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This excerpt taken from the DIS 10-K filed Nov 22, 2006. Disney Stores Effective November 21, 2004, the Company sold substantially all of The Disney Store chain in North America under a long-term licensing arrangement to a wholly-owned subsidiary of The Children’s Place (TCP). The Company received $100 million for the working capital transferred to the buyer at the closing of the transaction. During fiscal 2005, the Company recorded a loss on the working capital that was transferred to the buyer and additional restructuring and impairment charges related to the sale (primarily for employee retention and severance and lease termination costs) totaling $32 million. Pursuant to the terms of sale, The Disney Store North America retained its lease obligations related to the stores transferred to the buyer and became a wholly owned subsidiary of TCP. TCP is required to pay the Company a royalty on substantially all of the physical retail store sales beginning on the second anniversary of the closing date of the sale. During fiscal year 2004, the Company recorded $64 million of restructuring and impairment charges related to The Disney Stores. The bulk of these charges were impairments of the carrying value of fixed assets related to the stores that were sold. The following table provides revenue and operating (loss) income for The Disney Store North America prior to divestiture:
This excerpt taken from the DIS 10-K filed Dec 7, 2005. Disney Stores
Effective November 21, 2004, the Company
sold substantially all of The Disney Store chain in North
America under a long-term licensing arrangement to a
wholly-owned subsidiary of The Children’s Place (TCP). The
Company received $100 million for the working capital
transferred to the buyer at the closing of the transaction.
During fiscal 2005, the Company recorded a loss on the working
capital that was transferred to the buyer and additional
restructuring and impairment charges related to the sale
(primarily for employee retention and severance and lease
termination costs) totaling $32 million. Pursuant to the
terms of sale, The Disney Store North America retained its lease
obligations related to the stores transferred to the buyer and
became a wholly owned subsidiary of TCP. TCP is required to pay
the Company a royalty on substantially all of the physical
retail store sales beginning on the second anniversary of the
closing date of the sale.
During the years ended September 30, 2004 and 2003, the Company recorded $64 million and $16 million, respectively, of restructuring and impairment charges related to The Disney Stores. The bulk of these charges were impairments of the carrying value of fixed assets related to the stores to be sold. -42-
The following table provides revenue and operating (loss) income for The Disney Store North America:
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