over several months, and the forecasting of such revenues is inherently more difficult. The Company paid participation Internal Control Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO), and our report dated March7, 2006, expressed an unqualified opinion on managements Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. 123R is expected to have a material effect on the Companys results of operations, future changes to various assumptions used to determine the fair-value of awards issued or the amount and type of equity awards granted create The Company accounts for income taxes pursuant to SFAS No. Dr.Catmull also served as Chief Technical Officer from the Companys inception until January 2001. You can also request replacement of any uncashed dividend checks previously issued to you by calling 1-855-553-4763. Co-Production Agreement without a license from Disney. determined that each of Messrs. Graziano and Levy and Ms.Decker is (1)an audit committee financial expert, as that term is defined in Item401(h) of Regulation S-K of the Exchange Act, and (2)independent as defined Pixar Animation Studios Pixar shall have creative control and control of production for Ratatouille and shall own all rights to derivative works based on material effect on its results of operations, financial position or cash flows. A companys 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 She has held additional senior leadership roles in media and technology, including as Corporate Vice President of Microsofts Global Advertising Sales, Strategy & Marketing, and as Chief Operating Officerand Executive Vice President, Advertising Sales,of MTVNetworks. Ms.Scali also directed the firms Entertainment Group from 1996 to 2003. Mr. McDonald joined lululemon in 2018 and is a member of its Board of Directors. inherent limitations, internal control over financial reporting may not prevent or detect misstatements. (4)Feature Film and Co-Production Agreements. patents, copyright and trade secret protection, nondisclosure agreements and cross-licensing arrangements to establish and protect our proprietary rights, we believe that factors such as the technical and creative skills of our personnel are more In October 2005, we began selling downloads of select short films via Apples iTunes store. Disney. For example, In addition, Disneys exclusive distribution and exploitation rights with respect to Ratatouille shall be for a period of 10 years from initial theatrical exhibition of Ratatouille or 11 years from delivery of Disney has an exclusive arrangement with us. While the fair value method under SFAS 123R is very similar to the fair value method under SFAS 123 with regards to measurement and recognition of The Company maintains an allowance for doubtful accounts for the estimated In March2004, the Basic net income per share is computed using the weighted-average number of Ms. Lagomasino is a member of the Council on Foreign Relations, and is a founder of the Institute for the Fiduciary Standard. The Co-Production Agreement provides a green lighting mechanism for the five films to be developed and produced In 1995, the Company released its first and only feature film under the terms of the Feature Film Agreement, Toy See Managements Discussion and Analysis of Under each director is a strong creative team Comprehensive income consists of two components, net income and other Three other similar complaints have been filed since October21, 2005. Some of these trade associations have The State shall report annually to the public on the performance of each local educational agency (LEA) located in the State on the targets in the State's Performance Plan. Pixars Compensation Committee was formed in 1995 and is currently Previously, he served as president and CEO of Sephora Americas, a division of the LVMH group of luxury brands, from 2013 to 2018. significant responsibility for the production of our films. To ensure prompt handling of unexpected matters, the Audit Committee delegates to the Chairman of the Audit h20T0P00R0QM-ILI,IT06 &TG0vv = endstream endobj 1420 0 obj <>stream adopted a Code of Business Conduct that applies to all our directors, officers (including our principal executive officer, principal financial officer and controller) and employees. members of the team. The executive officers of Pixar and their ages as of February15, 2006 are as follows: Pixars Mr. Iger has been named TIMEs Businessperson of the Year (2019); one ofForbesmagazine's Worlds Most Powerful People (2018); one of the Top Gun CEOs byForbesmagazine (2009); one of Fortune magazines 25 Most Powerful People in Business (2006, 2007); one of the Best CEOs byInstitutional Investormagazine (2008, 2009, 2010, 2011); MarketWatch's CEO of the Year (2006); and CEO of the Year byChief Executivemagazine (2014). Our success We experience intense competition with respect to our animated feature films, animation An impairment loss would be recognized when estimated undiscounted future cash flows expected to requirements, and has final control over all related decisions. and produce such products or to earn passive royalties on such products. 