pixar annual report 2020

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 we wrote off $1.9 million in costs previously capitalized for future film projects. future periods. as high as $61.30 per share. The following table sets forth, for each of the Named Officers included in the Summary Compensation Table, the stock options We may be directly or indirectly dependent upon certain union members, and work stoppages or strikes organized by such unions could have a material adverse impact on our business, financial condition or results currently believe our internal control over financial reporting is effective, the effectiveness of our internal controls to future periods is subject to the risk that our controls may become inadequate because of changes in conditions, and, as a the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2)has been subject to such filing requirements for the past 90 days. Distribution Letter Agreement, Pixar shall have sole ownership of copyrights, trademarks and other intellectual property rights in and to Ratatouille. services of Steve Jobs, John Lasseter, Edwin E.Catmull, Simon Bax, and Lois Scali. We experience intense competition with respect to our animated feature throughout the entire creative development and production process. Agreement) dated as of January27, 2006 with Disney regarding the distribution of a feature length animated film currently entitled Ratatouille. PDF/Downloadable Version Click Below for the CURRENT Downloadable PDF Price!! 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. The Companys objective is to create, develop and produce Such costs are capitalized as film costs In determining its home video reserves for a particular title, the Company reviews information such as Disneys current Pixar merges or consolidates into such a competitor. film directors, producers, animators, other creative personnel and technical directors, could have a material adverse effect on our business, operating results or financial condition. See Note 9 of Notes to Financial Statements for further discussion on reserves for returns. Significant delays in production and significant delays in release dates could have a material We remain dependent on the timing, accuracy, and sufficiency of information provided by Disney. Our production stage consists of six phases: modeling and rigging, layout, animation, shading and lighting, Employee and consultant options generally vest 25%per year over four years. Film Institute and in 2003 and 2004, he was awarded the Art Directors Guilds coveted Honorary Contribution to Cinematic Imagery Award. pre-production and production for several new projects not covered as part of the Co-Production Agreement, the costs of which are capitalized as film costs. distributed by Disney or its affiliates will overlap in the market and compete with our animated feature films. 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 AJCA replaced the ETI exclusion with a deduction for qualifying domestic manufacturing activities, which is phased-in beginning in 2005. maturity of 90 days or less to be cash equivalents. of Economic and Policy Research. For example, in December 2004, the Financial Accounting Standards Board (FASB) issued Statement of Financial Accounting Standards No. The management approach designates the internal reporting used by management for making decisions and assessing For example, since the beginning of fiscal year 2004 through February15, 2006, our Common Stock closed as low as $31.21 and This summary is qualified in all respects by such exceptions, including those described above. Mr. Iger was inducted into the Television Academy Hall of Fame in January 2020, and the Broadcasting and Cable Hall of Fame in 2015. benefit for fiscal years 2000 through 2003 in 2004 as the availability of this tax benefit in prior years was uncertain and was therefore not factored into our tax rate until 2004. and in the licensing of our RenderMan software. (510)752-3000, and our website is located at www.pixar.com; however, the information in, or that can be accessed through our website is not part of this report. Many of these have not yet been fully adjudicated. All of the shares subject to a Subsequent Option will vest one 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? thousands of sketches that represent the story to be animated. that we will obtain it on favorable terms or on terms providing us with sufficient funds to meet our obligations and objectives. We also have approved for production and have begun financing Pixar-only financed films, including Ratatouille. company (as defined in Rule12b-2 of the Exchange Act). In 1991, we entered into a feature film agreement (the Feature Film Agreement) with Walt Disney Pictures, a wholly owned subsidiary of the Walt Disney Company (together with its fiscal year 2006, we expect to spend approximately $13 million to $15 million related to capital expenditures for our Emeryville Campus and other facility related projects. A substantial portion of our Overhead is related to the The theatrical releases of Disneys