Segment Information (Tables)

9 Months Ended

Jun. 27, 2020

Financial Information by Operating Segments

Segment revenues and segment operating income are as follows:


	Quarter Ended						Nine Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Revenues:
Media Networks	$	6,562	$	6,713	$	21,180	$	18,317
Parks, Experiences and Products⁽¹⁾	983		6,575		13,922		19,570
Studio Entertainment⁽¹⁾	1,738		3,836		8,041		7,817
Direct-to-Consumer & International	3,969		3,875		12,114		5,940

Eliminations⁽²⁾	(1,473)		(737)		(4,576)		(1,155)
	$	11,779	$	20,262	$	50,681	$	50,489
Segment operating income (loss):
Media Networks	$	3,153	$	2,136	$	7,158	$	5,696
Parks, Experiences and Products⁽¹⁾	(1,960)		1,719		1,017		5,377
Studio Entertainment⁽¹⁾	668		792		2,082		1,607
Direct-to-Consumer & International	(706)		(562)		(2,226)		(1,084)

Eliminations⁽²⁾	(56)		(133)		(529)		(174)
	$	1,099	$	3,952	$	7,502	$	11,422

⁽¹⁾The allocation of Parks, Experiences and Products revenues to Studio Entertainment was $82 million and $126 million for the quarters ended June 27, 2020 and June 29, 2019, respectively, and $383 million and $406 million for the nine months ended June 27, 2020 and June 29, 2019, respectively.

⁽²⁾Intersegment eliminations are as follows:


	Quarter Ended						Nine Months Ended
(in millions)	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Revenues:

Studio Entertainment:
Content transactions with Media Networks	$	(36)	$	(41)	$	(147)	$	(75)
Content transactions with Direct-to-Consumer & International	(506)		(82)		(1,652)		(182)
Media Networks:
Content transactions with Direct-to-Consumer & International	(931)		(614)		(2,777)		(898)


	$	(1,473)	$	(737)	$	(4,576)	$	(1,155)

Operating income:

Studio Entertainment:
Content transactions with Media Networks	$	2	$	(16)	$	(8)	$	(11)
Content transactions with Direct-to-Consumer & International	27		(35)		(246)		(79)
Media Networks:
Content transactions with Direct-to-Consumer & International	(85)		(82)		(275)		(84)


	$	(56)	$	(133)	$	(529)	$	(174)

Equity In Income of Investees By Segment

Equity in the income (loss) of investees is included in segment operating income as follows:


	Quarter Ended						Nine Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Media Networks	$	217	$	192	$	589	$	553
Parks, Experiences and Products	(6)		—		(15)		(12)

Direct-to-Consumer & International	(18)		7		(6)		(222)
Equity in the income of investees included in segment operating income	193		199		568		319
Impairment of equity investments⁽¹⁾	—		(185)		—		(538)
Amortization of TFCF intangible assets related to equity investees	(7)		(15)		(23)		(15)
Equity in the income (loss) of investees, net	$	186	$	(1)	$	545	$	(234)

⁽¹⁾The prior-year quarter reflects the impairment of an investment in a cable channel at A+E Television Networks. The prior-year nine month period also includes an impairment of Vice Group Holdings, Inc.

Reconciliation of Segment Operating Income to Income before Income Taxes

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


	Quarter Ended						Nine Months Ended
	June 27, 2020		June 29, 2019		June 27, 2020		June 29, 2019
Segment operating income	$	1,099	$	3,952	$	7,502	$	11,422
Corporate and unallocated shared expenses	(179)		(238)		(604)		(678)
Restructuring and impairment charges (see Note 18)	(5,047)		(207)		(5,342)		(869)
Other income (expense), net (see Note 5)	382		(123)		382		4,840
Interest expense, net	(412)		(411)		(995)		(617)
Amortization of TFCF and Hulu intangible assets and fair value step-up on film and television costs⁽¹⁾	(683)		(779)		(2,106)		(884)
Impairment of equity investments	—		(185)		—		(538)

Income (loss) from continuing operations before income taxes	$	(4,840)	$	2,009	$	(1,163)	$	12,676

⁽¹⁾For the quarter ended June 27, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $486 million, $190 million and $7 million, respectively. For the nine months ended June 27, 2020 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $1,470 million, $613 million and $23 million, respectively. For the quarter ended June 29, 2019 amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $490 million, $274 million and $15 million, respectively. For the nine months ended June 29, 2019, amortization of intangible assets, step-up of film and television costs and intangibles related to TFCF equity investees were $562 million, $307 million and $15 million, respectively.