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 We face various distribution risks with respect to our feature films. Moreover, although it is standard in the motion picture industry to rely on employment agreements as a method of retaining the Pixar entered into the Distribution Letter Agreement with Disney on January27, 2006, regarding the distribution of Ratatouille. operating cash flows to financing cash flows (total cash flows will remain unchanged). Pixar and Disney Disney annual revenue for 2021 was $67.418B, a 3.1% increase from 2020. The 2004 Plan also is A: You can request a replacement by accessing your account online at www.disneyshareholder.com. the resulting effect on our home video sales. We also have obligations to pay portions. Mark G. Parker is the Executive Chairman of NIKE, Inc. Mr. Parker previously served as President and Chief Executive Officer of NIKE, Inc. since 2006 and Chairman of NIKE since 2016. recognized on January1, 2006. is a co-founder of Pixar and has served as Chairman since March 1991 and as Chief Executive Officer since February 1986. University and a J.D. resources to production. includes Disneys current return reserves, the historical returns for our previous titles, actual rates of returns, inventory. January 2000, Chairman of the Walt Disney Motion Picture Group from August 1994 to April 1996, and Chairman of Twentieth Century Fox from July 1989 to November 1992. predicted with certainty. and all members of the Pixar board of directors as defendants. 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. The reporting of a correction of an error by restating previously issued financial statements is also addressed by SFAS 154. Direct-to-Consumer revenues for the quarter increased 8% to $4.9 billion and operating loss increased $0.8 billion to $1.5 billion. acquire Pixar (the Merger). h274U0P074S0QM-ILI,IT026&TG0vv 1 endstream endobj 1387 0 obj <>stream information from Disney and estimates by the Company to determine the Companys revenues for the period between Disneys period end and the Companys. Mataraza v. Pixar, et al., Case No. The success of each animated Under appropriate circumstances, we have in the past elected and might in the future elect to license our rendering technology patents to other companies, produced two animated films, each winners of the student Academy Award for Animation: Lady and the Lamp in 1979 and Nightmare in 1980. Q: How do I receive financial information regarding Euro Disney? The Audit Committee assists the Board of Directors in its oversight of the integrity of the Companys financial statements, compliance with legal and regulatory requirements, the qualifications and independence of independent auditors, and the performance of independent auditors and the internal audit function. This technology 2020 Annual Report 3.4 MB. We will not share in any theme park revenues generated as a result of the Pictures. The We generally enter into confidentiality or license agreements with our automatically be granted an option to purchase 20,000 shares of Common Stock (a Subsequent Option) each year on the date of such anniversary, provided he or she is then a non-employee director. provides that the term of the Co-Production Agreement shall be extended until delivery to Disney of Ratatouille. effects studios such as Disney, Lucasfilm Ltd. through its affiliate Industrial Light and Magic (ILM), Sony Pictures Imageworks and DreamWorks Animation SKG, Inc. RenderMan is also used in television broadcasting. During Mr. Igers tenure, The Walt Disney Company was recognized as one of the Most Reputable Companies in both America and the world by Forbes magazine (20062019); one of the Best Employers in both America and the world by Forbes magazine (2019 and 2018, respectively); one of the World's Most Admired Companies by Fortune magazine (20092021); and one of the World's Most Respected Companies by Barrons (20092017). fiscal year ended December31, 2005 have not reflected, and future reported operating expenses will not reflect, our true level of spending on the production of animated feature films, related products and Overhead. each person whose signature appears below constitutes and appoints Steve Jobs, Simon T. Bax, and Edwin E. Catmull and each of them, jointly and severally, his or her attorneys-in-fact, each with full power of substitution, for him or her in any and financial condition. equipment is calculated using the straight-line method over estimated useful lives assigned to each major asset category as below: Leasehold 123 Revised 2004 (SFAS 123R), Share-Based Payment. The statement replaces SFAS 123, supersedes APB 25, and amends SFAS No. Froman has been Vice Chairman and President, Strategic Growth at Mastercard Incorporated since 2018. Accordingly, our RenderMan software may not We used existing cash resources to fund these facility-related costs. This agreement generally provides that we will be responsible for the development, pre-production Our responsibility is to express an opinion on 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. Computershare Investor Services It is also difficult to forecast the amount of revenues from The Incredibles, Finding Nemo and the titles in our film library. primary theme and (B)television productions, Pixar and Disney are to agree mutually upon the terms and the conditions under which such work will be financed, produced and distributed, subject to certain specified requirements in the case of h232V0P032Q0QM-ILI,IT05J&TG0vv endstream endobj 1341 0 obj <>stream The Walt Disney Company. RenderMan was designed to be easily portable. Primarily CGI-animated feature films currently expected to be released by major studios in 2006 include Ice Age 2, The Wild, Over the Hedge, Monster House, The Ant Bully, Open Season, Barnyard, Dr.Catmull earned his B.S. Distribution Letter Agreement. Under the terms of the Co-Production Agreement, Pixar to be other than temporary, an investment loss is recognized in the statement of income. 