| shikamaru317 said: If I'm reading that right they lost $147m on Disney Infinity in the last 6 months. I see why they shut it down, that's a big loss. |
They didn't "lose" $147 million in the sense that $147 million of cash at Disney has been spent paying bills or debts.
Rather, the $147 million consists of impairment charges in The Walt Disney Company's accounting. The total amount is comprised of three sources:
1) It's primarily due to an inventory write-down (they had a whole bunch of inventory on their books as valued at a set amount assuming it will get sold-in at a decent price point, and now that inventory is going to be much more unprofitable because Disney is going to offer steep clearances to offload the inventory that's still sellable...so its future worth has depreciated significantly and its value on the books needs to reflect that)
2) Anticipated severance pay to the 300+ employees who no longer have a job at Disney
3) Other ancillary asset impairments related to the discontinuation of their console games business
