The Company also incorporates certain estimates, such as home video returns and distribution expenses, based on Pixars historical experience and other industry share is computed using the weighted-average number of common shares outstanding during the period. anticipated revenue from any individual feature film, we would be required to accelerate amortization of related film costs, resulting in lower gross margins. advances in graphics processing unit technology that may impinge on the market for software rendering solutions. Pixar has full creative control of the production of Cars and Ratatouille. obligations of corporations, states and municipalities, and national governmental entities and their agencies. be the Companys Chief Executive Officer (CEO). 52 weeks, respectively. recognition of stock-based compensation, management is currently evaluating the impact of several of the key differences between the two standards on our financial statements. To the extent that we do not capitalize (or Disney does not reimburse) the increases in expenses, our operating expenses will increase in fiscal year 2006. Q: I never received my dividend check, how do I request a replacement? submission to Disney, all costs of computer hardware and software used to develop the Pictures, and fair allocations of all costs and expenses we incur that are associated with or benefiting the Picture, including research and development, general Research and Feature film revenue and related products represented approximately 95% of our total revenue in fiscal years 2003, 2004, and 2005. [ 1] Date: Nov 24, 2021 of the Caribbean: Dead Man's Chest, Flicka, Zoom, How to Eat Fried Worms, Santa Clause 3, Eragon, and Charlotte's Web, among others. or U.S. government trade sanctions will be enacted or, if enacted, effective. Our contractual arrangement with Disney also presents other risks. Mr.Brittenham received a B.S. Consummation of the Merger is subject to several closing conditions, The Co-Production Agreement provides for certain dispute resolution procedures in the event of a production companies. Safra A. Catz has been a Chief Executive Officer of Oracle Corporation since 2014. Under the Co-Production Agreement, Pixar and Disney agreed to co-finance the The following table sets forth, for each of the Named Officers included in the Summary Compensation Table, the stock options can be no assurance that we will be able to compete successfully against current or future competitors. Securities and Exchange Commission (SEC), and the information is not necessarily indicative of beneficial ownership for any other purpose. Mr.Roth is a graduate of Boston University. our creative group is to create heartwarming stories with memorable characters utilizing the medium of computer animation. A lack of his availability may adversely impact the success and timing of our future films. Our Chief Executive Officer and Chairman, Steve Jobs, beneficially owned approximately 49.8% of our outstanding Common Stock as of February15, 2006. The 2004 Plan is intended to attract, motivate, The increase in 2005 compared to 2004 was primarily due to higher average cash, cash equivalent, and investment Our original estimates on reserves may be revised in future periods as new and additional information becomes available. deemed to be a more accurate reflection of Pixars participation. This could have an adverse impact on the commercial success required for us to Distribution Letter Agreement. The Company utilizes this information to determine its portion of the revenue by Intellectual Property Transactions Group and served on the firms Executive, Partnership, Strategic Planning and Intake Committees. value of these highly successful franchises. We believe that all of the transactions set forth above were made on terms 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 Animation for feature films has traditionally been created through hand-drawn cels, requiring hundreds of people working for two to three years. and the continued success of Finding Nemo from worldwide home video, worldwide television and consumer products licensing. # ' ),$' ( The information required by this item concerning production costs of the Pictures (except for Ratatouille). Companies are required to recognize an expense for compensation cost related to Energy. Pursuant to the The chief operating decision-maker is considered to 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. were added to the shares reserved for issuance on January1, 2006. In November 2004, we released The Incredibles, our sixth animated feature film, which counts as the fourth original Picture under the Co-Production Agreement. If our character animation which was used for several central characters in live action films such as Star Wars Episode III: Revenge of the Sith. Once the film has been green lit, we have final control over the production of the Picture. This summary is qualified in all respects by such Sales and marketing expenses remained Period-to-period comparisons of our results of operations may not be Mr.Sonsini received A.B. We believe that the popularity endstream endobj 1333 0 obj <>stream 115 are determined This assessment must include disclosure of any material weaknesses in our internal control over financial reporting This may result in the utilization of budgeted or forecasted information to calculate an ultimate lifetime expense margin, rather than actual costs incurred if it is connection with the Employment Agreement, Mr.Lasseter was granted an option to purchase 2,000,000 shares (split adjusted) of our Common Stock at the The following table reflects pro forma net income and net income per share had the Company elected to adopt the fair value-based method (in thousands, ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 . Disneys exceptional entertainment experiences, widely diverse content, and unique skill in managing businesses in an integrated manner led to strong results. Postal Service. 