The Walt Disney Company’s Yen Financing Report
The Walt Disney Company’s Yen Financing
Report
Contents
Overview 3
History of Disney 3 Analysis on Financial Statement 3 Problems to Solve 4
Variable methods of hedging 5
Inter FX Forward Contracts 5
Goldman’s Proposal 7
Gains for Both Counterparties 10
Conclusion 11
The Walt Disney Company’s Yen Financing
Report
Overview
History of Disney The Walt Disney Company (NYSE: DIS), commonly referred to as Disney, is an American multinational diversified mass media company headquartered in Walt Disney Studios, Burbank, California. The company operated entertainment and recreational complexes, produced motion picture and television features, developed community real estate projects, and sold consumer products. It is founded in 1938 as successor to the animated motion picture business established by Walt and Roy Disney in 1923. The company now owns and licenses 14 theme parks around the world
Tokyo Disneyland, opened to the public on April 15, 1983, owned and operated by an unrelated Japanese corporation, the company received royalties, paid in yen, on certain revenues generated by Tokyo Disneyland. Similar in concept to the other Disney centers, this amusement theme park was located just six miles from downtown Tokyo, Japan.
Analysis on Financial Statement
Consolidated revenues for the Walt Disney Company and its subsidiaries increased by almost 27% in 1984 to $1.66 billion. Total entertainment and recreation revenues, including royalties from Tokyo Disneyland, increased 6% to $1.1 billion in the fiscal year ended September 30, 1984. Net income totaled $97.8 million in 1984, an increase of 5% from 1983. Revenues generated from the theme parks accounted for an important part of the total revenues. In addition, the increasing rate of net income is volatile seen in the figure1: Total assets grew 15% to $2.74billion at the end of fiscal 1984. The ratio of debt to total capitalization jumped to 43% at September 30, 1984 from 20% at
Report
Contents
Overview 3
History of Disney 3 Analysis on Financial Statement 3 Problems to Solve 4
Variable methods of hedging 5
Inter FX Forward Contracts 5
Goldman’s Proposal 7
Gains for Both Counterparties 10
Conclusion 11
The Walt Disney Company’s Yen Financing
Report
Overview
History of Disney The Walt Disney Company (NYSE: DIS), commonly referred to as Disney, is an American multinational diversified mass media company headquartered in Walt Disney Studios, Burbank, California. The company operated entertainment and recreational complexes, produced motion picture and television features, developed community real estate projects, and sold consumer products. It is founded in 1938 as successor to the animated motion picture business established by Walt and Roy Disney in 1923. The company now owns and licenses 14 theme parks around the world
Tokyo Disneyland, opened to the public on April 15, 1983, owned and operated by an unrelated Japanese corporation, the company received royalties, paid in yen, on certain revenues generated by Tokyo Disneyland. Similar in concept to the other Disney centers, this amusement theme park was located just six miles from downtown Tokyo, Japan.
Analysis on Financial Statement
Consolidated revenues for the Walt Disney Company and its subsidiaries increased by almost 27% in 1984 to $1.66 billion. Total entertainment and recreation revenues, including royalties from Tokyo Disneyland, increased 6% to $1.1 billion in the fiscal year ended September 30, 1984. Net income totaled $97.8 million in 1984, an increase of 5% from 1983. Revenues generated from the theme parks accounted for an important part of the total revenues. In addition, the increasing rate of net income is volatile seen in the figure1: Total assets grew 15% to $2.74billion at the end of fiscal 1984. The ratio of debt to total capitalization jumped to 43% at September 30, 1984 from 20% at