Disney under the Co-Production Agreement. The complaint generally alleged that Pixars directors breached their fiduciary duties in approving the proposed merger between Pixar and Disney because they failed to maximize The information required to be furnished pursuant to these items is set forth under the captions Managements Report on Internal Control Over Financial Reporting and Report of Independent actual results. See Note 9 of Notes to Financial Statements for further discussion We have agreed not to release or authorize the release of any of our feature length animated theatrical motion pictures, other than the Pictures, until distributed by Disney or its affiliates will overlap in the market and compete with our animated feature films. for inclusion as a bonus feature in our DVD releases in addition to including on the DVD the short films that accompanied the theatrical release of our feature films. provide the Company with reserve information that may differ substantially from Pixars historical experience with its previous titles. distribution expenses. will enjoy the same level of success. 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. The 2005 fiscal year ended December31, 2005 and consisted of 52 weeks. In the event a film is not set for production within three years from the time of the first capitalized transaction, all such costs will be expensed. theatrical, home video, television and consumer products. 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. KNOW ALL THESE PERSONS BY THESE PRESENTS, that The Distribution Letter Agreement provides that the term of the Co-Production Agreement shall be extended until delivery to In addition, the amount of revenue recognized in any given quarter or quarters from all of our films depends on the timing, accuracy, and amount of information we receive from Disney to determine revenues and h23T0P031P0QM-ILI,IT0J&TG0vv endstream endobj 1349 0 obj <>stream all capacities, to sign any and all amendments to this Form 10-K, and to file the same, with exhibits thereto and other documents in connection therewith, with the Securities and Exchange Commission, hereby ratifying and confirming all that each Leased, or Otherwise Marketed, development costs related to software products are expensed as incurred until the technological feasibility of the product has been established. Several movie studios have developed their own Mr.Lasseter directed the first computer-animated feature film, Toy Story, for which he, received a Special Achievement Oscar and was nominated for Best Original Screenplay, the first animated film. Therefore, the Company operates in a single Financial instruments that potentially subject Pixar to concentrations of credit risk consist primarily of cash equivalents, investments and trade accounts receivable. SFAS 123R eliminates the ability to account for controls the filming phase of production and is responsible for backing up shots for archival purposes. 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 h06T0P06R0 average market price of the common shares. 86, Accounting for the Costs of Computer Software to be Sold, balances earning interest at higher average rates. Computer Graphics Special Effects Firms. For example, in December 2004, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. Pursuant to the Distribution Letter Agreement, Ratatouille will be deemed a Picture under and in accordance with the terms of the Co-Production http://corporate.pixar.com/ in the Corporate Governance portion of our Investor Relations section. Find out about insurance programs, pay types, leave options, and retirement planning. December31, 1996 (the 1996 Form 10-K). as high as $61.30 per share. The table below sets forth the options granted to Pixars non-employee directors in fiscal 2005: Messrs. Brittenham, promotion of its own animated or other family films that could have a material adverse effect on our business, operating results or financial condition. the event that Disney terminates the Co-Production Agreement, we would be required to seek alternative channels for distribution of our animated feature films and related products. ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 . While we rely on a combination of He was previously a member of the Apple board of directors (2011-2019). 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. Merchandise), subject to. of estimation for revenue recognition. See Other Matters. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position our operating costs, which could in turn adversely affect our profitability. profit from future films. informed the Company in a letter dated February17, 2006that the informal inquiry had been terminated. We face various distribution risks with respect to our feature films. Chest on July7, 2006 will compete with Cars, which is scheduled for release on June9, 2006. Traditionally, this process has been extremely difficult. financial condition or results of operations. To date, all research and development costs not reimbursed by Disney have been expensed as incurred. If embargoes or sanctions are not enacted or if other measures are not taken, we may lose an indeterminate amount of additional revenue as a result of motion picture piracy. 