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 dates, audience acceptance, and exhibition outlets. If declines in the value of investments accounted for under SFAS No. December 31, 2005, respectively, Total liabilities and shareholders equity, See accompanying notes 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. See Managements Discussion and Analysis of Financial Condition and Results of Enjoy the preliminary information and for a more detailed analysis, buy the financial report! Our post-production is simpler than post-production in a live-action film, which 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. The ultimate realization of deferred tax assets is dependent upon the generation Although none of our employees are represented by a labor Computershares contact information is located in the Transfer Agent section of this FAQ. The Company entered into a Distribution Letter Agreement (the Distribution Letter In November 2002, we purchased approximately 2.24 acres of land adjacent to our primary facility for $9.4 million, for future expansion. Lasseter-directed Pixar short, Knick Knack, produced in 1989, accompanied Finding Nemo in theaters. With respect to the difficulty of forecasting the timing of revenues, Disney Forecasting our operating expenses certain purposes, will not be required to become a union signatory. The estimate for return reserves, whether based on historical information or more current information from Disney, is inherently subjective and may The Company believes that the adoption of SFAS 153 will not have a summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. Financial Condition and Results of Operations Liquidity and Capital Resources in Item7 of this Form 10-K. To date, we have chosen to use our existing cash resources to fund film production costs and construction costs. to financial statements. Although the In fiscal 2005, the value of During fiscal 2005, the Company increased its return reserves by approximately $8.3 million primarily for differences in Payments by us to SHAREHOLDERS EQUITY AND COMPREHENSIVE INCOME, Exercise of stock options, including tax benefit, Other comprehensive loss (net of tax benefit of $ 1,177), Other comprehensive loss (net of tax benefit of $ 1,630), Other comprehensive loss (net of tax benefit of $ 1,090). Our second feature film, A Bugs Life, was released in November 1998 and counted as the first original Picture under the Co-Production companies which intend to produce computer-animated feature films or other products. h24T0P04R0QM-ILI,IT0 &TG0vv A endstream endobj 1425 0 obj <>stream For example, in the past, our theatrical revenues have been adjusted for our estimated reserves on potential uncollectible amounts to be received from theatrical exhibitors. Our prospects must be considered in light of the risks, expenses and difficulties frequently encountered by companies in the early stages of a business enterprise, quality animated films and related products, such as video products, toys, interactive games and other merchandise. individual-film-forecast-computation method as defined in SOP 00-2. There can be no assurance that our employees will not join or form a labor union or that we, for 131, Disclosures about Segments of an We are currently in various stages of development and production on a number of original Ms.Scali is also an accomplished performer, songwriter and recording artist. to create a motion sequence. comprehensive income (loss). The Contribution to Cinematic Imagery Award is voted from time to time to an individual whose body of work in the film business prevalence of piracy, including in the United States, because such advances simplify the creation, transmission and sharing of high quality unauthorized copies of motion pictures in theatrical release, on videotapes and DVDs, from pay-per-view h276U0P076S0QM-ILI,IT027&TG0vv !9 endstream endobj 1397 0 obj <>stream There can be no assurance that the steps we take will prevent misappropriation of our technology or that our confidentiality or license agreements will be enforceable. In accordance with SFAS No. In 2006, our revenue, operating results, and earnings per share will be largely dependent upon (1)the timing and amount of worldwide revenues and After extensive research and analysis, Zippia's data science team found the following key financial metrics. See Business Employees and Executive Officers of the Company.. With respect to the Pictures, we make certain estimates and judgments of our future gross revenues to be received for each film based on information received from Disney and on our knowledge of the industry. affiliates from releasing animated films or live action family 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 Physical Effects, Inc. (PEI) technology to a third party. estimates, is scheduled for, scheduled, and variations of such words and similar expressions. Company will realize the benefits of its deferred tax assets, and therefore no valuation allowance against those assets has been provided. Incredibles. proceedings and claims that arise in the ordinary course of business. The Director of Public Health, Kate Blackburn, is required to produce an annual report each . The complaint asserts a class period from January18, 2005 to June30, 2005. Creative development is a collaborative process in which the story and its characters are created and developed. Ghibli as well as numerous other independent motion picture production companies. Pixar Animation Studios revenue is $770.0M annually. Finally, Ringmaster Q: Can the state take my shares if I hold a certificate? After property has been transferred to the state as abandoned property, shareholders must directly contact the state in order to reclaim their property. See Note 4 of proposed merger. values of the elements. In June 2003, we entered into a Reimbursement Agreement with our Chief Executive Officer, Steve Jobs, for the reimbursement of expenses incurred by In particular, we compete with makers of computer graphics imaging software, principally Mental The option vests on an equal monthly basis over the ten-year term of the agreement, except for options that vest on the last month will vest on the penultimate month of this ten-year period. During fiscal 2003, the Company increased its return reserves by approximately $23.6 million for differences in its reserve estimates primarily for 6, Elements of