Our operating segments report separate financial information, which is evaluated regularly by the Chief Executive Officer in order to decide how to allocate resources and to assess performance. The following are the Company’s operating segments:

Segment operating results reflect earnings before corporate and unallocated shared expenses, restructuring and impairment charges, net other income, net interest expense, income taxes and noncontrolling interests. Segment operating income includes equity in the income of investees and excludes impairments of certain equity investments and purchase accounting amortization of TFCF and Hulu assets (i.e. intangible assets and the fair value step-up for film and television costs) recognized in connection with the TFCF acquisition. Corporate and unallocated shared expenses principally consist of corporate functions, executive management and certain unallocated administrative support functions.

Segment operating results include allocations of certain costs, including information technology, pension, legal and other shared services costs, which are allocated based on metrics designed to correlate with consumption. These allocations are agreed-upon amounts between the businesses and may differ from amounts that would be negotiated in arm’s length transactions.

Intersegment content transactions are presented “gross” (i.e. the segment producing the content reports revenue and profit from intersegment transactions, and the required eliminations are reported on a separate “Eliminations” line when presenting a summary of our segment results). Other intersegment transactions are reported “Net” (i.e. revenue from another segment is recorded as a reduction of costs). Studio Entertainment revenues and operating income include an allocation of Parks, Experiences and Products revenues, which is meant to reflect royalties on revenue generated by Parks, Experiences and Products on merchandise based on intellectual property from Studio Entertainment films.

As it relates to film and television content that is produced by our Media Networks and Studio Entertainment segments that will be used on our direct-to-consumer (DTC) services, there are four broad categories of content:

The intersegment transfer price, for purposes of segment financial reporting pursuant to ASC 280 Segment Reporting, is generally cost plus a margin for Originals and Media Pay 1 content and generally based on comparable transactions for Studio Pay 1 and Library content. Imputed title by title intersegment license fees that may be necessary for other purposes are established as required by those purposes.

Intersegment revenue is recognized upon availability of the content to the DTC service except with respect to Library content for which revenue is recognized ratably over the license period.

Our DTC services generally amortize intersegment content costs for Originals and Studio Pay 1 content on an accelerated basis and for Media Pay 1 and Library content on a straight line basis.

When the DTC amortization timing is different than the timing of revenue recognition at Studio Entertainment or Media Networks, the difference results in an operating income impact in the elimination segment, which nets to zero over the DTC amortization period.


	Quarter Ended
	December 28, 2019		December 29, 2018
Revenues:
Media Networks	$	7,361	$	5,921
Parks, Experiences and Products⁽¹⁾	7,396		6,824
Studio Entertainment⁽¹⁾	3,764		1,824
Direct-to-Consumer & International	3,987		918

Eliminations⁽²⁾	(1,650)		(184)
	$	20,858	$	15,303
Segment operating income (loss):
Media Networks	$	1,630	$	1,330
Parks, Experiences and Products⁽¹⁾	2,338		2,152
Studio Entertainment⁽¹⁾	948		309
Direct-to-Consumer & International	(693)		(136)

Eliminations⁽²⁾	(221)		—
	$	4,002	$	3,655

⁽¹⁾The allocation of Parks, Experiences and Products revenues to Studio Entertainment was $184 million and $154 million for the quarters ended December 28, 2019 and December 29, 2018, respectively.


	Quarter Ended
(in millions)	December 28, 2019		December 29, 2018
Revenues:

Studio Entertainment:
Content transactions with Media Networks	$	(53)	$	(21)
Content transactions with Direct-to-Consumer & International	(685)		(18)
Media Networks:
Content transactions with Direct-to-Consumer & International	(912)		(145)


	$	(1,650)	$	(184)

Operating income:

Studio Entertainment:
Content transactions with Media Networks	$	—	$	—
Content transactions with Direct-to-Consumer & International	(116)		2
Media Networks:
Content transactions with Direct-to-Consumer & International	(105)		(2)


	$	(221)	$	—


	Quarter Ended
	December 28, 2019		December 29, 2018
Media Networks	$	193	$	179
Parks, Experiences and Products	(3)		(12)

Direct-to-Consumer & International	42		(91)
Equity in the income of investees included in segment operating income	232		76

Amortization of TFCF intangible assets related to equity investees	(8)		—
Equity in the income (loss) of investees, net	$	224	$	76


	Quarter Ended
	December 28, 2019		December 29, 2018
Segment operating income	$	4,002	$	3,655
Corporate and unallocated shared expenses	(237)		(161)
Restructuring and impairment charges	(150)		—

Interest expense, net	(283)		(63)
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs⁽¹⁾	(700)		—


Income from continuing operations before income taxes	$	2,632	$	3,431

⁽¹⁾For the quarter ended December 28, 2019 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $486 million, $206 million and $8 million, respectively.