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Segment Information
 9 Months Ended
Jul. 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 income/(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
 
Nine Months Ended
 
July 2,
2016
 
June 27,
2015
 
July 2,
2016
 
June 27,
2015
Media Networks
 
 
 
 
 
 
 
Cable Networks
$
197

 
$
220

 
$
586

 
$
685

Broadcasting
(43
)
 
(8
)
 
(139
)
 
(55
)
Equity in the income of investees included in segment operating income
154

 
212

 
$
447

 
$
630

Vice Gain
—

 
—

 
332

 
—

Other
(2
)
 
—

 
(3
)
 
—

Total equity in the income of investees
$
152

 
$
212

 
$
776

 
$
630


During the nine months ended July 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
 
Nine Months Ended
 
July 2,
2016
 
June 27,
2015
 
July 2,
2016
 
June 27,
2015
Revenues (1):
 
 
 
 
 
 
 
Media Networks
$
5,906

 
$
5,768

 
$
18,031

 
$
17,438

Parks and Resorts
4,379

 
4,131

 
12,588

 
11,801

Studio Entertainment
2,847

 
2,040

 
7,630

 
5,583

Consumer Products & Interactive Media
1,145

 
1,162

 
4,241

 
4,131

 
$
14,277

 
$
13,101

 
$
42,490

 
$
38,953

Segment operating income (1):
 
 
 
 
 
 
 
Media Networks
$
2,372

 
$
2,378

 
$
6,083

 
$
5,974

Parks and Resorts
994

 
922

 
2,599

 
2,293

Studio Entertainment
766

 
472

 
2,322

 
1,443

Consumer Products & Interactive Media
324

 
348

 
1,541

 
1,437

 
$
4,456

 
$
4,120

 
$
12,545

 
$
11,147


(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 $131 million and $109 million for the quarters ended July 2, 2016 and June 27, 2015, respectively, and $573 million and $387 million for the nine months ended July 2, 2016 and June 27, 2015, respectively.
A reconciliation of segment operating income to income before income taxes is as follows:
 
Quarter Ended
 
Nine Months Ended
 
July 2,
2016
 
June 27,
2015
 
July 2,
2016
 
June 27,
2015
Segment operating income
$
4,456

 
$
4,120

 
$
12,545

 
$
11,147

Corporate and unallocated shared expenses
(159
)
 
(146
)
 
(457
)
 
(441
)
Restructuring and impairment charges
(44
)
 
—

 
(125
)
 
—

Interest expense, net
(70
)
 
(12
)
 
(161
)
 
(62
)
Vice Gain
—

 
—

 
332

 
—

Infinity Charge(1)
—

 
—

 
(147
)
 
—

Income before income taxes
$
4,183

 
$
3,962

 
$
11,987

 
$
10,644


 
(1)
In the second quarter of fiscal 2016, the Company decided to discontinue its Infinity console game business, which is reported in the Consumer Products & Interactive Media segment, and recorded a charge primarily to write down inventory. The charge also included severance and other asset impairments. The charge was reported in Cost of products in the Condensed Consolidated Statement of Income.