We believe that our audits provide a reasonable basis for our opinion. we cannot provide any assurances that future distribution agreements, if any, will provide us with our current level of risk minimization related to the financing of marketing and distribution expenses. The AJCA replaced the ETI exclusion with a deduction for qualifying domestic manufacturing activities, which is phased-in beginning in 2005. If we are unable to develop enhancements to our existing technologies or new technologies as required, or if the costs associated with developing those technologies continue to increase, our business, operating studio as we ramp up to meet the needs of multiple films in production. Currency Rate Changes. beyond our control. See Risk Factors Our success depends on certain key employees., The success of each animated film developed and produced by us depends in large part upon our ability to develop and produce compelling stories and feature film, which counts as the second original Picture under the Co-Production Agreement. Shareholder Litigation. Additionally, Finding Nemos domestic home video return reserves, and to a lesser extent Monsters, Inc. home video return reserves and Finding Nemos international home video reserves. Jr. (1986 Academy Award nominee), Share-Based Payment, which replaces Statement of Financial Accounting Standards No. Pixar and Disney share equally in the production costs of the Pictures, except for Ratatouille, which Pixar is financing 100%. For example, SFAS 123 permits us to recognize forfeitures as they occur while SFAS 123R forecasted. 86, Accounting for the Costs of Computer Software to be Sold, However, because we anticipate financing 100% of the production costs of our future films, we expect to bear all of the financial risks associated with a future films production costs. animated feature films including Cars, which is being directed by John Lasseter, the Director of Toy Story, A Bugs Life, and Toy Story 2 and Executive Producer for Monsters, Inc., Finding Nemo and The Although Disney provides the Company with the most current, NOTES TO FINANCIAL STATEMENTS (Continued). 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 . Incredibles. 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. reason. During Mr. Igers years with ABC, he obtained hands-on experience in every aspect of the television businessincluding news, sports, and entertainmentas well as in program acquisition, rights negotiations, and business affairs. In particular, we are dependent upon the services of Steve Jobs, John Lasseter, Ed Although none of our employees are with the Saturday nearest to December31. three-dimensional CGI-animated films. In addition, as additional entrants emerge in Facility Related Capital Expenditures. technical and managerial personnel. In addition, Mr.Roth ran Caravan Pictures from 1992 to 1994. 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. passive royalties on such products. h00U0P00S0QM-ILI,IT014&TG0vv 1 endstream endobj 1432 0 obj <>stream Those standards require that we Business interruptions could adversely affect our operations. our currently anticipated cash needs for working capital and capital expenditures. The Our investments have increased from $473.6 million at January 3, 2004 to $826.1 million at January 1, 2005 to $1.0 billion at December31, released in March 2005. The license agreements with SGI and Microsoft will expire in 2010. to be without merit and intends to vigorously defend against the action. Accordingly, no revenue has been recognized 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. If you do not have your historical statements, please contact our transfer agent, Computershare Investor Services, for assistance. endstream endobj 1435 0 obj <>stream Additionally, we adjusted our estimates on expense margins for Finding Nemo Our cost of revenue as a percentage of revenue may vary for any given period due to changes in the mix of film revenue as the gross profit varies by film, as well as for revisions to estimates on revenue to be Gross receipts include all revenues or other consideration Enforcing our proprietary rights may require litigation. Wiltshire Council has published it's annual Director of Public Health Report for 2020 to 2021, focusing this year's report on the impact of COVID-19 on Wiltshire communities, following the events and challenges of the past year. We experience intense competition with respect to our animated feature films, animation All Toy Story capitalized film costs were fully amortized as of December9, 1985 and is a leading digital animation studio with the creative, technical and production capabilities to create animated feature films and related products. Agreement) dated as of January27, 2006 with Disney regarding the distribution of a feature length animated film currently entitled Ratatouille. We have also engaged the law firm of Wilson Sonsini Goodrich& Rosati (WSGR) to handle certain legal matters. Financial Instruments and Concentration of Credit Risk. The contractual maturities of available-for-sale securities as of (Annual sales and employees) What industry is the company in? We have been selling our RenderMan software for nearly eighteen years. Split. from the University of California, Los Angeles. Mr.Sonsini has served as a director of Pixar since April 1995 and served as Secretary from April 1995 to October 1995. Future minimum lease payments under non-cancelable operating leases (with initial or remaining lease terms in excess of one year) as of December31, Production costs are defined in the We continue to expect h0T0P05P0QM-ILI,IT050&TG0vv 4 endstream endobj 1453 0 obj <>stream We capitalize our share of direct film production costs in accordance with The following selected financial data is derived from our financial statements. to provide protection of our technology may make it easier for our competitors to offer technology equivalent to or superior to our technology. In 2003, Finding Nemo became the best selling home Moreover, we cannot provide any assurances that we will be successful in obtaining future financing, or even if such financing is available, Distribution costs for the Pictures (except for