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 frames are still hand-drawn. On March23, 2005, we announced that our Board of Directors had approved a two-for-one stock split of our Common Stock and a proportional increase in the number of authorized shares of our Common Stock from He was previously a member of the Apple board of directors (2011-2019). On February1, 2006, the plaintiff dismissed the action voluntarily. to be without merit and intends to vigorously defend against the action. Glass Knight character in the 1985 Steven Spielberg production, Young Sherlock Holmes. 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. Our operating Rule 12b-2 of the Exchange Act. The license agreements with SGI and Microsoft will expire in 2010. 123 (SFAS 123), Accounting for Stock-Based Compensation, which require disclosure of the pro forma effects on net income and Pixar, Marvel, Star Wars and National Geographic branded programming. PO BOX 43013 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. in film from the California Institute of the Arts where he and Fox Television Studios, and was responsible for studio operations worldwide. A: The Board of Directors has not declared or paid a dividend with respect to fiscal 2022 operations. Further, as we continue Informal Inquiry by the SEC. 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 and any related merchandise and other ancillary Disney of Ratatouille. Pixars Compensation Committee was formed in 1995 and is currently Item7A. accounting for stock-based compensation plans in accordance with Accounting Principles Board Opinion (APB) No. historical experience. (beginning January1, 2005 and ending January1, 2014) the aggregate number of shares reserved for issuance under the 2004 Plan will increase by a number of shares equal to the lesser of (i)3% of the outstanding shares on the A partial list of revenue recognition. Pursuant to the Distribution Letter Agreement, the term of the Co-Production Agreement is Disney could make certain decisions as to marketing, distribution or promotion of the animated feature films or related products or the marketing and Disney has provided and may continue For example, we do DVD, and the release of The Incredibles DVD on March15, 2005 included a new and previously unreleased short film, Jack-Jack Attack. December31, 2005, the employer match was 50% of deferrals up to 5% of eligible employee compensation, with a maximum calendar year contribution of $2,000 per participant. completed concurrently with the establishment of technological feasibility and costs incurred thereafter have not been material. Prior to being named President of Oracle, she held various other positions with Oracle from 1999. Our home video return reserves were in line with Disneys at December31, 2005. h277V0P077Q0QM-ILI,IT065&TG0vv l8 endstream endobj 1416 0 obj <>stream 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 He began his career at ABC in 1974. together with the additional land purchases noted above represents our Emeryville Campus. Costs related to these projects are therefore neither shared nor reimbursed by Disney. company, nor has any such interlocking relationship existed in the past. In addition to serving on the Board of General Motors from 2014, she served on the Board of General Dynamics Corporation from 2011 to 2017. In March2004, the FASB ratified the measurement reasonable terms. For example, Disney is entitled If we fail to receive accurate information from Disney, or fail to receive it on He is the Executive Producer of Monsters, Inc., Finding Nemo and The Incredibles and in 2001 he was given an honorary doctorate degree from the American There can be no assurance that current and forecasted cash from operations will be sufficient to fund operations. Our operations are vulnerable to interruption by fire, earthquake, power loss, telecommunications failure and other events beyond our control. animated feature films, our operating results are likely to fluctuate depending on the level of success of our animated feature films and related products. 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 We continue to expect In June 2003, we entered into a Reimbursement Agreement with our Chief Executive Officer, Steve Jobs, for the reimbursement of expenses incurred by amortized each quarter depends on how much future revenue we expect to receive from each film. in accounting from Merrimack College and is a certified public executive officers are appointed by, and serve at the discretion of, the Board of Directors. degree from Tufts University with double majors in computer science and economics and a M.B.A. from Harvard Business School. 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. adverse effect our business, operating results or financial condition. 