Disneyland Reopening Speculation Superthread

[disneychrista]

In that spirit, I wonder when DLR reopens what type of hours they will have.

I can see limited hours at both parks. I can see DL 10am - 8pm & 10am - 6pm for DCA for weekends and maybe an hour or two less during the week.

 

[theluckyrabbit]

I can see limited hours at both parks. I can see DL 10am - 8pm & 10am - 6pm for DCA for weekends and maybe an hour or two less during the week.

And very possibly staggered opening hours to lessen the crowds with parking, bag/temp check, and at the turnstiles.

 

[TikiTikiFan]

I would imagine this would change once the holidays arrive though... gotta be able to see those beautiful Christmas lights. Even with no parades or fireworks, I would be really surprised if they didn't decorate for the holidays. And if they don't, well buh bye to my rescehduled December trip haha. That'd be a hard dealbreaker for me.

 

[disneychrista]

I would imagine this would change once the holidays arrive though...

I'm not expecting the parks to be open for the "Holidays" this year.

And very possibly staggered opening hours to lessen the crowds with parking, bag/temp check, and at the turnstiles.

True. So maybe 11am - 7pm for DCA, with DL staying 10am - 8pm. Or 9am - 7pm for DL and DCA 10am - 6pm.

 

[wingednike]

I've heard that Disney used to be closed at least one or two days a week and closed early-ish (private events such as company nights were held then).
Maybe Disney will follow that example. I think they would have to significantly lower their entrance price if they do that, so that may be a deterrent for the higher ups.

 

[gottalovepluto]

In that spirit, I wonder when DLR reopens what type of hours they will have. WDW’s hours have been cut so short and today they announced even shorter hours for September.

I love the parks at night... Even without shows, just strolling through New Orleans Square or Pixar Pier holds such happy feels for me. I wonder if the larger AP crowd, with more tendency to head down later in the day, might give them cause to have later hours?

The problem at WDW is after you get an afternoon break there is very little draw to transit back to the same park for at most an hour or two of fun- when you should be eating dinner anyway.

With DLR being such a different setup I hope we get later hours and park hopping. While the WDW rumor thread has discussed Disney has indicated state quarantines and FL cases are to blame for lack of attendance I believe a good chunk is their lack of offerings. WDW Disney Springs is bonkers at night. Therefore there is demand for something- Disney just didn’t offer enough to get the people into the parks at night spending.

I hope DLR takes a different approach. Allowing park hopping and hours that go later in the evening I think they could see a dinner crowd + post dinner rides/merchandise sales in their parks. (I think park hopping is key, or DCA could be dead by dark when everyone has done everything. Keep it open and DCA can snag those tired of DL, wanting a nice boozy beverage before/with/after dinner, or to ride roller coasters and Cars at night.) I guess why I’m saying is WDW took the package and offered one bare bones piece to everyone. I think if DLR offers their whole package, sans meets and shows, they’ll see a better response.

 

[gottalovepluto]

I think for both costs and safety. Hard to police policy in the dark. Higher risk for CMs

Just costs. No part of a Disney park is too dark to police COVID policies, that level of darkness would be a security threat pre-COVID. Attendance at WDW is so bad they’re on their second week of lifting CM block outs at all parks except DHS. This is cost cutting plain and simple.

 

[gottalovepluto]

I've heard that Disney used to be closed at least one or two days a week and closed early-ish (private events such as company nights were held then).
Maybe Disney will follow that example. I think they would have to significantly lower their entrance price if they do that, so that may be a deterrent for the higher ups.

No prices are dropping. They have dropped tons of stuff from their FL parks and prices haven’t been adjusted to account for it. Well, technically I’m wrong. Some food and bev prices have adjusted up

 

[gottalovepluto]

I would imagine this would change once the holidays arrive though... gotta be able to see those beautiful Christmas lights. Even with no parades or fireworks, I would be really surprised if they didn't decorate for the holidays. And if they don't, well buh bye to my rescehduled December trip haha. That'd be a hard dealbreaker for me.

I’m not freezing my rear off to bask in the holiday joy of DLR if there is no IASW or HM holiday overlay. Deal. Breaker.

See, like many in these parts of the DIS, I’m a Californian. If you want me outdoors and it’s under 65 degrees I have REQUIREMENTS.

 

[TikiTikiFan]

I’m not freezing my rear off to bask in the holiday joy of DLR if there is no IASW or HM holiday overlay. Deal. Breaker.

See, like many in these parts of the DIS, I’m a Californian. If you want me outdoors and it’s under 65 degrees I have REQUIREMENTS.

I’m with ya and I’m not from CA. We froze last year and it took a strong love of Disney combined with my Clark Griswold level of holiday obsession to stay late at night to enjoy all the things.

Dude could you imagine how depressing DL would be with no overlays or lit up castle at that time of year? Like man, just cancel everything if that’s the case. Cancel. it. all. I’m also a little nutty about how much I love Disney that time of year so I might not be the best test subject for that idea.

