DVC/DVD in annual report?

[dilettante]

I didn't see any mention of DVC/DVD in Disney's annual report. Did I overlook something or is it just not there - and why. Seems like DVC/DVD is a bright spot in an otherwise lackluster profit year.

cheers

 

[PamOKW]

It is never broken out as a seperate entity. I seem to recall that it falls into the Disney Imagineering division. We're Disney's little secret profit center.

 

[Werner Weiss]

There are three reference to "Disney Vacation Club" and one reference to "Dieney Vacation Development" in the 2001 Annual Report of The Walt Disney Company.

The Walt Disney Company is divided into four business sgements:

• Media Networks
• Parks & Resorts
• Studio Entertainment
• Consumer Products

Disney Vacation Club falls under Parks & Resorts. The Chairman of Parks & Resorts is Paul S. Pressler.

From the WALT DISNEY WORLD section:
Imagineers are also working on two new Walt Disney World Resort
locations for the Disney Vacation Club. Disney’s Beach Club Villas,
opening in fall 2002, will feature 208 units spread over five wings,
and will be inspired by mid-Atlantic seaside homes built in the early
20th century. Each of the studio and one- and two-bedroom villas has
either a pool or garden view.

From the LIQUIDITY AND CAPITAL RESOURCES section:
Cash provided by operations decreased 19%, or $707 million, to
$3.0 billion, reflecting decreased pretax income before non-cash
charges, increased payments for television broadcast rights, primarily
due to the timing of the NFL payments and increased license fees for
Primetime programming and the timing of the payments of accounts
payable. These decreases were partially offset by lower income tax
payments. Additionally, the prior year included proceeds from the sale
of receivables at Disney Vacation Club. These decreases were partially
offset by higher net income before non-cash charges.

From the PARKS & RESORTS section:
The company operates the Walt Disney World Resort in Florida and
the Disneyland Resort in California. The Walt Disney World Resort
includes the Magic Kingdom, Epcot, Disney-MGM Studios and
Disney’s Animal Kingdom, thirteen resort hotels and a complex of
villas and suites, a retail, dining and entertainment complex, a sports
complex, conference centers, campgrounds, golf courses, water parks
and other recreational facilities. In addition, Disney Cruise Line
is operated out of Port Canaveral, Florida. The Disneyland Resort
includes Disneyland, Disney’s California Adventure, Disney’s Grand
Californian Hotel, Disneyland Hotel, Disney’s Paradise Pier Hotel and
Downtown Disney. Disney’s Regional Entertainment designs, develops
and operates sports-themed dining and entertainment facilities
operating as ESPN Zone. The company earns royalties on revenues
generated by the Tokyo Disneyland Resort, which includes two
theme parks and two Disney-branded hotels, near Tokyo, Japan, and
is owned and operated by an unrelated Japanese corporation. The
company has an investment in Euro Disney S.C.A. (Euro Disney),
a publicly held French entity that operates Disneyland Resort Paris
and earns royalties on Disneyland Resort Paris revenues. A company
subsidiary also receives management fees from Euro Disney. The
company’s Walt Disney Imagineering unit designs and develops new
theme park concepts and attractions, as well as resort properties. The
company also manages and markets vacation ownership interests
in the Disney Vacation Club. Included in Parks & Resorts are the
company’s National Hockey League franchise, the Mighty Ducks of
Anaheim, and the Anaheim Angels, a Major League Baseball team.

From the SIGNIFICANT ACCOUNTING POLICIES section:
Principles of Consolidation The consolidated financial statements
of the company include the accounts of The Walt Disney Company
and its subsidiaries after elimination of intercompany accounts and
transactions. In December 1999, DVD Financing, Inc. (DFI), a subsidiary
of Disney Vacation Development, Inc. and an indirect subsidiary
of the company, completed a receivable sale transaction. In
connection with this sale, DFI prepares separate financial statements,
although its separate assets and liabilities are also consolidated in
these financial statements.

 

[PamOKW]

The company’s Walt Disney Imagineering unit designs and develops new theme park concepts and attractions, as well as resort properties. The company also manages and markets vacation ownership interests in the Disney Vacation Club.

That was the type of reference I had remembered from past reports. Thanks for the details Werner.

 

[dilettante]

Good find.

But these are token appearances for DVC/DVD. Certainly not comensurate with the profit success of this Disney subsidiary.

 

[Granny]

Originally posted by dilettante
Good find.

But these are token appearances for DVC/DVD. Certainly not comensurate with the profit success of this Disney subsidiary.

It's in Disney's best interests not to break out any more information than they have to. If DVD is as profitable of an area as we hear, breaking out the numbers would show poorer performance from the parks and resorts. Don't forget, the annual reports of corporations are a required document, but most companies use them as marketing tools as well. In this case, the marketing target is the investment community. So the rosier overall picture you can paint, the better.