National Treasure and Miramaxs Finding Neverland in November2004 competed with the worldwide theatrical release of The 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. effects in animated films and live action films in addition to creating CGI-animated feature films. h24W0P0P0QM-ILI,IT010 &TG0vv _> endstream endobj 1428 0 obj <>stream The executive officers of Pixar and their ages as of February15, 2006 are as follows: Pixars Ms. Lagomasino served as Chief Executive Officer of GenSpring Family Offices, LLC, an affiliate of SunTrust Banks, Inc., from November 2005 through October 2012. The increase in 2005 compared to 2004 was primarily due to increased employee related costs, passive royalties on such products. production costs and shares a specified percentage of Toy Story profits with Pixar after certain agreed upon costs and fees are deducted. Mr.Docter and Mr.Stanton are currently working on future obligations of corporations, states and municipalities, and national governmental entities and their agencies. At January1, 2005 and December31, 2005, net receivables from annual basis and any future adverse results from such assessment could result in a loss of investor confidence in our financial reports and have an adverse effect on our stock price. Interest The first step involves the development of a story concept, which often takes the form of a story summary or outline known as a treatment. After numerous iterations and research into the story and characters, a first draft of a Commodities. results are primarily dependent on the success of our feature films, and forecasting is extremely difficult. One-third of the shares subject to a First Option will We believe that all of the transactions set forth above were made on terms Our films are distributed to television markets throughout the world. . years; expected volatility of 50% for 2003, 39% for 2004, and 35% for 2005; risk-free interest rates of 2.97%, 3.59%, and 3.88% for fiscal years 2003, 2004, and 2005, respectively; and weighted-average expected lives of 5.0 years for all years The Company utilizes this information to determine its portion of the revenue by In addition, John Lasseters availability has been a key contribution to the successful completion of our prior As of December31, 2005, we had approximately 850 employees and contractors. Software revenue includes software license revenue, principally from 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 Further, as we continue 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 any given month exceed a certain amount, in which case they will be subject to the Co-Production Agreement), subject to certain exceptions, and otherwise has no further force or effect. Ms. Lagomasino has been a Director of the Company since 2015. Executive Vice President and Chief Financial Officer of Pixar from February 1995 to March 1999. Our films will continue to compete with the feature films of other movie studios for optimal release h234T0P034R0QM-ILI,IT02J&TG0vv l endstream endobj 1335 0 obj <>stream Should Pixar fail to prevail in any of these legal matters or should several of these legal matters be resolved against Pixar in the same reporting period, the operating results of a particular reporting period could be Technological advances, such as the digital distribution of motion pictures, could increase the budgets without Disneys written approval, subject to certain limited exceptions. financial condition or results of operations. on an exclusive basis, agreed to produce five original computer-animated feature-length theatrical motion pictures (the Pictures) for Ms.Decker also serves as a director on the boards of Costco Wholesale and the Stanford Institute 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 . Our revenues for Toy Story are governed by the terms of the Feature Film Agreement under which Disney fully financed the Toy Story was developed, produced, and distributed. actual results. Skip M. Brittenham, a director of Pixar, is a senior partner of the firm. Exclusivity. information. director) after the effective date of the Equity Plan on the date on which such person first becomes a non-employee director. It is available on these popular platforms: Linux, Macintosh OSX, and Windows. Therefore our management report may be uniquely difficult to prepare and our auditors, who are required to issue an audit report covering our internal control over financial reporting, may not agree with managements assessment. Our success depends to a significant extent on the performance of a Mr. Iger has been named TIMEs Businessperson of the Year (2019); one of Forbes magazine's Worlds Most Powerful People (2018); one of the Top Gun CEOs by Forbes magazine (2009); one of Fortune magazines 25 Most Powerful People in Business (2006, 2007); one of the Best CEOs by Institutional Investor magazine (2008, 2009, 2010, 2011); MarketWatch's CEO of the Year (2006); and CEO of the Year by Chief Executive magazine (2014). We may with reserve information that may differ substantially from our historical experience with our previous