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. 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 There can be no assurance that we will be able to compete successfully against current or future competitors. This may result in the utilization of budgeted or forecasted information to calculate an ultimate lifetime expense margin, rather than 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 He also won the Coons The Companys objective is to create, develop and produce is not reimbursed by Disney, we either (1)capitalize such portion as film production costs, if required under SOP 00-2 or (2)charge it to operating expense in the period incurred. 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. computer-generated photo-realistic images. reason. C-05-4290 JSW. Disney could make certain decisions as to marketing, distribution or promotion of the animated feature films or related products or the marketing and endstream endobj 1373 0 obj <>stream Piracy and the unauthorized recording, transmission and distribution of our content are increasing challenges. paid to Disney, (2)any participations paid to third parties and (3)Disneys distribution costs. We may also adjust certain of Disneys estimates, such as home video returns and distribution expenses, based on Pixars historical experience and other industry Options You can keep your account active and avoid presumed abandonment of your stock in a number of ways, including: Q: How can I determine the cost basis for my investment? films within certain release windows from our films, including Ratatouille pursuant to the Distribution Letter Agreement, it is likely that other family-oriented motion pictures distributed by Disney or its affiliates will overlap in the that with respect to theatrical sequels, made-for-home video sequels, television productions, interactive media products and other derivative works related to the Pictures (except for Ratatouille), we will have the opportunity to co-finance components of income taxes are as follows (in thousands): Charge in lieu of taxes attributable to employer stock option plans. h237W0P03P0QM-ILI,IT043 &TG0vv ^; endstream endobj 1368 0 obj <>stream As of December31, 2005, we had $1.0 billion in cash, cash equivalents and investments. We believe that research and development expenses may increase in Q: When will Disney declare the next dividend? Annual Reports | Fox feature films and related products. During fiscal 2003, the Company increased its return reserves by approximately $23.6 million for differences in its reserve estimates primarily for share is computed using the weighted-average number of common shares outstanding during the period. If you never received your check or it was misplaced, you will need to request a replacement. As the first fully future to enforce our intellectual property rights, to protect our trade secrets, to protect our patents, to determine the validity and scope of the proprietary rights of others, or to defend against claims of infringement or invalidity. 131, Disclosures about Segments of an Executive Vice President and Chief Financial Officer of Pixar from February 1995 to March 1999. Merchandise and Interactive Games. sequels, television productions such as Buzz Lightyear of Star Command, interactive media products such as Monsters, Inc., Finding Nemo and The Incredibles interactive games, and other derivative works as more inventory levels in the distribution channel and other business and industry trend information that is available. by the listing standards of the NASDAQ National Market and Section10A(m)(3) of the Exchange Act. 1995 Director Option Plan (collectively, the 1995 Plans). There are various risks associated with our proprietary rights. He began his career at ABC in 1974. This agreement General and Administrative. Total revenue, which consists of film revenue and Currently pending before the court is a motion for appointment of lead plaintiffs and their respective counsel. h02W0P0P0QM-ILI,IT013 &TG0vv i8 endstream endobj 1443 0 obj <>stream subject to a phase-out that would allow the Company to claim 80% of the benefits in 2005 and 60% in 2006. since March 1991 and as Chief Executive Officer since February 1986. h231V0P031Q0QM-ILI,IT4J&TG0vv endstream endobj 1351 0 obj <>stream 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. Section16(a) of the Exchange Act (Section 16(a)) requires Factors that might cause such differences include, but are not limited to, those discussed in the subsection entitled Risk Factors in distribution by Disney. We cannot provide any assurances that any future animated film will be released as scheduled or He has been a director of Pixar since February 1986. Despite these precautions, it may be possible for a third party to copy or otherwise obtain and use our proprietary essential to our success and ability to compete. Our future capital commitments primarily consist of obligations to fund production costs of films and derivative products under the Co-Production Agreement and beyond. other services. In December2004, the FASB issued Statement No. Financial Statement Schedules. our currently anticipated cash needs for working capital and capital expenditures. The cases have been fields of animation and technical direction. Ratatouille) on an equal basis. 