XML 37 R28.htm IDEA: XBRL DOCUMENT v3.10.0.1
Description of the Business and Segment Information (Tables)
 12 Months Ended
Sep. 29, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Equity in Income of Investees by Segment
Equity in the income of investees included in segment operating income is as follows:
 
2018
 
2017
 
2016
Media Networks
$
711

 
$
766

 
$
779

Parks, Experiences and Consumer Products
(23
)
 
(25
)
 
(3
)
Direct-to-Consumer & International
(580
)
 
(421
)
 
(182
)
Equity in the income of investees included in segment operating income
108

 
320

 
594

Impairment of equity investments:
 
 
 
 
 
Vice
(157
)
 
—

 
—

Villages Nature
(53
)
 
—

 
—

Vice Gain
—

 
—

 
332

Equity in the income (loss) of investees, net
$
(102
)
 
$
320

 
$
926
Financial Information by Operating Segments
 
2018
 
2017
 
2016
Revenues
 
 
 
 
 
Media Networks
$
21,922

 
$
21,299

 
$
21,326

Parks, Experiences & Consumer Products
 
 
 
 
 
Third parties
25,257

 
23,516

 
22,998

Intersegment
(556
)
 
(492
)
 
(740
)
 
24,701

 
23,024

 
22,258

Studio Entertainment
 
 
 
 
 
Third parties
9,509

 
7,860

 
8,629

Intersegment
556

 
492

 
740

 
10,065

 
8,352

 
9,369

Direct-to-Consumer & International
3,414

 
3,075

 
3,306

Eliminations(1)
(668
)
 
(613
)
 
(627
)
 


 


 


Total consolidated revenues
$
59,434

 
$
55,137

 
$
55,632

Segment operating income
 
 
 
 
 
Media Networks
$
7,338

 
$
7,196

 
$
7,804

Parks, Experiences & Consumer Products
6,095

 
5,487

 
5,198

Studio Entertainment
3,004

 
2,363

 
2,767

Direct-to-Consumer & International
(738
)
 
(284
)
 
(38
)
Eliminations(1)
(10
)
 
13

 
(10
)
Total segment operating income(2)
$
15,689

 
$
14,775

 
$
15,721

 
2018
 
2017
 
2016
Reconciliation of segment operating income to income before income taxes
 
 
 
 
 
Segment operating income
$
15,689

 
$
14,775

 
$
15,721

Corporate and unallocated shared expenses
(744
)
 
(582
)
 
(640
)
Restructuring and impairment charges
(33
)
 
(98
)
 
(156
)
Other income, net
601

 
78

 
—

Interest expense, net
(574
)
 
(385
)
 
(260
)
Vice Gain(2)
—

 
—

 
332

Infinity Charge(3)
—

 
—

 
(129
)
Impairment of equity investments(2)
(210
)
 
—

 
—

Income before income taxes
$
14,729

 
$
13,788

 
$
14,868

Capital expenditures
 
 
 
 
 
Media Networks
 
 
 
 
 
Cable Networks
$
96

 
$
64

 
$
81

Broadcasting
107

 
67

 
73

Parks, Experiences & Consumer Products
 
 
 
 
 
Domestic
3,223

 
2,392

 
2,215

International
677

 
827

 
2,053

Studio Entertainment
96

 
85

 
86

Direct-to-Consumer & International
107

 
30

 
65

Corporate
159

 
158

 
200

Total capital expenditures
$
4,465

 
$
3,623

 
$
4,773

Depreciation expense
 
 
 
 
 
Media Networks
$
199

 
$
206

 
$
217

Parks, Experiences & Consumer Products
 
 
 
 
 
Domestic
1,449

 
1,371

 
1,314

International
768

 
679

 
468

Studio Entertainment
55

 
50

 
46

Direct-to-Consumer & International
106

 
74

 
61

Corporate
181

 
206

 
214

Total depreciation expense
$
2,758

 
$
2,586

 
$
2,320

Amortization of intangible assets
 
 
 
 
 
Media Networks
$
—

 
$
—

 
$
2

Parks, Experiences & Consumer Products
110

 
111

 
107

Studio Entertainment
64

 
65

 
74

Direct-to-Consumer & International
79

 
20

 
24

Total amortization of intangible assets
$
253

 
$
196

 
$
207


 
2018
 
2017
 
2016
Identifiable assets(4)
 
 
 
 
 
Media Networks
$
14,216

 
$
13,660

 
 
Parks, Experiences & Consumer Products
34,684

 
33,755

 
 
Studio Entertainment
10,197

 
9,672

 
 
Direct-to-Consumer & International
3,558

 
4,083

 
 
Corporate(5)
4,977

 
3,475

 
 