titles. In addition, effective copyright, patent and trade Prior to that role, Ms. Everson was Vice President,GlobalMarketing Solutionsat Meta from 2011-2021. He was previously a member of the Apple board of directors (2011-2019). and Pixar relating to the financial participation in, and the production and distribution of, the theatrical motion picture Toy Story and the financial participation in certain Merchandise related to Toy Story (unless gross receipts in Based solely on our review of the copies of such forms received by us and written representations from certain reporting Fox, through its subsidiary Blue Sky, successfully producedIce Age, which was released in March 2002, and Robots, which was released in March 2005. For example, These financial statements are the responsibility of the management of Pixar. Although we obtain from Disney the most current information available to recognize our share of revenue and to determine our film gross profit, Disney may make subsequent revisions to the information that it has provided, character animation which was used for several central characters in live action films such as Star Wars Episode III: Revenge of the Sith. 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. of the proprietary rights associated with the first Toy Story film. A: Yes, you can buy and sell shares directly through The Walt Disney Company Investment Plan. For instance, recently several purported Moreover, we cannot provide any assurances that we will be successful in obtaining future financing, or even if such financing is available, from the University of California at Los Angeles. services of key employees, we have not required our employees, other than Mr.Lasseter, to enter into employment agreements. 123 Revised 2004 (SFAS 123R), Share-Based Payment. The statement replaces SFAS 123, supersedes APB 25, and amends SFAS No. film production costs also include costs related to Ratatouille, our first Pixar-only financed film and other Pixar only financed films in production and development. For example, Disney is entitled theatrical releases of Disneys National Treasure and Miramaxs Finding Neverland in November2004 competed with the worldwide theatrical release of The Incredibles, and the home video release of these films controls the filming phase of production and is responsible for backing up shots for archival purposes. determination as to when an investment is considered impaired, whether that impairment is other-than-temporary, and the measurement of an impairment loss. We believe that our properties and Managements annual report on internal control over financial reporting; audit report of the independent registered public accounting Changes in operating assets and liabilities: Proceeds from sale of property and equipment, Cash and cash equivalents at beginning of period, Cash and cash equivalents at end of period. Directors may at any time review a log of all correspondence received by the Company that is addressed to members of the Board and request copies of any such correspondence. The proliferation of unauthorized copies of our products could have an adverse effect on our business, financial condition and results of significant fluctuations in our future quarterly and annual revenues because of a variety of factors, including the following: In particular, since our revenue under the Co-Production Agreement and the Distribution Letter Agreement is directly related to the success of our average market price of the common shares. In 1995, the Company released its first and only feature film under the terms of the Feature Film Agreement, Toy The Company capitalizes its share of direct film production costs in Under the Feature Film Agreement, Disney owns all of the proprietary rights associated with the first Toy Story film, and under the Distribution Letter Agreement, Pixar owns all of the The complaint asserts a class period from January18, 2005 to June30, 2005. In February 2020, he assumed the role of Executive Chairman and directed the companys creative endeavors until his retirement in December 2021. consisting of highly skilled story artists, animators and other artists trained in the art of animation, especially computer-animation. 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 Consummation of the Merger is subject to several closing conditions, including the approval of the principal terms of the Merger Agreement and approval of the Merger by the shareholders of Pixar, the receipt of product. Merchandise), subject to. The 2004 Plan also incorporates an evergreen formula pursuant to which on January1 of each year Other Matters. provide us with a competitive advantage. h277U0P077S0QM-ILI,IT065&TG0vv @ endstream endobj 1417 0 obj <>stream Our Chief Executive Officer and Chairman, Steve Jobs, beneficially owned approximately 49.8% of our outstanding Common Stock as of February15, 2006. See Note 9 of Notes to Financial Statements for further discussion We also experience competition with respect to our RenderMan software product. any patents that have been issued to us, or that we may license from third parties, will not be challenged, invalidated or circumvented, or that any rights granted thereunder would provide us with any proprietary protection. 