XML 24 R10.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Information
 9 Months Ended
Jun. 30, 2018
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 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, other income, 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
 
Nine Months Ended
 
June 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
Media Networks
$
78

 
$
127

 
$
141

 
$
334

Parks and Resorts
(5
)
 
(3
)
 
(19
)
 
(8
)
Consumer Products & Interactive Media
—

 
—

 
—

 
1

Equity in the income of investees included in segment operating income
$
73

 
$
124

 
$
122

 
$
327


Segment revenues and segment operating income are as follows:
 
Quarter Ended
 
Nine Months Ended
 
June 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
Revenues (1):
 
 
 
 
 
 
 
Media Networks
$
6,156


$
5,866


$
18,537


$
18,045

Parks and Resorts
5,193


4,894


15,226


13,748

Studio Entertainment
2,878


2,393


7,836


6,947

Consumer Products & Interactive Media
1,001


1,085


3,528


3,618

 
$
15,228

 
$
14,238

 
$
45,127

 
$
42,358

Segment operating income (1):
 
 
 
 
 
 
 
Media Networks
$
1,822

 
$
1,842

 
$
5,097

 
$
5,427

Parks and Resorts
1,339

 
1,168

 
3,640

 
3,028

Studio Entertainment
708

 
639

 
2,384

 
2,137

Consumer Products & Interactive Media
324

 
362

 
1,295

 
1,371

 
$
4,193

 
$
4,011

 
$
12,416

 
$
11,963

(1) 
Studio Entertainment 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 film properties. The increase to Studio Entertainment revenues and operating income and corresponding decrease to Consumer Products & Interactive Media revenues and operating income was $119 million and $103 million for the quarters ended June 30, 2018 and July 1, 2017, respectively, and $426 million and $391 million for the nine months ended June 30, 2018 and July 1, 2017, respectively.
A reconciliation of segment operating income to income before income taxes is as follows:
 
Quarter Ended
 
Nine Months Ended
 
June 30,
2018
 
July 1,
2017
 
June 30,
2018
 
July 1,
2017
Segment operating income
$
4,193

 
$
4,011

 
$
12,416

 
$
11,963

Corporate and unallocated shared expenses
(196
)
 
(99
)
 
(540
)
 
(392
)
Restructuring and impairment charges
—

 
—

 
(28
)
 
—

Other income/(expense), net
—

 
(177
)
 
94

 
(177
)
Interest expense, net
(143
)
 
(117
)
 
(415
)
 
(300
)
Income before income taxes
$
3,854

 
$
3,618

 
$
11,527

 
$
11,094


In March 2018, the Company announced a strategic reorganization of its businesses into four operating segments: the newly-formed Direct-to-Consumer and International; the combined Parks, Experiences and Consumer Products; Media Networks; and Studio Entertainment. The Company is in the process of modifying internal and external reporting processes and systems to accommodate the new structure and expects to transition to the new segment reporting structure by the beginning of fiscal 2019. We continue to report operating results to our chief operating decision maker using our current operating segments.