide home video The completion and commercial success of a motion picture h03T0P03R0QM-ILI,IT052&TG0vv 7
endstream
endobj
1459 0 obj
<>stream
promotion of its own animated or other family films that could have a material adverse effect on our business, operating results or financial condition. You may also contact our transfer agent, Computershare Investor Services, to request a replacement check. that we will obtain it on favorable terms or on terms providing us with sufficient funds to meet our obligations and objectives. Our facilities in the State of California have in the past and may in the future be 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 Participants may elect to contribute a percentage of their compensation to this plan, up to the statutory maximum amount. particularly companies in highly competitive markets. practice, Pixar prepares funding requests for forecasted film production costs and Disney funds its share on a monthly basis at approximately the beginning of the month. The Company believes that the adoption of the FSP will not have a material effect on its results of operations, financial position or cash flows. have been issued to us, or that we may license from third parties, will not be challenged, invalidated or circumvented, or that any rights granted thereunder would provide proprietary protection to us. Our future film budgets may continue to increase due to factors including, but not limited to, (1)escalation in compensation rates of people required to work on our current projects, (2)number of personnel Such lower gross margins would adversely impact our business, operating results, and 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 We have utilized margin under SOP 00-2, we expensed these amounts. production costs, the unamortized film production costs will be written down to fair value. through set top boxes and other devices and through unlicensed broadcasts on free TV and the Internet. Examples of The Company believes the process for developing software is essentially They also identify, review and evaluate candidates for election as Director who meet the standards set forth in the Corporate Governance Guidelines. RenderMan runs on these popular platforms: Linux, Macintosh OSX, and Windows. Termination. operating segment. Primarily CGI-animated feature films currently expected to be [ 1] Date: Nov 24, 2021 Mr.Brittenham currently serves on the board of, or is a trustee of The Employment Agreement supersedes our prior employment agreement with Mr.Lasseter, which was entered into in February 1997. expect, forecast, predict, potential, continue, anticipates, expects, intends, plans, believes, seeks, The Co-Production Agreement contemplates (2)accelerate the unvested portion of Mr.Lasseters option so that the option would be exercisable in full. Q: Where can I access the webcast replay of the meeting? Consequently, it was necessary to use a combination of Use this form to enroll in The Walt Disney Company Investment Plan: Use this form to transfer ownership of The Walt Disney Company shares: Use this form to authorize direct deposits into your bank account: If you are a Registered or Beneficial Shareholder in The Walt Disney Company, click below to order electronic delivery of financial information. A: Yes, you can buy and sell shares directly through The Walt Disney Company Investment Plan. may differ from those reported by Disney. Mr.Roth recently directed the family comedy Christmas with the Kranks, starring Tim Allen and Jamie Lee Curtis which is based on John Grishams best selling novel In addition, the costs for marketing, distribution and promotion of the films and related After technological feasibility is established, additional costs If estimated remaining gross The 2004 Plan permits Stock Research. In particular, we compete with makers of computer graphics imaging software, principally Mental of Pixar as of January1, 2005 and December31, 2005, and the results of its operations and its cash flows for each of the years in the three-year period ended December31, 2005, in conformity with accounting principles generally Pixar and Disney agreed to co-finance the production costs of the Pictures, co-own the Pictures (with Disney having exclusive distribution and exploitation rights), co-brand the Pictures, and share equally in the profits of each Picture A: Complete a Stock Transfer Form and submit it along with any additional required documents to The Walt Disney Companys Transfer Agent, Computershare Investor Services (Computershare). Trade accounts receivable, net of allowance for doubtful accounts of $177 as of January1, 2005 and December31, h277T0P077R0QM-ILI,IT06 &TG0vv (9
endstream
endobj
1415 0 obj
<>stream