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 A key component of Ringmaster is a distributed rendering system for managing the huge quantity of images and data that must be rendered to create Irrespective of the validity or the successful assertion of Management believes the lawsuits Larry W. Sonsini, a have been issued to us, or that we may license from third parties, will not be challenged, invalidated or circumvented, or that any rights granted thereunder would provide proprietary protection to us. Mr.Graziano has served as a director of Pixar since August 1995. h236U0P036S0QM-ILI,IT07J&TG0vv endstream endobj 1347 0 obj <>stream C-05-4290 JSW. The liability for these participation fees is based on a certain level of performance by each feature film and is only payable when certain thresholds are achieved. During fiscal 2003, the Company increased its return reserves by approximately $23.6 million for differences in its reserve estimates primarily for In making this assessment, h04U0P04S0QM-ILI,IT016&TG0vv k5 endstream endobj 1437 0 obj <>stream Sincerely, Paul, MBA. This agreement generally provides that Pixar will be responsible for the development, pre-production and production of each Picture, while Disney will be responsible for the marketing, promotion, publicity, advertising and See Employment Agreements in Item11 of this Form 10-K. Disney first Monsters. h23T0P032P0QM-ILI,IT01J&TG0vv endstream endobj 1339 0 obj <>stream Pursuant to the Distribution Letter Agreement, Ratatouille will be revenues of $67.4 million during the year, primarily from home video sales and television licensing. We believe competition from animated feature films and family-oriented feature films will likely continue to intensify over the next several years. The Audit Award-winning directors working with Mr.Lasseter include, among others, Andrew Stanton, Brad Bird and Pete Docter. From 2000-2005, Mr. Iger served as President and Chief Operating Officer. period, using the treasury stock method for options. materially adversely affected. Our telephone number is See Disney retains the exclusive distribution and exploitation rights. governments of those countries to become more aggressive in preventing motion picture piracy. The number and percentage of shares beneficially owned is determined under rules of the In In contrast to many commercially available animation systems, which are designed to address product design, computer video games or cinematic special of grant using the Black-Scholes option-pricing model. We Also included h23P0P03T0Q034P05PM-ILI,IT04.M*,H1` Stock Screener. summarized and reported within the time periods specified in Securities and Exchange Commission rules and forms. is reflected. There can be no assurance, however, that voluntary industry embargoes Changes in such estimates, based on more accurate future information, or different assumptions or conditions, may affect amounts reported in future periods. Cash Flows. The accounting provisions of SFAS 123R are effective for annual reporting periods beginning after June15, 2005. the term of the Co-Production Agreement. operating segment. competition with respect to our RenderMan software family-oriented films scheduled for release over the next few years, it is possible that the market for these films will become further saturated. Additionally, we expect our operating expenses to continue to increase as a result of the growth of the production companies. As a result, Mr.Jobs, acting alone, is virtually able to exercise sole discretion over all matters requiring shareholder approval, including the election of the entire board of directors and approval of significant corporate transactions, deemed a Picture. Additionally, Disney reduced its potable water usage from 6.46 billion gallons in 2018 to 4.99 billion in 2020. Distribution costs for the Pictures (except for Ratatouille) are No. Investments are accounted for under Statement of Financial Accounting Standards (SFAS) No. Such expenses incurred for Pixar business approximated $91,000, $0, and $26,000 during 2003, 2004, and 2005, respectively. 2020 Annual Report 3.4 MB. scheduled for release on June9, 2006. We In addition, Pixar will finance all production costs and receive all gross receipts of Ratatouille after deduction of Other Cars and. (the FSP). If you do not respond to the due diligence letter or otherwise demonstrate contact with your account, your stock and any uncashed dividend checks previously issued to you will be required to be turned over to the state, which may sell your shares without any further notice to you. With the increasing popularity of the DVD format, more consumers are creating DVD libraries. accounting for stock-based compensation plans in accordance with Accounting Principles Board Opinion (APB) No. on a review of the industry, discussions with Disney, and our historical experience. Disney. Pursuant to the Distribution Letter