Ratatouille) are work, including an Oscar. exploitation rights of each Picture, all characters and story elements of each Picture and all related products we develop under the Co-Production Agreement (except for Ratatouille which is subject to the terms and conditions of the The estimate for return reserves, whether based on historical information or more current information from Disney, is inherently subjective and may differ significantly from Certain Investments. In November 2005, the FASB issued FASB Staff Position FAS 115-1 and FAS 124-1, The Meaning of Other-Than-Temporary Impairment and Its Application to Certain Investments (the FSP). of taxable income during the periods in which temporary differences become deductible. We have only produced and released six feature films to date and have The Company has also Nonetheless. As updated information becomes available from Disney on a more timely basis, it may result in a change assets and deferred tax liabilities are presented below (in thousands): In assessing the Number of SecuritiesUnderlying UnexercisedOptions at, In March 2001, we entered into an employment Software Publishers. maturity of 90 days or less to be cash equivalents. director of Cars, our next feature film. On January27, 2006, an action, titled Jonathan Levene v. Pixar, et al., was filed in the Superior Court of the State of California for the County of Alameda, naming Pixar digitally. Pixar's headquarters is located in Emeryville, California, USA 94608. Additionally, we received updated information from owned. income is recorded using an effective interest rate with the associated premium or discount amortized to interest income. the terms of the Co-Production Agreement and Distribution Letter Agreement, Disney is required to market and distribute our films in the same manner as its premiere animated films, and Disney is required to consult with us with respect to all major things, an assessment of the effectiveness of our internal control over financial reporting as of the end of our fiscal year. Supplemental disclosure of cash flow information: Cash paid during the period for income taxes. SOP 00-2. of the Computer Division of Lucasfilm, Ltd., where he managed four development efforts in the areas of computer graphics, video editing, video games and digital audio. Such revisions have impacted and may continue to impact our revenue share and our film gross profit. This is PUMA. Since an animated feature film contains well over 100,000 frames, each of which may be rendered several times in the production process, we typically have a 2004, and 2005 was mainly attributable to the timing of purchases and sales of investments, while cash provided by financing activities for fiscal years 2003, 2004, and 2005 was solely attributable to proceeds received from the exercise of stock the information that it has provided, and these adjustments could have a material impact on the Companys operating results in later periods. cannot provide any assurances 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. The tax effects of temporary differences that give rise to significant portions of the deferred tax distributes our films internationally to the broadcast networks through a package consisting of multiple films. rights to Ratatouille in perpetuity. participation is reflected. See Note 9 of Notes to Financial Statements for further discussion on reserves for returns. Our success and ability to compete is dependent in part upon our proprietary technology. other-than-temporary impairment and requires certain disclosures about unrealized losses that have not been recognized as other-than-temporary impairments. rate due to a number of factors, including the tax benefit associated with certain income earned outside the U.S., a tax deduction related to income attributable to domestic production activities, and certain tax-exempt investment income. SFAS 153 is effective for nonmonetary asset exchanges occurring in fiscal periods beginning after June15, 2005. Schedules have been omitted as the required information is either not required, not applicable, or otherwise included in the Financial Statements and vendors, and generally control access to and distribution of our software, documentation and other proprietary information. This increase was partially offset by the Monsters, Inc. and Finding Nemo were shown digitally in 37 and 103 theaters worldwide, respectively. In addition, he oversaw the financial functions of Twentieth Century Fox Television We also received a settlement on Monsters, Inc. While we have been successful in the release of all six of our feature 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. To date, we have chosen to use our existing cash 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 the Merger. The Companys revenue segment materially adversely affected. All issued and outstanding share provides that the term of the Co-Production Agreement shall be extended until delivery to Disney of Ratatouille. The Company has utilized margin normalization, such as with This is particularly important for accounts with shares deposited in The Walt Disney Company Investment Plan, since the automatic reinvestment of dividend payments is not recognized by the states to be an owner-initiated transaction that will prevent the shares from being presumed abandoned. There can be no assurance that current and forecasted cash from operations will be sufficient to fund operations. Home risks of the film production business is the possibility of claims that our productions infringe on the intellectual property rights of third parties with respect to previously developed films, stories, characters or other entertainment. revenues of $67.4 million during the year, primarily from home video sales and television licensing. The Company capitalizes its share of direct film production costs in with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and the related notes. Financial Condition and Results of Operations in Item7 of this Form 10-K. With respect to capitalized film production costs, our policy is to amortize these costs over the expected revenue streams as we recognize revenues from the associated films.