Segment Information

3 Months Ended

Jan. 02, 2016

Segment Information

Segment Information

The operating segments reported below are the segments of the Company for which separate financial information is available and for which segment results are evaluated regularly by the Chief Executive Officer in deciding how to allocate resources and in assessing performance. Fiscal 2015 segment financial information has been restated to reflect the combination of the Consumer Products and Interactive segments into a single segment effective at the beginning of fiscal 2016.

Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees. Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions.

Equity in the income of investees is included in segment operating income as follows:

	Quarter Ended
	January 2, 2016			December 27, 2014
Media Networks
Cable Networks	$	214		$	242
Broadcasting	(72		)	(29		)
Equity in the income of investees included in segment operating income	142			213
Vice Gain	332			—
Other	—			(1		)
Total equity in the income of investees	$	474		$	212

During the three months ended January 2, 2016, the Company recognized its share of a net gain recorded by A&E Television Networks (A&E), a joint venture owned 50% by the Company, in connection with A&E’s acquisition of an interest in Vice Group Holding, Inc. (Vice) (Vice Gain). The Company’s $332 million share of the Vice Gain is recorded in "Equity in the income of investees" in the Condensed Consolidated Statement of Income but is not included in segment operating income. See Note 3 for further discussion of the transaction.

	Quarter Ended
	January 2, 2016		December 27, 2014
Revenues (1):
Media Networks	$	6,332	$	5,860
Parks and Resorts	4,281		3,910
Studio Entertainment	2,721		1,858
Consumer Products & Interactive Media	1,910		1,763
	$	15,244	$	13,391
Segment operating income(1):
Media Networks	$	1,412	$	1,495
Parks and Resorts	981		805
Studio Entertainment	1,014		544
Consumer Products & Interactive Media	860		701
	$	4,267	$	3,545

⁽¹⁾ Studio Entertainment segment revenues and operating income include an allocation of Consumer Products & Interactive Media revenues, which is meant to reflect royalties on sales of merchandise based on certain film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income totaled $262 million and $145 million for the quarters ended January 2, 2016 and December 27, 2014, respectively.

A reconciliation of segment operating income to income before income taxes is as follows:

	Quarter Ended
	January 2, 2016			December 27, 2014
Segment operating income	$	4,267		$	3,545
Corporate and unallocated shared expenses	(136		)	(125		)
Restructuring and impairment charges	(81		)	—
Interest expense, net	(24		)	(58		)
Vice Gain	332			—
Income before income taxes	$	4,358		$	3,362