Eliminations
(303
)
 
(282
)
 
 
Goodwill(6)
31,269

 
31,426

 
 
Total consolidated assets
$
98,598

 
$
95,789

 
 
Supplemental revenue data
 
 
 
 
 
Affiliate fees
$
13,279

 
$
12,659

 
$
12,259

Advertising
7,904

 
8,237

 
8,649

Retail merchandise, food and beverage
6,923

 
6,433

 
6,116

Theme park admissions
7,183

 
6,502

 
5,900

Revenues
 
 
 
 
 
United States and Canada
$
45,038

 
$
41,881

 
$
42,616

Europe
7,026

 
6,541

 
6,714

Asia Pacific
5,531

 
5,075

 
4,582

Latin America and Other
1,839

 
1,640

 
1,720

 
$
59,434

 
$
55,137

 
$
55,632

Segment operating income
 
 
 
 
 
United States and Canada
$
11,396

 
$
10,962

 
$
12,139

Europe
1,922

 
1,812

 
1,815

Asia Pacific
1,869

 
1,626

 
1,324

Latin America and Other
502

 
375

 
443

 
$
15,689

 
$
14,775


$
15,721

Long-lived assets(7)
 
 
 
 
 
United States and Canada
$
65,245

 
$
61,215

 
 
Europe
6,275

 
8,208

 
 
Asia Pacific
7,775

 
8,196

 
 
Latin America and Other
131

 
155

 
 
 
$
79,426

 
$
77,774

 
 
(1) 
Intersegment content transaction are as follows: 
 
2018
 
2017
 
2016
Revenues
 
 
 
 
 
Studio Entertainment:
 
 
 
 
 
Content transactions with Media Networks
$
(169
)
 
$
(137
)
 
$
(159
)
Content transactions with Direct-to-Consumer & International
(28
)
 
(22
)
 
(11
)
Media Networks:
 
 
 
 
 
Content transactions with Direct-to-Consumer & International
(471
)
 
(454
)
 
(457
)
Total
$
(668
)
 
$
(613
)
 
$
(627
)
 
 
 
 
 
 
Operating Income
 
 
 
 
 
Studio Entertainment:
 
 
 
 
 
Content transactions with Media Networks
$
(8
)
 
$
15

 
$
(10
)
Media Networks:
 
 
 
 
 
Content transactions with Direct-to-Consumer & International
(2
)
 
(2
)
 
—

Total
$
(10
)
 
$
13

 
$
(10
)

(2) 
Equity in the income of investees included in segment operating income is as follows:
 
2018
 
2017
 
2016
Media Networks
$
711

 
$
766

 
$
779

Parks, Experiences and Consumer Products
(23
)
 
(25
)
 
(3
)
Direct-to-Consumer & International
(580
)
 
(421
)
 
(182
)
Equity in the income of investees included in segment operating income
108

 
320

 
594

Impairment of equity investments:
 
 
 
 
 
Vice
(157
)
 
—

 
—

Villages Nature
(53
)
 
—

 
—

Vice Gain
—

 
—

 
332

Equity in the income (loss) of investees, net
$
(102
)
 
$
320

 
$
926


During fiscal 2018, the Company recorded impairments of Vice and Villages Nature equity method investments. During fiscal 2016, the Company recognized its share of a net gain recorded by A+E, a joint venture owned 50% by the Company, in connection with A+E’s acquisition of an interest in Vice (Vice Gain). These items were recorded in “Equity in the income (loss) of investees, net” in the Consolidated Statement of Income but were not included in segment operating income.
(3) 
In fiscal 2016, the Company discontinued its Infinity console game business, which is reported in the Parks, Experiences & Consumer Products segment, and recorded a charge (Infinity 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 Consolidated Statement of Income.
(4) 
Equity method investments included in identifiable assets by segment are as follows:
 
2018
 
2017
Media Networks
$
2,430

 
$
2,505

Parks, Experiences & Consumer Products
1

 
70

Studio Entertainment
1

 
1

Direct-to-Consumer & International
320

 
493

Corporate
16

 
18

 
$
2,768

 
$
3,087


Intangible assets included in identifiable assets by segment are as follows:
 
2018
 
2017
Media Networks
$
1,546

 
$
1,547

Parks, Experiences & Consumer Products
3,167

 
3,277

Studio Entertainment
1,479

 
1,543

Direct-to-Consumer & International
490

 
498

Corporate
130

 
130

 
$
6,812

 
$
6,995


(5) 
Primarily fixed assets and cash and cash equivalents.
(6) 
See Note 3 for goodwill by segment.
(7) 
Long-lived assets are total assets less the following: current assets, long-term receivables, deferred taxes, financial investments and derivatives.