Disney to Write Off Investment in United Air Leases
By Kim Chipman
12/23 16:59
Burbank, CA (Bloomberg) -- Walt Disney Co. will write off its $114 million investment in aircraft leveraged leases with UAL Corp.'s United Airlines, resulting in costs of $83 million, or 4 cents a share, in the quarter ending Dec. 31.
Based on United's recent bankruptcy filing, Disney believes it probably won't recover this investment, the second-largest U.S. media and entertainment company said in a statement. United is the world's No. 2 air carrier.
The company had said in a Dec. 4 filing with the Securities and Exchange Commission that United Airlines' financial situation could result in a writedown. Earlier this month, Disney cut by 21 percent its most recent quarterly earnings after ticket sales for its film ``Treasure Planet'' were lower than expected.
Disney, owner of the ABC and ESPN television networks, is forecast to earn 16 cents a share in the fiscal first quarter ending next week, up from 15 cents in the same period a year earlier, according to the average estimate of analysts polled by Thomson First Call.
Disney still has investments in aircraft leverage leases with Delta Air Lines Inc. and FedEx Corp. They total about $175 million, Disney said.
By Kim Chipman
12/23 16:59
Burbank, CA (Bloomberg) -- Walt Disney Co. will write off its $114 million investment in aircraft leveraged leases with UAL Corp.'s United Airlines, resulting in costs of $83 million, or 4 cents a share, in the quarter ending Dec. 31.
Based on United's recent bankruptcy filing, Disney believes it probably won't recover this investment, the second-largest U.S. media and entertainment company said in a statement. United is the world's No. 2 air carrier.
The company had said in a Dec. 4 filing with the Securities and Exchange Commission that United Airlines' financial situation could result in a writedown. Earlier this month, Disney cut by 21 percent its most recent quarterly earnings after ticket sales for its film ``Treasure Planet'' were lower than expected.
Disney, owner of the ABC and ESPN television networks, is forecast to earn 16 cents a share in the fiscal first quarter ending next week, up from 15 cents in the same period a year earlier, according to the average estimate of analysts polled by Thomson First Call.
Disney still has investments in aircraft leverage leases with Delta Air Lines Inc. and FedEx Corp. They total about $175 million, Disney said.