Before she turned 2 my daughter told me "Buttons the bear broke his arm just like Woody." The button that held one of the arms onto her bear "Buttons" had fallen off. The entire arm came off, just like when Woody's arm pops a seam in Toy Story 2. I'm pretty sure she understood what she saw, and related it to the real world. We typically keep her TV viewing commercial free though, and limited to special times, or times when we wouldn't be able to interact with her anyway, like shower time.