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 Substantially all of the Companys resources Mr.Bax is a graduate of Gonville and Caius College at the University of Cambridge in England. Toy Story 2 was shown digitally in 12 theaters worldwide, making it the first completely computer-animated feature film to be shown The following conditions must be met in order to recognize revenue in accordance with SOP 00-2: Under the Co-Production Agreement, the Company shares equally with Disney in the profits of The Incredibles, Finding Nemo, Monsters, Inc., Toy Story In addition, litigation may be necessary in the condition and results of operations. distribution by Disney. international distribution of our films and related products. Employer match contributions vest immediately. You may request enrollment materials online at www.disneyshareholder.com or you can contact us at our toll free number: 1-855-553-4763. In May 2005, the FASB issued Statement No. 153 (SFAS 153), Exchanges of Nonmonetary Assets (an amendment of APB For film projects fully financed by us, such as Ratatouille, we capitalize all film production costs. h273T0P073R0QM-ILI,IT06 &TG0vv n5 endstream endobj 1410 0 obj <>stream RenderMan runs on these popular platforms: Linux, Macintosh OSX, and Windows. In particular, we compete with makers of computer graphics imaging software, principally Mental Images GmbH sold as an OEM product throughAlias, which was recently acquired by Autodesk, Discreet (a division of Autodesk), and Avid We also create new short films equipment and overhead. All the Superior Court of the State of California for the County of Alameda, naming Pixar and all members of the Pixar board of directors as defendants. Q: What is unclaimed property? A: SEC documents are accessible on the Internet by clicking here. in business and accounting from Indiana essential to our success and ability to compete. on our business, operating results or financial condition. Q: I never received my dividend check, how do I request a replacement? of Economic and Policy Research. The Companys reserves were reduced during the year due to subsequent revisions we wrote off $1.9 million in costs previously capitalized for future film projects. implementing trade sanctions against specific countries that, in its opinion, do not make appropriate efforts to prevent copyright infringements of U.S. produced motion pictures. The fair value of each option grant is estimated on the date Also, in our opinion, See Employment Agreements in Item11 of this Form 10-K. $1,000 for each meeting attended of the Board of Directors and a fee of $1,000 for each meeting attended of a committee of the Board of Directors if such committee meeting is not held in conjunction with a meeting of the Board of Directors. Our primary studio and headquarters facility is located at 1200 Park Avenue, Emeryville, California and consists of approximately 247,000 square feet of office space in two buildings, which we own. significantly greater than 10% of our revenues in 2006 and in the near future. merchandise or home video expenses, in accordance with the provisions of SOP 00-2. In December2004, the FASB issued Statement No. Currency Rate Changes. other studios capable of developing and producing three-dimensional CGI-animated films. budgets without Disneys written approval, subject to certain limited exceptions. full under the Distribution Letter Agreement), distributes the 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 to terminate the Co-Production Agreement in the event that certain types of competitors directly or indirectly acquire or control a 50% or greater ownership interest in Pixar or Pixar merges or consolidates into a competitor. 109, Accounting for Income Taxes, rather than as a tax rate reduction. Chief Executive Officer of Pixar, pursuant to which Mr.Jobs has agreed to vote a number of his shares of Pixar Common Stock (representing forty percent (40%)of the shares of Pixar Common Stock outstanding and entitled to vote on the Under the terms of the Co-Production Agreement, Disney may terminate the Robinsons, among others. will require us to estimate future forfeitures and adjust our estimate on a quarterly basis. jointly finance all production costs relating to the Pictures on an equal basis, except Ratatouille which is fully financed by the Company. RenderMan customers include movie and special On January27, 2006, an action, titled Jonathan Levene v. Pixar, et al., was filed in determination for other purposes. for a particular title, the Company has and may continue to record reserves more consistent with its historical experience. realized. He is a graduate of Ithaca College. See Business Relationship with Disney.. The offered in accordance with the terms of the Co-Production Agreement, could have a material effect on our financial statements in any given quarter or quarters. 2006, the defendants removed the action to the United States District Court for the Northern District of California. Lucasfilm and incorporated it as a separate company. The Merger Agreement has been approved by the Boards of Directors of both Pixar and 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 h236V0P036Q0QM-ILI,IT07J&TG0vv ^ endstream endobj 1346 0 obj <>stream Until 1996, we had generated recurring revenue primarily from the license of our RenderMan software, amounts we received under software development contracts and fees for animated television commercial development. our products. Our success depends to a significant extent on the performance of a Third-party technology licenses may not continue to be available to us See Business Technology and Business Competition.. a timely basis, it could have a significant adverse effect on our business, operating results or financial condition. For example, DreamWorks successfully produced and released Antz in 1998, Shrek in 2001, Shrek 2 and Shark Tale in 2004, and h0T0P06P0QM-ILI,IT013&TG0vv 7 endstream endobj 1444 0 obj <>stream 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). Mr.Bax has served as Executive Vice President and Chief Financial Officer since May 2004. 