Walt Disney Yen Fin

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Exhibit 1 The Walt Disney Company and Subsidiaries, Consolidated Statement of Income, Year
Ended September 30 (in thousands, except per share data)
1984
Revenues:
Entertainment and recreation
Filmed entertainment
Community development
Consumer products

Costs and Expenses:

Entertainment and recreation
Filmed entertainment
Community development
Consumer products

Income (Loss) Before Corporate

Expenses and Unusual Charges:
Entertainment and recreation
Filmed entertainment
Community development
Consumer products

Corporate Expenses (Income):

General and administrative
Design projects abandoned
Interest expense (income)net

Income Before Unusual Charges,

Taxes on Income and Accounting
Change
Unusual charges

1983

1982

$1,097,359
244,552
204,384
109,682
$1,655,977

$1,031,202
165,458

$904,664
242,303
162,158
55,819
$1,364,944

$834,324
198,843
53,815
$1,086,982

54,706
$830,134

$192,695
2,249
42,226
53,863
$291,033

$196,878
(33,385)

$132,645
19,639

56,882
$220,375

47,832
$200,116

$59,570
7,032
41,738
$108,340

$35,554
7,295
14,066
$56,915

$30,957
5,147
(14,781)
$21,323

$182,693
165,960

110,697
$1,307,357

$725,610
202,102
102,538
$1,030,250

$592,965
182,463

$163,460

$178,793

$163,460
70,300
$93,160

$178,793
78,700
$100,093

Income Before Taxes on Income and

Accounting Change
Taxes on income (benefit)
Income Before Accounting Change

$16,733
(5,000)
$21,733

Cumulative effect of change in

accounting for investment tax
credits
Net income

76,111
$97,844

$93,160

$100,093

$0.61

$2.70

$3.01

Earnings per Share:

Income before accounting change

Cumulative effect of change in

accounting
Average Number of Common and
Common Equivalent Shares
Outstanding

2.12
$2.73

35,849

$2.70

34,481

$3.01

33,225

Exhibit 2 The Walt Disney Company and Subsidiaries Consolidated Balance Sheet,
Year Ended September 30 (in thousands)
1984

1983

Assets
Cash
Accounts and notes receivable (net)
Taxes on income refundable
Merchandise inventories
Film production costs
Real estate inventories
Entertainment attractions and other property
Less accumulated depreciation
Construction and design projects in progress
Land

Other assets

$35,346
172,762
60,000
83,467
102,462
229,424
2,413,985
(600,156)
$1,813,829
94,710
28,807
$1,937,346

$18,055
104,746
70,000
77,945
127,010
2,251,297
(504,365)
$1,746,932
108,190
16,687
$1,871,809

118,636
$2,739,443

111,630
$2,381,195

$239,992
24,145
861,909
178,907
279,005

$182,709
13,982
352,575
109,556
321,845

359,988
795,497
1,155,485
$2,739,443

661,934
738,594
1,400,528
$2,381,195

Liabilities and Stockholders Equity

Accounts payable, payroll and other accrued liabilities
Taxes on income payable
Borrowings
Unearned deposits and advances
Deferred taxes on income
Commitments and contingencies
Stockholders Equity:
Common shares, no par
Issued and outstanding33,729 and 34,509 shares
Retained earnings

Exhibit 3

Analysis of Outstanding Borrowings (in millions)

Unsecured borrowings under revolving line of

credit and bank term loans
Commercial paper

3/31
1985

9/30
1984

$168.7

$408.0

352.2

200.2

15.75% Eurodollar notes, due 9/1/86 a

--

100.0

9/30
1983

$118.2
100.0

12.50% Eurodollar notes, due 1/10/87

150.0

12.50% Eurodollar notes, due 3/15/89 b

75.0

75.0

75.0

8.60% yen term loan, due 2/1/93 c

50.0

53.1

59.4

Other

58.4
$854.3

25.6
$861.9

$352.6

Called on October 17, 1984.

Of the $75 million outstanding, the company swapped $50 million into yen liabilities of approximately 12 billion.
This synthetic yen borrowing was due 3/14/89 and had a cost of 7.40% payable annually.
b

Outstanding yen principal at March 31, 1985 was 12.5 billion, with semiannual yen principal payments of 765
million.
c

Exhibit 4

Historical Summary of Average Yen/Dollar Exchange Rates and Price Indexes

Year

Yen/Dollar

U.S. CPI

Japan CPI

1980
1981
1982
1983
1984:
I
II
III
IV

225.70
220.10
248.30
237.40

100.0
110.4
117.1
120.9

100.0
104.9
107.8
109.9

230.80
229.70
243.60
246.10

125.0
125.6
126.6
128.3

111.4
112.3
112.2
113.5

Average 1984

237.30

126.1

112.3

1985:
I
II

257.50
250.80

128.6
130.2

113.7
114.7

Sources: Economic Report of the President and International Financial Statistics

Exhibit 5

Years
Spot
1
2
3
4
5
6
7
8
9
10

Yen Long-Dated Foreign Exchange Forwards

Outright Forwards
Bid
Offer
247.95
248.05
242.05
242.65
235.95
239.05
227.95
231.55
217.95
222.55
208.95
213.55
200.95
210.55
192.95
204.05
185.95
199.05
178.95
192.55
172.95
189.05

