Research an article(or two) that discusses Walt Disney’s capital investment in Theme Parks
and Resorts in 2012 and 2013. Also, study the Mangement Discussion and Analysis
(MD&A) in the 10-K and identify what management says about the Theme Park and
Resorts capital investments. Summarize what you learned in a one-page document and
proviide support on whether or not what you learned ties back to Walt Disney’s Segment
Reporting footnote that we discussed at length in class today. (DUE: Monday 9/29) 10
points on Exam 1 Include your article(s) link in the document.
The Management Discussion and Analysis in the 10-k supports the Theme Park and
Resorts capital investments. Domestic volume was up 4%, revenue growth of 10%
reflected higher average customer spending due to higher ticket prices, lodging,
merchandising, and food spending. Attendance at the parks were higher, as was the
attendance on daily cruise ships and overnight stays and Walt Disney World Resort. The
cruise ship increase is reflected upon the launch of the Disney Fantasy, and the increase in
occupied nights at Walt Disney World, the opening of the Art of the Animation Resort.
Disney states the success of their business depends on their ability to consistently offer
experiences that meet the preferences of the consumer market and to respond to the
offerings from competition to try and keep the Disney consumer coming back. Often that
means increased spending to update theme parks to the latest attraction or phasing out an
attraction that no longer appeals to the majority of the consumer.
