Cost Estimate For All These Projects?

[SirLink]

Minus SWL and TSL, capex for WDW park projects announced on Saturday plus the gondola is over 1.9 billion.

With more to come.

I don't like some of the decisions but it's not an insignificant outlay.

Is the 'more to come' to be spent before 2021 though that is the real question?

 

[marni1971]

Is the 'more to come' to be spent before 2021 though that is the real question?

At present, some of it, yes.

 

[peter11435]

Yes.

Are those fountains seen in the water at the bottom of the art actually expected to be part of the project?

 

[marni1971]

Are those fountains seen in the water at the bottom of the art actually expected to be part of the project?

My own honest opinion? Yes, but in the current lakes.

 

[dreamscometrue]

The below provides some historical perspective on Disney spending approximately $3B over 5 years ($600M per year).

View attachment 215938

What's going on with the graph when the bars are in the negative region, in the early to mid 2000s, for example? Does that mean little to no capital expenditures, but significant depreciation of assets?

 

[UpAllNight]

These projects I imagine will pretty much pay for themselves...and rather quickly too,so I can see Disney going a lot further with their investment, if they're in the mood. Chapek seems like he wants to make his mark, where Staggs had no intent to do so.

2 new hotels, increased prices at Pop, Art and CB due to Gondolas, Star Wars, Guardians merch...they're going to be rolling in it.

 

[danlb_2000]

What's going on with the graph when the bars are in the negative region, in the early to mid 2000s, for example? Does that mean little to no capital expenditures, but significant depreciation of assets?

I asked this him once before...

Capital Expenditure (capex) is the purchase of an asset that will benefit a company for several years. Capex can be lumped into two broad categories, maintenance and investment (or growth).

Disney replacing an old bus with a new bus can be thought of as maintenance capex. Disney adding a new bus to increase the size of its fleet can be thought of as growth capex.

When Disney buys that bus, its purchase price does not impact profit immediately. Instead, the cost of the purchase is spread out over the number of years it will be used. This is called "depreciation". It's this depreciation that impacts profit.

Let's say that a Disney bus costs $500K and Disney intends to keep that bus for 10 years. That $500K does not reduce profit by $500K the year it is purchased. Instead, that bus affects profit for 10 years by $50K each year in the form of depreciation. (Disney uses the straight-line method to depreciate assets.)

At the end of 10 years, Disney should sell that bus and buy a new one. However, management types looking to save a buck might decide to keep that bus for 11, 12, or even 13 years. Instead of you and I riding a new bus, we are riding an 11, 12, or 13-year old bus.

Without detailed disclosures, a rule-of-thumb is to estimate maintenance capex to be equal to depreciation. Amounts spent below depreciation are (or should be) for maintenance. Amounts spent above depreciation are for growth (or investment).

Investment (or growth) capex can be negative when depreciation is greater than total capex.

 

[the.dreamfinder]

Yes.

How do the more expensive version of the spine redo differ from the plan?

 

[golden james]

Exactly but I don't think the third park would open that soon.

so your saying aswell as nintendo we should possibly expect a 3rd park. Is this on the wet & wild site??

 

[Mike S]

so your saying aswell as nintendo we should possibly expect a 3rd park. Is this on the wet & wild site??

No. New land that they bought. It's pretty obvious that's what it's for. It's over 400 acres.

 

[golden james]

No. New land that they bought. It's pretty obvious that's what it's for. It's over 400 acres.

400? So they are going for a 3rd gate then? Is the w&w site destined for resorts??

 

[Mike S]

400? So they are going for a 3rd gate then? Is the w&w site destined for resorts??

Yes as far as I know from what I've read insiders say.

 

[marni1971]

How do the more expensive version of the spine redo differ from the plan?

I'll let you know once it's settled.

 

[gamblepsu]

Shanghai is 'done' so they need to keep spending that more somewhere! (I do think there is a tiny bit of truth in that though)

 

[OliveMcFly]

View attachment 215802

First thing that popped in to my head when I read the title. LOL

 

[MisterPenguin]

The below provides some historical perspective on Disney spending approximately $3B over 5 years ($600M per year).

View attachment 215938


From 1971 to 2001, the annual average domestic Parks & Resorts investment was $665M in inflation-adjusted dollars.

Excluding two cruise ships, the average has been about $200M in inflation-adjusted dollars since 2002.

A jump from $200M to $600M represents an appreciable investment in WDW and DLR, close to Disney's historical average prior to 2002.

In the first half of fiscal 2017, Disney spent $443M in growth capex. That includes the cash to finish Pandora plus all the work going on at DLR, DHS, CSR, and CBR.

Starting with the opening of Pandora earlier this year, the next 5 years represent the most exciting time for WDW fans since the opening of DAK in 1998. For those of you too young to remember, this should give you a sense of the excitement surrounding WDW in the 1970s, 1980s, and 1990s.

Hi, @ParentsOf4! Could you help me understand where your figures come from? When I look at the Q4 year's end reports, I see much higher domestic Capex...

Thanks for all your charts!

 

[ParentsOf4]

Hi, @ParentsOf4! Could you help me understand where your figures come from? When I look at the Q4 year's end reports, I see much higher domestic Capex...

View attachment 286137

Thanks for all your charts!

You've circled total capital expenditures (capex). Capex has two major components: growth and maintenance.

The following posts should help you understand the difference:

https://forums.wdwmagic.com/threads...spent-on-my-magic-in-2013.916093/post-7335455

https://forums.wdwmagic.com/threads/a-spirited-perfect-ten.894588/post-6981137

https://forums.wdwmagic.com/threads...est-investment-since-1998.922682/post-7489630

 

[Thelazer]

What's it for?

It's NOT for Nintendo.

Nintendo is just a distraction.

 

[HauntedMansionFLA]

It's NOT for Nintendo.

Nintendo is just a distraction.

What could top a Nintendo land?

 

[MisterPenguin]

What could top a Nintendo land?

A Sega Genesis Land.