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Chapter 07
188
TO THE NET
1. a. Item 1. Business
The Walt Disney Company, together with its subsidiaries, is a diversified
and Interactive Media.
b. Reporting Period
three week year beginning on September 28, 2008 and ending on October 3,
2009. There will be a comparability issue.
c. Note 15. Commitments and Contingencies
Legal Matters
Celador International Ltd. v. The Walt Disney Company. On May 19, 2004, an
affiliate of the creator and licensor of the television program, “Who Wants to be a
Millionaire,” filed an action against the Company and certain of its subsidiaries,
plaintiff to an award of prejudgment interest of $50 million, which amount will be
reduced pro rata should the trial court or Court of Appeals reduce the damages
amount. If a new trial is ordered the stipulation will have no effect. Although we
cannot predict the ultimate outcome of this lawsuit, the Company believes the
Statement.”
Chapter 07
189
2. a.
For the Year Ended December 31, 2010
Defined Benefit
Pension Plans
Other
Postretirement
Benefits
Net periodic cost [A]
$
502,000,000
$
118,000,000
Net sales [B]
53,674,000,000
53,674,000,000
[A] ÷ [B]
0.94
0.22
Income from continuing operations
before income taxes [C]
2,802,000,000
2,802,000,000
[A] ÷ [C]
17.92%
4.21%
continuing operations before income taxes.
b.
December 31, 2010
Defined Benefit
Pension Plans
Other
Postretirement
Benefits
Projected benefit obligations
$
21,158,000
$
2,095,000,000
Funded status
(5,307,000,000)
(1,857,000,000)
2010.
Defined Benefit
Pension Plans
Other
Postretirement
Benefits
Noncurrent assets
$
235,000,000
$
-----
Current liabilities
(58,000,000)
(88,000,000)
Noncurrent liabilities
(5,484,000,000)
(1,769,000,000)
Net amounts recognized in the
consolidated balance sheet
$
(5,307,000,000)
$
(1,857,000,000)
Chapter 07
190
3. a. Times interest earned =
Recurring Earnings, Excluding Interest Expense, Tax
Expense, Equity Earnings, and Noncontrolling Interest
Interest Expense, including Capitalized Interest
For the 52 weeks ended January 1, 2011
Net income
$
137,047,000
+ Interest
8,164,000
+ Tax expense
73,333,000
[A]
218,544,000
Interest
8,164,000
Capitalized interest
*
[B]
8,164,000
[A] ÷ [B]
26.77 times
fiscal year 2010.
b. Debt ratio
Total Liabilities
Total Assets
$1,325,489,000 – $529,699,000
$1,325,489,000
$795,790,000
=
60.04%
$1,325,489,000
c. Operating cash flow / total debt
$306,050,000
=
57.78%
$529,699,000
d. Times interest earned is very good
Chapter 07
191
4. a. Times interest earned =
Recurring Earnings, Excluding Interest Expense, Tax
Expense, Equity Earnings, and Noncontrolling Interest
Interest Expense, including Capitalized Interest *
Years ended December 31,
In Millions
2010
2009
2008
Net income
$
4,627
$
4,605
$
4,052
+ Provisions for income taxes
690
599
963
+ Interest expense
604
578
551
[A]
$
5,921
$
5,782
$
5,566
Interest expense [B]
604
578
551
[A] ÷ [B]
9.80
10.00
10.10
b. Debt ratio
Total Liabilities
Total Assets
Years ended December 31,
In Millions
2010 2009 2008
Total Liabilities [A] $ 19,542 $ 16,962 $ 15,542
c. Operating cash flow
Years ended December 31,
In Millions
2010 2009 2008
2010.
