Our Sports. No. resources to production. expect, forecast, predict, potential, continue, anticipates, expects, intends, plans, believes, seeks, The Distribution Letter Agreement If our Pixars Compensation Committee was formed in 1995 and is currently movie studios for the services of performing artists, and the services of other creative and technical personnel. Also, projections of any Other Matters. from the University of California at Los Angeles. Our revenues for Toy Story are governed by the terms of the Feature Film Agreement under which Disney fully financed the While customer acceptance of a film is initially measured by box office success, customer acceptance within each follow-on product included in the budgets for the Pictures under the Co-Production Agreement, and we share such costs equally with Disney under the Co-Production Agreement (except with respect to Ratatouille). You should carefully consider these factors before making an 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. h04U0P04S0QM-ILI,IT016&TG0vv k5 endstream endobj 1437 0 obj <>stream patents to other companies, some of which may compete with us. In addition, Pixar will finance all production costs and receive all gross receipts of Ratatouille after deduction of (1)a distribution fee paid to Disney, (2)any participations paid to third parties In addition, we compete and will continue to compete with other UNITED STATES SECURITIES AND EXCHANGE COMMISSION, ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d), For the fiscal year ended December31, Despite these precautions, it may be possible for a third party to copy or otherwise obtain and use our proprietary Our library titles contributed $60.6 million for fiscal 2003, resulting from merchandise sales, worldwide home video sales and worldwide The revenue from Disney consists primarily of film related revenues. There can be no assurance that we will be able to compete successfully against current or future competitors. The table below sets forth the amounts reimbursed by Disney for the following years (in thousands): For films in release, the Company expects to amortize, based on current estimates, approximately $4 Pixar shall have creative control and control of production for Ratatouille and shall own all rights to derivative works based on Ratatouille, except that Disney shall own theme park No member of the Compensation Committee is or was formerly an officer or an employee of Pixar. Additionally, we expect our operating expenses to continue to increase as a result of the growth of the This diversification of risk is consistent with its policy to safeguard principal and maintain liquidity. information by film category follows (in thousands): A summary of the valuations and qualifying accounts and reserves included in the balance sheets are as follows (in thousands): The Company recognizes revenue from its films under the Annual Reports 2019 Annual Report 7.4 MB. RenderMan runs on these popular platforms: Linux, Macintosh OSX, and Windows. 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 through set top boxes and other devices and through unlicensed broadcasts on free TV and the Internet. The estimate for return reserves, whether based on historical information or more current information from Disney, is inherently subjective and may differ significantly from Revenues for the quarter and year grew 9% and 23%, respectively. While the fair value method under SFAS 123R is very similar to the fair value method under SFAS 123 with regards to measurement and distribution by Disney. After Ratatouille, Disney may begin to release its movies during our release windows. We face various distribution risks with respect to our feature films. advance of the release of such films and products, and consequently, we experience a delay in the receipt of cash proceeds from such films and products until after Disney recovers such costs. The Investments are accounted for under Statement of Financial Accounting Standards (SFAS) No. SOP 00-2. It establishes retrospective application as the required method for reporting a change in accounting principle. Pursuant to the evergreen formula, 3,578,924 shares December9, 1985 and is a leading digital animation studio with the creative, technical and production capabilities to create animated feature films and related products. Finding Nemos international home video revenues, which resulted in a reduction of approximately $37.6 million in the Companys reserves. For example, SFAS 123 permits us to recognize forfeitures as they occur while SFAS 123R television licensing. Computershares contact information is located in the Transfer Agent section of this FAQ. Mr.Roth is a graduate of Boston University. Pursuant to the Distribution Letter Agreement, Ratatouille will be deemed a Picture Toy Story was developed, produced, and distributed. Disney and its affiliates distribute our products in foreign markets; therefore, we are not directly exposed to foreign currency rate fluctuations. ILM has a royalty-free, paid-up license to use our RenderMan software and to obtain at no cost all enhancements and upgrades thereto. presented. There can be no assurance that infringement or invalidity claims (or claims for indemnification resulting from infringement by the listing standards of the NASDAQ National Market and Section10A(m)(3) of the Exchange Act. You may also contact our transfer agent, Computershare Investor Services, to request a replacement check. January3, 2004,January1, 2005, and December31, 2005, the Company recognized depreciation and amortization expense of $7.8 million, $7.8 million and $10.2 million, respectively, of which, $7.4 million, $7.4 million, and $8.7 Disney generally Investor Relations - Stock Information, Events, Reports, Financial Q: If I am not enrolled in The Walt Disney Company Investment Plan, how will my dividend be paid? The Company contributed $1,015,000, $1,070,000 and $1,172,000 to the 401(k) 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. Pursuant to the Distribution Letter Agreement, Ratatouille will be deemed a Picture under and in accordance with the terms of the Co-Production thousands of sketches that represent the story to be animated. both Pixar and Disney and provides that in certain specified circumstances, Pixar must pay Disney a termination fee of $210,000,000 (generally in the event the Board of Directors of Pixar changes its recommendation that its shareholders approve the 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 competed directly with Finding Nemo for domestic theatrical market share during summer 2003. He officially joined the Disney senior management team in 1996 as Chairman of the Disney-owned ABC Group, and in 1999, was given the additional responsibility of President, Walt Disney International. also facilitates the manipulation, editing and re-use of the elements used to create the animated images. We entered the pay television market in March 2003 by licensing the pay television rights for Monsters, Inc. to Starz!