Locate the 2009 financial statements for The Walt Disney Company on the Internet and consider the following

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Locate the 2009 financial statements for The Walt Disney Company on the Internet and consider the following questions:
1. What depreciation method does Disney use for its parks, resorts, and other property? For its film and television costs?
2. Where do you have to look to find out that Disney's 2009 total depreciation and amortization expense was $1,631 million?
3. As of October 3, 2009, what percentage of film and television production costs was expected to be amortized within the next three years?
4. In 2006, Disney acquired Pixar. The following information concerning the acquisition is summarized from Disney's 2006 annual report:
On May 5, 2006, the Company completed an all stock acquisition of Pixar, a digital animation studio. The acquisition price was $7.5 billion, and the Company allocated the purchase price to the tangible and identifiable assets acquired and liabilities assumed based on their fair values, which were determined primarily through third-party appraisals. The following table summarizes the allocation of the purchase price (in millions):
Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 11
Investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,073
Prepaid and other assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
Film costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 538
Buildings and equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 225
Intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 233
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,557
Total assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,682
Liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 64
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 123
Total liabilities assumed . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 187
Net assets acquired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $7,495
The goodwill on Disney's 2005 consolidated balance sheet was $16.974 billion, and, as seen in the table above, $5.557 billion of goodwill was associated with the Pixar purchase in 2006. In the consolidated balance sheet of Disney's 2009 financial statements, the original cost associated with total goodwill was $21.683 billion. If $5.557 billion of goodwill from the Pixar purchase was added to Disney's 2005 total goodwill (giving a total of $22.531 billion), why you think Disney's 2009 total goodwill was only $21.683 billion?
Goodwill
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Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial...
Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
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Related Book For  answer-question

Intermediate Accounting

ISBN: 978-0538479738

18th edition

Authors: Earl K. Stice, James D. Stice

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