 

[Halloweenqueen]

I told my husband no Small World Holiday and we are out. This has really brought to light how much we live the atmosphere, entertainment, and fireworks. Love the attractions, but will wait if the skip the holidays.

 

[montreid]

We really missed the small world lights when it was under renovation. Holiday evenings are so nice.

 

[mentos]

So how’s this for speculation....Disney has a quirky tax incentive to lose as much money as it can in 2020 before attempting to return to profitability in 2021. There is no compelling financial rush to reopen parks/other operations IMO. They’ll want to book as many expenses in 2020 as possible. I still think they’ll open before the end of the year, though.

https://www.wsj.com/articles/losing...o52qu8vh6di0gr4&reflink=article_copyURL_share
Summary: Disney can apply losses in 2020 against profits made in the previous 5 years (aka record profits) and using the previous 35% top marginal rate.

Each $1M loss can be offset up to $350,000 (vs $210,000 in 2021).

full article below if you’re interested (no specific Disney info in it)

Losing Money Is a Winning Pandemic Tax Strategy for Some Companies
Rules designed to help struggling companies conserve cash and get refunds may also encourage tax arbitrage
By and
Aug. 8, 2020 5:30 am ET

FedEx, which booked a $71 million benefit from tax-rate differences, is seeking IRS approval for an accounting change that would add $130 million.
Photo: South China Morning Post via Getty Images
WASHINGTON—There’s a simple rule for corporate tax planning in 2020: If you’re going to lose money, lose a lot of money.

That’s because companies can now use losses incurred before and during the pandemic to offset up to five years of past profits. What makes this moment particularly attractive: Congress is letting companies get refunds of taxes they paid at the 35% corporate rate that existed before 2018 rather than at today’s 21% rate.
Companies can generate big losses now by packing deductions into 2020 and pushing income into the future. Nearly two dozen large publicly traded companies are already reporting more than $2 billion in combined tax benefits using this rate arbitrage, according to a review of securities filings. Tax advisers and experts expect more soon.
“We’re going to see some of the biggest firms in the U.S. economy benefit,” said Rebecca Lester, a Stanford University accounting professor.
For corporations with past profits, current losses and little risk of insolvency, the math is compelling. A $1 million deduction taken in 2020 is worth up to $350,000 in federal tax savings. The same $1 million deduction taken in 2021 is worth at most $210,000.
Companies are already claiming benefits related to 2018 and 2019 losses, and they have the rest of this year to maximize 2020 losses before the opportunity begins to expire. Strategies include buying deductible equipment, accelerating bonuses, contributing to pension plans and exploring accounting-method changes.
FedEx Corp., which booked a $71 million benefit from tax-rate differences, is seeking Internal Revenue Service approval for an accounting change that would add $130 million, according to a securities filing. FedEx reported $4.9 billion in cash and equivalents on its balance sheet on May 31, more than double what it had a year earlier.
Extended Stay America Inc., a hotel chain with a traditional “C corporation” that pays corporate taxes and a real-estate investment trust where taxes are paid by investors, is trying to concentrate any losses in the corporation.
“You can actually carry back and essentially receive a refund and at the higher tax rates that applied in the past five years,” Brian Nicholson, chief financial officer, said at a June conference. “We are incented to try to keep our C corp’s taxable income as low as possible.”
Moelis & Co., an investment bank, recorded $14 million in income-tax benefits, citing the rate difference.
“There are some substantial benefits that are coming as a result of some tax timing differences that create taxable losses,” Joseph Simon, chief financial officer, told analysts in July.
Representatives for FedEx, Extended Stay America and Moelis declined to comment beyond filings and public comments.
Other companies, including some in struggling industries, are recording benefits from the rate difference.Marathon Petroleum Corp. said it would get a benefit to income of $309 million.Assurant Inc., an insurance company, recorded $79 million benefit and JetBlue Airways Corp. reported $35 million.
In the past, accelerating deductions and postponing revenue had modest effects. That is because moving income from one year to another doesn’t do much when tax rates are stable and interest rates are low.
For large public companies and for their closely held counterparts, the tax-rate gap changes everything.
“These are all strategies that have been available, tried-and-true tax strategies,” said John Werlhof, a principal at CliftonLarsonAllen LLP in Roseville, Calif., who represents small and midsize companies. “All this does is raise the stakes.”
The tax-arbitrage opportunity stems from the March economic relief law. Until then, because of changes Congress made in 2017, losses couldn’t be carried back but could be carried forward indefinitely.
The March law changed rules for companies with net operating losses. Lawmakers wanted to help cash-strapped companies get money quickly and they imposed no restrictions on how the money can be used. So losses from 2018, 2019 and 2020 can now be carried back for up to five years.
Companies immediately began asking for refunds based on 2018 and 2019 losses and examining 2020 finances to see what deductions they could take.
The tax break has come under attack. In May, the House passed a bill that would prevent companies using losses from taking advantage of rate differences. That proposal’s fate is tied up in broader negotiations over further pandemic relief spending.
“The appetite for corporate tax breaks is truly insatiable,” said Rep. Lloyd Doggett (D., Texas), who wants to repeal the rate-arbitrage opportunity. “Now, it’s like time travel.”
Mr. Doggett said he understands companies’ need for liquidity during a recession but argues that the March provision isn’t the best way to do so. A tax break based on current losses and past profits can help some companies that need quick cash to survive, but it can also provide money to companies that don’t.
Even many successful businesses post losses occasionally, meaning the provision is likely to benefit a range of companies, Ms. Lester said.
Firms are now planning strategies for the next few months, such as buying equipment. The 2017 tax law lets companies deduct those costs from taxable income immediately instead of over time. Companies now have an incentive to accelerate such spending to generate losses. The tax break could make a previously unprofitable project worthwhile.
“If I’m going to do something in the next 12 months anyway, I just made it [14 percentage points] better to do it now,” said Bret Wells, a University of Houston law professor. “That’s a pretty high rate of return.”
But companies should still think about whether any investment makes business sense, especially during a crisis, said Nick Gruidl, a partner at accounting firm RSM US LLP.
Tax advisers are urging their clients to consider accounting strategies they might not have otherwise employed.
That can include deducting prepaid expenses such as insurance contracts up front instead of over time, Mr. Werlhof said. Companies can change how they account for delayed revenue, for example, deferring recognition of gift-card income from when they are sold to when they are redeemed.
Other companies can consider writing off receivables if they determine customers won’t ultimately pay, said Lewis Taub of Berkowitz Pollack Brant Advisors + CPAs in New York.
Some business owners should focus less on getting small-business loans and more on reclaiming past income tax payments, he said.
“You want some real money?” Mr. Taub said. “Go back and get that million dollars you paid five years ago.”
Write to Richard Rubin at richard.rubin@wsj.com and Theo Francis at theo.francis@wsj.com