/Encore. h05V0P05Q0QM-ILI,IT054 &TG0vv t2 endstream endobj 1455 0 obj <>stream things, an assessment of the effectiveness of our internal control over financial reporting as of the end of our fiscal year. These financial statements are the responsibility of the management of Pixar. h275V0P075Q0QM-ILI,IT064&TG0vv 0 endstream endobj 1406 0 obj <>stream The Company recognizes film revenue from the and per share amounts and stock prices related to Pixars Common Stock in the accompanying audited financial statements and notes thereto have been restated to reflect the stock split for all periods presented. Agreement, we will continue to finance the budget for Cars equally with Disney. We also compete, or may in the future compete, with the above firms with respect to animation products other than feature films. other studios capable of developing and producing three-dimensional CGI-animated films. Although the As of December31, 2005, the Company had 3,108,782 shares reserved and available for issuance under the 2004 Plan. Disney after Disney recovers a distribution fee and pre-agreed distribution costs. are entitled to share equally in all gross receipts of the Pictures (except for Ratatouille, as described below) that are remaining after deduction of (1)a distribution fee to Disney, (2)mutually agreed participations (payments to Finding Nemo, primarily attributable to domestic home video revenues and worldwide theatrical revenues. materially adversely affected. specifically provided in the Co-Production Agreement (collectively, Derivative Works). Get in touch with us now. assets and deferred tax liabilities are presented below (in thousands): In assessing the Business Proprietary Rights.. and cloth and human skin simulation. participations. was a shift in certain research and development resources to production. share-based compensation transactions using APB 25, and generally would require instead that such transactions be accounted for using a fair-value based method. In that role, Mr. Iger expanded and coordinated Disneys presence outside of the United States, establishing the blueprint for the companys international growth today. 2006. Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer or a non-accelerated filer. These services may include audit services, audit-related services, tax services and Item 12. Ms. Decker will be eligible for a Subsequent Option in fiscal 2007. Our success depends to a significant extent on the performance of a Some of the other movie studios with which we compete have significantly greater financial, marketing and other resources than we do. A: Dividend reinvestment is offered through The Walt Disney Company Investment Plan. During 2004, Disney increased its return reserves primarily for nullifies certain requirements of EITF Issue 03-1 and supersedes EITF Topic D-44, Recognition of Other-Than-Temporary Impairment upon the Planned Sale of a Security Whose Cost Exceeds Fair Value. The FSP addresses the Our latest short film, One Man Band, was nominated for an Academy Award and will accompany Cars in theaters in June several central characters in live action films such as Star Wars Episode III: Revenge of the Sith. While we have Item9. The first four original Pictures produced under the Co-Production Agreement were A Bugs Life, Monsters, Inc., Finding Nemo, and The derivative works such as theatrical sequels, direct-to-home-video sequels, interactive products and television productions. Disney), to develop and produce up to three computer-animated feature films (the Feature Film Agreement). Ms. Everson has been a Director of the Company since 2022. Opinion No. The home video releases of Pirates of the Caribbean: The Curse of the Black Pearl and Freaky Friday have also competed with Finding Nemo in the worldwide home video market. antitrust. Company extended its original relationship with Disney (under which Toy Story was created and produced) by entering into the Co-Production Agreement. 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 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 Non-employee directors are eligible to receive option grants pursuant to our 2004 Equity Incentive Plan (Equity Plan) which was approved by the shareholders and took effect in August 2004. Pixar also leases certain office space in Emeryville, California under a 3-year operating While we have enjoyed box office success with all of our feature animated films to date, there can be no assurance that similar levels of been consolidated before a single judge and are referred to as In re Pixar Securities Litigation. 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 h02U0P02S0QM-ILI,IT015&TG0vv %9 endstream endobj 1442 0 obj <>stream In the event a film is not set for production within three years from the time of the first Awards from The Academy of Motion Picture Arts and Sciences for his work, including an Oscar. At January1, 2005 and December31, 2005, net receivables from of taxable income during the periods in which temporary differences become deductible. Previously he was Vice President of the Computer Division of Lucasfilm, Ltd., where he managed four an opinion on the effectiveness of our internal controls), we could lose investor confidence in the accuracy and completeness of our financial reports, which may have an adverse effect on our stock price. fiscal periods do not always coincide with the Companys fiscal periods. States, a tax deduction related to income attributable to domestic production activities, and certain tax exempt investment income. She has held additional positions with eBay, McKinsey, Intel, AMD and Motorola, and previously served on the boards of Cisco, Splunk and Informatica. All investments were considered available-for-sale securities and consisted of the following (in thousands): The following tables summarize the fair value and gross unrealized losses related to available for materially from what is expressed or forecasted in any such forward-looking statements. Under the During 2005, our There can be no assurance, however, that under such circumstances a license would be available on reasonable terms or at all. Intellectual Property Transactions Group and served on the firms Executive, Partnership, Strategic Planning and Intake Committees. Dr.Catmull also served as Chief Technical Officer from the Companys inception until January 2001. return 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.