Exhibit 6 Cash Flows of 10-Year ECU Eurobond with

Sinking Fund (millions)

Par:
Price:
Coupon:
Fees:
Expenses:
Dollar/ECU:

ECU 80 million
100.250%
9.125%
2.000%
$75,000
0.7420

Year

Cash Flows
(million ECU)

0
1
2
3
4
5
6
7
8
9
10

78.499
(7.300)
(7.300)
(7.300)
(7.300)
(7.300)
(23.300)
(21.840)
(20.380)
(18.920)
(17.460)

Exhibit 7

Year

0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
5.5
6.0
6.5
7.0
7.5
8.0
8.5
9.0
9.5
10.0

ECU/Yen Swap Flows, in Millions (assuming $/ECU of .7420 and yen/dollar of 248)
Disneys Swap Flows:
Received from/(paid to) IBJ
ECU
Yen
(A)
(B)
(78.499)
7.300
7.300
7.300
7.300
7.300
23.300
21.840
20.380
18.920
17.460

14,445.153a
(483.226)
(483.226)
(483.226)
(483.226)
(483.226)
(483.226)
(483.226)
(483.226)
(483.226)
(1,808.141)
(1,764.650)
(1,721.160)
(1,677.670)
(1,634.179)
(1,590.689)
(1,547.199)
(1,503.708)
(1,460.218)
(1,416.728)
(1,520.450)

French Utilitys Swap Flows:

Received from/(paid to) IBJ
ECU
Yen
(C)
(D)
80.000b
(7.350)
(7.350)
(7.350)
(7.350)
(7.350)
(23.350)
(21.880)
(20.410)
(18.940)
(17.470)

(14,445.153)b
483.226
483.226
483.226
483.226
483.226
483.226
483.226
483.226
483.226
1,808.141
1,764.650
1,721.160
1,677.670
1,634.179
1,590.689
1,547.199
1,503.708
1,460.218
1,416.728
1,520.450

Note: These cash flows exclude fees paid to either IBJ or Goldman Sachs.
The initial yen principal received by Disney from IBJ are relevant only to the swap transaction and the calculation of an all-in
yen financing cost. By exchanging the initial yen for dollars in the spot market, Disney would eventually obtain new dollar
financing.
a

The principal amounts for the French utility are strictly notional; no net new funding would be obtained by the utility as a
result of the swap.
b

Exhibit 8 Summary of the French Utilitys Outstanding Publicly Traded Eurobondsas of Mid-1985
(excluding domestic issues, private placements, and term loans)
Life (Years)
Currency

Maturity

Original

20
50
100
100
125
225
100
100
150
200
500
300
400

May-71
Jun-77
Aug-76
Apr-79
Jun-80
Jun-85
Apr-83
May-80
Oct-82
Apr-82
Sep-84
Mar-85
Feb-84

May-86
Jun-87
Sep-86
Apr-86
Jul-88
Jul-95
May-93
May-90
Oct-87
Apr-89
Sep-94
Mar-97
Feb-99

15
10
10
7
8
10
10
10
5
7
10
12
15

75
60

Feb-85
Dec-82

Mar-95
Jan-93

10
10

9.7
7.5

9.750%
12.500%

9.37%
10.00%

Yen

20,000

Jan-85

Jan-95

10

9.6

6.875%

6.83%

DM
DM

200
100

Sep-83
Sep-82

Oct-93
Sep-92

10
10

8.3
7.2

8.375%
8.875%

7.12%
7.38%

ECU
ECU

Source: The Association of International Bond Dealers

Remaining

Coupon

Yield to
Maturity

Issue Date

Dollars
Dollars
Dollars
Dollars
Dollars
Dollars
Dollars
Dollars
Dollars
Dollars
Dollars
Dollars
Dollars

Amount
(millions)

0.8
8.500%
1.9
8.500%
1.2
8.900%
0.8
9.625%
3.0
10.000%
10.0
10.000%
7.8
11.125%
4.9
11.250%
2.3
12.750%
3.8
14.375%
9.2
0.000%
11.7 LIBOR+1/4
13.7 LIBOR+1/8

9.32%
9.30%
9.08%
9.09%
10.09%
10.80%
10.76%
10.84%
9.57%
10.45%
11.44%
9.66%
9.70%