Segment Information

3 Months Ended

Dec. 31, 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.

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
	December 31, 2016			January 2, 2016
Media Networks	$	119		$	142
Parks and Resorts	(2		)	—
Consumer Products & Interactive Media	1			—
Equity in the income of investees included in segment operating income	118			142
Vice Gain	—			332
Total equity in the income of investees	$	118		$	474

During the quarter 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.

Segment revenues and segment operating income are as follows:

	Quarter Ended
	December 31, 2016		January 2, 2016
Revenues (1):
Media Networks	$	6,233	$	6,332
Parks and Resorts	4,555		4,281
Studio Entertainment	2,520		2,721
Consumer Products & Interactive Media	1,476		1,910
	$	14,784	$	15,244
Segment operating income(1):
Media Networks	$	1,362	$	1,412
Parks and Resorts	1,110		981
Studio Entertainment	842		1,014
Consumer Products & Interactive Media	642		860
	$	3,956	$	4,267

⁽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 $181 million and $262 million for the quarters ended December 31, 2016 and January 2, 2016, respectively.

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

	Quarter Ended
	December 31, 2016			January 2, 2016
Segment operating income	$	3,956		$	4,267
Corporate and unallocated shared expenses	(132		)	(136		)
Restructuring and impairment charges	—			(81		)
Interest expense, net	(99		)	(24		)
Vice Gain	—			332
Income before income taxes	$	3,725		$	4,358