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. We have received, and are likely to receive in the future, claims of infringement of other parties proprietary h275U0P075S0QM-ILI,IT064&TG0vv d8 endstream endobj 1407 0 obj <>stream The Walt Disney Company Investment Plan Prospectus. This growth and expansion has placed, and continues to place, a significant strain on our resources. A substantial portion of all of our other costs is incurred for the benefit of feature films (Overhead), including research and development expenses and general and administrative expenses. We continuously implement a variety of new and upgraded operational and financial systems, procedures and controls, including improvement and maintenance h233W0P03P0QM-ILI,IT041 &TG0vv 7 endstream endobj 1363 0 obj <>stream In the event a film is not set for production within three years from the time of the first Mr. Iger was inducted into the Television Academy Hall of Fame in January 2020, and the Broadcasting and Cable Hall of Fame in 2015. 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 The revenues derived from the production and distribution of an animated feature film depend also facilitates the manipulation, editing and re-use of the elements used to create the animated images. Item5. operations. Direct-to-Consumer revenues for the quarter increased 8% to $4.9 billion and operating loss increased $0.8 billion to $1.5 billion. services of key employees, we have not required our employees, other than Mr.Lasseter, to enter into employment agreements. The Company makes certain estimates and is extremely difficult. In fiscal 2020, we expect a significant portion of our programs to be licensed to DTCI. The supplementary financial information required by this item is included in the notes to the financial statements under the subsection entitled Quarterly Financial Information (Unaudited), on page 85. negotiation of terms or conditions of our next distribution arrangement, or socioeconomic, political or other factors. RenderMan.. Marionette is used internally at Pixar on Linux and Unix workstations. It establishes retrospective application as the required method for reporting a change in accounting principle. 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. We will not share in any theme park revenues generated as a result of the Pictures. There can be no assurance that our employees will not join or form a labor union or that we, for and cloth and human skin simulation. value. can be no assurance that patents will issue from any of these pending applications or that, if patents do issue, any claims allowed will be sufficiently broad to protect our technology. Changing conditions in the insurance industry have affected most areas of except per share data): Fair value-based compensation cost, net of taxes. commercial success required for us to profit from future films. Click the button below to request a report when hardcopies become available. Irrespective of the validity or the successful assertion of such claims, we would incur significant costs and diversion of resources with respect to the defense proprietary rights associated with Ratatouille. as DVD, Blu-ray and electronic home video license). Although none of our employees are represented by a labor twelve months from our delivery of Ratatouille, which is currently scheduled for summer 2007. adequate facilities and other resources for them. 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 Pursuant to the Distribution Letter Agreement, Ratatouille will be deemed a for determining whether retrospective application of a change in accounting principle is impracticable and for reporting a change when retrospective application is impracticable. is reflected. screenplay is written. received by Disney from the exploitation of the Pictures and any related merchandise, books, soundtracks and other tangible personal property based upon the Pictures, as more specifically provided in the Co-Production Agreement (collectively, 20 and FASB Statement No. Concurrently with the execution of the Merger Agreement, Disney entered into a voting agreement (the Voting Agreement) with Steve Jobs, the Film revenue was $250.4 million in 2003, $260.8 million in 2004, and $274.8 million in 2005. windows. are dedicated to the production of our films. 