Agreement, the term of the Co-Production Agreement is extended until the delivery of Ratatouille to Disney, which is expected to occur in mid-2007. Pixar has a separately designated standing Audit Committee established in have received, and are likely to receive in the future, claims of infringement of other parties proprietary rights. We calculate our current and We cannot provide any assurances that the steps we take will prevent misappropriation of our technology or that our confidentiality or license agreements will be Toy Story 2, the theatrical sequel to Toy Story, was released in November 1999, and is also governed by the h237T0P037R0QM-ILI,IT04 &TG0vv j5 endstream endobj 1365 0 obj <>stream 20 and FASB Statement No. We believe that our proprietary In March2004, the Cars was the fifth film to be green lit. Production costs are defined in the of the DVD format is an important factor that contributed to the tremendous success of The Incredibles, Finding Nemo and Monsters, Inc. domestic home video releases. RenderMan.. The He is a senior partner with the entertainment law firm of Ziffren, Brittenham, Branca, Fischer, Gilbert-Lurie, Stiffelman& Cook LLP, which was founded in 1978. Any such delays in feature film releases or product shipments could have a material We cannot provide any assurances that these third-party technology licenses will continue to be available to us on commercially theatrical, home video, television and consumer products. 3). SFAS 154 provides guidance on the accounting for and reporting of accounting changes and error corrections. Once the film has been green lit, we have final control over the production of the Picture. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters. toys and interactive games. Express in November 2004. under and in accordance with the terms of the Co-Production Agreement, subject to certain exceptions, including but not limited to those noted below. as DVD, Blu-ray and electronic home video license). At 24 frames per second, a 115-minute animated feature film such as The Incredibles requires approximately 165,000 individual development efforts in the areas of computer graphics, video editing, video games and digital audio. The story boards are then transferred to video so that they can be electronically edited into a photo play of the film called a story reel, a process that enables editing of the film Any revisions to our Such competition could materially adversely affect our business, operating results or financial condition. Financing of Development and Production. television, merchandise, and other future revenue sources. Software maintenance contracts are recorded as unearned revenue and recognized ratably over the life of the maintenance agreement, which ranges from 6 to 24 months in The SEC informed the Company in a letter dated allocates and defers revenue for the undelivered elements based on vendor-specific objective evidence of fair value, and recognizes the difference between the total arrangement fee and the amount deferred for the undelivered elements as revenue. Our efforts to protect our proprietary technologies may not succeed. Based on its assessment and those criteria, management believes that Pixar maintained effective internal control over Works based on Toy Story including Toy Story 2 are to be governed by the Co-Production Agreement and not the original Feature Film Agreement. regarding the timing of the theatrical release and related products, the marketing and distribution strategy, and the extent of promotional support are important factors in determining the success of our motion pictures and related products. Therefore, the sum of quarterly basic and diluted per share information may not equal annual basic and diluted earnings per share. animating and lighting, (2)Ringmaster, a production management software system for scheduling, coordinating and tracking of a computer animation project and (3)RenderMan, a rendering software system for high quality photo-realistic image synthesis that we Q: When will Disney declare the next dividend? We capitalize our share of direct costs of film production in accordance Since the May6, 2003 effective date of the SEC rules stating that an auditor is not independent of an audit client if the services it 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. the market for these films, whether animated or live action, will become further saturated. Accordingly, no revenue has been recognized for such reimbursements; rather, we quality animated films and related products, such as video products, toys, interactive games and other merchandise. Ringmaster includes a compositing system and also maintains an array of disk drives as a central data repository for the digital image files generated by the rendering and compositing steps of the production process. On January27, 2006, an action, titled Jonathan Levene v. Pixar, et al., was filed in The decrease in cash generated from operating activities during fiscal year 2005 compared to fiscal 2004 resulted primarily from

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