 

[Karin1984]

We love the parks at night, too! I noticed that WDW had announced shorter hours. For cost cutting (and maybe safety, too), that isn't too surprising right now. Someone had posted that the end of daylight savings would be welcome so that they could enjoy darker evenings in the parks even with earlier hours.

Same for Disneyland Paris. Normally the park is open till 11 in the summer, now till 8.
I wonder if it has also to do with, no entertainment, no characters and shorter lines, makes that people have time left to do the entire park in one day. Will staying open for three more hours bring in that more money?
Also normally certain rides in Fantasyland have to close early due to setting up for the fireworks, now they can stay open till close.

 

[wingednike]

Agree that they won't drop prices. Which is why they will have a struggle when they do re-open. Good or bad, DLR seems to have an all or nothing approach.

They really should do half-day tickets with a hard break mid-day to clean the parks and switch staff for the evening crowd.

 

[TikiTikiFan]

So how’s this for speculation....Disney has a quirky tax incentive to lose as much money as it can in 2020 before attempting to return to profitability in 2021. There is no compelling financial rush to reopen parks/other operations IMO. They’ll want to book as many expenses in 2020 as possible. I still think they’ll open before the end of the year, though.

https://www.wsj.com/articles/losing...o52qu8vh6di0gr4&reflink=article_copyURL_share
Summary: Disney can apply losses in 2020 against profits made in the previous 5 years (aka record profits) and using the previous 35% top marginal rate.

Each $1M loss can be offset up to $350,000 (vs $210,000 in 2021).

full article below if you’re interested (no specific Disney info in it)

That’s really interesting and honestly makes a lot of sense.

 

[montreid]

Summary: Disney can apply losses in 2020 against profits made in the previous 5 years (aka record profits) and using the previous 35% top marginal rate.

Each $1M loss can be offset up to $350,000 (vs $210,000 in 2021).

Interesting.
Looking through the write-down lens; This would explain their strategy of keeping prices unchanged and setting any long lasting changes and precedence into 2021.

Same reason why I don't see 1/2 day tickets either.

It would be interesting though to SPEED up ongoing projects to cost them out for 2020 - like Tron and Avengers. Or maybe even the long debated magicband to DLR.

In other news - County bumped back up above cutoff metrics to get off the state's watchlist: 104 per 100,000 and 8.1%

 

[disneychrista]

Summary: Disney can apply losses in 2020 against profits made in the previous 5 years (aka record profits) and using the previous 35% top marginal rate.

Let's not forget that Disneyland is not closed because Disney doesn't want it open. It is closed because the State of California says it can't be.

Not saying they won't benefit from a tax break due to the loses but most companies, I would assume, would rather pay tax on profit vs saving later due to loses.

 

[StarWarsNerd24]

WDW doesn’t seem to be actively informing cast members when another coworker tests positive.

If you are talking about releasing the name of the specific person that tested positive that would be a big no no, if you are talking about a general someone has tested positive then yes that seems less then cool.

 

[wingednike]

Knotts is still closed but has found a way to operate that is allowed by the State.