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DIS » Topics » Other Dispositions

This excerpt taken from the DIS 10-K filed Dec 2, 2009.

Other Dispositions

The following dispositions occurred during fiscal 2009, 2008 and 2007:

 

  •  

On December 22, 2008, the Company sold its investment in two pay television services in Latin America for approximately $185 million, resulting in a pre-tax gain of $114 million.

 

  •  

The movies.com business was sold for $17 million on June 18, 2008, resulting in a pre-tax gain of $14 million.

 

  •  

The Company’s 39.5% interest in E! Entertainment Television was sold for $1.23 billion on November 21, 2006, resulting in a pre-tax gain of $780 million ($487 million after-tax).

 

  •  

The Company’s 50% interest in Us Weekly was sold for $300 million on October 2, 2006, resulting in a pre-tax gain of $272 million ($170 million after-tax).

These gains are reported in “Other income (expense)” in the Consolidated Statements of Income.

This excerpt taken from the DIS 10-K filed Nov 22, 2006.

Other Dispositions

The following disposals occurred during fiscal 2006 and fiscal 2005:

  •   A cable television equity investment in Spain was sold on November 23, 2005, resulting in a pre-tax gain of $57 million
  •   The Discover Magazine business was sold on October 7, 2005, resulting in a pre-tax gain of $13 million
  •   The Mighty Ducks of Anaheim was sold on June 20, 2005, resulting in a pre-tax gain of $26 million.

These gains were reported in “Gains on sale of equity investment and businesses” in the Consolidated Statements of Income.

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.

 

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Table of Contents

During the year ended September 30, 2004, the Company recorded $64 million of restructuring and impairment charges related to The Disney Store. The bulk of these charges were impairments of the carrying value of fixed assets related to the stores to be sold.

EXCERPTS ON THIS PAGE:

10-K
Dec 2, 2009
10-K
Nov 22, 2006

RELATED TOPICS for DIS:

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