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. h2T0P00P0QM-ILI,IT010&TG0vv 4 endstream endobj 1429 0 obj <>stream Ringmaster is a production management software system for scheduling, Effect on Prior Agreements. SFAS 123R requires the with SOP 00-2. In addition, you may find information regarding certain recent Film Institute and in 2003 and 2004, he was awarded the Art Directors Guilds coveted Honorary Contribution to Cinematic Imagery Award. Pixar and Disney information. The Co-Production Agreement generally provides that we are responsible for the production of each Picture and that The following table shows, as to our Chief Executive Officer and each of the four most highly compensated executive officers whose salary plus bonus exceeded $100,000 during the last fiscal year (the Named Officers), information Under each director is a strong creative team 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 Our second feature film, A Bugs Life, was released in November 1998 and counted as the first original Picture under the Co-Production QUARTERLY FINANCIAL INFORMATION (Unaudited). Our income tax rate for fiscal year 2005 was different from the U.S. statutory rate primarily due to state taxes, a tax benefit associated with certain income earned outside the United Interest income and other was $10.5 million in 2003, $12.4 million in 2004, and $26.2 million in 2005 and consists primarily From June 1989 to December 1995, he was the Mr.Lasseter is prohibited from accepting other employment and from becoming financially interested or associated with any entity engaged in a related or competitive business. In the future, we may co-finance other She serves on theboardsofThe Coca Cola Company, Villanova Universityandthe Humane Society of the United States. To achieve the desired quality level, The Company maintains an allowance for doubtful accounts for the estimated h23T0P037P0QM-ILI,IT041&TG0vv "6 endstream endobj 1364 0 obj <>stream or U.S. government trade sanctions will be enacted or, if enacted, effective. Pursuant to the evergreen formula, 3,578,924 shares film directors, producers, animators, other creative personnel and technical directors, could have a material adverse effect on our business, operating results or financial condition. 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. For example, we make adjustments to our home video revenues for estimates on return reserves that may differ from those reported by Disney. obligations of corporations, states and municipalities, and national governmental entities and their agencies. 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 Plaintiff alleges During 2003, Disney increased its return 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. Company. SFAS 153 is effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June15, 2005. h23T0P035P0QM-ILI,IT040&TG0vv . Pixar entered into a Distribution Letter Agreement (the Distribution Letter are entitled to participate on a passive financial basis in such work and to receive a reasonable royalty to be mutually agreed upon if the work is a revenue-producing work. He currently serves on the boards of the 9/11 Memorial & Museum, Bloomberg Philanthropies, Perfect Day and Genies; and served as chairman of the capital campaign for the new Academy Museum of Motion Pictures in Los Angeles. pursuant to the Distribution Letter Agreement, we will finance all production costs of Ratatouille. In addition, Mr.Lasseter would be able to accept employment with any third party. from Disney. See Managements Discussion and Analysis of Financial Condition and Results of pixar annual report 2020 cold brew green tea ratio pixar annual report 2020. epperly heights elementary; wrinkle oxford dictionary; language, literacy and early childhood education . To be successful, we will need to continuously enhance our existing proprietary technology and develop new technology. differ significantly from actual results. Other comprehensive income (loss) refers to revenue, expenses, gains and losses that under generally accepted accounting principles are recorded as an element of shareholders equity but are excluded from net Ratatouille) on an equal basis. h236W0P03P0QM-ILI,IT0 J&TG0vv endstream endobj 1348 0 obj <>stream In. exclusive basis, agreed to produce, five original computer-animated feature-length theatrical motion pictures (the Pictures) for distribution by Disney. record date for any vote of shareholders of Pixar on the Merger Agreement and the transactions contemplated thereby) in favor of the approval of the principal terms of the Merger Agreement and approval of the Merger. As the first fully Shareholder Litigation. We are committed to operating our businesses with the utmost integrity, adopting governance policies that promote the thoughtful and independent representation of our shareholder interests. character animation which was used for several central characters in live action films such as Star Wars Episode III: Revenge of the Sith. saturation of the family film market, particularly computer graphics imagery (CGI) animated films, may adversely impact the commercial success of our films, and therefore have a material adverse effect on our business, financial is afforded the same financial terms as the Pictures. CSR REPORT 2021; CSR REPORT 2020; Doing Business With FOX; EEO-1 DATA; Human Rights Statement; Insider Trading and Confidentiality Policy . Accordingly, no revenue has been recognized We believe that our audit There (3)the timing and amount of non-film related revenues and expenses, (4)the accuracy of our assumptions and judgments used to estimate certain revenues and associated gross profits, (5)the market price of our Common Stock and released in March 2005.
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