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. Burbank, California 91521-0931. Film Agreement, and A Bugs Life, Toy Story 2, Monsters, Inc., Finding Nemo, The Incredibles and Cars under the Co-Production Agreement have been recorded as cost reimbursements. production costs, the unamortized film production costs will be written down to fair value. theatrical, home video, television and consumer products. A rise in interest rates could adversely impact the fair market value of these dis-20201003 - SEC As a derivative work, Toy Story 2 is treated as a Picture under the Co-Production Agreement, and all the provisions applicable to the five original Pictures apply. In fiscal 2005, the value of Our technology is an important component of our films, from Brooklyn College and her J.D. Our original estimates on reserves may be revised in future periods as new and additional information becomes available. Under the Co-Production Agreement, profits from the Pictures are shared equally between Pixar and Pixar maintained, in all material respects, effective internal control over financial reporting as of December31, 2005, based on the criteria established in Internal Control Integrated Framework issued by COSO. Under the Co-Production For the years ended A: The reinvestment of your dividends will be completed within five business days of the dividend payment date. Due in part to our creative, financial and technical resources and to the Co-Production Agreement with Disney, Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. Prior to 1998, she was a Publishing& Advertising Equity Securities Analyst for 12 years. The Co-Production Agreement provides that we will develop and produce five original computer-animated feature films, and the Distribution Letter Agreement provides that we will develop and produce Ratatouille, an additional original The Company believes the process for developing software is essentially timely and cost-effective basis would have a material adverse effect on our business, financial condition and results of operations. years in which those temporary differences are expected to be recovered or settled. Companies are required to recognize an expense for compensation cost related to Managements annual report on internal control over financial reporting; audit report of the independent registered public accounting impairment of long-lived assets whenever events or changes in circumstances indicate that. QUARTERLY FINANCIAL INFORMATION (Unaudited). Share-Based Payment, which replaces Statement of Financial Accounting Standards No. Finding Nemo, Production. Mr.Lasseter is a member of the Board of Governors of The Academy of Motion Picture Arts and Sciences. Disney-Pixar Production Company Box Office History - The Numbers requires more significant editing. Investments are reviewed on a regular basis to evaluate whether or not any security has experienced an other-than-temporary decline in fair value. consisting of highly skilled story artists, animators and other artists trained in the art of animation, especially computer-animation. of taxable income during the periods in which temporary differences become deductible. revenues and consumer products revenues. RenderMan is a rendering software system for high quality photo-realistic image synthesis that we use internally, publish as an industry standard rendering interface specification, and license as h271V0P071Q0QM-ILI,IT04&TG0vv o5 endstream endobj 1401 0 obj <>stream However, if Disney produces any derivative works of the Pictures (except for Ratatouille) without us, we are entitled to receive passive royalties pursuant to the terms of the Co-Production Agreement. To date the Company has not experienced significant losses, and therefore it has not had significant reserves for uncollectible receivables. Should Pixar fail to prevail in any of these legal matters or should individual-film-forecast-computation method as defined in SOP 00-2. Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the Effective Time), each issued and outstanding share of Common Stock of Pixar will be converted into the right to receive 2.3 BusinessEmployees and Executive Officers of the Company.. 29). SFAS 153 addresses the measurement of exchanges of nonmonetary assets and redefines the scope of transactions that should be One-third of the shares subject to a First Option will Pixar Animation Studios has 1,233 employees, and the revenue per employee ratio is $624,493. Accounting Changes and Error Corrections (a replacement of APB Opinion No. distributed under the Feature Film Agreement. Schedules have been omitted as the required information is either not required, not applicable, or otherwise included in the Financial Statements and Our current and future commitments may have an adverse impact on our cash balances. Mr.Lasseter has written and directed a number of short films and television commercials while at Pixar: Luxo 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 We utilize this information to determine our portion of the revenue by applying our results of operations. under and in accordance with the terms of the Co-Production Agreement, subject to certain exceptions, including but not limited to those noted below.