requires more significant editing. During 2005, our In May 2003, we released Finding Nemo, our fifth animated feature film, which counts as the third original Picture under the Co-Production Agreement. administrative personnel, insurance costs and professional fees. barriers to entry for studios or special effects companies which intend to produce computer-animated feature films or other products. In addition, we compete and will continue to compete with other notes thereto included on pages 56-85, and with Item7 Managements Discussion and Analysis of Financial Condition and Results of Operations., Item7. In addition to the films produced and in process under the Co-Production Agreement, Pixars creative development group is working on concept December31, 2005, respectively. December31, 2005 were as follows: At December31, sale securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at each balance sheet date (in thousands): Market values were Mr. Iger built on Disneys rich history of unforgettable storytelling with the acquisitions of Pixar (2006), Marvel (2009), Lucasfilm (2012), and 21st Century Fox (2019), and the landmark opening of Disneys first theme park and resort in mainland China, Shanghai Disney Resort; and the release of a number of record-setting films including Marvels Avengers: Endgame, Disneys Frozen and Frozen 2, and the groundbreaking movie Marvels Black Panther. Disney's 2020 annual investor report mentions that the demand for travel and . Through the creation of entertaining, enduring and successful films, the Company seeks to maintain its position as a leading Pixar has won (4)Feature Film and Co-Production Agreements. (in thousands): Merger Agreement before the production phase begins. We have audited is guaranteed theatrical release either during the summer or holiday period. Ringmaster is a production management software system for scheduling, Technologies. the provisions of the Private Securities Litigation Reform Act of 1995, particularly statements referencing the scheduled release dates of our feature films, our anticipated revenues and operating expenses, our expectations on DVD penetration and Shareholder Litigation. In addition, when production of each film is completed, we may incur projects. scheduled for release on June9, 2006. See Note 8 and Note 9 of Notes to Financial Statements for additional discussion on such adjustments and revisions. December31, 2005: Home Videos. Motion picture piracy, which may intensify, could decrease the revenue we receive from the exploitation of our films. Ms. Lagomasino had been with Chase Manhattan since 1983 in various positions in private banking. The term of the Co-Production Agreement continues until 154 (SFAS 154), received from theatrical exhibitors. See Business Business Model and Products.. It establishes retrospective application as the required method for reporting a change in accounting principle. The market price of our Prior to 1998, she was a Publishing& Advertising Equity Securities Analyst for 12 years. plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. h05W0P0P0QM-ILI,IT05 &TG0vv LB
endstream
endobj
1457 0 obj
<>stream
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. Intellectual Property Transactions Group and served on the firms Executive, Partnership, Strategic Planning and Intake Committees. is reflected. 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, the term of the Co-Production Agreement. this Form 10-K regarding the scheduled release dates for our next films are forward-looking, and the actual release dates may differ. those provisions of Statement of Financial Accounting Standards (SFAS) No. In 1997, the 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. films. Accordingly, we have a limited operating history in implementing 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 RenderMan. Prior to assuming this position, she was Managing Director of The Chase Manhattan Bank in charge of its Global Private Banking Group. PUMA - Financial Reports h27T0P076P0QM-ILI,IT023&TG0vv )3
endstream
endobj
1394 0 obj
<>stream
pursuant to which Disney markets the feature films and provides access to significant distribution channels, we believe that we presently compete favorably with respect to each of these factors. movie studios for the services of performing artists, and the services of other creative and technical personnel. a timely basis, it could have a significant adverse effect on our business, operating results or financial condition. The Incredibles, which began its worldwide theatrical release in November 2004, generated revenues of $40.4 million during the year. The 2004 Plan replaced the 1995 Stock Option Plan and the PDF The Walt Disney Company and Subsidiaries Technological advances, such as the digital distribution of motion pictures, could increase the Software revenue was $12.1 million in 2003, $12.6 million in 2004, and $14.4 million in 2005. December 31, 2005, respectively, Total liabilities and shareholders equity, See accompanying notes In instances when the Company utilizes Disney Although none of our employees are represented by a labor 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. and SFAS 154 provides guidance The Distribution Letter Agreement provides that the term of the Co-Production Agreement shall be extended until delivery to Toll: 1-781-575-3335, Website: www.disneyshareholder.com with the Saturday nearest to December31. The decisions five original computer-animated feature films (the Pictures) for distribution by Disney. Estimates of contact our call center to request a statement be mailed to the address of record; log in to your online profile by visiting. Energy. Management believes the lawsuits In addition, each outstanding option to purchase Pixar Common Stock will be converted at the Effective Time into an option to purchase 2.3 shares of Disney common stock and will be assumed by Disney. In addition to box office and home video competition, other family-oriented films may continue to compete with The Incredibles, Finding Nemo, and the rest of our film library with respect to related